Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36129 | ||
Entity Registrant Name | ONEMAIN HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-3379612 | ||
Entity Address, Address Line One | 601 N.W. Second Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47708 | ||
City Area Code | 812 | ||
Local Phone Number | 424-8031 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | OMF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,596,092,195 | ||
Entity Common Stock, Shares Outstanding | 136,194,462 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13, and 14) of this Annual Report on Form 10-K is incorporated by reference from OneMain Holdings, Inc.'s Definitive Proxy Statement for its 2020 Annual Meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001584207 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
SFC | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-06155 | ||
Entity Registrant Name | SPRINGLEAF FINANCE CORP | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0416090 | ||
Entity Address, Address Line One | 601 N.W. Second Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47708 | ||
City Area Code | 812 | ||
Local Phone Number | 424-8031 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 10,160,021 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13, and 14) of this Annual Report on Form 10-K is incorporated by reference from OneMain Holdings, Inc.'s Definitive Proxy Statement for its 2020 Annual Meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0000025598 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 1,227 | $ 679 |
Investment securities | 1,884 | 1,694 |
Net finance receivables (includes loans of consolidated VIEs of $8.4 billion in 2019 and $8.5 billion in 2018) | 18,389 | 16,164 |
Unearned insurance premium and claim reserves | (793) | (662) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $340 million in 2019 and $444 million in 2018) | (829) | (731) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,767 | 14,771 |
Finance receivables held for sale | 64 | 103 |
Notes receivable from parent | 0 | 0 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $400 million in 2019 and $479 million in 2018) | 405 | 499 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 343 | 388 |
Other assets | 705 | 534 |
Total assets | 22,817 | 20,090 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.6 billion in 2019 and $7.5 billion in 2018) | 17,212 | 15,178 |
Insurance claims and policyholder liabilities | 649 | 685 |
Deferred and accrued taxes | 34 | 45 |
Other liabilities | 592 | 383 |
Total liabilities | 18,487 | 16,291 |
Commitments and contingent liabilities (Note 16) | ||
Shareholders’ equity: | ||
Common stock | 1 | 1 |
Additional paid-in capital | 1,689 | 1,681 |
Accumulated other comprehensive income (loss) | 44 | (34) |
Retained earnings | 2,596 | 2,151 |
Total shareholders’ equity | 4,330 | 3,799 |
Total liabilities and shareholders’ equity | 22,817 | 20,090 |
SFC | ||
Assets | ||
Cash and cash equivalents | 1,227 | 663 |
Investment securities | 1,884 | 1,694 |
Net finance receivables (includes loans of consolidated VIEs of $8.4 billion in 2019 and $8.5 billion in 2018) | 18,389 | 16,122 |
Unearned insurance premium and claim reserves | (793) | (662) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $340 million in 2019 and $444 million in 2018) | (829) | (726) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,767 | 14,734 |
Finance receivables held for sale | 64 | 103 |
Notes receivable from parent | 0 | 260 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $400 million in 2019 and $479 million in 2018) | 405 | 499 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 343 | 387 |
Other assets | 704 | 547 |
Total assets | 22,816 | 20,309 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.6 billion in 2019 and $7.5 billion in 2018) | 17,212 | 15,178 |
Insurance claims and policyholder liabilities | 649 | 685 |
Deferred and accrued taxes | 35 | 42 |
Other liabilities | 595 | 383 |
Total liabilities | 18,491 | 16,288 |
Commitments and contingent liabilities (Note 16) | ||
Shareholders’ equity: | ||
Common stock | 5 | 5 |
Additional paid-in capital | 1,888 | 2,110 |
Accumulated other comprehensive income (loss) | 44 | (34) |
Retained earnings | 2,388 | 1,940 |
Total shareholders’ equity | 4,325 | 4,021 |
Total liabilities and shareholders’ equity | $ 22,816 | $ 20,309 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Net finance receivables | $ 18,389 | $ 16,164 |
Allowance for finance receivable losses | 829 | 731 |
Restricted cash and restricted cash equivalents | 405 | 499 |
Long-term debt | 17,212 | 15,178 |
Other liabilities | $ 592 | $ 383 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 136,101,156 | 135,832,278 |
Common stock, shares outstanding (in shares) | 136,101,156 | 135,832,278 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 340 | $ 444 |
Restricted cash and restricted cash equivalents | 400 | 479 |
Long-term debt | 7,600 | 7,500 |
Other liabilities | 14 | 14 |
Finance receivable - Personal loan | ||
Allowance for finance receivable losses | 829 | 731 |
Finance receivable - Personal loan | Consolidated VIEs | ||
Net finance receivables | 8,400 | 8,500 |
SFC | ||
Net finance receivables | 18,389 | 16,122 |
Allowance for finance receivable losses | 829 | 726 |
Restricted cash and restricted cash equivalents | 405 | 499 |
Long-term debt | 17,212 | 15,178 |
Other liabilities | $ 595 | $ 383 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
SFC | Consolidated VIEs | ||
Allowance for finance receivable losses | $ 340 | $ 444 |
Restricted cash and restricted cash equivalents | 400 | 479 |
Long-term debt | 7,600 | 7,500 |
Other liabilities | 14 | 14 |
SFC | Finance receivable - Personal loan | Consolidated VIEs | ||
Net finance receivables | $ 8,400 | $ 8,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Finance charges | $ 4,116 | $ 3,645 | $ 3,183 |
Finance receivables held for sale | 11 | 13 | 13 |
Total interest income | 4,127 | 3,658 | 3,196 |
Interest expense | 970 | 875 | 816 |
Net interest income | 3,157 | 2,783 | 2,380 |
Provision for finance receivable losses | 1,129 | 1,048 | 955 |
Net interest income after provision for finance receivable losses | 2,028 | 1,735 | 1,425 |
Other revenues: | |||
Insurance | 460 | 429 | 420 |
Investment | 95 | 66 | 73 |
Interest income on notes receivable from parent | 0 | 0 | 0 |
Net loss on repurchases and repayments of debt | (35) | (9) | (29) |
Net gains on sales of real estate loans | 3 | 18 | 0 |
Other | 99 | 70 | 96 |
Total other revenues | 622 | 574 | 560 |
Other expenses: | |||
Salaries and benefits | 808 | 917 | 777 |
Other operating expenses | 559 | 576 | 593 |
Insurance policy benefits and claims | 185 | 192 | 184 |
Total other expenses | 1,552 | 1,685 | 1,554 |
Income before income taxes | 1,098 | 624 | 431 |
Income taxes | 243 | 177 | 248 |
Net income | $ 855 | $ 447 | $ 183 |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 136,070,837 | 135,702,989 | 135,249,314 |
Diluted (in shares) | 136,326,911 | 136,034,143 | 135,678,991 |
Earnings per share: | |||
Basic (in dollars per share) | $ 6.28 | $ 3.29 | $ 1.35 |
Diluted (in dollars per share) | $ 6.27 | $ 3.29 | $ 1.35 |
SFC | |||
Interest income: | |||
Finance charges | $ 4,116 | $ 3,635 | $ 3,174 |
Finance receivables held for sale | 11 | 13 | 13 |
Total interest income | 4,127 | 3,648 | 3,187 |
Interest expense | 972 | 876 | 816 |
Net interest income | 3,155 | 2,772 | 2,371 |
Provision for finance receivable losses | 1,129 | 1,043 | 947 |
Net interest income after provision for finance receivable losses | 2,026 | 1,729 | 1,424 |
Other revenues: | |||
Insurance | 460 | 429 | 420 |
Investment | 95 | 66 | 73 |
Interest income on notes receivable from parent | 7 | 18 | 23 |
Net loss on repurchases and repayments of debt | (35) | (9) | (29) |
Net gains on sales of real estate loans | 3 | 18 | 0 |
Other | 99 | 38 | 53 |
Total other revenues | 629 | 560 | 540 |
Other expenses: | |||
Salaries and benefits | 808 | 877 | 750 |
Other operating expenses | 558 | 577 | 635 |
Insurance policy benefits and claims | 185 | 192 | 184 |
Total other expenses | 1,551 | 1,646 | 1,569 |
Income before income taxes | 1,104 | 643 | 395 |
Income taxes | 246 | 182 | 243 |
Net income | $ 858 | $ 461 | $ 152 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 855 | $ 447 | $ 183 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 88 | (44) | 21 |
Retirement plan liability adjustments | 7 | (7) | 12 |
Foreign currency translation adjustments | 5 | (9) | 6 |
Income tax effect: | |||
Net unrealized gains (losses) on non-credit impaired available-for-sale securities | (20) | 9 | (7) |
Retirement plan liability adjustments | (1) | 3 | (3) |
Foreign currency translation adjustments | (2) | 0 | (2) |
Other comprehensive income (loss), net of tax, before reclassification adjustments | 77 | (48) | 27 |
Reclassification adjustments included in net income, net of tax: | |||
Net realized losses (gains) on available-for-sale securities, net of tax | 1 | 1 | (9) |
Retirement plan liability adjustments, net of tax | 0 | 0 | (1) |
Reclassification adjustments included in net income, net of tax | 1 | 1 | (10) |
Other comprehensive income (loss), net of tax | 78 | (47) | 17 |
Comprehensive income | 933 | 400 | 200 |
SFC | |||
Net income | 858 | 461 | 152 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 88 | (44) | 21 |
Retirement plan liability adjustments | 7 | (8) | 4 |
Foreign currency translation adjustments | 5 | (9) | 6 |
Income tax effect: | |||
Net unrealized gains (losses) on non-credit impaired available-for-sale securities | (20) | 9 | (7) |
Retirement plan liability adjustments | (1) | 3 | (1) |
Foreign currency translation adjustments | (2) | 0 | (2) |
Other comprehensive income (loss), net of tax, before reclassification adjustments | 77 | (49) | 21 |
Reclassification adjustments included in net income, net of tax: | |||
Net realized losses (gains) on available-for-sale securities, net of tax | 1 | 1 | (9) |
Reclassification adjustments included in net income, net of tax | 1 | 1 | (9) |
Other comprehensive income (loss), net of tax | 78 | (48) | 12 |
Comprehensive income | $ 936 | $ 413 | $ 164 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Total Accumulated Other Comprehensive Income (Loss) | Retained Earnings | SFC | SFCCommon Stock | SFCAdditional Paid-in Capital | SFCTotal Accumulated Other Comprehensive Income (Loss) | SFCRetained Earnings | SCLHSFC | SCLHSFCAdditional Paid-in Capital | OGSCSFC | OGSCSFCAdditional Paid-in Capital | OGSCSFCTotal Accumulated Other Comprehensive Income (Loss) | SMHCSFC | SMHCSFCAdditional Paid-in Capital | SFMCSFC | SFMCSFCRetained Earnings | ||
Balance at beginning of period at Dec. 31, 2016 | $ 3,066 | $ 1 | $ 1,548 | $ (6) | $ 1,523 | $ 3,273 | $ 5 | $ 1,906 | $ (6) | $ 1,368 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 17 | 17 | 5 | 5 | |||||||||||||||||
Withholding tax on share-based compensation | (5) | (5) | |||||||||||||||||||
Withholding tax on share-based compensation and RSUs converted | (2) | (2) | |||||||||||||||||||
Other comprehensive income (loss) | 17 | 17 | 12 | 12 | |||||||||||||||||
Dividend of SFMC to SFI | $ (38) | $ (38) | |||||||||||||||||||
Net income | 183 | 183 | 152 | 152 | |||||||||||||||||
Balance at end of period at Dec. 31, 2017 | 3,278 | 1 | 1,560 | 11 | 1,706 | 3,402 | 5 | 1,909 | 6 | 1,482 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 21 | 21 | 10 | 10 | |||||||||||||||||
Withholding tax on share-based compensation | (10) | (10) | |||||||||||||||||||
Withholding tax on share-based compensation and RSUs converted | (2) | (2) | |||||||||||||||||||
Other comprehensive income (loss) | (47) | (47) | (48) | (48) | |||||||||||||||||
Contribution of related party to SFC from SFI | $ 58 | $ 53 | $ 5 | $ 30 | $ 30 | ||||||||||||||||
Non-cash incentive compensation from SFH | 110 | 110 | 110 | 110 | |||||||||||||||||
Impact of AOCI reclassification due to the Tax Act | 2 | 2 | (2) | 0 | 3 | (3) | |||||||||||||||
Net income | 447 | 447 | 461 | 461 | |||||||||||||||||
Balance at end of period at Dec. 31, 2018 | 3,799 | 1 | 1,681 | (34) | 2,151 | 4,021 | 5 | 2,110 | (34) | 1,940 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 13 | 13 | 13 | 13 | |||||||||||||||||
Withholding tax on share-based compensation | (5) | (5) | |||||||||||||||||||
Withholding tax on share-based compensation and RSUs converted | (5) | (5) | |||||||||||||||||||
Other comprehensive income (loss) | 78 | 78 | 78 | 78 | |||||||||||||||||
Contribution of related party to SFC from SFI | $ 34 | $ 34 | |||||||||||||||||||
Merger of SFI with SFC | (408) | (408) | |||||||||||||||||||
Cash contribution from OMH | 144 | 144 | |||||||||||||||||||
Cash dividends | (410) | [1] | (410) | [1] | (410) | (410) | |||||||||||||||
Net income | 855 | 855 | 858 | 858 | |||||||||||||||||
Balance at end of period at Dec. 31, 2019 | $ 4,330 | $ 1 | $ 1,689 | $ 44 | $ 2,596 | $ 4,325 | $ 5 | $ 1,888 | $ 44 | $ 2,388 | |||||||||||
[1] | Cash dividends declared were $0.25 per share in the first, second, and fourth quarters, and $2.25 per share in the third quarter of 2019. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.25 | $ 2.25 | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash flows from operating activities | ||||||
Net income | $ 855 | $ 447 | $ 183 | |||
Reconciling adjustments: | ||||||
Provision for finance receivable losses | 1,129 | 1,048 | 955 | |||
Depreciation and amortization | 271 | 289 | 328 | |||
Deferred income tax charge | 1 | 23 | 30 | |||
Net loss on repurchases and repayments of debt | 35 | 9 | 29 | |||
Non-cash incentive compensation from SFH | 0 | 110 | 0 | |||
Share-based compensation expense, net of forfeitures | 13 | 21 | 17 | |||
Other | (9) | 13 | (4) | |||
Cash flows due to changes in other assets and other liabilities | 67 | 86 | 17 | |||
Net cash provided by operating activities | 2,362 | 2,046 | 1,555 | |||
Cash flows from investing activities | ||||||
Net principal originations of finance receivables held for investment and held for sale | (3,305) | (2,373) | (2,275) | |||
Proceeds on sales of finance receivables held for sale originated as held for investment | 19 | 100 | 0 | |||
Available-for-sale securities purchased | (718) | (680) | (671) | |||
Available-for-sale securities called, sold, and matured | 574 | 563 | 739 | |||
Other securities purchased | (18) | (11) | 0 | |||
Other securities called, sold, and matured | 31 | 36 | 18 | |||
Other, net | (12) | (32) | (3) | |||
Net cash used for investing activities | (3,429) | (2,397) | (2,192) | |||
Cash flows from financing activities | ||||||
Proceeds from issuance of long-term debt, net of commissions | 5,895 | 5,525 | 5,427 | |||
Repayment of long-term debt | (3,961) | (5,471) | (4,447) | |||
Cash dividends | (408) | 0 | 0 | |||
Withholding tax on share-based compensation | (5) | (10) | (5) | |||
Net cash provided by (used in) financing activities | 1,521 | 44 | 975 | |||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 454 | (307) | 338 | |||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,178 | 1,485 | 1,147 | |||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,632 | 1,178 | 1,485 | |||
Supplemental cash flow information | ||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,178 | 1,178 | 1,147 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | (58) | |||||
Interest paid | (845) | (752) | (746) | |||
Income taxes paid | (261) | (150) | (156) | |||
Supplemental non-cash activities | ||||||
Transfer of net finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 111 | 0 | |||
Transfer of finance receivables to real estate owned | 8 | 7 | 9 | |||
Right-of-use assets obtained in exchange for operating lease obligations | 233 | 0 | 0 | |||
SFC | ||||||
Cash flows from operating activities | ||||||
Net income | 858 | 461 | 152 | |||
Reconciling adjustments: | ||||||
Provision for finance receivable losses | 1,129 | 1,043 | 947 | |||
Depreciation and amortization | 271 | 279 | 317 | |||
Deferred income tax charge | 3 | 21 | 43 | |||
Net loss on repurchases and repayments of debt | 35 | 9 | 29 | |||
Non-cash incentive compensation from SFH | 0 | 110 | 0 | |||
Share-based compensation expense, net of forfeitures | 13 | 10 | 5 | |||
Other | (9) | 13 | (5) | |||
Cash flows due to changes in other assets and other liabilities | 92 | 21 | 159 | |||
Net cash provided by operating activities | 2,392 | 1,967 | 1,647 | |||
Cash flows from investing activities | ||||||
Net principal originations of finance receivables held for investment and held for sale | (3,305) | (2,372) | (2,267) | |||
Proceeds on sales of finance receivables held for sale originated as held for investment | 19 | 100 | 0 | |||
Cash advances on intercompany notes receivables | (3) | (34) | (355) | |||
Proceeds from repayments of principal on intercompany note to parent | 3 | 187 | 249 | |||
Available-for-sale securities purchased | (718) | (680) | (671) | |||
Available-for-sale securities called, sold, and matured | 574 | 563 | 739 | |||
Other securities purchased | (18) | (11) | 0 | |||
Other securities called, sold, and matured | 31 | 36 | 18 | |||
Other, net | (12) | (27) | 7 | |||
Net cash used for investing activities | (3,429) | (2,238) | (2,280) | |||
Cash flows from financing activities | ||||||
Proceeds from issuance of long-term debt, net of commissions | 5,895 | 5,525 | 5,427 | |||
Repayment of long-term debt | (3,961) | (5,471) | (4,447) | |||
Cash contribution of related party | 144 | 0 | 0 | |||
Cash dividends | 0 | 0 | (10) | |||
Payments on intercompany note payable | (170) | (99) | 0 | |||
Withholding tax on share-based compensation | (5) | (2) | (2) | |||
Net cash provided by (used in) financing activities | 1,507 | (23) | 968 | |||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 470 | (294) | 335 | |||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,162 | [1] | 1,456 | [1] | 1,121 | |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | [1] | 1,632 | 1,162 | 1,456 | ||
Supplemental cash flow information | ||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | [1] | 1,632 | 1,456 | 1,456 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | (58) | |||||
Interest paid | (847) | (753) | (746) | |||
Income taxes paid | (261) | (150) | (154) | |||
Supplemental non-cash activities | ||||||
Transfer of net finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 111 | 0 | |||
Non-cash merger of SFI with SFC | (408) | 0 | 0 | |||
Transfer of finance receivables to real estate owned | 8 | 7 | 9 | |||
Non-cash dividend of SFMC | 0 | 0 | (28) | |||
Right-of-use assets obtained in exchange for operating lease obligations | 233 | 0 | 0 | |||
SCLH | SFC | ||||||
Cash flows from financing activities | ||||||
Cash contribution of related party | 12 | 0 | 0 | |||
Supplemental non-cash activities | ||||||
Non-cash contribution of related party | 22 | 0 | 0 | |||
OMH | SFC | ||||||
Cash flows from financing activities | ||||||
Cash dividends | (408) | 0 | 0 | |||
SMHC | SFC | ||||||
Cash flows from financing activities | ||||||
Cash contribution of related party | 0 | 13 | 0 | |||
Supplemental non-cash activities | ||||||
Non-cash contribution of related party | 0 | 17 | 0 | |||
OGSC | SFC | ||||||
Cash flows from financing activities | ||||||
Cash contribution of related party | 0 | 11 | 0 | |||
Supplemental non-cash activities | ||||||
Non-cash contribution of related party | $ 0 | $ 47 | $ 0 | |||
[1] | Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations OneMain Holdings, Inc. is referred to in this report as “OMH” or, collectively with its subsidiaries, whether directly or indirectly owned, the “Company,” “we,” “us,” or “our.” OMH is a Delaware corporation. OMH is a financial services holding company whose subsidiaries engage in the consumer finance and insurance businesses. Prior to the completion of the merger described below, OMH’s direct subsidiary was Springleaf Finance, Inc. (“SFI”). On September 20, 2019, Springleaf Finance Corporation (“SFC”) entered into a merger agreement with its direct parent, SFI, to merge SFI with and into SFC, with SFC as the surviving entity. The merger was effective in SFC's consolidated financial statements as of July 1, 2019. As a result of the merger with SFI, SFC became a wholly-owned direct subsidiary of OMH. At December 31, 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 Springleaf Financial Holdings, LLC ("SFH") made distributions to one or more of its common members that exceeded specified threshold amounts. In connection with 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 Accounting Standards Codification ("ASC") 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 Share Sale 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. |
Reconciliation of Results of Sp
Reconciliation of Results of Springleaf Finance Corporation to OneMain Holdings, Inc. | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Reconciliation of Results of Springleaf Finance Corporation to OneMain Holdings, Inc. | 2. Reconciliation of Springleaf Finance Corporation Results to OneMain Holdings, Inc. Results The results of SFC are consolidated into the results of OMH. Due to the nominal differences between SFC and OMH, content throughout this filing relates to both OMH and SFC. SFC disclosures relate only to itself and not to any other company. Except where otherwise indicated, and excluding certain insignificant cash and non-cash transactions at the OMH level, these notes relate to the consolidated financial statements for both companies, OMH and SFC. In addition to certain intercompany payable and receivable amounts between the entities, the following is a reconciliation of the consolidated balance sheets and results of our consolidated statements of operations of SFC to OMH: December 31, 2019 2018 (dollars in millions) OMH SFC Difference OMH SFC Difference Cash and cash equivalents $ 1,227 $ 1,227 $ — $ 679 $ 663 $ 16 Net finance receivables (a) 18,389 18,389 — 16,164 16,122 42 Allowance for finance receivable losses (a) (829) (829) — (731) (726) (5) Notes receivables from parent (b) — — — — 260 (260) Other intangible assets 343 343 — 388 387 1 Other assets 705 704 1 534 547 (13) Deferred and accrued taxes 34 35 (1) 45 42 3 Other liabilities 592 595 (3) 383 383 — Total shareholders' equity (c) 4,330 4,325 5 3,799 4,021 (222) Years Ended December 31, 2019 2018 2017 (dollars in millions) OMH SFC Difference OMH SFC Difference OMH SFC Difference Finance charges (a) $ 4,116 $ 4,116 $ — $ 3,645 $ 3,635 $ 10 $ 3,183 $ 3,174 $ 9 Interest expense 970 972 (2) 875 876 (1) 816 816 — Provision for finance receivable losses (a) 1,129 1,129 — 1,048 1,043 5 955 947 8 Interest income on note receivables from parent (b) — 7 (7) — 18 (18) — 23 (23) Other revenue (d) 99 99 — 70 38 32 96 53 43 Salaries and benefits 808 808 — 917 877 40 777 750 27 Other operating expenses 559 558 1 576 577 (1) 593 635 (42) Income before income taxes 1,098 1,104 (6) 624 643 (19) 431 395 36 Income taxes 243 246 (3) 177 182 (5) 248 243 5 Net Income 855 858 (3) 447 461 (14) 183 152 31 (a) The differences in the 2018 and 2017 periods are related to Springleaf Consumer Loan Holding Company (“SCLH”) finance receivables and the related allowance for finance receivable losses. 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. See below for further details related to the Contribution of SCLH to SFC. (b) Included in the notes receivables from parent were notes from SFI held by SFC and Springleaf Mortgage Holding Company’s (“SMHC”), a wholly-owned direct subsidiary, of SFC. See Note 1 and below for further discussion of the merger between SFI and SFC. (c) The differences between total shareholders’ equity in the years ended December 31, 2019 and 2018 were due to historical differences in results of operations of the companies and differences in equity awards. (d) The primary difference between OMH and SFC for other revenue relate to the servicing revenue from the SpringCastle Portfolio. The servicing fee revenue totaled $29 million and $37 million during 2018 and 2017 periods, respectively. The following transactions are related to SFC and have no impact on OMH's consolidated financial results. Merger of SFI into SFC On September 20, 2019, SFC entered into a merger agreement with its direct parent SFI, to merge SFI with and into SFC, with SFC as the surviving entity. The merger was effective in SFC's consolidated financial statements as of July 1, 2019. In conjunction with the merger, the net deficiency of SFI, after elimination of its investment in SFC, was absorbed by SFC resulting in an equity reduction of $408 million to SFC, which includes the elimination of the intercompany notes and receivables between SFC and SFI, as discussed below. The net deficiency of SFI included an intercompany note payable plus accrued interest of $166 million from SFI to OMH which SFC assumed through the merger. On September 23, 2019, SFC repaid SFI’s note to OMH. Concurrently, OMH paid $22 million in other payables due to SFC and made an equity contribution of $144 million to SFC. The transactions noted above resulted in a net $264 million reduction to SFC's equity. SFC's Notes Receivable from Parent The notes receivable from parent was $260 million at December 31, 2018 and was comprised of a $232 million note receivable from SFI to SFC and a $28 million note receivable due to SMHC, a wholly-owned subsidiary of SFC, after the contribution of SMHC from SFI to SFC on December 15, 2018. As a result of the merger between SFI and SFC, described in Note 1 and above, the note receivable from SFI to SFC was dissolved effective July 1, 2019 and the SFI note payable to SMHC was assumed by SFC and subsequently paid off on September 23, 2019. Interest income on the notes receivable from SFC totaled $8 million during 2019, $18 million during 2018, and $23 million during 2017, which we report in interest income on notes receivable from parent. 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. OneMain Consumer Loan, Inc. (“OCLI”) Loan Referral Fees Through June 30, 2018, OCLI, a wholly-owned direct subsidiary of SCLH, provided personal loan application and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC was charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. On July 1, 2018, SFC terminated its agreement with OCLI to provide these services. Prior to the termination, during 2018 and 2017, SFC recorded $29 million and $56 million of referral fee expense, respectively. Certain costs incurred by OCLI to provide these services are a component of deferred origination costs, which are included in net finance receivables. OneMain General Services Corporation (“OGSC”) Services Agreement OGSC provides a variety of services to affiliates under a services agreement, including SFC. OGSC was contributed to SFC by OMH effective July 1, 2018, and all activity between OGSC and SFC under the agreement is eliminated from SFC’s results as of July 1, 2018. Prior to the contribution, during 2018 and 2017, SFC recorded $265 million and $460 million, respectively, of service fee expenses, which are included in operating expenses. Parent and Affiliate Receivables and Payables Receivables from parent and affiliate totaled $18 million at December 31, 2018 and were included in other assets. There were no receivables from parent and affiliates at December 31, 2019 as the balances were eliminated due to the merger of SFI and SFC, and the SCLH contribution noted above. Payables to parent and affiliate are included in other liabilities and were immaterial at December 31, 2019 and 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America ("GAAP"). The statements include the accounts of OMH, its subsidiaries (all of which are wholly-owned), and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2019 presentation, we reclassified certain items in prior periods of our consolidated financial statements. ACCOUNTING POLICIES Operating Segment At December 31, 2019, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of (i) our liquidating SpringCastle Portfolio servicing activity and (ii) our non-originating legacy operations, which include our liquidating real estate loans and liquidating retail sales finance receivables. Previously, the servicing revenues and related expenses from the SpringCastle Portfolio were presented as a distinct reporting and operating segment, Acquisitions and Servicing (“A&S”). However, due to the continued decline in servicing revenues and related expenses, management no longer views the servicing activity from the SpringCastle Portfolio as a separate reportable segment. Therefore, we are now including A&S in Other. We have revised our prior period segment disclosures to conform to this new alignment. Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when four payments (approximately 90 days) become contractually past due for personal loans. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time, we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our purchased finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the effective interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, defer or forgive past due interest or forgive principal. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivables (personal loans and other receivables) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • underlying collateral; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by contractual delinquency stages and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency, underlying collateral, recoverability of collateral securing our finance receivables, other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond seven payments (approximately 180 days) past due. Generally, we start repossession of the titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge-off prior to the account becoming seven payments (approximately 180 days) past due. We infrequently extend the charge-off period for individual personal loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account must be current after granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve Accounts that are granted a deferment are not classified as TDRs. We do not consider deferments granted as a TDR because the customer is not experiencing an other than temporary financial difficulty, and the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions to estimate these expected cash flows are prepayment speeds, default rates, and severity rates. Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and whenever events occur or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the quantitative impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. The value of business acquired ("VOBA") is the present value of future profits ("PVFP") of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with ASC 944, Financial Services — Insurance . For indefinite-lived intangible assets, we review for impairment at least annually and whenever events occur or circumstances change that would indicate the assets are more likely than not to be impaired. We first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Leases All our leases are classified as operating leases, and we are the lessee or sublessor in all our lease arrangements. At inception of an arrangement, we determine if a lease exists. At lease commencement date, we recognize right-of-use assets and lease liabilities measured at the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Since our operating leases do not provide an implicit rate, we utilize the best available information to determine our incremental borrowing rate, which is used to calculate the present value of lease payments. The right-of-use asset also includes any prepaid fixed lease payments and excludes lease incentives. Options to extend or terminate a lease may be included in our lease arrangements. We reflect the renewal or termination option in the right-of-use asset and lease liability when it is reasonably certain that we will exercise those options. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. We have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component. Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in “Other operating expenses” in our consolidated statement of operations. In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments. The operating lease right-of-use assets are included in “Other assets” and the operating lease liabilities are included in “Other liabilities” in our consolidated balance sheet. Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on optional products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. Investment Securities We generally classify our investment securities as available-for-sale or other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues. Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. Restricted Cash and Cash Equivalents We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 4. 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, using the optional transition approach. As a result of this election, the prior periods presented have not been adjusted. See Note 16 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 are 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. The new approach requires 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. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the growth of the Company’s loan portfolio, mix of secured and unsecured loans, credit quality, 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 is effective for the Company beginning January 1, 2020. The Company’s cross-functional implementation team has completed the implementation of this ASU. Based on the December 31, 2019 loan portfolio and current expectations of future economic conditions, this ASU resulted in an increase to the allowance for finance receivable losses of $1.12 billion, an increase to deferred tax assets of $0.28 billion, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $0.83 billion in the consolidated balance sheets at January 1, 2020. In addition, the Company’s implementation team worked 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. The adoption of this ASU, as it relates to available-for-sale debt securities, will not have a material impact on the consolidated financial statements. 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 the Company beginning January 1, 2022, as a result of the FASB issuing a one-year deferral of this ASU for public companies. 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, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables | 5. Finance Receivables Our finance receivables consist of personal loans, which are non-revolving, with a fixed-rate, a fixed term of three Net finance receivables consist of our total portfolio of personal loans. Components of our personal loans were as follows: (dollars in millions) December 31, 2019 2018 Gross receivables * $ 18,195 $ 15,978 Unearned points and fees (242) (201) Accrued finance charges 289 253 Deferred origination costs 147 134 Total $ 18,389 $ 16,164 * 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 GEOGRAPHIC DIVERSIFICATION Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows: December 31, 2019 2018 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,606 9 % $ 1,446 9 % North Carolina 1,217 7 1,178 7 California 1,193 6 994 6 Pennsylvania 1,097 6 945 6 Florida 1,025 6 832 5 Ohio 913 5 791 5 Illinois 787 4 700 4 Georgia 748 4 650 4 Indiana 741 4 653 4 Virginia 710 4 651 4 Tennessee 602 3 547 3 Other 7,750 42 6,777 43 Total $ 18,389 100 % $ 16,164 100 % * December 31, 2018 concentrations of net finance receivables are presented in the order of December 31, 2019 state concentrations. CREDIT QUALITY INDICATOR We consider the concentration of secured loans, the underlying value of collateral of secured loans, and the delinquency status of our finance receivables as our primary credit quality indicators. At December 31, 2019 and December 31, 2018, 52% and 48%, respectively, of our personal loans were secured by titled collateral. 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) December 31, 2019 2018 Performing Current $ 17,550 $ 15,411 30-59 days past due 272 229 60-89 days past due 181 161 Total performing 18,003 15,801 Nonperforming 90-179 days past due 377 355 180 days or more past due 9 8 Total nonperforming 386 363 Total $ 18,389 $ 16,164 PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of personal loans and real estate loans 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 December 31, 2019 and 2018, finance receivables held for sale totaled $64 million and $103 million, respectively, which include purchased credit impaired real estate loans, as well as TDR real estate loans. See Note 7 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired finance receivables were as follows: (dollars in millions) December 31, 2019 2018 Personal Loans Carrying amount, net of allowance $ 40 $ 89 Outstanding balance (a) 74 135 Allowance for purchased credit impaired finance receivable losses (b) — — Real Estate Loans - Held for Sale Carrying amount $ 19 $ 28 Outstanding balance (a) 35 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 December 31, 2019 or 2018. Changes in accretable yield for purchased credit impaired finance receivables were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans Balance at beginning of period $ 39 $ 47 $ 59 Accretion (20) (27) (34) Reclassifications from nonaccretable difference * 16 19 22 Balance at end of period $ 35 $ 39 $ 47 Real Estate Loans - Held for Sale Balance at beginning of period $ 27 $ 53 $ 60 Accretion (2) (4) (5) Reclassifications to nonaccretable difference * — — (2) Transfer due to finance receivables sold (3) (22) — Balance at end of period $ 22 $ 27 $ 53 * Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. TDR FINANCE RECEIVABLES Information regarding TDR finance receivables were as follows: (dollars in millions) December 31, 2019 2018 Personal Loans TDR gross receivables (a) $ 655 $ 450 TDR net receivables (b) 658 453 Allowance for TDR finance receivable losses 272 170 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 52 $ 89 TDR net receivables (b) 53 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 were as follows: (dollars in millions) Personal Other Receivables * Total Year Ended December 31, 2019 TDR average net receivables $ 550 $ 58 $ 608 TDR finance charges recognized 45 3 48 Year Ended December 31, 2018 TDR average net receivables $ 383 $ 130 $ 513 TDR finance charges recognized 45 7 52 Year Ended December 31, 2017 TDR average net receivables $ 231 $ 140 $ 371 TDR finance charges recognized 33 9 42 * Other receivables held for sale included in the table above consist of real estate loans and were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 TDR average net receivables $ 58 $ 98 $ 91 TDR finance charges recognized 3 5 6 Information regarding the new volume of the TDR finance receivables held for investment and held for sale are reflected in the following table. (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans Pre-modification TDR net finance receivables $ 536 $ 377 $ 327 Post-modification TDR net finance receivables: Rate reduction 370 289 251 Other (a) 166 88 75 Total post-modification TDR net finance receivables $ 536 $ 377 $ 326 Number of TDR accounts 78,257 57,324 45,560 Other Receivables (b) Pre-modification TDR net finance receivables $ 1 $ 3 $ 16 Post-modification TDR net finance receivables: Rate reduction 1 3 16 Other — — — Total post-modification TDR net finance receivables $ 1 $ 3 $ 16 Number of TDR accounts 8 70 510 (a) “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. (b) TDR "other receivable" loans held for sale include in the table above 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. (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans TDR net finance receivables * $ 96 $ 64 $ 89 Number of TDR accounts 14,732 9,719 15,035 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. TDR other receivables for the years ended December 31, 2019, 2018 and 2017 that defaulted during the previous 12-month period are immaterial. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | 6. 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 Total Year Ended December 31, 2019 Balance at beginning of period $ 731 $ — $ 731 Provision for finance receivable losses 1,129 — 1,129 Charge-offs (1,157) — (1,157) Recoveries 126 — 126 Balance at end of period $ 829 $ — $ 829 Year Ended December 31, 2018 Balance at beginning of period $ 673 $ 24 $ 697 Provision for finance receivable losses 1,050 (2) 1,048 Charge-offs (1,102) (2) (1,104) Recoveries 110 3 113 Other * — (23) (23) Balance at end of period $ 731 $ — $ 731 Year Ended December 31, 2017 Balance at beginning of period $ 669 $ 20 $ 689 Provision for finance receivable losses 949 6 955 Charge-offs (1,048) (6) (1,054) Recoveries 103 4 107 Balance at end of period $ 673 $ 24 $ 697 * Other consists primarily of the reclassification of allowance for finance receivable losses due to the transfer of the real estate loans in other receivables from held for investment to finance receivables held for sale on September 30, 2018. See Notes 5 and 7 included in this report for further information. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) December 31, 2019 2018 Allowance for finance receivable losses: Collectively evaluated for impairment $ 557 $ 561 Purchased credit impaired finance receivables — — TDR finance receivables 272 170 Total $ 829 $ 731 Finance receivables: Collectively evaluated for impairment $ 17,691 $ 15,622 Purchased credit impaired finance receivables 40 89 TDR finance receivables 658 453 Total $ 18,389 $ 16,164 Allowance for finance receivable losses as a percentage of finance receivables 4.51 % 4.52 % |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables Held for Sale | 7. Finance Receivables Held for Sale We reported finance receivables held for sale of $64 million at December 31, 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. See Note 3 for more information regarding our accounting policy for finance receivables held for sale. 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. During 2018, we transferred $88 million of real estate loans (net of allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In December 2018, we sold a portfolio of real estate loans with a carrying value of $82 million for aggregate cash proceeds of $100 million and recorded a net gain in other revenues of $18 million (“December 2018 Real Estate Loan Sale”). After the recognition of the December 2018 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 $16 million. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 8. 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/ Unrealized Unrealized Fair December 31, 2019 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 91 2 (1) 92 Commercial paper 91 — — 91 Non-U.S. government and government sponsored entities 144 3 — 147 Corporate debt 1,054 45 (1) 1,098 Mortgage-backed, asset-backed, and collateralized: RMBS 214 3 — 217 CMBS 56 1 — 57 CDO/ABS 84 1 — 85 Total $ 1,745 $ 55 $ (2) $ 1,798 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 Unrealized Fair Unrealized Fair Unrealized December 31, 2019 U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions 29 (1) 4 — 33 (1) Commercial paper 76 — — — 76 — Non-U.S. government and government sponsored entities 19 — 14 — 33 — Corporate debt 63 (1) 13 — 76 (1) Mortgage-backed, asset-backed, and collateralized: RMBS 45 — — — 45 — CMBS 15 — 7 — 22 — CDO/ABS 14 — — — 14 — Total $ 261 $ (2) $ 41 $ — $ 302 $ (2) 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 398 and 1,767 investment securities in an unrealized loss position at December 31, 2019 and 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 December 31, 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 December 31, 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 2019 and 2018, other-than-temporary impairment credit losses, primarily on corporate debt, in investment revenues were immaterial. No impairment was recognized during 2017. There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities during 2019, 2018, and 2017. The proceeds of available-for-sale securities sold or redeemed during 2019, 2018, and 2017 totaled $284 million, $341 million, and $508 million, respectively. The net realized gains and losses were immaterial during 2019 and 2018, and the net realized gains were $14 million during 2017. Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2019 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 226 $ 225 Due after 1 year through 5 years 559 546 Due after 5 years through 10 years 481 457 Due after 10 years 173 163 Mortgage-backed, asset-backed, and collateralized securities 359 354 Total $ 1,798 $ 1,745 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 $633 million and $515 million at December 31, 2019 and 2018, respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) December 31, 2019 2018 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 24 43 Mortgage-backed, asset-backed, and collateralized bonds 15 2 Total bonds 40 46 Preferred stock * 19 19 Common stock * 26 21 Other long-term investments 1 1 Total $ 86 $ 87 * The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. Net unrealized gains on other securities held at December 31, 2019 were $6 million. Net unrealized losses were $7 million at December 31, 2018 and immaterial at December 31, 2017. Net realized gains and losses on other securities sold or redeemed are included in investment revenue and were immaterial during 2019, 2018, and 2017. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets GOODWILL The carrying amount of goodwill totaled $1.4 billion at December 31, 2019 and 2018. We did not record any impairments to goodwill during 2019, 2018 and 2017. OTHER INTANGIBLE ASSETS The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2019 Customer relationships $ 223 $ (160) $ 63 Trade names 220 — 220 VOBA 105 (71) 34 Licenses 25 — 25 Other 13 (12) 1 Total $ 586 $ (243) $ 343 December 31, 2018 Customer relationships $ 223 $ (126) $ 97 Trade names 220 — 220 VOBA 141 (99) 42 Licenses 28 — 28 Other 13 (12) 1 Total $ 625 $ (237) $ 388 Amortization expense totaled $39 million in 2019, $43 million in 2018, and $52 million in 2017. The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2020 $ 37 2021 32 2022 3 2023 3 2024 3 During 2019, we wrote off the net carrying amount on our indefinite-lived insurance license intangibles and VOBA of $6 million in connection with the sale of our former insurance subsidiary, Merit Life Insurance Co. ("Merit"). During 2018, we recorded an impairment loss of $8 million on our indefinite-lived licenses in connection with the sale of our former insurance subsidiary, Yosemite Insurance Company ("Yosemite"). See Note 12 for further information on the sales. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 10. Long-term Debt Carrying value and fair value of long-term debt by type were as follows: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Fair Carrying Fair Senior debt $ 17,040 $ 18,332 $ 15,006 $ 14,868 Junior subordinated debt 172 177 172 173 Total $ 17,212 $ 18,509 $ 15,178 $ 15,041 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2019 2018 2017 2019 2018 Senior debt 5.90 % 5.64 % 5.73 % 5.85 % 5.89 % Junior subordinated debt 8.68 8.13 6.41 7.65 8.56 Total 5.93 5.66 5.74 5.87 5.92 Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2019 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 2.31%-6.94% 5.38%-8.25% 3.74 % 2020 $ — $ 1,000 $ — $ 1,000 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025-2067 — 4,399 350 4,749 Securitizations (c) 7,678 — — 7,678 Total principal maturities $ 7,678 $ 9,520 $ 350 $ 17,548 Total carrying amount $ 7,643 $ 9,397 $ 172 $ 17,212 Debt issuance costs (d) (30) (85) — (115) (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 December 31, 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 3.74% as of December 31, 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 December 31, 2019, there were no amounts drawn under our revolving conduit facilities. See Note 11 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 December 31, 2019 and are reported in “Other assets.” SFC’S 6.125% SENIOR NOTES DUE 2024 OFFERINGS On February 22, 2019, SFC issued $1.0 billion aggregate principal amount and on July 2, 2019, SFC issued an additional $300 million 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. REDEMPTION OF SFC'S 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 (the "5.25% SFC 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. In connection with the redemption, we recognized $21 million of net loss on the repurchases and repayments of debt for the year ended December 31, 2019. REDEMPTION OF SFC'S 6.00% SENIOR NOTES DUE 2020 On March 15, 2019, SFC issued a notice of redemption of its 6.00% Senior Notes due 2020 (the "6.00% SFC 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 $11 million of net loss on repurchases and repayments of debt for the year ended December 31, 2019. 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 5.375% SENIOR NOTES DUE 2029 OFFERING On November 7, 2019, SFC issued a total of $750 million aggregate principal amount of 5.375% Senior Notes due 2029 (the “5.375% SFC Notes due 2029”) under the SFC Senior Notes Indentures, as supplemented by the SFC Ninth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. OMFH Notes During 2018, OMFH redeemed all $700 million outstanding principal amount of OMFH Notes due 2019 and, through two separate redemptions, all $800 million outstanding principal amount of OMFH Notes due 2021 at a redemption price equal to 103.375% for the OMFH Notes due 2019 and 103.625% for the OMFH Notes due 2021, plus accrued and unpaid interest to the redemption date. In connection with these redemptions, we recognized $8 million of net loss on repurchases and repayments of debt for the year ended December 31, 2018. DEBT COVENANTS SFC Debt Agreements The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. With the exception of SFC’s junior subordinated debenture, none of our debt agreements requires SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty, may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. As of December 31, 2019, SFC was in compliance with all of the covenants under its debt agreements. Junior Subordinated Debenture In January of 2007, SFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60-year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017. 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 3.74% as of December 31, 2019. On December 30, 2013, OMH entered into a guaranty agreement whereby it agreed to fully and unconditionally guarantee, on a junior subordinated basis, the payment of principle of, premium (if any), and interest on the Junior Subordinated Debenture. Pursuant to the terms of the Junior Subordinated Debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated Debenture (and not make dividend payments) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated Debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters. Based upon SFC’s financial results for the 12 months ended December 31, 2019, a mandatory trigger event did not occur with respect to the interest payment due in January of 2020, as SFC was in compliance with both required ratios discussed above. OMFH Debt Agreements On June 13, 2018, OMFH redeemed the remaining principal amount of the OMFH Notes due 2021 and received notice of satisfaction and discharge with respect to the OMFH Notes. As such, OMFH is no longer subject to the covenants or other terms of the OMFH Indenture or the OMFH Supplemental Indenture. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 11. Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. In addition, with respect to each financing transaction that is subject to the risk retention requirements of Section 941 of the Dodd-Frank Act, we retain at least 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows: (dollars in millions) December 31, 2019 2018 Assets Cash and cash equivalents $ 4 $ 2 Finance receivables - Personal loans 8,428 8,480 Allowance for finance receivable losses 340 444 Restricted cash and restricted cash equivalents 400 479 Other assets 29 26 Liabilities Long-term debt $ 7,643 $ 7,510 Other liabilities 15 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 $326 million in 2019, $341 million in 2018, and $323 million in 2017. SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from one REVOLVING CONDUIT FACILITIES We had access to 14 conduit facilities with a total borrowing capacity of $7.1 billion as of December 31, 2019. Our conduit facilities’ revolving period end ranges from approximately one three At December 31, 2019, no amounts were drawn under these facilities. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Insurance | 12. Insurance As part of our continuing integration efforts in connection with the OneMain Acquisition, on March 7, 2019, we entered into a share purchase agreement to sell all of the issued and outstanding shares of our former insurance subsidiary, Merit. The transaction closed on December 31, 2019. We recorded a net gain of $9 million in other operating expenses in the fourth quarter of 2019. On May 29, 2018, we entered into a share purchase agreement to sell all of the issued and outstanding shares of our former insurance subsidiary, Yosemite. We recorded an impairment loss of $14 million on the transfer to held for sale in other operating expenses in the second quarter of 2018. The transaction closed in 2018. INSURANCE RESERVES Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2019 2018 Finance receivable related: Payable to OMH: Unearned premium reserves $ 712 $ 583 Claim reserves 81 79 Subtotal (a) 793 662 Payable to third-party beneficiaries: Unearned premium reserves 121 100 Benefit reserves 107 106 Claim reserves 18 17 Subtotal (b) 246 223 Non-finance receivable related: Unearned premium reserves 74 77 Benefit reserves 311 364 Claim reserves 18 21 Subtotal (b) 403 462 Total $ 1,442 $ 1,347 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies totaled $369 million and $319 million at December 31, 2019 and 2018, respectively. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $71 million and $74 million at December 31, 2019 and 2018, respectively. Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): (dollars in millions) At or for the Years Ended December 31, 2019 2018 2017 Balance at beginning of period $ 117 $ 154 $ 158 Less reinsurance recoverables (4) (23) (26) Net balance at beginning of period 113 131 132 Additions for losses and loss adjustment expenses incurred to: Current year 200 199 188 Prior years * (15) (10) 5 Total 185 189 193 Reductions for losses and loss adjustment expenses paid related to: Current year (121) (118) (115) Prior years (64) (69) (78) Total (185) (187) (193) Foreign currency translation adjustment — (1) (1) Net balance at end of period 113 132 131 Plus reinsurance recoverables 4 4 23 Less transfer of reserves — (19) — Balance at end of period $ 117 $ 117 $ 154 * Reflects (i) a redundancy in the prior years’ net reserves of $15 million at December 31, 2019, primarily due to favorable development of credit life, disability, and unemployment claims during the year, (ii) a redundancy in the prior years’ net reserves of $10 million at December 31, 2018, primarily due to a favorable development of credit life, disability, and unemployment claims during the year, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017, primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies. Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2019, were as follows: Years Ended December 31, At December 31, 2019 (dollars in millions) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 Incurred-but- Cumulative Number of Reported Claims Cumulative Credit Insurance Accident Year 2015 $ 138 $ 129 $ 129 $ 126 $ 125 $ — 52,555 2.8 % 2016 — 138 135 133 131 2 51,654 2.8 % 2017 — — 136 129 125 7 44,341 2.4 % 2018 — — — 145 134 19 41,487 2.1 % 2019 — — — — 152 67 35,825 1.9 % Total $ 667 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2019, were as follows: Years Ended December 31, (dollars in millions) 2015 * 2016 * 2017* 2018* 2019 Credit Insurance Accident Year 2015 $ 68 $ 106 $ 117 $ 123 $ 125 2016 — 74 113 124 129 2017 — — 75 108 117 2018 — — — 81 114 2019 — — — — 86 Total $ 571 All outstanding liabilities before 2015, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 96 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2019 2018* 2017* Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 96 $ 94 $ 90 Other short-duration insurance lines 3 2 22 Total 99 96 112 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines — — 20 Insurance lines other than short-duration 18 21 22 Total gross liability for unpaid claims and claim adjustment expense $ 117 $ 117 $ 154 * Unaudited. We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. There have been no significant changes in methodologies or assumptions during 2019. Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2019, were as follows: Years 1 2 3 4 5 Credit insurance 57.4 % 27.9 % 8.3 % 4.4 % 1.4 % STATUTORY ACCOUNTING Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Department of Insurance ("DOI") which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis. Statutory net income for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Property and casualty: Yosemite $ — $ — $ 19 Triton 16 18 31 Life and health: Merit $ — $ 53 $ 37 AHL 56 32 34 Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2019 2018 Property and casualty: Triton $ 144 $ 113 Life and health: Merit $ — $ 94 AHL 192 129 Our insurance companies are also subject to risk-based capital requirements adopted by the Texas DOI. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2019 and 2018, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. DIVIDEND RESTRICTIONS Our insurance subsidiaries are subject to domiciliary state regulations that limit their ability to pay dividends. Merit and Yosemite were domiciled in Indiana, with Merit redomesticating to Texas on January 28, 2019. AHL and Triton are domiciled in Texas. State law restricts the amounts that our insurance subsidiaries may pay as dividends without prior notice to the state of domicile DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the state of domicile DOI. The maximum ordinary dividends for an Indiana or Texas domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net income. Any amount greater must be approved by the state of domicile DOI. These approved dividends are called “extraordinary dividends.” During 2018, ordinary dividends of $34 million and $37 million were paid by AHL and Merit, respectively. There were no ordinary dividends paid by any of our insurance subsidiaries during 2019 or 2017. Extraordinary dividends paid were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 AHL $ — $ — $ 111 Triton — 70 — Merit 140 — 90 Yosemite — 42 35 |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share (OMH Only) | 13. Capital Stock and Earnings Per Share (OMH Only) CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. SFC has two classes of authorized capital stock: special stock and common stock. OMH and SFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the SFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance. Par value and shares authorized at December 31, 2019 were as follows: OMH SFC Preferred Stock * Common Stock Special Stock Common Stock Par value $ 0.01 $ 0.01 $ — $ 0.50 Shares authorized 300,000,000 2,000,000,000 25,000,000 25,000,000 * No shares of OMH preferred stock or SFC special stock were issued and outstanding at December 31, 2019 or 2018. Changes in OMH shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2019 2018 2017 Balance at beginning of period 135,832,278 135,349,638 134,867,868 Common shares issued 268,878 482,640 481,770 Balance at end of period 136,101,156 135,832,278 135,349,638 SFC shares issued and outstanding were as follows: Special Stock Common Stock 2019 2018 2019 2018 Shares issued and outstanding — — 10,160,021 10,160,021 EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2019 2018 2017 Numerator (basic and diluted): Net income $ 855 $ 447 $ 183 Denominator: Weighted average number of shares outstanding (basic) 136,070,837 135,702,989 135,249,314 Effect of dilutive securities * 256,074 331,154 429,677 Weighted average number of shares outstanding (diluted) 136,326,911 136,034,143 135,678,991 Earnings per share: Basic $ 6.28 $ 3.29 $ 1.35 Diluted $ 6.27 $ 3.29 $ 1.35 * We have excluded the following shares in the diluted earnings per share calculation for 2019, 2018, and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Years Ended December 31, 2019 2018 2017 Performance-based shares 173,944 40,593 59,863 Service-based shares 97,011 246,913 674,472 Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units ("RSUs") and restricted stock awards ("RSAs"). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Total Year Ended December 31, 2019 Balance at beginning of period $ (28) $ (3) $ (3) $ (34) Other comprehensive income before reclassifications 68 6 3 77 Reclassification adjustments from accumulated other 1 — — 1 Balance at end of period $ 41 $ 3 $ — $ 44 Year Ended December 31, 2018 Balance at beginning of period $ 4 $ 4 $ 3 $ 11 Other comprehensive loss before reclassifications (35) (4) (9) (48) Reclassification adjustments from accumulated other comprehensive income 1 — — 1 Impact of AOCI reclassification due to the Tax Act 2 (3) 3 2 Balance at end of period $ (28) $ (3) $ (3) $ (34) Year Ended December 31, 2017 Balance at beginning of period $ (1) $ (4) $ (1) $ (6) Other comprehensive income before reclassifications 14 9 4 27 Reclassification adjustments from accumulated other comprehensive loss (9) (1) — (10) Balance at end of period $ 4 $ 4 $ 3 $ 11 Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Unrealized gains (losses) on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ (1) $ (2) $ 14 Income tax effect — 1 (5) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes (1) (1) 9 Unrealized gains (losses) on retirement plan liabilities: Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, before taxes $ — $ — $ 2 Income tax effect — — (1) Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, net of taxes — — 1 Total $ (1) $ (1) $ 10 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes OMH and all of its eligible domestic U.S. subsidiaries file a consolidated life/non-life federal tax return with the IRS. AHL, an insurance subsidiary of OneMain, is not an eligible company under Internal Revenue Code Section 1504 and therefore, files separate federal life insurance tax returns. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH. The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico, and the U.S. Virgin Islands. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2019, the Company had no undistributed foreign earnings. Components of income before income tax expense were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Income before income tax expense - U.S. operations $ 1,082 $ 610 $ 416 Income before income tax expense - foreign operations 16 14 15 Total $ 1,098 $ 624 $ 431 Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Current: Federal $ 205 $ 131 $ 208 Foreign 3 3 2 State 34 20 8 Total current 242 154 218 Deferred: Federal 15 15 18 State (14) 8 12 Total deferred 1 23 30 Total $ 243 $ 177 $ 248 Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico, and the U.S. Virgin Islands. OMH's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.00 % 21.00 % 35.00 % State income taxes, net of federal 3.49 3.65 2.86 Change in valuation allowance (2.07) — — Nondeductible compensation 0.13 3.85 — Excess tax expense on share-based compensation 0.04 0.02 0.41 Impact of Tax Act — — 18.65 Other, net (0.43) (0.15) 0.55 Effective income tax rate 22.16 % 28.37 % 57.47 % SFC's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.00 % 21.00 % 35.00 % State income taxes, net of federal 3.49 3.68 2.63 Change in valuation allowance (2.06) — — Nondeductible compensation 0.13 3.73 — Excess tax expense on share-based compensation 0.04 0.02 0.33 Return to provision adjustment 0.08 — 0.81 Impact of Tax Act — — 21.69 Other, net (0.41) (0.08) 1.09 Effective income tax rate 22.27 % 28.35 % 61.55 % The lower effective income tax rate in 2019 as compared to 2018 is primarily due to the release of the valuation allowance against certain state deferred taxes in 2019 and the effect of discrete tax expense for the non-deductible compensation expense in 2018. The lower effective income tax rate in 2018 as compared to 2017 is primarily due to the lower federal statutory rate of 21% in 2018 and the recognition of the impact of the Tax Act which increased our 2017 effective tax rate by 18.65%. As a result of the Tax Act, we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 17 $ 15 $ 16 Increases in tax positions for current years 2 — 1 Increases in tax positions for prior years 2 8 — Lapse in statute of limitations (3) (6) (2) Settlements with tax authorities (6) — — Balance at end of year $ 12 $ 17 $ 15 Our gross unrecognized tax benefits include related interest and penalties. We accrue interest and penalties related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. We are currently under examination of our U.S. federal tax return for the years 2014 to 2016 by the IRS. We are also under examination of various states for the years 2011 to 2018. Management believes it has adequately provided for taxes for such years. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2019 2018* Deferred tax assets: Allowance for loan losses $ 210 $ 191 Net operating losses and tax credits 33 36 Insurance reserves 31 8 Pension/employee benefits 16 22 Mark-to-market 10 35 Tax interest adjustment 7 19 Acquisition costs 6 7 Fair value of equity and securities investments — 8 Other 9 15 Total $ 322 $ 341 Deferred tax liabilities: Goodwill $ 97 $ 75 Debt fair value adjustment 52 56 Deferred loan fees 19 21 Fair value of equity and securities investments 12 — Fixed assets 8 8 Discount - debt exchange 5 9 Other 4 2 Total $ 197 $ 171 Net deferred tax assets before valuation allowance $ 125 $ 170 Valuation allowance (21) (41) Net deferred tax assets $ 104 $ 129 * To conform to the 2019 presentation, we reclassified certain items in the prior period. The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. The decrease in net deferred tax asset of $25 million was mainly attributable to the favorable movement of mark-to-market basis difference on our loan receivables and tax amortization of goodwill which was partly offset by the increase of loan loss reserve. At December 31, 2019, we had state net operating loss carryforwards of $551 million, compared to $626 million at December 31, 2018. The state net operating loss carryforwards mostly expire between 2025 and 2039, except for some states which conform to the federal rules for indefinite carryforward. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit, of $18 million and $38 million at December 31, 2019 and 2018, respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more likely than not to not be realized. During 2019, we released $23 million of valuation allowance against certain state deferred tax assets. This release was primarily due to the impact of our ongoing legal entity simplification project, in which we consolidated our various operating subsidiaries, and continued earnings growth. |
Leases and Contingencies
Leases and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases and Contingencies | 16. Leases and Contingencies LEASES As described in Note 4, 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. Our operating leases primarily consist of leased office space, automobiles, and information technology equipment and have remaining lease terms of one year to ten years. At December 31, 2019, our operating right-of-use asset balance was $163 million, and our operating lease liability balance was $176 million. Our operating lease costs totaled $61 million, and our variable lease costs totaled $16 million for the year ended December 31, 2019. Our sublease income was immaterial for 2019. At December 31, 2019, maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2020 $ 62 2021 52 2022 39 2023 23 2024 13 Thereafter 11 Total lease payments 200 Imputed interest (24) Total $ 176 Weighted Average Remaining Lease Term 3.8 years Weighted Average Discount Rate 3.78 % 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 $74 million in 2018 and $79 million in 2017. 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. Federal Securities Class Action (OMH only) On February 10, 2017, a putative class action lawsuit, Galestan v. OneMain Holdings, Inc., et al. , was filed in the U.S. District Court for the Southern District of New York, naming as defendants OMH and two of its officers. The lawsuit alleged violations of the Exchange Act for allegedly making materially misleading statements and/or omitting material information concerning alleged integration issues after the OneMain Acquisition in November 2015, and was filed on behalf of a putative class of persons who purchased or otherwise acquired OMH’s common stock between February 25, 2016 and November 7, 2016. The complaint sought an award of unspecified compensatory damages, an award of interest, reasonable attorney’s fees, expert fees and other costs, and equitable relief as the court may deem just and proper. On April 23, 2019, the parties executed a settlement agreement, which received final approval from the Court on August 9, 2019. Pursuant to the settlement agreement, the action was dismissed with prejudice. The settlement contained no admission of liability by OMH and the other defendants. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | 17. Retirement Benefit Plans DEFINED CONTRIBUTION PLAN The Company sponsors a voluntary defined contribution plan to eligible employees of the Company. OneMain 401(k) Plan The OneMain 401(k) Plan (the "401(k) Plan"), previously known as the Springleaf Financial Services 401(k) Plan, provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees for 2019, 2018, and 2017. The salaries and benefits expense associated with this plan was $17 million in 2019 and 2018, and $16 million in 2017. In addition, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. The Company did not make any discretionary profit sharing contributions to the 401(k) Plan in 2019, 2018, or 2017. DEFINED BENEFIT PLANS Springleaf Financial Services Retirement Plan The Springleaf Financial Services Retirement Plan (the “Springleaf Retirement Plan”) is a qualified non-contributory defined benefit plan which is subject to the provisions of ERISA. Effective December 31, 2012, the Springleaf Retirement Plan was frozen with respect to both benefits accruals and new participation. U.S. salaried employees who were employed by a participating company, had attained age 21, and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Springleaf Retirement Plan that accrued prior to January 1, 2013. CommoLoCo Retirement Plan The CommoLoCo Retirement Plan is a qualified non-contributory defined benefit plan which is subject to the provisions of ERISA and the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. Unfunded Defined Benefit Plans We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) the Springleaf Financial Services Excess Retirement Income Plan (the "Excess Retirement Income Plan"), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan ("SERP"), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. OBLIGATIONS AND FUNDED STATUS The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) Pension * At or for the Years Ended December 31, 2019 2018 2017 Projected benefit obligation, beginning of period $ 320 $ 354 $ 385 Interest cost 12 11 13 Actuarial loss (gain) 47 (30) 17 Benefits paid: Plan assets (15) (15) (14) Settlement — — (47) Projected benefit obligation, end of period 364 320 354 Fair value of plan assets, beginning of period 308 341 354 Actual return on plan assets, net of expenses 69 (19) 47 Company contributions 1 1 1 Benefits paid: Plan assets (15) (15) (14) Settlement — — (47) Fair value of plan assets, end of period 363 308 341 Funded status, end of period $ (1) $ (12) $ (13) Other liabilities recognized in the consolidated balance sheet $ (1) $ (12) $ (13) Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) $ 4 $ (3) $ 4 * Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million, $9 million and $10 million at December 31, 2019, 2018 and 2017, respectively. Defined benefit pension plan obligations in which the PBO was in excess of the related plan assets and the ABO was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2019 2018 Projected benefit obligation $ 364 $ 320 Accumulated benefit obligation 364 320 Fair value of plan assets 363 308 The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Pension Years Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 12 $ 11 $ 13 Expected return on assets (15) (18) (18) Settlement gain — — (2) Net periodic benefit cost (3) (7) (7) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (7) 7 (12) Amortization of net actuarial gain (loss) — — 2 Total recognized in other comprehensive income or loss (7) 7 (10) Total recognized in net periodic benefit cost and other comprehensive income $ (10) $ — $ (17) We have estimated the net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be immaterial for our combined defined benefit pension plans. Assumptions The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension December 31, 2019 2018 Projected benefit obligation: Discount rate 3.08 % 4.12 % Net periodic benefit costs: Discount rate 4.12 % 3.49 % Expected long-term rate of return on plan assets 5.03 % 5.27 % Discount Rate Methodology The projected benefit cash flows were discounted using the spot rates derived from the unadjusted FTSE Pension Discount Curve (formerly the Citigroup Pension Discount Curve) at December 31, 2019 and an equivalent weighted average discount rate was derived that resulted in the same liability. Investment Strategy The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. Allocation of Plan Assets The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans’ assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. At December 31, 2019, the actual asset allocation for the primary asset classes was 95% in fixed income securities, 4% in equity securities, and 1% in cash and cash equivalents. The 2020 target asset allocation for the primary asset classes is 94% in fixed income securities and 6% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. The expected long-term rate of return for the plans was 5.0% for the Springleaf Retirement Plan and 5.8% for the CommoLoCo Retirement Plan for 2019. The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2019 are as follows: (dollars in millions) Pension 2020 $ 16 2021 16 2022 16 2023 17 2024 17 2025-2029 89 FAIR VALUE MEASUREMENTS — PLAN ASSETS The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2019 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. 1 — — 1 International (a) 1 — — 1 Fixed income securities: U.S. investment grade (b) 49 290 — 339 U.S. high yield (c) — 5 — 5 Total $ 54 $ 295 $ — $ 349 Investments measured at NAV (d) 14 Total investments at fair value $ 363 December 31, 2018 Assets: Cash and cash equivalents $ 4 $ — $ — $ 4 Equity securities: U.S. (e) — 7 — 7 International (a) — 6 — 6 Fixed income securities: U.S. investment grade (b) — 287 — 287 U.S. high yield (c) — 4 — 4 Total $ 4 $ 304 $ — $ 308 (a) Includes investment mutual funds in companies in emerging and developed markets. (b) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (c) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. (d) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy. (e) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in small cap and large cap companies. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 18. Share-Based Compensation ONEMAIN HOLDINGS, INC. AMENDED AND RESTATED 2013 OMNIBUS INCENTIVE PLAN In 2013, OMH adopted the OneMain Holdings, Inc. Amended and Restated 2013 Omnibus Incentive Plan (the "Omnibus Plan"), which was effective as of May 25, 2016, under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. The amendment and restatement of the Omnibus Plan (i) extended the term of the Omnibus Plan from October 2023 to May 2026 and (ii) limited the number of cash-settled and equity-based awards under the Omnibus Plan valued at more than $500,000 to non-employee directors during the calendar year. As of December 31, 2019, 13,303,988 shares of common stock were reserved for issuance under the Omnibus Plan, including 659,628 shares subject to outstanding equity awards. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, RSUs, RSAs, stock appreciation rights, and other stock-based awards and cash awards. During 2019, OMH amended certain cash-settled and equity-based award agreements, to provide for the right to accrue cash dividend equivalents. Approximately 450 employees were affected by the amendments and the share-based compensation expense recognized as a result of amending the awards was immaterial during 2019. Total share-based compensation expense, net of forfeitures, for all equity-based awards totaled $13 million, $21 million, and $17 million during 2019, 2018, and 2017, respectively. The total income tax benefit recognized for stock-based compensation was $3 million in 2019 and $6 million in 2018 and 2017. As of December 31, 2019, there was total unrecognized compensation expense of $10 million related to unvested stock-based awards that are expected to be recognized over a weighted average period of one year. Service-based Awards In connection with the initial public offering on October 16, 2013 and subsequent to the offering, OMH has granted service-based RSUs and RSAs to certain of our non-employee directors, executives and employees. The RSUs are granted with varying service terms of one year to four years and do not provide the holders with any rights as shareholders, except with respect to dividend equivalents. As of December 31, 2019, OMH had no outstanding RSAs. The grant date fair value for RSUs and RSAs is generally the closing market price of OMH’s common stock on the date of the award. Expense for service-based awards is amortized on a straight-line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2019, 2018, and 2017 was $30.10, $31.55, and $27.85, respectively. The total fair value of service-based awards that vested during 2019, 2018, and 2017 was $12 million, $23 million, and $18 million, respectively. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2019: Number of Weighted Weighted Unvested as of January 1, 2019 694,592 $ 37.70 Granted 309,243 30.10 Vested (317,755) 37.55 Forfeited (217,066) 33.96 Unvested at December 31, 2019 469,014 34.52 1.01 Performance-based Awards During 2019, 2018 and 2017, OMH awarded certain executives performance-based awards that may be earned based on the financial performance of OMH. These awards are subject to the achievement of performance goals during a one three The fair value for all performance-based awards is based on the closing market price of OMH's stock on the date of the award. Expense for performance-based awards is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and canceled, and all expense recognized to that date is reversed. The weighted average grant date fair value of performance-based awards issued in 2019 was $31.86. The weighted average grant date fair value of performance-based awards issued in 2018 and 2017 was $24.98. The total fair value of performance-based awards that vested during 2019, 2018, and 2017 was $3 million, $3 million, and $2 million, respectively. The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2019: Number of Weighted Weighted Unvested as of January 1, 2019 143,734 $ 26.40 Granted 336,885 31.86 Vested (121,754) 27.60 Forfeited (168,251) 31.18 Unvested at December 31, 2019 190,614 31.05 2.18 Cash-settled Stock-based Awards OMH has granted cash-settled stock-based awards to certain of our executives. These awards are granted with vesting conditions relating to the trading price of OMH's common stock and the portion of OMH's common stock owned by stockholders other than the Apollo-Värde Group, and certain other terms and conditions. The awards provide for the right to accrue cash dividend equivalents. Upon achievement, these awards would be settled in cash. The grant date fair value of the cash-settled stock-based awards was zero because the satisfaction of the required event-based performance conditions were not considered probable as of the grant dates. Vesting of the cash-settled stock-based awards was not considered probable as of December 31, 2019. INCENTIVE UNITS SFH Incentive Units In connection with the sale of OMH's common stock by SFH in 2018, as described in Note 1 of the Notes to the Consolidated Financial Statements, certain of the specified thresholds were satisfied. In accordance with ASC 710, Compensation-General , we recorded non-cash incentive compensation expense of $106 million related to the Apollo-Värde Transaction and $4 million related to the AIG Share Sale Transaction with a capital contribution offset. Under both of these transactions, the impacts to the Company were non-cash, equity neutral, and not tax deductible. No expense was recognized for these awards during 2019 or 2017. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment Information At December 31, 2019, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of (i) our liquidating SpringCastle Portfolio servicing activity and (ii) our non-originating legacy operations, which include our liquidating real estate loans and liquidating retail sales finance receivables. Previously, the servicing revenues and related expenses from the SpringCastle Portfolio were presented as a distinct reporting and operating segment, Acquisitions and Servicing (“A&S”). However, due to the continued decline in servicing revenues and related expenses, management no longer views the servicing activity from the SpringCastle Portfolio as a separate reportable segment. Therefore, we are now including A&S in Other. We have revised our prior period segment disclosures to conform to this new alignment. The accounting policies of the C&I segment are the same as those disclosed in Note 3, except as described below. Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of C&I and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense and other expenses, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). We allocate revenues and expenses on a Segment Accounting Basis to the C&I segment and Other using the following methodologies: Interest income Directly correlated to C&I segment and Other. Interest expense C&I and Other - The Company has secured and unsecured debt. The Company first allocates interest expense to its C&I segment based on actual expense for secured debt. Interest expense for unsecured debt is recorded to the C&I segment using a weighted average interest rate applied to allocated average unsecured debt. Total average unsecured debt is allocated as follows: l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and l C&I - receives remainder of unallocated average debt. Provision for finance receivable losses Directly correlated to the C&I segment and Other. Other revenues Directly correlated to the C&I segment and Other. Other expenses Salaries and benefits - Directly correlated to C&I segment and Other. Other salaries and benefits not directly correlated with the C&I segment and Other are allocated based on services provided. Other operating expenses - Directly correlated to the C&I segment and Other. Other operating expenses not directly correlated to the C&I segment and Other are allocated based on services provided. Insurance policy benefits and claims - Directly correlated to the C&I segment. Acquisition-related transaction and integration expenses - Consist of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to C&I segment and Other based on services provided. The "Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets, including amortization of other historical deferred costs and the amortization of purchased software assets on a historical cost basis; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated At or for the Year Ended December 31, 2019 Interest income $ 4,114 $ 9 $ 4 $ 4,127 Interest expense 947 5 18 970 Provision for finance receivable losses 1,105 — 24 1,129 Net interest income after provision for finance receivable losses 2,062 4 (38) 2,028 Other revenues * 600 32 (10) 622 Other expenses 1,494 39 19 1,552 Income (loss) before income tax expense (benefit) $ 1,168 $ (3) $ (67) $ 1,098 Assets $ 20,705 $ 77 $ 2,035 $ 22,817 At or for the Year Ended December 31, 2018 Interest income $ 3,677 $ 17 $ (36) $ 3,658 Interest expense 844 17 14 875 Provision for finance receivable losses 1,047 (5) 6 1,048 Net interest income after provision for finance receivable losses 1,786 5 (56) 1,735 Other revenues * 495 27 52 574 Other expenses 1,494 163 28 1,685 Income (loss) before income tax expense (benefit) $ 787 $ (131) $ (32) $ 624 Assets $ 17,893 $ 120 $ 2,077 $ 20,090 At or for the December 31, 2017 Interest income $ 3,305 $ 23 $ (132) $ 3,196 Interest expense 765 21 30 816 Provision for finance receivable losses 963 7 (15) 955 Net interest income after provision for finance receivable losses 1,577 (5) (147) 1,425 Other revenues 547 45 (32) 560 Other expenses 1,448 80 26 1,554 Income (loss) before income tax expense (benefit) $ 676 $ (40) $ (205) $ 431 Assets $ 16,955 $ 293 $ 2,185 $ 19,433 * Other revenue in Other includes the gains on the February 2019 Real Estate Loan Sale and the December 2018 Real Estate Loan Sale as well as the impairment adjustments on the remaining loans in held for sale in 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 December 31, 2019 Assets Cash and cash equivalents $ 1,159 $ 68 $ — $ 1,227 $ 1,227 Investment securities 45 1,835 4 1,884 1,884 Net finance receivables, less allowance for finance receivable losses — — 19,319 19,319 17,560 Finance receivables held for sale — — 74 74 64 Restricted cash and restricted cash equivalents 405 — — 405 405 Other assets * — — 10 10 10 Liabilities Long-term debt $ — $ 18,509 $ — $ 18,509 $ 17,212 December 31, 2018 Assets Cash and cash equivalents $ 618 $ 61 $ — $ 679 $ 679 Investment securities 34 1,655 5 1,694 1,694 Net finance receivables, less allowance for finance receivable losses — — 16,734 16,734 15,433 Finance receivables held for sale — — 103 103 103 Restricted cash and restricted cash equivalents 499 — — 499 499 Other assets * — 1 15 16 16 Liabilities Long-term debt $ — $ 15,041 $ — $ 15,041 $ 15,178 * Other assets at December 31, 2019 and December 31, 2018 include miscellaneous receivables related to our liquidating loan portfolios. FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 * December 31, 2019 Assets Cash equivalents in mutual funds $ 775 $ — $ — $ 775 Cash equivalents in securities — 68 — 68 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 92 — 92 Commercial paper — 91 — 91 Non-U.S. government and government sponsored entities — 147 — 147 Corporate debt 5 1,093 — 1,098 RMBS — 217 — 217 CMBS — 57 — 57 CDO/ABS — 85 — 85 Total available-for-sale securities 5 1,793 — 1,798 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 23 1 24 RMBS — 1 — 1 CDO/ABS — 12 2 14 Total bonds — 37 3 40 Preferred stock 14 5 — 19 Common stock 26 — — 26 Other long-term investments — — 1 1 Total other securities 40 42 4 86 Total investment securities 45 1,835 4 1,884 Restricted cash in mutual funds 403 — — 403 Total $ 1,223 $ 1,903 $ 4 $ 3,130 * Due to the insignificant activity within the Level 3 assets during 2019, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 * December 31, 2018 Assets Cash equivalents in mutual funds $ 426 $ — $ — $ 426 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 $ 942 $ 1,716 $ 5 $ 2,663 * Due to the insignificant activity within the Level 3 assets during 2018, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. FAIR VALUE MEASUREMENTS — 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. Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2019 Assets Finance receivables held for sale $ — $ — $ 64 $ 64 $ 3 Real estate owned — — 6 6 3 At or for the Year Ended December 31, 2018 Assets Finance receivables held for sale $ — $ — $ 103 $ 103 $ 16 Real estate owned — — 6 6 3 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. We wrote down finance receivables held for sale to their fair value during 2019 and 2018 and recorded the impairment in other revenues. See Note 7 regarding the impairment losses recorded on the February 2019 and the December 2018 Real Estate Loan Sales. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. The inputs and quantitative data used in our Level 3 valuations for our real estate owned are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Valuation Technique(s) Unobservable Input Range Weighted Average Range Weighted Average Finance receivables held for sale Income approach Discount Rate 4.17% - 8.50% 6.36 % 4.23% - 8.00% 5.72 % Default Rate 15.00% - 65.00% 36.36 % 13.50% - 70.00% 43.13 % Real estate owned Market approach Third Party Valuation * * * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS We use the following methods and assumptions to estimate fair value. Cash and Cash Equivalents Cash equivalents in mutual funds include positions in money market funds with weighted average maturity of less than 90 days. Money market funds are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are categorized as Level 1 within the fair value table. Cash equivalents in securities includes highly liquid investments with a maturity of less than 90 days at purchase. The carrying amount of these cash equivalents approximates fair value due to the short time between the purchase and expected maturity of these securities. Cash equivalents in securities are categorized as Level 2 within the fair value table. Investment Securities We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value. Finance Receivables The fair value of net finance receivables, less allowance for finance receivable losses, for both non-impaired and purchased credit impaired finance receivables, is determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. Finance Receivables Held for Sale We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Restricted Cash and Restricted Cash Equivalents The carrying amount of restricted cash and restricted cash equivalents approximates fair value. Real Estate Owned We initially base our estimate of the fair value on independent third-party valuations at the time we take title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset. Long-term Debt We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt. We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2019, we had no debt carried at fair value under the fair value option. We estimate the fair values associated with variable rate revolving lines of credit to be equal to par. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 21. Selected Quarterly Financial Data (Unaudited) OMH's selected quarterly financial data for 2019 was as follows: (dollars in millions, except per share amounts) Fourth Third Second First Interest income $ 1,107 $ 1,065 $ 1,000 $ 956 Interest expense 252 244 238 236 Provision for finance receivable losses 293 282 268 286 Net interest income after provision 562 539 494 434 Other revenues 162 156 156 148 Other expenses 380 398 394 380 Income before income taxes 344 297 256 202 Income taxes 83 49 62 50 Net income $ 261 $ 248 $ 194 $ 152 Earnings per share: Basic $ 1.92 $ 1.82 $ 1.43 $ 1.12 Diluted 1.91 1.82 1.42 1.11 Note: Year-to-Date may not sum due to rounding OMH's selected quarterly financial data for 2018 was as follows: (dollars in millions, except per share amounts) Fourth Third Second First Interest income $ 958 $ 933 $ 905 $ 862 Interest expense 229 227 220 200 Provision for finance receivable losses 278 256 260 254 Net interest income after provision 451 450 425 408 Other revenues 153 144 140 137 Other expenses 390 395 522 377 Income before income taxes 214 199 43 168 Income taxes 46 51 36 44 Net income $ 168 $ 148 $ 7 $ 124 Earnings per share: Basic $ 1.24 $ 1.09 $ 0.05 $ 0.91 Diluted 1.24 1.09 0.05 0.91 Note: Year-to-Date may not sum due to rounding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America ("GAAP"). The statements include the accounts of OMH, its subsidiaries (all of which are wholly-owned), and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. |
Operating Segment | Operating Segment At December 31, 2019, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of (i) our liquidating SpringCastle Portfolio servicing activity and (ii) our non-originating legacy operations, which include our liquidating real estate loans and liquidating retail sales finance receivables. Previously, the servicing revenues and related expenses from the SpringCastle Portfolio were presented as a distinct reporting and operating segment, Acquisitions and Servicing (“A&S”). However, due to the continued decline in servicing revenues and related expenses, management no longer views the servicing activity from the SpringCastle Portfolio as a separate reportable segment. Therefore, we are now including A&S in Other. We have revised our prior period segment disclosures to conform to this new alignment. |
Finance Receivables and Finance Receivable Revenue Recognition | Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when four payments (approximately 90 days) become contractually past due for personal loans. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time, we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our purchased finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. |
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the effective interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, defer or forgive past due interest or forgive principal. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivables (personal loans and other receivables) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • underlying collateral; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by contractual delinquency stages and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency, underlying collateral, recoverability of collateral securing our finance receivables, other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond seven payments (approximately 180 days) past due. Generally, we start repossession of the titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge-off prior to the account becoming seven payments (approximately 180 days) past due. We infrequently extend the charge-off period for individual personal loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account must be current after granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve Accounts that are granted a deferment are not classified as TDRs. We do not consider deferments granted as a TDR because the customer is not experiencing an other than temporary financial difficulty, and the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions to estimate these expected cash flows are prepayment speeds, default rates, and severity rates. |
Finance Receivables Held for Sale | Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. |
Goodwill | Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and whenever events occur or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the quantitative impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. |
Intangible Assets other than Goodwill | Intangible Assets other than Goodwill At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. The value of business acquired ("VOBA") is the present value of future profits ("PVFP") of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with ASC 944, Financial Services — Insurance . For indefinite-lived intangible assets, we review for impairment at least annually and whenever events occur or circumstances change that would indicate the assets are more likely than not to be impaired. We first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. |
Leases | Leases All our leases are classified as operating leases, and we are the lessee or sublessor in all our lease arrangements. At inception of an arrangement, we determine if a lease exists. At lease commencement date, we recognize right-of-use assets and lease liabilities measured at the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Since our operating leases do not provide an implicit rate, we utilize the best available information to determine our incremental borrowing rate, which is used to calculate the present value of lease payments. The right-of-use asset also includes any prepaid fixed lease payments and excludes lease incentives. Options to extend or terminate a lease may be included in our lease arrangements. We reflect the renewal or termination option in the right-of-use asset and lease liability when it is reasonably certain that we will exercise those options. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. We have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component. Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in “Other operating expenses” in our consolidated statement of operations. In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments. The operating lease right-of-use assets are included in “Other assets” and the operating lease liabilities are included in “Other liabilities” in our consolidated balance sheet. |
Insurance Premiums | Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on optional products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Policy and Claim Reserves | Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. |
Insurance Policy Acquisition Costs | Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. |
Investment Securities | Investment Securities We generally classify our investment securities as available-for-sale or other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. |
Impairments on Investment Securities | Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. |
Investment Revenue Recognition | Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues. |
Variable Interest Entities | Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Long-term Debt | Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. |
Income Taxes | Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely than not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. |
Retirement Benefit Plans | Retirement Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plan, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) Plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the marketplace used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 20. In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
Earnings Per Share (OMH Only) | Earnings Per Share (OMH Only) Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested restricted stock units and awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in accumulated other comprehensive income (loss) on the consolidated balance sheets. |
Accounting Pronouncements Recently Adopted and 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, using the optional transition approach. As a result of this election, the prior periods presented have not been adjusted. See Note 16 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 are 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. The new approach requires 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. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the growth of the Company’s loan portfolio, mix of secured and unsecured loans, credit quality, 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 is effective for the Company beginning January 1, 2020. The Company’s cross-functional implementation team has completed the implementation of this ASU. Based on the December 31, 2019 loan portfolio and current expectations of future economic conditions, this ASU resulted in an increase to the allowance for finance receivable losses of $1.12 billion, an increase to deferred tax assets of $0.28 billion, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $0.83 billion in the consolidated balance sheets at January 1, 2020. In addition, the Company’s implementation team worked 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. The adoption of this ASU, as it relates to available-for-sale debt securities, will not have a material impact on the consolidated financial statements. 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 the Company beginning January 1, 2022, as a result of the FASB issuing a one-year deferral of this ASU for public companies. 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, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Reconciliation of Results of _2
Reconciliation of Results of Springleaf Finance Corporation to OneMain Holdings, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Reconciliation of consolidated balance sheets and results of consolidated statements of operations of SFC to OMH | In addition to certain intercompany payable and receivable amounts between the entities, the following is a reconciliation of the consolidated balance sheets and results of our consolidated statements of operations of SFC to OMH: December 31, 2019 2018 (dollars in millions) OMH SFC Difference OMH SFC Difference Cash and cash equivalents $ 1,227 $ 1,227 $ — $ 679 $ 663 $ 16 Net finance receivables (a) 18,389 18,389 — 16,164 16,122 42 Allowance for finance receivable losses (a) (829) (829) — (731) (726) (5) Notes receivables from parent (b) — — — — 260 (260) Other intangible assets 343 343 — 388 387 1 Other assets 705 704 1 534 547 (13) Deferred and accrued taxes 34 35 (1) 45 42 3 Other liabilities 592 595 (3) 383 383 — Total shareholders' equity (c) 4,330 4,325 5 3,799 4,021 (222) Years Ended December 31, 2019 2018 2017 (dollars in millions) OMH SFC Difference OMH SFC Difference OMH SFC Difference Finance charges (a) $ 4,116 $ 4,116 $ — $ 3,645 $ 3,635 $ 10 $ 3,183 $ 3,174 $ 9 Interest expense 970 972 (2) 875 876 (1) 816 816 — Provision for finance receivable losses (a) 1,129 1,129 — 1,048 1,043 5 955 947 8 Interest income on note receivables from parent (b) — 7 (7) — 18 (18) — 23 (23) Other revenue (d) 99 99 — 70 38 32 96 53 43 Salaries and benefits 808 808 — 917 877 40 777 750 27 Other operating expenses 559 558 1 576 577 (1) 593 635 (42) Income before income taxes 1,098 1,104 (6) 624 643 (19) 431 395 36 Income taxes 243 246 (3) 177 182 (5) 248 243 5 Net Income 855 858 (3) 447 461 (14) 183 152 31 (a) The differences in the 2018 and 2017 periods are related to Springleaf Consumer Loan Holding Company (“SCLH”) finance receivables and the related allowance for finance receivable losses. 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. See below for further details related to the Contribution of SCLH to SFC. (b) Included in the notes receivables from parent were notes from SFI held by SFC and Springleaf Mortgage Holding Company’s (“SMHC”), a wholly-owned direct subsidiary, of SFC. See Note 1 and below for further discussion of the merger between SFI and SFC. (c) The differences between total shareholders’ equity in the years ended December 31, 2019 and 2018 were due to historical differences in results of operations of the companies and differences in equity awards. (d) The primary difference between OMH and SFC for other revenue relate to the servicing revenue from the SpringCastle Portfolio. The servicing fee revenue totaled $29 million and $37 million during 2018 and 2017 periods, respectively. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of our personal loans were as follows: (dollars in millions) December 31, 2019 2018 Gross receivables * $ 18,195 $ 15,978 Unearned points and fees (242) (201) Accrued finance charges 289 253 Deferred origination costs 147 134 Total $ 18,389 $ 16,164 * 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 |
Schedule of the largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: December 31, 2019 2018 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,606 9 % $ 1,446 9 % North Carolina 1,217 7 1,178 7 California 1,193 6 994 6 Pennsylvania 1,097 6 945 6 Florida 1,025 6 832 5 Ohio 913 5 791 5 Illinois 787 4 700 4 Georgia 748 4 650 4 Indiana 741 4 653 4 Virginia 710 4 651 4 Tennessee 602 3 547 3 Other 7,750 42 6,777 43 Total $ 18,389 100 % $ 16,164 100 % * December 31, 2018 concentrations of net finance receivables are presented in the order of December 31, 2019 state concentrations. |
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) December 31, 2019 2018 Performing Current $ 17,550 $ 15,411 30-59 days past due 272 229 60-89 days past due 181 161 Total performing 18,003 15,801 Nonperforming 90-179 days past due 377 355 180 days or more past due 9 8 Total nonperforming 386 363 Total $ 18,389 $ 16,164 |
Schedule of purchased credit impaired finance receivables held for investment | Information regarding our purchased credit impaired finance receivables were as follows: (dollars in millions) December 31, 2019 2018 Personal Loans Carrying amount, net of allowance $ 40 $ 89 Outstanding balance (a) 74 135 Allowance for purchased credit impaired finance receivable losses (b) — — Real Estate Loans - Held for Sale Carrying amount $ 19 $ 28 Outstanding balance (a) 35 48 (a) Outstanding balance is defined as UPB of the loans with a net carrying amount. |
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: (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans Balance at beginning of period $ 39 $ 47 $ 59 Accretion (20) (27) (34) Reclassifications from nonaccretable difference * 16 19 22 Balance at end of period $ 35 $ 39 $ 47 Real Estate Loans - Held for Sale Balance at beginning of period $ 27 $ 53 $ 60 Accretion (2) (4) (5) Reclassifications to nonaccretable difference * — — (2) Transfer due to finance receivables sold (3) (22) — Balance at end of period $ 22 $ 27 $ 53 * Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) December 31, 2019 2018 Personal Loans TDR gross receivables (a) $ 655 $ 450 TDR net receivables (b) 658 453 Allowance for TDR finance receivable losses 272 170 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 52 $ 89 TDR net receivables (b) 53 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 Other Receivables * Total Year Ended December 31, 2019 TDR average net receivables $ 550 $ 58 $ 608 TDR finance charges recognized 45 3 48 Year Ended December 31, 2018 TDR average net receivables $ 383 $ 130 $ 513 TDR finance charges recognized 45 7 52 Year Ended December 31, 2017 TDR average net receivables $ 231 $ 140 $ 371 TDR finance charges recognized 33 9 42 * Other receivables held for sale included in the table above consist of real estate loans and were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 TDR average net receivables $ 58 $ 98 $ 91 TDR finance charges recognized 3 5 6 |
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: (dollars in millions) Years Ended December 31, 2019 2018 2017 TDR average net receivables $ 58 $ 98 $ 91 TDR finance charges recognized 3 5 6 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables held for investment and held for sale are reflected in the following table. (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans Pre-modification TDR net finance receivables $ 536 $ 377 $ 327 Post-modification TDR net finance receivables: Rate reduction 370 289 251 Other (a) 166 88 75 Total post-modification TDR net finance receivables $ 536 $ 377 $ 326 Number of TDR accounts 78,257 57,324 45,560 Other Receivables (b) Pre-modification TDR net finance receivables $ 1 $ 3 $ 16 Post-modification TDR net finance receivables: Rate reduction 1 3 16 Other — — — Total post-modification TDR net finance receivables $ 1 $ 3 $ 16 Number of TDR accounts 8 70 510 (a) “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. (dollars in millions) Years Ended December 31, 2019 2018 2017 Personal Loans TDR net finance receivables * $ 96 $ 64 $ 89 Number of TDR accounts 14,732 9,719 15,035 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva_2
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 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 Total Year Ended December 31, 2019 Balance at beginning of period $ 731 $ — $ 731 Provision for finance receivable losses 1,129 — 1,129 Charge-offs (1,157) — (1,157) Recoveries 126 — 126 Balance at end of period $ 829 $ — $ 829 Year Ended December 31, 2018 Balance at beginning of period $ 673 $ 24 $ 697 Provision for finance receivable losses 1,050 (2) 1,048 Charge-offs (1,102) (2) (1,104) Recoveries 110 3 113 Other * — (23) (23) Balance at end of period $ 731 $ — $ 731 Year Ended December 31, 2017 Balance at beginning of period $ 669 $ 20 $ 689 Provision for finance receivable losses 949 6 955 Charge-offs (1,048) (6) (1,054) Recoveries 103 4 107 Balance at end of period $ 673 $ 24 $ 697 * Other consists primarily of the reclassification of allowance for finance receivable losses due to the transfer of the real estate loans in other receivables from held for investment to finance receivables held for sale on September 30, 2018. See Notes 5 and 7 included in this report for further information. |
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) December 31, 2019 2018 Allowance for finance receivable losses: Collectively evaluated for impairment $ 557 $ 561 Purchased credit impaired finance receivables — — TDR finance receivables 272 170 Total $ 829 $ 731 Finance receivables: Collectively evaluated for impairment $ 17,691 $ 15,622 Purchased credit impaired finance receivables 40 89 TDR finance receivables 658 453 Total $ 18,389 $ 16,164 Allowance for finance receivable losses as a percentage of finance receivables 4.51 % 4.52 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair December 31, 2019 Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 91 2 (1) 92 Commercial paper 91 — — 91 Non-U.S. government and government sponsored entities 144 3 — 147 Corporate debt 1,054 45 (1) 1,098 Mortgage-backed, asset-backed, and collateralized: RMBS 214 3 — 217 CMBS 56 1 — 57 CDO/ABS 84 1 — 85 Total $ 1,745 $ 55 $ (2) $ 1,798 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 Unrealized Fair Unrealized Fair Unrealized December 31, 2019 U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions 29 (1) 4 — 33 (1) Commercial paper 76 — — — 76 — Non-U.S. government and government sponsored entities 19 — 14 — 33 — Corporate debt 63 (1) 13 — 76 (1) Mortgage-backed, asset-backed, and collateralized: RMBS 45 — — — 45 — CMBS 15 — 7 — 22 — CDO/ABS 14 — — — 14 — Total $ 261 $ (2) $ 41 $ — $ 302 $ (2) 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 December 31, 2019 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 226 $ 225 Due after 1 year through 5 years 559 546 Due after 5 years through 10 years 481 457 Due after 10 years 173 163 Mortgage-backed, asset-backed, and collateralized securities 359 354 Total $ 1,798 $ 1,745 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) December 31, 2019 2018 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 24 43 Mortgage-backed, asset-backed, and collateralized bonds 15 2 Total bonds 40 46 Preferred stock * 19 19 Common stock * 26 21 Other long-term investments 1 1 Total $ 86 $ 87 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross carrying amount and accumulated amortization of finite-lived intangible assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2019 Customer relationships $ 223 $ (160) $ 63 Trade names 220 — 220 VOBA 105 (71) 34 Licenses 25 — 25 Other 13 (12) 1 Total $ 586 $ (243) $ 343 December 31, 2018 Customer relationships $ 223 $ (126) $ 97 Trade names 220 — 220 VOBA 141 (99) 42 Licenses 28 — 28 Other 13 (12) 1 Total $ 625 $ (237) $ 388 |
Gross carrying amount of indefinite-lived intangible assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2019 Customer relationships $ 223 $ (160) $ 63 Trade names 220 — 220 VOBA 105 (71) 34 Licenses 25 — 25 Other 13 (12) 1 Total $ 586 $ (243) $ 343 December 31, 2018 Customer relationships $ 223 $ (126) $ 97 Trade names 220 — 220 VOBA 141 (99) 42 Licenses 28 — 28 Other 13 (12) 1 Total $ 625 $ (237) $ 388 |
Estimated aggregate amortization of other intangible assets | The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2020 $ 37 2021 32 2022 3 2023 3 2024 3 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of carrying value and fair value of long-term debt | Carrying value and fair value of long-term debt by type were as follows: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Fair Carrying Fair Senior debt $ 17,040 $ 18,332 $ 15,006 $ 14,868 Junior subordinated debt 172 177 172 173 Total $ 17,212 $ 18,509 $ 15,178 $ 15,041 The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 December 31, 2019 Assets Cash and cash equivalents $ 1,159 $ 68 $ — $ 1,227 $ 1,227 Investment securities 45 1,835 4 1,884 1,884 Net finance receivables, less allowance for finance receivable losses — — 19,319 19,319 17,560 Finance receivables held for sale — — 74 74 64 Restricted cash and restricted cash equivalents 405 — — 405 405 Other assets * — — 10 10 10 Liabilities Long-term debt $ — $ 18,509 $ — $ 18,509 $ 17,212 December 31, 2018 Assets Cash and cash equivalents $ 618 $ 61 $ — $ 679 $ 679 Investment securities 34 1,655 5 1,694 1,694 Net finance receivables, less allowance for finance receivable losses — — 16,734 16,734 15,433 Finance receivables held for sale — — 103 103 103 Restricted cash and restricted cash equivalents 499 — — 499 499 Other assets * — 1 15 16 16 Liabilities Long-term debt $ — $ 15,041 $ — $ 15,041 $ 15,178 * Other assets at December 31, 2019 and December 31, 2018 include miscellaneous receivables related to our liquidating loan portfolios. |
Schedule of weighted average effective interest rates on long-term debt | Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2019 2018 2017 2019 2018 Senior debt 5.90 % 5.64 % 5.73 % 5.85 % 5.89 % Junior subordinated debt 8.68 8.13 6.41 7.65 8.56 Total 5.93 5.66 5.74 5.87 5.92 |
Schedule of principal maturities of 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 December 31, 2019 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 2.31%-6.94% 5.38%-8.25% 3.74 % 2020 $ — $ 1,000 $ — $ 1,000 2021 — 646 — 646 2022 — 1,000 — 1,000 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025-2067 — 4,399 350 4,749 Securitizations (c) 7,678 — — 7,678 Total principal maturities $ 7,678 $ 9,520 $ 350 $ 17,548 Total carrying amount $ 7,643 $ 9,397 $ 172 $ 17,212 Debt issuance costs (d) (30) (85) — (115) (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 December 31, 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 3.74% as of December 31, 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 December 31, 2019, there were no amounts drawn under our revolving conduit facilities. See Note 11 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 December 31, 2019 and are reported in “Other assets.” |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2019 2018 Assets Cash and cash equivalents $ 4 $ 2 Finance receivables - Personal loans 8,428 8,480 Allowance for finance receivable losses 340 444 Restricted cash and restricted cash equivalents 400 479 Other assets 29 26 Liabilities Long-term debt $ 7,643 $ 7,510 Other liabilities 15 14 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of unearned insurance premium reserves, claim reserves and benefit reserves | Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2019 2018 Finance receivable related: Payable to OMH: Unearned premium reserves $ 712 $ 583 Claim reserves 81 79 Subtotal (a) 793 662 Payable to third-party beneficiaries: Unearned premium reserves 121 100 Benefit reserves 107 106 Claim reserves 18 17 Subtotal (b) 246 223 Non-finance receivable related: Unearned premium reserves 74 77 Benefit reserves 311 364 Claim reserves 18 21 Subtotal (b) 403 462 Total $ 1,442 $ 1,347 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. |
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): (dollars in millions) At or for the Years Ended December 31, 2019 2018 2017 Balance at beginning of period $ 117 $ 154 $ 158 Less reinsurance recoverables (4) (23) (26) Net balance at beginning of period 113 131 132 Additions for losses and loss adjustment expenses incurred to: Current year 200 199 188 Prior years * (15) (10) 5 Total 185 189 193 Reductions for losses and loss adjustment expenses paid related to: Current year (121) (118) (115) Prior years (64) (69) (78) Total (185) (187) (193) Foreign currency translation adjustment — (1) (1) Net balance at end of period 113 132 131 Plus reinsurance recoverables 4 4 23 Less transfer of reserves — (19) — Balance at end of period $ 117 $ 117 $ 154 * Reflects (i) a redundancy in the prior years’ net reserves of $15 million at December 31, 2019, primarily due to favorable development of credit life, disability, and unemployment claims during the year, (ii) a redundancy in the prior years’ net reserves of $10 million at December 31, 2018, primarily due to a favorable development of credit life, disability, and unemployment claims during the year, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017, primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies. |
Schedule of claims and allocated claim adjustment expense, net of reinsurance | Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2019, were as follows: Years Ended December 31, At December 31, 2019 (dollars in millions) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 Incurred-but- Cumulative Number of Reported Claims Cumulative Credit Insurance Accident Year 2015 $ 138 $ 129 $ 129 $ 126 $ 125 $ — 52,555 2.8 % 2016 — 138 135 133 131 2 51,654 2.8 % 2017 — — 136 129 125 7 44,341 2.4 % 2018 — — — 145 134 19 41,487 2.1 % 2019 — — — — 152 67 35,825 1.9 % Total $ 667 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2019, were as follows: Years Ended December 31, (dollars in millions) 2015 * 2016 * 2017* 2018* 2019 Credit Insurance Accident Year 2015 $ 68 $ 106 $ 117 $ 123 $ 125 2016 — 74 113 124 129 2017 — — 75 108 117 2018 — — — 81 114 2019 — — — — 86 Total $ 571 All outstanding liabilities before 2015, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 96 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2019 2018* 2017* Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 96 $ 94 $ 90 Other short-duration insurance lines 3 2 22 Total 99 96 112 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines — — 20 Insurance lines other than short-duration 18 21 22 Total gross liability for unpaid claims and claim adjustment expense $ 117 $ 117 $ 154 * Unaudited. |
Schedule of average annual percentage payout of incurred claims by age, net of reinsurance | Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2019, were as follows: Years 1 2 3 4 5 Credit insurance 57.4 % 27.9 % 8.3 % 4.4 % 1.4 % |
Schedule of statutory net income (loss) for insurance companies | Statutory net income for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Property and casualty: Yosemite $ — $ — $ 19 Triton 16 18 31 Life and health: Merit $ — $ 53 $ 37 AHL 56 32 34 |
Schedule of statutory capital and surplus for insurance companies | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2019 2018 Property and casualty: Triton $ 144 $ 113 Life and health: Merit $ — $ 94 AHL 192 129 |
Schedule of extraordinary dividends paid | Extraordinary dividends paid were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 AHL $ — $ — $ 111 Triton — 70 — Merit 140 — 90 Yosemite — 42 35 |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2019 were as follows: OMH SFC Preferred Stock * Common Stock Special Stock Common Stock Par value $ 0.01 $ 0.01 $ — $ 0.50 Shares authorized 300,000,000 2,000,000,000 25,000,000 25,000,000 * No shares of OMH preferred stock or SFC special stock were issued and outstanding at December 31, 2019 or 2018. |
Schedule of changes in shares issued and outstanding | Changes in OMH shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2019 2018 2017 Balance at beginning of period 135,832,278 135,349,638 134,867,868 Common shares issued 268,878 482,640 481,770 Balance at end of period 136,101,156 135,832,278 135,349,638 SFC shares issued and outstanding were as follows: Special Stock Common Stock 2019 2018 2019 2018 Shares issued and outstanding — — 10,160,021 10,160,021 |
Computation of earnings per share | The computation of earnings per share was as follows: (dollars in millions, except per share data) Years Ended December 31, 2019 2018 2017 Numerator (basic and diluted): Net income $ 855 $ 447 $ 183 Denominator: Weighted average number of shares outstanding (basic) 136,070,837 135,702,989 135,249,314 Effect of dilutive securities * 256,074 331,154 429,677 Weighted average number of shares outstanding (diluted) 136,326,911 136,034,143 135,678,991 Earnings per share: Basic $ 6.28 $ 3.29 $ 1.35 Diluted $ 6.27 $ 3.29 $ 1.35 * We have excluded the following shares in the diluted earnings per share calculation for 2019, 2018, and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Years Ended December 31, 2019 2018 2017 Performance-based shares 173,944 40,593 59,863 Service-based shares 97,011 246,913 674,472 |
Anti-dilutive securities excluded from computation of earnings per share | We have excluded the following shares in the diluted earnings per share calculation for 2019, 2018, and 2017 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: Years Ended December 31, 2019 2018 2017 Performance-based shares 173,944 40,593 59,863 Service-based shares 97,011 246,913 674,472 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes, net of tax, in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Total Year Ended December 31, 2019 Balance at beginning of period $ (28) $ (3) $ (3) $ (34) Other comprehensive income before reclassifications 68 6 3 77 Reclassification adjustments from accumulated other 1 — — 1 Balance at end of period $ 41 $ 3 $ — $ 44 Year Ended December 31, 2018 Balance at beginning of period $ 4 $ 4 $ 3 $ 11 Other comprehensive loss before reclassifications (35) (4) (9) (48) Reclassification adjustments from accumulated other comprehensive income 1 — — 1 Impact of AOCI reclassification due to the Tax Act 2 (3) 3 2 Balance at end of period $ (28) $ (3) $ (3) $ (34) Year Ended December 31, 2017 Balance at beginning of period $ (1) $ (4) $ (1) $ (6) Other comprehensive income before reclassifications 14 9 4 27 Reclassification adjustments from accumulated other comprehensive loss (9) (1) — (10) Balance at end of period $ 4 $ 4 $ 3 $ 11 |
Reclassification adjustments from accumulated other comprehensive income (loss) | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Unrealized gains (losses) on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ (1) $ (2) $ 14 Income tax effect — 1 (5) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes (1) (1) 9 Unrealized gains (losses) on retirement plan liabilities: Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, before taxes $ — $ — $ 2 Income tax effect — — (1) Reclassification from accumulated other comprehensive income (loss) to retirement plan liabilities adjustments, net of taxes — — 1 Total $ (1) $ (1) $ 10 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income before income tax expense | Components of income before income tax expense were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Income before income tax expense - U.S. operations $ 1,082 $ 610 $ 416 Income before income tax expense - foreign operations 16 14 15 Total $ 1,098 $ 624 $ 431 |
Schedule of components of income tax expense (benefit) | Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Current: Federal $ 205 $ 131 $ 208 Foreign 3 3 2 State 34 20 8 Total current 242 154 218 Deferred: Federal 15 15 18 State (14) 8 12 Total deferred 1 23 30 Total $ 243 $ 177 $ 248 |
Reconciliations of the statutory federal income tax rate to the effective income tax rate | OMH's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.00 % 21.00 % 35.00 % State income taxes, net of federal 3.49 3.65 2.86 Change in valuation allowance (2.07) — — Nondeductible compensation 0.13 3.85 — Excess tax expense on share-based compensation 0.04 0.02 0.41 Impact of Tax Act — — 18.65 Other, net (0.43) (0.15) 0.55 Effective income tax rate 22.16 % 28.37 % 57.47 % SFC's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.00 % 21.00 % 35.00 % State income taxes, net of federal 3.49 3.68 2.63 Change in valuation allowance (2.06) — — Nondeductible compensation 0.13 3.73 — Excess tax expense on share-based compensation 0.04 0.02 0.33 Return to provision adjustment 0.08 — 0.81 Impact of Tax Act — — 21.69 Other, net (0.41) (0.08) 1.09 Effective income tax rate 22.27 % 28.35 % 61.55 % |
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 17 $ 15 $ 16 Increases in tax positions for current years 2 — 1 Increases in tax positions for prior years 2 8 — Lapse in statute of limitations (3) (6) (2) Settlements with tax authorities (6) — — Balance at end of year $ 12 $ 17 $ 15 |
Components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2019 2018* Deferred tax assets: Allowance for loan losses $ 210 $ 191 Net operating losses and tax credits 33 36 Insurance reserves 31 8 Pension/employee benefits 16 22 Mark-to-market 10 35 Tax interest adjustment 7 19 Acquisition costs 6 7 Fair value of equity and securities investments — 8 Other 9 15 Total $ 322 $ 341 Deferred tax liabilities: Goodwill $ 97 $ 75 Debt fair value adjustment 52 56 Deferred loan fees 19 21 Fair value of equity and securities investments 12 — Fixed assets 8 8 Discount - debt exchange 5 9 Other 4 2 Total $ 197 $ 171 Net deferred tax assets before valuation allowance $ 125 $ 170 Valuation allowance (21) (41) Net deferred tax assets $ 104 $ 129 * To conform to the 2019 presentation, we reclassified certain items in the prior period. |
Leases and Contingencies (Table
Leases and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of lease liabilities | At December 31, 2019, maturities of lease liabilities, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Operating Leases 2020 $ 62 2021 52 2022 39 2023 23 2024 13 Thereafter 11 Total lease payments 200 Imputed interest (24) Total $ 176 |
Weighted average remaining lease term and discount rate | Weighted Average Remaining Lease Term 3.8 years Weighted Average Discount Rate 3.78 % |
Annual rental commitments for leases accounted for as 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 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Funded status of the defined benefit pension plans | The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. (dollars in millions) Pension * At or for the Years Ended December 31, 2019 2018 2017 Projected benefit obligation, beginning of period $ 320 $ 354 $ 385 Interest cost 12 11 13 Actuarial loss (gain) 47 (30) 17 Benefits paid: Plan assets (15) (15) (14) Settlement — — (47) Projected benefit obligation, end of period 364 320 354 Fair value of plan assets, beginning of period 308 341 354 Actual return on plan assets, net of expenses 69 (19) 47 Company contributions 1 1 1 Benefits paid: Plan assets (15) (15) (14) Settlement — — (47) Fair value of plan assets, end of period 363 308 341 Funded status, end of period $ (1) $ (12) $ (13) Other liabilities recognized in the consolidated balance sheet $ (1) $ (12) $ (13) Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) $ 4 $ (3) $ 4 * Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million, $9 million and $10 million at December 31, 2019, 2018 and 2017, respectively. |
Schedule of PBO and ABO exceeding fair value of plan assets | Defined benefit pension plan obligations in which the PBO was in excess of the related plan assets and the ABO was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2019 2018 Projected benefit obligation $ 364 $ 320 Accumulated benefit obligation 364 320 Fair value of plan assets 363 308 |
Components of net periodic benefit cost | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans: (dollars in millions) Pension Years Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 12 $ 11 $ 13 Expected return on assets (15) (18) (18) Settlement gain — — (2) Net periodic benefit cost (3) (7) (7) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (7) 7 (12) Amortization of net actuarial gain (loss) — — 2 Total recognized in other comprehensive income or loss (7) 7 (10) Total recognized in net periodic benefit cost and other comprehensive income $ (10) $ — $ (17) |
Summary of weighted average assumptions | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension December 31, 2019 2018 Projected benefit obligation: Discount rate 3.08 % 4.12 % Net periodic benefit costs: Discount rate 4.12 % 3.49 % Expected long-term rate of return on plan assets 5.03 % 5.27 % |
Expected future benefit payments | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2019 are as follows: (dollars in millions) Pension 2020 $ 16 2021 16 2022 16 2023 17 2024 17 2025-2029 89 |
Information about plan assets measured at fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2019 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. 1 — — 1 International (a) 1 — — 1 Fixed income securities: U.S. investment grade (b) 49 290 — 339 U.S. high yield (c) — 5 — 5 Total $ 54 $ 295 $ — $ 349 Investments measured at NAV (d) 14 Total investments at fair value $ 363 December 31, 2018 Assets: Cash and cash equivalents $ 4 $ — $ — $ 4 Equity securities: U.S. (e) — 7 — 7 International (a) — 6 — 6 Fixed income securities: U.S. investment grade (b) — 287 — 287 U.S. high yield (c) — 4 — 4 Total $ 4 $ 304 $ — $ 308 (a) Includes investment mutual funds in companies in emerging and developed markets. (b) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (c) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. (d) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy. (e) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in small cap and large cap companies. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of service-based stock activity | The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2019: Number of Weighted Weighted Unvested as of January 1, 2019 694,592 $ 37.70 Granted 309,243 30.10 Vested (317,755) 37.55 Forfeited (217,066) 33.96 Unvested at December 31, 2019 469,014 34.52 1.01 |
Summary of performance-based stock activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2019: Number of Weighted Weighted Unvested as of January 1, 2019 143,734 $ 26.40 Granted 336,885 31.86 Vested (121,754) 27.60 Forfeited (168,251) 31.18 Unvested at December 31, 2019 190,614 31.05 2.18 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information about the Company's segments | The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated At or for the Year Ended December 31, 2019 Interest income $ 4,114 $ 9 $ 4 $ 4,127 Interest expense 947 5 18 970 Provision for finance receivable losses 1,105 — 24 1,129 Net interest income after provision for finance receivable losses 2,062 4 (38) 2,028 Other revenues * 600 32 (10) 622 Other expenses 1,494 39 19 1,552 Income (loss) before income tax expense (benefit) $ 1,168 $ (3) $ (67) $ 1,098 Assets $ 20,705 $ 77 $ 2,035 $ 22,817 At or for the Year Ended December 31, 2018 Interest income $ 3,677 $ 17 $ (36) $ 3,658 Interest expense 844 17 14 875 Provision for finance receivable losses 1,047 (5) 6 1,048 Net interest income after provision for finance receivable losses 1,786 5 (56) 1,735 Other revenues * 495 27 52 574 Other expenses 1,494 163 28 1,685 Income (loss) before income tax expense (benefit) $ 787 $ (131) $ (32) $ 624 Assets $ 17,893 $ 120 $ 2,077 $ 20,090 At or for the December 31, 2017 Interest income $ 3,305 $ 23 $ (132) $ 3,196 Interest expense 765 21 30 816 Provision for finance receivable losses 963 7 (15) 955 Net interest income after provision for finance receivable losses 1,577 (5) (147) 1,425 Other revenues 547 45 (32) 560 Other expenses 1,448 80 26 1,554 Income (loss) before income tax expense (benefit) $ 676 $ (40) $ (205) $ 431 Assets $ 16,955 $ 293 $ 2,185 $ 19,433 * Other revenue in Other includes the gains on the February 2019 Real Estate Loan Sale and the December 2018 Real Estate Loan Sale as well as the impairment adjustments on the remaining loans in held for sale in 2019 and 2018, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 | Carrying value and fair value of long-term debt by type were as follows: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Fair Carrying Fair Senior debt $ 17,040 $ 18,332 $ 15,006 $ 14,868 Junior subordinated debt 172 177 172 173 Total $ 17,212 $ 18,509 $ 15,178 $ 15,041 The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 December 31, 2019 Assets Cash and cash equivalents $ 1,159 $ 68 $ — $ 1,227 $ 1,227 Investment securities 45 1,835 4 1,884 1,884 Net finance receivables, less allowance for finance receivable losses — — 19,319 19,319 17,560 Finance receivables held for sale — — 74 74 64 Restricted cash and restricted cash equivalents 405 — — 405 405 Other assets * — — 10 10 10 Liabilities Long-term debt $ — $ 18,509 $ — $ 18,509 $ 17,212 December 31, 2018 Assets Cash and cash equivalents $ 618 $ 61 $ — $ 679 $ 679 Investment securities 34 1,655 5 1,694 1,694 Net finance receivables, less allowance for finance receivable losses — — 16,734 16,734 15,433 Finance receivables held for sale — — 103 103 103 Restricted cash and restricted cash equivalents 499 — — 499 499 Other assets * — 1 15 16 16 Liabilities Long-term debt $ — $ 15,041 $ — $ 15,041 $ 15,178 * Other assets at December 31, 2019 and December 31, 2018 include miscellaneous receivables related to our liquidating loan portfolios. |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 * December 31, 2019 Assets Cash equivalents in mutual funds $ 775 $ — $ — $ 775 Cash equivalents in securities — 68 — 68 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 92 — 92 Commercial paper — 91 — 91 Non-U.S. government and government sponsored entities — 147 — 147 Corporate debt 5 1,093 — 1,098 RMBS — 217 — 217 CMBS — 57 — 57 CDO/ABS — 85 — 85 Total available-for-sale securities 5 1,793 — 1,798 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 23 1 24 RMBS — 1 — 1 CDO/ABS — 12 2 14 Total bonds — 37 3 40 Preferred stock 14 5 — 19 Common stock 26 — — 26 Other long-term investments — — 1 1 Total other securities 40 42 4 86 Total investment securities 45 1,835 4 1,884 Restricted cash in mutual funds 403 — — 403 Total $ 1,223 $ 1,903 $ 4 $ 3,130 * Due to the insignificant activity within the Level 3 assets during 2019, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 * December 31, 2018 Assets Cash equivalents in mutual funds $ 426 $ — $ — $ 426 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 $ 942 $ 1,716 $ 5 $ 2,663 * Due to the insignificant activity within the Level 3 assets during 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. |
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2019 Assets Finance receivables held for sale $ — $ — $ 64 $ 64 $ 3 Real estate owned — — 6 6 3 At or for the Year Ended December 31, 2018 Assets Finance receivables held for sale $ — $ — $ 103 $ 103 $ 16 Real estate owned — — 6 6 3 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. |
Qualitative information about Level 3 inputs for assets measured on a nonrecurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Valuation Technique(s) Unobservable Input Range Weighted Average Range Weighted Average Finance receivables held for sale Income approach Discount Rate 4.17% - 8.50% 6.36 % 4.23% - 8.00% 5.72 % Default Rate 15.00% - 65.00% 36.36 % 13.50% - 70.00% 43.13 % Real estate owned Market approach Third Party Valuation * * * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | OMH's selected quarterly financial data for 2019 was as follows: (dollars in millions, except per share amounts) Fourth Third Second First Interest income $ 1,107 $ 1,065 $ 1,000 $ 956 Interest expense 252 244 238 236 Provision for finance receivable losses 293 282 268 286 Net interest income after provision 562 539 494 434 Other revenues 162 156 156 148 Other expenses 380 398 394 380 Income before income taxes 344 297 256 202 Income taxes 83 49 62 50 Net income $ 261 $ 248 $ 194 $ 152 Earnings per share: Basic $ 1.92 $ 1.82 $ 1.43 $ 1.12 Diluted 1.91 1.82 1.42 1.11 Note: Year-to-Date may not sum due to rounding OMH's selected quarterly financial data for 2018 was as follows: (dollars in millions, except per share amounts) Fourth Third Second First Interest income $ 958 $ 933 $ 905 $ 862 Interest expense 229 227 220 200 Provision for finance receivable losses 278 256 260 254 Net interest income after provision 451 450 425 408 Other revenues 153 144 140 137 Other expenses 390 395 522 377 Income before income taxes 214 199 43 168 Income taxes 46 51 36 44 Net income $ 168 $ 148 $ 7 $ 124 Earnings per share: Basic $ 1.24 $ 1.09 $ 0.05 $ 0.91 Diluted 1.24 1.09 0.05 0.91 Note: Year-to-Date may not sum due to rounding. |
Nature of Operations (Details)
Nature of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation | $ 0 | $ 110 | $ 0 |
Apollo-Värde Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation | 106 | ||
Affiliates of Fortress or AIG | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-cash incentive compensation | $ 4 | ||
Majority Shareholder | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by Initial Stockholder | 40.40% |
Reconciliation of Results of _3
Reconciliation of Results of Springleaf Finance Corporation to OneMain Holdings, Inc.- Reconciliation of SFC to OMH (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Balance Sheets | ||||||||||||
Cash and cash equivalents | $ 1,227 | $ 679 | $ 1,227 | $ 679 | $ 987 | |||||||
Net finance receivables | 18,389 | 16,164 | 18,389 | 16,164 | ||||||||
Allowance for finance receivable losses | (829) | (731) | (829) | (731) | (697) | $ (689) | ||||||
Notes receivable from parent | 0 | 0 | 0 | 0 | ||||||||
Other intangible assets | 343 | 388 | 343 | 388 | ||||||||
Other assets | 705 | 534 | 705 | 534 | ||||||||
Deferred and accrued taxes | 34 | 45 | 34 | 45 | ||||||||
Other liabilities | 592 | 383 | 592 | 383 | ||||||||
Total shareholders’ equity | 4,330 | 3,799 | 4,330 | 3,799 | 3,278 | 3,066 | ||||||
Consolidated Statements of Operations | ||||||||||||
Finance charges | 4,116 | 3,645 | 3,183 | |||||||||
Interest expense | 252 | $ 244 | $ 238 | $ 236 | 229 | $ 227 | $ 220 | $ 200 | 970 | 875 | 816 | |
Provision for finance receivable losses | 293 | 282 | 268 | 286 | 278 | 256 | 260 | 254 | 1,129 | 1,048 | 955 | |
Interest income on notes receivable from parent | 0 | 0 | 0 | |||||||||
Other revenue | 99 | 70 | 96 | |||||||||
Salaries and benefits | 808 | 917 | 777 | |||||||||
Other operating expenses | 559 | 576 | 593 | |||||||||
Income before income taxes | 344 | 297 | 256 | 202 | 214 | 199 | 43 | 168 | 1,098 | 624 | 431 | |
Income taxes | 83 | $ 49 | $ 62 | $ 50 | 46 | $ 51 | $ 36 | $ 44 | 243 | 177 | 248 | |
Net income | 855 | 447 | 183 | |||||||||
SFC | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
Cash and cash equivalents | 1,227 | 663 | 1,227 | 663 | 958 | |||||||
Net finance receivables | 18,389 | 16,122 | 18,389 | 16,122 | ||||||||
Allowance for finance receivable losses | (829) | (726) | (829) | (726) | ||||||||
Notes receivable from parent | 0 | 260 | 0 | 260 | ||||||||
Other intangible assets | 343 | 387 | 343 | 387 | ||||||||
Other assets | 704 | 547 | 704 | 547 | ||||||||
Deferred and accrued taxes | 35 | 42 | 35 | 42 | ||||||||
Other liabilities | 595 | 383 | 595 | 383 | ||||||||
Total shareholders’ equity | 4,325 | 4,021 | 4,325 | 4,021 | 3,402 | $ 3,273 | ||||||
Consolidated Statements of Operations | ||||||||||||
Finance charges | 4,116 | 3,635 | 3,174 | |||||||||
Interest expense | 972 | 876 | 816 | |||||||||
Provision for finance receivable losses | 1,129 | 1,043 | 947 | |||||||||
Interest income on notes receivable from parent | 7 | 18 | 23 | |||||||||
Other revenue | 99 | 38 | 53 | |||||||||
Salaries and benefits | 808 | 877 | 750 | |||||||||
Other operating expenses | 558 | 577 | 635 | |||||||||
Income before income taxes | 1,104 | 643 | 395 | |||||||||
Income taxes | 246 | 182 | 243 | |||||||||
Net income | 858 | 461 | 152 | |||||||||
Difference | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
Cash and cash equivalents | 0 | 16 | 0 | 16 | ||||||||
Net finance receivables | 0 | 42 | 0 | 42 | ||||||||
Allowance for finance receivable losses | 0 | (5) | 0 | (5) | ||||||||
Notes receivable from parent | 0 | (260) | 0 | (260) | ||||||||
Other intangible assets | 0 | 1 | 0 | 1 | ||||||||
Other assets | 1 | (13) | 1 | (13) | ||||||||
Deferred and accrued taxes | (1) | 3 | (1) | 3 | ||||||||
Other liabilities | (3) | 0 | (3) | 0 | ||||||||
Total shareholders’ equity | $ 5 | $ (222) | 5 | (222) | ||||||||
Consolidated Statements of Operations | ||||||||||||
Finance charges | 0 | 10 | 9 | |||||||||
Interest expense | (2) | (1) | 0 | |||||||||
Provision for finance receivable losses | 0 | 5 | 8 | |||||||||
Interest income on notes receivable from parent | (7) | (18) | (23) | |||||||||
Other revenue | 0 | 32 | 43 | |||||||||
Salaries and benefits | 0 | 40 | 27 | |||||||||
Other operating expenses | 1 | (1) | (42) | |||||||||
Income before income taxes | (6) | (19) | 36 | |||||||||
Income taxes | (3) | (5) | 5 | |||||||||
Net income | $ (3) | (14) | 31 | |||||||||
Difference | SpringCastle Portfolio | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
Other revenue | $ 29 | $ 37 |
Reconciliation of Results of _4
Reconciliation of Results of Springleaf Finance Corporation to OneMain Holdings, Inc. - Additional Information (Details) - USD ($) | Sep. 23, 2019 | Jul. 01, 2019 | Jan. 01, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | $ 0 | $ 0 | |||||
Receivables from parent and affiliates | 18,000,000 | ||||||
SFC | |||||||
Business Acquisition [Line Items] | |||||||
Equity contribution | 144,000,000 | 0 | $ 0 | ||||
Notes receivable from parent | 0 | 260,000,000 | |||||
Affiliated Entity | |||||||
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | 260,000,000 | ||||||
Affiliated Entity | SFC | |||||||
Business Acquisition [Line Items] | |||||||
Equity reduction | $ 408,000,000 | 264,000,000 | |||||
Accrued interest | $ 22,000,000 | $ 166,000,000 | |||||
Equity contribution | $ 144,000,000 | ||||||
Increase to total shareholders' equity resulting from contribution | $ 34,000,000 | ||||||
Increase to total assets resulting from contribution | $ 53,000,000 | ||||||
Affiliated Entity | SFI | SFC | |||||||
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | 232,000,000 | ||||||
Affiliated Entity | SFI | SMHC | |||||||
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | 28,000,000 | ||||||
Affiliated Entity | SMHC | SFC | |||||||
Business Acquisition [Line Items] | |||||||
Interest income on notes receivable | $ 8,000,000 | 18,000,000 | 23,000,000 | ||||
Affiliated Entity | OCLI | SFC | Referral Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Fee for each underwritten approved application processed | $ 35 | ||||||
Referral fee expense | 29,000,000 | 56,000,000 | |||||
Subsidiary | OGSC | SFC | Services Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Referral fee expense | $ 265,000,000 | $ 460,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2019paymentdeferment | |
Financing receivable general information | |
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses | 7 |
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses, period | 180 days |
Number of payments past due before repossession | 2 |
Number of payments past due before repossession, period | 30 days |
Retail Sales Finance Retail Sales Contracts - serviced externally | |
Financing receivable general information | |
Number of contractual payments past due, period | 90 days |
Retail Sales Finance | |
Financing receivable general information | |
Financing receivable, number of deferments in rolling period | deferment | 2 |
Financing receivable, rolling period | 12 months |
Maximum | Retail Sales Finance Retail Sales Contracts - serviced externally | |
Financing receivable general information | |
Number of contractual payments past due | 4 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for finance receivable losses | $ 829 | $ 731 | $ 697 | $ 689 | |
ASU 2016-13 | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for finance receivable losses | $ 1,120 | ||||
Deferred tax assets | 280 | ||||
Retained Earnings | ASU 2016-13 | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative reduction to retained earnings | $ 830 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale | $ 64 | $ 103 |
Unlikely to be Collected Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold period past due | 60 days | |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold period past due | 90 days | |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Personal loans secured by titled collateral (as a percent) | 52.00% | 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing receivable general information | ||
Gross receivables | $ 18,195 | $ 15,978 |
Unearned points and fees | (242) | (201) |
Accrued finance charges | 289 | 253 |
Deferred origination costs | 147 | 134 |
Total | $ 18,389 | $ 16,164 |
Finance Receivables - Schedule
Finance Receivables - Schedule of the largest concentrations of net finance receivables (Details) - Loans and Finance Receivables - Geographic Concentration Risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Amount | $ 18,389 | $ 16,164 |
Percent | 100.00% | 100.00% |
Texas | ||
Concentration Risk [Line Items] | ||
Amount | $ 1,606 | $ 1,446 |
Percent | 9.00% | 9.00% |
North Carolina | ||
Concentration Risk [Line Items] | ||
Amount | $ 1,217 | $ 1,178 |
Percent | 7.00% | 7.00% |
California | ||
Concentration Risk [Line Items] | ||
Amount | $ 1,193 | $ 994 |
Percent | 6.00% | 6.00% |
Pennsylvania | ||
Concentration Risk [Line Items] | ||
Amount | $ 1,097 | $ 945 |
Percent | 6.00% | 6.00% |
Florida | ||
Concentration Risk [Line Items] | ||
Amount | $ 1,025 | $ 832 |
Percent | 6.00% | 5.00% |
Ohio | ||
Concentration Risk [Line Items] | ||
Amount | $ 913 | $ 791 |
Percent | 5.00% | 5.00% |
Illinois | ||
Concentration Risk [Line Items] | ||
Amount | $ 787 | $ 700 |
Percent | 4.00% | 4.00% |
Georgia | ||
Concentration Risk [Line Items] | ||
Amount | $ 748 | $ 650 |
Percent | 4.00% | 4.00% |
Indiana | ||
Concentration Risk [Line Items] | ||
Amount | $ 741 | $ 653 |
Percent | 4.00% | 4.00% |
Virginia | ||
Concentration Risk [Line Items] | ||
Amount | $ 710 | $ 651 |
Percent | 4.00% | 4.00% |
Tennessee | ||
Concentration Risk [Line Items] | ||
Amount | $ 602 | $ 547 |
Percent | 3.00% | 3.00% |
Other | ||
Concentration Risk [Line Items] | ||
Amount | $ 7,750 | $ 6,777 |
Percent | 42.00% | 43.00% |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables (Details) - Personal Loans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Delinquency by finance receivables type | ||
Net finance receivables | $ 18,389 | $ 16,164 |
Performing | ||
Delinquency by finance receivables type | ||
Net finance receivables | 18,003 | 15,801 |
Performing | Current | ||
Delinquency by finance receivables type | ||
Net finance receivables | 17,550 | 15,411 |
Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 272 | 229 |
Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 181 | 161 |
Nonperforming | ||
Delinquency by finance receivables type | ||
Net finance receivables | 386 | 363 |
Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | 377 | 355 |
Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type | ||
Net finance receivables | $ 9 | $ 8 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables HFI (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | $ 19 | $ 28 |
Outstanding balance | 35 | 48 |
Personal Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 40 | 89 |
Outstanding balance | 74 | 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Loans - Held for Sale | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | $ 27 | $ 53 | $ 60 |
Accretion | (2) | (4) | (5) |
Reclassifications from nonaccretable difference | 0 | 0 | (2) |
Transfer due to finance receivables sold | (3) | (22) | 0 |
Balance at end of period | 22 | 27 | 53 |
Personal Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 39 | 47 | 59 |
Accretion | (20) | (27) | (34) |
Reclassifications from nonaccretable difference | 16 | 19 | 22 |
Balance at end of period | $ 35 | $ 39 | $ 47 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivable HFI and HFS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables, held for sale | $ 52 | $ 89 |
TDR net receivables, held for sale | 53 | 75 |
Personal Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables | 655 | 450 |
TDR net receivables | 658 | 453 |
Allowance for TDR finance receivable losses | $ 272 | $ 170 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables HFI and HFS and Finance Charges Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDR average net receivables | $ 608 | $ 513 | $ 371 |
TDR finance charges recognized | 48 | 52 | 42 |
Personal Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDR average net receivables | 550 | 383 | 231 |
TDR finance charges recognized | 45 | 45 | 33 |
Other Receivables | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDR average net receivables | 58 | 130 | 140 |
TDR finance charges recognized | 3 | 7 | 9 |
TDR average net receivables, held for sale | 58 | 98 | 91 |
TDR finance charges recognized, held for sale | $ 3 | $ 5 | $ 6 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)account | Dec. 31, 2018USD ($)account | Dec. 31, 2017USD ($)account | |
Personal Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Pre-modification TDR net finance receivables | $ 536 | $ 377 | $ 327 |
Total post-modification TDR net finance receivables | $ 536 | $ 377 | $ 326 |
Number of TDR accounts | account | 78,257 | 57,324 | 45,560 |
Personal Loans | Rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | $ 370 | $ 289 | $ 251 |
Personal Loans | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | 166 | 88 | 75 |
Other Receivables | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Pre-modification TDR net finance receivables | 1 | 3 | 16 |
Total post-modification TDR net finance receivables | $ 1 | $ 3 | $ 16 |
Number of TDR accounts | account | 8 | 70 | 510 |
Other Receivables | Rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | $ 1 | $ 3 | $ 16 |
Other Receivables | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total post-modification TDR net finance receivables | $ 0 | $ 0 | $ 0 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) - Other Receivables $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)account | Dec. 31, 2018USD ($)account | Dec. 31, 2017USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDR net finance receivables | $ | $ 96 | $ 64 | $ 89 |
Number of TDR accounts | account | 14,732 | 9,719 | 15,035 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||||
Balance at beginning of period | $ 731 | $ 697 | $ 731 | $ 697 | $ 689 | ||||||
Provision for finance receivable losses | $ 293 | $ 282 | $ 268 | 286 | $ 278 | $ 256 | $ 260 | 254 | 1,129 | 1,048 | 955 |
Charge-offs | (1,157) | (1,104) | (1,054) | ||||||||
Recoveries | 126 | 113 | 107 | ||||||||
Other | (23) | ||||||||||
Balance at end of period | 829 | 731 | 829 | 731 | 697 | ||||||
Personal Loans | |||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||||
Balance at beginning of period | 731 | 673 | 731 | 673 | 669 | ||||||
Provision for finance receivable losses | 1,129 | 1,050 | 949 | ||||||||
Charge-offs | (1,157) | (1,102) | (1,048) | ||||||||
Recoveries | 126 | 110 | 103 | ||||||||
Other | 0 | ||||||||||
Balance at end of period | 829 | 731 | 829 | 731 | 673 | ||||||
Other Receivables | |||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||||
Balance at beginning of period | $ 0 | $ 24 | 0 | 24 | 20 | ||||||
Provision for finance receivable losses | 0 | (2) | 6 | ||||||||
Charge-offs | 0 | (2) | (6) | ||||||||
Recoveries | 0 | 3 | 4 | ||||||||
Other | (23) | ||||||||||
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 24 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for finance receivable losses: | ||||
Total | $ 829 | $ 731 | $ 697 | $ 689 |
Personal Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 557 | 561 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 272 | 170 | ||
Total | 829 | 731 | $ 673 | $ 669 |
Finance receivables: | ||||
Collectively evaluated for impairment | 17,691 | 15,622 | ||
Purchased credit impaired finance receivables | 18,389 | 16,164 | ||
TDR finance receivables | 658 | 453 | ||
Total | $ 18,389 | $ 16,164 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.51% | 4.52% | ||
Personal Loans | Purchased credit impaired finance receivables | ||||
Finance receivables: | ||||
Purchased credit impaired finance receivables | $ 40 | $ 89 | ||
Total | $ 40 | $ 89 |
Finance Receivables Held for _2
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables held for sale | $ 64 | $ 103 | ||
Proceeds on sales of finance receivables held for sale originated as held for investment | $ 19 | 100 | $ 0 | |
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables transferred to held for sale | 88 | |||
February 2019 Real Estate Loan Sale | Disposed of by 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 (impairment) | 3 | |||
Impairment in other revenue | 3 | |||
December 2018 Real Estate Loan Sale | Disposed of by Sale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | 82 | |||
Proceeds on sales of finance receivables held for sale originated as held for investment | 100 | |||
Net gain (impairment) | $ 18 | |||
Remaining Real Estate Loans Held For Sale | Disposed of by Sale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impairment in other revenue | $ (16) |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,745 | $ 1,643 |
Unrealized Gains | 55 | 3 |
Unrealized Losses | (2) | (39) |
Fair Value | 1,798 | 1,607 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 11 | 21 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 11 | 21 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 91 | 91 |
Unrealized Gains | 2 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 92 | 90 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 91 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 91 | |
Certificates of deposit and commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 63 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 63 | |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 144 | 145 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | 0 | (2) |
Fair Value | 147 | 143 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,054 | 1,027 |
Unrealized Gains | 45 | 2 |
Unrealized Losses | (1) | (32) |
Fair Value | 1,098 | 997 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 214 | 130 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | 0 | (2) |
Fair Value | 217 | 128 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 56 | 72 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 57 | 71 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 84 | 94 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | 0 | (1) |
Fair Value | $ 85 | $ 94 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less Than 12 Months | $ 261 | $ 460 |
12 Months or Longer | 41 | 783 |
Total | 302 | 1,243 |
Unrealized Losses | ||
Less Than 12 Months | (2) | (15) |
12 Months or Longer | 0 | (24) |
Total | (2) | (39) |
U.S. government and government sponsored entities | ||
Fair Value | ||
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 | ||
Fair Value | ||
Less Than 12 Months | 29 | 10 |
12 Months or Longer | 4 | 57 |
Total | 33 | 67 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | (1) |
Total | (1) | (1) |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 76 | |
12 Months or Longer | 0 | |
Total | 76 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 19 | 19 |
12 Months or Longer | 14 | 97 |
Total | 33 | 116 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | 0 | (1) |
Total | 0 | (2) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 63 | 377 |
12 Months or Longer | 13 | 448 |
Total | 76 | 825 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (14) |
12 Months or Longer | 0 | (18) |
Total | (1) | (32) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 45 | 23 |
12 Months or Longer | 0 | 78 |
Total | 45 | 101 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (2) |
Total | 0 | (2) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 15 | 10 |
12 Months or Longer | 7 | 54 |
Total | 22 | 64 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (1) |
Total | 0 | (1) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 14 | 18 |
12 Months or Longer | 0 | 33 |
Total | 14 | 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) | 12 Months Ended | ||
Dec. 31, 2019USD ($)investment | Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment securities in an unrealized loss position | investment | 398 | 1,767 | |
Other-than-temporary impairment credit losses | $ 0 | ||
Proceeds from sales and redemptions | $ 284,000,000 | $ 341,000,000 | 508,000,000 |
Net realized gains | $ 14,000,000 | ||
Fair value of securities on deposit | 633,000,000 | 515,000,000 | |
Net unrealized gains (losses) on other securities sold or redeemed | $ 6,000,000 | $ (7,000,000) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 226 | |
Due after 1 year through 5 years | 559 | |
Due after 5 years through 10 years | 481 | |
Due after 10 years | 173 | |
Mortgage-backed, asset-backed, and collateralized securities | 359 | |
Total | 1,798 | $ 1,607 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in 1 year or less | 225 | |
Due after 1 year through 5 years | 546 | |
Due after 5 years through 10 years | 457 | |
Due after 10 years | 163 | |
Mortgage-backed, asset-backed, and collateralized securities | 354 | |
Cost/ Amortized Cost | $ 1,745 | $ 1,643 |
Investment Securities - Fair _2
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 40 | $ 46 |
Other long-term investments | 1 | 1 |
Total | 86 | 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 | 24 | 43 |
Mortgage-backed, asset-backed, and collateralized bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 15 | 2 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading security, equity | 19 | 19 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading security, equity | $ 26 | $ 21 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,422,000,000 | $ 1,422,000,000 | |
Impairments to goodwill | 0 | 0 | $ 0 |
Amortization expense | 39,000,000 | 43,000,000 | $ 52,000,000 |
VOBA | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles written off in connection with sale of former subsidiary | $ 6,000,000 | ||
Indefinite-lived licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment loss | $ 8,000,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (243) | $ (237) |
Gross Carrying Amount | 586 | 625 |
Net Other Intangible Assets | 343 | 388 |
Licenses | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 25 | 28 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 223 | 223 |
Accumulated Amortization | (160) | (126) |
Net Other Intangible Assets | 63 | 97 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 220 | 220 |
Accumulated Amortization | 0 | 0 |
Net Other Intangible Assets | 220 | 220 |
VOBA | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 105 | 141 |
Accumulated Amortization | (71) | (99) |
Net Other Intangible Assets | 34 | 42 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13 | 13 |
Accumulated Amortization | (12) | (12) |
Net Other Intangible Assets | $ 1 | $ 1 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Aggregate Amortization of Other Intangible Assets and Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 37 |
2021 | 32 |
2022 | 3 |
2023 | 3 |
2024 | $ 3 |
Long-term Debt - Carrying Value
Long-term Debt - Carrying Value and Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 18,509 | $ 15,041 |
Fair Value | Senior debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 18,332 | 14,868 |
Fair Value | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 177 | 173 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 17,212 | 15,178 |
Carrying Value | Senior debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 17,040 | 15,006 |
Carrying Value | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 172 | $ 172 |
Long-term Debt - Weighted Avera
Long-term Debt - Weighted Average Effective Interest Rates on Long-term Debt (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Interest rate during the period | 5.93% | 5.66% | 5.74% |
Interest rate at point in time | 5.87% | 5.92% | |
Senior debt | |||
Debt Instrument [Line Items] | |||
Interest rate during the period | 5.90% | 5.64% | 5.73% |
Interest rate at point in time | 5.85% | 5.89% | |
Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rate during the period | 8.68% | 8.13% | 6.41% |
Interest rate at point in time | 7.65% | 8.56% |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Principal maturities of long-term debt by type of debt | ||
2020 | $ 1,000,000,000 | |
2021 | 646,000,000 | |
2022 | 1,000,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025-2067 | 4,749,000,000 | |
Securitizations | 7,678,000,000 | |
Total principal maturities | 17,548,000,000 | |
Total carrying amount | 17,212,000,000 | $ 15,178,000,000 |
Debt issuance costs | (115,000,000) | |
Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Total carrying amount | 7,600,000,000 | 7,500,000,000 |
Senior Debt | Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025-2067 | 0 | |
Securitizations | 7,678,000,000 | |
Total principal maturities | 7,678,000,000 | |
Total carrying amount | 7,643,000,000 | |
Debt issuance costs | (30,000,000) | |
Debt issuance costs | $ 29,000,000 | |
Senior Debt | Securitizations | Minimum | ||
Long-term debt | ||
Interest rate | 2.31% | |
Senior Debt | Securitizations | Maximum | ||
Long-term debt | ||
Interest rate | 6.94% | |
Senior Debt | Unsecured Notes | ||
Principal maturities of long-term debt by type of debt | ||
2020 | $ 1,000,000,000 | |
2021 | 646,000,000 | |
2022 | 1,000,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025-2067 | 4,399,000,000 | |
Securitizations | 0 | |
Total principal maturities | 9,520,000,000 | |
Total carrying amount | 9,397,000,000 | |
Debt issuance costs | $ (85,000,000) | |
Senior Debt | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 5.38% | |
Senior Debt | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 8.25% | |
Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
2020 | $ 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025-2067 | 350,000,000 | |
Securitizations | 0 | |
Total principal maturities | 350,000,000 | |
Total carrying amount | 172,000,000 | |
Debt issuance costs | 0 | |
Asset-backed Securities, Securitized Loans and Receivables | Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Amounts drawn | 0 | |
SFC | ||
Principal maturities of long-term debt by type of debt | ||
Total carrying amount | 17,212,000,000 | 15,178,000,000 |
SFC | Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Total carrying amount | $ 7,600,000,000 | $ 7,500,000,000 |
SFC | Junior Subordinated Debt | ||
Long-term debt | ||
Effective interest rate | 3.74% | |
SFC | Junior Subordinated Debt | LIBOR | ||
Principal maturities of long-term debt by type of debt | ||
Basis spread on variable rate | 1.75% |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Apr. 15, 2019USD ($) | Mar. 25, 2019USD ($) | Jan. 31, 2007USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)redemption | Dec. 31, 2017USD ($) | Nov. 07, 2019USD ($) | Jul. 02, 2019USD ($) | May 09, 2019USD ($) | Mar. 15, 2019 | Feb. 22, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||
Net loss on repurchases and repayments of debt | $ 35,000,000 | $ 9,000,000 | $ 29,000,000 | ||||||||
SFC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net loss on repurchases and repayments of debt | 35,000,000 | $ 9,000,000 | $ 29,000,000 | ||||||||
SFC | Senior Debt | 6.125% SFC Notes due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.125% | ||||||||||
Debt instrument, face amount | $ 300,000,000 | $ 1,000,000,000 | |||||||||
SFC | Senior Debt | 5.25% Senior Notes due 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.25% | ||||||||||
Aggregate amount paid, inclusive of accrued interest and premiums | $ 706,000,000 | ||||||||||
Net loss on repurchases and repayments of debt | 21,000,000 | ||||||||||
SFC | Senior Debt | 6.00% Senior Notes due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.00% | ||||||||||
Aggregate amount paid, inclusive of accrued interest and premiums | $ 317,000,000 | ||||||||||
Net loss on repurchases and repayments of debt | $ 11,000,000 | ||||||||||
SFC | Senior Debt | 6.625% SFC Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.625% | ||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||
SFC | Senior Debt | 5.375% SFC Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.375% | ||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||
SFC | Junior Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 350,000,000 | ||||||||||
Debt instrument, term | 60 years | ||||||||||
Effective interest rate | 3.74% | ||||||||||
Tangible equity to tangible managed assets (ratio) (less than) | 5.50% | ||||||||||
Average fixed charge ratio (not more than) | 1.10 | ||||||||||
SFC | Junior Subordinated Debt | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.75% | ||||||||||
OMFH | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Number Of Redemptions | redemption | 2 | ||||||||||
OMFH | Senior Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net loss on repurchases and repayments of debt | $ 8,000,000 | ||||||||||
OMFH | Senior Debt | OMFH Notes due 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||
Redemption price (as a percent) | 103.375% | ||||||||||
OMFH | Senior Debt | OMFH Notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||
Redemption price (as a percent) | 103.625% |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - Consolidated VIEs - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 4 | $ 2 |
Finance receivables - Personal loans | Finance receivable - Personal loan | ||
Variable Interest Entity [Line Items] | ||
Assets | 8,428 | 8,480 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 340 | 444 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 400 | 479 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 29 | 26 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 7,643 | 7,510 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 15 | $ 14 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||||||||
Interest expense | $ 252 | $ 244 | $ 238 | $ 236 | $ 229 | $ 227 | $ 220 | $ 200 | $ 970 | $ 875 | $ 816 |
Consolidated VIEs | |||||||||||
Variable Interest Entity [Line Items] | |||||||||||
Interest expense | $ 326 | $ 341 | $ 323 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Debt Instrument [Line Items] | |
Revolving period | 1 year |
Maximum | |
Debt Instrument [Line Items] | |
Revolving period | 7 years |
Variable Interest Entities - Re
Variable Interest Entities - Revolving Conduit Facilities (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)facility | |
Minimum | |
Line of Credit Facility [Line Items] | |
Revolving period | 1 year |
Maximum | |
Line of Credit Facility [Line Items] | |
Revolving period | 7 years |
Consolidated VIEs | Asset-backed Securities, Securitized Loans and Receivables | |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 14 |
Total borrowing capacity | $ 7,100,000,000 |
Amounts drawn | $ 0 |
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 - Additional Informat
Insurance - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Claims Development [Line Items] | |||||
Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies | $ 369,000,000 | $ 369,000,000 | $ 319,000,000 | ||
OMH insurance subsidiaries | |||||
Claims Development [Line Items] | |||||
Period restricting maximum amount of dividends without prior approval | 12 months | ||||
Policyholders' surplus restricting maximum amount of dividends (as a percent) | 10.00% | 10.00% | |||
Period restricting maximum ordinary dividends without prior approval | 12 months | ||||
Policyholders' surplus restricting maximum ordinary dividends (as a percent) | 10.00% | 10.00% | |||
AHL | OMH | |||||
Claims Development [Line Items] | |||||
Ordinary dividends paid | $ 0 | 34,000,000 | $ 0 | ||
Merit | SFC | |||||
Claims Development [Line Items] | |||||
Ordinary dividends paid | 37,000,000 | ||||
Other operating expense | |||||
Claims Development [Line Items] | |||||
Net gain on sale of shares of former insurance subsidiary | $ 9,000,000 | ||||
OMH | |||||
Claims Development [Line Items] | |||||
Impairment loss on transfer to held for sale | $ 14,000,000 | ||||
Non Affiliated Entity | |||||
Claims Development [Line Items] | |||||
Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies | $ 71,000,000 | $ 71,000,000 | $ 74,000,000 |
Insurance - Unearned Insurance
Insurance - Unearned Insurance Premium Reserves, Claim Reserves and Benefit Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claim reserves | $ 117 | $ 117 | $ 154 | $ 158 |
Subtotal | 649 | 685 | ||
Total | 1,442 | 1,347 | ||
Non-finance receivable related | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unearned premium reserves | 74 | 77 | ||
Benefit reserves | 311 | 364 | ||
Claim reserves | 18 | 21 | ||
Subtotal | 403 | 462 | ||
Payable to OMH | Finance receivable related | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unearned premium reserves | 712 | 583 | ||
Claim reserves | 81 | 79 | ||
Subtotal | 793 | 662 | ||
Payable to third-party beneficiaries | Finance receivable related | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unearned premium reserves | 121 | 100 | ||
Benefit reserves | 107 | 106 | ||
Claim reserves | 18 | 17 | ||
Subtotal | $ 246 | $ 223 |
Insurance - Changes in the Rese
Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 117 | $ 154 | $ 158 | |
Less reinsurance recoverables | (4) | (4) | (23) | $ (26) |
Net balance at beginning of period | 113 | 131 | 132 | |
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 200 | 199 | 188 | |
Prior years | (15) | (10) | 5 | |
Total | 185 | 189 | 193 | |
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (121) | (118) | (115) | |
Prior years | (64) | (69) | (78) | |
Total | (185) | (187) | (193) | |
Foreign currency translation adjustment | 0 | (1) | (1) | |
Net balance at end of period | 113 | 132 | 131 | |
Plus reinsurance recoverables | 4 | 4 | 23 | $ 26 |
Less transfer of reserves | 0 | (19) | 0 | |
Balance at end of period | $ 117 | $ 117 | $ 154 |
Insurance - Claims and Allocate
Insurance - Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (Details) $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 99 | $ 96 | $ 112 | ||
Insurance lines other than short-duration | 18 | 21 | 22 | ||
Total gross liability for unpaid claims and claim adjustment expense | 117 | 117 | 154 | $ 158 | |
Credit Insurance | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 667 | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 571 | ||||
All outstanding liabilities before 2015, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 96 | 94 | 90 | ||
Credit Insurance | 2015 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 125 | 126 | 129 | 129 | $ 138 |
Incurred-but-not-reported Liabilities | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 52,555 | ||||
Cumulative Frequency (as a percent) | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 125 | 123 | 117 | 106 | $ 68 |
Credit Insurance | 2016 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131 | 133 | 135 | 138 | |
Incurred-but-not-reported Liabilities | $ 2 | ||||
Cumulative Number of Reported Claims | claim | 51,654 | ||||
Cumulative Frequency (as a percent) | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 129 | 124 | 113 | $ 74 | |
Credit Insurance | 2017 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 125 | 129 | 136 | ||
Incurred-but-not-reported Liabilities | $ 7 | ||||
Cumulative Number of Reported Claims | claim | 44,341 | ||||
Cumulative Frequency (as a percent) | 2.40% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 117 | 108 | 75 | ||
Credit Insurance | 2018 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 134 | 145 | |||
Incurred-but-not-reported Liabilities | $ 19 | ||||
Cumulative Number of Reported Claims | claim | 41,487 | ||||
Cumulative Frequency (as a percent) | 2.10% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 114 | 81 | |||
Credit Insurance | 2019 | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 152 | ||||
Incurred-but-not-reported Liabilities | $ 67 | ||||
Cumulative Number of Reported Claims | claim | 35,825 | ||||
Cumulative Frequency (as a percent) | 1.90% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 86 | ||||
Other short-duration insurance lines | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 3 | 2 | 22 | ||
Reinsurance recoverable on unpaid claims | $ 0 | $ 0 | $ 20 |
Insurance - Average Annual Perc
Insurance - Average Annual Percentage Payout of Incurred Claims (Details) - Credit insurance | Dec. 31, 2019 |
Claims Development [Line Items] | |
Year One | 57.40% |
Year Two | 27.90% |
Year Three | 8.30% |
Year Four | 4.40% |
Year Five | 1.40% |
Insurance - Statutory Net Incom
Insurance - Statutory Net Income (Loss) for Insurance Companies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and casualty | Yosemite | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) for insurance companies | $ 0 | $ 0 | $ 19 |
Property and casualty | Triton | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) for insurance companies | 16 | 18 | 31 |
Life and health | Merit | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) for insurance companies | 0 | 53 | 37 |
Life and health | AHL | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) for insurance companies | $ 56 | $ 32 | $ 34 |
Insurance - Statutory Capital a
Insurance - Statutory Capital and Surplus for Insurance Companies (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property and casualty | Triton | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus for insurance companies | $ 144 | $ 113 |
Life and health | Merit | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus for insurance companies | 0 | 94 |
Life and health | AHL | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus for insurance companies | $ 192 | $ 129 |
Insurance - Extraordinary Divid
Insurance - Extraordinary Dividends Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AHL | OMH | |||
Dividends Payable [Line Items] | |||
Extraordinary dividends paid | $ 0 | $ 0 | $ 111 |
Triton | OMH | |||
Dividends Payable [Line Items] | |||
Extraordinary dividends paid | 0 | 70 | 0 |
Merit | SFC | |||
Dividends Payable [Line Items] | |||
Extraordinary dividends paid | 140 | 0 | 90 |
Yosemite | SFC | |||
Dividends Payable [Line Items] | |||
Extraordinary dividends paid | $ 0 | $ 42 | $ 35 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019class | |
Earnings Per Share [Abstract] | |
Number of classes of authorized stock | 2 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share - Par Value and Shares Authorized (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Common Stock, Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
OMH | ||
Class of Stock [Line Items] | ||
Preferred/Special Stock, Par value (in dollars per share) | $ 0.01 | |
Common Stock, Par value (in dollars per share) | $ 0.01 | |
Preferred/Special Stock, Shares authorized (in shares) | 300,000,000 | |
Common Stock, Shares authorized (in shares) | 2,000,000,000 | |
SFC | ||
Class of Stock [Line Items] | ||
Preferred/Special Stock, Par value (in dollars per share) | $ 0 | |
Common Stock, Par value (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred/Special Stock, Shares authorized (in shares) | 25,000,000 | |
Common Stock, Shares authorized (in shares) | 25,000,000 | 25,000,000 |
Capital Stock and Earnings Pe_5
Capital Stock and Earnings Per Share - Changes in Shares Issued and Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 135,832,278 | 135,349,638 | 134,867,868 |
Common shares issued | 268,878 | 482,640 | 481,770 |
Balance at end of period | 136,101,156 | 135,832,278 | 135,349,638 |
Common Stock, Shares issued and outstanding | 136,101,156 | 135,832,278 | |
SFC | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 10,160,021 | ||
Balance at end of period | 10,160,021 | 10,160,021 | |
Special Stock, Shares issued and outstanding | 0 | 0 | |
Common Stock, Shares issued and outstanding | 10,160,021 | 10,160,021 |
Capital Stock and Earnings Pe_6
Capital Stock and Earnings Per Share- Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator (basic and diluted): | |||||||||||
Net income | $ 855 | $ 447 | $ 183 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding (basic) (in shares) | 136,070,837 | 135,702,989 | 135,249,314 | ||||||||
Effect of dilutive securities (in shares) | 256,074 | 331,154 | 429,677 | ||||||||
Weighted average number of shares outstanding (diluted) (in shares) | 136,326,911 | 136,034,143 | 135,678,991 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.92 | $ 1.82 | $ 1.43 | $ 1.12 | $ 1.24 | $ 1.09 | $ 0.05 | $ 0.91 | $ 6.28 | $ 3.29 | $ 1.35 |
Diluted (in dollars per share) | $ 1.91 | $ 1.82 | $ 1.42 | $ 1.11 | $ 1.24 | $ 1.09 | $ 0.05 | $ 0.91 | $ 6.27 | $ 3.29 | $ 1.35 |
Capital Stock and Earnings Pe_7
Capital Stock and Earnings Per Share - Anti-Dilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance-based shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded in the diluted earnings per share calculation | 173,944 | 40,593 | 59,863 |
Service-based shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded in the diluted earnings per share calculation | 97,011 | 246,913 | 674,472 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 3,799 | $ 3,278 | $ 3,066 |
Other comprehensive income before reclassifications | 77 | (48) | 27 |
Reclassification adjustments from accumulated other comprehensive income | 1 | 1 | (10) |
Impact of AOCI reclassification due to the Tax Act | 2 | ||
Balance at end of period | 4,330 | 3,799 | 3,278 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (28) | 4 | (1) |
Other comprehensive income before reclassifications | 68 | (35) | 14 |
Reclassification adjustments from accumulated other comprehensive income | 1 | 1 | (9) |
Impact of AOCI reclassification due to the Tax Act | 2 | ||
Balance at end of period | 41 | (28) | 4 |
Retirement Plan Liabilities Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (3) | 4 | (4) |
Other comprehensive income before reclassifications | 6 | (4) | 9 |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | (1) |
Impact of AOCI reclassification due to the Tax Act | (3) | ||
Balance at end of period | 3 | (3) | 4 |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (3) | 3 | (1) |
Other comprehensive income before reclassifications | 3 | (9) | 4 |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | 0 |
Impact of AOCI reclassification due to the Tax Act | 3 | ||
Balance at end of period | 0 | (3) | 3 |
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (34) | 11 | (6) |
Impact of AOCI reclassification due to the Tax Act | 2 | ||
Balance at end of period | $ 44 | $ (34) | $ 11 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated other comprehensive income | |||
Total | $ (1) | $ (1) | $ 10 |
Unrealized gains (losses) on available-for-sale securities | |||
Accumulated other comprehensive income | |||
Total | (1) | (1) | 9 |
Unrealized gains (losses) on retirement plan liabilities | |||
Accumulated other comprehensive income | |||
Total | 0 | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated other comprehensive income | |||
Total | (1) | (1) | 10 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on available-for-sale securities | |||
Accumulated other comprehensive income | |||
Reclassification from accumulated other comprehensive (loss) | (1) | (2) | 14 |
Income tax effect | 0 | 1 | (5) |
Total | (1) | (1) | 9 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on retirement plan liabilities | |||
Accumulated other comprehensive income | |||
Reclassification from accumulated other comprehensive (loss) | 0 | 0 | 2 |
Income tax effect | 0 | 0 | (1) |
Total | $ 0 | $ 0 | $ 1 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before income tax expense - U.S. operations | $ 1,082 | $ 610 | $ 416 | ||||||||
Income before income tax expense - foreign operations | 16 | 14 | 15 | ||||||||
Income before income taxes | $ 344 | $ 297 | $ 256 | $ 202 | $ 214 | $ 199 | $ 43 | $ 168 | $ 1,098 | $ 624 | $ 431 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 205 | $ 131 | $ 208 | ||||||||
Foreign | 3 | 3 | 2 | ||||||||
State | 34 | 20 | 8 | ||||||||
Total current | 242 | 154 | 218 | ||||||||
Deferred: | |||||||||||
Federal | 15 | 15 | 18 | ||||||||
State | (14) | 8 | 12 | ||||||||
Total deferred | 1 | 23 | 30 | ||||||||
Total | $ 83 | $ 49 | $ 62 | $ 50 | $ 46 | $ 51 | $ 36 | $ 44 | $ 243 | $ 177 | $ 248 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of The Statutory Federal Income Tax Rate to the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal | 3.49% | 3.65% | 2.86% |
Change in valuation allowance | (2.07%) | 0.00% | 0.00% |
Nondeductible compensation | 0.13% | 3.85% | 0.00% |
Excess tax expense on share-based compensation | 0.04% | 0.02% | 0.41% |
Impact of Tax Act | 0.00% | 0.00% | 18.65% |
Other, net | (0.43%) | (0.15%) | 0.55% |
Effective income tax rate | 22.16% | 28.37% | 57.47% |
SFC | |||
Income Tax Examination [Line Items] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal | 3.49% | 3.68% | 2.63% |
Change in valuation allowance | (2.06%) | 0.00% | 0.00% |
Nondeductible compensation | 0.13% | 3.73% | 0.00% |
Excess tax expense on share-based compensation | 0.04% | 0.02% | 0.33% |
Return to provision adjustment | 0.08% | 0.00% | 0.81% |
Impact of Tax Act | 0.00% | 0.00% | 21.69% |
Other, net | (0.41%) | (0.08%) | 1.09% |
Effective income tax rate | 22.27% | 28.35% | 61.55% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Undistributed foreign earnings | $ 0 | ||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Impact of Tax Act | 0.00% | 0.00% | 18.65% |
Tax charges as a result of the Tax Act | $ 81,000,000 | ||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in net deferred tax asset | $ (25,000,000) | ||
State deferred | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in net deferred tax asset | 23,000,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 551,000,000 | $ 626,000,000 | |
Valuation allowance | $ 18,000,000 | $ 38,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Beginning and Ending Balances of the Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of year | $ 12 | $ 17 | $ 15 | $ 16 |
Increases in tax positions for current years | 2 | 0 | 1 | |
Increases in tax positions for prior years | 2 | 8 | 0 | |
Lapse in statute of limitations | (3) | (6) | (2) | |
Settlements with tax authorities | (6) | 0 | 0 | |
Balance at end of year | $ 12 | $ 17 | $ 15 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 210 | $ 191 |
Net operating losses and tax credits | 33 | 36 |
Insurance reserves | 31 | 8 |
Pension/employee benefits | 16 | 22 |
Mark-to-market | 10 | 35 |
Tax interest adjustment | 7 | 19 |
Acquisition costs | 6 | 7 |
Fair value of equity and securities investments | 0 | 8 |
Other | 9 | 15 |
Total | 322 | 341 |
Deferred tax liabilities: | ||
Goodwill | 97 | 75 |
Debt fair value adjustment | 52 | 56 |
Deferred loan fees | 19 | 21 |
Fair value of equity and securities investments | 12 | 0 |
Fixed assets | 8 | 8 |
Discount - debt exchange | 5 | 9 |
Other | 4 | 2 |
Deferred Tax Liabilities, Gross, Total | 197 | 171 |
Net deferred tax assets before valuation allowance | 125 | 170 |
Valuation allowance | (21) | (41) |
Net deferred tax assets | $ 104 | $ 129 |
Leases and Contingencies - Leas
Leases and Contingencies - Leases Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating leases remaining lease terms | 3 years 9 months 18 days | ||
Operating right-of-use asset balance | $ 163 | ||
Operating lease liability balance | 176 | ||
Operating lease costs | 61 | ||
Variable lease costs | $ 16 | ||
Rent expense | $ 74 | $ 79 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating leases remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating leases remaining lease terms | 10 years |
Leases and Contingencies - Matu
Leases and Contingencies - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 62 |
2021 | 52 |
2022 | 39 |
2023 | 23 |
2024 | 13 |
Thereafter | 11 |
Total lease payments | 200 |
Imputed interest | (24) |
Total | $ 176 |
Leases and Contingencies - Weig
Leases and Contingencies - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted Average Remaining Lease Term | 3 years 9 months 18 days |
Weighted Average Discount Rate | 3.78% |
Leases and Contingencies - Annu
Leases and Contingencies - Annual Rental Commitments for Leases Accounted for as Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 60 |
2020 | 50 |
2021 | 37 |
2022 | 26 |
2023 | 12 |
2024 plus | 12 |
Total | $ 197 |
Retirement Benefit Plans - 401(
Retirement Benefit Plans - 401(K) Plans (Details) - UNITED STATES - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employer matching contribution | 100.00% | ||
Percentage of employee salary eligible for employer matching contribution | 4.00% | ||
Salaries and benefit expenses related to plan | $ 17 | $ 17 | $ 16 |
Retirement Benefits Plans - Pen
Retirement Benefits Plans - Pension Plans (Details) - Pension Plan | 12 Months Ended |
Dec. 31, 2019 | |
UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 12 months |
Vesting period | 5 years |
Normal retirement age | 65 years |
Maximum credited service period | 44 years |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 1 year |
Retirement Benefit Plans - Obli
Retirement Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits paid: | |||
Fair value of plan assets, end of period | $ 363 | ||
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of period | 320 | $ 354 | $ 385 |
Interest cost | 12 | 11 | 13 |
Actuarial loss (gain) | 47 | (30) | 17 |
Benefits paid: | |||
Plan assets | (15) | (15) | (14) |
Settlement | 0 | 0 | (47) |
Projected benefit obligation, end of period | 364 | 320 | 354 |
Fair value of plan assets | |||
Fair value of plan assets, beginning of period | 308 | 341 | 354 |
Actual return on plan assets, net of expenses | 69 | (19) | 47 |
Company contributions | 1 | 1 | 1 |
Benefits paid: | |||
Plan assets | (15) | (15) | (14) |
Settlement | 0 | 0 | (47) |
Fair value of plan assets, end of period | 363 | 308 | 341 |
Funded status, end of period | (1) | (12) | (13) |
Other liabilities recognized in the consolidated balance sheet | (1) | (12) | (13) |
Pretax net gain (loss) recognized in accumulated other comprehensive income (loss) | 4 | (3) | 4 |
Pension Plan | Unfunded Plan | Nonqualified Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of period | 9 | 10 | |
Benefits paid: | |||
Projected benefit obligation, end of period | $ 10 | $ 9 | $ 10 |
Retirement Benefit Plans - PBO
Retirement Benefit Plans - PBO and ABO and Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Total recognized in other comprehensive income or loss | $ (7) | $ 7 | $ (12) |
Pension Plan | |||
PBO and ABO Exceeds Fair Value of Plan Assets | |||
Projected benefit obligation | 364 | 320 | |
Accumulated benefit obligation | 364 | 320 | |
Fair value of plan assets | 363 | 308 | |
Components of net periodic benefit cost: | |||
Interest cost | 12 | 11 | 13 |
Expected return on assets | (15) | (18) | (18) |
Settlement gain | 0 | 0 | (2) |
Net periodic benefit cost | (3) | (7) | (7) |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | (7) | 7 | (12) |
Amortization of net actuarial gain (loss) | 0 | 0 | 2 |
Total recognized in other comprehensive income or loss | (7) | 7 | (10) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (10) | $ 0 | $ (17) |
Retirement Benefit Plans - Assu
Retirement Benefit Plans - Assumptions (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Projected benefit obligation: | ||
Discount rate | 3.08% | 4.12% |
Net periodic benefit costs: | ||
Discount rate | 4.12% | 3.49% |
Expected long-term rate of return on plan assets | 5.03% | 5.27% |
Retirement Benefit Plans - Allo
Retirement Benefit Plans - Allocation of Plan Assets (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 5.03% | 5.27% |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 5.00% | |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 5.80% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation (as a percent) | 95.00% | |
Target asset allocation (as a percent) | 94.00% | |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation (as a percent) | 4.00% | |
Target asset allocation (as a percent) | 6.00% | |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation (as a percent) | 1.00% |
Retirement Benefit Plans - Expe
Retirement Benefit Plans - Expected Cash Flows (Details) - Pension Plan $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | $ 16 |
2021 | 16 |
2022 | 16 |
2023 | 17 |
2024 | 17 |
2025-2029 | $ 89 |
Retirement Benefit Plans - Fair
Retirement Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | $ 363 | |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 54 | $ 4 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 295 | 304 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 349 | 308 |
Fair value measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 14 | |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3 | 4 |
Equity securities: U.S. | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 0 |
Equity securities: U.S. | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 7 |
Equity securities: U.S. | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Equity securities: U.S. | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 7 |
Equity securities: International | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 0 |
Equity securities: International | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 6 |
Equity securities: International | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Equity securities: International | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1 | 6 |
Fixed income securities: U.S. investment grade | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 49 | 0 |
Fixed income securities: U.S. investment grade | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 290 | 287 |
Fixed income securities: U.S. investment grade | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. investment grade | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 339 | 287 |
Fixed income securities: U.S. high yield | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. high yield | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 5 | 4 |
Fixed income securities: U.S. high yield | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 0 | 0 |
Fixed income securities: U.S. high yield | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | $ 5 | $ 4 |
Share-Based Compensation - Omni
Share-Based Compensation - Omnibus Incentive Plan Narrative (Details) | May 25, 2016USD ($) | Dec. 31, 2019USD ($)numberOfEmployees$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares |
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares of common stock authorized (in shares) | shares | 13,303,988 | |||
Number of shares subject to outstanding equity awards (in shares) | shares | 659,628 | |||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted (in shares) | 10.00% | |||
Number of employees affected by amendments | numberOfEmployees | 450 | |||
Share-based compensation expense | $ 13,000,000 | $ 21,000,000 | $ 17,000,000 | |
Total income tax benefit recognized for stock-based compensation | 3,000,000 | $ 6,000,000 | $ 6,000,000 | |
Unrecognized compensation expense | $ 10,000,000 | |||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 1 year | |||
Service-based Awards | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares outstanding (in shares) | shares | 469,014 | 694,592 | ||
Granted during the period (in dollars per share) | $ / shares | $ 30.10 | $ 31.55 | $ 27.85 | |
Fair value of service based awards vested in period | $ 12,000,000 | $ 23,000,000 | $ 18,000,000 | |
RSUs | Minimum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Vesting period of award without rights | 1 year | |||
RSUs | Maximum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Vesting period of award without rights | 4 years | |||
RSAs | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares outstanding (in shares) | shares | 0 | |||
PRSUs | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Number of shares outstanding (in shares) | shares | 190,614 | 143,734 | ||
Granted during the period (in dollars per share) | $ / shares | $ 31.86 | $ 24.98 | $ 24.98 | |
Fair value of service based awards vested in period | $ 3,000,000 | $ 3,000,000 | $ 2,000,000 | |
PRSUs | Minimum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Achievement of performance goal | 1 year | |||
PRSUs | Maximum | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Achievement of performance goal | 3 years | |||
Non-Employee Directors | ||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | ||||
Maximum cash and equity-based awards to non-employee directors per calendar year | $ 500,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service-based Awards | |||
Number of Shares | |||
Unvested as of beginning of period (in shares) | 694,592 | ||
Granted (in shares) | 309,243 | ||
Vested (in shares) | (317,755) | ||
Forfeited (in shares) | (217,066) | ||
Unvested as of end of period (in shares) | 469,014 | 694,592 | |
Weighted Average Grant Date Fair Value | |||
Unvested as of beginning of period (in dollars per share) | $ 37.70 | ||
Granted (in dollars per share) | 30.10 | $ 31.55 | $ 27.85 |
Vested (in dollars per share) | 37.55 | ||
Forfeited (in dollars per share) | 33.96 | ||
Unvested as of end of period (in dollars per share) | $ 34.52 | $ 37.70 | |
Weighted Average Remaining Term (in Years) | 1 year 3 days | ||
PRSUs | |||
Number of Shares | |||
Unvested as of beginning of period (in shares) | 143,734 | ||
Granted (in shares) | 336,885 | ||
Vested (in shares) | (121,754) | ||
Forfeited (in shares) | (168,251) | ||
Unvested as of end of period (in shares) | 190,614 | 143,734 | |
Weighted Average Grant Date Fair Value | |||
Unvested as of beginning of period (in dollars per share) | $ 26.40 | ||
Granted (in dollars per share) | 31.86 | $ 24.98 | $ 24.98 |
Vested (in dollars per share) | 27.60 | ||
Forfeited (in dollars per share) | 31.18 | ||
Unvested as of end of period (in dollars per share) | $ 31.05 | $ 26.40 | |
Weighted Average Remaining Term (in Years) | 2 years 2 months 4 days |
Share-Based Compensation - Ince
Share-Based Compensation - Incentive Units Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiary, Sale of Stock [Line Items] | |||
Non-cash incentive compensation from SFH | $ 0 | $ 110,000,000 | $ 0 |
Share-based compensation expense | 13,000,000 | 21,000,000 | 17,000,000 |
Apollo-Värde Group | |||
Subsidiary, Sale of Stock [Line Items] | |||
Non-cash incentive compensation from SFH | 106,000,000 | ||
Affiliates of Fortress or AIG | |||
Subsidiary, Sale of Stock [Line Items] | |||
Non-cash incentive compensation from SFH | $ 4,000,000 | ||
Incentive Units | |||
Subsidiary, Sale of Stock [Line Items] | |||
Share-based compensation expense | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | $ 1,107 | $ 1,065 | $ 1,000 | $ 956 | $ 958 | $ 933 | $ 905 | $ 862 | $ 4,127 | $ 3,658 | $ 3,196 |
Interest expense | 252 | 244 | 238 | 236 | 229 | 227 | 220 | 200 | 970 | 875 | 816 |
Provision for finance receivable losses | 293 | 282 | 268 | 286 | 278 | 256 | 260 | 254 | 1,129 | 1,048 | 955 |
Net interest income after provision for finance receivable losses | 562 | 539 | 494 | 434 | 451 | 450 | 425 | 408 | 2,028 | 1,735 | 1,425 |
Other revenues | 162 | 156 | 156 | 148 | 153 | 144 | 140 | 137 | 622 | 574 | 560 |
Other expenses | 380 | 398 | 394 | 380 | 390 | 395 | 522 | 377 | 1,552 | 1,685 | 1,554 |
Income before income taxes | 344 | $ 297 | $ 256 | $ 202 | 214 | $ 199 | $ 43 | $ 168 | 1,098 | 624 | 431 |
Assets | 22,817 | 20,090 | 22,817 | 20,090 | 19,433 | ||||||
Consumer and Insurance | Consumer and Insurance | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 4,114 | 3,677 | 3,305 | ||||||||
Interest expense | 947 | 844 | 765 | ||||||||
Provision for finance receivable losses | 1,105 | 1,047 | 963 | ||||||||
Net interest income after provision for finance receivable losses | 2,062 | 1,786 | 1,577 | ||||||||
Other revenues | 600 | 495 | 547 | ||||||||
Other expenses | 1,494 | 1,494 | 1,448 | ||||||||
Income before income taxes | 1,168 | 787 | 676 | ||||||||
Assets | 20,705 | 17,893 | 20,705 | 17,893 | 16,955 | ||||||
Other | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 9 | 17 | 23 | ||||||||
Interest expense | 5 | 17 | 21 | ||||||||
Provision for finance receivable losses | 0 | (5) | 7 | ||||||||
Net interest income after provision for finance receivable losses | 4 | 5 | (5) | ||||||||
Other revenues | 32 | 27 | 45 | ||||||||
Other expenses | 39 | 163 | 80 | ||||||||
Income before income taxes | (3) | (131) | (40) | ||||||||
Assets | 77 | 120 | 77 | 120 | 293 | ||||||
Segment to GAAP Adjustment | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 4 | (36) | (132) | ||||||||
Interest expense | 18 | 14 | 30 | ||||||||
Provision for finance receivable losses | 24 | 6 | (15) | ||||||||
Net interest income after provision for finance receivable losses | (38) | (56) | (147) | ||||||||
Other revenues | (10) | 52 | (32) | ||||||||
Other expenses | 19 | 28 | 26 | ||||||||
Income before income taxes | (67) | (32) | (205) | ||||||||
Assets | $ 2,035 | $ 2,077 | $ 2,035 | $ 2,077 | $ 2,185 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Restricted cash and restricted cash equivalents | $ 405 | $ 499 | $ 498 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 1,227 | 679 | |
Investment securities | 1,884 | 1,694 | |
Net finance receivables, less allowance for finance receivable losses | 19,319 | 16,734 | |
Finance receivables held for sale | 74 | 103 | |
Restricted cash and restricted cash equivalents | 405 | 499 | |
Other assets | 10 | 16 | |
Liabilities | |||
Long-term debt | 18,509 | 15,041 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 1,227 | 679 | |
Investment securities | 1,884 | 1,694 | |
Net finance receivables, less allowance for finance receivable losses | 17,560 | 15,433 | |
Finance receivables held for sale | 64 | 103 | |
Restricted cash and restricted cash equivalents | 405 | 499 | |
Other assets | 10 | 16 | |
Liabilities | |||
Long-term debt | 17,212 | 15,178 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 1,159 | 618 | |
Investment securities | 45 | 34 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 405 | 499 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 68 | 61 | |
Investment securities | 1,835 | 1,655 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 0 | 1 | |
Liabilities | |||
Long-term debt | 18,509 | 15,041 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 4 | 5 | |
Net finance receivables, less allowance for finance receivable losses | 19,319 | 16,734 | |
Finance receivables held for sale | 74 | 103 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 10 | 15 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment securities: | ||
Available-for-sale securities | $ 1,798 | $ 1,607 |
Other securities | 86 | 87 |
U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 11 | 21 |
Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 92 | 90 |
Certificates of Deposit and Commercial Paper [Member] | ||
Investment securities: | ||
Available-for-sale securities | 63 | |
Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,098 | 997 |
RMBS | ||
Investment securities: | ||
Available-for-sale securities | 217 | 128 |
CMBS | ||
Investment securities: | ||
Available-for-sale securities | 57 | 71 |
CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 85 | 94 |
Level 1 | ||
Assets | ||
Cash equivalents in securities | 1,159 | 618 |
Investment securities: | ||
Total investment securities | 45 | 34 |
Level 2 | ||
Assets | ||
Cash equivalents in securities | 68 | 61 |
Investment securities: | ||
Total investment securities | 1,835 | 1,655 |
Level 3 | ||
Assets | ||
Cash equivalents in securities | 0 | 0 |
Investment securities: | ||
Total investment securities | 4 | 5 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 775 | 426 |
Cash equivalents in securities | 68 | 61 |
Investment securities: | ||
Available-for-sale securities | 1,798 | 1,607 |
Other securities | 86 | 87 |
Total investment securities | 1,884 | 1,694 |
Restricted cash in mutual funds | 403 | 482 |
Total | 3,130 | 2,663 |
Fair Value, Measurements, Recurring | Total bonds | ||
Investment securities: | ||
Other securities | 40 | 46 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 11 | 21 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 92 | 90 |
Fair Value, Measurements, Recurring | Certificates of Deposit and Commercial Paper [Member] | ||
Investment securities: | ||
Available-for-sale securities | 91 | 63 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 147 | 143 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,098 | 997 |
Other securities | 24 | 43 |
Fair Value, Measurements, Recurring | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 217 | 128 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 57 | 71 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 85 | 94 |
Other securities | 14 | 1 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investment securities: | ||
Other securities | 19 | 19 |
Fair Value, Measurements, Recurring | Common stock | ||
Investment securities: | ||
Other securities | 26 | 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 | 775 | 426 |
Cash equivalents in securities | 0 | 0 |
Investment securities: | ||
Available-for-sale securities | 5 | 0 |
Other securities | 40 | 34 |
Total investment securities | 45 | 34 |
Restricted cash in mutual funds | 403 | 482 |
Total | 1,223 | 942 |
Fair Value, Measurements, Recurring | Level 1 | Total bonds | ||
Investment securities: | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of Deposit and Commercial Paper [Member] | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 5 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | ||
Investment securities: | ||
Other securities | 14 | 13 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investment securities: | ||
Other securities | 26 | 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 | 68 | 61 |
Investment securities: | ||
Available-for-sale securities | 1,793 | 1,604 |
Other securities | 42 | 51 |
Total investment securities | 1,835 | 1,655 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,903 | 1,716 |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | ||
Investment securities: | ||
Other securities | 37 | 45 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 11 | 21 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 92 | 90 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of Deposit and Commercial Paper [Member] | ||
Investment securities: | ||
Available-for-sale securities | 91 | 63 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 147 | 143 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 1,093 | 995 |
Other securities | 23 | 42 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 217 | 128 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 57 | 71 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 85 | 93 |
Other securities | 12 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | ||
Investment securities: | ||
Other securities | 5 | 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: | ||
Available-for-sale securities | 0 | 3 |
Other securities | 4 | 2 |
Total investment securities | 4 | 5 |
Restricted cash in mutual funds | 0 | 0 |
Total | 4 | 5 |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | ||
Investment securities: | ||
Other securities | 3 | 1 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of Deposit and Commercial Paper [Member] | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 0 | 2 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 1 |
Other securities | 2 | 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 - Non-R
Fair Value Measurements - Non-Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment Charges | ||||
Finance receivables held for sale | $ 1,157 | $ 1,104 | $ 1,054 | |
Level 1 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | $ 0 | 0 | 0 | |
Level 2 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 0 | 0 | 0 | |
Level 3 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 103 | 74 | 103 | |
Non-recurring basis | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 103 | 64 | 103 | |
Real estate owned | 6 | 6 | 6 | |
Impairment Charges | ||||
Finance receivables held for sale | 16 | 3 | ||
Real estate owned | 3 | 3 | ||
Non-recurring basis | Level 1 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 0 | 0 | 0 | |
Real estate owned | 0 | 0 | 0 | |
Non-recurring basis | Level 2 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 0 | 0 | 0 | |
Real estate owned | 0 | 0 | 0 | |
Non-recurring basis | Level 3 | ||||
Assets and liabilities measured at fair value | ||||
Finance receivables held for sale | 103 | 64 | 103 | |
Real estate owned | $ 6 | $ 6 | $ 6 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures - Schedule of Quantitative Measurements (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Minimum | Discount Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.0417 | 0.0423 |
Minimum | Default Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.1500 | 0.1350 |
Maximum | Discount Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.0850 | 0.0800 |
Maximum | Default Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.6500 | 0.7000 |
Weighted Average | Discount Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.0636 | 0.0572 |
Weighted Average | Default Rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Fair value measurements | 0.3636 | 0.4313 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Debt carried at fair value under the fair value option | $ 0 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 1,107 | $ 1,065 | $ 1,000 | $ 956 | $ 958 | $ 933 | $ 905 | $ 862 | $ 4,127 | $ 3,658 | $ 3,196 |
Interest expense | 252 | 244 | 238 | 236 | 229 | 227 | 220 | 200 | 970 | 875 | 816 |
Provision for finance receivable losses | 293 | 282 | 268 | 286 | 278 | 256 | 260 | 254 | 1,129 | 1,048 | 955 |
Net interest income after provision for finance receivable losses | 562 | 539 | 494 | 434 | 451 | 450 | 425 | 408 | 2,028 | 1,735 | 1,425 |
Other revenues | 162 | 156 | 156 | 148 | 153 | 144 | 140 | 137 | 622 | 574 | 560 |
Other expenses | 380 | 398 | 394 | 380 | 390 | 395 | 522 | 377 | 1,552 | 1,685 | 1,554 |
Income before income taxes | 344 | 297 | 256 | 202 | 214 | 199 | 43 | 168 | 1,098 | 624 | 431 |
Income tax expense (benefit) | 83 | 49 | 62 | 50 | 46 | 51 | 36 | 44 | $ 243 | $ 177 | $ 248 |
Net income | $ 261 | $ 248 | $ 194 | $ 152 | $ 168 | $ 148 | $ 7 | $ 124 | |||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.92 | $ 1.82 | $ 1.43 | $ 1.12 | $ 1.24 | $ 1.09 | $ 0.05 | $ 0.91 | $ 6.28 | $ 3.29 | $ 1.35 |
Diluted (in dollars per share) | $ 1.91 | $ 1.82 | $ 1.42 | $ 1.11 | $ 1.24 | $ 1.09 | $ 0.05 | $ 0.91 | $ 6.27 | $ 3.29 | $ 1.35 |