Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | SPRINGLEAF FINANCE CORP | |
Entity Central Index Key | 25,598 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 397 | $ 240 |
Investment securities | 613 | 582 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $2.9 billion in 2017 and 2016) | 4,715 | 4,804 |
Real estate loans | 139 | 144 |
Retail sales finance | 9 | 11 |
Net finance receivables | 4,863 | 4,959 |
Unearned insurance premium and claim reserves | (198) | (212) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $85 million in 2017 and $94 million in 2016) | (196) | (204) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 4,469 | 4,543 |
Finance receivables held for sale | 148 | 153 |
Notes receivable from parent and affiliates | 3,803 | 3,723 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $173 million in 2017 and $211 million in 2016) | 192 | 227 |
Other assets | 244 | 251 |
Total assets | 9,866 | 9,719 |
Liabilities and Shareholder’s Equity | ||
Long-term debt (includes debt of consolidated VIEs of $2.6 billion in 2017 and $2.7 billion in 2016) | 6,823 | 6,837 |
Insurance claims and policyholder liabilities | 270 | 248 |
Deferred and accrued taxes | 100 | 106 |
Other liabilities (includes other liabilities of consolidated VIEs of $5 million in 2017 and 2016) | 302 | 185 |
Total liabilities | 7,495 | 7,376 |
Commitments and contingent liabilities (Note 14) | ||
Shareholder’s equity: | ||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at March 31, 2017 and December 31, 2016 | 5 | 5 |
Additional paid-in capital | 799 | 799 |
Accumulated other comprehensive loss | (6) | (7) |
Retained earnings | 1,573 | 1,546 |
Total shareholder’s equity | 2,371 | 2,343 |
Total liabilities and shareholder’s equity | $ 9,866 | $ 9,719 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Personal loans | $ 4,715 | $ 4,804 |
Allowance for finance receivable losses | 196 | 204 |
Restricted cash and restricted cash equivalents | 192 | 227 |
Long-term debt (includes debt of consolidated VIEs of $2.6 billion in 2017 and $2.7 billion in 2016) | 6,823 | 6,837 |
Other liabilities (includes other liabilities of consolidated VIEs of $5 million in 2017 and 2016) | $ 302 | $ 185 |
Common Stock, par value (dollars per share) | $ 0.5 | $ 0.5 |
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common shares, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common shares, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 85 | $ 94 |
Restricted cash and restricted cash equivalents | 173 | 211 |
Long-term debt (includes debt of consolidated VIEs of $2.6 billion in 2017 and $2.7 billion in 2016) | 2,600 | 2,700 |
Other liabilities (includes other liabilities of consolidated VIEs of $5 million in 2017 and 2016) | 5 | 5 |
Personal loans | ||
Allowance for finance receivable losses | 176 | 184 |
Personal loans | Consolidated VIEs | ||
Personal loans | $ 2,900 | $ 2,900 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
Finance charges | $ 294 | $ 385 |
Finance receivables held for sale originated as held for investment | 3 | 46 |
Total interest income | 297 | 431 |
Interest expense | 127 | 156 |
Net interest income | 170 | 275 |
Provision for finance receivable losses | 71 | 91 |
Net interest income after provision for finance receivable losses | 99 | 184 |
Other revenues: | ||
Insurance | 37 | 39 |
Investment | 6 | 6 |
Interest income on notes receivable from parent and affiliates | 59 | 51 |
Net gain on sale of SpringCastle interests | 0 | 167 |
Other | 4 | (7) |
Total other revenues | 106 | 256 |
Operating expenses: | ||
Salaries and benefits | 79 | 97 |
Other operating expenses | 67 | 77 |
Insurance policy benefits and claims | 16 | 17 |
Total other expenses | 162 | 191 |
Income before income taxes | 43 | 249 |
Income taxes | 16 | 85 |
Net income | 27 | 164 |
Net income attributable to non-controlling interests | 0 | 28 |
Net income attributable to Springleaf Finance Corporation | $ 27 | $ 136 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 27 | $ 164 |
Other comprehensive income: | ||
Net change in unrealized gains on non-credit impaired available-for-sale securities | 3 | 12 |
Income tax effect: | ||
Net unrealized gains on non-credit impaired available-for-sale securities | (1) | (4) |
Other comprehensive income, net of tax, before reclassification adjustments | 2 | 8 |
Reclassification adjustments included in net income: | ||
Net realized gains on available-for-sale securities | (2) | (1) |
Income tax effect: | ||
Net realized gains on available-for-sale securities | 1 | 0 |
Reclassification adjustments included in net income, net of tax | (1) | (1) |
Other comprehensive income, net of tax | 1 | 7 |
Comprehensive income | 28 | 171 |
Comprehensive income attributable to non-controlling interests | 0 | 28 |
Comprehensive income attributable to Springleaf Finance Corporation | $ 28 | $ 143 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholder’s Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Springleaf Finance Corporation Shareholder’s Equity | Non-controlling Interests |
Balance at beginning of period at Dec. 31, 2015 | $ 2,032 | $ 5 | $ 789 | $ (24) | $ 1,341 | $ 2,111 | $ (79) |
Increase (Decrease) in Shareholders' Equity | |||||||
Capital contribution from parent | 10 | 10 | |||||
Share-based compensation expense, net of forfeitures | 1 | 1 | 1 | ||||
Excess tax benefit from share-based compensation | 1 | 1 | 1 | ||||
Withholding tax on share-based compensation | (1) | (1) | (1) | ||||
Change in non-controlling interests: | |||||||
Distributions declared to joint venture partners | (18) | (18) | |||||
Sale of equity interests in SpringCastle joint venture | 69 | 69 | |||||
Other comprehensive income | 7 | 7 | 7 | ||||
Net income | 164 | 136 | 136 | 28 | |||
Balance at end of period at Mar. 31, 2016 | 2,265 | 5 | 800 | (17) | 1,477 | 2,265 | 0 |
Balance at beginning of period at Dec. 31, 2016 | 2,343 | 5 | 799 | (7) | 1,546 | 2,343 | |
Change in non-controlling interests: | |||||||
Other comprehensive income | 1 | 1 | 1 | ||||
Net income | 27 | 27 | 27 | 0 | |||
Balance at end of period at Mar. 31, 2017 | $ 2,371 | $ 5 | $ 799 | $ (6) | $ 1,573 | $ 2,371 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income | $ 27 | $ 164 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 71 | 91 |
Depreciation and amortization | 39 | 19 |
Deferred income tax charge (benefit) | (5) | 8 |
Share-based compensation expense, net of forfeitures | 0 | 1 |
Net gain on sale of SpringCastle interests | 0 | (167) |
Other | 0 | 6 |
Cash flows due to changes in: | ||
Other assets and other liabilities | 98 | 37 |
Insurance claims and policyholder liabilities | 9 | (7) |
Taxes receivable and payable | (1) | 47 |
Accrued interest and finance charges | (5) | 20 |
Other, net | 0 | 2 |
Net cash provided by operating activities | 233 | 221 |
Cash flows from investing activities | ||
Net principal collections (originations) of finance receivables held for investment and held for sale | 7 | (30) |
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | 26 |
Cash advances on intercompany notes receivable | (211) | (112) |
Proceeds from repayments of principal and assignment of intercompany notes receivable | 138 | 127 |
Available-for-sale securities purchased | (72) | (92) |
Trading and other securities purchased | 0 | (1) |
Available-for-sale securities called, sold, and matured | 63 | 78 |
Trading and other securities called, sold, and matured | 0 | 10 |
Other, net | 3 | 6 |
Net cash provided by (used for) investing activities | (72) | 12 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 366 | 295 |
Proceeds from intercompany note payable | 0 | 370 |
Repayments of long-term debt | (405) | (916) |
Distributions to joint venture partners | 0 | (18) |
Excess tax benefit from share-based compensation | 0 | 1 |
Withholding tax on share-based compensation | 0 | (1) |
Capital contribution from parent | 0 | 10 |
Net cash used for financing activities | (39) | (259) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 122 | (26) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 467 | 616 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 589 | 590 |
Supplemental cash flow information | ||
Cash and cash equivalents at end of period | 397 | 365 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 467 | 616 |
Supplemental non-cash activities | ||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 1,608 |
Transfer of finance receivables to real estate owned | 2 | 2 |
Net unsettled investment security purchases | $ (19) | $ 0 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Springleaf Finance Corporation is referred to in this report as “SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our.” SFC is a wholly owned subsidiary of SFI. SFI is a wholly owned subsidiary of OMH. At March 31, 2017 , the Initial Stockholder owned approximately 57% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with the SpringCastle Joint Venture, in which we owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2017 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 16 , we have revised our prior period segment disclosures. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We have elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We have concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have adopted this ASU as of January 1, 2017 on a prospective basis. We have concluded that this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09. ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. We believe that the adoption of this ASU will not have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases . The ASU requires lessees to recognize a right-to-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We believe that the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Revenue Recognition and Derivatives and Hedging In May of 2016, the FASB issued ASU 2016-11, Revenue Recognition and Derivatives and Hedging , to rescind certain SEC guidance in Topic 605 and Topic 815 as ASU 2014-09 becomes effective. Our adoption of ASU 2014-09 will bring us into alignment with this ASU. We believe that the adoption of this ASU will not have a material effect on our consolidated financial statements. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will have a material effect on our consolidated financial statements and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present separately the service cost component on the income statement. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the three months ended March 31, 2017 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, real estate loans, and retail sales finance as defined below: • Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of three to five years . At March 31, 2017 , we had over 893,000 personal loans representing $4.7 billion of net finance receivables, compared to 928,000 personal loans totaling $4.8 billion at December 31, 2016 . • Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months , and are considered non-conforming. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased originating real estate loans in January of 2012, our real estate loans have been in a liquidating status. • Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months . Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is in a liquidating status. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Gross receivables * $ 5,293 $ 137 $ 10 $ 5,440 Unearned finance charges and points and fees (681 ) 1 (1 ) (681 ) Accrued finance charges 60 1 — 61 Deferred origination costs 43 — — 43 Total $ 4,715 $ 139 $ 9 $ 4,863 December 31, 2016 Gross receivables * $ 5,449 $ 142 $ 12 $ 5,603 Unearned finance charges and points and fees (754 ) 1 (1 ) (754 ) Accrued finance charges 63 1 — 64 Deferred origination costs 46 — — 46 Total $ 4,804 $ 144 $ 11 $ 4,959 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. At March 31, 2017 and December 31, 2016, unused lines of credit extended to customers by the Company were immaterial. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are 60 days past due, we consider them delinquent and transfer collections management of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Net finance receivables: Performing Current $ 4,525 $ 102 $ 9 $ 4,636 30-59 days past due 57 8 — 65 60-89 days past due 39 4 — 43 Total performing 4,621 114 9 4,744 Nonperforming 90-179 days past due 91 5 — 96 180 days or more past due 3 20 — 23 Total nonperforming 94 25 — 119 Total $ 4,715 $ 139 $ 9 $ 4,863 December 31, 2016 Net finance receivables: Performing Current $ 4,579 $ 102 $ 11 $ 4,692 30-59 days past due 64 9 — 73 60-89 days past due 45 4 — 49 Total performing 4,688 115 11 4,814 Nonperforming 90-179 days past due 112 8 — 120 180 days or more past due 4 21 — 25 Total nonperforming 116 29 — 145 Total $ 4,804 $ 144 $ 11 $ 4,959 We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at March 31, 2017 and at December 31, 2016 were immaterial . Our personal loans and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased in connection with the Fortress Acquisition. Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold the SpringCastle Portfolio in connection with the SpringCastle Interests Sale. We report the carrying amount (which initially was the fair value) of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below. At March 31, 2017 and December 31, 2016 , finance receivables held for sale totaled $148 million and $153 million , respectively, which include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below. See Note 5 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired FA Loans held for investment and held for sale were as follows: (dollars in millions) March 31, December 31, FA Loans (a) Carrying amount, net of allowance $ 68 $ 70 Outstanding balance (b) 105 107 Allowance for purchased credit impaired finance receivable losses 8 8 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, 2016 Carrying amount $ 53 $ 54 Outstanding balance 81 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. The allowance for purchased credit impaired finance receivable losses at March 31, 2017 and December 31, 2016 , reflected the carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows. Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) SCP Loans FA Loans Total Three Months Ended March 31, 2017 Balance at beginning of period $ — $ 60 $ 60 Accretion (a) — (1 ) (1 ) Balance at end of period $ — $ 59 $ 59 Three Months Ended March 31, 2016 Balance at beginning of period $ 375 $ 66 $ 441 Accretion (a) (16 ) (2 ) (18 ) Reclassifications from nonaccretable difference (b) — 10 10 Transfer due to finance receivables sold (359 ) — (359 ) Balance at end of period $ — $ 74 $ 74 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were immaterial. (b) Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. TDR FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total March 31, 2017 TDR gross finance receivables $ 49 $ 133 $ 182 TDR net finance receivables 49 134 183 Allowance for TDR finance receivable losses 20 11 31 December 31, 2016 TDR gross finance receivables $ 47 $ 133 $ 180 TDR net finance receivables 47 134 181 Allowance for TDR finance receivable losses 20 11 31 * TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, TDR gross finance receivables $ 88 $ 89 TDR net finance receivables 88 90 As of March 31, 2017 , we had no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans * SpringCastle Portfolio Real Estate Loans * Total Three Months Ended March 31, 2017 TDR average net receivables $ 48 $ — $ 134 $ 182 TDR finance charges recognized 1 — 2 3 Three Months Ended March 31, 2016 TDR average net receivables $ 32 $ 11 $ 201 $ 244 TDR finance charges recognized 1 — 3 4 * TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Loans Total Three Months Ended March 31, 2017 TDR average net receivables $ — $ 89 $ 89 TDR finance charges recognized — 1 1 Three Months Ended March 31, 2016 TDR average net receivables $ 2 $ 92 $ 94 TDR finance charges recognized — 1 1 Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Three Months Ended March 31, 2017 Pre-modification TDR net finance receivables $ 15 $ — $ 3 $ 18 Post-modification TDR net finance receivables: Rate reduction $ 10 $ — $ 3 $ 13 Other (b) 4 — — 4 Total post-modification TDR net finance receivables $ 14 $ — $ 3 $ 17 Number of TDR accounts 2,740 — 64 2,804 Three Months Ended March 31, 2016 Pre-modification TDR net finance receivables $ 9 $ 1 $ 4 $ 14 Post-modification TDR net finance receivables: Rate reduction $ 5 $ 1 $ 3 $ 9 Other (b) 3 — 1 4 Total post-modification TDR net finance receivables $ 8 $ 1 $ 4 $ 13 Number of TDR accounts 1,782 157 89 2,028 (a) TDR finance receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include forgiveness of principal or interest. Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Three Months Ended March 31, 2017 TDR net finance receivables (b) $ 3 $ — $ 1 $ 4 Number of TDR accounts 585 — 6 591 Three Months Ended March 31, 2016 TDR net finance receivables (b) (c) $ 1 $ — $ 1 $ 2 Number of TDR accounts 355 19 20 394 (a) TDR real estate loans held for sale included in the table above that defaulted during the previous 12-month period were less than $1 million for the three months ended March 31, 2017 and $1 million for the three months ended March 31, 2016 . (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the three months ended March 31, 2016 that defaulted during the previous 12-month period were less than $ 1 million and, therefore, are not quantified in the combined table above. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal SpringCastle Portfolio Real Estate Loans Retail Consolidated Total Three Months Ended March 31, 2017 Balance at beginning of period $ 184 $ — $ 19 $ 1 $ 204 Provision for finance receivable losses 70 — 1 — 71 Charge-offs (99 ) — (1 ) — (100 ) Recoveries 21 — — — 21 Balance at end of period $ 176 $ — $ 19 $ 1 $ 196 Three Months Ended March 31, 2016 Balance at beginning of period $ 173 $ 4 $ 46 $ 1 $ 224 Provision for finance receivable losses 73 14 4 — 91 Charge-offs (89 ) (17 ) (2 ) (1 ) (109 ) Recoveries 11 3 1 — 15 Other * — (4 ) — — (4 ) Balance at end of period $ 168 $ — $ 49 $ — $ 217 * Other consists of the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the SpringCastle Interests Sale. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 156 $ — $ 1 $ 157 Purchased credit impaired finance receivables — 8 — 8 TDR finance receivables 20 11 — 31 Total $ 176 $ 19 $ 1 $ 196 Finance receivables: Collectively evaluated for impairment $ 4,666 $ 70 $ 9 $ 4,745 Purchased credit impaired finance receivables — 23 — 23 TDR finance receivables 49 46 — 95 Total $ 4,715 $ 139 $ 9 $ 4,863 Allowance for finance receivable losses as a percentage of finance receivables 3.74 % 13.70 % 4.72 % 4.03 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ 1 $ 165 Purchased credit impaired finance receivables — 8 — 8 TDR finance receivables 20 11 — 31 Total $ 184 $ 19 $ 1 $ 204 Finance receivables: Collectively evaluated for impairment $ 4,757 $ 76 $ 11 $ 4,844 Purchased credit impaired finance receivables — 24 — 24 TDR finance receivables 47 44 — 91 Total $ 4,804 $ 144 $ 11 $ 4,959 Allowance for finance receivable losses as a percentage of finance receivables 3.84 % 13.31 % 4.42 % 4.12 % |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 3 Months Ended |
Mar. 31, 2017 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $148 million at March 31, 2017 and $153 million at December 31, 2016 , which are carried at the lower of cost or fair value and consist entirely of real estate loans. At March 31, 2017 and December 31, 2016 , the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. SPRINGCASTLE PORTFOLIO During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. We simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $ 167 million . We did not have any other material transfer activity to or from finance receivables held for sale during the three months ended March 31, 2017 and 2016 . |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 19 $ — $ — $ 19 Obligations of states, municipalities, and political subdivisions 74 — (1 ) 73 Non-U.S. government and government sponsored entities 3 — — 3 Corporate debt 372 3 (4 ) 371 Mortgage-backed, asset-backed, and collateralized: RMBS 40 — — 40 CMBS 32 — — 32 CDO/ABS 64 — — 64 Total bonds 604 3 (5 ) 602 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 611 $ 3 $ (5 ) $ 609 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 13 $ — $ — $ 13 Obligations of states, municipalities, and political subdivisions 83 — (1 ) 82 Non-U.S. government and government sponsored entities 5 — — 5 Corporate debt 356 2 (5 ) 353 Mortgage-backed, asset-backed, and collateralized: RMBS 39 — — 39 CMBS 33 — — 33 CDO/ABS 46 — — 46 Total bonds 575 2 (6 ) 571 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 582 $ 2 $ (6 ) $ 578 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at March 31, 2017 and December 31, 2016 , which is classified as a restricted investment and carried at cost. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses March 31, 2017 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 30 — 8 (1 ) 38 (1 ) Non-U.S. government and government sponsored entities — — 2 — 2 — Corporate debt 151 (3 ) 19 (1 ) 170 (4 ) RMBS 20 — 12 — 32 — CMBS 16 — — — 16 — CDO/ABS 33 — — — 33 — Total bonds 259 (3 ) 41 (2 ) 300 (5 ) Preferred stock — — 6 — 6 — Total $ 259 $ (3 ) $ 47 $ (2 ) $ 306 $ (5 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 57 (1 ) 2 — 59 (1 ) Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 171 (5 ) 5 — 176 (5 ) RMBS 33 — — — 33 — CMBS 22 — — — 22 — CDO/ABS 25 — — — 25 — Total bonds 320 (6 ) 7 — 327 (6 ) Preferred stock — — 6 — 6 — Total $ 320 $ (6 ) $ 13 $ — $ 333 $ (6 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. On a lot basis, we had 187 and 217 investment securities in an unrealized loss position at March 31, 2017 and December 31, 2016, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at March 31, 2017 , we had no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential impairments. During the three months ended March 31, 2017 and 2016 , we did not recognize any other-than-temporary impairment credit losses on our available-for-sale securities in investment revenues. During the three months ended March 31, 2017 and 2016 , there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities. The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Proceeds from sales and redemptions $ 51 $ 70 Net realized gains * $ 2 $ 1 * Realized losses on available-for-sale securities sold or redeemed during the three months ended March 31, 2017 and 2016 were less than $1 million and, therefore, are not quantified in the table above. Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 51 $ 51 Due after 1 year through 5 years 234 236 Due after 5 years through 10 years 44 43 Due after 10 years 137 138 Mortgage-backed, asset-backed, and collateralized securities 136 136 Total $ 602 $ 604 Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies. The fair value of securities on deposit with third parties totaled $11 million at March 31, 2017 and December 31, 2016 . TRADING AND OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) March 31, December 31, Fixed maturity other securities: Bonds Corporate debt $ 2 $ 2 Mortgage-backed, asset-backed, and collateralized: CMBS 1 1 Total $ 3 $ 3 Mark-to-market gains (losses) on trading and other securities held at March 31, 2017 and 2016 and realized gains (losses) on trading and other securities sold or redeemed during the 2017 and 2016 periods were less than $1 million for the three months ended March 31, 2017 and 2016 . Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016. |
Transactions with Affiliates of
Transactions with Affiliates of Fortress | 3 Months Ended |
Mar. 31, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Transactions with Affiliates of Fortress | Transactions with Affiliates of Fortress SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of less than $1 million for the three months ended March 31, 2017 and 2016 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services were less than $1 million for the three months ended March 31, 2017 and 2016 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. Related Party Transactions AFFILIATE LENDING Notes Receivable from Parent and Affiliates Note Receivable from SFI. SFC’s note receivable from SFI is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2017 and does not expect to demand payment from SFI in 2017. The note receivable from SFI totaled $337 million at March 31, 2017 and $285 million at December 31, 2016 . The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . Interest revenue on the note receivable from SFI totaled $5 million for the three months ended March 31, 2017 and 2016 , which we report in interest income on notes receivable from parent and affiliates. Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, CSI, SFC’s wholly owned subsidiary, entered into the Independence Demand Note, whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion . On November 12, 2015, Independence borrowed $3.4 billion under the Independence Demand Note. Under the Independence Demand Note, Independence was required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note was payable in full on December 31, 2019, and CSI could demand payment at any time prior to December 31, 2019. Independence could repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB was the lender’s cost of funds rate. Interest revenue on the note receivable from Independence totaled $46 million for the three months ended March 31, 2016 . On July 19, 2016, CSI, Independence, and OMFH entered into the Note Assignment pursuant to which CSI sold and assigned to OMFH, and OMFH purchased and assumed from CSI, an interest in and to CSI’s right to receive $150 million principal amount outstanding under the Independence Demand Note for a purchase price of $150 million . On July 20, 2016, OMFH paid the $150 million purchase price to CSI. In connection with the Note Assignment discussed above, Independence exchanged the Independence Demand Note for (i) the Cash Services Note issued to CSI with a maximum borrowing amount not to exceed $3.4 billion and (ii) the OMFH Note issued to OMFH with a maximum borrowing amount not to exceed $150 million . The Cash Services Note and the OMFH Note provide that no advances shall be made to Independence on or after December 31, 2019 and all principal and interest shall be payable in full on December 31, 2019, unless earlier payment is demanded by CSI or OMFH. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . At March 31, 2017 and December 31, 2016 , the note receivable from Independence relating to the Cash Services Note totaled $2.8 billion and $2.9 billion , respectively, which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Cash Services Note totaled $45 million for the three months ended March 31, 2017 , which we report in interest income on notes receivable from parent and affiliates. OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into the OneMain Demand Note with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. On August 12, 2016 and March 15, 2017, SFC amended the note to increase the maximum amount that may be advanced to $750 million and $1.3 billion , respectively. At March 31, 2017 and December 31, 2016 , the note receivable from OMFH totaled $638 million and $530 million , respectively, which included compounded interest due to SFC. Interest revenue on the note receivable from OMFH totaled $9 million for the three months ended March 31, 2017 , which we report in interest income on notes receivable from parent and affiliates. Receivables from Parent and Affiliates At March 31, 2017 and December 31, 2016 , receivables from parent and affiliates totaled $40 million . Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities and then settled under the tax sharing agreement, (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates, (iv) intercompany insurance premiums collected, and (v) the servicing fees and collections received on the legacy OneMain loans serviced by legacy Springleaf branches. Receivables from parent and affiliates at March 31, 2017 and December 31, 2016 are presented net of a payable to SFI of $6 million . Excluding this payable, receivables from parent and affiliates totaled $46 million at March 31, 2017 and December 31, 2016 . Note Payable to Affiliate On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . Interest expense on the note payable to OMFH was $4 million for the three months ended March 31, 2016 , which we report in interest expense. On March 15, 2017, OMFH amended the note to increase the maximum amount that may be advanced to $750 million . At March 31, 2017 and December 31, 2016 , no amounts were drawn under the note. Payables to Parent and Affiliates At March 31, 2017 and December 31, 2016 , payables to parent and affiliates totaled $45 million and $13 million , respectively. At March 31, 2017 and December 31, 2016 , SFC had net payables of $40 million and $12 million , respectively, to SGSC, a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At March 31, 2017 and December 31, 2016 , SFC also had a payable of $2 million and $1 million , respectively, to OCLI, a subsidiary of SFI, for internet lending referral fees charged to the branch network. See “Loan Referral Fees” below. Additionally, at March 31, 2017, SFC had a payable of $3 million to OMFH for servicing and collection fees of legacy Springleaf loans serviced by legacy OneMain branches. See “Loan Servicing Fees” below for further information. LOAN SALE TRANSACTIONS During the second quarter of 2016, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . OCLI continues to service these loans. During the three months ended March 31, 2017 , SFC recorded less than $1 million of service fee expenses. LOAN SERVICING FEES In connection with the combining of certain legacy OneMain branches with legacy Springleaf branches and vice versa, during the fourth quarter of 2016, SFC entered into an intercompany service agreement with OMFH relating to the servicing of loans when a legacy OneMain loan is serviced by a legacy Springleaf branch and vice versa. During the three months ended March 31, 2017, SFC recorded $3 million of service fee expenses for the legacy Springleaf loans serviced by legacy OneMain branches and $3 million of service fee income for the legacy OneMain loans serviced by legacy Springleaf branches. At March 31, 2017, SFC’s receivable from OMFH for the servicing fees and collections received on the legacy OneMain loans serviced by legacy Springleaf branches totaled $3 million , and SFC’s payable to OMFH for the servicing fees and collections received on the legacy Springleaf loans serviced by legacy OneMain branches totaled $3 million . LOAN REFERRAL FEES OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During the three months ended March 31, 2017 and 2016, SFC recorded $5 million and $3 million , respectively, of referral fee expense. SFC’s payable to OCLI for internet lending referral fees totaled $2 million at March 31, 2017 and $1 million at December 31, 2016. DEBT PURCHASES In March of 2017, OMAS, a subsidiary of OMFH, purchased $1 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $1 million . At the purchase dates, these notes had a carrying value of $1 million . In December of 2016, OMAS purchased $5 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $5 million . At the purchase dates, these notes had a carrying value of $5 million . These purchase transactions did not impact our condensed consolidated financial statements. CAPITAL CONTRIBUTIONS During the first quarter of 2016 , SFC received a capital contribution of $10 million to satisfy an interest payment required by the Junior Subordinated Debenture in respect of SFC’s junior subordinated debt. INTERCOMPANY AGREEMENTS On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI, collectively, the “Recipients.” Services Agreement SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During the three months ended March 31, 2017 and 2016 , SFC recorded $59 million and $67 million , respectively, of service fee expenses, which are included in other operating expenses. License Agreement The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During the three months ended March 31, 2017 and 2016 , SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses. Building Lease Agreement The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million , plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three months ended March 31, 2017 and 2016 , SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses. See Note 18 for information on the subsequent termination of the building lease agreement effective April 5, 2017 in contemplation of the merger of SFMC and SGSC on April 10, 2017 and the subsequent termination of the license agreement as a result of this merger. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Affiliates of Fortress SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of less than $1 million for the three months ended March 31, 2017 and 2016 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services were less than $1 million for the three months ended March 31, 2017 and 2016 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. Related Party Transactions AFFILIATE LENDING Notes Receivable from Parent and Affiliates Note Receivable from SFI. SFC’s note receivable from SFI is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2017 and does not expect to demand payment from SFI in 2017. The note receivable from SFI totaled $337 million at March 31, 2017 and $285 million at December 31, 2016 . The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . Interest revenue on the note receivable from SFI totaled $5 million for the three months ended March 31, 2017 and 2016 , which we report in interest income on notes receivable from parent and affiliates. Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, CSI, SFC’s wholly owned subsidiary, entered into the Independence Demand Note, whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion . On November 12, 2015, Independence borrowed $3.4 billion under the Independence Demand Note. Under the Independence Demand Note, Independence was required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note was payable in full on December 31, 2019, and CSI could demand payment at any time prior to December 31, 2019. Independence could repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB was the lender’s cost of funds rate. Interest revenue on the note receivable from Independence totaled $46 million for the three months ended March 31, 2016 . On July 19, 2016, CSI, Independence, and OMFH entered into the Note Assignment pursuant to which CSI sold and assigned to OMFH, and OMFH purchased and assumed from CSI, an interest in and to CSI’s right to receive $150 million principal amount outstanding under the Independence Demand Note for a purchase price of $150 million . On July 20, 2016, OMFH paid the $150 million purchase price to CSI. In connection with the Note Assignment discussed above, Independence exchanged the Independence Demand Note for (i) the Cash Services Note issued to CSI with a maximum borrowing amount not to exceed $3.4 billion and (ii) the OMFH Note issued to OMFH with a maximum borrowing amount not to exceed $150 million . The Cash Services Note and the OMFH Note provide that no advances shall be made to Independence on or after December 31, 2019 and all principal and interest shall be payable in full on December 31, 2019, unless earlier payment is demanded by CSI or OMFH. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . At March 31, 2017 and December 31, 2016 , the note receivable from Independence relating to the Cash Services Note totaled $2.8 billion and $2.9 billion , respectively, which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Cash Services Note totaled $45 million for the three months ended March 31, 2017 , which we report in interest income on notes receivable from parent and affiliates. OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into the OneMain Demand Note with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. On August 12, 2016 and March 15, 2017, SFC amended the note to increase the maximum amount that may be advanced to $750 million and $1.3 billion , respectively. At March 31, 2017 and December 31, 2016 , the note receivable from OMFH totaled $638 million and $530 million , respectively, which included compounded interest due to SFC. Interest revenue on the note receivable from OMFH totaled $9 million for the three months ended March 31, 2017 , which we report in interest income on notes receivable from parent and affiliates. Receivables from Parent and Affiliates At March 31, 2017 and December 31, 2016 , receivables from parent and affiliates totaled $40 million . Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities and then settled under the tax sharing agreement, (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates, (iv) intercompany insurance premiums collected, and (v) the servicing fees and collections received on the legacy OneMain loans serviced by legacy Springleaf branches. Receivables from parent and affiliates at March 31, 2017 and December 31, 2016 are presented net of a payable to SFI of $6 million . Excluding this payable, receivables from parent and affiliates totaled $46 million at March 31, 2017 and December 31, 2016 . Note Payable to Affiliate On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.28% at March 31, 2017 . Interest expense on the note payable to OMFH was $4 million for the three months ended March 31, 2016 , which we report in interest expense. On March 15, 2017, OMFH amended the note to increase the maximum amount that may be advanced to $750 million . At March 31, 2017 and December 31, 2016 , no amounts were drawn under the note. Payables to Parent and Affiliates At March 31, 2017 and December 31, 2016 , payables to parent and affiliates totaled $45 million and $13 million , respectively. At March 31, 2017 and December 31, 2016 , SFC had net payables of $40 million and $12 million , respectively, to SGSC, a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At March 31, 2017 and December 31, 2016 , SFC also had a payable of $2 million and $1 million , respectively, to OCLI, a subsidiary of SFI, for internet lending referral fees charged to the branch network. See “Loan Referral Fees” below. Additionally, at March 31, 2017, SFC had a payable of $3 million to OMFH for servicing and collection fees of legacy Springleaf loans serviced by legacy OneMain branches. See “Loan Servicing Fees” below for further information. LOAN SALE TRANSACTIONS During the second quarter of 2016, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . OCLI continues to service these loans. During the three months ended March 31, 2017 , SFC recorded less than $1 million of service fee expenses. LOAN SERVICING FEES In connection with the combining of certain legacy OneMain branches with legacy Springleaf branches and vice versa, during the fourth quarter of 2016, SFC entered into an intercompany service agreement with OMFH relating to the servicing of loans when a legacy OneMain loan is serviced by a legacy Springleaf branch and vice versa. During the three months ended March 31, 2017, SFC recorded $3 million of service fee expenses for the legacy Springleaf loans serviced by legacy OneMain branches and $3 million of service fee income for the legacy OneMain loans serviced by legacy Springleaf branches. At March 31, 2017, SFC’s receivable from OMFH for the servicing fees and collections received on the legacy OneMain loans serviced by legacy Springleaf branches totaled $3 million , and SFC’s payable to OMFH for the servicing fees and collections received on the legacy Springleaf loans serviced by legacy OneMain branches totaled $3 million . LOAN REFERRAL FEES OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During the three months ended March 31, 2017 and 2016, SFC recorded $5 million and $3 million , respectively, of referral fee expense. SFC’s payable to OCLI for internet lending referral fees totaled $2 million at March 31, 2017 and $1 million at December 31, 2016. DEBT PURCHASES In March of 2017, OMAS, a subsidiary of OMFH, purchased $1 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $1 million . At the purchase dates, these notes had a carrying value of $1 million . In December of 2016, OMAS purchased $5 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $5 million . At the purchase dates, these notes had a carrying value of $5 million . These purchase transactions did not impact our condensed consolidated financial statements. CAPITAL CONTRIBUTIONS During the first quarter of 2016 , SFC received a capital contribution of $10 million to satisfy an interest payment required by the Junior Subordinated Debenture in respect of SFC’s junior subordinated debt. INTERCOMPANY AGREEMENTS On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI, collectively, the “Recipients.” Services Agreement SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During the three months ended March 31, 2017 and 2016 , SFC recorded $59 million and $67 million , respectively, of service fee expenses, which are included in other operating expenses. License Agreement The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During the three months ended March 31, 2017 and 2016 , SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses. Building Lease Agreement The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million , plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three months ended March 31, 2017 and 2016 , SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses. See Note 18 for information on the subsequent termination of the building lease agreement effective April 5, 2017 in contemplation of the merger of SFMC and SGSC on April 10, 2017 and the subsequent termination of the license agreement as a result of this merger. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at March 31, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.50% 2.59 % 5.25% - 8.25% 2.77 % Second quarter 2017 $ — $ — $ — $ — $ — Third quarter 2017 — — 257 — 257 Fourth quarter 2017 — — 1,030 — 1,030 First quarter 2018 — — — — — Remainder of 2018 — — — — — 2019 — — 700 — 700 2020 — — 1,300 — 1,300 2021 — — 650 — 650 2022-2067 — — 300 350 650 Securitizations (b) 2,641 — — — 2,641 Revolving conduit facilities (b) — 10 — — 10 Total principal maturities $ 2,641 $ 10 $ 4,237 $ 350 $ 7,238 Total carrying amount $ 2,629 $ 10 $ 4,012 $ 172 $ 6,823 Debt issuance costs (c) $ (12 ) $ — $ (13 ) $ — $ (25 ) (a) The interest rates shown are the range of contractual rates in effect at March 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 2.77% as of March 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations and borrowings under revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments. See Note 10 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $9 million at March 31, 2017 and are reported in other assets. GUARANTY AGREEMENTS 8.25% SFC Notes On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of March 31, 2017 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. 5.25% SFC Notes On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of March 31, 2017 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; the Junior Subordinated Debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the 1999 Indenture, between SFC and Wilmington (the successor trustee to Citibank N.A.). The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of March 31, 2017 , $2.9 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that we are the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. We are deemed to be the primary beneficiary of each VIE because we have the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s and its affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any subordinated debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) March 31, December 31, Assets Cash and cash equivalents $ 1 $ 2 Finance receivables: Personal loans 2,863 2,943 Allowance for finance receivable losses 85 94 Restricted cash and restricted cash equivalents 173 211 Other assets 9 9 Liabilities Long-term debt $ 2,639 $ 2,675 Other liabilities 5 7 SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitizations borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our securitized borrowings at March 31, 2017 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2015-A (a) $ 1,163 3.47 % 3 years SLFT 2015-B (b) 314 3.78 % 5 years SLFT 2016-A (c) 500 3.10 % 2 years Total consumer securitizations 1,977 Auto Securitization: ODART 2016-1 (d) 396 2.45 % — ODART 2017-1 (e) 268 2.61 % 1 year Total auto securitizations 664 Total secured structured financings $ 2,641 (a) SLFT 2015-A Securitization. On February 26, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in November 2024. (b) SLFT 2015-B Securitization. On April 7, 2015, we issued $314 million of notes backed by personal loans. The notes mature in May 2028. (c) SLFT 2016-A Securitization. On December 14, 2016, we issued $532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $32 million of the asset-backed notes. (d) ODART 2016-1 Securitization. On July 19, 2016, we issued $754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (e) ODART 2017-1 Securitization. On February 1, 2017, we issued $300 million of notes backed by direct auto loans. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million , which excluded $33 million for the Class D Notes owned by Twenty First Street, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption. REVOLVING CONDUIT FACILITIES As of March 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Revolving Midbrook 2013-VFN1 Trust * $ 50 $ — February 2018 Sumner Brook 2013-VFN1 Trust 350 10 January 2018 Springleaf 2013-VFN1 Trust 850 — January 2018 Whitford Brook 2014-VFN1 Trust 250 — June 2018 First Avenue Funding LLC 250 — June 2018 Second Avenue Funding LLC 250 — June 2018 Seine River Funding, LLC 500 — December 2019 Total $ 2,500 $ 10 * Midbrook 2013-VFN1 Trust. On February 24, 2017, the maximum principal balance decreased from $100 million to $50 million . See Note 18 for information on the subsequent termination of the note purchase agreement with Midbrook 2013-VFN1 Trust. VIE INTEREST EXPENSE Other than our retained subordinate and residual interests in the remaining consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three months ended March 31, 2017 totaled $27 million , compared to $48 million for the three months ended March 31, 2016 . DECONSOLIDATED VIES As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt. |
Insurance
Insurance | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Insurance | Insurance Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable) were as follows: At or for the (dollars in millions) 2017 2016 Balance at beginning of period $ 70 $ 73 Less reinsurance recoverables (22 ) (22 ) Net balance at beginning of period 48 51 Additions for losses and loss adjustment expenses incurred to: Current year 17 18 Prior years * 1 (2 ) Total 18 16 Reductions for losses and loss adjustment expenses paid related to: Current year (7 ) (6 ) Prior years (11 ) (11 ) Total (18 ) (17 ) Net balance at end of period 48 50 Plus reinsurance recoverables 23 22 Balance at end of period $ 71 $ 72 * Reflects (i) a shortfall in the prior years’ net reserves of $1 million at March 31, 2017 primarily resulting from increased estimates for claims incurred in prior years as claims have developed, and (ii) a redundancy in the prior years’ net reserves of $2 million at March 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2017 Balance at beginning of period $ (3 ) $ (4 ) $ — $ (7 ) Other comprehensive income before reclassifications 2 — — 2 Reclassification adjustments from accumulated other comprehensive income (loss) (1 ) — — (1 ) Balance at end of period $ (2 ) $ (4 ) $ — $ (6 ) Three Months Ended March 31, 2016 Balance at beginning of period $ (9 ) $ (19 ) $ 4 $ (24 ) Other comprehensive income before reclassifications 8 — — 8 Reclassification adjustments from accumulated other comprehensive income (loss) (1 ) — — (1 ) Balance at end of period $ (2 ) $ (19 ) $ 4 $ (17 ) Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 2 $ 1 Income tax effect (1 ) — Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ 1 $ 1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At March 31, 2017 , we had a net deferred tax liability of $37 million , compared to $42 million at December 31, 2016 . The decrease in net deferred tax liability of $5 million was primarily due to tax accounting method change, partially offset by changes in the fair value of our finance receivables. The effective tax rate for the three months ended March 31, 2017 was 37.6% , compared to 34.1% for the same period in 2016 . The effective tax rate for the three months ended March 31, 2017 differed from the federal statutory rate primarily due to the effect of state income taxes. The effective tax rate for the three months ended March 31, 2016 differed from the federal statutory rate primarily due to the effect of the non-controlling interests in the previously owned SpringCastle Portfolio. We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the Internal Revenue Service. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $11 million at March 31, 2017 and December 31, 2016 . We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole. SALES RECOURSE OBLIGATIONS At March 31, 2017 , our reserve for sales recourse obligations totaled $14 million , which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish any additional reserves for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction. During the three months ended March 31, 2017 and 2016 , we had no repurchase activity related to these sales and no material activity related to our sales recourse obligations. At March 31, 2017 , there were no material repurchase requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans During the three months ended March 31, 2017 and 2016 , the components of net periodic benefit cost with respect to our defined benefit pension plans were immaterial. We do not currently fund post retirement benefits. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At March 31, 2017 , our two segments included: • Consumer and Insurance — We originate and service personal loans (secured and unsecured) through our branch network and our centralized operations. We also offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance), non-credit insurance, and auto membership plans provided by a third party. Our branch network conducts business in 28 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is “in footprint,” located near an existing branch, our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is “out of footprint,” not located near a branch, our centralized operations originate the loan. • Acquisitions and Servicing — SFI services the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through the SpringCastle Joint Venture. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the sale of our equity interest in the SpringCastle Joint Venture. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. Unless SFI is terminated, SFI will continue to provide the servicing for these loans pursuant to a servicing agreement, which SFI services as unsecured loans because the liens are subordinated to superior ranking security interests. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i) our liquidating real estate loan portfolio as discussed below, (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation), and (iii) our short equity personal loans that we are no longer originating. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. The accounting policies of the segments are the same as those disclosed in Note 3 to the consolidated financial statements of our 2016 Annual Report on Form 10-K, except as described below. Due to the nature of the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense and loan loss reserves, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). These allocations and adjustments currently have a material effect on our reported segment basis income as compared to GAAP. We believe the Segment Accounting Basis provides investors a consistent basis on which management evaluates segment performance. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Total average unsecured debt is allocated as follows: l Consumer and Insurance - receives remainder of unallocated average debt; and l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) Provision for finance receivable losses Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which are allocated to the segments based on the interest expense allocation of debt. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the Fortress Acquisition. The following tables present information about the Company’s segments, as well as reconciliations to the condensed consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Segment to GAAP Adjustment Consolidated Total At or for the Three Months Ended March 31, 2017 Interest income $ 290 $ — $ 6 $ 1 $ 297 Interest expense 104 — 6 17 127 Provision for finance receivable losses 70 — 1 — 71 Net interest income (loss) after provision for finance receivable losses 116 — (1 ) (16 ) 99 Other revenues (b) 49 — 59 (2 ) 106 Other expenses 158 — 4 — 162 Income before income taxes $ 7 $ — $ 54 $ (18 ) $ 43 Assets (c) $ 5,452 $ — $ 4,481 $ (67 ) $ 9,866 At or for the Three Months Ended March 31, 2016 Interest income $ 311 $ 102 $ 16 $ 2 $ 431 Interest expense 95 20 17 24 156 Provision for finance receivable losses 73 14 2 2 91 Net interest income (loss) after provision for finance receivable losses 143 68 (3 ) (24 ) 184 Net gain on sale of SpringCastle interests — 167 — — 167 Other revenues (b) 45 — 39 5 89 Other expenses 174 14 3 — 191 Income before income taxes 14 221 33 (19 ) 249 Income before income taxes attributable to non-controlling interests — 28 — — 28 Income before income taxes attributable to Springleaf Finance Corporation $ 14 $ 193 $ 33 $ (19 ) $ 221 Assets (c) $ 5,704 $ 101 $ 4,709 $ (13 ) $ 10,501 (a) Real Estate segment has been combined with “Other” for the prior period. (b) Other revenues reported in “Other” primarily includes interest income on the Cash Services Note (previously referred to as the “Independence Demand Note”) and on SFC’s note receivable from SFI. See Note 8 for further information on the notes receivable from parent and affiliates. (c) Assets reported in “Other” primarily includes notes receivable from parent and affiliates discussed above. See Note 8 for further information on the notes receivable from parent and affiliates. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 March 31, 2017 Assets Cash and cash equivalents $ 340 $ 57 $ — $ 397 $ 397 Investment securities — 611 2 613 613 Net finance receivables, less allowance for finance receivable losses — — 5,000 5,000 4,667 Finance receivables held for sale — — 151 151 148 Notes receivable from parent and affiliates — 3,803 — 3,803 3,803 Restricted cash and restricted cash equivalents 192 — — 192 192 Other assets (a) — 41 30 71 73 Liabilities Long-term debt $ — $ 7,281 $ — $ 7,281 $ 6,823 Other liabilities (b) — 45 — 45 45 December 31, 2016 Assets Cash and cash equivalents $ 198 $ 42 $ — $ 240 $ 240 Investment securities — 580 2 582 582 Net finance receivables, less allowance for finance receivable losses — — 5,122 5,122 4,755 Finance receivables held for sale — — 159 159 153 Notes receivable from parent and affiliates — 3,723 — 3,723 3,723 Restricted cash and restricted cash equivalents 227 — — 227 227 Other assets (a) — 41 34 75 77 Liabilities Long-term debt $ — $ 7,308 $ — $ 7,308 $ 6,837 Other liabilities (b) — 13 — 13 13 (a) Includes commercial mortgage loans, escrow advance receivable, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets. (b) Consists of payables to parent and affiliates. FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) March 31, 2017 Assets Cash equivalents in mutual funds $ 232 $ — $ — $ 232 Cash equivalents in securities — 57 — 57 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 19 — 19 Obligations of states, municipalities, and political subdivisions — 73 — 73 Non-U.S. government and government sponsored entities — 3 — 3 Corporate debt — 371 — 371 RMBS — 40 — 40 CMBS — 32 — 32 CDO/ABS — 64 — 64 Total bonds — 602 — 602 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 608 1 609 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 611 1 612 Restricted cash in mutual funds 174 — — 174 Total $ 406 $ 668 $ 1 $ 1,075 (a) Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at March 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 119 $ — $ — $ 119 Cash equivalents in securities — 42 — 42 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 13 — 13 Obligations of states, municipalities, and political subdivisions — 82 — 82 Non-U.S. government and government sponsored entities — 5 — 5 Corporate debt — 353 — 353 RMBS — 39 — 39 CMBS — 33 — 33 CDO/ABS — 46 — 46 Total bonds — 571 — 571 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 577 1 578 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 580 1 581 Restricted cash in mutual funds 212 — — 212 Total $ 331 $ 622 $ 1 $ 954 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. We had no transfers between Level 1 and Level 2 during the three months ended March 31, 2017 . FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial for the three months ended March 31, 2017 and 2016. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 23 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2016 Annual Report on Form 10-K for information regarding our methods and assumptions used to estimate fair value. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events RELATED PARTY TRANSACTIONS Dividend of SFMC to SFI On April 10, 2017, SFMC, a subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, and SFMC merged into SGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million , respectively, on the contribution date. The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition. Termination of Building Lease Agreement and License Agreement In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement, whereby SFMC leased six of its buildings to SGSC, was terminated effective April 5, 2017. In addition, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated as a result of this merger. OneMain Demand Note On April 13, 2017 and May 2, 2017, SFC advanced $50 million and $ 37 million , respectively, to OMFH, under the OneMain Demand Note. REVOLVING CONDUIT FACILITIES On April 13, 2017, Midbrook 2013-VFN1 Trust voluntarily terminated its note purchase agreement with its lender. |
Business and Basis of Present26
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with the SpringCastle Joint Venture, in which we owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2017 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 16 , we have revised our prior period segment disclosures. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting. |
Accounting Pronouncements Recently Adopted And To Be Adopted | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We have elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We have concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have adopted this ASU as of January 1, 2017 on a prospective basis. We have concluded that this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09. ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. We believe that the adoption of this ASU will not have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases . The ASU requires lessees to recognize a right-to-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We believe that the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact. Revenue Recognition and Derivatives and Hedging In May of 2016, the FASB issued ASU 2016-11, Revenue Recognition and Derivatives and Hedging , to rescind certain SEC guidance in Topic 605 and Topic 815 as ASU 2014-09 becomes effective. Our adoption of ASU 2014-09 will bring us into alignment with this ASU. We believe that the adoption of this ASU will not have a material effect on our consolidated financial statements. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will have a material effect on our consolidated financial statements and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present separately the service cost component on the income statement. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the three months ended March 31, 2017 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Gross receivables * $ 5,293 $ 137 $ 10 $ 5,440 Unearned finance charges and points and fees (681 ) 1 (1 ) (681 ) Accrued finance charges 60 1 — 61 Deferred origination costs 43 — — 43 Total $ 4,715 $ 139 $ 9 $ 4,863 December 31, 2016 Gross receivables * $ 5,449 $ 142 $ 12 $ 5,603 Unearned finance charges and points and fees (754 ) 1 (1 ) (754 ) Accrued finance charges 63 1 — 64 Deferred origination costs 46 — — 46 Total $ 4,804 $ 144 $ 11 $ 4,959 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. |
Summary of net finance receivables by type and by days delinquent | The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Net finance receivables: Performing Current $ 4,525 $ 102 $ 9 $ 4,636 30-59 days past due 57 8 — 65 60-89 days past due 39 4 — 43 Total performing 4,621 114 9 4,744 Nonperforming 90-179 days past due 91 5 — 96 180 days or more past due 3 20 — 23 Total nonperforming 94 25 — 119 Total $ 4,715 $ 139 $ 9 $ 4,863 December 31, 2016 Net finance receivables: Performing Current $ 4,579 $ 102 $ 11 $ 4,692 30-59 days past due 64 9 — 73 60-89 days past due 45 4 — 49 Total performing 4,688 115 11 4,814 Nonperforming 90-179 days past due 112 8 — 120 180 days or more past due 4 21 — 25 Total nonperforming 116 29 — 145 Total $ 4,804 $ 144 $ 11 $ 4,959 |
Schedule of information regarding purchased credit impaired finance receivables | Information regarding our purchased credit impaired FA Loans held for investment and held for sale were as follows: (dollars in millions) March 31, December 31, FA Loans (a) Carrying amount, net of allowance $ 68 $ 70 Outstanding balance (b) 105 107 Allowance for purchased credit impaired finance receivable losses 8 8 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, 2016 Carrying amount $ 53 $ 54 Outstanding balance 81 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. |
Purchased credit impaired FA Loans held for sale | Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, 2016 Carrying amount $ 53 $ 54 Outstanding balance 81 83 |
Schedule of changes in accretable yield for purchased credit impaired finance receivables | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) SCP Loans FA Loans Total Three Months Ended March 31, 2017 Balance at beginning of period $ — $ 60 $ 60 Accretion (a) — (1 ) (1 ) Balance at end of period $ — $ 59 $ 59 Three Months Ended March 31, 2016 Balance at beginning of period $ 375 $ 66 $ 441 Accretion (a) (16 ) (2 ) (18 ) Reclassifications from nonaccretable difference (b) — 10 10 Transfer due to finance receivables sold (359 ) — (359 ) Balance at end of period $ — $ 74 $ 74 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were immaterial. (b) Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. |
Schedule of information regarding troubled debt restructured ("TDR") finance receivables | Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total March 31, 2017 TDR gross finance receivables $ 49 $ 133 $ 182 TDR net finance receivables 49 134 183 Allowance for TDR finance receivable losses 20 11 31 December 31, 2016 TDR gross finance receivables $ 47 $ 133 $ 180 TDR net finance receivables 47 134 181 Allowance for TDR finance receivable losses 20 11 31 * TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, TDR gross finance receivables $ 88 $ 89 TDR net finance receivables 88 90 |
TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) March 31, 2017 December 31, TDR gross finance receivables $ 88 $ 89 TDR net finance receivables 88 90 |
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans * SpringCastle Portfolio Real Estate Loans * Total Three Months Ended March 31, 2017 TDR average net receivables $ 48 $ — $ 134 $ 182 TDR finance charges recognized 1 — 2 3 Three Months Ended March 31, 2016 TDR average net receivables $ 32 $ 11 $ 201 $ 244 TDR finance charges recognized 1 — 3 4 * TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Loans Total Three Months Ended March 31, 2017 TDR average net receivables $ — $ 89 $ 89 TDR finance charges recognized — 1 1 Three Months Ended March 31, 2016 TDR average net receivables $ 2 $ 92 $ 94 TDR finance charges recognized — 1 1 |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Loans Total Three Months Ended March 31, 2017 TDR average net receivables $ — $ 89 $ 89 TDR finance charges recognized — 1 1 Three Months Ended March 31, 2016 TDR average net receivables $ 2 $ 92 $ 94 TDR finance charges recognized — 1 1 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Three Months Ended March 31, 2017 Pre-modification TDR net finance receivables $ 15 $ — $ 3 $ 18 Post-modification TDR net finance receivables: Rate reduction $ 10 $ — $ 3 $ 13 Other (b) 4 — — 4 Total post-modification TDR net finance receivables $ 14 $ — $ 3 $ 17 Number of TDR accounts 2,740 — 64 2,804 Three Months Ended March 31, 2016 Pre-modification TDR net finance receivables $ 9 $ 1 $ 4 $ 14 Post-modification TDR net finance receivables: Rate reduction $ 5 $ 1 $ 3 $ 9 Other (b) 3 — 1 4 Total post-modification TDR net finance receivables $ 8 $ 1 $ 4 $ 13 Number of TDR accounts 1,782 157 89 2,028 (a) TDR finance receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include forgiveness of principal or interest. |
Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Three Months Ended March 31, 2017 TDR net finance receivables (b) $ 3 $ — $ 1 $ 4 Number of TDR accounts 585 — 6 591 Three Months Ended March 31, 2016 TDR net finance receivables (b) (c) $ 1 $ — $ 1 $ 2 Number of TDR accounts 355 19 20 394 (a) TDR real estate loans held for sale included in the table above that defaulted during the previous 12-month period were less than $1 million for the three months ended March 31, 2017 and $1 million for the three months ended March 31, 2016 . (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the three months ended March 31, 2016 that defaulted during the previous 12-month period were less than $ 1 million and, therefore, are not quantified in the combined table above. |
Allowance for Finance Receiva28
Allowance for Finance Receivable Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal SpringCastle Portfolio Real Estate Loans Retail Consolidated Total Three Months Ended March 31, 2017 Balance at beginning of period $ 184 $ — $ 19 $ 1 $ 204 Provision for finance receivable losses 70 — 1 — 71 Charge-offs (99 ) — (1 ) — (100 ) Recoveries 21 — — — 21 Balance at end of period $ 176 $ — $ 19 $ 1 $ 196 Three Months Ended March 31, 2016 Balance at beginning of period $ 173 $ 4 $ 46 $ 1 $ 224 Provision for finance receivable losses 73 14 4 — 91 Charge-offs (89 ) (17 ) (2 ) (1 ) (109 ) Recoveries 11 3 1 — 15 Other * — (4 ) — — (4 ) Balance at end of period $ 168 $ — $ 49 $ — $ 217 * Other consists of the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the SpringCastle Interests Sale. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Real Estate Loans Retail Total March 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 156 $ — $ 1 $ 157 Purchased credit impaired finance receivables — 8 — 8 TDR finance receivables 20 11 — 31 Total $ 176 $ 19 $ 1 $ 196 Finance receivables: Collectively evaluated for impairment $ 4,666 $ 70 $ 9 $ 4,745 Purchased credit impaired finance receivables — 23 — 23 TDR finance receivables 49 46 — 95 Total $ 4,715 $ 139 $ 9 $ 4,863 Allowance for finance receivable losses as a percentage of finance receivables 3.74 % 13.70 % 4.72 % 4.03 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ 1 $ 165 Purchased credit impaired finance receivables — 8 — 8 TDR finance receivables 20 11 — 31 Total $ 184 $ 19 $ 1 $ 204 Finance receivables: Collectively evaluated for impairment $ 4,757 $ 76 $ 11 $ 4,844 Purchased credit impaired finance receivables — 24 — 24 TDR finance receivables 47 44 — 91 Total $ 4,804 $ 144 $ 11 $ 4,959 Allowance for finance receivable losses as a percentage of finance receivables 3.84 % 13.31 % 4.42 % 4.12 % |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 19 $ — $ — $ 19 Obligations of states, municipalities, and political subdivisions 74 — (1 ) 73 Non-U.S. government and government sponsored entities 3 — — 3 Corporate debt 372 3 (4 ) 371 Mortgage-backed, asset-backed, and collateralized: RMBS 40 — — 40 CMBS 32 — — 32 CDO/ABS 64 — — 64 Total bonds 604 3 (5 ) 602 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 611 $ 3 $ (5 ) $ 609 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 13 $ — $ — $ 13 Obligations of states, municipalities, and political subdivisions 83 — (1 ) 82 Non-U.S. government and government sponsored entities 5 — — 5 Corporate debt 356 2 (5 ) 353 Mortgage-backed, asset-backed, and collateralized: RMBS 39 — — 39 CMBS 33 — — 33 CDO/ABS 46 — — 46 Total bonds 575 2 (6 ) 571 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 582 $ 2 $ (6 ) $ 578 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at March 31, 2017 and December 31, 2016 , which is classified as a restricted investment and carried at cost. |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses March 31, 2017 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 30 — 8 (1 ) 38 (1 ) Non-U.S. government and government sponsored entities — — 2 — 2 — Corporate debt 151 (3 ) 19 (1 ) 170 (4 ) RMBS 20 — 12 — 32 — CMBS 16 — — — 16 — CDO/ABS 33 — — — 33 — Total bonds 259 (3 ) 41 (2 ) 300 (5 ) Preferred stock — — 6 — 6 — Total $ 259 $ (3 ) $ 47 $ (2 ) $ 306 $ (5 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 57 (1 ) 2 — 59 (1 ) Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 171 (5 ) 5 — 176 (5 ) RMBS 33 — — — 33 — CMBS 22 — — — 22 — CDO/ABS 25 — — — 25 — Total bonds 320 (6 ) 7 — 327 (6 ) Preferred stock — — 6 — 6 — Total $ 320 $ (6 ) $ 13 $ — $ 333 $ (6 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. |
Schedule of realized gains, realized losses, and net realized gains due to sale or redemption of fair values of available-for-sale securities | The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Proceeds from sales and redemptions $ 51 $ 70 Net realized gains * $ 2 $ 1 * Realized losses on available-for-sale securities sold or redeemed during the three months ended March 31, 2017 and 2016 were less than $1 million and, therefore, are not quantified in the table above. |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 51 $ 51 Due after 1 year through 5 years 234 236 Due after 5 years through 10 years 44 43 Due after 10 years 137 138 Mortgage-backed, asset-backed, and collateralized securities 136 136 Total $ 602 $ 604 |
Schedule of fair value of trading securities by type | The fair value of other securities by type was as follows: (dollars in millions) March 31, December 31, Fixed maturity other securities: Bonds Corporate debt $ 2 $ 2 Mortgage-backed, asset-backed, and collateralized: CMBS 1 1 Total $ 3 $ 3 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at March 31, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.50% 2.59 % 5.25% - 8.25% 2.77 % Second quarter 2017 $ — $ — $ — $ — $ — Third quarter 2017 — — 257 — 257 Fourth quarter 2017 — — 1,030 — 1,030 First quarter 2018 — — — — — Remainder of 2018 — — — — — 2019 — — 700 — 700 2020 — — 1,300 — 1,300 2021 — — 650 — 650 2022-2067 — — 300 350 650 Securitizations (b) 2,641 — — — 2,641 Revolving conduit facilities (b) — 10 — — 10 Total principal maturities $ 2,641 $ 10 $ 4,237 $ 350 $ 7,238 Total carrying amount $ 2,629 $ 10 $ 4,012 $ 172 $ 6,823 Debt issuance costs (c) $ (12 ) $ — $ (13 ) $ — $ (25 ) (a) The interest rates shown are the range of contractual rates in effect at March 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 2.77% as of March 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations and borrowings under revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments. See Note 10 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $9 million at March 31, 2017 and are reported in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) March 31, December 31, Assets Cash and cash equivalents $ 1 $ 2 Finance receivables: Personal loans 2,863 2,943 Allowance for finance receivable losses 85 94 Restricted cash and restricted cash equivalents 173 211 Other assets 9 9 Liabilities Long-term debt $ 2,639 $ 2,675 Other liabilities 5 7 Our securitized borrowings at March 31, 2017 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2015-A (a) $ 1,163 3.47 % 3 years SLFT 2015-B (b) 314 3.78 % 5 years SLFT 2016-A (c) 500 3.10 % 2 years Total consumer securitizations 1,977 Auto Securitization: ODART 2016-1 (d) 396 2.45 % — ODART 2017-1 (e) 268 2.61 % 1 year Total auto securitizations 664 Total secured structured financings $ 2,641 (a) SLFT 2015-A Securitization. On February 26, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in November 2024. (b) SLFT 2015-B Securitization. On April 7, 2015, we issued $314 million of notes backed by personal loans. The notes mature in May 2028. (c) SLFT 2016-A Securitization. On December 14, 2016, we issued $532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $32 million of the asset-backed notes. (d) ODART 2016-1 Securitization. On July 19, 2016, we issued $754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (e) ODART 2017-1 Securitization. On February 1, 2017, we issued $300 million of notes backed by direct auto loans. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. |
Schedule of line of credit facilities | As of March 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Revolving Midbrook 2013-VFN1 Trust * $ 50 $ — February 2018 Sumner Brook 2013-VFN1 Trust 350 10 January 2018 Springleaf 2013-VFN1 Trust 850 — January 2018 Whitford Brook 2014-VFN1 Trust 250 — June 2018 First Avenue Funding LLC 250 — June 2018 Second Avenue Funding LLC 250 — June 2018 Seine River Funding, LLC 500 — December 2019 Total $ 2,500 $ 10 * Midbrook 2013-VFN1 Trust. On February 24, 2017, the maximum principal balance decreased from $100 million to $50 million . See Note 18 for information on the subsequent termination of the note purchase agreement with Midbrook 2013-VFN1 Trust. |
Insurance (Tables)
Insurance (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable) were as follows: At or for the (dollars in millions) 2017 2016 Balance at beginning of period $ 70 $ 73 Less reinsurance recoverables (22 ) (22 ) Net balance at beginning of period 48 51 Additions for losses and loss adjustment expenses incurred to: Current year 17 18 Prior years * 1 (2 ) Total 18 16 Reductions for losses and loss adjustment expenses paid related to: Current year (7 ) (6 ) Prior years (11 ) (11 ) Total (18 ) (17 ) Net balance at end of period 48 50 Plus reinsurance recoverables 23 22 Balance at end of period $ 71 $ 72 * Reflects (i) a shortfall in the prior years’ net reserves of $1 million at March 31, 2017 primarily resulting from increased estimates for claims incurred in prior years as claims have developed, and (ii) a redundancy in the prior years’ net reserves of $2 million at March 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated. |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2017 Balance at beginning of period $ (3 ) $ (4 ) $ — $ (7 ) Other comprehensive income before reclassifications 2 — — 2 Reclassification adjustments from accumulated other comprehensive income (loss) (1 ) — — (1 ) Balance at end of period $ (2 ) $ (4 ) $ — $ (6 ) Three Months Ended March 31, 2016 Balance at beginning of period $ (9 ) $ (19 ) $ 4 $ (24 ) Other comprehensive income before reclassifications 8 — — 8 Reclassification adjustments from accumulated other comprehensive income (loss) (1 ) — — (1 ) Balance at end of period $ (2 ) $ (19 ) $ 4 $ (17 ) |
Schedule of reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 2 $ 1 Income tax effect (1 ) — Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ 1 $ 1 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to condensed consolidated financial statement amounts | The following tables present information about the Company’s segments, as well as reconciliations to the condensed consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Segment to GAAP Adjustment Consolidated Total At or for the Three Months Ended March 31, 2017 Interest income $ 290 $ — $ 6 $ 1 $ 297 Interest expense 104 — 6 17 127 Provision for finance receivable losses 70 — 1 — 71 Net interest income (loss) after provision for finance receivable losses 116 — (1 ) (16 ) 99 Other revenues (b) 49 — 59 (2 ) 106 Other expenses 158 — 4 — 162 Income before income taxes $ 7 $ — $ 54 $ (18 ) $ 43 Assets (c) $ 5,452 $ — $ 4,481 $ (67 ) $ 9,866 At or for the Three Months Ended March 31, 2016 Interest income $ 311 $ 102 $ 16 $ 2 $ 431 Interest expense 95 20 17 24 156 Provision for finance receivable losses 73 14 2 2 91 Net interest income (loss) after provision for finance receivable losses 143 68 (3 ) (24 ) 184 Net gain on sale of SpringCastle interests — 167 — — 167 Other revenues (b) 45 — 39 5 89 Other expenses 174 14 3 — 191 Income before income taxes 14 221 33 (19 ) 249 Income before income taxes attributable to non-controlling interests — 28 — — 28 Income before income taxes attributable to Springleaf Finance Corporation $ 14 $ 193 $ 33 $ (19 ) $ 221 Assets (c) $ 5,704 $ 101 $ 4,709 $ (13 ) $ 10,501 (a) Real Estate segment has been combined with “Other” for the prior period. (b) Other revenues reported in “Other” primarily includes interest income on the Cash Services Note (previously referred to as the “Independence Demand Note”) and on SFC’s note receivable from SFI. See Note 8 for further information on the notes receivable from parent and affiliates. (c) Assets reported in “Other” primarily includes notes receivable from parent and affiliates discussed above. See Note 8 for further information on the notes receivable from parent and affiliates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 March 31, 2017 Assets Cash and cash equivalents $ 340 $ 57 $ — $ 397 $ 397 Investment securities — 611 2 613 613 Net finance receivables, less allowance for finance receivable losses — — 5,000 5,000 4,667 Finance receivables held for sale — — 151 151 148 Notes receivable from parent and affiliates — 3,803 — 3,803 3,803 Restricted cash and restricted cash equivalents 192 — — 192 192 Other assets (a) — 41 30 71 73 Liabilities Long-term debt $ — $ 7,281 $ — $ 7,281 $ 6,823 Other liabilities (b) — 45 — 45 45 December 31, 2016 Assets Cash and cash equivalents $ 198 $ 42 $ — $ 240 $ 240 Investment securities — 580 2 582 582 Net finance receivables, less allowance for finance receivable losses — — 5,122 5,122 4,755 Finance receivables held for sale — — 159 159 153 Notes receivable from parent and affiliates — 3,723 — 3,723 3,723 Restricted cash and restricted cash equivalents 227 — — 227 227 Other assets (a) — 41 34 75 77 Liabilities Long-term debt $ — $ 7,308 $ — $ 7,308 $ 6,837 Other liabilities (b) — 13 — 13 13 (a) Includes commercial mortgage loans, escrow advance receivable, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets. (b) Consists of payables to parent and affiliates. |
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) March 31, 2017 Assets Cash equivalents in mutual funds $ 232 $ — $ — $ 232 Cash equivalents in securities — 57 — 57 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 19 — 19 Obligations of states, municipalities, and political subdivisions — 73 — 73 Non-U.S. government and government sponsored entities — 3 — 3 Corporate debt — 371 — 371 RMBS — 40 — 40 CMBS — 32 — 32 CDO/ABS — 64 — 64 Total bonds — 602 — 602 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 608 1 609 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 611 1 612 Restricted cash in mutual funds 174 — — 174 Total $ 406 $ 668 $ 1 $ 1,075 (a) Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at March 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 119 $ — $ — $ 119 Cash equivalents in securities — 42 — 42 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 13 — 13 Obligations of states, municipalities, and political subdivisions — 82 — 82 Non-U.S. government and government sponsored entities — 5 — 5 Corporate debt — 353 — 353 RMBS — 39 — 39 CMBS — 33 — 33 CDO/ABS — 46 — 46 Total bonds — 571 — 571 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 577 1 578 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 580 1 581 Restricted cash in mutual funds 212 — — 212 Total $ 331 $ 622 $ 1 $ 954 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. |
Business and Basis of Present36
Business and Basis of Presentation (Details) | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 30, 2016 |
Related Party Transaction [Line Items] | |||
Ownership percentage in joint venture | 47.00% | ||
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Ownership percentage in joint venture | 47.00% | ||
Majority Shareholder | |||
Related Party Transaction [Line Items] | |||
Percent of common stock held by related party | 57.00% |
Finance Receivables Narrative (
Finance Receivables Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)loan | |
Finance Receivables | |||
TDR net finance receivables (less than 1 million in certain cases) | $ 4,000,000 | $ 2,000,000 | |
Personal loans | 4,715,000,000 | $ 4,804,000,000 | |
Loans receivable held for sale | 148,000,000 | $ 153,000,000 | |
Commitments to lend additional funds | $ 0 | ||
Unlikely to be Collected Financing Receivable | |||
Finance Receivables | |||
Accrual of finance charges, past due period | 60 days | ||
Personal loans | |||
Finance Receivables | |||
TDR net finance receivables (less than 1 million in certain cases) | $ 3,000,000 | 1,000,000 | |
Accrual of finance charges, past due period | 90 days | ||
Personal loans | Minimum | |||
Finance Receivables | |||
Finance receivables original term | 3 years | ||
Personal loans | Maximum | |||
Finance Receivables | |||
Finance receivables original term | 5 years | ||
Personal loans | Consumer household goods or other items of personal property | |||
Finance Receivables | |||
Loans and leases receivable, number of loans | loan | 893,000 | 928,000 | |
Real Estate Loan | |||
Finance Receivables | |||
TDR net finance receivables (less than 1 million in certain cases) | $ 1,000,000 | 1,000,000 | |
Accrual of finance charges, past due period | 90 days | ||
Real Estate Loan | Maximum | |||
Finance Receivables | |||
Finance receivables original term | 360 months | ||
Retail Sales Finance | |||
Finance Receivables | |||
Accrual of finance charges, past due period | 180 days | ||
Retail Sales Finance | Nonperforming | |||
Finance Receivables | |||
Accrual of finance charges, past due period | 90 days | ||
Retail Sales Finance | Maximum | |||
Finance Receivables | |||
Finance receivables original term | 60 months | ||
Real Estate Loans Held for Sale | |||
Finance Receivables | |||
TDR net finance receivables (less than 1 million in certain cases) | $ 1,000,000 | $ 1,000,000 |
Finance Receivables - Component
Finance Receivables - Components of Net Finance Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Finance Receivables | ||
Gross receivables | $ 5,440 | $ 5,603 |
Unearned finance charges and points and fees | (681) | (754) |
Accrued finance charges | 61 | 64 |
Deferred origination costs | 43 | 46 |
Net finance receivables | 4,863 | 4,959 |
Personal Loans | ||
Finance Receivables | ||
Gross receivables | 5,293 | 5,449 |
Unearned finance charges and points and fees | (681) | (754) |
Accrued finance charges | 60 | 63 |
Deferred origination costs | 43 | 46 |
Net finance receivables | 4,715 | 4,804 |
Real Estate Loans | ||
Finance Receivables | ||
Gross receivables | 137 | 142 |
Unearned finance charges and points and fees | 1 | 1 |
Accrued finance charges | 1 | 1 |
Deferred origination costs | 0 | 0 |
Net finance receivables | 139 | 144 |
Retail Sales Finance | ||
Finance Receivables | ||
Gross receivables | 10 | 12 |
Unearned finance charges and points and fees | (1) | (1) |
Accrued finance charges | 0 | 0 |
Deferred origination costs | 0 | 0 |
Net finance receivables | $ 9 | $ 11 |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type and Days Delinquent (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Net finance receivables: | ||
Net finance receivables | $ 4,863 | $ 4,959 |
Personal Loans | ||
Delinquency by finance receivables type | ||
Accrual of finance charges, past due period | 90 days | |
Net finance receivables: | ||
Net finance receivables | $ 4,715 | 4,804 |
Real Estate Loan | ||
Delinquency by finance receivables type | ||
Accrual of finance charges, past due period | 90 days | |
Net finance receivables: | ||
Net finance receivables | $ 139 | 144 |
Retail Sales Finance | ||
Delinquency by finance receivables type | ||
Accrual of finance charges, past due period | 180 days | |
Net finance receivables: | ||
Net finance receivables | $ 9 | 11 |
Performing | ||
Net finance receivables: | ||
Net finance receivables | 4,744 | 4,814 |
Performing | Current | ||
Net finance receivables: | ||
Net finance receivables | 4,636 | 4,692 |
Performing | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 65 | 73 |
Performing | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 43 | 49 |
Performing | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 4,621 | 4,688 |
Performing | Personal Loans | Current | ||
Net finance receivables: | ||
Net finance receivables | 4,525 | 4,579 |
Performing | Personal Loans | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 57 | 64 |
Performing | Personal Loans | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 39 | 45 |
Performing | Real Estate Loan | ||
Net finance receivables: | ||
Net finance receivables | 114 | 115 |
Performing | Real Estate Loan | Current | ||
Net finance receivables: | ||
Net finance receivables | 102 | 102 |
Performing | Real Estate Loan | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 8 | 9 |
Performing | Real Estate Loan | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 4 | 4 |
Performing | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 9 | 11 |
Performing | Retail Sales Finance | Current | ||
Net finance receivables: | ||
Net finance receivables | 9 | 11 |
Performing | Retail Sales Finance | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Performing | Retail Sales Finance | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming | ||
Net finance receivables: | ||
Net finance receivables | 119 | 145 |
Nonperforming | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 96 | 120 |
Nonperforming | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 23 | 25 |
Nonperforming | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 94 | 116 |
Nonperforming | Personal Loans | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 91 | 112 |
Nonperforming | Personal Loans | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 3 | 4 |
Nonperforming | Real Estate Loan | ||
Net finance receivables: | ||
Net finance receivables | 25 | 29 |
Nonperforming | Real Estate Loan | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 5 | 8 |
Nonperforming | Real Estate Loan | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | $ 20 | 21 |
Nonperforming | Retail Sales Finance | ||
Delinquency by finance receivables type | ||
Accrual of finance charges, past due period | 90 days | |
Net finance receivables: | ||
Net finance receivables | $ 0 | 0 |
Nonperforming | Retail Sales Finance | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming | Retail Sales Finance | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Finance Receivables | ||
Purchased credit impaired finance receivables | $ 8 | $ 8 |
FA Loans | ||
Finance Receivables | ||
Carrying amount, net of allowance | 68 | 70 |
Outstanding balance | 105 | 107 |
Purchased credit impaired finance receivables | 8 | 8 |
Carrying amount, net of allowance, held for sale | 53 | 54 |
Outstanding balance, held for sale | $ 81 | $ 83 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield for Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in accretable yield for purchased credit impaired finance receivables | ||
Balance at beginning of period | $ 60 | $ 441 |
Accretion | (1) | (18) |
Reclassifications to nonaccretable difference | 10 | |
Transfer due to finance receivables sold | (359) | |
Balance at end of period | 59 | 74 |
SCP Loans | ||
Changes in accretable yield for purchased credit impaired finance receivables | ||
Balance at beginning of period | 0 | 375 |
Accretion | 0 | (16) |
Reclassifications to nonaccretable difference | 0 | |
Transfer due to finance receivables sold | (359) | |
Balance at end of period | 0 | 0 |
FA Loans | ||
Changes in accretable yield for purchased credit impaired finance receivables | ||
Balance at beginning of period | 60 | 66 |
Accretion | (1) | (2) |
Reclassifications to nonaccretable difference | 10 | |
Transfer due to finance receivables sold | 0 | |
Balance at end of period | $ 59 | $ 74 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 182 | $ 180 |
TDR net finance receivables | 183 | 181 |
Allowance for TDR finance receivable losses | 31 | 31 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 49 | 47 |
TDR net finance receivables | 49 | 47 |
Allowance for TDR finance receivable losses | 20 | 20 |
Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 133 | 133 |
TDR net finance receivables | 134 | 134 |
Allowance for TDR finance receivable losses | 11 | 11 |
TDR gross finance receivables, held-for-sale | 88 | 89 |
TDR net finance receivables, held-for-sale | $ 88 | $ 90 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables and Finance Charges Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
TDR average net receivables, held-for-sale | $ 89 | $ 94 |
TDR finance charges recognized, held-for-sale | 1 | 1 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR average net receivables | 48 | 32 |
TDR finance charges recognized | 1 | 1 |
TDR average net receivables, held-for-sale | 0 | 2 |
TDR finance charges recognized, held-for-sale | 0 | 0 |
SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
TDR average net receivables | 0 | 11 |
TDR finance charges recognized | 0 | 0 |
Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
TDR average net receivables | 134 | 201 |
TDR finance charges recognized | 2 | 3 |
TDR average net receivables, held-for-sale | 89 | 92 |
TDR finance charges recognized, held-for-sale | 1 | 1 |
Total | ||
Financing Receivable, Modifications [Line Items] | ||
TDR average net receivables | 182 | 244 |
TDR finance charges recognized | $ 3 | $ 4 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR Finance Receivables (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)account | Mar. 31, 2016USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||
Pre-modification TDR net finance receivables | $ 18 | $ 14 |
Post-modification TDR net finance receivables: | $ 17 | $ 13 |
Number of TDR accounts | account | 2,804 | 2,028 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification TDR net finance receivables | $ 15 | $ 9 |
Post-modification TDR net finance receivables: | $ 14 | $ 8 |
Number of TDR accounts | account | 2,740 | 1,782 |
Pre-modification TDR net finance receivables, held-for-sale | $ 1 | |
Post-modification TDR net finance receivables, held-for-sale | 1 | |
SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification TDR net finance receivables | $ 0 | 1 |
Post-modification TDR net finance receivables: | $ 0 | $ 1 |
Number of TDR accounts | account | 0 | 157 |
Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification TDR net finance receivables | $ 3 | $ 4 |
Post-modification TDR net finance receivables: | $ 3 | $ 4 |
Number of TDR accounts | account | 64 | 89 |
Rate reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | $ 13 | $ 9 |
Rate reduction | Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 10 | 5 |
Rate reduction | SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 0 | 1 |
Rate reduction | Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 3 | 3 |
Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 4 | 4 |
Other | Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 4 | 3 |
Other | SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | 0 | 0 |
Other | Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification TDR net finance receivables: | $ 0 | $ 1 |
Finance Receivables - Net Fin45
Finance Receivables - Net Finance Receivables Modified as TDRs (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)account | Mar. 31, 2016USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||
TDR net finance receivables | $ 4 | $ 2 |
Number of TDR accounts | account | 591 | 394 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR net finance receivables | $ 3 | $ 1 |
Number of TDR accounts | account | 585 | 355 |
SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
TDR net finance receivables | $ 1 | |
Number of TDR accounts | account | 0 | 19 |
Real Estate Loan | ||
Financing Receivable, Modifications [Line Items] | ||
TDR net finance receivables | $ 1 | $ 1 |
Number of TDR accounts | account | 6 | 20 |
Real Estate Loans Held for Sale | ||
Financing Receivable, Modifications [Line Items] | ||
TDR net finance receivables | $ 1 | $ 1 |
Allowance for Finance Receiva46
Allowance for Finance Receivable Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in the allowance for finance receivable losses by finance receivable type | ||
Balance at beginning of period | $ 204 | $ 224 |
Provision for finance receivable losses | 71 | 91 |
Charge-offs | (100) | (109) |
Recoveries | 21 | 15 |
Other | (4) | |
Balance at end of period | 196 | 217 |
Personal Loans | ||
Changes in the allowance for finance receivable losses by finance receivable type | ||
Balance at beginning of period | 184 | 173 |
Provision for finance receivable losses | 70 | 73 |
Charge-offs | (99) | (89) |
Recoveries | 21 | 11 |
Other | 0 | |
Balance at end of period | 176 | 168 |
SpringCastle Portfolio | ||
Changes in the allowance for finance receivable losses by finance receivable type | ||
Balance at beginning of period | 4 | |
Provision for finance receivable losses | 14 | |
Charge-offs | (17) | |
Recoveries | 3 | |
Other | (4) | |
Balance at end of period | 0 | 0 |
Real Estate Loans | ||
Changes in the allowance for finance receivable losses by finance receivable type | ||
Balance at beginning of period | 19 | 46 |
Provision for finance receivable losses | 1 | 4 |
Charge-offs | (1) | (2) |
Recoveries | 1 | |
Other | 0 | |
Balance at end of period | 19 | 49 |
Retail Sales Finance | ||
Changes in the allowance for finance receivable losses by finance receivable type | ||
Balance at beginning of period | 1 | 1 |
Provision for finance receivable losses | 0 | |
Charge-offs | (1) | |
Recoveries | 0 | |
Other | 0 | |
Balance at end of period | $ 1 | $ 0 |
Allowance for Finance Receiva47
Allowance for Finance Receivable Losses - by Type and by Impairment Method (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | $ 157 | $ 165 | ||
Purchased credit impaired finance receivables | 8 | 8 | ||
TDR finance receivables | 31 | 31 | ||
Total | 196 | 204 | $ 217 | $ 224 |
Finance receivables: | ||||
Collectively evaluated for impairment | 4,745 | 4,844 | ||
Net finance receivables | 4,863 | 4,959 | ||
TDR finance receivables | $ 95 | $ 91 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.03% | 4.12% | ||
Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 23 | $ 24 | ||
Personal Loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 156 | 164 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 20 | 20 | ||
Total | 176 | 184 | 168 | 173 |
Finance receivables: | ||||
Collectively evaluated for impairment | 4,666 | 4,757 | ||
Net finance receivables | 4,715 | 4,804 | ||
TDR finance receivables | $ 49 | $ 47 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 3.74% | 3.84% | ||
Personal Loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 | ||
SpringCastle Portfolio | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Total | 0 | 0 | 4 | |
Real Estate Loan | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit impaired finance receivables | 8 | 8 | ||
TDR finance receivables | 11 | 11 | ||
Total | 19 | 19 | ||
Finance receivables: | ||||
Collectively evaluated for impairment | 70 | 76 | ||
Net finance receivables | 139 | 144 | ||
TDR finance receivables | $ 46 | $ 44 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 13.70% | 13.31% | ||
Real Estate Loan | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 23 | $ 24 | ||
Retail Sales Finance | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 1 | 1 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 0 | 0 | ||
Total | 1 | 1 | $ 0 | $ 1 |
Finance receivables: | ||||
Collectively evaluated for impairment | 9 | 11 | ||
Net finance receivables | 9 | 11 | ||
TDR finance receivables | $ 0 | $ 0 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.72% | 4.42% | ||
Retail Sales Finance | Receivables Acquired with Deteriorated Credit Quality | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables Held for 48
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Finance Receivables | ||||
Loans receivable held for sale | $ 148 | $ 153 | ||
Net gain on sale of SpringCastle interests | $ 0 | $ 167 | ||
SpringCastle Portfolio | ||||
Finance Receivables | ||||
Financing receivables reclassified to held-for-sale | $ 1,600 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | $ 611 | $ 582 | |
Unrealized Gains | 3 | 2 | |
Unrealized Losses | (5) | (6) | |
Fair Value | 609 | 578 | |
Interest in a limited partnership | 1 | 1 | |
Minimum disclosure of unrealized losses on certain available-for-sale securities | 1 | $ 1 | 1 |
Total bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 604 | 575 | |
Unrealized Gains | 3 | 2 | |
Unrealized Losses | (5) | (6) | |
Fair Value | 602 | 571 | |
U.S. government and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 19 | 13 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 19 | 13 | |
Obligations of states, municipalities, and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 74 | 83 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1) | (1) | |
Fair Value | 73 | 82 | |
Non-U.S. government and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 3 | 5 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | ||
Fair Value | 3 | 5 | |
Corporate debt | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 372 | 356 | |
Unrealized Gains | 3 | 2 | |
Unrealized Losses | (4) | (5) | |
Fair Value | 371 | 353 | |
RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 40 | 39 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 40 | 39 | |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 32 | 33 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 32 | 33 | |
CDO/ABS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 64 | 46 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 64 | 46 | |
Preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 6 | 6 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 6 | 6 | |
Other long-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 1 | 1 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | $ 1 | $ 1 |
Investment Securities - FV and
Investment Securities - FV and Unrealized Losses on AFS Securities by Type and Length of Time in Continuous Unrealized Loss Position (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Fair Value | |||
Less Than 12 Months | $ 259 | $ 320 | |
12 Months or Longer | 47 | 13 | |
Total | 306 | 333 | |
Unrealized Losses | |||
Less Than 12 Months | (3) | (6) | |
12 Months or Longer | (2) | 0 | |
Total | (5) | (6) | |
Minimum disclosure of unrealized losses on certain available-for-sale securities | 1 | $ 1 | 1 |
Other than temporary impairment, credit losses recognized in earnings, period increase (decrease) | $ 0 | ||
Total bonds | |||
Fair Value | |||
Less Than 12 Months | 259 | 320 | |
12 Months or Longer | 41 | 7 | |
Total | 300 | 327 | |
Unrealized Losses | |||
Less Than 12 Months | (3) | (6) | |
12 Months or Longer | (2) | 0 | |
Total | (5) | (6) | |
U.S. government and government sponsored entities | |||
Fair Value | |||
Less Than 12 Months | 9 | 9 | |
12 Months or Longer | 0 | 0 | |
Total | 9 | 9 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
Obligations of states, municipalities, and political subdivisions | |||
Fair Value | |||
Less Than 12 Months | 30 | 57 | |
12 Months or Longer | 8 | 2 | |
Total | 38 | 59 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | (1) | |
12 Months or Longer | (1) | 0 | |
Total | (1) | (1) | |
Non-U.S. government and government sponsored entities | |||
Fair Value | |||
Less Than 12 Months | 0 | 3 | |
12 Months or Longer | 2 | 0 | |
Total | 2 | 3 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
Corporate debt | |||
Fair Value | |||
Less Than 12 Months | 151 | 171 | |
12 Months or Longer | 19 | 5 | |
Total | 170 | 176 | |
Unrealized Losses | |||
Less Than 12 Months | (3) | (5) | |
12 Months or Longer | (1) | 0 | |
Total | (4) | (5) | |
RMBS | |||
Fair Value | |||
Less Than 12 Months | 20 | 33 | |
12 Months or Longer | 12 | 0 | |
Total | 32 | 33 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
CMBS | |||
Fair Value | |||
Less Than 12 Months | 16 | 22 | |
12 Months or Longer | 0 | ||
Total | 16 | 22 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
CDO/ABS | |||
Fair Value | |||
Less Than 12 Months | 33 | 25 | |
12 Months or Longer | 0 | 0 | |
Total | 33 | 25 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
Preferred stock | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 6 | 6 | |
Total | 6 | 6 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | $ 0 | $ 0 |
Investment Securities Narrative
Investment Securities Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)investment | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)investment | |
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities in an unrealized loss position | investment | 187 | 217 | |
Available-for-sale securities | $ 609,000,000 | $ 578,000,000 | |
Corporate debt | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 371,000,000 | 353,000,000 | |
Other than temporarily impaired available for sale securities | 0 | $ 0 | |
Insurance Regulatory Authorities Bonds on Deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | $ 11,000,000 | $ 11,000,000 |
Investment Securities - Proceed
Investment Securities - Proceeds From AFS Securities Sold or Redeemed (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Available-for-sale securities sold or redeemed | |||
Proceeds from sales and redemptions | $ 51 | $ 70 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 2 | 1 | |
Minimum disclosure of realized losses on available-for-sale securities | $ 1 | $ 1 | $ 1 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details 4) $ in Millions | Mar. 31, 2017USD ($) |
Fair Value | |
Due in 1 year or less | $ 51 |
Due after 1 year through 5 years | 234 |
Due after 5 years through 10 years | 44 |
Due after 10 years | 137 |
Mortgage-backed, asset-backed, and collateralized securities | 136 |
Total | 602 |
Amortized Cost | |
Due in 1 year or less | 51 |
Due after 1 year through 5 years | 236 |
Due after 5 years through 10 years | 43 |
Due after 10 years | 138 |
Mortgage-backed, asset-backed, and collateralized securities | 136 |
Total | $ 604 |
Investment Securities - Trading
Investment Securities - Trading and Other Securities (Details 5) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Trading securities | |||
Other securities | $ 3 | $ 3 | |
Net unrealized and realized gains (losses) on trading securities | |||
Net unrealized gains (losses) on trading and other securities held at period end | 1 | $ 1 | |
Corporate debt | |||
Trading securities | |||
Other securities | 2 | 2 | |
CMBS | |||
Trading securities | |||
Other securities | $ 1 | $ 1 |
Transactions with Affiliates 55
Transactions with Affiliates of Fortress (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Transactions with Affiliates of Fortress or AIG | ||
Ownership percentage in joint venture | 47.00% | |
Affiliated Entity | Logan Circle Partners L.P. | ||
Transactions with Affiliates of Fortress or AIG | ||
Costs and fees incurred for the investment management services (less than) | $ 1 | $ 1 |
Nationstar Mortgage LLC | Owners | ||
Transactions with Affiliates of Fortress or AIG | ||
Subservicing fees (less than) | $ 1 | $ 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Note receivable from SFI | $ 3,803 | $ 3,723 | |
Affiliated Entity | SFI | |||
Related Party Transaction [Line Items] | |||
Note receivable from SFI | $ 337 | $ 285 | |
Interest rates (as a percent) | 6.28% | ||
Interest revenue on note receivable | $ 5 |
Related Party Transactions -- I
Related Party Transactions -- Independence Demand Note (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Jul. 20, 2016 | Jul. 19, 2016 | Nov. 12, 2015 | |
Debt Instrument [Line Items] | ||||||
Notes receivable from parent and affiliates | $ 3,803,000,000 | $ 3,723,000,000 | ||||
Independence Holding, Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates (as a percent) | 6.28% | |||||
Independence Holding, Inc. | Independence Demand Note | ||||||
Debt Instrument [Line Items] | ||||||
Related party note, maximum borrowing capacity | $ 3,550,000,000 | |||||
Securities borrowed | $ 2,900,000,000 | $ 3,400,000,000 | ||||
Interest income, related party | $ 45,000,000 | $ 46,000,000 | ||||
Notes receivable from parent and affiliates | $ 2,800,000,000 | |||||
Independence Holding, Inc. | Assignment of Intercompany Demand Note | ||||||
Debt Instrument [Line Items] | ||||||
Right to assume principal of demand note | $ 150,000,000 | |||||
Aggregate purchase price | $ 150,000,000 | |||||
Independence Holding, Inc. | Cash Services Note | ||||||
Debt Instrument [Line Items] | ||||||
Related party note, maximum borrowing capacity | 3,400,000,000 | |||||
Independence Holding, Inc. | OMFH Note | ||||||
Debt Instrument [Line Items] | ||||||
Related party note, maximum borrowing capacity | $ 150,000,000 |
Related Party Transactions -- O
Related Party Transactions -- OneMain Demand Note (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 15, 2017 | Dec. 31, 2016 | Aug. 12, 2016 | Nov. 15, 2015 | |
Debt Instrument [Line Items] | |||||
Notes receivable from parent and affiliates | $ 3,803,000,000 | $ 3,723,000,000 | |||
OneMain Financial Holdings, Inc. | OneMain Demand Note | |||||
Debt Instrument [Line Items] | |||||
Related party note, maximum borrowing capacity | $ 1,300,000,000 | $ 750,000,000 | $ 500,000,000 | ||
Number of days notice required to demand note payment | 5 days | ||||
Notes receivable from parent and affiliates | $ 638,000,000 | $ 530,000,000 | |||
Interest income, related party | $ 9,000,000 |
Related Party Transactions -- N
Related Party Transactions -- Note Payable to Parent and Affiliate (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 15, 2017 | Dec. 31, 2016 | Dec. 01, 2015 | |
Debt Instrument [Line Items] | |||||
Receivables from parent and affiliates | $ 40,000,000 | $ 40,000,000 | |||
SFI | |||||
Debt Instrument [Line Items] | |||||
Payables to parent and affiliates | 6,000,000 | 6,000,000 | |||
Affiliated Entity | |||||
Debt Instrument [Line Items] | |||||
Due to affiliate | 45,000,000 | 13,000,000 | |||
Majority Shareholder | |||||
Debt Instrument [Line Items] | |||||
Receivables from parent and affiliates | $ 46,000,000 | 46,000,000 | |||
OneMain Financial Holdings, Inc. | OneMain Financial Holdings, Inc. | OMFH revolving demand note, OneMain Acquisition closing | |||||
Debt Instrument [Line Items] | |||||
Related party note, maximum borrowing capacity | $ 750,000,000 | $ 500,000,000 | |||
Number of days notice required to demand note payment | 5 days | ||||
Interest rates (as a percent) | 6.28% | ||||
Interest expense, related party note | $ 4,000,000 | ||||
Due to affiliate | $ 0 | 0 | |||
Intercompany Agreements | Springleaf Finance Management Corporation | Spring leaf General Services Corporation | Affiliated Entity | |||||
Debt Instrument [Line Items] | |||||
Due to related parties | 40,000,000 | 12,000,000 | |||
Intercompany Agreements | Springleaf Finance Management Corporation | Springleaf Consumer Loan, Inc. (SCLI) | Affiliated Entity | |||||
Debt Instrument [Line Items] | |||||
Due to affiliate | $ 2,000,000 | $ 1,000,000 |
Related Party Transactions -- R
Related Party Transactions -- Related Party Loan Sale Transaction (Details) - Springleaf Consumer Loan, Inc. (SCLI) - Affiliated Entity - Intercompany Agreements - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||
Personal loans sold | $ 89 | |
Aggregate purchase price | $ 89 | |
Service fee expenses | $ 1 |
Related Party Transactions --61
Related Party Transactions -- Intercompany Loan servicing Fees (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Loan application fee per application | $ 35 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Due to affiliate | 45,000,000 | $ 13,000,000 | |
OneMain | Affiliated Entity | Intercompany Agreements | |||
Related Party Transaction [Line Items] | |||
Costs and fees incurred for the investment management services (less than) | 3,000,000 | ||
Revenue from related parties | 3,000,000 | ||
Due to related parties | 0 | ||
OneMain | Affiliated Entity | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Costs and fees incurred for the investment management services (less than) | 3,000,000 | ||
OneMain Financial Holdings, Inc. | Affiliated Entity | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Costs and fees incurred for the investment management services (less than) | 3,000,000 | ||
Springleaf Finance Management Corporation | Spring leaf General Services Corporation | Affiliated Entity | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Costs and fees incurred for the investment management services (less than) | 59,000,000 | $ 67,000,000 | |
Springleaf Finance Management Corporation | Springleaf Consumer Loan, Inc. (SCLI) | Affiliated Entity | Intercompany Agreements | |||
Related Party Transaction [Line Items] | |||
Costs and fees incurred for the investment management services (less than) | 5,000,000 | $ 3,000,000 | |
Due to affiliate | $ 2,000,000 | $ 1,000,000 |
Related Party Transactions --62
Related Party Transactions -- Related Party Debt Purchases and Capital Contributions (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)building | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |||
Related party transaction allocated cost of service percentage | 100.00% | ||
OneMain Financial Holdings, LLC | Affiliated Entity | Intercompany Agreements | |||
Related Party Transaction [Line Items] | |||
Personal loans sold | $ 1 | ||
Aggregate purchase price | 1 | ||
Debt Purchases, medium-term notes, carry value | 1 | ||
OneMain Assurance Services, LLC | Affiliated Entity | Intercompany Agreements | |||
Related Party Transaction [Line Items] | |||
Personal loans sold | $ 5 | ||
Aggregate purchase price | 5 | ||
Debt Purchases, medium-term notes, carry value | 5 | ||
SFI | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Related party transaction capital contributions received | $ 10 | ||
Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Affiliated Entity | Intercompany Agreements | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 40 | $ 12 | |
Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Affiliated Entity | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Related party transaction allocated cost of service percentage | 100.00% | ||
Costs and fees incurred for the investment management services (less than) | $ 59 | 67 | |
Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Affiliated Entity | License Agreement | |||
Related Party Transaction [Line Items] | |||
Related party transaction margin on systems and software percentage | 7.00% | ||
Percentage of actual cost Incurred for information technology systems and software | 100.00% | ||
License fees | 1 | ||
Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Affiliated Entity | Building Lease Agreement | |||
Related Party Transaction [Line Items] | |||
Number of buildings leased | building | 6 | ||
Annual rental fees | $ 4 | ||
Rent charged | $ 1 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Jan. 16, 2017 | Dec. 31, 2016 | |
Principal maturities of long-term debt by type of debt | |||
Second quarter 2017 | $ 0 | ||
Third quarter 2017 | 257 | ||
Fourth quarter 2017 | 1,030 | ||
First quarter 2018 | 0 | ||
Remainder of 2018 | 0 | ||
2,019 | 700 | ||
2,020 | 1,300 | ||
2,021 | 650 | ||
2022-2067 | 650 | ||
Securitizations | 2,641 | ||
Revolving conduit facilities | 10 | ||
Total principal maturities | 7,238 | ||
Current Note Amounts Outstanding | 6,823 | $ 6,837 | |
Debt issuance costs | (25) | ||
Securitizations | |||
Principal maturities of long-term debt by type of debt | |||
Current Note Amounts Outstanding | 2,629 | ||
Medium Term Notes | |||
Principal maturities of long-term debt by type of debt | |||
Current Note Amounts Outstanding | $ 4,012 | ||
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.77% | ||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 2.77% | 6.00% | |
Second quarter 2017 | $ 0 | ||
Third quarter 2017 | 0 | ||
Fourth quarter 2017 | 0 | ||
First quarter 2018 | 0 | ||
Remainder of 2018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2022-2067 | 350 | ||
Securitizations | 0 | ||
Total principal maturities | 350 | ||
Current Note Amounts Outstanding | 172 | ||
Debt issuance costs | 0 | ||
Senior Debt | Securitizations | |||
Principal maturities of long-term debt by type of debt | |||
Second quarter 2017 | 0 | ||
Third quarter 2017 | 0 | ||
Fourth quarter 2017 | 0 | ||
First quarter 2018 | 0 | ||
Remainder of 2018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2022-2067 | 0 | ||
Securitizations | 2,641 | ||
Revolving conduit facilities | 0 | ||
Total principal maturities | 2,641 | ||
Debt issuance costs | $ (12) | ||
Senior Debt | Revolving Conduit Facilities | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 2.59% | ||
Second quarter 2017 | $ 0 | ||
Third quarter 2017 | 0 | ||
Fourth quarter 2017 | 0 | ||
First quarter 2018 | 0 | ||
Remainder of 2018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2022-2067 | 0 | ||
Securitizations | 0 | ||
Revolving conduit facilities | 10 | ||
Total principal maturities | 10 | ||
Current Note Amounts Outstanding | 10 | ||
Debt issuance costs | 0 | ||
Debt issuance costs | 9 | ||
Senior Debt | Medium Term Notes | |||
Principal maturities of long-term debt by type of debt | |||
Second quarter 2017 | 0 | ||
Third quarter 2017 | 257 | ||
Fourth quarter 2017 | 1,030 | ||
First quarter 2018 | 0 | ||
Remainder of 2018 | 0 | ||
2,019 | 700 | ||
2,020 | 1,300 | ||
2,021 | 650 | ||
2022-2067 | 300 | ||
Securitizations | 0 | ||
Revolving conduit facilities | 0 | ||
Total principal maturities | 4,237 | ||
Debt issuance costs | (13) | ||
Junior Subordinated Debt | |||
Principal maturities of long-term debt by type of debt | |||
Revolving conduit facilities | $ 0 | ||
Minimum | Senior Debt | Securitizations | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 2.04% | ||
Minimum | Senior Debt | Medium Term Notes | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 5.25% | ||
Maximum | Senior Debt | Securitizations | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 6.50% | ||
Maximum | Senior Debt | Medium Term Notes | |||
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 8.25% | ||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on interest rate | 1.75% |
Long-term Debt - Guaranty Agree
Long-term Debt - Guaranty Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Apr. 11, 2016 | Dec. 03, 2014 | Dec. 30, 2013 |
Debt Instrument [Line Items] | |||||
Current Note Amounts Outstanding | $ 6,823 | $ 6,837 | |||
Guaranty Agreements | Parent Company | Senior Note 8.25%, due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 8.25% | ||||
Current Note Amounts Outstanding | 1,000 | ||||
Guaranty Agreements | Parent Company | 5.25% Senior Notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 5.25% | ||||
Current Note Amounts Outstanding | 700 | ||||
Guaranty Agreements | Parent Company | 8.250% Senior Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 8.25% | ||||
Guaranty Agreements | Parent Company | 7.750% Senior Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 7.75% | ||||
Guaranty Agreements | Parent Company | 6.00% Senior Notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.00% | ||||
Guaranty Agreements | Parent Company | Senior Notes and Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Current Note Amounts Outstanding | $ 2,900 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Consolidated VIEs - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Variable Interest Entities | ||
Assets | $ 1 | $ 2 |
Finance receivables: | Personal Loans | ||
Variable Interest Entities | ||
Assets | 2,863 | 2,943 |
Allowance for finance receivable losses | ||
Variable Interest Entities | ||
Assets | 85 | 94 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entities | ||
Assets | 173 | 211 |
Other assets | ||
Variable Interest Entities | ||
Assets | 9 | 9 |
Long-term debt | ||
Variable Interest Entities | ||
Liabilities | 2,639 | 2,675 |
Other liabilities | ||
Variable Interest Entities | ||
Liabilities | $ 5 | $ 7 |
Variable Interest Entities -- S
Variable Interest Entities -- Securitized Borrowing (Details) - USD ($) | 3 Months Ended | |||||||
Mar. 31, 2017 | Feb. 15, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 14, 2016 | Jul. 19, 2016 | Apr. 07, 2015 | Feb. 26, 2015 | |
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 6,823,000,000 | $ 6,837,000,000 | ||||||
Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | 2,600,000,000 | $ 2,700,000,000 | ||||||
Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 1,977,000,000 | |||||||
Consumer Securitizations: | Minimum | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Original Revolving Period | 1 year | |||||||
Consumer Securitizations: | Maximum | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Amount of principal payment required during revolving period | $ 0 | |||||||
Original Revolving Period | 5 years | |||||||
Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 664,000,000 | |||||||
Total secured structured financings | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | 2,641,000,000 | |||||||
SLFT 2015-A | Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 1,163,000,000 | |||||||
Current Weighted Average Interest Rate | 3.47% | |||||||
Original Revolving Period | 3 years | |||||||
Face amount of each issuance of debt | $ 1,200,000,000 | |||||||
SLFT 2015-B | Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 314,000,000 | |||||||
Current Weighted Average Interest Rate | 3.78% | |||||||
Original Revolving Period | 5 years | |||||||
Face amount of each issuance of debt | $ 314,000,000 | |||||||
SLFT 2016-A | Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 500,000,000 | |||||||
Current Weighted Average Interest Rate | 3.10% | |||||||
Original Revolving Period | 2 years | |||||||
Face amount of each issuance of debt | $ 532,000,000 | |||||||
Continuing involvement with transferred financial assets, principal amount outstanding | $ 32,000,000 | |||||||
ODART 2016-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 396,000,000 | |||||||
Current Weighted Average Interest Rate | 2.45% | |||||||
Face amount of each issuance of debt | $ 754,000,000 | |||||||
Continuing involvement with transferred financial assets, principal amount outstanding | $ 54,000,000 | |||||||
ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 268,000,000 | |||||||
Current Weighted Average Interest Rate | 2.61% | |||||||
Original Revolving Period | 1 year | |||||||
Face amount of each issuance of debt | $ 300,000,000 | |||||||
Springleaf Funding Trust 2014 A [Member] | Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current Note Amounts Outstanding | $ 221,000,000 | |||||||
Debt instrument redemption price | 188,000,000 | |||||||
Class A Notes | ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | 11,000,000 | |||||||
Class B Notes | ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | 1,000,000 | |||||||
Class C Notes | ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | 1,000,000 | |||||||
Class D Notes | ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | 1,000,000 | |||||||
Class D Notes | Springleaf Funding Trust 2014 A [Member] | Consumer Securitizations: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | $ 33,000,000 | |||||||
Class E Notes | ODART 2017-1 | Auto Securitization: | Consolidated VIEs | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Continuing involvement with transferred financial assets, principal amount outstanding | $ 18,000,000 |
Variable Interest Entities -- R
Variable Interest Entities -- Revolving Conduit Facilities (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Feb. 24, 2017 | Dec. 20, 2016 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 127,000,000 | $ 156,000,000 | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 2,500,000,000 | |||
Amount Drawn | 10,000,000 | |||
Interest expense | 27,000,000 | $ 48,000,000 | ||
Midbrook 2013-VFN1 Trust | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 50,000,000 | |||
Amount Drawn | 0 | |||
Sumner Brook 2013-VFN1 Trust | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 350,000,000 | |||
Amount Drawn | 10,000,000 | |||
Springleaf 2013-VFN1 Trust | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 850,000,000 | |||
Amount Drawn | 0 | |||
Whitford Brook 2014-VFN1 Trust | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 250,000,000 | |||
Amount Drawn | 0 | |||
First Avenue Funding LLC | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 250,000,000 | |||
Amount Drawn | 0 | |||
Second Avenue Funding LLC | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 250,000,000 | |||
Amount Drawn | 0 | |||
Seine River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | 500,000,000 | |||
Amount Drawn | $ 0 | |||
Voluntary Reduction | Midbrook 2013-VFN1 Trust | Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Note Maximum Balance | $ 50,000,000 | $ 100,000,000 |
Insurance - Change in Reserve f
Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment (Details 2) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 70 | $ 73 | ||
Less reinsurance recoverables | (22) | (22) | ||
Net balance at beginning of period | 48 | 51 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 17 | 18 | ||
Prior years | 1 | (2) | ||
Total | 18 | 16 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (7) | (6) | ||
Prior years | (11) | (11) | ||
Total | (18) | (17) | ||
Net balance at end of period | 48 | 50 | ||
Plus reinsurance recoverables | 22 | 22 | $ 23 | $ 22 |
Balance at end of period | $ 71 | $ 72 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 2,343 | $ 2,032 |
Other comprehensive income before reclassifications | 2 | 8 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (1) | (1) |
Balance at end of period | 2,371 | 2,265 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (3) | (9) |
Other comprehensive income before reclassifications | 2 | 8 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (1) | (1) |
Balance at end of period | (2) | (2) |
Retirement Plan Liabilities Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (4) | (19) |
Other comprehensive income before reclassifications | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 |
Balance at end of period | (4) | (19) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | 4 |
Other comprehensive income before reclassifications | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 |
Balance at end of period | 0 | 4 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (7) | (24) |
Other comprehensive income before reclassifications | 2 | 8 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (1) | (1) |
Balance at end of period | $ (6) | $ (17) |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments From AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification adjustments from accumulated other comprehensive income | ||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 1 | $ 1 |
Unrealized gains on available-for-sale securities: | ||
Reclassification adjustments from accumulated other comprehensive income | ||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 1 | 1 |
Unrealized gains on available-for-sale securities: | Reclassification adjustments | ||
Reclassification adjustments from accumulated other comprehensive income | ||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | 2 | 1 |
Income tax effect | (1) | 0 |
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 1 | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax liabilities | $ 37 | $ 42 | |
Decrease in deferred tax liability | $ (5) | ||
Effective income tax rate (as a percent) | 37.60% | 34.10% | |
Income tax penalties and interest accrued | $ 11 | $ 11 | |
No material change in balance of uncertain tax position, expected term | 12 months |
Contingencies -- Sale Recourse
Contingencies -- Sale Recourse (Details) request in Millions, $ in Millions | Mar. 31, 2017USD ($)request |
Contingencies [Abstract] | |
Finance receivables reserve for sales recourse obligations | $ | $ 14 |
Number of material unresolved recourse requests | request | 0 |
Segment Information Narrative (
Segment Information Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2017segmentstate | Mar. 31, 2016 | Mar. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of segments | segment | 2 | ||
Ownership percentage in joint venture | 47.00% | ||
Corporate Joint Venture | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage in joint venture | 47.00% | ||
Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Number of states in which entity operates | state | 28 |
Segment Information -- Allocati
Segment Information -- Allocation of revenue and expenses (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Other Segments | |
Segment Reporting Information [Line Items] | |
Unsecured debt allocation, percentage | 100.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 297 | $ 431 | |
Interest expense | 127 | 156 | |
Provision for finance receivable losses | 71 | 91 | |
Net interest income after provision for finance receivable losses | 99 | 184 | |
Net gain on sale of SpringCastle interests | 0 | 167 | |
Other revenues (b) | 106 | 89 | |
Other expenses | 162 | 191 | |
Income before income taxes | 43 | 249 | |
Income before income taxes attributable to non-controlling interests | 28 | ||
Income before income taxes attributable to Springleaf Finance Corporation | 221 | ||
Assets (c) | 9,866 | 10,501 | $ 9,719 |
Operating Segments | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Interest income | 290 | 311 | |
Interest expense | 104 | 95 | |
Provision for finance receivable losses | 70 | 73 | |
Net interest income after provision for finance receivable losses | 116 | 143 | |
Net gain on sale of SpringCastle interests | 0 | ||
Other revenues (b) | 49 | 45 | |
Other expenses | 158 | 174 | |
Income before income taxes | 7 | 14 | |
Income before income taxes attributable to non-controlling interests | 0 | ||
Income before income taxes attributable to Springleaf Finance Corporation | 14 | ||
Assets (c) | 5,452 | 5,704 | |
Operating Segments | Acquisitions and Servicing | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 102 | |
Interest expense | 20 | ||
Provision for finance receivable losses | 14 | ||
Net interest income after provision for finance receivable losses | 0 | 68 | |
Net gain on sale of SpringCastle interests | 167 | ||
Other revenues (b) | 0 | 0 | |
Other expenses | 0 | 14 | |
Income before income taxes | 0 | 221 | |
Income before income taxes attributable to non-controlling interests | 28 | ||
Income before income taxes attributable to Springleaf Finance Corporation | 193 | ||
Assets (c) | 101 | ||
Operating Segments | Real Estate Loans | |||
Segment Reporting Information [Line Items] | |||
Net gain on sale of SpringCastle interests | 0 | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 6 | 16 | |
Interest expense | 6 | 17 | |
Provision for finance receivable losses | 1 | 2 | |
Net interest income after provision for finance receivable losses | (1) | (3) | |
Other revenues (b) | 59 | 39 | |
Other expenses | 4 | 3 | |
Income before income taxes | 54 | 33 | |
Income before income taxes attributable to non-controlling interests | 0 | ||
Income before income taxes attributable to Springleaf Finance Corporation | 33 | ||
Assets (c) | 4,481 | 4,709 | |
Segment to GAAP Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest income | 1 | 2 | |
Interest expense | 17 | 24 | |
Provision for finance receivable losses | 2 | ||
Net interest income after provision for finance receivable losses | (16) | (24) | |
Net gain on sale of SpringCastle interests | 0 | ||
Other revenues (b) | (2) | 5 | |
Other expenses | 0 | 0 | |
Income before income taxes | (18) | (19) | |
Income before income taxes attributable to non-controlling interests | 0 | ||
Income before income taxes attributable to Springleaf Finance Corporation | (19) | ||
Assets (c) | $ (67) | $ (13) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Assets | |||
Notes receivable from parent and affiliates | $ 3,803 | $ 3,723 | |
Restricted cash and restricted cash equivalents | 192 | 227 | $ 225 |
Other assets (a) | |||
Receivables from parent and affiliates | 40 | 40 | |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 397 | 240 | |
Investment securities | 613 | 582 | |
Net finance receivables, less allowance for finance receivable losses | 5,000 | 5,122 | |
Finance receivables held for sale | 151 | 159 | |
Notes receivable from parent and affiliates | 3,803 | 3,723 | |
Restricted cash and restricted cash equivalents | 192 | 227 | |
Other assets | 71 | 75 | |
Liabilities | |||
Long-term debt | 7,281 | 7,308 | |
Other liabilities | 45 | 13 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 397 | 240 | |
Investment securities | 613 | 582 | |
Net finance receivables, less allowance for finance receivable losses | 4,667 | 4,755 | |
Finance receivables held for sale | 148 | 153 | |
Notes receivable from parent and affiliates | 3,803 | 3,723 | |
Restricted cash and restricted cash equivalents | 192 | 227 | |
Other assets | 73 | 77 | |
Liabilities | |||
Long-term debt | 6,823 | 6,837 | |
Other liabilities | 45 | 13 | |
Fair Value Measurements Using Level 1 | |||
Assets | |||
Cash and cash equivalents | 340 | 198 | |
Investment securities | 0 | 0 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Notes receivable from parent and affiliates | 0 | 0 | |
Restricted cash and restricted cash equivalents | 192 | 227 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Other liabilities | 0 | 0 | |
Fair Value Measurements Using Level 2 | |||
Assets | |||
Cash and cash equivalents | 57 | 42 | |
Investment securities | 611 | 580 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Notes receivable from parent and affiliates | 3,803 | 3,723 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 41 | 41 | |
Liabilities | |||
Long-term debt | 7,281 | 7,308 | |
Other liabilities | 45 | 13 | |
Fair Value Measurements Using Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 2 | 2 | |
Net finance receivables, less allowance for finance receivable losses | 5,000 | 5,122 | |
Finance receivables held for sale | 151 | 159 | |
Notes receivable from parent and affiliates | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 30 | 34 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Other liabilities | $ 0 | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Available-for-sale securities | $ 609,000,000 | $ 578,000,000 |
Other securities | 3,000,000 | 3,000,000 |
Total investment securities | 613,000,000 | 582,000,000 |
Transfer from Level 1 Assets to Level 2 | 0 | |
Transfer from Level 2 Assets to Level 1 | 0 | |
Transfer from Level 1 Liabilities to Level 2 | 0 | |
Transfers from Level 2 Liabilities to Level 1 | 0 | |
U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 19,000,000 | 13,000,000 |
Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 73,000,000 | 82,000,000 |
Corporate debt | ||
Assets | ||
Available-for-sale securities | 371,000,000 | 353,000,000 |
Other securities | 2,000,000 | 2,000,000 |
RMBS | ||
Assets | ||
Available-for-sale securities | 40,000,000 | 39,000,000 |
CMBS | ||
Assets | ||
Available-for-sale securities | 32,000,000 | 33,000,000 |
Other securities | 1,000,000 | 1,000,000 |
CDO/ABS | ||
Assets | ||
Available-for-sale securities | 64,000,000 | 46,000,000 |
Total bonds | ||
Assets | ||
Available-for-sale securities | 602,000,000 | 571,000,000 |
Preferred stock | ||
Assets | ||
Available-for-sale securities | 6,000,000 | 6,000,000 |
Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 1,000,000 |
Total Carried At Fair Value | ||
Assets | ||
Cash and cash equivalents | 397,000,000 | 240,000,000 |
Not carried at fair value | Common Stock | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 1,000,000 |
Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash and cash equivalents | 340,000,000 | 198,000,000 |
Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash and cash equivalents | 57,000,000 | 42,000,000 |
Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Recurring basis | Total Carried At Fair Value | ||
Assets | ||
Cash equivalents in mutual funds | 232,000,000 | 119,000,000 |
Available-for-sale securities | 609,000,000 | 578,000,000 |
Other securities | 3,000,000 | 3,000,000 |
Total investment securities | 612,000,000 | 581,000,000 |
Restricted cash in mutual funds | 174,000,000 | 212,000,000 |
Total | 1,075,000,000 | 954,000,000 |
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 19,000,000 | 13,000,000 |
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 73,000,000 | 82,000,000 |
Recurring basis | Total Carried At Fair Value | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 3,000,000 | 5,000,000 |
Recurring basis | Total Carried At Fair Value | Corporate debt | ||
Assets | ||
Available-for-sale securities | 371,000,000 | 353,000,000 |
Other securities | 2,000,000 | 2,000,000 |
Recurring basis | Total Carried At Fair Value | RMBS | ||
Assets | ||
Available-for-sale securities | 40,000,000 | 39,000,000 |
Recurring basis | Total Carried At Fair Value | CMBS | ||
Assets | ||
Available-for-sale securities | 32,000,000 | 33,000,000 |
Other securities | 1,000,000 | 1,000,000 |
Recurring basis | Total Carried At Fair Value | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 64,000,000 | 46,000,000 |
Recurring basis | Total Carried At Fair Value | Total bonds | ||
Assets | ||
Available-for-sale securities | 602,000,000 | 571,000,000 |
Recurring basis | Total Carried At Fair Value | Preferred stock | ||
Assets | ||
Available-for-sale securities | 6,000,000 | 6,000,000 |
Recurring basis | Total Carried At Fair Value | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 1,000,000 |
Recurring basis | Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 232,000,000 | 119,000,000 |
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Total investment securities | 0 | 0 |
Restricted cash in mutual funds | 174,000,000 | 212,000,000 |
Total | 406,000,000 | 331,000,000 |
Recurring basis | Fair Value Measurements Using Level 1 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Total bonds | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 1 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Available-for-sale securities | 608,000,000 | 577,000,000 |
Other securities | 3,000,000 | 3,000,000 |
Total investment securities | 611,000,000 | 580,000,000 |
Restricted cash in mutual funds | 0 | 0 |
Total | 668,000,000 | 622,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 19,000,000 | 13,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 73,000,000 | 82,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 3,000,000 | 5,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 371,000,000 | 353,000,000 |
Other securities | 2,000,000 | 2,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | RMBS | ||
Assets | ||
Available-for-sale securities | 40,000,000 | 39,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | CMBS | ||
Assets | ||
Available-for-sale securities | 32,000,000 | 33,000,000 |
Other securities | 1,000,000 | 1,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 64,000,000 | 46,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Total bonds | ||
Assets | ||
Available-for-sale securities | 602,000,000 | 571,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 6,000,000 | 6,000,000 |
Recurring basis | Fair Value Measurements Using Level 2 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Available-for-sale securities | 1,000,000 | 1,000,000 |
Other securities | 0 | 0 |
Total investment securities | 1,000,000 | 1,000,000 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,000,000 | 1,000,000 |
Recurring basis | Fair Value Measurements Using Level 3 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Total bonds | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1,000,000 | 1,000,000 |
Cash equivalents in securities | Recurring basis | Total Carried At Fair Value | ||
Assets | ||
Cash and cash equivalents | 57,000,000 | 42,000,000 |
Cash equivalents in securities | Recurring basis | Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash equivalents in securities | Recurring basis | Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash and cash equivalents | 57,000,000 | 42,000,000 |
Cash equivalents in securities | Recurring basis | Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Apr. 10, 2017USD ($) | May 02, 2017USD ($) | Apr. 13, 2017USD ($) | Apr. 05, 2017building |
Subsidiaries | ||||
Subsequent Event [Line Items] | ||||
Shareholders' equity decrease from business combination | $ 38,000,000 | |||
Total assets decrease from business combination | $ 65,000,000 | |||
Affiliated Entity | Spring leaf General Services Corporation | Building Lease Agreement | Springleaf Finance Management Corporation | ||||
Subsequent Event [Line Items] | ||||
Number of buildings leased | building | 6 | |||
OneMain Demand Note | OneMain Financial Holdings, Inc. | ||||
Subsequent Event [Line Items] | ||||
Related party note, maximum borrowing capacity | $ 37,000,000 | $ 50,000,000 |