Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | OneMain Holdings, Inc. | ||
Entity Central Index Key | 1,584,207 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,406,406,312 | ||
Entity Common Stock, Shares Outstanding (in shares) | 135,604,229 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 987 | $ 579 |
Investment securities | 1,697 | 1,764 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $9.8 billion in 2017 and $9.5 billion in 2016) | 14,823 | 13,577 |
Real estate loans | 128 | 144 |
Retail sales finance | 6 | 11 |
Net finance receivables | 14,957 | 13,732 |
Unearned insurance premium and claim reserves | (590) | (586) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | (697) | (689) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 13,670 | 12,457 |
Finance receivables held for sale | 132 | 153 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $482 million in 2017 and $552 million in 2016) | 498 | 568 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 440 | 492 |
Other assets | 587 | 688 |
Total assets | 19,433 | 18,123 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016) | 15,050 | 13,959 |
Insurance claims and policyholder liabilities | 737 | 757 |
Deferred and accrued taxes | 45 | 9 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 323 | 332 |
Total liabilities | 16,155 | 15,057 |
Commitments and contingent liabilities (Note 19) | ||
Shareholders’ equity: | ||
Common stock, par value $.01 per share; 2,000,000,000 shares authorized, 135,349,638 and 134,867,868 shares issued and outstanding at December 31, 2017 and 2016, respectively | 1 | 1 |
Additional paid-in capital | 1,560 | 1,548 |
Accumulated other comprehensive income (loss) | 11 | (6) |
Retained earnings | 1,706 | 1,523 |
Total shareholders’ equity | 3,278 | 3,066 |
Total liabilities and shareholders’ equity | $ 19,433 | $ 18,123 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Personal loans | $ 14,823 | $ 13,577 |
Allowance for finance receivable losses | 697 | 689 |
Restricted cash and restricted cash equivalents | 498 | 568 |
Long-term debt | 15,050 | 13,959 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | $ 323 | $ 332 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 135,349,638 | 134,867,868 |
Common stock, shares outstanding (in shares) | 135,349,638 | 134,867,868 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 465 | $ 501 |
Restricted cash and restricted cash equivalents | 482 | 552 |
Long-term debt | 8,700 | 8,200 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 14 | 12 |
Personal Loans | Consolidated VIEs | ||
Personal loans | $ 9,800 | $ 9,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Finance charges | $ 3,183 | $ 3,036 | $ 1,870 |
Finance receivables held for sale originated as held for investment | 13 | 74 | 60 |
Total interest income | 3,196 | 3,110 | 1,930 |
Interest expense | 816 | 856 | 715 |
Net interest income | 2,380 | 2,254 | 1,215 |
Provision for finance receivable losses | 955 | 932 | 716 |
Net interest income after provision for finance receivable losses | 1,425 | 1,322 | 499 |
Other revenues: | |||
Insurance | 420 | 449 | 211 |
Investment | 73 | 86 | 52 |
Net loss on repurchases and repayments of debt | (29) | (17) | 0 |
Net gain on sale of SpringCastle interests | 0 | 167 | 0 |
Net gain on sales of personal and real estate loans and related trust assets | 0 | 18 | 0 |
Other | 96 | 70 | (1) |
Total other revenues | 560 | 773 | 262 |
Operating expenses: | |||
Salaries and benefits | 757 | 788 | 485 |
Acquisition-related transaction and integration expenses | 69 | 108 | 62 |
Other operating expenses | 544 | 676 | 344 |
Insurance policy benefits and claims | 184 | 167 | 96 |
Total other expenses | 1,554 | 1,739 | 987 |
Income (loss) before income tax expense (benefit) | 431 | 356 | (226) |
Income tax expense (benefit) | 248 | 113 | (133) |
Net income (loss) | 183 | 243 | (93) |
Net income attributable to non-controlling interests | 28 | 127 | |
Net income (loss) attributable to OneMain Holdings, Inc. | $ 183 | $ 215 | $ (220) |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 135,249,314 | 134,718,588 | 127,910,680 |
Diluted (in shares) | 135,678,991 | 135,135,860 | 127,910,680 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ 1.35 | $ 1.60 | $ (1.72) |
Diluted (in dollars per share) | $ 1.35 | $ 1.59 | $ (1.72) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 183 | $ 243 | $ (93) |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 21 | 36 | (28) |
Retirement plan liabilities adjustments | 12 | 22 | (9) |
Foreign currency translation adjustments | 6 | 4 | (6) |
Income tax effect: | |||
Net unrealized (gains) losses on non-credit impaired available-for-sale securities | (7) | (13) | 10 |
Retirement plan liabilities adjustments | (3) | (7) | 3 |
Foreign currency translation adjustments | (2) | (1) | 2 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | 27 | 41 | (28) |
Reclassification adjustments included in net income (loss): | |||
Net realized gains on available-for-sale securities | (14) | (15) | (12) |
Net realized gains on retirement plan liabilities | (2) | 0 | 0 |
Net realized gain on foreign currency translation adjustments | 0 | (4) | 0 |
Income tax effect: | |||
Net realized gains on available-for-sale securities | 5 | 5 | 4 |
Net realized gains on retirement plan liabilities | 1 | 0 | 0 |
Reclassification adjustments included in net income (loss), net of tax | (10) | (14) | (8) |
Other comprehensive income (loss), net of tax | 17 | 27 | (36) |
Comprehensive income (loss) | 200 | 270 | (129) |
Comprehensive income attributable to non-controlling interests | 0 | 28 | 127 |
Comprehensive income (loss) attributable to OneMain Holdings, Inc. | $ 200 | $ 242 | $ (256) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | OneMain Holdings, Inc. Shareholders’ Equity | Non-controlling Interests |
Beginning balance at Dec. 31, 2014 | $ 1,932 | $ 1 | $ 529 | $ 3 | $ 1,528 | $ 2,061 | $ (129) |
Common shares issued and outstanding | |||||||
Share-based compensation expense, net of forfeitures | 15 | 15 | 15 | ||||
Withholding tax on share-based compensation | (5) | (5) | (5) | ||||
Other comprehensive income (loss) | (36) | (36) | (36) | ||||
Net income (loss) | (93) | (220) | (220) | 127 | |||
Change in non-controlling interests: | |||||||
Distributions declared to joint venture partners | (77) | (77) | |||||
Sale of common stock, net of offering costs | 976 | 976 | 976 | ||||
Non-cash incentive compensation from Initial Stockholder | 15 | 15 | 15 | ||||
Excess tax benefit from share-based compensation | 3 | 3 | 3 | ||||
Ending balance at Dec. 31, 2015 | 2,730 | 1 | 1,533 | (33) | 1,308 | 2,809 | (79) |
Common shares issued and outstanding | |||||||
Share-based compensation expense, net of forfeitures | 22 | 22 | 22 | ||||
Withholding tax on share-based compensation | (7) | (7) | (7) | ||||
Other comprehensive income (loss) | 27 | 27 | 27 | ||||
Net income (loss) | 243 | 215 | 215 | 28 | |||
Change in non-controlling interests: | |||||||
Distributions declared to joint venture partners | (18) | (18) | |||||
Sale of equity interests in SpringCastle joint venture | 69 | 69 | |||||
Ending balance at Dec. 31, 2016 | 3,066 | 1 | 1,548 | (6) | 1,523 | 3,066 | 0 |
Common shares issued and outstanding | |||||||
Share-based compensation expense, net of forfeitures | 17 | 17 | 17 | ||||
Withholding tax on share-based compensation | (5) | (5) | (5) | ||||
Other comprehensive income (loss) | 17 | 17 | 17 | ||||
Net income (loss) | 183 | 183 | 183 | 0 | |||
Ending balance at Dec. 31, 2017 | $ 3,278 | $ 1 | $ 1,560 | $ 11 | $ 1,706 | $ 3,278 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ 183 | $ 243 | $ (93) |
Reconciling adjustments: | |||
Provision for finance receivable losses | 955 | 932 | 716 |
Depreciation and amortization | 328 | 521 | 198 |
Deferred income tax charge (benefit) | 30 | (97) | (209) |
Non-cash incentive compensation from Initial Stockholder | 0 | 0 | 15 |
Net gain on liquidation of United Kingdom subsidiary | 0 | (4) | 0 |
Net gain on sales of personal and real estate loans and related trust assets | 0 | (18) | 0 |
Net loss on repurchases and repayments of debt | 29 | 17 | 0 |
Share-based compensation expense, net of forfeitures | 17 | 22 | 15 |
Net gain on sale of SpringCastle interests | 0 | (167) | 0 |
Other | (4) | (8) | (4) |
Cash flows due to changes in: | |||
Other assets and other liabilities | 13 | (10) | (24) |
Insurance claims and policyholder liabilities | (22) | (64) | 27 |
Taxes receivable and payable | 63 | (47) | 113 |
Accrued interest and finance charges | (37) | 0 | (14) |
Other, net | 0 | 2 | 1 |
Net cash provided by operating activities | 1,555 | 1,322 | 741 |
Cash flows from investing activities | |||
Net principal originations of finance receivables held for investment and held for sale | (2,275) | (1,203) | (1,037) |
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 930 | 78 |
Purchase of OneMain Financial Holdings, LLC, net of restricted cash | 0 | 0 | (3,520) |
Proceeds from sale of SpringCastle interests, net of restricted cash | 0 | 26 | 0 |
Cash received from CitiFinancial Credit Company | 0 | 23 | 0 |
Available-for-sale securities purchased | (671) | (746) | (525) |
Trading and other securities purchased | 0 | (17) | (1,482) |
Available-for-sale securities called, sold, and matured | 739 | 837 | 525 |
Trading and other securities called, sold, and matured | 18 | 63 | 3,797 |
Proceeds from sale of real estate owned | 4 | 8 | 14 |
Other, net | (7) | (27) | (36) |
Net cash used for investing activities | (2,192) | (106) | (2,186) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt, net of commissions | 5,427 | 6,660 | 3,027 |
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | 976 |
Repayments of long-term debt | (4,447) | (8,320) | (1,960) |
Distributions to joint venture partners | (18) | (77) | |
Excess tax benefit from share-based compensation | 0 | 0 | 3 |
Withholding tax on vested RSUs and PRSUs | (5) | (7) | (5) |
Net cash provided by (used for) financing activities | 975 | (1,685) | 1,964 |
Effect of exchange rate changes on cash and cash equivalents | 1 | (1) | |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 338 | (468) | 518 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,147 | 1,615 | 1,097 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,485 | 1,147 | 1,615 |
Supplemental cash flow information | |||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,147 | 1,615 | 1,097 |
Interest paid | (746) | (765) | (594) |
Income taxes received (paid) | (156) | (249) | 38 |
Supplemental non-cash activities | |||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 1,945 | 617 | |
Transfer of finance receivables to real estate owned | 9 | 8 | 11 |
Net unsettled investment security purchases | $ 1 | $ 1 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations OneMain Holdings, Inc. is referred to in this report as “OMH” or, collectively with its subsidiaries, whether directly or indirectly owned, the “Company,” “we,” “us,” or “our.” OMH is a Delaware corporation. OMH is a financial services holding company whose principal subsidiaries are SFI and Independence. SFI’s principal subsidiary is SFC, and Independence’s principal subsidiary is OMFH. SFC and OMFH are financial services holding companies with subsidiaries engaged in the consumer finance and insurance businesses. At December 31, 2017 , the Initial Stockholder owned approximately 44% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. On December 27, 2017, SoftBank acquired Fortress and Fortress now operates within SoftBank as an independent business headquartered in New York. See Note 24 regarding a definitive agreement entered into on January 3, 2018, among OMH, an investor group led by funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) and Värde Partners, Inc. (“Värde” and together with Apollo, collectively, the “Apollo-Värde Group”) and the Initial Stockholder. |
Significant Transactions
Significant Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions ONEMAIN ACQUISITION On November 15, 2015, OMH completed its acquisition of OneMain from Citigroup for approximately $4.5 billion in cash (the OneMain Acquisition). OneMain is a leading consumer finance company in the United States, providing personal loans to primarily middle income households through a national, community based network. The results of OneMain are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup. We allocated the purchase price to the net tangible and intangible assets acquired and liabilities assumed, based on their respective estimated fair values as of October 31, 2015. Given the timing of this transaction and complexity of the purchase accounting, our estimate of the fair value adjustment specific to the acquired loans and intangible assets was preliminary, and our determination of the final tax positions with Citigroup was also preliminary. During 2016, we finalized the accounting for these matters as shown in the table below. The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) As Adjustments * As Cash consideration $ 4,478 $ (23 ) (a) $ 4,455 Fair value of assets acquired: Cash and cash equivalents 958 — 958 Investment securities 1,294 — 1,294 Personal loans 8,801 (6 ) (b) 8,795 Intangibles 555 3 (c) 558 Other assets 247 (3 ) (d) 244 Fair value of liabilities assumed: Long-term debt (7,725 ) — (7,725 ) Unearned premium, insurance policy and claims reserves (936 ) — (936 ) Other liabilities (156 ) 1 (e) (155 ) Goodwill $ 1,440 $ 1,422 * During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available: (a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments. (b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period. (c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date. (d) Represents a decrease in valuation of acquired software asset. (e) Represents the settlement of a payable to Citigroup during the measurement period. Of the adjusted $8.8 billion of acquired personal loans included in the table above, $8.1 billion relates to finance receivables determined not to be credit impaired at acquisition. Contractually required principal and interest of these non-credit impaired personal loans was $11.6 billion at the date of acquisition, of which $2.2 billion is not expected to be collected, primarily due to forgone interest as a result of prepayments and defaults. The goodwill recognized from the OneMain Acquisition is reported in our Consumer and Insurance segment. We did not record any impairments to goodwill during 2017 and 2016 . See Note 9 for the reconciliations of the carrying amounts of goodwill at the beginning and end of 2017 and 2016 . As of December 31, 2017 , we had incurred approximately $239 million of acquisition-related transaction and integration expenses ( $69 million incurred during 2017 ) in connection with the OneMain Acquisition and the Lendmark Sale, which we report as a component of operating expenses. These expenses primarily include transaction costs, technology termination and certain compensation and benefit related costs. In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain of its subsidiaries entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement required certain of OMH’s subsidiaries (the “Branch Sellers”) to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement. The sale contemplated under the terms of the Settlement Agreement was consummated through the Lendmark Sale described below. LENDMARK SALE On November 12, 2015, OMH and the Branch Sellers entered into a purchase and sale agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103% , plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that had accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark would be unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, SFC transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016. On May 2, 2016, we completed the Lendmark Sale for an aggregate cash purchase price of $624 million . Such sale was effective as of April 30, 2016, and included the sale to Lendmark of personal loans with an unpaid principal balance (“UPB”) as of March 31, 2016 of $600 million . We entered into a transition services agreement with Lendmark dated as of May 2, 2016 (the “Transition Services Agreement”), and our activities remained subject to the oversight of the Monitoring Trustee appointed by the court pursuant to the Settlement Agreement until the expiration of the Transition Services Agreement. The Transition Services Agreement expired on May 1, 2017. SPRINGCASTLE INTERESTS SALE On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, on March 31, 2016, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.” In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million paid into an escrow account on July 29, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five -year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $ 167 million . As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless we are terminated, we will remain as servicer of the SpringCastle Portfolio under the servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary. Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for purposes of certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers. The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, the date of sale, was owned primarily by a private equity fund managed by an affiliate of Fortress. Wesley Edens, Chairman of the Board of Directors of OMH, also serves as Chairman of the Board of Directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the Board of Directors of Fortress. Douglas Jacobs, a member of the Board of Directors of OMH, also serves as a member of NRZ’s Board of Directors and Fortress’ Board of Directors. The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to the SpringCastle Interests Sale. REAL ESTATE LOAN SALES August 2016 Real Estate Loan Sale On August 3, 2016, SFC and certain of its subsidiaries sold a portfolio of second lien mortgage loans for aggregate cash proceeds of $246 million (the “August 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of $4 million . Unless we are terminated or we resign as servicer, we will continue to service the loans included in this sale pursuant to a servicing agreement. The purchase and sale agreement and the servicing agreement include customary representations and warranties and indemnification provisions. December 2016 Real Estate Loan Sale On December 19, 2016, SFC and certain of its subsidiaries sold a portfolio of first and second lien mortgage loans for aggregate cash proceeds of $ 58 million (the “December 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of less than $ 1 million . SFC’s MEDIUM-TERM NOTE ISSUANCES 8.25% Senior Notes Due 2020 On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a First Supplemental Indenture, dated as of December 3, 2014 (the “SFC First Supplemental Indenture”) and a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis. 6.125% Senior Notes Due 2022 On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “ 6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price. 5.625% Senior Notes Due 2023 On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the ‘‘ 5.625% SFC Notes’’) under the SFC Base Indenture, as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture” and, collectively with the SFC Base Indenture, the SFC First Supplemental Indenture, the SFC Second Supplemental Indenture, and the SFC Third Supplemental Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis. See Note 12 for further information regarding our debt issuances. INITIAL STOCKHOLDER SHARE SALES On November 7, 2017, we entered into an Underwriting Agreement among the Company, the Initial Stockholder and Morgan Stanley & Co. LLC (the “Underwriter”), for the sale by the Initial Stockholder of 10,000,000 shares of the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), plus an option for the Underwriter to purchase up to an additional 1,500,000 shares of Common Stock within 30 days after the date of the Underwriting Agreement. The shares sold by the Initial Stockholder were beneficially owned by Fortress. The transaction closed on November 10, 2017 and the underwriter purchased 1,000,000 shares under its over-allotment option on December 7, 2017. The Company did no t receive any proceeds from the sale of the shares by the Initial Stockholder. On December 13, 2017, we entered into an Underwriting Agreement, among the Company, the Initial Stockholder and the Underwriter, for the sale by the Initial Stockholder of 7,500,000 additional shares of the Company’s Common Stock, par value $0.01 per share. The shares sold by the Initial Stockholder were beneficially owned by Fortress. The transaction closed on December 18, 2017. The Company did no t receive any proceeds from the sale of the shares by the Initial Stockholder. After closing of the transaction, the Initial Stockholder owned approximately 44% of OMH’s common stock. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using GAAP . The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with a joint venture in which we owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 22, we have revised our prior period segment disclosures. ACCOUNTING POLICIES Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments include: • Consumer and Insurance; and • Acquisitions and Servicing. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the Springleaf United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when four contractual payments become past due for personal loans and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as TDR finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to update on a quarterly basis the amount of cash flows we expect to collect, which incorporates assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount, and such removal will not affect the yield used to recognize accretable yield of the pool. Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize past due interest or forgive principal or interest. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by contractual delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we may require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. Reserve for Sales Recourse Obligations When we sell finance receivables, we may establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance . For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. Investment Securities We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $180 million of minimum lease commitments from these operating leases (refer to Note 19). We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, real estate loans, and retail sales finance as defined below: • Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of three to six years . At December 31, 2017 , we had over 2.4 million personal loans representing $14.8 billion of net finance receivables, compared to 2.2 million personal loans totaling $13.6 billion at December 31, 2016 . • Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months , and are considered non-conforming. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. In 2012, we ceased originating real estate loans and the portfolio is in a liquidating status. • Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction, are secured by the personal property designated in the contract and generally have maximum original terms of 60 months . Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant, are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is in a liquidating status. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Gross receivables * $ 16,221 $ 127 $ 7 $ 16,355 Unearned finance charges and points and fees (1,725 ) — (1 ) (1,726 ) Accrued finance charges 210 1 — 211 Deferred origination costs 117 — — 117 Total $ 14,823 $ 128 $ 6 $ 14,957 December 31, 2016 Gross receivables * $ 15,405 $ 142 $ 12 $ 15,559 Unearned finance charges and points and fees (2,062 ) 1 (1 ) (2,062 ) Accrued finance charges 151 1 — 152 Deferred origination costs 83 — — 83 Total $ 13,577 $ 144 $ 11 $ 13,732 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. At December 31, 2017 and 2016 , unused lines of credit extended to customers by the Company were immaterial. GEOGRAPHIC DIVERSIFICATION Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows: December 31, 2017 2016 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,302 9 % $ 1,196 9 % North Carolina 1,155 8 1,112 8 Pennsylvania 883 6 825 6 California 883 6 813 6 Ohio 726 5 660 5 Florida 678 5 579 4 Illinois 668 4 599 4 Virginia 641 4 623 5 Georgia 618 4 586 4 Indiana 608 4 539 4 Tennessee 520 3 465 3 Other 6,275 42 5,735 42 Total $ 14,957 100 % $ 13,732 100 % * December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 state concentrations. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are contractually 60 days past due, we consider them delinquent and transfer collection of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Performing: Current $ 14,124 $ 98 $ 6 $ 14,228 30-59 days past due 204 8 — 212 60-89 days past due 157 3 — 160 Total performing 14,485 109 6 14,600 Nonperforming: 90-179 days past due 332 4 — 336 180 days or more past due 6 15 — 21 Total nonperforming 338 19 — 357 Total $ 14,823 $ 128 $ 6 $ 14,957 December 31, 2016 Performing: Current $ 12,920 $ 102 $ 11 $ 13,033 30-59 days past due 174 9 — 183 60-89 days past due 130 4 — 134 Total performing 13,224 115 11 13,350 Nonperforming: 90-179 days past due 349 8 — 357 180 days or more past due 4 21 — 25 Total nonperforming 353 29 — 382 Total $ 13,577 $ 144 $ 11 $ 13,732 We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2017 and at December 31, 2016 were immaterial. PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased in connection with the OneMain Acquisition and the Fortress Acquisition. Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold our interest in the SpringCastle Portfolio in connection with the SpringCastle Interests Sale. We report the carrying amount (which initially was the fair value) of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below. At December 31, 2017 and 2016 , finance receivables held for sale totaled $132 million and $153 million , respectively, which include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below. See Note 7 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans FA Loans (a) Total December 31, 2017 Carrying amount, net of allowance $ 176 $ 57 $ 233 Outstanding balance (b) 243 94 337 Allowance for purchased credit impaired finance receivable losses 6 9 15 December 31, 2016 Carrying amount, net of allowance $ 324 $ 70 $ 394 Outstanding balance (b) 444 107 551 Allowance for purchased credit impaired finance receivable losses 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. The allowance for purchased credit impaired finance receivable losses at December 31, 2017 and 2016 , reflected the carrying value of the purchased credit impaired loans held for investment being higher than the present value of the expected cash flows. Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (a) (34 ) — (5 ) (39 ) Reclassifications from (to) nonaccretable difference (b) 22 — (2 ) 20 Balance at end of period $ 47 $ — $ 53 $ 100 Year Ended December 31, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (a) (69 ) (16 ) (7 ) (92 ) Other (c) (23 ) — — (23 ) Reclassifications from nonaccretable difference (b) — — 12 12 Transfers due to finance receivables sold — (359 ) (11 ) (370 ) Balance at end of period $ 59 $ — $ 60 $ 119 Year Ended December 31, 2015 Balance at beginning of period $ — $ 452 $ 54 $ 506 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (15 ) (77 ) (8 ) (100 ) Reclassifications from nonaccretable difference (b) — — 20 20 Balance at end of period $ 151 $ 375 $ 66 $ 592 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 (b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2017 TDR gross finance receivables (b) $ 318 $ 139 $ 457 TDR net finance receivables 318 140 458 Allowance for TDR finance receivable losses 135 12 147 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 (a) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 (b) As defined earlier in this Note. As of December 31, 2017 , we had no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2017 TDR average net receivables $ 231 $ — $ 140 $ 371 TDR finance charges recognized 33 — 9 42 Year Ended December 31, 2016 TDR average net receivables $ 95 $ — $ 175 $ 270 TDR finance charges recognized 12 — 11 23 Year Ended December 31, 2015 TDR average net receivables (c) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 (c) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables. Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Real Estate Total Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 327 $ — $ 16 $ 343 Post-modification TDR net finance receivables: Rate reduction $ 251 $ — $ 16 $ 267 Other (c) 75 — — 75 Total post-modification TDR net finance receivables $ 326 $ — $ 16 $ 342 Number of TDR accounts 45,560 — 510 46,070 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 211 $ 1 $ 16 $ 228 Post-modification TDR net finance receivables: Rate reduction $ 194 $ 1 $ 16 $ 211 Other (c) 12 — 1 13 Total post-modification TDR net finance receivables $ 206 $ 1 $ 17 $ 224 Number of TDR accounts 29,435 157 364 29,956 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 48 $ 7 $ 21 $ 76 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (c) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,425 721 385 9,531 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 (c) “Other” modifications primarily include forgiveness of principal or interest. Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming ( 90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Year Ended December 31, 2017 TDR net finance receivables (b) $ 89 $ — $ 4 $ 93 Number of TDR accounts 15,035 — 101 15,136 Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 24 $ — $ 3 $ 27 Number of TDR accounts 3,693 19 61 3,773 Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,655 147 46 1,848 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $ 1 million and, therefore, are not quantified in the combined table above. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2017 Balance at beginning of period $ 669 $ — $ 19 $ 1 $ 689 Provision for finance receivable losses 949 — 6 — 955 Charge-offs (1,048 ) — (5 ) (1 ) (1,054 ) Recoveries 103 — 3 1 107 Balance at end of period $ 673 $ — $ 23 $ 1 $ 697 Year Ended December 31, 2016 Balance at beginning of period $ 541 $ 4 $ 46 $ 1 $ 592 Provision for finance receivable losses 909 14 9 — 932 Charge-offs (846 ) (17 ) (11 ) (1 ) (875 ) Recoveries 65 3 5 1 74 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 669 $ — $ 19 $ 1 $ 689 Year Ended December 31, 2015 Balance at beginning of period $ 132 $ 3 $ 46 $ 1 $ 182 Provision for finance receivable losses 634 67 13 2 716 Charge-offs (261 ) (78 ) (18 ) (3 ) (360 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 541 $ 4 $ 46 $ 1 $ 592 (a) Other consists of: • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture; and • the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance receivable held for sale during 2016. (b) Other consists of the elimination of allowance for finance receivable losses due to the transfer of personal loans held for investment to finance receivable held for sale during 2015. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 532 $ 2 $ 1 $ 535 Purchased credit impaired finance receivables 6 9 — 15 TDR finance receivables 135 12 — 147 Total $ 673 $ 23 $ 1 $ 697 Finance receivables: Collectively evaluated for impairment $ 14,323 $ 57 $ 6 $ 14,386 Purchased credit impaired finance receivables 182 22 — 204 TDR finance receivables 318 49 — 367 Total $ 14,823 $ 128 $ 6 $ 14,957 Allowance for finance receivable losses as a percentage of finance receivables 4.53 % 18.66 % 9.91 % 4.66 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 571 $ — $ 1 $ 572 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 669 $ 19 $ 1 $ 689 Finance receivables: Collectively evaluated for impairment $ 13,072 $ 76 $ 11 $ 13,159 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,577 $ 144 $ 11 $ 13,732 Allowance for finance receivable losses as a percentage of finance receivables 4.93 % 13.31 % 4.42 % 5.01 % See Note 3 for additional information on the determination of the allowance for finance receivable losses. |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 12 Months Ended |
Dec. 31, 2017 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $132 million at December 31, 2017 and $153 million at December 31, 2016 , which are carried at the lower of cost or fair value and consist entirely of real estate loans. At December 31, 2017 and 2016 , the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. See Note 3 for more information regarding our accounting policy for finance receivables held for sale. SPRINGCASTLE PORTFOLIO During March of 2016, we transferred $ 1.6 billion of loans of the SpringCastle Portfolio from held for investment to held for sale and simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $ 167 million . PERSONAL LOANS During 2015, we transferred $ 608 million of personal loans from held for investment to held for sale. On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million . REAL ESTATE LOANS On November 30, 2016, we transferred $50 million of real estate loans from held for investment to held for sale. In connection with the December 2016 Real Estate Loan Sale, we sold a portfolio of first and second lien mortgage loans with a carrying value of $58 million and recorded a net loss in other revenues of less than $1 million . On June 30, 2016, we transferred $257 million of real estate loans from held for investment to held for sale. In connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $250 million and recorded a net loss in other revenues of $4 million . We did not have any other material transfer activity to or from finance receivables held for sale during 2017 , 2016 or 2015. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 28 $ — $ — $ 28 Obligations of states, municipalities, and political subdivisions 135 — — 135 Certificates of deposit and commercial paper 60 — — 60 Non-U.S. government and government sponsored entities 126 — (1 ) 125 Corporate debt 941 12 (5 ) 948 Mortgage-backed, asset-backed, and collateralized: RMBS 100 — (1 ) 99 CMBS 88 — (1 ) 87 CDO/ABS 96 — — 96 Total bonds 1,574 12 (8 ) 1,578 Preferred stock (a) 15 — (1 ) 14 Common stock (a) 21 2 — 23 Other long-term investments 1 — — 1 Total (b) $ 1,611 $ 14 $ (9 ) $ 1,616 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016 , which is classified as a restricted investment and carried at cost. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2017 Bonds: U.S. government and government sponsored entities $ 21 $ — $ 3 $ — $ 24 $ — Obligations of states, municipalities, and political subdivisions 65 — 20 — 85 — Non-U.S. government and government sponsored entities 89 (1 ) 13 — 102 (1 ) Corporate debt 387 (3 ) 93 (2 ) 480 (5 ) RMBS 40 — 25 (1 ) 65 (1 ) CMBS 40 — 38 (1 ) 78 (1 ) CDO/ABS 48 — 26 — 74 — Total bonds 690 (4 ) 218 (4 ) 908 (8 ) Preferred stock 3 — 7 (1 ) 10 (1 ) Common stock 3 — — — 3 — Other long-term investments 1 — — — 1 — Total $ 697 $ (4 ) $ 225 $ (5 ) $ 922 $ (9 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. On a lot basis, we had 1,369 and 1,331 investment securities in an unrealized loss position at December 31, 2017 and 2016 , respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2017 , we had no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential impairments. During 2017 , we did no t recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues. During each of the 2016 and 2015 periods, other-than-temporary impairment credit losses were immaterial. There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities for the 2017 , 2016 and 2015 periods. The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Proceeds from sales and redemptions $ 508 $ 518 $ 431 Realized gains $ 15 $ 16 $ 15 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 14 $ 15 $ 14 Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 224 $ 225 Due after 1 year through 5 years 530 531 Due after 5 years through 10 years 335 334 Due after 10 years 207 200 Mortgage-backed, asset-backed, and collateralized securities 282 284 Total $ 1,578 $ 1,574 Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies. The fair value of securities on deposit with third parties totaled $537 million and $465 million at December 31, 2017 and 2016 , respectively. TRADING AND OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) December 31, 2017 2016 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 68 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 74 93 Preferred stock 6 6 Total $ 80 $ 99 The mark-to-market and net realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Mark-to-market gains (losses) on trading and other securities held at year end $ (1 ) $ 1 $ — Net realized gains (losses) on trading and other securities sold or redeemed during the year — 7 (3 ) Total $ (1 ) $ 8 $ (3 ) Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets GOODWILL Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 Balance at beginning of period $ 1,422 $ 1,440 Adjustments to purchase price allocation* — (18 ) Balance at end of period $ 1,422 $ 1,422 * See Note 2 for details regarding this transaction. Goodwill was recorded at the OMFH subsidiary level. We did not record any impairments to goodwill during 2017 and 2016 . OTHER INTANGIBLE ASSETS The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2017 Customer relationships $ 223 $ (92 ) $ 131 Trade names 220 — 220 VOBA 141 (90 ) 51 Licenses 37 — 37 Other 13 (12 ) 1 Total $ 634 $ (194 ) $ 440 December 31, 2016 Customer relationships $ 223 $ (58 ) $ 165 Trade names 220 — 220 VOBA 141 (74 ) 67 Licenses 37 — 37 Other 13 (10 ) 3 Total $ 634 $ (142 ) $ 492 Amortization expense totaled $52 million in 2017 , $70 million in 2016 , and $16 million in 2015 . The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2018 $ 42 2019 39 2020 38 2021 32 2022 3 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Components of other assets were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets $ 146 $ 180 Fixed assets, net * 144 167 Prepaid expenses and deferred charges 109 97 Ceded insurance reserves 95 102 Other investments 29 52 Current tax receivable 15 43 Cost basis investments 11 11 Other 38 36 Total $ 587 $ 688 * Fixed assets were net of accumulated depreciation of $202 million at December 31, 2017 and $268 million at December 31, 2016 . |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017 , 2016 , and 2015 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for Springleaf investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017 , 2016 , and 2015 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. Unless we are terminated, we will continue to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust pursuant to a servicing agreement. Servicing fees revenue totaled $37 million in 2017 and $32 million in 2016. At December 31, 2017 and 2016, servicing fees receivable from the SpringCastle Funding Trust totaled $3 million . See Note 2 for more information regarding this transaction. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Carrying value and fair value of long-term debt by type were as follows: December 31, 2017 December 31, 2016 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 14,878 $ 15,436 $ 13,787 $ 14,340 Junior subordinated debt 172 189 172 158 Total $ 15,050 $ 15,625 $ 13,959 $ 14,498 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2017 2016 2015 2017 2016 Senior debt 5.73 % 5.60 % 6.56 % 5.56 % 5.80 % Junior subordinated debt 6.41 12.26 12.26 6.37 12.26 Total 5.74 5.67 6.65 5.57 5.88 Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.94% 5.25% - 8.25% 3.11% 2018 — 700 — 700 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 1,175 350 1,525 Securitizations (b) 8,711 — — 8,711 Total principal maturities $ 8,711 $ 6,316 $ 350 $ 15,377 Total carrying amount $ 8,688 $ 6,190 $ 172 $ 15,050 Debt issuance costs (c) $ (24 ) $ (30 ) $ — $ (54 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $20 million at December 31, 2017 and are reported in other assets. SFC’s Medium-Term Note Issuances 5.625% Senior Notes Due 2023 On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the “ 5.625% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis. SFC used a portion of the net proceeds from the sale of the 5.625% SFC Notes to repay at maturity approximately $557 million aggregate principal amount of its existing 6.90% Medium-Term Notes. SFC intends to use the remaining net proceeds from the sale of the 5.625% SFC Notes for general corporate purposes, which may include additional debt repurchases and repayments. 6.125% Senior Notes Due 2022 On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “ 6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price. SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes. 8.25% Senior Notes Due 2020 On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “ 8.25% SFC Notes”) under the SFC Base Indenture, as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture” and, collectively with the SFC Base Indenture and the SFC First Supplemental Indenture, the SFC Third Supplemental Indenture, and the SFC Fourth Supplemental Indenture thereto, the “Indenture”), pursuant to which OMH provided a guarantee of the 8.25% SFC notes on an unsecured basis. SFC used a portion of the proceeds from the sale of the 8.25% SFC Notes to repurchase approximately $600 million aggregate principal amount of its existing senior notes that were scheduled to mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased new 8.25% SFC Notes in the offering. SFC used the remaining net proceeds for general corporate purposes. The 5.625% SFC Notes, 6.125% SFC Notes and 8.25% SFC Notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries. The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund. The Indenture contain covenants that, among other things, (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them were to occur, would permit or require the principal of and accrued interest on the SFC Notes to become, or to be declared, due and payable. GUARANTY AGREEMENTS 5.625% SFC Notes On December 8, 2017, OMH entered into the SFC Fourth Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.625% SFC Notes. As of December 31, 2017 , $875 million aggregate principal amount of the 5.625% SFC Notes were outstanding. 6.125% SFC Notes On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding. 8.25% SFC Notes On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. 5.25% SFC Notes On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of December 31, 2017 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consist of the following: • 8.25% Senior Notes due 2023; • 7.75% Senior Notes due 2021; • 6.00% Senior Notes due 2020; and • the Junior Subordinated Debenture The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2017 , approximately $1.6 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH 6.75% Notes and 7.25% Notes Indenture On December 11, 2014, OMFH and certain of its subsidiaries entered into the OMFH Indenture, among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of the OMFH Notes. The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries, other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2017 , $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. On November 8, 2016, OMH entered into the OMFH Second Supplemental Indenture, pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company. On December 8, 2017 OMFH provided notice to note holders to redeem all $700 million outstanding principal amount of the 2019 OMFH Notes on January 8, 2018, at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. See Note 24 for more detail on this redemption. The OMH guarantees of OMFH’s long-term debt discussed above are subject to customary release provisions. DEBT COVENANTS SFC Debt Agreements The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. With the exception of SFC’s junior subordinated debenture, none of our debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty, may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. As of December 31, 2017 , SFC was in compliance with all of the covenants under its debt agreements. Junior Subordinated Debenture In January of 2007, SFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60 -year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . Pursuant to the terms of the Junior Subordinated Debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated Debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated Debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10 x for the trailing four quarters. Based upon SFC’s financial results for the 12 months ended December 31, 2017, a mandatory trigger event did not occur with respect to the interest payment due in January of 2018, as SFC was in compliance with both required ratios discussed above. OMFH Debt Agreements None of OMFH’s debt agreements require OMFH or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, the OMFH Indenture does contain a number of covenants that limit, among other things, OMFH’s ability and the ability of most of its subsidiaries to incur additional debt; create liens securing certain debt; pay dividends on or make distributions in respect of its capital stock or make investments or other restricted payments; create restrictions on the ability of its restricted subsidiaries to pay dividends to OMFH or make certain other intercompany transfers; sell certain assets; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and enter into certain transactions with affiliates. The OMFH Indenture also contains customary events of default which would permit the trustee or the holders of the OMFH Notes to declare the OMFH Notes to be immediately due and payable if not cured within applicable grace periods, including the nonpayment of principal, interest or premium, if any, when due; violation of covenants and other agreements contained in the OMFH Indenture; payment default after final maturity or cross acceleration of certain material debt; certain bankruptcy and insolvency events; material judgment defaults; and the failure of any guarantee of the notes, other than in accordance with the terms of the OMFH Indenture or such guarantee. On November 8, 2016, OMH agreed to fully, unconditionally, and irrevocably guarantee the OMFH Notes. As of December 31, 2017 , OMFH was in compliance with all of the covenants under its debt agreements. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. In addition, with respect to each financing transaction that is subject to the risk retention requirements of Section 941 of the Dodd-Frank Act, we retain at least 5% of the balance of each class of debt obligations and at least 5% of the residual interest in each VIE which, collectively, represents 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2017 2016 Assets Cash and cash equivalents $ 4 $ 3 Finance receivables: Personal loans 9,769 9,509 Allowance for finance receivable losses 465 501 Restricted cash and restricted cash equivalents 482 552 Other assets 20 14 Liabilities Long-term debt $ 8,688 $ 8,240 Other liabilities 15 16 SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our securitized borrowings at December 31, 2017 consisted of the following: (dollars in millions) Issue Amount * Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 1,163 3.47 % 3 years 02/26/2015 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/2015 05/2028 SLFT 2016-A (a) 532 500 3.10 % 2 years 12/14/2016 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/2017 07/2030 OMFIT 2014-2 1,185 320 4.16 % 2 years 07/30/2014 09/2024 OMFIT 2015-1 1,229 1,229 3.74 % 3 years 02/05/2015 03/2026 OMFIT 2015-2 1,250 750 3.40 % 2 years 05/21/2015 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/2015 11/2028 OMFIT 2016-1 (c) 500 459 4.01 % 3 years 02/10/2016 02/2029 OMFIT 2016-2 (d) 890 816 4.50 % 2 years 03/23/2016 03/2028 OMFIT 2016-3 (e) 350 317 4.33 % 5 years 06/07/2016 06/2031 OMFIT 2017-1 (f) 947 900 2.66 % 2 years 09/06/2017 09/2032 Total consumer securitizations 7,680 Auto Securitization: ODART 2016-1 (g) 754 188 2.91 % — 07/19/2016 Various ODART 2017-1 (h) 300 268 2.61 % 1 year 02/01/2017 Various ODART 2017-2 (i) 605 575 2.63 % 1 year 12/11/2017 Various Total auto securitizations 1,031 Total secured structured financings $ 8,711 * Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts. (a) SLFT 2016-A Securitization. We initially retained $32 million of the asset-backed notes. (b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (c) OMFIT 2016-1 Securitization. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes. (f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (g) ODART 2016-1 Securitization. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. (i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes. Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million , which excluded $33 million for the Class D Notes owned by Twenty First Street, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption. Call of 2014-1 Notes. On November 20, 2017, we exercised our right to redeem the 2014-1 Notes for a redemption price of $ 81 million . The outstanding principal balance of the asset-backed notes was $ 81 million on the date of the optional redemption. REVOLVING CONDUIT FACILITIES As of December 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End Backed by Loans Acquired from Subsidiaries of Due and Payable (a) First Avenue Funding, LLC $ 250 $ — June 2018 SFC - auto loans (b) Seine River Funding, LLC 500 — December 2019 SFC - personal loans December 2022 OneMain Financial B6 Warehouse Trust 600 — February 2019 OMFH - personal loans February 2021 Rocky River Funding, LLC 250 — September 2019 OMFH - personal loans October 2020 OneMain Financial Funding VII, LLC 650 — October 2019 OMFH - personal loans November 2021 Thur River Funding, LLC 350 — June 2020 SFC - personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 OMFH - personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 SFC - personal loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 SFC - auto loans October 2021 OneMain Financial Auto Funding I, LLC 750 — October 2020 OMFH - auto loans November 2027 Total $ 5,050 $ — (a) The date following the revolving period that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full. (b) For First Avenue Funding, LLC, principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue Funding, LLC. During the 2017 period, we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above: Termination Date Midbrook 2013-VFN1 Trust 04/13/2017 OneMain Financial B5 Warehouse Trust 04/13/2017 Sumner Brook 2013-VFN1 Trust 06/29/2017 Whitford Brook 2014-VFN1 Trust 07/14/2017 OneMain Financial B3 Warehouse Trust 07/14/2017 Springleaf 2013-VFN1 Trust 09/28/2017 Second Avenue Funding LLC 09/29/2017 OneMain Financial B4 Warehouse Trust 11/08/2017 VIE INTEREST EXPENSE Other than our retained interest in certain debt obligations issued by VIEs and residual interests in the remaining consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $323 million in 2017 , $341 million in 2016 , and $216 million in 2015 . DECONSOLIDATED VIES As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance | Insurance INSURANCE RESERVES Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2017 2016 Finance receivable related: Payable to OMH: Unearned premium reserves $ 515 $ 508 Claim reserves 75 78 Subtotal (a) 590 586 Payable to third-party beneficiaries: Unearned premium reserves 99 98 Benefit reserves 103 105 Claim reserves 18 20 Subtotal (b) 220 223 Non-finance receivable related: Unearned premium reserves 81 86 Benefit reserves 375 388 Claim reserves 61 60 Subtotal (b) 517 534 Total $ 1,327 $ 1,343 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies totaled $325 million and $333 million at December 31, 2017 and 2016 , respectively. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $95 million and $102 million at December 31, 2017 and 2016 , respectively. Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 158 $ 177 $ 70 Less reinsurance recoverables (26 ) (26 ) (22 ) Net balance at beginning of period 132 151 48 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition — — 104 Additions for losses and loss adjustment expenses incurred to: Current year 188 203 83 Prior years * 5 (20 ) 5 Total 193 183 88 Reductions for losses and loss adjustment expenses paid related to: Current year (115 ) (124 ) (63 ) Prior years (78 ) (78 ) (26 ) Total (193 ) (202 ) (89 ) Foreign currency translation adjustment (1 ) — — Net balance at end of period 131 132 151 Plus reinsurance recoverables 23 26 26 Balance at end of period $ 154 $ 158 $ 177 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017 , primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies (ii) a redundancy in the prior years’ net reserves of $20 million at December 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed. Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: Years Ended December 31, At December 31, 2017 (dollars in millions) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2013 $ 140 $ 127 $ 125 $ 124 $ 124 $ — 50,295 2.7 % 2014 — 145 132 130 131 3 51,776 2.7 % 2015 — — 138 129 129 8 52,505 2.8 % 2016 — — — 138 135 20 51,558 2.8 % 2017 — — — — 136 59 39,329 2.2 % Total $ 655 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: Years Ended December 31, (dollars in millions) 2013 * 2014 * 2015 * 2016 * 2017 Credit Insurance Accident Year 2013 $ 68 $ 105 $ 115 $ 121 $ 124 2014 — 71 110 121 128 2015 — — 71 109 121 2016 — — — 75 115 2017 — — — — 77 Total $ 565 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 90 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2017 2016 * 2015 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 90 $ 96 $ 105 Other short-duration insurance lines 22 20 25 Total 112 116 130 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 20 22 22 Insurance lines other than short-duration 22 20 25 Total gross liability for unpaid claims and claim adjustment expense $ 154 $ 158 $ 177 * Unaudited. We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. For the long-tailed Excess & Surplus products, which have a longer period of time before claims are paid, unpaid claim liabilities are estimated by a third party and reviewed by our appointed actuary using statistical analyses, including analysis of trends in loss severity and frequency. There have been no significant changes in methodologies or assumptions during 2017 . Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017 , were as follows: Years 1 2 3 4 5 Credit insurance 55.4 % 29.4 % 8.9 % 4.8 % 2.5 % STATUTORY ACCOUNTING Springleaf and OneMain insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana DOI and the Texas DOI, respectively, which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis. Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Property and casualty: Yosemite $ 19 $ 11 $ 15 Triton 31 14 3 Life and health: Merit $ 37 $ 20 $ (1 ) AHL 34 71 11 Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2017 2016 Property and casualty: Yosemite $ 42 $ 63 Triton 170 139 Life and health: Merit $ 79 $ 133 AHL 130 215 Springleaf and OneMain insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI and the Texas DOI, respectively. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2017 and 2016 , our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. DIVIDEND RESTRICTIONS Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. State law restricts the amounts that Merit and Yosemite may pay as dividends without prior notice to the Indiana DOI and the amounts that AHL and Triton may pay as dividends without prior notice to the Texas DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI or Texas DOI prior to its payment. The maximum ordinary dividends for an Indiana or Texas domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI or Texas DOI prior to its payment. These approved dividends are called “extraordinary dividends.” AHL and Triton paid extraordinary dividends to OMFH totaling $111 million in 2017 , $105 million during 2016 and $68 million of ordinary dividends subsequent to the effective closing of the OneMain Acquisition in 2015. Merit and Yosemite paid extraordinary dividends to SFC totaling $125 million , $63 million , and $100 million during 2017 , 2016 , and 2015 , respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Components of other liabilities were as follows: (dollars in millions) December 31, 2017 2016 Accrued expenses and other liabilities $ 119 $ 98 Salary and benefit liabilities 79 69 Accrued interest on debt 58 61 Retirement plans 13 31 Insurance liabilities 12 14 Loan principal warranty reserve 8 13 Other 34 46 Total $ 323 $ 332 |
Capital Stock and Earnings (Los
Capital Stock and Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings (Loss) Per Share | Capital Stock and Earnings (Loss) Per Share CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMH may issue preferred stock in series. The OMH board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance. Par value and shares authorized at December 31, 2017 were as follows: Preferred Stock * Common Stock Par value $ 0.01 $ 0.01 Shares authorized 300,000,000 2,000,000,000 * No shares of preferred stock were issued and outstanding at December 31, 2017 or 2016 . Changes in shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period 134,867,868 134,494,172 114,832,895 Common shares issued 481,770 373,696 19,661,277 Balance at end of period 135,349,638 134,867,868 134,494,172 Equity Offering On May 4, 2015, we completed an offering of 27,864,525 shares of common stock, consisting of 19,417,476 shares of common stock offered by us and 8,447,049 shares of common stock offered by the Initial Stockholder. The net proceeds from this sale to the Company were approximately $976 million , after deducting the underwriting discounts and commissions and additional offering-related expenses totaling $24 million . The net proceeds of the offering were contributed to Independence to finance a portion of the OneMain Acquisition. EARNINGS (LOSS) PER SHARE The computation of earnings (loss) per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2017 2016 2015 Numerator (basic and diluted): Net income (loss) attributable to OneMain Holdings, Inc. $ 183 $ 215 $ (220 ) Denominator: Weighted average number of shares outstanding (basic) 135,249,314 134,718,588 127,910,680 Effect of dilutive securities * 429,677 417,272 — Weighted average number of shares outstanding (diluted) 135,678,991 135,135,860 127,910,680 Earnings (loss) per share: Basic $ 1.35 $ 1.60 $ (1.72 ) Diluted $ 1.35 $ 1.59 $ (1.72 ) * We have excluded the following shares in the diluted earnings (loss) per share calculation for 2017 , 2016 , and 2015 because these shares would be anti-dilutive, which could impact the earnings (loss) per share calculation in the future: • 2017 : 59,863 performance-based shares and 674,472 service-based shares; • 2016 : 508,340 performance-based shares and 778,121 service-based shares; and • 2015 : 591,606 performance-based shares and 489,653 service-based shares Basic earnings (loss) per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings (loss) per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested RSUs and RSAs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 14 9 4 27 Reclassification adjustments from accumulated other comprehensive loss (9 ) (1 ) — (10 ) Balance at end of period $ 4 $ 4 $ 3 $ 11 Year Ended December 31, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 23 15 3 41 Reclassification adjustments from accumulated other comprehensive loss (10 ) — (4 ) (14 ) Balance at end of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive loss (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 14 $ 15 $ 12 Income tax effect (5 ) (5 ) (4 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 9 10 8 Unrealized gains (losses) on retirement plan liabilities: Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, before taxes $ 2 $ — $ — Income tax effect (1 ) — — Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, net of taxes 1 — — Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 4 — Total $ 10 $ 14 $ 8 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes OMH and all of its eligible domestic U.S. subsidiaries file a consolidated life/non-life federal tax return with the IRS. AHL, an insurance subsidiary of OneMain, is not an eligible company under Internal Revenue Code Section 1504 and therefore, files separate federal life insurance tax returns. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH. The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico, and the U.S. Virgin Islands. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2017 , the Company had no undistributed foreign earnings. Components of income (loss) before income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Income (loss) before income tax expense (benefit) - U.S. operations $ 416 $ 338 $ (238 ) Income before income tax expense - foreign operations 15 18 12 Total $ 431 $ 356 $ (226 ) Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Current: Federal $ 208 $ 185 $ 68 Foreign 2 1 1 State 8 24 7 Total current 218 210 76 Deferred: Federal 18 (81 ) (178 ) Foreign * — 3 — State 12 (19 ) (31 ) Total deferred 30 (97 ) (209 ) Total $ 248 $ 113 $ (133 ) * Deferred foreign income taxes were less than $ 1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above. Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico, and the U.S. Virgin Islands. During the 2016 and 2015 periods, expense from foreign income taxes also included United Kingdom operations. Reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Impact of Tax Act 18.65 — — State income taxes, net of federal 2.86 1.05 7.06 Excess tax benefit on share-based compensation 0.41 (0.49 ) — Tax impact of United Kingdom subsidiary liquidation — (0.60 ) — Non-controlling interests — (2.77 ) 19.77 Nondeductible compensation — — (2.40 ) Other, net 0.55 (0.42 ) (0.41 ) Effective income tax rate 57.47 % 31.77 % 59.02 % The effective income tax rate for 2017 , 2016 , and 2015 differed from the statutory federal income tax rate primarily due to the recognition of the impact of the Tax Act, effects of the non-controlling interest in the previously owned SpringCastle Portfolio, state income taxes, and discrete expense from the 2016 tax year return-to-provision adjustment. The effective income tax rate is based on income (loss) before taxes, which includes income (loss) attributable to non-controlling interests. The income (loss) attributable to the non-controlling interest is not included in the taxable income in OMH, resulting in variances from the statutory federal income tax rate of (2.77)% and 19.77% in 2016 and 2015 , respectively. The difference in the effective income tax rate in 2017 as compared to 2016 is primarily due to the recognition of the impact of the Tax Act which increased our 2017 effective income tax rate by 18.65% as compared to 2016 . As a result of the Tax Act we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. The difference in the impact on the effective income tax rate due to non-controlling interest in 2016 as compared to 2015 is due to the fact that the net income attributable to non-controlling interest was a smaller percentage of the total income (loss) in 2016 as compared to 2015 . A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 16 $ 15 $ 4 Increases in tax positions for current years 1 2 10 Increases in tax positions for prior years — — 4 Lapse in statute of limitations (2 ) (1 ) — Settlements with tax authorities — — (1 ) Decreases in tax positions for prior years — — (2 ) Balance at end of year $ 15 $ 16 $ 15 Our gross unrecognized tax benefits include related interest and penalties. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the IRS. We are also under examination of various states for the years 2011 to 2016. Management believes it has adequately provided for taxes for such years. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 149 $ 246 State taxes, net of federal 66 56 Mark-to-market 53 51 Pension/employee benefits 10 29 Acquisition costs 6 9 Federal and foreign net operating losses and tax attributes 5 4 Insurance reserves 3 — Legal and warranty reserve 2 6 Other intangibles 2 1 Other 8 5 Total 304 407 Deferred tax liabilities: Debt fair value adjustment 46 90 Goodwill 41 37 Deferred loan fees 14 12 Discount - debt exchange 11 16 Fixed assets 3 6 Deferred insurance commissions 2 1 Impact of tax accounting method change — 38 Insurance reserves — 2 Total 117 202 Net deferred tax assets before valuation allowance 187 205 Valuation allowance (44 ) (29 ) Net deferred tax assets $ 143 $ 176 The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. The decrease of our net deferred tax asset is mainly attributable to recording of an adjustment as of December 31, 2017 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act. During 2016 we liquidated our United Kingdom operations. As such, there are no net operating loss carryforwards (and no offsetting valuation allowances) related to our United Kingdom operations at December 31, 2016. At December 31, 2017 we had state net operating loss carryforwards of $730 million , compared to $791 million at December 31, 2016 . The state net operating loss carryforwards expire between 2018 and 2037. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $40 million and $26 million at December 31, 2017 and 2016 , respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more likely than not to not be realized. |
Lease Commitments, Rent Expense
Lease Commitments, Rent Expense, and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments, Rent Expense, and Contingent Liabilities | Lease Commitments, Rent Expense, and Contingent Liabilities LEASE COMMITMENTS AND RENT EXPENSE Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments 2018 $ 55 2019 44 2020 33 2021 22 2022 12 2023+ 14 Total $ 180 In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $79 million in 2017 , $84 million in 2016 , and $39 million in 2015 . LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. Federal Securities Class Actions On February 10, 2017, a putative class action lawsuit, Galestan v. OneMain Holdings, Inc., et al. , was filed in the U.S. District Court for the Southern District of New York, naming as defendants the Company and two of its officers. The lawsuit alleges violations of the Exchange Act for allegedly making materially misleading statements and/or omitting material information concerning alleged integration issues after the acquisition of OMFH in November 2015, and was filed on behalf of a putative class of persons who purchased or otherwise acquired the Company’s common stock between February 25, 2016 and November 7, 2016. The complaint seeks an award of unspecified compensatory damages, an award of interest, reasonable attorney’s fees, expert fees and other costs, and equitable relief as the court may deem just and proper. On March 23, 2017, the court appointed a lead plaintiff for the putative class and approved the lead plaintiff’s selection of counsel. The plaintiff filed an amended complaint on June 13, 2017 challenging statements regarding the Company’s projections of future financial performance and certain statements regarding integration after the OneMain Acquisition. On September 29, 2017, pursuant to the Court’s Individual Rules and Practices, we sought permission to file a motion to dismiss the amended complaint. The Company believes that the allegations specified in the amended complaint are without merit, and intends to vigorously defend against the claims. As the lawsuit is in the preliminary stages, the Company is unable to estimate a reasonably possible range of loss, if any, that may result from the lawsuit. SALES RECOURSE OBLIGATIONS At December 31, 2017 , our reserve for sales recourse obligations totaled $8 million , which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish an additional reserve for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction. The activity in our reserve for sales recourse obligations was as follows: (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 13 $ 15 $ 24 Recourse losses (1 ) — (2 ) Provision for recourse obligations, net of recoveries * (4 ) (2 ) (7 ) Balance at end of period $ 8 $ 13 $ 15 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. At December 31, 2017 , there were no material recourse requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans PENSION PLANS Retirement Plan The Springleaf Financial Services Retirement Plan (the “Retirement Plan”) is a noncontributory defined benefit plan which is subject to the provisions of ERISA. Effective December 31, 2012, the Retirement Plan was frozen. U.S. salaried employees who were employed by a participating company, had attained age 21 , and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65 ) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Retirement Plan that accrued prior to January 1, 2013. CommoLoCo Retirement Plan The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our current and former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. Unfunded Defined Benefit Plans We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. 401(K) PLANS We sponsor voluntary savings plans for our employees. Springleaf Financial Services 401(k) Plan The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2017 , 2016 , and 2015 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. We do not anticipate any changes to the Company’s matching contributions for 2018 . In addition, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same. The OneMain employees were eligible to participate in the 401(k) Plan beginning on November 15, 2015. The salaries and benefit expense associated with this plan was $16 million in 2017 , $21 million in 2016 , and $20 million in 2015 . CommoLoCo Thrift Plan The CommoLoCo Thrift Plan provided salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. The CommoLoCo Thrift Plan was terminated in 2016. There was no salaries and benefit expense associated with this plan for 2017 and 2016 , and this expense was immaterial in 2015 . OBLIGATIONS AND FUNDED STATUS The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) Pension * At or for the Years Ended December 31, 2017 2016 2015 Projected benefit obligation, beginning of period $ 385 $ 388 $ 409 Interest cost 13 16 15 Actuarial loss (gain) 17 (6 ) (24 ) Benefits paid: Plan assets (14 ) (13 ) (12 ) Settlement (47 ) — — Projected benefit obligation, end of period 354 385 388 Fair value of plan assets, beginning of period 354 333 359 Actual return on plan assets, net of expenses 47 33 (15 ) Company contributions 1 1 1 Benefits paid: Plan assets (14 ) (13 ) (12 ) Settlement (47 ) — — Fair value of plan assets, end of period 341 354 333 Funded status, end of period $ (13 ) $ (31 ) $ (55 ) Other liabilities recognized in the consolidated balance sheet $ (13 ) $ (31 ) $ (55 ) Pretax net gain (loss) recognized in accumulated other comprehensive income or loss $ 4 $ (7 ) $ (29 ) * Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2017 , 2016 , and 2015 . The accumulated benefit obligation for U.S. pension benefit plans was $354 million at December 31, 2017 and $385 million at December 31, 2016 . Defined benefit pension plan obligations in which the PBO was in excess of the related plan assets and the ABO was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2017 2016 Projected benefit obligation $ 354 $ 385 Accumulated benefit obligation 354 385 Fair value of plan assets 341 354 The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Pension Years Ended December 31, 2017 2016 2015 Components of net periodic benefit cost: Interest cost $ 13 $ 16 $ 15 Expected return on assets (18 ) (17 ) (19 ) Settlement gain (2 ) — — Net periodic benefit cost (7 ) (1 ) (4 ) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (12 ) (22 ) 9 Amortization of net actuarial gain (loss) 2 — — Total recognized in other comprehensive income or loss (10 ) (22 ) 9 Total recognized in net periodic benefit cost and other comprehensive income or loss $ (17 ) $ (23 ) $ 5 We have made the following estimates relating to our combined defined benefit pension plans: • the estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be less than $1 million for our combined defined benefit pension plans; and • the estimated prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans. Assumptions The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension December 31, 2017 2016 Projected benefit obligation: Discount rate 3.49 % 4.04 % Rate of compensation increase — — Net periodic benefit costs: Discount rate 4.04 % 4.26 % Expected long-term rate of return on plan assets 5.28 % 5.27 % Rate of compensation increase (average) — — Discount Rate Methodology The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2017 and an equivalent weighted average discount rate was derived that resulted in the same liability. Investment Strategy The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. Allocation of Plan Assets The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. At December 31, 2017 , the actual asset allocation for the primary asset classes was 85% in fixed income securities, 14% in equity securities, and 1% in cash and cash equivalents. The 2018 target asset allocation for the primary asset classes is 84% in fixed income securities and 16% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 5.8% for the CommoLoCo Retirement Plan for 2017 . The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the IRC. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2017 are as follows: (dollars in millions) Pension 2018 $ 15 2019 15 2020 15 2021 16 2022 16 2023-2027 85 FAIR VALUE MEASUREMENTS — PLAN ASSETS The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2017 Assets: Cash and cash equivalents $ 2 $ — $ — $ 2 Equity securities: U.S. (a) — 23 — 23 International (b) — 24 — 24 Fixed income securities: U.S. investment grade (c) — 281 — 281 U.S. high yield (d) — 11 — 11 Total $ 2 $ 339 $ — $ 341 December 31, 2016 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 17 — 17 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 310 — 310 U.S. high yield (d) — 9 — 9 Total $ 3 $ 351 $ — $ 354 (a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation OMNIBUS INCENTIVE PLAN In 2013, OMH adopted the 2013 Omnibus Incentive Plan, which was amended and restated effective as of May 25, 2016, under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. The amendment and restatement of the Omnibus Plan (i) extended the term of the Omnibus Plan from October 2023 to May 2026 and (ii) limited the number of cash and equity-based awards under the Omnibus Plan valued at more than $500,000 to non-employee directors during the calendar year. As of December 31, 2017 , 13,199,096 shares of common stock were reserved for issuance under the Omnibus Plan, including 1,411,236 shares subject to outstanding equity awards. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, RSUs and RSAs, stock appreciation rights, and other stock-based awards and cash awards. Service-based Awards In connection with the initial public offering on October 16, 2013 and subsequent to the offering, we have granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years or less and provide the holders the right to vote and to earn dividends during the vesting period. The fair value for restricted units and awards is generally the closing market price of OMH’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2017 , 2016 , and 2015 was $27.85 , $26.14 , and $47.44 , respectively. The total fair value of service-based awards that vested during 2017 , 2016 , and 2015 was $18 million , $10 million , and $7 million , respectively. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 1,382,920 $ 35.86 Granted 407,184 27.85 Vested (575,322 ) 31.86 Forfeited (73,172 ) 38.10 Unvested at December 31, 2017 1,141,610 34.87 1.91 Performance-based Awards During 2017 , 2016 and 2015 , OMH awarded PRSUs that may be earned based on the financial performance of OMH. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2017 . These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2017 , whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2017, 2018, and 2019; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the filing date of this Annual Report on Form 10-K that occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award. Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and canceled, and all expense recognized to that date is reversed. Prior to the OneMain Acquisition, none of the performance targets related to certain PRSUs issued in 2014 were deemed probable of occurring. Subsequent to the OneMain Acquisition, the targets were re-evaluated and the 100% performance targets were deemed probable of occurring. Accordingly in 2015, we recorded a cumulative catch-up expense of $6 million , which is included in acquisition-related transaction and integration expenses. During the fourth quarter of 2016, the Compensation Committee determined that the PRSU performance targets were 100% achieved. Accordingly, a portion of the PRSU awards vested immediately, with the remaining shares subject to vesting upon meeting stated service requirements. The weighted average grant date fair value of performance-based awards issued in 2017 and 2015 was $24.98 and $34.45 , respectively. No performance shares were granted during 2016. The total fair value of performance-based awards that vested during 2017 and 2016 was $2 million and $4 million , respectively. No performance-based awards vested in 2015 . The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 407,948 $ 25.94 Granted 90,072 24.98 Vested (92,000 ) 24.78 Forfeited (136,394 ) 25.70 Unvested at December 31, 2017 269,626 26.14 3.78 Total share-based compensation expense, net of forfeitures, for all stock-based awards totaled $17 million , $22 million , and $15 million , respectively, during 2017 , 2016 , and 2015 . The total income tax benefit recognized for stock-based compensation was $6 million in 2017 , $8 million in 2016 , and $6 million in 2015 . As of December 31, 2017 , there was total unrecognized compensation expense of $23 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 1.9 years. Incentive Units In the fourth quarter of 2015, certain executives of the Company surrendered a portion of their incentive units in the Initial Stockholder and certain additional executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. These incentive units provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of our common stock by the Initial Stockholder in 2015, certain of the specified thresholds were satisfied. In accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in 2015 related to the incentive units with a capital contribution offset such that the impact to overall shareholders’ equity was neutral. No expense was recognized for these awards during 2017 or 2016. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments included: • Consumer and Insurance — We originate and service personal loans and offer credit insurance (life insurance, disability insurance, involuntary unemployment insurance, and collateral protection insurance) and non-credit insurance through our branch network and our centralized operations. We also offer auto membership plans of an unaffiliated company. Our branch network conducts business in 44 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is located near an existing branch, our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch, our centralized operations originate the loan. • Acquisitions and Servicing — We service the SpringCastle Portfolio. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. Unless we are terminated, we will continue to provide the servicing for these loans pursuant to a servicing agreement, which we service as unsecured loans because the liens are subordinated to superior ranking security interests. See Note 2 for information regarding the SpringCastle Interest Sale and the acquisition and disposition of the SpringCastle Portfolio. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i) our liquidating real estate loan portfolio as discussed below;(ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. The accounting policies of the segments are the same as those disclosed in Note 3 , except as described below. Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves, and acquisition costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: • Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and • Consumer and Insurance - receives remainder of unallocated average debt. The net effect of the change in debt allocation and asset base methodologies for 2015, had it been in place as of the beginning of the year, would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance. Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt. Asset base represented the following: l Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other * Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2017 Interest income $ 3,305 $ — $ 23 $ — $ (132 ) $ 3,196 Interest expense 765 — 21 — 30 816 Provision for finance receivable losses 963 — 7 — (15 ) 955 Net interest income (loss) after provision for finance receivable losses 1,577 — (5 ) — (147 ) 1,425 Other revenues 547 42 3 — (32 ) 560 Acquisition-related transaction and integration expenses 66 — 6 — (3 ) 69 Other expenses 1,382 41 33 — 29 1,485 Income (loss) before income tax expense (benefit) $ 676 $ 1 $ (41 ) $ — $ (205 ) $ 431 Assets $ 16,955 $ 4 $ 289 $ — $ 2,185 $ 19,433 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other * Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 3,328 $ 102 $ 51 $ — $ (371 ) $ 3,110 Interest expense 738 20 43 — 55 856 Provision for finance receivable losses 911 14 6 — 1 932 Net interest income (loss) after provision for finance receivable losses 1,679 68 2 — (427 ) 1,322 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues 612 49 (38 ) (11 ) (6 ) 606 Acquisition-related transaction and integration expenses 100 1 27 — (20 ) 108 Other expenses 1,503 58 27 (11 ) 54 1,631 Income (loss) before income taxes expense (benefit) 688 225 (90 ) — (467 ) 356 Income before income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 688 $ 197 $ (90 ) $ — $ (467 ) $ 328 Assets $ 15,539 $ 5 $ 596 $ — $ 1,983 $ 18,123 At or for the Year Ended December 31, 2015 Interest income $ 1,482 $ 463 $ 76 $ — $ (91 ) $ 1,930 Interest expense 242 87 268 (5 ) 123 715 Provision for finance receivable losses 351 68 (1 ) — 298 716 Net interest income (loss) after provision for finance receivable losses 889 308 (191 ) 5 (512 ) 499 Other revenues 276 58 3 (57 ) (18 ) 262 Acquisition-related transaction and integration expenses 16 1 48 — (3 ) 62 Other expenses 804 111 48 (52 ) 14 925 Income (loss) before income tax expense (benefit) 345 254 (284 ) — (541 ) (226 ) Income before income taxes attributable to non-controlling interests — 127 — — — 127 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 345 $ 127 $ (284 ) $ — $ (541 ) $ (353 ) Assets $ 16,023 $ 1,789 $ 1,073 $ — $ 2,305 $ 21,190 * Real Estate segment has been combined with “Other” for the prior period. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and cash equivalents $ 933 $ 54 $ — $ 987 $ 987 Investment securities 36 1,654 7 1,697 1,697 Net finance receivables, less allowance for finance receivable losses — — 15,656 15,656 14,260 Finance receivables held for sale — — 139 139 132 Restricted cash and restricted cash equivalents 498 — — 498 498 Other assets * — — 12 12 12 Liabilities Long-term debt $ — $ 15,625 $ — $ 15,625 $ 15,050 December 31, 2016 Assets Cash and cash equivalents $ 506 $ 73 $ — $ 579 $ 579 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,891 13,891 13,043 Finance receivables held for sale — — 159 159 153 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets * — 1 34 35 37 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 * Other assets includes commercial mortgage loans and escrow advance receivables at December 31, 2017 and commercial mortgage loans, escrow advance receivables, and receivables related to sales of real estate loans and related trust assets at December 31, 2016. FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2017 Assets Cash equivalents in mutual funds $ 709 $ — $ — $ 709 Cash equivalents in securities — 54 — 54 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 28 — 28 Obligations of states, municipalities, and political subdivisions — 135 — 135 Certificates of deposit and commercial paper — 60 — 60 Non-U.S. government and government sponsored entities — 125 — 125 Corporate debt — 946 2 948 RMBS — 99 — 99 CMBS — 87 — 87 CDO/ABS — 95 1 96 Total bonds — 1,575 3 1,578 Preferred stock 7 7 — 14 Common stock 23 — — 23 Other long-term investments — — 1 1 Total available-for-sale securities (b) 30 1,582 4 1,616 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CMBS — — — — CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 6 — — 6 Total other securities 6 72 2 80 Total investment securities 36 1,654 6 1,696 Restricted cash in mutual funds 484 — — 484 Total $ 1,229 $ 1,708 $ 6 $ 2,943 (a) Due to the insignificant activity within the Level 3 assets during 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 307 $ — $ — $ 307 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 891 $ 1,797 $ 8 $ 2,696 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. We had no transfers between Level 1 and Level 2 during 2017 and 2016 . FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2017 Assets Real estate owned $ — $ — $ 6 $ 6 $ 3 At or for the Year Ended December 31, 2016 Assets Finance receivables held for sale $ — $ — $ 159 $ 159 $ 4 Real estate owned — — 5 5 2 Total $ — $ — $ 164 $ 164 $ 6 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. We wrote down certain finance receivables held for sale reported in our Other segment to their fair value during the second quarter of 2016 and recorded the writedowns in other revenues. We wrote down certain real estate owned reported in our Other segment to their fair value less cost to sell during 2017 and 2016 and recorded the writedowns in other revenues. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. The inputs and quantitative data used in our Level 3 valuations for our real estate owned are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2017 December 31, 2016 Finance receivables held for sale Income approach Market value for similar type loan transactions to obtain a price point * * Real estate owned Market approach Third-party valuation * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS We use the following methods and assumptions to estimate fair value. Cash and Cash Equivalents The carrying amount of cash and cash equivalents, including cash and certain cash equivalents, approximates fair value. Mutual Funds The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds. Investment Securities We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value. Finance Receivables The fair value of net finance receivables, less allowance for finance receivable losses, for both non-impaired and purchased credit impaired finance receivables, is determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. Finance Receivables Held for Sale We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Restricted Cash and Restricted Cash Equivalents The carrying amount of restricted cash and restricted cash equivalents approximates fair value. Commercial Mortgage Loans Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses, which is based on independent third-party valuations. Real Estate Owned We initially base our estimate of the fair value on independent third-party valuations at the time we take title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset. Escrow Advance Receivable The carrying amount of escrow advance receivable approximates fair value. Receivables Related to Sales of Real Estate Loans and Related Trust Assets The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value. Long-term Debt We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt. We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2017 , we had no debt carried at fair value under the fair value option. We estimate the fair values associated with variable rate revolving lines of credit to be equal to par. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Redemption of OMFH 2019 Notes On December 8, 2017, the Company issued a notice of redemption to redeem all $700 million outstanding principal amount of OMFH’s 6.75% Senior Notes due 2019 at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018. In connection with the redemption, we will recognize $1.2 million of net loss on repurchases and repayments of debt for the three months ended March 31, 2018. Apollo-Värde Transaction On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with the Initial Stockholder and the Company to acquire from the Initial Stockholder 54,937,500 shares of OMH common stock (representing approximately 40.6% of the outstanding shares of our common stock as of such date), representing the entire holdings of our stock beneficially owned by Fortress. This transaction is expected to close in the second quarter of 2018 and is subject to regulatory approvals and other customary closing conditions. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Our selected quarterly financial data for 2017 was as follows: (dollars in millions, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 857 $ 808 $ 772 $ 759 Interest expense 204 207 203 202 Provision for finance receivable losses 231 243 236 245 Other revenues 146 152 121 141 Other expenses 381 389 388 396 Income before income taxes 187 121 66 57 Income taxes 148 52 24 24 Net income $ 39 $ 69 $ 42 $ 33 Earnings per share: Basic $ 0.29 $ 0.52 $ 0.31 $ 0.25 Diluted 0.29 0.51 0.30 0.25 Our selected quarterly financial data for 2016 was as follows: (dollars in millions, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 768 $ 770 $ 741 $ 831 Interest expense 201 215 214 226 Provision for finance receivable losses 258 263 214 197 Other revenues 147 158 165 303 Other expenses 427 417 436 459 Income before income taxes 29 33 42 252 Income taxes 2 8 16 87 Net income 27 25 26 165 Net income attributable to non-controlling interests — — — 28 Net income attributable to OneMain Holdings, Inc. $ 27 $ 25 $ 26 $ 137 Earnings per share: Basic $ 0.20 $ 0.19 $ 0.19 $ 1.02 Diluted 0.20 0.19 0.19 1.01 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | Schedule I — Condensed Financial Information of Registrant ONEMAIN HOLDINGS, INC. Condensed Balance Sheets (dollars in millions) December 31, 2017 2016 Assets Cash and cash equivalents $ 1 $ 1 Investment in subsidiaries 3,147 2,941 Note receivable from affiliate 150 142 Total assets $ 3,298 $ 3,084 Liabilities and Shareholders’ Equity Long-term debt $ 1 $ — Payable to affiliates 16 15 Deferred and accrued taxes 3 3 Total liabilities 20 18 Shareholders’ equity 3,278 3,066 Total liabilities and shareholders’ equity $ 3,298 $ 3,084 See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Condensed Statements of Operations and Comprehensive Income (Loss) (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income from affiliate $ 9 $ 8 $ 13 Investment income — — 1 Operating expenses 3 — — Income before provision for income taxes 6 8 14 Provision for income taxes 1 3 5 Equity in undistributed net income (loss) from subsidiaries 178 210 (229 ) Net income (loss) 183 215 (220 ) Other comprehensive income (loss), net of tax 17 27 (36 ) Comprehensive income (loss) $ 200 $ 242 $ (256 ) See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Condensed Statements of Cash Flows (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash provided by operating activities $ — $ — $ 23 Cash flows from investing activities Capital contributions to subsidiaries — — (1,100 ) Principal collections on note receivable from affiliate — — 96 Net cash used for investing activities — — (1,004 ) Cash flows from financing activities Proceeds from issuance of common stock, net of offering costs paid — — 976 Net cash provided by financing activities — — 976 Net change in cash and cash equivalents — — (5 ) Cash and cash equivalents at beginning of period 1 1 6 Cash and cash equivalents at end of period $ 1 $ 1 $ 1 Supplemental non-cash financing activities Increase in payable to affiliate for stock offering costs $ — $ — $ 2 See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Notes to Condensed Financial Statements 1. Organization and Purpose OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) is referred to in this schedule as “OMH.” OMH is a Delaware corporation. Springleaf Holdings, LLC, a subsidiary of AGF Holding Inc., was incorporated on August 5, 2013. In connection with its formation, Springleaf Holdings, LLC issued 100 common interests to AGF Holding Inc., its sole member. Springleaf Holdings, LLC was formed solely to acquire, through a series of restructuring transactions, all of the common stock of Springleaf Finance, Inc. (“SFI”), an Indiana corporation. Springleaf Holdings, LLC did not engage in any significant activities from the date of its formation on August 5, 2013 to October 9, 2013 other than those incidental to its formation, including the issuance of common interests in the amount of $1,000 on August 9, 2013. On November 15, 2015, OMH completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company for $4.5 billion in cash (the “OneMain Acquisition”). In connection with the OneMain Acquisition, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (previously defined above as “OMH”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. 2. Accounting Policies OMH records its investments in subsidiaries at cost plus the equity in undistributed net income (loss) from subsidiaries since the date of incorporation or, if purchased, the date of the acquisition. The condensed financial statements of the registrant should be read in conjunction with OMH’s consolidated financial statements. 3. Note Receivable from Affiliate Note receivable from affiliate reflects a master note with SFI. The interest rate on the unpaid principal balance is the lender’s cost of funds rate, which was 5.87% at December 31, 2017 . Interest income on the master note totaled $9 million , $8 million and $13 million in 2017 , 2016 , and 2015 , respectively. 4. Payable to Affiliates Payable to affiliates primarily reflects offering costs incurred in conjunction with the public offerings in 2013 and 2015 and tax liabilities that were paid by affiliates on behalf of OMH. No interest was charged for these transactions. 5. Subsidiary Debt Guarantee 5.625% SFC Notes On December 8, 2017, OMH entered into the SFC Fourth Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.625% SFC Notes. As of December 31, 2017 , $875 million aggregate principal amount of the 5.625% SFC Notes were outstanding. 6.125% SFC Notes On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding. 8.25% SFC Notes On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. 5.25% SFC Notes On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of December 31, 2017 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consist of the following: • 8.25% Senior Notes due 2023; • 7.75% Senior Notes due 2021; • 6.00% Senior Notes due 2020; and • the Junior Subordinated Debenture The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2017 , approximately $1.6 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH Notes On December 11, 2014, OMFH and certain of its subsidiaries entered into the OMFH Indenture, among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of the OMFH Notes. The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries, other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2017 , $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. On November 8, 2016, OMH entered into a second supplemental indenture to the OMFH Indenture (the “OMFH Second Supplemental Indenture”), pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company. On December 8, 2017 OMFH provided notice to note holders to redeem all $700 million outstanding principal amount of the 2019 OMFH Notes on January 8, 2018, at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. See Note 24 for more detail on this redemption. The OMH guarantees of OMFH’s long-term debt discussed above are subject to customary release provisions. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using GAAP . The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with a joint venture in which we owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 22, we have revised our prior period segment disclosures. |
Operating Segments | Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments include: • Consumer and Insurance; and • Acquisitions and Servicing. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the Springleaf United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: • Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and • Consumer and Insurance - receives remainder of unallocated average debt. The net effect of the change in debt allocation and asset base methodologies for 2015, had it been in place as of the beginning of the year, would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance. Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt. Asset base represented the following: l Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. |
Finance Receivables | Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Finance Receivable Revenue Recognition | Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when four contractual payments become past due for personal loans and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. |
Purchased Credit Impaired Finance Receivables | Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as TDR finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to update on a quarterly basis the amount of cash flows we expect to collect, which incorporates assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount, and such removal will not affect the yield used to recognize accretable yield of the pool. |
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize past due interest or forgive principal or interest. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by contractual delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we may require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. |
Finance Receivables Held for Sale | Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. |
Reserve for Sales Recourse Obligations | Reserve for Sales Recourse Obligations When we sell finance receivables, we may establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. |
Goodwill and Intangible Assets other than Goodwill | Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance . For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. |
Insurance Premiums | Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Policy and Claim Reserves | Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. |
Insurance Policy Acquisition Costs | Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. |
Investment Securities | Investment Securities We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. |
Impairments on Investment Securities | Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. |
Investment Revenue Recognition | Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues. |
Acquisition-related Transaction and Integration Expenses | Acquisition-related Transaction and Integration Expenses In connection with the OneMain Acquisition, we incur acquisition-related transaction and integration costs, including (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration. |
Variable Interest Entities | Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. |
Other Invested Assets | Other Invested Assets Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Long-term Debt | Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. |
Income Taxes | Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely than not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. The Tax Act was enacted on December 22, 2017 and we must reflect the changes associated with its provisions in 2017. The law is complex and has extensive implications for our federal and state current and deferred taxes and income tax expense. We recorded and reported the effects of the Tax Act in our financial statements in 2017. For further information, see Note 18 of the Notes to Consolidated Financial Statements included in this report. |
Benefit Plans | Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 23 . In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested restricted stock units and awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. |
Accounting Pronouncements Recently Adopted and To Be Adopted | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $180 million of minimum lease commitments from these operating leases (refer to Note 19). We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Significant Transactions (Table
Significant Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Transactions [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) As Adjustments * As Cash consideration $ 4,478 $ (23 ) (a) $ 4,455 Fair value of assets acquired: Cash and cash equivalents 958 — 958 Investment securities 1,294 — 1,294 Personal loans 8,801 (6 ) (b) 8,795 Intangibles 555 3 (c) 558 Other assets 247 (3 ) (d) 244 Fair value of liabilities assumed: Long-term debt (7,725 ) — (7,725 ) Unearned premium, insurance policy and claims reserves (936 ) — (936 ) Other liabilities (156 ) 1 (e) (155 ) Goodwill $ 1,440 $ 1,422 * During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available: (a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments. (b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period. (c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date. (d) Represents a decrease in valuation of acquired software asset. (e) Represents the settlement of a payable to Citigroup during the measurement period. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Gross receivables * $ 16,221 $ 127 $ 7 $ 16,355 Unearned finance charges and points and fees (1,725 ) — (1 ) (1,726 ) Accrued finance charges 210 1 — 211 Deferred origination costs 117 — — 117 Total $ 14,823 $ 128 $ 6 $ 14,957 December 31, 2016 Gross receivables * $ 15,405 $ 142 $ 12 $ 15,559 Unearned finance charges and points and fees (2,062 ) 1 (1 ) (2,062 ) Accrued finance charges 151 1 — 152 Deferred origination costs 83 — — 83 Total $ 13,577 $ 144 $ 11 $ 13,732 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. |
Schedule of largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: December 31, 2017 2016 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,302 9 % $ 1,196 9 % North Carolina 1,155 8 1,112 8 Pennsylvania 883 6 825 6 California 883 6 813 6 Ohio 726 5 660 5 Florida 678 5 579 4 Illinois 668 4 599 4 Virginia 641 4 623 5 Georgia 618 4 586 4 Indiana 608 4 539 4 Tennessee 520 3 465 3 Other 6,275 42 5,735 42 Total $ 14,957 100 % $ 13,732 100 % * December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 state concentrations. |
Summary of net finance receivables by type by days delinquent | The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Performing: Current $ 14,124 $ 98 $ 6 $ 14,228 30-59 days past due 204 8 — 212 60-89 days past due 157 3 — 160 Total performing 14,485 109 6 14,600 Nonperforming: 90-179 days past due 332 4 — 336 180 days or more past due 6 15 — 21 Total nonperforming 338 19 — 357 Total $ 14,823 $ 128 $ 6 $ 14,957 December 31, 2016 Performing: Current $ 12,920 $ 102 $ 11 $ 13,033 30-59 days past due 174 9 — 183 60-89 days past due 130 4 — 134 Total performing 13,224 115 11 13,350 Nonperforming: 90-179 days past due 349 8 — 357 180 days or more past due 4 21 — 25 Total nonperforming 353 29 — 382 Total $ 13,577 $ 144 $ 11 $ 13,732 |
Schedule of information regarding purchased credit impaired finance receivables | Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans FA Loans (a) Total December 31, 2017 Carrying amount, net of allowance $ 176 $ 57 $ 233 Outstanding balance (b) 243 94 337 Allowance for purchased credit impaired finance receivable losses 6 9 15 December 31, 2016 Carrying amount, net of allowance $ 324 $ 70 $ 394 Outstanding balance (b) 444 107 551 Allowance for purchased credit impaired finance receivable losses 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. |
Purchased credit impaired FA Loans held for sale | Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 |
Schedule of changes in accretable yield for purchased credit impaired finance receivables | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (a) (34 ) — (5 ) (39 ) Reclassifications from (to) nonaccretable difference (b) 22 — (2 ) 20 Balance at end of period $ 47 $ — $ 53 $ 100 Year Ended December 31, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (a) (69 ) (16 ) (7 ) (92 ) Other (c) (23 ) — — (23 ) Reclassifications from nonaccretable difference (b) — — 12 12 Transfers due to finance receivables sold — (359 ) (11 ) (370 ) Balance at end of period $ 59 $ — $ 60 $ 119 Year Ended December 31, 2015 Balance at beginning of period $ — $ 452 $ 54 $ 506 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (15 ) (77 ) (8 ) (100 ) Reclassifications from nonaccretable difference (b) — — 20 20 Balance at end of period $ 151 $ 375 $ 66 $ 592 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 (b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. |
Impaired Financing Receivables | Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2017 TDR gross finance receivables (b) $ 318 $ 139 $ 457 TDR net finance receivables 318 140 458 Allowance for TDR finance receivable losses 135 12 147 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 (a) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 (b) As defined earlier in this Note. |
TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 |
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2017 TDR average net receivables $ 231 $ — $ 140 $ 371 TDR finance charges recognized 33 — 9 42 Year Ended December 31, 2016 TDR average net receivables $ 95 $ — $ 175 $ 270 TDR finance charges recognized 12 — 11 23 Year Ended December 31, 2015 TDR average net receivables (c) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 (c) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables. |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 |
Schedule of information regarding new volume of the TDR finance receivables | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Real Estate Total Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 327 $ — $ 16 $ 343 Post-modification TDR net finance receivables: Rate reduction $ 251 $ — $ 16 $ 267 Other (c) 75 — — 75 Total post-modification TDR net finance receivables $ 326 $ — $ 16 $ 342 Number of TDR accounts 45,560 — 510 46,070 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 211 $ 1 $ 16 $ 228 Post-modification TDR net finance receivables: Rate reduction $ 194 $ 1 $ 16 $ 211 Other (c) 12 — 1 13 Total post-modification TDR net finance receivables $ 206 $ 1 $ 17 $ 224 Number of TDR accounts 29,435 157 364 29,956 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 48 $ 7 $ 21 $ 76 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (c) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,425 721 385 9,531 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 (c) “Other” modifications primarily include forgiveness of principal or interest. |
New volume of the TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 |
Schedule of Troubled Debt Restructurings, Subsequently Defaulted | Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming ( 90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Year Ended December 31, 2017 TDR net finance receivables (b) $ 89 $ — $ 4 $ 93 Number of TDR accounts 15,035 — 101 15,136 Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 24 $ — $ 3 $ 27 Number of TDR accounts 3,693 19 61 3,773 Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,655 147 46 1,848 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $ 1 million and, therefore, are not quantified in the combined table above. |
Schedule of Trouble Debt Restructurings, Subsequently Defaulted, Held for Sale | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 |
Allowance for Finance Receiva37
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2017 Balance at beginning of period $ 669 $ — $ 19 $ 1 $ 689 Provision for finance receivable losses 949 — 6 — 955 Charge-offs (1,048 ) — (5 ) (1 ) (1,054 ) Recoveries 103 — 3 1 107 Balance at end of period $ 673 $ — $ 23 $ 1 $ 697 Year Ended December 31, 2016 Balance at beginning of period $ 541 $ 4 $ 46 $ 1 $ 592 Provision for finance receivable losses 909 14 9 — 932 Charge-offs (846 ) (17 ) (11 ) (1 ) (875 ) Recoveries 65 3 5 1 74 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 669 $ — $ 19 $ 1 $ 689 Year Ended December 31, 2015 Balance at beginning of period $ 132 $ 3 $ 46 $ 1 $ 182 Provision for finance receivable losses 634 67 13 2 716 Charge-offs (261 ) (78 ) (18 ) (3 ) (360 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 541 $ 4 $ 46 $ 1 $ 592 (a) Other consists of: • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture; and • the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance receivable held for sale during 2016. (b) Other consists of the elimination of allowance for finance receivable losses due to the transfer of personal loans held for investment to finance receivable held for sale during 2015. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 532 $ 2 $ 1 $ 535 Purchased credit impaired finance receivables 6 9 — 15 TDR finance receivables 135 12 — 147 Total $ 673 $ 23 $ 1 $ 697 Finance receivables: Collectively evaluated for impairment $ 14,323 $ 57 $ 6 $ 14,386 Purchased credit impaired finance receivables 182 22 — 204 TDR finance receivables 318 49 — 367 Total $ 14,823 $ 128 $ 6 $ 14,957 Allowance for finance receivable losses as a percentage of finance receivables 4.53 % 18.66 % 9.91 % 4.66 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 571 $ — $ 1 $ 572 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 669 $ 19 $ 1 $ 689 Finance receivables: Collectively evaluated for impairment $ 13,072 $ 76 $ 11 $ 13,159 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,577 $ 144 $ 11 $ 13,732 Allowance for finance receivable losses as a percentage of finance receivables 4.93 % 13.31 % 4.42 % 5.01 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investment securities | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 28 $ — $ — $ 28 Obligations of states, municipalities, and political subdivisions 135 — — 135 Certificates of deposit and commercial paper 60 — — 60 Non-U.S. government and government sponsored entities 126 — (1 ) 125 Corporate debt 941 12 (5 ) 948 Mortgage-backed, asset-backed, and collateralized: RMBS 100 — (1 ) 99 CMBS 88 — (1 ) 87 CDO/ABS 96 — — 96 Total bonds 1,574 12 (8 ) 1,578 Preferred stock (a) 15 — (1 ) 14 Common stock (a) 21 2 — 23 Other long-term investments 1 — — 1 Total (b) $ 1,611 $ 14 $ (9 ) $ 1,616 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016 , which is classified as a restricted investment and carried at cost. |
Schedule of fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2017 Bonds: U.S. government and government sponsored entities $ 21 $ — $ 3 $ — $ 24 $ — Obligations of states, municipalities, and political subdivisions 65 — 20 — 85 — Non-U.S. government and government sponsored entities 89 (1 ) 13 — 102 (1 ) Corporate debt 387 (3 ) 93 (2 ) 480 (5 ) RMBS 40 — 25 (1 ) 65 (1 ) CMBS 40 — 38 (1 ) 78 (1 ) CDO/ABS 48 — 26 — 74 — Total bonds 690 (4 ) 218 (4 ) 908 (8 ) Preferred stock 3 — 7 (1 ) 10 (1 ) Common stock 3 — — — 3 — Other long-term investments 1 — — — 1 — Total $ 697 $ (4 ) $ 225 $ (5 ) $ 922 $ (9 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 224 $ 225 Due after 1 year through 5 years 530 531 Due after 5 years through 10 years 335 334 Due after 10 years 207 200 Mortgage-backed, asset-backed, and collateralized securities 282 284 Total $ 1,578 $ 1,574 |
Schedule of fair value of trading securities by type | The fair value of other securities by type was as follows: (dollars in millions) December 31, 2017 2016 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 68 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 74 93 Preferred stock 6 6 Total $ 80 $ 99 |
Available-for-sale securities | |
Investment securities | |
Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities | The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Proceeds from sales and redemptions $ 508 $ 518 $ 431 Realized gains $ 15 $ 16 $ 15 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 14 $ 15 $ 14 |
Trading securities | |
Investment securities | |
Schedule of net unrealized and realized gains (losses) on trading securities | The mark-to-market and net realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Mark-to-market gains (losses) on trading and other securities held at year end $ (1 ) $ 1 $ — Net realized gains (losses) on trading and other securities sold or redeemed during the year — 7 (3 ) Total $ (1 ) $ 8 $ (3 ) |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets -- Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 Balance at beginning of period $ 1,422 $ 1,440 Adjustments to purchase price allocation* — (18 ) Balance at end of period $ 1,422 $ 1,422 * See Note 2 for details regarding this transaction. |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2017 Customer relationships $ 223 $ (92 ) $ 131 Trade names 220 — 220 VOBA 141 (90 ) 51 Licenses 37 — 37 Other 13 (12 ) 1 Total $ 634 $ (194 ) $ 440 December 31, 2016 Customer relationships $ 223 $ (58 ) $ 165 Trade names 220 — 220 VOBA 141 (74 ) 67 Licenses 37 — 37 Other 13 (10 ) 3 Total $ 634 $ (142 ) $ 492 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2018 $ 42 2019 39 2020 38 2021 32 2022 3 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of components of other assets | Components of other assets were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets $ 146 $ 180 Fixed assets, net * 144 167 Prepaid expenses and deferred charges 109 97 Ceded insurance reserves 95 102 Other investments 29 52 Current tax receivable 15 43 Cost basis investments 11 11 Other 38 36 Total $ 587 $ 688 * Fixed assets were net of accumulated depreciation of $202 million at December 31, 2017 and $268 million at December 31, 2016 . |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of carrying value and fair value of long-term debt by type | Carrying value and fair value of long-term debt by type were as follows: December 31, 2017 December 31, 2016 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 14,878 $ 15,436 $ 13,787 $ 14,340 Junior subordinated debt 172 189 172 158 Total $ 15,050 $ 15,625 $ 13,959 $ 14,498 |
Schedule of weighted average interest rates on long-term debt by type | Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2017 2016 2015 2017 2016 Senior debt 5.73 % 5.60 % 6.56 % 5.56 % 5.80 % Junior subordinated debt 6.41 12.26 12.26 6.37 12.26 Total 5.74 5.67 6.65 5.57 5.88 |
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.94% 5.25% - 8.25% 3.11% 2018 — 700 — 700 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 1,175 350 1,525 Securitizations (b) 8,711 — — 8,711 Total principal maturities $ 8,711 $ 6,316 $ 350 $ 15,377 Total carrying amount $ 8,688 $ 6,190 $ 172 $ 15,050 Debt issuance costs (c) $ (24 ) $ (30 ) $ — $ (54 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $20 million at December 31, 2017 and are reported in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2017 2016 Assets Cash and cash equivalents $ 4 $ 3 Finance receivables: Personal loans 9,769 9,509 Allowance for finance receivable losses 465 501 Restricted cash and restricted cash equivalents 482 552 Other assets 20 14 Liabilities Long-term debt $ 8,688 $ 8,240 Other liabilities 15 16 As of December 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End Backed by Loans Acquired from Subsidiaries of Due and Payable (a) First Avenue Funding, LLC $ 250 $ — June 2018 SFC - auto loans (b) Seine River Funding, LLC 500 — December 2019 SFC - personal loans December 2022 OneMain Financial B6 Warehouse Trust 600 — February 2019 OMFH - personal loans February 2021 Rocky River Funding, LLC 250 — September 2019 OMFH - personal loans October 2020 OneMain Financial Funding VII, LLC 650 — October 2019 OMFH - personal loans November 2021 Thur River Funding, LLC 350 — June 2020 SFC - personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 OMFH - personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 SFC - personal loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 SFC - auto loans October 2021 OneMain Financial Auto Funding I, LLC 750 — October 2020 OMFH - auto loans November 2027 Total $ 5,050 $ — (a) The date following the revolving period that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full. (b) For First Avenue Funding, LLC, principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue Funding, LLC. During the 2017 period, we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above: Termination Date Midbrook 2013-VFN1 Trust 04/13/2017 OneMain Financial B5 Warehouse Trust 04/13/2017 Sumner Brook 2013-VFN1 Trust 06/29/2017 Whitford Brook 2014-VFN1 Trust 07/14/2017 OneMain Financial B3 Warehouse Trust 07/14/2017 Springleaf 2013-VFN1 Trust 09/28/2017 Second Avenue Funding LLC 09/29/2017 OneMain Financial B4 Warehouse Trust 11/08/2017 Our securitized borrowings at December 31, 2017 consisted of the following: (dollars in millions) Issue Amount * Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 1,163 3.47 % 3 years 02/26/2015 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/2015 05/2028 SLFT 2016-A (a) 532 500 3.10 % 2 years 12/14/2016 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/2017 07/2030 OMFIT 2014-2 1,185 320 4.16 % 2 years 07/30/2014 09/2024 OMFIT 2015-1 1,229 1,229 3.74 % 3 years 02/05/2015 03/2026 OMFIT 2015-2 1,250 750 3.40 % 2 years 05/21/2015 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/2015 11/2028 OMFIT 2016-1 (c) 500 459 4.01 % 3 years 02/10/2016 02/2029 OMFIT 2016-2 (d) 890 816 4.50 % 2 years 03/23/2016 03/2028 OMFIT 2016-3 (e) 350 317 4.33 % 5 years 06/07/2016 06/2031 OMFIT 2017-1 (f) 947 900 2.66 % 2 years 09/06/2017 09/2032 Total consumer securitizations 7,680 Auto Securitization: ODART 2016-1 (g) 754 188 2.91 % — 07/19/2016 Various ODART 2017-1 (h) 300 268 2.61 % 1 year 02/01/2017 Various ODART 2017-2 (i) 605 575 2.63 % 1 year 12/11/2017 Various Total auto securitizations 1,031 Total secured structured financings $ 8,711 * Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts. (a) SLFT 2016-A Securitization. We initially retained $32 million of the asset-backed notes. (b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (c) OMFIT 2016-1 Securitization. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes. (f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (g) ODART 2016-1 Securitization. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. (i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes. |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of components of insurance claims and policyholder liabilities | Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2017 2016 Finance receivable related: Payable to OMH: Unearned premium reserves $ 515 $ 508 Claim reserves 75 78 Subtotal (a) 590 586 Payable to third-party beneficiaries: Unearned premium reserves 99 98 Benefit reserves 103 105 Claim reserves 18 20 Subtotal (b) 220 223 Non-finance receivable related: Unearned premium reserves 81 86 Benefit reserves 375 388 Claim reserves 61 60 Subtotal (b) 517 534 Total $ 1,327 $ 1,343 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. |
Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 158 $ 177 $ 70 Less reinsurance recoverables (26 ) (26 ) (22 ) Net balance at beginning of period 132 151 48 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition — — 104 Additions for losses and loss adjustment expenses incurred to: Current year 188 203 83 Prior years * 5 (20 ) 5 Total 193 183 88 Reductions for losses and loss adjustment expenses paid related to: Current year (115 ) (124 ) (63 ) Prior years (78 ) (78 ) (26 ) Total (193 ) (202 ) (89 ) Foreign currency translation adjustment (1 ) — — Net balance at end of period 131 132 151 Plus reinsurance recoverables 23 26 26 Balance at end of period $ 154 $ 158 $ 177 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017 , primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies (ii) a redundancy in the prior years’ net reserves of $20 million at December 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed. |
Short-duration Insurance Contracts, Claims Development | Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: Years Ended December 31, At December 31, 2017 (dollars in millions) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2013 $ 140 $ 127 $ 125 $ 124 $ 124 $ — 50,295 2.7 % 2014 — 145 132 130 131 3 51,776 2.7 % 2015 — — 138 129 129 8 52,505 2.8 % 2016 — — — 138 135 20 51,558 2.8 % 2017 — — — — 136 59 39,329 2.2 % Total $ 655 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: Years Ended December 31, (dollars in millions) 2013 * 2014 * 2015 * 2016 * 2017 Credit Insurance Accident Year 2013 $ 68 $ 105 $ 115 $ 121 $ 124 2014 — 71 110 121 128 2015 — — 71 109 121 2016 — — — 75 115 2017 — — — — 77 Total $ 565 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 90 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2017 2016 * 2015 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 90 $ 96 $ 105 Other short-duration insurance lines 22 20 25 Total 112 116 130 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 20 22 22 Insurance lines other than short-duration 22 20 25 Total gross liability for unpaid claims and claim adjustment expense $ 154 $ 158 $ 177 * Unaudited. |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017 , were as follows: Years 1 2 3 4 5 Credit insurance 55.4 % 29.4 % 8.9 % 4.8 % 2.5 % |
Schedule of statutory net income for insurance companies by type of insurance | Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Property and casualty: Yosemite $ 19 $ 11 $ 15 Triton 31 14 3 Life and health: Merit $ 37 $ 20 $ (1 ) AHL 34 71 11 |
Schedule of statutory capital and surplus for insurance companies by type of insurance | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2017 2016 Property and casualty: Yosemite $ 42 $ 63 Triton 170 139 Life and health: Merit $ 79 $ 133 AHL 130 215 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of components of other liabilities | Components of other liabilities were as follows: (dollars in millions) December 31, 2017 2016 Accrued expenses and other liabilities $ 119 $ 98 Salary and benefit liabilities 79 69 Accrued interest on debt 58 61 Retirement plans 13 31 Insurance liabilities 12 14 Loan principal warranty reserve 8 13 Other 34 46 Total $ 323 $ 332 |
Capital Stock and Earnings (L45
Capital Stock and Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2017 were as follows: Preferred Stock * Common Stock Par value $ 0.01 $ 0.01 Shares authorized 300,000,000 2,000,000,000 * No shares of preferred stock were issued and outstanding at December 31, 2017 or 2016 . |
Schedule of changes in common shares issued and outstanding | Changes in shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period 134,867,868 134,494,172 114,832,895 Common shares issued 481,770 373,696 19,661,277 Balance at end of period 135,349,638 134,867,868 134,494,172 |
Schedule of shares issued and outstanding | The computation of earnings (loss) per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2017 2016 2015 Numerator (basic and diluted): Net income (loss) attributable to OneMain Holdings, Inc. $ 183 $ 215 $ (220 ) Denominator: Weighted average number of shares outstanding (basic) 135,249,314 134,718,588 127,910,680 Effect of dilutive securities * 429,677 417,272 — Weighted average number of shares outstanding (diluted) 135,678,991 135,135,860 127,910,680 Earnings (loss) per share: Basic $ 1.35 $ 1.60 $ (1.72 ) Diluted $ 1.35 $ 1.59 $ (1.72 ) * We have excluded the following shares in the diluted earnings (loss) per share calculation for 2017 , 2016 , and 2015 because these shares would be anti-dilutive, which could impact the earnings (loss) per share calculation in the future: • 2017 : 59,863 performance-based shares and 674,472 service-based shares; • 2016 : 508,340 performance-based shares and 778,121 service-based shares; and • 2015 : 591,606 performance-based shares and 489,653 service-based shares |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 14 9 4 27 Reclassification adjustments from accumulated other comprehensive loss (9 ) (1 ) — (10 ) Balance at end of period $ 4 $ 4 $ 3 $ 11 Year Ended December 31, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 23 15 3 41 Reclassification adjustments from accumulated other comprehensive loss (10 ) — (4 ) (14 ) Balance at end of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive loss (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) |
Schedule of reclassification adjustments from accumulated other comprehensive income (loss) | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 14 $ 15 $ 12 Income tax effect (5 ) (5 ) (4 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 9 10 8 Unrealized gains (losses) on retirement plan liabilities: Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, before taxes $ 2 $ — $ — Income tax effect (1 ) — — Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, net of taxes 1 — — Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 4 — Total $ 10 $ 14 $ 8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Components of income (loss) before income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Income (loss) before income tax expense (benefit) - U.S. operations $ 416 $ 338 $ (238 ) Income before income tax expense - foreign operations 15 18 12 Total $ 431 $ 356 $ (226 ) |
Schedule of components of benefit from income taxes | Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Current: Federal $ 208 $ 185 $ 68 Foreign 2 1 1 State 8 24 7 Total current 218 210 76 Deferred: Federal 18 (81 ) (178 ) Foreign * — 3 — State 12 (19 ) (31 ) Total deferred 30 (97 ) (209 ) Total $ 248 $ 113 $ (133 ) * Deferred foreign income taxes were less than $ 1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above. |
Schedule of reconciliations of statutory federal income tax rate to effective tax rate | Reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Impact of Tax Act 18.65 — — State income taxes, net of federal 2.86 1.05 7.06 Excess tax benefit on share-based compensation 0.41 (0.49 ) — Tax impact of United Kingdom subsidiary liquidation — (0.60 ) — Non-controlling interests — (2.77 ) 19.77 Nondeductible compensation — — (2.40 ) Other, net 0.55 (0.42 ) (0.41 ) Effective income tax rate 57.47 % 31.77 % 59.02 % |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 16 $ 15 $ 4 Increases in tax positions for current years 1 2 10 Increases in tax positions for prior years — — 4 Lapse in statute of limitations (2 ) (1 ) — Settlements with tax authorities — — (1 ) Decreases in tax positions for prior years — — (2 ) Balance at end of year $ 15 $ 16 $ 15 |
Schedule of components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 149 $ 246 State taxes, net of federal 66 56 Mark-to-market 53 51 Pension/employee benefits 10 29 Acquisition costs 6 9 Federal and foreign net operating losses and tax attributes 5 4 Insurance reserves 3 — Legal and warranty reserve 2 6 Other intangibles 2 1 Other 8 5 Total 304 407 Deferred tax liabilities: Debt fair value adjustment 46 90 Goodwill 41 37 Deferred loan fees 14 12 Discount - debt exchange 11 16 Fixed assets 3 6 Deferred insurance commissions 2 1 Impact of tax accounting method change — 38 Insurance reserves — 2 Total 117 202 Net deferred tax assets before valuation allowance 187 205 Valuation allowance (44 ) (29 ) Net deferred tax assets $ 143 $ 176 |
Lease Commitments, Rent Expen48
Lease Commitments, Rent Expense, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition | Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments 2018 $ 55 2019 44 2020 33 2021 22 2022 12 2023+ 14 Total $ 180 |
Schedule of activity in reserve for sales recourse obligations | The activity in our reserve for sales recourse obligations was as follows: (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 13 $ 15 $ 24 Recourse losses (1 ) — (2 ) Provision for recourse obligations, net of recoveries * (4 ) (2 ) (7 ) Balance at end of period $ 8 $ 13 $ 15 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of funded status of the defined benefit pension plans and other postretirement benefit plans | The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) Pension * At or for the Years Ended December 31, 2017 2016 2015 Projected benefit obligation, beginning of period $ 385 $ 388 $ 409 Interest cost 13 16 15 Actuarial loss (gain) 17 (6 ) (24 ) Benefits paid: Plan assets (14 ) (13 ) (12 ) Settlement (47 ) — — Projected benefit obligation, end of period 354 385 388 Fair value of plan assets, beginning of period 354 333 359 Actual return on plan assets, net of expenses 47 33 (15 ) Company contributions 1 1 1 Benefits paid: Plan assets (14 ) (13 ) (12 ) Settlement (47 ) — — Fair value of plan assets, end of period 341 354 333 Funded status, end of period $ (13 ) $ (31 ) $ (55 ) Other liabilities recognized in the consolidated balance sheet $ (13 ) $ (31 ) $ (55 ) Pretax net gain (loss) recognized in accumulated other comprehensive income or loss $ 4 $ (7 ) $ (29 ) * Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2017 , 2016 , and 2015 . |
Schedule of defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets | Defined benefit pension plan obligations in which the PBO was in excess of the related plan assets and the ABO was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2017 2016 Projected benefit obligation $ 354 $ 385 Accumulated benefit obligation 354 385 Fair value of plan assets 341 354 |
Schedule of components of net periodic benefit cost | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Pension Years Ended December 31, 2017 2016 2015 Components of net periodic benefit cost: Interest cost $ 13 $ 16 $ 15 Expected return on assets (18 ) (17 ) (19 ) Settlement gain (2 ) — — Net periodic benefit cost (7 ) (1 ) (4 ) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (12 ) (22 ) 9 Amortization of net actuarial gain (loss) 2 — — Total recognized in other comprehensive income or loss (10 ) (22 ) 9 Total recognized in net periodic benefit cost and other comprehensive income or loss $ (17 ) $ (23 ) $ 5 |
Summary of weighted average assumptions used to determine projected benefit obligations and net periodic benefit costs | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension December 31, 2017 2016 Projected benefit obligation: Discount rate 3.49 % 4.04 % Rate of compensation increase — — Net periodic benefit costs: Discount rate 4.04 % 4.26 % Expected long-term rate of return on plan assets 5.28 % 5.27 % Rate of compensation increase (average) — — |
Schedule of expected future benefit payments, net of participants' contributions, of defined benefit pension plans and other postretirement benefit plans | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2017 are as follows: (dollars in millions) Pension 2018 $ 15 2019 15 2020 15 2021 16 2022 16 2023-2027 85 |
Schedule of plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs utilized to determine fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2017 Assets: Cash and cash equivalents $ 2 $ — $ — $ 2 Equity securities: U.S. (a) — 23 — 23 International (b) — 24 — 24 Fixed income securities: U.S. investment grade (c) — 281 — 281 U.S. high yield (d) — 11 — 11 Total $ 2 $ 339 $ — $ 341 December 31, 2016 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 17 — 17 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 310 — 310 U.S. high yield (d) — 9 — 9 Total $ 3 $ 351 $ — $ 354 (a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock activity | The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 1,382,920 $ 35.86 Granted 407,184 27.85 Vested (575,322 ) 31.86 Forfeited (73,172 ) 38.10 Unvested at December 31, 2017 1,141,610 34.87 1.91 |
Summary of performance activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 407,948 $ 25.94 Granted 90,072 24.98 Vested (92,000 ) 24.78 Forfeited (136,394 ) 25.70 Unvested at December 31, 2017 269,626 26.14 3.78 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other * Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2017 Interest income $ 3,305 $ — $ 23 $ — $ (132 ) $ 3,196 Interest expense 765 — 21 — 30 816 Provision for finance receivable losses 963 — 7 — (15 ) 955 Net interest income (loss) after provision for finance receivable losses 1,577 — (5 ) — (147 ) 1,425 Other revenues 547 42 3 — (32 ) 560 Acquisition-related transaction and integration expenses 66 — 6 — (3 ) 69 Other expenses 1,382 41 33 — 29 1,485 Income (loss) before income tax expense (benefit) $ 676 $ 1 $ (41 ) $ — $ (205 ) $ 431 Assets $ 16,955 $ 4 $ 289 $ — $ 2,185 $ 19,433 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other * Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 3,328 $ 102 $ 51 $ — $ (371 ) $ 3,110 Interest expense 738 20 43 — 55 856 Provision for finance receivable losses 911 14 6 — 1 932 Net interest income (loss) after provision for finance receivable losses 1,679 68 2 — (427 ) 1,322 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues 612 49 (38 ) (11 ) (6 ) 606 Acquisition-related transaction and integration expenses 100 1 27 — (20 ) 108 Other expenses 1,503 58 27 (11 ) 54 1,631 Income (loss) before income taxes expense (benefit) 688 225 (90 ) — (467 ) 356 Income before income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 688 $ 197 $ (90 ) $ — $ (467 ) $ 328 Assets $ 15,539 $ 5 $ 596 $ — $ 1,983 $ 18,123 At or for the Year Ended December 31, 2015 Interest income $ 1,482 $ 463 $ 76 $ — $ (91 ) $ 1,930 Interest expense 242 87 268 (5 ) 123 715 Provision for finance receivable losses 351 68 (1 ) — 298 716 Net interest income (loss) after provision for finance receivable losses 889 308 (191 ) 5 (512 ) 499 Other revenues 276 58 3 (57 ) (18 ) 262 Acquisition-related transaction and integration expenses 16 1 48 — (3 ) 62 Other expenses 804 111 48 (52 ) 14 925 Income (loss) before income tax expense (benefit) 345 254 (284 ) — (541 ) (226 ) Income before income taxes attributable to non-controlling interests — 127 — — — 127 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 345 $ 127 $ (284 ) $ — $ (541 ) $ (353 ) Assets $ 16,023 $ 1,789 $ 1,073 $ — $ 2,305 $ 21,190 * Real Estate segment has been combined with “Other” for the prior period. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: • Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and • Consumer and Insurance - receives remainder of unallocated average debt. The net effect of the change in debt allocation and asset base methodologies for 2015, had it been in place as of the beginning of the year, would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance. Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt. Asset base represented the following: l Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and cash equivalents $ 933 $ 54 $ — $ 987 $ 987 Investment securities 36 1,654 7 1,697 1,697 Net finance receivables, less allowance for finance receivable losses — — 15,656 15,656 14,260 Finance receivables held for sale — — 139 139 132 Restricted cash and restricted cash equivalents 498 — — 498 498 Other assets * — — 12 12 12 Liabilities Long-term debt $ — $ 15,625 $ — $ 15,625 $ 15,050 December 31, 2016 Assets Cash and cash equivalents $ 506 $ 73 $ — $ 579 $ 579 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,891 13,891 13,043 Finance receivables held for sale — — 159 159 153 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets * — 1 34 35 37 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 * Other assets includes commercial mortgage loans and escrow advance receivables at December 31, 2017 and commercial mortgage loans, escrow advance receivables, and receivables related to sales of real estate loans and related trust assets at December 31, 2016. |
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2017 Assets Cash equivalents in mutual funds $ 709 $ — $ — $ 709 Cash equivalents in securities — 54 — 54 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 28 — 28 Obligations of states, municipalities, and political subdivisions — 135 — 135 Certificates of deposit and commercial paper — 60 — 60 Non-U.S. government and government sponsored entities — 125 — 125 Corporate debt — 946 2 948 RMBS — 99 — 99 CMBS — 87 — 87 CDO/ABS — 95 1 96 Total bonds — 1,575 3 1,578 Preferred stock 7 7 — 14 Common stock 23 — — 23 Other long-term investments — — 1 1 Total available-for-sale securities (b) 30 1,582 4 1,616 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CMBS — — — — CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 6 — — 6 Total other securities 6 72 2 80 Total investment securities 36 1,654 6 1,696 Restricted cash in mutual funds 484 — — 484 Total $ 1,229 $ 1,708 $ 6 $ 2,943 (a) Due to the insignificant activity within the Level 3 assets during 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 307 $ — $ — $ 307 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 891 $ 1,797 $ 8 $ 2,696 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. |
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2017 Assets Real estate owned $ — $ — $ 6 $ 6 $ 3 At or for the Year Ended December 31, 2016 Assets Finance receivables held for sale $ — $ — $ 159 $ 159 $ 4 Real estate owned — — 5 5 2 Total $ — $ — $ 164 $ 164 $ 6 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. |
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2017 December 31, 2016 Finance receivables held for sale Income approach Market value for similar type loan transactions to obtain a price point * * Real estate owned Market approach Third-party valuation * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable. |
Selected Quarterly Financial 53
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | Our selected quarterly financial data for 2017 was as follows: (dollars in millions, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 857 $ 808 $ 772 $ 759 Interest expense 204 207 203 202 Provision for finance receivable losses 231 243 236 245 Other revenues 146 152 121 141 Other expenses 381 389 388 396 Income before income taxes 187 121 66 57 Income taxes 148 52 24 24 Net income $ 39 $ 69 $ 42 $ 33 Earnings per share: Basic $ 0.29 $ 0.52 $ 0.31 $ 0.25 Diluted 0.29 0.51 0.30 0.25 Our selected quarterly financial data for 2016 was as follows: (dollars in millions, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 768 $ 770 $ 741 $ 831 Interest expense 201 215 214 226 Provision for finance receivable losses 258 263 214 197 Other revenues 147 158 165 303 Other expenses 427 417 436 459 Income before income taxes 29 33 42 252 Income taxes 2 8 16 87 Net income 27 25 26 165 Net income attributable to non-controlling interests — — — 28 Net income attributable to OneMain Holdings, Inc. $ 27 $ 25 $ 26 $ 137 Earnings per share: Basic $ 0.20 $ 0.19 $ 0.19 $ 1.02 Diluted 0.20 0.19 0.19 1.01 |
Nature of Operations (Details)
Nature of Operations (Details) | Dec. 31, 2017 | Mar. 31, 2016 |
Springleaf Financial Holdings, LLC | ||
Related Party Transaction [Line Items] | ||
Percent of common stock held by related party | 44.00% | 58.00% |
Significant Transactions -- On
Significant Transactions -- OneMain Acquisition Narrative (Details) $ in Millions | Dec. 31, 2016USD ($) | Nov. 15, 2015USD ($) | Nov. 13, 2015branchstate | Oct. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 0 | $ 0 | $ 3,520 | |||||
OneMain | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 4,455 | $ 4,500 | ||||||
Personal loans | $ 8,795 | $ 8,795 | ||||||
Acquired finance receivables, not credit impaired | 8,100 | |||||||
Acquired finance receivables, gross contractual amount, not credit impaired | 11,600 | |||||||
Acquired finance receivables, estimated uncollectible, not credit impaired | 2,200 | |||||||
Acquisition related costs | $ 69 | $ 239 | ||||||
Number of branches to be divested | branch | 127 | |||||||
Number of states where branches will be divested | state | 11 | |||||||
As Reported | OneMain | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 4,478 | |||||||
Personal loans | $ 8,800 | $ 8,801 |
Significant Transactions - Purc
Significant Transactions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Nov. 15, 2015 | Oct. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 0 | $ 0 | $ 3,520 | |||
Fair value of liabilities assumed: | ||||||
Goodwill | $ 1,422 | $ 1,422 | 1,422 | |||
OneMain | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | 4,455 | $ 4,500 | ||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | 958 | 958 | ||||
Investment securities | 1,294 | 1,294 | ||||
Personal loans | 8,795 | 8,795 | ||||
Intangibles | 558 | 558 | ||||
Other assets | 244 | 244 | ||||
Fair value of liabilities assumed: | ||||||
Long-term debt | (7,725) | (7,725) | ||||
Unearned premium, insurance policy and claims reserves | (936) | (936) | ||||
Other liabilities | (155) | (155) | ||||
Goodwill | $ 1,422 | 1,422 | ||||
Adjustments | ||||||
Cash consideration | (23) | |||||
Personal loans | (6) | |||||
Intangibles | 3 | |||||
Other assets | (3) | |||||
Other liabilities | 1 | |||||
Discount on purchased credit impaired finance receivables, adjustment | 64 | |||||
Premium on purchase finance receivables, adjustment | $ 58 | |||||
As Reported | OneMain | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 4,478 | |||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | 958 | |||||
Investment securities | 1,294 | |||||
Personal loans | $ 8,800 | 8,801 | ||||
Intangibles | 555 | |||||
Other assets | 247 | |||||
Fair value of liabilities assumed: | ||||||
Long-term debt | (7,725) | |||||
Unearned premium, insurance policy and claims reserves | (936) | |||||
Other liabilities | (156) | |||||
Goodwill | $ 1,440 |
Significant Transactions -- Len
Significant Transactions -- Lendmark Sale (Details) $ in Millions | Nov. 13, 2015 | Nov. 12, 2015USD ($)branch | May 13, 2016extension | May 02, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Number of extensions | extension | 2 | |||||
Sale of Branches to Lendmark | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches divested | branch | 127 | |||||
Consideration, percent of aggregate unpaid loan balance | 103.00% | |||||
Number of days to close | 120 days | |||||
Aggregate purchase price | $ 624 | |||||
Sale of Branches to Lendmark | Personal Loans | ||||||
Business Acquisition [Line Items] | ||||||
Loans receivable held for sale | $ 608 | |||||
Finance receivable, unpaid principal balance, to be sold | $ 600 | |||||
Sale of Branches to Lendmark | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price threshold for limitations on sale | $ 695 |
Significant Transactions -- Spr
Significant Transactions -- SpringCastle Interests Sale (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Net gain on sale of SpringCastle interests | $ 167 | $ 0 | $ 167 | $ 0 | |
Springleaf Financial Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Percent of common stock held by related party | 58.00% | 58.00% | 44.00% | ||
SpringCastle Interests Sale | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 47.00% | 47.00% | |||
Aggregate purchase price | $ 112 | $ 112 | |||
Cash paid for acquisition | 101 | 101 | |||
Escrow advance receivable | $ 11 | $ 11 | |||
Maximum number of years, the amount must be left in the escrow account | 5 years | ||||
Net gain on sale of SpringCastle interests | $ 167 | ||||
SpringCastle Interests Sale | NRZ | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 30.00% | 30.00% | |||
SpringCastle Interests Sale | Blackstone Buyers | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 23.00% | 23.00% |
Significant Transactions -- Rea
Significant Transactions -- Real Estate Loan Sale (Details) - Real Estate Sale - USD ($) $ in Millions | Dec. 19, 2016 | Aug. 03, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Aggregate purchase price | $ 58 | $ 246 |
Gain (loss) on sale | $ 1 | $ 4 |
Significant Transactions -- Iss
Significant Transactions -- Issuances and Sales (Details) - USD ($) | Dec. 18, 2017 | Dec. 13, 2017 | Dec. 07, 2017 | Nov. 07, 2017 | Dec. 31, 2017 | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Dec. 31, 2016 | Apr. 11, 2016 |
Debt Instrument [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | ||||||||
Senior note | Senior Notes 6.125% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rates (as a percent) | 6.125% | 6.125% | ||||||||
Issue Amount | $ 500,000,000 | $ 500,000,000 | ||||||||
Senior note | Senior Notes 5.625% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rates (as a percent) | 5.625% | |||||||||
Issue Amount | $ 875,000,000 | |||||||||
Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | Guaranty Agreements | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rates (as a percent) | 8.25% | |||||||||
Issue Amount | $ 1,000,000,000 | |||||||||
Public Stock Offering Shares From Existing Shareholders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 7,500,000 | 10,000,000 | ||||||||
Percentage of ownership after transaction | 44.00% | |||||||||
Over-Allotment Option | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 1,500,000 | |||||||||
Sale of stock, purchase additional shares, term | 30 days | |||||||||
Sale of stock, number of shares issued in transaction (in shares) | 1,000,000 | |||||||||
Proceeds from issuance of common stock, net of offering costs | $ 0 | $ 0 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies Basis of Presentation (Details) | Mar. 31, 2016 |
Corporate Joint Venture | |
Related Party Transaction [Line Items] | |
Ownership percentage | 47.00% |
Summary of Significant Accoun62
Summary of Significant Accounting Policies Business Segments (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of business segments | 2 |
Summary of Significant Accoun63
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2017defermentpayment | Dec. 31, 2016payment | |
Purchased Credit Impaired Finance Receivables | ||
Financing receivable credit impairment minimum past due period | 60 days | |
Allowance for Finance Receivable Losses | ||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | |
Period in which most repurchase requests for financial receivable sold occur | 5 years | |
Personal Loans | ||
Finance Receivable Revenue Recognition | ||
Finance receivable revenue recognition installment of contractual payment past due after which finance charges accruing stopped | 4 | |
Allowance for Finance Receivable Losses | ||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 90 days | |
Financing receivable, number of deferments in rolling period | 2 | |
Retail Sales Finance Revolving Retail | ||
Finance Receivable Revenue Recognition | ||
Finance receivable revenue recognition installment of contractual payment past due after which finance charges accruing stopped | 6 | |
Real Estate Loans Branch | Maximum | ||
Finance Receivable Revenue Recognition | ||
Finance receivable revenue recognition installment of contractual payment past due after which finance charges accruing stopped | 4 | |
Real Estate Loans Branch | Minimum | ||
Finance Receivable Revenue Recognition | ||
Finance receivable revenue recognition installment of contractual payment past due after which finance charges accruing stopped | 3 | |
Retail Sales Finance | ||
Allowance for Finance Receivable Losses | ||
Financing receivable, number of deferments in rolling period | deferment | 2 | |
Financing receivable, rolling period | 12 months | |
Real Estate Loans Central | ||
Allowance for Finance Receivable Losses | ||
Financing receivable, number of deferments in rolling period | deferment | 1 |
Summary of Significant Accoun64
Summary of Significant Accounting Policies Prior Period Revisions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Provision for finance receivable losses | $ 231 | $ 243 | $ 236 | $ 245 | $ 258 | $ 263 | $ 214 | $ 197 | $ 955 | $ 932 | $ 716 | ||
Income tax expense (benefit) | $ (148) | $ (52) | $ (24) | $ (24) | $ (2) | $ (8) | $ (16) | $ (87) | $ (248) | $ (113) | $ 133 | ||
Basic (in dollars per share) | $ 0.29 | $ 0.52 | $ 0.31 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.02 | $ 1.35 | $ 1.60 | $ (1.72) | ||
Diluted (in dollars per share) | $ 0.29 | $ 0.51 | $ 0.30 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.01 | $ 1.35 | $ 1.59 | $ (1.72) | ||
Charge-off of Certain Bankrupt Accounts and Error in Calculation of Allowance of TDR Finance Receivables | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Basic (in dollars per share) | $ 0.03 | $ 0.03 | |||||||||||
Diluted (in dollars per share) | $ 0.03 | $ 0.03 | |||||||||||
Restatement Adjustment | Charge-off of Certain Bankrupt Accounts and Error in Calculation of Allowance of TDR Finance Receivables | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Provision for finance receivable losses | $ 8 | ||||||||||||
Income tax expense (benefit) | $ 3 |
Recent Accounting Pronounceme65
Recent Accounting Pronouncements - (Details) $ in Millions | Dec. 31, 2017USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Operating leases, future minimum payments due | $ 180 |
Finance Receivables (Details)
Finance Receivables (Details) loan in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Personal loans | $ | $ 14,823 | $ 13,577 |
Personal Loans | Consumer Household Goods or Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of personal loans | loan | 2.4 | 2.2 |
Personal Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 3 years | |
Personal Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 6 years | |
Real Estate Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 360 months | |
Retail Sales Finance | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 60 months |
Finance Receivables - Component
Finance Receivables - Components of Net Finance Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 16,355 | $ 15,559 |
Unearned finance charges and points and fees | (1,726) | (2,062) |
Accrued finance charges | 211 | 152 |
Deferred origination costs | 117 | 83 |
Net finance receivables | 14,957 | 13,732 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 16,221 | 15,405 |
Unearned finance charges and points and fees | (1,725) | (2,062) |
Accrued finance charges | 210 | 151 |
Deferred origination costs | 117 | 83 |
Net finance receivables | 14,823 | 13,577 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 127 | 142 |
Unearned finance charges and points and fees | 1 | |
Accrued finance charges | 1 | 1 |
Deferred origination costs | 0 | 0 |
Net finance receivables | 128 | 144 |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 7 | 12 |
Unearned finance charges and points and fees | (1) | (1) |
Accrued finance charges | 0 | 0 |
Deferred origination costs | 0 | 0 |
Net finance receivables | $ 6 | $ 11 |
Finance Receivables - Geographi
Finance Receivables - Geographical Diversification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 14,957 | $ 13,732 |
Finance receivable | Geographic concentration | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 14,957 | $ 13,732 |
Percent | 100.00% | 100.00% |
Finance receivable | Geographic concentration | Texas | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 1,302 | $ 1,196 |
Percent | 9.00% | 9.00% |
Finance receivable | Geographic concentration | North Carolina | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 1,155 | $ 1,112 |
Percent | 8.00% | 8.00% |
Finance receivable | Geographic concentration | Pennsylvania | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 883 | $ 825 |
Percent | 6.00% | 6.00% |
Finance receivable | Geographic concentration | California | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 883 | $ 813 |
Percent | 6.00% | 6.00% |
Finance receivable | Geographic concentration | Ohio | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 726 | $ 660 |
Percent | 5.00% | 5.00% |
Finance receivable | Geographic concentration | Florida | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 678 | $ 579 |
Percent | 5.00% | 4.00% |
Finance receivable | Geographic concentration | Illinois | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 668 | $ 599 |
Percent | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Virginia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 641 | $ 623 |
Percent | 4.00% | 5.00% |
Finance receivable | Geographic concentration | Georgia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 618 | $ 586 |
Percent | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Indiana | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 608 | $ 539 |
Percent | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Tennessee | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 520 | $ 465 |
Percent | 3.00% | 3.00% |
Finance receivable | Geographic concentration | Other | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 6,275 | $ 5,735 |
Percent | 42.00% | 42.00% |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality Indicators (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 180 days | |
Unlikely to be Collected Financing Receivable | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 60 days | |
Nonperforming Financial Instruments | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 90 days | 90 days |
Revolving Conduit Facilities | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 180 days | |
Personal Loans | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 90 days |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type and by Days Delinquent (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Delinquency by finance receivables type and by class | ||
Net finance receivables | $ 14,957 | $ 13,732 |
Personal Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 14,823 | 13,577 |
Real Estate Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 128 | 144 |
Retail Sales Finance | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 6 | 11 |
Performing | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 14,600 | 13,350 |
Performing | Current | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 14,228 | 13,033 |
Performing | 30-59 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 212 | 183 |
Performing | 60-89 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 160 | 134 |
Performing | Personal Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 14,485 | 13,224 |
Performing | Personal Loans | Current | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 14,124 | 12,920 |
Performing | Personal Loans | 30-59 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 204 | 174 |
Performing | Personal Loans | 60-89 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 157 | 130 |
Performing | Retail Sales Finance | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 6 | 11 |
Performing | Retail Sales Finance | Current | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 6 | 11 |
Performing | Retail Sales Finance | 30-59 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 0 | 0 |
Performing | Retail Sales Finance | 60-89 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 0 | 0 |
Nonperforming | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 357 | 382 |
Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 336 | 357 |
Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 21 | 25 |
Nonperforming | Personal Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 338 | 353 |
Nonperforming | Personal Loans | 180 days or more past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 6 | 4 |
Nonperforming | Retail Sales Finance | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 0 | 0 |
Nonperforming | Retail Sales Finance | 180 days or more past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 0 | 0 |
Personal Loans | Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 332 | 349 |
Real Estate Loans | Real Estate Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 128 | 144 |
Real Estate Loans | Performing | Real Estate Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 109 | 115 |
Real Estate Loans | Performing | Real Estate Loans | Current | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 98 | 102 |
Real Estate Loans | Performing | Real Estate Loans | 30-59 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 8 | 9 |
Real Estate Loans | Performing | Real Estate Loans | 60-89 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 3 | 4 |
Real Estate Loans | Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 4 | 8 |
Real Estate Loans | Nonperforming | Real Estate Loans | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 19 | 29 |
Real Estate Loans | Nonperforming | Real Estate Loans | 180 days or more past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | 15 | 21 |
Retail Sales Finance | Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type and by class | ||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale | $ 132 | $ 153 |
Carrying amount, net of allowance | 233 | 394 |
Outstanding balance | 337 | 551 |
Allowance for purchased credit impaired finance receivable losses | 15 | 37 |
OneMain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 176 | 324 |
Outstanding balance | 243 | 444 |
Allowance for purchased credit impaired finance receivable losses | 6 | 29 |
FA Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 57 | 70 |
Outstanding balance | 94 | 107 |
Allowance for purchased credit impaired finance receivable losses | 9 | 8 |
Purchased credit impaired finance receivables held for sale, carrying amount | 44 | 54 |
Purchased credit impaired finance receivables held for sale, outstanding balance | $ 72 | $ 83 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield for Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | $ 119 | $ 592 | $ 506 |
Accretion | (39) | (92) | (100) |
Reclassification from nonaccretable difference | 20 | 12 | 20 |
Other | (23) | ||
Transfers due to finance receivables sold | (370) | ||
Additions from OneMain Acquisition | 166 | ||
Balance at end of period | 100 | 119 | 592 |
Accretion on purchased credit impaired finance receivables held for sale | 4 | 5 | 6 |
OM Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 59 | 151 | 0 |
Accretion | (34) | (69) | (15) |
Reclassification from nonaccretable difference | 22 | 0 | 0 |
Other | (23) | ||
Additions from OneMain Acquisition | 166 | ||
Balance at end of period | 47 | 59 | 151 |
SpringCastle Portfolio | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 0 | 375 | 452 |
Accretion | 0 | (16) | (77) |
Reclassification from nonaccretable difference | 0 | 0 | 0 |
Other | 0 | ||
Additions from OneMain Acquisition | 0 | ||
Balance at end of period | 0 | 0 | 375 |
FA Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 60 | 66 | 54 |
Accretion | (5) | (7) | (8) |
Reclassification from nonaccretable difference | (2) | 12 | 20 |
Other | 0 | ||
Additions from OneMain Acquisition | 0 | ||
Balance at end of period | $ 53 | 60 | $ 66 |
OM Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Transfers due to finance receivables sold | 0 | ||
SpringCastle Portfolio | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Transfers due to finance receivables sold | (359) | ||
FA Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Transfers due to finance receivables sold | $ (11) |
Finance Receivables - Trouble D
Finance Receivables - Trouble Debt Restructured Finance Receivables (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 457,000,000 | $ 284,000,000 |
TDR net finance receivables | 458,000,000 | 286,000,000 |
Allowance for TDR finance receivable losses | 147,000,000 | 80,000,000 |
Amount of commitments to lend additional funds on TDR finance receivables | 0 | |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 318,000,000 | 151,000,000 |
TDR net finance receivables | 318,000,000 | 152,000,000 |
Allowance for TDR finance receivable losses | 135,000,000 | 69,000,000 |
Real Estate Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 139,000,000 | 133,000,000 |
TDR net finance receivables | 140,000,000 | 134,000,000 |
Allowance for TDR finance receivable losses | 12,000,000 | 11,000,000 |
TDR gross finance receivables, held for sale | 90,000,000 | 89,000,000 |
TDR net finance receivables, held for sale | $ 91,000,000 | $ 90,000,000 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables Held for Investment and Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | $ 371 | $ 270 | $ 245 |
TDR finance charges recognized | 42 | 23 | 15 |
Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 231 | 95 | 35 |
TDR finance charges recognized | 33 | 12 | 3 |
SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 0 | 0 | 12 |
TDR finance charges recognized | 0 | 0 | 1 |
Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 140 | 175 | 198 |
TDR finance charges recognized | 9 | 11 | 11 |
TDR average net receivables, held for sale | 91 | 102 | 91 |
TDR finance charges recognized, held for sale | $ 6 | $ 6 | $ 5 |
Finance Receivables - New Volum
Finance Receivables - New Volume of the TDR Finance Receivables Held for Investment and Sale (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)account | Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | |
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 343 | $ 228 | $ 76 |
Post-modification TDR net finance receivables: | $ 342 | $ 224 | $ 71 |
Number of TDR accounts | account | 46,070 | 29,956 | 9,531 |
Rate reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | $ 267 | $ 211 | $ 54 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | 75 | 13 | 17 |
Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 327 | 211 | 48 |
Post-modification TDR net finance receivables: | $ 326 | $ 206 | $ 43 |
Number of TDR accounts | account | 45,560 | 29,435 | 8,425 |
Personal Loans | Rate reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | $ 251 | $ 194 | $ 31 |
Personal Loans | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | 75 | 12 | 12 |
SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 0 | 1 | 7 |
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 6 |
Number of TDR accounts | account | 0 | 157 | 721 |
SpringCastle Portfolio | Rate reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 6 |
SpringCastle Portfolio | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | 0 | 0 | 0 |
Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 16 | 16 | 21 |
Post-modification TDR net finance receivables: | $ 16 | $ 17 | $ 22 |
Number of TDR accounts | account | 510 | 364 | 385 |
Pre-modification TDR net finance receivable, held for sale | $ 6 | $ 5 | $ 6 |
Post-modification TDR net finance receivables, held for sale | $ 7 | $ 5 | $ 7 |
Number of TDR accounts, held for sale | account | 232 | 122 | 113 |
Real Estate Loans | Rate reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | $ 16 | $ 16 | $ 17 |
Real Estate Loans | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 5 |
Finance Receivables - Net Fin76
Finance Receivables - Net Finance Receivables Held for Investment and Sale That Were Modified as TDR Finance Receivables (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)account | Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | |
Financing Receivable, Modifications [Line Items] | |||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | ||
TDR net finance receivables | $ 93,000,000 | $ 27,000,000 | $ 13,000,000 |
Number of TDR accounts | account | 15,136 | 3,773 | 1,848 |
Nonperforming | |||
Financing Receivable, Modifications [Line Items] | |||
Default period TDR finance receivables to be considered Non-performing | 12 months | ||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 90 days | 90 days | |
Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 90 days | ||
TDR net finance receivables | $ 89,000,000 | $ 24,000,000 | $ 8,000,000 |
Number of TDR accounts | account | 15,035 | 3,693 | 1,655 |
SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
TDR net finance receivables | $ 0 | $ 0 | $ 2,000,000 |
Number of TDR accounts | account | 0 | 19 | 147 |
TDR net finance receivables, threshold for disclosure | $ 1,000,000 | ||
Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR net finance receivables | $ 4,000,000 | $ 3,000,000 | $ 3,000,000 |
Number of TDR accounts | account | 101 | 61 | 46 |
TDR net finance receivables, held for sale | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 |
Number of TDR accounts, held for sale | account | 53 | 30 | 17 |
Allowance for Finance Receiva77
Allowance for Finance Receivable Losses Allowance Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of period | $ 689 | $ 592 | $ 689 | $ 592 | $ 182 | ||||||
Provision for finance receivable losses | $ 231 | $ 243 | $ 236 | 245 | $ 258 | $ 263 | $ 214 | 197 | 955 | 932 | 716 |
Charge-offs | (1,054) | (875) | (360) | ||||||||
Recoveries | 107 | 74 | 55 | ||||||||
Other | (34) | (1) | |||||||||
Balance at end of period | 697 | 689 | 697 | 689 | 592 | ||||||
Personal Loans | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of period | 669 | 541 | 669 | 541 | 132 | ||||||
Provision for finance receivable losses | 949 | 909 | 634 | ||||||||
Charge-offs | (1,048) | (846) | (261) | ||||||||
Recoveries | 103 | 65 | 37 | ||||||||
Other | 0 | (1) | |||||||||
Balance at end of period | 673 | 669 | 673 | 669 | 541 | ||||||
SpringCastle Portfolio | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of period | 0 | 4 | 0 | 4 | 3 | ||||||
Provision for finance receivable losses | 0 | 14 | 67 | ||||||||
Charge-offs | 0 | (17) | (78) | ||||||||
Recoveries | 0 | 3 | 12 | ||||||||
Other | (4) | 0 | |||||||||
Balance at end of period | 0 | 0 | 0 | 0 | 4 | ||||||
Real Estate Loans | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of period | 19 | 46 | 19 | 46 | 46 | ||||||
Provision for finance receivable losses | 6 | 9 | 13 | ||||||||
Charge-offs | (5) | (11) | (18) | ||||||||
Recoveries | 3 | 5 | 5 | ||||||||
Other | (30) | 0 | |||||||||
Balance at end of period | 23 | 19 | 23 | 19 | 46 | ||||||
Retail Sales Finance | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of period | $ 1 | $ 1 | 1 | 1 | 1 | ||||||
Provision for finance receivable losses | 0 | 0 | 2 | ||||||||
Charge-offs | (1) | (1) | (3) | ||||||||
Recoveries | 1 | 1 | 1 | ||||||||
Other | 0 | 0 | |||||||||
Balance at end of period | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Allowance for Finance Receiva78
Allowance for Finance Receivable Losses and Net Finance Receivables by Type and by Impairment Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | $ 535 | $ 572 | ||
Purchased credit impaired finance receivables | 15 | 37 | ||
TDR finance receivables | 147 | 80 | ||
Total | 697 | 689 | $ 592 | $ 182 |
Finance receivables: | ||||
Collectively evaluated for impairment | 14,386 | 13,159 | ||
Net finance receivables | 14,957 | 13,732 | ||
TDR net finance receivables | $ 367 | $ 196 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.66% | 5.01% | ||
Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 204 | $ 377 | ||
Personal Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 532 | 571 | ||
Purchased credit impaired finance receivables | 6 | 29 | ||
TDR finance receivables | 135 | 69 | ||
Total | 673 | 669 | 541 | 132 |
Finance receivables: | ||||
Collectively evaluated for impairment | 14,323 | 13,072 | ||
Net finance receivables | 14,823 | 13,577 | ||
TDR net finance receivables | $ 318 | $ 152 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.53% | 4.93% | ||
Personal Loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 182 | $ 353 | ||
Real Estate Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 2 | 0 | ||
Purchased credit impaired finance receivables | 9 | 8 | ||
TDR finance receivables | 12 | 11 | ||
Total | 23 | 19 | 46 | 46 |
Finance receivables: | ||||
Collectively evaluated for impairment | 57 | 76 | ||
Net finance receivables | 128 | 144 | ||
TDR net finance receivables | $ 49 | $ 44 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 18.66% | 13.31% | ||
Real Estate Loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 22 | $ 24 | ||
Retail Sales Finance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1 | 1 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 0 | 0 | ||
Total | 1 | 1 | $ 1 | $ 1 |
Finance receivables: | ||||
Collectively evaluated for impairment | 6 | 11 | ||
Net finance receivables | 6 | 11 | ||
TDR net finance receivables | $ 0 | $ 0 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 9.91% | 4.42% | ||
Retail Sales Finance | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables Held for 79
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Jun. 30, 2016 | May 02, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for sale | $ 132 | $ 153 | ||||||
Finance receivables transferred from held for investment to held for sale | $ 608 | |||||||
Net gain on sale of SpringCastle interests | $ 167 | 0 | 167 | 0 | ||||
Financing receivable sold, carrying value | $ 602 | |||||||
Net gain on sales of personal and real estate loans and related trust assets | $ 22 | $ 0 | 18 | $ 0 | ||||
SpringCastle Portfolio | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables transferred from held for investment to held for sale | $ 1,600 | |||||||
Real Estate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables transferred from held for investment to held for sale | $ 50 | $ 257 | ||||||
Real Estate Sale | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Carrying value of loans held for sale | 58 | $ 250 | ||||||
Gain (loss) on loans sold | $ (1) | $ (4) |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | $ 1,611 | $ 1,666 |
Unrealized Gains | 14 | 10 |
Unrealized Losses | (9) | (12) |
Fair Value | 1,616 | 1,664 |
Restricted investments, at cost | 1 | 1 |
Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 1,574 | 1,631 |
Unrealized Gains | 12 | 9 |
Unrealized Losses | (8) | (11) |
Fair Value | 1,578 | 1,629 |
U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 28 | 31 |
Unrealized Gains | 0 | |
Fair Value | 28 | 31 |
Obligations of states, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 135 | 145 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (1) | |
Fair Value | 135 | 145 |
Certificates of deposit and commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 60 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 60 | |
Non-U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 126 | 119 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 125 | 118 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 941 | 1,024 |
Unrealized Gains | 12 | 8 |
Unrealized Losses | (5) | (7) |
Fair Value | 948 | 1,025 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 100 | 101 |
Unrealized Losses | (1) | (1) |
Fair Value | 99 | 100 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 88 | 109 |
Unrealized Losses | (1) | (1) |
Fair Value | 87 | 108 |
CDO/ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 96 | 102 |
Fair Value | 96 | 102 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 15 | 17 |
Unrealized Gains | 0 | |
Unrealized Losses | (1) | (1) |
Fair Value | 14 | 16 |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 21 | 16 |
Unrealized Gains | 2 | 1 |
Fair Value | 23 | 17 |
Other long-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 1 | 2 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 2 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Securities (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value | ||
Less Than 12 Months | $ 697 | $ 800 |
12 Months or Longer | 225 | 29 |
Total | 922 | 829 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (10) |
12 Months or Longer | (5) | (2) |
Total | (9) | (12) |
Unrealized losses on certain available-for-sale securities, less than | 1 | |
Bonds | ||
Fair Value | ||
Less Than 12 Months | 690 | 792 |
12 Months or Longer | 218 | 20 |
Total | 908 | 812 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (10) |
12 Months or Longer | (4) | (1) |
Total | (8) | (11) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 21 | 18 |
12 Months or Longer | 3 | |
Total | 24 | 18 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 65 | 99 |
12 Months or Longer | 20 | 2 |
Total | 85 | 101 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
Total | 0 | (1) |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 89 | 55 |
12 Months or Longer | 13 | 1 |
Total | 102 | 56 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (1) |
Total | (1) | (1) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 387 | 416 |
12 Months or Longer | 93 | 8 |
Total | 480 | 424 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (6) |
12 Months or Longer | (2) | (1) |
Total | (5) | (7) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 40 | 74 |
12 Months or Longer | 25 | 1 |
Total | 65 | 75 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | (1) | |
Total | (1) | (1) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 40 | 66 |
12 Months or Longer | 38 | 5 |
Total | 78 | 71 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | (1) | |
Total | (1) | (1) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 48 | 64 |
12 Months or Longer | 26 | 3 |
Total | 74 | 67 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
Total | 0 | 0 |
Preferred stock | ||
Fair Value | ||
Less Than 12 Months | 3 | 6 |
12 Months or Longer | 7 | 8 |
Total | 10 | 14 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | (1) |
Total | (1) | (1) |
Common Stock | ||
Fair Value | ||
Less Than 12 Months | 3 | 2 |
12 Months or Longer | 1 | |
Total | 3 | 3 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
Total | 0 | $ 0 |
Other long-term investments | ||
Fair Value | ||
Less Than 12 Months | 1 | |
Total | 1 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
Total | $ 0 |
Investment Securities Narrative
Investment Securities Narrative (Details) | Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($)investment |
Investments, Debt and Equity Securities [Abstract] | ||
Investment securities in an unrealized loss position | investment | 1,369 | 1,331 |
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | $ 0 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,616,000,000 | $ 1,664,000,000 |
Deposits With Third Parties | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 537,000,000 | $ 465,000,000 |
Investment Securities - Proceed
Investment Securities - Proceeds of AFS Securities Sold or Redeemed and the Resulting Net Realized Gains (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales and redemptions | $ 508 | $ 518 | $ 431 |
Realized gains | 15 | 16 | 15 |
Realized losses | (1) | (1) | (1) |
Net realized gains | $ 14 | $ 15 | $ 14 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details 4) $ in Millions | Dec. 31, 2017USD ($) |
Fair Value | |
Due in 1 year or less | $ 224 |
Due after 1 year through 5 years | 530 |
Due after 5 years through 10 years | 335 |
Due after 10 years | 207 |
Mortgage-backed, asset-backed, and collateralized securities | 282 |
Total | 1,578 |
Amortized Cost | |
Due in 1 year or less | 225 |
Due after 1 year through 5 years | 531 |
Due after 5 years through 10 years | 334 |
Due after 10 years | 200 |
Mortgage-backed, asset-backed, and collateralized securities | 284 |
Total | $ 1,574 |
Investment Securities - Fair 85
Investment Securities - Fair Value of Trading and Other Securities by Type (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trading securities | |||
Bonds | $ 74 | $ 93 | |
Preferred stock | 6 | 6 | |
Trading securities | 80 | 99 | |
Realized gains (losses) on trading securities | |||
Mark-to-market gains (losses) on trading and other securities held at year end | (1) | 1 | $ 0 |
Net realized gains (losses) on trading and other securities sold or redeemed during the year | 0 | 7 | (3) |
Total | (1) | 8 | $ (3) |
Non-U.S. government and government sponsored entities | |||
Trading securities | |||
Bonds | 1 | 1 | |
Corporate debt | |||
Trading securities | |||
Bonds | 68 | 85 | |
RMBS | |||
Trading securities | |||
Bonds | 1 | 1 | |
CMBS | |||
Trading securities | |||
Bonds | 0 | 1 | |
CDO/ABS | |||
Trading securities | |||
Bonds | $ 4 | $ 5 |
Goodwill and Other Intangible86
Goodwill and Other Intangible Assets -- Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,422,000,000 | |
Balance at end of period | 1,422,000,000 | $ 1,422,000,000 |
Goodwill, impairment loss | 0 | 0 |
Consumer and Insurance | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 1,422,000,000 | 1,440,000,000 |
Adjustments to purchase price allocation | 0 | (18,000,000) |
Balance at end of period | $ 1,422,000,000 | $ 1,422,000,000 |
Goodwill and Other Intangible87
Goodwill and Other Intangible Assets -- Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 634 | $ 634 |
Accumulated Amortization | (194) | (142) |
Net Other Intangible Assets | 440 | 492 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 223 | 223 |
Accumulated Amortization | (92) | (58) |
Net Other Intangible Assets | 131 | 165 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 220 | 220 |
Accumulated Amortization | 0 | 0 |
Net Other Intangible Assets | 220 | 220 |
VOBA | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 141 | 141 |
Accumulated Amortization | (90) | (74) |
Net Other Intangible Assets | 51 | 67 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37 | 37 |
Accumulated Amortization | 0 | 0 |
Net Other Intangible Assets | 37 | 37 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13 | 13 |
Accumulated Amortization | (12) | (10) |
Net Other Intangible Assets | $ 1 | $ 3 |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets -- Amoritization Expense and Amoritization of Other Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 52 | $ 70 | $ 16 |
2,018 | 42 | ||
2,019 | 39 | ||
2,020 | 38 | ||
2,021 | 32 | ||
2,022 | $ 3 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Deferred tax assets | $ 146 | $ 180 |
Fixed assets, net | 144 | 167 |
Prepaid expenses and deferred charges | 109 | 97 |
Ceded insurance reserves | 95 | 102 |
Other investments | 29 | 52 |
Current tax receivable | 15 | 43 |
Cost basis investments | 11 | 11 |
Other | 38 | 36 |
Total | 587 | 688 |
Accumulated depreciation on fixed assets | $ 202 | $ 268 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Corporate Joint Venture | |||
Transactions with Affiliates of Fortress or AIG | |||
Ownership percentage | 47.00% | ||
SpringCastle Funding Trust | Springleaf Finance Corporation | |||
Transactions with Affiliates of Fortress or AIG | |||
Servicing fees receivable | $ 3 | $ 3 | |
Servicing Agreement | SpringCastle Funding Trust | Springleaf Finance Corporation | |||
Transactions with Affiliates of Fortress or AIG | |||
Servicing fee revenue | $ 37 | $ 32 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term debt | |||
Long-term debt | $ 15,050,000,000 | $ 13,959,000,000 | |
Fair Value | $ 15,625,000,000 | $ 14,498,000,000 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 5.74% | 5.67% | 6.65% |
Current Weighted Average Interest Rate | 5.57% | 5.88% | |
Principal maturities of long-term debt by type of debt | |||
2,018 | $ 700,000,000 | ||
2,019 | 696,000,000 | ||
2,020 | 1,299,000,000 | ||
2,021 | 1,446,000,000 | ||
2,022 | 1,000,000,000 | ||
2023-2067 | 1,525,000,000 | ||
Securitizations | 8,711,000,000 | ||
Total principal maturities | 15,377,000,000 | ||
Long-term debt | 15,050,000,000 | $ 13,959,000,000 | |
Debt issuance cost | (54,000,000) | ||
Senior note | |||
Long-term debt | |||
Long-term debt | 14,878,000,000 | 13,787,000,000 | |
Fair Value | $ 15,436,000,000 | $ 14,340,000,000 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 5.73% | 5.60% | 6.56% |
Current Weighted Average Interest Rate | 5.56% | 5.80% | |
Principal maturities of long-term debt by type of debt | |||
Long-term debt | $ 14,878,000,000 | $ 13,787,000,000 | |
Junior subordinated debt | |||
Long-term debt | |||
Long-term debt | 172,000,000 | 172,000,000 | |
Fair Value | $ 189,000,000 | $ 158,000,000 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 6.41% | 12.26% | 12.26% |
Current Weighted Average Interest Rate | 6.37% | 12.26% | |
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 3.11% | ||
Long-term debt | $ 172,000,000 | $ 172,000,000 | |
Senior note | Securitizations | |||
Long-term debt | |||
Long-term debt | 8,688,000,000 | ||
Principal maturities of long-term debt by type of debt | |||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2,022 | 0 | ||
2023-2067 | 0 | ||
Securitizations | 8,711,000,000 | ||
Total principal maturities | 8,711,000,000 | ||
Long-term debt | 8,688,000,000 | ||
Debt issuance cost | $ (24,000,000) | ||
Senior note | Securitizations | Minimum | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 2.04% | ||
Senior note | Securitizations | Maximum | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 6.94% | ||
Senior note | Medium Term Notes | |||
Long-term debt | |||
Long-term debt | $ 6,190,000,000 | ||
Principal maturities of long-term debt by type of debt | |||
2,018 | 700,000,000 | ||
2,019 | 696,000,000 | ||
2,020 | 1,299,000,000 | ||
2,021 | 1,446,000,000 | ||
2,022 | 1,000,000,000 | ||
2023-2067 | 1,175,000,000 | ||
Securitizations | 0 | ||
Total principal maturities | 6,316,000,000 | ||
Long-term debt | 6,190,000,000 | ||
Debt issuance cost | $ (30,000,000) | ||
Senior note | Medium Term Notes | Minimum | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 5.25% | ||
Senior note | Medium Term Notes | Maximum | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 8.25% | ||
Senior note | Revolving Conduit Facilities | Other assets | |||
Principal maturities of long-term debt by type of debt | |||
Debt issuance cost | $ (20,000,000) | ||
Junior subordinated debt | |||
Long-term debt | |||
Long-term debt | 172,000,000 | ||
Principal maturities of long-term debt by type of debt | |||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2,022 | 0 | ||
2023-2067 | 350,000,000 | ||
Securitizations | 0 | ||
Total principal maturities | 350,000,000 | ||
Long-term debt | 172,000,000 | ||
Debt issuance cost | 0 | ||
Consolidated VIEs | |||
Long-term debt | |||
Long-term debt | 8,700,000,000 | 8,200,000,000 | |
Principal maturities of long-term debt by type of debt | |||
Amount Outstanding Under Securitization Transaction | 0 | ||
Long-term debt | $ 8,700,000,000 | $ 8,200,000,000 |
Long-term Debt -- Narrative (De
Long-term Debt -- Narrative (Details) - USD ($) | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Apr. 11, 2016 |
Senior note | Senior Notes 5.625% | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 5.625% | |||
Issue Amount | $ 875,000,000 | |||
Debt repurchased | $ 557,000,000 | |||
Senior note | Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 6.90% | |||
Senior note | Senior Notes 6.125% | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 6.125% | 6.125% | ||
Issue Amount | $ 500,000,000 | $ 500,000,000 | ||
Senior note | Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 6.90% | |||
Debt repurchased | $ 466,000,000 | |||
Guaranty Agreements | Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 8.25% | |||
Issue Amount | $ 1,000,000,000 | |||
Beneficial Owners of Debt | Springleaf Finance Corporation | Senior Notes due 2017 | Senior Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Debt repurchased | $ 600,000,000 |
Long-term Debt -- Guaranty Agre
Long-term Debt -- Guaranty Agreements (Details) - USD ($) | Jan. 08, 2018 | Dec. 31, 2017 | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Apr. 11, 2016 | Dec. 03, 2014 | Dec. 30, 2013 |
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 15,377,000,000 | |||||||
Senior note | Senior Notes 5.625% | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 5.625% | |||||||
Issue Amount | $ 875,000,000 | |||||||
Senior note | Senior Notes 6.125% | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 6.125% | 6.125% | ||||||
Issue Amount | $ 500,000,000 | $ 500,000,000 | ||||||
Senior note | 2019 OMFH Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 6.75% | |||||||
Issue Amount | $ 700,000,000 | |||||||
Subsequent Event | Senior note | 2019 OMFH Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.375% | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Notes 5.625% | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 875,000,000 | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Notes 6.125% | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 1,000,000,000 | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior note | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 1,600,000,000 | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Note 8.25%, due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 8.25% | |||||||
Long-term debt, gross | 1,000,000,000 | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Notes 5.25 % Due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 5.25% | |||||||
Long-term debt, gross | 700,000,000 | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | 8.250% Senior Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 8.25% | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | 7.750% Senior Notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 7.75% | |||||||
Guaranty Agreements | Springleaf Holdings, Inc. | 6.00% Senior Notes due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates (as a percent) | 6.00% | |||||||
Guaranty Agreements | OneMain Financial Holdings, Inc. | Senior Note 7.25 Percent due 2021 | Senior Note 6.75 Percent due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 1,500,000,000 |
Long-term Debt -- Debt Covenant
Long-term Debt -- Debt Covenants (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2007USD ($) | Dec. 31, 2017USD ($)agreement | Jan. 15, 2017 | |
Debt Instrument [Line Items] | |||
Debt instrument, number of agreements requiring specific financial targets or ratios | agreement | 0 | ||
Long-term debt, gross | $ 15,377 | ||
Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rates (as a percent) | 3.11% | ||
Junior Subordinated Debenture | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 350 | ||
Term of debt | 60 years | ||
Effective interest rate | 3.11% | ||
Interest rates (as a percent) | 6.00% | ||
Junior Subordinated Debenture | Minimum | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, covenant, percent of tangible equity to tangible managed assets | 5.50% | ||
Junior Subordinated Debenture | Maximum | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, covenant, average fixed charge ratio | 1.10 | ||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amounts (Details) - Consolidated VIEs - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 4 | $ 3 |
Finance receivables: | Personal Loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 9,769 | 9,509 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 465 | 501 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 482 | 552 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 20 | 14 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 8,688 | 8,240 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 15 | $ 16 |
Variable Interest Entities - S
Variable Interest Entities - Securitized Borrowings (Details) - USD ($) | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Dec. 11, 2017 | Nov. 20, 2017 | Sep. 06, 2017 | Jun. 28, 2017 | Jun. 07, 2017 | Feb. 15, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 14, 2016 | Jul. 25, 2016 | Jul. 19, 2016 | May 17, 2016 | Mar. 23, 2016 | Feb. 10, 2016 | |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 15,050,000,000 | $ 13,959,000,000 | |||||||||||||
Current Weighted Average Interest Rate | 5.57% | 5.88% | |||||||||||||
Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 8,700,000,000 | $ 8,200,000,000 | |||||||||||||
Consolidated VIEs | Secured Structured Financings | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | 8,711,000,000 | ||||||||||||||
Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | 7,680,000,000 | ||||||||||||||
Consolidated VIEs | Auto Securitization: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | 1,031,000,000 | ||||||||||||||
SLFT 2015-A | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | 1,163,000,000 | ||||||||||||||
Long-term debt | $ 1,163,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.47% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
SLFT 2015-B | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 314,000,000 | ||||||||||||||
Long-term debt | $ 314,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.78% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
SLFT 2016-A | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 532,000,000 | ||||||||||||||
Long-term debt | $ 500,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.10% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Notes initially retained by the entity | $ 32,000,000 | ||||||||||||||
SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 652,000,000 | ||||||||||||||
Long-term debt | $ 619,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.98% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
SLFT 2017-A | Consolidated VIEs | Class A Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 26,000,000 | ||||||||||||||
SLFT 2017-A | Consolidated VIEs | Class B Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 2,000,000 | ||||||||||||||
SLFT 2017-A | Consolidated VIEs | Class C Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 2,000,000 | ||||||||||||||
SLFT 2017-A | Consolidated VIEs | Class D Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 3,000,000 | ||||||||||||||
OMFIT 2014-2 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,185,000,000 | ||||||||||||||
Long-term debt | $ 320,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.16% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
OMFIT 2015-1 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,229,000,000 | ||||||||||||||
Long-term debt | $ 1,229,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.74% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
OMFIT 2015-2 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,250,000,000 | ||||||||||||||
Long-term debt | $ 750,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.40% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
OMFIT 2015-3 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 293,000,000 | ||||||||||||||
Long-term debt | $ 293,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.21% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
OMFIT 2016-1 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 500,000,000 | ||||||||||||||
Long-term debt | $ 459,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.01% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
Notes initially retained by the entity | $ 86,000,000 | ||||||||||||||
Amount of notes sold under private securitization | $ 45,000,000 | ||||||||||||||
OMFIT 2016-2 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 890,000,000 | ||||||||||||||
Long-term debt | $ 816,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.50% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Notes initially retained by the entity | $ 157,000,000 | ||||||||||||||
Amount of notes sold under private securitization | $ 83,000,000 | ||||||||||||||
OMFIT 2016-3 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 350,000,000 | ||||||||||||||
Long-term debt | $ 317,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.33% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
Notes initially retained by the entity | $ 33,000,000 | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 947,000,000 | ||||||||||||||
Long-term debt | $ 900,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.66% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Class B Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 3,000,000 | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Class C Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 3,000,000 | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Class A-1 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 30,000,000 | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Class A-2 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 6,000,000 | ||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Class D Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 5,000,000 | ||||||||||||||
ODART 2016-1 | Consolidated VIEs | Auto Securitization: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 754,000,000 | ||||||||||||||
Long-term debt | $ 188,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.91% | ||||||||||||||
Notes initially retained by the entity | $ 54,000,000 | ||||||||||||||
ODART 2017-01 | Consolidated VIEs | Auto Securitization: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 300,000,000 | ||||||||||||||
Long-term debt | $ 268,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.61% | ||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
ODART 2017-01 | Consolidated VIEs | Class A Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 19,000,000 | $ 11,000,000 | |||||||||||||
ODART 2017-01 | Consolidated VIEs | Class B Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 4,000,000 | 1,000,000 | |||||||||||||
ODART 2017-01 | Consolidated VIEs | Class C Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 3,000,000 | 1,000,000 | |||||||||||||
ODART 2017-01 | Consolidated VIEs | Class D Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | 2,000,000 | 1,000,000 | |||||||||||||
ODART 2017-01 | Consolidated VIEs | Class E Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes initially retained by the entity | $ 2,000,000 | $ 18,000,000 | |||||||||||||
ODART 2017-02 | Consolidated VIEs | Auto Securitization: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 605,000,000 | ||||||||||||||
Long-term debt | $ 575,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.63% | ||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
SLFT 2014-A | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 221,000,000 | ||||||||||||||
Debt redemption price | 188,000,000 | ||||||||||||||
Twenty First Street | Consolidated VIEs | Class D Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption price | $ 33,000,000 | ||||||||||||||
Springleaf Funding Trust 2014-1 | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 81,000,000 | ||||||||||||||
Debt redemption price | $ 81,000,000 | ||||||||||||||
Minimum | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
Maximum | Consolidated VIEs | Consumer Securitizations: | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Original Revolving Period | 5 years |
Variable Interest Entities - Co
Variable Interest Entities - Conduit Facilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,050,000,000 | $ 13,959,000,000 |
Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Long-term debt | 8,700,000,000 | $ 8,200,000,000 |
Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 5,050,000,000 | |
Long-term debt | 0 | |
First Avenue Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Long-term debt | 0 | |
Seine River Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 500,000,000 | |
Long-term debt | 0 | |
OneMain Financial B6 Warehouse Trust | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 600,000,000 | |
Long-term debt | 0 | |
Rocky River Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Long-term debt | 0 | |
OneMain Financial Funding VII, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 650,000,000 | |
Long-term debt | 0 | |
Thur River Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 350,000,000 | |
Long-term debt | 0 | |
OneMain Financial Funding IX, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 600,000,000 | |
Long-term debt | 0 | |
Mystic River Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 850,000,000 | |
Long-term debt | 0 | |
Fourth Avenue Auto Funding, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Long-term debt | 0 | |
OneMain Financial Auto Funding I, LLC | Conduit Facilities | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 750,000,000 | |
Long-term debt | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entities | |||||||||||
Interest expense | $ 204 | $ 207 | $ 203 | $ 202 | $ 201 | $ 215 | $ 214 | $ 226 | $ 816 | $ 856 | $ 715 |
Consolidated VIEs | |||||||||||
Variable Interest Entities | |||||||||||
Interest expense | $ 323 | $ 341 | $ 216 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Insurance | ||||
Claim reserves | $ 154 | $ 158 | $ 177 | $ 70 |
Payable to OMH | 590 | 586 | ||
Insurance claims and policyholder liabilities | 737 | 757 | ||
Unearned premium and claim reserves and liability of benefit reserves | 1,327 | 1,343 | ||
Insurance claims and policyholder liabilities assumed from other insurers | 325 | 333 | ||
Current tax receivable | 95 | 102 | ||
Non Financial Guarantee Insurance Segment | ||||
Insurance | ||||
Unearned premium reserves | 81 | 86 | ||
Claim reserves | 61 | 60 | ||
Benefit reserves | 375 | 388 | ||
Insurance claims and policyholder liabilities | 517 | 534 | ||
Non-affiliated insurance companies | ||||
Insurance | ||||
Current tax receivable | 95 | 102 | ||
Payable to OMH | Credit Insurance | ||||
Insurance | ||||
Unearned premium reserves | 515 | 508 | ||
Claim reserves | 75 | 78 | ||
Payable to OMH | 590 | 586 | ||
Third-Party Beneficiaries | Credit Insurance | ||||
Insurance | ||||
Unearned premium reserves | 99 | 98 | ||
Claim reserves | 18 | 20 | ||
Benefit reserves | 103 | 105 | ||
Insurance claims and policyholder liabilities | $ 220 | $ 223 |
Insurance - Change in Reserve f
Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | |||
Balance at beginning of period | $ 158 | $ 177 | $ 70 |
Less reinsurance recoverables | (26) | (26) | (22) |
Balance at beginning of period | 132 | 151 | 48 |
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition | 0 | 0 | 104 |
Additions for losses and loss adjustment expenses incurred to: | |||
Current year | 188 | 203 | 83 |
Prior years | 5 | (20) | 5 |
Total | 193 | 183 | 88 |
Reductions for losses and loss adjustment expenses paid related to: | |||
Current year | (115) | (124) | (63) |
Prior years | (78) | (78) | (26) |
Total | (193) | (202) | (89) |
Foreign currency translation adjustment | (1) | 0 | 0 |
Balance at end of period | 131 | 132 | 151 |
Plus reinsurance recoverables | 23 | 26 | 26 |
Balance at end of period | $ 154 | $ 158 | $ 177 |
Insurance - Incurred and Cumula
Insurance - Incurred and Cumulative Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Millions | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 112 | $ 116 | $ 130 | ||
Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 655 | ||||
Cumulative paid claims and allocated claim adjustment expense, net | 565 | ||||
All outstanding liabilities before 2013, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 90 | 96 | 105 | ||
Accident Year 2013 | Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 124 | 124 | 125 | $ 127 | $ 140 |
Incurred-but- not-reported Liabilities | $ 0 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 50,295 | ||||
Cumulative frequency | 2.70% | ||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 124 | 121 | 115 | 105 | $ 68 |
Accident Year 2014 | Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131 | 130 | 132 | 145 | |
Incurred-but- not-reported Liabilities | $ 3 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 51,776 | ||||
Cumulative frequency | 2.70% | ||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 128 | 121 | 110 | $ 71 | |
Accident Year 2015 | Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 129 | 129 | 138 | ||
Incurred-but- not-reported Liabilities | $ 8 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 52,505 | ||||
Cumulative frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 121 | 109 | $ 71 | ||
Accident Year 2016 | Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 135 | 138 | |||
Incurred-but- not-reported Liabilities | $ 20 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 51,558 | ||||
Cumulative frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 115 | $ 75 | |||
Accident Year 2017 | Credit Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 136 | ||||
Incurred-but- not-reported Liabilities | $ 59 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 39,329 | ||||
Cumulative frequency | 2.20% | ||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 77 |
Insurance - Reconciliations of
Insurance - Reconciliations of Net Incurred And Paid Claims Development to the Liability for Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 112 | $ 116 | $ 130 | |
Insurance lines other than short-duration | 22 | 20 | 25 | |
Total gross liability for unpaid claims and claim adjustment expense | 154 | 158 | 177 | $ 70 |
Credit Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 90 | 96 | 105 | |
Other short-duration insurance lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 22 | 20 | 25 | |
Reinsurance recoverable on unpaid claims: | $ 20 | $ 22 | $ 22 |
Insurance - Average Annual Perc
Insurance - Average Annual Percentage Payout of incurred Claims by Age, Net of Reinsurance (Details) - Credit Insurance | Dec. 31, 2017 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 55.40% |
Year Two | 29.40% |
Year Three | 8.90% |
Year Four | 4.80% |
Year Five | 2.50% |
Insurance - Statutory Informati
Insurance - Statutory Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Yosemite | Property and casualty | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ 19 | $ 11 | $ 15 |
Statutory capital and surplus | 42 | 63 | |
Triton | Property and casualty | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 31 | 14 | 3 |
Statutory capital and surplus | 170 | 139 | |
Merit | Life and accident and health | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 37 | 20 | (1) |
Statutory capital and surplus | 79 | 133 | |
AHL | Life and accident and health | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 34 | 71 | $ 11 |
Statutory capital and surplus | $ 130 | $ 215 |
Insurance - Narrative (Details)
Insurance - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OneMain Insurance Subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practice, period that the ordinary dividends can be paid without prior approval | 12 months | ||
Maximum dividend distribution without prior approval from regulatory agency, percent | 10.00% | ||
Statutory accounting practice, period that the extraordinary dividends can be paid without prior approval | 12 months | ||
Maximum extraordinary dividend distribution without prior approval from regulatory agency, percent | 10.00% | ||
Cash dividends from subsidiaries | $ 111 | $ 105 | $ 68 |
Merit and Yosemite | |||
Statutory Accounting Practices [Line Items] | |||
Dividends paid | $ 125 | $ 63 | $ 100 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses and other liabilities | $ 119 | $ 98 |
Salary and benefit liabilities | 79 | 69 |
Accrued interest on debt | 58 | 61 |
Retirement plans | 13 | 31 |
Insurance liabilities | 12 | 14 |
Loan principal warranty reserve | 8 | 13 |
Other | 34 | 46 |
Total | $ 323 | $ 332 |
Capital Stock and Earnings (107
Capital Stock and Earnings (Loss) Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2017item$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015shares | |
Earnings Per Share [Abstract] | |||
Number of classes of authorized capital stock | item | 2 | ||
Par value and shares authorized | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 300,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Preferred stock issued (in shares) | 0 | 0 | |
Preferred stock outstanding (in shares) | 0 | 0 | |
Common shares issued and outstanding | |||
Balance at beginning of period (in shares) | 134,867,868 | 134,494,172 | 114,832,895 |
Common shares issued (in shares) | 481,770 | 373,696 | 19,661,277 |
Balance at end of period (in shares) | 135,349,638 | 134,867,868 | 134,494,172 |
Capital Stock and Earnings (108
Capital Stock and Earnings (Loss) Per Share - Equity Offering (Details) $ in Millions | May 04, 2015USD ($)shares |
Schedule of Capitalization, Equity [Line Items] | |
Common shares offered in secondary offering (in shares) | 27,864,525 |
Net proceeds from secondary offering | $ | $ 976 |
Secondary offering related expenses | $ | $ 24 |
OneMain Financial Holdings, LLC | |
Schedule of Capitalization, Equity [Line Items] | |
Common shares offered in secondary offering (in shares) | 19,417,476 |
Initial Stockholder | |
Schedule of Capitalization, Equity [Line Items] | |
Common shares offered in secondary offering (in shares) | 8,447,049 |
Capital Stock and Earnings (109
Capital Stock and Earnings (Loss) Per Share - Earnings (Loss) Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income (loss) attributable to OneMain Holdings, Inc. | $ 183 | $ 215 | $ (220) | ||||||||
Weighted average number of shares outstanding, basic (in shares) | 135,249,314 | 134,718,588 | 127,910,680 | ||||||||
Effect of dilutive securities (in shares) | 429,677 | 417,272 | 0 | ||||||||
Weighted average number of shares outstanding, diluted (in shares) | 135,678,991 | 135,135,860 | 127,910,680 | ||||||||
Basic (in dollars per share) | $ 0.29 | $ 0.52 | $ 0.31 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.02 | $ 1.35 | $ 1.60 | $ (1.72) |
Diluted (in dollars per share) | $ 0.29 | $ 0.51 | $ 0.30 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.01 | $ 1.35 | $ 1.59 | $ (1.72) |
Performance Shares | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of EPS (in shares) | 59,863 | 508,340 | 591,606 | ||||||||
Restricted Stock Units | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of EPS (in shares) | 674,472 | 778,121 | 489,653 |
Accumulated Other Comprehens110
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | $ 3,066 | $ 2,730 | $ 1,932 |
Other comprehensive income before reclassifications | 27 | 41 | (28) |
Reclassification adjustments from accumulated other comprehensive loss | (10) | (14) | (8) |
Ending balance | 3,278 | 3,066 | 2,730 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (1) | (14) | 12 |
Other comprehensive income before reclassifications | 14 | 23 | (18) |
Reclassification adjustments from accumulated other comprehensive loss | (9) | (10) | (8) |
Ending balance | 4 | (1) | (14) |
Retirement Plan Liabilities Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (4) | (19) | (13) |
Other comprehensive income before reclassifications | 9 | 15 | (6) |
Reclassification adjustments from accumulated other comprehensive loss | (1) | 0 | 0 |
Ending balance | 4 | (4) | (19) |
Foreign Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (1) | 0 | 4 |
Other comprehensive income before reclassifications | 4 | 3 | (4) |
Reclassification adjustments from accumulated other comprehensive loss | 0 | (4) | 0 |
Ending balance | 3 | (1) | 0 |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (6) | (33) | 3 |
Ending balance | $ 11 | $ (6) | $ (33) |
Accumulated Other Comprehens111
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments From Accumulated Other Comprehensive Income (Loss) (Details ) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), net of tax | $ 10 | $ 14 | $ 8 |
Unrealized gains on investment securities | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), before taxes | 14 | 15 | 12 |
Income tax effect | (5) | (5) | (4) |
Reclassification from accumulated other comprehensive income (loss), net of tax | 9 | 10 | 8 |
Unrealized gains (losses) on retirement plan liabilities | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), before taxes | 2 | 0 | 0 |
Income tax effect | (1) | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss), net of tax | 1 | 0 | 0 |
Unrealized gains on foreign currency translation adjustments | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), net of tax | 0 | 4 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), net of tax | $ 10 | $ 14 | $ 8 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income taxes | |||
Undistributed foreign earnings | $ 0 | ||
Variance from federal statutory rate due to income (loss) from non-controlling interests, percent | 0.00% | (2.77%) | 19.77% |
Impact of Tax Act | 18.65% | 0.00% | 0.00% |
Tax Cuts and Jobs of 2017, income tax expense | $ 81,000,000 | ||
Valuation allowance | 44,000,000 | $ 29,000,000 | |
State | |||
Income taxes | |||
State operating loss carryforward | 730,000,000 | 791,000,000 | |
Valuation allowance | $ 40,000,000 | $ 26,000,000 |
Income Taxes - Components of in
Income Taxes - Components of income (loss) before provision for (benefit from) income taxes (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) before income tax expense (benefit) - U.S. operations | $ 416 | $ 338 | $ (238) | ||||||||
Income before income tax expense - foreign operations | 15 | 18 | 12 | ||||||||
Income (loss) before income tax expense (benefit) | $ 187 | $ 121 | $ 66 | $ 57 | $ 29 | $ 33 | $ 42 | $ 252 | $ 431 | $ 356 | $ (226) |
Income Taxes - Components of pr
Income Taxes - Components of provision for (benefit from) income taxes (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 208 | $ 185 | $ 68 | ||||||||
Foreign | 2 | 1 | 1 | ||||||||
State | 8 | 24 | 7 | ||||||||
Total current | 218 | 210 | 76 | ||||||||
Deferred: | |||||||||||
Federal | 18 | (81) | (178) | ||||||||
Foreign | 0 | 3 | 0 | ||||||||
State | 12 | (19) | (31) | ||||||||
Deferred income tax charge (benefit) | 30 | (97) | (209) | ||||||||
Provision for (benefit from) income taxes | $ 148 | $ 52 | $ 24 | $ 24 | $ 2 | $ 8 | $ 16 | $ 87 | 248 | $ 113 | (133) |
Foreign income tax expense (benefit), threshold for disclosure | $ 1 | $ 1 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of the statutory federal income tax rate to the effective tax rate (Details 3) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Impact of Tax Act | 18.65% | 0.00% | 0.00% |
State income taxes, net of federal | 2.86% | 1.05% | 7.06% |
Excess tax benefit on share-based compensation | 0.41% | (0.49%) | |
Tax impact of United Kingdom subsidiary liquidation | 0.00% | (0.60%) | 0.00% |
Non-controlling interests | 0.00% | (2.77%) | 19.77% |
Nondeductible compensation | 0.00% | (2.40%) | |
Other, net | 0.55% | (0.42%) | (0.41%) |
Effective income tax rate | 57.47% | 31.77% | 59.02% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of gross unrecognized tax obligation (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 16 | $ 15 | $ 4 |
Increases in tax positions for current years | 1 | 2 | 10 |
Increases in tax positions for prior years | 0 | 0 | 4 |
Lapse in statute of limitations | (2) | (1) | 0 |
Settlements with tax authorities | 0 | 0 | (1) |
Decreases in tax positions for prior years | 0 | 0 | (2) |
Balance at end of year | $ 15 | $ 16 | $ 15 |
Income Taxes - Components of de
Income Taxes - Components of deferred tax assets and liabilities (Details 5) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 149 | $ 246 |
State taxes, net of federal | 66 | 56 |
Mark-to-market | 53 | 51 |
Pension/employee benefits | 10 | 29 |
Acquisition costs | 6 | 9 |
Federal and foreign net operating losses and tax attributes | 5 | 4 |
Insurance reserves | 3 | 0 |
Legal and warranty reserve | 2 | 6 |
Other intangibles | 2 | 1 |
Other | 8 | 5 |
Total | 304 | 407 |
Deferred tax liabilities: | ||
Debt fair value adjustment | 46 | 90 |
Goodwill | 41 | 37 |
Deferred loan fees | 14 | 12 |
Discount - debt exchange | 11 | 16 |
Fixed assets | 3 | 6 |
Deferred insurance commissions | 2 | 1 |
Impact of tax accounting method change | 0 | 38 |
Insurance reserves | 0 | 2 |
Total | 117 | 202 |
Net deferred tax assets before valuation allowance | 187 | 205 |
Valuation allowance | (44) | (29) |
Net deferred tax assets | $ 143 | $ 176 |
Lease Commitments, Rent Expe118
Lease Commitments, Rent Expense, and Contingent Liabilities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis | |
2,018 | $ 55 |
2,019 | 44 |
2,020 | 33 |
2,021 | 22 |
2,022 | 12 |
2023 and thereafter | 14 |
Total | $ 180 |
Lease Commitments, Rent Expe119
Lease Commitments, Rent Expense, and Contingent Liabilities Narrative (Details) $ in Millions | Feb. 10, 2017defendant | Dec. 31, 2017USD ($)request | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||||
Rental expense | $ 79 | $ 84 | $ 39 | ||
Number of defendants | defendant | 3 | ||||
Reserve for sales recourse obligations | $ 8 | $ 13 | $ 15 | $ 24 | |
Number of material recourse requests | request | 0 |
Lease Commitments, Rent Expe120
Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance Receivables Reserve for Sales Recourse Obligations [Roll Forward] | |||
Balance at beginning of period | $ 13 | $ 15 | $ 24 |
Recourse losses | (1) | 0 | (2) |
Provision for recourse obligations, net of recoveries | (4) | (2) | (7) |
Balance at end of period | $ 8 | $ 13 | $ 15 |
Benefit Plans (Details)
Benefit Plans (Details) - Pension Plan | 12 Months Ended |
Dec. 31, 2017 | |
Benefit Plans | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 1 year |
UNITED STATES | |
Benefit Plans | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 12 months |
Vesting period | 5 years |
Normal retirement age | 65 years |
Maximum credited service period | 44 years |
Benefit Plans - 401(K) Plans (D
Benefit Plans - 401(K) Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | 100.00% | |
Percentage of employee salary eligible for employer matching contribution | 4.00% | 4.00% | |
Other Postretirement Benefits Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | ||
Percentage of employee salary eligible for employer matching contribution | 4.00% | ||
Maximum employer discretionary profit sharing contribution as percentage of annual pay | 4.00% | ||
Pension Plan | |||
401(K) PLANS | |||
Salaries and benefit expense related to plan | $ 16 | $ 21 | $ 20 |
CommonLoCo Thrift Plan | |||
401(K) PLANS | |||
Percentage of employee salary eligible for employer matching contribution | 3.00% | ||
Employer's match of employees' contributions of the next 3% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 3.00% | ||
CommonLoCo Thrift Plan | Pension Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% |
Benefit Plans - Obligations and
Benefit Plans - Obligations and Funded Status (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value of plan assets | |||
Fair value of plan assets, beginning of period | $ 354 | ||
Fair value of plan assets, end of period | 341 | $ 354 | |
Pension Plan | |||
Projected benefit obligation | |||
Projected benefit obligation, beginning of period | 385 | 388 | $ 409 |
Interest cost | 13 | 16 | 15 |
Actuarial loss (gain) | 17 | (6) | (24) |
Plan assets | (14) | (13) | (12) |
Settlement | (47) | 0 | 0 |
Projected benefit obligation, end of period | 354 | 385 | 388 |
Fair value of plan assets | |||
Fair value of plan assets, beginning of period | 354 | 333 | 359 |
Actual return on plan assets, net of expenses | 47 | 33 | (15) |
Company contributions | 1 | 1 | 1 |
Settlement | (47) | 0 | 0 |
Fair value of plan assets, end of period | 341 | 354 | 333 |
Funded status, end of period | (13) | (31) | (55) |
Net amounts recognized in the consolidated balance sheet: | |||
Other liabilities recognized in the consolidated balance sheet | (13) | (31) | (55) |
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Pretax net gain (loss) recognized in accumulated other comprehensive income or loss | 4 | (7) | (29) |
Unfunded Plan | Nonqualified Plan | Pension Plan | |||
Fair value of plan assets | |||
Funded status, end of period | (10) | (10) | $ (10) |
UNITED STATES | Pension Plan | |||
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Accumulated benefit obligation | $ 354 | $ 385 |
Benefit Plans - PBO and Net Per
Benefit Plans - PBO and Net Periodic Benefit Cost (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Amortization of net actuarial gain (loss) | $ 2,000,000 | $ 0 | $ 0 |
Total recognized in other comprehensive income or loss | (12,000,000) | (22,000,000) | 9,000,000 |
Pension Plan | |||
PBO Exceeds Fair Value of Plan Assets | |||
Projected benefit obligation | 354,000,000 | 385,000,000 | |
Accumulated benefit obligation | 354,000,000 | 385,000,000 | |
Fair value of plan assets | 341,000,000 | 354,000,000 | |
Components of net periodic benefit cost: | |||
Interest cost | 13,000,000 | 16,000,000 | 15,000,000 |
Expected return on assets | (18,000,000) | (17,000,000) | (19,000,000) |
Settlement gain | (2,000,000) | 0 | 0 |
Net periodic benefit cost | (7,000,000) | (1,000,000) | (4,000,000) |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | (12,000,000) | (22,000,000) | 9,000,000 |
Amortization of net actuarial gain (loss) | 2,000,000 | 0 | 0 |
Total recognized in other comprehensive income or loss | (10,000,000) | (22,000,000) | 9,000,000 |
Total recognized in net periodic benefit cost and other comprehensive income or loss | (17,000,000) | $ (23,000,000) | $ 5,000,000 |
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | |||
Estimated net loss (less than) | 1,000,000 | ||
Estimated prior service credit | $ 0 |
Benefit Plans - Assumptions and
Benefit Plans - Assumptions and Future Expected Benefit Payments (Details 5) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Projected benefit obligation: | ||
Discount rate (as a percent) | 3.49% | 4.04% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 4.04% | 4.26% |
Expected return on assets (as a percent) | 5.28% | 5.27% |
Rate of compensation increase (average) (as a percent) | 0.00% | |
Expected future benefit payments, net of participants' contribution | ||
2,018 | $ 15 | |
2,019 | 15 | |
2,020 | 15 | |
2,021 | 16 | |
2,022 | 16 | |
2023-2027 | $ 85 | |
Fixed income securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 85.00% | |
Target asset allocation (as a percent) | 84.00% | |
Equity securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 14.00% | |
Target asset allocation (as a percent) | 16.00% | |
Cash and cash equivalents | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 1.00% | |
The Springleaf Financial Services Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.30% | |
The CommonLoCo Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.80% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Plan Assets (Details 6) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Benefit Plans | ||
Total fair value of plan assets | $ 341 | $ 354 |
Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 2 | 3 |
Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 339 | 351 |
Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Benefit Plans | ||
Total fair value of plan assets | 2 | 3 |
Cash and cash equivalents | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 2 | 3 |
Cash and cash equivalents | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | UNITED STATES | ||
Benefit Plans | ||
Total fair value of plan assets | 23 | 17 |
Equity securities | UNITED STATES | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | UNITED STATES | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 23 | 17 |
Equity securities | UNITED STATES | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | International | ||
Benefit Plans | ||
Total fair value of plan assets | 24 | 15 |
Equity securities | International | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | International | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 24 | 15 |
Equity securities | International | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Investment Grade Securities | UNITED STATES | ||
Benefit Plans | ||
Total fair value of plan assets | 281 | 310 |
Investment Grade Securities | UNITED STATES | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Investment Grade Securities | UNITED STATES | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 281 | 310 |
Investment Grade Securities | UNITED STATES | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
High Yield Securities | UNITED STATES | ||
Benefit Plans | ||
Total fair value of plan assets | 11 | 9 |
High Yield Securities | UNITED STATES | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
High Yield Securities | UNITED STATES | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 11 | 9 |
High Yield Securities | UNITED STATES | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | $ 0 | $ 0 |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) - USD ($) | May 25, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
SHARE-BASED COMPENSATION | |||||
Total income tax benefit recognized for stock-based compensation | $ 6,000,000 | $ 8,000,000 | $ 6,000,000 | ||
Unrecognized compensation expense | $ 23,000,000 | 23,000,000 | |||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 1 year 10 months 28 days | ||||
Restricted Stock Units | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award without rights | 4 years 2 months 12 days | ||||
Granted during the period (in dollars per share) | $ 27.85 | ||||
Share-based compensation expense | $ 17,000,000 | $ 22,000,000 | $ 15,000,000 | ||
Granted (in shares) | 407,184 | ||||
Vested (in shares) | 575,322 | ||||
Restricted Stock | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award with rights | 3 years | ||||
Service-Based Awards | |||||
SHARE-BASED COMPENSATION | |||||
Granted during the period (in dollars per share) | $ 27.85 | $ 26.14 | $ 47.44 | ||
Fair value of service based awards vested in period | $ 18,000,000 | $ 10,000,000 | $ 7,000,000 | ||
Performance Shares | |||||
SHARE-BASED COMPENSATION | |||||
Granted during the period (in dollars per share) | $ 24.98 | $ 34.45 | |||
Fair value of service based awards vested in period | $ 2,000,000 | $ 4,000,000 | |||
Performance targets, probability of occurring | 100.00% | ||||
Share-based compensation expense | $ 6,000,000 | ||||
Performance targets, achieved | 100.00% | ||||
Granted (in shares) | 90,072 | 0 | |||
Vested (in shares) | 92,000 | 0 | |||
Incentive Units | |||||
SHARE-BASED COMPENSATION | |||||
Share-based compensation expense | $ 0 | $ 0 | $ 15,000,000 | ||
Omnibus Incentive Plan | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares of common stock authorized (in shares) | 13,199,096 | ||||
Number of shares subject to outstanding equity awards (in shares) | 1,411,236 | ||||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted (in shares) | 10.00% | ||||
Omnibus Incentive Plan | Non-Employee Directors | |||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | |||||
Maximum cash and equity-based awards to non-employee directors per calendar year | $ 500,000 | ||||
Minimum | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award with rights | 2 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Grant Date Fair Value | |||
Vested (in dollars per share) | $ 24.78 | ||
Restricted Stock Units | |||
Number of Shares | |||
Balance, beginning of period (in shares) | 1,382,920 | ||
Granted (in shares) | 407,184 | ||
Vested (in shares) | (575,322) | ||
Forfeited (in shares) | (73,172) | ||
Balance, end of period (in shares) | 1,141,610 | 1,382,920 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 35.86 | ||
Granted during the period (in dollars per share) | 27.85 | ||
Vested (in dollars per share) | 31.86 | ||
Forfeited (in dollars per share) | 38.10 | ||
Unvested, end of period (in dollars per share) | $ 34.87 | $ 35.86 | |
Weighted Average Remaining Term (in Years) | 1 year 10 months 28 days | ||
Performance Shares | |||
Number of Shares | |||
Balance, beginning of period (in shares) | 407,948 | ||
Granted (in shares) | 90,072 | 0 | |
Vested (in shares) | (92,000) | 0 | |
Forfeited (in shares) | (136,394) | ||
Balance, end of period (in shares) | 269,626 | 407,948 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 25.94 | ||
Granted during the period (in dollars per share) | 24.98 | $ 34.45 | |
Forfeited (in dollars per share) | 25.70 | ||
Unvested, end of period (in dollars per share) | $ 26.14 | $ 25.94 | |
Weighted Average Remaining Term (in Years) | 3 years 9 months 11 days |
Segment Information - Allocatio
Segment Information - Allocation of Segment Revenues and Expenses (Details) $ in Millions | 2 Months Ended | 12 Months Ended | 16 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017segmentstate | Dec. 31, 2015USD ($) | Oct. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Number of business segments | segment | 2 | |||
Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Average unsecured debt allocation | 100.00% | 100.00% | ||
Consumer and Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Number of states in which branch operations are conducted | state | 44 | |||
Increase (decrease) in interest expense if debt allocation was in effect at beginning of year | $ 208 | |||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Increase (decrease) in interest expense if debt allocation was in effect at beginning of year | $ (208) | |||
Total Average Unsecured Debt Allocation | Consumer and Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Average unsecured debt allocation | 83.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | $ 857 | $ 808 | $ 772 | $ 759 | $ 768 | $ 770 | $ 741 | $ 831 | $ 3,196 | $ 3,110 | $ 1,930 | |
Interest expense | 204 | 207 | 203 | 202 | 201 | 215 | 214 | 226 | 816 | 856 | 715 | |
Provision for finance receivable losses | 231 | 243 | 236 | 245 | 258 | 263 | 214 | 197 | 955 | 932 | 716 | |
Net interest income after provision for finance receivable losses | 1,425 | 1,322 | 499 | |||||||||
Net gain on sale of SpringCastle interests | $ 167 | 0 | 167 | 0 | ||||||||
Other revenues | 560 | 606 | 262 | |||||||||
Acquisition-related transaction and integration expenses | 69 | 108 | 62 | |||||||||
Other expenses | 1,485 | 1,631 | 925 | |||||||||
Income (loss) before income tax expense (benefit) | 187 | $ 121 | $ 66 | $ 57 | 29 | $ 33 | $ 42 | $ 252 | 431 | 356 | (226) | |
Income before income taxes attributable to non-controlling interests | 28 | 127 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 431 | 328 | (353) | |||||||||
Assets | 19,433 | 18,123 | 19,433 | 18,123 | 21,190 | |||||||
Operating segments | Consumer and Insurance | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | 3,305 | 3,328 | 1,482 | |||||||||
Interest expense | 765 | 738 | 242 | |||||||||
Provision for finance receivable losses | 963 | 911 | 351 | |||||||||
Net interest income after provision for finance receivable losses | 1,577 | 1,679 | 889 | |||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Other revenues | 547 | 612 | 276 | |||||||||
Acquisition-related transaction and integration expenses | 66 | 100 | 16 | |||||||||
Other expenses | 1,382 | 1,503 | 804 | |||||||||
Income (loss) before income tax expense (benefit) | 688 | 345 | ||||||||||
Income before income taxes attributable to non-controlling interests | 0 | 0 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 676 | 688 | 345 | |||||||||
Assets | 16,955 | 15,539 | 16,955 | 15,539 | 16,023 | |||||||
Operating segments | Acquisitions and Servicing | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | 0 | 102 | 463 | |||||||||
Interest expense | 20 | 87 | ||||||||||
Provision for finance receivable losses | 14 | 68 | ||||||||||
Net interest income after provision for finance receivable losses | 0 | 68 | 308 | |||||||||
Net gain on sale of SpringCastle interests | 167 | |||||||||||
Other revenues | 42 | 49 | 58 | |||||||||
Acquisition-related transaction and integration expenses | 0 | 1 | 1 | |||||||||
Other expenses | 41 | 58 | 111 | |||||||||
Income (loss) before income tax expense (benefit) | 225 | 254 | ||||||||||
Income before income taxes attributable to non-controlling interests | 28 | 127 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 1 | 197 | 127 | |||||||||
Assets | 4 | 5 | 4 | 5 | 1,789 | |||||||
Other | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | 23 | 51 | 76 | |||||||||
Interest expense | 21 | 43 | 268 | |||||||||
Provision for finance receivable losses | 7 | 6 | (1) | |||||||||
Net interest income after provision for finance receivable losses | (5) | 2 | (191) | |||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Other revenues | 3 | (38) | 3 | |||||||||
Acquisition-related transaction and integration expenses | 6 | 27 | 48 | |||||||||
Other expenses | 33 | 27 | 48 | |||||||||
Income (loss) before income tax expense (benefit) | (90) | (284) | ||||||||||
Income before income taxes attributable to non-controlling interests | 0 | 0 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | (41) | (90) | (284) | |||||||||
Assets | 289 | 596 | 289 | 596 | 1,073 | |||||||
Eliminations | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | (5) | |||||||||
Provision for finance receivable losses | 0 | 0 | 0 | |||||||||
Net interest income after provision for finance receivable losses | 0 | 0 | 5 | |||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Other revenues | 0 | (11) | (57) | |||||||||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | |||||||||
Other expenses | 0 | (11) | (52) | |||||||||
Income (loss) before income tax expense (benefit) | 0 | |||||||||||
Income before income taxes attributable to non-controlling interests | 0 | 0 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 0 | 0 | 0 | |||||||||
Assets | 0 | 0 | 0 | 0 | 0 | |||||||
Segment to GAAP Adjustments | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Interest income | (132) | (371) | (91) | |||||||||
Interest expense | 30 | 55 | 123 | |||||||||
Provision for finance receivable losses | (15) | 1 | 298 | |||||||||
Net interest income after provision for finance receivable losses | (147) | (427) | (512) | |||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Other revenues | (32) | (6) | (18) | |||||||||
Acquisition-related transaction and integration expenses | (3) | (20) | (3) | |||||||||
Other expenses | 29 | 54 | 14 | |||||||||
Income (loss) before income tax expense (benefit) | (467) | (541) | ||||||||||
Income before income taxes attributable to non-controlling interests | 0 | 0 | ||||||||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | (205) | (467) | (541) | |||||||||
Assets | $ 2,185 | $ 1,983 | $ 2,185 | $ 1,983 | $ 2,305 |
Fair Value Measurements- FV & C
Fair Value Measurements- FV & CV Hierarchy Table (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Investment securities | $ 1,697 | $ 1,764 | |
Restricted cash and restricted cash equivalents | 498 | 568 | $ 676 |
Liabilities | |||
Long-term debt | 15,050 | 13,959 | |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 987 | 579 | |
Investment securities | 1,697 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 15,656 | 13,891 | |
Finance receivables held for sale | 139 | 159 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 12 | 35 | |
Liabilities | |||
Long-term debt | 15,625 | 14,498 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 987 | 579 | |
Investment securities | 1,697 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 14,260 | 13,043 | |
Finance receivables held for sale | 132 | 153 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 12 | 37 | |
Liabilities | |||
Long-term debt | 15,050 | 13,959 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 933 | 506 | |
Investment securities | 36 | 31 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 54 | 73 | |
Investment securities | 1,654 | 1,724 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 0 | 1 | |
Liabilities | |||
Long-term debt | 15,625 | 14,498 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 7 | 9 | |
Net finance receivables, less allowance for finance receivable losses | 15,656 | 13,891 | |
Finance receivables held for sale | 139 | 159 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 12 | 34 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy - Recurring Basis (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Available-for-sale securities | $ 1,616,000,000 | $ 1,664,000,000 |
Trading securities | 80,000,000 | 99,000,000 |
Preferred stock | 6,000,000 | 6,000,000 |
Investment securities | 1,697,000,000 | 1,764,000,000 |
Transfer from Level 1 Assets to Level 2 | 0 | 0 |
Transfer from Level 2 Assets to Level 1 | 0 | 0 |
Transfer from Level 1 Liabilities to Level 2 | 0 | 0 |
Transfers from Level 2 Liabilities to Level 1 | 0 | 0 |
Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents | 987,000,000 | 579,000,000 |
Investment securities | 1,697,000,000 | 1,764,000,000 |
Bonds | ||
Assets | ||
Available-for-sale securities | 1,578,000,000 | 1,629,000,000 |
Bonds | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,578,000,000 | |
Trading securities | 74,000,000 | 93,000,000 |
U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 28,000,000 | 31,000,000 |
Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 135,000,000 | 145,000,000 |
Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 60,000,000 | |
Corporate debt | ||
Assets | ||
Available-for-sale securities | 948,000,000 | 1,025,000,000 |
RMBS | ||
Assets | ||
Available-for-sale securities | 99,000,000 | 100,000,000 |
CMBS | ||
Assets | ||
Available-for-sale securities | 87,000,000 | 108,000,000 |
CDO/ABS | ||
Assets | ||
Available-for-sale securities | 96,000,000 | 102,000,000 |
Preferred stock | ||
Assets | ||
Available-for-sale securities | 14,000,000 | 16,000,000 |
Common Stock | ||
Assets | ||
Available-for-sale securities | 23,000,000 | 17,000,000 |
Common Stock | Portion at Other than Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 1,000,000 |
Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 2,000,000 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 933,000,000 | 506,000,000 |
Investment securities | 36,000,000 | 31,000,000 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 54,000,000 | 73,000,000 |
Investment securities | 1,654,000,000 | 1,724,000,000 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 7,000,000 | 9,000,000 |
Recurring basis | Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents in mutual funds | 709,000,000 | 307,000,000 |
Cash and cash equivalents | 54,000,000 | 73,000,000 |
Available-for-sale securities | 1,616,000,000 | 1,664,000,000 |
Trading securities | 80,000,000 | 99,000,000 |
Investment securities | 1,696,000,000 | 1,763,000,000 |
Restricted cash in mutual funds | 484,000,000 | 553,000,000 |
Total | 2,943,000,000 | 2,696,000,000 |
Recurring basis | Bonds | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,629,000,000 | |
Recurring basis | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 28,000,000 | 31,000,000 |
Recurring basis | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 135,000,000 | 145,000,000 |
Recurring basis | Certificates of deposit and commercial paper | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 60,000,000 | |
Recurring basis | Non-US government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 125,000,000 | 118,000,000 |
Trading securities | 1,000,000 | 1,000,000 |
Recurring basis | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 948,000,000 | 1,025,000,000 |
Trading securities | 68,000,000 | 85,000,000 |
Recurring basis | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 99,000,000 | 100,000,000 |
Trading securities | 1,000,000 | 1,000,000 |
Recurring basis | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 87,000,000 | 108,000,000 |
Trading securities | 0 | 1,000,000 |
Recurring basis | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 96,000,000 | 102,000,000 |
Trading securities | 4,000,000 | 5,000,000 |
Recurring basis | Preferred stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 14,000,000 | 16,000,000 |
Preferred stock | 6,000,000 | 6,000,000 |
Recurring basis | Common Stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 23,000,000 | 17,000,000 |
Recurring basis | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 2,000,000 |
Recurring basis | Level 1 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents in mutual funds | 709,000,000 | 307,000,000 |
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 30,000,000 | 25,000,000 |
Trading securities | 6,000,000 | 6,000,000 |
Investment securities | 36,000,000 | 31,000,000 |
Restricted cash in mutual funds | 484,000,000 | 553,000,000 |
Total | 1,229,000,000 | 891,000,000 |
Recurring basis | Level 1 | Bonds | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Certificates of deposit and commercial paper | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 1 | Non-US government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | Preferred stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 7,000,000 | 8,000,000 |
Preferred stock | 6,000,000 | 6,000,000 |
Recurring basis | Level 1 | Common Stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 23,000,000 | 17,000,000 |
Recurring basis | Level 1 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Cash and cash equivalents | 54,000,000 | 73,000,000 |
Available-for-sale securities | 1,582,000,000 | 1,633,000,000 |
Trading securities | 72,000,000 | 91,000,000 |
Investment securities | 1,654,000,000 | 1,724,000,000 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,708,000,000 | 1,797,000,000 |
Recurring basis | Level 2 | Bonds | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,575,000,000 | 1,625,000,000 |
Trading securities | 72,000,000 | 91,000,000 |
Recurring basis | Level 2 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 28,000,000 | 31,000,000 |
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 135,000,000 | 145,000,000 |
Recurring basis | Level 2 | Certificates of deposit and commercial paper | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 60,000,000 | |
Recurring basis | Level 2 | Non-US government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 125,000,000 | 118,000,000 |
Trading securities | 1,000,000 | 1,000,000 |
Recurring basis | Level 2 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 946,000,000 | 1,025,000,000 |
Trading securities | 66,000,000 | 83,000,000 |
Recurring basis | Level 2 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 99,000,000 | 100,000,000 |
Trading securities | 1,000,000 | 1,000,000 |
Recurring basis | Level 2 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 87,000,000 | 108,000,000 |
Trading securities | 0 | 1,000,000 |
Recurring basis | Level 2 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 95,000,000 | 98,000,000 |
Trading securities | 4,000,000 | 5,000,000 |
Recurring basis | Level 2 | Preferred stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 7,000,000 | 8,000,000 |
Preferred stock | 0 | 0 |
Recurring basis | Level 2 | Common Stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 4,000,000 | 6,000,000 |
Trading securities | 2,000,000 | 2,000,000 |
Investment securities | 6,000,000 | 8,000,000 |
Restricted cash in mutual funds | 0 | 0 |
Total | 6,000,000 | 8,000,000 |
Recurring basis | Level 3 | Bonds | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 3,000,000 | 4,000,000 |
Trading securities | 2,000,000 | 2,000,000 |
Recurring basis | Level 3 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Certificates of deposit and commercial paper | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 3 | Non-US government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 2,000,000 | 0 |
Trading securities | 2,000,000 | 2,000,000 |
Recurring basis | Level 3 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 4,000,000 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | Preferred stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Preferred stock | 0 | 0 |
Recurring basis | Level 3 | Common Stock | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | $ 1,000,000 | $ 2,000,000 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets measured at fair value on a non-recurring basis | ||
Debt carried at fair value | $ 0 | |
Non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | $ 164,000,000 | |
Impairment charges | 6,000,000 | |
Non-recurring basis | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 6,000,000 | 5,000,000 |
Impairment charges | 3,000,000 | 2,000,000 |
Non-recurring basis | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 159,000,000 | |
Impairment charges | 4,000,000 | |
Non-recurring basis | Level 1 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | |
Non-recurring basis | Level 1 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 1 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | |
Non-recurring basis | Level 2 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | |
Non-recurring basis | Level 2 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 2 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | |
Non-recurring basis | Level 3 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 164,000,000 | |
Non-recurring basis | Level 3 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | $ 6,000,000 | 5,000,000 |
Non-recurring basis | Level 3 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | $ 159,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 08, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 08, 2017 |
Subsequent Event [Line Items] | |||||||
Net loss on repurchases and repayments of debt | $ 29,000,000 | $ 17,000,000 | $ 0 | ||||
2019 OMFH Notes | Senior note | |||||||
Subsequent Event [Line Items] | |||||||
Issue Amount | $ 700,000,000 | ||||||
Interest rates (as a percent) | 6.75% | ||||||
2019 OMFH Notes | Senior note | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.375% | ||||||
Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Net loss on repurchases and repayments of debt | $ 1,200,000 | ||||||
Apollo-Värde Group | Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 54,937,500 | ||||||
Percentage of ownership after transaction | 40.60% |
Selected Quarterly Financial135
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 857 | $ 808 | $ 772 | $ 759 | $ 768 | $ 770 | $ 741 | $ 831 | $ 3,196 | $ 3,110 | $ 1,930 |
Interest expense | 204 | 207 | 203 | 202 | 201 | 215 | 214 | 226 | 816 | 856 | 715 |
Provision for finance receivable losses | 231 | 243 | 236 | 245 | 258 | 263 | 214 | 197 | 955 | 932 | 716 |
Other revenues | 146 | 152 | 121 | 141 | 147 | 158 | 165 | 303 | 560 | 773 | 262 |
Other expenses | 381 | 389 | 388 | 396 | 427 | 417 | 436 | 459 | 1,554 | 1,739 | 987 |
Income (loss) before income tax expense (benefit) | 187 | 121 | 66 | 57 | 29 | 33 | 42 | 252 | 431 | 356 | (226) |
Income tax expense (benefit) | 148 | 52 | 24 | 24 | 2 | 8 | 16 | 87 | 248 | 113 | (133) |
Net income (loss) | $ 39 | $ 69 | $ 42 | $ 33 | 27 | 25 | 26 | 165 | 183 | 243 | (93) |
Net income attributable to non-controlling interests | 0 | 0 | 0 | 28 | 28 | 127 | |||||
Net income (loss) attributable to OneMain Holdings, Inc. | $ 27 | $ 25 | $ 26 | $ 137 | $ 183 | $ 215 | $ (220) | ||||
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.29 | $ 0.52 | $ 0.31 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.02 | $ 1.35 | $ 1.60 | $ (1.72) |
Diluted (in dollars per share) | $ 0.29 | $ 0.51 | $ 0.30 | $ 0.25 | $ 0.20 | $ 0.19 | $ 0.19 | $ 1.01 | $ 1.35 | $ 1.59 | $ (1.72) |
Schedule I - Condensed Finan136
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 987 | $ 579 | $ 939 | |
Total assets | 19,433 | 18,123 | 21,190 | |
Liabilities and Shareholders’ Equity | ||||
Long-term debt | 15,050 | 13,959 | ||
Deferred and accrued taxes | 45 | 9 | ||
Total liabilities | 16,155 | 15,057 | ||
Total shareholders’ equity | 3,278 | 3,066 | 2,730 | $ 1,932 |
Total liabilities and shareholders’ equity | 19,433 | 18,123 | ||
Springleaf Holdings, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | $ 1 | $ 6 |
Investment in subsidiaries | 3,147 | 2,941 | ||
Note receivable from affiliate | 150 | 142 | ||
Total assets | 3,298 | 3,084 | ||
Liabilities and Shareholders’ Equity | ||||
Long-term debt | 1 | 0 | ||
Payable to affiliates | 16 | 15 | ||
Deferred and accrued taxes | 3 | 3 | ||
Total liabilities | 20 | 18 | ||
Total shareholders’ equity | 3,278 | 3,066 | ||
Total liabilities and shareholders’ equity | $ 3,298 | $ 3,084 |
Schedule I - Condensed Finan137
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statement of Operations | |||||||||||
Investment | $ 73 | $ 86 | $ 52 | ||||||||
Provision for income taxes | $ 148 | $ 52 | $ 24 | $ 24 | $ 2 | $ 8 | $ 16 | $ 87 | 248 | 113 | (133) |
Net income (loss) | $ 39 | $ 69 | $ 42 | $ 33 | $ 27 | $ 25 | $ 26 | $ 165 | 183 | 243 | (93) |
Other comprehensive income (loss), net of tax | 17 | 27 | (36) | ||||||||
Comprehensive income (loss) | 200 | 270 | (129) | ||||||||
Springleaf Holdings, Inc. | |||||||||||
Condensed Statement of Operations | |||||||||||
Interest income from affiliate | 9 | 8 | 13 | ||||||||
Investment | 0 | 0 | 1 | ||||||||
Operating expenses | 3 | 0 | 0 | ||||||||
Income before provision for income taxes | 6 | 8 | 14 | ||||||||
Provision for income taxes | 1 | 3 | 5 | ||||||||
Equity in undistributed net income (loss) from subsidiaries | 178 | 210 | (229) | ||||||||
Net income (loss) | 183 | 215 | (220) | ||||||||
Other comprehensive income (loss), net of tax | 17 | 27 | (36) | ||||||||
Comprehensive income (loss) | $ 200 | $ 242 | $ (256) |
Schedule I - Condensed Finan138
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from financing activities | |||
Sale of common stock, net of offering costs | $ 0 | $ 0 | $ 976 |
Cash and cash equivalents at beginning of period | 579 | 939 | |
Cash and cash equivalents at end of period | 987 | 579 | 939 |
Springleaf Holdings, Inc. | |||
Condensed Statement of Operations | |||
Net cash used for operating activities | 0 | 0 | 23 |
Cash flows from investing activities | |||
Capital contributions to subsidiaries | 0 | 0 | (1,100) |
Principal collections on note receivable from affiliate | 0 | 0 | 96 |
Net cash provided by (used for) investing activities | 0 | 0 | (1,004) |
Cash flows from financing activities | |||
Sale of common stock, net of offering costs | 0 | 0 | 976 |
Net cash provided by (used for) financing activities | 0 | 0 | 976 |
Net change in cash and cash equivalents | 0 | 0 | (5) |
Cash and cash equivalents at beginning of period | 1 | 1 | 6 |
Cash and cash equivalents at end of period | 1 | 1 | 1 |
Supplemental non-cash financing activities | |||
Increase in payable to affiliate for stock offering costs | $ 0 | $ 0 | $ 2 |
Schedule I - Narrative (Details
Schedule I - Narrative (Details) - USD ($) | Dec. 31, 2016 | Nov. 15, 2015 | Aug. 09, 2013 | Aug. 05, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||||||
Cash consideration | $ 0 | $ 0 | $ 3,520,000,000 | ||||
OneMain | |||||||
Related Party Transaction [Line Items] | |||||||
Cash consideration | $ 4,455,000,000 | $ 4,500,000,000 | |||||
Springleaf Holdings, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Interest income from affiliate | $ 9,000,000 | $ 8,000,000 | $ 13,000,000 | ||||
Springleaf Financial Holdings, LLC (or its predecessor AGF Holding Inc) | Springleaf Holdings, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Common units issued, shares | 100 | ||||||
Affiliated Entity | Master Notes Receivable, Affiliates | SFI | |||||||
Related Party Transaction [Line Items] | |||||||
Effective interest rate | 5.87% | ||||||
Affiliated Entity | Springleaf Holdings, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Common units issued, value | $ 1,000 |
Schedule I - Subsidiary Debt Gu
Schedule I - Subsidiary Debt Guarantee (Details) - USD ($) | Jan. 08, 2018 | Dec. 31, 2017 | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Apr. 11, 2016 | Dec. 03, 2014 | Dec. 30, 2013 |
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | $ 15,377,000,000 | |||||||
Senior Notes 5.625% | Senior note | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 5.625% | |||||||
Issue Amount | $ 875,000,000 | |||||||
Senior Notes 6.125% | Senior note | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 6.125% | 6.125% | ||||||
Issue Amount | $ 500,000,000 | $ 500,000,000 | ||||||
2019 OMFH Notes | Senior note | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 6.75% | |||||||
Issue Amount | $ 700,000,000 | |||||||
Guaranty Agreements | Senior note | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | 1,600,000,000 | |||||||
Guaranty Agreements | Senior Note 8.25%, due 2020 | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | 1,000,000,000 | |||||||
Interest rates (as a percent) | 8.25% | |||||||
Guaranty Agreements | Senior Notes 5.25 % Due 2019 | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | 700,000,000 | |||||||
Interest rates (as a percent) | 5.25% | |||||||
Guaranty Agreements | 8.250% Senior Notes due 2023 | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 8.25% | |||||||
Guaranty Agreements | 7.750% Senior Notes due 2021 | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 7.75% | |||||||
Guaranty Agreements | 6.00% Senior Notes due 2020 | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Interest rates (as a percent) | 6.00% | |||||||
Guaranty Agreements | Senior Notes 5.625% | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | 875,000,000 | |||||||
Guaranty Agreements | Senior Notes 6.125% | Springleaf Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Long-term debt, gross | 1,000,000,000 | |||||||
Guaranty Agreements | Senior Note 6.75 Percent due 2019 | Senior Note 7.25 Percent due 2021 | OneMain Financial Holdings, Inc. | ||||||||
Subsidiary debt guarantee | ||||||||
Senior notes | $ 1,500,000,000 | |||||||
Subsequent Event | 2019 OMFH Notes | Senior note | ||||||||
Subsidiary debt guarantee | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.375% |