Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 15, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.01 per share | |
Trading Symbol | OMF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 131,356,199 | |
Entity Central Index Key | 0001584207 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
OMFC | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-06155 | |
Entity Registrant Name | ONEMAIN FINANCE CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0416090 | |
Entity Address, Address Line One | 601 N.W. Second Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | 812 | |
Local Phone Number | 424-8031 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Entity Central Index Key | 0000025598 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 821 | $ 2,272 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,963 | 1,922 |
Net finance receivables (includes loans of consolidated VIEs of $7.7 billion in 2021 and $8.8 billion in 2020) | 18,843 | 18,084 |
Unearned insurance premium and claim reserves | (750) | (771) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $849 million in 2021 and $1.1 billion in 2020) | 2,061 | 2,269 |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,032 | 15,044 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $445 million in 2021 and $441 million in 2020) | 459 | 451 |
Goodwill | 1,437 | 1,422 |
Other intangible assets | 278 | 306 |
Other assets | 973 | 1,054 |
Total assets | 21,963 | 22,471 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $6.9 billion in 2021 and $7.8 billion in 2020) | 17,661 | 17,800 |
Insurance claims and policyholder liabilities | 616 | 621 |
Deferred and accrued taxes | 9 | 45 |
Other liabilities | 556 | 564 |
Total liabilities | 18,842 | 19,030 |
Contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock | 1 | 1 |
Additional paid-in capital | 1,665 | 1,655 |
Accumulated other comprehensive income | 77 | 94 |
Retained earnings | $ 1,554 | $ 1,691 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, at cost; 3,047,844 shares at September 30, 2021 and no shares at December 31, 2020, respectively | $ (176) | $ 0 |
Total shareholders’ equity | 3,121 | 3,441 |
Total liabilities and shareholders’ equity | 21,963 | 22,471 |
OMFC | ||
Assets | ||
Cash and cash equivalents | 798 | 2,272 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,963 | 1,922 |
Net finance receivables (includes loans of consolidated VIEs of $7.7 billion in 2021 and $8.8 billion in 2020) | 18,843 | 18,084 |
Unearned insurance premium and claim reserves | (750) | (771) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $849 million in 2021 and $1.1 billion in 2020) | 2,061 | 2,269 |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,032 | 15,044 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $445 million in 2021 and $441 million in 2020) | 459 | 451 |
Goodwill | 1,437 | 1,422 |
Other intangible assets | 278 | 306 |
Other assets | 972 | 1,054 |
Total assets | 21,939 | 22,471 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $6.9 billion in 2021 and $7.8 billion in 2020) | 17,661 | 17,800 |
Insurance claims and policyholder liabilities | 616 | 621 |
Deferred and accrued taxes | 10 | 47 |
Other liabilities | 556 | 563 |
Total liabilities | 18,843 | 19,031 |
Contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock | 5 | 5 |
Additional paid-in capital | 1,909 | 1,899 |
Accumulated other comprehensive income | 77 | 94 |
Retained earnings | $ 1,105 | $ 1,442 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Total shareholders’ equity | $ 3,096 | $ 3,440 |
Total liabilities and shareholders’ equity | $ 21,939 | $ 22,471 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investment securities, fair value | $ 1,872 | $ 1,847 |
Investment securities, amortized cost basis | 1,788 | 1,728 |
Net finance receivables | 18,843 | 18,084 |
Financing receivable, allowance for credit loss | 2,061 | 2,269 |
Restricted cash and restricted cash equivalents | 459 | 451 |
Long-term debt | 17,661 | 17,800 |
Other liabilities | $ 556 | $ 564 |
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) | 131,453,207 | 134,341,724 |
Common stock, shares outstanding (in shares) | 131,453,207 | 134,341,724 |
Treasury stock, shares (in shares) | 3,047,844 | 0 |
OMFC | ||
Investment securities, fair value | $ 1,900 | $ 1,800 |
Investment securities, amortized cost basis | 1,800 | 1,700 |
Net finance receivables | 18,843 | 18,084 |
Financing receivable, allowance for credit loss | 2,061 | 2,269 |
Restricted cash and restricted cash equivalents | 459 | 451 |
Long-term debt | 17,661 | 17,800 |
Other liabilities | $ 556 | $ 563 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Consolidated VIEs | ||
Net finance receivables | $ 7,731 | $ 8,772 |
Financing receivable, allowance for credit loss | 849 | 1,085 |
Restricted cash and restricted cash equivalents | 445 | 441 |
Long-term debt | 6,924 | 7,789 |
Other liabilities | 13 | 15 |
Consolidated VIEs | OMFC | ||
Net finance receivables | 7,700 | 8,800 |
Financing receivable, allowance for credit loss | 849 | 1,100 |
Restricted cash and restricted cash equivalents | 445 | 441 |
Long-term debt | 6,900 | 7,800 |
Other liabilities | $ 13 | $ 15 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income | $ 1,113 | $ 1,089 | $ 3,244 | $ 3,273 |
Interest expense | 237 | 255 | 703 | 781 |
Net interest income | 876 | 834 | 2,541 | 2,492 |
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 |
Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 |
Other revenues: | ||||
Insurance | 109 | 109 | 323 | 334 |
Investment | 14 | 17 | 47 | 56 |
Net loss on repurchases and repayments of debt | (1) | (38) | (49) | (38) |
Other | 33 | 13 | 75 | 38 |
Total other revenues | 155 | 101 | 396 | 390 |
Other expenses: | ||||
Salaries and benefits | 229 | 186 | 613 | 568 |
Other operating expenses | 155 | 134 | 457 | 425 |
Insurance policy benefits and claims | 45 | 43 | 125 | 201 |
Total other expenses | 429 | 363 | 1,195 | 1,194 |
Income before income taxes | 376 | 341 | 1,386 | 502 |
Income taxes | 88 | 91 | 335 | 131 |
Net income | $ 288 | $ 250 | $ 1,051 | $ 371 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 132,487,234 | 134,321,929 | 133,709,146 | 134,847,170 |
Diluted (in shares) | 132,924,333 | 134,507,549 | 134,096,382 | 134,999,487 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.17 | $ 1.86 | $ 7.86 | $ 2.75 |
Diluted (in dollars per share) | $ 2.17 | $ 1.86 | $ 7.84 | $ 2.75 |
OMFC | ||||
Interest income | $ 1,113 | $ 1,089 | $ 3,244 | $ 3,273 |
Interest expense | 237 | 255 | 703 | 781 |
Net interest income | 876 | 834 | 2,541 | 2,492 |
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 |
Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 |
Other revenues: | ||||
Insurance | 109 | 109 | 323 | 334 |
Investment | 14 | 17 | 47 | 56 |
Net loss on repurchases and repayments of debt | (1) | (38) | (49) | (38) |
Other | 33 | 13 | 75 | 38 |
Total other revenues | 155 | 101 | 396 | 390 |
Other expenses: | ||||
Salaries and benefits | 229 | 186 | 613 | 568 |
Other operating expenses | 155 | 134 | 457 | 425 |
Insurance policy benefits and claims | 45 | 43 | 125 | 201 |
Total other expenses | 429 | 363 | 1,195 | 1,194 |
Income before income taxes | 376 | 341 | 1,386 | 502 |
Income taxes | 88 | 91 | 335 | 131 |
Net income | $ 288 | $ 250 | $ 1,051 | $ 371 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income | $ 288 | $ 250 | $ 1,051 | $ 371 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (9) | 16 | (34) | 49 |
Foreign currency translation adjustments | (2) | 2 | 1 | (3) |
Other | 1 | 0 | 12 | 0 |
Income tax effect: | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 2 | (4) | 8 | (11) |
Foreign currency translation adjustments | 0 | 0 | 0 | 1 |
Other | 0 | 0 | (3) | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (8) | 14 | (16) | 36 |
Net realized losses on available-for-sale securities, net of tax | 0 | 0 | (1) | (1) |
Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | (1) |
Other comprehensive income (loss), net of tax | (8) | 14 | (17) | 35 |
Comprehensive income | 280 | 264 | 1,034 | 406 |
OMFC | ||||
Net income | 288 | 250 | 1,051 | 371 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (9) | 16 | (34) | 49 |
Foreign currency translation adjustments | (2) | 2 | 1 | (3) |
Other | 1 | 0 | 12 | 0 |
Income tax effect: | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 2 | (4) | 8 | (11) |
Foreign currency translation adjustments | 0 | 0 | 0 | 1 |
Other | 0 | 0 | (3) | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (8) | 14 | (16) | 36 |
Net realized losses on available-for-sale securities, net of tax | 0 | 0 | (1) | (1) |
Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | (1) |
Other comprehensive income (loss), net of tax | (8) | 14 | (17) | 35 |
Comprehensive income | $ 280 | $ 264 | $ 1,034 | $ 406 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Net impact of adoption of ASU 2016-13 | [1] | Balance post-adoption | Common Stock | Common StockBalance post-adoption | Additional Paid-in Capital | Additional Paid-in CapitalBalance post-adoption | Total Accumulated Other Comprehensive Income (Loss) | Total Accumulated Other Comprehensive Income (Loss)Balance post-adoption | Retained Earnings | Retained EarningsNet impact of adoption of ASU 2016-13 | [1] | Retained EarningsBalance post-adoption | Treasury Stock | Treasury StockBalance post-adoption | OMFC | OMFCNet impact of adoption of ASU 2016-13 | [2] | OMFCBalance post-adoption | OMFCCommon Stock | OMFCCommon StockBalance post-adoption | OMFCAdditional Paid-in Capital | OMFCAdditional Paid-in CapitalBalance post-adoption | OMFCTotal Accumulated Other Comprehensive Income (Loss) | OMFCTotal Accumulated Other Comprehensive Income (Loss)Balance post-adoption | OMFCRetained Earnings | OMFCRetained EarningsNet impact of adoption of ASU 2016-13 | [2] | OMFCRetained EarningsBalance post-adoption | |||
Balance at beginning of period at Dec. 31, 2019 | $ 4,330 | $ (828) | $ 3,502 | $ 1 | $ 1 | $ 1,689 | $ 1,689 | $ 44 | $ 44 | $ 2,596 | $ (828) | $ 1,768 | $ 0 | $ 0 | $ 4,325 | $ (828) | $ 3,497 | $ 5 | $ 5 | $ 1,888 | $ 1,888 | $ 44 | $ 44 | $ 2,388 | $ (828) | $ 1,560 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Common stock repurchased | [3] | (45) | (45) | ||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 13 | 13 | 13 | 13 | |||||||||||||||||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | (6) | (6) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | 35 | 35 | 35 | 35 | |||||||||||||||||||||||||||||
Cash dividends | (747) | [4] | (747) | [4] | (788) | (788) | |||||||||||||||||||||||||||
Net income | 371 | 371 | 371 | 371 | |||||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 3,123 | 1 | 1,651 | 79 | 1,392 | 0 | 3,122 | 5 | 1,895 | 79 | 1,143 | ||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2020 | 3,171 | 1 | 1,648 | 65 | 1,457 | 0 | 3,170 | 5 | 1,892 | 65 | 1,208 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | 14 | 14 | 14 | 14 | |||||||||||||||||||||||||||||
Cash dividends | (315) | [5] | (315) | [5] | (315) | (315) | |||||||||||||||||||||||||||
Net income | 250 | 250 | 250 | 250 | |||||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 3,123 | 1 | 1,651 | 79 | 1,392 | 0 | 3,122 | 5 | 1,895 | 79 | 1,143 | ||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 3,441 | 1 | 1,655 | 94 | 1,691 | 0 | 3,440 | 5 | 1,899 | 94 | 1,442 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Common stock repurchased | (176) | (176) | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 16 | 16 | 16 | 16 | |||||||||||||||||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | (6) | (6) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | (17) | (17) | (17) | (17) | |||||||||||||||||||||||||||||
Cash dividends | (1,188) | [4] | (1,188) | [4] | (1,388) | (1,388) | |||||||||||||||||||||||||||
Net income | 1,051 | 1,051 | 1,051 | 1,051 | |||||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | 3,121 | 1 | 1,665 | 77 | 1,554 | (176) | 3,096 | 5 | 1,909 | 77 | 1,105 | ||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2021 | 3,537 | 1 | 1,661 | 85 | 1,825 | (35) | 3,530 | 5 | 1,905 | 85 | 1,535 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Common stock repurchased | (141) | (141) | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 4 | 4 | 4 | 4 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | (8) | (8) | (8) | (8) | |||||||||||||||||||||||||||||
Cash dividends | (559) | [5] | (559) | [5] | (718) | (718) | |||||||||||||||||||||||||||
Net income | 288 | 288 | 288 | 288 | |||||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | $ 3,121 | $ 1 | $ 1,665 | $ 77 | $ 1,554 | $ (176) | $ 3,096 | $ 5 | $ 1,909 | $ 77 | $ 1,105 | ||||||||||||||||||||||
[1] | As a result of the adoption of ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for additional information on the adoption of ASU 2016-13. | ||||||||||||||||||||||||||||||||
[2] | As a result of the adoption of ASU 2016-13, on January 1, 2020, we recorded a one-time cumulative reduction to retained earnings, net of tax. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for additional information on the adoption of ASU 2016-13. | ||||||||||||||||||||||||||||||||
[3] | The common stock repurchased was retired during the nine months ended September 30, 2020. | ||||||||||||||||||||||||||||||||
[4] | Cash dividends declared were $8.85 per share and $5.49 per share during the nine months ended September 30, 2021 and 2020, respectively. | ||||||||||||||||||||||||||||||||
[5] | Cash dividends declared were $4.20 per share and $2.33 per share during the three months ended September 30, 2021 and 2020, respectively. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 4.20 | $ 2.33 | $ 8.85 | $ 5.49 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||||
Net income | $ 288 | $ 250 | $ 1,051 | $ 371 |
Reconciling adjustments: | ||||
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 |
Depreciation and amortization | 197 | 196 | ||
Deferred income tax charge (benefit) | 57 | (72) | ||
Net loss on repurchases and repayments of debt | 1 | 38 | 49 | 38 |
Share-based compensation expense, net of forfeitures | 16 | 13 | ||
Other | (34) | 5 | ||
Cash flows due to changes in other assets and other liabilities | (53) | (108) | ||
Net cash provided by operating activities | 1,639 | 1,629 | ||
Cash flows from investing activities | ||||
Net principal originations of finance receivables | (1,738) | (278) | ||
Proceeds from sales of finance receivables | 361 | 0 | ||
Available-for-sale securities purchased | (347) | (341) | ||
Available-for-sale securities called, sold, and matured | 294 | 383 | ||
Other securities purchased | (706) | (11) | ||
Other securities called, sold, and matured | 691 | 11 | ||
Other, net | (54) | (21) | ||
Net cash used for investing activities | (1,499) | (257) | ||
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt, net of issuance costs | 2,168 | 6,445 | ||
Repayment of long-term debt | (2,384) | (6,212) | ||
Cash dividends | (1,185) | (745) | ||
Common stock repurchased | (176) | (45) | ||
Withholding tax on share-based compensation | (6) | (6) | ||
Net cash used for financing activities | (1,583) | (563) | ||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (1,443) | 809 | ||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | ||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,280 | 2,441 | 1,280 | 2,441 |
Supplemental cash flow information | ||||
Cash and cash equivalents | 821 | 1,944 | 821 | 1,944 |
Restricted cash and restricted cash equivalents | 459 | 497 | 459 | 497 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,280 | 2,441 | 1,280 | 2,441 |
OMFC | ||||
Cash flows from operating activities | ||||
Net income | 288 | 250 | 1,051 | 371 |
Reconciling adjustments: | ||||
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 |
Depreciation and amortization | 197 | 196 | ||
Deferred income tax charge (benefit) | 57 | (72) | ||
Net loss on repurchases and repayments of debt | 1 | 38 | 49 | 38 |
Share-based compensation expense, net of forfeitures | 16 | 13 | ||
Other | (34) | 5 | ||
Cash flows due to changes in other assets and other liabilities | (50) | (112) | ||
Net cash provided by operating activities | 1,642 | 1,625 | ||
Cash flows from investing activities | ||||
Net principal originations of finance receivables | (1,738) | (278) | ||
Proceeds from sales of finance receivables | 361 | 0 | ||
Available-for-sale securities purchased | (347) | (341) | ||
Available-for-sale securities called, sold, and matured | 294 | 383 | ||
Other securities purchased | (706) | (11) | ||
Other securities called, sold, and matured | 691 | 11 | ||
Other, net | (53) | (21) | ||
Net cash used for investing activities | (1,498) | (257) | ||
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt, net of issuance costs | 2,168 | 6,445 | ||
Repayment of long-term debt | (2,384) | (6,212) | ||
Cash dividends | (1,388) | (786) | ||
Withholding tax on share-based compensation | (6) | (6) | ||
Net cash used for financing activities | (1,610) | (559) | ||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (1,466) | 809 | ||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | ||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,257 | 2,441 | 1,257 | 2,441 |
Supplemental cash flow information | ||||
Cash and cash equivalents | 798 | 1,944 | 798 | 1,944 |
Restricted cash and restricted cash equivalents | 459 | 497 | 459 | 497 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 1,257 | $ 2,441 | $ 1,257 | $ 2,441 |
Business and Basis of Operation
Business and Basis of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Operations | 1. Business and Basis of Operations OneMain Holdings, Inc. (“OMH”), and its wholly-owned direct subsidiary, OneMain Finance Corporation (“OMFC”) (formerly known as Springleaf Finance Corporation (“SFC”)) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses. Effective July 1, 2020, SFC was renamed to OMFC. The name change did not affect OMFC’s legal entity structure, nor did it have an impact on OMH’s or OMFC’s financial statements. OMFC is used in this report to include references to transactions and arrangements occurring prior to the name change. The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “we,” “us,” or “our.” At September 30, 2021, the Apollo-Värde Group owned approximately 13.4% of OMH’s common stock. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly-owned), and 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 condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report. We follow the same significant accounting policies for our interim reporting. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The amendments in this ASU become effective for the Company beginning January 1, 2023. 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 have selected a vendor for a software solution to meet the new accounting and disclosure requirements of the ASU and 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 | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Finance Receivables | 3. Finance Receivables Our finance receivables consist of personal loans, which are non-revolving, with a fixed rate, fixed terms generally between three Components of our net finance receivables were as follows: (dollars in millions) September 30, 2021 December 31, 2020 Gross finance receivables * $ 18,610 $ 17,860 Unearned points and fees (226) (225) Accrued finance charges 282 299 Deferred origination costs 177 150 Total $ 18,843 $ 18,084 * Gross finance receivables equal the unpaid principal balance of our personal loans. For precompute loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. WHOLE LOAN SALE TRANSACTIONS As of September 30, 2021, we have whole loan sale flow agreements, with remaining terms ranging between one CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. When 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. We stop accruing finance charges and reverse finance charges previously accrued on nonperforming loans. We reversed net accrued finance charges of $18 million and $52 million during the three and nine months ended September 30, 2021, respectively, and $16 million and $66 million during the three and nine months ended September 30, 2020, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual finance receivables totaled $2 million and $10 million during the three and nine months ended September 30, 2021, respectively, and $3 million and $12 million during the three and nine months ended September 30, 2020, respectively. All loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses. The following tables below are a summary of our finance receivables by the year of origination and number of days delinquent, our key credit quality indicator: (dollars in millions) 2021 2020 2019 2018 2017 Prior Total September 30, 2021 Performing Current $ 8,435 $ 4,947 $ 3,283 $ 1,063 $ 270 $ 135 $ 18,133 30-59 days past due 73 84 64 23 8 6 258 60-89 days past due 38 57 40 14 5 3 157 Total performing 8,546 5,088 3,387 1,100 283 144 18,548 Nonperforming (Nonaccrual) 90-179 days past due 36 122 89 30 10 6 293 180 days or more past due — 1 1 — — — 2 Total nonperforming 36 123 90 30 10 6 295 Total $ 8,582 $ 5,211 $ 3,477 $ 1,130 $ 293 $ 150 $ 18,843 (dollars in millions) 2020 2019 2018 2017 2016 Prior Total December 31, 2020 Performing Current $ 8,659 $ 5,691 $ 2,064 $ 651 $ 184 $ 106 $ 17,355 30-59 days past due 72 106 44 18 6 5 251 60-89 days past due 44 72 28 11 4 3 162 Total performing 8,775 5,869 2,136 680 194 114 17,768 Nonperforming (Nonaccrual) 90-179 days past due 62 154 59 22 8 5 310 180 days or more past due 1 3 1 1 — — 6 Total nonperforming 63 157 60 23 8 5 316 Total $ 8,838 $ 6,026 $ 2,196 $ 703 $ 202 $ 119 $ 18,084 TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables were as follows: (dollars in millions) September 30, 2021 December 31, 2020 TDR gross finance receivables $ 652 $ 689 TDR net finance receivables * 656 691 Allowance for TDR finance receivable losses 281 314 * TDR net finance receivables are TDR gross finance receivables net of unearned points and fees, accrued finance charges, and deferred origination costs. TDR average net finance receivables and finance charges recognized on TDR finance receivables were as follows: Three Months Ended Nine Months Ended (dollars in millions) 2021 2020 2021 2020 TDR average net finance receivables $ 665 $ 701 $ 681 692 TDR finance charges recognized 13 13 40 38 Information regarding the new volume of the TDR finance receivables were as follows: Three Months Ended Nine Months Ended (dollars in millions) 2021 2020 2021 2020 Pre-modification TDR net finance receivables $ 105 $ 105 $ 332 $ 392 Post-modification TDR net finance receivables: Rate reduction 72 67 228 242 Other * 33 38 104 150 Total post-modification TDR net finance receivables $ 105 $ 105 $ 332 $ 392 Number of TDR accounts 12,528 13,581 40,727 52,780 * “Other” modifications primarily consist of potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2021 2020 2021 2020 TDR net finance receivables * $ 31 $ 20 $ 88 $ 77 Number of TDR accounts 4,221 2,947 12,147 11,286 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | 4. Allowance for Finance Receivable Losses We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late-stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the estimated lifetime expected credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions. Our current methodology to estimate expected credit losses used the most recent macroeconomic forecasts, which incorporated the impacts and expected recovery from the global outbreak of a novel strain of coronavirus (“COVID-19”) on the U.S. economy. Our forecast leveraged economic projections from an industry leading forecast provider. We also incorporated estimated impacts from known government stimulus measures, the involuntary unemployment insurance coverage of our portfolio, and our borrower assistance efforts. At September 30, 2021, our economic forecast used a reasonable and supportable period of 12 months. The increase in our allowance for finance receivable losses for the three months ended September 30, 2021 was primarily due to growth in our loan portfolio. The decrease in our allowance for finance receivable losses for the nine months ended September 30, 2021 was primarily due to an improved outlook for unemployment and macroeconomic conditions, partially offset by growth in our loan portfolio. In the near-term, we may experience further changes to the macroeconomic assumptions within our forecast which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses. Changes in the allowance for finance receivable losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2021 2020 2021 2020 Balance at beginning of period $ 2,000 $ 2,324 $ 2,269 $ 829 Impact of adoption of ASU 2016-13 * — — — 1,118 Provision for finance receivable losses 226 231 356 1,186 Charge-offs (223) (274) (730) (931) Recoveries 58 43 166 122 Balance at end of period $ 2,061 $ 2,324 $ 2,061 $ 2,324 * As a result of the adoption of ASU 2016-13, on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses and a corresponding cumulative reduction to retained earnings, net of tax. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for additional information on the adoption of ASU 2016-13. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) September 30, 2021 December 31, 2020 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,780 $ 1,955 TDR finance receivables 281 314 Total $ 2,061 $ 2,269 Finance receivables: Collectively evaluated for impairment $ 18,187 $ 17,393 TDR net finance receivables 656 691 Total $ 18,843 $ 18,084 Allowance for finance receivable losses as a percentage of finance receivables 10.94 % 12.55 % |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair September 30, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 14 $ — $ — $ 14 Obligations of states, municipalities, and political subdivisions 80 4 — 84 Commercial paper 28 — — 28 Non-U.S. government and government sponsored entities 143 5 — 148 Corporate debt 1,213 72 (3) 1,282 Mortgage-backed, asset-backed, and collateralized: RMBS 177 4 (1) 180 CMBS 50 2 — 52 CDO/ABS 83 1 — 84 Total $ 1,788 $ 88 $ (4) $ 1,872 December 31, 2020* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 12 $ — $ — $ 12 Obligations of states, municipalities, and political subdivisions 87 5 — 92 Commercial paper 28 — — 28 Non-U.S. government and government sponsored entities 137 9 — 146 Corporate debt 1,124 95 (1) 1,218 Mortgage-backed, asset-backed, and collateralized: RMBS 208 7 — 215 CMBS 55 3 — 58 CDO/ABS 77 2 (1) 78 Total $ 1,728 $ 121 $ (2) $ 1,847 * There was no material allowance for credit losses related to our investment securities as of September 30, 2021 and there was no allowance for credit losses as of December 31, 2020. Interest receivables reported in “Other assets” totaled $13 million and $12 million as of September 30, 2021 and December 31, 2020, respectively. There were no amounts reversed from investment revenue for available-for-sale securities for the three and nine months ended September 30, 2021 and 2020. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 U.S. government and government sponsored entities $ 1 $ — $ — $ — $ 1 $ — Obligations of states, municipalities, and political subdivisions 7 — — — 7 — Commercial paper 1 — — — 1 — Non-U.S. government and government sponsored entities 21 — 1 — 22 — Corporate debt 153 (3) 8 — 161 (3) Mortgage-backed, asset-backed, and collateralized: RMBS 66 (1) — — 66 (1) CDO/ABS 19 — 3 — 22 — Total $ 268 $ (4) $ 12 $ — $ 280 $ (4) December 31, 2020 Obligations of states, municipalities, and political subdivisions $ 2 $ — $ — $ — $ 2 $ — Commercial paper 19 — — — 19 — Non-U.S. government and government sponsored entities 1 — — — 1 — Corporate debt 45 (1) 8 — 53 (1) Mortgage-backed, asset-backed, and collateralized: CMBS 8 — — — 8 — CDO/ABS 17 (1) — — 17 (1) Total $ 92 $ (2) $ 8 $ — $ 100 $ (2) On a lot basis, we had 379 and 148 investment securities in an unrealized loss position at September 30, 2021 and December 31, 2020, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, as of September 30, 2021, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of September 30, 2021, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the three and nine months ended September 30, 2021 and 2020, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three and nine months ended September 30, 2021 and 2020. The proceeds of available-for-sale securities sold or redeemed during the three and nine months ended September 30, 2021 totaled $50 million and $189 million, respectively. The proceeds of available-for-sale securities sold or redeemed during the three and nine months ended September 30, 2020 totaled $74 million and $179 million, respectively. The net realized gains and losses were immaterial during the three and nine months ended September 30, 2021 and 2020. Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2021 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 146 $ 145 Due after 1 year through 5 years 577 548 Due after 5 years through 10 years 658 626 Due after 10 years 175 159 Mortgage-backed, asset-backed, and collateralized securities 316 310 Total $ 1,872 $ 1,788 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 $569 million and $604 million at September 30, 2021 and December 31, 2020, respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) September 30, 2021 December 31, 2020 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ — $ 1 Corporate debt 11 17 Mortgage-backed, asset-backed, and collateralized bonds 28 17 Total bonds 39 35 Preferred stock * 22 13 Common stock * 30 27 Total $ 91 $ 75 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. Net unrealized gains on other securities held were immaterial for the three and nine months ended September 30, 2021 and 2020. Net realized gains and losses on other securities sold or redeemed were immaterial for the three and nine months ended September 30, 2021 and 2020. Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations by period) by type of debt at September 30, 2021 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 0.81% - 6.94% 3.50% - 8.88% 1.88 % Remainder of 2021 $ — $ — $ — $ — 2022 — 992 — 992 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025 — 1,835 — 1,835 2026-2067 — 5,349 350 5,699 Securitizations (c) 6,955 — — 6,955 Total principal maturities $ 6,955 $ 10,651 $ 350 $ 17,956 Total carrying amount $ 6,924 $ 10,565 $ 172 $ 17,661 Debt issuance costs (d) $ (28) $ (89) $ — $ (117) (a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at September 30, 2021. (c) Securitizations 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 September 30, 2021, there were no amounts drawn under our revolving conduit facilities. See Note 7 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 $33 million at September 30, 2021 and are reported in “Other assets.” Redemption of 7.75% Senior Notes Due 2021 On December 9, 2020, OMFC issued a notice of full redemption of its 7.75% Senior Notes due 2021. On January 8, 2021, OMFC paid a net aggregate amount of $681 million, inclusive of accrued interest and premiums, to complete the redemption. In connection with the redemption, we recognized $47 million of net loss on repurchases and repayments of debt in the first quarter of 2021. Social Bond Offering - Issuance of 3.50% Senior Notes Due 2027 OMFC issued its inaugural social bond offering on June 22, 2021 for a total of $750 million aggregate principal amount of 3.50% Senior Notes due 2027 (the “Social Bond”) under the Base Indenture, as supplemented by the Twelfth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. 3.875% Senior Notes Due 2028 Offering |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 7. Variable Interest Entities CONSOLIDATED VIES We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as secured borrowings. See Note 3 and Note 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more detail regarding VIEs. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows: (dollars in millions) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 7,731 8,772 Allowance for finance receivable losses 849 1,085 Restricted cash and restricted cash equivalents 445 441 Other assets 33 33 Liabilities Long-term debt $ 6,924 $ 7,789 Other liabilities 13 15 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 $72 million and $225 million during the three and nine months ended September 30, 2021, respectively, compared to $84 million and $256 million during the three and nine months ended September 30, 2020, respectively. SECURITIZED BORROWINGS Each of our outstanding securitizations contain a revolving period ranging from two REVOLVING CONDUIT FACILITIES We had access to 14 revolving conduit facilities with a total maximum borrowing capacity of $7.3 billion as of September 30, 2021. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of September 30, 2021. Amounts drawn on these facilities are collateralized by our personal loans. |
Insurance
Insurance | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Insurance | 8. Insurance Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): At or for the (dollars in millions) 2021 2020 Balance at beginning of period $ 148 $ 117 Less reinsurance recoverables (3) (4) Net balance at beginning of period 145 113 Additions for losses and loss adjustment expenses incurred to: Current year 158 221 Prior years * (19) (10) Total 139 211 Reductions for losses and loss adjustment expenses paid related to: Current year (91) (107) Prior years (79) (60) Total (170) (167) Net balance at end of period 114 157 Plus reinsurance recoverables 3 3 Balance at end of period $ 117 $ 160 * Reflects (i) a redundancy in the prior years’ net reserves of $19 million at September 30, 2021, primarily due to favorable development of credit disability and unemployment claims during the period, and (ii) a redundancy in the prior years’ net reserves of $10 million at September 30, 2020, primarily due to a favorable development of credit life, term life, and credit disability claims during the period. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share (OMH Only) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share (OMH Only) | 9. Capital Stock and Earnings Per Share (OMH Only) CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance. Changes in OMH shares of common stock issued and outstanding were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance at beginning of period 133,884,043 134,319,171 134,341,724 136,101,156 Common stock issued 4,653 3,842 159,327 253,555 Common stock repurchased * (2,435,489) — (3,047,844) (2,031,698) Balance at end of period 131,453,207 134,323,013 131,453,207 134,323,013 * During the three and nine months ended September 30, 2021, the common stock repurchased were held in treasury. During the nine months ended September 30, 2020, the common stock repurchased was retired. EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2021 2020 2021 2020 Numerator (basic and diluted): Net income $ 288 $ 250 $ 1,051 $ 371 Denominator: Weighted average number of shares outstanding (basic) 132,487,234 134,321,929 133,709,146 134,847,170 Effect of dilutive securities * 437,099 185,620 387,236 152,317 Weighted average number of shares outstanding (diluted) 132,924,333 134,507,549 134,096,382 134,999,487 Earnings per share: Basic $ 2.17 $ 1.86 $ 7.86 $ 2.75 Diluted $ 2.17 $ 1.86 $ 7.84 $ 2.75 * We have excluded weighted-average unvested restricted stock units totaling 491,541 and 256,034 for the three months ended September 30, 2021 and 2020, respectively, and 322,430 and 303,913 for the nine months ended September 30, 2021 and 2020, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future. Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 10. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Other (b) Total Three Months Ended September 30, 2021 Balance at beginning of period $ 71 $ 1 $ 5 $ 8 $ 85 Other comprehensive income (loss) before reclassifications (7) — (2) 1 (8) Balance at end of period $ 64 $ 1 $ 3 $ 9 $ 77 Three Months Ended September 30, 2020 Balance at beginning of period $ 66 $ 3 $ (4) $ — $ 65 Other comprehensive income before reclassifications 12 — 2 — 14 Balance at end of period $ 78 $ 3 $ (2) $ — $ 79 Nine Months Ended September 30, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (26) — 1 9 (16) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 64 $ 1 $ 3 $ 9 $ 77 Nine Months Ended September 30, 2020 Balance at beginning of period $ 41 $ 3 $ — $ — $ 44 Other comprehensive income (loss) before reclassifications 38 — (2) — 36 Reclassification adjustments from accumulated other comprehensive income (1) — — (1) Balance at end of period $ 78 $ 3 $ (2) $ — $ 79 (a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2021. There were no available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2020. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three and nine months ended September 30, 2021 and 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes We had a net deferred tax asset of $354 million and $405 million at September 30, 2021 and December 31, 2020, respectively. The decrease in our net deferred tax asset of $51 million was primarily due to the tax effect of the decrease in the allowance for finance receivable losses and the tax amortization of goodwill. We follow the guidance of ASC 740, Income Taxes , for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur. The effective tax rate for the nine months ended September 30, 2021 was 24.2%, compared to 26.1% for the same period in 2020. The effective tax rate for the nine months ended September 30, 2021 and 2020 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes. We are under examination by various states for the years 2017 to 2018. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $8 million at September 30, 2021 and $10 million at December 31, 2020. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. During 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Consolidated Appropriations Act of 2021 (the “CAA”) were signed into law. During 2021, the American Rescue Plan Act of 2021 (the “ARPA”) was signed into law. Among other things, the provisions of these laws relate to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, and technical corrections to tax depreciation methods for qualified improvement property. Based on our review, we have determined the CARES Act, the CAA, and the ARPA will not have a material impact on our consolidated financial statements. We will continue to monitor legislative developments related to the COVID-19 pandemic. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 12. Contingencies LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information At September 30, 2021, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans. The accounting policies of the C&I segment are the same as those disclosed in Note 3 and Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. 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 Three Months Ended September 30, 2021 Interest income $ 1,111 $ 1 $ 1 $ 1,113 Interest expense 235 1 1 237 Provision for finance receivable losses 224 — 2 226 Net interest income after provision for finance receivable losses 652 — (2) 650 Other revenues 151 4 — 155 Other expenses 415 5 9 429 Income (loss) before income tax expense (benefit) $ 388 $ (1) $ (11) $ 376 Three Months Ended September 30, 2020 Interest income $ 1,086 $ 1 $ 2 $ 1,089 Interest expense 250 1 4 255 Provision for finance receivable losses 232 — (1) 231 Net interest income after provision for finance receivable losses 604 — (1) 603 Other revenues 99 4 (2) 101 Other expenses 352 6 5 363 Income (loss) before income tax expense (benefit) $ 351 $ (2) $ (8) $ 341 (dollars in millions) Consumer Other Segment to Consolidated At or for the Nine Months Ended September 30, 2021 Interest income $ 3,237 $ 4 $ 3 $ 3,244 Interest expense 698 3 2 703 Provision for finance receivable losses 351 — 5 356 Net interest income after provision for finance receivable losses 2,188 1 (4) 2,185 Other revenues 395 10 (9) 396 Other expenses 1,154 17 24 1,195 Income (loss) before income tax expense (benefit) $ 1,429 $ (6) $ (37) $ 1,386 Assets $ 19,897 $ 44 $ 2,022 $ 21,963 At or for the Nine Months Ended September 30, 2020 Interest income $ 3,260 $ 4 $ 9 $ 3,273 Interest expense 765 3 13 781 Provision for finance receivable losses 1,184 — 2 1,186 Net interest income after provision for finance receivable losses 1,311 1 (6) 1,306 Other revenues 380 12 (2) 390 Other expenses 1,161 18 15 1,194 Income (loss) before income tax expense (benefit) $ 530 $ (5) $ (23) $ 502 Assets $ 19,743 $ 63 $ 2,051 $ 21,857 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements The accounting policies of our fair value measurements are the same as those disclosed in Note 3 and Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. 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 September 30, 2021 Assets Cash and cash equivalents $ 821 $ — $ — $ 821 $ 821 Investment securities 56 1,901 6 1,963 1,963 Net finance receivables, less allowance for finance receivable losses — — 19,845 19,845 16,782 Restricted cash and restricted cash equivalents 459 — — 459 459 Other assets * — — 53 53 49 Liabilities Long-term debt $ — $ 18,933 $ — $ 18,933 $ 17,661 December 31, 2020 Assets Cash and cash equivalents $ 2,255 $ 17 $ — $ 2,272 $ 2,272 Investment securities 44 1,870 8 1,922 1,922 Net finance receivables, less allowance for finance receivable losses — — 18,629 18,629 15,815 Restricted cash and restricted cash equivalents 451 — — 451 451 Other assets * — 2 60 62 62 Liabilities Long-term debt $ — $ 19,426 $ — $ 19,426 $ 17,800 * Other assets at September 30, 2021 and December 31, 2020 primarily consists of finance receivables held for sale. FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 September 30, 2021 Assets Cash equivalents in mutual funds $ 204 $ — $ — $ 204 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 14 — 14 Obligations of states, municipalities, and political subdivisions — 84 — 84 Commercial paper — 28 — 28 Non-U.S. government and government sponsored entities — 148 — 148 Corporate debt 5 1,273 4 1,282 RMBS — 180 — 180 CMBS — 52 — 52 CDO/ABS — 84 — 84 Total available-for-sale securities 5 1,863 4 1,872 Other securities Bonds: Corporate debt — 10 1 11 RMBS — 1 — 1 CDO/ABS — 27 — 27 Total bonds — 38 1 39 Preferred stock 22 — — 22 Common stock 29 — 1 30 Total other securities 51 38 2 91 Total investment securities 56 1,901 6 1,963 Restricted cash equivalents in mutual funds 450 — — 450 Total $ 710 $ 1,901 $ 6 $ 2,617 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2020 Assets Cash equivalents in mutual funds $ 2,018 $ — $ — $ 2,018 Cash equivalents in securities — 17 — 17 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 12 — 12 Obligations of states, municipalities, and political subdivisions — 92 — 92 Certificates of deposit and commercial paper — 28 — 28 Non-U.S. government and government sponsored entities — 146 — 146 Corporate debt 5 1,207 6 1,218 RMBS — 215 — 215 CMBS — 58 — 58 CDO/ABS — 78 — 78 Total available-for-sale securities 5 1,836 6 1,847 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 16 1 17 CDO/ABS — 17 — 17 Total bonds — 34 1 35 Preferred stock 13 — — 13 Common stock 26 — 1 27 Total other securities 39 34 2 75 Total investment securities 44 1,870 8 1,922 Restricted cash equivalents in mutual funds 441 — — 441 Total $ 2,503 $ 1,887 $ 8 $ 4,398 Due to the insignificant activity within the Level 3 assets during the three and nine months ended September 30, 2021 and 2020, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three and nine months ended September 30, 2021 and 2020. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATIONWe prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. |
CONSOLIDATION | 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. |
ESTIMATES | We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. |
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The amendments in this ASU become effective for the Company beginning January 1, 2023. 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 have selected a vendor for a software solution to meet the new accounting and disclosure requirements of the ASU and 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 (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of our net finance receivables were as follows: (dollars in millions) September 30, 2021 December 31, 2020 Gross finance receivables * $ 18,610 $ 17,860 Unearned points and fees (226) (225) Accrued finance charges 282 299 Deferred origination costs 177 150 Total $ 18,843 $ 18,084 * Gross finance receivables equal the unpaid principal balance of our personal loans. For precompute loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. |
Summary of net finance receivables by type and by days delinquent | The following tables below are a summary of our finance receivables by the year of origination and number of days delinquent, our key credit quality indicator: (dollars in millions) 2021 2020 2019 2018 2017 Prior Total September 30, 2021 Performing Current $ 8,435 $ 4,947 $ 3,283 $ 1,063 $ 270 $ 135 $ 18,133 30-59 days past due 73 84 64 23 8 6 258 60-89 days past due 38 57 40 14 5 3 157 Total performing 8,546 5,088 3,387 1,100 283 144 18,548 Nonperforming (Nonaccrual) 90-179 days past due 36 122 89 30 10 6 293 180 days or more past due — 1 1 — — — 2 Total nonperforming 36 123 90 30 10 6 295 Total $ 8,582 $ 5,211 $ 3,477 $ 1,130 $ 293 $ 150 $ 18,843 (dollars in millions) 2020 2019 2018 2017 2016 Prior Total December 31, 2020 Performing Current $ 8,659 $ 5,691 $ 2,064 $ 651 $ 184 $ 106 $ 17,355 30-59 days past due 72 106 44 18 6 5 251 60-89 days past due 44 72 28 11 4 3 162 Total performing 8,775 5,869 2,136 680 194 114 17,768 Nonperforming (Nonaccrual) 90-179 days past due 62 154 59 22 8 5 310 180 days or more past due 1 3 1 1 — — 6 Total nonperforming 63 157 60 23 8 5 316 Total $ 8,838 $ 6,026 $ 2,196 $ 703 $ 202 $ 119 $ 18,084 |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) September 30, 2021 December 31, 2020 TDR gross finance receivables $ 652 $ 689 TDR net finance receivables * 656 691 Allowance for TDR finance receivable losses 281 314 * TDR net finance receivables are TDR gross finance 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 finance receivables and finance charges recognized on TDR finance receivables were as follows: Three Months Ended Nine Months Ended (dollars in millions) 2021 2020 2021 2020 TDR average net finance receivables $ 665 $ 701 $ 681 692 TDR finance charges recognized 13 13 40 38 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables were as follows: Three Months Ended Nine Months Ended (dollars in millions) 2021 2020 2021 2020 Pre-modification TDR net finance receivables $ 105 $ 105 $ 332 $ 392 Post-modification TDR net finance receivables: Rate reduction 72 67 228 242 Other * 33 38 104 150 Total post-modification TDR net finance receivables $ 105 $ 105 $ 332 $ 392 Number of TDR accounts 12,528 13,581 40,727 52,780 * “Other” modifications primarily consist of 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 | Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2021 2020 2021 2020 TDR net finance receivables * $ 31 $ 20 $ 88 $ 77 Number of TDR accounts 4,221 2,947 12,147 11,286 * 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) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2021 2020 2021 2020 Balance at beginning of period $ 2,000 $ 2,324 $ 2,269 $ 829 Impact of adoption of ASU 2016-13 * — — — 1,118 Provision for finance receivable losses 226 231 356 1,186 Charge-offs (223) (274) (730) (931) Recoveries 58 43 166 122 Balance at end of period $ 2,061 $ 2,324 $ 2,061 $ 2,324 |
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) September 30, 2021 December 31, 2020 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,780 $ 1,955 TDR finance receivables 281 314 Total $ 2,061 $ 2,269 Finance receivables: Collectively evaluated for impairment $ 18,187 $ 17,393 TDR net finance receivables 656 691 Total $ 18,843 $ 18,084 Allowance for finance receivable losses as a percentage of finance receivables 10.94 % 12.55 % |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair September 30, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 14 $ — $ — $ 14 Obligations of states, municipalities, and political subdivisions 80 4 — 84 Commercial paper 28 — — 28 Non-U.S. government and government sponsored entities 143 5 — 148 Corporate debt 1,213 72 (3) 1,282 Mortgage-backed, asset-backed, and collateralized: RMBS 177 4 (1) 180 CMBS 50 2 — 52 CDO/ABS 83 1 — 84 Total $ 1,788 $ 88 $ (4) $ 1,872 December 31, 2020* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 12 $ — $ — $ 12 Obligations of states, municipalities, and political subdivisions 87 5 — 92 Commercial paper 28 — — 28 Non-U.S. government and government sponsored entities 137 9 — 146 Corporate debt 1,124 95 (1) 1,218 Mortgage-backed, asset-backed, and collateralized: RMBS 208 7 — 215 CMBS 55 3 — 58 CDO/ABS 77 2 (1) 78 Total $ 1,728 $ 121 $ (2) $ 1,847 * There was no material allowance for credit losses related to our investment securities as of September 30, 2021 and there was no allowance for credit losses as of December 31, 2020. |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 U.S. government and government sponsored entities $ 1 $ — $ — $ — $ 1 $ — Obligations of states, municipalities, and political subdivisions 7 — — — 7 — Commercial paper 1 — — — 1 — Non-U.S. government and government sponsored entities 21 — 1 — 22 — Corporate debt 153 (3) 8 — 161 (3) Mortgage-backed, asset-backed, and collateralized: RMBS 66 (1) — — 66 (1) CDO/ABS 19 — 3 — 22 — Total $ 268 $ (4) $ 12 $ — $ 280 $ (4) December 31, 2020 Obligations of states, municipalities, and political subdivisions $ 2 $ — $ — $ — $ 2 $ — Commercial paper 19 — — — 19 — Non-U.S. government and government sponsored entities 1 — — — 1 — Corporate debt 45 (1) 8 — 53 (1) Mortgage-backed, asset-backed, and collateralized: CMBS 8 — — — 8 — CDO/ABS 17 (1) — — 17 (1) Total $ 92 $ (2) $ 8 $ — $ 100 $ (2) |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2021 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 146 $ 145 Due after 1 year through 5 years 577 548 Due after 5 years through 10 years 658 626 Due after 10 years 175 159 Mortgage-backed, asset-backed, and collateralized securities 316 310 Total $ 1,872 $ 1,788 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) September 30, 2021 December 31, 2020 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ — $ 1 Corporate debt 11 17 Mortgage-backed, asset-backed, and collateralized bonds 28 17 Total bonds 39 35 Preferred stock * 22 13 Common stock * 30 27 Total $ 91 $ 75 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of principal maturities of long-term debt | Principal maturities of long-term debt (excluding projected repayments on securitizations by period) by type of debt at September 30, 2021 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 0.81% - 6.94% 3.50% - 8.88% 1.88 % Remainder of 2021 $ — $ — $ — $ — 2022 — 992 — 992 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025 — 1,835 — 1,835 2026-2067 — 5,349 350 5,699 Securitizations (c) 6,955 — — 6,955 Total principal maturities $ 6,955 $ 10,651 $ 350 $ 17,956 Total carrying amount $ 6,924 $ 10,565 $ 172 $ 17,661 Debt issuance costs (d) $ (28) $ (89) $ — $ (117) (a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at September 30, 2021. (c) Securitizations 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 September 30, 2021, there were no amounts drawn under our revolving conduit facilities. See Note 7 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 $33 million at September 30, 2021 and are reported in “Other assets.” |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 7,731 8,772 Allowance for finance receivable losses 849 1,085 Restricted cash and restricted cash equivalents 445 441 Other assets 33 33 Liabilities Long-term debt $ 6,924 $ 7,789 Other liabilities 13 15 |
Insurance (Tables)
Insurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Changes in the reserve for unpaid claims and loss adjustment expenses | Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): At or for the (dollars in millions) 2021 2020 Balance at beginning of period $ 148 $ 117 Less reinsurance recoverables (3) (4) Net balance at beginning of period 145 113 Additions for losses and loss adjustment expenses incurred to: Current year 158 221 Prior years * (19) (10) Total 139 211 Reductions for losses and loss adjustment expenses paid related to: Current year (91) (107) Prior years (79) (60) Total (170) (167) Net balance at end of period 114 157 Plus reinsurance recoverables 3 3 Balance at end of period $ 117 $ 160 * Reflects (i) a redundancy in the prior years’ net reserves of $19 million at September 30, 2021, primarily due to favorable development of credit disability and unemployment claims during the period, and (ii) a redundancy in the prior years’ net reserves of $10 million at September 30, 2020, primarily due to a favorable development of credit life, term life, and credit disability claims during the period. |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (OMH Only) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of changes in shares issued and outstanding | Changes in OMH shares of common stock issued and outstanding were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance at beginning of period 133,884,043 134,319,171 134,341,724 136,101,156 Common stock issued 4,653 3,842 159,327 253,555 Common stock repurchased * (2,435,489) — (3,047,844) (2,031,698) Balance at end of period 131,453,207 134,323,013 131,453,207 134,323,013 * During the three and nine months ended September 30, 2021, the common stock repurchased were held in treasury. During the nine months ended September 30, 2020, the common stock repurchased was retired. |
Computation of earnings per share | The computation of earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2021 2020 2021 2020 Numerator (basic and diluted): Net income $ 288 $ 250 $ 1,051 $ 371 Denominator: Weighted average number of shares outstanding (basic) 132,487,234 134,321,929 133,709,146 134,847,170 Effect of dilutive securities * 437,099 185,620 387,236 152,317 Weighted average number of shares outstanding (diluted) 132,924,333 134,507,549 134,096,382 134,999,487 Earnings per share: Basic $ 2.17 $ 1.86 $ 7.86 $ 2.75 Diluted $ 2.17 $ 1.86 $ 7.84 $ 2.75 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes, net of tax, in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Other (b) Total Three Months Ended September 30, 2021 Balance at beginning of period $ 71 $ 1 $ 5 $ 8 $ 85 Other comprehensive income (loss) before reclassifications (7) — (2) 1 (8) Balance at end of period $ 64 $ 1 $ 3 $ 9 $ 77 Three Months Ended September 30, 2020 Balance at beginning of period $ 66 $ 3 $ (4) $ — $ 65 Other comprehensive income before reclassifications 12 — 2 — 14 Balance at end of period $ 78 $ 3 $ (2) $ — $ 79 Nine Months Ended September 30, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (26) — 1 9 (16) Reclassification adjustments from accumulated other comprehensive income (1) — — — (1) Balance at end of period $ 64 $ 1 $ 3 $ 9 $ 77 Nine Months Ended September 30, 2020 Balance at beginning of period $ 41 $ 3 $ — $ — $ 44 Other comprehensive income (loss) before reclassifications 38 — (2) — 36 Reclassification adjustments from accumulated other comprehensive income (1) — — (1) Balance at end of period $ 78 $ 3 $ (2) $ — $ 79 (a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2021. There were no available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2020. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Three Months Ended September 30, 2021 Interest income $ 1,111 $ 1 $ 1 $ 1,113 Interest expense 235 1 1 237 Provision for finance receivable losses 224 — 2 226 Net interest income after provision for finance receivable losses 652 — (2) 650 Other revenues 151 4 — 155 Other expenses 415 5 9 429 Income (loss) before income tax expense (benefit) $ 388 $ (1) $ (11) $ 376 Three Months Ended September 30, 2020 Interest income $ 1,086 $ 1 $ 2 $ 1,089 Interest expense 250 1 4 255 Provision for finance receivable losses 232 — (1) 231 Net interest income after provision for finance receivable losses 604 — (1) 603 Other revenues 99 4 (2) 101 Other expenses 352 6 5 363 Income (loss) before income tax expense (benefit) $ 351 $ (2) $ (8) $ 341 (dollars in millions) Consumer Other Segment to Consolidated At or for the Nine Months Ended September 30, 2021 Interest income $ 3,237 $ 4 $ 3 $ 3,244 Interest expense 698 3 2 703 Provision for finance receivable losses 351 — 5 356 Net interest income after provision for finance receivable losses 2,188 1 (4) 2,185 Other revenues 395 10 (9) 396 Other expenses 1,154 17 24 1,195 Income (loss) before income tax expense (benefit) $ 1,429 $ (6) $ (37) $ 1,386 Assets $ 19,897 $ 44 $ 2,022 $ 21,963 At or for the Nine Months Ended September 30, 2020 Interest income $ 3,260 $ 4 $ 9 $ 3,273 Interest expense 765 3 13 781 Provision for finance receivable losses 1,184 — 2 1,186 Net interest income after provision for finance receivable losses 1,311 1 (6) 1,306 Other revenues 380 12 (2) 390 Other expenses 1,161 18 15 1,194 Income (loss) before income tax expense (benefit) $ 530 $ (5) $ (23) $ 502 Assets $ 19,743 $ 63 $ 2,051 $ 21,857 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Total (dollars in millions) Level 1 Level 2 Level 3 September 30, 2021 Assets Cash and cash equivalents $ 821 $ — $ — $ 821 $ 821 Investment securities 56 1,901 6 1,963 1,963 Net finance receivables, less allowance for finance receivable losses — — 19,845 19,845 16,782 Restricted cash and restricted cash equivalents 459 — — 459 459 Other assets * — — 53 53 49 Liabilities Long-term debt $ — $ 18,933 $ — $ 18,933 $ 17,661 December 31, 2020 Assets Cash and cash equivalents $ 2,255 $ 17 $ — $ 2,272 $ 2,272 Investment securities 44 1,870 8 1,922 1,922 Net finance receivables, less allowance for finance receivable losses — — 18,629 18,629 15,815 Restricted cash and restricted cash equivalents 451 — — 451 451 Other assets * — 2 60 62 62 Liabilities Long-term debt $ — $ 19,426 $ — $ 19,426 $ 17,800 |
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 September 30, 2021 Assets Cash equivalents in mutual funds $ 204 $ — $ — $ 204 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 14 — 14 Obligations of states, municipalities, and political subdivisions — 84 — 84 Commercial paper — 28 — 28 Non-U.S. government and government sponsored entities — 148 — 148 Corporate debt 5 1,273 4 1,282 RMBS — 180 — 180 CMBS — 52 — 52 CDO/ABS — 84 — 84 Total available-for-sale securities 5 1,863 4 1,872 Other securities Bonds: Corporate debt — 10 1 11 RMBS — 1 — 1 CDO/ABS — 27 — 27 Total bonds — 38 1 39 Preferred stock 22 — — 22 Common stock 29 — 1 30 Total other securities 51 38 2 91 Total investment securities 56 1,901 6 1,963 Restricted cash equivalents in mutual funds 450 — — 450 Total $ 710 $ 1,901 $ 6 $ 2,617 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2020 Assets Cash equivalents in mutual funds $ 2,018 $ — $ — $ 2,018 Cash equivalents in securities — 17 — 17 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 12 — 12 Obligations of states, municipalities, and political subdivisions — 92 — 92 Certificates of deposit and commercial paper — 28 — 28 Non-U.S. government and government sponsored entities — 146 — 146 Corporate debt 5 1,207 6 1,218 RMBS — 215 — 215 CMBS — 58 — 58 CDO/ABS — 78 — 78 Total available-for-sale securities 5 1,836 6 1,847 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 16 1 17 CDO/ABS — 17 — 17 Total bonds — 34 1 35 Preferred stock 13 — — 13 Common stock 26 — 1 27 Total other securities 39 34 2 75 Total investment securities 44 1,870 8 1,922 Restricted cash equivalents in mutual funds 441 — — 441 Total $ 2,503 $ 1,887 $ 8 $ 4,398 |
Business and Basis of Operati_2
Business and Basis of Operations (Details) | Sep. 30, 2021 |
Majority Shareholder | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage by Initial Stockholder | 13.40% |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Whole loan sale flow agreement, quarterly loans sold | $ 180 | $ 180 | ||
Proceeds from sale of gross finance receivables | 160 | 325 | ||
Gain on sale of financing receivables | $ 15 | $ 30 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables, original term | 3 years | |||
Whole loan sale flow agreement, commitment period | 1 year | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables, original term | 6 years | |||
Whole loan sale flow agreement, commitment period | 2 years | |||
Unlikely to be Collected Financing Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Threshold period past due | 60 days | 60 days | ||
Nonperforming (Nonaccrual) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Threshold period past due | 90 days | 90 days | ||
Reversal of net accrued finance charges | $ 18 | $ 16 | $ 52 | $ 66 |
Interest income | $ 2 | $ 3 | $ 10 | $ 12 |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Gross finance receivables | $ 18,610 | $ 17,860 |
Unearned points and fees | (226) | (225) |
Accrued finance charges | 282 | 299 |
Deferred origination costs | 177 | 150 |
Total | $ 18,843 | $ 18,084 |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Delinquency by finance receivables type | ||
Year one | $ 8,582 | $ 8,838 |
Year two | 5,211 | 6,026 |
Year three | 3,477 | 2,196 |
Year four | 1,130 | 703 |
Year five | 293 | 202 |
Prior | 150 | 119 |
Total | 18,843 | 18,084 |
Performing | ||
Delinquency by finance receivables type | ||
Year one | 8,546 | 8,775 |
Year two | 5,088 | 5,869 |
Year three | 3,387 | 2,136 |
Year four | 1,100 | 680 |
Year five | 283 | 194 |
Prior | 144 | 114 |
Total | 18,548 | 17,768 |
Performing | Current | ||
Delinquency by finance receivables type | ||
Year one | 8,435 | 8,659 |
Year two | 4,947 | 5,691 |
Year three | 3,283 | 2,064 |
Year four | 1,063 | 651 |
Year five | 270 | 184 |
Prior | 135 | 106 |
Total | 18,133 | 17,355 |
Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
Year one | 73 | 72 |
Year two | 84 | 106 |
Year three | 64 | 44 |
Year four | 23 | 18 |
Year five | 8 | 6 |
Prior | 6 | 5 |
Total | 258 | 251 |
Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
Year one | 38 | 44 |
Year two | 57 | 72 |
Year three | 40 | 28 |
Year four | 14 | 11 |
Year five | 5 | 4 |
Prior | 3 | 3 |
Total | 157 | 162 |
Nonperforming (Nonaccrual) | ||
Delinquency by finance receivables type | ||
Year one | 36 | 63 |
Year two | 123 | 157 |
Year three | 90 | 60 |
Year four | 30 | 23 |
Year five | 10 | 8 |
Prior | 6 | 5 |
Total | 295 | 316 |
Nonperforming (Nonaccrual) | 90-179 days past due | ||
Delinquency by finance receivables type | ||
Year one | 36 | 62 |
Year two | 122 | 154 |
Year three | 89 | 59 |
Year four | 30 | 22 |
Year five | 10 | 8 |
Prior | 6 | 5 |
Total | 293 | 310 |
Nonperforming (Nonaccrual) | 180 days or more past due | ||
Delinquency by finance receivables type | ||
Year one | 0 | 1 |
Year two | 1 | 3 |
Year three | 1 | 1 |
Year four | 0 | 1 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | $ 2 | $ 6 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
TDR gross finance receivables | $ 652 | $ 689 |
TDR net finance receivables | 656 | 691 |
Allowance for TDR finance receivable losses | $ 281 | $ 314 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables HFI and HFS and Finance Charges Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Receivables [Abstract] | ||||
TDR average net finance receivables | $ 665 | $ 701 | $ 681 | $ 692 |
TDR finance charges recognized | $ 13 | $ 13 | $ 40 | $ 38 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Pre-modification TDR net finance receivables | $ 105 | $ 105 | $ 332 | $ 392 |
Total post-modification TDR net finance receivables | $ 105 | $ 105 | $ 332 | $ 392 |
Number of TDR accounts | account | 12,528 | 13,581 | 40,727 | 52,780 |
Rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 72 | $ 67 | $ 228 | $ 242 |
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 33 | $ 38 | $ 104 | $ 150 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | |
Receivables [Abstract] | ||||
TDR net finance receivables | $ | $ 31 | $ 20 | $ 88 | $ 77 |
Number of TDR accounts | account | 4,221 | 2,947 | 12,147 | 11,286 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | $ 2,000 | $ 2,324 | $ 2,269 | $ 829 |
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 |
Charge-offs | (223) | (274) | (730) | (931) |
Recoveries | 58 | 43 | 166 | 122 |
Balance at end of period | $ 2,061 | $ 2,324 | $ 2,061 | 2,324 |
Net impact of adoption of ASU 2016-13 | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | $ 1,118 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for finance receivable losses: | ||||||
Collectively evaluated for impairment | $ 1,780 | $ 1,955 | ||||
TDR finance receivables | 281 | 314 | ||||
Total | 2,061 | 2,269 | $ 2,000 | $ 2,324 | $ 2,324 | $ 829 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 18,187 | 17,393 | ||||
TDR net finance receivables | 656 | 691 | ||||
Net finance receivables | $ 18,843 | $ 18,084 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 10.94% | 12.55% |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,788,000,000 | $ 1,728,000,000 |
Unrealized Gains | 88,000,000 | 121,000,000 |
Unrealized Losses | (4,000,000) | (2,000,000) |
Fair Value | 1,872,000,000 | 1,847,000,000 |
Allowance for credit loss | 0 | 0 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 14,000,000 | 12,000,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 14,000,000 | 12,000,000 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 80,000,000 | 87,000,000 |
Unrealized Gains | 4,000,000 | 5,000,000 |
Unrealized Losses | 0 | 0 |
Fair Value | 84,000,000 | 92,000,000 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 28,000,000 | 28,000,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 28,000,000 | 28,000,000 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 143,000,000 | 137,000,000 |
Unrealized Gains | 5,000,000 | 9,000,000 |
Unrealized Losses | 0 | 0 |
Fair Value | 148,000,000 | 146,000,000 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,213,000,000 | 1,124,000,000 |
Unrealized Gains | 72,000,000 | 95,000,000 |
Unrealized Losses | (3,000,000) | (1,000,000) |
Fair Value | 1,282,000,000 | 1,218,000,000 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 177,000,000 | 208,000,000 |
Unrealized Gains | 4,000,000 | 7,000,000 |
Unrealized Losses | (1,000,000) | 0 |
Fair Value | 180,000,000 | 215,000,000 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 50,000,000 | 55,000,000 |
Unrealized Gains | 2,000,000 | 3,000,000 |
Unrealized Losses | 0 | 0 |
Fair Value | 52,000,000 | 58,000,000 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 83,000,000 | 77,000,000 |
Unrealized Gains | 1,000,000 | 2,000,000 |
Unrealized Losses | 0 | (1,000,000) |
Fair Value | $ 84,000,000 | $ 78,000,000 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)investment | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)investment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||||
Interest receivable | $ 13 | $ 13 | $ 12 | ||
Investment securities in an unrealized loss position | investment | 379 | 379 | 148 | ||
Proceeds from sales and redemptions | $ 50 | $ 74 | $ 189 | $ 179 | |
Securities on deposit with third parties | $ 569 | $ 569 | $ 604 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less Than 12 Months | $ 268 | $ 92 |
12 Months or Longer | 12 | 8 |
Total | 280 | 100 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (2) |
12 Months or Longer | 0 | 0 |
Total | (4) | (2) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 1 | |
12 Months or Longer | 0 | |
Total | 1 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 7 | 2 |
12 Months or Longer | 0 | 0 |
Total | 7 | 2 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 1 | 19 |
12 Months or Longer | 0 | 0 |
Total | 1 | 19 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 21 | 1 |
12 Months or Longer | 1 | 0 |
Total | 22 | 1 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 153 | 45 |
12 Months or Longer | 8 | 8 |
Total | 161 | 53 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (1) |
12 Months or Longer | 0 | 0 |
Total | (3) | (1) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 66 | |
12 Months or Longer | 0 | |
Total | 66 | |
Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | 0 | |
Total | (1) | |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 8 | |
12 Months or Longer | 0 | |
Total | 8 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 19 | 17 |
12 Months or Longer | 3 | 0 |
Total | 22 | 17 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | 0 | 0 |
Total | $ 0 | $ (1) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) $ in Millions | Sep. 30, 2021USD ($) |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |
Due in 1 year or less | $ 146 |
Due after 1 year through 5 years | 577 |
Due after 5 years through 10 years | 658 |
Due after 10 years | 175 |
Mortgage-backed, asset-backed, and collateralized securities | 316 |
Total | 1,872 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |
Due in 1 year or less | 145 |
Due after 1 year through 5 years | 548 |
Due after 5 years through 10 years | 626 |
Due after 10 years | 159 |
Mortgage-backed, asset-backed, and collateralized securities | 310 |
Cost/ Amortized Cost | $ 1,788 |
Investment Securities - Fair _2
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 39 | $ 35 |
Total | 91 | 75 |
Non-U.S. government and government sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 0 | 1 |
Corporate debt | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 11 | 17 |
Mortgage-backed, asset-backed, and collateralized bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 28 | 17 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 22 | 13 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 30 | $ 27 |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2021 | $ 0 | |
2022 | 992,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025 | 1,835,000,000 | |
2026-2067 | 5,699,000,000 | |
Securitizations | 6,955,000,000 | |
Total principal maturities | 17,956,000,000 | |
Long-term debt | 17,661,000,000 | $ 17,800,000,000 |
Debt issuance costs | (117,000,000) | |
Amounts drawn | 0 | |
Senior Debt | Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026-2067 | 0 | |
Securitizations | 6,955,000,000 | |
Total principal maturities | 6,955,000,000 | |
Long-term debt | 6,924,000,000 | |
Debt issuance costs | (28,000,000) | |
Debt issuance costs | $ 33,000,000 | |
Senior Debt | Securitizations | Minimum | ||
Long-term debt | ||
Interest rate | 0.81% | |
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 | ||
Remainder of 2021 | $ 0 | |
2022 | 992,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025 | 1,835,000,000 | |
2026-2067 | 5,349,000,000 | |
Securitizations | 0 | |
Total principal maturities | 10,651,000,000 | |
Long-term debt | 10,565,000,000 | |
Debt issuance costs | $ (89,000,000) | |
Senior Debt | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 3.50% | |
Senior Debt | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 8.88% | |
Junior Subordinated Debt | ||
Long-term debt | ||
Interest rate | 1.88% | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026-2067 | 350,000,000 | |
Securitizations | 0 | |
Total principal maturities | 350,000,000 | |
Long-term debt | 172,000,000 | |
Debt issuance costs | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - OMFC - Senior Debt - USD ($) | Jan. 08, 2021 | Mar. 31, 2021 | Aug. 11, 2021 | Jun. 22, 2021 | Dec. 09, 2020 |
7.75% Senior Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.75% | ||||
Repayments of debt | $ 681,000,000 | ||||
Loss on repurchase and repayments of debt | $ 47,000,000 | ||||
3.5% Senior Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.50% | ||||
Debt instrument, principal amount | $ 750,000,000 | ||||
3.875% Senior Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.875% | ||||
Debt instrument, principal amount | $ 600,000,000 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $ 821 | $ 2,272 | $ 1,944 | |||
Net finance receivables | 18,843 | 18,084 | ||||
Allowance for finance receivable losses | 2,061 | $ 2,000 | 2,269 | 2,324 | $ 2,324 | $ 829 |
Restricted cash and restricted cash equivalents | 459 | 451 | $ 497 | |||
Other assets | 973 | 1,054 | ||||
Long-term debt | 17,661 | 17,800 | ||||
Consolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 2 | 2 | ||||
Net finance receivables | 7,731 | 8,772 | ||||
Allowance for finance receivable losses | 849 | 1,085 | ||||
Restricted cash and restricted cash equivalents | 445 | 441 | ||||
Other assets | 33 | 33 | ||||
Long-term debt | 6,924 | 7,789 | ||||
Other liabilities | $ 13 | $ 15 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 237 | $ 255 | $ 703 | $ 781 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 72 | $ 84 | $ 225 | $ 256 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Debt Instrument [Line Items] | |
Revolving period | 2 years |
Maximum | |
Debt Instrument [Line Items] | |
Revolving period | 7 years |
Variable Interest Entities - Re
Variable Interest Entities - Revolving Conduit Facilities (Details) | 9 Months Ended |
Sep. 30, 2021USD ($)facility | |
Line of Credit Facility [Line Items] | |
Amounts drawn | $ 0 |
Consolidated VIEs | Securitizations | |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 14 |
Total borrowing capacity | $ 7,300,000,000 |
Amounts drawn | $ 0 |
Consolidated VIEs | Securitizations | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument, term | 10 years |
Insurance - Changes in the Rese
Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 148 | $ 117 | ||
Less reinsurance recoverables | (3) | (3) | $ (3) | $ (4) |
Net balance at beginning of period | 145 | 113 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 158 | 221 | ||
Prior years | (19) | (10) | ||
Total | 139 | 211 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (91) | (107) | ||
Prior years | (79) | (60) | ||
Total | (170) | (167) | ||
Net balance at end of period | 114 | 157 | ||
Plus reinsurance recoverables | 3 | 3 | $ 3 | $ 4 |
Balance at end of period | $ 117 | $ 160 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021class | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Number of classes of authorized stock | 2 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share (OMH Only) - Changes in Shares Issued and Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 133,884,043 | 134,319,171 | 134,341,724 | 136,101,156 |
Common stock issued (in shares) | 4,653 | 3,842 | 159,327 | 253,555 |
Common stock repurchased (in shares) | 0 | (2,031,698) | ||
Common stock repurchased (in shares) | (2,435,489) | (3,047,844) | ||
Ending balance (in shares) | 131,453,207 | 134,323,013 | 131,453,207 | 134,323,013 |
Capital Stock and Earnings Pe_5
Capital Stock and Earnings Per Share (OMH Only) - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator (basic and diluted): | ||||
Net income | $ 288 | $ 250 | $ 1,051 | $ 371 |
Denominator: | ||||
Weighted average number of shares outstanding (basic) (in shares) | 132,487,234 | 134,321,929 | 133,709,146 | 134,847,170 |
Effect of dilutive securities (in shares) | 437,099 | 185,620 | 387,236 | 152,317 |
Weighted average number of shares outstanding (diluted) (in shares) | 132,924,333 | 134,507,549 | 134,096,382 | 134,999,487 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.17 | $ 1.86 | $ 7.86 | $ 2.75 |
Diluted (in dollars per share) | $ 2.17 | $ 1.86 | $ 7.84 | $ 2.75 |
Restricted stock units | ||||
Earnings per share: | ||||
Shares excluded in the diluted earnings per share calculation (in shares) | 491,541 | 256,034 | 322,430 | 303,913 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | $ 3,537 | $ 3,171 | $ 3,441 | $ 4,330 |
Other comprehensive income (loss) before reclassifications | (8) | 14 | (16) | 36 |
Reclassification adjustments from accumulated other comprehensive income | (1) | (1) | ||
Balance at end of period | 3,121 | 3,123 | 3,121 | 3,123 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 71 | 66 | 91 | 41 |
Other comprehensive income (loss) before reclassifications | (7) | 12 | (26) | 38 |
Reclassification adjustments from accumulated other comprehensive income | (1) | (1) | ||
Balance at end of period | 64 | 78 | 64 | 78 |
Retirement Plan Liabilities Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 1 | 3 | 1 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | ||
Balance at end of period | 1 | 3 | 1 | 3 |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 5 | (4) | 2 | 0 |
Other comprehensive income (loss) before reclassifications | (2) | 2 | 1 | (2) |
Reclassification adjustments from accumulated other comprehensive income | 0 | 0 | ||
Balance at end of period | 3 | (2) | 3 | (2) |
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 8 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 1 | 0 | 9 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | 9 | 0 | 9 | 0 |
Total Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 85 | 65 | 94 | 44 |
Balance at end of period | $ 77 | $ 79 | $ 77 | $ 79 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax asset | $ 354 | $ 405 | |
Decrease in net deferred tax asset | $ 51 | ||
Effective tax rate | 24.20% | 26.10% | |
Unrecognized tax benefits, including related interest and penalties | $ 8 | $ 10 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 1,113 | $ 1,089 | $ 3,244 | $ 3,273 | |
Interest expense | 237 | 255 | 703 | 781 | |
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 | |
Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 | |
Other revenues | 155 | 101 | 396 | 390 | |
Other expenses | 429 | 363 | 1,195 | 1,194 | |
Income before income taxes | 376 | 341 | 1,386 | 502 | |
Assets | 21,963 | 21,857 | 21,963 | 21,857 | $ 22,471 |
Consumer and Insurance | Consumer and Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1,111 | 1,086 | 3,237 | 3,260 | |
Interest expense | 235 | 250 | 698 | 765 | |
Provision for finance receivable losses | 224 | 232 | 351 | 1,184 | |
Net interest income after provision for finance receivable losses | 652 | 604 | 2,188 | 1,311 | |
Other revenues | 151 | 99 | 395 | 380 | |
Other expenses | 415 | 352 | 1,154 | 1,161 | |
Income before income taxes | 388 | 351 | 1,429 | 530 | |
Assets | 19,897 | 19,743 | 19,897 | 19,743 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 1 | 4 | 4 | |
Interest expense | 1 | 1 | 3 | 3 | |
Provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for finance receivable losses | 0 | 0 | 1 | 1 | |
Other revenues | 4 | 4 | 10 | 12 | |
Other expenses | 5 | 6 | 17 | 18 | |
Income before income taxes | (1) | (2) | (6) | (5) | |
Assets | 44 | 63 | 44 | 63 | |
Segment to GAAP Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 2 | 3 | 9 | |
Interest expense | 1 | 4 | 2 | 13 | |
Provision for finance receivable losses | 2 | (1) | 5 | 2 | |
Net interest income after provision for finance receivable losses | (2) | (1) | (4) | (6) | |
Other revenues | 0 | (2) | (9) | (2) | |
Other expenses | 9 | 5 | 24 | 15 | |
Income before income taxes | (11) | (8) | (37) | (23) | |
Assets | $ 2,022 | $ 2,051 | $ 2,022 | $ 2,051 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets | |||
Restricted cash and restricted cash equivalents | $ 459 | $ 451 | $ 497 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 821 | 2,272 | |
Investment securities | 1,963 | 1,922 | |
Net finance receivables, less allowance for finance receivable losses | 19,845 | 18,629 | |
Restricted cash and restricted cash equivalents | 459 | 451 | |
Other assets | 53 | 62 | |
Liabilities | |||
Long-term debt | 18,933 | 19,426 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 821 | 2,272 | |
Investment securities | 1,963 | 1,922 | |
Net finance receivables, less allowance for finance receivable losses | 16,782 | 15,815 | |
Restricted cash and restricted cash equivalents | 459 | 451 | |
Other assets | 49 | 62 | |
Liabilities | |||
Long-term debt | 17,661 | 17,800 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 821 | 2,255 | |
Investment securities | 56 | 44 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 459 | 451 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 17 | |
Investment securities | 1,901 | 1,870 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 0 | 2 | |
Liabilities | |||
Long-term debt | 18,933 | 19,426 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 6 | 8 | |
Net finance receivables, less allowance for finance receivable losses | 19,845 | 18,629 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 53 | 60 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 1,872 | $ 1,847 |
Other securities | 91 | 75 |
U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 14 | 12 |
Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 92 |
Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,282 | 1,218 |
RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 180 | 215 |
CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 52 | 58 |
CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 78 |
Level 1 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 56 | 44 |
Level 2 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 1,901 | 1,870 |
Level 3 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 6 | 8 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 204 | 2,018 |
Cash equivalents in securities | 17 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,872 | 1,847 |
Other securities | 91 | 75 |
Total investment securities | 1,963 | 1,922 |
Restricted cash equivalents in mutual funds | 450 | 441 |
Total | 2,617 | 4,398 |
Fair Value, Measurements, Recurring | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 39 | 35 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 14 | 12 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 92 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 28 | 28 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 148 | 146 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,282 | 1,218 |
Other securities | 11 | 17 |
Fair Value, Measurements, Recurring | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 180 | 215 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 52 | 58 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 78 |
Other securities | 27 | 17 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 22 | 13 |
Fair Value, Measurements, Recurring | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 30 | 27 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 204 | 2,018 |
Cash equivalents in securities | 0 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 5 | 5 |
Other securities | 51 | 39 |
Total investment securities | 56 | 44 |
Restricted cash equivalents in mutual funds | 450 | 441 |
Total | 710 | 2,503 |
Fair Value, Measurements, Recurring | Level 1 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 5 | 5 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 22 | 13 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 29 | 26 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 17 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,863 | 1,836 |
Other securities | 38 | 34 |
Total investment securities | 1,901 | 1,870 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 1,901 | 1,887 |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 38 | 34 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 14 | 12 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 92 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 28 | 28 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 148 | 146 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,273 | 1,207 |
Other securities | 10 | 16 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 180 | 215 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 52 | 58 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 84 | 78 |
Other securities | 27 | 17 |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 0 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 6 |
Other securities | 2 | 2 |
Total investment securities | 6 | 8 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 6 | 8 |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 6 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | $ 1 | $ 1 |
Uncategorized Items - omf-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |