Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36270 | |
Entity Registrant Name | SANTANDER CONSUMER USA HOLDINGS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0414408 | |
Entity Address, Address Line One | 1601 Elm Street | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 634-1110 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | SC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 345,991,292 | |
Entity Central Index Key | 0001580608 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents - $42,889 and $101,334 held at affiliates, respectively | $ 99,756 | $ 148,436 |
Finance receivables held for sale, net | 1,249,101 | 1,068,757 |
Finance receivables held for investment, net | 25,838,749 | 25,117,454 |
Restricted cash and cash equivalents - $27 and $341 held at affiliates, respectively | 2,272,621 | 2,102,048 |
Accrued interest receivable | 277,813 | 303,686 |
Leased vehicles, net | 13,978,855 | |
Leased vehicles, Furniture and equipment, net of accumulated depreciation of $79,397 and $72,345, respectively | 59,176 | 61,280 |
Federal, state and other income taxes receivable | 83,427 | 97,087 |
Related party taxes receivable | 4,581 | 734 |
Goodwill | 74,056 | 74,056 |
Intangible assets, net of amortization of $49,426 and $45,324, respectively | 34,117 | 35,195 |
Due from affiliates | 19,581 | 8,920 |
Other assets | 1,089,746 | 963,347 |
Total assets | 46,416,093 | 43,959,855 |
Liabilities: | ||
Notes payable — credit facilities | 6,514,163 | 4,478,214 |
Notes payable — secured structured financings | 26,248,528 | 26,901,530 |
Notes payable — related party | 4,002,814 | 3,503,293 |
Accrued interest payable | 46,817 | 49,370 |
Accounts payable and accrued expenses | 431,004 | 422,951 |
Deferred tax liabilities, net | 1,327,342 | 1,155,883 |
Due to affiliates | 91,320 | 63,219 |
Other liabilities | 416,844 | 367,037 |
Total liabilities | 39,078,832 | 36,941,497 |
Commitments and contingencies (Notes 5 and 10) | ||
Equity: | ||
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 362,571,219 and 362,028,916 shares issued and 348,130,140 and 352,302,759 shares outstanding, respectively | 3,481 | 3,523 |
Additional paid-in capital | 1,413,461 | 1,515,572 |
Accumulated other comprehensive income, net | (20,567) | 33,515 |
Retained earnings | 5,940,886 | 5,465,748 |
Total stockholders’ equity | 7,337,261 | 7,018,358 |
Total liabilities and equity | 46,416,093 | 43,959,855 |
Assets | ||
Restricted cash and cash equivalents | 1,697,692 | 1,582,158 |
Finance receivables held for sale, net | 266,086 | 0 |
Finance receivables held for investment, net | 25,004,109 | 24,151,971 |
Leased vehicles, net | 15,313,369 | 13,978,855 |
Various other assets | 604,431 | 685,383 |
Total assets | 42,885,687 | 40,398,367 |
Liabilities | ||
Notes payable | 33,289,722 | 31,949,839 |
Various other liabilities | 99,856 | 122,010 |
Total liabilities | 33,389,578 | $ 32,071,849 |
Leased Vehicles | ||
Assets | ||
Leased vehicles, Furniture and equipment, net of accumulated depreciation of $79,397 and $72,345, respectively | $ 15,313,369 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents held for affiliates | $ 42,889 | $ 101,334 |
Restricted cash held for affiliates | 27 | 341 |
Accumulated depreciation | 79,397 | 72,345 |
Accumulated amortization | $ 49,426 | $ 45,324 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued | 362,571,219 | 362,028,916 |
Common stock, shares outstanding | 348,130,140 | 352,302,759 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Interest on finance receivables and loans | $ 1,261,098 | $ 1,211,006 | $ 2,514,678 | $ 2,379,546 |
Leased vehicle income | 676,236 | 537,897 | 1,325,796 | 1,042,175 |
Other finance and interest income | 11,437 | 8,494 | 21,684 | 15,631 |
Total finance and other interest income | 1,948,771 | 1,757,397 | 3,862,158 | 3,437,352 |
Interest expense — Including $45,909, $43,640, $90,782, and $85,673 to affiliates, respectively | 330,039 | 273,953 | 664,421 | 514,981 |
Leased vehicle expense | 444,442 | 360,335 | 888,461 | 719,018 |
Net finance and other interest income | 1,174,290 | 1,123,109 | 2,309,276 | 2,203,353 |
Provision for credit losses | 430,676 | 406,544 | 981,555 | 916,885 |
Net finance and other interest income after provision for credit losses | 743,614 | 716,565 | 1,327,721 | 1,286,468 |
Profit sharing | 13,345 | 12,853 | 20,313 | 17,230 |
Net finance and other interest income after provision for credit losses and profit sharing | 730,269 | 703,712 | 1,307,408 | 1,269,238 |
Investment losses, net — Including $0, $3,177, $0, and $20,080 from affiliates, respectively | (84,787) | (82,634) | (151,884) | (169,154) |
Servicing fee income — Including $14,275, $11,375, $27, $270, and $21,447 from affiliates, respectively | 25,002 | 27,538 | 48,808 | 53,720 |
Fees, commissions, and other — Including $12,186, $398, $18,967, and $769 from affiliates, respectively | 90,196 | 77,480 | 184,572 | 162,871 |
Total other income | 30,411 | 22,384 | 81,496 | 47,437 |
Compensation expense | 122,678 | 118,598 | 250,572 | 240,603 |
Repossession expense | 69,699 | 63,660 | 140,559 | 135,741 |
Other operating costs — Including $811, $3,111, $1,744, and $4,273 to affiliates, respectively | 88,272 | 94,692 | 180,475 | 188,518 |
Total operating expenses | 280,649 | 276,950 | 571,606 | 564,862 |
Income before income taxes | 480,031 | 449,146 | 817,298 | 751,813 |
Income tax expense | 111,764 | 114,120 | 201,528 | 172,172 |
Net income | 368,267 | 335,026 | 615,770 | 579,640 |
Other comprehensive income (loss): | ||||
Change in unrealized gains (losses) on cash flow hedges, net of tax of $10,870, $79, $17,665, and $2,981, respectively | (34,045) | (761) | (55,084) | 12,039 |
Unrealized gains (losses) on available-for-sale debt securities net of tax of ($173), zero, ($321), and zero, respectively | 539 | 0 | 1,001 | 0 |
Comprehensive income | $ 334,761 | $ 334,265 | $ 561,687 | $ 591,679 |
Net income per common share (basic) (in usd per share) | $ 1.05 | $ 0.93 | $ 1.75 | $ 1.61 |
Net income per common share (diluted) (in usd per share) | 1.05 | 0.93 | 1.75 | 1.60 |
Dividend declared per common share (in usd per share) | $ 0.20 | $ 0.05 | $ 0.40 | $ 0.10 |
Weighted average common shares (basic) (in shares) | 351,106,197 | 361,268,112 | 351,309,700 | 360,987,233 |
Weighted average common shares (diluted) (in shares) | 351,556,349 | 362,057,614 | 351,825,554 | 361,829,283 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Interest expense to affiliates | $ 45,909 | $ 43,640 | $ 90,782 | $ 85,673 |
Investment losses, net from affiliates | 0 | 3,177 | 0 | 20,080 |
Servicing fee income from affiliates | 14,275 | 11,375 | 27,270 | 21,447 |
Fees, commissions and other from affiliates | 12,186 | 398 | 18,967 | 769 |
Other operating costs to affiliates | 811 | 3,111 | 1,744 | 4,273 |
Change in unrealized gains (losses) on cash flow hedges, tax | 10,870 | 79 | 17,665 | 2,981 |
Unrealized gain/losses on available-for-sale debt securities, tax | $ (173) | $ 0 | $ (321) | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2017 | 360,527,000 | ||||
Beginning balance at Dec. 31, 2017 | $ 6,465,702 | $ 3,605 | $ 1,681,558 | $ 44,262 | $ 4,736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment upon adoption of ASU 2018-02 | 0 | 6,149 | (6,149) | ||
Stock issued in connection with employee incentive compensation plans (in shares) | 481,000 | ||||
Stock issued in connection with employee incentive compensation plans | 469 | $ 5 | 464 | ||
Stock-based compensation expense | 4,208 | 4,208 | |||
Dividends-Common stock | (18,028) | (18,028) | |||
Tax sharing with affiliate | 3,766 | 3,766 | |||
Net income | 244,615 | 244,615 | |||
Other comprehensive income (loss), net of taxes | 12,800 | 12,800 | |||
Ending balance (in shares) at Mar. 31, 2018 | 361,008,000 | ||||
Ending balance at Mar. 31, 2018 | 6,713,532 | $ 3,610 | 1,689,996 | 63,211 | 4,956,715 |
Beginning balance (in shares) at Dec. 31, 2017 | 360,527,000 | ||||
Beginning balance at Dec. 31, 2017 | 6,465,702 | $ 3,605 | 1,681,558 | 44,262 | 4,736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Available-for-sale securities, net of taxes | 0 | ||||
Net income | 579,640 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 361,409,000 | ||||
Ending balance at Jun. 30, 2018 | 7,033,636 | $ 3,614 | 1,693,896 | 62,449 | 5,273,677 |
Beginning balance (in shares) at Mar. 31, 2018 | 361,008,000 | ||||
Beginning balance at Mar. 31, 2018 | 6,713,532 | $ 3,610 | 1,689,996 | 63,211 | 4,956,715 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued in connection with employee incentive compensation plans (in shares) | 401,000 | ||||
Stock issued in connection with employee incentive compensation plans | 2,353 | $ 4 | 2,349 | ||
Stock-based compensation expense | 1,586 | 1,586 | |||
Dividends-Common stock | (18,064) | (18,064) | |||
Tax sharing with affiliate | (35) | (35) | |||
Available-for-sale securities, net of taxes | 0 | ||||
Net income | 335,026 | 335,026 | |||
Other comprehensive income (loss), net of taxes | (762) | (762) | |||
Ending balance (in shares) at Jun. 30, 2018 | 361,409,000 | ||||
Ending balance at Jun. 30, 2018 | $ 7,033,636 | $ 3,614 | 1,693,896 | 62,449 | 5,273,677 |
Beginning balance (in shares) at Dec. 31, 2018 | 352,302,759 | 352,303,000 | |||
Beginning balance at Dec. 31, 2018 | $ 7,018,358 | $ 3,523 | 1,515,572 | 33,515 | 5,465,748 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued in connection with employee incentive compensation plans (in shares) | 391,000 | ||||
Stock issued in connection with employee incentive compensation plans | (1,711) | $ 4 | (1,715) | ||
Stock-based compensation expense | 5,987 | 5,987 | |||
Stock repurchase/Treasury stock (in shares) | (965,000) | ||||
Stock repurchase/Treasury stock | (17,780) | $ (10) | (17,770) | ||
Dividends-Common stock | (70,268) | (70,268) | |||
Tax sharing with affiliate | (2,982) | (2,982) | |||
Available-for-sale securities, net of taxes | 462 | 462 | |||
Net income | 247,503 | 247,503 | |||
Other comprehensive income (loss), net of taxes | (21,039) | (21,039) | |||
Ending balance (in shares) at Mar. 31, 2019 | 351,729,000 | ||||
Ending balance at Mar. 31, 2019 | $ 7,158,530 | $ 3,517 | 1,499,092 | 12,938 | 5,642,983 |
Beginning balance (in shares) at Dec. 31, 2018 | 352,302,759 | 352,303,000 | |||
Beginning balance at Dec. 31, 2018 | $ 7,018,358 | $ 3,523 | 1,515,572 | 33,515 | 5,465,748 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Available-for-sale securities, net of taxes | 1,001 | ||||
Net income | $ 615,770 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 348,130,140 | 348,130,000 | |||
Ending balance at Jun. 30, 2019 | $ 7,337,261 | $ 3,481 | 1,413,461 | (20,567) | 5,940,886 |
Beginning balance (in shares) at Mar. 31, 2019 | 351,729,000 | ||||
Beginning balance at Mar. 31, 2019 | 7,158,530 | $ 3,517 | 1,499,092 | 12,938 | 5,642,983 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued in connection with employee incentive compensation plans (in shares) | 151,000 | ||||
Stock issued in connection with employee incentive compensation plans | 142 | $ 1 | 141 | ||
Stock-based compensation expense | 1,055 | 1,055 | |||
Stock repurchase/Treasury stock (in shares) | (3,750,000) | ||||
Stock repurchase/Treasury stock | (86,864) | $ (37) | (86,827) | ||
Dividends-Common stock | (70,364) | (70,364) | |||
Available-for-sale securities, net of taxes | 539 | 539 | |||
Net income | 368,267 | 368,267 | |||
Other comprehensive income (loss), net of taxes | $ (34,044) | (34,044) | |||
Ending balance (in shares) at Jun. 30, 2019 | 348,130,140 | 348,130,000 | |||
Ending balance at Jun. 30, 2019 | $ 7,337,261 | $ 3,481 | $ 1,413,461 | $ (20,567) | $ 5,940,886 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | |||
May 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends paid per share (in usd per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.05 | $ 0.05 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 615,770 | $ 579,640 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Derivative mark to market | 13,367 | (10,199) |
Provision for credit losses | 981,555 | 916,885 |
Depreciation and amortization | 951,039 | 775,849 |
Accretion of discount | (45,826) | (91,856) |
Originations and purchases of receivables held for sale | 0 | (1,837,463) |
Proceeds from sales of and collections on receivables held for sale | 70,173 | 2,766,700 |
Change in revolving personal loans, net | (72,722) | (72,922) |
Investment losses, net | 151,884 | 169,154 |
Stock-based compensation | 7,042 | 5,794 |
Deferred tax expense | 188,598 | 177,903 |
Changes in assets and liabilities: | ||
Accrued interest receivable | 10,651 | 6,551 |
Accounts receivable | (6,040) | 12,100 |
Federal income tax and other taxes | 7,036 | (5,465) |
Other assets | (25,432) | (69,117) |
Accrued interest payable | (2,258) | 7,477 |
Other liabilities | (405) | 115,943 |
Due to/from affiliates | 17,937 | 65,265 |
Net cash provided by operating activities | 2,862,369 | 3,512,239 |
Cash flows from investing activities: | ||
Originations of and disbursements on finance receivables held for investment | (8,021,054) | (7,783,649) |
Purchases of portfolios of finance receivables held for investment | (75,330) | (116,458) |
Collections on finance receivables held for investment | 6,057,333 | 5,338,222 |
Leased vehicles purchased | (4,517,624) | (4,764,841) |
Manufacturer incentives received | 450,954 | 445,266 |
Proceeds from sale of leased vehicles | 1,840,648 | 1,959,866 |
Change in revolving personal loans, net | 50,267 | 59,350 |
Purchases of available-for-sale securities | (85,098) | 0 |
Proceeds from repayments and maturities of available-for-sale securities | 3,000 | 0 |
Purchases of furniture and equipment | (6,810) | (4,220) |
Sales of furniture and equipment | 355 | 74 |
Upfront fee paid to FCA | (60,000) | 0 |
Other investing activities | 0 | (6,578) |
Net cash used in investing activities | (4,363,359) | (4,872,968) |
Cash flows from financing activities: | ||
Proceeds from notes payable related to secured structured financings — net of debt issuance costs | 7,874,360 | 8,651,828 |
Payments on notes payable related to secured structured financings | (8,543,669) | (6,924,281) |
Proceeds from unsecured notes payable | 3,695,000 | 0 |
Payments on unsecured notes payable | (3,195,000) | 0 |
Proceeds from notes payable | 9,852,100 | 14,060,698 |
Payments on notes payable | (7,816,151) | (15,033,991) |
Proceeds from stock option exercises, gross | 1,519 | 5,958 |
Dividends paid | (140,632) | (36,092) |
Shares repurchased | (104,644) | 0 |
Net cash provided by financing activities | 1,622,883 | 724,120 |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 121,893 | (636,609) |
Cash and cash equivalent and restricted cash and cash equivalents— Beginning of period | 2,250,484 | 3,081,707 |
Cash and cash equivalents and restricted cash and cash equivalents — End of period | 2,372,377 | 2,445,098 |
Supplemental cash flow information: | ||
Total cash and cash equivalents and restricted cash and cash equivalents | $ 2,250,484 | $ 3,081,707 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices | Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices The Company is the holding company for SC Illinois, and its subsidiaries, a specialized consumer finance company focused on vehicle finance and third-party servicing and delivering superior service to dealers and customers across the full credit spectrum. The Company’s primary business is the indirect origination and servicing of retail installment contracts and leases, principally, through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. Additionally, the Company sells consumer retail installment contracts through flow agreements and, when market conditions are favorable, it accesses the ABS market through securitizations of consumer retail installment contracts. SAF is our primary vehicle brand, and is available as a finance option for automotive dealers across the United States. Since May 2013, under the Chrysler Agreement with FCA, the Company has operated as FCA’s preferred provider for consumer loans, leases and dealer loans and provides services to FCA customers and dealers under the CCAP brand. These products and services include consumer retail installment contracts and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. On June 28, 2019, the Company entered into an Amendment to the Chrysler Agreement, with FCA, which modified the Chrysler Agreement to, among other things, adjust certain performance metrics, exclusivity commitments and payment provisions. The Amendment also terminated the previously disclosed tolling agreement, dated July 11, 2018, between the Company and FCA. The Company also originates vehicle loans through a web-based direct lending program, purchases vehicle retail installment contracts from other lenders, and services automobile and recreational and marine vehicle portfolios for other lenders. Additionally, the Company has other relationships through which it provides other consumer finance products. As of June 30, 2019 , the Company was owned approximately 70.5% by SHUSA, a subsidiary of Santander, and approximately 29.5% by other shareholders. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered VIEs. The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements as of June 30, 2019 and December 31, 2018 , and for the three and six months ended June 30, 2019 and 2018 , have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the 2018 Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, impairment, fair value, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. Corrections to Previously Reported Amounts As mentioned in Note 1- “Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices” in the 2018 Annual Report on Form 10-K, the Company identified and corrected two immaterial errors. The Company has revised its comparative condensed consolidated financial statements as of June 30, 2018 included within. The following tables summarize the impacts of the corrections on the condensed consolidated financial statements of income and comprehensive income: Three months ended June 30, 2018 Six Months Ended June 30, 2018 Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans $ 1,156,536 $ 54,470 $ 1,211,006 $ 2,270,673 $ 108,873 $ 2,379,546 Provision for credit losses 352,575 53,969 406,544 811,570 105,315 916,885 Income (loss) before income taxes 448,645 501 449,146 748,255 3,558 751,813 Income tax expense 114,004 116 114,120 171,315 857 172,172 Net income (loss) 334,641 385 335,026 576,940 2,700 579,640 Net income (loss) per common share (basic) $ 0.93 $ — $ 0.93 $ 1.60 $ 0.01 $ 1.61 Net income (loss) per common share (diluted) $ 0.92 $ 0.01 $ 0.93 $ 1.59 $ 0.01 $ 1.60 The following tables summarize the impacts of the corrections on the condensed consolidated statement of cash flows: Six Months Ended June 30, 2018 Reported Corrections Revised Net cash provided by operating activities $ 3,413,047 $ 99,192 $ 3,512,239 Net cash used in investing activities (4,773,776 ) (99,192 ) (4,872,968 ) In addition to the revision of the Company’s condensed consolidated financial statements, information within the footnotes to the condensed consolidated financial statements has been revised to reflect the correction of the errors discussed above. The following table summarizes the impacts of the corrections of those items, including table disclosures in Note 4-“Credit Loss Allowance and Credit Quality”: June 30, 2018 Reported Corrections Revised TDR - Unpaid principal balance $ 5,958,564 $ 139,716 $ 6,098,280 TDR - Impairment 1,496,580 167,642 1,664,222 TDR allowance ratio 25.1 % 2.2 % 27.3 % Nonaccrual loans TDRs 1,554,860 (957,705 ) 597,155 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,535,166 116,651 2,651,817 Delinquent principal over 59 days 1,151,410 83,092 1,234,502 Total delinquent principal 3,686,576 199,743 3,886,319 Business Segment Information The Company has one reportable segment, Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and Dealer Loans, as well as financial products and services related to recreational vehicles and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations. Accounting Policies There have been no material changes in the Company’s accounting policies from those disclosed in Part II, Item 8 - Financial Statements and Supplementary Data in the 2018 Annual Report on Form 10-K. Recently Adopted Accounting Standards Since January 1, 2019, the Company adopted the following FASB ASUs: • In February 2016, the FASB issued ASU 2016-02, Leases . The primary effect of the ASU is to replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The Company adopted this standard using the modified retrospective method and utilized the optional transition method under which we continue to apply the legacy guidance in ASC 840, Leases, including its disclosure requirements, in the comparative period presented. For all our operating leases (primarily our office space/facility leases), where the Company is a lessee, adoption of the new standard resulted in recognizing on our balance sheet, a right-of-use (“ROU”) asset of $67,300 , a reduction of accounts payable and accrued expenses of $24,100 relating to straight-line rent accruals and unamortized tenant improvement allowances, and a lease liability of $91,400 . The right-of-use-asset and lease liability will be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition, the Company will no longer capitalize certain initial direct costs in connection with lease originations where it is the lessor. Further, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We elected not to (a) use the hindsight practical expedient to determine the lease term for existing leases; and (b) recognize a lease liability and associated ROU asset for short term leases if such lease meet the definition under ASC 842. We chose not to elect the practical expedient to not separate non-lease components from lease components. The standard did not have a material impact on our condensed consolidated statement of income or condensed consolidated statement of cash flows. • In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this standard effective January 1, 2019 and it did not have a material impact on the Company’s business, financial position or results of operations. • In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU permits use of the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting under Topic 815. The adoption of this standard did not have any impact on the Company’s business, financial position or results of operations. The adoption of the following ASUs did not have a material impact on the Company’s business, financial position or results of operations. • ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception • ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting • ASU 2018-09, Codification Improvements Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company’s credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in a material increase in the Company’s credit and capital reserves and related decrease in capital ratios. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In addition to those described in detail above, the Company is also in the process of evaluating the ASU 2018-17, Consolidation (Topic 10): Targeted Improvements to Related Party Guidance for Variable Interest Entities, but does not expect it to have a material impact on the Company’s business, financial position, results of operations or disclosures. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Held For Investment Finance receivables held for investment, net is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail installment contracts acquired individually (a) $ 25,790,932 $ 25,065,511 Purchased receivables-Credit Impaired 15,419 19,235 Receivables from dealers 12,875 14,557 Personal loans — 2,014 Finance lease receivables (Note 3) 19,523 16,137 Finance receivables held for investment, net $ 25,838,749 $ 25,117,454 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of June 30, 2019 and December 31, 2018 , $8,832 and $13,509 of loans were recorded at fair value (Note 13). The Company’s held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 Retail Installment Contracts Receivables from Non-TDR TDR Unpaid principal balance $ 24,451,977 $ 4,519,334 $ 13,010 Credit loss allowance - specific — (1,156,303 ) — Credit loss allowance - collective (1,961,893 ) — (135 ) Discount (120,523 ) (26,736 ) — Capitalized origination costs and fees 81,581 3,495 — Net carrying balance $ 22,451,142 $ 3,339,790 $ 12,875 The remaining balance of personal loans, held for investment, was charged off during the quarter ended June 30, 2019. December 31, 2018 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 23,054,157 $ 5,378,603 $ 14,710 $ 2,637 Credit loss allowance - specific — (1,416,743 ) — — Credit loss allowance - collective (1,819,360 ) — (153 ) (761 ) Discount (172,659 ) (40,333 ) — — Capitalized origination costs and fees 77,398 4,448 — 138 Net carrying balance $ 21,139,536 $ 3,925,975 $ 14,557 $ 2,014 Retail installment contracts Retail installment contracts are collateralized by vehicle titles, and the Company has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. Most of the Company’s retail installment contracts held for investment are pledged against warehouse lines or securitization bonds (Note 5). Most of the borrowers on the Company’s retail installment contracts held for investment are retail consumers; however, $604,157 and $537,922 of the unpaid principal balance represented fleet contracts with commercial borrowers as of June 30, 2019 and December 31, 2018 , respectively. During the six months ended June 30, 2019 and 2018 , the Company originated (including the SBNA originations program) $5,895,651 and $4,689,784 , respectively, in CCAP loans which represented 54% and 49% , respectively, of the total retail installment contract originations (including the SBNA originations program). As of June 30, 2019 and December 31, 2018 , the Company’s carrying value of auto retail installment contract portfolio consisted of $8,581,222 and $8,977,284 , respectively, of CCAP loans which represents 33% and 36% , respectively, of the Company’s carrying value of auto retail installment contract portfolio. As of June 30, 2019 , borrowers on the Company’s retail installment contracts held for investment are located in Texas ( 17% ), Florida ( 11% ), California ( 9% ), Georgia ( 6% ) and other states each individually representing less than 5% of the Company’s total portfolio. Purchased receivables - Credit impaired Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Outstanding balance $ 25,637 $ 30,631 Outstanding recorded investment, net of impairment 15,533 19,390 Changes in accretable yield on the Company’s purchased receivables portfolios-credit impaired for the periods indicated were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance — beginning of period $ 17,892 $ 18,446 $ 18,145 $ 19,464 Accretion of accretable yield (940 ) (2,245 ) (2,353 ) (5,085 ) Reclassifications from (to) nonaccretable difference (a) (3,194 ) 2,167 (2,034 ) 3,989 Balance — end of period $ 13,758 $ 18,368 $ 13,758 $ 18,368 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. During the three and six months ended June 30, 2019 and 2018 , the Company did not acquire any vehicle loan portfolios for which it was probable at acquisition that not all contractually required payments would be collected. However, during the three months ended June 30, 2019 and 2018 , the Company recognized certain retail installment contracts with an unpaid principal balance of $74,718 and $72,963 , respectively, and for the six months ended June 30, 2019 and 2018 , the Company recognized certain retail installment contracts with an unpaid principal balance of $74,718 and $115,959 , respectively, held by non-consolidated securitization Trusts, under optional clean-up calls (Note 6). Following the initial recognition of these loans at fair value, the performing loans in the portfolio are carried at amortized cost, net of allowance for credit losses. The Company elected the fair value option for all non-performing loans acquired (more than 60 days delinquent as of the re-recognition date), for which it was probable that not all contractually required payments would be collected (Note 13). Receivable from Dealers The receivables from dealers held for investment are all Chrysler Agreement-related. As of June 30, 2019 , borrowers on these dealer receivables are located in Virginia ( 70% ) and New York ( 30% ). Held For Sale The carrying value of the Company’s finance receivables held for sale, net is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail installment contracts acquired individually $ 293,372 $ — Personal loans 955,729 1,068,757 Finance receivables held for sale, net $ 1,249,101 $ 1,068,757 Sales of retail installment contracts and proceeds from sales of charged-off assets for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Sales of retail installment contracts to affiliates $ — $ 1,156,060 — 2,631,313 Proceeds from sales of charged-off assets to third parties 6,148 16,638 26,373 34,875 |
Leases (SC as Lessor)
Leases (SC as Lessor) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases (SC as Lessor) | Leases (SC as Lessor) The Company originates operating and finance leases, which are separately accounted for and recorded on the Company’s condensed consolidated balance sheets. Operating leases are reported as leased vehicles, net, while finance leases are included in finance receivables held for investment, net. Operating Leases Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Leased vehicles $ 20,190,000 $ 18,737,338 Less: accumulated depreciation (3,665,402 ) (3,518,025 ) Depreciated net capitalized cost 16,524,598 15,219,313 Manufacturer subvention payments, net of accretion (1,292,015 ) (1,307,424 ) Origination fees and other costs 80,786 66,966 Net book value $ 15,313,369 $ 13,978,855 The following summarizes the maturity analysis of lease payments due to the Company as lessor under operating leases as of June 30, 2019 : Remainder of 2019 $ 1,354,257 2020 2,219,761 2021 1,170,434 2022 197,514 2023 9,722 Thereafter — Total $ 4,951,688 Finance Leases Certain leases originated by the Company are accounted for as direct financing leases, as the contractual residual values are nominal amounts. Finance lease receivables, net consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Gross investment in finance leases $ 28,783 $ 23,809 Origination fees and other 188 152 Less: unearned income (5,520 ) (4,465 ) Net investment in finance leases before allowance 23,451 19,496 Less: allowance for lease losses (3,928 ) (3,359 ) Net investment in finance leases $ 19,523 $ 16,137 The following summarizes the maturity analysis of lease payments due to the Company as lessor under finance leases as of June 30, 2019 : Remainder of 2019 $ 4,163 2020 8,244 2021 7,187 2022 5,382 2023 3,166 Thereafter 641 Total $ 28,783 |
Leases (SC as Lessor) | Leases (SC as Lessor) The Company originates operating and finance leases, which are separately accounted for and recorded on the Company’s condensed consolidated balance sheets. Operating leases are reported as leased vehicles, net, while finance leases are included in finance receivables held for investment, net. Operating Leases Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Leased vehicles $ 20,190,000 $ 18,737,338 Less: accumulated depreciation (3,665,402 ) (3,518,025 ) Depreciated net capitalized cost 16,524,598 15,219,313 Manufacturer subvention payments, net of accretion (1,292,015 ) (1,307,424 ) Origination fees and other costs 80,786 66,966 Net book value $ 15,313,369 $ 13,978,855 The following summarizes the maturity analysis of lease payments due to the Company as lessor under operating leases as of June 30, 2019 : Remainder of 2019 $ 1,354,257 2020 2,219,761 2021 1,170,434 2022 197,514 2023 9,722 Thereafter — Total $ 4,951,688 Finance Leases Certain leases originated by the Company are accounted for as direct financing leases, as the contractual residual values are nominal amounts. Finance lease receivables, net consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Gross investment in finance leases $ 28,783 $ 23,809 Origination fees and other 188 152 Less: unearned income (5,520 ) (4,465 ) Net investment in finance leases before allowance 23,451 19,496 Less: allowance for lease losses (3,928 ) (3,359 ) Net investment in finance leases $ 19,523 $ 16,137 The following summarizes the maturity analysis of lease payments due to the Company as lessor under finance leases as of June 30, 2019 : Remainder of 2019 $ 4,163 2020 8,244 2021 7,187 2022 5,382 2023 3,166 Thereafter 641 Total $ 28,783 |
Credit Loss Allowance and Credi
Credit Loss Allowance and Credit Quality | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Credit Loss Allowance and Credit Quality | Credit Loss Allowance and Credit Quality Credit Loss Allowance The Company estimates the allowance for credit losses on individually acquired retail installment contracts (including loans acquired from third party lenders that are considered to have no credit deterioration at acquisition) and personal loans held for investment, not classified as TDRs, based on delinquency status, historical loss experience, estimated values of underlying collateral, when applicable, and various economic factors. In developing the allowance, the Company utilizes a loss emergence period assumption, a loss given default assumption applied to recorded investment, and a probability of default assumption. The loss emergence period assumption represents the average length of time between when a loss event is first estimated to have occurred and when the account is charged-off. The recorded investment represents unpaid principal balance adjusted for unaccreted net discounts, subvention from manufacturers, and origination costs. Under this approach, the resulting allowance represents the expected net losses of recorded investment inherent in the portfolio. The Company uses a transition based Markov model for estimating the allowance for credit losses on individually acquired retail installment contracts. This model utilizes the recently observed loan transition rates from various loan statuses, including delinquency and accounting statuses from performing to charge off, to forecast future losses. For loans classified as TDRs, impairment is generally measured based on the present value of expected future cash flows discounted at the original effective interest rate. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. The amount of the allowance is equal to the difference between the loan’s impaired value and the recorded investment. The Company maintains a general credit loss allowance for receivables from dealers based on risk ratings and individually evaluates loans for specific impairment as necessary. As of June 30, 2019 and 2018 , the credit loss allowance for receivables from dealers is comprised entirely of general allowance as none of these receivables have been determined to be individually impaired. The activity in the credit loss allowance for individually acquired retail installment contracts and Dealer Loans for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,891,351 $ 1,280,649 $ 137 $ 605 $ 1,597,057 $ 1,716,132 $ 161 $ 1,714 Provision for credit losses 365,604 63,414 (2 ) 1,070 263,648 144,750 (3 ) (83 ) Charge-offs (a) (795,901 ) (369,523 ) — (1,761 ) (605,658 ) (412,710 ) — (695 ) Recoveries 517,626 185,371 — 86 396,667 216,050 — 180 Transfers to held-for-sale (16,787 ) (3,608 ) — — — — — — Balance — end of period $ 1,961,893 $ 1,156,303 $ 135 $ — $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 (a) For the three months ended June 30, 2019 and June 30, 2018 , charge-offs for retail installment contracts acquired individually includes approximately $7 million and $7 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,819,360 $ 1,416,743 $ 153 $ 761 $ 1,540,315 $ 1,804,132 $ 164 $ 2,565 Provision for credit losses 812,092 168,027 (18 ) 1,153 550,099 368,324 (6 ) (185 ) Charge-offs (a) (1,723,358 ) (836,160 ) — (2,107 ) (1,260,827 ) (960,053 ) — (1,763 ) Recoveries 1,070,586 411,301 — 193 822,127 451,819 — 499 Transfers to held-for-sale (16,787 ) (3,608 ) — — — — — — Balance — end of period $ 1,961,893 $ 1,156,303 $ 135 $ — $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 (a) For the six months ended June 30, 2019 and June 30, 2018 , charge-offs for retail installment contracts acquired individually includes approximately $12 million and $14 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. The Company estimates losses on the finance lease receivable portfolio based on delinquency status and loss experience to date, as well as various economic factors. The activity in the lease loss allowance for finance leases for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance — beginning of period $ 3,508 $ 5,757 $ 3,359 $ 5,642 Provision for lease losses 595 (1,769 ) $ 916 (1,348 ) Charge-offs (1,130 ) (1,760 ) $ (1,789 ) (3,141 ) Recoveries 955 1,354 $ 1,442 2,429 Balance — end of period $ 3,928 $ 3,582 $ 3,928 $ 3,582 There was no impairment activity noted for purchased receivable-credit impaired portfolio for the three and six months ended June 30, 2019 and June 30, 2018 . Delinquencies Retail installment contracts and personal amortizing term loans are generally classified as non-performing (or nonaccrual) when they are greater than 60 days past due as to contractual principal or interest payments. Dealer receivables are classified as non-performing when they are greater than 90 days past due. At the time a loan is placed in non-performing (nonaccrual) status, previously accrued and uncollected interest is reversed against interest income. If an account is returned to a performing (accrual) status, the Company returns to accruing interest on the loan. The Company considers an account delinquent when an obligor fails to pay substantially all (defined as 90% ) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. The accrual of interest on revolving personal loans continues until the loan is charged off. The unpaid principal balance on revolving personal loans 90 days past due and still accruing totaled $118,225 and $129,227 as of June 30, 2019 and December 31, 2018 , respectively. A summary of delinquencies as of June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,723,639 $ 2,548 $ 2,726,187 Delinquent principal over 59 days (a) 1,367,310 1,117 1,368,427 Total delinquent principal $ 4,090,949 $ 3,665 $ 4,094,614 December 31, 2018 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 3,118,869 $ 2,926 $ 3,121,795 Delinquent principal over 59 days (a) 1,712,243 1,532 1,713,775 Total delinquent principal $ 4,831,112 $ 4,458 $ 4,835,570 (a) Interest is generally accrued until 60 days past due in accordance with the Company’s accounting policy for retail installment contracts. The retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Amount Percent (a) Amount Percent (a) Non-TDR $ 864,619 3.0 % $ 834,921 2.9 % TDR 546,495 1.9 % 733,218 2.6 % Total nonaccrual principal $ 1,411,114 4.9 % $ 1,568,139 5.5 % (a) Percent of unpaid principal balance of total retail installment contracts individually held for investment. The balances in the above tables reflect total unpaid principal balance rather than recorded investment before allowance. As of June 30, 2019 and December 31, 2018 , there were no receivables from dealers that were 30 days or more delinquent. In addition, as of June 30, 2019 and December 31, 2018 , there were $10,779 and zero , respectively, of retail installment contracts held for sale that were 30 days or more delinquent. Credit Quality Indicators FICO ® Distribution — A summary of the credit risk profile of the Company’s retail installment contracts held for investment by FICO ® distribution, determined at origination, as of June 30, 2019 and December 31, 2018 was as follows: FICO ® Band June 30, 2019 (b) December 31, 2018 (b) Commercial (a) 2.1% 1.9% No-FICOs 10.9% 11.0% <540 18.8% 19.8% 540-599 33.2% 32.9% 600-639 18.9% 18.2% >640 16.1% 16.2% (a) No FICO score is obtained on loans to commercial borrowers. (b) Percentages are based on unpaid principal balance. Commercial Lending — The Company’s risk department performs a credit analysis and classifies certain loans over an internal threshold based on the commercial lending classifications described in Part II, Item 8 - Financial Statements and Supplementary Data (Note 4) in the 2018 Annual Report on Form 10-K. All the receivables from dealers, as of June 30, 2019 and December 31, 2018 were classified as “Pass.” Troubled Debt Restructurings In certain circumstances, the Company modifies the terms of its finance receivables to troubled borrowers. Modifications may include a temporary reduction in monthly payment, reduction in interest rate, an extension of the maturity date, rescheduling of future cash flows, or a combination thereof. A modification of finance receivable terms is considered a TDR if the Company grants a concession to a borrower for economic or legal reasons related to the debtor’s financial difficulties that would not otherwise have been considered. Management considers TDRs to include all individually acquired retail installment contracts that have been modified at least once, deferred for a period of 90 days or more, or deferred at least twice. Additionally, restructurings through bankruptcy proceedings are deemed to be TDRs. The purchased receivables portfolio-credit impaired, operating and finance leases, and loans held for sale, including personal loans, are excluded from the scope of the applicable guidance. The Company’s TDR balance as of June 30, 2019 and December 31, 2018 primarily consisted of loans that had been deferred or modified to receive a temporary reduction in monthly payment. As of June 30, 2019 and December 31, 2018 , there were no receivables from dealers classified as a TDR. A loan that has been classified as a TDR remains so until the loan is liquidated through payoff or charge-off. For loans on nonaccrual status, interest income is recognized on a cash basis, and the accrual of interest is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. The recognition of interest income on TDR loans reflects management’s best estimate of the amount that is reasonably assured of collection and is consistent with the estimate of future cash flows used in the impairment measurement. Any accrued but unpaid interest is fully reserved for through the recognition of additional impairment on the recorded investment, if not expected to be collected. The table below presents the Company’s TDRs as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail Installment Contracts Outstanding recorded investment (a) $ 4,492,654 $ 5,365,477 Impairment (1,156,303 ) (1,416,743 ) Outstanding recorded investment, net of impairment $ 3,336,351 $ 3,948,734 (a) As of June 30, 2019 , the outstanding recorded investment excludes $94.2 million of collateral-dependent bankruptcy TDRs that have been written down by $39.0 million to fair value less cost to sell. As of December 31, 2018 , the outstanding recorded investment excludes $90.1 million of collateral-dependent bankruptcy TDRs that have been written down by $36.4 million to fair value less cost to sell. A summary of the Company’s delinquent TDRs at June 30, 2019 and December 31, 2018 , is as follows: June 30, 2019 December 31, 2018 Retail Installment Contracts (a) Principal, 30-59 days past due $ 991,730 $ 1,265,946 Delinquent principal over 59 days 555,864 810,589 Total delinquent TDR principal $ 1,547,594 $ 2,076,535 (a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance. Average recorded investment and interest income recognized on TDR loans are as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 4,745,931 $ 6,118,495 $ 4,970,364 $ 6,248,219 Interest income recognized $ 199,305 257,275 $ 434,993 551,062 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs (including collateral-dependent bankruptcy TDRs) that occurred for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Outstanding recorded investment before TDR $ 295,540 $ 723,925 $ 627,549 $ 1,308,373 Outstanding recorded investment after TDR $ 296,257 $ 725,438 $ 628,887 $ 1,308,102 Number of contracts (not in thousands) 17,335 43,265 $ 37,208 $ 77,639 Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2019 and 2018 are summarized in the following table: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 90,128 $ 144,561 $ 216,365 $ 339,826 Number of contracts (not in thousands) 5,335 8,707 $ 12,907 $ 20,247 (a) For TDR modifications and TDR modifications that subsequently defaults, the allowance methodology remains unchanged; however, the transition rates of the TDR loans are adjusted to reflect the respective risks. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facilities The following table presents information regarding the Company’s credit facilities as of June 30, 2019 and December 31, 2018 : June 30, 2019 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line June 2021 $ 186,983 $ 500,000 4.04% $ 267,358 $ — Warehouse line March 2021 1,061,345 1,250,000 3.66% 1,552,733 — Warehouse line (a) August 2020 2,966,543 4,400,000 3.73% 4,080,313 3,849 Warehouse line October 2020 881,577 2,050,000 4.38% 1,203,771 46 Repurchase facility (b) September 2019 330,062 330,062 3.80% 452,740 — Repurchase facility (b) July 2019 95,633 95,633 3.04% 153,680 — Warehouse line November 2020 585,400 1,000,000 3.76% 922,796 — Warehouse line November 2020 315,720 500,000 3.28% 349,564 486 Warehouse line June 2021 90,900 350,000 5.66% 101,504 239 Total facilities with third parties 6,514,163 10,475,695 9,084,459 4,620 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note March 2021 300,000 300,000 3.95% Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note (c) March 2022 650,000 650,000 4.20% — — Promissory Note June 2022 500,000 500,000 5.82% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit July 2021 — 500,000 4.27% — — Line of credit March 2022 — 3,000,000 5.60% — — Total facilities with Santander and related subsidiaries 4,000,000 7,500,000 — — Total revolving credit facilities $ 10,514,163 $ 17,975,695 $ 9,084,459 $ 4,620 (a) This line is held exclusively for financing of Chrysler Capital leases. (b) The repurchase facilities are collateralized by securitization notes payable retained by the Company. As the borrower, we are exposed to liquidity risk due to changes in the market value of the retained securities pledged. In some instances, we place or receive cash collateral with counterparties under collateral arrangements associated with our repurchase agreements. The maturity date for the repurchase facility trade that expires in July 2019 was extended to October 2019. (c) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of June 30, 2019 and December 31, 2018 was $2.8 million and $3.2 million , respectively, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt. December 31, 2018 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2019 $ 53,584 $ 500,000 8.34% $ 78,790 $ — Warehouse line Various 314,845 1,250,000 4.83% 458,390 — Warehouse line August 2020 2,154,243 4,400,000 3.79% 2,859,113 4,831 Warehouse line October 2020 242,377 2,050,000 5.94% 345,599 120 Repurchase facility April 2019 167,118 167,118 3.84% 235,540 — Repurchase facility March 2019 131,827 131,827 3.54% 166,308 — Warehouse line November 2020 1,000,000 1,000,000 3.32% 1,430,524 6 Warehouse line November 2020 317,020 500,000 3.53% 359,214 525 Warehouse line October 2019 97,200 350,000 4.35% 108,418 328 Total facilities with third parties 4,478,214 10,348,945 6,041,896 5,810 Facilities with Santander and related subsidiaries: Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note March 2019 300,000 300,000 4.09% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.38% — — Line of credit July 2021 — 500,000 4.34% — — Line of credit March 2019 — 3,000,000 4.97% — — Total facilities with Santander and related subsidiaries 3,500,000 7,000,000 — — Total revolving credit facilities $ 7,978,214 $ 17,348,945 $ 6,041,896 $ 5,810 Facilities with Third Parties The warehouse lines and repurchase facilities are fully collateralized by a designated portion of the Company’s retail installment contracts (Note 2), leased vehicles (Note 3), securitization notes payables and residuals retained by the Company. Facilities with Santander and Related Subsidiaries Lines of Credit SHUSA provides the Company with $3,500,000 of committed revolving credit that can be drawn on an unsecured basis. Promissory Notes SHUSA provides the Company with $4,000,000 of unsecured promissory notes. In July 2019, SHUSA provided a $500,000 unsecured promissory note to the Company which will mature July 2024. Secured Structured Financings The following table presents information regarding secured structured financings as of June 30, 2019 and December 31, 2018 : June 30, 2019 Estimated Maturity Date(s) Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2015 Securitizations April 2021 - January 2023 1,179,917 9,054,732 1.33%-2.29% 1,416,611 277,660 2016 Securitizations April 2022- March 2024 1,627,222 7,462,790 1.63%-2.8% 2,145,078 265,020 2017 Securitizations July 2022 - September 2024 3,210,416 9,296,570 1.35%-2.52% 4,648,860 333,728 2018 Securitizations May 2022 - April 2026 7,211,450 12,039,840 2.41%-3.42% 9,521,053 527,200 2019 Securitizations May 2024-October 2026 5,865,241 6,477,310 2.56%-3.34% 7,240,492 270,321 Public Securitizations (a) 19,094,246 44,331,242 24,972,094 1,673,929 2013 Private issuances November 2020 - September 2024 1,307,640 2,044,054 1.28%-1.38% 2,091,902 1,230 2015 Private issuances July 2019-September 2021 113,289 1,000,000 0.88%-1.05% 206,326 1,473 2016 Private issuances August 2020 - Sept 2024 70,786 1,200,000 1.93%-2.35% 177,175 265 2017 Private issuances April 2021 - Sept 2021 241,350 1,600,000 1.85%-2.44% 605,018 2,315 2018 Private issuance June 2022-April 2024 4,439,453 4,536,002 2.42%-3.53% 6,188,294 11,877 2019 Private issuance September 2022 981,764 1,026,766 3.34% 1,260,503 2,071 Privately issued amortizing notes (c) 7,154,282 11,406,822 10,529,218 19,231 Total secured structured financings $ 26,248,528 $ 55,738,064 $ 35,501,312 $ 1,693,160 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company’s collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 were paid in full. (d) Excludes securitizations which no longer has outstanding debt and excludes any incremental borrowings. December 31, 2018 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2014 Securitizations January 2022 - April 2022 $ 246,989 $ 2,291,020 1.16% - 1.27% $ 334,888 $ 65,028 2015 Securitizations April 2021 - January 2023 1,651,411 9,054,732 1.33% - 2.29% 1,979,942 288,654 2016 Securitizations April 2022 - March 2024 2,233,720 7,462,790 1.63% - 2.80% 2,876,141 285,300 2017 Securitizations July 2022 - September 2024 4,385,029 9,296,570 1.35% - 2.52% 6,090,150 352,833 2018 Securitizations May 2022 -April 2026 10,708,030 13,275,840 2.41% - 3.53% 13,631,783 549,899 Public Securitizations 19,225,179 41,380,952 24,912,904 1,541,714 2013 Private issuance November 2020 - September 2024 1,507,241 2,044,054 1.28% - 1.38% 2,896,344 3,021 2015 Private issuances June 2019 -September 2021 1,043,723 1,811,312 0.88% - 2.80% 350,212 2,215 2016 Private issuances August 2020 - September 2024 454,280 2,550,000 1.93% - 2.86% 901,641 1,661 2017 Private issuances April 2021 -September 2021 689,152 1,600,000 1.85% - 2.44% 1,037,263 5,716 2018 Private issuances June 2022 - April 2024 3,981,955 3,300,002 2.42% - 3.17% 5,197,806 22,588 Privately issued amortizing notes 7,676,351 11,305,368 10,383,266 35,201 Total secured structured financings $ 26,901,530 $ 52,686,320 $ 35,296,170 $ 1,576,915 Most of the Company’s secured structured financings are in the form of public, SEC-registered securitizations. The Company also executes private securitizations under Rule 144A of the Securities Act and periodically issues private term amortizing notes, which are structured similarly to securitizations but are acquired by banks and conduits. The Company’s securitizations and private issuances are collateralized by vehicle retail installment contracts and loans or leases. As of June 30, 2019 and December 31, 2018 , the Company had private issuances of notes backed by vehicle leases totaling $8,292,230 and $7,847,071 , respectively. Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using the effective interest method and are classified as a discount to the related recorded debt balance. Amortized debt issuance costs were $9,309 and $8,580 for the three months ended June 30, 2019 and 2018 , respectively, and $17,770 and $16,500 for the six months ended June 30, 2019 and 2018 , respectively. For securitizations, the term takes into consideration the expected execution of the contractual call option, if applicable. Amortization of premium or accretion of discount on notes payable is also included in interest expense using the effective interest method over the estimated remaining life of the notes. Total interest expense on secured structured financings for the three months ended June 30, 2019 and 2018 was $222,935 and $172,916 , respectively. Total interest expense on secured structured financings for the six months ended June 30, 2019 and 2018 was $454,226 and $323,591 , respectively. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity Disclosure [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company transfers retail installment contracts and vehicle leases into newly formed Trusts that then issue one or more classes of notes payable backed by the collateral. The Company’s continuing involvement with these Trusts is in the form of servicing the assets and, generally, through holding residual interests in the Trusts. The Trusts are considered VIEs under U.S. GAAP and the Company may or may not consolidate these VIEs on the condensed consolidated balance sheets. For further description of the Company’s securitization activities, involvement with VIEs and accounting policies regarding consolidation of VIEs, see Part II, Item 8 - Financial Statements and Supplementary Data (Note 7) in the 2018 Annual Report on Form 10-K. On-balance sheet variable interest entities The Company retains servicing rights for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in fees, commissions and other income. As of June 30, 2019 and December 31, 2018 , the Company was servicing $28,343,622 and $27,193,924 , respectively, of gross retail installment contracts that have been transferred to consolidated Trusts. The remainder of the Company’s retail installment contracts remain unpledged. A summary of the cash flows received from consolidated securitization trusts during the three and six months ended June 30, 2019 and 2018 , is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Assets securitized $ 4,913,261 $ 6,511,953 $ 9,841,723 $ 13,752,897 Net proceeds from new securitizations (a) $ 3,794,437 $ 4,581,874 $ 7,757,055 $ 8,058,196 Net proceeds from retained bonds 99,999 382,022 117,305 593,632 Cash received for servicing fees (b) 289,634 213,900 497,959 429,690 Net distributions from Trusts (b) 1,078,665 780,834 1,671,434 1,325,986 Total cash received from Trusts $ 5,262,735 $ 5,958,630 $ 10,043,753 $ 10,407,504 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. Off-balance sheet variable interest entities During the three and six months ended June 30, 2018 the Company sold $1,156,060 and $2,631,313 , respectively, of gross retail installment contracts to Santander in off-balance sheet securitizations for a loss (excluding lower of cost or market adjustments, if any) of $3,177 and $20,080 , respectively. The losses were recorded in investment losses, net, in the accompanying consolidated statements of income. There were no sales during the three and six months ended June 30, 2019 . As of June 30, 2019 and December 31, 2018 , the Company was servicing $3,145,282 and $4,072,843 , respectively, of gross retail installment contracts that have been sold in off-balance sheet securitizations and were subject to an optional clean-up call. The portfolio was comprised as follows: June 30, December 31, SPAIN $ 2,776,169 $ 3,461,793 Total serviced for related parties 2,776,169 3,461,793 Chrysler Capital securitizations 369,113 611,050 Total serviced for third parties 369,113 611,050 Total serviced for others portfolio $ 3,145,282 $ 4,072,843 Other than repurchases of sold assets due to standard representations and warranties, the Company has no exposure to loss as a result of its involvement with these VIEs. A summary of the cash flows received from off-balance sheet securitization trusts for the three and six months ended June 30, 2019 and 2018 , is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Receivables securitized (a) $ — $ 1,156,060 $ — $ 2,631,313 Net proceeds from new securitizations $ — $ 1,160,119 $ — $ 2,634,939 Cash received for servicing fees 9,357 12,616 19,608 20,694 Total cash received from securitization trusts $ 9,357 $ 1,172,735 $ 19,608 $ 2,655,633 (a) Represents the unpaid principal balance at the time of original securitization. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivatives financial instruments such as interest rate swaps, interest rate caps and the corresponding options written in order to offset the interest rate caps to manage the Company’s exposure to changing interest rates. The Company uses both derivatives that qualify for hedge accounting treatment and economic hedges. The underlying notional amounts and aggregate fair values of these derivatives financial instruments at June 30, 2019 and December 31, 2018 , are as follows: June 30, 2019 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,150,000 $ (28,812 ) $ 12,225 $ (41,037 ) Interest rate swap agreements not designated as hedges 2,110,000 (9,179 ) 2,992 (12,171 ) Interest rate cap agreements 9,203,381 88,240 88,240 — Options for interest rate cap agreements 9,203,381 (88,240 ) — (88,240 ) December 31, 2018 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 3,933,500 $ 36,489 $ 43,967 $ (7,478 ) Interest rate swap agreements not designated as hedges 2,270,200 9,423 11,553 (2,130 ) Interest rate cap agreements 7,741,765 128,377 128,377 — Options for interest rate cap agreements 7,741,765 (128,377 ) — (128,377 ) See Note 13 for disclosure of fair value and balance sheet location of the Company’s derivative financial instruments. The Company enters into legally enforceable master netting agreements that reduce risk by permitting netting of transactions, such as derivatives and collateral posting, with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in ISDA master agreements. The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable master netting (ISDA) agreement. Collateral that is received or pledged for these transactions is disclosed within the “Gross amounts not offset in the Condensed Consolidated Balance Sheet” section of the tables below. Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of June 30, 2019 and December 31, 2018 : Gross Amounts Not Offset in the Assets Presented Collateral Net June 30, 2019 Interest rate swaps - third party (b) $ 15,217 $ (3,836 ) $ 11,381 Interest rate caps - Santander and affiliates 15,305 (4,391 ) 10,914 Interest rate caps - third party 72,935 (46,807 ) 26,128 Total derivatives subject to a master netting arrangement or similar arrangement 103,457 (55,034 ) 48,423 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 103,457 $ (55,034 ) $ 48,423 Total financial assets $ 103,457 $ (55,034 ) $ 48,423 December 31, 2018 Interest rate swaps - third party (b) $ 55,520 $ (23,929 ) $ 31,591 Interest rate caps - third party 128,377 (72,830 ) 55,547 Total derivatives subject to a master netting arrangement or similar arrangement 183,897 (96,759 ) 87,138 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 183,897 $ (96,759 ) $ 87,138 Total financial assets $ 183,897 $ (96,759 ) $ 87,138 (a) Collateral received includes cash, cash equivalents, and other financial instruments. Cash collateral received is reported in Other liabilities in the consolidated balance sheet. Financial instruments that are pledged to the Company are not reflected in the accompanying consolidated balance sheet since the Company does not control or have the ability of rehypothecation of these instruments. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. Gross Amounts Not Offset in the Liabilities Presented Collateral Net June 30, 2019 Interest rate swaps - third party (b) $ 53,208 $ (53,208 ) $ — Interest rate caps - Santander and affiliates 15,305 (15,305 ) — Interest rate caps - third party 72,935 (72,935 ) — Total derivatives subject to a master netting arrangement or similar arrangement 141,448 (141,448 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 141,448 $ (141,448 ) $ — Total financial liabilities $ 141,448 $ (141,448 ) $ — December 31, 2018 Interest rate swaps - third party $ 9,608 $ (9,608 ) $ — Interest rate caps - third party 128,377 (128,377 ) — Total derivatives subject to a master netting arrangement or similar arrangement 137,985 (137,985 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 137,985 $ (137,985 ) $ — Total financial liabilities $ 137,985 $ (137,985 ) $ — (a) Collateral pledged includes cash, cash equivalents, and other financial instruments. These balances are reported in Other assets in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. The gross gains (losses) reclassified from accumulated other comprehensive income (loss) to net income, are included as components of interest expense. The impacts on the condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (31,014 ) $ 13,901 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 8,446 Three Months Ended June 30, 2018 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 8,412 $ 9,095 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (22 ) Six Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (45,807 ) $ 26,941 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 13,847 Six Months Ended June 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 34,841 $ 13,672 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (9,739 ) The Company estimates that approximately $3,119 of unrealized gains included in accumulated other comprehensive income (loss) will be reclassified to interest expense within the next twelve months. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets, Leases And Investments [Abstract] | |
Other Assets | Other Assets Other assets were comprised as follows: June 30, December 31, Vehicles (a) $ 331,251 $ 342,097 Manufacturer subvention payments receivable (b) 126,185 106,313 Upfront fee (b) 113,827 65,000 Derivative assets (third party) at fair value (c) 88,152 183,897 Derivative - collateral 173,226 150,783 Operating leases (Right-of-use-assets) 63,235 — Available-for-sale debt securities 94,643 — Prepaids 40,076 29,080 Accounts receivable 33,111 28,511 Other 26,040 57,666 Other assets $ 1,089,746 $ 963,347 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the Chrysler Agreement. The fee is being amortized into finance and other interest income over a ten-year term. In addition, in June 2019, in connection with the execution of the sixth amendment to the Chrysler Agreement, the Company paid $60,000 upfront fee to FCA. This fee is being amortized into finance and other interest income over the remaining term of the Chrysler Agreement. (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 7 to these Condensed Consolidated Financial Statements for the detail of these amounts. Operating Leases (SC as Lessee) The Company has entered into various operating leases, primarily for office space. Operating leases are included within other assets as operating lease ROU assets and other liabilities within our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to 15 years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Supplemental information relating to these operating leases is as follows: June 30, Operating leases-right of use assets $ 63,235 Other liabilities 85,939 Weighted average lease term 6.5 years Weighted average discount rate 3.40 % Lease expense incurred totaled $3,448 and $2,531 for the three months ended June 30, 2019 and 2018 , respectively, and $6,914 and $5,090 for the six months ended June 30, 2019 and 2018 , respectively, and is included within “other operating costs” in the income statement. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Cash paid for amounts included in the measurement of operating lease liabilities was $8,406 during the six months ended June 30, 2019 . The maturity of lease liabilities at June 30, 2019 are as follows: 2019 $ 8,382 2020 16,716 2021 13,201 2022 12,555 2023 12,678 Thereafter 32,391 Total $ 95,923 Less: Interest (9,984 ) Present value of lease liabilities $ 85,939 Available-for-sale debt securities Debt securities expected to be held for an indefinite period of time are classified as available-for-sale (“AFS”) and are carried at fair value, with temporary unrealized gains and losses reported as a component of accumulated other comprehensive income within stockholder's equity, net of estimated income taxes. All of these securities are used to satisfy collateral requirements for our derivative financial instruments. Realized gains and losses on sales of investment securities are recognized on the trade date and are determined using specific identification method and is included in earnings within Investment gain (losses) on sale of securities. Unamortized premiums and discounts are recognized in interest income over the estimated life of the security using the interest method. The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of debt securities AFS as of June 30, 2019 : June 30, 2019 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 93,321 $ 1,322 $ — $ 94,643 Contractual Maturities The contractual maturities of available-for-sale debt instruments are summarized in the following table. Amortized cost Fair value Due within one year $ 2,931 $ 2,997 Due after one year but within 5 years 90,390 91,646 Total $ 93,321 $ 94,643 The Company di d no t record any other-than-temporary impairment related to its AFS securities for the six months ended June 30, 2019 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $111,764 ( 23.3% effective tax rate) and $114,120 ( 25.4% effective tax rate) during the three months ended June 30, 2019 and 2018 , respectively. The Company recorded income tax expense of $201,528 ( 24.7% effe ctive tax rate) and $172,172 ( 22.9% effective tax rate) during the six month ended June 30, 2019 and 2018, respectively. The Company is a party to a tax sharing agreement requiring that the unitary state tax liability among affiliates included in unitary state tax returns be allocated using the hypothetical separate company tax calculation method. The Company had a net receivable from affiliates under the tax sharing agreement of $4,581 and $734 at June 30, 2019 and December 31, 2018 , respectively, which was included in related party taxes receivable in the condensed consolidated balance sheet. The Company provides U.S. income taxes on earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered indefinitely reinvested outside of the United States. As of December 31, 2018 and June 30, 2019 , the Company has no earnings that are considered indefinitely reinvested. The Company applies an aggregate portfolio approach whereby disproportionate income tax effects from accumulated other comprehensive income are released only when an entire portfolio (i.e., all related units of account) of a particular type is liquidated, sold or extinguished. Significant judgment is required in evaluating and reserving for uncertain tax positions. Although management believes adequate reserves have been established for all uncertain tax positions, the final outcomes of these matters may differ. Management does not believe the outcome of any uncertain tax position, individually or combined, will have a material effect on the Company’s business, financial position or results of operations. The reserve for uncertain tax positions, as well as associated penalties and interest, is a component of the income tax provision. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table summarizes liabilities recorded for commitments and contingencies as of June 30, 2019 and December 31, 2018 , all of which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency June 30, 2019 December 31, 2018 Chrysler Agreement Revenue-sharing and gain/(loss), net-sharing payments $ 19,893 $ 7,001 Agreement with Bank of America Servicer performance fee 5,249 6,353 Agreement with CBP Loss-sharing payments 2,498 3,708 Other Contingencies Consumer arrangements 596 2,138 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 100,000 97,700 Following is a description of the agreements and legal matters pursuant to which the liabilities in the preceding table were recorded. Chrysler Agreement Under terms of the Chrysler Agreement, the Company must make revenue sharing payments to FCA and also must share with FCA when residual gains/(losses) on leased vehicles exceed a specified threshold. The Company had accrued $19,893 and $7,001 at June 30, 2019 and December 31, 2018 , respectively, related to these obligations. The Chrysler Agreement also requires that Santander maintain at least $5.0 billion in funding available for Floorplan Loans and $4.5 billion of financing dedicated to FCA retail financing. In turn, FCA must provide designated minimum threshold percentages of its subvention business to the Company. Agreement with Bank of America Until January 2017, the Company had a flow agreement with Bank of America whereby the Company was committed to selling up to $300,000 of eligible loans to the bank each month. The Company retains servicing on all sold loans and may receive or pay a servicer performance payment based on an agreed-upon formula if performance on the sold loans is better or worse, respectively, than expected performance at time of sale. Servicer performance payments are due six years from the cut-off date of each loan sale. The Company had accrued $5,249 and $6,353 at June 30, 2019 and December 31, 2018 , respectively, related to this obligation. Agreement with CBP Until May 2017, the Company sold loans to CBP under terms of a flow agreement and predecessor sale agreements. The Company retained servicing on the sold loans and owes CBP a loss-sharing payment capped at 0.5% of the original pool balance if losses exceed a specified threshold, established on a pool-by-pool basis. Loss-sharing payments are due the month in which net losses exceed the established threshold of each loan sale. The Company had accrued $2,498 and $3,708 at June 30, 2019 and December 31, 2018 , respectively, related to the loss-sharing obligation. Other Contingencies The Company is or may be subject to potential liability under various other contingent exposures. The Company had accrued $596 and $2,138 at June 30, 2019 and December 31, 2018 , respectively, for other miscellaneous contingencies. Legal and regulatory proceedings Periodically, the Company is party to, or otherwise involved in, various lawsuits and other legal proceedings that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of any such lawsuit, regulatory matter and legal proceeding, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matter. Further, it is reasonably possible that actual outcomes or losses may differ materially from the Company’s current assessments and estimates and any adverse resolution of any of these matters against it could materially and adversely affect the Company’s business, financial condition and results of operation. In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation, regulatory matters and other legal proceedings when those matters present material loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation, regulatory matter or other legal proceeding develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a material loss contingency that is probable and estimable. If a determination is made during a given quarter that a material loss contingency is probable and estimable, an accrued liability is established during such quarter with respect to such loss contingency. The Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established. As of June 30, 2019 , the Company has accrued aggregate legal and regulatory liabilities of $100,000 . Further, the Company believes that the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for legal and regulatory proceedings is up to $57,000 as of June 30, 2019 . Set forth below are descriptions of the material lawsuits, regulatory matters and other legal proceedings to which the Company is subject. Securities Class Action and Shareholder Derivative Lawsuits • Deka Lawsuit: The Company is a defendant in a purported securities class action lawsuit (the Deka Lawsuit) in the United States District Court, Northern District of Texas, captioned Deka Investment GmbH et al. v. Santander Consumer USA Holdings Inc. et al., No. 3:15-cv-2129-K. The Deka Lawsuit, which was filed in August 26, 2014, was brought against the Company, certain of its current and former directors and executive officers and certain institutions that served as underwriters in the Company’s IPO on behalf of a class consisting of those who purchased or otherwise acquired our securities between January 23, 2014 and June 12, 2014. The complaint alleges, among other things, that our IPO registration statement and prospectus and certain subsequent public disclosures violated federal securities laws by containing misleading statements concerning the Company’s ability to pay dividends and the adequacy of the Company’s compliance systems and oversight. In December 2015, the Company and the individual defendants moved to dismiss the lawsuit, which was denied. In December 2016, the plaintiffs moved to certify the proposed classes. In July 2017, the court entered an order staying the Deka Lawsuit pending the resolution of the appeal of a class certification order in In re Cobalt Int’l Energy, Inc. Sec. Litig., No. H-14-3428, 2017 U.S. Dist. LEXIS 91938 (S.D. Tex. June 15, 2017). In October 2018, the court vacated the order staying the Deka Lawsuit and ordered that merits discovery in the Deka Lawsuit be stayed until the court ruled on the issue of class certification. • Feldman Lawsuit: In October 2015, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Feldman v. Jason A. Kulas, et al., C.A. No. 11614 (the Feldman Lawsuit). The Feldman Lawsuit names as defendants, certain of its current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the current and former director defendants breached their fiduciary duties in connection with overseeing the Company’s nonprime vehicle lending practices, resulting in harm to the Company. The complaint seeks unspecified damages and equitable relief. In December 2015, the Feldman Lawsuit was stayed pending the resolution of the Deka Lawsuit. • Parmelee Lawsuit: The Company is a defendant in two purported securities class actions lawsuits that were filed in March and April 2016 in the United States District Court, Northern District of Texas. The lawsuits were consolidated and are now captioned Parmelee v. Santander Consumer USA Holdings Inc. et al., No. 3:16-cv-783. The lawsuits were filed against the Company and certain of its current and former directors and executive officers on behalf of a class consisting of all those who purchased or otherwise acquired our securities between February 3, 2015 and March 15, 2016. The complaint alleges that the Company violated federal securities laws by making false or misleading statements, as well as failing to disclose material adverse facts, in its periodic reports filed under the Exchange Act and certain other public disclosures, in connection with, among other things, the Company’s change in its methodology for estimating its allowance for credit losses and correction of such allowance for prior periods. In March 2017, the Company filed a motion to dismiss the lawsuit. In January 2018, the court granted the Company’s motion as to defendant Ismail Dawood (the Company’s former Chief Financial Officer) and denied the motion as to all other defendants. In July 2018, the lead plaintiff filed an unopposed motion for preliminary approval of a class action settlement of the lawsuit for a cash payment of $9,500 . In September 2018, the court entered an order granting the motion for preliminary approval of the settlement of the lawsuit. An order approving the settlement was entered in June 2019. • Jackie888 Lawsuit: In September 2016, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Jackie888, Inc. v. Jason Kulas, et al., C.A. # 12775 (the Jackie888 Lawsuit). The Jackie888 Lawsuit names as defendants current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the defendants breached their fiduciary duties in connection with the Company’s accounting practices and controls. The complaint seeks unspecified damages and equitable relief. In April 2017, the Jackie888 Lawsuit was stayed pending the resolution of the Deka Lawsuit. Consumer Lending Cases The Company is also party to various lawsuits pending in federal and state courts alleging violations of state and federal consumer lending laws, including, without limitation, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Truth in Lending Act, wrongful repossession laws, usury laws and laws related to unfair and deceptive acts or practices. In general, these cases seek damages and equitable and/or other relief. Regulatory Investigations and Proceedings The Company is party to, or is periodically otherwise involved in, reviews, investigations, examinations and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the FRBB, the CFPB, the DOJ, the SEC, the FTC and various state regulatory and enforcement agencies. Currently, such matters include, but are not limited to, the following: • The Company received a civil subpoena from the DOJ, under FIRREA, requesting the production of documents and communications that, among other things, relate to the underwriting and securitization of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the subpoena and has otherwise cooperated with the DOJ with respect to this matter. • In October 2014, May 2015, July 2015 and February 2017, the Company received subpoenas and/or Civil Investigative Demands (CIDs) from the Attorneys General of California, Illinois, Oregon, New Jersey, Maryland and Washington under the authority of each state’s consumer protection statutes. The Company has been informed that these states serve as an executive committee on behalf of a group of 33 state Attorneys General (and the District of Columbia). The subpoenas and/or CIDs from the executive committee states contain broad requests for information and the production of documents related to the Company’s underwriting, securitization, servicing and collection of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the Attorneys General with respect to this matter. • In August 2017, the Company received a CID from the CFPB. The stated purpose of the CID is to determine whether the Company has complied with the Fair Credit Reporting Act and related regulations. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the CFPB with respect to this matter. These matters are ongoing and could in the future result in the imposition of damages, fines or other penalties. No assurance can be given that the ultimate outcome of these matters or any resulting proceedings would not materially and adversely affect the Company’s business, financial condition and results of operations. • 2017 Written Agreement with the Federal Reserve: In March 2017, the Company and SHUSA entered into a written agreement with the FRBB. Under the terms of the agreement, the Company is required to enhance its compliance risk management program, Board oversight of risk management and senior management oversight of risk management, and SHUSA is required to enhance its oversight of the Company’s management and operations. • Mississippi Attorney General Lawsuit: In January 2017, the Attorney General of Mississippi filed a lawsuit against the Company in the Chancery Court of the First Judicial District of Hinds County, Mississippi, captioned State of Mississippi ex rel. Jim Hood, Attorney General of the State of Mississippi v. Santander Consumer USA Inc., C.A. # G-2017-28. The complaint alleges that the Company engaged in unfair and deceptive business practices to induce Mississippi consumers to apply for loans that they could not afford. The complaint asserts claims under the Mississippi Consumer Protection Act (the MCPA) and seeks unspecified civil penalties, equitable relief and other relief. In March 2017, the Company filed motions to dismiss the lawsuit and the parties are proceeding with discovery. • SCRA Consent Order: In February 2015, the Company entered into a consent order with the DOJ, approved by the United States District Court for the Northern District of Texas, that resolves the DOJ’s claims against the Company that certain of its repossession and collection activities during the period of time between January 2008 and February 2013 violated the Servicemembers Civil Relief Act (SCRA). T he consent order requires the Company to pay a civil fine in the amount of $55 , as well as at least $9,360 to affected servicemembers consisting of $10 per servicemember plus compensation for any lost equity (with interest) for each repossession by the Company, and $5 per servicemember for each instance where the Company sought to collect repossession-related fees on accounts where a repossession was conducted by a prior account holder. The consent order also provides for monitoring by the DOJ for the Company’s SCRA compliance for a period of five years and requires the Company to undertake certain additional remedial measures. Agreements • Bluestem The Company is party to agreements with Bluestem whereby the Company is committed to purchase certain new advances on personal revolving financings receivables, along with existing balances on accounts with new advances, originated by Bluestem for an initial term ending in April 2020 and renewable through April 2022 at Bluestem’s option. As of June 30, 2019 and December 31, 2018 , the total unused credit available to customers was $3.0 billion and $3.1 billion respectively. In 2019 , the Company purchased $0.6 billion of receivables, out of the $3.1 billion unused credit available to customers as of December 31, 2018 . In 2018 , the Company purchased $1.2 billion of receivables, out of the $3.9 billion unused credit available to customers as of December 31, 2017 . In addition, the Company purchased $75,486 of receivables related to newly opened customer accounts during the six months ended June 30, 2019 . Each customer account generated under the agreements generally is approved with a credit limit higher than the amount of the initial purchase, with each subsequent purchase automatically approved as long as it does not cause the account to exceed its limit and the customer is in good standing. As of June 30, 2019 and December 31, 2018 , the Company was obligated to purchase $16,329 and $15,356 , respectively, in receivables that had been originated by Bluestem but not yet purchased by the Company. The Company also is required to make a profit-sharing payment to Bluestem each month if performance exceeds a specified return threshold. The agreement, among other provisions, gives Bluestem the right to repurchase up to 9.99% of the existing portfolio at any time during the term of the agreement, and, provides that if the repurchase right is exercised, Bluestem has the right to retain up to 20.00% of new accounts subsequently originated. • Others Under terms of an application transfer agreement with Nissan, the Company has the first opportunity to review for its own portfolio any credit applications turned down by the Nissan’s captive finance company. The agreement does not require the Company to originate any loans, but for each loan originated the Company will pay Nissan a referral fee . In connection with the sale of retail installment contracts through securitizations and other sales, the Company has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require the Company to repurchase loans previously sold to on- or off-balance sheet Trusts or other third parties. As of June 30, 2019 , there were no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for the Company’s asset-backed securities or other sales. In the opinion of management, the potential exposure of other recourse obligations related to the Company’s retail installment contract sales agreements is not expected to have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. Santander has provided guarantees on the covenants, agreements, and obligations of the Company under the governing documents of its warehouse lines and privately issued amortizing notes. These guarantees are limited to the obligations of the Company as servicer. In November 2015, the Company executed a forward flow asset sale agreement with a third party under terms of which the Company committed to sell $350,000 in charged off loan receivables in bankruptcy status on a quarterly basis . However, any sale more than $275,000 is subject to a market price check. The remaining aggregate commitment as of June 30, 2019 and December 31, 2018 , not subject to market price check was $46,083 and $63,975 , respectively. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party transactions not otherwise disclosed in these footnotes to the condensed consolidated financial statements include the following: Credit Facilities Interest expense, including unused fees, for affiliate lines of credit for the three and six months ended June 30, 2019 and 2018 , was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Lines of credit agreement with Santander - New York Branch (a) $ — $ 5,741 $ — $ 10,108 Debt facilities with SHUSA (Note 5) 45,996 36,561 90,877 72,407 (a) Through its New York branch, Santander provided the Company with revolving credit facilities. During the year ended December 31, 2018 these facilities were terminated. Accrued interest for affiliate lines of credit at June 30, 2019 and December 31, 2018 , was as follows: June 30, December 31, 2018 Debt facilities with SHUSA (Note 5) 20,533 19,928 In 2015, under an agreement with Santander, the Company agreed to begin incurring a fee of 12.5 basis points (per annum) on certain warehouse lines, as they renew, for which Santander provides a guarantee of the Company’s servicing obligations. The Company recognized guarantee fee expense of $154 and $384 for the three and six months ended June 30, 2019 , respectively, and $1,569 and $3,617 for the three and six months ended June 30, 2018 , respectively. As of June 30, 2019 and December 31, 2018 , the Company had $1,101 and $1,922 of related fees payable to Santander, respectively. Derivatives The Company has derivative financial instruments with Santander and affiliates with outstanding notional amounts of $979,270 and zero as of June 30, 2019 and December 31, 2018 , respectively (Note 7). The Company had a collateral overage on derivative liabilities with Santander and affiliates of $3,525 and zero as of June 30, 2019 and December 31, 2018 , respectively. Interest and mark-to-market adjustments on these derivative financial instruments totaled $241 and $231 for the three months ended June 30, 2019 and 2018 , respectively, and $479 and $460 for the six months ended June 30, 2019 and 2018 , respectively. Retail Installment Contracts and RV Marine The Company also has agreements with SBNA to service auto retail installment contracts and recreational and marine vehicle portfolios. Servicing fee income recognized under these agreements totaled $370 and $756 for the three months ended June 30, 2019 and 2018 , respectively, and $777 and $1,795 for the six months ended June 30, 2019 and 2018 , respectively. Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of June 30, 2019 and December 31, 2018 is as follows: June 30, December 31, Total serviced portfolio $ 327,902 $ 383,246 Cash collections due to owner 28,118 14,920 Servicing fees receivable 187 601 Dealer Lending Under the Company’s agreement with SBNA, the Company is required to permit SBNA a first right to review and assess Chrysler Capital dealer lending opportunities, and SBNA is required to pay the Company an origination fee and an annual renewal fee for each loan originated under the agreement. The agreement also transferred the servicing of all Chrysler Capital receivables from dealers, including receivables held by SBNA and by the Company, from the Company to SBNA. The Company may provide advance funding for dealer loans originated by SBNA, which is reimbursed to the Company by SBNA. The Company had no outstanding receivable from SBNA as of June 30, 2019 and December 31, 2018 for such advances. Other information related to the above transactions with SBNA is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Origination and renewal fee income from SBNA (a) $ 1,704 $ 1,232 $ 2,927 $ 2,072 Servicing fees expenses charged by SBNA (b) 19 20 32 39 (a) As of June 30, 2019 and December 31, 2018 , the Company had origination and renewal fees receivable from SBNA of $635 and $385 , respectively. (b) As of June 30, 2019 and December 31, 2018 , the Company had $16 and $19 of servicing fees payable to SBNA, respectively . Under the agreement with SBNA, the Company may originate retail consumer loans in connection with sales of vehicles that are collateral held against floorplan loans by SBNA. Upon origination, the Company remits payment to SBNA, who settles the transaction with the dealer. The Company owed SBNA $5,526 and $5,908 related to such originations as of June 30, 2019 and December 31, 2018 , respectively. The Company received a $9,000 referral fee in connection with sourcing and servicing arrangement and is amortizing the fee into income over the ten -year term of the agreement through July 1, 2022, the termination date of the agreement. As of June 30, 2019 and December 31, 2018 , the unamortized fee balance was $3,600 and $4,050 , respectively. The Company recognized $225 and $450 of income related to the referral fee for the three and six months ended June 30, 2019 and 2018 , respectively. Origination Support Services Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from FCA dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA’s behalf. During the three and six months ended June 30, 2019 , the Company facilitated the purchase of $1.9 billion and $2.95 billion of retail installment contacts, respectively. During the three and six months ended June 30, 2018, the Company facilitated the purchase of $29 million and $53 million of retail installment contacts, respectively. The Company recognized origination/referral fee and servicing fee income of $16,388 and $25,825 , respectively, for the three and six months ended June 30, 2019 of which $4,298 is receivable as of June 30, 2019 . The Company recognized origination/referral fee and servicing fee income of $216 and $388 , respectively, for the three and six months ended June 30, 2018 of which $46 is receivable as of June 30, 2018. Securitizations The Company had a Master Securities Purchase Agreement (MSPA) with Santander, whereby the Company had the option to sell a contractually determined amount of eligible prime loans to Santander, through the SPAIN securitization platform, for a term that ended in December 2018. The Company provides servicing on all loans originated under this arrangement. Other information relating to SPAIN securitization platform for the six months ended June 30, 2019 and June 30, 2018 is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Servicing fee income $ 7,711 $ 8,622 $ 16,142 $ 15,822 Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) — 3,177 — 20,080 Servicing fee receivable as of June 30, 2019 and December 31, 2018 was $2,402 and $2,983 respectively. The Company had $16,131 and $15,968 of collections due to Santander as of June 30, 2019 and December 31, 2018 , respectively. Santander Investment Securities Inc. (SIS), an affiliated entity, serves as joint bookrunner and co-manager on certain of the Company’s securitizations. Amounts paid to SIS as co-manager for the three months ended June 30, 2019 and 2018 , totaled $151 and $148 , respectively, and totaled $965 and $858 for the six months ended June 30, 2019 and 2018 , respectively, and are included in debt issuance costs in the accompanying condensed consolidated financial statements. CEO and other employee compensation Scott Powell is President and CEO of the Company, and the President and CEO of SHUSA. During the six months ended June 30, 2019 , the Company accrued $2,051 as its share of compensation expense based on time allocation between his services to the Company and SHUSA. In addition, certain employees of the Company and SHUSA, provide services to each other. For the six months ended June 30, 2019 , the Company owed SHUSA approximately $4,448 and SHUSA owed the Company approximately $1,133 for such services. Other related-party transactions • The Company subleases approximately 13,000 square feet of its corporate office space to SBNA. For the three months ended June 30, 2019 and 2018 , the Company recorded $44 and $41 respectively, in sublease revenue on this property. For the six months ended June 30, 2019 and 2018 , the Company recorded $88 and $82 respectively, in sublease revenue on this property. • The Company’s wholly-owned subsidiary, Santander Consumer International Puerto Rico, LLC (SCI), has deposit accounts with Banco Santander Puerto Rico, an affiliated entity. As of June 30, 2019 and December 31, 2018 , SCI had cash of $6,339 and $8,862 , respectively, on deposit with Banco Santander Puerto Rico. • The Company has certain deposit and checking accounts with SBNA, an affiliated entity. As of June 30, 2019 and December 31, 2018 , the Company had a balance of $36,550 and $92,774 , respectively, in these accounts. • Beginning in 2017, the Company and SBNA entered into a Credit Card Agreement (Card Agreement) whereby SBNA will provide credit card services for travel and related business expenses and for vendor payments. This service is at zero cost but generates rebates based on purchases made. As of June 30, 2019 , the activities associated with the program were insignificant. • Beginning in 2016, the Company agreed to pay SBNA a market rate-based fee expense for payments made at SBNA retail branch locations for accounts originated or serviced by the Company and the costs associated with modifying the Advanced Teller platform to the payments. The Company incurred expenses of $84 and $154 for these services during the three months ended June 30, 2019 and 2018 , respectively, and $133 and $341 for the six months ended June 30, 2019 and 2018 , respectively. • Effective 2017, the Company contracted Aquanima, a Santander affiliate, to provide procurement services. Expenses incurred totaled $379 and $379 for the three months ended June 30, 2019 and 2018 , respectively, and $758 and $758 for the six months ended June 30, 2019 and 2018 , respectively. • Santander Global Tech, (formerly known as Produban Servicios Informaticos Generales S.L.), a Santander affiliate, is under contract with the Company to provide professional services, telecommunications, and internal and/or external applications. Expenses incurred, which are included as a component of other operating costs in the accompanying consolidated statements of income, totaled $34 and zero for the three months ended June 30, 2019 and 2018 , respectively, and $229 and zero for the six months ended June 30, 2019 and 2018 , respectively. • The Company partners with SHUSA to place Cyber Liability Insurance in which participating national entities share $150 million aggregate limits. The Company repays SHUSA for the Company’s equitably allocated portion of insurance premiums and fees. Expenses incurred totaled $108 and $93 for the three months ended June 30, 2019 and 2018 , respectively, and $216 and $185 for the six months ended June 30, 2019 and 2018 , respectively. In addition the Company partners with SHUSA for various other insurance products. Expenses incurred totaled $194 and $163 for the three months ended June 30, 2019 and 2018 , respectively, and $388 and $325 for the six months ended June 30, 2019 and 2018 , respectively. |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | Computation of Basic and Diluted Earnings per Common Share Earnings per common share (“EPS”) is computed using the two-class method required for participating securities. Restricted stock awards are considered to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of a declaration of a dividend on the Company’s common shares. The calculation of diluted EPS excludes 85,190 , 221,572 , 104,790 , and 221,572 employee stock options for the three and six months ended June 30, 2019 and 2018 , respectively, as the effect of exercise or settlement of those securities would be anti-dilutive. RSUs of zero for the three and six months ended June 30, 2019 and zero for the three and six months ended June 30, 2018 were excluded as the effect of exercise or settlement of those securities would be anti-dilutive. The following table represents EPS numbers for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 Earnings per common share Net income $ 368,267 $ 335,026 $ 615,770 $ 579,640 Weighted average number of common shares outstanding before restricted participating shares (in thousands) 351,106 361,268 351,310 360,987 Weighted average number of participating restricted common shares outstanding (in thousands) — — — — Weighted average number of common shares outstanding (in thousands) 351,106 361,268 351,310 360,987 Earnings per common share $ 1.05 $ 0.93 $ 1.75 $ 1.61 Earnings per common share - assuming dilution Net income $ 368,267 $ 335,026 $ 615,770 $ 579,640 Weighted average number of common shares outstanding (in thousands) 351,106 361,268 351,310 360,987 Effect of employee stock-based awards (in thousands) 450 790 516 842 Weighted average number of common shares outstanding - assuming dilution (in thousands) 351,556 362,058 351,826 361,829 Earnings per common share - assuming dilution $ 1.05 $ 0.93 $ 1.75 $ 1.60 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurement requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that can be accessed as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are those that are unobservable for the asset or liability and are used to measure fair value to the extent relevant observable inputs are not available. Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at June 30, 2019 and December 31, 2018 , and the level within the fair value hierarchy: June 30, 2019 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 99,756 $ 99,756 $ 99,756 $ — $ — Finance receivables held for investment, net (b) 25,645,374 26,536,662 — — 26,536,662 Restricted cash and cash equivalents (a) 2,272,621 2,272,621 2,272,621 — — Total $ 28,017,751 $ 28,909,039 $ 2,372,377 $ — $ 26,536,662 Liabilities: Notes payable — credit facilities (c) $ 6,514,163 $ 6,514,163 $ — $ — $ 6,514,163 Notes payable — secured structured financings (d) 26,248,528 26,499,153 — 19,182,978 7,316,175 Notes payable — related party (e) 4,002,814 4,047,246 — — 4,047,246 Total $ 36,765,505 $ 37,060,562 $ — $ 19,182,978 $ 17,877,584 December 31, 2018 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 148,436 $ 148,436 $ 148,436 $ — $ — Finance receivables held for investment, net (b) 24,914,833 26,037,559 — — 26,037,559 Restricted cash and cash equivalents (a) 2,102,048 2,102,048 2,102,048 — — Total $ 27,165,317 $ 28,288,043 $ 2,250,484 $ — $ 26,037,559 Liabilities: Notes payable — credit facilities (c) $ 4,478,214 $ 4,478,214 $ — $ — $ 4,478,214 Notes payable — secured structured financings (d) 26,901,530 26,994,912 — 17,924,867 9,070,045 Notes payable — related party (e) 3,503,293 3,438,543 — — 3,438,543 Total $ 34,883,037 $ 34,911,669 $ — $ 17,924,867 $ 16,986,802 (a) Cash and cash equivalents and restricted cash and cash equivalents — The carrying amount of cash and cash equivalents, including restricted cash and cash equivalents, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments are determined as follows: • Retail installment contracts held for investment and purchased receivables — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations. • Finance lease receivables — Finance lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. • Receivables from dealers and personal loans held for investment — Receivables from dealers and personal loans held for investment are carried at amortized cost, net of credit loss allowance. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (d) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, including historical default rates, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs. (e) Notes payable — related party — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company’s unsecured cost of funds since the time of issuance and weighted average life of these notes. Financial Instruments Measured At Fair Value On A Recurring Basis The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 , and the level within the fair value hierarchy: Fair Value Measurements at June 30, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 72,935 $ — $ 72,935 $ — Due from affiliates — trading interest rate caps (a) $ 15,305 — 15,305 — Other assets — cash flow hedging interest rate swaps (a) $ 12,225 — 12,225 — Other assets — trading interest rate swaps (a) 2,992 — 2,992 — Other assets — available-for-sale-debt securities (b) 94,643 — 94,643 — Other liabilities — trading options for interest rate caps (a) 72,935 — 72,935 — Other liabilities — cash flow hedging interest rate swaps (a) 41,037 — 41,037 — Due to affiliates — trading options for interest rate caps (a) 15,305 — 15,305 — Other liabilities — trading interest rate swaps (a) 12,171 — 12,171 — Retail installment contracts acquired individually (c) 8,832 — — 8,832 Fair Value Measurements at December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 128,377 $ — $ 128,377 $ — Other assets — cash flow hedging interest rate swaps (a) 43,967 — 43,967 — Other assets — trading interest rate swaps (a) 11,553 — 11,553 — Other liabilities — trading options for interest rate caps (a) 128,377 — 128,377 — Other liabilities — cash flow hedging interest rate swaps (a) 7,478 — 7,478 — Other liabilities — trading interest rate swaps (a) 2,130 — 2,130 — Retail installment contracts acquired individually (c) 13,509 — — 13,509 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 7). (b) The Company's available-for-sale debt securities includes U.S. Treasury securities that are valued utilizing observable market quotes. The Company obtains vendor trading platform data (actual prices) from a number of live data sources, including active market makers and interdealer brokers and therefore, classified as Level 2. (c) For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the condensed consolidated statement of income. The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance — beginning of period $ 11,195 $ 18,850 $ 13,509 $ 22,124 Additions / issuances 2,079 1,927 2,079 3,276 Net collection activities (4,412 ) (3,936 ) (7,066 ) (9,530 ) Gains recognized in earnings (30 ) 341 310 1,312 Balance — end of period $ 8,832 $ 17,182 $ 8,832 $ 17,182 The Company did not have any transfers between Levels 1 and 2 during the three and six months ended June 30, 2019 and 2018 . There were no amounts transferred into or out of Level 3 during the three and six months ended June 30, 2019 and 2018 . Financial Instruments Measured At Fair Value On A Nonrecurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 , and are categorized using the fair value hierarchy: Fair Value Measurements at June 30, 2019 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the six months ended June 30, 2019 Other assets — vehicles (a) 331,251 $ — $ 331,251 $ — $ — Personal loans held for sale (b) 955,729 — — 955,729 151,712 Retail installment contracts held for sale (d) 293,372 — 293,372 20,395 Auto loans impaired due to bankruptcy (c) 184,543 — 184,543 — 11,664 Fair Value Measurements at December 31, 2018 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the year ended December 31, 2018 Other assets — vehicles (a) $ 342,097 $ — $ 342,097 $ — $ — Personal loans held for sale (b) 1,068,757 — — 1,068,757 367,219 Retail installment contracts held for sale — — — — 15,098 Auto loans impaired due to bankruptcy (c) 189,114 — 189,114 — 18,083 ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates (principal and interest), discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. (c) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. (d) The estimated fair value of retail installment contracts held for sale is based on market participant view. Quantitative Information about Level 3 Fair Value Measurements The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at June 30, 2019 and December 31, 2018 : Financial Instruments Fair Value at June 30, 2019 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 8,832 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 955,729 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Financial Instruments Fair Value at December 31, 2018 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 13,509 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 1,068,757 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has granted stock options to certain executives, other employees, and independent directors under the Company’s 2011 Management Equity Plan (the MEP), which enabled the Company to make stock option awards up to a total of approximately 29 million common shares (net of shares canceled and forfeited). The MEP expired in January 2015 and the Company will not grant any further awards under the MEP. The Company has granted stock options, restricted stock awards and restricted stock units (RSUs) under the Omnibus Incentive Plan (the Plan), which was established in 2013 and enables the Company to grant awards of cash and of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, RSUs, and other awards that may be settled in or based upon the value of the Company’s common stock up to a total of 5,192,641 common shares. The Plan was amended and restated as of June 16, 2016. Stock options granted under the MEP and the Plan have an exercise price based on the estimated fair market value of the Company’s common stock on the grant date. The stock options expire ten years after grant date and include both time vesting options and performance vesting options. The fair value of the stock options is amortized into expense over the vesting period as time and performance vesting conditions are met. Compensation expense related to the 583,890 shares of restricted stock that the Company has issued to certain executives is recognized over a five -year vesting period, with zero recorded for the three and six months ended June 30, 2019 and 2018 . The Company recognized $7,042 and $5,794 related to stock options and restricted stock units within compensation expense for the six months ended June 30, 2019 and 2018 , respectively. In addition, the Company recognizes forfeitures of awards as they occur. A summary of the Company’s stock options and related activity as of and for the six months ended June 30, 2019 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2019 645,376 $ 13.15 4.0 $ 3,682 Granted — — — — Exercised (145,198 ) 9.73 — 1,674 Expired (1,480 ) 9.21 — — Forfeited — — — — Other (a) 1,480 9.21 — — Options outstanding at June 30, 2019 500,178 14.15 3.7 4,971 Options exercisable at June 30, 2019 $ 453,519 13.71 3.5 $ 4,703 (a) Represents stock options that were reinstated. In connection with compensation restrictions imposed on certain executive officers and other employees by the European Central Bank under the Capital Requirements Directive IV prudential rules, which require a portion of such officers’ and employees’ variable compensation to be paid in the form of equity, the Company periodically grants RSUs. Under the Plan, a portion of these RSUs vest immediately upon grant, and a portion vest annually over the following three or five years and subject to the achievement of certain performance conditions as applicable. After the shares subject to the RSUs vest and are settled, they are subject to transfer and sale restrictions for one year . In addition, the Company grants RSUs to certain officers and employees as part of variable compensation and these RSUs typically vest over three years . The Company also has granted certain directors RSUs that vest either upon the earlier of the first anniversary of grant date or the first annual stockholder meeting following the grant date. RSUs are valued based upon the fair market value on the date of the grant. A summary of the Company’s RSUs and performance stock units and related activity as of and for the six months ended June 30, 2019 is as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2019 698,799 $ 14.53 1.1 $ 12,292 Granted 473,325 20.83 — — Vested (541,812 ) 16.70 — 11,366 Forfeited/canceled (20,981 ) 13.35 — — Unvested as of June 30, 2019 609,331 17.62 1.5 $ 14,600 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases and Treasury Stock In May 2019, the Board approved a share repurchase program of up to $400 million in share repurchase of its outstanding common stock through the end of the second quarter of 2019, which concluded with the repurchase of $86.8 million of the Company’s common stock. The following table presents information regarding the shares we repurchased during the three and six months ended June 30, 2019 ($ and shares in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Total cost of shares repurchased $ 86,826 $ 104,587 Average price per share 23.16 22.18 Number of shares repurchased 3,749,692 4,715,122 Refer to Part II “Unregistered Sales of Equity Securities and Use of Proceeds” section for additional details on share repurchases. Further, in June 2019, the Company announced its planned capital actions for the third quarter of 2019 through the second quarter of 2020, which includes an authorization to repurchase up to $1.1 billion of the Company’s outstanding common stock through the end of the second quarter of 2020. The Company had 14,441,079 and 9,725,957 shares of treasury stock outstanding, with a cost of $292,574 and $187,930 as of June 30, 2019 , and December 31, 2018 , respectively. No shares were withheld to cover income taxes related to stock issued in connection with employee incentive compensation plans for the three months ended June 30, 2019 . The value of the treasury stock is included within the additional paid-in-capital. Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Beginning balance, unrealized gains (losses) $ 12,938 $ 63,211 $ 33,515 $ 44,262 Other comprehensive income (loss) before reclassifications (gross) (22,997 ) 7,015 (33,678 ) 29,934 Amounts (gross) reclassified out of accumulated other comprehensive income (loss) (10,508 ) (7,777 ) (20,404 ) (11,747 ) Ending balance, unrealized gains (losses) $ (20,567 ) $ 62,449 $ (20,567 ) $ 62,449 Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and six months ended June 30, 2019 and 2018 consist of the following: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (13,901 ) Interest expense $ (9,095 ) Interest expense Available for sale-debt securities $ — Investment gain/loss — Investment gain/loss Tax expense (benefit) 3,393 1,318 Net of tax $ (10,508 ) $ (7,777 ) Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (26,941 ) Interest expense $ (13,672 ) Interest expense Available for sale-debt securities $ — Investment gain/loss $ — Investment gain/loss Tax expense (benefit) $ 6,537 $ 1,925 Net of tax $ (20,404 ) $ (11,747 ) Dividends The Company paid a cash dividend of $0.20 per share in May 2019. Further, the Company has declared a cash dividend of $0.22 |
Investment Losses, Net
Investment Losses, Net | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Losses, Net | Investment Losses, Net When the Company sells retail installment contracts acquired individually, personal loans or leases to unrelated third parties or to VIEs and determines that such sale meets the applicable criteria for sale accounting, the Company recognizes a gain or loss for the difference between the cash proceeds and carrying value of the assets sold. The gain or loss is recorded in investment gains (losses), net. Lower of cost or market adjustments on the recorded investment of finance receivables held for sale are also recorded in investment gains (losses), net. Investment gains (losses), net was comprised of the following for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Gain (loss) on sale of loans and leases $ — $ (2,096 ) $ — $ (18,792 ) Lower of cost or market adjustments (84,021 ) (79,215 ) (151,712 ) (149,714 ) Other gains, (losses and impairments), net (766 ) (1,323 ) (172 ) (648 ) $ (84,787 ) $ (82,634 ) $ (151,884 ) $ (169,154 ) The lower of cost or market adjustments for the three and six months ended June 30, 2019 and 2018 included $97,267 , $206,421 , $89,513 , and $195,287 in customer default activity, respectively, and net favorable adjustments of $13,246 , $54,709 , $10,298 , and $45,573 |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered VIEs. The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements as of June 30, 2019 and December 31, 2018 , and for the three and six months ended June 30, 2019 and 2018 , have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the 2018 Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, impairment, fair value, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. |
Business Segment Information | Business Segment Information The Company has one reportable segment, Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and Dealer Loans, as well as financial products and services related to recreational vehicles and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards Since January 1, 2019, the Company adopted the following FASB ASUs: • In February 2016, the FASB issued ASU 2016-02, Leases . The primary effect of the ASU is to replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The Company adopted this standard using the modified retrospective method and utilized the optional transition method under which we continue to apply the legacy guidance in ASC 840, Leases, including its disclosure requirements, in the comparative period presented. For all our operating leases (primarily our office space/facility leases), where the Company is a lessee, adoption of the new standard resulted in recognizing on our balance sheet, a right-of-use (“ROU”) asset of $67,300 , a reduction of accounts payable and accrued expenses of $24,100 relating to straight-line rent accruals and unamortized tenant improvement allowances, and a lease liability of $91,400 . The right-of-use-asset and lease liability will be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition, the Company will no longer capitalize certain initial direct costs in connection with lease originations where it is the lessor. Further, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We elected not to (a) use the hindsight practical expedient to determine the lease term for existing leases; and (b) recognize a lease liability and associated ROU asset for short term leases if such lease meet the definition under ASC 842. We chose not to elect the practical expedient to not separate non-lease components from lease components. The standard did not have a material impact on our condensed consolidated statement of income or condensed consolidated statement of cash flows. • In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this standard effective January 1, 2019 and it did not have a material impact on the Company’s business, financial position or results of operations. • In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU permits use of the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting under Topic 815. The adoption of this standard did not have any impact on the Company’s business, financial position or results of operations. The adoption of the following ASUs did not have a material impact on the Company’s business, financial position or results of operations. • ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception • ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting • ASU 2018-09, Codification Improvements Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company’s credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in a material increase in the Company’s credit and capital reserves and related decrease in capital ratios. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In addition to those described in detail above, the Company is also in the process of evaluating the ASU 2018-17, Consolidation (Topic 10): Targeted Improvements to Related Party Guidance for Variable Interest Entities, but does not expect it to have a material impact on the Company’s business, financial position, results of operations or disclosures. |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Corrections to Previously Reported Amounts | The following tables summarize the impacts of the corrections on the condensed consolidated financial statements of income and comprehensive income: Three months ended June 30, 2018 Six Months Ended June 30, 2018 Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans $ 1,156,536 $ 54,470 $ 1,211,006 $ 2,270,673 $ 108,873 $ 2,379,546 Provision for credit losses 352,575 53,969 406,544 811,570 105,315 916,885 Income (loss) before income taxes 448,645 501 449,146 748,255 3,558 751,813 Income tax expense 114,004 116 114,120 171,315 857 172,172 Net income (loss) 334,641 385 335,026 576,940 2,700 579,640 Net income (loss) per common share (basic) $ 0.93 $ — $ 0.93 $ 1.60 $ 0.01 $ 1.61 Net income (loss) per common share (diluted) $ 0.92 $ 0.01 $ 0.93 $ 1.59 $ 0.01 $ 1.60 The following tables summarize the impacts of the corrections on the condensed consolidated statement of cash flows: Six Months Ended June 30, 2018 Reported Corrections Revised Net cash provided by operating activities $ 3,413,047 $ 99,192 $ 3,512,239 Net cash used in investing activities (4,773,776 ) (99,192 ) (4,872,968 ) In addition to the revision of the Company’s condensed consolidated financial statements, information within the footnotes to the condensed consolidated financial statements has been revised to reflect the correction of the errors discussed above. The following table summarizes the impacts of the corrections of those items, including table disclosures in Note 4-“Credit Loss Allowance and Credit Quality”: June 30, 2018 Reported Corrections Revised TDR - Unpaid principal balance $ 5,958,564 $ 139,716 $ 6,098,280 TDR - Impairment 1,496,580 167,642 1,664,222 TDR allowance ratio 25.1 % 2.2 % 27.3 % Nonaccrual loans TDRs 1,554,860 (957,705 ) 597,155 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,535,166 116,651 2,651,817 Delinquent principal over 59 days 1,151,410 83,092 1,234,502 Total delinquent principal 3,686,576 199,743 3,886,319 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Financing Receivables Held for Investment | Finance receivables held for investment, net is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail installment contracts acquired individually (a) $ 25,790,932 $ 25,065,511 Purchased receivables-Credit Impaired 15,419 19,235 Receivables from dealers 12,875 14,557 Personal loans — 2,014 Finance lease receivables (Note 3) 19,523 16,137 Finance receivables held for investment, net $ 25,838,749 $ 25,117,454 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of June 30, 2019 and December 31, 2018 , $8,832 and $13,509 of loans were recorded at fair value (Note 13). The Company’s held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 Retail Installment Contracts Receivables from Non-TDR TDR Unpaid principal balance $ 24,451,977 $ 4,519,334 $ 13,010 Credit loss allowance - specific — (1,156,303 ) — Credit loss allowance - collective (1,961,893 ) — (135 ) Discount (120,523 ) (26,736 ) — Capitalized origination costs and fees 81,581 3,495 — Net carrying balance $ 22,451,142 $ 3,339,790 $ 12,875 The remaining balance of personal loans, held for investment, was charged off during the quarter ended June 30, 2019. December 31, 2018 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 23,054,157 $ 5,378,603 $ 14,710 $ 2,637 Credit loss allowance - specific — (1,416,743 ) — — Credit loss allowance - collective (1,819,360 ) — (153 ) (761 ) Discount (172,659 ) (40,333 ) — — Capitalized origination costs and fees 77,398 4,448 — 138 Net carrying balance $ 21,139,536 $ 3,925,975 $ 14,557 $ 2,014 |
Schedule of Finance Receivables, Deteriorated Credit Quality | Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Outstanding balance $ 25,637 $ 30,631 Outstanding recorded investment, net of impairment 15,533 19,390 |
Changes in Accretable Yield on Purchased Receivables Portfolios | Changes in accretable yield on the Company’s purchased receivables portfolios-credit impaired for the periods indicated were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance — beginning of period $ 17,892 $ 18,446 $ 18,145 $ 19,464 Accretion of accretable yield (940 ) (2,245 ) (2,353 ) (5,085 ) Reclassifications from (to) nonaccretable difference (a) (3,194 ) 2,167 (2,034 ) 3,989 Balance — end of period $ 13,758 $ 18,368 $ 13,758 $ 18,368 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. |
Schedule of Carrying Values of Finance Receivables Held for Sale | The carrying value of the Company’s finance receivables held for sale, net is comprised of the following at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail installment contracts acquired individually $ 293,372 $ — Personal loans 955,729 1,068,757 Finance receivables held for sale, net $ 1,249,101 $ 1,068,757 |
Schedule of Sales of Retail Installment Contracts and Charged-off Assets | Sales of retail installment contracts and proceeds from sales of charged-off assets for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Sales of retail installment contracts to affiliates $ — $ 1,156,060 — 2,631,313 Proceeds from sales of charged-off assets to third parties 6,148 16,638 26,373 34,875 |
Leases (SC as Lessor) (Tables)
Leases (SC as Lessor) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Leased Vehicles, Net | Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Leased vehicles $ 20,190,000 $ 18,737,338 Less: accumulated depreciation (3,665,402 ) (3,518,025 ) Depreciated net capitalized cost 16,524,598 15,219,313 Manufacturer subvention payments, net of accretion (1,292,015 ) (1,307,424 ) Origination fees and other costs 80,786 66,966 Net book value $ 15,313,369 $ 13,978,855 |
Summary of Maturity of Operating Lease Payments to be Received | The following summarizes the maturity analysis of lease payments due to the Company as lessor under operating leases as of June 30, 2019 : Remainder of 2019 $ 1,354,257 2020 2,219,761 2021 1,170,434 2022 197,514 2023 9,722 Thereafter — Total $ 4,951,688 |
Schedule of Finance Lease Receivables, Net | Finance lease receivables, net consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, December 31, Gross investment in finance leases $ 28,783 $ 23,809 Origination fees and other 188 152 Less: unearned income (5,520 ) (4,465 ) Net investment in finance leases before allowance 23,451 19,496 Less: allowance for lease losses (3,928 ) (3,359 ) Net investment in finance leases $ 19,523 $ 16,137 |
Summary of Maturity of Finance Lease Payments to be Received | The following summarizes the maturity analysis of lease payments due to the Company as lessor under finance leases as of June 30, 2019 : Remainder of 2019 $ 4,163 2020 8,244 2021 7,187 2022 5,382 2023 3,166 Thereafter 641 Total $ 28,783 |
Credit Loss Allowance and Cre_2
Credit Loss Allowance and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of Activity in Loan Loss Allowance | The activity in the credit loss allowance for individually acquired retail installment contracts and Dealer Loans for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,891,351 $ 1,280,649 $ 137 $ 605 $ 1,597,057 $ 1,716,132 $ 161 $ 1,714 Provision for credit losses 365,604 63,414 (2 ) 1,070 263,648 144,750 (3 ) (83 ) Charge-offs (a) (795,901 ) (369,523 ) — (1,761 ) (605,658 ) (412,710 ) — (695 ) Recoveries 517,626 185,371 — 86 396,667 216,050 — 180 Transfers to held-for-sale (16,787 ) (3,608 ) — — — — — — Balance — end of period $ 1,961,893 $ 1,156,303 $ 135 $ — $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 (a) For the three months ended June 30, 2019 and June 30, 2018 , charge-offs for retail installment contracts acquired individually includes approximately $7 million and $7 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,819,360 $ 1,416,743 $ 153 $ 761 $ 1,540,315 $ 1,804,132 $ 164 $ 2,565 Provision for credit losses 812,092 168,027 (18 ) 1,153 550,099 368,324 (6 ) (185 ) Charge-offs (a) (1,723,358 ) (836,160 ) — (2,107 ) (1,260,827 ) (960,053 ) — (1,763 ) Recoveries 1,070,586 411,301 — 193 822,127 451,819 — 499 Transfers to held-for-sale (16,787 ) (3,608 ) — — — — — — Balance — end of period $ 1,961,893 $ 1,156,303 $ 135 $ — $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 (a) For the six months ended June 30, 2019 and June 30, 2018 , charge-offs for retail installment contracts acquired individually includes approximately $12 million and $14 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. The Company estimates losses on the finance lease receivable portfolio based on delinquency status and loss experience to date, as well as various economic factors. The activity in the lease loss allowance for finance leases for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Balance — beginning of period $ 3,508 $ 5,757 $ 3,359 $ 5,642 Provision for lease losses 595 (1,769 ) $ 916 (1,348 ) Charge-offs (1,130 ) (1,760 ) $ (1,789 ) (3,141 ) Recoveries 955 1,354 $ 1,442 2,429 Balance — end of period $ 3,928 $ 3,582 $ 3,928 $ 3,582 |
Summary of Delinquencies | A summary of delinquencies as of June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,723,639 $ 2,548 $ 2,726,187 Delinquent principal over 59 days (a) 1,367,310 1,117 1,368,427 Total delinquent principal $ 4,090,949 $ 3,665 $ 4,094,614 December 31, 2018 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 3,118,869 $ 2,926 $ 3,121,795 Delinquent principal over 59 days (a) 1,712,243 1,532 1,713,775 Total delinquent principal $ 4,831,112 $ 4,458 $ 4,835,570 (a) Interest is generally accrued until 60 days past due in accordance with the Company’s accounting policy for retail installment contracts. |
Summary of Financing Receivables on Nonaccrual Status | The retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Amount Percent (a) Amount Percent (a) Non-TDR $ 864,619 3.0 % $ 834,921 2.9 % TDR 546,495 1.9 % 733,218 2.6 % Total nonaccrual principal $ 1,411,114 4.9 % $ 1,568,139 5.5 % (a) Percent of unpaid principal balance of total retail installment contracts individually held for investment. |
Summary of Credit Risk Profile | A summary of the credit risk profile of the Company’s retail installment contracts held for investment by FICO ® distribution, determined at origination, as of June 30, 2019 and December 31, 2018 was as follows: FICO ® Band June 30, 2019 (b) December 31, 2018 (b) Commercial (a) 2.1% 1.9% No-FICOs 10.9% 11.0% <540 18.8% 19.8% 540-599 33.2% 32.9% 600-639 18.9% 18.2% >640 16.1% 16.2% (a) No FICO score is obtained on loans to commercial borrowers. (b) Percentages are based on unpaid principal balance. |
Summary of TDRs | The table below presents the Company’s TDRs as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Retail Installment Contracts Outstanding recorded investment (a) $ 4,492,654 $ 5,365,477 Impairment (1,156,303 ) (1,416,743 ) Outstanding recorded investment, net of impairment $ 3,336,351 $ 3,948,734 (a) As of June 30, 2019 , the outstanding recorded investment excludes $94.2 million of collateral-dependent bankruptcy TDRs that have been written down by $39.0 million to fair value less cost to sell. As of December 31, 2018 , the outstanding recorded investment excludes $90.1 million of collateral-dependent bankruptcy TDRs that have been written down by $36.4 million to fair value less cost to sell. |
Summary of Delinquent TDRs | A summary of the Company’s delinquent TDRs at June 30, 2019 and December 31, 2018 , is as follows: June 30, 2019 December 31, 2018 Retail Installment Contracts (a) Principal, 30-59 days past due $ 991,730 $ 1,265,946 Delinquent principal over 59 days 555,864 810,589 Total delinquent TDR principal $ 1,547,594 $ 2,076,535 (a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance. |
Average Recorded Investment and Income Recognized on TDR Loans | Average recorded investment and interest income recognized on TDR loans are as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 4,745,931 $ 6,118,495 $ 4,970,364 $ 6,248,219 Interest income recognized $ 199,305 257,275 $ 434,993 551,062 |
Summary of Financial Effects of TDRs | The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs (including collateral-dependent bankruptcy TDRs) that occurred for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Outstanding recorded investment before TDR $ 295,540 $ 723,925 $ 627,549 $ 1,308,373 Outstanding recorded investment after TDR $ 296,257 $ 725,438 $ 628,887 $ 1,308,102 Number of contracts (not in thousands) 17,335 43,265 $ 37,208 $ 77,639 |
Summary of Loan Restructuring Accounted for as TDRs | Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2019 and 2018 are summarized in the following table: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 90,128 $ 144,561 $ 216,365 $ 339,826 Number of contracts (not in thousands) 5,335 8,707 $ 12,907 $ 20,247 (a) For TDR modifications and TDR modifications that subsequently defaults, the allowance methodology remains unchanged; however, the transition rates of the TDR loans are adjusted to reflect the respective risks. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facilities | The following table presents information regarding the Company’s credit facilities as of June 30, 2019 and December 31, 2018 : June 30, 2019 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line June 2021 $ 186,983 $ 500,000 4.04% $ 267,358 $ — Warehouse line March 2021 1,061,345 1,250,000 3.66% 1,552,733 — Warehouse line (a) August 2020 2,966,543 4,400,000 3.73% 4,080,313 3,849 Warehouse line October 2020 881,577 2,050,000 4.38% 1,203,771 46 Repurchase facility (b) September 2019 330,062 330,062 3.80% 452,740 — Repurchase facility (b) July 2019 95,633 95,633 3.04% 153,680 — Warehouse line November 2020 585,400 1,000,000 3.76% 922,796 — Warehouse line November 2020 315,720 500,000 3.28% 349,564 486 Warehouse line June 2021 90,900 350,000 5.66% 101,504 239 Total facilities with third parties 6,514,163 10,475,695 9,084,459 4,620 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note March 2021 300,000 300,000 3.95% Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note (c) March 2022 650,000 650,000 4.20% — — Promissory Note June 2022 500,000 500,000 5.82% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit July 2021 — 500,000 4.27% — — Line of credit March 2022 — 3,000,000 5.60% — — Total facilities with Santander and related subsidiaries 4,000,000 7,500,000 — — Total revolving credit facilities $ 10,514,163 $ 17,975,695 $ 9,084,459 $ 4,620 (a) This line is held exclusively for financing of Chrysler Capital leases. (b) The repurchase facilities are collateralized by securitization notes payable retained by the Company. As the borrower, we are exposed to liquidity risk due to changes in the market value of the retained securities pledged. In some instances, we place or receive cash collateral with counterparties under collateral arrangements associated with our repurchase agreements. The maturity date for the repurchase facility trade that expires in July 2019 was extended to October 2019. (c) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of June 30, 2019 and December 31, 2018 was $2.8 million and $3.2 million , respectively, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt. December 31, 2018 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2019 $ 53,584 $ 500,000 8.34% $ 78,790 $ — Warehouse line Various 314,845 1,250,000 4.83% 458,390 — Warehouse line August 2020 2,154,243 4,400,000 3.79% 2,859,113 4,831 Warehouse line October 2020 242,377 2,050,000 5.94% 345,599 120 Repurchase facility April 2019 167,118 167,118 3.84% 235,540 — Repurchase facility March 2019 131,827 131,827 3.54% 166,308 — Warehouse line November 2020 1,000,000 1,000,000 3.32% 1,430,524 6 Warehouse line November 2020 317,020 500,000 3.53% 359,214 525 Warehouse line October 2019 97,200 350,000 4.35% 108,418 328 Total facilities with third parties 4,478,214 10,348,945 6,041,896 5,810 Facilities with Santander and related subsidiaries: Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note March 2019 300,000 300,000 4.09% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.38% — — Line of credit July 2021 — 500,000 4.34% — — Line of credit March 2019 — 3,000,000 4.97% — — Total facilities with Santander and related subsidiaries 3,500,000 7,000,000 — — Total revolving credit facilities $ 7,978,214 $ 17,348,945 $ 6,041,896 $ 5,810 |
Summary of Secured Structured Financings | The following table presents information regarding secured structured financings as of June 30, 2019 and December 31, 2018 : June 30, 2019 Estimated Maturity Date(s) Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2015 Securitizations April 2021 - January 2023 1,179,917 9,054,732 1.33%-2.29% 1,416,611 277,660 2016 Securitizations April 2022- March 2024 1,627,222 7,462,790 1.63%-2.8% 2,145,078 265,020 2017 Securitizations July 2022 - September 2024 3,210,416 9,296,570 1.35%-2.52% 4,648,860 333,728 2018 Securitizations May 2022 - April 2026 7,211,450 12,039,840 2.41%-3.42% 9,521,053 527,200 2019 Securitizations May 2024-October 2026 5,865,241 6,477,310 2.56%-3.34% 7,240,492 270,321 Public Securitizations (a) 19,094,246 44,331,242 24,972,094 1,673,929 2013 Private issuances November 2020 - September 2024 1,307,640 2,044,054 1.28%-1.38% 2,091,902 1,230 2015 Private issuances July 2019-September 2021 113,289 1,000,000 0.88%-1.05% 206,326 1,473 2016 Private issuances August 2020 - Sept 2024 70,786 1,200,000 1.93%-2.35% 177,175 265 2017 Private issuances April 2021 - Sept 2021 241,350 1,600,000 1.85%-2.44% 605,018 2,315 2018 Private issuance June 2022-April 2024 4,439,453 4,536,002 2.42%-3.53% 6,188,294 11,877 2019 Private issuance September 2022 981,764 1,026,766 3.34% 1,260,503 2,071 Privately issued amortizing notes (c) 7,154,282 11,406,822 10,529,218 19,231 Total secured structured financings $ 26,248,528 $ 55,738,064 $ 35,501,312 $ 1,693,160 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company’s collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 were paid in full. (d) Excludes securitizations which no longer has outstanding debt and excludes any incremental borrowings. December 31, 2018 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2014 Securitizations January 2022 - April 2022 $ 246,989 $ 2,291,020 1.16% - 1.27% $ 334,888 $ 65,028 2015 Securitizations April 2021 - January 2023 1,651,411 9,054,732 1.33% - 2.29% 1,979,942 288,654 2016 Securitizations April 2022 - March 2024 2,233,720 7,462,790 1.63% - 2.80% 2,876,141 285,300 2017 Securitizations July 2022 - September 2024 4,385,029 9,296,570 1.35% - 2.52% 6,090,150 352,833 2018 Securitizations May 2022 -April 2026 10,708,030 13,275,840 2.41% - 3.53% 13,631,783 549,899 Public Securitizations 19,225,179 41,380,952 24,912,904 1,541,714 2013 Private issuance November 2020 - September 2024 1,507,241 2,044,054 1.28% - 1.38% 2,896,344 3,021 2015 Private issuances June 2019 -September 2021 1,043,723 1,811,312 0.88% - 2.80% 350,212 2,215 2016 Private issuances August 2020 - September 2024 454,280 2,550,000 1.93% - 2.86% 901,641 1,661 2017 Private issuances April 2021 -September 2021 689,152 1,600,000 1.85% - 2.44% 1,037,263 5,716 2018 Private issuances June 2022 - April 2024 3,981,955 3,300,002 2.42% - 3.17% 5,197,806 22,588 Privately issued amortizing notes 7,676,351 11,305,368 10,383,266 35,201 Total secured structured financings $ 26,901,530 $ 52,686,320 $ 35,296,170 $ 1,576,915 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity Disclosure [Abstract] | |
Summary of Cash Flows Received from Consolidated Securitization Trusts | A summary of the cash flows received from consolidated securitization trusts during the three and six months ended June 30, 2019 and 2018 , is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Assets securitized $ 4,913,261 $ 6,511,953 $ 9,841,723 $ 13,752,897 Net proceeds from new securitizations (a) $ 3,794,437 $ 4,581,874 $ 7,757,055 $ 8,058,196 Net proceeds from retained bonds 99,999 382,022 117,305 593,632 Cash received for servicing fees (b) 289,634 213,900 497,959 429,690 Net distributions from Trusts (b) 1,078,665 780,834 1,671,434 1,325,986 Total cash received from Trusts $ 5,262,735 $ 5,958,630 $ 10,043,753 $ 10,407,504 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. A summary of the cash flows received from off-balance sheet securitization trusts for the three and six months ended June 30, 2019 and 2018 , is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Receivables securitized (a) $ — $ 1,156,060 $ — $ 2,631,313 Net proceeds from new securitizations $ — $ 1,160,119 $ — $ 2,634,939 Cash received for servicing fees 9,357 12,616 19,608 20,694 Total cash received from securitization trusts $ 9,357 $ 1,172,735 $ 19,608 $ 2,655,633 (a) Represents the unpaid principal balance at the time of original securitization. |
Off-balance Sheet Variable Interest Entities Portfolio | The portfolio was comprised as follows: June 30, December 31, SPAIN $ 2,776,169 $ 3,461,793 Total serviced for related parties 2,776,169 3,461,793 Chrysler Capital securitizations 369,113 611,050 Total serviced for third parties 369,113 611,050 Total serviced for others portfolio $ 3,145,282 $ 4,072,843 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Underlying Notional Amounts and Aggregate Fair Values | The underlying notional amounts and aggregate fair values of these derivatives financial instruments at June 30, 2019 and December 31, 2018 , are as follows: June 30, 2019 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,150,000 $ (28,812 ) $ 12,225 $ (41,037 ) Interest rate swap agreements not designated as hedges 2,110,000 (9,179 ) 2,992 (12,171 ) Interest rate cap agreements 9,203,381 88,240 88,240 — Options for interest rate cap agreements 9,203,381 (88,240 ) — (88,240 ) December 31, 2018 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 3,933,500 $ 36,489 $ 43,967 $ (7,478 ) Interest rate swap agreements not designated as hedges 2,270,200 9,423 11,553 (2,130 ) Interest rate cap agreements 7,741,765 128,377 128,377 — Options for interest rate cap agreements 7,741,765 (128,377 ) — (128,377 ) |
Schedule of Offsetting Financial Assets | Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of June 30, 2019 and December 31, 2018 : Gross Amounts Not Offset in the Assets Presented Collateral Net June 30, 2019 Interest rate swaps - third party (b) $ 15,217 $ (3,836 ) $ 11,381 Interest rate caps - Santander and affiliates 15,305 (4,391 ) 10,914 Interest rate caps - third party 72,935 (46,807 ) 26,128 Total derivatives subject to a master netting arrangement or similar arrangement 103,457 (55,034 ) 48,423 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 103,457 $ (55,034 ) $ 48,423 Total financial assets $ 103,457 $ (55,034 ) $ 48,423 December 31, 2018 Interest rate swaps - third party (b) $ 55,520 $ (23,929 ) $ 31,591 Interest rate caps - third party 128,377 (72,830 ) 55,547 Total derivatives subject to a master netting arrangement or similar arrangement 183,897 (96,759 ) 87,138 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 183,897 $ (96,759 ) $ 87,138 Total financial assets $ 183,897 $ (96,759 ) $ 87,138 (a) Collateral received includes cash, cash equivalents, and other financial instruments. Cash collateral received is reported in Other liabilities in the consolidated balance sheet. Financial instruments that are pledged to the Company are not reflected in the accompanying consolidated balance sheet since the Company does not control or have the ability of rehypothecation of these instruments. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. Gross Amounts Not Offset in the Liabilities Presented Collateral Net June 30, 2019 Interest rate swaps - third party (b) $ 53,208 $ (53,208 ) $ — Interest rate caps - Santander and affiliates 15,305 (15,305 ) — Interest rate caps - third party 72,935 (72,935 ) — Total derivatives subject to a master netting arrangement or similar arrangement 141,448 (141,448 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 141,448 $ (141,448 ) $ — Total financial liabilities $ 141,448 $ (141,448 ) $ — December 31, 2018 Interest rate swaps - third party $ 9,608 $ (9,608 ) $ — Interest rate caps - third party 128,377 (128,377 ) — Total derivatives subject to a master netting arrangement or similar arrangement 137,985 (137,985 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 137,985 $ (137,985 ) $ — Total financial liabilities $ 137,985 $ (137,985 ) $ — |
Schedule of Offsetting Financial Liabilities | Gross Amounts Not Offset in the Liabilities Presented Collateral Net June 30, 2019 Interest rate swaps - third party (b) $ 53,208 $ (53,208 ) $ — Interest rate caps - Santander and affiliates 15,305 (15,305 ) — Interest rate caps - third party 72,935 (72,935 ) — Total derivatives subject to a master netting arrangement or similar arrangement 141,448 (141,448 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 141,448 $ (141,448 ) $ — Total financial liabilities $ 141,448 $ (141,448 ) $ — December 31, 2018 Interest rate swaps - third party $ 9,608 $ (9,608 ) $ — Interest rate caps - third party 128,377 (128,377 ) — Total derivatives subject to a master netting arrangement or similar arrangement 137,985 (137,985 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 137,985 $ (137,985 ) $ — Total financial liabilities $ 137,985 $ (137,985 ) $ — (a) Collateral pledged includes cash, cash equivalents, and other financial instruments. These balances are reported in Other assets in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. |
Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) | The impacts on the condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (31,014 ) $ 13,901 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 8,446 Three Months Ended June 30, 2018 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 8,412 $ 9,095 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (22 ) Six Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (45,807 ) $ 26,941 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 13,847 Six Months Ended June 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 34,841 $ 13,672 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (9,739 ) |
Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) | The impacts on the condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (31,014 ) $ 13,901 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 8,446 Three Months Ended June 30, 2018 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 8,412 $ 9,095 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (22 ) Six Months Ended June 30, 2019 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (45,807 ) $ 26,941 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses 13,847 Six Months Ended June 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 34,841 $ 13,672 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (9,739 ) |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets, Leases And Investments [Abstract] | |
Schedule of Other Assets | Other assets were comprised as follows: June 30, December 31, Vehicles (a) $ 331,251 $ 342,097 Manufacturer subvention payments receivable (b) 126,185 106,313 Upfront fee (b) 113,827 65,000 Derivative assets (third party) at fair value (c) 88,152 183,897 Derivative - collateral 173,226 150,783 Operating leases (Right-of-use-assets) 63,235 — Available-for-sale debt securities 94,643 — Prepaids 40,076 29,080 Accounts receivable 33,111 28,511 Other 26,040 57,666 Other assets $ 1,089,746 $ 963,347 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the Chrysler Agreement. The fee is being amortized into finance and other interest income over a ten-year term. In addition, in June 2019, in connection with the execution of the sixth amendment to the Chrysler Agreement, the Company paid $60,000 upfront fee to FCA. This fee is being amortized into finance and other interest income over the remaining term of the Chrysler Agreement. (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 7 to these Condensed Consolidated Financial Statements for the detail of these amounts. |
Supplemental Information Related to Operating Leases | Supplemental information relating to these operating leases is as follows: June 30, Operating leases-right of use assets $ 63,235 Other liabilities 85,939 Weighted average lease term 6.5 years Weighted average discount rate 3.40 % |
Schedule of Maturity of Lease Liabilities | The maturity of lease liabilities at June 30, 2019 are as follows: 2019 $ 8,382 2020 16,716 2021 13,201 2022 12,555 2023 12,678 Thereafter 32,391 Total $ 95,923 Less: Interest (9,984 ) Present value of lease liabilities $ 85,939 |
Schedule of Debt Securities, AFS | The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of debt securities AFS as of June 30, 2019 : June 30, 2019 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 93,321 $ 1,322 $ — $ 94,643 Contractual Maturities The contractual maturities of available-for-sale debt instruments are summarized in the following table. Amortized cost Fair value Due within one year $ 2,931 $ 2,997 Due after one year but within 5 years 90,390 91,646 Total $ 93,321 $ 94,643 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Liabilities for Commitments and Contingencies | The following table summarizes liabilities recorded for commitments and contingencies as of June 30, 2019 and December 31, 2018 , all of which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency June 30, 2019 December 31, 2018 Chrysler Agreement Revenue-sharing and gain/(loss), net-sharing payments $ 19,893 $ 7,001 Agreement with Bank of America Servicer performance fee 5,249 6,353 Agreement with CBP Loss-sharing payments 2,498 3,708 Other Contingencies Consumer arrangements 596 2,138 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 100,000 97,700 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of June 30, 2019 and December 31, 2018 is as follows: June 30, December 31, Total serviced portfolio $ 327,902 $ 383,246 Cash collections due to owner 28,118 14,920 Servicing fees receivable 187 601 Interest expense, including unused fees, for affiliate lines of credit for the three and six months ended June 30, 2019 and 2018 , was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Lines of credit agreement with Santander - New York Branch (a) $ — $ 5,741 $ — $ 10,108 Debt facilities with SHUSA (Note 5) 45,996 36,561 90,877 72,407 (a) Through its New York branch, Santander provided the Company with revolving credit facilities. During the year ended December 31, 2018 these facilities were terminated. Accrued interest for affiliate lines of credit at June 30, 2019 and December 31, 2018 , was as follows: June 30, December 31, 2018 Debt facilities with SHUSA (Note 5) 20,533 19,928 Other information related to the above transactions with SBNA is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Origination and renewal fee income from SBNA (a) $ 1,704 $ 1,232 $ 2,927 $ 2,072 Servicing fees expenses charged by SBNA (b) 19 20 32 39 (a) As of June 30, 2019 and December 31, 2018 , the Company had origination and renewal fees receivable from SBNA of $635 and $385 , respectively. (b) As of June 30, 2019 and December 31, 2018 , the Company had $16 and $19 of servicing fees payable to SBNA, respectively . Other information relating to SPAIN securitization platform for the six months ended June 30, 2019 and June 30, 2018 is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Servicing fee income $ 7,711 $ 8,622 $ 16,142 $ 15,822 Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) — 3,177 — 20,080 |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Earnings per Common Share | The following table represents EPS numbers for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 Earnings per common share Net income $ 368,267 $ 335,026 $ 615,770 $ 579,640 Weighted average number of common shares outstanding before restricted participating shares (in thousands) 351,106 361,268 351,310 360,987 Weighted average number of participating restricted common shares outstanding (in thousands) — — — — Weighted average number of common shares outstanding (in thousands) 351,106 361,268 351,310 360,987 Earnings per common share $ 1.05 $ 0.93 $ 1.75 $ 1.61 Earnings per common share - assuming dilution Net income $ 368,267 $ 335,026 $ 615,770 $ 579,640 Weighted average number of common shares outstanding (in thousands) 351,106 361,268 351,310 360,987 Effect of employee stock-based awards (in thousands) 450 790 516 842 Weighted average number of common shares outstanding - assuming dilution (in thousands) 351,556 362,058 351,826 361,829 Earnings per common share - assuming dilution $ 1.05 $ 0.93 $ 1.75 $ 1.60 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Estimates, Methods and Assumptions | The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at June 30, 2019 and December 31, 2018 , and the level within the fair value hierarchy: June 30, 2019 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 99,756 $ 99,756 $ 99,756 $ — $ — Finance receivables held for investment, net (b) 25,645,374 26,536,662 — — 26,536,662 Restricted cash and cash equivalents (a) 2,272,621 2,272,621 2,272,621 — — Total $ 28,017,751 $ 28,909,039 $ 2,372,377 $ — $ 26,536,662 Liabilities: Notes payable — credit facilities (c) $ 6,514,163 $ 6,514,163 $ — $ — $ 6,514,163 Notes payable — secured structured financings (d) 26,248,528 26,499,153 — 19,182,978 7,316,175 Notes payable — related party (e) 4,002,814 4,047,246 — — 4,047,246 Total $ 36,765,505 $ 37,060,562 $ — $ 19,182,978 $ 17,877,584 December 31, 2018 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 148,436 $ 148,436 $ 148,436 $ — $ — Finance receivables held for investment, net (b) 24,914,833 26,037,559 — — 26,037,559 Restricted cash and cash equivalents (a) 2,102,048 2,102,048 2,102,048 — — Total $ 27,165,317 $ 28,288,043 $ 2,250,484 $ — $ 26,037,559 Liabilities: Notes payable — credit facilities (c) $ 4,478,214 $ 4,478,214 $ — $ — $ 4,478,214 Notes payable — secured structured financings (d) 26,901,530 26,994,912 — 17,924,867 9,070,045 Notes payable — related party (e) 3,503,293 3,438,543 — — 3,438,543 Total $ 34,883,037 $ 34,911,669 $ — $ 17,924,867 $ 16,986,802 (a) Cash and cash equivalents and restricted cash and cash equivalents — The carrying amount of cash and cash equivalents, including restricted cash and cash equivalents, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments are determined as follows: • Retail installment contracts held for investment and purchased receivables — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations. • Finance lease receivables — Finance lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. • Receivables from dealers and personal loans held for investment — Receivables from dealers and personal loans held for investment are carried at amortized cost, net of credit loss allowance. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (d) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, including historical default rates, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs. (e) Notes payable — related party — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company’s unsecured cost of funds since the time of issuance and weighted average life of these notes. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 , and the level within the fair value hierarchy: Fair Value Measurements at June 30, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 72,935 $ — $ 72,935 $ — Due from affiliates — trading interest rate caps (a) $ 15,305 — 15,305 — Other assets — cash flow hedging interest rate swaps (a) $ 12,225 — 12,225 — Other assets — trading interest rate swaps (a) 2,992 — 2,992 — Other assets — available-for-sale-debt securities (b) 94,643 — 94,643 — Other liabilities — trading options for interest rate caps (a) 72,935 — 72,935 — Other liabilities — cash flow hedging interest rate swaps (a) 41,037 — 41,037 — Due to affiliates — trading options for interest rate caps (a) 15,305 — 15,305 — Other liabilities — trading interest rate swaps (a) 12,171 — 12,171 — Retail installment contracts acquired individually (c) 8,832 — — 8,832 Fair Value Measurements at December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 128,377 $ — $ 128,377 $ — Other assets — cash flow hedging interest rate swaps (a) 43,967 — 43,967 — Other assets — trading interest rate swaps (a) 11,553 — 11,553 — Other liabilities — trading options for interest rate caps (a) 128,377 — 128,377 — Other liabilities — cash flow hedging interest rate swaps (a) 7,478 — 7,478 — Other liabilities — trading interest rate swaps (a) 2,130 — 2,130 — Retail installment contracts acquired individually (c) 13,509 — — 13,509 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 7). (b) The Company's available-for-sale debt securities includes U.S. Treasury securities that are valued utilizing observable market quotes. The Company obtains vendor trading platform data (actual prices) from a number of live data sources, including active market makers and interdealer brokers and therefore, classified as Level 2. (c) For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the condensed consolidated statement of income. |
Changes in Level 3 Balances, Assets | The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance — beginning of period $ 11,195 $ 18,850 $ 13,509 $ 22,124 Additions / issuances 2,079 1,927 2,079 3,276 Net collection activities (4,412 ) (3,936 ) (7,066 ) (9,530 ) Gains recognized in earnings (30 ) 341 310 1,312 Balance — end of period $ 8,832 $ 17,182 $ 8,832 $ 17,182 |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 , and are categorized using the fair value hierarchy: Fair Value Measurements at June 30, 2019 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the six months ended June 30, 2019 Other assets — vehicles (a) 331,251 $ — $ 331,251 $ — $ — Personal loans held for sale (b) 955,729 — — 955,729 151,712 Retail installment contracts held for sale (d) 293,372 — 293,372 20,395 Auto loans impaired due to bankruptcy (c) 184,543 — 184,543 — 11,664 Fair Value Measurements at December 31, 2018 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the year ended December 31, 2018 Other assets — vehicles (a) $ 342,097 $ — $ 342,097 $ — $ — Personal loans held for sale (b) 1,068,757 — — 1,068,757 367,219 Retail installment contracts held for sale — — — — 15,098 Auto loans impaired due to bankruptcy (c) 189,114 — 189,114 — 18,083 ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates (principal and interest), discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. (c) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. (d) The estimated fair value of retail installment contracts held for sale is based on market participant view. |
Quantitative Information About Significant Unobservable Inputs for Liabilities Measured at Fair Value | The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at June 30, 2019 and December 31, 2018 : Financial Instruments Fair Value at June 30, 2019 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 8,832 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 955,729 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Financial Instruments Fair Value at December 31, 2018 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 13,509 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 1,068,757 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options and Related Activity | A summary of the Company’s stock options and related activity as of and for the six months ended June 30, 2019 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2019 645,376 $ 13.15 4.0 $ 3,682 Granted — — — — Exercised (145,198 ) 9.73 — 1,674 Expired (1,480 ) 9.21 — — Forfeited — — — — Other (a) 1,480 9.21 — — Options outstanding at June 30, 2019 500,178 14.15 3.7 4,971 Options exercisable at June 30, 2019 $ 453,519 13.71 3.5 $ 4,703 (a) Represents stock options that were reinstated. |
Schedule of Nonvested Restricted Stock Units and Performance Stock Units Activity | A summary of the Company’s RSUs and performance stock units and related activity as of and for the six months ended June 30, 2019 is as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2019 698,799 $ 14.53 1.1 $ 12,292 Granted 473,325 20.83 — — Vested (541,812 ) 16.70 — 11,366 Forfeited/canceled (20,981 ) 13.35 — — Unvested as of June 30, 2019 609,331 17.62 1.5 $ 14,600 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Shares Repurchase | The following table presents information regarding the shares we repurchased during the three and six months ended June 30, 2019 ($ and shares in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Total cost of shares repurchased $ 86,826 $ 104,587 Average price per share 23.16 22.18 Number of shares repurchased 3,749,692 4,715,122 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Beginning balance, unrealized gains (losses) $ 12,938 $ 63,211 $ 33,515 $ 44,262 Other comprehensive income (loss) before reclassifications (gross) (22,997 ) 7,015 (33,678 ) 29,934 Amounts (gross) reclassified out of accumulated other comprehensive income (loss) (10,508 ) (7,777 ) (20,404 ) (11,747 ) Ending balance, unrealized gains (losses) $ (20,567 ) $ 62,449 $ (20,567 ) $ 62,449 |
Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) | Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and six months ended June 30, 2019 and 2018 consist of the following: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (13,901 ) Interest expense $ (9,095 ) Interest expense Available for sale-debt securities $ — Investment gain/loss — Investment gain/loss Tax expense (benefit) 3,393 1,318 Net of tax $ (10,508 ) $ (7,777 ) Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (26,941 ) Interest expense $ (13,672 ) Interest expense Available for sale-debt securities $ — Investment gain/loss $ — Investment gain/loss Tax expense (benefit) $ 6,537 $ 1,925 Net of tax $ (20,404 ) $ (11,747 ) |
Investment Losses, Net (Tables)
Investment Losses, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Gains (Losses), Net | Investment gains (losses), net was comprised of the following for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Gain (loss) on sale of loans and leases $ — $ (2,096 ) $ — $ (18,792 ) Lower of cost or market adjustments (84,021 ) (79,215 ) (151,712 ) (149,714 ) Other gains, (losses and impairments), net (766 ) (1,323 ) (172 ) (648 ) $ (84,787 ) $ (82,634 ) $ (151,884 ) $ (169,154 ) |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Number of reportable segments | 1 |
SHUSA | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Ownership percentage held in the Company | 70.50% |
Public Shareholders | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Ownership percentage held in the Company | 29.50% |
Description of Business, Basi_5
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest on finance receivable and loans | $ 1,261,098 | $ 1,211,006 | $ 2,514,678 | $ 2,379,546 | ||
Provision for credit losses | 430,676 | 406,544 | 981,555 | 916,885 | ||
Income (loss) before income taxes | 480,031 | 449,146 | 817,298 | 751,813 | ||
Income tax expense | 111,764 | 114,120 | 201,528 | 172,172 | ||
Net income | $ 368,267 | $ 247,503 | $ 335,026 | $ 244,615 | $ 615,770 | $ 579,640 |
Net income (loss) per common share (basic) (in usd per share) | $ 1.05 | $ 0.93 | $ 1.75 | $ 1.61 | ||
Net income (loss) per common share (diluted) (in usd per share) | $ 1.05 | $ 0.93 | $ 1.75 | $ 1.60 | ||
Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest on finance receivable and loans | $ 1,156,536 | $ 2,270,673 | ||||
Provision for credit losses | 352,575 | 811,570 | ||||
Income (loss) before income taxes | 448,645 | 748,255 | ||||
Income tax expense | 114,004 | 171,315 | ||||
Net income | $ 334,641 | $ 576,940 | ||||
Net income (loss) per common share (basic) (in usd per share) | $ 0.93 | $ 1.60 | ||||
Net income (loss) per common share (diluted) (in usd per share) | $ 0.92 | $ 1.59 | ||||
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest on finance receivable and loans | $ 54,470 | $ 108,873 | ||||
Provision for credit losses | 53,969 | 105,315 | ||||
Income (loss) before income taxes | 501 | 3,558 | ||||
Income tax expense | 116 | 857 | ||||
Net income | $ 385 | $ 2,700 | ||||
Net income (loss) per common share (basic) (in usd per share) | $ 0 | $ 0.01 | ||||
Net income (loss) per common share (diluted) (in usd per share) | $ 0.01 | $ 0.01 |
Description of Business, Basi_6
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Cash Flows Statement (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | $ 2,862,369 | $ 3,512,239 |
Net cash used in investing activities | $ (4,363,359) | (4,872,968) |
Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | 3,413,047 | |
Net cash used in investing activities | (4,773,776) | |
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | 99,192 | |
Net cash used in investing activities | $ (99,192) |
Description of Business, Basi_7
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Credit Loss Allowance and Credit Quality (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
TDR - Unpaid principal balance | $ 6,098,280 |
TDR - Impairment | $ 1,664,222 |
TDR allowance ratio (as a percent) | 27.30% |
Nonaccrual loans TDRs | $ 597,155 |
Principal, 30-59 days past due | 2,651,817 |
Delinquent principal over 59 days | 1,234,502 |
Total delinquent principal | 3,886,319 |
Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
TDR - Unpaid principal balance | 5,958,564 |
TDR - Impairment | $ 1,496,580 |
TDR allowance ratio (as a percent) | 25.10% |
Nonaccrual loans TDRs | $ 1,554,860 |
Principal, 30-59 days past due | 2,535,166 |
Delinquent principal over 59 days | 1,151,410 |
Total delinquent principal | 3,686,576 |
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
TDR - Unpaid principal balance | 139,716 |
TDR - Impairment | $ 167,642 |
TDR allowance ratio (as a percent) | 2.20% |
Nonaccrual loans TDRs | $ (957,705) |
Principal, 30-59 days past due | 116,651 |
Delinquent principal over 59 days | 83,092 |
Total delinquent principal | $ 199,743 |
Description of Business, Basi_8
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 63,235 | $ 0 |
Accounts payable and accrued expenses | (431,004) | $ (422,951) |
Lease liability | 85,939 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | 67,300 | |
Accounts payable and accrued expenses | 24,100 | |
Lease liability | $ 91,400 |
Finance Receivables - Held for
Finance Receivables - Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased receivables-Credit Impaired | $ 15,419 | $ 19,235 |
Finance lease receivables (Note 3) | 19,523 | 16,137 |
Finance receivables held for investment, net | 25,838,749 | 25,117,454 |
Recurring | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Retail installment contracts acquired individually | 8,832 | 13,509 |
Retail Installment Contracts Acquired Individually | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Retail installment contracts acquired individually | 25,790,932 | 25,065,511 |
Receivables from dealers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from dealers and personal loans | 12,875 | 14,557 |
Personal loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from dealers and personal loans | $ 0 | $ 2,014 |
Finance Receivables - Compositi
Finance Receivables - Composition of Held for Investment Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | $ 6,098,280 | ||
Retail Installment Contracts Acquired Individually | Non-TDR | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | $ 24,451,977 | $ 23,054,157 | |
Discount | (120,523) | (172,659) | |
Capitalized origination costs and fees | 81,581 | 77,398 | |
Net carrying balance | 22,451,142 | 21,139,536 | |
Retail Installment Contracts Acquired Individually | Non-TDR | Credit loss allowance - specific | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | 0 | 0 | |
Retail Installment Contracts Acquired Individually | Non-TDR | Credit loss allowance - collective | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | (1,961,893) | (1,819,360) | |
Retail Installment Contracts Acquired Individually | TDR | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | 4,519,334 | 5,378,603 | |
Discount | (26,736) | (40,333) | |
Capitalized origination costs and fees | 3,495 | 4,448 | |
Net carrying balance | 3,339,790 | 3,925,975 | |
Retail Installment Contracts Acquired Individually | TDR | Credit loss allowance - specific | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | (1,156,303) | (1,416,743) | |
Retail Installment Contracts Acquired Individually | TDR | Credit loss allowance - collective | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | 0 | 0 | |
Receivables from Dealers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | 13,010 | 14,710 | |
Discount | 0 | 0 | |
Capitalized origination costs and fees | 0 | 0 | |
Net carrying balance | 12,875 | 14,557 | |
Receivables from Dealers | Credit loss allowance - specific | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | 0 | 0 | |
Receivables from Dealers | Credit loss allowance - collective | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | (135) | (153) | |
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | 2,637 | ||
Discount | 0 | ||
Capitalized origination costs and fees | 138 | ||
Net carrying balance | $ 0 | 2,014 | |
Personal Loans | Credit loss allowance - specific | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | 0 | ||
Personal Loans | Credit loss allowance - collective | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit loss allowance | $ (761) |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule Of Financing Receivables [Line Items] | |||||
Purchases of portfolios of finance receivables held for investment | $ 75,330 | $ 116,458 | |||
Loans classified as non-performing, period for classification | 60 days | ||||
Texas | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 17.00% | 17.00% | |||
Florida | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 11.00% | 11.00% | |||
California | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 9.00% | 9.00% | |||
Georgia | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 6.00% | 6.00% | |||
Other States (less than 5%) | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 5.00% | 5.00% | |||
Virginia | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Percentage of remaining receivable from dealers held for investment | 70.00% | 70.00% | |||
New York | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Percentage of remaining receivable from dealers held for investment | 30.00% | 30.00% | |||
Retail Installment Contracts | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Loans classified as non-performing, period for classification | 60 days | ||||
Retail Installment Contracts | Unpaid Principal Balance | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivables recognized in period | $ 74,718 | $ 72,963 | $ 74,718 | 115,959 | |
Chrysler Capital Loans | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Purchases of portfolios of finance receivables held for investment | 5,895,651 | $ 4,689,784 | |||
Chrysler Capital Loans | Retail Installment Contracts | Automobile Loan | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivable, net | 8,581,222 | $ 8,581,222 | $ 8,977,284 | ||
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 54.00% | 49.00% | |||
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | Automobile Loan | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 33.00% | 36.00% | |||
Fleet Contracts | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivable, net | $ 604,157 | $ 604,157 | $ 537,922 |
Finance Receivables - Purchased
Finance Receivables - Purchased Receivables - Credit Impaired (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Outstanding balance | $ 25,637 | $ 30,631 |
Outstanding recorded investment, net of impairment | $ 15,533 | $ 19,390 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield on Purchased Receivables Portfolios Credit Impaired (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance — beginning of period | $ 17,892 | $ 18,446 | $ 18,145 | $ 19,464 |
Accretion of accretable yield | (940) | (2,245) | (2,353) | (5,085) |
Reclassifications from (to) nonaccretable difference | (3,194) | 2,167 | (2,034) | 3,989 |
Balance — end of period | $ 13,758 | $ 18,368 | $ 13,758 | $ 18,368 |
Finance Receivables - Schedule
Finance Receivables - Schedule of Carrying Values of Finance Receivables Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | $ 1,249,101 | $ 1,068,757 |
Retail installment contracts acquired individually | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | 293,372 | 0 |
Personal loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | $ 955,729 | $ 1,068,757 |
Finance Receivables - Schedul_2
Finance Receivables - Schedule of Sales of Retail Installment Contracts and Charged-off Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||||
Sales of retail installment contracts to affiliates | $ 0 | $ 1,156,060 | $ 0 | $ 2,631,313 |
Proceeds from sales of charged-off assets to third parties | $ 6,148 | $ 16,638 | $ 26,373 | $ 34,875 |
Leases (SC as Lessor) - Summary
Leases (SC as Lessor) - Summary of Leased Vehicles (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Leased vehicles | $ 20,190,000 | $ 18,737,338 |
Less: accumulated depreciation | (3,665,402) | (3,518,025) |
Depreciated net capitalized cost | 16,524,598 | 15,219,313 |
Manufacturer subvention payments, net of accretion | (1,292,015) | (1,307,424) |
Origination fees and other costs | 80,786 | 66,966 |
Net book value | $ 15,313,369 | $ 13,978,855 |
Leases (SC as Lessor) - Future
Leases (SC as Lessor) - Future Minimum Rental Payments Due to Lessor under Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,354,257 |
2020 | 2,219,761 |
2021 | 1,170,434 |
2022 | 197,514 |
2023 | 9,722 |
Thereafter | 0 |
Total | $ 4,951,688 |
Leases (SC as Lessor) - Summa_2
Leases (SC as Lessor) - Summary of Finance Lease Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Gross investment in finance leases | $ 28,783 | $ 23,809 |
Origination fees and other | 188 | 152 |
Less: unearned income | (5,520) | (4,465) |
Net investment in finance leases before allowance | 23,451 | 19,496 |
Less: allowance for lease losses | (3,928) | (3,359) |
Net investment in finance leases | $ 19,523 | $ 16,137 |
Leases (SC as Lessor) - Futur_2
Leases (SC as Lessor) - Future Minimum Rental Receivable under Finance Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 4,163 |
2020 | 8,244 |
2021 | 7,187 |
2022 | 5,382 |
2023 | 3,166 |
Thereafter | 641 |
Total | $ 28,783 |
Credit Loss Allowance and Cre_3
Credit Loss Allowance and Credit Quality - Activity in Loan Loss Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retail Installment Contracts Acquired Individually | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Write-down of loans for which a bankruptcy notice was received | $ 7,000 | $ 7,000 | $ (12,000) | $ (14,000) |
Retail Installment Contracts Acquired Individually | Non-TDR | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 1,891,351 | 1,597,057 | 1,819,360 | 1,540,315 |
Provision for credit losses | 365,604 | 263,648 | 812,092 | 550,099 |
Charge-offs | (795,901) | (605,658) | (1,723,358) | (1,260,827) |
Recoveries | 517,626 | 396,667 | 1,070,586 | 822,127 |
Transfers to held-for-sale | (16,787) | 0 | (16,787) | 0 |
Balance — end of period | 1,961,893 | 1,651,714 | 1,961,893 | 1,651,714 |
Retail Installment Contracts Acquired Individually | TDR | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 1,280,649 | 1,716,132 | 1,416,743 | 1,804,132 |
Provision for credit losses | 63,414 | 144,750 | 168,027 | 368,324 |
Charge-offs | (369,523) | (412,710) | (836,160) | (960,053) |
Recoveries | 185,371 | 216,050 | 411,301 | 451,819 |
Transfers to held-for-sale | (3,608) | 0 | (3,608) | 0 |
Balance — end of period | 1,156,303 | 1,664,222 | 1,156,303 | 1,664,222 |
Receivables from Dealers | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 137 | 161 | 153 | 164 |
Provision for credit losses | (2) | (3) | (18) | (6) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Transfers to held-for-sale | 0 | 0 | 0 | 0 |
Balance — end of period | 135 | 158 | 135 | 158 |
Personal Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 605 | 1,714 | 761 | 2,565 |
Provision for credit losses | 1,070 | (83) | 1,153 | (185) |
Charge-offs | (1,761) | (695) | (2,107) | (1,763) |
Recoveries | 86 | 180 | 193 | 499 |
Transfers to held-for-sale | 0 | 0 | 0 | 0 |
Balance — end of period | 0 | 1,116 | 0 | 1,116 |
Finance Leases Portfolio Segment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 3,508 | 5,757 | 3,359 | 5,642 |
Provision for credit losses | 595 | (1,769) | 916 | (1,348) |
Charge-offs | (1,130) | (1,760) | (1,789) | (3,141) |
Recoveries | 955 | 1,354 | 1,442 | 2,429 |
Balance — end of period | $ 3,928 | $ 3,582 | $ 3,928 | $ 3,582 |
Credit Loss Allowance and Cre_4
Credit Loss Allowance and Credit Quality - Delinquencies, Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 60 days | |
Loan origination, required minimum payment, percentage of scheduled payment | 90.00% | |
Total delinquent principal | $ 4,094,614,000 | $ 4,835,570,000 |
Receivables from dealers | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 90 days | |
Total delinquent principal | $ 0 | 0 |
Personal loans | Consumer Portfolio Segment | Unfunded Loan Commitment | Unpaid Principal Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, recorded investment, 90 days past due and still accruing | 118,225,000 | 129,227,000 |
Retail installment contracts held for sale | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | $ 10,779,000 | $ 0 |
Credit Loss Allowance and Cre_5
Credit Loss Allowance and Credit Quality - Summary of Delinquencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | |
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | $ 4,835,570 | $ 4,094,614 |
Loans Acquired Individually | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | 4,831,112 | 4,090,949 |
Purchased Receivables Portfolios | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | $ 4,458 | 3,665 |
Retail Installment Contracts | ||
Financing Receivable, Past Due [Line Items] | ||
Period for interest accrual | 60 days | |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | $ 3,121,795 | 2,726,187 |
30-59 days past due | Loans Acquired Individually | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | 3,118,869 | 2,723,639 |
30-59 days past due | Purchased Receivables Portfolios | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | 2,926 | 2,548 |
Over 59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | 1,713,775 | 1,368,427 |
Over 59 days | Loans Acquired Individually | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | 1,712,243 | 1,367,310 |
Over 59 days | Purchased Receivables Portfolios | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent principal | $ 1,532 | $ 1,117 |
Credit Loss Allowance and Cre_6
Credit Loss Allowance and Credit Quality - Retail Installment Contracts Held for Investment on Nonaccrual Status (Details) - Retail Installment Contracts Acquired Individually, Held for Investment - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonaccrual principal | $ 1,411,114 | $ 1,568,139 |
Percent | 4.90% | 5.50% |
Non-TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonaccrual principal | $ 864,619 | $ 834,921 |
Percent | 3.00% | 2.90% |
TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonaccrual principal | $ 546,495 | $ 733,218 |
Percent | 1.90% | 2.60% |
Credit Loss Allowance and Cre_7
Credit Loss Allowance and Credit Quality - Credit Risk Profile (Details) - Retail Installment Contracts Held for Investment | Jun. 30, 2019 | Dec. 31, 2018 |
Commercial Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 2.10% | 1.90% |
Consumer Portfolio Segment | No-FICOs | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 10.90% | 11.00% |
Consumer Portfolio Segment | FICO Band Less Than 540 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 18.80% | 19.80% |
Consumer Portfolio Segment | FICO Band 540-599 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 33.20% | 32.90% |
Consumer Portfolio Segment | FICO Band 600-639 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 18.90% | 18.20% |
Consumer Portfolio Segment | FICO Band Greater Than 640 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 16.10% | 16.20% |
Credit Loss Allowance and Cre_8
Credit Loss Allowance and Credit Quality - Troubled Debt Restructurings, Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Retail Installment Contracts Acquired Individually | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs, deferral period (or more) | 90 days | |
Receivables From Dealers | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR principal | $ 0 | $ 0 |
Credit Loss Allowance and Cre_9
Credit Loss Allowance and Credit Quality - Summary of TDRs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Impairment | $ (1,664,222) | ||
Retail Installment Contracts | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Outstanding recorded investment | $ 4,492,654 | $ 5,365,477 | |
Impairment | (1,156,303) | (1,416,743) | |
Outstanding recorded investment, net of impairment | 3,336,351 | 3,948,734 | |
Retail Installment Contracts | Collateral Dependent | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Outstanding recorded investment | 94,200 | 90,100 | |
TDR write down | $ 39,000 | $ 36,400 |
Credit Loss Allowance and Cr_10
Credit Loss Allowance and Credit Quality - Delinquent TDRs (Details) - Retail Installment Contracts - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total delinquent TDR principal | $ 1,547,594 | $ 2,076,535 |
30-59 days past due | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Principal, 30-59 days past due | 991,730 | 1,265,946 |
Over 59 days | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Delinquent principal over 59 days | $ 555,864 | $ 810,589 |
Credit Loss Allowance and Cr_11
Credit Loss Allowance and Credit Quality - Average Recorded Investment and Income Recognized on TDR Loans (Details) - Retail Installment Contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Average outstanding recorded investment in TDRs | $ 4,745,931 | $ 6,118,495 | $ 4,970,364 | $ 6,248,219 |
Interest income recognized | $ 199,305 | $ 257,275 | $ 434,993 | $ 551,062 |
Credit Loss Allowance and Cr_12
Credit Loss Allowance and Credit Quality - Financial Effects of TDRs (Details) - Retail Installment Contracts $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Outstanding recorded investment before TDR | $ 295,540 | $ 723,925 | $ 627,549 | $ 1,308,373 |
Outstanding recorded investment after TDR | $ 296,257 | $ 725,438 | $ 628,887 | $ 1,308,102 |
Number of contracts | contract | 17,335 | 43,265 | 37,208 | 77,639 |
Credit Loss Allowance and Cr_13
Credit Loss Allowance and Credit Quality - Defaults in Loan Modifications Accounted for as TDRs (Details) - Retail Installment Contracts $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded investment in TDRs that subsequently defaulted | $ | $ 90,128 | $ 144,561 | $ 216,365 | $ 339,826 |
Number of contracts | contract | 5,335 | 8,707 | 12,907 | 20,247 |
Debt - Schedule of Credit Facil
Debt - Schedule of Credit Facilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Utilized Balance | $ 6,514,163,000 | $ 4,478,214,000 |
Total revolving credit facilities | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 10,514,163,000 | 7,978,214,000 |
Committed Amount | 17,975,695,000 | 17,348,945,000 |
Assets Pledged | 9,084,459,000 | 6,041,896,000 |
Restricted Cash Pledged | 4,620,000 | 5,810,000 |
Total facilities with third parties | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 6,514,163,000 | 4,478,214,000 |
Committed Amount | 10,475,695,000 | 10,348,945,000 |
Assets Pledged | 9,084,459,000 | 6,041,896,000 |
Restricted Cash Pledged | 4,620,000 | 5,810,000 |
Warehouse line, due June 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 186,983,000 | |
Committed Amount | $ 500,000,000 | |
Effective Rate | 4.04% | |
Assets Pledged | $ 267,358,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due March 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 1,061,345,000 | |
Committed Amount | $ 1,250,000,000 | |
Effective Rate | 3.66% | |
Assets Pledged | $ 1,552,733,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due August 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 2,966,543,000 | 2,154,243,000 |
Committed Amount | $ 4,400,000,000 | $ 4,400,000,000 |
Effective Rate | 3.73% | 3.79% |
Assets Pledged | $ 4,080,313,000 | $ 2,859,113,000 |
Restricted Cash Pledged | 3,849,000 | 4,831,000 |
Warehouse line, due October 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 881,577,000 | 242,377,000 |
Committed Amount | $ 2,050,000,000 | $ 2,050,000,000 |
Effective Rate | 4.38% | 5.94% |
Assets Pledged | $ 1,203,771,000 | $ 345,599,000 |
Restricted Cash Pledged | 46,000 | 120,000 |
Repurchase facility, due September 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 330,062,000 | |
Committed Amount | $ 330,062,000 | |
Effective Rate | 3.80% | |
Assets Pledged | $ 452,740,000 | |
Restricted Cash Pledged | 0 | |
Repurchase facility, due July 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 95,633,000 | |
Committed Amount | $ 95,633,000 | |
Effective Rate | 3.04% | |
Assets Pledged | $ 153,680,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due November 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 585,400,000 | 1,000,000,000 |
Committed Amount | $ 1,000,000,000 | $ 1,000,000,000 |
Effective Rate | 3.76% | 3.32% |
Assets Pledged | $ 922,796,000 | $ 1,430,524,000 |
Restricted Cash Pledged | 0 | 6,000 |
Warehouse line, due November 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 315,720,000 | 317,020,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 3.28% | 3.53% |
Assets Pledged | $ 349,564,000 | $ 359,214,000 |
Restricted Cash Pledged | 486,000 | 525,000 |
Warehouse line, due June 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 90,900,000 | |
Committed Amount | $ 350,000,000 | |
Effective Rate | 5.66% | |
Assets Pledged | $ 101,504,000 | |
Restricted Cash Pledged | 239,000 | |
Warehouse line, due August 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 53,584,000 | |
Committed Amount | $ 500,000,000 | |
Effective Rate | 8.34% | |
Assets Pledged | $ 78,790,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due Various | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 314,845,000 | |
Committed Amount | $ 1,250,000,000 | |
Effective Rate | 4.83% | |
Assets Pledged | $ 458,390,000 | |
Restricted Cash Pledged | 0 | |
Repurchase facility, due April 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 167,118,000 | |
Committed Amount | $ 167,118,000 | |
Effective Rate | 3.84% | |
Assets Pledged | $ 235,540,000 | |
Restricted Cash Pledged | 0 | |
Repurchase facility, due March 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 131,827,000 | |
Committed Amount | $ 131,827,000 | |
Effective Rate | 3.54% | |
Assets Pledged | $ 166,308,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due October 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 97,200,000 | |
Committed Amount | $ 350,000,000 | |
Effective Rate | 4.35% | |
Assets Pledged | $ 108,418,000 | |
Restricted Cash Pledged | 328,000 | |
Total facilities with Santander and related subsidiaries | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 4,000,000,000 | 3,500,000,000 |
Committed Amount | 7,500,000,000 | 7,000,000,000 |
Assets Pledged | 0 | 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 3.70% | 3.70% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 3.95% | 3.95% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 5.25% | 5.25% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 5.00% | 5.00% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due March 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 300,000,000 | |
Committed Amount | $ 300,000,000 | |
Effective Rate | 3.95% | |
Promissory Note, due October 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | $ 400,000,000 | 400,000,000 |
Committed Amount | $ 400,000,000 | $ 400,000,000 |
Effective Rate | 3.10% | 3.10% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due May 2020 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 500,000,000 | 500,000,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 3.49% | 3.49% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 650,000,000 | 650,000,000 |
Committed Amount | $ 650,000,000 | $ 650,000,000 |
Effective Rate | 4.20% | 4.20% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Fair value hedge adjustment | 2,800,000 | 3,200,000 |
Promissory Note, due June 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 500,000,000 | |
Committed Amount | $ 500,000,000 | |
Effective Rate | 5.82% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
Promissory Note, due August 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 650,000,000 | 650,000,000 |
Committed Amount | $ 650,000,000 | $ 650,000,000 |
Effective Rate | 3.44% | 3.38% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Line of credit, due July 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 0 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 4.27% | 4.34% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Line of credit, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 3,000,000,000 | |
Effective Rate | 5.60% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 0 | |
Line of credit, due March 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 3,000,000,000 | |
Effective Rate | 4.97% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
Promissory Note, due March 2019 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 300,000,000 | |
Committed Amount | $ 300,000,000 | |
Effective Rate | 4.09% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 0 |
Debt - Facilities with Santande
Debt - Facilities with Santander and Related Subsidiaries (Details) - Facilities with Santander and related subsidiaries - USD ($) | Jul. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Committed amount | $ 7,500,000,000 | $ 7,000,000,000 | |
Revolving credit facilities | |||
Line of Credit Facility [Line Items] | |||
Committed amount | 3,500,000,000 | ||
Unsecured debt | |||
Line of Credit Facility [Line Items] | |||
Committed amount | $ 4,000,000,000 | ||
Unsecured debt | Promissory Note due July 2024 | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Committed amount | $ 500,000,000 |
Debt - Summary of Secured Struc
Debt - Summary of Secured Structured Financings (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Balance | $ 26,248,528 | $ 26,901,530 |
Secured Structured Financings | ||
Debt Instrument [Line Items] | ||
Balance | 26,248,528 | 26,901,530 |
Initial Note Amounts Issued | 55,738,064 | 52,686,320 |
Collateral | 35,501,312 | 35,296,170 |
Restricted Cash | 1,693,160 | 1,576,915 |
Secured Structured Financings | Public securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 19,094,246 | 19,225,179 |
Initial Note Amounts Issued | 44,331,242 | 41,380,952 |
Collateral | 24,972,094 | 24,912,904 |
Restricted Cash | $ 1,673,929 | 1,541,714 |
Secured Structured Financings | 2014 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 246,989 | |
Initial Note Amounts Issued | 2,291,020 | |
Collateral | 334,888 | |
Restricted Cash | $ 65,028 | |
Secured Structured Financings | 2014 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.16% | 1.16% |
Secured Structured Financings | 2014 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.27% | 1.27% |
Secured Structured Financings | 2015 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,179,917 | $ 1,651,411 |
Initial Note Amounts Issued | 9,054,732 | 9,054,732 |
Collateral | 1,416,611 | 1,979,942 |
Restricted Cash | $ 277,660 | $ 288,654 |
Secured Structured Financings | 2015 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.33% | 1.33% |
Secured Structured Financings | 2015 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.29% | 2.29% |
Secured Structured Financings | 2016 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,627,222 | $ 2,233,720 |
Initial Note Amounts Issued | 7,462,790 | 7,462,790 |
Collateral | 2,145,078 | 2,876,141 |
Restricted Cash | $ 265,020 | $ 285,300 |
Secured Structured Financings | 2016 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.63% | 1.63% |
Secured Structured Financings | 2016 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.80% | 2.80% |
Secured Structured Financings | 2017 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 3,210,416 | $ 4,385,029 |
Initial Note Amounts Issued | 9,296,570 | 9,296,570 |
Collateral | 4,648,860 | 6,090,150 |
Restricted Cash | $ 333,728 | $ 352,833 |
Secured Structured Financings | 2017 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.35% | 1.35% |
Secured Structured Financings | 2017 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.52% | 2.52% |
Secured Structured Financings | 2018 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 7,211,450 | $ 10,708,030 |
Initial Note Amounts Issued | 12,039,840 | 13,275,840 |
Collateral | 9,521,053 | 13,631,783 |
Restricted Cash | $ 527,200 | $ 549,899 |
Secured Structured Financings | 2018 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.41% | 2.41% |
Secured Structured Financings | 2018 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.42% | 3.53% |
Secured Structured Financings | 2019 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 5,865,241 | |
Initial Note Amounts Issued | 6,477,310 | |
Collateral | 7,240,492 | |
Restricted Cash | $ 270,321 | |
Secured Structured Financings | 2019 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.56% | |
Secured Structured Financings | 2019 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.34% | |
Secured Structured Financings | Privately issued amortizing notes | ||
Debt Instrument [Line Items] | ||
Balance | $ 7,154,282 | $ 7,676,351 |
Initial Note Amounts Issued | 11,406,822 | 11,305,368 |
Collateral | 10,529,218 | 10,383,266 |
Restricted Cash | 19,231 | 35,201 |
Secured Structured Financings | 2013 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 1,307,640 | 1,507,241 |
Initial Note Amounts Issued | 2,044,054 | 2,044,054 |
Collateral | 2,091,902 | 2,896,344 |
Restricted Cash | $ 1,230 | $ 3,021 |
Secured Structured Financings | 2013 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.28% | 1.28% |
Secured Structured Financings | 2013 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.38% | 1.38% |
Secured Structured Financings | 2015 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 113,289 | $ 1,043,723 |
Initial Note Amounts Issued | 1,000,000 | 1,811,312 |
Collateral | 206,326 | 350,212 |
Restricted Cash | $ 1,473 | $ 2,215 |
Secured Structured Financings | 2015 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.88% | 0.88% |
Secured Structured Financings | 2015 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.05% | 2.80% |
Secured Structured Financings | 2016 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 70,786 | $ 454,280 |
Initial Note Amounts Issued | 1,200,000 | 2,550,000 |
Collateral | 177,175 | 901,641 |
Restricted Cash | $ 265 | $ 1,661 |
Secured Structured Financings | 2016 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.93% | 1.93% |
Secured Structured Financings | 2016 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.35% | 2.86% |
Secured Structured Financings | 2017 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 241,350 | $ 689,152 |
Initial Note Amounts Issued | 1,600,000 | 1,600,000 |
Collateral | 605,018 | 1,037,263 |
Restricted Cash | $ 2,315 | $ 5,716 |
Secured Structured Financings | 2017 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.85% | 1.85% |
Secured Structured Financings | 2017 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.44% | 2.44% |
Secured Structured Financings | 2018 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 4,439,453 | $ 3,981,955 |
Initial Note Amounts Issued | 4,536,002 | 3,300,002 |
Collateral | 6,188,294 | 5,197,806 |
Restricted Cash | $ 11,877 | $ 22,588 |
Secured Structured Financings | 2018 Private issuance | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.42% | 2.42% |
Secured Structured Financings | 2018 Private issuance | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.53% | 3.17% |
Secured Structured Financings | 2019 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 981,764 | |
Initial Note Amounts Issued | $ 1,026,766 | |
Initial Weighted Average Interest Rate | 3.34% | |
Collateral | $ 1,260,503 | |
Restricted Cash | $ 2,071 |
Debt - Secured Structured Finan
Debt - Secured Structured Financings, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||||
Private issuance notes secured with vehicle lease | $ 8,292,230 | $ 8,292,230 | $ 7,847,071 | ||
Amortized debt issuance costs | 9,309 | $ 8,580 | 17,770 | $ 16,500 | |
Interest expense on secured structured financing | $ 222,935 | $ 172,916 | $ 454,226 | $ 323,591 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | $ 28,343,622,000 | $ 28,343,622,000 | $ 27,193,924,000 | ||
Assets securitized | 4,913,261,000 | $ 6,511,953,000 | 9,841,723,000 | $ 13,752,897,000 | |
VIE, Not Primary Beneficiary | |||||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | 3,145,282,000 | 3,145,282,000 | $ 4,072,843,000 | ||
Assets securitized | 0 | 1,156,060,000 | 0 | 2,631,313,000 | |
Maximum exposure to loss, involvement with the VIE | 0 | 0 | |||
Affiliates | Santander | |||||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Sale of receivables securitized | $ 0 | $ 1,156,060,000 | 0 | 2,631,313,000 | |
Loss on retail installment contracts | $ 3,177,000 | $ 20,080,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Cash Flows Received from Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Assets securitized | $ 4,913,261 | $ 6,511,953 | $ 9,841,723 | $ 13,752,897 |
Net proceeds from new securitizations | 3,794,437 | 4,581,874 | 7,757,055 | 8,058,196 |
Net proceeds from retained bonds | 99,999 | 382,022 | 117,305 | 593,632 |
Cash received for servicing fees | 289,634 | 213,900 | 497,959 | 429,690 |
Net distributions from Trusts | 1,078,665 | 780,834 | 1,671,434 | 1,325,986 |
Total cash received from Trusts | 5,262,735 | 5,958,630 | 10,043,753 | 10,407,504 |
VIE, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Assets securitized | 0 | 1,156,060 | 0 | 2,631,313 |
Net proceeds from new securitizations | 0 | 1,160,119 | 0 | 2,634,939 |
Cash received for servicing fees | 9,357 | 12,616 | 19,608 | 20,694 |
Total cash received from Trusts | $ 9,357 | $ 1,172,735 | $ 19,608 | $ 2,655,633 |
Variable Interest Entities - Of
Variable Interest Entities - Off-balance Sheet Variable Interest Entities Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total serviced | $ 28,343,622 | $ 27,193,924 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 3,145,282 | 4,072,843 |
VIE, Not Primary Beneficiary | Chrysler Capital securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 369,113 | 611,050 |
VIE, Not Primary Beneficiary | Third parties | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 369,113 | 611,050 |
VIE, Not Primary Beneficiary | Santander | ||
Variable Interest Entity [Line Items] | ||
Total serviced | $ 2,776,169 | $ 3,461,793 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated unrealized gains to be reclassified from AOCI to interest expense in next 12 months | $ 3,119 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Underlying Notional Amounts and Aggregate Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Asset | $ 103,457 | $ 183,897 |
Liability | (141,448) | (137,985) |
Interest rate swaps | Not Designated As Hedges | ||
Derivative [Line Items] | ||
Notional | 2,110,000 | 2,270,200 |
Fair Value | (9,179) | 9,423 |
Asset | 2,992 | 11,553 |
Liability | (12,171) | (2,130) |
Interest rate swaps | Cash Flow Hedging | Designated as Hedges | ||
Derivative [Line Items] | ||
Notional | 4,150,000 | 3,933,500 |
Fair Value | (28,812) | 36,489 |
Asset | 12,225 | 43,967 |
Liability | (41,037) | (7,478) |
Interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 9,203,381 | 7,741,765 |
Fair Value | 88,240 | 128,377 |
Asset | 88,240 | 128,377 |
Liability | 0 | 0 |
Options for interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 9,203,381 | 7,741,765 |
Fair Value | (88,240) | (128,377) |
Asset | 0 | 0 |
Liability | $ (88,240) | $ (128,377) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | $ 103,457 | $ 183,897 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (55,034) | (96,759) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 48,423 | 87,138 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivative assets | 103,457 | 183,897 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivative assets | 48,423 | 87,138 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total financial assets | 103,457 | 183,897 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total financial assets | (55,034) | (96,759) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total financial assets | 48,423 | 87,138 |
Offsetting of Financial Liabilities | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 141,448 | 137,985 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (141,448) | (137,985) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 0 | 0 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivative liabilities | 141,448 | 137,985 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivative liabilities | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total financial liabilities | 141,448 | 137,985 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged, Total financial liabilities | (141,448) | (137,985) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total financial liabilities | 0 | 0 |
Third Party | ||
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivative assets | 88,152 | 183,897 |
Interest rate swaps | Third Party | ||
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 15,217 | 55,520 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (3,836) | (23,929) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 11,381 | 31,591 |
Offsetting of Financial Liabilities | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 53,208 | 9,608 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (53,208) | (9,608) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 0 | 0 |
Interest rate caps | ||
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivative assets | 88,240 | 128,377 |
Offsetting of Financial Liabilities | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivative liabilities | 0 | 0 |
Interest rate caps | Third Party | ||
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 72,935 | 128,377 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (46,807) | (72,830) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 26,128 | 55,547 |
Offsetting of Financial Liabilities | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 72,935 | 128,377 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (72,935) | (128,377) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 0 | $ 0 |
Interest rate caps | Santander and Affiliates | ||
Offsetting of Financial Assets | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 15,305 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (4,391) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 10,914 | |
Offsetting of Financial Liabilities | ||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 15,305 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (15,305) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Designated as Hedges | Interest Rate Swaps | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) | (31,014) | 8,412 | (45,807) | 34,841 |
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income to Interest Expense | 13,901 | 9,095 | 26,941 | 13,672 |
Not Designated As Hedges | Interest Expense | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ 8,446 | $ (22) | $ 13,847 | $ (9,739) |
Other Assets - Summary (Details
Other Assets - Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | May 31, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Assets, Leases And Investments [Abstract] | |||||
Vehicles | $ 331,251 | $ 331,251 | $ 342,097 | ||
Manufacturer subvention payments receivable | 126,185 | 126,185 | 106,313 | ||
Upfront fee | 113,827 | 113,827 | 65,000 | ||
Derivative - collateral | 173,226 | 173,226 | 150,783 | ||
Operating leases (Right-of-use-assets) | 63,235 | 63,235 | 0 | ||
Available-for-sale debt securities | 94,643 | 94,643 | 0 | ||
Prepaids | 40,076 | 40,076 | 29,080 | ||
Accounts receivable | 33,111 | 33,111 | 28,511 | ||
Other | 26,040 | 26,040 | 57,666 | ||
Other assets | 1,089,746 | 1,089,746 | 963,347 | ||
Upfront fee | 60,000 | $ 150,000 | 60,000 | $ 0 | |
Finance and other interest income amortization period | 10 years | ||||
Derivative [Line Items] | |||||
Derivative assets at fair value | 103,457 | 103,457 | 183,897 | ||
Third Party | |||||
Derivative [Line Items] | |||||
Derivative assets at fair value | $ 88,152 | $ 88,152 | $ 183,897 |
Other Assets - Operating Leases
Other Assets - Operating Leases, Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Lease expense | $ 3,448 | $ 2,531 | $ 6,914 | $ 5,090 |
Operating cash flows from operating leases | $ 8,406 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease renewal term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease renewal term | 15 years | 15 years |
Other Assets - Supplemental Inf
Other Assets - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets, Leases And Investments [Abstract] | ||
Operating leases-right of use assets | $ 63,235 | $ 0 |
Other liabilities | $ 85,939 | |
Weighted average lease term | 6 years 6 months | |
Weighted average discount rate | 3.40% |
Other Assets - Maturity of Oper
Other Assets - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Other Assets, Leases And Investments [Abstract] | |
2019 | $ 8,382 |
2020 | 16,716 |
2021 | 13,201 |
2022 | 12,555 |
2023 | 12,678 |
Thereafter | 32,391 |
Total | 95,923 |
Less: Interest | (9,984) |
Other liabilities | $ 85,939 |
Other Assets - Amortized Cost,
Other Assets - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of AFS Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets, Leases And Investments [Abstract] | ||
Amortized cost (before unrealized gains / losses) | $ 93,321 | |
Gross Unrealized gain | 1,322 | |
Gross Unrealized loss | 0 | |
Fair value | $ 94,643 | $ 0 |
Other Assets - Contractual Matu
Other Assets - Contractual Maturities of AFS Debt Securities (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Amortized cost | |
Due within one year | $ 2,931,000 |
Due after one year but within 5 years | 90,390,000 |
Total | 93,321,000 |
Fair value | |
Due within one year | 2,997,000 |
Due after one year but within 5 years | 91,646,000 |
Total | 94,643,000 |
Other-than-temporary Impairment | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense | $ 111,764,000 | $ 114,120,000 | $ 201,528,000 | $ 172,172,000 | |
Effective tax rate | 23.30% | 25.40% | 24.70% | 22.90% | |
Related party taxes receivable | $ 4,581,000 | $ 4,581,000 | $ 734,000 | ||
Earnings that are considered indefinitely reinvested | 0 | 0 | 0 | ||
Tax Sharing Agreement | |||||
Operating Loss Carryforwards [Line Items] | |||||
Related party taxes receivable | $ 4,581,000 | $ 4,581,000 | $ 734,000 |
Commitments and Contingencies -
Commitments and Contingencies - Liabilities for Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consumer arrangements | ||
Loss Contingencies [Line Items] | ||
Contingencies | $ 596 | $ 2,138 |
Legal and regulatory proceedings | ||
Loss Contingencies [Line Items] | ||
Contingencies | 100,000 | 97,700 |
Revenue-sharing and gain/(loss), net-sharing payments | Chrysler | ||
Loss Contingencies [Line Items] | ||
Commitments | 19,893 | 7,001 |
Servicer performance fee | Bank of America | ||
Loss Contingencies [Line Items] | ||
Commitments | 5,249 | 6,353 |
Loss-sharing payments | CBP | ||
Loss Contingencies [Line Items] | ||
Commitments | $ 2,498 | $ 3,708 |
Commitments and Contingencies_2
Commitments and Contingencies - Chrysler Agreement (Details) - Chrysler - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Funding available for FCA retail financing | $ 4,500,000 | |
Minimum | ||
Other Commitments [Line Items] | ||
Funding available for dealer inventory financing | 5,000,000 | |
Revenue-sharing and gain/(loss), net-sharing payments | ||
Other Commitments [Line Items] | ||
Amount accrued for the payments | $ 19,893 | $ 7,001 |
Commitments and Contingencies_3
Commitments and Contingencies - Agreement with Bank of America (Details) - Bank of America - USD ($) $ in Thousands | Jan. 31, 2017 | Jun. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | |||
Commitment to sell loans | $ 300,000 | ||
Servicer performance payments due, period | 6 years | ||
Servicer performance fee | |||
Other Commitments [Line Items] | |||
Commitments | $ 5,249 | $ 6,353 |
Commitments and Contingencies_4
Commitments and Contingencies - Agreement with CBP (Details) - CBP - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | ||
Loans servicing, loss-sharing payment percentage | 0.50% | |
Loss-sharing payments | ||
Other Commitments [Line Items] | ||
Commitments | $ 2,498 | $ 3,708 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consumer arrangements | ||
Other Commitments [Line Items] | ||
Accrual for miscellaneous contingencies | $ 596 | $ 2,138 |
Commitments and Contingencies_6
Commitments and Contingencies - Legal and Regulatory Proceedings (Details) $ in Thousands | 1 Months Ended | ||||
Jan. 31, 2018claim | Feb. 28, 2015USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | |
Parmelee Lawsuit | |||||
Loss Contingencies [Line Items] | |||||
Maximum possible loss | $ 9,500 | ||||
Number of claims dismissed | claim | 2 | ||||
Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
SCRA compliance monitoring period | 5 years | ||||
Aggregate Legal and Regulatory Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Contingencies | $ 100,000 | $ 97,700 | |||
Maximum possible loss | $ 57,000 | ||||
Civil Fine | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | $ 55 | ||||
Civil Fine to Affected Service Members | Violation of SCRA | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | 9,360 | ||||
Lost Equity for Each Repossession by SCUSA | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | 10 | ||||
SCUSA Sought to Collect Repossession-related Fees | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | $ 5 |
Commitments and Contingencies_7
Commitments and Contingencies - Agreements (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2015 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2017 | |
Other Commitments [Line Items] | |||||
Purchase obligation | $ 16,329,000 | $ 15,356,000 | |||
Purchase commitment, repurchase rate (up to) | 9.99% | ||||
Retainer rate (up to) upon exercise of repurchase right | 20.00% | ||||
Repurchase requests outstanding | 0 | ||||
Commitment to sell charged off loan receivables in bankruptcy sale | $ 350,000 | ||||
Sales subject to market price check | $ 275,000 | ||||
Remaining aggregate commitment to sell charged off loan receivables | 46,083,000 | 63,975,000 | |||
Bluestem | Purchase New Advances on Personal Revolving Finance Receivable | |||||
Other Commitments [Line Items] | |||||
Commitments | 3,000,000,000 | 3,100,000,000 | $ 3,900,000,000 | ||
Purchases of receivables | 600,000,000 | $ 1,200,000,000 | |||
Bluestem | Purchase of Receivables Related to New Opened Customer Accounts | |||||
Other Commitments [Line Items] | |||||
Purchases of receivables | $ 75,486,000 |
Related-Party Transactions - In
Related-Party Transactions - Interest Expense and Accrued Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Santander | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | $ 0 | $ 5,741 | $ 0 | $ 10,108 | |
SHUSA | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | 45,996 | $ 36,561 | 90,877 | $ 72,407 | |
Accrued interest for affiliate lines/letters of credit | $ 20,533 | $ 20,533 | $ 19,928 |
Related-Party Transactions - Cr
Related-Party Transactions - Credit Facilities (Details) - Santander - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2015 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||||
Guarantee fee, basis spread (as a percent) | 0.125% | |||||
Guarantee fee expense | $ 154 | $ 1,569 | $ 384 | $ 3,617 | ||
Guarantee fee payable | $ 1,101 | $ 1,101 | $ 1,922 |
Related-Party Transactions - De
Related-Party Transactions - Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Collateral overage on derivative liabilities | $ 55,034,000 | $ 55,034,000 | $ 96,759,000 | ||
Santander and Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Outstanding notional amount | 979,270,000 | 979,270,000 | 0 | ||
Collateral overage on derivative liabilities | 3,525,000 | 3,525,000 | $ 0 | ||
Interest and mark-to-market adjustments | $ 241,000 | $ 231,000 | $ 479,000 | $ 460,000 |
Related-Party Transactions - Re
Related-Party Transactions - Retail Installment Contracts and RV Marine (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 25,002 | $ 27,538 | $ 48,808 | $ 53,720 |
SBNA | Serviced Auto Loan and Retail Installment | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 370 | $ 756 | $ 777 | $ 1,795 |
Related-Party Transactions - _2
Related-Party Transactions - Information on Serviced Auto Loan and Retail Installment Contract Portfolio (Details) - SBNA - Serviced Auto Loan and Retail Installment - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 327,902 | $ 383,246 |
Cash collections due to owner | 28,118 | 14,920 |
Servicing fees receivable | $ 187 | $ 601 |
Related-Party Transactions - _3
Related-Party Transactions - Dealer Lending (Details) - SBNA - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Referral fee | $ 9,000,000 | ||||
Referral fee, amortization period | 10 years | ||||
Unamortized fee balance | $ 3,600,000 | $ 3,600,000 | $ 4,050,000 | ||
Income related to referral fee | 450,000 | $ 225,000 | 0 | $ 225,000 | |
Dealer Loan Portfolio | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 0 | 0 | 0 | ||
Loan Origination on Sales of Floorplan Inventory | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 5,526,000 | $ 5,526,000 | $ 5,908,000 |
Related-Party Transactions - _4
Related-Party Transactions - Information on Transactions with SBNA (Details) - SBNA - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Servicing fees payable | $ 16 | $ 16 | $ 19 | ||
Origination and Renewal Fees | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 1,704 | $ 1,232 | 2,927 | $ 2,072 | |
Due from related parties | 635 | 635 | $ 385 | ||
Servicing Fees Expenses | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 19 | $ 20 | $ 32 | $ 39 |
Related-Party Transactions - Or
Related-Party Transactions - Origination Support Services (Details) - Affiliates - SBNA - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Purchase of Retail Installment Contracts | ||||
Related Party Transaction [Line Items] | ||||
Additions to servicing asset | $ 1,900,000 | $ 29,000 | $ 2,950,000 | $ 53,000 |
Referral and Servicing Fee | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 16,388 | 216 | 25,825 | 388 |
Due from related parties | $ 4,298 | $ 46 | $ 4,298 | $ 46 |
Related-Party Transactions - Se
Related-Party Transactions - Securitizations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Santander | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 2,402 | $ 2,402 | $ 2,983 | ||
Due to related parties | 16,131 | 16,131 | $ 15,968 | ||
Affiliates | SIS | Fees Paid for Co-Management of Certain Securitizations | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 151 | $ 148 | $ 965 | $ 858 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Information on SPAIN Securitization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 14,275 | $ 11,375 | $ 27,270 | $ 21,447 |
Santander | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | 7,711 | 8,622 | 16,142 | 15,822 |
Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) | $ 0 | $ 3,177 | $ 0 | $ 20,080 |
Related-Party Transactions - CE
Related-Party Transactions - CEO and Other Employee Compensation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
SHUSA | Administrative Services | Affiliates | |
Related Party Transaction [Line Items] | |
Due to related parties | $ 4,448 |
Due from related parties | 1,133 |
Chairman and CEO | |
Related Party Transaction [Line Items] | |
Compensation expense paid | $ 2,051 |
Related-Party Transactions - _5
Related-Party Transactions - Other Related Party Transactions (Details) ft² in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Restricted cash and cash equivalents | $ 2,272,621,000 | $ 2,125,410,000 | $ 2,272,621,000 | $ 2,125,410,000 | $ 2,102,048,000 |
Deposit and checking accounts balance | 42,889,000 | 42,889,000 | 101,334,000 | ||
Affiliates | SBNA | |||||
Related Party Transaction [Line Items] | |||||
Deposit and checking accounts balance | $ 36,550,000 | $ 36,550,000 | 92,774,000 | ||
Affiliates | SBNA | Sublease of Corporate Office Space | |||||
Related Party Transaction [Line Items] | |||||
Area of property (in square foot) | ft² | 13 | 13 | |||
Sublease revenue | $ 44,000 | 41,000 | $ 88,000 | 82,000 | |
Affiliates | SBNA | Fee for Payments Made at Retail Branch Locations | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 84,000 | 154,000 | 133,000 | 341,000 | |
Affiliates | Santander | Procurement Services | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 379,000 | 379,000 | 758,000 | 758,000 | |
Affiliates | Santander | Professional Services, Telecommunications, and Internal/External Application | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 34,000 | 0 | 229,000 | 0 | |
Affiliates | SHUSA | |||||
Related Party Transaction [Line Items] | |||||
Cyber liability insurance, coverage limit | 150,000,000 | ||||
Affiliates | SHUSA | Allocated Portion of Insurance Premiums and Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 108,000 | 93,000 | 216,000 | 185,000 | |
Affiliates | SHUSA | Various Other Insurance Products | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 194,000 | $ 163,000 | 388,000 | $ 325,000 | |
Subsidiaries | Banco Santander Puerto Rico | Demand Deposits | |||||
Related Party Transaction [Line Items] | |||||
Restricted cash and cash equivalents | $ 6,339,000 | $ 6,339,000 | $ 8,862,000 |
Computation of Basic and Dilu_3
Computation of Basic and Diluted Earnings per Common Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from computation of earnings per share (in shares) | 85,190 | 221,572 | 104,790 | 221,572 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Computation of Basic and Dilu_4
Computation of Basic and Diluted Earnings per Common Share - Summary of Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per common share | ||||||
Net of tax | $ 368,267 | $ 247,503 | $ 335,026 | $ 244,615 | $ 615,770 | $ 579,640 |
Weighted average number of common shares outstanding before restricted participating shares (in shares) | 351,106,000 | 361,268,000 | 351,310,000 | 360,987,000 | ||
Weighted average number of participating restricted common shares outstanding (in shares) | 0 | 0 | 0 | 0 | ||
Weighted average number of common shares outstanding (in shares) | 351,106,197 | 361,268,112 | 351,309,700 | 360,987,233 | ||
Earnings per common share (in usd per share) | $ 1.05 | $ 0.93 | $ 1.75 | $ 1.61 | ||
Earnings per common share - assuming dilution | ||||||
Net of tax | $ 368,267 | $ 247,503 | $ 335,026 | $ 244,615 | $ 615,770 | $ 579,640 |
Weighted average number of common shares outstanding (in shares) | 351,106,197 | 361,268,112 | 351,309,700 | 360,987,233 | ||
Effect of employee stock-based awards (in shares) | 450,000 | 790,000 | 516,000 | 842,000 | ||
Weighted average number of common shares outstanding - assuming dilution (in shares) | 351,556,349 | 362,057,614 | 351,825,554 | 361,829,283 | ||
Earnings per common share - assuming dilution (in usd per share) | $ 1.05 | $ 0.93 | $ 1.75 | $ 1.60 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Estimates, Methods and Assumptions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | $ 99,756 | $ 148,436 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash and cash equivalents | 2,272,621 | 2,102,048 |
Total | 2,372,377 | 2,250,484 |
Liabilities: | ||
Notes payable — credit facilities | 0 | 0 |
Notes payable — secured structured financings | 0 | 0 |
Notes payable — related party | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Notes payable — credit facilities | 0 | 0 |
Notes payable — secured structured financings | 19,182,978 | 17,924,867 |
Notes payable — related party | 0 | 0 |
Total | 19,182,978 | 17,924,867 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 26,536,662 | 26,037,559 |
Restricted cash and cash equivalents | 0 | 0 |
Total | 26,536,662 | 26,037,559 |
Liabilities: | ||
Notes payable — credit facilities | 6,514,163 | 4,478,214 |
Notes payable — secured structured financings | 7,316,175 | 9,070,045 |
Notes payable — related party | 4,047,246 | 3,438,543 |
Total | 17,877,584 | 16,986,802 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 99,756 | 148,436 |
Finance receivables held for investment, net | 25,645,374 | 24,914,833 |
Restricted cash and cash equivalents | 2,272,621 | 2,102,048 |
Total | 28,017,751 | 27,165,317 |
Liabilities: | ||
Notes payable — credit facilities | 6,514,163 | 4,478,214 |
Notes payable — secured structured financings | 26,248,528 | 26,901,530 |
Notes payable — related party | 4,002,814 | 3,503,293 |
Total | 36,765,505 | 34,883,037 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 99,756 | 148,436 |
Finance receivables held for investment, net | 26,536,662 | 26,037,559 |
Restricted cash and cash equivalents | 2,272,621 | 2,102,048 |
Total | 28,909,039 | 28,288,043 |
Liabilities: | ||
Notes payable — credit facilities | 6,514,163 | 4,478,214 |
Notes payable — secured structured financings | 26,499,153 | 26,994,912 |
Notes payable — related party | 4,047,246 | 3,438,543 |
Total | $ 37,060,562 | $ 34,911,669 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | $ 94,643 | $ 0 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 94,643 | |
Retail installment contracts acquired individually | 8,832 | 13,509 |
Recurring | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 72,935 | 128,377 |
Due from affiliates | 15,305 | |
Recurring | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 2,992 | 11,553 |
Other liabilities | 12,171 | 2,130 |
Recurring | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 12,225 | 43,967 |
Other liabilities | 41,037 | 7,478 |
Recurring | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 72,935 | 128,377 |
Due to affiliates | 15,305 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 0 | |
Retail installment contracts acquired individually | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Due from affiliates | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 0 | 0 |
Due to affiliates | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 94,643 | |
Retail installment contracts acquired individually | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 72,935 | 128,377 |
Due from affiliates | 15,305 | |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 2,992 | 11,553 |
Other liabilities | 12,171 | 2,130 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 12,225 | 43,967 |
Other liabilities | 41,037 | 7,478 |
Recurring | Significant Other Observable Inputs (Level 2) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 72,935 | 128,377 |
Due to affiliates | 15,305 | |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 0 | |
Retail installment contracts acquired individually | 13,509 | |
Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Due from affiliates | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 0 | $ 0 |
Due to affiliates | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Change in Level 3 Balances (Details) - Retail Installment Contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance — beginning of period | $ 11,195 | $ 18,850 | $ 13,509 | $ 22,124 |
Additions / issuances | 2,079 | 1,927 | 2,079 | 3,276 |
Net collection activities | (4,412) | (3,936) | (7,066) | (9,530) |
Gains recognized in earnings | (30) | 341 | 310 | 1,312 |
Balance — end of period | $ 8,832 | $ 17,182 | $ 8,832 | $ 17,182 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 2,372,377 | $ 2,250,484 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 26,536,662 | 26,037,559 |
Personal loans held for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 955,729 | 1,068,757 |
Nonrecurring | Vehicles | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 331,251 | 342,097 |
Lower of cost or fair value expense | 0 | 0 |
Nonrecurring | Vehicles | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Vehicles | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 331,251 | 342,097 |
Nonrecurring | Vehicles | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 1,068,757 | |
Lower of cost or fair value expense | 151,712 | 367,219 |
Nonrecurring | Personal loans held for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 955,729 | 1,068,757 |
Nonrecurring | Retail installment contracts held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 293,372 | 0 |
Lower of cost or fair value expense | 20,395 | 15,098 |
Nonrecurring | Retail installment contracts held for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Retail installment contracts held for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 293,372 | 0 |
Nonrecurring | Retail installment contracts held for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | |
Nonrecurring | Auto loans impaired due to bankruptcy | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 184,543 | 189,114 |
Lower of cost or fair value expense | 11,664 | 18,083 |
Nonrecurring | Auto loans impaired due to bankruptcy | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Auto loans impaired due to bankruptcy | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 184,543 | 189,114 |
Nonrecurring | Auto loans impaired due to bankruptcy | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Quantitative Information for Assets and Liabilities (Details) - Level 3 $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 26,536,662 | $ 26,037,559 |
Retail installment contracts held for investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 8,832 | $ 13,509 |
Retail installment contracts held for investment | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.08 | 0.08 |
Retail installment contracts held for investment | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.10 | 0.10 |
Retail installment contracts held for investment | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.15 | 0.15 |
Retail installment contracts held for investment | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.20 | 0.20 |
Retail installment contracts held for investment | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.06 | 0.06 |
Retail installment contracts held for investment | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.08 | 0.08 |
Retail installment contracts held for investment | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.50 | 0.50 |
Retail installment contracts held for investment | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.60 | 0.60 |
Personal loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 955,729 | $ 1,068,757 |
Personal loans held for sale | Market Approach | Market Participant View | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.70 | 0.70 |
Personal loans held for sale | Market Approach | Market Participant View | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.80 | 0.80 |
Personal loans held for sale | Income Approach | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.15 | 0.15 |
Personal loans held for sale | Income Approach | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.25 | 0.25 |
Personal loans held for sale | Income Approach | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.30 | 0.30 |
Personal loans held for sale | Income Approach | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.40 | 0.40 |
Personal loans held for sale | Income Approach | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.90 | 0.90 |
Personal loans held for sale | Income Approach | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.95 | 0.95 |
Personal loans held for sale | Income Approach | Net Principal & Interest Payment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.70 | 0.70 |
Personal loans held for sale | Income Approach | Net Principal & Interest Payment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.85 | 0.85 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 362,571,219 | 362,571,219 | 362,028,916 | ||||
Expiration period | 10 years | ||||||
MEP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares stock awards available for grant | 29,000,000 | ||||||
Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 5,192,641 | ||||||
Omnibus Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares stock awards available for grant | 583,890 | 583,890 | |||||
Stock vesting period | 5 years | ||||||
Compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | |||
Omnibus Incentive Plan | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | 7,042,000 | ||||||
Omnibus Incentive Plan | RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 5,794,000 | ||||||
Omnibus Incentive Plan | RSUs | Certain Officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Transfer and sale restrictions period | 1 year | ||||||
Omnibus Incentive Plan | RSUs | Certain Officers and Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 3 years | ||||||
Omnibus Incentive Plan | RSUs | Vesting One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 3 years | ||||||
Omnibus Incentive Plan | RSUs | Vesting Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 5 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Options and Related Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Shares | ||
Options outstanding as of beginning of period (in shares) | 645,376 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (145,198) | |
Expired (in shares) | (1,480) | |
Forfeited (in shares) | 0 | |
Other (in shares) | 1,480 | |
Options outstanding as of end of period (in shares) | 500,178 | 645,376 |
Options exercisable as of end of period (in shares) | 453,519 | |
Weighted Average Exercise Price | ||
Options outstanding as of beginning of period (in usd per share) | $ 13.15 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 9.73 | |
Expired (in usd per share) | 9.21 | |
Forfeited (in usd per share) | 0 | |
Other (in usd per share) | 9.21 | |
Options outstanding as of end of period (in usd per share) | 14.15 | $ 13.15 |
Options exercisable, Weighted average exercise price as of end of period (in usd per share) | $ 13.71 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding, Weighted average remaining contractual term (Years) | 3 years 8 months 12 days | 4 years |
Options exercisable, Weighted average remaining contractual term (Years) | 3 years 6 months | |
Aggregate Intrinsic Value | ||
Options outstanding, Aggregate intrinsic value | $ 4,971 | $ 3,682 |
Exercised, Aggregate intrinsic value | 1,674 | |
Options exercisable, Aggregate intrinsic value | $ 4,703 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Restricted Stock and Performance Stock Units (Details) - Restricted Stock and Performance Stock Units - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Shares | ||
Outstanding as of beginning of period (in shares) | 698,799 | |
Granted (in shares) | 473,325 | |
Vested (in shares) | (541,812) | |
Forfeited/canceled (in shares) | (20,981) | |
Unvested as of end of period (in shares) | 609,331 | 698,799 |
Weighted Average Grant Date Fair Value | ||
Outstanding as of beginning of period (in usd per share) | $ 14.53 | |
Granted (in usd per share) | 20.83 | |
Vested (in usd per share) | 16.70 | |
Forfeited/canceled (in usd per share) | 13.35 | |
Unvested as of end of period (in usd per share) | $ 17.62 | $ 14.53 |
Weighted Average Remaining Contractual Term (Years) | 1 year 6 months | 1 year 1 month 6 days |
Aggregate Intrinsic Value | ||
Outstanding as of beginning of period | $ 12,292 | |
Vested | $ 11,366 | |
Unvested as of end of period | $ 14,600 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases and Treasury Stock (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||||
Share repurchase program, authorized amount | $ 1,100,000,000 | $ 1,100,000,000 | $ 1,100,000,000 | $ 400,000,000 | ||
Stock repurchase | $ 86,800,000 | 86,864,000 | $ 17,780,000 | |||
Total cost of shares repurchased | $ 86,826,000 | $ 104,587,000 | ||||
Average price per share (in usd per share) | $ 23.16 | $ 22.18 | ||||
Number of shares repurchased (in shares) | 3,749,692 | 4,715,122 | ||||
Number of shares withheld to cover income taxes related to vesting of RSUs (in shares) | 14,441,079 | 14,441,079 | 14,441,079 | 9,725,957 | ||
Treasury stock value | $ 292,574,000 | $ 292,574,000 | $ 292,574,000 | $ 187,930,000 | ||
Number of shares withheld for income tax (in shares) | 0 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | $ 7,158,530 | $ 6,713,532 | $ 7,018,358 | $ 6,465,702 |
Ending balance | 7,337,261 | 7,033,636 | 7,337,261 | 7,033,636 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | 12,938 | 63,211 | 33,515 | 44,262 |
Other comprehensive income (loss) before reclassifications (gross) | (22,997) | 7,015 | (33,678) | 29,934 |
Amounts (gross) reclassified out of accumulated other comprehensive income (loss) | (10,508) | (7,777) | (20,404) | (11,747) |
Ending balance | $ (20,567) | $ 62,449 | $ (20,567) | $ 62,449 |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Interest expense | $ 330,039 | $ 273,953 | $ 664,421 | $ 514,981 | ||
Investment gain/loss | (84,787) | (82,634) | (151,884) | (169,154) | ||
Tax expense (benefit) | 111,764 | 114,120 | 201,528 | 172,172 | ||
Net of tax | 368,267 | $ 247,503 | 335,026 | $ 244,615 | 615,770 | 579,640 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Cash Flow Hedges | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Interest expense | (13,901) | (9,095) | (26,941) | (13,672) | ||
Investment gain/loss | 0 | 0 | 0 | 0 | ||
Tax expense (benefit) | 3,393 | 1,318 | 6,537 | 1,925 | ||
Net of tax | $ (10,508) | $ (7,777) | $ (20,404) | $ (11,747) |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - $ / shares | Aug. 20, 2019 | May 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Dividends Payable [Line Items] | ||||||||
Dividend paid per common share (in usd per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.05 | $ 0.05 | |||
Dividend declared per share (in usd per share) | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.40 | $ 0.10 | |||
Scenario, Forecast | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividend paid per common share (in usd per share) | $ 0.22 |
Investment Losses, Net - Schedu
Investment Losses, Net - Schedule of Investment Gains (Losses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gain (loss) on sale of loans and leases | $ 0 | $ (2,096) | $ 0 | $ (18,792) |
Lower of cost or market adjustments | (84,021) | (79,215) | (151,712) | (149,714) |
Other gains, (losses and impairments), net | (766) | (1,323) | (172) | (648) |
Investment losses, net | $ (84,787) | $ (82,634) | $ (151,884) | $ (169,154) |
Investment Losses, Net - Additi
Investment Losses, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Lower of cost or market adjustment, customer default activity | $ 97,267 | $ 89,513 | $ 206,421 | $ 195,287 |
Lower of cost or market adjustment | $ 13,246 | $ 10,298 | $ 54,709 | $ 45,573 |