Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36129 | ||
Entity Registrant Name | ONEMAIN HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-3379612 | ||
Entity Address, Address Line One | 601 N.W. Second Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47708 | ||
City Area Code | 812 | ||
Local Phone Number | 424-8031 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | OMF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 120,811,795 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13, and 14) of this Annual Report on Form 10-K is incorporated by reference from OneMain Holdings, Inc.'s Definitive Proxy Statement for its 2023 Annual Meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001584207 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 4,328,961,278 | ||
OMFC | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-06155 | ||
Entity Registrant Name | ONEMAIN FINANCE CORPORATION | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0416090 | ||
Entity Address, Address Line One | 601 N.W. Second Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47708 | ||
City Area Code | 812 | ||
Local Phone Number | 424-8031 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 10,160,021 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13, and 14) of this Annual Report on Form 10-K is incorporated by reference from OneMain Holdings, Inc.'s Definitive Proxy Statement for its 2023 Annual Meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0000025598 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Dallas, Texas |
OMFC | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Dallas, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 498 | $ 541 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion and $1.9 billion in 2022, respectively, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,800 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $10.4 billion in 2022 and $8.8 billion in 2021) | 19,986 | 19,212 |
Unearned insurance premium and claim reserves | (749) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.1 billion in 2022 and $910 million in 2021) | (2,311) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,926 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $442 million in 2022 and $466 million in 2021) | 461 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 261 | 274 |
Other assets | 1,150 | 1,003 |
Total assets | 22,533 | 22,079 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $9.4 billion in 2022 and $8.0 billion in 2021) | 18,281 | 17,750 |
Insurance claims and policyholder liabilities | 602 | 621 |
Deferred and accrued taxes | 5 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | 616 | 614 |
Total liabilities | 19,504 | 18,986 |
Contingencies (Note 14) | ||
Shareholders’ equity: | ||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 121,042,125 and 127,809,640 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 1 | 1 |
Additional paid-in capital | 1,689 | 1,672 |
Accumulated other comprehensive income (loss) | (119) | 61 |
Retained earnings | 2,125 | 1,727 |
Treasury stock, at cost; 13,813,476 and 6,712,923 shares at December 31, 2022 and December 31, 2021, respectively | (667) | (368) |
Total shareholders’ equity | 3,029 | 3,093 |
Total liabilities and shareholders’ equity | $ 22,533 | $ 22,079 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities, fair value | $ 1,729 | $ 1,907 |
Investment securities, amortized cost basis | 1,897 | 1,842 |
Net finance receivables | 19,986 | 19,212 |
Financing receivable, allowance for credit loss | 2,311 | 2,095 |
Restricted cash and restricted cash equivalents | 461 | 476 |
Long-term debt | 18,281 | 17,750 |
Other liabilities | $ 616 | $ 614 |
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) | 121,042,125 | 127,809,640 |
Common stock, shares outstanding (in shares) | 121,042,125 | 127,809,640 |
Treasury stock, shares (in shares) | 13,813,476 | 6,712,923 |
Consolidated VIEs | ||
Net finance receivables | $ 10,432 | $ 8,821 |
Financing receivable, allowance for credit loss | 1,126 | 910 |
Restricted cash and restricted cash equivalents | 442 | 466 |
Long-term debt | 9,361 | 7,999 |
Other liabilities | $ 20 | $ 13 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Interest income | $ 4,435 | $ 4,364 | $ 4,368 |
Interest expense | 892 | 937 | 1,027 |
Net interest income | 3,543 | 3,427 | 3,341 |
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Net interest income after provision for finance receivable losses | 2,141 | 2,834 | 2,022 |
Other revenues: | |||
Insurance | 445 | 434 | 443 |
Investment | 61 | 65 | 75 |
Gain on sales of finance receivables | 63 | 47 | 0 |
Net loss on repurchases and repayments of debt | (27) | (78) | (39) |
Other | 87 | 63 | 47 |
Total other revenues | 629 | 531 | 526 |
Other expenses: | |||
Salaries and benefits | 836 | 839 | 756 |
Other operating expenses | 621 | 609 | 573 |
Insurance policy benefits and claims | 150 | 176 | 242 |
Total other expenses | 1,607 | 1,624 | 1,571 |
Income before income taxes | 1,163 | 1,741 | 977 |
Income taxes | 285 | 427 | 247 |
Net income | $ 878 | $ 1,314 | $ 730 |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 124,178,643 | 132,653,889 | 134,716,012 |
Diluted (in shares) | 124,417,274 | 133,054,494 | 134,919,258 |
Earnings per share: | |||
Basic (in dollars per share) | $ 7.07 | $ 9.90 | $ 5.42 |
Diluted (in dollars per share) | $ 7.06 | $ 9.87 | $ 5.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 878 | $ 1,314 | $ 730 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (229) | (53) | 66 |
Retirement plan liability adjustments | (12) | (1) | (2) |
Foreign currency translation adjustments | (10) | 1 | 2 |
Other | 22 | 11 | 0 |
Income tax effect: | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 50 | 12 | (15) |
Retirement plan liability adjustments | 3 | 1 | 0 |
Foreign currency translation adjustments | 2 | 0 | 0 |
Other | (5) | (3) | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (179) | (32) | 51 |
Net realized losses on available-for-sale securities, net of tax | (1) | (1) | (1) |
Reclassification adjustments included in net income, net of tax | (1) | (1) | (1) |
Other comprehensive income (loss), net of tax | (180) | (33) | 50 |
Comprehensive income | $ 698 | $ 1,281 | $ 780 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Net impact of adoption of ASU 2016-13 | [1] | Balance post-adoption | Common Stock | Common Stock Balance post-adoption | Additional Paid-in Capital | Additional Paid-in Capital Balance post-adoption | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Balance post-adoption | Retained Earnings | Retained Earnings Net impact of adoption of ASU 2016-13 | [1] | Retained Earnings Balance post-adoption | Treasury Stock | Treasury Stock Balance post-adoption | |
Balance at beginning of period at Dec. 31, 2019 | $ 4,330 | $ (828) | $ 3,502 | $ 1 | $ 1 | $ 1,689 | $ 1,689 | $ 44 | $ 44 | $ 2,596 | $ (828) | $ 1,768 | $ 0 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Common stock repurchased | [2] | (45) | (45) | ||||||||||||||
Share-based compensation expense, net of forfeitures | 17 | 17 | |||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | |||||||||||||||
Other comprehensive income (loss) | 50 | 50 | |||||||||||||||
Cash dividends | [3] | (807) | (807) | ||||||||||||||
Net income | 730 | 730 | |||||||||||||||
Balance at end of period at Dec. 31, 2020 | 3,441 | 1 | 1,655 | 94 | 1,691 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Common stock repurchased | (368) | (368) | |||||||||||||||
Share-based compensation expense, net of forfeitures | 23 | 23 | |||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | |||||||||||||||
Other comprehensive income (loss) | (33) | (33) | |||||||||||||||
Cash dividends | [3] | (1,278) | (1,278) | ||||||||||||||
Net income | 1,314 | 1,314 | |||||||||||||||
Balance at end of period at Dec. 31, 2021 | 3,093 | 1 | 1,672 | 61 | 1,727 | (368) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Common stock repurchased | (303) | (303) | |||||||||||||||
Treasury stock issued (in shares) | 2 | (2) | 4 | ||||||||||||||
Share-based compensation expense, net of forfeitures | 31 | 31 | |||||||||||||||
Withholding tax on share-based compensation | (14) | (14) | |||||||||||||||
Other comprehensive income (loss) | (180) | (180) | |||||||||||||||
Cash dividends | [3] | (478) | (478) | ||||||||||||||
Net income | 878 | 878 | |||||||||||||||
Balance at end of period at Dec. 31, 2022 | $ 3,029 | $ 1 | $ 1,689 | $ (119) | $ 2,125 | $ (667) | |||||||||||
[1]As a result of the adoption of ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 3.80 | $ 9.55 | $ 5.94 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||
Net income | $ 878 | $ 1,314 | $ 730 |
Reconciling adjustments: | |||
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Depreciation and amortization | 262 | 264 | 264 |
Deferred income tax charge (benefit) | (62) | 78 | (42) |
Net loss on repurchases and repayments of debt | 27 | 78 | 39 |
Share-based compensation expense, net of forfeitures | 31 | 23 | 17 |
Gain on sales of finance receivables | (63) | (47) | 0 |
Other | 2 | (8) | 3 |
Cash flows due to changes in other assets and other liabilities | (90) | (48) | (118) |
Net cash provided by operating activities | 2,387 | 2,247 | 2,212 |
Cash flows from investing activities | |||
Net principal originations and purchases of finance receivables | (2,775) | (2,514) | (748) |
Proceeds from sales of finance receivables | 790 | 560 | 0 |
Available-for-sale securities purchased | (530) | (517) | (456) |
Available-for-sale securities called, sold, and matured | 463 | 404 | 478 |
Other securities purchased | (6) | (708) | (538) |
Other securities called, sold, and matured | 14 | 701 | 542 |
Other, net | (75) | (69) | (29) |
Net cash used for investing activities | (2,119) | (2,143) | (751) |
Cash flows from financing activities | |||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 5,618 | 3,759 | 7,279 |
Repayments and repurchases of long-term debt | (5,149) | (3,921) | (6,792) |
Cash dividends | (480) | (1,274) | (806) |
Common stock repurchased | (303) | (368) | (45) |
Treasury stock issued | 2 | 0 | 0 |
Withholding tax on share-based compensation | (14) | (6) | (6) |
Net cash used for financing activities | (326) | (1,810) | (370) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (58) | (1,706) | 1,091 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,017 | 2,723 | 1,632 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 959 | 1,017 | 2,723 |
Supplemental cash flow information | |||
Cash and cash equivalents | 498 | 541 | 2,272 |
Restricted cash and restricted cash equivalents | 461 | 476 | 451 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 959 | 1,017 | 2,723 |
Interest paid | (857) | (891) | (978) |
Income taxes paid | (343) | (403) | (289) |
Cash paid for amounts included in the measurement of operating lease liabilities | (58) | (58) | (57) |
Right-of-use assets obtained in exchange for operating lease obligations | $ 66 | $ 43 | $ 47 |
Consolidated Balance Sheets - O
Consolidated Balance Sheets - OMFC - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 498 | $ 541 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion and $1.9 billion in 2022, respectively, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,800 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $10.4 billion in 2022 and $8.8 billion in 2021) | 19,986 | 19,212 |
Unearned insurance premium and claim reserves | (749) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.1 billion in 2022 and $910 million in 2021) | (2,311) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,926 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $442 million in 2022 and $466 million in 2021) | 461 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 261 | 274 |
Other assets | 1,150 | 1,003 |
Total assets | 22,533 | 22,079 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $9.4 billion in 2022 and $8.0 billion in 2021) | 18,281 | 17,750 |
Insurance claims and policyholder liabilities | 602 | 621 |
Deferred and accrued taxes | 5 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | 616 | 614 |
Total liabilities | 19,504 | 18,986 |
Contingencies (Note 14) | ||
Shareholders’ equity: | ||
Common stock, par value $0.50 per share; 25,000000 shares authorized, 10,160021 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 1 | 1 |
Additional paid-in capital | 1,689 | 1,672 |
Accumulated other comprehensive income (loss) | (119) | 61 |
Retained earnings | 2,125 | 1,727 |
Total shareholders’ equity | 3,029 | 3,093 |
Total liabilities and shareholders’ equity | 22,533 | 22,079 |
Consolidated VIEs | ||
Assets | ||
Cash and cash equivalents | 2 | 2 |
Net finance receivables (includes loans of consolidated VIEs of $10.4 billion in 2022 and $8.8 billion in 2021) | 10,432 | 8,821 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.1 billion in 2022 and $910 million in 2021) | (1,126) | (910) |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $442 million in 2022 and $466 million in 2021) | 442 | 466 |
Other assets | 28 | 26 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $9.4 billion in 2022 and $8.0 billion in 2021) | 9,361 | 7,999 |
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | 20 | 13 |
OMFC | ||
Assets | ||
Cash and cash equivalents | 490 | 510 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion and $1.9 billion in 2022, respectively, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,800 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $10.4 billion in 2022 and $8.8 billion in 2021) | 19,986 | 19,212 |
Unearned insurance premium and claim reserves | (749) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.1 billion in 2022 and $910 million in 2021) | (2,311) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,926 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $442 million in 2022 and $466 million in 2021) | 461 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 261 | 274 |
Other assets | 1,148 | 1,001 |
Total assets | 22,523 | 22,046 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $9.4 billion in 2022 and $8.0 billion in 2021) | 18,281 | 17,750 |
Insurance claims and policyholder liabilities | 602 | 621 |
Deferred and accrued taxes | 5 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | 617 | 614 |
Total liabilities | 19,505 | 18,986 |
Contingencies (Note 14) | ||
Shareholders’ equity: | ||
Common stock, par value $0.50 per share; 25,000000 shares authorized, 10,160021 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 5 | 5 |
Additional paid-in capital | 1,933 | 1,916 |
Accumulated other comprehensive income (loss) | (119) | 61 |
Retained earnings | 1,199 | 1,078 |
Total shareholders’ equity | 3,018 | 3,060 |
Total liabilities and shareholders’ equity | 22,523 | 22,046 |
OMFC | Consolidated VIEs | ||
Assets | ||
Net finance receivables (includes loans of consolidated VIEs of $10.4 billion in 2022 and $8.8 billion in 2021) | 10,400 | 8,800 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.1 billion in 2022 and $910 million in 2021) | (1,100) | (910) |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $442 million in 2022 and $466 million in 2021) | 442 | 466 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $9.4 billion in 2022 and $8.0 billion in 2021) | 9,400 | 8,000 |
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | $ 20 | $ 13 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - OMFC (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities, fair value | $ 1,729 | $ 1,907 |
Investment securities, amortized cost basis | 1,897 | 1,842 |
Net finance receivables | 19,986 | 19,212 |
Financing receivable, allowance for credit loss | 2,311 | 2,095 |
Restricted cash and restricted cash equivalents | 461 | 476 |
Long-term debt | 18,281 | 17,750 |
Other liabilities | $ 616 | $ 614 |
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) | 121,042,125 | 127,809,640 |
Common stock, shares outstanding (in shares) | 121,042,125 | 127,809,640 |
OMFC | ||
Investment securities, fair value | $ 1,700 | $ 1,900 |
Investment securities, amortized cost basis | 1,900 | 1,800 |
Net finance receivables | 19,986 | 19,212 |
Financing receivable, allowance for credit loss | 2,311 | 2,095 |
Restricted cash and restricted cash equivalents | 461 | 476 |
Long-term debt | 18,281 | 17,750 |
Other liabilities | $ 617 | $ 614 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Consolidated VIEs | ||
Net finance receivables | $ 10,432 | $ 8,821 |
Financing receivable, allowance for credit loss | 1,126 | 910 |
Restricted cash and restricted cash equivalents | 442 | 466 |
Long-term debt | 9,361 | 7,999 |
Other liabilities | 20 | 13 |
Consolidated VIEs | OMFC | ||
Net finance receivables | 10,400 | 8,800 |
Financing receivable, allowance for credit loss | 1,100 | 910 |
Restricted cash and restricted cash equivalents | 442 | 466 |
Long-term debt | 9,400 | 8,000 |
Other liabilities | $ 20 | $ 13 |
Consolidated Statements of Op_2
Consolidated Statements of Operations - OMFC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income | $ 4,435 | $ 4,364 | $ 4,368 |
Interest expense | 892 | 937 | 1,027 |
Net interest income | 3,543 | 3,427 | 3,341 |
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Net interest income after provision for finance receivable losses | 2,141 | 2,834 | 2,022 |
Other revenues: | |||
Insurance | 445 | 434 | 443 |
Investment | 61 | 65 | 75 |
Gain on sales of finance receivables | 63 | 47 | 0 |
Net loss on repurchases and repayments of debt | (27) | (78) | (39) |
Other | 87 | 63 | 47 |
Total other revenues | 629 | 531 | 526 |
Other expenses: | |||
Salaries and benefits | 836 | 839 | 756 |
Other operating expenses | 621 | 609 | 573 |
Insurance policy benefits and claims | 150 | 176 | 242 |
Total other expenses | 1,607 | 1,624 | 1,571 |
Income before income taxes | 1,163 | 1,741 | 977 |
Income taxes | 285 | 427 | 247 |
Net income | 878 | 1,314 | 730 |
OMFC | |||
Interest income | 4,435 | 4,364 | 4,368 |
Interest expense | 892 | 937 | 1,027 |
Net interest income | 3,543 | 3,427 | 3,341 |
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Net interest income after provision for finance receivable losses | 2,141 | 2,834 | 2,022 |
Other revenues: | |||
Insurance | 445 | 434 | 443 |
Investment | 61 | 65 | 75 |
Gain on sales of finance receivables | 63 | 47 | 0 |
Net loss on repurchases and repayments of debt | (27) | (78) | (39) |
Other | 87 | 63 | 47 |
Total other revenues | 629 | 531 | 526 |
Other expenses: | |||
Salaries and benefits | 836 | 839 | 756 |
Other operating expenses | 621 | 609 | 573 |
Insurance policy benefits and claims | 150 | 176 | 242 |
Total other expenses | 1,607 | 1,624 | 1,571 |
Income before income taxes | 1,163 | 1,741 | 977 |
Income taxes | 285 | 427 | 247 |
Net income | $ 878 | $ 1,314 | $ 730 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income - OMFC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 878 | $ 1,314 | $ 730 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (229) | (53) | 66 |
Retirement plan liability adjustments | (12) | (1) | (2) |
Foreign currency translation adjustments | (10) | 1 | 2 |
Other | 22 | 11 | 0 |
Income tax effect: | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 50 | 12 | (15) |
Retirement plan liability adjustments | 3 | 1 | 0 |
Foreign currency translation adjustments | 2 | 0 | 0 |
Other | (5) | (3) | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (179) | (32) | 51 |
Net realized losses on available-for-sale securities, net of tax | (1) | (1) | (1) |
Reclassification adjustments included in net income, net of tax | (1) | (1) | (1) |
Other comprehensive income (loss), net of tax | (180) | (33) | 50 |
Comprehensive income | 698 | 1,281 | 780 |
OMFC | |||
Net income | 878 | 1,314 | 730 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (229) | (53) | 66 |
Retirement plan liability adjustments | (12) | (1) | (2) |
Foreign currency translation adjustments | (10) | 1 | 2 |
Other | 22 | 11 | 0 |
Income tax effect: | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 50 | 12 | (15) |
Retirement plan liability adjustments | 3 | 1 | 0 |
Foreign currency translation adjustments | 2 | 0 | 0 |
Other | (5) | (3) | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (179) | (32) | 51 |
Net realized losses on available-for-sale securities, net of tax | (1) | (1) | (1) |
Reclassification adjustments included in net income, net of tax | (1) | (1) | (1) |
Other comprehensive income (loss), net of tax | (180) | (33) | 50 |
Comprehensive income | $ 698 | $ 1,281 | $ 780 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders’ Equity - OMFC - USD ($) $ in Millions | Total | Net impact of adoption of ASU 2016-13 | [1] | Balance post-adoption | Common Stock | Common Stock Balance post-adoption | Additional Paid-in Capital | Additional Paid-in Capital Balance post-adoption | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Balance post-adoption | Retained Earnings | Retained Earnings Net impact of adoption of ASU 2016-13 | [1] | Retained Earnings Balance post-adoption | OMFC | OMFC Net impact of adoption of ASU 2016-13 | [2] | OMFC Balance post-adoption | OMFC Common Stock | OMFC Common Stock Balance post-adoption | OMFC Additional Paid-in Capital | OMFC Additional Paid-in Capital SMHC | OMFC Additional Paid-in Capital Balance post-adoption | OMFC Accumulated Other Comprehensive Income (Loss) | OMFC Accumulated Other Comprehensive Income (Loss) Balance post-adoption | OMFC Retained Earnings | OMFC Retained Earnings Net impact of adoption of ASU 2016-13 | [2] | OMFC Retained Earnings Balance post-adoption | ||
Balance at beginning of period at Dec. 31, 2019 | $ 4,330 | $ (828) | $ 3,502 | $ 1 | $ 1 | $ 1,689 | $ 1,689 | $ 44 | $ 44 | $ 2,596 | $ (828) | $ 1,768 | $ 4,325 | $ (828) | $ 3,497 | $ 5 | $ 5 | $ 1,888 | $ 1,888 | $ 44 | $ 44 | $ 2,388 | $ (828) | $ 1,560 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 17 | 17 | 17 | 17 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | (6) | $ (6) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | 50 | 50 | 50 | 50 | |||||||||||||||||||||||||||
Cash dividends | (807) | [3] | (807) | [3] | (848) | (848) | |||||||||||||||||||||||||
Net income | 730 | 730 | 730 | 730 | |||||||||||||||||||||||||||
Balance at end of period at Dec. 31, 2020 | 3,441 | 1 | 1,655 | 94 | 1,691 | 3,440 | 5 | 1,899 | 94 | 1,442 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 23 | 23 | 23 | 23 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | (6) | (6) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (33) | (33) | (33) | (33) | |||||||||||||||||||||||||||
Cash dividends | (1,278) | [3] | (1,278) | [3] | (1,678) | (1,678) | |||||||||||||||||||||||||
Net income | 1,314 | 1,314 | 1,314 | 1,314 | |||||||||||||||||||||||||||
Balance at end of period at Dec. 31, 2021 | 3,093 | 1 | 1,672 | 61 | 1,727 | 3,060 | 5 | 1,916 | 61 | 1,078 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 31 | 31 | 31 | 31 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | (14) | (14) | (14) | (14) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (180) | (180) | (180) | (180) | |||||||||||||||||||||||||||
Cash dividends | (478) | [3] | (478) | [3] | (757) | (757) | |||||||||||||||||||||||||
Net income | 878 | 878 | 878 | 878 | |||||||||||||||||||||||||||
Balance at end of period at Dec. 31, 2022 | $ 3,029 | $ 1 | $ 1,689 | $ (119) | $ 2,125 | $ 3,018 | $ 5 | $ 1,933 | $ (119) | $ 1,199 | |||||||||||||||||||||
[1]As a result of the adoption of ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. |
Consolidated Statements of Sh_3
Consolidated Statements of Shareholders’ Equity - OMFC (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 3.80 | $ 9.55 | $ 5.94 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - OMFC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||
Net income | $ 878 | $ 1,314 | $ 730 |
Reconciling adjustments: | |||
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Depreciation and amortization | 262 | 264 | 264 |
Deferred income tax charge (benefit) | (62) | 78 | (42) |
Net loss on repurchases and repayments of debt | 27 | 78 | 39 |
Share-based compensation expense, net of forfeitures | 31 | 23 | 17 |
Gain on sales of finance receivables | (63) | (47) | 0 |
Other | 2 | (8) | 3 |
Cash flows due to changes in other assets and other liabilities | (90) | (48) | (118) |
Net cash provided by operating activities | 2,387 | 2,247 | 2,212 |
Cash flows from investing activities | |||
Net principal originations and purchases of finance receivables | (2,775) | (2,514) | (748) |
Proceeds from sales of finance receivables | 790 | 560 | 0 |
Available-for-sale securities purchased | (530) | (517) | (456) |
Available-for-sale securities called, sold, and matured | 463 | 404 | 478 |
Other securities purchased | (6) | (708) | (538) |
Other securities called, sold, and matured | 14 | 701 | 542 |
Other, net | (75) | (69) | (29) |
Net cash used for investing activities | (2,119) | (2,143) | (751) |
Cash flows from financing activities | |||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 5,618 | 3,759 | 7,279 |
Repayments and repurchases of long-term debt | (5,149) | (3,921) | (6,792) |
Cash dividends | (480) | (1,274) | (806) |
Withholding tax on share-based compensation | (14) | (6) | (6) |
Net cash used for financing activities | (326) | (1,810) | (370) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (58) | (1,706) | 1,091 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,017 | 2,723 | 1,632 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 959 | 1,017 | 2,723 |
Supplemental cash flow information | |||
Cash and cash equivalents | 498 | 541 | 2,272 |
Restricted cash and restricted cash equivalents | 461 | 476 | 451 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 959 | 1,017 | 2,723 |
Interest paid | (857) | (891) | (978) |
Income taxes paid | (343) | (403) | (289) |
Cash paid for amounts included in the measurement of operating lease liabilities | (58) | (58) | (57) |
Right-of-use assets obtained in exchange for operating lease obligations | 66 | 43 | 47 |
OMFC | |||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||
Net income | 878 | 1,314 | 730 |
Reconciling adjustments: | |||
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Depreciation and amortization | 262 | 264 | 264 |
Deferred income tax charge (benefit) | (62) | 78 | (42) |
Net loss on repurchases and repayments of debt | 27 | 78 | 39 |
Share-based compensation expense, net of forfeitures | 31 | 23 | 17 |
Gain on sales of finance receivables | (63) | (47) | 0 |
Other | 2 | (8) | 3 |
Cash flows due to changes in other assets and other liabilities | (89) | (44) | (123) |
Net cash provided by operating activities | 2,388 | 2,251 | 2,207 |
Cash flows from investing activities | |||
Net principal originations and purchases of finance receivables | (2,775) | (2,514) | (748) |
Proceeds from sales of finance receivables | 790 | 560 | 0 |
Available-for-sale securities purchased | (530) | (517) | (456) |
Available-for-sale securities called, sold, and matured | 463 | 404 | 478 |
Other securities purchased | (6) | (708) | (538) |
Other securities called, sold, and matured | 14 | 701 | 542 |
Other, net | (75) | (69) | (29) |
Net cash used for investing activities | (2,119) | (2,143) | (751) |
Cash flows from financing activities | |||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 5,618 | 3,759 | 7,279 |
Repayments and repurchases of long-term debt | (5,149) | (3,921) | (6,792) |
Cash dividends | (759) | (1,677) | (846) |
Withholding tax on share-based compensation | (14) | (6) | (6) |
Net cash used for financing activities | (304) | (1,845) | (365) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (35) | (1,737) | 1,091 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 986 | 2,723 | 1,632 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 951 | 986 | 2,723 |
Supplemental cash flow information | |||
Cash and cash equivalents | 490 | 510 | 2,272 |
Restricted cash and restricted cash equivalents | 461 | 476 | 451 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 951 | 986 | 2,723 |
Interest paid | (857) | (891) | (978) |
Income taxes paid | (343) | (403) | (289) |
Cash paid for amounts included in the measurement of operating lease liabilities | (58) | (58) | (57) |
Right-of-use assets obtained in exchange for operating lease obligations | $ 66 | $ 43 | $ 47 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations OneMain Holdings, Inc. (“OMH”) and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”), are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses. The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America ("GAAP"). The statements include the accounts of OMH, its wholly owned subsidiarie s , and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2022 presentation, we reclassified certain items in prior periods of our consolidated financial statements. ACCOUNTING POLICIES Operating Segment At December 31, 2022, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans. Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a receivable-by-receivable basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. Our finance receivables held for investment consist of our personal loans and credit cards. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in our consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in our consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in Interest income in our consolidated statements of operations. We defer and amortize the costs to originate certain finance receivables and the revenue from nonrefundable fees, along with any premiums or discounts, as an adjustment to finance charge income using the interest method. For credit cards, we amortize certain deferred costs on a straight-line basis over a twelve-month period. For our personal loans, we stop accruing finance charges when four payments (approximately 90 days) become contractually past due. We reverse finance charge amounts previously accrue d upon suspension of accrual of finance charges. For credit cards, we continue to accrue finance charges and fees until charge-off when seven payments (approximately 180 days) become contractually past due, at which point we reverse finance charges and fees previously accrued. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. For our personal loans, we recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual personal loans when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time, we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. Troubled Debt Restructured Finance Receivables We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that receivable as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the effective interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, defer or forgive past due interest, or forgive principal. Additionally, as part of the modification, we may require qualifying payments and then the accounts are generally brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status. Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable. Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. We generally charge-off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge-off prior to the account becoming seven payments (approximately 180 days) past due. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. We also establish reserves for TDR finance receivables, which are included in Allowance for finance receivable losses in our consolidated balance sheets. The allowance for finance receivable losses related to our TDR finance receivables represent loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions to estimate these expected cash flows are prepayment speeds, default rates, and loss severity rates. Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with business combinations, primarily related to the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and whenever events occur or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the quantitative impairment test. When necessary, the fair value of the reporting unit is calculated utilizing the income approach, which uses prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset’s useful life. We have determined that each of our remaining intangible assets have indefinite lives with the exception of value of business acquired (“VOBA”), which has a finite useful life. We amortize our finite useful life intangible assets in a manner that reflects the pattern of economic benefit used. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For indefinite-lived intangible assets, we review for impairment at least annually and whenever events or changes in circumstances indicate the assets are more likely than not to be impaired. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the carrying value exceeds the estimated fair value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Leases All our leases are classified as operating leases, and we are the lessee or sublessor in all our lease arrangements. At inception of an arrangement, we determine if a lease exists. At lease commencement date, we recognize a right-of-use asset and a lease liability measured at the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Since our operating leases do not provide an implicit rate, we utilize the best available information to determine our incremental borrowing rate, which is used to calculate the present value of lease payments. The right-of-use asset also includes any prepaid fixed lease payments and excludes lease incentives. Options to extend or terminate a lease may be included in our lease arrangements. We reflect the renewal or termination option in the right-of-use asset and lease liability when it is reasonably certain that we will exercise those options. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. We have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component. Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in Other operating expenses in our consolidated statements of operations. In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments. The lease right-of-use assets are included in Other assets Other liabilities Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily consist of credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves, which we include as a reduction to Net finance receivables in our consolidated balance sheets. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance, and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts, a liability is accrued, which represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations. We recognize commissions on optional products as Other revenues - other in our consolidated statements of operations when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in Net finance receivables in our consolidated balance sheets. The insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in our consolidated statements of cash flows. Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in Other assets in our consolidated balance sheets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in Other assets in our consolidated balance sheets and amortize these costs over the terms of the related policies, whether directly written or reinsured. Investment Securities We generally classify our investment securities as available-for-sale or other, depending on management’s intent. Other securities primarily consist of equity securities and those securities for which the fair value option was elected. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in Other assets in our consolidated balance sheets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. Impairments on Investment Securities We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize the impairment as a direct write-down in Other revenues - investment in our consolidated statements of operation equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, not to exceed the total unrealized loss on the security. The cash flows expected to be collected are determined by assessing all available information, including issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, a credit impairment is considered to have occurred. If a credit impairment exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is bifurcated as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to non-credit related factors. We recognize the estimated credit loss as an allowance on the balance sheet in investment securities, with a corresponding loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. For investment securities in which a credit impairment was recorded through an allowance, we record subsequent increases and decreases in the allowance for credit losses as credit loss expense or reversal of credit loss expense in investment revenues. We will not reverse a previously recorded allowance to an amount below zero. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss. Interest receivables on our investment securities are excluded from the amortized cost and fair value and are recorded in Other assets in our consolidated balance sheets. We have elected not to measure an allowance on interest receivables due to our policy to reverse interest receivable at the time collectability is uncertain. The reversal of interest receivable is recorded in Other revenues - investment in our consolidated statements of operations. Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in Other revenues - investment in our consolidated statements of operations. We specifically identify realized gains and losses on investment securities and include them in Other revenues - investment in our consolidated statements of operations. Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. Restricted Cash and Cash Equivalents We include funds to be used for future debt payments and collateral relating to our secured debt, insurance regulatory deposits, and reinsurance trusts with third parties, in each case, in restricted cash and cash equivalents. Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to Interest expense in our consolidated statements of operations. Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely than not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. Retirement Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plan, in Other assets or Other liabilities in our consolidated balance sheets, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) Plan. Our contributions to the plan are charged to Salaries and benefits in our consolidated statements of operations. Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to Salaries and benefits in our consolidated statements of operations in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, int |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. Upon adoption, our assumptions used to measure the liability for future policy benefits will be updated at least annually. The guidance requires the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method. This ASU requires a transition date of January 1, 2021 and will result in recasting prior periods. Our long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection. The adoption of this ASU resulted in an increase to insurance claims and policyholder liabilities of $97 million, $71 million, and $18 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively, and a reduction to accumulated other comprehensive income, net of tax, of $75 million, $56 million, and $8 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively. The impact to retained earnings was immaterial as of January 1, 2021, December 31, 2021, and December 31, 2022. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method. The adoption of this ASU will not have a material impact on the consolidated financial statements. We do not believe that any other accounting pronouncements issued, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Finance Receivables | 4. Finance Receivables Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three Components of our net finance receivables were as follows: (dollars in millions) Personal Loans Credit Cards Total December 31, 2022 Gross finance receivables * $ 19,615 $ 107 $ 19,722 Unearned fees (220) — (220) Accrued finance charges and fees 299 — 299 Deferred origination costs 185 — 185 Total $ 19,879 $ 107 $ 19,986 December 31, 2021 Gross finance receivables * $ 18,944 $ 24 $ 18,968 Unearned fees (225) (1) (226) Accrued finance charges and fees 289 — 289 Deferred origination costs 179 2 181 Total $ 19,187 $ 25 $ 19,212 * Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees. GEOGRAPHIC DIVERSIFICATION Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows: December 31, 2022 2021 (a) (dollars in millions) Amount Percent Amount Percent Personal Loans: Texas $ 1,954 10 % $ 1,812 9 % Florida 1,446 7 1,255 7 California 1,391 7 1,289 7 Pennsylvania 1,249 6 1,199 6 North Carolina 1,110 6 1,117 6 Ohio 963 5 960 5 Georgia 792 4 770 4 Illinois 777 4 765 4 New York 749 4 681 4 Indiana 726 4 728 4 Other 8,722 43 8,611 44 Total personal loans $ 19,879 100 % $ 19,187 100 % Credit Cards: California $ 26 24 % $ 7 28 % Texas 15 14 4 14 Florida 8 8 2 7 Washington 5 5 1 5 Arizona 4 4 1 4 Pennsylvania 4 4 1 4 Other 45 41 9 38 Total credit cards $ 107 100 % $ 25 100 % (a) December 31, 2021 concentrations of net finance receivables are presented in the order of December 31, 2022 state concentrations. WHOLE LOAN SALE TRANSACTIONS As of December 31, 2022, we have whole loan sale flow agreements with third parties, with remaining terms of up to one year, in which we agreed to sell a combined total of $180 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues - other in our consolidated statements of operations. We sold $720 million and $505 million of gross finance receivables during the years ended December 31, 2022 and 2021, respectively. The gain on the sales were $63 million and $47 million during the years ended December 31, 2022 and 2021, respectively. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and collection of these accounts is managed by our centralized operations. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $126 million and $77 million during the years ended December 31, 2022 and 2021, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $16 million and $13 million during the years ended December 31, 2022 and 2021, respectively. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses. We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, net accrued finance charges and fees reversed for the years ended December 31, 2022 and 2021 were immaterial. The following tables below are a summary of our personal loans by the year of origination and number of days delinquent: (dollars in millions) 2022 2021 2020 2019 2018 Prior Total December 31, 2022 Performing Current $ 10,614 $ 4,927 $ 1,758 $ 1,081 $ 240 $ 105 $ 18,725 30-59 days past due 136 136 43 28 9 5 357 60-89 days past due 92 101 32 19 6 3 253 Total performing 10,842 5,164 1,833 1,128 255 113 19,335 Nonperforming (Nonaccrual) 90+ days past due 160 246 74 44 13 7 544 Total $ 11,002 $ 5,410 $ 1,907 $ 1,172 $ 268 $ 120 $ 19,879 (dollars in millions) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Performing Current $ 10,645 $ 3,935 $ 2,641 $ 814 $ 193 $ 109 $ 18,337 30-59 days past due 125 74 53 19 6 5 282 60-89 days past due 81 53 33 11 4 3 185 Total performing 10,851 4,062 2,727 844 203 117 18,804 Nonperforming (Nonaccrual) 90+ days past due 125 130 85 28 9 6 383 Total $ 10,976 $ 4,192 $ 2,812 $ 872 $ 212 $ 123 $ 19,187 The following is a summary of credit cards by number of days delinquent: (dollars in millions) December 31, 2022 2021 Current $ 93 $ 25 30-59 days past due 3 — 60-89 days past due 3 — 90+ days past due 8 — Total $ 107 $ 25 There were no credit cards that were converted to term loans at December 31, 2022 or December 31, 2021. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables were as follows: (dollars in millions) December 31, 2022 2021 TDR gross finance receivables $ 898 $ 646 TDR net finance receivables * 904 650 Allowance for TDR finance receivable losses 369 270 * TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs. There were no credit cards classified as TDR finance receivables at December 31, 2022 or December 31, 2021. Information regarding the new volume of the TDR finance receivables were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Pre-modification TDR net finance receivables $ 738 $ 453 $ 499 Post-modification TDR net finance receivables: Rate reduction 465 310 312 Other * 273 143 187 Total post-modification TDR net finance receivables $ 738 $ 453 $ 499 Number of TDR accounts 88,901 55,229 66,484 * “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms. Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table: (dollars in millions) Years Ended December 31, 2022 2021 2020 TDR net finance receivables * $ 136 $ 117 $ 105 Number of TDR accounts 17,297 16,046 15,229 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. UNFUNDED LENDING COMMITMENTS Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $81 million at December 31, 2022 and $54 million at December 31, 2021. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | 5. Allowance for Finance Receivable Losses We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the estimated lifetime expected credit losses on our finance receivables, pursuant to the adoption of ASU 2016-13 on January 1, 2020. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions. See Note 2 for additional information regarding our accounting policies for allowance for finance receivable losses. Our current methodology to estimate expected credit losses used the most recent macroeconomic forecasts, which incorporated the overall unemployment rate. Our unemployment outlook leveraged economic projections from various industry leading forecast providers. We also considered inflationary pressures, consumer confidence levels, and continued interest rate increases negatively impacting the economic outlook. At December 31, 2022, our economic forecast used a reasonable and supportable period of 12 months. The increase in our allowance for finance receivable losses for the year ended December 31, 2022 was primarily due to the weakened macroeconomic environment and growth in our loan portfolio. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses. Changes in the allowance for finance receivable losses were as follows: (dollars in millions) Personal Loans Credit Cards Total Year Ended December 31, 2022 Balance at beginning of period $ 2,090 $ 5 $ 2,095 Provision for finance receivable losses 1,379 23 1,402 Charge-offs (1,431) (7) (1,438) Recoveries 252 — 252 Balance at end of period $ 2,290 $ 21 $ 2,311 Year Ended December 31, 2021 Balance at beginning of period $ 2,269 $ — $ 2,269 Provision for finance receivable losses 588 5 593 Charge-offs (989) — (989) Recoveries 222 — 222 Balance at end of period $ 2,090 $ 5 $ 2,095 Year Ended December 31, 2020 (a) Balance at beginning of period $ 829 $ — $ 829 Impact of adoption of ASU 2016-13 (b) 1,118 — 1,118 Provision for finance receivable losses 1,319 — 1,319 Charge-offs (1,162) — (1,162) Recoveries 165 — 165 Balance at end of period $ 2,269 $ — $ 2,269 (a) There were no credit cards for the year ended December 31, 2020 as the product offering began in 2021. (b) As a result of the adoption of ASU 2016-13 on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) Personal Loans Credit Cards Total December 31, 2022 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,921 $ 21 $ 1,942 TDR finance receivables 369 — 369 Total $ 2,290 $ 21 $ 2,311 Finance receivables: Collectively evaluated for impairment $ 18,975 $ 107 $ 19,082 TDR finance receivables 904 — 904 Total $ 19,879 $ 107 $ 19,986 Allowance for finance receivable losses as a percentage of finance receivables 11.52 % 19.12 % 11.56 % December 31, 2021 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,820 $ 5 $ 1,825 TDR finance receivables 270 — 270 Total $ 2,090 $ 5 $ 2,095 Finance receivables: Collectively evaluated for impairment $ 18,537 $ 25 $ 18,562 TDR finance receivables 650 — 650 Total $ 19,187 $ 25 $ 19,212 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.91 % 10.90 % |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 6. Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair December 31, 2022* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 17 $ — $ (1) $ 16 Obligations of states, municipalities, and political subdivisions 74 — (8) 66 Commercial paper 55 — — 55 Non-U.S. government and government sponsored entities 150 — (8) 142 Corporate debt 1,251 1 (115) 1,137 Mortgage-backed, asset-backed, and collateralized: RMBS 217 — (25) 192 CMBS 38 — (3) 35 CDO/ABS 95 — (9) 86 Total $ 1,897 $ 1 $ (169) $ 1,729 December 31, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 16 $ — $ — $ 16 Obligations of states, municipalities, and political subdivisions 76 3 — 79 Commercial paper 50 — — 50 Non-U.S. government and government sponsored entities 151 4 — 155 Corporate debt 1,246 61 (5) 1,302 Mortgage-backed, asset-backed, and collateralized: RMBS 169 3 (2) 170 CMBS 44 1 — 45 CDO/ABS 90 1 (1) 90 Total $ 1,842 $ 73 $ (8) $ 1,907 * The allowance for credit losses related to our investment securities as of December 31, 2022 and December 31, 2021 were immaterial. Interest receivables reported in Other assets in our consolidated balance sheets totaled $14 million as of December 31, 2022 and $13 million as of December 31, 2021, respectively. There were no material amounts reversed from investment revenue for available-for-sale securities for the years ended December 31, 2022 and 2021. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 U.S. government and government sponsored entities $ 10 $ — $ 6 $ (1) $ 16 $ (1) Obligations of states, municipalities, and political subdivisions 48 (5) 15 (3) 63 (8) Commercial paper 51 — — — 51 — Non-U.S. government and government sponsored entities 104 (3) 32 (5) 136 (8) Corporate debt 779 (54) 299 (61) 1,078 (115) Mortgage-backed, asset-backed, and collateralized: RMBS 106 (9) 68 (16) 174 (25) CMBS 21 (2) 13 (1) 34 (3) CDO/ABS 45 (3) 35 (6) 80 (9) Total $ 1,164 $ (76) $ 468 $ (93) $ 1,632 $ (169) December 31, 2021 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 10 — — — 10 — Commercial paper 46 — — — 46 — Non-U.S. government and government sponsored entities 19 — 5 — 24 — Corporate debt 208 (3) 38 (2) 246 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 81 (1) 15 (1) 96 (2) CMBS 7 — — — 7 — CDO/ABS 41 (1) 3 — 44 (1) Total $ 418 $ (5) $ 61 $ (3) $ 479 $ (8) On a lot basis, we had 2,280 and 570 investment securities in an unrealized loss position at December 31, 2022 and December 31, 2021, 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, as of December 31, 2022, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of December 31, 2022, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the years ended December 31, 2022 and 2021, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the years ended December 31, 2022 and 2021. The proceeds of available-for-sale securities sold or redeemed totaled $278 million, $250 million and $259 million during 2022, 2021, and 2020, respectively. The net realized gains and losses were immaterial during the years ended December 31, 2022, 2021 and 2020. Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2022 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 200 $ 201 Due after 1 year through 5 years 518 548 Due after 5 years through 10 years 541 614 Due after 10 years 157 184 Mortgage-backed, asset-backed, and collateralized securities 313 350 Total $ 1,729 $ 1,897 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 $532 million and $587 million at December 31, 2022 and December 31, 2021, respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) December 31, 2022 December 31, 2021 Fixed maturity other securities: Bonds $ 23 $ 30 Preferred stock * 15 22 Common stock * 33 33 Total $ 71 $ 85 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. Net unrealized losses on other securities held were $9 million for the year ended December 31, 2022 and immaterial for the years ended December 31, 2021 and 2020. Net realized gains and losses on other securities sold or redeemed were immaterial during 2022, 2021, and 2020. Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets GOODWILL The carrying amount of goodwill totaled $1.4 billion at December 31, 2022 and 2021. We did not record any impairments to goodwill during 2022, 2021 and 2020. OTHER INTANGIBLE ASSETS The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2022 Trade names $ 220 $ — $ 220 Licenses 25 — 25 VOBA 105 (90) 15 Other 1 — 1 Total $ 351 $ (90) $ 261 December 31, 2021 Trade names $ 220 $ — $ 220 VOBA 105 (77) 28 Licenses 25 — 25 Customer relationships 223 (223) — Other 13 (12) 1 Total $ 586 $ (312) $ 274 Amortization expense totaled $13 million in 2022, $32 million in 2021, and $37 million in 2020. The estimated aggregate amortization of other intangible assets for each of the next five years is immaterial. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt Carrying value and fair value of long-term debt by type were as follows: December 31, 2022 December 31, 2021 (dollars in millions) Carrying Fair Carrying Fair Senior debt $ 18,109 $ 16,782 $ 17,578 $ 18,574 Junior subordinated debt 172 187 172 207 Total $ 18,281 $ 16,969 $ 17,750 $ 18,781 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2022 2021 2020 2022 2021 Senior debt 4.97 % 5.38 % 5.68 % 5.06 % 5.05 % Junior subordinated debt 7.42 4.02 5.64 11.91 3.86 Total 4.99 5.37 5.68 5.12 5.03 Principal maturities of long-term debt by type of debt at December 31, 2022 were as follows: Senior Debt (dollars in millions) Securitizations Private Secured Term Funding Revolving Unsecured Junior Total Interest rates (b) 0.87%-6.55% 5.24 % 4.57% 3.50%-8.25% 5.83 % 2023 $ — $ — $ — $ 1,004 $ — $ 1,004 2024 — — — 1,270 — 1,270 2025 — — — 1,249 — 1,249 2026 — — — 1,600 — 1,600 2027 — — — 750 — 750 2028-2067 — — — 2,933 350 3,283 Secured (c) 9,003 350 50 — — 9,403 Total principal maturities $ 9,003 $ 350 $ 50 $ 8,806 $ 350 $ 18,559 Total carrying amount $ 8,962 $ 349 $ 50 $ 8,748 $ 172 $ 18,281 Debt issuance costs (d) (38) (1) — (62) — (101) (a) Pursuant to the Base Indenture, the Supplemental Indentures and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at December 31, 2022. (c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities 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. See Note 9 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $31 million at December 31, 2022 and are reported in Other assets in our consolidated balance sheets. (e) During the year ended December 31, 2022, we repurchased, in the open market, portions of our Unsecured Notes in the amount of $269 million. In connection with these repurchases, we recognized a net gain of $2 million in Net loss on repurchases and repayments of debt in our consolidated statements of operations. 2022 DEBT ISSUANCES AND REDEMPTIONS Redemption of 8.875% Senior Notes Due 2025 On April 26, 2022, OMFC issued a notice to fully redeem its 8.875% Senior Notes due 2025. On June 1, 2022, OMFC paid a net aggregate amount of $637 million, inclusive of accrued interest and premiums, to complete the redemption. In connection with the redemption, we recognized $26 million of net loss on repurchases and repayments of debt during the second quarter of 2022. UNSECURED CORPORATE REVOLVER On June 15, 2022, OMFC increased the total maximum borrowing capacity of its unsecured corporate revolver to $1.25 billion. The corporate revolver has a five-year term beginning October 25, 2021, during which draws and repayments may occur. Any outstanding principal balance is due and payable on October 25, 2026. At December 31, 2022, no amounts were drawn under this facility. DEBT COVENANTS OMFC Debt Agreements The debt agreements to which OMFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) OMFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes OMFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of OMFC’s long-term debt discussed above are subject to customary release provisions. With the exception of OMFC’s junior subordinated debenture and unsecured corporate revolver, none of our debt agreements requires OMFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty, may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. As of December 31, 2022, OMFC was in compliance with all of the covenants under its debt agreements. Junior Subordinated Debenture In January of 2007, OMFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60-year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by OMFC. OMFC can redeem the Junior Subordinated Debenture at par. On December 30, 2013, OMH entered into a guaranty agreement whereby it agreed to fully and unconditionally guarantee, on a junior subordinated basis, the payment of principal, premium (if any), and interest on the Junior Subordinated Debenture. The interest rate on the remaining principal balance of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 5.83% as of December 31, 2022. ICE Benchmark Administration and the Financial Conduct Authority have announced that the publication of the most commonly used USD LIBOR settings will cease to be provided or cease to be representative after June 30, 2023. We expect the Junior Subordinated Debenture to transition from a LIBOR-based interest rate to a SOFR-based interest rate in accordance with the statutory framework provided by the Adjustable Interest Rate (LIBOR) Act, enacted in March 2022, and the rules adopted in December 2022 by the Board of Governors of the Federal Reserve System. Pursuant to the terms of the Junior Subordinated Debenture, OMFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated Debenture (and not make dividend payments) unless OMFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated Debenture. A mandatory trigger event occurs if OMFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 9. Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including secured debt and revolving conduit transactions. We have determined that OMFC or OneMain Financial Holdings, LLC (“OMFH”) is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. OMFC or OMFH is deemed to be the primary beneficiary of each VIE because OMFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from OMFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations and conduits issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. With respect to each financing transaction that is subject to the risk retention requirements of the Dodd-Frank Act, we either retain at least 5% of the balance of each such class of debt obligations and at least 5% of the residual interest in each related VIE or retain at least 5% of the fair value of all ABS interests (as defined in the risk retention requirements), which is satisfied by retention of the residual interest in each related VIE, which, in each case, collectively, represents at least 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows: (dollars in millions) December 31, 2022 2021 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 10,432 8,821 Allowance for finance receivable losses 1,126 910 Restricted cash and restricted cash equivalents 442 466 Other assets 28 26 Liabilities Long-term debt $ 9,361 $ 7,999 Other liabilities 20 13 Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $305 million in 2022, $293 million in 2021, and $338 million in 2020. SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from two PRIVATE SECURED TERM FUNDING At December 31, 2022, an aggregate amount of $350 million was outstanding under the private secured term funding collateralized by our personal loans. No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period, at the expiration of which the outstanding principal amount is due and payable. REVOLVING CONDUIT FACILITIES We had access to 15 revolving conduit facilities with a total maximum borrowing capacity of $6.2 billion as of December 31, 2022. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of December 31, 2022. Amounts drawn on these facilities are collateralized by our personal loans. At December 31, 2022, $50 million was drawn under these facilities and the remaining borrowing capacity was $6.1 billion. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Insurance | 10. Insurance Our insurance business is conducted through our wholly owned insurance subsidiaries, American Health and Life Insurance Company (“AHL”) and Triton Insurance Company (“Triton”). AHL is a life and health insurance company licensed in 49 states, the District of Columbia, and Canada to write credit life, credit disability, and non-credit insurance products. Triton is a property and casualty insurance company licensed in 50 states, the District of Columbia, and Canada to write credit involuntary unemployment, credit disability, and collateral protection insurance. INSURANCE RESERVES Components of our insurance reserves were as follows: (dollars in millions) December 31, 2022 2021 Finance receivable related: Payable to OMH: Unearned premium reserves $ 672 $ 677 Claim reserves 77 84 Subtotal (a) 749 761 Payable to third-party beneficiaries (b) 257 256 Non-finance receivable related (b) 345 365 Total $ 1,351 $ 1,382 (a) Reported in Unearned insurance premium and clam reserves in our consolidated balance sheets. (b) Reported in Insurance claims and policyholder liabilities in our consolidated balance sheets. Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies totaled $305 million and $322 million at December 31, 2022 and 2021, respectively. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $60 million and $62 million at December 31, 2022 and 2021, respectively. Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): (dollars in millions) At or for the Years Ended December 31, 2022 2021 2020 Balance at beginning of period $ 118 $ 148 $ 117 Less reinsurance recoverables (3) (3) (4) Net balance at beginning of period 115 145 113 Additions for losses and loss adjustment expenses incurred to: Current year 177 212 272 Prior years * (11) (18) (11) Total 166 194 261 Reductions for losses and loss adjustment expenses paid related to: Current year (108) (135) (161) Prior years (72) (89) (67) Total (180) (224) (228) Foreign currency translation adjustment 1 — (1) Net balance at end of period 102 115 145 Plus reinsurance recoverables 3 3 3 Balance at end of period $ 105 $ 118 $ 148 * At December 31, 2022, $11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims. At December 31, 2021, $18 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit disability and unemployment claims. At December 31, 2020, $11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims. Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2022, were as follows: Years Ended December 31, At December 31, 2022 (dollars in millions) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 Incurred-but- Cumulative Number of Reported Claims Cumulative Credit Insurance Accident Year 2018 $ 146 $ 135 $ 134 $ 132 $ 131 $ — 42,897 2.2 % 2019 — 155 150 150 147 3 45,492 2.0 % 2020 — — 226 209 205 8 68,766 3.1 % 2021 — — — 162 156 19 37,845 1.7 % 2022 — — — — 140 58 27,284 1.2 % Total $ 779 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2022, were as follows: Years Ended December 31, (dollars in millions) 2018 * 2019 * 2020 * 2021 * 2022 Credit Insurance Accident Year 2018 $ 81 $ 115 $ 124 $ 129 $ 130 2019 — 88 128 139 144 2020 — — 128 186 197 2021 — — — 99 137 2022 — — — — 83 Total $ 691 All outstanding liabilities before 2018, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 88 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2022 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 88 Other short-duration insurance lines 2 Total 90 Insurance lines other than short-duration 15 Total gross liability for unpaid claims and claim adjustment expense $ 105 We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. There have been no significant changes in methodologies or assumptions during 2022. Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2022, were as follows: Years 1 2 3 4 5 Credit insurance* 61.5 % 26.5 % 6.5 % 3.6 % 1.3 % * Unaudited. STATUTORY ACCOUNTING Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Department of Insurance (“DOI”) which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis. Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Property and casualty: Triton $ 58 $ 66 $ (7) Life and health: AHL $ 98 $ 79 $ 114 Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2022 2021 Property and casualty: Triton $ 210 $ 210 Life and health: AHL $ 387 $ 292 Our insurance companies are also subject to risk-based capital requirements adopted by the Texas DOI. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2022 and 2021, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. DIVIDEND RESTRICTIONS Our insurance subsidiaries are subject to domiciliary state regulations that limit their ability to pay dividends. AHL and Triton are domiciled in Texas. State law restricts the amounts that our insurance subsidiaries may pay as dividends without prior notice to the state of domicile DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for a Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the state of domicile DOI. The maximum ordinary dividends for a Texas domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net income. Any amount greater must be approved by the state of domicile DOI. These approved dividends are called “extraordinary dividends.” Ordinary dividends paid were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Property and casualty: Triton $ 50 $ — $ — Life and health: AHL $ — $ 50 $ 48 No extraordinary dividends were paid during 2022, 2021, or 2020. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share (OMH Only) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share (OMH Only) | 11. Capital Stock and Earnings Per Share (OMH Only) CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors (the “Board”) and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance. Par value and shares authorized at December 31, 2022 were as follows: OMH OMFC Preferred Stock * Common Stock Special Stock Common Stock Par value $ 0.01 $ 0.01 $ — $ 0.50 Shares authorized 300,000,000 2,000,000,000 25,000,000 25,000,000 * No shares of OMH preferred stock or OMFC special stock were issued and outstanding at December 31, 2022 or 2021. Changes in OMH shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2022 2021 2020 Balance at beginning of period 127,809,640 134,341,724 136,101,156 Common shares issued 333,038 180,839 272,266 Common shares repurchased* (7,181,023) (6,712,923) (2,031,698) Treasury stock issued 80,470 — — Balance at end of period 121,042,125 127,809,640 134,341,724 * During the years ended December 31, 2022 and 2021, the common stock repurchased was held in treasury. During the year ended December 31, 2020, the common stock repurchased was retired. OMFC shares issued and outstanding were as follows: Special Stock Common Stock 2022 2021 2022 2021 Shares issued and outstanding — — 10,160,021 10,160,021 EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2022 2021 2020 Numerator (basic and diluted): Net income $ 878 $ 1,314 $ 730 Denominator: Weighted average number of shares outstanding (basic) 124,178,643 132,653,889 134,716,012 Effect of dilutive securities * 238,631 400,605 203,246 Weighted average number of shares outstanding (diluted) 124,417,274 133,054,494 134,919,258 Earnings per share: Basic $ 7.07 $ 9.90 $ 5.42 Diluted $ 7.06 $ 9.87 $ 5.41 * We have excluded weighted-average unvested restricted stock units totaling 1,335,442, 421,511, and 231,125 for 2022, 2021, and 2020, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future. Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units (“RSUs”). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Other (b) Total Year Ended December 31, 2022 Balance at beginning of period $ 49 $ 1 $ 3 $ 8 $ 61 Other comprehensive income (loss) before reclassifications (179) (9) (8) 17 (179) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ (131) $ (8) $ (5) $ 25 $ (119) Year Ended December 31, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (41) — 1 8 (32) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 49 $ 1 $ 3 $ 8 $ 61 Year Ended December 31, 2020 Balance at beginning of period $ 41 $ 3 $ — $ 44 Other comprehensive income (loss) before reclassifications 51 (2) 2 — 51 Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 91 $ 1 $ 2 $ — $ 94 (a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the years ended December 31, 2022 and 2021. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were immaterial for the years ended December 31, 2022, 2021, and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes OMH and all of its eligible domestic U.S. subsidiaries file a consolidated life/non-life federal tax return with the IRS. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH. The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico, and the U.S. Virgin Islands. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2022, the Company had no undistributed foreign earnings. Components of income before income tax expense were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Income before income tax expense - U.S. operations $ 1,142 $ 1,722 $ 973 Income before income tax expense - foreign operations 21 19 4 Total $ 1,163 $ 1,741 $ 977 Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Current: Federal $ 288 $ 298 $ 235 Foreign 4 1 9 State 55 50 45 Total current 347 349 289 Deferred: Federal (51) 55 (43) State (11) 23 1 Total deferred (62) 78 (42) Total $ 285 $ 427 $ 247 Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico, and the U.S. Virgin Islands. OMH's and OMFC’s reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal 2.93 3.27 3.52 Change in valuation allowance 0.18 0.24 0.08 Nondeductible compensation 0.48 0.50 0.25 Other, net (0.08) (0.45) 0.48 Effective income tax rate 24.51 % 24.56 % 25.33 % The lower effective income tax rate in 2022 as compared to 2021 is primarily due to lower state tax expense. The lower effective income tax rate in 2021 as compared to 2020 is primarily due to recording the benefit of tax credits and lower state tax expense. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 8 $ 10 $ 12 Lapse in statute of limitations (3) (2) (4) Increases in tax positions for prior years 1 2 — Increases in tax positions for current years — 2 2 Settlements with tax authorities — (4) — Balance at end of year $ 6 $ 8 $ 10 Our gross unrecognized tax benefits include related interest and penalties. We accrue interest and penalties related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. We are under examination by various states for the years 2017 to 2021. Management believes it has adequately provided for taxes for such years. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 573 $ 523 Net operating losses and tax credits 35 32 Fair value of equity and securities investments 29 — Capitalized research and experimental costs 29 — Insurance reserves 24 34 Pension/employee benefits 24 22 Other 28 32 Total 742 643 Deferred tax liabilities: Goodwill 166 144 Debt fair value adjustment 42 43 Deferred loan fees 25 33 Fair value of equity and securities investments — 17 Fixed assets 16 13 Other 11 26 Total 260 276 Net deferred tax assets before valuation allowance 482 367 Valuation allowance (30) (28) Net deferred tax assets $ 452 $ 339 The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. The increase in net deferred tax assets of $113 million was primarily due to the tax effect of the increase in the allowance for finance receivable losses, the capitalization of research and experimental costs, and the fair value of investment securities. At December 31, 2022, we had state net operating loss carryforwards of $480 million compared to $375 million at December 31, 2021. The state net operating loss carryforwards mostly expire between 2038 and 2043, except for some states which conform to the federal rules for indefinite carryforward. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit, of $24 million and $23 million at December 31, 2022 and 2021, respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more likely than not to not be realized. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. The IRA includes a 15% Corporate Alternative Minimum Tax (“Corporate AMT”) for tax years beginning after December 31, 2022. We do not expect the Corporate AMT to have a material impact on our consolidated financial statements. Additionally, the IRA imposes a 1% excise tax on net repurchases of stock by certain publicly traded corporations. The excise tax is imposed on the value of the net stock repurchased or treated as repurchased. The new law will apply to stock repurchases occurring after December 31, 2022. |
Leases and Contingencies
Leases and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases and Contingencies | 14. Leases and Contingencies LEASES Our operating leases primarily consist of leased office space, automobiles, and information technology equipment and have remaining lease terms of one Our operating right-of-use asset and liability balances were $152 million and $161 million, respectively, at December 31, 2022 and $140 million and $151 million, respectively, at December 31, 2021. At December 31, 2022, maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2023 $ 58 2024 46 2025 35 2026 23 2027 14 2028 2 Thereafter 1 Total lease payments 179 Imputed interest (18) Total $ 161 Weighted Average Remaining Lease Term 3.71 Weighted Average Discount Rate 3.24 % Operating lease cost and variable lease cost, which are recorded in Other operating expenses in our consolidated statements of operations, were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Operating lease cost $ 58 $ 60 $ 63 Variable lease cost 14 15 15 Total $ 72 $ 75 $ 78 Our sublease income was immaterial for the years ended December 31, 2022, 2021, and 2020. LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536. The staff’s investigation is focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase. We are cooperating with the CFPB in this matter and expect ongoing interactions. Although the Company believes it has not violated the Consumer Financial Protection Act, we are unable to estimate how long this investigation will continue, whether and in what manner the CFPB may commence legal action, or what the ultimate outcome of this matter will be. Should the CFPB opt to commence legal proceedings, it may seek civil monetary penalties, restitution, injunctive relief, or other damages. The Company does not currently believe that the outcome of this matter will have a material adverse effect on our business, financial condition, or results of operations. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | 15. Retirement Benefit Plans The Company sponsors various retirement benefit plans to eligible employees of the Company. DEFINED CONTRIBUTION PLANS OneMain 401(k) Plan The OneMain 401(k) Plan (the “401(k) Plan”) provided for a 100% Company matching on the first 4% of the salary reduction contributions of the U.S. employees for 2022, 2021, and 2020. The salaries and benefits expense associated with this plan was $19 million in 2022, $17 million in 2021, and $18 million in 2020. In addition, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. The Company did not make any discretionary profit sharing contributions to the 401(k) Plan in 2022, 2021, or 2020. OneMain Nonqualified Deferred Compensation Plan The OneMain Holdings, Inc. Nonqualified Deferred Compensation Plan (the “NQDC Plan”) was approved by the committee of the Board which oversees OMH’s compensation programs (the “Compensation Committee”) in October 2021 and provides certain eligible employees with the option to defer receipt of some or all of their annual cash incentives and some of their base salaries earned on or after January 1, 2022. Employer contributions are not permitted under the NQDC Plan and employee contributions will be fully vested at all times. Distributions of participant accounts will be made following a participant’s separation of service, death, disability, unforeseeable emergency or as of a future payment date specified by the participant. The NQDC Plan assets and related obligation was immaterial as of December 31, 2022. Investment income or loss earned by the NQDC Plan is recorded as Other revenues - other in our consolidated statements of operations. The investment income or loss also represents an increase or decrease in the future payout to the participants with an offset recorded as Salaries and benefits in our consolidated statements of operations. The net effect of investment income or loss and the related salaries and benefits expense or benefit has no impact on our net income. DEFINED BENEFIT PLANS Springleaf Financial Services Retirement Plan The Springleaf Financial Services Retirement Plan (the “Springleaf Retirement Plan”) is a qualified non-contributory defined benefit plan, which is subject to the provisions of Employee Retirement Income Security Act of 1974 (“ERISA”). Effective December 31, 2012, the Springleaf Retirement Plan was frozen with respect to both benefits accrual and new participation. U.S. salaried employees who were employed by a participating company, had attained age 21, and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Springleaf Retirement Plan that accrued prior to January 1, 2013. CommoLoCo Retirement Plan The CommoLoCo Retirement Plan is a qualified non-contributory defined benefit plan, which is subject to the provisions of ERISA and the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service, were eligible to participate in the plan. Our former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. Unfunded Defined Benefit Plans We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) the Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. OBLIGATIONS AND FUNDED STATUS The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) At or for the Years Ended December 31, 2022 2021 2020 Projected benefit obligation, beginning of period $ 374 $ 401 $ 364 Interest cost 8 7 10 Actuarial loss (gain) (a) (91) (18) 42 Benefits paid: Plan assets (16) (16) (15) Projected benefit obligation, end of period (b) 275 374 401 Fair value of plan assets, beginning of period 383 405 363 Actual return on plan assets, net of expenses (90) (7) 56 Company contributions 1 1 1 Benefits paid: Plan assets (16) (16) (15) Fair value of plan assets, end of period (b) 278 383 405 Funded status, end of period $ 3 $ 9 $ 4 Net plan assets recognized in our consolidated balance sheets (b) $ 3 $ 9 $ 4 Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) $ (10) $ 2 $ 3 (a) For the years ended December 31, 2022, 2021, and 2020, the actuarial gains or losses were primarily due to year-over-year fluctuations in discount rates used to calculate the present value of benefit obligations for the defined benefit plans. Adoption of updated mortality assumptions had additional impacts on calculation of gains or losses. (b) Includes one overfunded benefit plan with net plan assets recognized in Other assets in our consolidated balance sheets of $14 million, $22 million, and $18 million at December 31, 2022, 2021, and 2020, respectively and three underfunded benefit plans, with net projected benefit obligations recognized in Other liabilities in our consolidated balance sheets of $11 million, $13 million, and $14 million at December 31, 2022, 2021, and 2020, respectively. The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Years Ended December 31, 2022 2021 2020 Components of net periodic benefit cost: Interest cost $ 8 $ 7 $ 10 Expected return on assets (13) (12) (15) Net periodic benefit cost (5) (5) (5) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss 12 1 2 Total recognized in other comprehensive income 12 1 2 Total recognized in net periodic benefit cost and other comprehensive income $ 7 $ (4) $ (3) Assumptions The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: December 31, 2022 2021 Projected benefit obligation: Discount rate 4.96 % 2.67 % Net periodic benefit costs: Discount rate 2.67 % 2.30 % Expected long-term rate of return on plan assets 3.54 % 3.04 % Discount Rate Methodology The projected benefit cash flows were discounted using the spot rates derived from the unadjusted FTSE Pension Discount Curve at December 31, 2022 and December 31, 2021, and an equivalent weighted average discount rate was derived that resulted in the same liability. Investment Strategy The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. Allocation of Plan Assets The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans’ assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. At December 31, 2022, the actual asset allocation for the primary asset classes was 95% in fixed income securities, 4% in equity securities, and 1% in cash and cash equivalents. The 2023 target asset allocation for the primary asset classes is 95% in fixed income securities and 5% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. The expected long-term rate of return for the plans was 3.5% for the Springleaf Retirement Plan and 4.75% for the CommoLoCo Retirement Plan for 2022. The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term, and thus, not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2022 are as follows: (dollars in millions) Expected Future Benefit Payments 2023 $ 17 2024 17 2025 17 2026 17 2027 18 2028-2032 90 FAIR VALUE MEASUREMENTS — PLAN ASSETS The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. See Note 2 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2022 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) 1 — — 1 International (b) 1 — — 1 Fixed income securities: U.S. investment grade (c) 16 192 — 208 U.S. high yield (d) — 3 — 3 Total $ 21 $ 195 $ — $ 216 Investments measured at NAV (e) 62 Total investments at fair value $ 278 December 31, 2021 Assets: Cash and cash equivalents $ 4 $ — $ — $ 4 Equity securities: U.S. (a) 1 1 — 2 International (b) 1 — — 1 Fixed income securities: U.S. investment grade (c) 28 276 — 304 U.S. high yield (d) — 4 — 4 Total $ 34 $ 281 $ — $ 315 Investments measured at NAV (e) 68 Total investments at fair value $ 383 (a) Includes mutual funds that track common market indexes such as the S&P 500 as well as other indexes comprised of investments in small and large cap companies. (b) Includes mutual funds that track common market indexes comprised of investments in companies in emerging and developed markets. (c) Includes mutual funds and collective investment trusts invested in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes mutual funds and collective investment trusts invested in securities or debt obligations that have a rating below investment grade. (e) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 16. Share-Based Compensation ONEMAIN HOLDINGS, INC. AMENDED 2013 OMNIBUS INCENTIVE PLAN In 2013, OMH adopted the OneMain Holdings, Inc. Amended 2013 Omnibus Incentive Plan (the “Omnibus Plan”). As of December 31, 2022, 12,335,931 shares of common stock were reserved for issuance under the Omnibus Plan. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, RSUs, restricted stock awards, stock appreciation rights, and other stock-based awards and cash awards. Total share-based compensation expense, net of forfeitures, for all equity-based awards totaled $29 million, $22 million, and $15 million during 2022, 2021, and 2020, respectively. The total income tax benefit recognized for stock-based compensation was $7 million, $6 million, and $4 million in 2022, 2021, and 2020, respectively. As of December 31, 2022, there was total unrecognized compensation expense of $41 million related to unvested stock-based awards that are expected to be recognized over a weighted average period of approximately two years. Service-based Awards OMH has granted service-based RSUs to certain non-employee directors, executives, and employees. The RSUs are granted with varying service terms of one year to five years and do not provide the holders with any rights as shareholders, except with respect to dividend equivalents. The grant date fair value for RSUs is generally the closing market price of OMH’s common stock on the date of the award. Expense for service-based awards is amortized on a straight-line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2022, 2021, and 2020, was $50.43, $55.39, and $39.86, respectively. The total fair value of service-based awards that vested during 2022, 2021, and 2020 was $18 million, $12 million, and $15 million, respectively. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2022: Number of Weighted Weighted Unvested as of January 1, 2022 736,285 $ 51.25 Granted 390,711 50.43 Vested (359,145) 48.84 Forfeited (27,436) 52.11 Unvested at December 31, 2022 740,415 51.43 2.14 Performance-based Awards During 2022, 2021 and 2020, OMH awarded certain executives performance-based awards that may be earned based on the financial performance of OMH or the market performance of OMH’s common stock. These awards are subject to the achievement of performance goals during either a cumulative three-year period or up to a seven year period. The awards are considered earned after the attainment of the performance goal, which can occur during or after the performance period when results have been evaluated and approved by the Compensation Committee, and vest according to their certain terms and conditions. The fair value for performance-based awards is typically based on the closing market price of OMH's stock on the date of the award. For performance-based awards with market conditions, the fair value is measured on the grant date using an option-pricing model. Expense for performance-based awards is typically recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and canceled, and all expense recognized to that date is reversed. Expense for performance-based awards with market conditions is recognized over the requisite service period, which represents the period over which the market condition is expected to be satisfied. The weighted average grant date fair value of performance-based awards issued in 2022, 2021, and 2020 was $50.34, $40.62, and $42.86, respectively. The total fair value of performance-based awards that vested was $7 million during 2022, and immaterial during 2021, and 2020. The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2022: Number of Weighted Weighted Unvested as of January 1, 2022 974,691 $ 39.12 Granted 120,353 50.34 Vested (157,948) 31.27 Forfeited (19,350) 45.12 Unvested at December 31, 2022 917,746 41.77 1.77 OTHER STOCK-BASED PLANS Cash-settled Stock-based Awards OMH has granted cash-settled stock-based awards to certain executives. These awards are granted with vesting conditions relating to the trading price of OMH's common stock and the portion of OMH's common stock owned by stockholders other than the Apollo-Värde Group, and certain other terms and conditions. The awards provide for the right to accrue cash dividend equivalents. The grant date fair value of the cash-settled stock-based awards was zero because the satisfaction of the required event-based performance conditions was not considered probable as of the grant dates. No vesting conditions were satisfied during 2022 related to these awards. During 2021, the vesting conditions related to a portion of the cash-settled stock-based awards were satisfied and we recognized $54 million in salaries and benefits expense. For the remaining unvested awards, the fair value was estimated using an option-pricing model on the date the required event-based performance condition was satisfied. The unvested cash-settled stock-based awards are liability-classified and expense is recognized over the requisite service period, which is the period of time the remaining vesting conditions are expected to be satisfied. Additional salaries and benefits expense related to unvested cash-settled stock-based awards was immaterial during 2022 and 2021. Employee Stock Purchase Plan |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information At December 31, 2022, 2021, and 2020, Consumer and Insurance (“C&I”) was our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans. The accounting policies of the C&I segment are the same as those disclosed in Note 2, except as described below. We report the operating results of C&I and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for interest expense and operating costs, and (ii) excludes the impact of applying purchase accounting. We allocate revenues and expenses on a Segment Accounting Basis to the C&I segment and Other using the following methodologies: Interest income Directly correlated to C&I segment and Other. Interest expense C&I and Other - The Company has secured and unsecured debt. The Company first allocates interest expense to its C&I segment based on actual expense for secured debt. Interest expense for unsecured debt is recorded to the C&I segment using a weighted average interest rate applied to allocated average unsecured debt. Total average unsecured debt is allocated as follows: l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and l C&I - receives remainder of unallocated average debt. Provision for finance receivable losses Directly correlated to the C&I segment. Other revenues Directly correlated to the C&I segment and Other. Other expenses Salaries and benefits - Directly correlated to C&I segment and Other. Other salaries and benefits not directly correlated with the C&I segment and Other are allocated based on services provided. Other operating expenses - Directly correlated to the C&I segment and Other. Other operating expenses not directly correlated to the C&I segment and Other are allocated based on services provided. Insurance policy benefits and claims - Directly correlated to the C&I segment. Acquisition-related transaction and integration expenses - Consist of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to C&I segment and Other based on services provided. The "Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on certain purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , prior to the adoption of ASU 2016-13 on January 1, 2020, and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis leveraging historical TDR receivables; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets, including amortization of other historical deferred costs and the amortization of purchased software assets on a historical cost basis; and • Assets - revalues assets based on their fair values at the effective date of the acquisition. The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated At or for the Year Ended December 31, 2022 Interest income $ 4,429 $ 5 $ 1 $ 4,435 Interest expense 886 3 3 892 Provision for finance receivable losses 1,399 — 3 1,402 Net interest income after provision for finance receivable losses 2,144 2 (5) 2,141 Other revenues 618 12 (1) 629 Other expenses 1,585 14 8 1,607 Income (loss) before income tax expense (benefit) $ 1,177 $ — $ (14) $ 1,163 Assets $ 20,487 $ 35 $ 2,011 $ 22,533 At or for the Year Ended December 31, 2021 Interest income $ 4,355 $ 5 $ 4 $ 4,364 Interest expense 930 3 4 937 Provision for finance receivable losses 587 — 6 593 Net interest income after provision for finance receivable losses 2,838 2 (6) 2,834 Other revenues 527 12 (8) 531 Other expenses 1,577 21 26 1,624 Income (loss) before income tax expense (benefit) $ 1,788 $ (7) $ (40) $ 1,741 Assets $ 20,019 $ 40 $ 2,020 $ 22,079 At or for the Year Ended December 31, 2020 Interest income $ 4,353 $ 6 $ 9 $ 4,368 Interest expense 1,007 4 16 1,027 Provision for finance receivables losses 1,313 — 6 1,319 Net interest income after provision for finance receivable losses 2,033 2 (13) 2,022 Other revenues 515 13 (2) 526 Other expenses 1,527 24 20 1,571 Income (loss) before income tax expense (benefit) $ 1,021 $ (9) $ (35) $ 977 Assets $ 20,376 $ 57 $ 2,038 $ 22,471 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements The fair value of a financial instrument is the expected amount that would be received if an asset were to be sold or the expected amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange, traded over-the-counter, or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 2 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 December 31, 2022 Assets Cash and cash equivalents $ 481 $ 17 $ — $ 498 $ 498 Investment securities 51 1,744 5 1,800 1,800 Net finance receivables, less allowance for finance receivable losses — — 19,272 19,272 17,675 Restricted cash and restricted cash equivalents 450 11 — 461 461 Other assets * — — 43 43 35 Liabilities Long-term debt $ — $ 16,969 $ — $ 16,969 $ 18,281 December 31, 2021 Assets Cash and cash equivalents $ 535 $ 6 $ — $ 541 $ 541 Investment securities 59 1,927 6 1,992 1,992 Net finance receivables, less allowance for finance receivable losses — — 20,083 20,083 17,117 Restricted cash and restricted cash equivalents 476 — — 476 476 Other assets * — — 52 52 46 Liabilities Long-term debt $ — $ 18,781 $ — $ 18,781 $ 17,750 * Other assets at December 31, 2022 and December 31, 2021 primarily consists of finance receivables held for sale. 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 December 31, 2022 Assets Cash equivalents in mutual funds $ 77 $ — $ — $ 77 Cash equivalents in securities — 17 — 17 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 66 — 66 Commercial paper — 55 — 55 Non-U.S. government and government sponsored entities — 142 — 142 Corporate debt 5 1,129 3 1,137 RMBS — 192 — 192 CMBS — 35 — 35 CDO/ABS — 86 — 86 Total available-for-sale securities 5 1,721 3 1,729 Other securities Bonds: Corporate debt — 6 — 6 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 23 — 23 Preferred stock 15 — — 15 Common stock 31 — 2 33 Total other securities 46 23 2 71 Total investment securities 51 1,744 5 1,800 Restricted cash equivalents in mutual funds 445 — — 445 Restricted cash equivalents in securities — 11 — 11 Total $ 573 $ 1,772 $ 5 $ 2,350 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2021 Assets Cash equivalents in mutual funds $ 41 $ — $ — $ 41 Cash equivalents in securities — 6 — 6 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 79 — 79 Commercial paper — 50 — 50 Non-U.S. government and government sponsored entities — 155 — 155 Corporate debt 5 1,292 5 1,302 RMBS — 170 — 170 CMBS — 45 — 45 CDO/ABS — 90 — 90 Total available-for-sale securities 5 1,897 5 1,907 Other securities Bonds: Corporate debt — 9 — 9 RMBS — 1 — 1 CDO/ABS — 20 — 20 Total bonds — 30 — 30 Preferred stock 22 — — 22 Common stock 32 — 1 33 Total other securities 54 30 1 85 Total investment securities 59 1,927 6 1,992 Restricted cash equivalents in mutual funds 468 — — 468 Total $ 568 $ 1,933 $ 6 $ 2,507 Due to the insignificant activity within the Level 3 assets during the years ended December 31, 2022 and 2021, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the years ended December 31, 2022 and 2021. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS We use the following methods and assumptions to estimate fair value. Cash and Cash Equivalents Cash equivalents in mutual funds include positions in money market funds with weighted average maturity within three months. Money market funds are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are categorized as Level 1 within the fair value table. Cash equivalents in securities includes highly liquid investments with a maturity within three months of purchase. The carrying amount of these cash equivalents approximates fair value due to the short time between the purchase and expected maturity of these securities. Cash equivalents in securities are categorized as Level 2 within the fair value table. Restricted Cash and Restricted Cash Equivalents The carrying amount of restricted cash and restricted cash equivalents approximates fair value. Investment Securities We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or other securities and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value. Finance Receivables The fair value of net finance receivables, less allowance for finance receivable losses, is primarily determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. Long-term Debt We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt. We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2022, we had no debt carried at fair value under the fair value option. We estimate the fair values associated with variable rate secured term funding and revolving lines of credit to be equal to par. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America ("GAAP"). The statements include the accounts of OMH, its wholly owned subsidiarie s , and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2022 presentation, we reclassified certain items in prior periods of our consolidated financial statements. |
Operating Segment | Operating Segment At December 31, 2022, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans. |
Finance Receivables and Finance Receivable Revenue Recognition | Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a receivable-by-receivable basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. Our finance receivables held for investment consist of our personal loans and credit cards. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in our consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in our consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in Interest income in our consolidated statements of operations. We defer and amortize the costs to originate certain finance receivables and the revenue from nonrefundable fees, along with any premiums or discounts, as an adjustment to finance charge income using the interest method. For credit cards, we amortize certain deferred costs on a straight-line basis over a twelve-month period. For our personal loans, we stop accruing finance charges when four payments (approximately 90 days) become contractually past due. We reverse finance charge amounts previously accrue d upon suspension of accrual of finance charges. For credit cards, we continue to accrue finance charges and fees until charge-off when seven payments (approximately 180 days) become contractually past due, at which point we reverse finance charges and fees previously accrued. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. For our personal loans, we recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual personal loans when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time, we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. |
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that receivable as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the effective interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, defer or forgive past due interest, or forgive principal. Additionally, as part of the modification, we may require qualifying payments and then the accounts are generally brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status. Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable. Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. We generally charge-off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge-off prior to the account becoming seven payments (approximately 180 days) past due. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. We also establish reserves for TDR finance receivables, which are included in Allowance for finance receivable losses in our consolidated balance sheets. The allowance for finance receivable losses related to our TDR finance receivables represent loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions to estimate these expected cash flows are prepayment speeds, default rates, and loss severity rates. |
Goodwill | Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with business combinations, primarily related to the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and whenever events occur or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the quantitative impairment test. When necessary, the fair value of the reporting unit is calculated utilizing the income approach, which uses prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. |
Intangible Assets other than Goodwill | Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset’s useful life. We have determined that each of our remaining intangible assets have indefinite lives with the exception of value of business acquired (“VOBA”), which has a finite useful life. We amortize our finite useful life intangible assets in a manner that reflects the pattern of economic benefit used. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For indefinite-lived intangible assets, we review for impairment at least annually and whenever events or changes in circumstances indicate the assets are more likely than not to be impaired. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the carrying value exceeds the estimated fair value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. |
Leases | Leases All our leases are classified as operating leases, and we are the lessee or sublessor in all our lease arrangements. At inception of an arrangement, we determine if a lease exists. At lease commencement date, we recognize a right-of-use asset and a lease liability measured at the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Since our operating leases do not provide an implicit rate, we utilize the best available information to determine our incremental borrowing rate, which is used to calculate the present value of lease payments. The right-of-use asset also includes any prepaid fixed lease payments and excludes lease incentives. Options to extend or terminate a lease may be included in our lease arrangements. We reflect the renewal or termination option in the right-of-use asset and lease liability when it is reasonably certain that we will exercise those options. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. We have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component. Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in Other operating expenses in our consolidated statements of operations. In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments. The lease right-of-use assets are included in Other assets Other liabilities |
Insurance Premiums | Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily consist of credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves, which we include as a reduction to Net finance receivables in our consolidated balance sheets. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance, and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts, a liability is accrued, which represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations. We recognize commissions on optional products as Other revenues - other in our consolidated statements of operations when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in Net finance receivables in our consolidated balance sheets. The insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in our consolidated statements of cash flows. |
Policy and Claim Reserves | Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in Other assets in our consolidated balance sheets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. |
Insurance Policy Acquisition Costs | Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in Other assets in our consolidated balance sheets and amortize these costs over the terms of the related policies, whether directly written or reinsured. |
Investment Securities | Investment Securities We generally classify our investment securities as available-for-sale or other, depending on management’s intent. Other securities primarily consist of equity securities and those securities for which the fair value option was elected. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in Other assets in our consolidated balance sheets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. |
Impairments on Investment Securities | Impairments on Investment Securities We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize the impairment as a direct write-down in Other revenues - investment in our consolidated statements of operation equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, not to exceed the total unrealized loss on the security. The cash flows expected to be collected are determined by assessing all available information, including issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, a credit impairment is considered to have occurred. If a credit impairment exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is bifurcated as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to non-credit related factors. We recognize the estimated credit loss as an allowance on the balance sheet in investment securities, with a corresponding loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. For investment securities in which a credit impairment was recorded through an allowance, we record subsequent increases and decreases in the allowance for credit losses as credit loss expense or reversal of credit loss expense in investment revenues. We will not reverse a previously recorded allowance to an amount below zero. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss. |
Investment Revenue Recognition | Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in Other revenues - investment in our consolidated statements of operations. We specifically identify realized gains and losses on investment securities and include them in Other revenues - investment in our consolidated statements of operations. |
Variable Interest Entities | Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents We include funds to be used for future debt payments and collateral relating to our secured debt, insurance regulatory deposits, and reinsurance trusts with third parties, in each case, in restricted cash and cash equivalents. |
Long-term Debt | Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to Interest expense in our consolidated statements of operations. |
Income Taxes | Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely than not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. |
Retirement Benefit Plans | Retirement Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plan, in Other assets or Other liabilities in our consolidated balance sheets, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) Plan. Our contributions to the plan are charged to Salaries and benefits in our consolidated statements of operations. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to Salaries and benefits in our consolidated statements of operations in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in our consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the marketplace used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 18. In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
Earnings Per Share (OMH Only) | Earnings Per Share (OMH Only) Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested restricted stock units and awards. |
Accounting Pronouncements To Be Adopted | ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. Upon adoption, our assumptions used to measure the liability for future policy benefits will be updated at least annually. The guidance requires the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method. This ASU requires a transition date of January 1, 2021 and will result in recasting prior periods. Our long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection. The adoption of this ASU resulted in an increase to insurance claims and policyholder liabilities of $97 million, $71 million, and $18 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively, and a reduction to accumulated other comprehensive income, net of tax, of $75 million, $56 million, and $8 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively. The impact to retained earnings was immaterial as of January 1, 2021, December 31, 2021, and December 31, 2022. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method. The adoption of this ASU will not have a material impact on the consolidated financial statements. We do not believe that any other accounting pronouncements issued, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of our net finance receivables were as follows: (dollars in millions) Personal Loans Credit Cards Total December 31, 2022 Gross finance receivables * $ 19,615 $ 107 $ 19,722 Unearned fees (220) — (220) Accrued finance charges and fees 299 — 299 Deferred origination costs 185 — 185 Total $ 19,879 $ 107 $ 19,986 December 31, 2021 Gross finance receivables * $ 18,944 $ 24 $ 18,968 Unearned fees (225) (1) (226) Accrued finance charges and fees 289 — 289 Deferred origination costs 179 2 181 Total $ 19,187 $ 25 $ 19,212 |
Schedules of Concentration of Risk, by Risk Factor | The largest concentrations of net finance receivables were as follows: December 31, 2022 2021 (a) (dollars in millions) Amount Percent Amount Percent Personal Loans: Texas $ 1,954 10 % $ 1,812 9 % Florida 1,446 7 1,255 7 California 1,391 7 1,289 7 Pennsylvania 1,249 6 1,199 6 North Carolina 1,110 6 1,117 6 Ohio 963 5 960 5 Georgia 792 4 770 4 Illinois 777 4 765 4 New York 749 4 681 4 Indiana 726 4 728 4 Other 8,722 43 8,611 44 Total personal loans $ 19,879 100 % $ 19,187 100 % Credit Cards: California $ 26 24 % $ 7 28 % Texas 15 14 4 14 Florida 8 8 2 7 Washington 5 5 1 5 Arizona 4 4 1 4 Pennsylvania 4 4 1 4 Other 45 41 9 38 Total credit cards $ 107 100 % $ 25 100 % (a) December 31, 2021 concentrations of net finance receivables are presented in the order of December 31, 2022 state concentrations. |
Summary of net finance receivables by type and by days delinquent | The following tables below are a summary of our personal loans by the year of origination and number of days delinquent: (dollars in millions) 2022 2021 2020 2019 2018 Prior Total December 31, 2022 Performing Current $ 10,614 $ 4,927 $ 1,758 $ 1,081 $ 240 $ 105 $ 18,725 30-59 days past due 136 136 43 28 9 5 357 60-89 days past due 92 101 32 19 6 3 253 Total performing 10,842 5,164 1,833 1,128 255 113 19,335 Nonperforming (Nonaccrual) 90+ days past due 160 246 74 44 13 7 544 Total $ 11,002 $ 5,410 $ 1,907 $ 1,172 $ 268 $ 120 $ 19,879 (dollars in millions) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Performing Current $ 10,645 $ 3,935 $ 2,641 $ 814 $ 193 $ 109 $ 18,337 30-59 days past due 125 74 53 19 6 5 282 60-89 days past due 81 53 33 11 4 3 185 Total performing 10,851 4,062 2,727 844 203 117 18,804 Nonperforming (Nonaccrual) 90+ days past due 125 130 85 28 9 6 383 Total $ 10,976 $ 4,192 $ 2,812 $ 872 $ 212 $ 123 $ 19,187 The following is a summary of credit cards by number of days delinquent: (dollars in millions) December 31, 2022 2021 Current $ 93 $ 25 30-59 days past due 3 — 60-89 days past due 3 — 90+ days past due 8 — Total $ 107 $ 25 |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) December 31, 2022 2021 TDR gross finance receivables $ 898 $ 646 TDR net finance receivables * 904 650 Allowance for TDR finance receivable losses 369 270 * TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs. |
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 were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Pre-modification TDR net finance receivables $ 738 $ 453 $ 499 Post-modification TDR net finance receivables: Rate reduction 465 310 312 Other * 273 143 187 Total post-modification TDR net finance receivables $ 738 $ 453 $ 499 Number of TDR accounts 88,901 55,229 66,484 * “Other” modifications primarily consist of loans with both rate reductions and the potential of principal 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 | Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table: (dollars in millions) Years Ended December 31, 2022 2021 2020 TDR net finance receivables * $ 136 $ 117 $ 105 Number of TDR accounts 17,297 16,046 15,229 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva_2
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses were as follows: (dollars in millions) Personal Loans Credit Cards Total Year Ended December 31, 2022 Balance at beginning of period $ 2,090 $ 5 $ 2,095 Provision for finance receivable losses 1,379 23 1,402 Charge-offs (1,431) (7) (1,438) Recoveries 252 — 252 Balance at end of period $ 2,290 $ 21 $ 2,311 Year Ended December 31, 2021 Balance at beginning of period $ 2,269 $ — $ 2,269 Provision for finance receivable losses 588 5 593 Charge-offs (989) — (989) Recoveries 222 — 222 Balance at end of period $ 2,090 $ 5 $ 2,095 Year Ended December 31, 2020 (a) Balance at beginning of period $ 829 $ — $ 829 Impact of adoption of ASU 2016-13 (b) 1,118 — 1,118 Provision for finance receivable losses 1,319 — 1,319 Charge-offs (1,162) — (1,162) Recoveries 165 — 165 Balance at end of period $ 2,269 $ — $ 2,269 (a) There were no credit cards for the year ended December 31, 2020 as the product offering began in 2021. (b) As a result of the adoption of ASU 2016-13 on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) Personal Loans Credit Cards Total December 31, 2022 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,921 $ 21 $ 1,942 TDR finance receivables 369 — 369 Total $ 2,290 $ 21 $ 2,311 Finance receivables: Collectively evaluated for impairment $ 18,975 $ 107 $ 19,082 TDR finance receivables 904 — 904 Total $ 19,879 $ 107 $ 19,986 Allowance for finance receivable losses as a percentage of finance receivables 11.52 % 19.12 % 11.56 % December 31, 2021 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,820 $ 5 $ 1,825 TDR finance receivables 270 — 270 Total $ 2,090 $ 5 $ 2,095 Finance receivables: Collectively evaluated for impairment $ 18,537 $ 25 $ 18,562 TDR finance receivables 650 — 650 Total $ 19,187 $ 25 $ 19,212 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.91 % 10.90 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair December 31, 2022* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 17 $ — $ (1) $ 16 Obligations of states, municipalities, and political subdivisions 74 — (8) 66 Commercial paper 55 — — 55 Non-U.S. government and government sponsored entities 150 — (8) 142 Corporate debt 1,251 1 (115) 1,137 Mortgage-backed, asset-backed, and collateralized: RMBS 217 — (25) 192 CMBS 38 — (3) 35 CDO/ABS 95 — (9) 86 Total $ 1,897 $ 1 $ (169) $ 1,729 December 31, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 16 $ — $ — $ 16 Obligations of states, municipalities, and political subdivisions 76 3 — 79 Commercial paper 50 — — 50 Non-U.S. government and government sponsored entities 151 4 — 155 Corporate debt 1,246 61 (5) 1,302 Mortgage-backed, asset-backed, and collateralized: RMBS 169 3 (2) 170 CMBS 44 1 — 45 CDO/ABS 90 1 (1) 90 Total $ 1,842 $ 73 $ (8) $ 1,907 * The allowance for credit losses related to our investment securities as of December 31, 2022 and December 31, 2021 were immaterial. |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 U.S. government and government sponsored entities $ 10 $ — $ 6 $ (1) $ 16 $ (1) Obligations of states, municipalities, and political subdivisions 48 (5) 15 (3) 63 (8) Commercial paper 51 — — — 51 — Non-U.S. government and government sponsored entities 104 (3) 32 (5) 136 (8) Corporate debt 779 (54) 299 (61) 1,078 (115) Mortgage-backed, asset-backed, and collateralized: RMBS 106 (9) 68 (16) 174 (25) CMBS 21 (2) 13 (1) 34 (3) CDO/ABS 45 (3) 35 (6) 80 (9) Total $ 1,164 $ (76) $ 468 $ (93) $ 1,632 $ (169) December 31, 2021 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 10 — — — 10 — Commercial paper 46 — — — 46 — Non-U.S. government and government sponsored entities 19 — 5 — 24 — Corporate debt 208 (3) 38 (2) 246 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 81 (1) 15 (1) 96 (2) CMBS 7 — — — 7 — CDO/ABS 41 (1) 3 — 44 (1) Total $ 418 $ (5) $ 61 $ (3) $ 479 $ (8) |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2022 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 200 $ 201 Due after 1 year through 5 years 518 548 Due after 5 years through 10 years 541 614 Due after 10 years 157 184 Mortgage-backed, asset-backed, and collateralized securities 313 350 Total $ 1,729 $ 1,897 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) December 31, 2022 December 31, 2021 Fixed maturity other securities: Bonds $ 23 $ 30 Preferred stock * 15 22 Common stock * 33 33 Total $ 71 $ 85 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross carrying amount and accumulated amortization of finite-lived intangible assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2022 Trade names $ 220 $ — $ 220 Licenses 25 — 25 VOBA 105 (90) 15 Other 1 — 1 Total $ 351 $ (90) $ 261 December 31, 2021 Trade names $ 220 $ — $ 220 VOBA 105 (77) 28 Licenses 25 — 25 Customer relationships 223 (223) — Other 13 (12) 1 Total $ 586 $ (312) $ 274 |
Gross carrying amount of indefinite-lived intangible assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2022 Trade names $ 220 $ — $ 220 Licenses 25 — 25 VOBA 105 (90) 15 Other 1 — 1 Total $ 351 $ (90) $ 261 December 31, 2021 Trade names $ 220 $ — $ 220 VOBA 105 (77) 28 Licenses 25 — 25 Customer relationships 223 (223) — Other 13 (12) 1 Total $ 586 $ (312) $ 274 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Carrying value and fair value of long-term debt by type were as follows: December 31, 2022 December 31, 2021 (dollars in millions) Carrying Fair Carrying Fair Senior debt $ 18,109 $ 16,782 $ 17,578 $ 18,574 Junior subordinated debt 172 187 172 207 Total $ 18,281 $ 16,969 $ 17,750 $ 18,781 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2022 2021 2020 2022 2021 Senior debt 4.97 % 5.38 % 5.68 % 5.06 % 5.05 % Junior subordinated debt 7.42 4.02 5.64 11.91 3.86 Total 4.99 5.37 5.68 5.12 5.03 |
Schedule of principal maturities of long-term debt | Principal maturities of long-term debt by type of debt at December 31, 2022 were as follows: Senior Debt (dollars in millions) Securitizations Private Secured Term Funding Revolving Unsecured Junior Total Interest rates (b) 0.87%-6.55% 5.24 % 4.57% 3.50%-8.25% 5.83 % 2023 $ — $ — $ — $ 1,004 $ — $ 1,004 2024 — — — 1,270 — 1,270 2025 — — — 1,249 — 1,249 2026 — — — 1,600 — 1,600 2027 — — — 750 — 750 2028-2067 — — — 2,933 350 3,283 Secured (c) 9,003 350 50 — — 9,403 Total principal maturities $ 9,003 $ 350 $ 50 $ 8,806 $ 350 $ 18,559 Total carrying amount $ 8,962 $ 349 $ 50 $ 8,748 $ 172 $ 18,281 Debt issuance costs (d) (38) (1) — (62) — (101) (a) Pursuant to the Base Indenture, the Supplemental Indentures and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at December 31, 2022. (c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities 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. See Note 9 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $31 million at December 31, 2022 and are reported in Other assets in our consolidated balance sheets. (e) During the year ended December 31, 2022, we repurchased, in the open market, portions of our Unsecured Notes in the amount of $269 million. In connection with these repurchases, we recognized a net gain of $2 million in Net loss on repurchases and repayments of debt in our consolidated statements of operations. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying amounts of consolidated VIE assets and liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows: (dollars in millions) December 31, 2022 2021 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 10,432 8,821 Allowance for finance receivable losses 1,126 910 Restricted cash and restricted cash equivalents 442 466 Other assets 28 26 Liabilities Long-term debt $ 9,361 $ 7,999 Other liabilities 20 13 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of unearned insurance premium reserves, claim reserves and benefit reserves | Components of our insurance reserves were as follows: (dollars in millions) December 31, 2022 2021 Finance receivable related: Payable to OMH: Unearned premium reserves $ 672 $ 677 Claim reserves 77 84 Subtotal (a) 749 761 Payable to third-party beneficiaries (b) 257 256 Non-finance receivable related (b) 345 365 Total $ 1,351 $ 1,382 (a) Reported in Unearned insurance premium and clam reserves in our consolidated balance sheets. (b) Reported in Insurance claims and policyholder liabilities in our consolidated balance sheets. |
Changes in the reserve for unpaid claims and loss adjustment expenses | Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): (dollars in millions) At or for the Years Ended December 31, 2022 2021 2020 Balance at beginning of period $ 118 $ 148 $ 117 Less reinsurance recoverables (3) (3) (4) Net balance at beginning of period 115 145 113 Additions for losses and loss adjustment expenses incurred to: Current year 177 212 272 Prior years * (11) (18) (11) Total 166 194 261 Reductions for losses and loss adjustment expenses paid related to: Current year (108) (135) (161) Prior years (72) (89) (67) Total (180) (224) (228) Foreign currency translation adjustment 1 — (1) Net balance at end of period 102 115 145 Plus reinsurance recoverables 3 3 3 Balance at end of period $ 105 $ 118 $ 148 * At December 31, 2022, $11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims. At December 31, 2021, $18 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit disability and unemployment claims. At December 31, 2020, $11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims. |
Schedule of claims and allocated claim adjustment expense, net of reinsurance | Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2022, were as follows: Years Ended December 31, At December 31, 2022 (dollars in millions) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 Incurred-but- Cumulative Number of Reported Claims Cumulative Credit Insurance Accident Year 2018 $ 146 $ 135 $ 134 $ 132 $ 131 $ — 42,897 2.2 % 2019 — 155 150 150 147 3 45,492 2.0 % 2020 — — 226 209 205 8 68,766 3.1 % 2021 — — — 162 156 19 37,845 1.7 % 2022 — — — — 140 58 27,284 1.2 % Total $ 779 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2022, were as follows: Years Ended December 31, (dollars in millions) 2018 * 2019 * 2020 * 2021 * 2022 Credit Insurance Accident Year 2018 $ 81 $ 115 $ 124 $ 129 $ 130 2019 — 88 128 139 144 2020 — — 128 186 197 2021 — — — 99 137 2022 — — — — 83 Total $ 691 All outstanding liabilities before 2018, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 88 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2022 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 88 Other short-duration insurance lines 2 Total 90 Insurance lines other than short-duration 15 Total gross liability for unpaid claims and claim adjustment expense $ 105 |
Schedule of average annual percentage payout of incurred claims by age, net of reinsurance | Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2022, were as follows: Years 1 2 3 4 5 Credit insurance* 61.5 % 26.5 % 6.5 % 3.6 % 1.3 % * Unaudited. |
Schedule of statutory net income (loss) for insurance companies | Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Property and casualty: Triton $ 58 $ 66 $ (7) Life and health: AHL $ 98 $ 79 $ 114 |
Schedule of statutory capital and surplus for insurance companies | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2022 2021 Property and casualty: Triton $ 210 $ 210 Life and health: AHL $ 387 $ 292 |
Schedule of extraordinary dividends paid | Ordinary dividends paid were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Property and casualty: Triton $ 50 $ — $ — Life and health: AHL $ — $ 50 $ 48 No extraordinary dividends were paid during 2022, 2021, or 2020. |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (OMH Only) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2022 were as follows: OMH OMFC Preferred Stock * Common Stock Special Stock Common Stock Par value $ 0.01 $ 0.01 $ — $ 0.50 Shares authorized 300,000,000 2,000,000,000 25,000,000 25,000,000 * No shares of OMH preferred stock or OMFC special stock were issued and outstanding at December 31, 2022 or 2021. |
Schedule of changes in shares issued and outstanding | Changes in OMH shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2022 2021 2020 Balance at beginning of period 127,809,640 134,341,724 136,101,156 Common shares issued 333,038 180,839 272,266 Common shares repurchased* (7,181,023) (6,712,923) (2,031,698) Treasury stock issued 80,470 — — Balance at end of period 121,042,125 127,809,640 134,341,724 * During the years ended December 31, 2022 and 2021, the common stock repurchased was held in treasury. During the year ended December 31, 2020, the common stock repurchased was retired. OMFC shares issued and outstanding were as follows: Special Stock Common Stock 2022 2021 2022 2021 Shares issued and outstanding — — 10,160,021 10,160,021 |
Computation of earnings per share | The computation of earnings per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2022 2021 2020 Numerator (basic and diluted): Net income $ 878 $ 1,314 $ 730 Denominator: Weighted average number of shares outstanding (basic) 124,178,643 132,653,889 134,716,012 Effect of dilutive securities * 238,631 400,605 203,246 Weighted average number of shares outstanding (diluted) 124,417,274 133,054,494 134,919,258 Earnings per share: Basic $ 7.07 $ 9.90 $ 5.42 Diluted $ 7.06 $ 9.87 $ 5.41 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes, net of tax, in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Other (b) Total Year Ended December 31, 2022 Balance at beginning of period $ 49 $ 1 $ 3 $ 8 $ 61 Other comprehensive income (loss) before reclassifications (179) (9) (8) 17 (179) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ (131) $ (8) $ (5) $ 25 $ (119) Year Ended December 31, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (41) — 1 8 (32) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 49 $ 1 $ 3 $ 8 $ 61 Year Ended December 31, 2020 Balance at beginning of period $ 41 $ 3 $ — $ 44 Other comprehensive income (loss) before reclassifications 51 (2) 2 — 51 Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 91 $ 1 $ 2 $ — $ 94 (a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the years ended December 31, 2022 and 2021. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of income before income tax expense | Components of income before income tax expense were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Income before income tax expense - U.S. operations $ 1,142 $ 1,722 $ 973 Income before income tax expense - foreign operations 21 19 4 Total $ 1,163 $ 1,741 $ 977 |
Schedule of components of income tax expense (benefit) | Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Current: Federal $ 288 $ 298 $ 235 Foreign 4 1 9 State 55 50 45 Total current 347 349 289 Deferred: Federal (51) 55 (43) State (11) 23 1 Total deferred (62) 78 (42) Total $ 285 $ 427 $ 247 |
Reconciliations of the statutory federal income tax rate to the effective income tax rate | OMH's and OMFC’s reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal 2.93 3.27 3.52 Change in valuation allowance 0.18 0.24 0.08 Nondeductible compensation 0.48 0.50 0.25 Other, net (0.08) (0.45) 0.48 Effective income tax rate 24.51 % 24.56 % 25.33 % |
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 8 $ 10 $ 12 Lapse in statute of limitations (3) (2) (4) Increases in tax positions for prior years 1 2 — Increases in tax positions for current years — 2 2 Settlements with tax authorities — (4) — Balance at end of year $ 6 $ 8 $ 10 |
Components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 573 $ 523 Net operating losses and tax credits 35 32 Fair value of equity and securities investments 29 — Capitalized research and experimental costs 29 — Insurance reserves 24 34 Pension/employee benefits 24 22 Other 28 32 Total 742 643 Deferred tax liabilities: Goodwill 166 144 Debt fair value adjustment 42 43 Deferred loan fees 25 33 Fair value of equity and securities investments — 17 Fixed assets 16 13 Other 11 26 Total 260 276 Net deferred tax assets before valuation allowance 482 367 Valuation allowance (30) (28) Net deferred tax assets $ 452 $ 339 |
Leases and Contingencies (Table
Leases and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of lease liabilities | At December 31, 2022, maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2023 $ 58 2024 46 2025 35 2026 23 2027 14 2028 2 Thereafter 1 Total lease payments 179 Imputed interest (18) Total $ 161 |
Lease Costs | Weighted Average Remaining Lease Term 3.71 Weighted Average Discount Rate 3.24 % Operating lease cost and variable lease cost, which are recorded in Other operating expenses in our consolidated statements of operations, were as follows: (dollars in millions) Years Ended December 31, 2022 2021 2020 Operating lease cost $ 58 $ 60 $ 63 Variable lease cost 14 15 15 Total $ 72 $ 75 $ 78 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Funded status of the defined benefit pension plans | The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) At or for the Years Ended December 31, 2022 2021 2020 Projected benefit obligation, beginning of period $ 374 $ 401 $ 364 Interest cost 8 7 10 Actuarial loss (gain) (a) (91) (18) 42 Benefits paid: Plan assets (16) (16) (15) Projected benefit obligation, end of period (b) 275 374 401 Fair value of plan assets, beginning of period 383 405 363 Actual return on plan assets, net of expenses (90) (7) 56 Company contributions 1 1 1 Benefits paid: Plan assets (16) (16) (15) Fair value of plan assets, end of period (b) 278 383 405 Funded status, end of period $ 3 $ 9 $ 4 Net plan assets recognized in our consolidated balance sheets (b) $ 3 $ 9 $ 4 Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) $ (10) $ 2 $ 3 (a) For the years ended December 31, 2022, 2021, and 2020, the actuarial gains or losses were primarily due to year-over-year fluctuations in discount rates used to calculate the present value of benefit obligations for the defined benefit plans. Adoption of updated mortality assumptions had additional impacts on calculation of gains or losses. (b) Includes one overfunded benefit plan with net plan assets recognized in Other assets in our consolidated balance sheets of $14 million, $22 million, and $18 million at December 31, 2022, 2021, and 2020, respectively and three underfunded benefit plans, with net projected benefit obligations recognized in Other liabilities in our consolidated balance sheets of $11 million, $13 million, and $14 million at December 31, 2022, 2021, and 2020, respectively. |
Components of net periodic benefit cost | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Years Ended December 31, 2022 2021 2020 Components of net periodic benefit cost: Interest cost $ 8 $ 7 $ 10 Expected return on assets (13) (12) (15) Net periodic benefit cost (5) (5) (5) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss 12 1 2 Total recognized in other comprehensive income 12 1 2 Total recognized in net periodic benefit cost and other comprehensive income $ 7 $ (4) $ (3) |
Summary of weighted average assumptions | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: December 31, 2022 2021 Projected benefit obligation: Discount rate 4.96 % 2.67 % Net periodic benefit costs: Discount rate 2.67 % 2.30 % Expected long-term rate of return on plan assets 3.54 % 3.04 % |
Expected future benefit payments | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2022 are as follows: (dollars in millions) Expected Future Benefit Payments 2023 $ 17 2024 17 2025 17 2026 17 2027 18 2028-2032 90 |
Information about plan assets measured at fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2022 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) 1 — — 1 International (b) 1 — — 1 Fixed income securities: U.S. investment grade (c) 16 192 — 208 U.S. high yield (d) — 3 — 3 Total $ 21 $ 195 $ — $ 216 Investments measured at NAV (e) 62 Total investments at fair value $ 278 December 31, 2021 Assets: Cash and cash equivalents $ 4 $ — $ — $ 4 Equity securities: U.S. (a) 1 1 — 2 International (b) 1 — — 1 Fixed income securities: U.S. investment grade (c) 28 276 — 304 U.S. high yield (d) — 4 — 4 Total $ 34 $ 281 $ — $ 315 Investments measured at NAV (e) 68 Total investments at fair value $ 383 (a) Includes mutual funds that track common market indexes such as the S&P 500 as well as other indexes comprised of investments in small and large cap companies. (b) Includes mutual funds that track common market indexes comprised of investments in companies in emerging and developed markets. (c) Includes mutual funds and collective investment trusts invested in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes mutual funds and collective investment trusts invested in securities or debt obligations that have a rating below investment grade. (e) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of service-based stock activity | The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2022: Number of Weighted Weighted Unvested as of January 1, 2022 736,285 $ 51.25 Granted 390,711 50.43 Vested (359,145) 48.84 Forfeited (27,436) 52.11 Unvested at December 31, 2022 740,415 51.43 2.14 |
Summary of performance-based stock activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2022: Number of Weighted Weighted Unvested as of January 1, 2022 974,691 $ 39.12 Granted 120,353 50.34 Vested (157,948) 31.27 Forfeited (19,350) 45.12 Unvested at December 31, 2022 917,746 41.77 1.77 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Information about the Company's segments | The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated At or for the Year Ended December 31, 2022 Interest income $ 4,429 $ 5 $ 1 $ 4,435 Interest expense 886 3 3 892 Provision for finance receivable losses 1,399 — 3 1,402 Net interest income after provision for finance receivable losses 2,144 2 (5) 2,141 Other revenues 618 12 (1) 629 Other expenses 1,585 14 8 1,607 Income (loss) before income tax expense (benefit) $ 1,177 $ — $ (14) $ 1,163 Assets $ 20,487 $ 35 $ 2,011 $ 22,533 At or for the Year Ended December 31, 2021 Interest income $ 4,355 $ 5 $ 4 $ 4,364 Interest expense 930 3 4 937 Provision for finance receivable losses 587 — 6 593 Net interest income after provision for finance receivable losses 2,838 2 (6) 2,834 Other revenues 527 12 (8) 531 Other expenses 1,577 21 26 1,624 Income (loss) before income tax expense (benefit) $ 1,788 $ (7) $ (40) $ 1,741 Assets $ 20,019 $ 40 $ 2,020 $ 22,079 At or for the Year Ended December 31, 2020 Interest income $ 4,353 $ 6 $ 9 $ 4,368 Interest expense 1,007 4 16 1,027 Provision for finance receivables losses 1,313 — 6 1,319 Net interest income after provision for finance receivable losses 2,033 2 (13) 2,022 Other revenues 515 13 (2) 526 Other expenses 1,527 24 20 1,571 Income (loss) before income tax expense (benefit) $ 1,021 $ (9) $ (35) $ 977 Assets $ 20,376 $ 57 $ 2,038 $ 22,471 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 Assets Cash and cash equivalents $ 481 $ 17 $ — $ 498 $ 498 Investment securities 51 1,744 5 1,800 1,800 Net finance receivables, less allowance for finance receivable losses — — 19,272 19,272 17,675 Restricted cash and restricted cash equivalents 450 11 — 461 461 Other assets * — — 43 43 35 Liabilities Long-term debt $ — $ 16,969 $ — $ 16,969 $ 18,281 December 31, 2021 Assets Cash and cash equivalents $ 535 $ 6 $ — $ 541 $ 541 Investment securities 59 1,927 6 1,992 1,992 Net finance receivables, less allowance for finance receivable losses — — 20,083 20,083 17,117 Restricted cash and restricted cash equivalents 476 — — 476 476 Other assets * — — 52 52 46 Liabilities Long-term debt $ — $ 18,781 $ — $ 18,781 $ 17,750 |
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 December 31, 2022 Assets Cash equivalents in mutual funds $ 77 $ — $ — $ 77 Cash equivalents in securities — 17 — 17 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 66 — 66 Commercial paper — 55 — 55 Non-U.S. government and government sponsored entities — 142 — 142 Corporate debt 5 1,129 3 1,137 RMBS — 192 — 192 CMBS — 35 — 35 CDO/ABS — 86 — 86 Total available-for-sale securities 5 1,721 3 1,729 Other securities Bonds: Corporate debt — 6 — 6 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 23 — 23 Preferred stock 15 — — 15 Common stock 31 — 2 33 Total other securities 46 23 2 71 Total investment securities 51 1,744 5 1,800 Restricted cash equivalents in mutual funds 445 — — 445 Restricted cash equivalents in securities — 11 — 11 Total $ 573 $ 1,772 $ 5 $ 2,350 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2021 Assets Cash equivalents in mutual funds $ 41 $ — $ — $ 41 Cash equivalents in securities — 6 — 6 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 79 — 79 Commercial paper — 50 — 50 Non-U.S. government and government sponsored entities — 155 — 155 Corporate debt 5 1,292 5 1,302 RMBS — 170 — 170 CMBS — 45 — 45 CDO/ABS — 90 — 90 Total available-for-sale securities 5 1,897 5 1,907 Other securities Bonds: Corporate debt — 9 — 9 RMBS — 1 — 1 CDO/ABS — 20 — 20 Total bonds — 30 — 30 Preferred stock 22 — — 22 Common stock 32 — 1 33 Total other securities 54 30 1 85 Total investment securities 59 1,927 6 1,992 Restricted cash equivalents in mutual funds 468 — — 468 Total $ 568 $ 1,933 $ 6 $ 2,507 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - payment | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing receivable general information | ||
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses | 7 | |
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses, period | 180 days | |
Number of payments past due before repossession | 2 | |
Number of payments past due before repossession, period | 30 days | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) | Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2022 and $13 million in 2021) |
Credit Cards | ||
Financing receivable general information | ||
Finance receivable, amortization term | 12 months | |
Number of contractual payments past due | 7 | |
Number of contractual payments past due, period | 180 days | |
Personal Loans | ||
Financing receivable general information | ||
Number of contractual payments past due | 4 | |
Number of contractual payments past due, period | 90 days | |
Number of consecutive payments missed to reverse finance charges | 4 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Insurance claims and policyholder liabilities | $ 602,000,000 | $ 621,000,000 | |
Reduction to accumulated other comprehensive income, net of tax | 119,000,000 | (61,000,000) | |
Retained earnings | 2,125,000,000 | 1,727,000,000 | |
One-time cumulative effect | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Insurance claims and policyholder liabilities | 18,000,000 | 71,000,000 | $ 97,000,000 |
Reduction to accumulated other comprehensive income, net of tax | $ 8,000,000 | $ 56,000,000 | 75,000,000 |
Retained earnings | $ 0 |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Whole loan sale flow agreement, quarterly loans sold | $ 180 | ||
Proceeds from sale of gross finance receivables | 720 | $ 505 | |
Gain on sale of financing receivables | 63 | 47 | $ 0 |
Unused credit card lines | $ 81 | 54 | |
Minimum | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, original term | 3 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Whole loan sale flow agreement, commitment period | 1 year | ||
Maximum | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, original term | 6 years | ||
Unlikely to be Collected Financing Receivable | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 60 days | ||
Nonperforming (Nonaccrual) | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 90 days | ||
Reversal of net accrued finance charges | $ 126 | 77 | |
Interest income | $ 16 | $ 13 | |
Nonperforming (Nonaccrual) | Credit Cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 180 days |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 19,722 | $ 18,968 |
Unearned fees | (220) | (226) |
Accrued finance charges and fees | 299 | 289 |
Deferred origination costs | 185 | 181 |
Financing Receivable, before Allowance for Credit Loss, Total | 19,986 | 19,212 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 19,615 | 18,944 |
Unearned fees | (220) | (225) |
Accrued finance charges and fees | 299 | 289 |
Deferred origination costs | 185 | 179 |
Financing Receivable, before Allowance for Credit Loss, Total | 19,879 | 19,187 |
Credit Cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 107 | 24 |
Unearned fees | 0 | (1) |
Accrued finance charges and fees | 0 | 0 |
Deferred origination costs | 0 | 2 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 107 | $ 25 |
Finance Receivables - Schedule
Finance Receivables - Schedule of the largest concentrations of net finance receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Net finance receivables | $ 19,986 | $ 19,212 |
Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | 19,879 | 19,187 |
Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | 107 | 25 |
Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 19,879 | $ 19,187 |
Concentration risk percent | 100% | 100% |
Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 107 | $ 25 |
Concentration risk percent | 100% | 100% |
Texas | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 1,954 | $ 1,812 |
Concentration risk percent | 10% | 9% |
Texas | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 15 | $ 4 |
Concentration risk percent | 14% | 14% |
Florida | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 1,446 | $ 1,255 |
Concentration risk percent | 7% | 7% |
Florida | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 8 | $ 2 |
Concentration risk percent | 8% | 7% |
California | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 1,391 | $ 1,289 |
Concentration risk percent | 7% | 7% |
California | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 26 | $ 7 |
Concentration risk percent | 24% | 28% |
Pennsylvania | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 1,249 | $ 1,199 |
Concentration risk percent | 6% | 6% |
Pennsylvania | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 4 | $ 1 |
Concentration risk percent | 4% | 4% |
North Carolina | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 1,110 | $ 1,117 |
Concentration risk percent | 6% | 6% |
Ohio | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 963 | $ 960 |
Concentration risk percent | 5% | 5% |
Georgia | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 792 | $ 770 |
Concentration risk percent | 4% | 4% |
Illinois | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 777 | $ 765 |
Concentration risk percent | 4% | 4% |
New York | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 749 | $ 681 |
Concentration risk percent | 4% | 4% |
Indiana | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 726 | $ 728 |
Concentration risk percent | 4% | 4% |
Washington | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 5 | $ 1 |
Concentration risk percent | 5% | 5% |
Arizona | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 4 | $ 1 |
Concentration risk percent | 4% | 4% |
Other | Loans and Finance Receivables | Geographic Concentration Risk | Personal Loans | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 8,722 | $ 8,611 |
Concentration risk percent | 43% | 44% |
Other | Loans and Finance Receivables | Geographic Concentration Risk | Credit Cards | ||
Concentration Risk [Line Items] | ||
Net finance receivables | $ 45 | $ 9 |
Concentration risk percent | 41% | 38% |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Delinquency by finance receivables type | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 19,986 | $ 19,212 |
Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 11,002 | 10,976 |
Prior Year Two | 5,410 | 4,192 |
Prior Year Three | 1,907 | 2,812 |
Prior Year Four | 1,172 | 872 |
Prior Year Five | 268 | 212 |
Prior Year Six | 120 | 123 |
Financing Receivable, before Allowance for Credit Loss, Total | 19,879 | 19,187 |
Performing | Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 10,842 | 10,851 |
Prior Year Two | 5,164 | 4,062 |
Prior Year Three | 1,833 | 2,727 |
Prior Year Four | 1,128 | 844 |
Prior Year Five | 255 | 203 |
Prior Year Six | 113 | 117 |
Financing Receivable, before Allowance for Credit Loss, Total | 19,335 | 18,804 |
Performing | Current | Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 10,614 | 10,645 |
Prior Year Two | 4,927 | 3,935 |
Prior Year Three | 1,758 | 2,641 |
Prior Year Four | 1,081 | 814 |
Prior Year Five | 240 | 193 |
Prior Year Six | 105 | 109 |
Financing Receivable, before Allowance for Credit Loss, Total | 18,725 | 18,337 |
Performing | 30-59 days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 136 | 125 |
Prior Year Two | 136 | 74 |
Prior Year Three | 43 | 53 |
Prior Year Four | 28 | 19 |
Prior Year Five | 9 | 6 |
Prior Year Six | 5 | 5 |
Financing Receivable, before Allowance for Credit Loss, Total | 357 | 282 |
Performing | 60-89 days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 92 | 81 |
Prior Year Two | 101 | 53 |
Prior Year Three | 32 | 33 |
Prior Year Four | 19 | 11 |
Prior Year Five | 6 | 4 |
Prior Year Six | 3 | 3 |
Financing Receivable, before Allowance for Credit Loss, Total | 253 | 185 |
Nonperforming (Nonaccrual) | 90+ days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Year One | 160 | 125 |
Prior Year Two | 246 | 130 |
Prior Year Three | 74 | 85 |
Prior Year Four | 44 | 28 |
Prior Year Five | 13 | 9 |
Prior Year Six | 7 | 6 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 544 | $ 383 |
Finance Receivables - Summary o
Finance Receivables - Summary of Credit Cards by Number of Days Delinquent (Details) - Credit Cards - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Delinquency by finance receivables type | ||
Financing receivable | $ 107 | $ 25 |
Current | ||
Delinquency by finance receivables type | ||
Financing receivable | 93 | 25 |
30-59 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 3 | 0 |
60-89 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 3 | 0 |
90+ days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | $ 8 | $ 0 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
TDR gross finance receivables | $ 898 | $ 646 |
TDR net finance receivables | 904 | 650 |
Allowance for TDR finance receivable losses | $ 369 | $ 270 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) account | Dec. 31, 2021 USD ($) account | Dec. 31, 2020 USD ($) account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Pre-modification TDR net finance receivables | $ 738 | $ 453 | $ 499 |
Total post-modification TDR net finance receivables | $ 738 | $ 453 | $ 499 |
Number of TDR accounts | account | 88,901 | 55,229 | 66,484 |
Rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | $ 465 | $ 310 | $ 312 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | $ 273 | $ 143 | $ 187 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) account | Dec. 31, 2021 USD ($) account | Dec. 31, 2020 USD ($) account | |
Receivables [Abstract] | |||
TDR net finance receivables | $ | $ 136 | $ 117 | $ 105 |
Number of TDR accounts | account | 17,297 | 16,046 | 15,229 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | $ 2,095 | $ 2,269 | $ 829 |
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Charge-offs | (1,438) | (989) | (1,162) |
Recoveries | 252 | 222 | 165 |
Balance at end of period | 2,311 | 2,095 | 2,269 |
Net impact of adoption of ASU 2016-13 | |||
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | 1,118 | ||
Personal Loans | |||
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | 2,090 | 2,269 | 829 |
Provision for finance receivable losses | 1,379 | 588 | 1,319 |
Charge-offs | (1,431) | (989) | (1,162) |
Recoveries | 252 | 222 | 165 |
Balance at end of period | 2,290 | 2,090 | 2,269 |
Personal Loans | Net impact of adoption of ASU 2016-13 | |||
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | 1,118 | ||
Credit Cards | |||
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | 5 | 0 | 0 |
Provision for finance receivable losses | 23 | 5 | 0 |
Charge-offs | (7) | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance at end of period | $ 21 | $ 5 | 0 |
Credit Cards | Net impact of adoption of ASU 2016-13 | |||
Changes in allowance for finance receivable losses | |||
Balance at beginning of period | $ 0 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for finance receivable losses: | |||||
Collectively evaluated for impairment | $ 1,942 | $ 1,825 | |||
TDR finance receivables | 369 | 270 | |||
Total | 2,311 | 2,095 | $ 2,269 | $ 829 | |
Finance receivables: | |||||
Collectively evaluated for impairment | 19,082 | 18,562 | |||
TDR finance receivables | 904 | 650 | |||
Net finance receivables | $ 19,986 | $ 19,212 | |||
Allowance for finance receivable losses as a percentage of finance receivables | 10.90% | 11.56% | 10.90% | ||
Personal Loans | |||||
Allowance for finance receivable losses: | |||||
Collectively evaluated for impairment | $ 1,921 | $ 1,820 | |||
TDR finance receivables | 369 | 270 | |||
Total | 2,290 | 2,090 | 2,269 | 829 | |
Finance receivables: | |||||
Collectively evaluated for impairment | 18,975 | 18,537 | |||
TDR finance receivables | 904 | 650 | |||
Net finance receivables | $ 19,879 | 19,187 | |||
Allowance for finance receivable losses as a percentage of finance receivables | 10.89% | 11.52% | |||
Credit Cards | |||||
Allowance for finance receivable losses: | |||||
Collectively evaluated for impairment | $ 21 | 5 | |||
TDR finance receivables | 0 | 0 | |||
Total | 21 | 5 | $ 0 | $ 0 | |
Finance receivables: | |||||
Collectively evaluated for impairment | 107 | 25 | |||
TDR finance receivables | 0 | 0 | |||
Net finance receivables | $ 107 | $ 25 | |||
Allowance for finance receivable losses as a percentage of finance receivables | 19.91% | 19.12% | 19.91% |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,897 | $ 1,842 |
Unrealized Gains | 1 | 73 |
Unrealized Losses | (169) | (8) |
Fair Value | 1,729 | 1,907 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 17 | 16 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Fair Value | 16 | 16 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 74 | 76 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (8) | 0 |
Fair Value | 66 | 79 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 55 | 50 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 55 | 50 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 150 | 151 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (8) | 0 |
Fair Value | 142 | 155 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,251 | 1,246 |
Unrealized Gains | 1 | 61 |
Unrealized Losses | (115) | (5) |
Fair Value | 1,137 | 1,302 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 217 | 169 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (25) | (2) |
Fair Value | 192 | 170 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 38 | 44 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (3) | 0 |
Fair Value | 35 | 45 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 95 | 90 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (9) | (1) |
Fair Value | $ 86 | $ 90 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) investment | Dec. 31, 2020 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest receivable | $ 14 | $ 13 | |
Investment securities in an unrealized loss position | investment | 2,280 | 570 | |
Proceeds from sales and redemptions | $ 278 | $ 250 | $ 259 |
Securities on deposit with third parties | 532 | $ 587 | |
Net unrealized losses on other securities held | $ 9 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less Than 12 Months | $ 1,164 | $ 418 |
12 Months or Longer | 468 | 61 |
Total | 1,632 | 479 |
Unrealized Losses | ||
Less Than 12 Months | (76) | (5) |
12 Months or Longer | (93) | (3) |
Total | (169) | (8) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 10 | 6 |
12 Months or Longer | 6 | 0 |
Total | 16 | 6 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | 0 |
Total | (1) | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 48 | 10 |
12 Months or Longer | 15 | 0 |
Total | 63 | 10 |
Unrealized Losses | ||
Less Than 12 Months | (5) | 0 |
12 Months or Longer | (3) | 0 |
Total | (8) | 0 |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 51 | 46 |
12 Months or Longer | 0 | 0 |
Total | 51 | 46 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 104 | 19 |
12 Months or Longer | 32 | 5 |
Total | 136 | 24 |
Unrealized Losses | ||
Less Than 12 Months | (3) | 0 |
12 Months or Longer | (5) | 0 |
Total | (8) | 0 |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 779 | 208 |
12 Months or Longer | 299 | 38 |
Total | 1,078 | 246 |
Unrealized Losses | ||
Less Than 12 Months | (54) | (3) |
12 Months or Longer | (61) | (2) |
Total | (115) | (5) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 106 | 81 |
12 Months or Longer | 68 | 15 |
Total | 174 | 96 |
Unrealized Losses | ||
Less Than 12 Months | (9) | (1) |
12 Months or Longer | (16) | (1) |
Total | (25) | (2) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 21 | 7 |
12 Months or Longer | 13 | 0 |
Total | 34 | 7 |
Unrealized Losses | ||
Less Than 12 Months | (2) | 0 |
12 Months or Longer | (1) | 0 |
Total | (3) | 0 |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 45 | 41 |
12 Months or Longer | 35 | 3 |
Total | 80 | 44 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (1) |
12 Months or Longer | (6) | 0 |
Total | $ (9) | $ (1) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 200 | |
Due after 1 year through 5 years | 518 | |
Due after 5 years through 10 years | 541 | |
Due after 10 years | 157 | |
Mortgage-backed, asset-backed, and collateralized securities | 313 | |
Fair Value | 1,729 | $ 1,907 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | 201 | |
Due after 1 year through 5 years | 548 | |
Due after 5 years through 10 years | 614 | |
Due after 10 years | 184 | |
Mortgage-backed, asset-backed, and collateralized securities | 350 | |
Cost/ Amortized Cost | $ 1,897 | $ 1,842 |
Investment Securities - Fair _2
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 23 | $ 30 |
Total | 71 | 85 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 15 | 22 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 33 | $ 33 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,437,000,000 | $ 1,437,000,000 | |
Impairments to goodwill | 0 | 0 | $ 0 |
Amortization expense | $ 13,000,000 | $ 32,000,000 | $ 37,000,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (90) | $ (312) |
Gross Carrying Amount | 351 | 586 |
Net Other Intangible Assets | 261 | 274 |
Trade names | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 220 | 220 |
Licenses | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 25 | 25 |
VOBA | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 105 | 105 |
Accumulated Amortization | (90) | (77) |
Net Other Intangible Assets | 15 | 28 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 223 | |
Accumulated Amortization | (223) | |
Net Other Intangible Assets | 0 | |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1 | 13 |
Accumulated Amortization | 0 | (12) |
Net Other Intangible Assets | $ 1 | $ 1 |
Long-term Debt- Schedule of Fai
Long-term Debt- Schedule of Fair Value and Carrying Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 16,969 | $ 18,781 |
Total Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 18,281 | 17,750 |
Unsecured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 16,782 | 18,574 |
Unsecured Notes | Total Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 18,109 | 17,578 |
Junior Subordinated Debt | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 187 | 207 |
Junior Subordinated Debt | Total Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 172 | $ 172 |
Long-term Debt - Schedule of We
Long-term Debt - Schedule of Weighted Average Effective Interest Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Interest rate during the period | 4.99% | 5.37% | 5.68% |
Interest rate at point in time | 5.12% | 5.03% | |
2023 | $ 1,004 | ||
2024 | 1,270 | ||
2025 | 1,249 | ||
2026 | 1,600 | ||
2027 | 750 | ||
2028-2067 | 3,283 | ||
Secured | 9,403 | ||
Total principal maturities | 18,559 | ||
Total carrying amount | 18,281 | $ 17,750 | |
Debt issuance costs | (101) | ||
Securitizations | |||
Debt Instrument [Line Items] | |||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028-2067 | 0 | ||
Secured | 9,003 | ||
Total principal maturities | 9,003 | ||
Total carrying amount | 8,962 | ||
Debt issuance costs | $ (38) | ||
Securitizations | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.87% | ||
Revolving Conduit Facilities | |||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028-2067 | 0 | ||
Secured | 50 | ||
Total principal maturities | 50 | ||
Total carrying amount | 50 | ||
Debt issuance costs | $ 0 | ||
Revolving Conduit Facilities | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.57% | ||
Private Secured Term Funding | |||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028-2067 | 0 | ||
Secured | 350 | ||
Total principal maturities | 350 | ||
Total carrying amount | 349 | ||
Debt issuance costs | $ (1) | ||
Interest rate | 5.24% | ||
Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Interest rate during the period | 4.97% | 5.38% | 5.68% |
Interest rate at point in time | 5.06% | 5.05% | |
Unsecured Notes | Revolving Conduit Facilities | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 31 | ||
Unsecured Notes | Unsecured Notes | |||
Debt Instrument [Line Items] | |||
2023 | 1,004 | ||
2024 | 1,270 | ||
2025 | 1,249 | ||
2026 | 1,600 | ||
2027 | 750 | ||
2028-2067 | 2,933 | ||
Total principal maturities | 8,806 | ||
Total carrying amount | 8,748 | ||
Debt issuance costs | $ (62) | ||
Unsecured Notes | Unsecured Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.50% | ||
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during the period | 7.42% | 4.02% | 5.64% |
Interest rate at point in time | 11.91% | 3.86% | |
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028-2067 | 350 | ||
Total principal maturities | 350 | ||
Total carrying amount | 172 | ||
Debt issuance costs | $ 0 | ||
Interest rate | 5.83% |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Principal maturities of long-term debt by type of debt | ||
2023 | $ 1,004 | |
2024 | 1,270 | |
2025 | 1,249 | |
2026 | 1,600 | |
2027 | 750 | |
2028-2067 | 3,283 | |
Secured | 9,403 | |
Total principal maturities | 18,559 | |
Long-term debt | 18,281 | $ 17,750 |
Debt issuance costs | (101) | |
Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 0 | |
Secured | 9,003 | |
Total principal maturities | 9,003 | |
Long-term debt | 8,962 | |
Debt issuance costs | $ (38) | |
Securitizations | Minimum | ||
Long-term debt | ||
Interest rate | 0.87% | |
Securitizations | Maximum | ||
Long-term debt | ||
Interest rate | 6.55% | |
Private Secured Term Funding | ||
Long-term debt | ||
Interest rate | 5.24% | |
Principal maturities of long-term debt by type of debt | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 0 | |
Secured | 350 | |
Total principal maturities | 350 | |
Long-term debt | 349 | |
Debt issuance costs | (1) | |
Revolving Conduit Facilities | ||
Principal maturities of long-term debt by type of debt | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 0 | |
Secured | 50 | |
Total principal maturities | 50 | |
Long-term debt | 50 | |
Debt issuance costs | $ 0 | |
Revolving Conduit Facilities | Minimum | ||
Long-term debt | ||
Interest rate | 4.57% | |
Unsecured Notes | Revolving Conduit Facilities | ||
Principal maturities of long-term debt by type of debt | ||
Debt issuance costs | $ 31 | |
Unsecured Notes | Unsecured Notes | ||
Principal maturities of long-term debt by type of debt | ||
2023 | 1,004 | |
2024 | 1,270 | |
2025 | 1,249 | |
2026 | 1,600 | |
2027 | 750 | |
2028-2067 | 2,933 | |
Total principal maturities | 8,806 | |
Long-term debt | 8,748 | |
Debt issuance costs | (62) | |
Repurchase amount | 269 | |
Gain on repurchase of debt | $ 2 | |
Unsecured Notes | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 3.50% | |
Unsecured Notes | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 8.25% | |
Junior Subordinated Debt | ||
Long-term debt | ||
Interest rate | 5.83% | |
Principal maturities of long-term debt by type of debt | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 350 | |
Total principal maturities | 350 | |
Long-term debt | 172 | |
Debt issuance costs | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 15, 2022 | Apr. 26, 2022 | Jan. 31, 2007 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 5,149,000,000 | $ 3,921,000,000 | $ 6,792,000,000 | ||||
Unsecured Notes | 8.875% Senior Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 8.875% | ||||||
Repayments of long-term debt | $ 637,000,000 | ||||||
Loss on repurchase and repayments of debt | $ 26,000,000 | ||||||
Junior Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.83% | ||||||
OMFC | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 5,149,000,000 | $ 3,921,000,000 | $ 6,792,000,000 | ||||
OMFC | Revolver | Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Total borrowing capacity | $ 1,250,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Outstanding balance | $ 0 | ||||||
OMFC | Junior Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 60 years | ||||||
Debt instrument, principal amount | $ 350,000,000 | ||||||
Tangible equity to tangible managed assets (ratio) (less than) | 5.50% | ||||||
Average fixed charge ratio (not more than) | 1.10 | ||||||
OMFC | Junior Subordinated Debt | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
OMFC | Junior Subordinated Debt | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 5.83% |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 498 | $ 541 | $ 2,272 | |
Net finance receivables | 19,986 | 19,212 | ||
Allowance for finance receivable losses | 2,311 | 2,095 | 2,269 | $ 829 |
Restricted cash and restricted cash equivalents | 461 | 476 | $ 451 | |
Other assets | 1,150 | 1,003 | ||
Long-term debt | 18,281 | 17,750 | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 2 | 2 | ||
Net finance receivables | 10,432 | 8,821 | ||
Allowance for finance receivable losses | 1,126 | 910 | ||
Restricted cash and restricted cash equivalents | 442 | 466 | ||
Other assets | 28 | 26 | ||
Long-term debt | 9,361 | 7,999 | ||
Other liabilities | $ 20 | $ 13 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Interest expense | $ 892 | $ 937 | $ 1,027 |
Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Interest expense | $ 305 | $ 293 | $ 338 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Debt Instrument [Line Items] | |
Revolving period | 2 years |
Maximum | |
Debt Instrument [Line Items] | |
Revolving period | 7 years |
Variable Interest Entities - Pr
Variable Interest Entities - Private Secured Term Funding (Details) - Private Secured Term Funding - Consolidated VIEs | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 350,000,000 |
Payments required in first 3 years | $ 0 |
Amortization period after first 3 years | 1 year |
Variable Interest Entities - Re
Variable Interest Entities - Revolving Conduit Facilities (Details) - Consolidated VIEs - Securitizations $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) facility | |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 15 |
Total borrowing capacity | $ 6,200 |
Debt instrument, term | 10 years |
Amounts drawn | $ 50 |
Remaining borrowing capacity | $ 6,100 |
Insurance - Additional Informat
Insurance - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) state | Dec. 31, 2021 USD ($) | |
Claims Development [Line Items] | ||
Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies | $ | $ 305 | $ 322 |
AHL | ||
Claims Development [Line Items] | ||
Number of states in which entity operates | state | 49 | |
Triton | ||
Claims Development [Line Items] | ||
Number of states in which entity operates | state | 50 | |
OMH insurance subsidiaries | ||
Claims Development [Line Items] | ||
Period restricting maximum amount of dividends without prior approval | 12 months | |
Policyholders' surplus restricting maximum amount of dividends (as a percent) | 10% | |
Period restricting maximum ordinary dividends without prior approval | 12 months | |
Policyholders' surplus restricting maximum ordinary dividends (as a percent) | 10% | |
Non Affiliated Entity | ||
Claims Development [Line Items] | ||
Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies | $ | $ 60 | $ 62 |
Insurance - Components of Insur
Insurance - Components of Insurance Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | $ 1,351 | $ 1,382 |
Non-finance receivable related | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | 345 | 365 |
Payable to OMH | Finance receivable related | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | 749 | 761 |
Payable to OMH | Finance receivable related | Unearned premium reserves | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | 672 | 677 |
Payable to OMH | Finance receivable related | Claim reserves | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | 77 | 84 |
Payable to third-party beneficiaries | Finance receivable related | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||
Insurance reserves | $ 257 | $ 256 |
Insurance - Changes in the Rese
Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 118 | $ 148 | $ 117 | |
Less reinsurance recoverables | (3) | (3) | (3) | $ (4) |
Net balance at beginning of period | 115 | 145 | 113 | |
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 177 | 212 | 272 | |
Prior years | (11) | (18) | (11) | |
Total | 166 | 194 | 261 | |
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (108) | (135) | (161) | |
Prior years | (72) | (89) | (67) | |
Total | (180) | (224) | (228) | |
Foreign currency translation adjustment | 1 | 0 | (1) | |
Net balance at end of period | 102 | 115 | 145 | |
Plus reinsurance recoverables | 3 | 3 | 3 | $ 4 |
Balance at end of period | $ 105 | $ 118 | $ 148 |
Insurance - Claims and Allocate
Insurance - Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (Details) $ in Millions | Dec. 31, 2022 USD ($) claim | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 90 | ||||
Insurance lines other than short-duration | 15 | ||||
Total gross liability for unpaid claims and claim adjustment expense | 105 | $ 118 | $ 148 | $ 117 | |
Credit Insurance | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 779 | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 691 | ||||
All outstanding liabilities before 2018, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 88 | ||||
Credit Insurance | 2018 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131 | 132 | 134 | 135 | $ 146 |
Incurred-but-not-reported Liabilities | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 42,897 | ||||
Cumulative Frequency | 2.20% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 130 | 129 | 124 | 115 | $ 81 |
Credit Insurance | 2019 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 147 | 150 | 150 | 155 | |
Incurred-but-not-reported Liabilities | $ 3 | ||||
Cumulative Number of Reported Claims | claim | 45,492 | ||||
Cumulative Frequency | 2% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 144 | 139 | 128 | $ 88 | |
Credit Insurance | 2020 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 205 | 209 | 226 | ||
Incurred-but-not-reported Liabilities | $ 8 | ||||
Cumulative Number of Reported Claims | claim | 68,766 | ||||
Cumulative Frequency | 3.10% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 197 | 186 | $ 128 | ||
Credit Insurance | 2021 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 156 | 162 | |||
Incurred-but-not-reported Liabilities | $ 19 | ||||
Cumulative Number of Reported Claims | claim | 37,845 | ||||
Cumulative Frequency | 1.70% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 137 | $ 99 | |||
Credit Insurance | 2022 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 140 | ||||
Incurred-but-not-reported Liabilities | $ 58 | ||||
Cumulative Number of Reported Claims | claim | 27,284 | ||||
Cumulative Frequency | 1.20% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 83 | ||||
Other short-duration insurance lines | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 2 |
Insurance - Average Annual Perc
Insurance - Average Annual Percentage Payout of Incurred Claims (Details) - Credit Insurance | Dec. 31, 2022 |
Claims Development [Line Items] | |
Year One | 61.50% |
Year Two | 26.50% |
Year Three | 6.50% |
Year Four | 3.60% |
Year Five | 1.30% |
Insurance - Statutory Net Incom
Insurance - Statutory Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and casualty | Triton | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income for insurance companies | $ 58 | $ 66 | $ (7) |
Life and health | AHL | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income for insurance companies | $ 98 | $ 79 | $ 114 |
Insurance - Statutory Capital a
Insurance - Statutory Capital and Surplus for Insurance Companies (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property and casualty | Triton | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus for insurance companies | $ 210 | $ 210 |
Life and health | AHL | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus for insurance companies | $ 387 | $ 292 |
Insurance - Ordinary Dividends
Insurance - Ordinary Dividends Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Triton | |||
Dividends Payable [Line Items] | |||
Ordinary dividends paid | $ 50 | $ 0 | $ 0 |
Life And Health | |||
Dividends Payable [Line Items] | |||
Ordinary dividends paid | |||
AHL | |||
Dividends Payable [Line Items] | |||
Ordinary dividends paid | $ 0 | $ 50 | $ 48 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 class | |
Earnings Per Share [Abstract] | |
Number of classes of authorized stock | 2 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share - Par Value and Shares Authorized (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Common Stock, Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
OMH | ||
Class of Stock [Line Items] | ||
Preferred/Special Stock, Par value (in dollars per share) | $ 0.01 | |
Common Stock, Par value (in dollars per share) | $ 0.01 | |
Preferred/Special Stock, Shares authorized (in shares) | 300,000,000 | |
Common Stock, Shares authorized (in shares) | 2,000,000,000 | |
OMFC | ||
Class of Stock [Line Items] | ||
Preferred/Special Stock, Par value (in dollars per share) | $ 0 | |
Common Stock, Par value (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred/Special Stock, Shares authorized (in shares) | 25,000,000 | |
Common Stock, Shares authorized (in shares) | 25,000,000 | 25,000,000 |
Capital Stock and Earnings Pe_5
Capital Stock and Earnings Per Share (OMH Only) - Changes in Shares Issued and Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 127,809,640 | 134,341,724 | 136,101,156 |
Common stock issued (in shares) | 333,038 | 180,839 | 272,266 |
Common stock repurchased (in shares) | (7,181,023) | (6,712,923) | |
Common stock repurchased (in shares) | (2,031,698) | ||
Treasury stock issued (in shares) | 80,470 | 0 | 0 |
Ending balance (in shares) | 121,042,125 | 127,809,640 | 134,341,724 |
Capital Stock and Earnings Pe_6
Capital Stock and Earnings Per Share - Special Stock and Common Stock Outstanding (OMH Only) (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Special Stock, Shares outstanding (in shares) | 0 | |||
Common stock, shares issued (in shares) | 121,042,125 | 127,809,640 | ||
Common stock, shares outstanding (in shares) | 121,042,125 | 127,809,640 | 134,341,724 | 136,101,156 |
OMFC | ||||
Class of Stock [Line Items] | ||||
Special Stock, Shares issued (in shares) | 0 | 0 | ||
Special Stock, Shares outstanding (in shares) | 0 | |||
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 | ||
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Capital Stock and Earnings Pe_7
Capital Stock and Earnings Per Share (OMH Only) - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator (basic and diluted): | |||
Net income | $ 878 | $ 1,314 | $ 730 |
Denominator: | |||
Weighted average number of shares outstanding (basic) (in shares) | 124,178,643 | 132,653,889 | 134,716,012 |
Effect of dilutive securities (in shares) | 238,631 | 400,605 | 203,246 |
Weighted average number of shares outstanding (diluted) (in shares) | 124,417,274 | 133,054,494 | 134,919,258 |
Earnings per share: | |||
Basic (in dollars per share) | $ 7.07 | $ 9.90 | $ 5.42 |
Diluted (in dollars per share) | $ 7.06 | $ 9.87 | $ 5.41 |
Restricted stock units | |||
Earnings per share: | |||
Shares excluded in the diluted earnings per share calculation (in shares) | 1,335,442 | 421,511 | 231,125 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | $ 3,093 | $ 3,441 | $ 4,330 |
Other comprehensive income (loss) before reclassifications | (179) | (32) | 51 |
Reclassification adjustments from accumulated other comprehensive income | (1) | (1) | (1) |
Balance at end of period | 3,029 | 3,093 | 3,441 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | 49 | 91 | 41 |
Other comprehensive income (loss) before reclassifications | (179) | (41) | 51 |
Reclassification adjustments from accumulated other comprehensive income | (1) | (1) | (1) |
Balance at end of period | (131) | 49 | 91 |
Retirement Plan Liabilities Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | 1 | 1 | 3 |
Other comprehensive income (loss) before reclassifications | (9) | 0 | (2) |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | 0 |
Balance at end of period | (8) | 1 | 1 |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | 3 | 2 | |
Other comprehensive income (loss) before reclassifications | (8) | 1 | 2 |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | 0 |
Balance at end of period | (5) | 3 | 2 |
Other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | 8 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 17 | 8 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | 0 |
Balance at end of period | 25 | 8 | 0 |
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance at beginning of period | 61 | 94 | 44 |
Balance at end of period | $ (119) | $ 61 | $ 94 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income before income tax expense - U.S. operations | $ 1,142 | $ 1,722 | $ 973 |
Income before income tax expense - foreign operations | 21 | 19 | 4 |
Income before income taxes | $ 1,163 | $ 1,741 | $ 977 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 288 | $ 298 | $ 235 |
Foreign | 4 | 1 | 9 |
State | 55 | 50 | 45 |
Total current | 347 | 349 | 289 |
Deferred: | |||
Federal | (51) | 55 | (43) |
State | (11) | 23 | 1 |
Total deferred | (62) | 78 | (42) |
Total | $ 285 | $ 427 | $ 247 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of The Statutory Federal Income Tax Rate to the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Examination [Line Items] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal | 2.93% | 3.27% | 3.52% |
Change in valuation allowance | 0.18% | 0.24% | 0.08% |
Nondeductible compensation | 0.48% | 0.50% | 0.25% |
Other, net | (0.08%) | (0.45%) | 0.48% |
Effective income tax rate | 24.51% | 24.56% | 25.33% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Beginning and Ending Balances of the Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 8 | $ 10 | $ 12 |
Lapse in statute of limitations | (3) | (2) | (4) |
Increases in tax positions for prior years | 1 | 2 | 0 |
Increases in tax positions for current years | 0 | 2 | 2 |
Settlements with tax authorities | 0 | (4) | 0 |
Balance at end of year | $ 6 | $ 8 | $ 10 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 573 | $ 523 |
Net operating losses and tax credits | 35 | 32 |
Insurance reserves | 24 | 34 |
Pension/employee benefits | 24 | 22 |
Fair value of equity and securities investments | 29 | 0 |
Capitalized research and experimental costs | 29 | 0 |
Other | 28 | 32 |
Total | 742 | 643 |
Deferred tax liabilities: | ||
Goodwill | 166 | 144 |
Debt fair value adjustment | 42 | 43 |
Deferred loan fees | 25 | 33 |
Fair value of equity and securities investments | 0 | 17 |
Fixed assets | 16 | 13 |
Other | 11 | 26 |
Total | 260 | 276 |
Net deferred tax assets before valuation allowance | 482 | 367 |
Valuation allowance | (30) | (28) |
Net deferred tax assets | $ 452 | $ 339 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Increase in deferred tax asset | $ 113 | |
State | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Net operating loss carryforwards | 480 | $ 375 |
Valuation allowance | $ 24 | $ 23 |
Leases and Contingencies - Leas
Leases and Contingencies - Leases Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Operating right-of-use asset balance | $ 152 | $ 140 |
Operating lease liability balance | $ 161 | $ 151 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 10 years |
Leases and Contingencies - Matu
Leases and Contingencies - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 58 | |
2024 | 46 | |
2025 | 35 | |
2026 | 23 | |
2027 | 14 | |
2028 | 2 | |
Thereafter | 1 | |
Total lease payments | 179 | |
Imputed interest | (18) | |
Total | $ 161 | $ 151 |
Weighted Average Remaining Lease Term | 3 years 8 months 15 days | |
Weighted Average Discount Rate | 3.24% |
Leases and Contingencies - Othe
Leases and Contingencies - Other operating expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 58 | $ 60 | $ 63 |
Variable lease cost | 14 | 15 | 15 |
Total | $ 72 | $ 75 | $ 78 |
Retirement Benefit Plans - 401(
Retirement Benefit Plans - 401(K) Plans (Details) - UNITED STATES - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employer matching contribution | 100% | ||
Percentage of employee salary eligible for employer matching contribution | 4% | ||
Salaries and benefit expenses related to plan | $ 19 | $ 17 | $ 18 |
Retirement Benefits Plans - Def
Retirement Benefits Plans - Defined Benefit Plans (Details) - Pension Plan | 12 Months Ended |
Dec. 31, 2022 | |
UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 12 months |
Vesting period | 5 years |
Normal retirement age | 65 years |
Maximum credited service period | 44 years |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 1 year |
Retirement Benefit Plans - Obli
Retirement Benefit Plans - Obligations and Funded Status (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) benefitPlan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Fair value of plan assets | |||
Fair value of plan assets, beginning of period | $ 383 | ||
Benefits paid: | |||
Fair value of plan assets, end of period | 278 | $ 383 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of period | 374 | 401 | $ 364 |
Interest cost | 8 | 7 | 10 |
Actuarial loss (gain) | (91) | (18) | 42 |
Benefits paid: | |||
Plan assets | (16) | (16) | (15) |
Projected benefit obligation, end of period | 275 | 374 | 401 |
Fair value of plan assets | |||
Fair value of plan assets, beginning of period | 383 | 405 | 363 |
Actual return on plan assets, net of expenses | (90) | (7) | 56 |
Company contributions | 1 | 1 | 1 |
Benefits paid: | |||
Plan assets | (16) | (16) | (15) |
Fair value of plan assets, end of period | 278 | 383 | 405 |
Funded status, end of period | 3 | 9 | 4 |
Other assets recognized in the consolidated balance sheet | 3 | 9 | 4 |
Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) | (10) | 2 | 3 |
Pension Plan | Defined Benefit Plan, Overfunded Plan | |||
Benefits paid: | |||
Funded status, end of period | $ 14 | 22 | 18 |
Number of overfunded benefit plans | benefitPlan | 1 | ||
Pension Plan | Defined Benefit Plan, Underfunded Plan | |||
Benefits paid: | |||
Funded status, end of period | $ 11 | $ 13 | $ 14 |
Number of underfunded benefit plans | benefitPlan | 3 |
Retirement Benefit Plans - PBO
Retirement Benefit Plans - PBO and ABO and Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Total recognized in other comprehensive income | $ 12 | $ 1 | $ 2 |
Pension Plan | |||
Components of net periodic benefit cost: | |||
Interest cost | 8 | 7 | 10 |
Expected return on assets | (13) | (12) | (15) |
Net periodic benefit cost | (5) | (5) | (5) |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss | 12 | 1 | 2 |
Total recognized in other comprehensive income | 12 | 1 | 2 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 7 | $ (4) | $ (3) |
Retirement Benefit Plans - Assu
Retirement Benefit Plans - Assumptions (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Projected benefit obligation: | ||
Discount rate | 4.96% | 2.67% |
Net periodic benefit costs: | ||
Discount rate | 2.67% | 2.30% |
Expected long-term rate of return on plan assets | 3.54% | 3.04% |
Retirement Benefit Plans - Allo
Retirement Benefit Plans - Allocation of Plan Assets (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 3.54% | 3.04% |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 3.50% | |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 4.75% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 95% | |
Target asset allocation | 95% | |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 4% | |
Target asset allocation | 5% | |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 1% |
Retirement Benefit Plans - Expe
Retirement Benefit Plans - Expected Cash Flows (Details) - Pension Plan $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 17 |
2024 | 17 |
2025 | 17 |
2026 | 17 |
2027 | 18 |
2028-2032 | $ 90 |
Retirement Benefit Plans - Fair
Retirement Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | $ 278 | $ 383 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 216 | 315 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 21 | 34 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 195 | 281 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fair value measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 62 | 68 |
Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Equity securities: U.S. | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 2 |
Equity securities: U.S. | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 1 |
Equity securities: U.S. | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 1 |
Equity securities: U.S. | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Equity securities: International | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 1 |
Equity securities: International | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 1 |
Equity securities: International | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Equity securities: International | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. investment grade | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 208 | 304 |
Fixed income securities: U.S. investment grade | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 16 | 28 |
Fixed income securities: U.S. investment grade | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 192 | 276 |
Fixed income securities: U.S. investment grade | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. high yield | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Fixed income securities: U.S. high yield | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. high yield | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Fixed income securities: U.S. high yield | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | $ 0 | $ 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2022 | |
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares of common stock authorized (in shares) | 12,335,931 | |||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted | 10% | |||
Share-based compensation expense | $ 29 | $ 22 | $ 15 | |
Total income tax benefit recognized for stock-based compensation | 7 | $ 6 | $ 4 | |
Unrecognized compensation expense | $ 41 | |||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 2 years | |||
Treasury stock issued (in shares) | 80,470 | 0 | 0 | |
Service-based Awards | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Granted during the period (in dollars per share) | $ 50.43 | $ 55.39 | $ 39.86 | |
Fair value of service based awards vested in period | $ 18 | $ 12 | $ 15 | |
Restricted stock units | Minimum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Vesting period of award without rights | 1 year | |||
Restricted stock units | Maximum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Vesting period of award without rights | 5 years | |||
PRSUs | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Granted during the period (in dollars per share) | $ 50.34 | $ 40.62 | $ 42.86 | |
Fair value of service based awards vested in period | $ 7 | $ 0 | $ 0 | |
PRSUs | Median | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Achievement of performance goal | 3 years | |||
PRSUs | Maximum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Achievement of performance goal | 7 years | |||
Cash-Settled Stock-Based Awards | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Share-based compensation expense | $ 54 | |||
Employee Stock | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares of common stock authorized (in shares) | 1,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service-based Awards | |||
Number of Shares | |||
Unvested as of beginning of period (in shares) | 736,285 | ||
Granted (in shares) | 390,711 | ||
Vested (in shares) | (359,145) | ||
Forfeited (in shares) | (27,436) | ||
Unvested as of end of period (in shares) | 740,415 | 736,285 | |
Weighted Average Grant Date Fair Value | |||
Unvested as of beginning of period (in dollars per share) | $ 51.25 | ||
Granted (in dollars per share) | 50.43 | $ 55.39 | $ 39.86 |
Vested (in dollars per share) | 48.84 | ||
Forfeited (in dollars per share) | 52.11 | ||
Unvested as of end of period (in dollars per share) | $ 51.43 | $ 51.25 | |
Weighted Average Remaining Term (in Years) | 2 years 1 month 20 days | ||
PRSUs | |||
Number of Shares | |||
Unvested as of beginning of period (in shares) | 974,691 | ||
Granted (in shares) | 120,353 | ||
Vested (in shares) | (157,948) | ||
Forfeited (in shares) | (19,350) | ||
Unvested as of end of period (in shares) | 917,746 | 974,691 | |
Weighted Average Grant Date Fair Value | |||
Unvested as of beginning of period (in dollars per share) | $ 39.12 | ||
Granted (in dollars per share) | 50.34 | $ 40.62 | $ 42.86 |
Vested (in dollars per share) | 31.27 | ||
Forfeited (in dollars per share) | 45.12 | ||
Unvested as of end of period (in dollars per share) | $ 41.77 | $ 39.12 | |
Weighted Average Remaining Term (in Years) | 1 year 9 months 7 days |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 4,435 | $ 4,364 | $ 4,368 |
Interest expense | 892 | 937 | 1,027 |
Provision for finance receivable losses | 1,402 | 593 | 1,319 |
Net interest income after provision for finance receivable losses | 2,141 | 2,834 | 2,022 |
Total other revenues | 629 | 531 | 526 |
Total other expenses | 1,607 | 1,624 | 1,571 |
Income before income taxes | 1,163 | 1,741 | 977 |
Total assets | 22,533 | 22,079 | 22,471 |
Consumer and Insurance | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Interest income | 4,429 | 4,355 | 4,353 |
Interest expense | 886 | 930 | 1,007 |
Provision for finance receivable losses | 1,399 | 587 | 1,313 |
Net interest income after provision for finance receivable losses | 2,144 | 2,838 | 2,033 |
Total other revenues | 618 | 527 | 515 |
Total other expenses | 1,585 | 1,577 | 1,527 |
Income before income taxes | 1,177 | 1,788 | 1,021 |
Total assets | 20,487 | 20,019 | 20,376 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 5 | 5 | 6 |
Interest expense | 3 | 3 | 4 |
Provision for finance receivable losses | 0 | 0 | 0 |
Net interest income after provision for finance receivable losses | 2 | 2 | 2 |
Total other revenues | 12 | 12 | 13 |
Total other expenses | 14 | 21 | 24 |
Income before income taxes | 0 | (7) | (9) |
Total assets | 35 | 40 | 57 |
Segment to GAAP Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest income | 1 | 4 | 9 |
Interest expense | 3 | 4 | 16 |
Provision for finance receivable losses | 3 | 6 | 6 |
Net interest income after provision for finance receivable losses | (5) | (6) | (13) |
Total other revenues | (1) | (8) | (2) |
Total other expenses | 8 | 26 | 20 |
Income before income taxes | (14) | (40) | (35) |
Total assets | $ 2,011 | $ 2,020 | $ 2,038 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Restricted cash and restricted cash equivalents | $ 461 | $ 476 | $ 451 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 498 | 541 | |
Investment securities | 1,800 | 1,992 | |
Net finance receivables, less allowance for finance receivable losses | 19,272 | 20,083 | |
Restricted cash and restricted cash equivalents | 461 | 476 | |
Other assets | 43 | 52 | |
Liabilities | |||
Long-term debt | 16,969 | 18,781 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 498 | 541 | |
Investment securities | 1,800 | 1,992 | |
Net finance receivables, less allowance for finance receivable losses | 17,675 | 17,117 | |
Restricted cash and restricted cash equivalents | 461 | 476 | |
Other assets | 35 | 46 | |
Liabilities | |||
Long-term debt | 18,281 | 17,750 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 481 | 535 | |
Investment securities | 51 | 59 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 450 | 476 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 17 | 6 | |
Investment securities | 1,744 | 1,927 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 11 | 0 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 16,969 | 18,781 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 5 | 6 | |
Net finance receivables, less allowance for finance receivable losses | 19,272 | 20,083 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 43 | 52 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | $ 1,729 | $ 1,907 | |
Other securities | 71 | 85 | |
Restricted cash and restricted cash equivalents | 461 | 476 | $ 451 |
U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 16 | 16 | |
Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 66 | 79 | |
Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,137 | 1,302 | |
RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 192 | 170 | |
CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 35 | 45 | |
CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 86 | 90 | |
Level 1 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 51 | 59 | |
Restricted cash and restricted cash equivalents | 450 | 476 | |
Level 2 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 1,744 | 1,927 | |
Restricted cash and restricted cash equivalents | 11 | 0 | |
Level 3 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 5 | 6 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Fair Value, Measurements, Recurring | |||
Assets | |||
Cash equivalents in mutual funds | 77 | 41 | |
Cash equivalents in securities | 17 | 6 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,729 | 1,907 | |
Other securities | 71 | 85 | |
Total investment securities | 1,800 | 1,992 | |
Restricted cash equivalents in mutual funds | 445 | 468 | |
Restricted cash and restricted cash equivalents | 11 | ||
Total | 2,350 | 2,507 | |
Fair Value, Measurements, Recurring | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 23 | 30 | |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 16 | 16 | |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 66 | 79 | |
Fair Value, Measurements, Recurring | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 55 | 50 | |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 142 | 155 | |
Fair Value, Measurements, Recurring | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,137 | 1,302 | |
Other securities | 6 | 9 | |
Fair Value, Measurements, Recurring | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 192 | 170 | |
Other securities | 1 | 1 | |
Fair Value, Measurements, Recurring | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 35 | 45 | |
Fair Value, Measurements, Recurring | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 86 | 90 | |
Other securities | 16 | 20 | |
Fair Value, Measurements, Recurring | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 15 | 22 | |
Fair Value, Measurements, Recurring | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 33 | 33 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets | |||
Cash equivalents in mutual funds | 77 | 41 | |
Cash equivalents in securities | 0 | 0 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 5 | 5 | |
Other securities | 46 | 54 | |
Total investment securities | 51 | 59 | |
Restricted cash equivalents in mutual funds | 445 | 468 | |
Restricted cash and restricted cash equivalents | 0 | ||
Total | 573 | 568 | |
Fair Value, Measurements, Recurring | Level 1 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 5 | 5 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 15 | 22 | |
Fair Value, Measurements, Recurring | Level 1 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 31 | 32 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets | |||
Cash equivalents in mutual funds | 0 | 0 | |
Cash equivalents in securities | 17 | 6 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,721 | 1,897 | |
Other securities | 23 | 30 | |
Total investment securities | 1,744 | 1,927 | |
Restricted cash equivalents in mutual funds | 0 | 0 | |
Total | 1,772 | 1,933 | |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 23 | 30 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 16 | 16 | |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 66 | 79 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 55 | 50 | |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 142 | 155 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,129 | 1,292 | |
Other securities | 6 | 9 | |
Fair Value, Measurements, Recurring | Level 2 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 192 | 170 | |
Other securities | 1 | 1 | |
Fair Value, Measurements, Recurring | Level 2 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 35 | 45 | |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 86 | 90 | |
Other securities | 16 | 20 | |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets | |||
Cash equivalents in mutual funds | 0 | 0 | |
Cash equivalents in securities | 0 | 0 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 3 | 5 | |
Other securities | 2 | 1 | |
Total investment securities | 5 | 6 | |
Restricted cash equivalents in mutual funds | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | ||
Total | 5 | 6 | |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 3 | 5 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | $ 2 | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Dec. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Debt carried at fair value under the fair value option | $ 0 |
Uncategorized Items - omf-20221
Label | Element | Value | |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] | [1] |
OneMain Finance Corporation [Member] | |||
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] | [2] |
[1]As a result of the adoption of ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. |