Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | OneMain Holdings, Inc. | |
Entity Central Index Key | 1,584,207 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 135,787,008 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 556 | $ 987 |
Investment securities | 1,720 | 1,697 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $9.1 billion in 2018 and $9.8 billion in 2017) | 15,384 | 14,823 |
Other receivables | 124 | 134 |
Net finance receivables | 15,508 | 14,957 |
Unearned insurance premium and claim reserves | (611) | (590) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $459 million in 2018 and $465 million in 2017) | (702) | (697) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 14,195 | 13,670 |
Finance receivables held for sale | 123 | 132 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $569 million in 2018 and $482 million in 2017) | 587 | 498 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 409 | 440 |
Other assets | 628 | 587 |
Total assets | 19,640 | 19,433 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,054 | 15,050 |
Insurance claims and policyholder liabilities | 690 | 737 |
Deferred and accrued taxes | 3 | 45 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2018 and 2017) | 404 | 323 |
Total liabilities | 16,151 | 16,155 |
Commitments and contingent liabilities (Note 14) | ||
Shareholders’ equity: | ||
Common stock, par value $.01 per share; 2,000,000,000 shares authorized, 135,780,755 and 135,349,638 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 1 | 1 |
Additional paid-in capital | 1,674 | 1,560 |
Accumulated other comprehensive income (loss) | (21) | 11 |
Retained earnings | 1,835 | 1,706 |
Total shareholders’ equity | 3,489 | 3,278 |
Total liabilities and shareholders’ equity | $ 19,640 | $ 19,433 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Personal loans | $ 15,384 | $ 14,823 |
Allowance for finance receivable losses | 702 | 697 |
Restricted cash and restricted cash equivalents | 587 | 498 |
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,054 | 15,050 |
Other liabilities | $ 404 | $ 323 |
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) | 135,780,755 | 135,349,638 |
Common stock, shares outstanding (in shares) | 135,780,755 | 135,349,638 |
Personal loans | ||
Allowance for finance receivable losses | $ 678 | $ 673 |
Consolidated VIEs | ||
Allowance for finance receivable losses | 459 | 465 |
Restricted cash and restricted cash equivalents | 569 | 482 |
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 8,100 | 8,700 |
Other liabilities | 14 | 14 |
Consolidated VIEs | Personal loans | ||
Personal loans | $ 9,100 | $ 9,800 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Finance charges | $ 902 | $ 768 | $ 1,761 | $ 1,524 |
Finance receivables held for sale originated as held for investment | 3 | 4 | 6 | 7 |
Total interest income | 905 | 772 | 1,767 | 1,531 |
Interest expense | 220 | 203 | 420 | 405 |
Net interest income | 685 | 569 | 1,347 | 1,126 |
Provision for finance receivable losses | 260 | 236 | 514 | 481 |
Net interest income after provision for finance receivable losses | 425 | 333 | 833 | 645 |
Other revenues: | ||||
Insurance | 107 | 104 | 212 | 207 |
Investment | 19 | 20 | 32 | 39 |
Net loss on repurchases and repayments of debt | (7) | (27) | (8) | (28) |
Other | 21 | 24 | 41 | 44 |
Total other revenues | 140 | 121 | 277 | 262 |
Operating expenses: | ||||
Salaries and benefits | 306 | 191 | 500 | 377 |
Acquisition-related transaction and integration expenses | 28 | 14 | 39 | 37 |
Other operating expenses | 137 | 137 | 264 | 279 |
Insurance policy benefits and claims | 51 | 46 | 96 | 91 |
Total other expenses | 522 | 388 | 899 | 784 |
Income before income taxes | 43 | 66 | 211 | 123 |
Income taxes | 36 | 24 | 80 | 48 |
Net income | $ 7 | $ 42 | $ 131 | $ 75 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 135,678,914 | 135,249,610 | 135,637,825 | 135,234,143 |
Diluted (in shares) | 135,969,045 | 135,513,427 | 135,933,399 | 135,543,342 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.05 | $ 0.31 | $ 0.96 | $ 0.55 |
Diluted (in dollars per share) | $ 0.05 | $ 0.30 | $ 0.96 | $ 0.55 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7 | $ 42 | $ 131 | $ 75 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (13) | 10 | (37) | 20 |
Foreign currency translation adjustments | (2) | 4 | (5) | 4 |
Income tax effect: | ||||
Net unrealized gains (losses) on non-credit impaired available-for-sale securities | 3 | (4) | 7 | (7) |
Retirement plan liability adjustments | 2 | 0 | 2 | 0 |
Foreign currency translation adjustments | (1) | (2) | (1) | (2) |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (11) | 8 | (34) | 15 |
Reclassification adjustments included in net income: | ||||
Net realized gains on available-for-sale securities | 0 | (4) | 0 | (8) |
Income tax effect: | ||||
Net realized gains on available-for-sale securities | 0 | 1 | 0 | 2 |
Reclassification adjustments included in net income, net of tax | 0 | (3) | 0 | (6) |
Other comprehensive income (loss), net of tax | (11) | 5 | (34) | 9 |
Comprehensive income (loss) | $ (4) | $ 47 | $ 97 | $ 84 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2016 | $ 3,066 | $ 1 | $ 1,548 | $ (6) | $ 1,523 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense, net of forfeitures | 9 | 9 | |||
Withholding tax on share-based compensation | (5) | (5) | |||
Other comprehensive income (loss) | 9 | 9 | |||
Net income | 75 | 75 | |||
Balance at end of period at Jun. 30, 2017 | 3,154 | 1 | 1,552 | 3 | 1,598 |
Balance at beginning of period at Mar. 31, 2017 | (2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive income (loss) | 5 | ||||
Net income | 42 | ||||
Balance at end of period at Jun. 30, 2017 | 3,154 | 1 | 1,552 | 3 | 1,598 |
Balance at beginning of period at Dec. 31, 2017 | 3,278 | 1 | 1,560 | 11 | 1,706 |
Balance at end of period at Mar. 31, 2018 | (12) | ||||
Balance at beginning of period at Dec. 31, 2017 | 3,278 | 1 | 1,560 | 11 | 1,706 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-cash incentive compensation from SFH | 110 | 110 | |||
Share-based compensation expense, net of forfeitures | 13 | 13 | |||
Withholding tax on share-based compensation | (9) | (9) | |||
Other comprehensive income (loss) | (34) | (34) | |||
Impact of AOCI reclassification due to the Tax Act | 0 | 2 | (2) | ||
Net income | 131 | 131 | |||
Balance at end of period at Jun. 30, 2018 | 3,489 | 1 | 1,674 | (21) | 1,835 |
Balance at beginning of period at Mar. 31, 2018 | (12) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive income (loss) | (11) | ||||
Impact of AOCI reclassification due to the Tax Act | 2 | ||||
Net income | 7 | ||||
Balance at end of period at Jun. 30, 2018 | $ 3,489 | $ 1 | $ 1,674 | $ (21) | $ 1,835 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 131 | $ 75 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 514 | 481 |
Depreciation and amortization | 131 | 182 |
Deferred income tax charge (benefit) | 7 | (11) |
Net loss on repurchases and repayments of debt | 8 | 28 |
Non-cash incentive compensation from SFH | 110 | 0 |
Share-based compensation expense, net of forfeitures | 13 | 9 |
Other | 8 | 0 |
Cash flows due to changes in other assets and other liabilities | 22 | (24) |
Net cash provided by operating activities | 944 | 740 |
Cash flows from investing activities | ||
Net principal originations of finance receivables held for investment and held for sale | (1,116) | (884) |
Available-for-sale securities purchased | (394) | (351) |
Available-for-sale securities called, sold, and matured | 280 | 382 |
Trading and other securities called, sold, and matured | 20 | 6 |
Other, net | (30) | (7) |
Net cash used for investing activities | (1,240) | (854) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 3,739 | 2,633 |
Repayment of long-term debt | (3,776) | (2,254) |
Withholding tax on share-based compensation | (9) | (5) |
Net cash provided by (used for) financing activities | (46) | 374 |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (342) | 260 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,485 | 1,147 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,143 | 1,407 |
Supplemental cash flow information | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,485 | 1,147 |
Supplemental non-cash activities | ||
Transfer of finance receivables to real estate owned | 3 | 5 |
Net unsettled investment security dispositions (purchases) | $ (1) | $ (3) |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation 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. At December 31, 2017, prior to the transactions described below, Springleaf Financial Holdings LLC (“SFH”), owned approximately 44% of OMH’s common stock. SFH was owned primarily by a private equity fund managed by an affiliate of Fortress. On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with SFH and the Company to acquire from SFH 54,937,500 shares of OMH common stock, par value $ 0.01 per share, at a purchase price per share of $ 26.00 , representing the entire holdings of our stock beneficially owned by Fortress. This transaction closed on June 25, 2018 for an aggregate purchase price of approximately $ 1.4 billion in cash. The Share Purchase Agreement was filed as Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on January 4, 2018. Upon closing of the Apollo-Värde Transaction, we entered into an Amended and Restated Stockholders’ Agreement, the terms of which are described in our Current Report on Form 8-K, filed with the SEC on June 25, 2018. As disclosed in Note 21 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K, certain executives of the Company had previously been granted incentive units that only provide benefits (in the form of distributions) if SFH makes distributions to one or more of its common members that exceed specified amounts. In connection with the Apollo-Värde Transaction, certain executive officers who are holders of SFH incentive units received a distribution of approximately $ 106 million in the aggregate from SFH as a result of their ownership interests in SFH. Although the distribution was not made by the Company or its subsidiaries, in accordance with ASC Topic 710, Compensation-General , we recorded non-cash incentive compensation expense of approximately $ 106 million , with an equal and offsetting increase to additional paid-in-capital. The impact to the Company was non-cash, equity neutral and not tax deductible. On February 21, 2018, OMH entered into an underwriting agreement among OMH, SFH and Morgan Stanley & Co. LLC as underwriter in connection with the sale by SFH of 4,179,678 shares of its common stock. These shares were beneficially owned by AIG Capital Corporation (“AIG”), a subsidiary of American International Group, Inc., and represented the entire holdings of our stock beneficially owned by AIG. In connection with this sale of our common stock by SFH, certain executive officers who are holders of SFH incentive units, as described above, received a distribution of approximately $4 million in the first quarter of 2018. Consistent with the accounting for distribution from the Apollo-Värde Transaction described above, the Company recognized non-cash incentive compensation expense of approximately $4 million , with an equal and offsetting increase to additional paid-in-capital. Again, the impact to the Company was non-cash, equity neutral and not tax deductible. At June 30, 2018 , the Apollo-Värde Group owned approximately 40.5% of OMH’s common stock. OMH is a financial services holding company whose principal subsidiary is SFI. SFI’s principal subsidiary is SFC. On June 22, 2018, SFI entered into a contribution agreement with OMH, whereby OMH contributed all of the common interests of Independence to SFI. Immediately thereafter, SFI entered into a separate contribution agreement with SFC, pursuant to which SFI contributed all of the common interests of Independence to SFC. As a result of the contribution from SFI to SFC, Independence became a wholly owned direct subsidiary of SFC on June 22, 2018. Independence, through its wholly owned subsidiary OMFH and OMFH’s subsidiaries, and SFC engage in the consumer finance and insurance businesses. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. 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 2018 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2017 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed in Note 2 below. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY 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 ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded they do 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 for financial liabilities measured under the fair value option, 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. In February of 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall , which made technical corrections and improvements to the codification, specifically related to ASU 2016-01. The Company has adopted these ASUs as of 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 adopted all other amendments of these ASUs as of January 1, 2018 and presented this change on a retrospective basis for all periods presented. We concluded that these ASUs do 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. As the Company’s existing accounting policy was in accordance with the amendments of this ASU, we elected to early adopt as of January 1, 2018 and concluded that it does not have a material impact on our consolidated financial statements. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do not have a material impact on our consolidated financial statements. In February of 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassifications of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings from the passage of the Tax Act. This update requires additional disclosures describing the nature of the stranded tax effects. The amendments within this ASU become effective for the Company for fiscal years beginning after January 1, 2019, with early adoption permitted. We elected to early adopt as of April 1, 2018 and reclassified $2 million of stranded tax effects resulting in a decrease to retained earnings and an increase to accumulated other comprehensive income. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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 elected to early adopt as of January 1, 2018 and concluded that it does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED 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. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-02. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of implementing 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 approximately $180 million of minimum lease commitments from these operating leases (refer to Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K). The adoption of this ASU will result in an increase in our reported assets and liabilities on the consolidated balance sheets due to the recognition of the right-of-use asset and lease liability, 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. Therefore, we would expect changes in the allowance for finance receivable losses will be driven primarily by the nature and growth of the Company’s loan portfolio and the economic environment at that time. 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 continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to refine the development of 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 and the impact the adoption may have on any available-for-sale securities held by the Company. We believe the adoption of this ASU will have a material effect on our consolidated financial statements through an increase to the allowance for finance receivable losses and a corresponding one-time cumulative effect reduction to retained earnings in the consolidated balance sheet as of the beginning of the year of adoption. We are in the process of quantifying the expected impacts. We do not believe that any other accounting pronouncements issued during the six months ended June 30, 2018 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans and other receivables 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 . • Other receivables — consist of our loan portfolios in a liquidating status. We ceased originating real estate loans in 2012 and purchasing retail sales contracts and revolving retail accounts in 2013. We continue to service or sub-service the liquidating real estate loans and retail sales contracts and will provide revolving retail sales financing services on our revolving retail accounts. Beginning in 2018, we combined real estate and retail sales finance loans into “Other Receivables.” Previously, we presented real estate and retail sales finance loans as distinct receivable types. In order to conform to this new alignment, we have revised our prior period finance receivable disclosures. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Other Receivables Total June 30, 2018 Gross receivables (a)(b) $ 15,216 $ 123 $ 15,339 Unearned points and fees (176 ) — (176 ) Accrued finance charges 219 1 220 Deferred origination costs 125 — 125 Total $ 15,384 $ 124 $ 15,508 December 31, 2017 Gross receivables (a)(b) $ 14,664 $ 133 $ 14,797 Unearned points and fees (168 ) — (168 ) Accrued finance charges 210 1 211 Deferred origination costs 117 — 117 Total $ 14,823 $ 134 $ 14,957 (a) Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB and the remaining unearned discount, net of premium established at the time of purchase 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; • 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 and, if applicable, the remaining unearned premium, net of discount established at the time of purchase if previously purchased as a performing receivable. (b) As of January 1, 2018, we have reclassified unearned finance charges to gross receivables. To conform to this presentation, we have reclassified the prior period. At June 30, 2018 and December 31, 2017 , unused lines of credit extended to customers by the Company were immaterial . CREDIT QUALITY INDICATOR We consider the value and concentration of secured loans and the delinquency status of our finance receivables as our primary credit quality indicators. At June 30, 2018 and December 31, 2017 , 44% and 43% of our personal loans were secured by titled collateral, respectively. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and we transfer collection of these accounts to our centralized operations. At 90 days or more contractually past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Other Receivables Total June 30, 2018 Performing Current $ 14,766 $ 95 $ 14,861 30-59 days past due 193 9 202 60-89 days past due 133 3 136 Total performing 15,092 107 15,199 Nonperforming 90-179 days past due 284 4 288 180 days or more past due 8 13 21 Total nonperforming 292 17 309 Total $ 15,384 $ 124 $ 15,508 December 31, 2017 Performing Current $ 14,124 $ 104 $ 14,228 30-59 days past due 204 8 212 60-89 days past due 157 3 160 Total performing 14,485 115 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 $ 134 $ 14,957 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. 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 June 30, 2018 and December 31, 2017 , finance receivables held for sale totaled $123 million and $132 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 5 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) June 30, 2018 December 31, 2017 OM Loans Carrying amount, net of allowance $ 127 $ 176 Outstanding balance (a) 180 243 Allowance for purchased credit impaired finance receivable losses — 6 FA Loans (b) Carrying amount, net of allowance $ 53 $ 57 Outstanding balance (a) 90 94 Allowance for purchased credit impaired finance receivable losses 9 9 (a) Outstanding balance is defined as UPB of the loans with a net carrying amount. (b) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) June 30, 2018 December 31, 2017 Carrying amount $ 41 $ 44 Outstanding balance 68 72 The allowance for purchased credit impaired finance receivable losses reflects 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: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 OM Loans Balance at beginning of period $ 49 $ 48 $ 47 $ 59 Accretion (8 ) (9 ) (14 ) (20 ) Reclassifications from (to) nonaccretable difference * 11 10 19 10 Balance at end of period $ 52 $ 49 $ 52 $ 49 FA Loans Balance at beginning of period $ 52 $ 59 $ 53 $ 60 Accretion (1 ) (2 ) (2 ) (3 ) Reclassifications from (to) nonaccretable difference * — (2 ) — (2 ) Balance at end of period $ 51 $ 55 $ 51 $ 55 * Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. TDR FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Other Receivables (a) Total June 30, 2018 TDR gross finance receivables (b) $ 377 $ 136 $ 513 TDR net finance receivables 380 136 516 Allowance for TDR finance receivable losses 158 12 170 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 (a) Other Receivables held for sale included in the table above were as follows: (dollars in millions) June 30, December 31, 2017 TDR gross finance receivables $ 87 $ 90 TDR net finance receivables 87 91 (b) As defined earlier in this Note. As of June 30, 2018 , 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 Other Receivables * Total Three Months Ended June 30, 2018 TDR average net receivables $ 367 $ 137 $ 504 TDR finance charges recognized 11 2 13 Three Months Ended June 30, 2017 TDR average net receivables $ 197 $ 140 $ 337 TDR finance charges recognized 9 2 11 Six Months Ended June 30, 2018 TDR average net receivables $ 352 $ 138 $ 490 TDR finance charges recognized 22 4 26 Six Months Ended June 30, 2017 TDR average net receivables $ 175 $ 138 $ 313 TDR finance charges recognized 15 4 19 * Other Receivables held for sale included in the table above were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 TDR average net receivables $ 88 $ 91 $ 89 $ 90 TDR finance charges recognized 2 2 3 3 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 Other Receivables (a) Total Three Months Ended June 30, 2018 Pre-modification TDR net finance receivables $ 84 $ — $ 84 Post-modification TDR net finance receivables: Rate reduction $ 63 $ — $ 63 Other (b) 21 — 21 Total post-modification TDR net finance receivables $ 84 $ — $ 84 Number of TDR accounts 12,778 15 12,793 Three Months Ended June 30, 2017 Pre-modification TDR net finance receivables $ 115 $ 10 $ 125 Post-modification TDR net finance receivables: Rate reduction $ 79 $ 10 $ 89 Other (b) 35 — 35 Total post-modification TDR net finance receivables $ 114 $ 10 $ 124 Number of TDR accounts 14,583 350 14,933 Six Months Ended June 30, 2018 Pre-modification TDR net finance receivables $ 179 $ 2 $ 181 Post-modification TDR net finance receivables: Rate reduction $ 132 $ 2 $ 134 Other (b) 47 — 47 Total post-modification TDR net finance receivables $ 179 $ 2 $ 181 Number of TDR accounts 27,508 44 27,552 Six Months Ended June 30, 2017 Pre-modification TDR net finance receivables $ 159 $ 13 $ 172 Post-modification TDR net finance receivables: Rate reduction $ 118 $ 13 $ 131 Other (b) 39 — 39 Total post-modification TDR net finance receivables $ 157 $ 13 $ 170 Number of TDR accounts 21,021 414 21,435 (a) Other Receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. Personal loans held for investment that were modified as TDR personal loans within the previous 12 months and for which there was a default during the period to cause the TDR personal loans to be considered nonperforming (90 days or more past due) were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 TDR net finance receivables * $ 18 $ 30 $ 35 $ 42 Number of TDR accounts 2,622 4,805 5,341 6,598 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. TDR other receivables for the three and six months ended June 30, 2018 and 2017 that defaulted during the previous 12-month period were immaterial. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 6 Months Ended |
Jun. 30, 2018 | |
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 Other Receivables Total Three Months Ended June 30, 2018 Balance at beginning of period $ 665 $ 24 $ 689 Provision for finance receivable losses 261 (1 ) 260 Charge-offs (278 ) — (278 ) Recoveries 30 1 31 Balance at end of period $ 678 $ 24 $ 702 Three Months Ended June 30, 2017 Balance at beginning of period $ 646 $ 20 $ 666 Provision for finance receivable losses 235 1 236 Charge-offs (253 ) (2 ) (255 ) Recoveries 28 1 29 Balance at end of period $ 656 $ 20 $ 676 Six Months Ended June 30, 2018 Balance at beginning of period $ 673 $ 24 $ 697 Provision for finance receivable losses 515 (1 ) 514 Charge-offs (567 ) (1 ) (568 ) Recoveries 57 2 59 Balance at end of period $ 678 $ 24 $ 702 Six Months Ended June 30, 2017 Balance at beginning of period $ 669 $ 20 $ 689 Provision for finance receivable losses 479 2 481 Charge-offs (549 ) (3 ) (552 ) Recoveries 57 1 58 Balance at end of period $ 656 $ 20 $ 676 The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Other Receivables Total June 30, 2018 Allowance for finance receivable losses: Collectively evaluated for impairment $ 520 $ 3 $ 523 Purchased credit impaired finance receivables — 9 9 TDR finance receivables 158 12 170 Total $ 678 $ 24 $ 702 Finance receivables: Collectively evaluated for impairment $ 14,877 $ 54 $ 14,931 Purchased credit impaired finance receivables 127 21 148 TDR finance receivables 380 49 429 Total $ 15,384 $ 124 $ 15,508 Allowance for finance receivable losses as a percentage of finance receivables 4.41 % 19.25 % 4.53 % December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 532 $ 3 $ 535 Purchased credit impaired finance receivables 6 9 15 TDR finance receivables 135 12 147 Total $ 673 $ 24 $ 697 Finance receivables: Collectively evaluated for impairment $ 14,323 $ 63 $ 14,386 Purchased credit impaired finance receivables 182 22 204 TDR finance receivables 318 49 367 Total $ 14,823 $ 134 $ 14,957 Allowance for finance receivable losses as a percentage of finance receivables 4.53 % 18.27 % 4.66 % |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 6 Months Ended |
Jun. 30, 2018 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We reported finance receivables held for sale of $123 million at June 30, 2018 and $132 million at December 31, 2017 , which are carried at the lower of cost or fair value and consist entirely of real estate loans. At June 30, 2018 and December 31, 2017 , 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. We did not have any material transfers to or from finance receivables held for sale during the three and six months ended June 30, 2018 and 2017 . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
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 fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 23 $ — $ — $ 23 Obligations of states, municipalities, and political subdivisions 135 — (1 ) 134 Certificates of deposit and commercial paper 26 — — 26 Non-U.S. government and government sponsored entities 134 — (2 ) 132 Corporate debt 1,034 3 (26 ) 1,011 Mortgage-backed, asset-backed, and collateralized: RMBS 118 1 (3 ) 116 CMBS 83 — (1 ) 82 CDO/ABS 95 — (1 ) 94 Total $ 1,648 $ 4 $ (34 ) $ 1,618 December 31, 2017 Fixed maturity available-for-sale securities: 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 $ 1,574 $ 12 $ (8 ) $ 1,578 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 June 30, 2018 U.S. government and government sponsored entities $ 12 $ — $ 8 $ — $ 20 $ — Obligations of states, municipalities, and political subdivisions 84 (1 ) 17 — 101 (1 ) Non-U.S. government and government sponsored entities 63 (1 ) 57 (1 ) 120 (2 ) Corporate debt 741 (22 ) 99 (4 ) 840 (26 ) RMBS 80 (2 ) 32 (1 ) 112 (3 ) CMBS 42 — 33 (1 ) 75 (1 ) CDO/ABS 57 (1 ) 18 — 75 (1 ) Total $ 1,079 $ (27 ) $ 264 $ (7 ) $ 1,343 $ (34 ) December 31, 2017 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 $ 690 $ (4 ) $ 218 $ (4 ) $ 908 $ (8 ) * 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 1,872 and 1,229 investment securities in an unrealized loss position at June 30, 2018 and December 31, 2017 , 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 June 30, 2018 , 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 the three months ended June 30, 2018 , we did no t recognize any other-than-temporary impairment credit losses and during the six months ended June 30, 2018 we recognized less than $1 million of other-than-temporary impairment credit losses on our available-for-sale securities in investment revenues. During the three and six months ended June 30, 2017 , we did no t recognize any other-than-temporary impairment credit losses on our available-for-sale securities in investment revenues. During the three and six months ended June 30, 2018 and 2017 , 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. The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales and redemptions $ 69 $ 167 $ 140 $ 280 Realized gains $ — $ 5 $ — $ 9 Realized losses — (1 ) — (1 ) Net realized gains (losses) $ — $ 4 $ — $ 8 Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2018 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 $ 148 $ 148 Due after 1 year through 5 years 596 604 Due after 5 years through 10 years 385 396 Due after 10 years 197 204 Mortgage-backed, asset-backed, and collateralized securities 292 296 Total $ 1,618 $ 1,648 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 $500 million and $537 million at June 30, 2018 and December 31, 2017 , respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) June 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 51 68 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CDO/ABS 3 4 Total bonds 56 74 Preferred stock * 22 20 Common stock * 23 23 Other long-term investments 1 1 Total $ 102 $ 118 * 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. Net unrealized losses on other securities held at June 30, 2018 and 2017 , were less than $1 million and $3 million for the three and six months ended June 30, 2018 , respectively, and were less than $1 million for the three and six months ended June 30, 2017 . Net realized gains and losses on other securities sold or redeemed during the 2018 and 2017 periods were immaterial for the three and six months ended June 30, 2018 and 2017 . We report these gains and losses in investment revenues. |
Transactions with Affiliates
Transactions with Affiliates | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates Upon closing of the Apollo-Värde Transaction, on June 25, 2018, Fortress and its affiliates are no longer considered related-parties or affiliates. See Note 1 for additional information regarding the Apollo-Värde Transaction. 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, prior to the closing of the Apollo-Värde Transaction, were immaterial for the three and six months ended June 30, 2018 and 2017 . SERVICING AGREEMENT In 2016, we sold our 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 as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust pursuant to a servicing agreement. Prior to the closing of the Apollo-Värde Transaction, servicing fees revenue totaled $8 million and $16 million for the three and six months ended June 30, 2018 , respectively, compared to $10 million and $20 million for the three and six months ended June 30, 2017 , respectively. At June 30, 2018 and December 31, 2017 , the servicing fees receivable from the SpringCastle Funding Trust that were incurred prior to the closing of the Apollo-Värde Transaction totaled $ 2 million and $3 million , respectively. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at June 30, 2018 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% 4.10 % Remainder of 2018 — — — — 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024-2067 — 2,149 350 2,499 Securitizations (b) 8,119 — — 8,119 Total principal maturities $ 8,119 $ 6,965 $ 350 $ 15,434 Total carrying amount $ 8,094 $ 6,788 $ 172 $ 15,054 Debt issuance costs (c) $ (24 ) $ (55 ) $ — $ (79 ) (a) The interest rates shown are the range of contractual rates in effect at June 30, 2018 . The interest rate on the UPB of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 4.10% as of June 30, 2018 . (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 June 30, 2018 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (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 $24 million at June 30, 2018 and are reported in other assets. SFC’S OFFERING OF 7.125% SENIOR NOTES DUE 2026 On May 11, 2018, SFC issued $900 million aggregate principal amount of 7.125% Senior Notes due 2026 (the “ 7.125% SFC Notes”) under the SFC Senior Notes Indentures, pursuant to which OMH provided a guarantee of the 7.125% SFC Notes on an unsecured basis. SFC used a portion of the net proceeds from this offering to redeem the remaining $400 million in aggregate principal amount of the OMFH 7.25% Senior Notes due 2021 and will use the remaining proceeds for other general corporate purposes, which may include other debt repurchases and repayments. SFC’S OFFERING OF 6.875% SENIOR NOTES DUE 2025 On March 12, 2018, SFC issued $1.25 billion aggregate principal amount of 6.875% Senior Notes due 2025 (the “ 6.875% SFC Notes”) under the SFC Senior Notes Indentures, pursuant to which OMH provided a guarantee of the 6.875% SFC Notes on an unsecured basis. SFC used the net proceeds from the sale of the 6.875% SFC Notes for general corporate purposes, which included debt repurchases. The 6.875% and 7.125% 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 SFC Senior Notes Indentures. The notes will not have the benefit of any sinking fund. GUARANTY AGREEMENTS OMH entered into the SFC Base Indenture and the following SFC supplemental indentures, pursuant to which OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis the payments of principal, premium (if any) and interest on the following notes: Guarantee Agreement Date Entered SFC Supplemental Indentures Interest rate June 30, 2018 Outstanding balance (dollars in millions) 7.125% SFC Notes 5/11/2018 SFC Sixth Supplemental Indenture 7.125% $ 900 6.875% SFC Notes 3/12/2018 SFC Fifth Supplemental Indenture 6.875% 1,250 5.625% SFC Notes 12/8/2017 SFC Fourth Supplemental Indenture 5.625% 875 6.125% SFC Notes 5/15/2017 SFC Third Supplemental Indenture 6.125% 1,000 8.25% SFC Notes 4/11/2016 SFC Second Supplemental Indenture 8.25% 1,000 5.25% SFC Notes 12/3/2014 SFC First Supplemental Indenture 5.25% 700 The supplemental indentures listed above 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 SFC Senior Notes Indentures also provide 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. We describe our guarantee agreements in Note 12 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. 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 consisted 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 June 30, 2018 , $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. On November 8, 2016, OMH entered into the OMFH 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 up to the point of redemption of the OMFH Notes described below, OMFH satisfied 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 on January 8, 2018, all $ 700 million outstanding principal amount of OMFH Notes due 2019 at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018. In connection with the redemption, we recognized $ 1 million of net loss on repurchases and repayments of debt for the six months ended June 30, 2018. On March 19, 2018, OMFH provided notice to note holders to redeem $400 million in aggregate principal amount of OMFH Notes due 2021 on April 18, 2018, at a redemption price in cash equal to 103.625% , plus accrued and unpaid interest to the redemption date. The notes were redeemed on April 18, 2018. In connection with the redemption, we recognized $4 million of net loss on repurchases and repayments of debt for the six months ended June 30, 2018. On May 14, 2018, OMFH provided notice to note holders to redeem the remaining $400 million in aggregate principal amount of OMFH Notes due 2021 on June 13, 2018, at a redemption price in cash equal to 103.625% , plus accrued and unpaid interest to the redemption date. In connection with the redemption, we recognized $3 million of net loss on repurchases and repayments of debt for the six months ended June 30, 2018. On June 13, 2018, OMFH redeemed the remaining principal amount of the OMFH Notes due 2021 and received notice of satisfaction and discharge with respect to the OMFH Notes. As of June 30, 2018, OMFH is no longer subject to the covenants or other terms of the OMFH Indenture. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that we are 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. See Note 3 and Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K for more detail regarding VIEs. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) June 30, December 31, Assets Cash and cash equivalents $ 3 $ 4 Finance receivables: Personal loans 9,135 9,769 Allowance for finance receivable losses 459 465 Restricted cash and restricted cash equivalents 569 482 Other assets 24 20 Liabilities Long-term debt $ 8,094 $ 8,688 Other liabilities 15 15 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 June 30, 2018 consisted of the following: (dollars in millions) Issue Amount (a) Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 817 3.60 % 3 years 02/26/15 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/15 05/2028 SLFT 2016-A (b) 532 500 3.10 % 2 years 12/14/16 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/17 07/2030 OMFIT 2014-2 1,185 164 5.06 % 2 years 07/30/14 09/2024 OMFIT 2015-1 1,229 834 4.00 % 3 years 02/05/15 03/2026 OMFIT 2015-2 1,250 462 3.91 % 2 years 05/21/15 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/15 11/2028 OMFIT 2016-1 (b) 500 459 4.01 % 3 years 02/10/16 02/2029 OMFIT 2016-2 (b) 890 616 4.63 % 2 years 03/23/16 03/2028 OMFIT 2016-3 (b) 350 317 4.33 % 5 years 06/07/16 06/2031 OMFIT 2017-1 (b) 947 900 2.73 % 2 years 09/06/17 09/2032 OMFIT 2018-1 (c) 632 600 3.60 % 3 years 02/28/18 03/2029 OMFIT 2018-2 (d) 368 350 3.87 % 5 years 03/19/18 03/2033 Total consumer securitizations 7,245 Auto Securitizations: ODART 2016-1 (b) 754 99 3.70 % — 07/19/16 Various ODART 2017-1 (b) 300 200 2.76 % 1 year 02/01/17 Various ODART 2017-2 (b) 605 575 2.63 % 1 year 12/11/17 Various Total auto securitizations 874 Total secured structured financings $ 8,119 (a) Issue Amount includes the retained interest amounts as applicable and as noted below while the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts. (b) For these borrowings, we describe our consumer and auto securitizations initial retained amounts in Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. (c) OMFIT 2018-1 Securitization. We initially retained approximately $32 million of the asset-backed notes. (d) OMFIT 2018-2 Securitization. We initially retained approximately $18 million of the asset-backed notes. REVOLVING CONDUIT FACILITIES As of June 30, 2018 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Advance Maximum Amount Revolving Collateral Type Due and Payable (a) Seine River Funding, LLC $ 500 $ — December 2019 Personal loans December 2022 Rocky River Funding, LLC (b) 400 — June 2020 Personal loans July 2021 Thur River Funding, LLC 350 — June 2020 Personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 Personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 Personal loans and auto loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 Auto loans October 2021 OneMain Financial Funding VIII, LLC (c) 450 — January 2021 Personal loans February 2023 OneMain Financial Auto Funding I, LLC (d) 850 — June 2021 Auto loans July 2028 OneMain Financial Funding VII, LLC (e) 850 — June 2021 Personal loans July 2023 Thayer Brook Funding, LLC (f) 250 — July 2021 Auto loans August 2022 Total $ 5,350 $ — (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) On June 27, 2018, we amended the loan and security agreement with Rocky River Funding, LLC to, among other things, (i) increase the advance maximum balance from $250 million to $400 million and (ii) extend the revolving period ending September 2019 to June 2020 thereby extending the final maturity to July 2021. (c) On February 2, 2018, we entered into a loan and security agreement with OneMain Financial Funding VIII, LLC concurrently with the voluntary termination of the note purchase agreement with the OneMain Financial B6 Warehouse Trust. (d) On June 26, 2018, we amended the loan and security agreement with OneMain Financial Auto Funding I, LLC, to, among other things, (i) increase the advance maximum balance from $750 million to $850 million and (ii) extend the revolving period ending October 2020 to June 2021 thereby extending the final maturity to July 2028. (e) On May 31, 2018, we amended the loan and security agreement with OneMain Financial Funding VII, LLC to, among other things, (i) increase the advance maximum balance from $650 million to $850 million and (ii) extend the revolving period ending October 2019 to June 2021 thereby extending the final maturity to July 2023. (f) On June 28, 2018, we entered into a new loan and security agreement with Thayer Brook Funding, LLC. VIE INTEREST EXPENSE Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three and six months ended June 30, 2018 totaled $87 million and $173 million , compared to $78 million and $158 million for the three and six months ended June 30, 2017 . |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Insurance | Insurance Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable) were as follows: At or for the (dollars in millions) 2018 2017 Balance at beginning of period $ 154 $ 158 Less reinsurance recoverables (23 ) (26 ) Net balance at beginning of period 131 132 Additions for losses and loss adjustment expenses incurred to: Current year 102 96 Prior years * (5 ) 2 Total 97 98 Reductions for losses and loss adjustment expenses paid related to: Current year (47 ) (45 ) Prior years (51 ) (58 ) Total (98 ) (103 ) Net balance at end of period 130 127 Plus reinsurance recoverables 4 25 Transfer of reserves (19 ) — Balance at end of period $ 115 $ 152 * Reflects (i) a redundancy in the prior years’ net reserves of $5 million at June 30, 2018 primarily due to favorable development of credit disability and unemployment claims during the year and (ii) a shortfall in the prior years’ net reserves of $2 million at June 30, 2017 primarily due to adverse development on ordinary life and credit disability during the year. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of earnings per share was as follows: (dollars in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator (basic and diluted): Net income attributable to OneMain Holdings, Inc. $ 7 $ 42 $ 131 $ 75 Denominator: Weighted average number of shares outstanding (basic) 135,678,914 135,249,610 135,637,825 135,234,143 Effect of dilutive securities * 290,131 263,817 295,574 309,199 Weighted average number of shares outstanding (diluted) 135,969,045 135,513,427 135,933,399 135,543,342 Earnings per share: Basic $ 0.05 $ 0.31 $ 0.96 $ 0.55 Diluted $ 0.05 $ 0.30 $ 0.96 $ 0.55 * We have excluded the following shares in the diluted earnings per share calculation for the three and six months ended June 30, 2018 and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Performance-based shares 45,467 25,089 71,314 27,887 Service-based shares 159,698 795,321 240,467 775,476 Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of 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) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [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) Three Months Ended June 30, 2018 Balance at beginning of period $ (16 ) $ 4 $ — $ (12 ) Other comprehensive income (loss) before reclassifications (10 ) 2 (3 ) (11 ) Impact of AOCI reclassification due to the Tax Act 2 (3 ) 3 2 Balance at end of period $ (24 ) $ 3 $ — $ (21 ) Three Months Ended June 30, 2017 Balance at beginning of period $ 3 $ (4 ) $ (1 ) $ (2 ) Other comprehensive income before reclassifications 6 — 2 8 Reclassification adjustments from accumulated other comprehensive loss (3 ) — — (3 ) Balance at end of period $ 6 $ (4 ) $ 1 $ 3 Six Months Ended June 30, 2018 Balance at beginning of period $ 4 $ 4 $ 3 $ 11 Other comprehensive income (loss) before reclassifications (30 ) 2 (6 ) (34 ) Impact of AOCI reclassification due to the Tax Act 2 (3 ) 3 2 Balance at end of period $ (24 ) $ 3 $ — $ (21 ) Six Months Ended June 30, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 13 — 2 15 Reclassification adjustments from accumulated other comprehensive loss (6 ) — — (6 ) Balance at end of period $ 6 $ (4 ) $ 1 $ 3 Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ — $ 4 $ — $ 8 Income tax effect — (1 ) — (2 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ — $ 3 $ — $ 6 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We had a net deferred tax asset of $142 million and $143 million at June 30, 2018 and December 31, 2017 , respectively. The effective tax rate for the six months ended June 30, 2018 was 38.0% , compared to 39.0% for the same period in 2017 . The effective tax rate for the six months ended June 30, 2018 differed from the federal statutory rate of 21% primarily due to the effect of discrete tax expense for non-deductible compensation and state income taxes. The effective tax rate for the six months ended June 30, 2017 differed from the then-applicable federal statutory rate of 35% primarily due to the effect of state income taxes and discrete expense from share-based compensation. We are currently under examination of our U.S. federal tax return for the years 2012 and 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. Our gross unrecognized tax benefits, including related interest and penalties, totaled $16 million at June 30, 2018 and $15 million at December 31, 2017 . We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. On December 22, 2017, President Trump signed into law the Tax Act, which contains substantial changes to the Internal Revenue Code effective January 1, 2018, including a reduction in the federal corporate tax rate from 35% to 21% . |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed 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 condensed 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 OneMain Acquisition 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 June 30, 2018 , 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. During the three and six months ended June 30, 2018 and 2017 , we had no material repurchase activity related to these sales and no material activity related to our sales recourse obligations. At June 30, 2018 , 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 | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans During the three and six months ended June 30, 2018 and 2017 , the components of net periodic benefit cost with respect to our defined benefit pension plans were immaterial. We do not currently fund post retirement benefits. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At June 30, 2018 , our two segments were Consumer and Insurance and Acquisitions and Servicing . The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include our liquidating real estate loan portfolio and our liquidating retail sales finance portfolio. 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). The accounting policies of the segments are the same as those disclosed in Note 3 and Note 22 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. The following tables present information about the Company’s segments, as well as reconciliations to the condensed consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total Three Months Ended June 30, 2018 Interest income $ 911 $ — $ 5 $ (11 ) $ 905 Interest expense 212 — 5 3 220 Provision for finance receivable losses 261 — (3 ) 2 260 Net interest income after provision for finance receivable losses 438 — 3 (16 ) 425 Other revenues 106 8 — 26 140 Acquisition-related transaction and integration expenses 22 — — 6 28 Other expenses 368 8 112 6 494 Income (loss) before income tax expense (benefit) $ 154 $ — $ (109 ) $ (2 ) $ 43 Three Months Ended June 30, 2017 Interest income $ 801 $ — $ 6 $ (35 ) $ 772 Interest expense 189 — 5 9 203 Provision for finance receivable losses 234 — — 2 236 Net interest income after provision for finance receivable losses 378 — 1 (46 ) 333 Other revenues 127 10 1 (17 ) 121 Acquisition-related transaction and integration expenses 14 — — — 14 Other expenses 347 10 10 7 374 Income (loss) before income tax expense (benefit) $ 144 $ — $ (8 ) $ (70 ) $ 66 At or for the Six Months Ended June 30, 2018 Interest income $ 1,784 $ — $ 9 $ (26 ) $ 1,767 Interest expense 406 — 9 5 420 Provision for finance receivable losses 519 — (5 ) — 514 Net interest income after provision for finance receivable losses 859 — 5 (31 ) 833 Other revenues 211 17 (2 ) 51 277 Acquisition-related transaction and integration expenses 32 — — 7 39 Other expenses 711 16 122 11 860 Income (loss) before income tax expense (benefit) $ 327 $ 1 $ (119 ) $ 2 $ 211 Assets $ 17,258 $ — $ 248 $ 2,134 $ 19,640 At or for the Six Months Ended June 30, 2017 Interest income $ 1,599 $ — $ 12 $ (80 ) $ 1,531 Interest expense 375 — 11 19 405 Provision for finance receivable losses 473 — 1 7 481 Net interest income after provision for finance receivable losses 751 — — (106 ) 645 Other revenues 264 22 1 (25 ) 262 Acquisition-related transaction and integration expenses 34 — 6 (3 ) 37 Other expenses 695 21 16 15 747 Income (loss) before income tax expense (benefit) $ 286 $ 1 $ (21 ) $ (143 ) $ 123 Assets $ 16,420 $ 5 $ 352 $ 1,921 $ 18,698 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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. The accounting policies of our Fair Value Measurements are the same as those disclosed in Note 3 and Note 23 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 June 30, 2018 Assets Cash and cash equivalents $ 524 $ 32 $ — $ 556 $ 556 Investment securities 38 1,677 5 1,720 1,720 Net finance receivables, less allowance for finance receivable losses — — 16,198 16,198 14,806 Finance receivables held for sale — — 133 133 123 Restricted cash and restricted cash equivalents 587 — — 587 587 Other assets * — — 11 11 11 Liabilities Long-term debt $ — $ 15,450 $ — $ 15,450 $ 15,054 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 * Other assets include commercial mortgage loans and escrow advance receivable. 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 * June 30, 2018 Assets Cash equivalents in mutual funds $ 368 $ — $ — $ 368 Cash equivalents in securities — 32 — 32 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 23 — 23 Obligations of states, municipalities, and political subdivisions — 134 — 134 Certificates of deposit and commercial paper — 26 — 26 Non-U.S. government and government sponsored entities — 132 — 132 Corporate debt — 1,009 2 1,011 RMBS — 116 — 116 CMBS — 82 — 82 CDO/ABS — 93 1 94 Total available-for-sale securities — 1,615 3 1,618 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 50 1 51 RMBS — 1 — 1 CDO/ABS — 3 — 3 Total bonds — 55 1 56 Preferred stock 15 7 — 22 Common stock 23 — — 23 Other long-term investments — — 1 1 Total other securities 38 62 2 102 Total investment securities 38 1,677 5 1,720 Restricted cash in mutual funds 570 — — 570 Total $ 976 $ 1,709 $ 5 $ 2,690 * Due to the insignificant activity within the Level 3 assets during the three and six months ended June 30, 2018 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. Fair Value Measurements 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 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 available-for-sale securities (b) — 1,575 3 1,578 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 13 7 — 20 Common stock 23 — — 23 Other long-term investments — — 1 1 Total other securities 36 79 3 118 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. We had no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2018 . FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial for the three and six months ended June 30, 2018 and 2017 . FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 23 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K for information regarding our methods and assumptions used to estimate fair value. |
Business and Basis of Present25
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. 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 2018 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2017 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed in Note 2 below. |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED AND TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS RECENTLY 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 ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded they do 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 for financial liabilities measured under the fair value option, 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. In February of 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall , which made technical corrections and improvements to the codification, specifically related to ASU 2016-01. The Company has adopted these ASUs as of 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 adopted all other amendments of these ASUs as of January 1, 2018 and presented this change on a retrospective basis for all periods presented. We concluded that these ASUs do 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. As the Company’s existing accounting policy was in accordance with the amendments of this ASU, we elected to early adopt as of January 1, 2018 and concluded that it does not have a material impact on our consolidated financial statements. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do not have a material impact on our consolidated financial statements. In February of 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassifications of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings from the passage of the Tax Act. This update requires additional disclosures describing the nature of the stranded tax effects. The amendments within this ASU become effective for the Company for fiscal years beginning after January 1, 2019, with early adoption permitted. We elected to early adopt as of April 1, 2018 and reclassified $2 million of stranded tax effects resulting in a decrease to retained earnings and an increase to accumulated other comprehensive income. 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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. We adopted the amendments of this ASU as of January 1, 2018 and concluded that they do 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 elected to early adopt as of January 1, 2018 and concluded that it does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED 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. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-02. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of implementing 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 approximately $180 million of minimum lease commitments from these operating leases (refer to Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K). The adoption of this ASU will result in an increase in our reported assets and liabilities on the consolidated balance sheets due to the recognition of the right-of-use asset and lease liability, 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. Therefore, we would expect changes in the allowance for finance receivable losses will be driven primarily by the nature and growth of the Company’s loan portfolio and the economic environment at that time. 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 continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to refine the development of 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 and the impact the adoption may have on any available-for-sale securities held by the Company. We believe the adoption of this ASU will have a material effect on our consolidated financial statements through an increase to the allowance for finance receivable losses and a corresponding one-time cumulative effect reduction to retained earnings in the consolidated balance sheet as of the beginning of the year of adoption. We are in the process of quantifying the expected impacts. We do not believe that any other accounting pronouncements issued during the six months ended June 30, 2018 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
SEGMENT INFORMATION | Our segments coincide with how our businesses are managed. At June 30, 2018 , our two segments were Consumer and Insurance and Acquisitions and Servicing . The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include our liquidating real estate loan portfolio and our liquidating retail sales finance portfolio. 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). The accounting policies of the segments are the same as those disclosed in Note 3 and Note 22 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Other Receivables Total June 30, 2018 Gross receivables (a)(b) $ 15,216 $ 123 $ 15,339 Unearned points and fees (176 ) — (176 ) Accrued finance charges 219 1 220 Deferred origination costs 125 — 125 Total $ 15,384 $ 124 $ 15,508 December 31, 2017 Gross receivables (a)(b) $ 14,664 $ 133 $ 14,797 Unearned points and fees (168 ) — (168 ) Accrued finance charges 210 1 211 Deferred origination costs 117 — 117 Total $ 14,823 $ 134 $ 14,957 (a) Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB and the remaining unearned discount, net of premium established at the time of purchase 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; • 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 and, if applicable, the remaining unearned premium, net of discount established at the time of purchase if previously purchased as a performing receivable. (b) As of January 1, 2018, we have reclassified unearned finance charges to gross receivables. To conform to this presentation, we have reclassified the prior period. |
Summary of net finance receivables by type and 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 Other Receivables Total June 30, 2018 Performing Current $ 14,766 $ 95 $ 14,861 30-59 days past due 193 9 202 60-89 days past due 133 3 136 Total performing 15,092 107 15,199 Nonperforming 90-179 days past due 284 4 288 180 days or more past due 8 13 21 Total nonperforming 292 17 309 Total $ 15,384 $ 124 $ 15,508 December 31, 2017 Performing Current $ 14,124 $ 104 $ 14,228 30-59 days past due 204 8 212 60-89 days past due 157 3 160 Total performing 14,485 115 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 $ 134 $ 14,957 |
Schedule of purchased credit impaired finance receivables held for investment and held for sale | Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) June 30, 2018 December 31, 2017 OM Loans Carrying amount, net of allowance $ 127 $ 176 Outstanding balance (a) 180 243 Allowance for purchased credit impaired finance receivable losses — 6 FA Loans (b) Carrying amount, net of allowance $ 53 $ 57 Outstanding balance (a) 90 94 Allowance for purchased credit impaired finance receivable losses 9 9 (a) Outstanding balance is defined as UPB of the loans with a net carrying amount. (b) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) June 30, 2018 December 31, 2017 Carrying amount $ 41 $ 44 Outstanding balance 68 72 |
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) June 30, 2018 December 31, 2017 Carrying amount $ 41 $ 44 Outstanding balance 68 72 |
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 OM Loans Balance at beginning of period $ 49 $ 48 $ 47 $ 59 Accretion (8 ) (9 ) (14 ) (20 ) Reclassifications from (to) nonaccretable difference * 11 10 19 10 Balance at end of period $ 52 $ 49 $ 52 $ 49 FA Loans Balance at beginning of period $ 52 $ 59 $ 53 $ 60 Accretion (1 ) (2 ) (2 ) (3 ) Reclassifications from (to) nonaccretable difference * — (2 ) — (2 ) Balance at end of period $ 51 $ 55 $ 51 $ 55 * Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. |
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 Other Receivables (a) Total June 30, 2018 TDR gross finance receivables (b) $ 377 $ 136 $ 513 TDR net finance receivables 380 136 516 Allowance for TDR finance receivable losses 158 12 170 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 (a) Other Receivables held for sale included in the table above were as follows: (dollars in millions) June 30, December 31, 2017 TDR gross finance receivables $ 87 $ 90 TDR net finance receivables 87 91 (b) As defined earlier in this Note. |
TDR finance receivables held for sale | Other Receivables held for sale included in the table above were as follows: (dollars in millions) June 30, December 31, 2017 TDR gross finance receivables $ 87 $ 90 TDR net finance receivables 87 91 |
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale | TDR average net receivables 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 Other Receivables * Total Three Months Ended June 30, 2018 TDR average net receivables $ 367 $ 137 $ 504 TDR finance charges recognized 11 2 13 Three Months Ended June 30, 2017 TDR average net receivables $ 197 $ 140 $ 337 TDR finance charges recognized 9 2 11 Six Months Ended June 30, 2018 TDR average net receivables $ 352 $ 138 $ 490 TDR finance charges recognized 22 4 26 Six Months Ended June 30, 2017 TDR average net receivables $ 175 $ 138 $ 313 TDR finance charges recognized 15 4 19 * Other Receivables held for sale included in the table above were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 TDR average net receivables $ 88 $ 91 $ 89 $ 90 TDR finance charges recognized 2 2 3 3 |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale | Other Receivables held for sale included in the table above were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 TDR average net receivables $ 88 $ 91 $ 89 $ 90 TDR finance charges recognized 2 2 3 3 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Other Receivables (a) Total Three Months Ended June 30, 2018 Pre-modification TDR net finance receivables $ 84 $ — $ 84 Post-modification TDR net finance receivables: Rate reduction $ 63 $ — $ 63 Other (b) 21 — 21 Total post-modification TDR net finance receivables $ 84 $ — $ 84 Number of TDR accounts 12,778 15 12,793 Three Months Ended June 30, 2017 Pre-modification TDR net finance receivables $ 115 $ 10 $ 125 Post-modification TDR net finance receivables: Rate reduction $ 79 $ 10 $ 89 Other (b) 35 — 35 Total post-modification TDR net finance receivables $ 114 $ 10 $ 124 Number of TDR accounts 14,583 350 14,933 Six Months Ended June 30, 2018 Pre-modification TDR net finance receivables $ 179 $ 2 $ 181 Post-modification TDR net finance receivables: Rate reduction $ 132 $ 2 $ 134 Other (b) 47 — 47 Total post-modification TDR net finance receivables $ 179 $ 2 $ 181 Number of TDR accounts 27,508 44 27,552 Six Months Ended June 30, 2017 Pre-modification TDR net finance receivables $ 159 $ 13 $ 172 Post-modification TDR net finance receivables: Rate reduction $ 118 $ 13 $ 131 Other (b) 39 — 39 Total post-modification TDR net finance receivables $ 157 $ 13 $ 170 Number of TDR accounts 21,021 414 21,435 (a) Other Receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. |
Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Personal loans held for investment that were modified as TDR personal loans within the previous 12 months and for which there was a default during the period to cause the TDR personal loans to be considered nonperforming (90 days or more past due) were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2018 2017 2018 2017 TDR net finance receivables * $ 18 $ 30 $ 35 $ 42 Number of TDR accounts 2,622 4,805 5,341 6,598 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva27
Allowance for Finance Receivable Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Other Receivables Total Three Months Ended June 30, 2018 Balance at beginning of period $ 665 $ 24 $ 689 Provision for finance receivable losses 261 (1 ) 260 Charge-offs (278 ) — (278 ) Recoveries 30 1 31 Balance at end of period $ 678 $ 24 $ 702 Three Months Ended June 30, 2017 Balance at beginning of period $ 646 $ 20 $ 666 Provision for finance receivable losses 235 1 236 Charge-offs (253 ) (2 ) (255 ) Recoveries 28 1 29 Balance at end of period $ 656 $ 20 $ 676 Six Months Ended June 30, 2018 Balance at beginning of period $ 673 $ 24 $ 697 Provision for finance receivable losses 515 (1 ) 514 Charge-offs (567 ) (1 ) (568 ) Recoveries 57 2 59 Balance at end of period $ 678 $ 24 $ 702 Six Months Ended June 30, 2017 Balance at beginning of period $ 669 $ 20 $ 689 Provision for finance receivable losses 479 2 481 Charge-offs (549 ) (3 ) (552 ) Recoveries 57 1 58 Balance at end of period $ 656 $ 20 $ 676 |
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 Other Receivables Total June 30, 2018 Allowance for finance receivable losses: Collectively evaluated for impairment $ 520 $ 3 $ 523 Purchased credit impaired finance receivables — 9 9 TDR finance receivables 158 12 170 Total $ 678 $ 24 $ 702 Finance receivables: Collectively evaluated for impairment $ 14,877 $ 54 $ 14,931 Purchased credit impaired finance receivables 127 21 148 TDR finance receivables 380 49 429 Total $ 15,384 $ 124 $ 15,508 Allowance for finance receivable losses as a percentage of finance receivables 4.41 % 19.25 % 4.53 % December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 532 $ 3 $ 535 Purchased credit impaired finance receivables 6 9 15 TDR finance receivables 135 12 147 Total $ 673 $ 24 $ 697 Finance receivables: Collectively evaluated for impairment $ 14,323 $ 63 $ 14,386 Purchased credit impaired finance receivables 182 22 204 TDR finance receivables 318 49 367 Total $ 14,823 $ 134 $ 14,957 Allowance for finance receivable losses as a percentage of finance receivables 4.53 % 18.27 % 4.66 % |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 23 $ — $ — $ 23 Obligations of states, municipalities, and political subdivisions 135 — (1 ) 134 Certificates of deposit and commercial paper 26 — — 26 Non-U.S. government and government sponsored entities 134 — (2 ) 132 Corporate debt 1,034 3 (26 ) 1,011 Mortgage-backed, asset-backed, and collateralized: RMBS 118 1 (3 ) 116 CMBS 83 — (1 ) 82 CDO/ABS 95 — (1 ) 94 Total $ 1,648 $ 4 $ (34 ) $ 1,618 December 31, 2017 Fixed maturity available-for-sale securities: 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 $ 1,574 $ 12 $ (8 ) $ 1,578 |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position 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 June 30, 2018 U.S. government and government sponsored entities $ 12 $ — $ 8 $ — $ 20 $ — Obligations of states, municipalities, and political subdivisions 84 (1 ) 17 — 101 (1 ) Non-U.S. government and government sponsored entities 63 (1 ) 57 (1 ) 120 (2 ) Corporate debt 741 (22 ) 99 (4 ) 840 (26 ) RMBS 80 (2 ) 32 (1 ) 112 (3 ) CMBS 42 — 33 (1 ) 75 (1 ) CDO/ABS 57 (1 ) 18 — 75 (1 ) Total $ 1,079 $ (27 ) $ 264 $ (7 ) $ 1,343 $ (34 ) December 31, 2017 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 $ 690 $ (4 ) $ 218 $ (4 ) $ 908 $ (8 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. |
Schedule of realized gains, realized losses, and net realized gains 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) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales and redemptions $ 69 $ 167 $ 140 $ 280 Realized gains $ — $ 5 $ — $ 9 Realized losses — (1 ) — (1 ) Net realized gains (losses) $ — $ 4 $ — $ 8 |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2018 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 $ 148 $ 148 Due after 1 year through 5 years 596 604 Due after 5 years through 10 years 385 396 Due after 10 years 197 204 Mortgage-backed, asset-backed, and collateralized securities 292 296 Total $ 1,618 $ 1,648 |
Schedule of fair value of trading securities by type | The fair value of other securities by type was as follows: (dollars in millions) June 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 51 68 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CDO/ABS 3 4 Total bonds 56 74 Preferred stock * 22 20 Common stock * 23 23 Other long-term investments 1 1 Total $ 102 $ 118 * 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. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
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 June 30, 2018 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% 4.10 % Remainder of 2018 — — — — 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024-2067 — 2,149 350 2,499 Securitizations (b) 8,119 — — 8,119 Total principal maturities $ 8,119 $ 6,965 $ 350 $ 15,434 Total carrying amount $ 8,094 $ 6,788 $ 172 $ 15,054 Debt issuance costs (c) $ (24 ) $ (55 ) $ — $ (79 ) (a) The interest rates shown are the range of contractual rates in effect at June 30, 2018 . The interest rate on the UPB of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 4.10% as of June 30, 2018 . (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 June 30, 2018 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (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 $24 million at June 30, 2018 and are reported in other assets. |
Schedule of long-term debt instruments | OMH entered into the SFC Base Indenture and the following SFC supplemental indentures, pursuant to which OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis the payments of principal, premium (if any) and interest on the following notes: Guarantee Agreement Date Entered SFC Supplemental Indentures Interest rate June 30, 2018 Outstanding balance (dollars in millions) 7.125% SFC Notes 5/11/2018 SFC Sixth Supplemental Indenture 7.125% $ 900 6.875% SFC Notes 3/12/2018 SFC Fifth Supplemental Indenture 6.875% 1,250 5.625% SFC Notes 12/8/2017 SFC Fourth Supplemental Indenture 5.625% 875 6.125% SFC Notes 5/15/2017 SFC Third Supplemental Indenture 6.125% 1,000 8.25% SFC Notes 4/11/2016 SFC Second Supplemental Indenture 8.25% 1,000 5.25% SFC Notes 12/3/2014 SFC First Supplemental Indenture 5.25% 700 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entities | |
Schedule of variable interest entities | As of June 30, 2018 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Advance Maximum Amount Revolving Collateral Type Due and Payable (a) Seine River Funding, LLC $ 500 $ — December 2019 Personal loans December 2022 Rocky River Funding, LLC (b) 400 — June 2020 Personal loans July 2021 Thur River Funding, LLC 350 — June 2020 Personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 Personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 Personal loans and auto loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 Auto loans October 2021 OneMain Financial Funding VIII, LLC (c) 450 — January 2021 Personal loans February 2023 OneMain Financial Auto Funding I, LLC (d) 850 — June 2021 Auto loans July 2028 OneMain Financial Funding VII, LLC (e) 850 — June 2021 Personal loans July 2023 Thayer Brook Funding, LLC (f) 250 — July 2021 Auto loans August 2022 Total $ 5,350 $ — (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) On June 27, 2018, we amended the loan and security agreement with Rocky River Funding, LLC to, among other things, (i) increase the advance maximum balance from $250 million to $400 million and (ii) extend the revolving period ending September 2019 to June 2020 thereby extending the final maturity to July 2021. (c) On February 2, 2018, we entered into a loan and security agreement with OneMain Financial Funding VIII, LLC concurrently with the voluntary termination of the note purchase agreement with the OneMain Financial B6 Warehouse Trust. (d) On June 26, 2018, we amended the loan and security agreement with OneMain Financial Auto Funding I, LLC, to, among other things, (i) increase the advance maximum balance from $750 million to $850 million and (ii) extend the revolving period ending October 2020 to June 2021 thereby extending the final maturity to July 2028. (e) On May 31, 2018, we amended the loan and security agreement with OneMain Financial Funding VII, LLC to, among other things, (i) increase the advance maximum balance from $650 million to $850 million and (ii) extend the revolving period ending October 2019 to June 2021 thereby extending the final maturity to July 2023. (f) On June 28, 2018, we entered into a new loan and security agreement with Thayer Brook Funding, LLC. Our securitized borrowings at June 30, 2018 consisted of the following: (dollars in millions) Issue Amount (a) Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 817 3.60 % 3 years 02/26/15 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/15 05/2028 SLFT 2016-A (b) 532 500 3.10 % 2 years 12/14/16 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/17 07/2030 OMFIT 2014-2 1,185 164 5.06 % 2 years 07/30/14 09/2024 OMFIT 2015-1 1,229 834 4.00 % 3 years 02/05/15 03/2026 OMFIT 2015-2 1,250 462 3.91 % 2 years 05/21/15 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/15 11/2028 OMFIT 2016-1 (b) 500 459 4.01 % 3 years 02/10/16 02/2029 OMFIT 2016-2 (b) 890 616 4.63 % 2 years 03/23/16 03/2028 OMFIT 2016-3 (b) 350 317 4.33 % 5 years 06/07/16 06/2031 OMFIT 2017-1 (b) 947 900 2.73 % 2 years 09/06/17 09/2032 OMFIT 2018-1 (c) 632 600 3.60 % 3 years 02/28/18 03/2029 OMFIT 2018-2 (d) 368 350 3.87 % 5 years 03/19/18 03/2033 Total consumer securitizations 7,245 Auto Securitizations: ODART 2016-1 (b) 754 99 3.70 % — 07/19/16 Various ODART 2017-1 (b) 300 200 2.76 % 1 year 02/01/17 Various ODART 2017-2 (b) 605 575 2.63 % 1 year 12/11/17 Various Total auto securitizations 874 Total secured structured financings $ 8,119 (a) Issue Amount includes the retained interest amounts as applicable and as noted below while the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts. (b) For these borrowings, we describe our consumer and auto securitizations initial retained amounts in Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2017 Annual Report on Form 10-K. (c) OMFIT 2018-1 Securitization. We initially retained approximately $32 million of the asset-backed notes. (d) OMFIT 2018-2 Securitization. We initially retained approximately $18 million of the asset-backed notes. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) June 30, December 31, Assets Cash and cash equivalents $ 3 $ 4 Finance receivables: Personal loans 9,135 9,769 Allowance for finance receivable losses 459 465 Restricted cash and restricted cash equivalents 569 482 Other assets 24 20 Liabilities Long-term debt $ 8,094 $ 8,688 Other liabilities 15 15 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
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) were as follows: At or for the (dollars in millions) 2018 2017 Balance at beginning of period $ 154 $ 158 Less reinsurance recoverables (23 ) (26 ) Net balance at beginning of period 131 132 Additions for losses and loss adjustment expenses incurred to: Current year 102 96 Prior years * (5 ) 2 Total 97 98 Reductions for losses and loss adjustment expenses paid related to: Current year (47 ) (45 ) Prior years (51 ) (58 ) Total (98 ) (103 ) Net balance at end of period 130 127 Plus reinsurance recoverables 4 25 Transfer of reserves (19 ) — Balance at end of period $ 115 $ 152 * Reflects (i) a redundancy in the prior years’ net reserves of $5 million at June 30, 2018 primarily due to favorable development of credit disability and unemployment claims during the year and (ii) a shortfall in the prior years’ net reserves of $2 million at June 30, 2017 primarily due to adverse development on ordinary life and credit disability during the year. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per share | The computation of earnings per share was as follows: (dollars in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator (basic and diluted): Net income attributable to OneMain Holdings, Inc. $ 7 $ 42 $ 131 $ 75 Denominator: Weighted average number of shares outstanding (basic) 135,678,914 135,249,610 135,637,825 135,234,143 Effect of dilutive securities * 290,131 263,817 295,574 309,199 Weighted average number of shares outstanding (diluted) 135,969,045 135,513,427 135,933,399 135,543,342 Earnings per share: Basic $ 0.05 $ 0.31 $ 0.96 $ 0.55 Diluted $ 0.05 $ 0.30 $ 0.96 $ 0.55 * We have excluded the following shares in the diluted earnings per share calculation for the three and six months ended June 30, 2018 and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Performance-based shares 45,467 25,089 71,314 27,887 Service-based shares 159,698 795,321 240,467 775,476 |
Schedule of antidilutive securities excluded from computation of earnings per share | We have excluded the following shares in the diluted earnings per share calculation for the three and six months ended June 30, 2018 and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Performance-based shares 45,467 25,089 71,314 27,887 Service-based shares 159,698 795,321 240,467 775,476 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income | 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) Three Months Ended June 30, 2018 Balance at beginning of period $ (16 ) $ 4 $ — $ (12 ) Other comprehensive income (loss) before reclassifications (10 ) 2 (3 ) (11 ) Impact of AOCI reclassification due to the Tax Act 2 (3 ) 3 2 Balance at end of period $ (24 ) $ 3 $ — $ (21 ) Three Months Ended June 30, 2017 Balance at beginning of period $ 3 $ (4 ) $ (1 ) $ (2 ) Other comprehensive income before reclassifications 6 — 2 8 Reclassification adjustments from accumulated other comprehensive loss (3 ) — — (3 ) Balance at end of period $ 6 $ (4 ) $ 1 $ 3 Six Months Ended June 30, 2018 Balance at beginning of period $ 4 $ 4 $ 3 $ 11 Other comprehensive income (loss) before reclassifications (30 ) 2 (6 ) (34 ) Impact of AOCI reclassification due to the Tax Act 2 (3 ) 3 2 Balance at end of period $ (24 ) $ 3 $ — $ (21 ) Six Months Ended June 30, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 13 — 2 15 Reclassification adjustments from accumulated other comprehensive loss (6 ) — — (6 ) Balance at end of period $ 6 $ (4 ) $ 1 $ 3 |
Schedule of reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ — $ 4 $ — $ 8 Income tax effect — (1 ) — (2 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ — $ 3 $ — $ 6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 condensed consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total Three Months Ended June 30, 2018 Interest income $ 911 $ — $ 5 $ (11 ) $ 905 Interest expense 212 — 5 3 220 Provision for finance receivable losses 261 — (3 ) 2 260 Net interest income after provision for finance receivable losses 438 — 3 (16 ) 425 Other revenues 106 8 — 26 140 Acquisition-related transaction and integration expenses 22 — — 6 28 Other expenses 368 8 112 6 494 Income (loss) before income tax expense (benefit) $ 154 $ — $ (109 ) $ (2 ) $ 43 Three Months Ended June 30, 2017 Interest income $ 801 $ — $ 6 $ (35 ) $ 772 Interest expense 189 — 5 9 203 Provision for finance receivable losses 234 — — 2 236 Net interest income after provision for finance receivable losses 378 — 1 (46 ) 333 Other revenues 127 10 1 (17 ) 121 Acquisition-related transaction and integration expenses 14 — — — 14 Other expenses 347 10 10 7 374 Income (loss) before income tax expense (benefit) $ 144 $ — $ (8 ) $ (70 ) $ 66 At or for the Six Months Ended June 30, 2018 Interest income $ 1,784 $ — $ 9 $ (26 ) $ 1,767 Interest expense 406 — 9 5 420 Provision for finance receivable losses 519 — (5 ) — 514 Net interest income after provision for finance receivable losses 859 — 5 (31 ) 833 Other revenues 211 17 (2 ) 51 277 Acquisition-related transaction and integration expenses 32 — — 7 39 Other expenses 711 16 122 11 860 Income (loss) before income tax expense (benefit) $ 327 $ 1 $ (119 ) $ 2 $ 211 Assets $ 17,258 $ — $ 248 $ 2,134 $ 19,640 At or for the Six Months Ended June 30, 2017 Interest income $ 1,599 $ — $ 12 $ (80 ) $ 1,531 Interest expense 375 — 11 19 405 Provision for finance receivable losses 473 — 1 7 481 Net interest income after provision for finance receivable losses 751 — — (106 ) 645 Other revenues 264 22 1 (25 ) 262 Acquisition-related transaction and integration expenses 34 — 6 (3 ) 37 Other expenses 695 21 16 15 747 Income (loss) before income tax expense (benefit) $ 286 $ 1 $ (21 ) $ (143 ) $ 123 Assets $ 16,420 $ 5 $ 352 $ 1,921 $ 18,698 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 June 30, 2018 Assets Cash and cash equivalents $ 524 $ 32 $ — $ 556 $ 556 Investment securities 38 1,677 5 1,720 1,720 Net finance receivables, less allowance for finance receivable losses — — 16,198 16,198 14,806 Finance receivables held for sale — — 133 133 123 Restricted cash and restricted cash equivalents 587 — — 587 587 Other assets * — — 11 11 11 Liabilities Long-term debt $ — $ 15,450 $ — $ 15,450 $ 15,054 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 * Other assets include commercial mortgage loans and escrow advance receivable. |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 * June 30, 2018 Assets Cash equivalents in mutual funds $ 368 $ — $ — $ 368 Cash equivalents in securities — 32 — 32 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 23 — 23 Obligations of states, municipalities, and political subdivisions — 134 — 134 Certificates of deposit and commercial paper — 26 — 26 Non-U.S. government and government sponsored entities — 132 — 132 Corporate debt — 1,009 2 1,011 RMBS — 116 — 116 CMBS — 82 — 82 CDO/ABS — 93 1 94 Total available-for-sale securities — 1,615 3 1,618 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 50 1 51 RMBS — 1 — 1 CDO/ABS — 3 — 3 Total bonds — 55 1 56 Preferred stock 15 7 — 22 Common stock 23 — — 23 Other long-term investments — — 1 1 Total other securities 38 62 2 102 Total investment securities 38 1,677 5 1,720 Restricted cash in mutual funds 570 — — 570 Total $ 976 $ 1,709 $ 5 $ 2,690 * Due to the insignificant activity within the Level 3 assets during the three and six months ended June 30, 2018 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. Fair Value Measurements 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 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 available-for-sale securities (b) — 1,575 3 1,578 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 13 7 — 20 Common stock 23 — — 23 Other long-term investments — — 1 1 Total other securities 36 79 3 118 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 $1 million at December 31, 2017 , which is carried at cost. |
Business and Basis of Present36
Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 25, 2018 | Feb. 21, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Non-cash incentive compensation from SFH | $ 110 | $ 0 | ||||
Majority Shareholder | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage by Initial Stockholder | 40.50% | |||||
Initial Stockholder and Morgan Stanley & Co. LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 4,179,678 | |||||
SFH | OneMain | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 44.00% | |||||
OneMain | Apollo-Värde Group | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 54,937,500 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||
Purchase price per share (in dollars per share) | $ 26 | |||||
Aggregate purchase price | $ 1,400 | |||||
Non-cash incentive compensation from SFH | $ 106 | |||||
OneMain | AIG | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-cash incentive compensation from SFH | $ 4 |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Impact of AOCI reclassification due to the Tax Act | $ 0 | |||
Operating leases, future minimum payments due | $ 180 | |||
Retained Earnings | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Impact of AOCI reclassification due to the Tax Act | (2) | |||
Accumulated Other Comprehensive Income (Loss) | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Impact of AOCI reclassification due to the Tax Act | $ 2 | $ 2 | ||
New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Impact of AOCI reclassification due to the Tax Act | $ (2) | |||
New Accounting Pronouncement, Early Adoption, Effect | Accumulated Other Comprehensive Income (Loss) | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Impact of AOCI reclassification due to the Tax Act | $ 2 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - Personal loans | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Finance Receivables | |
Finance receivables, original term (years) | 3 years |
Maximum | |
Finance Receivables | |
Finance receivables, original term (years) | 6 years |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 15,339 | $ 14,797 |
Unearned points and fees | (176) | (168) |
Accrued finance charges | 220 | 211 |
Deferred origination costs | 125 | 117 |
Net finance receivables | 15,508 | 14,957 |
Personal loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 15,216 | 14,664 |
Unearned points and fees | (176) | (168) |
Accrued finance charges | 219 | 210 |
Deferred origination costs | 125 | 117 |
Net finance receivables | 15,384 | 14,823 |
Other Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 123 | 133 |
Unearned points and fees | 0 | 0 |
Accrued finance charges | 1 | 1 |
Deferred origination costs | 0 | 0 |
Net finance receivables | $ 124 | $ 134 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality Indicators (Details) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Unlikely to be Collected Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Threshold period past due for write-off of financing receivable | 60 days | |
Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Threshold period past due for write-off of financing receivable | 90 days | |
Personal loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans pledged as collateral, percentage | 44.00% | 43.00% |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Delinquency by finance receivables type | ||
Total | $ 15,508 | $ 14,957 |
Personal loans | ||
Delinquency by finance receivables type | ||
Total | 15,384 | 14,823 |
Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 124 | 134 |
Performing | ||
Delinquency by finance receivables type | ||
Total | 15,199 | 14,600 |
Performing | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 15,092 | 14,485 |
Performing | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 107 | 115 |
Performing | Current | ||
Delinquency by finance receivables type | ||
Total | 14,861 | 14,228 |
Performing | Current | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 14,766 | 14,124 |
Performing | Current | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 95 | 104 |
Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
Total | 202 | 212 |
Performing | 30-59 days past due | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 193 | 204 |
Performing | 30-59 days past due | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 9 | 8 |
Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
Total | 136 | 160 |
Performing | 60-89 days past due | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 133 | 157 |
Performing | 60-89 days past due | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 3 | 3 |
Nonperforming | ||
Delinquency by finance receivables type | ||
Total | 309 | 357 |
Nonperforming | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 292 | 338 |
Nonperforming | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 17 | 19 |
Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type | ||
Total | 288 | 336 |
Nonperforming | 90-179 days past due | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 284 | 332 |
Nonperforming | 90-179 days past due | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | 4 | 4 |
Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type | ||
Total | 21 | 21 |
Nonperforming | 180 days or more past due | Personal loans | ||
Delinquency by finance receivables type | ||
Total | 8 | 6 |
Nonperforming | 180 days or more past due | Other Receivables | ||
Delinquency by finance receivables type | ||
Total | $ 13 | $ 15 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables HFI and HFS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Finance receivables held for sale | $ 123 | $ 132 |
Allowance for purchased credit impaired finance receivable losses | 9 | 15 |
OM Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 127 | 176 |
Outstanding balance | 180 | 243 |
Allowance for purchased credit impaired finance receivable losses | 0 | 6 |
FA Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 53 | 57 |
Outstanding balance | 90 | 94 |
Allowance for purchased credit impaired finance receivable losses | 9 | 9 |
Carrying amount | 41 | 44 |
Outstanding balance | $ 68 | $ 72 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield For Purchased Credit Impaired HFI and HFS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OM Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | $ 49 | $ 48 | $ 47 | $ 59 |
Accretion | (8) | (9) | (14) | (20) |
Reclassifications from (to) nonaccretable difference | 11 | 10 | 19 | 10 |
Balance at end of period | 52 | 49 | 52 | 49 |
FA Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 52 | 59 | 53 | 60 |
Accretion | (1) | (2) | (2) | (3) |
Reclassifications from (to) nonaccretable difference | 0 | (2) | 0 | (2) |
Balance at end of period | $ 51 | $ 55 | $ 51 | $ 55 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivable HFI and HFS (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 513,000,000 | $ 457,000,000 |
TDR net finance receivables | 516,000,000 | 458,000,000 |
Allowance for TDR finance receivable losses | 170,000,000 | 147,000,000 |
Commitment to lend additional funds on TDR finance receivables | 0 | |
Personal loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 377,000,000 | 318,000,000 |
TDR net finance receivables | 380,000,000 | 318,000,000 |
Allowance for TDR finance receivable losses | 158,000,000 | 135,000,000 |
Other Receivables | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 136,000,000 | 139,000,000 |
TDR net finance receivables | 136,000,000 | 140,000,000 |
Allowance for TDR finance receivable losses | 12,000,000 | 12,000,000 |
TDR gross finance receivables | 87,000,000 | 90,000,000 |
TDR net finance receivables | $ 87,000,000 | $ 91,000,000 |
Finance Receivables - TDR avera
Finance Receivables - TDR average net receivables HFI and HFS and finance charges recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | $ 504 | $ 337 | $ 490 | $ 313 |
TDR finance charges recognized | 13 | 11 | 26 | 19 |
TDR average net receivables | 89 | 90 | ||
TDR finance charges recognized | 3 | 3 | ||
Personal loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | 367 | 197 | 352 | 175 |
TDR finance charges recognized | 11 | 9 | 22 | 15 |
Other Receivables | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | 137 | 140 | 138 | 138 |
TDR finance charges recognized | 2 | 2 | $ 4 | $ 4 |
TDR average net receivables | 88 | 91 | ||
TDR finance charges recognized | $ 2 | $ 2 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)account | Jun. 30, 2017USD ($)account | Jun. 30, 2018USD ($)account | Jun. 30, 2017USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | $ 84 | $ 125 | $ 181 | $ 172 |
Post-modification TDR net finance receivables | $ 84 | $ 124 | $ 181 | $ 170 |
Number of TDR accounts | account | 12,793 | 14,933 | 27,552 | 21,435 |
Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 63 | $ 89 | $ 134 | $ 131 |
Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | 21 | 35 | 47 | 39 |
Personal Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | 84 | 115 | 179 | 159 |
Post-modification TDR net finance receivables | $ 84 | $ 114 | $ 179 | $ 157 |
Number of TDR accounts | account | 12,778 | 14,583 | 27,508 | 21,021 |
Personal Loans | Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 63 | $ 79 | $ 132 | $ 118 |
Personal Loans | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | 21 | 35 | 47 | 39 |
Other Receivables | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | 0 | 10 | 2 | 13 |
Post-modification TDR net finance receivables | $ 0 | $ 10 | $ 2 | $ 13 |
Number of TDR accounts | account | 15 | 350 | 44 | 414 |
Other Receivables | Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 0 | $ 10 | $ 2 | $ 13 |
Other Receivables | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 0 | $ 0 | $ 0 | $ 0 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - non performing Finance Receivables (Details) - Personal loans $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)account | Jun. 30, 2017USD ($)account | Jun. 30, 2018USD ($)account | Jun. 30, 2017USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ | $ 18 | $ 30 | $ 35 | $ 42 |
Number of TDR accounts | account | 2,622 | 4,805 | 5,341 | 6,598 |
Allowance for Finance Receiva48
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 689 | $ 666 | $ 697 | $ 689 |
Provision for finance receivable losses | 260 | 236 | 514 | 481 |
Charge-offs | (278) | (255) | (568) | (552) |
Recoveries | 31 | 29 | 59 | 58 |
Balance at end of period | 702 | 676 | 702 | 676 |
Personal Loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 665 | 646 | 673 | 669 |
Provision for finance receivable losses | 261 | 235 | 515 | 479 |
Charge-offs | (278) | (253) | (567) | (549) |
Recoveries | 30 | 28 | 57 | 57 |
Balance at end of period | 678 | 656 | 678 | 656 |
Other Receivables | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 24 | 20 | 24 | 20 |
Provision for finance receivable losses | (1) | 1 | (1) | 2 |
Charge-offs | 0 | (2) | (1) | (3) |
Recoveries | 1 | 1 | 2 | 1 |
Balance at end of period | $ 24 | $ 20 | $ 24 | $ 20 |
Allowance for Finance Receiva49
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Allowance for finance receivable losses: | ||||||
Collectively evaluated for impairment | $ 523 | $ 535 | ||||
Purchased credit impaired finance receivables | 9 | 15 | ||||
TDR finance receivables | 170 | 147 | ||||
Total | 702 | 697 | $ 689 | $ 676 | $ 666 | $ 689 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 14,931 | 14,386 | ||||
Purchased credit impaired finance receivables | 15,508 | 14,957 | ||||
TDR finance receivables | 429 | 367 | ||||
Total | $ 15,508 | $ 14,957 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 4.53% | 4.66% | ||||
Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 148 | $ 204 | ||||
Total | 148 | 204 | ||||
Personal Loans | ||||||
Allowance for finance receivable losses: | ||||||
Collectively evaluated for impairment | 520 | 532 | ||||
Purchased credit impaired finance receivables | 0 | 6 | ||||
TDR finance receivables | 158 | 135 | ||||
Total | 678 | 673 | 665 | 656 | 646 | 669 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 14,877 | 14,323 | ||||
Purchased credit impaired finance receivables | 15,384 | 14,823 | ||||
TDR finance receivables | 380 | 318 | ||||
Total | $ 15,384 | $ 14,823 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 4.41% | 4.53% | ||||
Personal Loans | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 127 | $ 182 | ||||
Total | 127 | 182 | ||||
Other Receivables | ||||||
Allowance for finance receivable losses: | ||||||
Collectively evaluated for impairment | 3 | 3 | ||||
Purchased credit impaired finance receivables | 9 | 9 | ||||
TDR finance receivables | 12 | 12 | ||||
Total | 24 | 24 | $ 24 | $ 20 | $ 20 | $ 20 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 54 | 63 | ||||
Purchased credit impaired finance receivables | 124 | 134 | ||||
TDR finance receivables | 49 | 49 | ||||
Total | $ 124 | $ 134 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 19.25% | 18.27% | ||||
Other Receivables | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 21 | $ 22 | ||||
Total | $ 21 | $ 22 |
Finance Receivables Held for 50
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables Held-for-sale [Abstract] | ||
Finance receivables held for sale | $ 123 | $ 132 |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,648 | $ 1,574 |
Unrealized Gains | 4 | 12 |
Unrealized Losses | (34) | (8) |
Fair Value | 1,618 | 1,578 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 23 | 28 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 23 | 28 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 135 | 135 |
Unrealized Gains | 0 | |
Unrealized Losses | (1) | 0 |
Fair Value | 134 | 135 |
Certificates of deposit and commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 26 | 60 |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | 0 |
Fair Value | 26 | 60 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 134 | 126 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | (1) |
Fair Value | 132 | 125 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,034 | 941 |
Unrealized Gains | 3 | 12 |
Unrealized Losses | (26) | (5) |
Fair Value | 1,011 | 948 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 118 | 100 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (3) | (1) |
Fair Value | 116 | 99 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 83 | 88 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 82 | 87 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 95 | 96 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Fair Value | $ 94 | $ 96 |
Investment Securities - FV & Un
Investment Securities - FV & Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value | ||
Less Than 12 Months | $ 1,079 | $ 690 |
12 Months or Longer | 264 | 218 |
Total | 1,343 | 908 |
Unrealized Losses | ||
Less Than 12 Months | (27) | (4) |
12 Months or Longer | (7) | (4) |
Total | (34) | (8) |
Disclosure of unrealized losses on certain available-for-sale securities (less than) | 1 | |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 12 | 21 |
12 Months or Longer | 8 | 3 |
Total | 20 | 24 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 84 | 65 |
12 Months or Longer | 17 | 20 |
Total | 101 | 85 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | 0 |
Total | (1) | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 63 | 89 |
12 Months or Longer | 57 | 13 |
Total | 120 | 102 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (1) |
12 Months or Longer | (1) | 0 |
Total | (2) | (1) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 741 | 387 |
12 Months or Longer | 99 | 93 |
Total | 840 | 480 |
Unrealized Losses | ||
Less Than 12 Months | (22) | (3) |
12 Months or Longer | (4) | (2) |
Total | (26) | (5) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 80 | 40 |
12 Months or Longer | 32 | 25 |
Total | 112 | 65 |
Unrealized Losses | ||
Less Than 12 Months | (2) | 0 |
12 Months or Longer | (1) | (1) |
Total | (3) | (1) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 42 | 40 |
12 Months or Longer | 33 | 38 |
Total | 75 | 78 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | (1) |
Total | (1) | (1) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 57 | 48 |
12 Months or Longer | 18 | 26 |
Total | 75 | 74 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | 0 |
Total | $ (1) | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | Dec. 31, 2017investment | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment securities in an unrealized loss position | investment | 1,872 | 1,872 | 1,229 | ||
Other than temporary impairment, credit losses recognized in earnings, period increase (decrease) (less than in 2018 YTD) | $ 0 | $ 1,000,000 | |||
Unrealized loss on securities (less than except for six months ended June 30, 2018) | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 | $ 1,000,000 |
Investment Securities - Proceed
Investment Securities - Proceeds of AFS Sold / Redeemed (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and redemptions | $ 69 | $ 167 | $ 140 | $ 280 |
Realized gains | 0 | 5 | 0 | 9 |
Realized losses | 0 | (1) | 0 | (1) |
Net realized gains (losses) | $ 0 | $ 4 | $ 0 | $ 8 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 148 | |
Due after 1 year through 5 years | 596 | |
Due after 5 years through 10 years | 385 | |
Due after 10 years | 197 | |
Mortgage-backed, asset-backed, and collateralized securities | 292 | |
Total | 1,618 | $ 1,578 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | 148 | |
Due after 1 year through 5 years | 604 | |
Due after 5 years through 10 years | 396 | |
Due after 10 years | 204 | |
Mortgage-backed, asset-backed, and collateralized securities | 296 | |
Cost/ Amortized Cost | $ 1,648 | $ 1,574 |
Investment Securities - FV of b
Investment Securities - FV of bonds on deposit with insurance regulatory (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Fair value of bonds on deposit | $ 500 | $ 537 |
Investment Securities - FV of T
Investment Securities - FV of Trading Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturity other securities: | ||
Bonds | $ 56 | $ 74 |
Other long-term investments | 1 | 1 |
Total | 102 | 118 |
Non-U.S. government and government sponsored entities | ||
Fixed maturity other securities: | ||
Bonds | 1 | 1 |
Corporate debt | ||
Fixed maturity other securities: | ||
Bonds | 51 | 68 |
RMBS | ||
Fixed maturity other securities: | ||
Bonds | 1 | 1 |
CDO/ABS | ||
Fixed maturity other securities: | ||
Bonds | 3 | 4 |
Preferred stock | ||
Fixed maturity other securities: | ||
Trading security, equity | 22 | 20 |
Common Stock | ||
Fixed maturity other securities: | ||
Trading security, equity | $ 23 | $ 23 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - Springleaf Finance Corporation - SpringCastle Funding Trust - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Servicing fees (less than paid to Nationstar) | $ 8 | $ 10 | $ 16 | $ 20 | |
Servicing fees receivable | $ 2 | $ 2 | $ 3 |
Long-term Debt - Summary of Deb
Long-term Debt - Summary of Debt (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2018 | $ 0 | |
2,019 | 696,000,000 | |
2,020 | 1,299,000,000 | |
2,021 | 646,000,000 | |
2,022 | 1,000,000,000 | |
2,023 | 1,175,000,000 | |
2024-2067 | 2,499,000,000 | |
Securitizations | 8,119,000,000 | |
Total principal maturities | 15,434,000,000 | |
Total carrying amount | 15,054,000,000 | $ 15,050,000,000 |
Debt issuance costs | (79,000,000) | |
Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2018 | 0 | |
Total carrying amount | 172,000,000 | |
Debt issuance costs | $ 0 | |
Effective interest rate | 4.10% | |
Senior Debt | Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2018 | $ 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
2024-2067 | 0 | |
Securitizations | 8,119,000,000 | |
Total principal maturities | 8,119,000,000 | |
Total carrying amount | 8,094,000,000 | |
Debt issuance costs | (24,000,000) | |
Senior Debt | Medium Term Notes | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2018 | 0 | |
2,019 | 696,000,000 | |
2,020 | 1,299,000,000 | |
2,021 | 646,000,000 | |
2,022 | 1,000,000,000 | |
2,023 | 1,175,000,000 | |
2024-2067 | 2,149,000,000 | |
Securitizations | 0 | |
Total principal maturities | 6,965,000,000 | |
Total carrying amount | 6,788,000,000 | |
Debt issuance costs | (55,000,000) | |
Senior Debt | Revolving Credit Facility | Other assets | ||
Principal maturities of long-term debt by type of debt | ||
Debt issuance costs | 24,000,000 | |
Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
2024-2067 | 350,000,000 | |
Securitizations | 0 | |
Total principal maturities | $ 350,000,000 | |
Junior Subordinated Debenture | Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
Effective interest rate | 4.10% | |
Minimum | Senior Debt | Securitizations | ||
Long-term debt | ||
Interest rate | 2.04% | |
Minimum | Senior Debt | Medium Term Notes | ||
Long-term debt | ||
Interest rate | 5.25% | |
Maximum | Senior Debt | Securitizations | ||
Long-term debt | ||
Interest rate | 6.94% | |
Maximum | Senior Debt | Medium Term Notes | ||
Long-term debt | ||
Interest rate | 8.25% | |
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
Basis spread on variable rate | 1.75% | |
Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Total carrying amount | $ 8,100,000,000 | $ 8,700,000,000 |
Amounts drawn | $ 0 |
Long-term Debt - SFC Senior Not
Long-term Debt - SFC Senior Notes (Details) - USD ($) | Jun. 30, 2018 | May 11, 2018 | Mar. 19, 2018 | Mar. 12, 2018 |
Springleaf Finance Corporation | 7.125% SFC Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 900,000,000 | |||
Springleaf Finance Corporation | 6.875% SFC Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 1,250,000,000 | |||
7.125% SFC Notes | Springleaf Finance Corporation | Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.125% | |||
OMFH Notes 2021 | Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 400,000,000 | |||
OMFH Notes 2021 | Springleaf Finance Corporation | Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.25% | |||
Debt instrument, face amount | $ 400,000,000 | |||
6.875% SFC Notes | Springleaf Finance Corporation | Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.875% |
Long-term Debt - Guarantee Agre
Long-term Debt - Guarantee Agreement (Details) - USD ($) | May 14, 2018 | Mar. 19, 2018 | Jan. 08, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 11, 2018 | Mar. 12, 2018 | Dec. 08, 2017 | Dec. 30, 2013 |
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | $ 15,434,000,000 | $ 15,434,000,000 | |||||||||
Net loss on repurchases and repayments of debt | 7,000,000 | $ 27,000,000 | 8,000,000 | $ 28,000,000 | |||||||
Senior Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 1,600,000,000 | 1,600,000,000 | |||||||||
Senior Debt | OMFH Notes 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.375% | ||||||||||
Net loss on repurchases and repayments of debt | 1,000,000 | ||||||||||
Senior Debt | OMFH Notes 2021 Part 1 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.625% | ||||||||||
Net loss on repurchases and repayments of debt | 4,000,000 | ||||||||||
Senior Debt | OMFH Notes 2021 Part 2 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.625% | ||||||||||
Net loss on repurchases and repayments of debt | 3,000,000 | ||||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 7.125% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 900,000,000 | 900,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 6.875% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 1,250,000,000 | 1,250,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 5.625% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 875,000,000 | 875,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 6.125% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 1,000,000,000 | 1,000,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 8.25% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 5.25% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.25% | 5.25% | |||||||||
Outstanding balance | $ 700,000,000 | $ 700,000,000 | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Debt | 6.875% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.875% | 6.875% | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Debt | 5.625% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.625% | 5.625% | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Debt | 6.125% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.125% | 6.125% | |||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 8.250% Senior Notes due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 8.25% | ||||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 7.750% Senior Notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.75% | ||||||||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 6.00% Senior Notes due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.00% | ||||||||||
Springleaf Finance Corporation | Senior Debt | 7.125% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.125% | ||||||||||
Springleaf Finance Corporation | Senior Debt | 6.875% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.875% | ||||||||||
Springleaf Finance Corporation | Senior Debt | OMFH Notes 2021 Part 1 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.25% | 7.25% | |||||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | |||||||||
Springleaf Finance Corporation | Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | 8.25% SFC Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 8.25% | 8.25% |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - Consolidated VIEs - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 3 | $ 4 |
Finance receivables | Personal loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 9,135 | 9,769 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 459 | 465 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 569 | 482 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 24 | 20 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 8,094 | 8,688 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 15 | $ 15 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 19, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Current Note Amounts Outstanding | $ 15,054 | $ 15,050 | ||
Consolidated VIEs | ||||
Debt Instrument [Line Items] | ||||
Current Note Amounts Outstanding | 8,100 | $ 8,700 | ||
Consolidated VIEs | Secured Structured Financings | ||||
Debt Instrument [Line Items] | ||||
Current Note Amounts Outstanding | 8,119 | |||
Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Current Note Amounts Outstanding | 7,245 | |||
Consolidated VIEs | Auto Securitizations | ||||
Debt Instrument [Line Items] | ||||
Current Note Amounts Outstanding | 874 | |||
SLFT 2015-A | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | 1,163 | |||
Current Note Amounts Outstanding | $ 817 | |||
Current Weighted Average Interest Rate | 3.60% | |||
Original Revolving Period | 3 years | |||
SLFT 2015-B | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 314 | |||
Current Note Amounts Outstanding | $ 314 | |||
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 | |||
Current Note Amounts Outstanding | $ 500 | |||
Current Weighted Average Interest Rate | 3.10% | |||
Original Revolving Period | 2 years | |||
SLFT 2017-A | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 652 | |||
Current Note Amounts Outstanding | $ 619 | |||
Current Weighted Average Interest Rate | 2.98% | |||
Original Revolving Period | 3 years | |||
OMFIT 2014-2 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 1,185 | |||
Current Note Amounts Outstanding | $ 164 | |||
Current Weighted Average Interest Rate | 5.06% | |||
Original Revolving Period | 2 years | |||
OMFIT 2015-1 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 1,229 | |||
Current Note Amounts Outstanding | $ 834 | |||
Current Weighted Average Interest Rate | 4.00% | |||
Original Revolving Period | 3 years | |||
OMFIT 2015-2 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 1,250 | |||
Current Note Amounts Outstanding | $ 462 | |||
Current Weighted Average Interest Rate | 3.91% | |||
Original Revolving Period | 2 years | |||
OMFIT 2015-3 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 293 | |||
Current Note Amounts Outstanding | $ 293 | |||
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 | |||
Current Note Amounts Outstanding | $ 459 | |||
Current Weighted Average Interest Rate | 4.01% | |||
Original Revolving Period | 3 years | |||
OMFIT 2016-2 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 890 | |||
Current Note Amounts Outstanding | $ 616 | |||
Current Weighted Average Interest Rate | 4.63% | |||
Original Revolving Period | 2 years | |||
OMFIT 2016-3 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 350 | |||
Current Note Amounts Outstanding | $ 317 | |||
Current Weighted Average Interest Rate | 4.33% | |||
Original Revolving Period | 5 years | |||
OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 947 | |||
Current Note Amounts Outstanding | $ 900 | |||
Current Weighted Average Interest Rate | 2.73% | |||
Original Revolving Period | 2 years | |||
OMFIT 2018-1 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 632 | |||
Current Note Amounts Outstanding | $ 600 | |||
Current Weighted Average Interest Rate | 3.60% | |||
Original Revolving Period | 3 years | |||
Notes initially retained by the entity | $ 32 | |||
OMFIT 2018-2 | Consolidated VIEs | Consumer Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 368 | |||
Current Note Amounts Outstanding | $ 350 | |||
Current Weighted Average Interest Rate | 3.87% | |||
Original Revolving Period | 5 years | |||
Notes initially retained by the entity | $ 18 | |||
ODART 2016-1 | Consolidated VIEs | Auto Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 754 | |||
Current Note Amounts Outstanding | $ 99 | |||
Current Weighted Average Interest Rate | 3.70% | |||
ODART 2017-1 | Consolidated VIEs | Auto Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 300 | |||
Current Note Amounts Outstanding | $ 200 | |||
Current Weighted Average Interest Rate | 2.76% | |||
Original Revolving Period | 1 year | |||
ODART 2017-2 | Consolidated VIEs | Auto Securitizations | ||||
Debt Instrument [Line Items] | ||||
Issue Amount | $ 605 | |||
Current Note Amounts Outstanding | $ 575 | |||
Current Weighted Average Interest Rate | 2.63% | |||
Original Revolving Period | 1 year |
Variable Interest Entities - Bo
Variable Interest Entities - Borrowings Under Conduit Facilities (Details) - Consolidated VIEs - USD ($) | Jun. 30, 2018 | Jun. 26, 2018 | Jun. 25, 2018 | May 30, 2018 |
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | $ 5,350,000,000 | |||
Amount Drawn | 0 | |||
Seine River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 500,000,000 | |||
Amount Drawn | 0 | |||
Rocky River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 400,000,000 | $ 250,000,000 | ||
Amount Drawn | 0 | |||
Thur River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 350,000,000 | |||
Amount Drawn | 0 | |||
Mystic River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 850,000,000 | |||
Amount Drawn | 0 | |||
Fourth Avenue Auto Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 250,000,000 | |||
Amount Drawn | 0 | |||
OneMain Financial Auto Funding I, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 850,000,000 | $ 750,000,000 | ||
Amount Drawn | 0 | |||
Thayer Brook Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 250,000,000 | |||
Amount Drawn | 0 | |||
OneMain Financial Funding IX, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 600,000,000 | |||
Amount Drawn | 0 | |||
OneMain Financial Funding VIII, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 450,000,000 | |||
Amount Drawn | 0 | |||
OneMain Financial Funding VII, LLC | Asset-backed Securities, Securitized Loans and Receivables | ||||
Line of Credit Facility [Line Items] | ||||
Advance Maximum Balance | 850,000,000 | $ 650,000,000 | ||
Amount Drawn | $ 0 |
Variable Interest Entities - VI
Variable Interest Entities - VIE Interest Expense & Deconsolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 220 | $ 203 | $ 420 | $ 405 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 87 | $ 78 | $ 173 | $ 158 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 154 | $ 158 | ||
Less reinsurance recoverables | (23) | (26) | ||
Net balance at beginning of period | 131 | 132 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 102 | 96 | ||
Prior years | (5) | 2 | ||
Total | 97 | 98 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (47) | (45) | ||
Prior years | (51) | (58) | ||
Total | (98) | (103) | ||
Net balance at end of period | 130 | 127 | ||
Plus reinsurance recoverables | 23 | 26 | $ 4 | $ 25 |
Transfer of reserves | (19) | 0 | ||
Balance at end of period | 115 | 152 | ||
Prior years net reserve (redundancy) | $ (5) | $ 2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator (basic and diluted): | ||||
Net income attributable to OneMain Holdings, Inc. | $ 7 | $ 42 | $ 131 | $ 75 |
Denominator: | ||||
Weighted average number of shares outstanding (basic) (in shares) | 135,678,914 | 135,249,610 | 135,637,825 | 135,234,143 |
Effect of dilutive securities (in shares) | 290,131 | 263,817 | 295,574 | 309,199 |
Weighted average number of shares outstanding (diluted) (in shares) | 135,969,045 | 135,513,427 | 135,933,399 | 135,543,342 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.05 | $ 0.31 | $ 0.96 | $ 0.55 |
Diluted (in dollars per share) | $ 0.05 | $ 0.30 | $ 0.96 | $ 0.55 |
Performance-based shares | ||||
Earnings per share: | ||||
Antidilutive securities excluded from EPS calculation (in shares) | 45,467 | 25,089 | 71,314 | 27,887 |
Service-based shares | ||||
Earnings per share: | ||||
Antidilutive securities excluded from EPS calculation (in shares) | 159,698 | 795,321 | 240,467 | 775,476 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 3,278 | $ 3,278 | $ 3,066 | ||
Other comprehensive income (loss) before reclassifications | $ (11) | $ 8 | (34) | 15 | |
Impact of AOCI reclassification due to the Tax Act | 0 | ||||
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | (3) | 0 | (6) | |
Balance at end of period | 3,489 | 3,154 | 3,489 | 3,154 | |
Unrealized Gains (Losses) Available-for-Sale Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (16) | 4 | 3 | 4 | (1) |
Other comprehensive income (loss) before reclassifications | (10) | 6 | (30) | 13 | |
Impact of AOCI reclassification due to the Tax Act | 2 | 2 | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | (3) | (6) | |||
Balance at end of period | (24) | (16) | 6 | (24) | 6 |
Retirement Plan Liabilities Adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 4 | 4 | (4) | 4 | (4) |
Other comprehensive income (loss) before reclassifications | 2 | 0 | 2 | 0 | |
Impact of AOCI reclassification due to the Tax Act | (3) | (3) | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | |||
Balance at end of period | 3 | 4 | (4) | 3 | (4) |
Foreign Currency Translation Adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 0 | 3 | (1) | 3 | (1) |
Other comprehensive income (loss) before reclassifications | (3) | 2 | (6) | 2 | |
Impact of AOCI reclassification due to the Tax Act | 3 | 3 | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | |||
Balance at end of period | 0 | 0 | 1 | 0 | 1 |
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (12) | 11 | (2) | 11 | (6) |
Other comprehensive income (loss) before reclassifications | (11) | 8 | (34) | 15 | |
Impact of AOCI reclassification due to the Tax Act | 2 | 2 | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | (3) | (6) | |||
Balance at end of period | $ (21) | $ (12) | $ 3 | $ (21) | $ 3 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments From AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Unrealized gains on available-for-sale securities: | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 0 | $ 3 | $ 0 | $ 6 |
Unrealized gains on available-for-sale securities | ||||
Unrealized gains on available-for-sale securities: | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 3 | 6 | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains on available-for-sale securities | ||||
Unrealized gains on available-for-sale securities: | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | 0 | 4 | 0 | 8 |
Income tax effect | 0 | (1) | 0 | (2) |
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 0 | $ 3 | $ 0 | $ 6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, net | $ 142 | $ 143 | |
Effective income tax rate | 38.00% | 39.00% | |
Interest and penalties included in unrecognized tax positions | $ 16 | $ 15 | |
No material change in balance of uncertain tax position, expected term | 12 months |
Contingencies (Details)
Contingencies (Details) $ in Millions | Feb. 10, 2017defendant | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, number of defendants | defendant | 3 | |
Reserve for sales recourse obligations | $ | $ 8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information - Reconcili
Segment Information - Reconciliation to Condensed Consolidated Financial Statement Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||
Interest income | $ 905 | $ 772 | $ 1,767 | $ 1,531 | |
Interest expense | 220 | 203 | 420 | 405 | |
Provision for finance receivable losses | 260 | 236 | 514 | 481 | |
Net interest income after provision for finance receivable losses | 425 | 333 | 833 | 645 | |
Other revenues | 140 | 121 | 277 | 262 | |
Acquisition-related transaction and integration expenses | 28 | 14 | 39 | 37 | |
Other expenses | 494 | 374 | 860 | 747 | |
Income before income taxes | 43 | 66 | 211 | 123 | |
Assets | 19,640 | 18,698 | 19,640 | 18,698 | $ 19,433 |
Operating segments | Consumer and Insurance | |||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||
Interest income | 911 | 801 | 1,784 | 1,599 | |
Interest expense | 212 | 189 | 406 | 375 | |
Provision for finance receivable losses | 261 | 234 | 519 | 473 | |
Net interest income after provision for finance receivable losses | 438 | 378 | 859 | 751 | |
Other revenues | 106 | 127 | 211 | 264 | |
Acquisition-related transaction and integration expenses | 22 | 14 | 32 | 34 | |
Other expenses | 368 | 347 | 711 | 695 | |
Income before income taxes | 154 | 144 | 327 | 286 | |
Assets | 17,258 | 16,420 | 17,258 | 16,420 | |
Operating segments | Acquisitions and Servicing | |||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | ||
Provision for finance receivable losses | 0 | 0 | 0 | ||
Net interest income after provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Other revenues | 8 | 10 | 17 | 22 | |
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | 0 | |
Other expenses | 8 | 10 | 16 | 21 | |
Income before income taxes | 0 | 0 | 1 | 1 | |
Assets | 0 | 5 | 0 | 5 | |
Other | |||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||
Interest income | 5 | 6 | 9 | 12 | |
Interest expense | 5 | 5 | 9 | 11 | |
Provision for finance receivable losses | (3) | 0 | (5) | 1 | |
Net interest income after provision for finance receivable losses | 3 | 1 | 5 | 0 | |
Other revenues | 0 | 1 | (2) | 1 | |
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | 6 | |
Other expenses | 112 | 10 | 122 | 16 | |
Income before income taxes | (109) | (8) | (119) | (21) | |
Assets | 248 | 352 | 248 | 352 | |
Segment to GAAP Adjustment | |||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||
Interest income | (11) | (35) | (26) | (80) | |
Interest expense | 3 | 9 | 5 | 19 | |
Provision for finance receivable losses | 2 | 2 | 0 | 7 | |
Net interest income after provision for finance receivable losses | (16) | (46) | (31) | (106) | |
Other revenues | 26 | (17) | 51 | (25) | |
Acquisition-related transaction and integration expenses | 6 | 0 | 7 | (3) | |
Other expenses | 6 | 7 | 11 | 15 | |
Income before income taxes | (2) | (70) | 2 | (143) | |
Assets | $ 2,134 | $ 1,921 | $ 2,134 | $ 1,921 |
Fair Value Measurements - FV &
Fair Value Measurements - FV & CV Hierarchy Basis Table (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Assets | |||
Investment securities | $ 1,720 | $ 1,697 | |
Restricted cash and restricted cash equivalents | 587 | 498 | $ 545 |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,054 | 15,050 | |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 556 | 987 | |
Investment securities | 1,720 | 1,697 | |
Net finance receivables, less allowance for finance receivable losses | 16,198 | 15,656 | |
Finance receivables held for sale | 133 | 139 | |
Restricted cash and restricted cash equivalents | 587 | 498 | |
Other assets | 11 | 12 | |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,450 | 15,625 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 556 | 987 | |
Investment securities | 1,720 | 1,697 | |
Net finance receivables, less allowance for finance receivable losses | 14,806 | 14,260 | |
Finance receivables held for sale | 123 | 132 | |
Restricted cash and restricted cash equivalents | 587 | 498 | |
Other assets | 11 | 12 | |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,054 | 15,050 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 524 | 933 | |
Investment securities | 38 | 36 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 587 | 498 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 32 | 54 | |
Investment securities | 1,677 | 1,654 | |
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 | 0 | |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | 15,450 | 15,625 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 5 | 7 | |
Net finance receivables, less allowance for finance receivable losses | 16,198 | 15,656 | |
Finance receivables held for sale | 133 | 139 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 11 | 12 | |
Liabilities | |||
Long-term debt (includes debt of consolidated VIEs of $8.1 billion in 2018 and $8.7 billion in 2017) | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at FV Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Available-for-sale securities | $ 1,618 | $ 1,578 |
Other securities | 102 | 118 |
Debt securities, trading | 56 | 74 |
Total investment securities | 1,720 | 1,697 |
U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 23 | 28 |
Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 134 | 135 |
Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 26 | 60 |
Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,011 | 948 |
Debt securities, trading | 51 | 68 |
RMBS | ||
Investment securities: | ||
Available-for-sale securities | 116 | 99 |
Debt securities, trading | 1 | 1 |
CMBS | ||
Investment securities: | ||
Available-for-sale securities | 82 | 87 |
CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 94 | 96 |
Debt securities, trading | 3 | 4 |
Common stock | Portion at Other than Fair Value Measurement | ||
Investment securities: | ||
Available-for-sale securities | 1 | |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 524 | 933 |
Investment securities: | ||
Total investment securities | 38 | 36 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 32 | 54 |
Investment securities: | ||
Total investment securities | 1,677 | 1,654 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Total investment securities | 5 | 7 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 368 | 709 |
Investment securities: | ||
Available-for-sale securities | 1,618 | 1,578 |
Other securities | 102 | 118 |
Total investment securities | 1,720 | 1,696 |
Restricted cash in mutual funds | 570 | 484 |
Total | 2,690 | 2,943 |
Fair Value, Measurements, Recurring | Bonds: | ||
Investment securities: | ||
Other securities | 56 | 74 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 23 | 28 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 134 | 135 |
Fair Value, Measurements, Recurring | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 26 | 60 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 132 | 125 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,011 | 948 |
Other securities | 51 | 68 |
Fair Value, Measurements, Recurring | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 116 | 99 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 82 | 87 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 94 | 96 |
Other securities | 3 | 4 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investment securities: | ||
Debt securities, trading | 22 | 20 |
Fair Value, Measurements, Recurring | Common stock | ||
Investment securities: | ||
Debt securities, trading | 23 | 23 |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Investment securities: | ||
Debt securities, trading | 1 | 1 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 368 | 709 |
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 38 | 36 |
Total investment securities | 38 | 36 |
Restricted cash in mutual funds | 570 | 484 |
Total | 976 | 1,229 |
Fair Value, Measurements, Recurring | Level 1 | Bonds: | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | ||
Investment securities: | ||
Debt securities, trading | 15 | 13 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investment securities: | ||
Debt securities, trading | 23 | 23 |
Fair Value, Measurements, Recurring | Level 1 | Other long-term investments | ||
Investment securities: | ||
Debt securities, trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Investment securities: | ||
Available-for-sale securities | 1,615 | 1,575 |
Other securities | 62 | 79 |
Total investment securities | 1,677 | 1,654 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,709 | 1,708 |
Fair Value, Measurements, Recurring | Level 2 | Bonds: | ||
Investment securities: | ||
Other securities | 55 | 72 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 23 | 28 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 134 | 135 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 26 | 60 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 132 | 125 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,009 | 946 |
Other securities | 50 | 66 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 116 | 99 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 82 | 87 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 93 | 95 |
Other securities | 3 | 4 |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | ||
Investment securities: | ||
Debt securities, trading | 7 | 7 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Investment securities: | ||
Debt securities, trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other long-term investments | ||
Investment securities: | ||
Debt securities, trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Investment securities: | ||
Available-for-sale securities | 3 | 3 |
Other securities | 2 | 3 |
Total investment securities | 5 | 6 |
Restricted cash in mutual funds | 0 | 0 |
Total | 5 | 6 |
Fair Value, Measurements, Recurring | Level 3 | Bonds: | ||
Investment securities: | ||
Other securities | 1 | 2 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 2 | 2 |
Other securities | 1 | 2 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 1 | 1 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | ||
Investment securities: | ||
Debt securities, trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Investment securities: | ||
Debt securities, trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other long-term investments | ||
Investment securities: | ||
Debt securities, trading | 1 | 1 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash and cash equivalents | 32 | 54 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash and cash equivalents | 32 | 54 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |