Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-36560 | ||
Entity Registrant Name | SYNCHRONY FINANCIAL | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0483352 | ||
Entity Address, Address Line One | 777 Long Ridge Road | ||
Entity Address, City or Town | Stamford, | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 585-2400 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,182,270,780 | ||
Entity Common Stock, Shares Outstanding | 406,843,602 | ||
Documents Incorporated by Reference | The definitive proxy statement relating to the registrant’s Annual Meeting of Stockholders, to be held June 11, 2024, is incorporated by reference into Part III to the extent described therein. | ||
Entity Central Index Key | 0001601712 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | KPMG LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 185 | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Trading Symbol | SYF | ||
Security Exchange Name | NYSE | ||
Series A Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | ||
Trading Symbol | SYFPrA | ||
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Interest and fees on loans (Note 5) | $ 19,902 | $ 16,881 | $ 15,228 |
Interest on cash and debt securities | 808 | 265 | 43 |
Total interest income | 20,710 | 17,146 | 15,271 |
Interest expense: | |||
Interest on deposits | 2,952 | 1,008 | 566 |
Interest on senior unsecured notes | 419 | 317 | 297 |
Total interest expense | 3,711 | 1,521 | 1,032 |
Net interest income | 16,999 | 15,625 | 14,239 |
Retailer share arrangements | (3,661) | (4,331) | (4,528) |
Provision for credit losses (Note 5) | 5,965 | 3,375 | 726 |
Net interest income, after retailer share arrangements and provision for credit losses | 7,373 | 7,919 | 8,985 |
Other income: | |||
Interchange revenue | 1,031 | 982 | 880 |
Protection product revenue | 510 | 387 | 284 |
Loyalty programs | (1,370) | (1,257) | (992) |
Other | 118 | 268 | 309 |
Total other income | 289 | 380 | 481 |
Other expense: | |||
Employee costs | 1,884 | 1,681 | 1,501 |
Professional fees | 842 | 832 | 782 |
Marketing and business development | 527 | 487 | 486 |
Information processing | 712 | 623 | 550 |
Other | 793 | 714 | 644 |
Total other expense | 4,758 | 4,337 | 3,963 |
Earnings before provision for income taxes | 2,904 | 3,962 | 5,503 |
Provision for income taxes (Note 15) | 666 | 946 | 1,282 |
Net earnings | 2,238 | 3,016 | 4,221 |
Net earnings available to common stockholders | $ 2,196 | $ 2,974 | $ 4,179 |
Earnings per share | |||
Basic (in usd per share) | $ 5.21 | $ 6.19 | $ 7.40 |
Diluted (in usd per share) | $ 5.19 | $ 6.15 | $ 7.34 |
Variable Interest Entity, Primary Beneficiary | |||
Interest income: | |||
Interest and fees on loans (Note 5) | $ 3,900 | $ 3,700 | $ 4,100 |
Interest expense: | |||
Interest on borrowings of consolidated securitization entities | 340 | 196 | 169 |
Provision for credit losses (Note 5) | $ 857 | $ 365 | $ (105) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 2,238 | $ 3,016 | $ 4,221 |
Other comprehensive income (loss) | |||
Debt securities | 60 | (97) | (21) |
Currency translation adjustments | 0 | (12) | (4) |
Employee benefit plans | (3) | 53 | 7 |
Other comprehensive income (loss) | 57 | (56) | (18) |
Comprehensive income | $ 2,295 | $ 2,960 | $ 4,203 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and equivalents | $ 14,259 | $ 10,294 |
Debt securities | 3,799 | 4,879 |
Total loan receivables | 102,988 | 92,470 |
Less: Allowance for credit losses | (10,571) | (9,527) |
Loan receivables, net | 92,417 | 82,943 |
Goodwill (Note 7) | 1,018 | 1,105 |
Intangible assets, net (Note 7) | 815 | 742 |
Other assets | 4,915 | 4,601 |
Assets held for sale (Note 3) | 256 | 0 |
Total assets | 117,479 | 104,564 |
Deposits: (Note 8) | ||
Interest-bearing deposit accounts | 80,789 | 71,336 |
Non-interest-bearing deposit accounts | 364 | 399 |
Total deposits | 81,153 | 71,735 |
Borrowings: (Notes 6 and 9) | ||
Senior and subordinated unsecured notes | 8,715 | 7,964 |
Total borrowings | 15,982 | 14,191 |
Accrued expenses and other liabilities | 6,334 | 5,765 |
Liabilities held for sale | 107 | 0 |
Total liabilities | 103,576 | 91,691 |
Equity: | ||
Preferred stock, par share value $0.001 per share; 750,000 shares authorized; 750,000 shares issued and outstanding at both December 31, 2023 and 2022 and aggregate liquidation preference of $750 at both December 31, 2023 and 2022 | 734 | 734 |
Common stock, par share value 0.001 per share; 4,000,000,000 shares authorized; 833,984,684 shares issued at both December 31, 2023 and 2022; 406,875,775 and 438,216,755 shares outstanding at December 31, 2023 and 2022, respectively | 1 | 1 |
Additional paid-in capital | 9,775 | 9,718 |
Retained earnings | 18,662 | 16,716 |
Accumulated other comprehensive income (loss): | ||
Debt securities | (33) | (93) |
Currency translation adjustments | (38) | (38) |
Employee benefit plans | 3 | 6 |
Treasury stock, at cost; 427,108,909 and 395,767,929 shares at December 31, 2023 and 2022, respectively | (15,201) | (14,171) |
Total equity | 13,903 | 12,873 |
Total liabilities and equity | 117,479 | 104,564 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Total loan receivables | 21,434 | 19,832 |
Less: Allowance for credit losses | (1,900) | (1,800) |
Loan receivables, net | 19,537 | 18,015 |
Other assets | 47 | 61 |
Total assets | 19,584 | 18,076 |
Borrowings: (Notes 6 and 9) | ||
Borrowings of consolidated securitization entities | 7,267 | 6,227 |
Total liabilities | 7,298 | 6,250 |
Unsecuritized Loans Held for Investment | ||
Assets | ||
Total loan receivables | $ 81,554 | $ 72,638 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position Statement (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 750,000 | 750,000 |
Preferred stock shares issued (in shares) | 750,000 | 750,000 |
Preferred stock shares outstanding (in shares) | 750,000 | 750,000 |
Preferred stock liquidation preference value | $ 750 | $ 750 |
Common stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock shares issued (in shares) | 833,984,684 | 833,984,684 |
Common stock shares outstanding (in shares) | 406,875,775 | 438,216,755 |
Treasury stock (in shares) | 427,108,909 | 395,767,929 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance |
Preferred stock shares issued (in shares) | 750,000 | |||||||||||||||
Common stock shares issued (in shares) | 833,985,000 | |||||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 56.24 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.88 | |||||||||||||||
Balance at Dec. 31, 2020 | $ 12,701 | $ 734 | $ 1 | $ 9,570 | $ 10,621 | $ (51) | $ (8,174) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | 4,221 | 4,221 | ||||||||||||||
Other comprehensive income | (18) | (18) | ||||||||||||||
Purchases of treasury stock | (2,876) | (2,876) | ||||||||||||||
Stock-based compensation (in shares) | 0 | |||||||||||||||
Stock-based compensation, adjustments to additional paid in capital | 169 | 99 | ||||||||||||||
Treasury Stock Reissued at Lower than Repurchase Price | (55) | |||||||||||||||
Treasury Stock Reissued During Period, Value | 125 | |||||||||||||||
Dividends, Preferred Stock, Cash | (42) | (42) | ||||||||||||||
Dividends, Common Stock, Cash | (500) | (500) | ||||||||||||||
Balance at Dec. 31, 2021 | $ 13,655 | $ 734 | $ 1 | 9,669 | 14,245 | (69) | (10,925) | |||||||||
Preferred stock shares issued (in shares) | 750,000 | |||||||||||||||
Common stock shares issued (in shares) | 833,985,000 | |||||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 56.24 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.90 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | $ 3,016 | 3,016 | ||||||||||||||
Other comprehensive income | (56) | (56) | ||||||||||||||
Purchases of treasury stock | (3,320) | (3,320) | ||||||||||||||
Stock-based compensation (in shares) | 0 | |||||||||||||||
Stock-based compensation, adjustments to additional paid in capital | 54 | 49 | ||||||||||||||
Treasury Stock Reissued at Lower than Repurchase Price | (69) | |||||||||||||||
Treasury Stock Reissued During Period, Value | 74 | |||||||||||||||
Dividends, Preferred Stock, Cash | (42) | (42) | ||||||||||||||
Dividends, Common Stock, Cash | (434) | (434) | ||||||||||||||
Balance at Dec. 31, 2022 | $ 12,873 | $ 734 | $ 1 | 9,718 | 16,716 | (125) | (14,171) | |||||||||
Balance (Accounting Standards Update 2022-02) at Dec. 31, 2022 | $ 222 | $ 13,095 | $ 734 | $ 1 | $ 9,718 | $ 222 | $ 16,938 | $ (125) | $ (14,171) | |||||||
Preferred stock shares issued (in shares) | 750,000 | 750,000 | ||||||||||||||
Preferred stock shares issued (in shares) | Accounting Standards Update 2022-02 | 750,000 | |||||||||||||||
Common stock shares issued (in shares) | 833,984,684 | 833,985,000 | ||||||||||||||
Common stock shares issued (in shares) | Accounting Standards Update 2022-02 | 833,985,000 | |||||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 56.24 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.96 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | $ 2,238 | 2,238 | ||||||||||||||
Other comprehensive income | 57 | 57 | ||||||||||||||
Purchases of treasury stock | (1,112) | (1,112) | ||||||||||||||
Stock-based compensation (in shares) | 0 | |||||||||||||||
Stock-based compensation, adjustments to additional paid in capital | 73 | 57 | ||||||||||||||
Treasury Stock Reissued at Lower than Repurchase Price | (66) | |||||||||||||||
Treasury Stock Reissued During Period, Value | 82 | |||||||||||||||
Dividends, Preferred Stock, Cash | (42) | (42) | ||||||||||||||
Dividends, Common Stock, Cash | (406) | (406) | ||||||||||||||
Balance at Dec. 31, 2023 | $ 13,903 | $ 734 | $ 1 | $ 9,775 | $ 18,662 | $ (68) | $ (15,201) | |||||||||
Preferred stock shares issued (in shares) | 750,000 | 750,000 | ||||||||||||||
Common stock shares issued (in shares) | 833,984,684 | 833,985,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows - operating activities | |||
Net earnings | $ 2,238 | $ 3,016 | $ 4,221 |
Adjustments to reconcile net earnings to cash provided from operating activities | |||
Provision for credit losses | 5,965 | 3,375 | 726 |
Deferred income taxes | (458) | (421) | 219 |
Depreciation and amortization | 458 | 419 | 390 |
(Increase) decrease in interest and fees receivable | (645) | (197) | 424 |
(Increase) decrease in other assets | 7 | 21 | 37 |
Increase (decrease) in accrued expenses and other liabilities | 293 | (93) | 560 |
All other operating activities | 735 | 574 | 522 |
Cash provided from (used for) operating activities | 8,593 | 6,694 | 7,099 |
Cash flows - investing activities | |||
Maturity and sales of debt securities | 5,011 | 3,984 | 5,080 |
Purchases of debt securities | (3,623) | (3,866) | (2,990) |
Proceeds from sale of loan receivables | 0 | 3,930 | 23 |
Net (increase) decrease in loan receivables, including held for sale | (14,900) | (13,733) | (6,378) |
All other investing activities | (722) | (549) | (549) |
Cash provided from (used for) investing activities | (14,234) | (10,234) | (4,814) |
Borrowings of consolidated securitization entities | |||
Proceeds from issuance of securitized debt | 2,294 | 2,720 | 2,361 |
Maturities and repayment of securitized debt | (1,257) | (3,784) | (2,886) |
Senior and subordinated unsecured notes | |||
Proceeds from issuance of senior and subordinated unsecured notes | 740 | 2,235 | 744 |
Maturities and repayment of senior and subordinated unsecured notes | 0 | (1,500) | (1,500) |
Dividends paid on preferred stock | (42) | (42) | (42) |
Net increase (decrease) in deposits | 9,437 | 9,453 | (534) |
Purchases of treasury stock | (1,112) | (3,320) | (2,876) |
Dividends paid on common stock | (406) | (434) | (500) |
All other financing activities | (22) | (44) | 29 |
Cash provided from (used for) financing activities | 9,632 | 5,284 | (5,204) |
Increase (decrease) in cash and equivalents, including restricted and held for sale amounts | 3,991 | 1,744 | (2,919) |
Cash and equivalents, including restricted amounts, at beginning of year | 10,430 | 8,686 | 11,605 |
Total cash and equivalents, including restricted and held for sale amounts, at end of year | 10,430 | 8,686 | |
Cash and equivalents | 14,259 | 10,294 | 8,337 |
Restricted cash and equivalents included in other assets | 50 | 136 | 349 |
Cash and equivalents, including restricted amounts, held for sale | 112 | 0 | 0 |
Total cash and equivalents, including restricted and held for sale amounts, at end of year | 14,421 | 10,430 | 8,686 |
Cash and equivalents | |||
Cash paid during the year for interest | (3,551) | (1,356) | (1,034) |
Cash paid during the year for income taxes | $ (1,125) | $ (1,290) | $ (1,112) |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | BUSINESS DESCRIPTION Synchrony Financial (the “Company”) provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. We primarily offer private label, Dual Card, co-brand and general purpose credit cards, as well as short- and long-term installment loans, and savings products insured by the Federal Deposit Insurance Corporation (“FDIC”) through Synchrony Bank (the “Bank”). References to the “Company,” “we,” “us” and “our” are to Synchrony Financial and its consolidated subsidiaries unless the context otherwise requires. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions (for example, unemployment, housing, interest rates and market liquidity) which affect reported amounts and related disclosures in our consolidated financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in incremental losses on loan receivables, future impairments of debt securities, goodwill and intangible assets, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increases in our tax liabilities. We primarily conduct our business within the United States and substantially all of our revenues are from U.S. customers. The operating activities conducted by our non-U.S. affiliates use the local currency as their functional currency. The effects of translating the financial statements of these non-U.S. affiliates to U.S. dollars are included in equity. Asset and liability accounts are translated at period-end exchange rates, while revenues and expenses are translated at average rates for the respective periods. Consolidated Basis of Presentation The Company’s financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries – i.e., entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (“power”) combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses (“significant economics”), we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. We consolidate certain securitization entities under the VIE model because we have both power and significant economics. See Note 6. Variable Interest Entities. Investments in which we do not hold a controlling financial interest but have significant influence over the entity’s financial and operating decisions are accounted for under the equity method. Changes in Presentation At December 31, 2023, contract costs related to our retailer partner agreements of $498 million, net of accumulated amortization, previously classified as Intangible assets are now presented as a component of Other assets on our Consolidated Statements of Financial Position. Reclassifications of prior period amounts of $545 million, net of accumulated amortization, have been made to conform with the current period presentation discussed above. Protection product revenue in our Consolidated Statements of Income was previously captioned “ Debt cancellation fees ” and represents fees earned from our debt cancellation product offered to our credit card customers. New Accounting Standards Newly Adopted Accounting Standards In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. The Company adopted this guidance as of January 1, 2023, on a modified retrospective basis, which resulted in the recognition of the effects of adoption through a cumulative-effect adjustment to retained earnings. As a result of adoption, we incurred a reduction of $294 million to the Company's allowance for credit losses, and a corresponding increase, net of tax effect, to retained earnings of $222 million. Subsequent updates to our estimate of expected credit losses have been recorded through the provision for credit losses in our Consolidated Statements of Earnings. Recently Issued But Not Yet Adopted Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements and requires enhanced disclosures about significant segment expenses. The Company will adopt this guidance on a retrospective basis on its effective date, which for us is beginning within our December 31, 2024 Form 10-K. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation, as well as additional qualitative information about the reconciliation, and additional disaggregated information about income taxes paid. The Company will adopt this guidance on its effective date, which for us is beginning within our December 31, 2025 Form 10-K, and is currently determining the method of adoption. Segment Reporting We conduct our operations through a single business segment. Substantially all of our interest and fees on loans and long-lived assets relate to our operations within the United States. Pursuant to FASB Accounting Standards Codification (“ASC”) 280, Segment Reporting , operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in determining how to allocate resources and in assessing performance. The chief operating decision maker uses a variety of measures to assess the performance of the business as a whole, depending on the nature of the activity. Revenue activities are primarily managed through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). Those platforms are organized by the types of partners we work with to reach our customers, with success principally measured based on interest and fees on loans, loan receivables, active accounts and other sales metrics. Detailed profitability information of the nature that could be used to allocate resources and assess the performance and operations for each sales platform individually, however, is not used by our chief operating decision maker. Expense activities, including funding costs, credit losses and operating expenses, are not measured for each platform but instead are managed for the Company as a whole. Cash and Equivalents Debt securities, money market instruments and bank deposits with original maturities of three months or less are included in cash and equivalents unless designated as available-for-sale and classified as debt securities. Cash and equivalents at December 31, 2023 primarily included cash and due from banks of $1.4 billion and interest-bearing deposits in other banks of $12.8 billion. Cash and equivalents at December 31, 2022 primarily included cash and due from banks of $1.5 billion and interest-bearing deposits in other banks of $8.8 billion. Restricted Cash and Equivalents Restricted cash and equivalents represent cash and equivalents that are not available to us due to restrictions related to its use. In addition, our securitization entities are required to fund segregated accounts that may only be used for certain purposes, including payment of interest and servicing fees and repayment of maturing debt. We include our restricted cash and equivalents in Other assets in our Consolidated Statements of Financial Position. Investment Securities We report investments in debt securities and equity securities with a readily determinable fair value at fair value. See Note 10. Fair Value Measurements for further information on fair value. Changes in fair value on debt securities, which are classified as available-for-sale, are included in equity, net of applicable taxes. Changes in fair value on equity securities are included in earnings. We regularly review investment securities for impairment using both quantitative and qualitative criteria. For debt securities, if we do not intend to sell the security, or it is not more likely than not, that we will be required to sell the security before recovery of our amortized cost, we evaluate other qualitative criteria to determine whether we do not expect to recover the amortized cost basis of the security, such as the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. We also evaluate quantitative criteria including determining whether there has been an adverse change in expected future cash flows. If we do not expect to recover the entire amortized cost basis of the security, we consider the debt security to be impaired. If the security is impaired, we determine whether the impairment is the result of a credit loss or other factors. If a credit loss exists, an allowance for credit losses is recorded, with a related charge to earnings, limited by the amount that the fair value of the security is less than its amortized cost. Given the nature of our current portfolio, we perform a qualitative assessment to determine whether any credit loss is warranted. The assessment considers factors such as adverse conditions and payment structure of the securities, history of payment, and market conditions. If we intend to sell the security or it is more likely than not we will be required to sell the debt security before recovery of its amortized cost basis, the security is also considered impaired and we recognize the entire difference between the security’s amortized cost basis and its fair value in earnings. Realized gains and losses are accounted for on the specific identification method. Loan Receivables Loan receivables primarily consist of open-end consumer revolving credit card accounts, closed-end consumer installment loans and open-end commercial revolving credit card accounts. Loan receivables are reported at the amounts due from customers, including unpaid interest and fees, deferred income and costs. Loan Receivables Held for Sale Loans purchased or originated with the intent to sell are classified as loan receivables held for sale and carried at the lower of amortized cost or fair value. Loans initially classified as held for investment are transferred to loan receivables held for sale and carried at the lower of amortized cost or fair value once a decision has been made to sell the loans. We continue to recognize interest and fees on these loans on the accrual basis. The fair value of loan receivables held for sale is determined on an aggregate homogeneous portfolio basis. If a loan is transferred from held for investment to held for sale, any associated allowance for credit loss is reversed through earnings, and the loan is transferred to held for sale at amortized cost. The amount by which amortized cost basis exceeds fair value is accounted for as a valuation allowance. The loan is carried at the lower of amortized cost or fair value. Acquired Loans To determine the fair value of loans at acquisition, we estimate expected cash flows and discount those cash flows using an observable market rate of interest, when available, adjusted for factors that a market participant would consider in determining fair value. In determining fair value, expected cash flows are adjusted to include prepayment, default rate, and loss severity estimates. The difference between the fair value and the amount contractually due is recorded as a loan discount or premium at acquisition. Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination (referred to as “purchased credit deteriorated” or “PCD” assets) are subject to specific guidance upon acquisition. An allowance for PCD assets is added to the purchase price or fair value of the acquired loans to arrive at the amortized cost basis. Subsequent to initial recognition, the accounting for the PCD asset will generally follow the credit loss model described below. Loans acquired without a more-than-insignificant credit deterioration since origination are measured under the Allowance for Credit Losses model described below. Allowance for Credit Losses As discussed above, the Company adopted ASU 2022-02 as of January 1, 2023. Losses on loan receivables are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance as of the period end date. Expected credit loss estimates involve modeling loss projections attributable to existing loan balances, considering historical experience, current conditions and future expectations for pools of loans with similar risk characteristics over the reasonable and supportable forecast period. The model considers a macroeconomic forecast, with unemployment as the primary macroeconomic variable considered. We also perform a qualitative assessment in addition to model estimates and apply qualitative adjustments as necessary. The reasonable and supportable forecast period is determined primarily based upon an assessment of the current economic outlook, including our ability to use available data to accurately forecast losses over time. The reasonable and supportable forecast period used in our estimate of credit losses at December 31, 2023 was 12 months, consistent with the forecast period utilized since adoption of CECL. The Company reassesses the reasonable and supportable forecast period on a quarterly basis. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, gradually increasing the weight of historical losses by an equal amount each month during the reversion period, and utilize historical loss information thereafter for the remaining life of the portfolio. The historical loss information is derived from a combination of recessionary and non-recessionary performance periods, weighted by the time span of each period. Similar to the reasonable and supportable forecast period, we also reassess the reversion period and historical mean on a quarterly basis, considering any required adjustments for differences in underwriting standards, portfolio mix, and other relevant data shifts over time. We generally segment our loan receivable population into pools of loans with similar risk characteristics at the major retailer and product level. Consistent with our other assumptions, we regularly review segmentation to determine whether the segmentation pools remain relevant as risk characteristics change. Our loan receivables generally do not have a stated life. The life of a credit card loan receivable is dependent upon the allocation of payments received, as well as a variety of other factors, including the principal balance, promotional terms, interest charges and fees and overall consumer credit profile and usage pattern. We determine the expected credit losses for credit card loan receivables as of the measurement date by using a combination of migration analysis, and other historical analyses, which implicitly consider the payments attributable to the measurement date balance. To do so, we utilize an approach which implicitly considers total expected future payments and applies appropriate allocations to reduce those payments in order to estimate losses pertaining to measurement date loan receivables. Based on our payments analyses, we also ensure that expected future payments from an account do not exceed the measurement date balance. We evaluate each portfolio quarterly. For credit card receivables, our estimation process includes analysis of historical data, and there is a significant amount of judgment applied in selecting inputs and analyzing the results produced by the models to determine the allowance for credit losses. We use an enhanced migration analysis to estimate the likelihood that a loan will progress through the various stages of delinquency. The enhanced migration analysis considers uncollectible principal, interest and fees reflected in the loan receivables, segmented by credit and business parameters. We use other analyses to estimate expected losses on non-delinquent accounts, which include past performance, bankruptcy activity such as filings, policy changes and loan volumes and amounts. Holistically, for assessing the portfolio credit loss content, we also evaluate portfolio risk management techniques applied to various accounts, historical behavior of different account vintages, account seasoning, economic conditions, recent trends in delinquencies, account collection management including the impact of modifications made to borrowers experiencing financial difficulties, forecasting uncertainties, expectations about the future and a qualitative assessment of the adequacy of the allowance for credit losses. Key factors that impact the accuracy of our historical loss forecast estimates include the models and methodology utilized, credit strategy and trends, and consideration of material changes in our loan portfolio such as changes in growth and portfolio mix. We regularly review our collection experience (including delinquencies and net charge-offs) in determining our allowance for credit losses. We also consider our historical loss experience to date based on actual defaulted loans and overall portfolio indicators including delinquent and non-accrual loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment and home price indices. Additionally, the estimate of expected credit losses includes expected recoveries of amounts previously charged-off and expected to be charged-off. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current and forecasted conditions, and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for credit losses. It is possible that we will experience credit losses that are different from our current estimates. Charge-offs are deducted from the allowance for credit losses and are recorded in the period when we judge the principal to be uncollectible, and subsequent recoveries are added to the allowance, generally at the time cash is received on a charged-off account. Delinquent receivables are those that are 30 days or more past due based on their contractual payments. Non-accrual loan receivables are those on which we have stopped accruing interest. We continue to accrue interest until the earlier of the time at which collection of an account becomes doubtful, or the account becomes 180 days past due, with the exception of non-credit card accounts, for which we stop accruing interest in the period that the account becomes 90 days past due. The same loan receivable may meet more than one of the definitions above. Accordingly, these categories are not mutually exclusive, and it is possible for a particular loan to meet the definitions of a non-accrual loan and a delinquent loan, or be modified to a borrower experiencing financial difficulty, and be included in each of these categories. The categorization of a particular loan also may not necessarily be indicative of the potential for loss. Loan Modifications to Borrowers Experiencing Financial Difficulty Our loss mitigation strategy is intended to minimize economic loss and, at times, can result in rate reductions, principal forgiveness, extensions or other actions, for borrowers experiencing financial difficulty. We primarily use long-term modification programs for borrowers experiencing financial difficulty as a loss mitigation strategy to improve long-term collectability of the loans. The long-term modification programs include changing the structure of the loan to a fixed payment loan with a maturity no longer than 60 months, reducing the interest rate on the loan, and stopping the assessment of penalty fees. We also make long-term loan modifications for customers who request financial assistance through external sources, such as through consumer credit counseling service agencies. Long-term loan modification programs do not normally include the forgiveness of unpaid principal, interest or fees. We may also provide certain borrowers with a short-term loan modification program (generally up to 3 months) that can include the forgiveness of unpaid principal balance, interest and/or fees. We generally do not convert revolving loans to term loans, outside of loan modification programs for borrowers experiencing financial difficulties. The evaluation of whether a borrower is experiencing financial difficulty includes our consideration of all relevant facts and circumstances. See Note 5. Loan Receivables and Allowance for Credit Losses for additional information on our loan modifications to borrowers experiencing financial difficulty. Data related to redefault experience is also considered in our overall reserve adequacy review. Once the loan has been modified, it only returns to current status (re-aged) after three consecutive monthly program payments are received post the modification date, subject to re-aging limitations in the Federal Financial Institutions Examination Council guidelines on Uniform Retail Credit Classification and Account Management policy issued in June 2000. Charge-Offs Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine are uncollectible, net of recovered amounts. We exclude accrued and unpaid finance charges, fees and third-party fraud losses from charge-offs. Charged-off and recovered accrued and unpaid finance charges and fees are included in interest and fees on loans while fraud losses are included in other expense. Charge-offs are recorded as a reduction to the allowance for credit losses, and subsequent recoveries of previously charged-off amounts are credited to the allowance for credit losses. Costs incurred to recover charged-off loans are recorded as collection expense and are included in other expense in our Consolidated Statements of Earnings. We charge-off unsecured closed-end consumer installment loans and loans secured by collateral when they are 120 days contractually past due, and unsecured open-ended revolving loans when they are 180 days contractually past due. Unsecured consumer loans in bankruptcy are charged-off within 60 days of notification of filing by the bankruptcy court or within contractual charge-off periods, whichever occurs earlier. Credit card loans of deceased account holders are charged-off within 60 days of receipt of notification. Goodwill and Intangible Assets We do not amortize goodwill but test it at least annually for impairment at the reporting unit level pursuant to ASC 350, Intangibles—Goodwill and Other . A reporting unit is defined under GAAP as the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Our single operating segment comprises a single reporting unit, based on the level at which segment management regularly reviews and measures the business operating results. When a portion of a reporting unit constitutes a business that is being disposed of, the amount of goodwill to be included in the carrying amount of the business classified as held for sale is based upon the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Goodwill impairment risk is first assessed by performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If potential goodwill impairment risk exists that indicates that it is more likely than not that the carrying value of our reporting unit exceeds its fair value, a quantitative test is performed. The quantitative test compares the reporting unit’s estimated fair value with its carrying value, including goodwill. If the carrying value of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to the reporting unit. The qualitative assessment for each period presented in the consolidated financial statements was performed without hindsight, assuming only factors and market conditions existing as of those dates, and resulted in no potential goodwill impairment risk for our reporting unit. Consequently, goodwill was not deemed to be impaired for any of the periods presented. Definite-lived intangible assets principally consist of certain costs incurred to develop or acquire capitalized software and customer-related assets including purchased credit card relationships. Capitalized software is amortized on a straight-line basis over its estimated useful life, generally 5 years. Customer-related assets are amortized over their estimated useful lives. Defined-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The evaluation compares the cash inflows expected to be generated from each intangible asset to its carrying value. If cash flows attributable to the intangible asset are less than the carrying value, the asset is considered impaired and written down to its estimated fair value. Other Assets Other assets primarily consist of deferred income taxes, contract costs related to our retail partner agreements and equity investments. Retail partner contract costs are recognized over the life of the contract with the retail partner and are included as a component of marketing and business development expense in our Consolidated Statements of Earnings. Discontinued Operations and Held for Sale An entity is classified as held for sale in the period in which management approves and commits to a plan to sell the entity, the entity is available to be sold in its immediate condition subject to usual and customary terms, the entity is being actively marketed at a reasonable price with other actions required to complete the plan to sale initiated, the sale is generally probable to be completed within one year, and it is unlikely that there will be significant changes to the plan to sell. The disposal of an entity should be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, otherwise the results of the entity to be disposed continue to be presented within continuing operations on the Consolidated Statements of Earnings. Assets and liabilities to be disposed of have been reclassified to held for sale in our Consolidated Statements of Financial Position. See Note 3. Dispositions and Acquisitions for further details. Revenue Recognition Interest and Fees on Loans We use the effective interest method to recognize income on loans. Interest and fees on loans is comprised largely of interest and late fees on credit card and other loans. Interest income is recognized based upon the amount of loans outstanding and their contractual interest rate. Late fees are recognized when billable to the customer. We continue to accrue interest and fees on credit cards until the accounts are charged-off in the period the account becomes 180 days past due. For non-credit card loans, we stop accruing interest and fees when the account becomes 90 days past due. Previously recognized interest income that was accrued but not collected from the customer is reversed. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate, provided the amount does not exceed that which would have been earned at the historical effective interest rate; otherwise, payments received are applied to reduce the principal balance of the loan. We resume accruing interest on non-credit card loans when the customer’s account is less than 90 days past due and collection of such amounts is probable. Interest accruals on modified loans that are not considered to be TDRs may return to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments subject to a re-aging limitation of once a year, or twice in a five-year period. Direct loan origination costs on credit card loans are deferred and amortized on a straight-line basis over a one-year period, or the life of the loan for other loan receivables, and are included in interest and fees on loans in our Consolidated Statements of Earnings. See Note 5. Loan Receivables and Allowance for Credit Losses for further detail. Other loan fees including miscellaneous fees charged to borrowers are recognized net of waivers and charge-offs when the related transaction or service is provided, and are included in other income in our Consolidated Statements of Earnings. Promotional Financing Loans originated with promotional financing may include deferred interest financing (interest accrues during a promotional period and becomes payable if the full purchase amount is not paid off during the promotional period), no interest financing (no interest accrues during a promotional period but begins to accrue thereafter on any outstanding amounts at the end of the promotional period) and reduced interest financing (interest accrues monthly at a promotional interest rate during the promotional period). For deferred interest financing, we bill interest to the borrower, retroactive to the inception of the loan, if the loan is not repaid prior to the specified date. Income is recognized on such loans when it is billable. In almost all cases, our retail partner will pay an upfront fee or reimburse us to compensate us for all or part of the costs associated with providing the promotional financing. Upfront fees are deferred and accreted to income over the promotional period. Reimbursements are estimated and accrued as income over the promotional period. Purchased Loans Loans acquired by purchase are recorded at fair value, which may result in the recognition of a loan premium or loan discount. For acquired loans with evidence of more-than-insignificant deterioration in credit quality since origination, the initial allowance for credit losses at acquisition is added to the purchase price to determine the initial cost basis of the loans and loan premium or loan discount. Loan premiums and loan discounts are recognized into interest income over the estimated remaining life of the loans. The Company develops an allowance for credit losses for all purchased loans, which is recognized upon acquisition, similar to that of an originated financial asset. Subsequent changes to the expected credit losses for these loans follow the allowance for credit losses methodology described above under “—Allowance for Credit Losses.” Retailer Share Arrangements Most of our program agreements with large retail and certain other partners contain retailer share arrangements that provide for payments to our partners if the economic performance of the program exceeds a contractually defined threshold. We also provide other economic benefits to our partners such as royalties on purchase volume or payments for new accounts, in some cases instead of retailer share arrangements (for example, on our co-branded credit cards). Although the share arrangements vary by partner, |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | NOTE 3. ACQUISITIONS AND DISPOSITIONS Ally Lending In January 2024, we announced our agreement to acquire Ally Financial Inc.'s point of sale financing business, Ally Lending. The assets of Ally Lending at December 31, 2023 included approximately $2.2 billion of loan receivables. The transaction is expected to close in the first quarter of 2024, subject to the completion of customary closing conditions. Pets Best In November 2023, we entered into an agreement for the sale of our wholly-owned subsidiary, Pets Best Insurance Services, LLC (“Pets Best”) to Poodle Holdings, Inc. (“Buyer”) for consideration comprising a combination of cash and an equity interest in Independence Pet Holdings, Inc., an affiliate of Buyer. Subject to regulatory approval and other customary closing conditions, the transaction is expected to close in the first quarter of 2024, and is expected to result in the recognition of a gain on sale. The gain amount to be recognized will be determined based upon the carrying amount of net assets of Pets Best and the final valuation of consideration to be received at closing. At December 31, 2023, $256 million in assets and $107 million in liabilities are classified as held for sale on our Consolidated Statements of Financial Position related to the planned disposition. The composition of those assets and liabilities are included in the table below. At December 31 ($ in millions) 2023 Assets Cash $ 19 Goodwill (a) 87 Intangible assets, net 24 Other assets (b) 126 Total assets held for sale $ 256 Liabilities Other liabilities 107 Total liabilities held for sale $ 107 _____________ (a) The allocated goodwill is subject to change based upon the carrying amount of net assets of Pets Best and the final valuation of consideration to be received at closing. (b) Other assets primarily includes $93 million of restricted cash and equivalents. |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | DEBT SECURITIES All of our debt securities are classified as available-for-sale and are held to meet our liquidity objectives or to comply with the Community Reinvestment Act (“CRA”). Our debt securities consist of the following: December 31, 2023 December 31, 2022 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated ($ in millions) cost gains losses fair value cost gains losses fair value U.S. government and federal agency $ 2,264 $ 1 $ (1) $ 2,264 $ 3,917 $ — $ (53) $ 3,864 State and municipal 10 — — 10 10 — — 10 Residential mortgage-backed (a) 392 — (38) 354 467 — (49) 418 Asset-backed (b) 1,167 4 (8) 1,163 599 — (19) 580 Other 8 — — 8 8 — (1) 7 Total (c) $ 3,841 $ 5 $ (47) $ 3,799 $ 5,001 $ — $ (122) $ 4,879 _____________ (a) All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. (b) Our asset-backed securities are collateralized by credit card and auto loans. (c) At December 31, 2023 and 2022, the estimated fair value of debt securities pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances was $360 million and $100 million, respectively. The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities: In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized ($ in millions) fair value losses fair value losses At December 31, 2023 U.S. government and federal agency $ 495 $ — $ 399 $ (1) State and municipal — — 9 — Residential mortgage-backed 1 — 346 (38) Asset-backed 171 — 244 (8) Other — — 8 — Total $ 667 $ — $ 1,006 $ (47) At December 31, 2022 U.S. government and federal agency $ 3,032 $ (30) $ 638 $ (23) State and municipal 5 — 5 — Residential mortgage-backed 316 (31) 101 (18) Asset-backed 230 — 348 (19) Other 7 (1) — — Total $ 3,590 $ (62) $ 1,092 $ (60) We regularly review debt securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. We presently do not intend to sell our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost. Contractual Maturities of Investments in Available-for-Sale Debt Securities Amortized Estimated Weighted At December 31, 2023 ($ in millions) cost fair value Average yield (a) Due Within one year $ 2,745 $ 2,738 4.5 % After one year through five years $ 719 $ 722 5.3 % After five years through ten years $ 179 $ 167 1.8 % After ten years $ 198 $ 172 2.0 % ______________________ (a) Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations. All securities are presented above based upon contractual maturity date, except our asset-backed securities which are allocated based upon expected final payment date. We expect actual maturities to differ from contractual maturities because borrowers have the right to prepay certain obligations. There were no material realized gains or losses recognized for the years ended December 31, 2023, 2022 and 2021. |
Loan Receivables and Allowance
Loan Receivables and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loan Receivables and Allowance for Credit Losses | LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES At December 31 ($ in millions) 2023 2022 Credit cards $ 97,043 $ 87,630 Consumer installment loans 3,977 3,056 Commercial credit products 1,839 1,682 Other 129 102 Total loan receivables, before allowance for credit losses (a)(b)(c) $ 102,988 $ 92,470 _______________________ (a) Total loan receivables include $21.4 billion and $19.8 billion of restricted loans of consolidated securitization entities at December 31, 2023 and 2022, respectively. See Note 6. Variable Interest Entities for further information on these restricted loans. (b) At December 31, 2023 and 2022, loan receivables included deferred costs, net of deferred income, of $213 million and $237 million, respectively (c) At December 31, 2023, $22.4 billion of loan receivables were pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances. Allowance for Credit Losses (a)(b) ($ in millions) Balance at January 1, 2023 Impact of ASU 2022-02 Adoption Post-Adoption Balance at January 1, 2023 Provision charged to operations (c) Gross charge-offs Recoveries Balance at December 31, 2023 Credit cards $ 9,225 $ (294) $ 8,931 $ 5,536 $ (5,263) $ 952 $ 10,156 Consumer installment loans 208 1 209 259 (218) 29 279 Commercial credit products 87 (1) 86 164 (128) 9 131 Other 7 — 7 (1) (1) — 5 Total $ 9,527 $ (294) $ 9,233 $ 5,958 $ (5,610) $ 990 $ 10,571 ($ in millions) Balance at January 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at December 31, 2022 Credit cards $ 8,512 $ 3,105 $ (3,202) $ 810 $ — $ 9,225 Consumer installment loans 115 173 (97) 17 — 208 Commercial credit products 59 91 (70) 7 — 87 Other 2 6 (1) — — 7 Total $ 8,688 $ 3,375 $ (3,370) $ 834 $ — $ 9,527 ($ in millions) Balance at January 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at December 31, 2021 Credit cards $ 10,076 $ 671 $ (3,056) $ 821 $ — $ 8,512 Consumer installment loans 127 25 (55) 17 1 115 Commercial credit products 61 28 (36) 6 — 59 Other 1 2 (1) — — 2 Total $ 10,265 $ 726 $ (3,148) $ 844 $ 1 $ 8,688 _______________________ (a) The allowance for credit losses at December 31, 2023, 2022 and 2021 reflects our estimate of expected credit losses for the life of the loan receivables on our Consolidated Statements of Financial Position at December 31, 2023, 2022 and 2021, which include the consideration of current and expected macroeconomic conditions that existed at those dates. (b) Comparative information is presented in accordance with the applicable accounting standards in effect prior to the adoption of ASU 2022-02. (c) Provision for credit losses in the Consolidated Statements of Earnings for the year ended December 31, 2023 includes $7 million associated with a forward loan portfolio purchase recorded in Accrued expenses and other liabilities in the Consolidated Statements of Financial Position. The reasonable and supportable forecast period used in our estimate of credit losses at December 31, 2023 was 12 months, consistent with the forecast period utilized since the adoption of CECL. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, gradually increasing the weight of historical losses by an equal amount each month during the reversion period, and utilize historical loss information thereafter for the remaining life of the portfolio. The reversion period and methodology remain unchanged since the adoption of CECL. Losses on loan receivables, including those which are modified for borrowers experiencing financial difficulty, are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance at December 31, 2023. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporates a macroeconomic forecast. The current and forecasted economic conditions at the balance sheet date influenced our current estimate of expected credit losses, which reflects our expectations of the macroeconomic environment. We continue to experience a decrease in payment rates and an increase in delinquencies and net charge-offs during the year ended December 31, 2023. We expect net charge-offs to continue to increase. These conditions are reflected in our current estimate of expected credit losses, which remain generally consistent with the prior quarter. Our allowance for credit losses increased to $10.6 billion during the year ended December 31, 2023 primarily due to growth in loan receivables, partially offset by the reserve reduction associated with the adoption of ASU 2022-02. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional information on our significant accounting policies related to our allowance for credit losses. Delinquent and Non-accrual Loans The following table provides information on our delinquent and non-accrual loans: At December 31, 2023 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 2,375 $ 2,290 $ 4,665 $ 2,290 $ — Consumer installment loans 96 23 119 — 23 Commercial credit products 61 40 101 40 — Total delinquent loans $ 2,532 $ 2,353 $ 4,885 $ 2,330 $ 23 Percentage of total loan receivables 2.5 % 2.3 % 4.7 % 2.3 % — % At December 31, 2022 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,710 $ 1,516 $ 3,226 $ 1,516 $ — Consumer installment loans 61 14 75 — 14 Commercial credit products 44 32 76 32 — Total delinquent loans $ 1,815 $ 1,562 $ 3,377 $ 1,548 $ 14 Percentage of total loan receivables 2.0 % 1.7 % 3.7 % 1.7 % — % Consumer Installment Loans by Origination Year By origination year At or for the year ended December 31, 2023 ($ in millions) 2023 2022 2021 2020 2019 Prior Total Amortized cost basis $ 2,097 $ 931 $ 541 $ 312 $ 69 $ 27 $ 3,977 30-89 days delinquent $ 44 $ 25 $ 15 $ 9 $ 2 $ 1 $ 96 90 or more days delinquent $ 11 $ 6 $ 4 $ 2 $ — $ — $ 23 Current period gross charge-offs $ 65 $ 84 $ 42 $ 19 $ 5 $ 3 $ 218 By origination year At December 31, 2022 ($ in millions) 2022 2021 2020 2019 2018 Prior Total Amortized cost basis $ 1,441 $ 868 $ 535 $ 135 $ 58 $ 19 $ 3,056 30-89 days delinquent $ 26 $ 18 $ 12 $ 3 $ 1 $ 1 $ 61 90 or more days delinquent $ 6 $ 5 $ 2 $ 1 $ — $ — $ 14 Delinquency trends are the primary credit quality indicator for our consumer installment loans, which we use to monitor credit quality and risk within the portfolio. Loan Modifications to Borrowers Experiencing Financial Difficulty See Note 2. Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Credit Losses - Loan Modifications to Borrowers Experiencing Financial Difficulty for additional information on our significant accounting policies related to loan modifications to borrowers experiencing financial difficulty. Year ended December 31, 2023 The Company adopted ASU 2022-02 as of January 1, 2023 on a modified retrospective basis through a cumulative adjustment to retained earnings. The new guidance is applicable for all loans modified to borrowers experiencing financial difficulties as of the beginning of 2023. The following table provides information on our loan modifications to borrowers experiencing financial difficulty during the period presented, which do not include loans that are classified as loan receivables held for sale: Year ended December 31, 2023 ($ in millions) Amount % of Loan Receivables Long-term modifications Credit cards $ 1,573 1.6 % Consumer installment loans — — % Commercial credit products 6 0.3 % Short-term modifications Credit cards 628 0.6 % Consumer installment loans — — % Commercial credit products 1 — % Total $ 2,208 2.1 % Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty As part of our loan modifications to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. For long-term modifications made in the year ended December 31, 2023, the financial effect of these modifications reduced the weighted-average interest rates by 97%. For short-term modifications made in the year ended December 31, 2023, unpaid balances of $186 million were forgiven. Performance of Loans Modified to Borrowers Experiencing Financial Difficulty The following table provides information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified subsequent to January 1, 2023 and remain in a modification program at December 31, 2023: Amortized cost basis At December 31, 2023 ($ in millions) Current 30-89 days delinquent 90 or more days delinquent Total past due (a) Long-term modifications Credit cards $ 861 $ 180 $ 141 $ 321 Consumer installment loans — — — — Commercial credit products 2 1 1 2 Short-term modifications Credit cards 53 32 41 73 Consumer installment loans — — — — Commercial credit products — — — — Total delinquent modified loans $ 916 $ 213 $ 183 $ 396 Percentage of total loan receivables 0.9 % 0.2 % 0.2 % 0.4 % ___________________ (a) Once a loan has been modified, it only returns to current status (re-aged) after three consecutive monthly program payments are received post the modification date. Payment Defaults The following table presents the type, number and amount of loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program during the year ended December 31, 2023 and experienced a payment default and charged-off during the year: Year ended December 31, 2023 ($ in millions, accounts in thousands) Accounts defaulted Loans defaulted Credit cards 96 $ 233 Consumer installment loans — — Commercial credit products — 2 Total 96 $ 235 Of the loans modified to borrowers experiencing financial difficulty that enrolled in a short-term modification program in the year ended December 31, 2023, 54% have fully completed all required payments and successfully exited the program during the year ended December 31, 2023. Year ended December 31, 2022 Troubled Debt Restructurings Under our modified retrospective adoption of ASU 2022-02, the following information on loan modifications for periods prior to January 1, 2023 are presented in accordance with the applicable accounting standards in effect at that time. The following table provides information on our TDR loan modifications during the prior year period presented: For the year ended December 31 ($ in millions) 2022 Credit cards $ 993 Consumer installment loans — Commercial credit products 3 Total $ 996 Prior to January 1, 2023, our allowance for credit losses on TDRs was generally measured based on the difference between the recorded loan receivable and the present value of the expected future cash flows, discounted at the original effective interest rate of the loan. Interest income from loans accounted for as TDRs was accounted for in the same manner as other accruing loans. The following table provides information about loans classified as TDRs and specific reserves at December 31, 2022. We do not evaluate credit card loans on an individual basis but instead estimate an allowance for credit losses on a collective basis. At December 31, 2022 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,355 $ (600) $ 755 $ 1,206 Consumer installment loans — — — — Commercial credit products 4 (2) 2 4 Total $ 1,359 $ (602) $ 757 $ 1,210 Financial Effects of TDRs The following table presents the types and financial effects of loans modified and accounted for as TDRs during the prior year periods presented. Years ended December 31, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 36 $ 321 $ 1,231 $ 39 $ 311 $ 1,222 Consumer installment loans — — — — — — Commercial credit products — 1 4 — 1 4 Total $ 36 $ 322 $ 1,235 $ 39 $ 312 $ 1,226 Payment Defaults The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification program within the previous 12 months from the applicable balance sheet date and experienced a payment default and charged-off during the prior year periods presented. Years ended December 31, 2022 2021 ($ in millions, accounts in thousands) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 60 $ 134 41 $ 103 Consumer installment loans — — — — Commercial credit products — 1 — — Total 60 $ 135 41 $ 103 Credit Quality Indicators Our loan receivables portfolio includes both secured and unsecured loans. Secured loan receivables are largely comprised of consumer installment loans secured by equipment. Unsecured loan receivables are largely comprised of our open-ended consumer and commercial revolving credit card loans. As part of our credit risk management activities, on an ongoing basis, we assess overall credit quality by reviewing information related to the performance of a customer’s account with us, including delinquency information, as well as information from credit bureaus relating to the customer’s broader credit performance. We utilize VantageScore credit scores to assist in our assessment of credit quality. VantageScore credit scores are obtained at origination of the account and are refreshed, at a minimum quarterly, but could be as often as weekly, to assist in predicting customer behavior. We categorize these credit scores into the following three credit score categories: (i) 651 or higher, which are considered the strongest credits; (ii) 591 to 650, considered moderate credit risk; and (iii) 590 or less, which are considered weaker credits. There are certain customer accounts for which a VantageScore score is not available where we use alternative sources to assess their credit quality and predict behavior. The following table provides the most recent VantageScore scores available for our customers at December 31, 2023 and 2022, respectively, as a percentage of each class of loan receivable. The table below excludes 0.3% and 0.4% of our total loan receivables balance at both December 31, 2023 and 2022, respectively, which represents those customer accounts for which a VantageScore score is not available. At December 31 2023 2022 651 or 591 to 590 or 651 or 591 to 590 or higher 650 less higher 650 less Credit cards 72 % 19 % 9 % 74 % 19 % 7 % Consumer installment loans 76 % 17 % 7 % 77 % 17 % 6 % Commercial credit products 83 % 10 % 7 % 88 % 6 % 6 % Unfunded Lending Commitments We manage the potential risk in credit commitments by limiting the total amount of credit, both by individual customer and in total, by monitoring the size and maturity of our portfolios and by applying the same credit standards for all of our credit products. Unused credit card lines available to our customers totaled approximately $427 billion and $417 billion at December 31, 2023 and 2022, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Interest Income by Product The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: For the years ended December 31 ($ in millions) 2023 2022 2021 Credit cards (a) $ 19,341 $ 16,471 $ 14,880 Consumer installment loans 401 287 241 Commercial credit products 150 117 103 Other 10 6 4 Total (b) $ 19,902 $ 16,881 $ 15,228 _______________________ (a) Interest income on credit cards that was reversed related to accrued interest and fees receivables written off was $1.8 billion, $1.1 billion and $1.0 billion for the years ended December 31, 2023, 2022 and 2021, respectively. (b) Deferred merchant discounts to be recognized in interest income at December 31, 2023 and December 31, 2022, were $1.9 billion and $1.7 billion, respectively, which are included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Position. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES We use VIEs to securitize loan receivables and arrange asset-backed financing in the ordinary course of business. Investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE and we did not provide non-contractual support for previously transferred loan receivables to any of these VIEs in the years ended December 31, 2023 and 2022. Our VIEs are able to accept new loan receivables and arrange new asset-backed financings, consistent with the requirements and limitations on such activities placed on the VIE by existing investors. Once an account has been designated to a VIE, the contractual arrangements we have require all existing and future loan receivables originated under such account to be transferred to the VIE. The amount of loan receivables held by our VIEs in excess of the minimum amount required under the asset-backed financing arrangements with investors may be removed by us under removal of accounts provisions. All loan receivables held by a VIE are subject to claims of third-party investors. In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important. In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to a VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s design, including: the entity’s capital structure, contractual rights to earnings or losses, subordination of our interests relative to those of other investors, as well as any other contractual arrangements that might exist that could have the potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment. We consolidate VIEs where we have the power to direct the activities that significantly affect the VIEs' economic performance, typically because of our role as either servicer or administrator for the VIEs. The power to direct exists because of our role in the design and conduct of the servicing of the VIEs’ assets as well as directing certain affairs of the VIEs, including determining whether and on what terms debt of the VIEs will be issued. The loan receivables in these entities have risks and characteristics similar to our other financing receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other comparable loan receivables, and the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually, the cash flows from these financing receivables must first be used to pay third-party debt holders, as well as other expenses of the entity. Excess cash flows, if any, are available to us. The creditors of these entities have no claim on our other assets. The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above. At December 31 ($ in millions) 2023 2022 Assets Loan receivables, net (a) $ 19,537 $ 18,015 Other assets (b) 47 61 Total $ 19,584 $ 18,076 Liabilities Borrowings $ 7,267 $ 6,227 Other liabilities 31 23 Total $ 7,298 $ 6,250 _______________________ (a) Includes $1.9 billion and $1.8 billion of related allowance for credit losses resulting in gross restricted loans of $21.4 billion and $19.8 billion at December 31, 2023 and 2022, respectively. (b) Includes $45 million and $56 million of segregated funds held by the VIEs at December 31, 2023 and 2022, respectively, which are classified as restricted cash and equivalents and included as a component of Other assets in our Consolidated Statements of Financial Position. The balances presented above are net of intercompany balances and transactions that are eliminated in our consolidated financial statements. We provide servicing for all of our consolidated VIEs. Collections are required to be placed into segregated accounts owned by each VIE in amounts that meet contractually specified minimum levels. These segregated funds are invested in cash and cash equivalents and are restricted as to their use, principally to pay maturing principal and interest on debt and the related servicing fees. Collections above these minimum levels are remitted to us on a daily basis. Income (principally, interest and fees on loans) earned by our consolidated VIEs was $3.9 billion, $3.7 billion and $4.1 billion for the years ended December 31, 2023, 2022 and 2021, respectively. Related expenses consisted primarily of provision for credit losses of $857 million, $365 million and $(105) million for the years ended December 31, 2023, 2022 and 2021, respectively, and interest expense of $340 million, $196 million and $169 million for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts do not include intercompany transactions, principally fees and interest, which are eliminated in our consolidated financial statements. Non-consolidated VIEs As part of our community reinvestment initiatives, we invest in affordable housing properties and receive affordable housing tax credits for these investments. These investments included in our Consolidated Statements of Financial Position totaled $736 million and $557 million at December 31, 2023 and December 31, 2022, respectively, and represents our total exposure for these entities. Additionally, we have other investments in non-consolidated VIEs which totaled $252 million and $230 million at December 31, 2023 and 2022, respectively. At December 31, 2023, the Company also has investment commitments of $188 million related to these investment s. For the years ended December 31, 2023 and 2022, we recognized amortization of $71 million and $44 million, respectively, and tax credits and other tax benefits of $90 million and $56 million, respectively, associated with investments in affordable housing properties within income tax expense or benefit. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill ($ in millions) 2023 2022 Balance at January 1 $ 1,105 $ 1,105 Allocated to held for sale business (a) (87) — Balance at December 31 $ 1,018 $ 1,105 _____________ (a) The allocated goodwill is subject to change based upon the carrying amount of net assets of Pets Best and the final valuation of consideration to be received at closing. Intangible Assets 2023 2022 At December 31 ($ in millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Capitalized software $ 2,065 $ (1,302) $ 763 $ 1,677 $ (1,020) $ 657 Other $ 204 $ (152) $ 52 $ 245 $ (160) $ 85 Total $ 2,269 $ (1,454) $ 815 $ 1,922 $ (1,180) $ 742 During the year ended December 31, 2023, we recorded additions to intangible assets of $392 million, primarily related to capitalized software expenditures. Amortization expense was $294 million, $252 million and $209 million for the years ended December 31, 2023, 2022 and 2021, respectively and is included within Other expense in our Consolidated Statements of Earnings. At December 31, 2023, contract costs related to our retailer partner agreements of $498 million, net of accumulated amortization, previously classified as Intangible Assets are now presented as a component of Other assets on our Consolidated Statements of Financial Position. Reclassifications of prior period amounts of $545 million, net of accumulated amortization, have been made to conform with the current period presentation discussed above. In addition, intangible assets of $24 million, net of accumulated amortization, are now classified as assets held for sale at December 31, 2023. See Note 3 Acquisitions and Dispositions for additional information. We estimate annual amortization expense for existing intangible assets over the next five calendar years to be as follows: ($ in millions) 2024 2025 2026 2027 2028 Amortization expense $ 283 $ 215 $ 154 $ 99 $ 50 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | DEPOSITS Deposits 2023 2022 At December 31 ($ in millions) Amount Average rate (a) Amount Average rate (a) Interest-bearing deposits $ 80,789 3.9 % $ 71,336 1.5 % Non-interest-bearing deposits 364 — 399 — Total deposits $ 81,153 $ 71,735 ___________________ (a) Based on interest expense for the years ended December 31, 2023 and 2022 and average deposits balances. At December 31, 2023 and 2022, interest-bearing deposits included $10.0 billion and $7.2 billion, respectively, of certificates of deposit that exceeded applicable FDIC insurance limits, which are generally $250,000 per depositor for each account ownership category. These amounts include partially insured certificates of deposit. At December 31, 2023, our interest-bearing time deposits maturing over the next five years and thereafter were as follows: ($ in millions) 2024 2025 2026 2027 2028 Thereafter Deposits $ 33,343 $ 9,483 $ 1,645 $ 2,649 $ 1,430 $ 119 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS 2023 2022 At December 31 ($ in millions) Maturity date Interest Rate Weighted average interest rate Outstanding Amount (a)(b) Outstanding Amount (a)(b) Borrowings of consolidated securitization entities: Fixed securitized borrowings 2025 - 2026 3.37% - 5.74% 4.62 % $ 3,417 $ 2,377 Floating securitized borrowings 2024 - 2026 6.10% - 6.38% 6.22 % 3,850 3,850 Total borrowings of consolidated securitization entities 5.47 % 7,267 6,227 Senior unsecured notes: Synchrony Financial senior unsecured notes: Fixed senior unsecured notes 2024 - 2031 2.87% - 5.15% 4.22 % 6,480 6,473 Synchrony Bank senior unsecured notes: Fixed senior unsecured notes 2025 - 2027 5.40% - 5.63% 5.49 % 1,494 1,491 Total senior unsecured notes 4.45 % 7,974 7,964 Subordinated unsecured notes: Synchrony Financial subordinated unsecured notes: Fixed subordinated unsecured notes 2033 7.25% 7.25 % 741 — Total senior and subordinated unsecured notes 4.69 % 8,715 7,964 Total borrowings $ 15,982 $ 14,191 ___________________ (a) Includes unamortized debt premiums, discounts and issuance costs. (b) The Company may redeem certain borrowings prior to their original contractual maturity dates in accordance with the optional redemption provision specified in the respective instruments. Debt Maturities The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior and subordinated unsecured notes over the next five years and thereafter: ($ in millions) 2024 2025 2026 2027 2028 Thereafter Borrowings $ 4,225 $ 5,300 $ 2,750 $ 1,600 $ — $ 2,150 Third-Party Debt 2023 Issuances ($ in millions): Issuance Date Principal Amount Maturity Interest Rate Fixed rate subordinated unsecured notes: Synchrony Financial February 2023 $ 750 February 2033 7.250% Additional Sources of Liquidity We have undrawn committed capacity under certain credit facilities, primarily related to our securitization programs and also have access to the Federal Reserve discount window. At December 31, 2023 and 2022, we had an aggregate of $2.5 billion of undrawn committed capacity under our securitization financings, subject to customary borrowing conditions, from private lenders under our securitization programs, and an aggregate of $0.5 billion of undrawn committed capacity under our unsecured revolving credit facility with private lenders. At December 31, 2023 and 2022, we had $10.4 billion and $0.1 billion, respectively, in undrawn Federal Reserve discount window borrowing capacity based on the amount and type of assets pledged. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies . The following tables present our assets and liabilities measured at fair value on a recurring basis. Recurring Fair Value Measurements At December 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total (a) Assets Debt securities U.S. government and federal agency $ — $ 2,264 $ — $ 2,264 State and municipal — — 10 10 Residential mortgage-backed — 354 — 354 Asset-backed — 1,162 — 1,162 Other — — 8 8 Other (b) 14 — 10 24 Total $ 14 $ 3,780 $ 28 $ 3,822 Liabilities Other (c) — — 4 4 Total $ — $ — $ 4 $ 4 At December 31, 2022 ($ in millions) Assets Debt securities U.S. government and federal agency $ — $ 3,864 $ — $ 3,864 State and municipal — — 10 10 Residential mortgage-backed — 418 — 418 Asset-backed — 580 — 580 Other — — 7 7 Other (b) 14 — 13 27 Total $ 14 $ 4,862 $ 30 $ 4,906 Liabilities Other (c) — — 7 7 Total $ — $ — $ 7 $ 7 _______________________ (a) For the years ended December 31, 2023 and 2022, there were no fair value measurements transferred between levels. (b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Consolidated Statements of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Consolidated Statements of Financial Position. (c) Other is primarily comprised of certain financial liabilities for which we have elected the fair value option, which are included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Position. Level 3 Fair Value Measurements Our Level 3 recurring fair value measurements primarily relate to state and municipal and corporate debt instruments, which are valued using non-binding broker quotes or other third-party sources, and financial assets and liabilities for which we have elected the fair value option. For a description of our process to evaluate third-party pricing servicers, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies . Our state and municipal debt securities are classified as available-for-sale with changes in fair value included in Accumulated other comprehensive income. The changes in our Level 3 assets and liabilities that are measured on a recurring basis for the years ended December 31, 2023 and 2022 were not material. Financial Assets and Financial Liabilities Carried at Other Than Fair Value Carrying Corresponding fair value amount At December 31, 2023 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 14,259 $ 14,259 $ 14,259 $ — $ — Other assets (a)(b) $ 50 $ 50 $ 50 $ — $ — Assets held for sale (c) $ 112 $ 112 $ 112 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (d) $ 92,407 $ 104,761 $ — $ — $ 104,761 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 81,153 $ 80,935 $ — $ 80,935 $ — Borrowings of consolidated securitization entities $ 7,267 $ 7,250 $ — $ 3,411 $ 3,839 Senior and subordinated unsecured notes $ 8,715 $ 8,423 $ — $ 8,423 $ — Carrying Corresponding fair value amount At December 31, 2022 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 10,294 $ 10,294 $ 10,294 $ — $ — Other assets (a)(c) $ 136 $ 136 $ 136 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (d) $ 82,930 $ 94,339 $ — $ — $ 94,339 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 71,735 $ 70,685 $ — $ 70,685 $ — Borrowings of consolidated securitization entities $ 6,227 $ 6,127 $ — $ 2,327 $ 3,800 Senior and subordinated unsecured notes $ 7,964 $ 7,530 $ — $ 7,530 $ — _______________________ (a) For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments. (b) This balance relates to restricted cash and equivalents, which is included in other assets. (c) Includes $19 million of cash and equivalents and $93 million of restricted cash and equivalents. (d) Excludes financial assets for which we have elected the fair value option. Under certain retail partner program agreements, the expected sales proceeds in the event of a sale of their credit card portfolio may be limited to the amounts owed by our customers, which may be less than the fair value indicated above. Equity Securities Without Readily Determinable Fair Values At or for the year ended December 31 ($ in millions) 2023 2022 Carrying Value $ 270 $ 245 Upward adjustments (a) 17 7 Downward adjustments (a) (6) (3) _______________________ (a) |
Regulatory and Capital Adequacy
Regulatory and Capital Adequacy | 12 Months Ended |
Dec. 31, 2023 | |
Banking Regulation, Risk-Based Information [Abstract] | |
Regulatory and Capital Adequacy | REGULATORY AND CAPITAL ADEQUACY As a savings and loan holding company and a financial holding company, we are subject to regulation, supervision and examination by the Federal Reserve Board and subject to the capital requirements as prescribed by Basel III capital rules and the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Bank is a federally chartered savings association. As such, the Bank is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency of the U.S. Treasury (the “OCC”), which is its primary regulator, and by the Consumer Financial Protection Bureau (“CFPB”). In addition, the Bank, as an insured depository institution, is supervised by the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a material adverse effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require us and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). For Synchrony Financial to be a well-capitalized savings and loan holding company, the Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure. The Company elected to adopt the option provided by the interim final rule issued by joint federal bank regulatory agencies, which largely delayed the effects of CECL on its regulatory capital. Beginning in the first quarter of 2022, the effects are being phased-in over a three-year period through 2024 and will be fully phased-in beginning in the first quarter of 2025. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period included both the initial impact of our adoption of CECL at January 1, 2020 and 25% of subsequent changes in our allowance for credit losses during the two-year period ended December 31, 2021, collectively the “CECL regulatory capital transition adjustment”. At December 31, 2023 only 50% of the CECL regulatory capital transition adjustment is deferred in our regulatory capital amounts and ratios, as compared to 75% at December 31, 2022. At December 31, 2023 and 2022, Synchrony Financial met all applicable requirements to be deemed well-capitalized pursuant to Federal Reserve Board regulations. At December 31, 2023 and 2022, the Bank also met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and for purposes of the Federal Deposit Insurance Act. There are no conditions or events subsequent to December 31, 2023 that management believes have changed the Company’s or the Bank’s capital category. The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows: Synchrony Financial At December 31, 2023 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 15,464 14.9 % $ 8,277 8.0 % Tier 1 risk-based capital $ 13,334 12.9 % $ 6,208 6.0 % Tier 1 leverage $ 13,334 11.7 % $ 4,563 4.0 % Common equity Tier 1 capital $ 12,600 12.2 % $ 4,656 4.5 % At December 31, 2022 ($ in millions) Actual (c) Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 14,253 15.5 % $ 7,369 8.0 % Tier 1 risk-based capital $ 13,026 14.1 % $ 5,527 6.0 % Tier 1 leverage $ 13,026 12.7 % $ 4,096 4.0 % Common equity Tier 1 capital $ 12,292 13.3 % $ 4,145 4.5 % Synchrony Bank At December 31, 2023 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 14,943 15.3 % $ 7,822 8.0 % $ 9,778 10.0 % Tier 1 risk-based capital $ 12,880 13.2 % $ 5,867 6.0 % $ 7,822 8.0 % Tier 1 leverage $ 12,880 12.0 % $ 4,302 4.0 % $ 5,377 5.0 % Common equity Tier 1 capital $ 12,880 13.2 % $ 4,400 4.5 % $ 6,356 6.5 % At December 31, 2022 ($ in millions) Actual (c) Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 13,860 16.1 % $ 6,881 8.0 % $ 8,601 10.0 % Tier 1 risk-based capital $ 12,714 14.8 % $ 5,161 6.0 % $ 6,881 8.0 % Tier 1 leverage $ 12,714 13.3 % $ 3,812 4.0 % $ 4,765 5.0 % Common equity Tier 1 capital $ 12,714 14.8 % $ 3,870 4.5 % $ 5,591 6.5 % _______________________ (a) Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at December 31, 2023 in the above tables reflect the applicable CECL regulatory capital transition adjustment. (b) At December 31, 2023 and 2022, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (c) Prior period amounts have been recast to reflect the change in presentation of contract costs related to our retailer partner agreements on our Consolidated Statements of Financial Condition. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our consolidated financial statements for additional information. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following summarizes information related to the Synchrony benefit plans and our remaining obligations to General Electric Company and its subsidiaries (“GE”) related to certain of their plans. Savings Plan Our U.S. employees are eligible to participate in a qualified defined contribution savings plan that allows them to contribute a portion of their pay to the plan on a pre-tax basis. We make employer contributions to the plan equal to 3% of eligible compensation and make matching contributions of up to 4% of eligible compensation. We also provide certain additional contributions to the plan for employees who were participants in GE's pension plan at the time of Synchrony's separation from GE in November 2015 (the “Separation”). The expenses incurred associated with this plan were $88 million, $80 million and $69 million for the years ended December 31, 2023, 2022 and 2021, respectively. Health and Welfare Benefits We provide health and welfare benefits to our employees, including health, dental, prescription drug and vision for which we are self-insured. The expenses incurred associated with these benefits were $134 million, $114 million and $111 million for the years ended December 31, 2023, 2022 and 2021, respectively. GE Benefit Plans and Reimbursement Obligations Prior to Separation, our employees participated in various GE retirement and retiree health and life insurance benefit plans. Certain of these retirement benefits vested as a result of Separation. Under the terms of the Employee Matters Agreement between us and GE, GE will continue to pay for these benefits and we are obligated to reimburse them. The principal retirement benefits subject to this arrangement are fixed, life-time annuity payments. The estimated liability for our reimbursement obligations to GE for retiree benefits was $171 million and $163 million at December 31, 2023 and 2022, respectively, and is included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Position. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all dilutive securities, which are calculated using the treasury stock method. The following table presents the calculation of basic and diluted earnings per common share: Years ended December 31, (in millions, except per share data) 2023 2022 2021 Net earnings $ 2,238 $ 3,016 $ 4,221 Preferred stock dividends (42) (42) (42) Net earnings available to common stockholders $ 2,196 $ 2,974 $ 4,179 Weighted average common shares outstanding, basic 421.2 480.4 564.6 Effect of dilutive securities 2.3 3.0 4.7 Weighted average common shares outstanding, dilutive 423.5 483.4 569.3 Earnings per basic common share $ 5.21 $ 6.19 $ 7.40 Earnings per diluted common share $ 5.19 $ 6.15 $ 7.34 We have issued certain stock-based awards under the Synchrony Financial 2014 Long-Term Incentive Plan. A total of 4 million, 3 million and 1 million shares for the years ended December 31, 2023, 2022 and 2021, respectively, related to these awards, were considered anti-dilutive and therefore were excluded from the computation of diluted earnings per common share. |
Equity and Other Stock Related
Equity and Other Stock Related Information | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity and Other Stock Related Information | EQUITY AND OTHER STOCK RELATED INFORMATION Preferred Stock The following table summarizes the Company's preferred stock issued and outstanding at December 31, 2023 and 2022. Series Issuance Date Redeemable by Issuer Beginning Per Annum Dividend Rate Liquidation Preference per Share Total Shares Outstanding December 31, 2023 December 31, 2022 ($ in millions, except per share data) Series A (a) November 14, 2019 November 15, 2024 5.625% $1,000 750,000 $ 734 $ 734 $ 734 $ 734 _______________________ (a) Issued as depositary shares, each representing a 1/40th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate, in each case when, as and if declared by the Board of Directors. Dividends and Share Repurchases During the years ended December 31, 2023, 2022 and 2021, we declared and paid common stock dividends of $0.96, $0.90 and $0.88 per share of common stock, or $406 million, $434 million and $500 million, respectively. We also declared and paid preferred stock dividends of $56.24 per share, or $42 million, for each of the years ended December 31, 2023, 2022 and 2021, respectively. During the year ended December 31, 2023, the Company repurchased an aggregate of 33.6 million shares of our common stock for $1.1 billion, which does not reflect costs and taxes associated with the purchase of shares. The cost of share repurchases, including direct and incremental costs associated with repurchasing, is recorded as a reduction of shareholder’s equity. In April 2023, we announced that the Board of Directors approved an incremental share repurchase program of up to $1.0 billion through June 2024 (the "April 2023 Share Repurchase Program") and at December 31, 2023 we had $600 million remaining in share repurchase program. In all instances, our share repurchase programs are subject to market conditions and other factors, including legal and regulatory restrictions and required approvals. Synchrony Financial Incentive Programs We have established the Synchrony Financial 2014 Long-Term Incentive Plan, which we refer to as the “Incentive Plan.” The Incentive Plan permits us to issue stock-based, stock-denominated and other awards to officers, employees, consultants and non-employee directors providing services to the Company and our participating affiliates. Available awards under the Incentive Plan include stock options and stock appreciation rights, restricted stock and restricted stock units (“RSUs”), performance share units (“PSUs”) and other awards valued in whole or in part by reference to, or otherwise based on, our common stock (other stock-based awards), and dividend equivalents. Each RSU is convertible into one share of Synchrony Financial common stock. A total of 35.6 million shares of our common stock (including authorized and unissued shares) are available for granting awards under the Incentive Plan. Our grants generally vest over a three-year term on either an annual pro rata proportional basis, starting with the first anniversary of the award date, or at the end of the term of the award on a cliff basis, provided that the employee has remained continuously employed by the Company through such vesting date. For PSUs, the number of shares of common stock that will ultimately be awarded is contingent upon meeting certain pre-defined financial goals over a designated three-year performance period, and can range from 0% to 150% of the number of PSUs awarded. In addition, the final number of shares of common stock to be awarded is also subject to a Total Shareholder Return (TSR) modifier of +/-20% based on our TSR performance relative to peers. Compensation expense related to our equity awards is recorded as a component of Employee costs in our Consolidated Statements of Earnings, with a corresponding adjustment to equity, net of tax, included within our Consolidated Statements of Equity. At December 31, 2023, there were 4.4 million stock options issued and outstanding and 5.9 million unvested other stock-based awards, comprising 3.5 million RSUs and 2.4 million PSUs. The total unrecognized compensation cost related to these awards at December 31, 2023 was $101 million, which is expected to be amortized over a weighted average period of 1.9 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings before Provision for Income Taxes For the years ended December 31 ($ in millions) 2023 2022 2021 U.S. $ 2,873 $ 3,947 $ 5,483 Non-U.S. 31 15 20 Earnings before provision for income taxes $ 2,904 $ 3,962 $ 5,503 Provision for Income Taxes For the years ended December 31 ($ in millions) 2023 2022 2021 Current provision for income taxes U.S. Federal $ 943 $ 1,145 $ 895 U.S. state and local 171 217 163 Non-U.S. 10 5 5 Total current provision for income taxes 1,124 1,367 1,063 Deferred provision (benefit) for income taxes U.S. Federal (384) (352) 180 U.S. state and local (73) (71) 40 Non-U.S. (1) 2 (1) Deferred provision (benefit) for income taxes (458) (421) 219 Total provision for income taxes $ 666 $ 946 $ 1,282 Reconciliation of Our Effective Tax Rate to the U.S. Federal Statutory Income Tax Rate For the years ended December 31 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state and local income taxes, net of federal benefit 3.5 3.6 3.4 All other, net (1.6) (0.7) (1.1) Effective tax rate 22.9 % 23.9 % 23.3 % Significant Components of Our Net Deferred Income Taxes At December 31 ($ in millions) 2023 2022 Assets Allowance for credit losses $ 2,626 $ 2,366 Compensation and employee benefits 149 128 Other assets 166 193 Total deferred income tax assets before valuation allowance 2,941 2,687 Valuation allowance (18) (13) Total deferred income tax assets $ 2,923 $ 2,674 Liabilities Original issue discount $ (365) $ (504) Goodwill and identifiable intangibles (a) (198) (193) Other liabilities (a) (165) (149) Total deferred income tax liabilities (728) (846) Net deferred income tax assets $ 2,195 $ 1,828 _______________________ (a) Prior period amounts have been recast to reflect the change in presentation of contract costs related to our retailer partner agreements on our Consolidated Statements of Financial Condition. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our consolidated financial statements for additional information. Unrecognized Tax Benefits Reconciliation of Unrecognized Tax Benefits ($ in millions) 2023 2022 Balance at January 1 $ 267 $ 274 Additions: Tax positions of the current year 40 97 Tax positions of prior years 2 1 Reductions: Prior year tax positions (47) (73) Settlements with tax authorities (1) — Expiration of the statute of limitation (31) (32) Balance at December 31 $ 230 $ 267 Portion of balance that, if recognized, would impact the effective income tax rate $ 182 $ 177 The amount of unrecognized tax benefits that is reasonably possible to be resolved in the next twelve months is expected to be $39 million, of which, $31 million, if recognized, would reduce the company’s tax expense and effective tax rate. Additionally, there are unrecognized tax benefits of $9 million and $16 million for the years ended December 31, 2023 and 2022, respectively, that are included in the tabular reconciliation above but recorded in the Consolidated Statements of Financial Position as a reduction of the related deferred tax asset. The Company continued to participate voluntarily in the IRS Compliance Assurance Process (“CAP”) program for the 2023 tax year, and thus the tax year is under IRS review. We expect that the IRS review of our 2023 return will be substantially completed prior to its filing in 2024. During the current year, the IRS completed its examination of our 2022 tax year, which was our only other year subject to current IRS audit. Additionally, we are under examination in various states going back to 2014. We believe that there are no issues or claims that are likely to significantly impact our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties that could result from such examinations. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Information | PARENT COMPANY FINANCIAL INFORMATION The following tables present parent company financial statements for Synchrony Financial. At December 31, 2023, restricted net assets of our subsidiaries were $12.4 billion. Condensed Statements of Earnings For the years ended December 31 ($ in millions) 2023 2022 2021 Interest income: Interest income from subsidiaries $ 355 $ 134 $ 67 Interest on cash and debt securities 34 8 1 Total interest income 389 142 68 Interest expense: Interest on senior unsecured notes 335 279 264 Total interest expense 335 279 264 Net interest income (expense) 54 (137) (196) Dividends from bank subsidiaries 1,450 3,150 2,600 Dividends from nonbank subsidiaries 102 290 147 Other income 135 122 327 Other expense 202 177 292 Earnings before benefit from income taxes 1,539 3,248 2,586 Benefit from income taxes (16) (46) (26) Equity in undistributed net earnings (loss) of subsidiaries 683 (278) 1,609 Net earnings $ 2,238 $ 3,016 $ 4,221 Comprehensive income $ 2,295 $ 2,960 $ 4,203 Condensed Statements of Financial Position At December 31 ($ in millions) 2023 2022 Assets Cash and equivalents $ 3,214 $ 3,287 Debt securities 49 60 Investments in and amounts due from subsidiaries (a) 18,285 16,338 Goodwill 25 59 Other assets 337 326 Total assets $ 21,910 $ 20,070 Liabilities and Equity Amounts due to subsidiaries $ 316 $ 287 Senior unsecured notes 7,221 6,473 Accrued expenses and other liabilities 470 437 Total liabilities 8,007 7,197 Equity: Total equity 13,903 12,873 Total liabilities and equity $ 21,910 $ 20,070 _____________ (a) Includes investments in and amounts due from bank subsidiaries of $14.0 billion and $12.4 billion at December 31, 2023 and 2022, respectively. Condensed Statements of Cash Flows For the years ended December 31 ($ in millions) 2023 2022 2021 Cash flows - operating activities Net earnings $ 2,238 $ 3,016 $ 4,221 Adjustments to reconcile net earnings to cash provided from operating activities Deferred income taxes 9 (1) 34 (Increase) decrease in other assets 19 (28) (117) Increase (decrease) in accrued expenses and other liabilities 21 (4) 26 Equity in undistributed net (earnings) loss of subsidiaries (683) 278 (1,609) All other operating activities 101 28 106 Cash provided from (used for) operating activities 1,705 3,289 2,661 Cash flows - investing activities Net (increase) decrease in investments in and amounts due from subsidiaries (898) 265 645 Maturity and sales of debt securities 14 21 44 Purchases of debt securities — — (5) All other investing activities (45) (6) (132) Cash provided from (used for) investing activities (929) 280 552 Cash flows - financing activities Senior unsecured notes Proceeds from issuance of senior unsecured notes 740 745 744 Maturities and repayment of senior unsecured notes — (750) (750) Dividends paid on preferred stock (42) (42) (42) Purchases of treasury stock (1,112) (3,320) (2,876) Dividends paid on common stock (406) (434) (500) Increase (decrease) in amounts due to subsidiaries (7) 14 4 All other financing activities (22) (41) 32 Cash provided from (used for) financing activities (849) (3,828) (3,388) Increase (decrease) in cash and equivalents (73) (259) (175) Cash and equivalents at beginning of year 3,287 3,546 3,721 Cash and equivalents at end of year $ 3,214 $ 3,287 $ 3,546 |
Legal Proceedings and Regulator
Legal Proceedings and Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Regulatory Matters | LEGAL PROCEEDINGS AND REGULATORY MATTERS In the normal course of business, from time to time, we have been named as a defendant in various legal proceedings, including arbitrations, class actions and other litigation, arising in connection with our business activities. Certain of the legal actions include claims for substantial compensatory and/or punitive damages, or claims for indeterminate amounts of damages. We are also involved, from time to time, in reviews, investigations and proceedings (both formal and informal) by governmental agencies regarding our business (collectively, “regulatory matters”), which could subject us to significant fines, penalties, obligations to change our business practices or other requirements resulting in increased expenses, diminished income and damage to our reputation. We contest liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability for legal and regulatory matters when those matters present loss contingencies which are both probable and reasonably estimable. Legal proceedings and regulatory matters are subject to many uncertain factors that generally cannot be predicted with assurance, and we may be exposed to losses in excess of any amounts accrued. For some matters, we are able to determine that an estimated loss, while not probable, is reasonably possible. For other matters, including those that have not yet progressed through discovery and/or where important factual information and legal issues are unresolved, we are unable to make such an estimate. We currently estimate that the reasonably possible losses for legal proceedings and regulatory matters, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. This estimate of possible loss does not represent our maximum loss exposure. The legal proceedings and regulatory matters underlying the estimate will change from time to time and actual results may vary significantly from current estimates. Our estimate of reasonably possible losses involves significant judgment, given the varying stages of the proceedings, the existence of numerous yet to be resolved issues, the breadth of the claims (often spanning multiple years), unspecified damages and/or the novelty of the legal issues presented. Based on our current knowledge, we do not believe that we are a party to any pending legal proceeding or regulatory matters that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, the ultimate outcome of a particular matter could be material to our operating results for a particular period depending on, among other factors, the size of the loss or liability imposed and the level of our earnings for that period, and could adversely affect our business and reputation. Below is a description of certain of our regulatory matters and legal proceedings. On January 28, 2019, a purported shareholder derivative action, Gilbert v. Keane, et al. , was filed in the U.S. District Court for the District of Connecticut against the Company as a nominal defendant, and certain of the Company’s officers and directors. The lawsuit alleges breach of fiduciary duty claims based on the allegations raised by the plaintiff in the Stichting Depositary APG class action, unjust enrichment, waste of corporate assets, and that the defendants made materially misleading statements and/or omitted material information in violation of the Exchange Act. The complaint seeks a declaration that the defendants breached and/or aided and abetted the breach of their fiduciary duties to the Company, unspecified monetary damages with interest, restitution, a direction that the defendants take all necessary actions to reform and improve corporate governance and internal procedures, and attorneys’ and experts’ fees. On March 11, 2019, a second purported shareholder derivative action, Aldridge v. Keane, et al. , was filed in the U.S. District Court for the District of Connecticut. The allegations in the Aldridge complaint are substantially similar to those in the Gilbert complaint. On March 26, 2020, the District Court recaptioned the Gilbert and Aldridge cases as In re Synchrony Financial Derivative Litigation. On August 11, 2023, the parties submitted a joint status report to the District Court indicating that the parties had reached a memorandum of understanding to settle the litigation, which is not expected to have a material financial impact on the Company. On December 21, 2023, the District Court entered an order preliminarily approving the settlement. Copies of the Stipulation and Agreement of Settlement and Notice of Pendency and Proposed Settlement are available on the Company's investor relations website at https://investors.synchrony.com. The information contained on the Company's websites, including the aforementioned documents, is not deemed to be part of this Annual Report on Form 10-K or incorporated by reference into any of our other filings with the SEC. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings | $ 2,238 | $ 3,016 | $ 4,221 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Name Title Action Taken (Adoption or Termination Date) Duration (1) Aggregate Number of Securities to be Sold (3) Alberto Casellas Executive Vice President & CEO, Health & Wellness Adoption (11/29/2023) 11/29/2023 - 12/31/2024 57,376 Brian Doubles Director; President & CEO Termination (11/29/2023) 01/25/2023 - 03/28/2024 (2) 196,306 Brian Doubles Director; President & CEO Adoption (11/29/2023) 11/29/2023 - 12/31/2024 134,696 Curtis Howse Executive Vice President & CEO, Home & Auto Adoption (11/29/2023) 11/29/2023 - 12/31/2024 59,675 Carol Juel Executive Vice President & Chief Technology and Operating Officer Adoption (11/29/2023) 11/29/2023 - 12/31/2024 86,843 (4) Jonathan Mothner Executive Vice President, Chief Risk and Legal Officer Adoption (11/29/2023) 11/29/2023 - 12/31/2024 40,000 Maran Nalluswami Executive Vice President & CEO, Diversified & Value and Lifestyle Adoption (11/30/2023) 11/30/2023 - 12/31/2024 21,386 Bart Schaller Executive Vice President & CEO, Digital Adoption (11/29/2023) 11/29/2023 - 12/31/2024 71,725 (4) Brian Wenzel Executive Vice President & Chief Financial Officer Adoption (11/29/2023) 11/29/2023 - 12/31/2024 11,281 ______________________ (1) Pursuant to the terms of each plan and subject to compliance with Rule 10b5-1, each plan may terminate at an earlier date in certain circumstances, including if all trades are executed or all orders related to the trades under the relevant plan expire. (2) Mr. Doubles terminated this plan on November 29, 2023 prior to adopting a new plan on the same date. A total of 36,610 shares were sold under this plan prior to its termination. (3) Rounded up to the nearest whole share, as applicable. (4) The aggregate number of securities to be sold under the plans for Ms. Juel and Mr. Schaller excludes 10,729 and 15,714 shares, respectively, as such shares were sold after the adoption of the plans included in this disclosure pursuant to existing effective trading plans. These prior plans for Ms. Juel and Mr. Schaller expired on December 29, 2023 and January 2, 2024, respectively, before the trades under the plans included in this disclosure were scheduled to commence. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Alberto Casellas [Member] | ||
Trading Arrangements, by Individual | ||
Name | Alberto Casellas | |
Title | Executive Vice President & CEO, Health & Wellness | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 57,376 | 57,376 |
Curtis Howse [Member] | ||
Trading Arrangements, by Individual | ||
Name | Curtis Howse | |
Title | Executive Vice President & CEO, Home & Auto | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 59,675 | 59,675 |
Carol Juel [Member] | ||
Trading Arrangements, by Individual | ||
Name | Carol Juel | |
Title | Executive Vice President & Chief Technology and Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 86,843 | 86,843 |
Jonathan Mothner [Member] | ||
Trading Arrangements, by Individual | ||
Name | Jonathan Mothner | |
Title | Executive Vice President, Chief Risk and Legal Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 40,000 | 40,000 |
Maran Nalluswami [Member] | ||
Trading Arrangements, by Individual | ||
Name | Maran Nalluswami | |
Title | Executive Vice President & CEO, Diversified & Value and Lifestyle | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/30/2023 | |
Arrangement Duration | 397 days | |
Aggregate Available | 21,386 | 21,386 |
Bart Schaller [Member] | ||
Trading Arrangements, by Individual | ||
Name | Bart Schaller | |
Title | Executive Vice President & CEO, Digital | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 71,725 | 71,725 |
Brian Wenzel [Member] | ||
Trading Arrangements, by Individual | ||
Name | Brian Wenzel | |
Title | Executive Vice President & Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 11,281 | 11,281 |
Brian Doubles, January 2023 Plan [Member] | Brian Doubles [Member] | ||
Trading Arrangements, by Individual | ||
Name | Brian Doubles | |
Title | Director; President & CEO | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 11/29/2023 | |
Aggregate Available | 196,306 | 196,306 |
Brian Doubles, November 2023 Plan [Member] | Brian Doubles [Member] | ||
Trading Arrangements, by Individual | ||
Name | Brian Doubles | |
Title | Director; President & CEO | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/29/2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 134,696 | 134,696 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions (for example, unemployment, housing, interest rates and market liquidity) which affect reported amounts and related disclosures in our consolidated financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in incremental losses on loan receivables, future impairments of debt securities, goodwill and intangible assets, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increases in our tax liabilities. We primarily conduct our business within the United States and substantially all of our revenues are from U.S. customers. The operating activities conducted by our non-U.S. affiliates use the local currency as their functional currency. The effects of translating the financial statements of these non-U.S. affiliates to U.S. dollars are included in equity. Asset and liability accounts are translated at period-end exchange rates, while revenues and expenses are translated at average rates for the respective periods. |
Consolidated Basis of Presentation | Consolidated Basis of Presentation The Company’s financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries – i.e., entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (“power”) combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses (“significant economics”), we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. We consolidate certain securitization entities under the VIE model because we have both power and significant economics. See Note 6. Variable Interest Entities. Investments in which we do not hold a controlling financial interest but have significant influence over the entity’s financial and operating decisions are accounted for under the equity method. |
Change in Presentation | Changes in Presentation At December 31, 2023, contract costs related to our retailer partner agreements of $498 million, net of accumulated amortization, previously classified as Intangible assets are now presented as a component of Other assets on our Consolidated Statements of Financial Position. Reclassifications of prior period amounts of $545 million, net of accumulated amortization, have been made to conform with the current period presentation discussed above. Protection product revenue in our Consolidated Statements of Income was previously captioned “ Debt cancellation fees ” and represents fees earned from our debt cancellation product offered to our credit card customers. |
New Accounting Pronouncements | New Accounting Standards Newly Adopted Accounting Standards In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. The Company adopted this guidance as of January 1, 2023, on a modified retrospective basis, which resulted in the recognition of the effects of adoption through a cumulative-effect adjustment to retained earnings. As a result of adoption, we incurred a reduction of $294 million to the Company's allowance for credit losses, and a corresponding increase, net of tax effect, to retained earnings of $222 million. Subsequent updates to our estimate of expected credit losses have been recorded through the provision for credit losses in our Consolidated Statements of Earnings. Recently Issued But Not Yet Adopted Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements and requires enhanced disclosures about significant segment expenses. The Company will adopt this guidance on a retrospective basis on its effective date, which for us is beginning within our December 31, 2024 Form 10-K. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation, as well as additional qualitative information about the reconciliation, and additional disaggregated information about income taxes paid. The Company will adopt this guidance on its effective date, which for us is beginning within our December 31, 2025 Form 10-K, and is currently determining the method of adoption. |
Segment Reporting | Segment Reporting We conduct our operations through a single business segment. Substantially all of our interest and fees on loans and long-lived assets relate to our operations within the United States. Pursuant to FASB Accounting Standards Codification (“ASC”) 280, Segment Reporting , operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in determining how to allocate resources and in assessing performance. The chief operating decision maker uses a variety of measures to assess the performance of the business as a whole, depending on the nature of the activity. Revenue activities are primarily managed through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). Those platforms are organized by the types of partners we work with to reach our customers, with success principally measured based on interest and fees on loans, loan receivables, active accounts and other sales metrics. Detailed profitability information of the nature that could be used to allocate resources and assess the performance and operations for each sales platform individually, however, is not used by our chief operating decision maker. Expense activities, including funding costs, credit losses and operating expenses, are not measured for each platform but instead are managed for the Company as a whole. |
Cash and Equivalents | Cash and Equivalents Debt securities, money market instruments and bank deposits with original maturities of three months or less are included in cash and equivalents unless designated as available-for-sale and classified as debt securities. Cash and equivalents at December 31, 2023 primarily included cash and due from banks of $1.4 billion and interest-bearing deposits in other banks of $12.8 billion. Cash and equivalents at December 31, 2022 primarily included cash and due from banks of $1.5 billion and interest-bearing deposits in other banks of $8.8 billion. |
Restricted Cash and Equivalents | Restricted Cash and Equivalents |
Investment Securities | Investment Securities We report investments in debt securities and equity securities with a readily determinable fair value at fair value. See Note 10. Fair Value Measurements for further information on fair value. Changes in fair value on debt securities, which are classified as available-for-sale, are included in equity, net of applicable taxes. Changes in fair value on equity securities are included in earnings. We regularly review investment securities for impairment using both quantitative and qualitative criteria. For debt securities, if we do not intend to sell the security, or it is not more likely than not, that we will be required to sell the security before recovery of our amortized cost, we evaluate other qualitative criteria to determine whether we do not expect to recover the amortized cost basis of the security, such as the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. We also evaluate quantitative criteria including determining whether there has been an adverse change in expected future cash flows. If we do not expect to recover the entire amortized cost basis of the security, we consider the debt security to be impaired. If the security is impaired, we determine whether the impairment is the result of a credit loss or other factors. If a credit loss exists, an allowance for credit losses is recorded, with a related charge to earnings, limited by the amount that the fair value of the security is less than its amortized cost. Given the nature of our current portfolio, we perform a qualitative assessment to determine whether any credit loss is warranted. The assessment considers factors such as adverse conditions and payment structure of the securities, history of payment, and market conditions. If we intend to sell the security or it is more likely than not we will be required to sell the debt security before recovery of its amortized cost basis, the security is also considered impaired and we recognize the entire difference between the security’s amortized cost basis and its fair value in earnings. |
Loan Receivables | Loan Receivables |
Loan Receivables Held for Sale | Loan Receivables Held for Sale Loans purchased or originated with the intent to sell are classified as loan receivables held for sale and carried at the lower of amortized cost or fair value. Loans initially classified as held for investment are transferred to loan receivables held for sale and carried at the lower of amortized cost or fair value once a decision has been made to sell the loans. We continue to recognize interest and fees on these loans on the accrual basis. The fair value of loan receivables held for sale is determined on an aggregate homogeneous portfolio basis. |
Acquired Loans | Acquired Loans To determine the fair value of loans at acquisition, we estimate expected cash flows and discount those cash flows using an observable market rate of interest, when available, adjusted for factors that a market participant would consider in determining fair value. In determining fair value, expected cash flows are adjusted to include prepayment, default rate, and loss severity estimates. The difference between the fair value and the amount contractually due is recorded as a loan discount or premium at acquisition. Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination (referred to as “purchased credit deteriorated” or “PCD” assets) are subject to specific guidance upon acquisition. An allowance for PCD assets is added to the purchase price or fair value of the acquired loans to arrive at the amortized cost basis. Subsequent to initial recognition, the accounting for the PCD asset will generally follow the credit loss model described below. Loans acquired without a more-than-insignificant credit deterioration since origination are measured under the Allowance for Credit Losses model described below. |
Allowance for Credit Losses | Allowance for Credit Losses As discussed above, the Company adopted ASU 2022-02 as of January 1, 2023. Losses on loan receivables are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance as of the period end date. Expected credit loss estimates involve modeling loss projections attributable to existing loan balances, considering historical experience, current conditions and future expectations for pools of loans with similar risk characteristics over the reasonable and supportable forecast period. The model considers a macroeconomic forecast, with unemployment as the primary macroeconomic variable considered. We also perform a qualitative assessment in addition to model estimates and apply qualitative adjustments as necessary. The reasonable and supportable forecast period is determined primarily based upon an assessment of the current economic outlook, including our ability to use available data to accurately forecast losses over time. The reasonable and supportable forecast period used in our estimate of credit losses at December 31, 2023 was 12 months, consistent with the forecast period utilized since adoption of CECL. The Company reassesses the reasonable and supportable forecast period on a quarterly basis. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, gradually increasing the weight of historical losses by an equal amount each month during the reversion period, and utilize historical loss information thereafter for the remaining life of the portfolio. The historical loss information is derived from a combination of recessionary and non-recessionary performance periods, weighted by the time span of each period. Similar to the reasonable and supportable forecast period, we also reassess the reversion period and historical mean on a quarterly basis, considering any required adjustments for differences in underwriting standards, portfolio mix, and other relevant data shifts over time. We generally segment our loan receivable population into pools of loans with similar risk characteristics at the major retailer and product level. Consistent with our other assumptions, we regularly review segmentation to determine whether the segmentation pools remain relevant as risk characteristics change. Our loan receivables generally do not have a stated life. The life of a credit card loan receivable is dependent upon the allocation of payments received, as well as a variety of other factors, including the principal balance, promotional terms, interest charges and fees and overall consumer credit profile and usage pattern. We determine the expected credit losses for credit card loan receivables as of the measurement date by using a combination of migration analysis, and other historical analyses, which implicitly consider the payments attributable to the measurement date balance. To do so, we utilize an approach which implicitly considers total expected future payments and applies appropriate allocations to reduce those payments in order to estimate losses pertaining to measurement date loan receivables. Based on our payments analyses, we also ensure that expected future payments from an account do not exceed the measurement date balance. We evaluate each portfolio quarterly. For credit card receivables, our estimation process includes analysis of historical data, and there is a significant amount of judgment applied in selecting inputs and analyzing the results produced by the models to determine the allowance for credit losses. We use an enhanced migration analysis to estimate the likelihood that a loan will progress through the various stages of delinquency. The enhanced migration analysis considers uncollectible principal, interest and fees reflected in the loan receivables, segmented by credit and business parameters. We use other analyses to estimate expected losses on non-delinquent accounts, which include past performance, bankruptcy activity such as filings, policy changes and loan volumes and amounts. Holistically, for assessing the portfolio credit loss content, we also evaluate portfolio risk management techniques applied to various accounts, historical behavior of different account vintages, account seasoning, economic conditions, recent trends in delinquencies, account collection management including the impact of modifications made to borrowers experiencing financial difficulties, forecasting uncertainties, expectations about the future and a qualitative assessment of the adequacy of the allowance for credit losses. Key factors that impact the accuracy of our historical loss forecast estimates include the models and methodology utilized, credit strategy and trends, and consideration of material changes in our loan portfolio such as changes in growth and portfolio mix. We regularly review our collection experience (including delinquencies and net charge-offs) in determining our allowance for credit losses. We also consider our historical loss experience to date based on actual defaulted loans and overall portfolio indicators including delinquent and non-accrual loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment and home price indices. Additionally, the estimate of expected credit losses includes expected recoveries of amounts previously charged-off and expected to be charged-off. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current and forecasted conditions, and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for credit losses. It is possible that we will experience credit losses that are different from our current estimates. Charge-offs are deducted from the allowance for credit losses and are recorded in the period when we judge the principal to be uncollectible, and subsequent recoveries are added to the allowance, generally at the time cash is received on a charged-off account. Delinquent receivables are those that are 30 days or more past due based on their contractual payments. Non-accrual loan receivables are those on which we have stopped accruing interest. We continue to accrue interest until the earlier of the time at which collection of an account becomes doubtful, or the account becomes 180 days past due, with the exception of non-credit card accounts, for which we stop accruing interest in the period that the account becomes 90 days past due. |
Loan Modifications to Borrowers Experiencing Financial Difficulty | Loan Modifications to Borrowers Experiencing Financial Difficulty Our loss mitigation strategy is intended to minimize economic loss and, at times, can result in rate reductions, principal forgiveness, extensions or other actions, for borrowers experiencing financial difficulty. We primarily use long-term modification programs for borrowers experiencing financial difficulty as a loss mitigation strategy to improve long-term collectability of the loans. The long-term modification programs include changing the structure of the loan to a fixed payment loan with a maturity no longer than 60 months, reducing the interest rate on the loan, and stopping the assessment of penalty fees. We also make long-term loan modifications for customers who request financial assistance through external sources, such as through consumer credit counseling service agencies. Long-term loan modification programs do not normally include the forgiveness of unpaid principal, interest or fees. We may also provide certain borrowers with a short-term loan modification program (generally up to 3 months) that can include the forgiveness of unpaid principal balance, interest and/or fees. We generally do not convert revolving loans to term loans, outside of loan modification programs for borrowers experiencing financial difficulties. The evaluation of whether a borrower is experiencing financial difficulty includes our consideration of all relevant facts and circumstances. See Note 5. Loan Receivables and Allowance for Credit Losses for additional information on our loan modifications to borrowers experiencing financial difficulty. Data related to redefault experience is also considered in our overall reserve adequacy review. Once the loan has been modified, it only returns to current status (re-aged) after three consecutive monthly program payments are received post the modification date, subject to re-aging limitations in the Federal Financial Institutions Examination Council guidelines on Uniform Retail Credit Classification and Account Management policy issued in June 2000. |
Charge-Offs | Charge-Offs Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine are uncollectible, net of recovered amounts. We exclude accrued and unpaid finance charges, fees and third-party fraud losses from charge-offs. Charged-off and recovered accrued and unpaid finance charges and fees are included in interest and fees on loans while fraud losses are included in other expense. Charge-offs are recorded as a reduction to the allowance for credit losses, and subsequent recoveries of previously charged-off amounts are credited to the allowance for credit losses. Costs incurred to recover charged-off loans are recorded as collection expense and are included in other expense in our Consolidated Statements of Earnings. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets We do not amortize goodwill but test it at least annually for impairment at the reporting unit level pursuant to ASC 350, Intangibles—Goodwill and Other . A reporting unit is defined under GAAP as the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Our single operating segment comprises a single reporting unit, based on the level at which segment management regularly reviews and measures the business operating results. When a portion of a reporting unit constitutes a business that is being disposed of, the amount of goodwill to be included in the carrying amount of the business classified as held for sale is based upon the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Goodwill impairment risk is first assessed by performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If potential goodwill impairment risk exists that indicates that it is more likely than not that the carrying value of our reporting unit exceeds its fair value, a quantitative test is performed. The quantitative test compares the reporting unit’s estimated fair value with its carrying value, including goodwill. If the carrying value of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to the reporting unit. The qualitative assessment for each period presented in the consolidated financial statements was performed without hindsight, assuming only factors and market conditions existing as of those dates, and resulted in no potential goodwill impairment risk for our reporting unit. Consequently, goodwill was not deemed to be impaired for any of the periods presented. Definite-lived intangible assets principally consist of certain costs incurred to develop or acquire capitalized software and customer-related assets including purchased credit card relationships. Capitalized software is amortized on a straight-line basis over its estimated useful life, generally 5 years. Customer-related assets are amortized over their estimated useful lives. Defined-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The evaluation compares the cash inflows expected to be generated from each intangible asset to its carrying value. If cash flows attributable to the intangible asset are less than the carrying value, the asset is considered impaired and written down to its estimated fair value. |
Other Assets | Other Assets |
Discontinued Operations and Held for Sale | Discontinued Operations and Held for Sale An entity is classified as held for sale in the period in which management approves and commits to a plan to sell the entity, the entity is available to be sold in its immediate condition subject to usual and customary terms, the entity is being actively marketed at a reasonable price with other actions required to complete the plan to sale initiated, the sale is generally probable to be completed within one year, and it is unlikely that there will be significant changes to the plan to sell. The disposal of an entity should be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, otherwise the results of the entity to be disposed continue to be presented within continuing operations on the Consolidated Statements of Earnings. Assets and liabilities to be disposed of have been reclassified to held for sale in our Consolidated Statements of Financial Position. See Note 3. Dispositions and Acquisitions for further details. |
Revenue Recognition, Interest and Fees on Loans | Revenue Recognition Interest and Fees on Loans We use the effective interest method to recognize income on loans. Interest and fees on loans is comprised largely of interest and late fees on credit card and other loans. Interest income is recognized based upon the amount of loans outstanding and their contractual interest rate. Late fees are recognized when billable to the customer. We continue to accrue interest and fees on credit cards until the accounts are charged-off in the period the account becomes 180 days past due. For non-credit card loans, we stop accruing interest and fees when the account becomes 90 days past due. Previously recognized interest income that was accrued but not collected from the customer is reversed. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate, provided the amount does not exceed that which would have been earned at the historical effective interest rate; otherwise, payments received are applied to reduce the principal balance of the loan. We resume accruing interest on non-credit card loans when the customer’s account is less than 90 days past due and collection of such amounts is probable. Interest accruals on modified loans that are not considered to be TDRs may return to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments subject to a re-aging limitation of once a year, or twice in a five-year period. Direct loan origination costs on credit card loans are deferred and amortized on a straight-line basis over a one-year period, or the life of the loan for other loan receivables, and are included in interest and fees on loans in our Consolidated Statements of Earnings. See Note 5. Loan Receivables and Allowance for Credit Losses for further detail. |
Revenue Recognition, Promotional Financing | Promotional Financing |
Revenue Recognition, Purchased Loans | Purchased Loans |
Revenue Recognition, Retailer Share Arrangements | Retailer Share Arrangements |
Revenue Recognition, Interchange and Protection Product Revenue | Interchange and Protection Product Revenue Other Income primarily includes interchange and protection product revenue. We earn interchange revenue at the time the cardholder transaction occurs. Protection product revenue represents fees earned from our Payment Security offering, which is a debt cancellation product. Fees are assessed and recognized during the monthly coverage period, based upon a customer's account balance. |
Revenue Recognition, Loyalty Programs | Loyalty Programs Our loyalty programs are designed to generate increased purchase volume per customer while reinforcing the value of our credit cards and strengthening cardholder loyalty. These programs typically provide cardholders with statement credit or cash back rewards. Other programs include rewards points, which are redeemable for a variety of products or awards, or merchandise discounts that are earned by achieving a pre-set spending level on their private label credit card, Dual Card or general purpose co-branded credit card. We establish a rewards liability based on points and merchandise discounts earned that are ultimately expected to be redeemed and the average cost per point at redemption. The rewards liability is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Position. Cash rebates are earned based on a tiered percentage of purchase volume. As points and discounts are redeemed or cash rebates and rewards are issued, the rewards liability is relieved. The estimated cost of loyalty programs is classified as a reduction to other income in our Consolidated Statements of Earnings. |
Revenue Recognition, Fraud Losses | Fraud Losses We experience third-party fraud losses from the unauthorized use of credit cards and when loans are obtained through fraudulent means. Fraud losses are included as a charge within other expense in our Consolidated Statements of Earnings, net of recoveries, when such losses are probable. Loans are charged-off, as applicable, after the investigation period has completed. |
Income Taxes | Income Taxes We recognize the current and deferred tax consequences of all transactions that have been recognized in the financial statements using the provisions of the enacted tax laws. The effects of tax adjustments and settlements from taxing authorities are presented in our consolidated financial statements in the period they occur. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws and rates that will be in effect when the differences are expected to reverse. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. In making decisions regarding our ability to realize tax assets, we evaluate all positive and negative evidence, including projected future taxable income, taxable income in carryback periods, expected reversal of deferred tax liabilities and the implementation of available tax planning strategies. |
Fair Value Measurements | Fair Value Measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1— Quoted prices for identical instruments in active markets. Level 2— Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3— Significant inputs to the valuation are unobservable. We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we have risk management teams that review valuations, including independent price validation for certain instruments. We use non-binding broker quotes and third-party pricing services, when available, as our primary basis for valuation when there is limited or no relevant market activity for a specific instrument or for other instruments that share similar characteristics. We have not adjusted prices that we have obtained. In the absence of such data, such measurements involve developing assumptions based on internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. The third-party brokers and third-party pricing services do not provide us access to their proprietary valuation models, inputs and assumptions. Accordingly, our risk management, treasury and/or finance personnel conduct reviews of these brokers and services, as applicable. In addition, we conduct internal reviews of pricing provided by our third-party pricing service for all investment securities on a quarterly basis to ensure reasonableness of valuations used in the consolidated financial statements. These reviews are designed to identify prices that appear stale, those that have changed significantly from prior valuations and other anomalies that may indicate that a price may not be accurate. Based on the information available, we believe that the fair values provided by the third-party brokers and pricing services are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy. Recurring Fair Value Measurements Our investments in debt and certain equity securities, as well as certain financial assets and liabilities for which we have elected the fair value option, are measured at fair value every reporting period on a recurring basis. Non-Recurring Fair Value Measurements Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Equity Securities Without Readily Determinable Fair Values The company measures certain equity securities without readily determinable fair values using observable price changes in orderly transactions for the identical or a similar investment of the same issuer when they occur. Changes in observable price changes are recognized in other income in our Consolidated Statements of Earnings. Financial Assets and Financial Liabilities Carried at Other than Fair Value The following is a description of the valuation techniques used to estimate the fair values of the financial assets and liabilities carried at other than fair value. Loan receivables, net In estimating the fair value for our loan receivables, we use a discounted future cash flow model. We use various unobservable inputs including estimated interest and fee income, payment rates, loss rates and discount rates (which consider current market interest rate data adjusted for credit risk and other factors) to estimate the fair values of loans. When collateral dependent, loan receivables may be valued using collateral values. Deposits For demand deposits with no defined maturity, carrying value approximates fair value due to the liquid nature of these deposits. For fixed-maturity certificates of deposit, fair values are estimated by discounting expected future cash flows using market rates currently offered for deposits with similar remaining maturities. Borrowings The fair values of borrowings of consolidated securitization entities are based on valuation methodologies that utilize current market interest rate data, which are comparable to market quotes adjusted for our non-performance risk. Borrowings that are publicly traded securities are classified as level 2. Borrowings that are not publicly traded are classified as level 3. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities Held for Sale | The composition of those assets and liabilities are included in the table below. At December 31 ($ in millions) 2023 Assets Cash $ 19 Goodwill (a) 87 Intangible assets, net 24 Other assets (b) 126 Total assets held for sale $ 256 Liabilities Other liabilities 107 Total liabilities held for sale $ 107 _____________ (a) The allocated goodwill is subject to change based upon the carrying amount of net assets of Pets Best and the final valuation of consideration to be received at closing. (b) Other assets primarily includes $93 million of restricted cash and equivalents. |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Our debt securities consist of the following: December 31, 2023 December 31, 2022 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated ($ in millions) cost gains losses fair value cost gains losses fair value U.S. government and federal agency $ 2,264 $ 1 $ (1) $ 2,264 $ 3,917 $ — $ (53) $ 3,864 State and municipal 10 — — 10 10 — — 10 Residential mortgage-backed (a) 392 — (38) 354 467 — (49) 418 Asset-backed (b) 1,167 4 (8) 1,163 599 — (19) 580 Other 8 — — 8 8 — (1) 7 Total (c) $ 3,841 $ 5 $ (47) $ 3,799 $ 5,001 $ — $ (122) $ 4,879 _____________ (a) All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. (b) Our asset-backed securities are collateralized by credit card and auto loans. (c) At December 31, 2023 and 2022, the estimated fair value of debt securities pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances was $360 million and $100 million, respectively. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities: In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized ($ in millions) fair value losses fair value losses At December 31, 2023 U.S. government and federal agency $ 495 $ — $ 399 $ (1) State and municipal — — 9 — Residential mortgage-backed 1 — 346 (38) Asset-backed 171 — 244 (8) Other — — 8 — Total $ 667 $ — $ 1,006 $ (47) At December 31, 2022 U.S. government and federal agency $ 3,032 $ (30) $ 638 $ (23) State and municipal 5 — 5 — Residential mortgage-backed 316 (31) 101 (18) Asset-backed 230 — 348 (19) Other 7 (1) — — Total $ 3,590 $ (62) $ 1,092 $ (60) |
Investments Classified by Contractual Maturity Date | Contractual Maturities of Investments in Available-for-Sale Debt Securities Amortized Estimated Weighted At December 31, 2023 ($ in millions) cost fair value Average yield (a) Due Within one year $ 2,745 $ 2,738 4.5 % After one year through five years $ 719 $ 722 5.3 % After five years through ten years $ 179 $ 167 1.8 % After ten years $ 198 $ 172 2.0 % ______________________ (a) Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations. |
Loan Receivables and Allowanc_2
Loan Receivables and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | At December 31 ($ in millions) 2023 2022 Credit cards $ 97,043 $ 87,630 Consumer installment loans 3,977 3,056 Commercial credit products 1,839 1,682 Other 129 102 Total loan receivables, before allowance for credit losses (a)(b)(c) $ 102,988 $ 92,470 _______________________ (a) Total loan receivables include $21.4 billion and $19.8 billion of restricted loans of consolidated securitization entities at December 31, 2023 and 2022, respectively. See Note 6. Variable Interest Entities for further information on these restricted loans. (b) At December 31, 2023 and 2022, loan receivables included deferred costs, net of deferred income, of $213 million and $237 million, respectively (c) At December 31, 2023, $22.4 billion of loan receivables were pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances. |
Allowance for Credit Losses on Financing Receivables | Allowance for Credit Losses (a)(b) ($ in millions) Balance at January 1, 2023 Impact of ASU 2022-02 Adoption Post-Adoption Balance at January 1, 2023 Provision charged to operations (c) Gross charge-offs Recoveries Balance at December 31, 2023 Credit cards $ 9,225 $ (294) $ 8,931 $ 5,536 $ (5,263) $ 952 $ 10,156 Consumer installment loans 208 1 209 259 (218) 29 279 Commercial credit products 87 (1) 86 164 (128) 9 131 Other 7 — 7 (1) (1) — 5 Total $ 9,527 $ (294) $ 9,233 $ 5,958 $ (5,610) $ 990 $ 10,571 ($ in millions) Balance at January 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at December 31, 2022 Credit cards $ 8,512 $ 3,105 $ (3,202) $ 810 $ — $ 9,225 Consumer installment loans 115 173 (97) 17 — 208 Commercial credit products 59 91 (70) 7 — 87 Other 2 6 (1) — — 7 Total $ 8,688 $ 3,375 $ (3,370) $ 834 $ — $ 9,527 ($ in millions) Balance at January 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at December 31, 2021 Credit cards $ 10,076 $ 671 $ (3,056) $ 821 $ — $ 8,512 Consumer installment loans 127 25 (55) 17 1 115 Commercial credit products 61 28 (36) 6 — 59 Other 1 2 (1) — — 2 Total $ 10,265 $ 726 $ (3,148) $ 844 $ 1 $ 8,688 _______________________ (a) The allowance for credit losses at December 31, 2023, 2022 and 2021 reflects our estimate of expected credit losses for the life of the loan receivables on our Consolidated Statements of Financial Position at December 31, 2023, 2022 and 2021, which include the consideration of current and expected macroeconomic conditions that existed at those dates. (b) Comparative information is presented in accordance with the applicable accounting standards in effect prior to the adoption of ASU 2022-02. (c) Provision for credit losses in the Consolidated Statements of Earnings for the year ended December 31, 2023 includes $7 million associated with a forward loan portfolio purchase recorded in Accrued expenses and other liabilities in the Consolidated Statements of Financial Position. |
Past Due Financing Receivables | Delinquent and Non-accrual Loans The following table provides information on our delinquent and non-accrual loans: At December 31, 2023 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 2,375 $ 2,290 $ 4,665 $ 2,290 $ — Consumer installment loans 96 23 119 — 23 Commercial credit products 61 40 101 40 — Total delinquent loans $ 2,532 $ 2,353 $ 4,885 $ 2,330 $ 23 Percentage of total loan receivables 2.5 % 2.3 % 4.7 % 2.3 % — % At December 31, 2022 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,710 $ 1,516 $ 3,226 $ 1,516 $ — Consumer installment loans 61 14 75 — 14 Commercial credit products 44 32 76 32 — Total delinquent loans $ 1,815 $ 1,562 $ 3,377 $ 1,548 $ 14 Percentage of total loan receivables 2.0 % 1.7 % 3.7 % 1.7 % — % |
Financing Receivable Credit Quality Indicators | Consumer Installment Loans by Origination Year By origination year At or for the year ended December 31, 2023 ($ in millions) 2023 2022 2021 2020 2019 Prior Total Amortized cost basis $ 2,097 $ 931 $ 541 $ 312 $ 69 $ 27 $ 3,977 30-89 days delinquent $ 44 $ 25 $ 15 $ 9 $ 2 $ 1 $ 96 90 or more days delinquent $ 11 $ 6 $ 4 $ 2 $ — $ — $ 23 Current period gross charge-offs $ 65 $ 84 $ 42 $ 19 $ 5 $ 3 $ 218 By origination year At December 31, 2022 ($ in millions) 2022 2021 2020 2019 2018 Prior Total Amortized cost basis $ 1,441 $ 868 $ 535 $ 135 $ 58 $ 19 $ 3,056 30-89 days delinquent $ 26 $ 18 $ 12 $ 3 $ 1 $ 1 $ 61 90 or more days delinquent $ 6 $ 5 $ 2 $ 1 $ — $ — $ 14 At December 31 2023 2022 651 or 591 to 590 or 651 or 591 to 590 or higher 650 less higher 650 less Credit cards 72 % 19 % 9 % 74 % 19 % 7 % Consumer installment loans 76 % 17 % 7 % 77 % 17 % 6 % Commercial credit products 83 % 10 % 7 % 88 % 6 % 6 % |
Financing Receivable Modifications | The following table provides information on our loan modifications to borrowers experiencing financial difficulty during the period presented, which do not include loans that are classified as loan receivables held for sale: Year ended December 31, 2023 ($ in millions) Amount % of Loan Receivables Long-term modifications Credit cards $ 1,573 1.6 % Consumer installment loans — — % Commercial credit products 6 0.3 % Short-term modifications Credit cards 628 0.6 % Consumer installment loans — — % Commercial credit products 1 — % Total $ 2,208 2.1 % The following table provides information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified subsequent to January 1, 2023 and remain in a modification program at December 31, 2023: Amortized cost basis At December 31, 2023 ($ in millions) Current 30-89 days delinquent 90 or more days delinquent Total past due (a) Long-term modifications Credit cards $ 861 $ 180 $ 141 $ 321 Consumer installment loans — — — — Commercial credit products 2 1 1 2 Short-term modifications Credit cards 53 32 41 73 Consumer installment loans — — — — Commercial credit products — — — — Total delinquent modified loans $ 916 $ 213 $ 183 $ 396 Percentage of total loan receivables 0.9 % 0.2 % 0.2 % 0.4 % ___________________ (a) Once a loan has been modified, it only returns to current status (re-aged) after three consecutive monthly program payments are received post the modification date. The following table presents the type, number and amount of loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program during the year ended December 31, 2023 and experienced a payment default and charged-off during the year: Year ended December 31, 2023 ($ in millions, accounts in thousands) Accounts defaulted Loans defaulted Credit cards 96 $ 233 Consumer installment loans — — Commercial credit products — 2 Total 96 $ 235 For the year ended December 31 ($ in millions) 2022 Credit cards $ 993 Consumer installment loans — Commercial credit products 3 Total $ 996 |
Impaired Financing Receivables | The following table provides information about loans classified as TDRs and specific reserves at December 31, 2022. We do not evaluate credit card loans on an individual basis but instead estimate an allowance for credit losses on a collective basis. At December 31, 2022 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,355 $ (600) $ 755 $ 1,206 Consumer installment loans — — — — Commercial credit products 4 (2) 2 4 Total $ 1,359 $ (602) $ 757 $ 1,210 The following table presents the types and financial effects of loans modified and accounted for as TDRs during the prior year periods presented. Years ended December 31, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 36 $ 321 $ 1,231 $ 39 $ 311 $ 1,222 Consumer installment loans — — — — — — Commercial credit products — 1 4 — 1 4 Total $ 36 $ 322 $ 1,235 $ 39 $ 312 $ 1,226 |
Troubled Debt Restructurings on Financing Receivables, Subsequent Default | The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification program within the previous 12 months from the applicable balance sheet date and experienced a payment default and charged-off during the prior year periods presented. Years ended December 31, 2022 2021 ($ in millions, accounts in thousands) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 60 $ 134 41 $ 103 Consumer installment loans — — — — Commercial credit products — 1 — — Total 60 $ 135 41 $ 103 |
Interest Income and Interest Expense Disclosure | The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: For the years ended December 31 ($ in millions) 2023 2022 2021 Credit cards (a) $ 19,341 $ 16,471 $ 14,880 Consumer installment loans 401 287 241 Commercial credit products 150 117 103 Other 10 6 4 Total (b) $ 19,902 $ 16,881 $ 15,228 _______________________ (a) Interest income on credit cards that was reversed related to accrued interest and fees receivables written off was $1.8 billion, $1.1 billion and $1.0 billion for the years ended December 31, 2023, 2022 and 2021, respectively. (b) Deferred merchant discounts to be recognized in interest income at December 31, 2023 and December 31, 2022, were $1.9 billion and $1.7 billion, respectively, which are included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Position. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above. At December 31 ($ in millions) 2023 2022 Assets Loan receivables, net (a) $ 19,537 $ 18,015 Other assets (b) 47 61 Total $ 19,584 $ 18,076 Liabilities Borrowings $ 7,267 $ 6,227 Other liabilities 31 23 Total $ 7,298 $ 6,250 _______________________ (a) Includes $1.9 billion and $1.8 billion of related allowance for credit losses resulting in gross restricted loans of $21.4 billion and $19.8 billion at December 31, 2023 and 2022, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill ($ in millions) 2023 2022 Balance at January 1 $ 1,105 $ 1,105 Allocated to held for sale business (a) (87) — Balance at December 31 $ 1,018 $ 1,105 _____________ (a) The allocated goodwill is subject to change based upon the carrying amount of net assets of Pets Best and the final valuation of consideration to be received at closing. |
Schedule of Finite-Lived Intangible Assets | Intangible Assets 2023 2022 At December 31 ($ in millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Capitalized software $ 2,065 $ (1,302) $ 763 $ 1,677 $ (1,020) $ 657 Other $ 204 $ (152) $ 52 $ 245 $ (160) $ 85 Total $ 2,269 $ (1,454) $ 815 $ 1,922 $ (1,180) $ 742 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | We estimate annual amortization expense for existing intangible assets over the next five calendar years to be as follows: ($ in millions) 2024 2025 2026 2027 2028 Amortization expense $ 283 $ 215 $ 154 $ 99 $ 50 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | Deposits 2023 2022 At December 31 ($ in millions) Amount Average rate (a) Amount Average rate (a) Interest-bearing deposits $ 80,789 3.9 % $ 71,336 1.5 % Non-interest-bearing deposits 364 — 399 — Total deposits $ 81,153 $ 71,735 ___________________ (a) |
Schedule of Maturities of Deposit Liabilities | At December 31, 2023, our interest-bearing time deposits maturing over the next five years and thereafter were as follows: ($ in millions) 2024 2025 2026 2027 2028 Thereafter Deposits $ 33,343 $ 9,483 $ 1,645 $ 2,649 $ 1,430 $ 119 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | 2023 2022 At December 31 ($ in millions) Maturity date Interest Rate Weighted average interest rate Outstanding Amount (a)(b) Outstanding Amount (a)(b) Borrowings of consolidated securitization entities: Fixed securitized borrowings 2025 - 2026 3.37% - 5.74% 4.62 % $ 3,417 $ 2,377 Floating securitized borrowings 2024 - 2026 6.10% - 6.38% 6.22 % 3,850 3,850 Total borrowings of consolidated securitization entities 5.47 % 7,267 6,227 Senior unsecured notes: Synchrony Financial senior unsecured notes: Fixed senior unsecured notes 2024 - 2031 2.87% - 5.15% 4.22 % 6,480 6,473 Synchrony Bank senior unsecured notes: Fixed senior unsecured notes 2025 - 2027 5.40% - 5.63% 5.49 % 1,494 1,491 Total senior unsecured notes 4.45 % 7,974 7,964 Subordinated unsecured notes: Synchrony Financial subordinated unsecured notes: Fixed subordinated unsecured notes 2033 7.25% 7.25 % 741 — Total senior and subordinated unsecured notes 4.69 % 8,715 7,964 Total borrowings $ 15,982 $ 14,191 ___________________ (a) Includes unamortized debt premiums, discounts and issuance costs. (b) The Company may redeem certain borrowings prior to their original contractual maturity dates in accordance with the optional redemption provision specified in the respective instruments. |
Schedule of Maturities of Long-term Debt | The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior and subordinated unsecured notes over the next five years and thereafter: ($ in millions) 2024 2025 2026 2027 2028 Thereafter Borrowings $ 4,225 $ 5,300 $ 2,750 $ 1,600 $ — $ 2,150 |
Schedule of Debt Issuances | Third-Party Debt 2023 Issuances ($ in millions): Issuance Date Principal Amount Maturity Interest Rate Fixed rate subordinated unsecured notes: Synchrony Financial February 2023 $ 750 February 2033 7.250% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables present our assets and liabilities measured at fair value on a recurring basis. Recurring Fair Value Measurements At December 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total (a) Assets Debt securities U.S. government and federal agency $ — $ 2,264 $ — $ 2,264 State and municipal — — 10 10 Residential mortgage-backed — 354 — 354 Asset-backed — 1,162 — 1,162 Other — — 8 8 Other (b) 14 — 10 24 Total $ 14 $ 3,780 $ 28 $ 3,822 Liabilities Other (c) — — 4 4 Total $ — $ — $ 4 $ 4 At December 31, 2022 ($ in millions) Assets Debt securities U.S. government and federal agency $ — $ 3,864 $ — $ 3,864 State and municipal — — 10 10 Residential mortgage-backed — 418 — 418 Asset-backed — 580 — 580 Other — — 7 7 Other (b) 14 — 13 27 Total $ 14 $ 4,862 $ 30 $ 4,906 Liabilities Other (c) — — 7 7 Total $ — $ — $ 7 $ 7 _______________________ (a) For the years ended December 31, 2023 and 2022, there were no fair value measurements transferred between levels. (b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Consolidated Statements of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Consolidated Statements of Financial Position. (c) Other is primarily comprised of certain financial liabilities for which we have elected the fair value option, which are included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Position. |
Fair Value, by Balance Sheet Grouping | Financial Assets and Financial Liabilities Carried at Other Than Fair Value Carrying Corresponding fair value amount At December 31, 2023 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 14,259 $ 14,259 $ 14,259 $ — $ — Other assets (a)(b) $ 50 $ 50 $ 50 $ — $ — Assets held for sale (c) $ 112 $ 112 $ 112 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (d) $ 92,407 $ 104,761 $ — $ — $ 104,761 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 81,153 $ 80,935 $ — $ 80,935 $ — Borrowings of consolidated securitization entities $ 7,267 $ 7,250 $ — $ 3,411 $ 3,839 Senior and subordinated unsecured notes $ 8,715 $ 8,423 $ — $ 8,423 $ — Carrying Corresponding fair value amount At December 31, 2022 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 10,294 $ 10,294 $ 10,294 $ — $ — Other assets (a)(c) $ 136 $ 136 $ 136 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (d) $ 82,930 $ 94,339 $ — $ — $ 94,339 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 71,735 $ 70,685 $ — $ 70,685 $ — Borrowings of consolidated securitization entities $ 6,227 $ 6,127 $ — $ 2,327 $ 3,800 Senior and subordinated unsecured notes $ 7,964 $ 7,530 $ — $ 7,530 $ — _______________________ (a) For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments. (b) This balance relates to restricted cash and equivalents, which is included in other assets. (c) Includes $19 million of cash and equivalents and $93 million of restricted cash and equivalents. (d) Excludes financial assets for which we have elected the fair value option. Under certain retail partner program agreements, the expected sales proceeds in the event of a sale of their credit card portfolio may be limited to the amounts owed by our customers, which may be less than the fair value indicated above. |
Equity Securities without Readily Determinable Fair Value | At or for the year ended December 31 ($ in millions) 2023 2022 Carrying Value $ 270 $ 245 Upward adjustments (a) 17 7 Downward adjustments (a) (6) (3) _______________________ (a) |
Regulatory and Capital Adequa_2
Regulatory and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking Regulation, Risk-Based Information [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows: Synchrony Financial At December 31, 2023 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 15,464 14.9 % $ 8,277 8.0 % Tier 1 risk-based capital $ 13,334 12.9 % $ 6,208 6.0 % Tier 1 leverage $ 13,334 11.7 % $ 4,563 4.0 % Common equity Tier 1 capital $ 12,600 12.2 % $ 4,656 4.5 % At December 31, 2022 ($ in millions) Actual (c) Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 14,253 15.5 % $ 7,369 8.0 % Tier 1 risk-based capital $ 13,026 14.1 % $ 5,527 6.0 % Tier 1 leverage $ 13,026 12.7 % $ 4,096 4.0 % Common equity Tier 1 capital $ 12,292 13.3 % $ 4,145 4.5 % Synchrony Bank At December 31, 2023 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 14,943 15.3 % $ 7,822 8.0 % $ 9,778 10.0 % Tier 1 risk-based capital $ 12,880 13.2 % $ 5,867 6.0 % $ 7,822 8.0 % Tier 1 leverage $ 12,880 12.0 % $ 4,302 4.0 % $ 5,377 5.0 % Common equity Tier 1 capital $ 12,880 13.2 % $ 4,400 4.5 % $ 6,356 6.5 % At December 31, 2022 ($ in millions) Actual (c) Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 13,860 16.1 % $ 6,881 8.0 % $ 8,601 10.0 % Tier 1 risk-based capital $ 12,714 14.8 % $ 5,161 6.0 % $ 6,881 8.0 % Tier 1 leverage $ 12,714 13.3 % $ 3,812 4.0 % $ 4,765 5.0 % Common equity Tier 1 capital $ 12,714 14.8 % $ 3,870 4.5 % $ 5,591 6.5 % _______________________ (a) Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at December 31, 2023 in the above tables reflect the applicable CECL regulatory capital transition adjustment. (b) At December 31, 2023 and 2022, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (c) Prior period amounts have been recast to reflect the change in presentation of contract costs related to our retailer partner agreements on our Consolidated Statements of Financial Condition. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted earnings per common share: Years ended December 31, (in millions, except per share data) 2023 2022 2021 Net earnings $ 2,238 $ 3,016 $ 4,221 Preferred stock dividends (42) (42) (42) Net earnings available to common stockholders $ 2,196 $ 2,974 $ 4,179 Weighted average common shares outstanding, basic 421.2 480.4 564.6 Effect of dilutive securities 2.3 3.0 4.7 Weighted average common shares outstanding, dilutive 423.5 483.4 569.3 Earnings per basic common share $ 5.21 $ 6.19 $ 7.40 Earnings per diluted common share $ 5.19 $ 6.15 $ 7.34 |
Equity and Other Stock Relate_2
Equity and Other Stock Related Information Equity and Other Stock Related Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Series A Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Stock by Class [Table Text Block] | The following table summarizes the Company's preferred stock issued and outstanding at December 31, 2023 and 2022. Series Issuance Date Redeemable by Issuer Beginning Per Annum Dividend Rate Liquidation Preference per Share Total Shares Outstanding December 31, 2023 December 31, 2022 ($ in millions, except per share data) Series A (a) November 14, 2019 November 15, 2024 5.625% $1,000 750,000 $ 734 $ 734 $ 734 $ 734 _______________________ (a) Issued as depositary shares, each representing a 1/40th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate, in each case when, as and if declared by the Board of Directors. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Earnings before Provision for Income Taxes For the years ended December 31 ($ in millions) 2023 2022 2021 U.S. $ 2,873 $ 3,947 $ 5,483 Non-U.S. 31 15 20 Earnings before provision for income taxes $ 2,904 $ 3,962 $ 5,503 |
Schedule of Components of Income Tax Expense (Benefit) | Provision for Income Taxes For the years ended December 31 ($ in millions) 2023 2022 2021 Current provision for income taxes U.S. Federal $ 943 $ 1,145 $ 895 U.S. state and local 171 217 163 Non-U.S. 10 5 5 Total current provision for income taxes 1,124 1,367 1,063 Deferred provision (benefit) for income taxes U.S. Federal (384) (352) 180 U.S. state and local (73) (71) 40 Non-U.S. (1) 2 (1) Deferred provision (benefit) for income taxes (458) (421) 219 Total provision for income taxes $ 666 $ 946 $ 1,282 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of Our Effective Tax Rate to the U.S. Federal Statutory Income Tax Rate For the years ended December 31 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state and local income taxes, net of federal benefit 3.5 3.6 3.4 All other, net (1.6) (0.7) (1.1) Effective tax rate 22.9 % 23.9 % 23.3 % |
Schedule of Deferred Tax Assets and Liabilities | Significant Components of Our Net Deferred Income Taxes At December 31 ($ in millions) 2023 2022 Assets Allowance for credit losses $ 2,626 $ 2,366 Compensation and employee benefits 149 128 Other assets 166 193 Total deferred income tax assets before valuation allowance 2,941 2,687 Valuation allowance (18) (13) Total deferred income tax assets $ 2,923 $ 2,674 Liabilities Original issue discount $ (365) $ (504) Goodwill and identifiable intangibles (a) (198) (193) Other liabilities (a) (165) (149) Total deferred income tax liabilities (728) (846) Net deferred income tax assets $ 2,195 $ 1,828 _______________________ (a) Prior period amounts have been recast to reflect the change in presentation of contract costs related to our retailer partner agreements on our Consolidated Statements of Financial Condition. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our consolidated financial statements for additional information. |
Summary of Unrecognized Tax Benefits | Reconciliation of Unrecognized Tax Benefits ($ in millions) 2023 2022 Balance at January 1 $ 267 $ 274 Additions: Tax positions of the current year 40 97 Tax positions of prior years 2 1 Reductions: Prior year tax positions (47) (73) Settlements with tax authorities (1) — Expiration of the statute of limitation (31) (32) Balance at December 31 $ 230 $ 267 Portion of balance that, if recognized, would impact the effective income tax rate $ 182 $ 177 |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Earnings | Condensed Statements of Earnings For the years ended December 31 ($ in millions) 2023 2022 2021 Interest income: Interest income from subsidiaries $ 355 $ 134 $ 67 Interest on cash and debt securities 34 8 1 Total interest income 389 142 68 Interest expense: Interest on senior unsecured notes 335 279 264 Total interest expense 335 279 264 Net interest income (expense) 54 (137) (196) Dividends from bank subsidiaries 1,450 3,150 2,600 Dividends from nonbank subsidiaries 102 290 147 Other income 135 122 327 Other expense 202 177 292 Earnings before benefit from income taxes 1,539 3,248 2,586 Benefit from income taxes (16) (46) (26) Equity in undistributed net earnings (loss) of subsidiaries 683 (278) 1,609 Net earnings $ 2,238 $ 3,016 $ 4,221 Comprehensive income $ 2,295 $ 2,960 $ 4,203 |
Condensed Statements of Financial Position | Condensed Statements of Financial Position At December 31 ($ in millions) 2023 2022 Assets Cash and equivalents $ 3,214 $ 3,287 Debt securities 49 60 Investments in and amounts due from subsidiaries (a) 18,285 16,338 Goodwill 25 59 Other assets 337 326 Total assets $ 21,910 $ 20,070 Liabilities and Equity Amounts due to subsidiaries $ 316 $ 287 Senior unsecured notes 7,221 6,473 Accrued expenses and other liabilities 470 437 Total liabilities 8,007 7,197 Equity: Total equity 13,903 12,873 Total liabilities and equity $ 21,910 $ 20,070 _____________ (a) Includes investments in and amounts due from bank subsidiaries of $14.0 billion and $12.4 billion at December 31, 2023 and 2022, respectively. |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the years ended December 31 ($ in millions) 2023 2022 2021 Cash flows - operating activities Net earnings $ 2,238 $ 3,016 $ 4,221 Adjustments to reconcile net earnings to cash provided from operating activities Deferred income taxes 9 (1) 34 (Increase) decrease in other assets 19 (28) (117) Increase (decrease) in accrued expenses and other liabilities 21 (4) 26 Equity in undistributed net (earnings) loss of subsidiaries (683) 278 (1,609) All other operating activities 101 28 106 Cash provided from (used for) operating activities 1,705 3,289 2,661 Cash flows - investing activities Net (increase) decrease in investments in and amounts due from subsidiaries (898) 265 645 Maturity and sales of debt securities 14 21 44 Purchases of debt securities — — (5) All other investing activities (45) (6) (132) Cash provided from (used for) investing activities (929) 280 552 Cash flows - financing activities Senior unsecured notes Proceeds from issuance of senior unsecured notes 740 745 744 Maturities and repayment of senior unsecured notes — (750) (750) Dividends paid on preferred stock (42) (42) (42) Purchases of treasury stock (1,112) (3,320) (2,876) Dividends paid on common stock (406) (434) (500) Increase (decrease) in amounts due to subsidiaries (7) 14 4 All other financing activities (22) (41) 32 Cash provided from (used for) financing activities (849) (3,828) (3,388) Increase (decrease) in cash and equivalents (73) (259) (175) Cash and equivalents at beginning of year 3,287 3,546 3,721 Cash and equivalents at end of year $ 3,214 $ 3,287 $ 3,546 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) payment | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Cumulative effect of change in accounting principle | $ 18,662 | $ 16,716 | |||
Financing receivable, allowance for credit loss, reasonable and supportable forecast period | 12 months | ||||
Threshold for defining delinquent receivables | 30 days | ||||
Conditional threshold for defining non-accrual receivables | 180 days | ||||
Conditional threshold for non-accrual status for non-credit card accounts | 90 days | ||||
Financing Receivable, Number of Consecutive Payments to Maintain Current Status | payment | 3 | ||||
Financing receivable, allowance for credit loss, reversion period | 6 months | ||||
Stockholders' Equity Attributable to Parent | $ 13,903 | 12,873 | $ 13,655 | $ 12,701 | |
Retained Earnings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Stockholders' Equity Attributable to Parent | $ 18,662 | 16,716 | $ 14,245 | $ 10,621 | |
Software and Software Development Costs | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Unsecured Consumer and Secured by Collateral | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due for charge-off | 120 days | ||||
Unsecured Open-Ended Revolving | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due for charge-off | 180 days | ||||
Unsecured Consumer in Bankruptcy | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due for charge-off | 60 days | ||||
Credit card loans for deceased account holders | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due for charge-off | 60 days | ||||
Credit cards | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold for interest and fee accrual | 180 days | ||||
Non-Credit Card Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold for interest and fee accrual | 90 days | ||||
Maximum period past due for interest and fee accrual | 90 days | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Range of long-term modifications | 60 months | ||||
Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase in Allowance for Credit Losses Amount | $ 294 | ||||
Stockholders' Equity Attributable to Parent | 222 | ||||
Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Stockholders' Equity Attributable to Parent | $ 222 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 segment sales_platform | |
Accounting Policies [Abstract] | |
Number of sales platforms | sales_platform | 5 |
Number of reportable segments | segment | 1 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Cash and Equivalents (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Cash and due from banks | $ 1.4 | $ 1.5 |
Interest-bearing deposits in other banks | $ 12.8 | $ 8.8 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Change in Presentation Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Change In Presentation [Line Items] | ||
Other assets | $ 4,915 | $ 4,601 |
Contracts costs related to retailer partner agreements | ||
Change In Presentation [Line Items] | ||
Other assets | $ 498 | $ 545 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Assets held for sale | $ 256 | $ 0 |
Liabilities held for sale | 107 | $ 0 |
Pets Best | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Assets held for sale | 256 | |
Liabilities held for sale | 107 | |
Ally Lending | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Loan receivables to be acquired | $ 2,200 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Assets And Liabilities Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | $ 19 | |
Goodwill | 87 | $ 0 |
Total assets held for sale | 256 | 0 |
Total liabilities held for sale | 107 | $ 0 |
Restricted cash | 93 | |
Pets Best | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 19 | |
Goodwill | 87 | |
Intangible assets, net | 24 | |
Other assets | 126 | |
Total assets held for sale | 256 | |
Other liabilities | 107 | |
Total liabilities held for sale | $ 107 |
Debt Securities - Schedule of A
Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt | ||
Amortized cost | $ 3,841 | $ 5,001 |
Gross unrealized gains | 5 | 0 |
Gross unrealized losses | (47) | (122) |
Estimated fair value | 3,799 | 4,879 |
U.S. government and federal agency | ||
Debt | ||
Amortized cost | 2,264 | 3,917 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (1) | (53) |
Estimated fair value | 2,264 | 3,864 |
State and municipal | ||
Debt | ||
Amortized cost | 10 | 10 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 10 | 10 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Residential Mortgage Backed Securities pledged as collateral to the Federal Reserve | 360 | 100 |
Debt | ||
Amortized cost | 392 | 467 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (38) | (49) |
Estimated fair value | 354 | 418 |
Asset-backed | ||
Debt | ||
Amortized cost | 1,167 | 599 |
Gross unrealized gains | 4 | 0 |
Gross unrealized losses | (8) | (19) |
Estimated fair value | 1,163 | 580 |
Other Debt Obligations | ||
Debt | ||
Amortized cost | 8 | 8 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (1) |
Estimated fair value | $ 8 | $ 7 |
Debt Securities - Continuous Un
Debt Securities - Continuous Unrealized Losses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated fair value | ||
Less than 12 months | $ 667 | $ 3,590 |
12 months or more | 1,006 | 1,092 |
Gross unrealized losses | ||
Less than 12 months | 0 | (62) |
12 months or more | (47) | (60) |
U.S. government and federal agency | ||
Estimated fair value | ||
Less than 12 months | 495 | 3,032 |
12 months or more | 399 | 638 |
Gross unrealized losses | ||
Less than 12 months | 0 | (30) |
12 months or more | (1) | (23) |
State and municipal | ||
Estimated fair value | ||
Less than 12 months | 0 | 5 |
12 months or more | 9 | 5 |
Gross unrealized losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Residential mortgage-backed | ||
Estimated fair value | ||
Less than 12 months | 1 | 316 |
12 months or more | 346 | 101 |
Gross unrealized losses | ||
Less than 12 months | 0 | (31) |
12 months or more | (38) | (18) |
Asset-backed | ||
Estimated fair value | ||
Less than 12 months | 171 | 230 |
12 months or more | 244 | 348 |
Gross unrealized losses | ||
Less than 12 months | 0 | 0 |
12 months or more | (8) | (19) |
Other Debt Obligations | ||
Estimated fair value | ||
Less than 12 months | 0 | 7 |
12 months or more | 8 | 0 |
Gross unrealized losses | ||
Less than 12 months | 0 | (1) |
12 months or more | $ 0 | $ 0 |
Debt Securities - Contractual M
Debt Securities - Contractual Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Amortized Cost | |
Within one year | $ 2,745 |
After one year through five years | 719 |
After five years through ten years | 179 |
After ten years | 198 |
Estimated Fair Value | |
Within one year | 2,738 |
After one year through five years | 722 |
After five years through ten years | 167 |
After ten years | $ 172 |
Weighted Average Yield | |
Within one year | 4.50% |
After one year through five years | 5.30% |
After five years through ten years | 1.80% |
After ten years | 2% |
Loan Receivables and Allowanc_3
Loan Receivables and Allowance for Credit Losses - Loan Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 102,988 | $ 92,470 |
Loan Receivables, Deferred Income | 213 | 237 |
Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 21,434 | 19,832 |
Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 97,043 | 87,630 |
Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 3,977 | 3,056 |
Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 1,839 | 1,682 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 129 | $ 102 |
Federal Reserve Discount Window [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan receivables: (Notes 5 and 6) | $ 22,400 |
Loan Receivables and Allowanc_4
Loan Receivables and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | $ 9,527 | $ 8,688 | $ 10,265 |
Provision charged to operations | 5,958 | ||
Provision for credit losses | 5,965 | 3,375 | 726 |
Gross charge-offs | (5,610) | (3,370) | (3,148) |
Recoveries | 990 | 834 | 844 |
Other | 0 | 1 | |
ACL - Ending Balance | 10,571 | 9,527 | 8,688 |
Provision for credit losses, forward loan portfolio purchase included in accrued expenses and other liabilities | 7 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 9,233 | ||
ACL - Ending Balance | 9,233 | ||
Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | (294) | ||
ACL - Ending Balance | (294) | ||
Credit cards | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 9,225 | 8,512 | 10,076 |
Provision charged to operations | 5,536 | ||
Provision for credit losses | 3,105 | 671 | |
Gross charge-offs | (5,263) | (3,202) | (3,056) |
Recoveries | 952 | 810 | 821 |
Other | 0 | 0 | |
ACL - Ending Balance | 10,156 | 9,225 | 8,512 |
Credit cards | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 8,931 | ||
ACL - Ending Balance | 8,931 | ||
Credit cards | Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | (294) | ||
ACL - Ending Balance | (294) | ||
Consumer installment loans | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 208 | 115 | 127 |
Provision charged to operations | 259 | ||
Provision for credit losses | 173 | 25 | |
Gross charge-offs | (218) | (97) | (55) |
Recoveries | 29 | 17 | 17 |
Other | 0 | 1 | |
ACL - Ending Balance | 279 | 208 | 115 |
Consumer installment loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 209 | ||
ACL - Ending Balance | 209 | ||
Consumer installment loans | Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 1 | ||
ACL - Ending Balance | 1 | ||
Commercial credit products | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 87 | 59 | 61 |
Provision charged to operations | 164 | ||
Provision for credit losses | 91 | 28 | |
Gross charge-offs | (128) | (70) | (36) |
Recoveries | 9 | 7 | 6 |
Other | 0 | 0 | |
ACL - Ending Balance | 131 | 87 | 59 |
Commercial credit products | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 86 | ||
ACL - Ending Balance | 86 | ||
Commercial credit products | Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | (1) | ||
ACL - Ending Balance | (1) | ||
Other | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 7 | 2 | 1 |
Provision charged to operations | (1) | ||
Provision for credit losses | 6 | 2 | |
Gross charge-offs | (1) | (1) | (1) |
Recoveries | 0 | 0 | 0 |
Other | 0 | 0 | |
ACL - Ending Balance | 5 | 7 | $ 2 |
Other | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | 7 | ||
ACL - Ending Balance | 7 | ||
Other | Accounting Standards Update 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Losses [Roll Forward] | |||
ACL - Beginning Balance | $ 0 | ||
ACL - Ending Balance | $ 0 |
Loan Receivables and Allowanc_5
Loan Receivables and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, allowance for credit loss, reasonable and supportable forecast period | 12 months | |||
Financing receivable, allowance for credit loss, reversion period | 6 months | |||
Allowance for credit losses | $ 10,571 | $ 9,527 | $ 8,688 | $ 10,265 |
Financing receivable, modified, weighted average interest rate decrease from modification | 97% | |||
Financing receivables modified, amount of unpaid balance forgiven, short-term | $ 186 | |||
Financing receivable modifications, success rate, short-term | 54% | |||
Percentage of loan receivables with no VantageScore | 0.30% | 0.40% | ||
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ 10,156 | $ 9,225 | $ 8,512 | $ 10,076 |
Unused commitments to extend credit | $ 427,000 | $ 417,000 |
Loan Receivables and Allowanc_6
Loan Receivables and Allowance for Credit Losses - Delinquent and Non Accrual Status (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 102,988 | $ 92,470 |
Total non-accruing | $ 23 | $ 14 |
Nonaccrual, percent past due | 0% | 0% |
Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 97,043 | $ 87,630 |
Total non-accruing | 0 | 0 |
Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 3,977 | 3,056 |
Total non-accruing | 23 | 14 |
Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 1,839 | 1,682 |
Total non-accruing | 0 | 0 |
30-89 days delinquent | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 2,532 | $ 1,815 |
Percent past due | 2.50% | 2% |
30-89 days delinquent | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 2,375 | $ 1,710 |
30-89 days delinquent | Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 96 | 61 |
30-89 days delinquent | Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 61 | 44 |
90 or more days delinquent | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 2,353 | $ 1,562 |
Percent past due | 2.30% | 1.70% |
90 or more days delinquent | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 2,290 | $ 1,516 |
90 or more days delinquent | Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 23 | 14 |
90 or more days delinquent | Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 40 | 32 |
Total past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 4,885 | $ 3,377 |
Percent past due | 4.70% | 3.70% |
Total past due | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | $ 4,665 | $ 3,226 |
Total past due | Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 119 | 75 |
Total past due | Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivables | 101 | 76 |
90 or more days delinquent and accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
90 or more days delinquent and accruing | $ 2,330 | $ 1,548 |
Percent past due | 2.30% | 1.70% |
90 or more days delinquent and accruing | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
90 or more days delinquent and accruing | $ 2,290 | $ 1,516 |
90 or more days delinquent and accruing | Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
90 or more days delinquent and accruing | 0 | 0 |
90 or more days delinquent and accruing | Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
90 or more days delinquent and accruing | $ 40 | $ 32 |
Loan Receivables and Allowanc_7
Loan Receivables and Allowance for Credit Losses - Loan Credit Quality Indicators by Origination Year (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loan receivables | $ 102,988 | $ 92,470 | |
Writeoff | 5,610 | 3,370 | $ 3,148 |
30-89 days delinquent | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loan receivables | 2,532 | 1,815 | |
90 or more days delinquent | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loan receivables | 2,353 | 1,562 | |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Originated, current year | 2,097 | 1,441 | |
Originated, one year before current year | 931 | 868 | |
Originated, two years before current year | 541 | 535 | |
Originated, three years before current year | 312 | 135 | |
Originated, four years before current year | 69 | 58 | |
Originated, more than five years before current year | 27 | 19 | |
Total loan receivables | 3,977 | 3,056 | |
Originated, current year, writeoff | 65 | ||
Originated, one year before current year, writeoff | 84 | ||
Originated, two years before current year, writeoff | 42 | ||
Originated, three years before current year, writeoff | 19 | ||
Originated, four years before current year, writeoff | 5 | ||
Originated, more than five years before current year, writeoff | 3 | ||
Writeoff | 218 | 97 | $ 55 |
Consumer installment loans | 30-89 days delinquent | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Originated, current year | 44 | 26 | |
Originated, one year before current year | 25 | 18 | |
Originated, two years before current year | 15 | 12 | |
Originated, three years before current year | 9 | 3 | |
Originated, four years before current year | 2 | 1 | |
Originated, more than five years before current year | 1 | 1 | |
Total loan receivables | 96 | 61 | |
Consumer installment loans | 90 or more days delinquent | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Originated, current year | 11 | 6 | |
Originated, one year before current year | 6 | 5 | |
Originated, two years before current year | 4 | 2 | |
Originated, three years before current year | 2 | 1 | |
Originated, four years before current year | 0 | 0 | |
Originated, more than five years before current year | 0 | 0 | |
Total loan receivables | $ 23 | $ 14 |
Loan Receivables and Allowanc_8
Loan Receivables and Allowance for Credit Losses - Loans Entered into a Loan Modification Program (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 996 | ||
Short-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 2,208 | ||
% of Loan Receivables | 2.10% | ||
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | 993 | ||
Credit cards | Long-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 1,573 | ||
% of Loan Receivables | 1.60% | ||
Credit cards | Short-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 628 | ||
% of Loan Receivables | 0.60% | ||
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 0 | ||
Consumer installment loans | Long-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 0 | ||
% of Loan Receivables | 0% | ||
Consumer installment loans | Short-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 0 | ||
% of Loan Receivables | 0% | ||
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 3 | ||
Commercial credit products | Long-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 6 | ||
% of Loan Receivables | 0.30% | ||
Commercial credit products | Short-term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans entered into a modification program | $ 1 | ||
% of Loan Receivables | 0% |
Loan Receivables and Allowanc_9
Loan Receivables and Allowance for Credit Losses - Schedule of Loans Modified in Past 12 Months And Still In Program (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 2.10% | |
Financial Asset, Not Past Due | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 916 | |
% of Loan Receivables | 0.90% | |
30-89 days delinquent | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 213 | |
% of Loan Receivables | 0.20% | |
90 or more days delinquent | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 183 | |
% of Loan Receivables | 0.20% | |
Total past due | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 396 | |
% of Loan Receivables | 0.40% | |
Credit cards | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 1.60% | |
Credit cards | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 0.60% | |
Credit cards | Financial Asset, Not Past Due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 861 | |
Credit cards | Financial Asset, Not Past Due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 53 | |
Credit cards | 30-89 days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 180 | |
Credit cards | 30-89 days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 32 | |
Credit cards | 90 or more days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 141 | |
Credit cards | 90 or more days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 41 | |
Credit cards | Total past due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 321 | |
Credit cards | Total past due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 73 | |
Consumer installment loans | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 0% | |
Consumer installment loans | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 0% | |
Consumer installment loans | Financial Asset, Not Past Due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 0 | |
Consumer installment loans | Financial Asset, Not Past Due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | 30-89 days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | 30-89 days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | 90 or more days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | 90 or more days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | Total past due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Consumer installment loans | Total past due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 0 | |
Commercial credit products | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 0.30% | |
Commercial credit products | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
% of Loan Receivables | 0% | |
Commercial credit products | Financial Asset, Not Past Due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 2 | |
Commercial credit products | Financial Asset, Not Past Due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Commercial credit products | 30-89 days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 1 | |
Commercial credit products | 30-89 days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Commercial credit products | 90 or more days delinquent | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 1 | |
Commercial credit products | 90 or more days delinquent | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 0 | |
Commercial credit products | Total past due | Long-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | 2 | |
Commercial credit products | Total past due | Short-term Modification | ||
Financing Receivable, Modified [Line Items] | ||
Financing Receivable, Modified, after 12 Months | $ 0 |
Loan Receivables and Allowan_10
Loan Receivables and Allowance for Credit Losses - Loans Modified, Payment Defaults (Details) contract in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 96 | ||
Loans defaulted | $ | $ 235 | $ 135 | $ 103 |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 96 | ||
Loans defaulted | $ | $ 233 | 134 | 103 |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 0 | ||
Loans defaulted | $ | $ 0 | 0 | 0 |
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 0 | ||
Loans defaulted | $ | $ 2 | $ 1 | $ 0 |
Loan Receivables and Allowan_11
Loan Receivables and Allowance for Credit Losses - Classified as TDRs (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total recorded investment | $ 1,359 |
Related allowance | (602) |
Net recorded investment | 757 |
Unpaid principal balance | 1,210 |
Credit cards | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total recorded investment | 1,355 |
Related allowance | (600) |
Net recorded investment | 755 |
Unpaid principal balance | 1,206 |
Consumer installment loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total recorded investment | 0 |
Related allowance | 0 |
Net recorded investment | 0 |
Unpaid principal balance | 0 |
Commercial credit products | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total recorded investment | 4 |
Related allowance | (2) |
Net recorded investment | 2 |
Unpaid principal balance | $ 4 |
Loan Receivables and Allowan_12
Loan Receivables and Allowance for Credit Losses - Financial Effects of TDRs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income recognized during period when loans were impaired | $ 36 | $ 39 |
Interest income that would have been recorded with original terms | 322 | 312 |
Average recorded investment | 1,235 | 1,226 |
Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income recognized during period when loans were impaired | 36 | 39 |
Interest income that would have been recorded with original terms | 321 | 311 |
Average recorded investment | 1,231 | 1,222 |
Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income recognized during period when loans were impaired | 0 | 0 |
Interest income that would have been recorded with original terms | 0 | 0 |
Average recorded investment | 0 | 0 |
Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income recognized during period when loans were impaired | 0 | 0 |
Interest income that would have been recorded with original terms | 1 | 1 |
Average recorded investment | $ 4 | $ 4 |
Loan Receivables and Allowan_13
Loan Receivables and Allowance for Credit Losses - Troubled Debt Restructuring, Payment Defaults (Details) contract in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 60 | 41 | |
Loans defaulted | $ | $ 235 | $ 135 | $ 103 |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 60 | 41 | |
Loans defaulted | $ | 233 | $ 134 | $ 103 |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 0 | 0 | |
Loans defaulted | $ | 0 | $ 0 | $ 0 |
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts defaulted | contract | 0 | 0 | |
Loans defaulted | $ | $ 2 | $ 1 | $ 0 |
Loan Receivables and Allowan_14
Loan Receivables and Allowance for Credit Losses - Credit Quality Indicators (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Credit cards | 651 or higher | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 72% | 74% |
Credit cards | 591-650 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 19% | 19% |
Credit cards | 590 or less | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 9% | 7% |
Consumer installment loans | 651 or higher | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 76% | 77% |
Consumer installment loans | 591-650 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 17% | 17% |
Consumer installment loans | 590 or less | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 7% | 6% |
Commercial credit products | 651 or higher | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 83% | 88% |
Commercial credit products | 591-650 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 10% | 6% |
Commercial credit products | 590 or less | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of class of loan receivable | 7% | 6% |
Loan Receivables and Allowan_15
Loan Receivables and Allowance for Credit Losses - Interest Income by Product (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and fees on loans | $ 19,902 | $ 16,881 | $ 15,228 |
Contract with Customer, Liability | 1,900 | 1,700 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and fees on loans | 19,341 | 16,471 | 14,880 |
Financing Receivable, Accrued Interest, Writeoff | 1,800 | 1,100 | 1,000 |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and fees on loans | 401 | 287 | 241 |
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and fees on loans | 150 | 117 | 103 |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and fees on loans | $ 10 | $ 6 | $ 4 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||||
Loan receivables, net | $ 92,417 | $ 82,943 | ||
Other assets | 4,915 | 4,601 | ||
Total assets | 117,479 | 104,564 | ||
Total liabilities | 103,576 | 91,691 | ||
Allowance for credit losses | 10,571 | 9,527 | $ 8,688 | $ 10,265 |
Total loan receivables | 102,988 | 92,470 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Loan receivables, net | 19,537 | 18,015 | ||
Other assets | 47 | 61 | ||
Total assets | 19,584 | 18,076 | ||
Borrowings | 7,267 | 6,227 | ||
Other liabilities | 31 | 23 | ||
Total liabilities | 7,298 | 6,250 | ||
Allowance for credit losses | 1,900 | 1,800 | ||
Total loan receivables | 21,434 | 19,832 | ||
Variable Interest Entity, Primary Beneficiary | Other Assets | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash and cash equivalents | $ 45 | $ 56 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Interest and fees on loans | $ 19,902 | $ 16,881 | $ 15,228 |
Provision for credit losses | 5,965 | 3,375 | 726 |
Amortization Method Qualified Affordable Housing Project Investments | 736 | 557 | |
Other investments in non-consolidated VIEs | 252 | 230 | |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 71 | 44 | |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 90 | 56 | |
Investments Funding Commitment | |||
Variable Interest Entity [Line Items] | |||
Other Commitment | 188 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Interest and fees on loans | 3,900 | 3,700 | 4,100 |
Provision for credit losses | 857 | 365 | (105) |
Interest on borrowings of consolidated securitization entities | $ 340 | $ 196 | $ 169 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets- Schedule of Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill [Roll Forward] | ||
Goodwill | $ 87 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,269 | $ 1,922 |
Accumulated amortization | (1,454) | (1,180) |
Net | 815 | 742 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,065 | 1,677 |
Accumulated amortization | (1,302) | (1,020) |
Net | 763 | 657 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 204 | 245 |
Accumulated amortization | (152) | (160) |
Net | $ 52 | $ 85 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 392 | ||
Other assets | 4,915 | $ 4,601 | |
Contracts costs related to retailer partner agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other assets | 498 | 545 | |
Pets Best | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 24 | ||
Other Expense | Finite-Lived Intangible Assets, Excluding Retail Partner Contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 294 | $ 252 | $ 209 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets- Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Amortization expense, 2024 | $ 283 |
Amortization expense, 2025 | 215 |
Amortization expense, 2026 | 154 |
Amortization expense, 2027 | 99 |
Amortization expense, 2028 | $ 50 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Interest-bearing deposits, amount | $ 80,789 | $ 71,336 |
Total deposits | 81,153 | 71,735 |
Non-interest-bearing deposit accounts | $ 364 | $ 399 |
Average Rate Domestic Deposits | 3.90% | 1.50% |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Maturities of Time Deposits [Abstract] | |
2024 | $ 33,343 |
2025 | 9,483 |
2026 | 1,645 |
2027 | 2,649 |
2028 | 1,430 |
Thereafter | $ 119 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Compliance with Banking Regulations [Line Items] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 10 | $ 7.2 |
Demand deposits with no defined maturity | 28.1 | |
Deposits, Savings Deposits | 26.2 | |
Program Arranger | ||
Compliance with Banking Regulations [Line Items] | ||
Broker network deposit sweeps | $ 4 |
Borrowings - Borrowings Schedul
Borrowings - Borrowings Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amount | ||
Total borrowings | $ 15,982 | $ 14,191 |
Senior unsecured notes | ||
Amount | ||
Unsecured debt | $ 7,974 | 7,964 |
Average rate | ||
Weighted average interest rate | 4.45% | |
Senior and Subordinated Notes | ||
Amount | ||
Unsecured debt | $ 8,715 | 7,964 |
Average rate | ||
Weighted average interest rate | 4.69% | |
Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Amount | ||
Unsecured debt | $ 6,480 | 6,473 |
Average rate | ||
Weighted average interest rate | 4.22% | |
Fixed Subordinated Unsecured Notes | Senior Subordinated Notes | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 7.25% | |
Amount | ||
Unsecured debt | $ 741 | 0 |
Average rate | ||
Weighted average interest rate | 7.25% | |
Minimum | Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 2.87% | |
Maximum | Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 5.15% | |
Variable Interest Entity, Primary Beneficiary | ||
Amount | ||
Borrowings of consolidated securitization entities | $ 7,267 | 6,227 |
Average rate | ||
Weighted average interest rate | 5.47% | |
Variable Interest Entity, Primary Beneficiary | Fixed Securitized Borrowings | ||
Amount | ||
Borrowings of consolidated securitization entities | $ 3,417 | 2,377 |
Average rate | ||
Weighted average interest rate | 4.62% | |
Variable Interest Entity, Primary Beneficiary | Floating Securitized Borrowings | ||
Amount | ||
Borrowings of consolidated securitization entities | $ 3,850 | 3,850 |
Average rate | ||
Weighted average interest rate | 6.22% | |
Variable Interest Entity, Primary Beneficiary | Minimum | Fixed Securitized Borrowings | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 3.37% | |
Variable Interest Entity, Primary Beneficiary | Minimum | Floating Securitized Borrowings | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 6.10% | |
Variable Interest Entity, Primary Beneficiary | Maximum | Fixed Securitized Borrowings | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 5.74% | |
Variable Interest Entity, Primary Beneficiary | Maximum | Floating Securitized Borrowings | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 6.38% | |
Subsidiaries | Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Amount | ||
Unsecured debt | $ 1,494 | $ 1,491 |
Average rate | ||
Weighted average interest rate | 5.49% | |
Subsidiaries | Minimum | Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 5.40% | |
Subsidiaries | Maximum | Fixed Senior Unsecured Notes | Senior unsecured notes | ||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||
Stated interest rate | 5.63% |
Borrowings - Borrowings Maturit
Borrowings - Borrowings Maturity Schedule (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Maturities of Long-Term Debt [Line Items] | |
2024 | $ 4,225 |
2025 | 5,300 |
2026 | 2,750 |
2027 | 1,600 |
2028 | 0 |
Thereafter | $ 2,150 |
Borrowings Borrowings - Senior
Borrowings Borrowings - Senior Unsecured (Details) - Senior Subordinated Notes - Fixed Rate Subordinated Notes Due 2033 $ in Millions | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Principal Amount | $ 750 |
Stated interest rate | 7.25% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Reserve Discount Window [Member] | ||
Debt Instrument [Line Items] | ||
Remaining undrawn capacity | $ 10.4 | $ 0.1 |
Revolving Credit Facility [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Undrawn capacity | 0.5 | |
Variable Interest Entity, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Remaining undrawn capacity | $ 2.5 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Debt securities | $ 3,799 | $ 4,879 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Other | 24 | 27 |
Total | 3,822 | 4,906 |
Liabilities | ||
Other | 4 | 7 |
Total | 4 | 7 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Other | 14 | 14 |
Total | 14 | 14 |
Liabilities | ||
Other | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Other | 0 | 0 |
Total | 3,780 | 4,862 |
Liabilities | ||
Other | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Other | 10 | 13 |
Total | 28 | 30 |
Liabilities | ||
Other | 4 | 7 |
Total | 4 | 7 |
U.S. Government and federal agency | ||
Assets | ||
Debt securities | 2,264 | 3,864 |
U.S. Government and federal agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Debt securities | 2,264 | 3,864 |
U.S. Government and federal agency | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Debt securities | 0 | 0 |
U.S. Government and federal agency | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Debt securities | 2,264 | 3,864 |
U.S. Government and federal agency | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Debt securities | 0 | 0 |
State and municipal | ||
Assets | ||
Debt securities | 10 | 10 |
State and municipal | Fair Value, Measurements, Recurring | ||
Assets | ||
Debt securities | 10 | 10 |
State and municipal | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Debt securities | 0 | 0 |
State and municipal | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Debt securities | 0 | 0 |
State and municipal | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Debt securities | 10 | 10 |
Residential mortgage-backed | ||
Assets | ||
Debt securities | 354 | 418 |
Residential mortgage-backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Debt securities | 354 | 418 |
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Debt securities | 0 | 0 |
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Debt securities | 354 | 418 |
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Debt securities | 0 | 0 |
Asset-backed | ||
Assets | ||
Debt securities | 1,163 | 580 |
Asset-backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Debt securities | 1,162 | 580 |
Asset-backed | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Debt securities | 0 | 0 |
Asset-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Debt securities | 1,162 | 580 |
Asset-backed | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Debt securities | 0 | 0 |
Other Debt Obligations | ||
Assets | ||
Debt securities | 8 | 7 |
Other Debt Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Debt securities | 8 | 7 |
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Debt securities | 0 | 0 |
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Debt securities | 0 | 0 |
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Debt securities | $ 8 | $ 7 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value Asset and Liabilities Carried at Other than Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 19 | |
Restricted cash | 93 | |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and equivalents | 14,259 | $ 10,294 |
Other assets | 50 | 136 |
Assets Held for Sale, Fair Value Disclosure | 112 | |
Loan receivables, net | 92,407 | 82,930 |
Deposits | 81,153 | 71,735 |
Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and equivalents | 14,259 | 10,294 |
Other assets | 50 | 136 |
Assets Held for Sale, Fair Value Disclosure | 112 | |
Loan receivables, net | 104,761 | 94,339 |
Deposits | 80,935 | 70,685 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and equivalents | 14,259 | 10,294 |
Other assets | 50 | 136 |
Assets Held for Sale, Fair Value Disclosure | 112 | |
Loan receivables, net | 0 | 0 |
Deposits | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and equivalents | 0 | 0 |
Other assets | 0 | 0 |
Assets Held for Sale, Fair Value Disclosure | 0 | |
Loan receivables, net | 0 | 0 |
Deposits | 80,935 | 70,685 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and equivalents | 0 | 0 |
Other assets | 0 | 0 |
Assets Held for Sale, Fair Value Disclosure | 0 | |
Loan receivables, net | 104,761 | 94,339 |
Deposits | 0 | 0 |
Variable Interest Entity, Primary Beneficiary | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings of consolidated securitization entities | 7,267 | 6,227 |
Variable Interest Entity, Primary Beneficiary | Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings of consolidated securitization entities | 7,250 | 6,127 |
Variable Interest Entity, Primary Beneficiary | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings of consolidated securitization entities | 0 | 0 |
Variable Interest Entity, Primary Beneficiary | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings of consolidated securitization entities | 3,411 | 2,327 |
Variable Interest Entity, Primary Beneficiary | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings of consolidated securitization entities | 3,839 | 3,800 |
Senior unsecured notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 8,715 | 7,964 |
Senior unsecured notes | Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 8,423 | 7,530 |
Senior unsecured notes | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 0 | 0 |
Senior unsecured notes | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 8,423 | 7,530 |
Senior unsecured notes | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | $ 0 | $ 0 |
Fair Value Measurement - Equity
Fair Value Measurement - Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Carry Value | $ 270 | $ 245 |
Upward adjustments | 17 | 7 |
Downward adjustments | (6) | $ (3) |
Cumulative upward adjustments | 205 | |
Cumulative downward adjustments | $ (14) |
Regulatory and Capital Adequa_3
Regulatory and Capital Adequacy (Details) - Basel III $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 0.025 | 0.025 |
Total risk-based capital | ||
Actual | $ 15,464 | $ 14,253 |
Actual (percent) | 0.149 | 0.155 |
Minimum for capital adequacy purposes | $ 8,277 | $ 7,369 |
Minimum for capital adequacy purposes (percent) | 0.080 | 0.080 |
Tier 1 risk-based capital | ||
Actual | $ 13,334 | $ 13,026 |
Actual (percent) | 0.129 | 0.141 |
Minimum for capital adequacy purposes | $ 6,208 | $ 5,527 |
Minimum for capital adequacy purposes (percent) | 0.060 | 0.060 |
Tier 1 leverage | ||
Actual | $ 13,334 | $ 13,026 |
Actual (percent) | 0.117 | 0.127 |
Minimum for capital adequacy purposes | $ 4,563 | $ 4,096 |
Minimum for capital adequacy purposes (percent) | 0.040 | 0.040 |
Common equity Tier 1 capital | ||
Actual | $ 12,600 | $ 12,292 |
Actual (percent) | 0.122 | 0.133 |
Minimum for capital adequacy purposes | $ 4,656 | $ 4,145 |
Minimum for capital adequacy purposes (percent) | 0.045 | 0.045 |
Synchrony Bank | ||
Total risk-based capital | ||
Actual | $ 14,943 | $ 13,860 |
Actual (percent) | 0.153 | 0.161 |
Minimum for capital adequacy purposes | $ 7,822 | $ 6,881 |
Minimum for capital adequacy purposes (percent) | 0.080 | 0.080 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 9,778 | $ 8,601 |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.100 | 0.100 |
Tier 1 risk-based capital | ||
Actual | $ 12,880 | $ 12,714 |
Actual (percent) | 0.132 | 0.148 |
Minimum for capital adequacy purposes | $ 5,867 | $ 5,161 |
Minimum for capital adequacy purposes (percent) | 0.060 | 0.060 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 7,822 | $ 6,881 |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.080 | 0.080 |
Tier 1 leverage | ||
Actual | $ 12,880 | $ 12,714 |
Actual (percent) | 0.120 | 0.133 |
Minimum for capital adequacy purposes | $ 4,302 | $ 3,812 |
Minimum for capital adequacy purposes (percent) | 0.040 | 0.040 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 5,377 | $ 4,765 |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.050 | 0.050 |
Common equity Tier 1 capital | ||
Actual | $ 12,880 | $ 12,714 |
Actual (percent) | 0.132 | 0.148 |
Minimum for capital adequacy purposes | $ 4,400 | $ 3,870 |
Minimum for capital adequacy purposes (percent) | 0.045 | 0.045 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 6,356 | $ 5,591 |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.065 | 0.065 |
Employee Benefit Plans- Narrati
Employee Benefit Plans- Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employer contribution, percent of eligible compensation | 3% | ||
Employer matching contribution of eligible compensation | 4% | ||
Defined Contribution Plan, Cost | $ 88 | $ 80 | $ 69 |
Health and Welfare Benefits, Cost | 134 | 114 | 111 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Cost | 88 | 80 | $ 69 |
General Electric | Other Liabilities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Reimbursement obligations | $ 171 | $ 163 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 2,238 | $ 3,016 | $ 4,221 |
Preferred stock dividends | (42) | (42) | (42) |
Net earnings available to common stockholders | $ 2,196 | $ 2,974 | $ 4,179 |
Weighted average common shares outstanding, basic (in shares) | 421.2 | 480.4 | 564.6 |
Effect of dilutive securities (in shares) | 2.3 | 3 | 4.7 |
Weighted average common shares outstanding, dilutive (in shares) | 423.5 | 483.4 | 569.3 |
Earnings per basic common share (in usd per share) | $ 5.21 | $ 6.19 | $ 7.40 |
Earnings per diluted common share (in usd per share) | $ 5.19 | $ 6.15 | $ 7.34 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 4 | 3 | 1 |
Equity and Other Stock Relate_3
Equity and Other Stock Related Information Equity and Other Stock Related Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Preferred stock shares outstanding (in shares) | 750,000 | 750,000 | |
Preferred stock, par share value $0.001 per share; 750,000 shares authorized; 750,000 shares issued and outstanding at both December 31, 2023 and 2022 and aggregate liquidation preference of $750 at both December 31, 2023 and 2022 | $ 734 | $ 734 | |
Common Stock, Dividends, Per Share, Declared | $ 0.96 | $ 0.90 | $ 0.88 |
Dividends, Common Stock, Cash | $ 406 | $ 434 | $ 500 |
Preferred Stock, Dividends Per Share, Declared | $ 56.24 | $ 56.24 | $ 56.24 |
Dividends, Preferred Stock, Cash | $ 42 | $ 42 | $ 42 |
Treasury Stock, Shares, Acquired | 33,600,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 1,112 | 3,320 | $ 2,876 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 600 | ||
Performance Shares | |||
Class of Stock [Line Items] | |||
Award vesting period | 3 years | ||
Total shareholder return modifier | 20% | ||
Performance Shares | Minimum | |||
Class of Stock [Line Items] | |||
Award vesting rights, percentage | 0% | ||
Performance Shares | Maximum | |||
Class of Stock [Line Items] | |||
Award vesting rights, percentage | 150% | ||
2014 Long-Term Incentive Plan [Member] | |||
Class of Stock [Line Items] | |||
Shares of common stock available for grant | 35,600,000 | ||
Unrecognized compensation cost related to non-vested RSUs and Options | $ 101 | ||
Weighted average amortization period | 1 year 10 months 24 days | ||
2014 Long-Term Incentive Plan [Member] | Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
RSUs and PSUs issued and outstanding (in shares) | 3,500,000 | ||
2014 Long-Term Incentive Plan [Member] | Restricted Stock Units (RSUs) | Minimum | |||
Class of Stock [Line Items] | |||
Award vesting period | 3 years | ||
2014 Long-Term Incentive Plan [Member] | Employee Stock Option | |||
Class of Stock [Line Items] | |||
Stock options issued and outstanding | 4,400,000 | ||
2014 Long-Term Incentive Plan [Member] | Performance Shares | |||
Class of Stock [Line Items] | |||
RSUs and PSUs issued and outstanding (in shares) | 2,400,000 | ||
2014 Long-Term Incentive Plan [Member] | Restricted Stock | |||
Class of Stock [Line Items] | |||
RSUs and PSUs issued and outstanding (in shares) | 5,900,000 | ||
January 2021 Share Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | ||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||
Preferred stock shares outstanding (in shares) | 750,000 | ||
Preferred stock, par share value $0.001 per share; 750,000 shares authorized; 750,000 shares issued and outstanding at both December 31, 2023 and 2022 and aggregate liquidation preference of $750 at both December 31, 2023 and 2022 | $ 734 | $ 734 |
Income Taxes Income Taxes- Earn
Income Taxes Income Taxes- Earnings Before Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Before Provision For Income Taxes | |||
U.S. | $ 2,873 | $ 3,947 | $ 5,483 |
Non-U.S. | 31 | 15 | 20 |
Earnings before provision for income taxes | $ 2,904 | $ 3,962 | $ 5,503 |
Income Taxes- Significant Compo
Income Taxes- Significant Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision for income taxes | |||
U.S. Federal | $ 943 | $ 1,145 | $ 895 |
U.S. state and local | 171 | 217 | 163 |
Non-U.S. | 10 | 5 | 5 |
Total current provision for income taxes | 1,124 | 1,367 | 1,063 |
Deferred provision (benefit) for income taxes | |||
U.S. Federal | (384) | (352) | 180 |
U.S. state and local | (73) | (71) | 40 |
Non-U.S. | (1) | 2 | (1) |
Deferred provision (benefit) for income taxes | (458) | (421) | 219 |
Total provision for income taxes | $ 666 | $ 946 | $ 1,282 |
Income Taxes- Effective Income
Income Taxes- Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
U.S. state and local income taxes, net of federal benefit | 3.50% | 3.60% | 3.40% |
All other, net | (1.60%) | (0.70%) | (1.10%) |
Effective tax rate | 22.90% | 23.90% | 23.30% |
Income Taxes- Deferred Tax Asse
Income Taxes- Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Allowance for credit losses | $ 2,626 | $ 2,366 |
Compensation and employee benefits | 149 | 128 |
Other assets | 166 | 193 |
Total deferred income tax assets before valuation allowance | 2,941 | 2,687 |
Valuation allowance | (18) | (13) |
Total deferred income tax assets | 2,923 | 2,674 |
Liabilities | ||
Original issue discount | (365) | (504) |
Goodwill and identifiable intangibles(a) | (198) | (193) |
Other liabilities(a) | (165) | (149) |
Total deferred income tax liabilities | (728) | (846) |
Net deferred income tax assets | $ 2,195 | $ 1,828 |
Income Taxes- Unrecognized Tax
Income Taxes- Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 267 | $ 274 |
Additions: | ||
Tax positions of the current year | 40 | 97 |
Tax positions of prior years | 2 | 1 |
Reductions: | ||
Prior year tax positions | (47) | (73) |
Settlements with tax authorities | (1) | 0 |
Expiration of the statute of limitation | (31) | (32) |
Ending balance | 230 | 267 |
Portion of balance that, if recognized, would impact the effective income tax rate | $ 182 | $ 177 |
Income Taxes- Narrative (Detail
Income Taxes- Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Unrecognized Tax Benefits [Line Items] | |||
Decrease in unrecognized tax benefits is reasonably possible | $ 39 | ||
Unrecognized tax benefits that would impact effective tax rate | 31 | ||
Unrecognized tax benefits | 230 | $ 267 | $ 274 |
State and Local Jurisdiction | |||
Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits | $ 9 | $ 16 |
Parent Company Financial Info_3
Parent Company Financial Information- Additional Information (Details) $ in Billions | Dec. 31, 2023 USD ($) |
Subsidiaries | |
Condensed Financial Statements, Captions [Line Items] | |
Restricted Assets | $ 12.4 |
Parent Company Financial Info_4
Parent Company Financial Information- Condensed Statements of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest on cash and debt securities | $ 808 | $ 265 | $ 43 |
Total interest income | 20,710 | 17,146 | 15,271 |
Interest on senior unsecured notes | 419 | 317 | 297 |
Total interest expense | 3,711 | 1,521 | 1,032 |
Net interest income | 16,999 | 15,625 | 14,239 |
Other income | 118 | 268 | 309 |
Earnings before provision for income taxes | 2,904 | 3,962 | 5,503 |
Income Tax Expense (Benefit) | 666 | 946 | 1,282 |
Net earnings | 2,238 | 3,016 | 4,221 |
Comprehensive income | 2,295 | 2,960 | 4,203 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income from subsidiaries | 355 | 134 | 67 |
Interest on cash and debt securities | 34 | 8 | 1 |
Total interest income | 389 | 142 | 68 |
Interest on senior unsecured notes | 335 | 279 | 264 |
Total interest expense | 335 | 279 | 264 |
Net interest income | 54 | (137) | (196) |
Dividends from bank subsidiaries | 1,450 | 3,150 | 2,600 |
Dividends from nonbank subsidiaries | 102 | 290 | 147 |
Other income | 135 | 122 | 327 |
Other expense | 202 | 177 | 292 |
Earnings before provision for income taxes | 1,539 | 3,248 | 2,586 |
Income Tax Expense (Benefit) | (16) | (46) | (26) |
Equity in undistributed net earnings (loss) of subsidiaries | 683 | (278) | 1,609 |
Net earnings | 2,238 | 3,016 | 4,221 |
Comprehensive income | $ 2,295 | $ 2,960 | $ 4,203 |
Parent Company Financial Info_5
Parent Company Financial Information- Condensed Statements of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash and equivalents | $ 14,259 | $ 10,294 | $ 8,337 | |
Debt securities | 3,799 | 4,879 | ||
Goodwill | 1,018 | 1,105 | 1,105 | |
Other assets | 4,915 | 4,601 | ||
Total assets | 117,479 | 104,564 | ||
Liabilities and Equity | ||||
Accrued expenses and other liabilities | 6,334 | 5,765 | ||
Total liabilities | 103,576 | 91,691 | ||
Equity: | ||||
Total equity | 13,903 | 12,873 | $ 13,655 | $ 12,701 |
Total liabilities and equity | 117,479 | 104,564 | ||
Senior Notes | ||||
Liabilities and Equity | ||||
Senior unsecured notes | 7,974 | 7,964 | ||
Parent Company | ||||
Assets | ||||
Cash and equivalents | 3,214 | 3,287 | ||
Debt securities | 49 | 60 | ||
Investments in amounts due from subsidiaries | 18,285 | 16,338 | ||
Goodwill | 25 | 59 | ||
Other assets | 337 | 326 | ||
Total assets | 21,910 | 20,070 | ||
Liabilities and Equity | ||||
Accrued expenses and other liabilities | 470 | 437 | ||
Total liabilities | 8,007 | 7,197 | ||
Equity: | ||||
Total equity | 13,903 | 12,873 | ||
Total liabilities and equity | 21,910 | 20,070 | ||
Parent Company | Related Party | ||||
Liabilities and Equity | ||||
Other liabilities | 316 | 287 | ||
Parent Company | Senior Notes | ||||
Liabilities and Equity | ||||
Senior unsecured notes | $ 7,221 | $ 6,473 |
Parent Company Financial Info_6
Parent Company Financial Information- Condensed Statements of Financial Position- Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Investment in amounts due from bank subsidiaries | $ 14 | $ 12.4 |
Parent Company Financial Info_7
Parent Company Financial Information- Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows - operating activities | |||
Net earnings | $ 2,238 | $ 3,016 | $ 4,221 |
Adjustments to reconcile net earnings to cash provided from operating activities | |||
Deferred income taxes | (458) | (421) | 219 |
(Increase) decrease in other assets | 7 | 21 | 37 |
Increase (decrease) in accrued expenses and other liabilities | 293 | (93) | 560 |
All other operating activities | 735 | 574 | 522 |
Cash provided from (used for) operating activities | 8,593 | 6,694 | 7,099 |
Cash flows - investing activities | |||
Purchases of debt securities | (3,623) | (3,866) | (2,990) |
All other investing activities | (722) | (549) | (549) |
Cash provided from (used for) investing activities | (14,234) | (10,234) | (4,814) |
Cash flows - financing activities | |||
Proceeds from issuance of senior and subordinated unsecured notes | 740 | 2,235 | 744 |
Maturities and repayment of senior and subordinated unsecured notes | 0 | (1,500) | (1,500) |
Dividends paid on preferred stock | (42) | (42) | (42) |
Purchases of treasury stock | (1,112) | (3,320) | (2,876) |
Dividends paid on common stock | (406) | (434) | (500) |
All other financing activites | (22) | (44) | 29 |
Cash provided from (used for) financing activities | 9,632 | 5,284 | (5,204) |
Increase (decrease) in cash and equivalents, including restricted amounts | 3,991 | 1,744 | (2,919) |
Cash and equivalents, including restricted amounts, at beginning of year | 10,430 | 8,686 | 11,605 |
Total cash and equivalents, including restricted and held for sale amounts, at end of year | 10,430 | 8,686 | |
Proceeds from issuance of securitized debt | 2,294 | 2,720 | 2,361 |
Maturities and repayment of securitized debt | (1,257) | (3,784) | (2,886) |
Parent Company | |||
Cash flows - operating activities | |||
Net earnings | 2,238 | 3,016 | 4,221 |
Adjustments to reconcile net earnings to cash provided from operating activities | |||
Deferred income taxes | 9 | (1) | 34 |
(Increase) decrease in other assets | 19 | (28) | (117) |
Increase (decrease) in accrued expenses and other liabilities | 21 | (4) | 26 |
Equity in undistributed net (earnings) loss of subsidiaries | (683) | 278 | (1,609) |
All other operating activities | 101 | 28 | 106 |
Cash provided from (used for) operating activities | 1,705 | 3,289 | 2,661 |
Cash flows - investing activities | |||
Net (increase) decrease in investments in and amounts due from subsidiaries | (898) | 265 | 645 |
Maturity and sales of debt securities | 14 | 21 | 44 |
Purchases of debt securities | 0 | 0 | (5) |
All other investing activities | (45) | (6) | (132) |
Cash provided from (used for) investing activities | (929) | 280 | 552 |
Cash flows - financing activities | |||
Proceeds from issuance of senior and subordinated unsecured notes | 740 | 745 | 744 |
Maturities and repayment of senior and subordinated unsecured notes | 0 | (750) | (750) |
Dividends paid on preferred stock | (42) | (42) | (42) |
Purchases of treasury stock | (1,112) | (3,320) | (2,876) |
Dividends paid on common stock | (406) | (434) | (500) |
Increase (decrease) in amounts due to subsidiaries | (7) | 14 | 4 |
All other financing activites | (22) | (41) | 32 |
Cash provided from (used for) financing activities | (849) | (3,828) | (3,388) |
Increase (decrease) in cash and equivalents, including restricted amounts | (73) | (259) | (175) |
Cash and equivalents, including restricted amounts, at beginning of year | 3,287 | 3,546 | 3,721 |
Total cash and equivalents, including restricted and held for sale amounts, at end of year | $ 3,214 | $ 3,287 | $ 3,546 |