Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-06155 | |
Entity Registrant Name | SPRINGLEAF FINANCE CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0416090 | |
Entity Address, Address Line One | 601 N.W Second Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | 812 | |
Local Phone Number | 424-8031 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Entity Central Index Key | 0000025598 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 785 | $ 663 |
Investment securities | 1,721 | 1,694 |
Net finance receivables (includes loans of consolidated VIEs of $8.0 billion in 2019 and $8.5 billion in 2018) | 16,980 | 16,122 |
Unearned insurance premium and claim reserves | (720) | (662) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $369 million in 2019 and $444 million in 2018) | (744) | (726) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 15,516 | 14,734 |
Finance receivables held for sale | 74 | 103 |
Notes receivable from parent | 261 | 260 |
Restricted cash and restricted cash equivalents (include restricted cash and restricted cash equivalents of consolidated VIEs of $409 million in 2019 and $479 million in 2018) | 420 | 499 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 361 | 387 |
Other assets | 728 | 547 |
Total assets | 21,288 | 20,309 |
Liabilities and Shareholder’s Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.1 billion in 2019 and $7.5 billion in 2018) | 15,551 | 15,178 |
Insurance claims and policyholder liabilities | 648 | 685 |
Deferred and accrued taxes | 42 | 42 |
Other liabilities (includes other liabilities of consolidated VIEs of $13 million in 2019 and $14 million in 2018) | 643 | 383 |
Total liabilities | 16,884 | 16,288 |
Commitments and contingent liabilities (Note 13) | ||
Shareholder’s equity: | ||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at June 30, 2019 and December 31, 2018 | 5 | 5 |
Additional paid-in capital | 2,146 | 2,110 |
Accumulated other comprehensive income (loss) | 28 | (34) |
Retained earnings | 2,225 | 1,940 |
Total shareholder’s equity | 4,404 | 4,021 |
Total liabilities and shareholder’s equity | $ 21,288 | $ 20,309 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Personal loans | $ 16,980 | $ 16,122 |
Allowance for finance receivable losses | 744 | 726 |
Restricted cash and restricted cash equivalents | 420 | 499 |
Long-term debt | 15,551 | 15,178 |
Other liabilities | $ 643 | $ 383 |
Common stock, par value (usd per share) | $ 0.5 | $ 0.5 |
Shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Personal Loans | ||
Allowance for finance receivable losses | $ 744 | $ 726 |
Consolidated VIEs | ||
Allowance for finance receivable losses | 369 | 444 |
Restricted cash and restricted cash equivalents | 409 | 479 |
Long-term debt | 7,100 | 7,500 |
Other liabilities | 13 | 14 |
Consolidated VIEs | Personal Loans | ||
Personal loans | $ 8,000 | $ 8,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Finance charges | $ 998 | $ 899 | $ 1,950 | $ 1,756 |
Finance receivables held for sale | 2 | 3 | 5 | 6 |
Total interest income | 1,000 | 902 | 1,955 | 1,762 |
Interest expense | 238 | 220 | 473 | 420 |
Net interest income | 762 | 682 | 1,482 | 1,342 |
Provision for finance receivable losses | 268 | 259 | 554 | 512 |
Net interest income after provision for finance receivable losses | 494 | 423 | 928 | 830 |
Other revenues: | ||||
Insurance | 114 | 107 | 224 | 212 |
Investment | 24 | 19 | 50 | 32 |
Interest income on notes receivable from parent | 4 | 5 | 8 | 10 |
Net loss on repurchases and repayments of debt | (12) | (7) | (33) | (8) |
Net gain on sale of real estate loans | 0 | 0 | 3 | 0 |
Other | 30 | 14 | 60 | 23 |
Total other revenues | 160 | 138 | 312 | 269 |
Other expenses: | ||||
Salaries and benefits | 204 | 293 | 404 | 477 |
Other operating expenses | 140 | 162 | 276 | 300 |
Insurance policy benefits and claims | 50 | 51 | 94 | 96 |
Total other expenses | 394 | 506 | 774 | 873 |
Income (loss) before income tax expense (benefit) | 260 | 55 | 466 | 226 |
Income taxes | 63 | 43 | 113 | 84 |
Net income | $ 197 | $ 12 | $ 353 | $ 142 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 197 | $ 12 | $ 353 | $ 142 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 36 | (13) | 75 | (37) |
Foreign currency translation adjustments | 2 | (2) | 5 | (5) |
Income tax effect: | ||||
Net unrealized gains (losses) on non-credit impaired available-for-sale securities | (8) | 6 | (17) | 7 |
Retirement plan liability adjustments | 0 | 2 | (1) | 1 |
Foreign currency translation adjustments | 0 | (2) | 0 | (1) |
Other comprehensive income (loss), net of tax | 30 | (9) | 62 | (35) |
Comprehensive income | $ 227 | $ 3 | $ 415 | $ 107 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2017 | $ 3,402 | $ 5 | $ 1,909 | $ 6 | $ 1,482 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Share-based compensation expense, net of forfeitures | 2 | 2 | |||
Withholding tax on share-based compensation | (1) | (1) | |||
Other comprehensive income (loss) | (35) | (35) | |||
Non-cash incentive compensation from SFH | 110 | 110 | |||
Impact of AOCI reclassification due to the Tax Act | 0 | 3 | (3) | ||
Net income | 142 | 142 | |||
Balance at end of period at Jun. 30, 2018 | 3,620 | 5 | 2,020 | (26) | 1,621 |
Balance at beginning of period at Mar. 31, 2018 | 3,511 | 5 | 1,914 | (20) | 1,612 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Other comprehensive income (loss) | (9) | (9) | |||
Non-cash incentive compensation from SFH | 106 | 106 | |||
Impact of AOCI reclassification due to the Tax Act | 0 | 3 | (3) | ||
Net income | 12 | 12 | |||
Balance at end of period at Jun. 30, 2018 | 3,620 | 5 | 2,020 | (26) | 1,621 |
Balance at beginning of period at Dec. 31, 2018 | 4,021 | 5 | 2,110 | (34) | 1,940 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Share-based compensation expense, net of forfeitures | 7 | 7 | |||
Withholding tax on share-based compensation | (5) | (5) | |||
Other comprehensive income (loss) | 62 | 62 | |||
Contribution of OCLI to SFC from SFI | 34 | 34 | |||
Cash dividends | (68) | (68) | |||
Net income | 353 | 353 | |||
Balance at end of period at Jun. 30, 2019 | 4,404 | 5 | 2,146 | 28 | 2,225 |
Balance at beginning of period at Mar. 31, 2019 | 4,210 | 5 | 2,145 | (2) | 2,062 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Share-based compensation expense, net of forfeitures | 1 | 1 | |||
Other comprehensive income (loss) | 30 | 30 | |||
Cash dividends | (34) | (34) | |||
Net income | 197 | 197 | |||
Balance at end of period at Jun. 30, 2019 | $ 4,404 | $ 5 | $ 2,146 | $ 28 | $ 2,225 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 353 | $ 142 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 554 | 512 |
Depreciation and amortization | 138 | 125 |
Deferred income tax charge | 19 | 10 |
Net loss on repurchases and repayments of debt | 33 | 8 |
Non-cash incentive compensation from SFH | 0 | 110 |
Share-based compensation expense, net of forfeitures | 7 | 2 |
Other | (10) | 8 |
Cash flows due to changes in other assets and other liabilities | 60 | (68) |
Net cash provided by operating activities | 1,154 | 849 |
Cash flows from investing activities | ||
Net principal originations of finance receivables held for investment and held for sale | (1,400) | (1,116) |
Proceeds on sales of finance receivables held for sale originated as held for investment | 19 | 0 |
Cash advances on intercompany notes receivable | (3) | (29) |
Principal collections on intercompany notes receivable | 3 | 101 |
Available-for-sale securities purchased | (317) | (394) |
Available-for-sale securities called, sold, and matured | 336 | 280 |
Other securities purchased | (5) | (6) |
Other securities called, sold, and matured | 15 | 20 |
Other, net | 5 | (18) |
Net cash provided by (used for) financing activities | (1,347) | (1,162) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 3,159 | 3,739 |
Repayment of long-term debt | (2,856) | (3,776) |
Cash contribution of SCLH | 12 | 0 |
Cash dividend to Parent | (68) | 0 |
Payments on intercompany note payable | (6) | 0 |
Withholding tax on share-based compensation | (5) | (1) |
Net cash provided by (used for) financing activities | 236 | (38) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 43 | (351) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,162 | 1,457 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,205 | 1,106 |
Supplemental cash flow information | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,162 | 1,457 |
Cash paid for amounts included in the measurement of operating lease liabilities | 29 | |
Transfer of finance receivables to real estate owned | 2 | 3 |
Supplemental non-cash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 177 | |
Net unsettled investment security purchases | $ (20) | $ (1) |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | 1. 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,” and is a wholly owned subsidiary of SFI. SFI is a wholly owned subsidiary of OneMain Holding, Inc. (“OMH”). SFC is a financial services holding company whose principal subsidiaries are Independence Holdings, LLC (“Independence”), which was contributed to SFC by SFI on June 22, 2018, and other direct subsidiaries engaged in the consumer finance and insurance businesses. At June 30, 2019 , the Apollo-Värde Group owned approximately 40.4% of OMH’s common stock. 2018 Share Sale Transactions As disclosed in Note 21 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K, certain executives of the Company had previously been granted incentive units that only provided benefits (in the form of distributions) if SFH made distributions to one or more of its common members that exceeded specified threshold amounts. In connection with the distributions by SFH to Fortress (the “Fortress Transaction”) resulting from the Apollo-Värde Transaction described in Note 2 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K, certain executive officers who were holders of SFH incentive units received a distribution of approximately $106 million in the aggregate from SFH. Although the distribution was not made by the Company or its subsidiaries, in accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of approximately $106 million , with an equal and offsetting increase to additional paid-in-capital. The impact to the Company was non-cash, equity neutral and not tax deductible. In addition, in connection with the distributions by SFH to AIG resulting from the AIG Transaction described in Note 2 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K, these same executive officers holding the incentive units described above, received a distribution of approximately $4 million in the aggregate from SFH in respect of their incentive interests in SFH. Consistent with the Fortress Transaction, we recorded non-cash incentive compensation expense of approximately $4 million , with an equal and offsetting increase to additional paid-in-capital. Again, the impact to the Company was non-cash, equity neutral, and not tax deductible. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual 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 2019 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2018 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed in Note 2 below. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Leases In February of 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-02. We adopted the amendments of these ASUs as of January 1, 2019. See Note 13 for additional information on the adoption of ASU 2016-02. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Financial Instruments - Credit Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets over their expected lives 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. We would expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the nature and growth of the Company’s loan portfolio and the economic environment at that time. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. The Company has performed limited parallel testing and expects to perform more comprehensive testing in the third quarter of 2019. We continue to refine our model to estimate the expected credit losses as well as develop the necessary changes to our processes and internal controls in order to comply with this ASU. As we finalize the impact on our consolidated financial statements and related disclosures, we will provide further disclosure regarding the estimated impact on our allowance for finance receivable losses. The Company’s implementation team has also been working with our investment advisor to develop a new process to comply with this ASU as it relates to available-for-sale debt securities and the related disclosure requirements. We believe the adoption of this ASU will have a material effect on our consolidated financial statements through an increase to the allowance for finance receivable losses, an increase to deferred tax assets, and a corresponding one-time cumulative reduction to retained earnings, net of tax, in the consolidated balance sheet as of the beginning of the year of adoption. The actual impact will depend on the characteristics of our finance receivables, current economic conditions, as well as our economic and loss forecasts at the time of adoption. Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The amendments in this ASU become effective for fiscal years beginning January 1, 2021. In July of 2019, the FASB announced the proposal of a one-year deferral of this ASU to become effective for fiscal years beginning January 1, 2022. We have a cross-functional implementation team and a project plan to ensure we comply with all the amendments in this ASU at the time of adoption. We continue to make progress in evaluating the potential impact of the adoption of the ASU on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the six months ended June 30, 2019 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Finance Receivables | 3. Finance Receivables Our finance receivables consist of personal loans, which are non-revolving, with a fixed-rate, a fixed term of three to six years , and are secured by automobiles, other titled collateral, or are unsecured. Prior to September 30, 2018, our finance receivables also included other receivables, which consist of our liquidating loan portfolios: real estate loans, retail sales finance contracts, and revolving retail accounts. We continue to service or sub-service liquidating real estate loans and retail sales finance contracts. Effective September 30, 20 18, our real estate loans were transferred from held for investment to held for sale. See Notes 5, 6 and 7 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K for more information about Other Receivables. Net finance receivables consist of our total portfolio of personal loans. Components of our personal loans were as follows: (dollars in millions) June 30, December 31, Gross receivables * $ 16,808 $ 15,936 Unearned points and fees (218 ) (200 ) Accrued finance charges 254 253 Deferred origination costs 136 133 Total $ 16,980 $ 16,122 * Gross receivables equal the UPB except for the following: • Finance receivables purchased as a performing receivable — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase to reflect the finance receivable balance at its initial fair value; and • Purchased credit impaired finance receivables — gross receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. At June 30, 2019 and December 31, 2018 , unused lines of credit extended to customers by the Company were immaterial . CREDIT QUALITY INDICATOR We consider the value of the collateral, the concentration of secured loans, and the delinquency status of our finance receivables as our primary credit quality indicators. At June 30, 2019 and December 31, 2018 , 50% and 48% of our personal loans were secured by titled collateral, respectively. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and we transfer collection of these accounts to our centralized operations. At 90 days or more contractually past due, we consider our finance receivables to be nonperforming. The following is a summary of our personal loans held for investment by number of days delinquent: (dollars in millions) June 30, December 31, Performing Current $ 16,325 $ 15,373 30-59 days past due 220 228 60-89 days past due 144 160 Total performing 16,689 15,761 Nonperforming 90-179 days past due 284 353 180 days or more past due 7 8 Total nonperforming 291 361 Total $ 16,980 $ 16,122 PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of personal loans held for investment and real estate loans held for sale purchased in connection with the OneMain Acquisition and the Fortress Acquisition, respectively. We report the carrying amount of our purchased credit impaired personal loans in net finance receivables, less allowance for finance receivable losses, and our purchased credit impaired real estate loans in finance receivables held for sale as discussed below. At June 30, 2019 and December 31, 2018 , finance receivables held for sale totaled $74 million and $103 million , respectively, which include purchased credit impaired real estate loans, as well as TDR real estate loans. See Note 5 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired finance receivables were as follows: (dollars in millions) June 30, December 31, 2018 Personal Loans Carrying amount, net of allowance $ 58 $ 89 Outstanding balance (a) 100 135 Allowance for purchased credit impaired finance receivable losses (b) — — Real Estate Loans - Held for Sale Carrying amount $ 21 $ 28 Outstanding balance (a) 38 48 (a) Outstanding balance is defined as UPB of the loans with a net carrying amount. (b) The allowance for purchased credit impaired finance receivable losses reflects the carrying value of the purchased credit impaired loans held for investment exceeding the present value of the expected cash flows. As indicated above, no allowance was required as of June 30, 2019 or December 31, 2018 . Changes in accretable yield for purchased credit impaired finance receivables were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans Balance at beginning of period $ 34 $ 49 $ 39 $ 47 Accretion (4 ) (8 ) (9 ) (14 ) Reclassifications from nonaccretable difference * 16 11 16 19 Balance at end of period $ 46 $ 52 $ 46 $ 52 Real Estate Loans - Held for Sale Balance at beginning of period $ 23 $ 52 $ 27 $ 53 Accretion — (1 ) (1 ) (2 ) Transfer due to finance receivables sold — — (3 ) — Balance at end of period $ 23 $ 51 $ 23 $ 51 * 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 were as follows: (dollars in millions) June 30, December 31, 2018 Personal Loans TDR gross receivables (a) $ 546 $ 449 TDR net receivables (b) 549 452 Allowance for TDR finance receivable losses 227 169 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 56 $ 89 TDR net receivables (b) 57 75 (a) TDR gross receivables — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase if previously purchased as a performing receivable. (b) TDR net receivables — TDR gross receivables net of unearned points and fees, accrued finance charges, and deferred origination costs. As of June 30, 2019 , we had no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Other Receivables * Total Three Months Ended June 30, 2019 TDR average net receivables $ 527 $ 58 $ 585 TDR finance charges recognized 12 1 13 Three Months Ended June 30, 2018 TDR average net receivables $ 366 $ 137 $ 503 TDR finance charges recognized 11 2 13 Six Months Ended June 30, 2019 TDR average net receivables $ 502 $ 61 $ 563 TDR finance charges recognized 23 2 25 Six Months Ended June 30, 2018 TDR average net receivables $ 351 $ 138 $ 489 TDR finance charges recognized 22 4 26 * Other Receivables held for sale included in the table above consist of real estate loans and were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 TDR average net receivables $ 58 $ 88 $ 61 $ 89 TDR finance charges recognized 1 2 2 3 Information regarding the new volume of the TDR finance receivables held for investment, consisting of personal loans, are reflected in the following table. Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans Pre-modification TDR net finance receivables $ 124 $ 84 $ 244 $ 178 Post-modification TDR net finance receivables: Rate reduction $ 85 $ 63 $ 170 $ 132 Other * 39 21 74 46 Total post-modification TDR net finance receivables $ 124 $ 84 $ 244 $ 178 Number of TDR accounts 18,307 12,711 36,813 27,363 * “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. New volume of TDR other receivables for the three and six months ended June 30, 2019 and 2018 are not included in the table above as they were immaterial. Personal loans held for investment that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table. Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans TDR net finance receivables * $ 21 $ 18 $ 40 $ 35 Number of TDR accounts 3,171 2,606 6,096 5,312 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. TDR other receivables for the three and six months ended June 30, 2019 and 2018 that defaulted during the previous 12-month period were immaterial. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | 4. Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Other Receivables Total Three Months Ended June 30, 2019 Balance at beginning of period $ 733 $ — $ 733 Provision for finance receivable losses 268 — 268 Charge-offs (290 ) — (290 ) Recoveries 33 — 33 Balance at end of period $ 744 $ — $ 744 Three Months Ended June 30, 2018 Balance at beginning of period $ 661 $ 24 $ 685 Provision for finance receivable losses 260 (1 ) 259 Charge-offs (276 ) — (276 ) Recoveries 29 1 30 Balance at end of period $ 674 $ 24 $ 698 Six Months Ended June 30, 2019 Balance at beginning of period $ 726 $ — $ 726 Provision for finance receivable losses 554 — 554 Charge-offs (601 ) — (601 ) Recoveries 60 — 60 Other * 5 — 5 Balance at end of period $ 744 $ — $ 744 Six Months Ended June 30, 2018 Balance at beginning of period $ 668 $ 24 $ 692 Provision for finance receivable losses 513 (1 ) 512 Charge-offs (563 ) (1 ) (564 ) Recoveries 56 2 58 Balance at end of period $ 674 $ 24 $ 698 * Other represents the increase of SFC’s allowance for finance receivable losses due to the contribution of Springleaf Consumer Loan Holding Company (“SCLH”) which was effective as of January 1, 2019. The contribution is presented prospectively because it is deemed to be a contribution of net assets. See Note 7 for more information regarding the contribution. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) June 30, December 31, Allowance for finance receivable losses: Collectively evaluated for impairment $ 517 $ 557 Purchased credit impaired finance receivables — — TDR finance receivables 227 169 Total $ 744 $ 726 Finance receivables: Collectively evaluated for impairment $ 16,373 $ 15,581 Purchased credit impaired finance receivables 58 89 TDR finance receivables 549 452 Total $ 16,980 $ 16,122 Allowance for finance receivable losses as a percentage of finance receivables 4.38 % 4.50 % |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Finance Receivables Held for Sale | 5. Finance Receivables Held for Sale We reported finance receivables held for sale of $74 million at June 30, 2019 and $103 million at December 31, 2018 , which consist entirely of real estate loans and are carried at the lower of cost or fair value, applied on an aggregate basis. In February 2019, we sold a portfolio of real estate loans with a carrying value of $ 16 million for aggregate cash proceeds of $19 million and recorded a net gain in other revenues of $ 3 million (“February 2019 Real Estate Loan Sale”). After the recognition of the February 2019 Real Estate Loan Sale, the carrying value of the remaining loans classified in finance receivables held for sale exceeded their fair value and, accordingly, we marked the remaining loans to fair value and recorded an impairment in other revenue of $3 million . At June 30, 2019 , the carrying value of our finance receivables held for sale was not impaired. We did not have any other material transfers to or from finance receivables held for sale during the three and six months ended June 30, 2019 and 2018 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 6. Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 10 $ — $ — $ 10 Obligations of states, municipalities, and political subdivisions 72 1 — 73 Certificates of deposit and commercial paper 73 — — 73 Non-U.S. government and government sponsored entities 141 4 — 145 Corporate debt 1,029 32 (1 ) 1,060 Mortgage-backed, asset-backed, and collateralized: RMBS 118 2 — 120 CMBS 67 — — 67 CDO/ABS 88 2 — 90 Total $ 1,598 $ 41 $ (1 ) $ 1,638 December 31, 2018 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 21 $ — $ — $ 21 Obligations of states, municipalities, and political subdivisions 91 — (1 ) 90 Certificates of deposit and commercial paper 63 — — 63 Non-U.S. government and government sponsored entities 145 — (2 ) 143 Corporate debt 1,027 2 (32 ) 997 Mortgage-backed, asset-backed, and collateralized: RMBS 130 — (2 ) 128 CMBS 72 — (1 ) 71 CDO/ABS 94 1 (1 ) 94 Total $ 1,643 $ 3 $ (39 ) $ 1,607 Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2019 U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions — — 9 — 9 — Non-U.S. government and government sponsored entities 7 — 26 — 33 — Corporate debt 40 — 65 (1 ) 105 (1 ) Mortgage-backed, asset-backed, and collateralized: RMBS — — 24 — 24 — CMBS 3 — 19 — 22 — CDO/ABS 12 — 6 — 18 — Total $ 62 $ — $ 152 $ (1 ) $ 214 $ (1 ) December 31, 2018 U.S. government and government sponsored entities $ 3 $ — $ 16 $ — $ 19 $ — Obligations of states, municipalities, and political subdivisions 10 — 57 (1 ) 67 (1 ) Non-U.S. government and government sponsored entities 19 (1 ) 97 (1 ) 116 (2 ) Corporate debt 377 (14 ) 448 (18 ) 825 (32 ) Mortgage-backed, asset-backed, and collateralized: RMBS 23 — 78 (2 ) 101 (2 ) CMBS 10 — 54 (1 ) 64 (1 ) CDO/ABS 18 — 33 (1 ) 51 (1 ) Total $ 460 $ (15 ) $ 783 $ (24 ) $ 1,243 $ (39 ) On a lot basis, we had 469 and 1,767 investment securities in an unrealized loss position at June 30, 2019 and December 31, 2018 , respectively. We do not consider the unrealized losses to be credit-related as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at June 30, 2019 , other-than-temporary impairments on investment securities that we intend to sell were immaterial. We do not have plans to sell any of the remaining investment securities with unrealized losses as of June 30, 2019 , 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 and six months ended June 30, 2019 , other-than-temporary impairment credit losses, primarily on corporate debt, in investment revenues were immaterial . During the three months ended June 30, 2018 , we did no t recognize any other-than-temporary impairment credit losses and during the six months ended June 30, 2018 , other-than-temporary impairment credit losses were immaterial. There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities during the three and six months ended June 30, 2019 and 2018 . The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2019 totaled $180 million and $209 million , respectively. The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2018 totaled $69 million and $140 million , respectively. The realized gains and losses were immaterial during the three and six months ended June 30, 2019 and 2018 . Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2019 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 $ 243 $ 243 Due after 1 year through 5 years 530 520 Due after 5 years through 10 years 445 427 Due after 10 years 143 135 Mortgage-backed, asset-backed, and collateralized securities 277 273 Total $ 1,638 $ 1,598 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 $525 million and $515 million at June 30, 2019 and December 31, 2018 , respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) June 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 34 43 Mortgage-backed, asset-backed, and collateralized bonds 6 2 Total bonds 41 46 Preferred stock (a) 16 19 Common stock (a) 25 21 Other long-term investments 1 1 Total $ 83 $ 87 (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. The unrealized gains and losses on other securities were immaterial for the three months ended June 30, 2019 and 2018. We recognized $5 million in unrealized gains and $3 million in unrealized losses on other securities for the six months ended June 30, 2019 and 2018, respectively. We report these unrealized gains and losses in investment revenues. Net realized gains and losses on other securities sold or redeemed were immaterial for the three and six months ended June 30, 2019 and 2018 . We report these gains and losses in investment revenues. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Notes Receivable from Parent Included in notes receivable from parent is SFC’s note receivable from SFI. The note from SFI is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022. The note receivable totaled $229 million at June 30, 2019 and $232 million at December 31, 2018 . The interest rate was 5.75% at June 30, 2019 and 5.59% at December 31, 2018 . The rate is determined each quarter based on the lender’s cost of funds rate from the prior quarter’s end. For the three and six months ending June 30, 2019 , SFC recorded interest income of $3 million and $7 million , respectively, which we report in interest income on notes receivable from parent. For the three and six months ended June 30, 2018 , SFC recorded interest income of $5 million and $10 million , respectively. Notes receivable from parent also included an additional $32 million at June 30, 2019 and $28 million at December 31, 2018 , due to a note receivable from SFI held by SMHC which was contributed to SFC on December 15, 2018. The interest rate on the additional note was 6.00% at June 30, 2019 . The rate is determined each quarter based on the lender’s cost of funds rate from the prior quarter’s end plus 25 bps. Interest income on the additional note was immaterial for the three and six months ending June 30, 2019 . See Note 12 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K. Springleaf Consumer Loan Holding Company (“SCLH”) Contribution On March 10, 2019, all of the outstanding capital stock of SCLH, a subsidiary of SFI, was contributed to SFC and SCLH became a wholly owned direct subsidiary of SFC. The contribution was effective as of January 1, 2019 and increased SFC’s total shareholder’s equity and total assets by $34 million and $53 million , respectively. The contribution is presented prospectively because it is deemed to be a contribution of net assets. Parent and Affiliate Receivables and Payables Receivables from parent and affiliate totaled $12 million and $18 million at June 30, 2019 and December 31, 2018 , respectively, and are included in other assets. Payables to parent and affiliate are included in other liabilities and were immaterial at December 31, 2018 . There were no payables to parent or affiliate at June 30, 2019 . |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at June 30, 2019 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Notes (a) Junior Subordinated Debt (a) Total Interest rates (b) 2.16% - 6.94% 5.63% - 8.25% 4.35 % Remainder of 2019 — — — — 2020 — 1,000 — 1,000 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024-2067 — 4,649 350 4,999 Securitizations (c) 7,083 — — 7,083 Total principal maturities $ 7,083 $ 8,470 $ 350 $ 15,903 Total carrying amount $ 7,057 $ 8,322 $ 172 $ 15,551 Debt issuance costs (d) $ (25 ) $ (76 ) $ — $ (101 ) (a) Pursuant to the SFC Base Indenture, the SFC supplemental indentures and the SFC Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the SFC Unsecured Senior Notes and Junior Subordinated Debenture. The OMH guarantees of SFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at June 30, 2019 . The interest rate on the remaining principal balance of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 4.35% as of June 30, 2019 . (c) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At June 30, 2019 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $29 million at June 30, 2019 and are reported in “Other assets”. SFC’S 6.625% SENIOR NOTES DUE 2028 OFFERING On May 9, 2019 , SFC issued a total of $800 million aggregate principal amount of 6.625% Senior Notes due 2028 (the “ 6.625% SFC Notes due 2028”) under the SFC Senior Notes Indentures, as supplemented by the SFC Eighth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. SFC’S 6.125% SENIOR NOTES DUE 2024 OFFERINGS On February 22, 2019 , SFC issued a total of $1.0 billion aggregate principal amount of 6.125% Senior Notes due 2024 (the “ 6.125% SFC Notes due 2024”) under the SFC Senior Notes Indentures, as supplemented by the SFC Seventh Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. Subsequent to June 30, 2019, SFC issued on July 2, 2019 an additional $300 million aggregate principal amount of the 6.125% SFC Notes due 2024 under the terms of the SFC Senior Notes Indentures, as supplemented by the SFC Seventh Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. See Note 16 Subsequent Events for further information. REDEMPTION OF 5.25% SENIOR NOTES DUE 2019 As a result of the February 2019 offering of the 6.125% SFC Notes due 2024 as described above, SFC issued a notice of redemption to redeem all of the outstanding principal amount of its 5.25% Senior Notes due 2019. On March 25, 2019 , SFC paid an aggregate amount of $706 million , inclusive of accrued interest and premiums, to complete the redemption. We recognized approximately $21 million of net loss on the repurchases and repayments of debt for the six months ended June 30, 2019 . REDEMPTION OF 6.00% SENIOR NOTES DUE 2020 On March 15, 2019 , SFC issued a notice of redemption of its 6.00% Senior Notes due 2020. On April 15, 2019 , SFC paid an aggregate amount of $317 million , inclusive of accrued interest and premiums, to complete the redemption. In connection with the redemption we recognized approximately $11 million of net loss on repurchases and repayments of debt for the three and six months ended June 30, 2019 . |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 9. Variable Interest Entities CONSOLIDATED VIES We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as secured borrowings. See Note 3 and Note 14 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K for more detail regarding VIEs. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows: (dollars in millions) June 30, December 31, Assets Cash and cash equivalents $ 1 $ 2 Finance receivables - Personal loans 7,999 8,480 Allowance for finance receivable losses 369 444 Restricted cash and restricted cash equivalents 409 479 Other assets 29 26 Liabilities Long-term debt $ 7,057 $ 7,510 Other liabilities 14 14 Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $82 million and $164 million for the three and six months ended June 30, 2019 , compared to $87 million and $173 million for the three and six months ended June 30, 2018 . 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. The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our total securitized borrowings at June 30, 2019 were $7.1 billion . REVOLVING CONDUIT FACILITIES We had access to 13 conduit facilities with a total borrowing capacity of $6.7 billion as of June 30, 2019 . Our conduit facilities’ revolving period end ranges from one to three years. Principal balances of outstanding loans, if any, are due and payable in full ranging from three to nine years as of June 30, 2019 . Amounts drawn on these facilities are collateralized by our personal loans. At June 30, 2019 , no amounts were drawn under these facilities. |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Insurance | 10. Insurance Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): At or for the Six Months Ended June 30, (dollars in millions) 2019 2018 Balance at beginning of period $ 117 $ 154 Less reinsurance recoverables (4 ) (23 ) Net balance at beginning of period 113 131 Additions for losses and loss adjustment expenses incurred to: Current year 111 102 Prior years * (15 ) (5 ) Total 96 97 Reductions for losses and loss adjustment expenses paid related to: Current year (50 ) (47 ) Prior years (48 ) (51 ) Total (98 ) (98 ) Net balance at end of period 111 130 Plus reinsurance recoverables 3 4 Transfer of reserves — (19 ) Balance at end of period $ 114 $ 115 * Reflects (i) a redundancy in the prior years’ net reserves of $15 million at June 30, 2019 primarily due to a favorable development of credit life, disability, and unemployment claims during the year and (ii) a redundancy in the prior years’ net reserves of $5 million at June 30, 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2019 Balance at beginning of period $ 2 $ (3 ) $ (1 ) $ (2 ) Other comprehensive income before reclassifications 28 — 2 30 Balance at end of period $ 30 $ (3 ) $ 1 $ 28 Three Months Ended June 30, 2018 Balance at beginning of period $ (19 ) $ (2 ) $ 1 $ (20 ) Other comprehensive income (loss) before reclassifications (7 ) 2 (4 ) (9 ) Impact of AOCI reclassification due to the Tax Act 2 (1 ) 2 3 Balance at end of period $ (24 ) $ (1 ) $ (1 ) $ (26 ) Six Months Ended June 30, 2019 Balance at beginning of period $ (28 ) $ (2 ) $ (4 ) $ (34 ) Other comprehensive income before reclassifications 58 (1 ) 5 62 Balance at end of period $ 30 $ (3 ) $ 1 $ 28 Six Months Ended June 30, 2018 Balance at beginning of period $ 4 $ (1 ) $ 3 $ 6 Other comprehensive income (loss) before reclassifications (30 ) 1 (6 ) (35 ) Impact of AOCI reclassification due to the Tax Act 2 (1 ) 2 3 Balance at end of period $ (24 ) $ (1 ) $ (1 ) $ (26 ) Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three and six months ended June 30, 2019 and 2018. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes We had a net deferred tax asset of $91 million and $130 million at June 30, 2019 and December 31, 2018 , respectively. The decrease in our net deferred tax asset of $39 million was primarily driven by the change in mark-to-market valuation of our receivables and amortization of tax goodwill. The effective tax rate for the six months ended June 30, 2019 was 24.2% , compared to 37.0% for the same period in 2018 . The effective tax rate for the six months ended June 30, 2019 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes. The effective tax rate for the six months ended June 30, 2018 differed from the federal statutory rate of 21% primarily due to the effect of discrete tax expense for non-deductible compensation and state income taxes. We are currently under examination of our U.S. federal tax returns for the years 2014 to 2016 by the IRS. We are also under examination by various states for the years 2011 to 2017. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $13 million at June 30, 2019 and $17 million at December 31, 2018 . 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. |
Leases and Contingencies
Leases and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases and Contingencies | 13. Leases and Contingencies LEASES Our leases primarily consist of leased office space, automobiles, and information technology equipment. As described in Note 2 , we have adopted ASU 2016-02, Leases , as of January 1, 2019, using the optional transition approach. As a result of this election, the prior periods presented have not been adjusted. Additionally, we have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component. All our leases are classified as operating leases. At inception of an arrangement we determine if a lease exists. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. At lease commencement date, we recognize right-of-use assets and lease liabilities measured at the present value of lease payments over the lease term. Since our operating leases do not provide an implicit rate, we utilize the best available information to determine our incremental borrowing rate, which is used to calculate the present value of lease payments. The right-of-use asset also includes any prepaid fixed lease payments and excludes lease incentives. Options to extend or terminate a lease may be included in our lease arrangements. We reflect the renewal or termination option in the right-of-use asset and lease liability when it is reasonably certain that we will exercise those options. Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in “Other operating expenses” in our condensed consolidated statement of operations. The operating lease right-of-use assets are included in “Other assets” and the operating lease liabilities are included in “Other liabilities” in our condensed consolidated balance sheet. Our operating leases have remaining lease terms of one year to ten years . In the normal course of business, we will renew leases that expire or replace them with leases on other properties. In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments. As of June 30, 2019 , our operating right-of-use asset balance was $165 million , and our operating lease liability balance was $178 million . Our operating lease costs totaled $15 million and $32 million for three and six months ended June 30, 2019 , respectively. Our variable lease costs totaled $4 million and $8 million for three and six months ended June 30, 2019 , respectively. Our sublease income was immaterial for three and six months ended June 30, 2019 . As of June 30, 2019 , maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2019 (excluding the six months ended June 30, 2019) $ 31 2020 57 2021 46 2022 32 2023 18 2024 8 Thereafter 7 Total lease payments 199 Imputed interest (21 ) Total $ 178 Weighted Average Remaining Lease Term 3.9 years Weighted Average Discount Rate 3.76 % As of December 31, 2018, under ASC 840, Leases, annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments 2019 $ 60 2020 50 2021 37 2022 26 2023 12 2024+ 12 Total $ 197 Rental expense totaled $72 million in 2018. LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information At June 30, 2019 , our two reportable segments were Consumer and Insurance and Acquisitions and Servicing. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include our liquidating real estate loans and our liquidating retail sales finance portfolios. Our segment accounting policies are the same as those disclosed in Note 3 and Note 23 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K. We report the operating results of our segments and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for interest expense and operating costs, and (ii) excludes the impact of applying purchase accounting. The following tables present information about our segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total Three Months Ended June 30, 2019 Interest income $ 999 $ — $ 2 $ (1 ) $ 1,000 Interest expense 232 — 1 5 238 Provision for finance receivable losses 263 — — 5 268 Net interest income after provision for finance receivable losses 504 — 1 (11 ) 494 Other revenues (a) 144 12 4 — 160 Other expenses 378 6 4 6 394 Income (loss) before income tax expense (benefit) $ 270 $ 6 $ 1 $ (17 ) $ 260 Three Months Ended June 30, 2018 Interest income $ 908 $ — $ 5 $ (11 ) $ 902 Interest expense 212 — 5 3 220 Provision for finance receivable losses 260 — (3 ) 2 259 Net interest income after provision for finance receivable losses 436 — 3 (16 ) 423 Other revenues (a) 108 — 4 26 138 Other expenses 385 1 108 12 506 Income (loss) before income tax expense (benefit) $ 159 $ (1 ) $ (101 ) $ (2 ) $ 55 (a) Other revenues reported in “Other” primarily includes interest income on the SFC’s notes receivable from SFI. See Note 7 for further information on the notes receivable from parent. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total At or for the Six Months Ended June 30, 2019 Interest income $ 1,953 $ — $ 5 $ (3 ) $ 1,955 Interest expense 462 — 3 8 473 Provision for finance receivable losses 539 — — 15 554 Net interest income after provision for finance receivable losses 952 — 2 (26 ) 928 Other revenues (a) 290 19 10 (7 ) 312 Other expenses 740 13 10 11 774 Income (loss) before income tax expense (benefit) $ 502 $ 6 $ 2 $ (44 ) $ 466 Assets (b) $ 18,891 $ — $ 348 $ 2,049 $ 21,288 At or for the Six Months Ended June 30, 2018 Interest income $ 1,779 $ — $ 9 $ (26 ) $ 1,762 Interest expense 406 — 9 5 420 Provision for finance receivable losses 517 — (5 ) — 512 Net interest income after provision for finance receivable losses 856 — 5 (31 ) 830 Other revenues (a) 211 — 7 51 269 Other expenses 739 3 113 18 873 Income (loss) before income tax expense (benefit) $ 328 $ (3 ) $ (101 ) $ 2 $ 226 Assets (b) $ 17,102 $ — $ 563 $ 2,113 $ 19,778 (a) Other revenues reported in “Other” primarily includes interest income on the SFC’s notes receivable from SFI. See Note 7 for further information on the notes receivable from parent. (b) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 7 for further information on the note receivable from parent. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 15. Fair Value Measurements The accounting policies of our Fair Value Measurements are the same as those disclosed in Note 3 and Note 24 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 June 30, 2019 Assets Cash and cash equivalents $ 729 $ 56 $ — $ 785 $ 785 Investment securities 38 1,678 5 1,721 1,721 Net finance receivables, less allowance for finance receivable losses — — 17,831 17,831 16,236 Finance receivables held for sale — — 80 80 74 Notes receivable from parent — 261 — 261 261 Restricted cash and restricted cash equivalents 420 — — 420 420 Other assets * — 12 12 24 24 Liabilities Long-term debt $ — $ 16,570 $ — $ 16,570 $ 15,551 December 31, 2018 Assets Cash and cash equivalents $ 602 $ 61 $ — $ 663 $ 663 Investment securities 34 1,655 5 1,694 1,694 Net finance receivables, less allowance for finance receivable losses — — 16,692 16,692 15,396 Finance receivables held for sale — — 103 103 103 Notes receivable from parent — 260 — 260 260 Restricted cash and restricted cash equivalents 499 — — 499 499 Other assets * — 19 15 34 34 Liabilities Long-term debt $ — $ 15,041 $ — $ 15,041 $ 15,178 * Other assets at June 30, 2019 and December 31, 2018 include receivables from parent and affiliates and miscellaneous receivables related to our liquidating loan portfolios. Total carrying value of receivables from parent and affiliates totaled $12 million at June 30, 2019 and $18 million at December 31, 2018 . FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 June 30, 2019 Assets Cash equivalents in mutual funds $ 462 $ — $ — $ 462 Cash equivalents in securities — 56 — 56 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 10 — 10 Obligations of states, municipalities, and political subdivisions — 73 — 73 Certificates of deposit and commercial paper — 73 — 73 Non-U.S. government and government sponsored entities — 145 — 145 Corporate debt — 1,058 2 1,060 RMBS — 120 — 120 CMBS — 67 — 67 CDO/ABS — 89 1 90 Total available-for-sale securities — 1,635 3 1,638 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 33 1 34 RMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 40 1 41 Preferred stock 13 3 — 16 Common stock 25 — — 25 Other long-term investments — — 1 1 Total other securities 38 43 2 83 Total investment securities 38 1,678 5 1,721 Restricted cash in mutual funds 417 — — 417 Total $ 917 $ 1,734 $ 5 $ 2,656 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2018 Assets Cash equivalents in mutual funds $ 415 $ — $ — $ 415 Cash equivalents in securities — 61 — 61 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 21 — 21 Obligations of states, municipalities, and political subdivisions — 90 — 90 Certificates of deposit and commercial paper — 63 — 63 Non-U.S. government and government sponsored entities — 143 — 143 Corporate debt — 995 2 997 RMBS — 128 — 128 CMBS — 71 — 71 CDO/ABS — 93 1 94 Total available-for-sale securities — 1,604 3 1,607 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 42 1 43 RMBS — 1 — 1 CDO/ABS — 1 — 1 Total bonds — 45 1 46 Preferred stock 13 6 — 19 Common stock 21 — — 21 Other long-term investments — — 1 1 Total other securities 34 51 2 87 Total investment securities 34 1,655 5 1,694 Restricted cash in mutual funds 482 — — 482 Total $ 931 $ 1,716 $ 5 $ 2,652 Due to the insignificant activity within the Level 3 assets during the three and six months ended June 30, 2019 and 2018 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs in the tables above. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial for the three and six months ended June 30, 2019 and 2018 . FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 24 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2018 Annual Report on Form 10-K for information regarding our methods and assumptions used to estimate fair value. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Additional Offering of SFC’s 6.125% Senior Notes Due 2024 On July 2, 2019 , SFC issued an additional $300 million aggregate principal amount of 6.125% SFC Notes due 2024 under the terms of the SFC Senior Notes Indentures, as supplemented by the SFC Seventh Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. Cash Dividend On July 29, 2019 , OMH declared a dividend of $2.25 per share, consisting of the regular quarterly dividend of $0.25 per share and a special dividend of $2.00 per share, payable on September 13, 2019 to record holders of OMH’s common stock as of the close of business on August 27, 2019 . To provide funding for the OMH dividend, on July 29, 2019, the SFC board of directors authorized a dividend in the amount of up to $310 million payable on or after September 10, 2019 to its sole shareholder, SFI. Concurrently on July 29, 2019 , the SFI board of directors authorized a dividend in the amount of up to $310 million payable on or after September 10, 2019 to its sole shareholder, OMH. OMFIT 2019-A Securitization On August 1, 2019 , we issued $789 million principal amount of notes backed by personal loans (“OMFIT 2019-A”). OMFIT 2019-A has a revolving period of seven years , during which no principal payments are required to be made. We initially retained approximately $39 million of the asset-backed notes, representing at least 5% |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual 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 2019 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2018 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed in Note 2 below. |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED AND ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Leases In February of 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-02. We adopted the amendments of these ASUs as of January 1, 2019. See Note 13 for additional information on the adoption of ASU 2016-02. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Financial Instruments - Credit Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets over their expected lives 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. We would expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the nature and growth of the Company’s loan portfolio and the economic environment at that time. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all updates from this ASU at the time of adoption. The Company has performed limited parallel testing and expects to perform more comprehensive testing in the third quarter of 2019. We continue to refine our model to estimate the expected credit losses as well as develop the necessary changes to our processes and internal controls in order to comply with this ASU. As we finalize the impact on our consolidated financial statements and related disclosures, we will provide further disclosure regarding the estimated impact on our allowance for finance receivable losses. The Company’s implementation team has also been working with our investment advisor to develop a new process to comply with this ASU as it relates to available-for-sale debt securities and the related disclosure requirements. We believe the adoption of this ASU will have a material effect on our consolidated financial statements through an increase to the allowance for finance receivable losses, an increase to deferred tax assets, and a corresponding one-time cumulative reduction to retained earnings, net of tax, in the consolidated balance sheet as of the beginning of the year of adoption. The actual impact will depend on the characteristics of our finance receivables, current economic conditions, as well as our economic and loss forecasts at the time of adoption. Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The amendments in this ASU become effective for fiscal years beginning January 1, 2021. In July of 2019, the FASB announced the proposal of a one-year deferral of this ASU to become effective for fiscal years beginning January 1, 2022. We have a cross-functional implementation team and a project plan to ensure we comply with all the amendments in this ASU at the time of adoption. We continue to make progress in evaluating the potential impact of the adoption of the ASU on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the six months ended June 30, 2019 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Net finance receivables consist of our total portfolio of personal loans. Components of our personal loans were as follows: (dollars in millions) June 30, December 31, Gross receivables * $ 16,808 $ 15,936 Unearned points and fees (218 ) (200 ) Accrued finance charges 254 253 Deferred origination costs 136 133 Total $ 16,980 $ 16,122 * Gross receivables equal the UPB except for the following: • Finance receivables purchased as a performing receivable — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase to reflect the finance receivable balance at its initial fair value; and • Purchased credit impaired finance receivables — gross receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. |
Summary of net finance receivables by type and by days delinquent | The following is a summary of our personal loans held for investment by number of days delinquent: (dollars in millions) June 30, December 31, Performing Current $ 16,325 $ 15,373 30-59 days past due 220 228 60-89 days past due 144 160 Total performing 16,689 15,761 Nonperforming 90-179 days past due 284 353 180 days or more past due 7 8 Total nonperforming 291 361 Total $ 16,980 $ 16,122 |
Schedule of purchased credit impaired finance receivables held for investment and held for sale | Information regarding our purchased credit impaired finance receivables were as follows: (dollars in millions) June 30, December 31, 2018 Personal Loans Carrying amount, net of allowance $ 58 $ 89 Outstanding balance (a) 100 135 Allowance for purchased credit impaired finance receivable losses (b) — — Real Estate Loans - Held for Sale Carrying amount $ 21 $ 28 Outstanding balance (a) 38 48 (a) Outstanding balance is defined as UPB of the loans with a net carrying amount. (b) The allowance for purchased credit impaired finance receivable losses reflects the carrying value of the purchased credit impaired loans held for investment exceeding the present value of the expected cash flows. As indicated above, no allowance was required as of June 30, 2019 or December 31, 2018 . |
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale | Changes in accretable yield for purchased credit impaired finance receivables were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans Balance at beginning of period $ 34 $ 49 $ 39 $ 47 Accretion (4 ) (8 ) (9 ) (14 ) Reclassifications from nonaccretable difference * 16 11 16 19 Balance at end of period $ 46 $ 52 $ 46 $ 52 Real Estate Loans - Held for Sale Balance at beginning of period $ 23 $ 52 $ 27 $ 53 Accretion — (1 ) (1 ) (2 ) Transfer due to finance receivables sold — — (3 ) — Balance at end of period $ 23 $ 51 $ 23 $ 51 * Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) June 30, December 31, 2018 Personal Loans TDR gross receivables (a) $ 546 $ 449 TDR net receivables (b) 549 452 Allowance for TDR finance receivable losses 227 169 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 56 $ 89 TDR net receivables (b) 57 75 (a) TDR gross receivables — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase if previously purchased as a performing receivable. (b) TDR net receivables — TDR gross receivables net of unearned points and fees, accrued finance charges, and deferred origination costs. |
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Other Receivables * Total Three Months Ended June 30, 2019 TDR average net receivables $ 527 $ 58 $ 585 TDR finance charges recognized 12 1 13 Three Months Ended June 30, 2018 TDR average net receivables $ 366 $ 137 $ 503 TDR finance charges recognized 11 2 13 Six Months Ended June 30, 2019 TDR average net receivables $ 502 $ 61 $ 563 TDR finance charges recognized 23 2 25 Six Months Ended June 30, 2018 TDR average net receivables $ 351 $ 138 $ 489 TDR finance charges recognized 22 4 26 * Other Receivables held for sale included in the table above consist of real estate loans and were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 TDR average net receivables $ 58 $ 88 $ 61 $ 89 TDR finance charges recognized 1 2 2 3 |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale | Other Receivables held for sale included in the table above consist of real estate loans and were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 TDR average net receivables $ 58 $ 88 $ 61 $ 89 TDR finance charges recognized 1 2 2 3 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables held for investment, consisting of personal loans, are reflected in the following table. Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans Pre-modification TDR net finance receivables $ 124 $ 84 $ 244 $ 178 Post-modification TDR net finance receivables: Rate reduction $ 85 $ 63 $ 170 $ 132 Other * 39 21 74 46 Total post-modification TDR net finance receivables $ 124 $ 84 $ 244 $ 178 Number of TDR accounts 18,307 12,711 36,813 27,363 * “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. |
Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Personal loans held for investment that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table. Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Personal Loans TDR net finance receivables * $ 21 $ 18 $ 40 $ 35 Number of TDR accounts 3,171 2,606 6,096 5,312 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva_2
Allowance for Finance Receivable Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Other Receivables Total Three Months Ended June 30, 2019 Balance at beginning of period $ 733 $ — $ 733 Provision for finance receivable losses 268 — 268 Charge-offs (290 ) — (290 ) Recoveries 33 — 33 Balance at end of period $ 744 $ — $ 744 Three Months Ended June 30, 2018 Balance at beginning of period $ 661 $ 24 $ 685 Provision for finance receivable losses 260 (1 ) 259 Charge-offs (276 ) — (276 ) Recoveries 29 1 30 Balance at end of period $ 674 $ 24 $ 698 Six Months Ended June 30, 2019 Balance at beginning of period $ 726 $ — $ 726 Provision for finance receivable losses 554 — 554 Charge-offs (601 ) — (601 ) Recoveries 60 — 60 Other * 5 — 5 Balance at end of period $ 744 $ — $ 744 Six Months Ended June 30, 2018 Balance at beginning of period $ 668 $ 24 $ 692 Provision for finance receivable losses 513 (1 ) 512 Charge-offs (563 ) (1 ) (564 ) Recoveries 56 2 58 Balance at end of period $ 674 $ 24 $ 698 * Other represents the increase of SFC’s allowance for finance receivable losses due to the contribution of Springleaf Consumer Loan Holding Company (“SCLH”) which was effective as of January 1, 2019. The contribution is presented prospectively because it is deemed to be a contribution of net assets. See Note 7 for more information regarding the contribution. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) June 30, December 31, Allowance for finance receivable losses: Collectively evaluated for impairment $ 517 $ 557 Purchased credit impaired finance receivables — — TDR finance receivables 227 169 Total $ 744 $ 726 Finance receivables: Collectively evaluated for impairment $ 16,373 $ 15,581 Purchased credit impaired finance receivables 58 89 TDR finance receivables 549 452 Total $ 16,980 $ 16,122 Allowance for finance receivable losses as a percentage of finance receivables 4.38 % 4.50 % |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 10 $ — $ — $ 10 Obligations of states, municipalities, and political subdivisions 72 1 — 73 Certificates of deposit and commercial paper 73 — — 73 Non-U.S. government and government sponsored entities 141 4 — 145 Corporate debt 1,029 32 (1 ) 1,060 Mortgage-backed, asset-backed, and collateralized: RMBS 118 2 — 120 CMBS 67 — — 67 CDO/ABS 88 2 — 90 Total $ 1,598 $ 41 $ (1 ) $ 1,638 December 31, 2018 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 21 $ — $ — $ 21 Obligations of states, municipalities, and political subdivisions 91 — (1 ) 90 Certificates of deposit and commercial paper 63 — — 63 Non-U.S. government and government sponsored entities 145 — (2 ) 143 Corporate debt 1,027 2 (32 ) 997 Mortgage-backed, asset-backed, and collateralized: RMBS 130 — (2 ) 128 CMBS 72 — (1 ) 71 CDO/ABS 94 1 (1 ) 94 Total $ 1,643 $ 3 $ (39 ) $ 1,607 |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2019 U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions — — 9 — 9 — Non-U.S. government and government sponsored entities 7 — 26 — 33 — Corporate debt 40 — 65 (1 ) 105 (1 ) Mortgage-backed, asset-backed, and collateralized: RMBS — — 24 — 24 — CMBS 3 — 19 — 22 — CDO/ABS 12 — 6 — 18 — Total $ 62 $ — $ 152 $ (1 ) $ 214 $ (1 ) December 31, 2018 U.S. government and government sponsored entities $ 3 $ — $ 16 $ — $ 19 $ — Obligations of states, municipalities, and political subdivisions 10 — 57 (1 ) 67 (1 ) Non-U.S. government and government sponsored entities 19 (1 ) 97 (1 ) 116 (2 ) Corporate debt 377 (14 ) 448 (18 ) 825 (32 ) Mortgage-backed, asset-backed, and collateralized: RMBS 23 — 78 (2 ) 101 (2 ) CMBS 10 — 54 (1 ) 64 (1 ) CDO/ABS 18 — 33 (1 ) 51 (1 ) Total $ 460 $ (15 ) $ 783 $ (24 ) $ 1,243 $ (39 ) |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2019 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 $ 243 $ 243 Due after 1 year through 5 years 530 520 Due after 5 years through 10 years 445 427 Due after 10 years 143 135 Mortgage-backed, asset-backed, and collateralized securities 277 273 Total $ 1,638 $ 1,598 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) June 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 34 43 Mortgage-backed, asset-backed, and collateralized bonds 6 2 Total bonds 41 46 Preferred stock (a) 16 19 Common stock (a) 25 21 Other long-term investments 1 1 Total $ 83 $ 87 (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. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at June 30, 2019 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Notes (a) Junior Subordinated Debt (a) Total Interest rates (b) 2.16% - 6.94% 5.63% - 8.25% 4.35 % Remainder of 2019 — — — — 2020 — 1,000 — 1,000 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024-2067 — 4,649 350 4,999 Securitizations (c) 7,083 — — 7,083 Total principal maturities $ 7,083 $ 8,470 $ 350 $ 15,903 Total carrying amount $ 7,057 $ 8,322 $ 172 $ 15,551 Debt issuance costs (d) $ (25 ) $ (76 ) $ — $ (101 ) (a) Pursuant to the SFC Base Indenture, the SFC supplemental indentures and the SFC Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the SFC Unsecured Senior Notes and Junior Subordinated Debenture. The OMH guarantees of SFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at June 30, 2019 . The interest rate on the remaining principal balance of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 4.35% as of June 30, 2019 . (c) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At June 30, 2019 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $29 million at June 30, 2019 and are reported in “Other assets”. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying amounts of consolidated VIE assets and liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows: (dollars in millions) June 30, December 31, Assets Cash and cash equivalents $ 1 $ 2 Finance receivables - Personal loans 7,999 8,480 Allowance for finance receivable losses 369 444 Restricted cash and restricted cash equivalents 409 479 Other assets 29 26 Liabilities Long-term debt $ 7,057 $ 7,510 Other liabilities 14 14 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Changes in the reserve for unpaid claims and loss adjustment expenses | Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): At or for the Six Months Ended June 30, (dollars in millions) 2019 2018 Balance at beginning of period $ 117 $ 154 Less reinsurance recoverables (4 ) (23 ) Net balance at beginning of period 113 131 Additions for losses and loss adjustment expenses incurred to: Current year 111 102 Prior years * (15 ) (5 ) Total 96 97 Reductions for losses and loss adjustment expenses paid related to: Current year (50 ) (47 ) Prior years (48 ) (51 ) Total (98 ) (98 ) Net balance at end of period 111 130 Plus reinsurance recoverables 3 4 Transfer of reserves — (19 ) Balance at end of period $ 114 $ 115 * Reflects (i) a redundancy in the prior years’ net reserves of $15 million at June 30, 2019 primarily due to a favorable development of credit life, disability, and unemployment claims during the year and (ii) a redundancy in the prior years’ net reserves of $5 million at June 30, 2018 , primarily due to a favorable development of credit disability and unemployment claims during the year. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2019 Balance at beginning of period $ 2 $ (3 ) $ (1 ) $ (2 ) Other comprehensive income before reclassifications 28 — 2 30 Balance at end of period $ 30 $ (3 ) $ 1 $ 28 Three Months Ended June 30, 2018 Balance at beginning of period $ (19 ) $ (2 ) $ 1 $ (20 ) Other comprehensive income (loss) before reclassifications (7 ) 2 (4 ) (9 ) Impact of AOCI reclassification due to the Tax Act 2 (1 ) 2 3 Balance at end of period $ (24 ) $ (1 ) $ (1 ) $ (26 ) Six Months Ended June 30, 2019 Balance at beginning of period $ (28 ) $ (2 ) $ (4 ) $ (34 ) Other comprehensive income before reclassifications 58 (1 ) 5 62 Balance at end of period $ 30 $ (3 ) $ 1 $ 28 Six Months Ended June 30, 2018 Balance at beginning of period $ 4 $ (1 ) $ 3 $ 6 Other comprehensive income (loss) before reclassifications (30 ) 1 (6 ) (35 ) Impact of AOCI reclassification due to the Tax Act 2 (1 ) 2 3 Balance at end of period $ (24 ) $ (1 ) $ (1 ) $ (26 ) |
Leases and Contingencies (Table
Leases and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of lease liabilities | As of June 30, 2019 , maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2019 (excluding the six months ended June 30, 2019) $ 31 2020 57 2021 46 2022 32 2023 18 2024 8 Thereafter 7 Total lease payments 199 Imputed interest (21 ) Total $ 178 |
Weighted average remaining lease term and discount rate | Weighted Average Remaining Lease Term 3.9 years Weighted Average Discount Rate 3.76 % |
Annual rental commitments for operating leases | As of December 31, 2018, under ASC 840, Leases, annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments 2019 $ 60 2020 50 2021 37 2022 26 2023 12 2024+ 12 Total $ 197 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about our segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total Three Months Ended June 30, 2019 Interest income $ 999 $ — $ 2 $ (1 ) $ 1,000 Interest expense 232 — 1 5 238 Provision for finance receivable losses 263 — — 5 268 Net interest income after provision for finance receivable losses 504 — 1 (11 ) 494 Other revenues (a) 144 12 4 — 160 Other expenses 378 6 4 6 394 Income (loss) before income tax expense (benefit) $ 270 $ 6 $ 1 $ (17 ) $ 260 Three Months Ended June 30, 2018 Interest income $ 908 $ — $ 5 $ (11 ) $ 902 Interest expense 212 — 5 3 220 Provision for finance receivable losses 260 — (3 ) 2 259 Net interest income after provision for finance receivable losses 436 — 3 (16 ) 423 Other revenues (a) 108 — 4 26 138 Other expenses 385 1 108 12 506 Income (loss) before income tax expense (benefit) $ 159 $ (1 ) $ (101 ) $ (2 ) $ 55 (a) Other revenues reported in “Other” primarily includes interest income on the SFC’s notes receivable from SFI. See Note 7 for further information on the notes receivable from parent. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other Segment to GAAP Adjustment Consolidated Total At or for the Six Months Ended June 30, 2019 Interest income $ 1,953 $ — $ 5 $ (3 ) $ 1,955 Interest expense 462 — 3 8 473 Provision for finance receivable losses 539 — — 15 554 Net interest income after provision for finance receivable losses 952 — 2 (26 ) 928 Other revenues (a) 290 19 10 (7 ) 312 Other expenses 740 13 10 11 774 Income (loss) before income tax expense (benefit) $ 502 $ 6 $ 2 $ (44 ) $ 466 Assets (b) $ 18,891 $ — $ 348 $ 2,049 $ 21,288 At or for the Six Months Ended June 30, 2018 Interest income $ 1,779 $ — $ 9 $ (26 ) $ 1,762 Interest expense 406 — 9 5 420 Provision for finance receivable losses 517 — (5 ) — 512 Net interest income after provision for finance receivable losses 856 — 5 (31 ) 830 Other revenues (a) 211 — 7 51 269 Other expenses 739 3 113 18 873 Income (loss) before income tax expense (benefit) $ 328 $ (3 ) $ (101 ) $ 2 $ 226 Assets (b) $ 17,102 $ — $ 563 $ 2,113 $ 19,778 (a) Other revenues reported in “Other” primarily includes interest income on the SFC’s notes receivable from SFI. See Note 7 for further information on the notes receivable from parent. (b) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 7 for further information on the note receivable from parent. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 June 30, 2019 Assets Cash and cash equivalents $ 729 $ 56 $ — $ 785 $ 785 Investment securities 38 1,678 5 1,721 1,721 Net finance receivables, less allowance for finance receivable losses — — 17,831 17,831 16,236 Finance receivables held for sale — — 80 80 74 Notes receivable from parent — 261 — 261 261 Restricted cash and restricted cash equivalents 420 — — 420 420 Other assets * — 12 12 24 24 Liabilities Long-term debt $ — $ 16,570 $ — $ 16,570 $ 15,551 December 31, 2018 Assets Cash and cash equivalents $ 602 $ 61 $ — $ 663 $ 663 Investment securities 34 1,655 5 1,694 1,694 Net finance receivables, less allowance for finance receivable losses — — 16,692 16,692 15,396 Finance receivables held for sale — — 103 103 103 Notes receivable from parent — 260 — 260 260 Restricted cash and restricted cash equivalents 499 — — 499 499 Other assets * — 19 15 34 34 Liabilities Long-term debt $ — $ 15,041 $ — $ 15,041 $ 15,178 * Other assets at June 30, 2019 and December 31, 2018 include receivables from parent and affiliates and miscellaneous receivables related to our liquidating loan portfolios. Total carrying value of receivables from parent and affiliates totaled $12 million at June 30, 2019 and $18 million at December 31, 2018 . |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 June 30, 2019 Assets Cash equivalents in mutual funds $ 462 $ — $ — $ 462 Cash equivalents in securities — 56 — 56 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 10 — 10 Obligations of states, municipalities, and political subdivisions — 73 — 73 Certificates of deposit and commercial paper — 73 — 73 Non-U.S. government and government sponsored entities — 145 — 145 Corporate debt — 1,058 2 1,060 RMBS — 120 — 120 CMBS — 67 — 67 CDO/ABS — 89 1 90 Total available-for-sale securities — 1,635 3 1,638 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 33 1 34 RMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 40 1 41 Preferred stock 13 3 — 16 Common stock 25 — — 25 Other long-term investments — — 1 1 Total other securities 38 43 2 83 Total investment securities 38 1,678 5 1,721 Restricted cash in mutual funds 417 — — 417 Total $ 917 $ 1,734 $ 5 $ 2,656 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2018 Assets Cash equivalents in mutual funds $ 415 $ — $ — $ 415 Cash equivalents in securities — 61 — 61 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 21 — 21 Obligations of states, municipalities, and political subdivisions — 90 — 90 Certificates of deposit and commercial paper — 63 — 63 Non-U.S. government and government sponsored entities — 143 — 143 Corporate debt — 995 2 997 RMBS — 128 — 128 CMBS — 71 — 71 CDO/ABS — 93 1 94 Total available-for-sale securities — 1,604 3 1,607 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 42 1 43 RMBS — 1 — 1 CDO/ABS — 1 — 1 Total bonds — 45 1 46 Preferred stock 13 6 — 19 Common stock 21 — — 21 Other long-term investments — — 1 1 Total other securities 34 51 2 87 Total investment securities 34 1,655 5 1,694 Restricted cash in mutual funds 482 — — 482 Total $ 931 $ 1,716 $ 5 $ 2,652 |
Business and Basis of Present_3
Business and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation from Initial Stockholder | $ 0 | $ 110 | |
Majority Shareholder | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by initial stockholder | 40.40% | ||
OneMain | Apollo-Värde Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation from Initial Stockholder | $ 106 | ||
OneMain | Affiliates of Fortress or AIG | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation from Initial Stockholder | $ 4 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale | $ 74,000,000 | $ 103,000,000 |
Commitment to lend additional funds on TDR finance receivables | $ 0 | |
Unlikely to be Collected Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold period past due for write-off of financing receivable | 60 days | |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold period past due for write-off of financing receivable | 90 days | |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Personal loans secured by titled collateral | 50.00% | 48.00% |
Personal Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, original term (years) | 3 years | |
Personal Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, original term (years) | 6 years |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - Personal Loans - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 16,808 | $ 15,936 |
Unearned points and fees | (218) | (200) |
Accrued finance charges | 254 | 253 |
Deferred origination costs | 136 | 133 |
Total | $ 16,980 | $ 16,122 |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables (Details) - Finance receivables - Personal loans - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Delinquency by finance receivables type | ||
Net finance receivables | $ 16,980 | $ 16,122 |
Performing | ||
Delinquency by finance receivables type | ||
Net finance receivables | 16,689 | 15,761 |
Performing | Current | ||
Delinquency by finance receivables type | ||
Net finance receivables | 16,325 | 15,373 |
Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 220 | 228 |
Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 144 | 160 |
Nonperforming | ||
Delinquency by finance receivables type | ||
Net finance receivables | 291 | 361 |
Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 284 | 353 |
Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | $ 7 | $ 8 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables HFI and HFS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | $ 21 | $ 28 |
Outstanding balance | 38 | 48 |
Personal Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 58 | 89 |
Outstanding balance | 100 | 135 |
Allowance for purchased credit impaired finance receivable losses | $ 0 | $ 0 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield For Purchased Credit Impaired HFI and HFS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Real Estate Loans - Held for Sale | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | $ 23 | $ 52 | $ 27 | $ 53 |
Accretion | 0 | (1) | (1) | (2) |
Transfer due to finance receivables sold | 0 | 0 | (3) | 0 |
Balance at end of period | 23 | 51 | 23 | 51 |
Personal Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 34 | 49 | 39 | 47 |
Accretion | (4) | (8) | (9) | (14) |
Reclassifications from nonaccretable difference | 16 | 11 | 16 | 19 |
Balance at end of period | $ 46 | $ 52 | $ 46 | $ 52 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivable HFI and HFS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables, held for sale | $ 56 | $ 89 |
TDR net receivables, held for sale | 57 | 75 |
Personal Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables | 546 | 449 |
TDR net receivables | 549 | 452 |
Allowance for TDR finance receivable losses | $ 227 | $ 169 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables HFI and HFS and Finance Charges Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | $ 585 | $ 503 | $ 563 | $ 489 |
TDR finance charges recognized | 13 | 13 | 25 | 26 |
Personal Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | 527 | 366 | 502 | 351 |
TDR finance charges recognized | 12 | 11 | 23 | 22 |
Other Receivables | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | 58 | 137 | 61 | 138 |
TDR finance charges recognized | 1 | 2 | 2 | 4 |
TDR average net receivables, held for sale | 58 | 88 | 61 | 89 |
TDR finance charges recognized, held for sale | $ 1 | $ 2 | $ 2 | $ 3 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) - Personal Loans $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)account | Jun. 30, 2018USD ($)account | Jun. 30, 2019USD ($)account | Jun. 30, 2018USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Pre-modification TDR net finance receivables | $ 124 | $ 84 | $ 244 | $ 178 |
Total post-modification TDR net finance receivables | $ 124 | $ 84 | $ 244 | $ 178 |
Number of TDR accounts | account | 18,307 | 12,711 | 36,813 | 27,363 |
Rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 85 | $ 63 | $ 170 | $ 132 |
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 39 | $ 21 | $ 74 | $ 46 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) - Personal Loans $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)account | Jun. 30, 2018USD ($)account | Jun. 30, 2019USD ($)account | Jun. 30, 2018USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR net finance receivables | $ | $ 21 | $ 18 | $ 40 | $ 35 |
Number of TDR accounts | account | 3,171 | 2,606 | 6,096 | 5,312 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 733 | $ 685 | $ 726 | $ 692 |
Provision for finance receivable losses | 268 | 259 | 554 | 512 |
Charge-offs | (290) | (276) | (601) | (564) |
Recoveries | 33 | 30 | 60 | 58 |
Other | 5 | |||
Balance at end of period | 744 | 698 | 744 | 698 |
Personal Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 733 | 661 | 726 | 668 |
Provision for finance receivable losses | 268 | 260 | 554 | 513 |
Charge-offs | (290) | (276) | (601) | (563) |
Recoveries | 33 | 29 | 60 | 56 |
Other | 5 | |||
Balance at end of period | 744 | 674 | 744 | 674 |
Other Receivables | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | 24 | 0 | 24 |
Provision for finance receivable losses | 0 | (1) | 0 | (1) |
Charge-offs | 0 | 0 | 0 | (1) |
Recoveries | 0 | 1 | 0 | 2 |
Other | 0 | |||
Balance at end of period | $ 0 | $ 24 | $ 0 | $ 24 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Total | $ 744 | $ 726 | $ 733 | $ 698 | $ 685 | $ 692 |
Personal Loans | ||||||
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Collectively evaluated for impairment | 517 | 557 | ||||
Purchased credit impaired finance receivables | 0 | 0 | ||||
TDR finance receivables | 227 | 169 | ||||
Total | 744 | 726 | $ 733 | $ 674 | $ 661 | $ 668 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 16,373 | 15,581 | ||||
Purchased credit impaired finance receivables | 16,980 | 16,122 | ||||
TDR finance receivables | 549 | 452 | ||||
Net finance receivables | $ 16,980 | $ 16,122 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 4.38% | 4.50% | ||||
Personal Loans | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 58 | $ 89 | ||||
Net finance receivables | $ 58 | $ 89 |
Finance Receivables Held for _2
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables held for sale | $ 74 | $ 103 | ||
Proceeds on sales of finance receivables held for sale originated as held for investment | $ 19 | $ 0 | ||
Disposed of by Sale | February 2019 Real Estate Loan Sale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 16 | |||
Proceeds on sales of finance receivables held for sale originated as held for investment | 19 | |||
Net gain | 3 | |||
Impairment in other revenue | $ 3 |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,598 | $ 1,643 |
Unrealized Gains | 41 | 3 |
Unrealized Losses | (1) | (39) |
Fair Value | 1,638 | 1,607 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 10 | 21 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 10 | 21 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 72 | 91 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 73 | 90 |
Certificates of deposit and commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 73 | 63 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 73 | 63 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 141 | 145 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | 0 | (2) |
Fair Value | 145 | 143 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,029 | 1,027 |
Unrealized Gains | 32 | 2 |
Unrealized Losses | (1) | (32) |
Fair Value | 1,060 | 997 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 118 | 130 |
Unrealized Gains | 2 | 0 |
Unrealized Losses | 0 | (2) |
Fair Value | 120 | 128 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 67 | 72 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 67 | 71 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 88 | 94 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | (1) |
Fair Value | $ 90 | $ 94 |
Investment Securities - FV & Un
Investment Securities - FV & Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | $ 62 | $ 460 |
12 Months or Longer | 152 | 783 |
Total | 214 | 1,243 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (15) |
12 Months or Longer | (1) | (24) |
Total | (1) | (39) |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 0 | 3 |
12 Months or Longer | 3 | 16 |
Total | 3 | 19 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 0 | 10 |
12 Months or Longer | 9 | 57 |
Total | 9 | 67 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (1) |
Total | 0 | (1) |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 7 | 19 |
12 Months or Longer | 26 | 97 |
Total | 33 | 116 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | 0 | (1) |
Total | 0 | (2) |
Corporate debt | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 40 | 377 |
12 Months or Longer | 65 | 448 |
Total | 105 | 825 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (14) |
12 Months or Longer | (1) | (18) |
Total | (1) | (32) |
RMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 0 | 23 |
12 Months or Longer | 24 | 78 |
Total | 24 | 101 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (2) |
Total | 0 | (2) |
CMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 3 | 10 |
12 Months or Longer | 19 | 54 |
Total | 22 | 64 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (1) |
Total | 0 | (1) |
CDO/ABS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months | 12 | 18 |
12 Months or Longer | 6 | 33 |
Total | 18 | 51 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (1) |
Total | $ 0 | $ (1) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)investment | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)investment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment securities in an unrealized loss position | investment | 469 | 469 | 1,767 | ||
Other-than-temporary impairment on investment security that we intend to sell | $ 0 | ||||
Gain (Loss) on Securities [Line Items] | |||||
Proceeds of available-for-sale securities sold or redeemed | $ 180,000,000 | $ 69,000,000 | 209,000,000 | $ 140,000,000 | |
Realized gains and losses | 0 | 0 | 0 | 0 | |
Fair value of bonds on deposit | 525,000,000 | 525,000,000 | $ 515,000,000 | ||
Net unrealized gains (losses) on other securities sold or redeemed | 0 | 0 | 5,000,000 | (3,000,000) | |
Net realized gains (losses) on other securities sold or redeemed | 0 | 0 | 0 | 0 | |
Corporate debt | |||||
Gain (Loss) on Securities [Line Items] | |||||
Other-than-temporary impairment credit losses | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 243 | |
Due after 1 year through 5 years | 530 | |
Due after 5 years through 10 years | 445 | |
Due after 10 years | 143 | |
Mortgage-backed, asset-backed, and collateralized securities | 277 | |
Total | 1,638 | $ 1,607 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities (Amortized Cost): | ||
Due in 1 year or less | 243 | |
Due after 1 year through 5 years | 520 | |
Due after 5 years through 10 years | 427 | |
Due after 10 years | 135 | |
Mortgage-backed, asset-backed, and collateralized securities | 273 | |
Cost/ Amortized Cost | $ 1,598 | $ 1,643 |
Investment Securities - Fair Va
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 41 | $ 46 |
Other long-term investments | 1 | 1 |
Total | 83 | 87 |
Non-U.S. government and government sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 1 | 1 |
Corporate debt | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 34 | 43 |
Mortgage-backed, asset-backed, and collateralized bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 6 | 2 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading security, equity | 16 | 19 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading security, equity | $ 25 | $ 21 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||||
Notes receivable from parent | $ 261,000,000 | $ 261,000,000 | $ 260,000,000 | |||
Contribution of SCLH to SFC from SFI | 34,000,000 | |||||
Receivables from parent and affiliates | 12,000,000 | 12,000,000 | 18,000,000 | |||
Payables to parent or affiliate | 0 | 0 | 0 | |||
Affiliated Entity | SFI | ||||||
Related Party Transaction [Line Items] | ||||||
Notes receivable from parent | $ 229,000,000 | $ 229,000,000 | 232,000,000 | |||
Interest rate | 5.75% | 5.59% | 5.75% | 5.59% | ||
Interest income | $ 3,000,000 | $ 5,000,000 | $ 7,000,000 | $ 10,000,000 | ||
Effective interest rate | 6.00% | 6.00% | ||||
Affiliated Entity | SFI | Additional Notes Receivable | ||||||
Related Party Transaction [Line Items] | ||||||
Notes receivable from parent | $ 32,000,000 | $ 32,000,000 | $ 28,000,000 | |||
Affiliated Entity | SFI | Cost of Funds Rate | ||||||
Related Party Transaction [Line Items] | ||||||
Basis spread on variable rate | 0.25% | |||||
Affiliated Entity | SCLH | ||||||
Related Party Transaction [Line Items] | ||||||
Contribution of SCLH to SFC from SFI | $ 34,000,000 | |||||
Capital contributions from parent | $ 53,000,000 |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2019 | $ 0 | |
2020 | 1,000,000,000 | |
2021 | 646,000,000 | |
2022 | 1,000,000,000 | |
2023 | 1,175,000,000 | |
2024-2067 | 4,999,000,000 | |
Securitizations | 7,083,000,000 | |
Total principal maturities | 15,903,000,000 | |
Total carrying amount | 15,551,000,000 | $ 15,178,000,000 |
Debt issuance costs | (101,000,000) | |
Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Total carrying amount | 7,100,000,000 | $ 7,500,000,000 |
Amounts drawn | $ 0 | |
Junior Subordinated Debt | ||
Long-term debt | ||
Effective interest rate | 4.35% | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2019 | $ 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024-2067 | 350,000,000 | |
Securitizations | 0 | |
Total principal maturities | 350,000,000 | |
Total carrying amount | 172,000,000 | |
Debt issuance costs | $ 0 | |
Junior Subordinated Debt | LIBOR | ||
Principal maturities of long-term debt by type of debt | ||
Basis spread on variable rate | 1.75% | |
Revolving Credit Facility | Other assets | ||
Principal maturities of long-term debt by type of debt | ||
Debt issuance costs | $ 29,000,000 | |
Securitizations | Senior Debt | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024-2067 | 0 | |
Securitizations | 7,083,000,000 | |
Total principal maturities | 7,083,000,000 | |
Total carrying amount | 7,057,000,000 | |
Debt issuance costs | $ (25,000,000) | |
Securitizations | Senior Debt | Minimum | ||
Long-term debt | ||
Interest rate | 2.16% | |
Securitizations | Senior Debt | Maximum | ||
Long-term debt | ||
Interest rate | 6.94% | |
Unsecured Notes | Senior Debt | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2019 | $ 0 | |
2020 | 1,000,000,000 | |
2021 | 646,000,000 | |
2022 | 1,000,000,000 | |
2023 | 1,175,000,000 | |
2024-2067 | 4,649,000,000 | |
Securitizations | 0 | |
Total principal maturities | 8,470,000,000 | |
Total carrying amount | 8,322,000,000 | |
Debt issuance costs | $ (76,000,000) | |
Unsecured Notes | Senior Debt | Minimum | ||
Long-term debt | ||
Interest rate | 5.63% | |
Unsecured Notes | Senior Debt | Maximum | ||
Long-term debt | ||
Interest rate | 8.25% |
Long-term Debt - SFC Senior Not
Long-term Debt - SFC Senior Notes (Details) - USD ($) | Apr. 15, 2019 | Mar. 25, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 02, 2019 | May 09, 2019 | Mar. 15, 2019 | Feb. 22, 2019 |
Debt Instrument [Line Items] | ||||||||||
Net loss on repurchases and repayments of debt | $ 12,000,000 | $ 7,000,000 | $ 33,000,000 | $ 8,000,000 | ||||||
Senior Notes | Senior Notes 6.625 Percent Due 2028 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.625% | |||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||||
Senior Notes | 6.125% Senior Notes Due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.125% | |||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||
Senior Notes | 6.125% Senior Notes Due 2024 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.125% | |||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Senior Notes | 5.25% Senior Notes Due 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.25% | |||||||||
Repayments, inclusive of accrued interest and premiums | $ 706,000,000 | |||||||||
Net loss on repurchases and repayments of debt | 21,000,000 | |||||||||
Senior Notes | 6.00% Senior Notes Due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.00% | |||||||||
Repayments, inclusive of accrued interest and premiums | $ 317,000,000 | |||||||||
Net loss on repurchases and repayments of debt | $ 11,000,000 | $ 11,000,000 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - Consolidated VIEs - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1 | $ 2 |
Finance receivables - Personal loans | Finance receivables - Personal loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 7,999 | 8,480 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 369 | 444 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 409 | 479 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 29 | 26 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 7,057 | 7,510 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 14 | $ 14 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 238 | $ 220 | $ 473 | $ 420 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 82 | $ 87 | $ 164 | $ 173 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total carrying amount | $ 15,551 | $ 15,178 |
Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Total carrying amount | $ 7,100 | $ 7,500 |
Minimum | ||
Debt Instrument [Line Items] | ||
Revolving period | 1 year | |
Maximum | ||
Debt Instrument [Line Items] | ||
Revolving period | 5 years |
Variable Interest Entities - Re
Variable Interest Entities - Revolving Conduit Facilities (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)facility | |
Minimum | |
Line of Credit Facility [Line Items] | |
Revolving period | 1 year |
Maximum | |
Line of Credit Facility [Line Items] | |
Revolving period | 5 years |
Consolidated VIEs | |
Line of Credit Facility [Line Items] | |
Amounts drawn | $ 0 |
Consolidated VIEs | Asset-backed Securities, Securitized Loans and Receivables | |
Line of Credit Facility [Line Items] | |
Number of facilities | facility | 13 |
Total borrowing capacity | $ 6,700,000,000 |
Consolidated VIEs | Asset-backed Securities, Securitized Loans and Receivables | Minimum | |
Line of Credit Facility [Line Items] | |
Revolving period | 1 year |
Debt instrument term | 3 years |
Consolidated VIEs | Asset-backed Securities, Securitized Loans and Receivables | Maximum | |
Line of Credit Facility [Line Items] | |
Revolving period | 3 years |
Debt instrument term | 9 years |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance at beginning of period | $ 117 | $ 154 |
Less reinsurance recoverables | (4) | (23) |
Net balance at beginning of period | 113 | 131 |
Additions for losses and loss adjustment expenses incurred to: | ||
Current year | 111 | 102 |
Prior years | (15) | (5) |
Total | 96 | 97 |
Reductions for losses and loss adjustment expenses paid related to: | ||
Current year | (50) | (47) |
Prior years | (48) | (51) |
Total | (98) | (98) |
Net balance at end of period | 111 | 130 |
Plus reinsurance recoverables | 3 | 4 |
Transfer of reserves | 0 | (19) |
Balance at end of period | 114 | 115 |
Redundancy in prior years’ net reserves | $ 15 | $ 5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 4,210 | $ 3,511 | $ 4,021 | $ 3,402 |
Other comprehensive income (loss) before reclassifications | 30 | (9) | 62 | (35) |
Impact of AOCI reclassification due to the Tax Act | 3 | 3 | ||
Balance at end of period | 4,404 | 3,620 | 4,404 | 3,620 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 2 | (19) | (28) | 4 |
Other comprehensive income (loss) before reclassifications | 28 | (7) | 58 | (30) |
Impact of AOCI reclassification due to the Tax Act | 2 | 2 | ||
Balance at end of period | 30 | (24) | 30 | (24) |
Retirement Plan Liabilities Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (3) | (2) | (2) | (1) |
Other comprehensive income (loss) before reclassifications | 0 | 2 | (1) | 1 |
Impact of AOCI reclassification due to the Tax Act | (1) | (1) | ||
Balance at end of period | (3) | (1) | (3) | (1) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (1) | 1 | (4) | 3 |
Other comprehensive income (loss) before reclassifications | 2 | (4) | 5 | (6) |
Impact of AOCI reclassification due to the Tax Act | 2 | 2 | ||
Balance at end of period | 1 | (1) | 1 | (1) |
Total Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (2) | (20) | (34) | 6 |
Balance at end of period | $ 28 | $ (26) | $ 28 | $ (26) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax asset | $ 91 | $ 130 | |
Decrease in net deferred tax asset | $ 39 | ||
Effective tax rate | 24.20% | 37.00% | |
Gross unrecognized tax benefits | $ 13 | $ 17 |
Leases and Contingencies - Narr
Leases and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 3 years 10 months 24 days | 3 years 10 months 24 days | |
Operating right-of-use asset balance | $ 165 | $ 165 | |
Total | 178 | 178 | |
Operating lease costs | 15 | 32 | |
Variable lease costs | 4 | 8 | |
Sublease income | $ 0 | $ 0 | |
Rental expense | $ 72 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 10 years | 10 years |
Leases and Contingencies - Matu
Leases and Contingencies - Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 (excluding the six months ended June 30, 2019) | $ 31 |
2020 | 57 |
2021 | 46 |
2022 | 32 |
2023 | 18 |
2024 | 8 |
Thereafter | 7 |
Total lease payments | 199 |
Imputed interest | (21) |
Total | $ 178 |
Leases and Contingencies - Weig
Leases and Contingencies - Weighted Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted Average Remaining Lease Term | 3 years 10 months 24 days |
Weighted Average Discount Rate | 3.76% |
Leases and Contingencies - Annu
Leases and Contingencies - Annual Rental Commitments for Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Lease Commitments | |
2019 | $ 60 |
2020 | 50 |
2021 | 37 |
2022 | 26 |
2023 | 12 |
2024 plus | 12 |
Total | $ 197 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||
Number of segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Interest income | $ 1,000 | $ 902 | $ 1,955 | $ 1,762 | |
Interest expense | 238 | 220 | 473 | 420 | |
Provision for finance receivable losses | 268 | 259 | 554 | 512 | |
Net interest income after provision for finance receivable losses | 494 | 423 | 928 | 830 | |
Other revenues | 160 | 138 | 312 | 269 | |
Other expenses | 394 | 506 | 774 | 873 | |
Income (loss) before income tax expense (benefit) | 260 | 55 | 466 | 226 | |
Assets | 21,288 | 19,778 | 21,288 | 19,778 | $ 20,309 |
Operating Segments | Consumer and Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 999 | 908 | 1,953 | 1,779 | |
Interest expense | 232 | 212 | 462 | 406 | |
Provision for finance receivable losses | 263 | 260 | 539 | 517 | |
Net interest income after provision for finance receivable losses | 504 | 436 | 952 | 856 | |
Other revenues | 144 | 108 | 290 | 211 | |
Other expenses | 378 | 385 | 740 | 739 | |
Income (loss) before income tax expense (benefit) | 270 | 159 | 502 | 328 | |
Assets | 18,891 | 17,102 | 18,891 | 17,102 | |
Operating Segments | Acquisitions and Servicing | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Other revenues | 12 | 0 | 19 | 0 | |
Other expenses | 6 | 1 | 13 | 3 | |
Income (loss) before income tax expense (benefit) | 6 | (1) | 6 | (3) | |
Assets | 0 | 0 | 0 | 0 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 2 | 5 | 5 | 9 | |
Interest expense | 1 | 5 | 3 | 9 | |
Provision for finance receivable losses | 0 | (3) | 0 | (5) | |
Net interest income after provision for finance receivable losses | 1 | 3 | 2 | 5 | |
Other revenues | 4 | 4 | 10 | 7 | |
Other expenses | 4 | 108 | 10 | 113 | |
Income (loss) before income tax expense (benefit) | 1 | (101) | 2 | (101) | |
Assets | 348 | 563 | 348 | 563 | |
Segment to GAAP Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | (1) | (11) | (3) | (26) | |
Interest expense | 5 | 3 | 8 | 5 | |
Provision for finance receivable losses | 5 | 2 | 15 | 0 | |
Net interest income after provision for finance receivable losses | (11) | (16) | (26) | (31) | |
Other revenues | 0 | 26 | (7) | 51 | |
Other expenses | 6 | 12 | 11 | 18 | |
Income (loss) before income tax expense (benefit) | (17) | (2) | (44) | 2 | |
Assets | $ 2,049 | $ 2,113 | $ 2,049 | $ 2,113 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 01, 2019 | Jul. 29, 2019 | Jul. 02, 2019 | Feb. 22, 2019 |
Senior Notes | Senior Notes 6.125 Percent Due 2024 | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 6.125% | |||
Debt instrument, face amount | $ 1,000,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend declared (in dollars per share) | $ 2.25 | |||
Authorized dividend | $ 310,000,000 | |||
Subsequent Event | SFI | ||||
Subsequent Event [Line Items] | ||||
Authorized dividend | $ 310,000,000 | |||
Subsequent Event | Senior Notes | Senior Notes 6.125 Percent Due 2024 | ||||
Subsequent Event [Line Items] | ||||
Interest rate | 6.125% | |||
Debt instrument, face amount | $ 300,000,000 | |||
Subsequent Event | Asset-Backed Notes | Asset-Backed Notes Due 2036 | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | $ 789,000,000 | |||
Revolving period | 7 years | |||
Amount retained | $ 39,000,000 | |||
Percentage of initial note balance | 5.00% | |||
Subsequent Event | Quarterly Dividend | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend declared (in dollars per share) | $ 0.25 | |||
Subsequent Event | Special Dividend | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend declared (in dollars per share) | $ 2 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Assets | |||
Notes receivable from parent | $ 261 | $ 260 | |
Restricted cash and restricted cash equivalents | 420 | 499 | $ 586 |
Liabilities | |||
Carrying value of receivables from parent and affiliates | 12 | 18 | |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 785 | 663 | |
Investment securities | 1,721 | 1,694 | |
Net finance receivables, less allowance for finance receivable losses | 17,831 | 16,692 | |
Finance receivables held for sale | 80 | 103 | |
Notes receivable from parent | 261 | 260 | |
Restricted cash and restricted cash equivalents | 420 | 499 | |
Other assets | 24 | 34 | |
Liabilities | |||
Long-term debt | 16,570 | 15,041 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 785 | 663 | |
Investment securities | 1,721 | 1,694 | |
Net finance receivables, less allowance for finance receivable losses | 16,236 | 15,396 | |
Finance receivables held for sale | 74 | 103 | |
Notes receivable from parent | 261 | 260 | |
Restricted cash and restricted cash equivalents | 420 | 499 | |
Other assets | 24 | 34 | |
Liabilities | |||
Long-term debt | 15,551 | 15,178 | |
Carrying value of receivables from parent and affiliates | 12 | 18 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 729 | 602 | |
Investment securities | 38 | 34 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Notes receivable from parent | 0 | 0 | |
Restricted cash and restricted cash equivalents | 420 | 499 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 56 | 61 | |
Investment securities | 1,678 | 1,655 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Notes receivable from parent | 261 | 260 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 12 | 19 | |
Liabilities | |||
Long-term debt | 16,570 | 15,041 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 5 | 5 | |
Net finance receivables, less allowance for finance receivable losses | 17,831 | 16,692 | |
Finance receivables held for sale | 80 | 103 | |
Notes receivable from parent | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 12 | 15 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investment securities: | ||
Total available-for-sale securities | $ 1,638 | $ 1,607 |
Other securities | 83 | 87 |
U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 10 | 21 |
Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 90 |
Certificates of deposit and commercial paper | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 63 |
Corporate debt | ||
Investment securities: | ||
Total available-for-sale securities | 1,060 | 997 |
RMBS | ||
Investment securities: | ||
Total available-for-sale securities | 120 | 128 |
CMBS | ||
Investment securities: | ||
Total available-for-sale securities | 67 | 71 |
CDO/ABS | ||
Investment securities: | ||
Total available-for-sale securities | 90 | 94 |
Level 1 | ||
Assets | ||
Cash equivalents in securities | 729 | 602 |
Investment securities: | ||
Total investment securities | 38 | 34 |
Level 2 | ||
Assets | ||
Cash equivalents in securities | 56 | 61 |
Investment securities: | ||
Total investment securities | 1,678 | 1,655 |
Level 3 | ||
Assets | ||
Cash equivalents in securities | 0 | 0 |
Investment securities: | ||
Total investment securities | 5 | 5 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 462 | 415 |
Cash equivalents in securities | 56 | 61 |
Investment securities: | ||
Total available-for-sale securities | 1,638 | 1,607 |
Other securities | 83 | 87 |
Total investment securities | 1,721 | 1,694 |
Restricted cash in mutual funds | 417 | 482 |
Total | 2,656 | 2,652 |
Fair Value, Measurements, Recurring | Bonds: | ||
Investment securities: | ||
Other securities | 41 | 46 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 10 | 21 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 90 |
Fair Value, Measurements, Recurring | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 63 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 145 | 143 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investment securities: | ||
Total available-for-sale securities | 1,060 | 997 |
Other securities | 34 | 43 |
Fair Value, Measurements, Recurring | RMBS | ||
Investment securities: | ||
Total available-for-sale securities | 120 | 128 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investment securities: | ||
Total available-for-sale securities | 67 | 71 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investment securities: | ||
Total available-for-sale securities | 90 | 94 |
Other securities | 5 | 1 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investment securities: | ||
Other securities | 16 | 19 |
Fair Value, Measurements, Recurring | Common stock | ||
Investment securities: | ||
Other securities | 25 | 21 |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Investment securities: | ||
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 462 | 415 |
Cash equivalents in securities | 0 | 0 |
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 38 | 34 |
Total investment securities | 38 | 34 |
Restricted cash in mutual funds | 417 | 482 |
Total | 917 | 931 |
Fair Value, Measurements, Recurring | Level 1 | Bonds: | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | RMBS | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | ||
Investment securities: | ||
Other securities | 13 | 13 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investment securities: | ||
Other securities | 25 | 21 |
Fair Value, Measurements, Recurring | Level 1 | Other long-term investments | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 56 | 61 |
Investment securities: | ||
Total available-for-sale securities | 1,635 | 1,604 |
Other securities | 43 | 51 |
Total investment securities | 1,678 | 1,655 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,734 | 1,716 |
Fair Value, Measurements, Recurring | Level 2 | Bonds: | ||
Investment securities: | ||
Other securities | 40 | 45 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 10 | 21 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 90 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Total available-for-sale securities | 73 | 63 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 145 | 143 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investment securities: | ||
Total available-for-sale securities | 1,058 | 995 |
Other securities | 33 | 42 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investment securities: | ||
Total available-for-sale securities | 120 | 128 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investment securities: | ||
Total available-for-sale securities | 67 | 71 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investment securities: | ||
Total available-for-sale securities | 89 | 93 |
Other securities | 5 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | ||
Investment securities: | ||
Other securities | 3 | 6 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other long-term investments | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 0 | 0 |
Investment securities: | ||
Total available-for-sale securities | 3 | 3 |
Other securities | 2 | 2 |
Total investment securities | 5 | 5 |
Restricted cash in mutual funds | 0 | 0 |
Total | 5 | 5 |
Fair Value, Measurements, Recurring | Level 3 | Bonds: | ||
Investment securities: | ||
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investment securities: | ||
Total available-for-sale securities | 2 | 2 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Investment securities: | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | ||
Investment securities: | ||
Total available-for-sale securities | 1 | 1 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other long-term investments | ||
Investment securities: | ||
Other securities | $ 1 | $ 1 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Net impairment charges | $ 0 |