Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 21, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 $0.01 per share | |
Trading Symbol | OMF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 125,211,094 | |
Entity Central Index Key | 0001584207 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
OMFC | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-06155 | |
Entity Registrant Name | ONEMAIN FINANCE CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0416090 | |
Entity Address, Address Line One | 601 N.W. Second Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | 812 | |
Local Phone Number | 424-8031 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Entity Central Index Key | 0000025598 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 640 | $ 541 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion in 2022, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,778 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $8.6 billion in 2022 and $8.8 billion in 2021) | 18,979 | 19,212 |
Unearned insurance premium and claim reserves | (741) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $896 million in 2022 and $910 million in 2021) | (2,071) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,167 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $509 million in 2022 and $466 million in 2021) | 531 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 274 | 274 |
Other assets | 981 | 1,003 |
Total assets | 21,808 | 22,079 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.8 billion in 2022 and $8.0 billion in 2021) | 17,560 | 17,750 |
Insurance claims and policyholder liabilities | 621 | 621 |
Deferred and accrued taxes | 45 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $12 million in 2022 and $13 million in 2021) | 493 | 614 |
Total liabilities | 18,719 | 18,986 |
Contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 125,793,836 and 127,809,640 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 1 | 1 |
Additional paid-in capital | 1,672 | 1,672 |
Accumulated other comprehensive income (loss) | (11) | 61 |
Retained earnings | 1,905 | 1,727 |
Treasury stock, at cost; 8,981,004 and 6,712,923 shares at March 31, 2022 and December 31, 2021, respectively | (478) | (368) |
Total shareholders’ equity | 3,089 | 3,093 |
Total liabilities and shareholders’ equity | $ 21,808 | $ 22,079 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investment securities, fair value | $ 1,700 | $ 1,907 |
Investment securities, amortized cost basis | 1,743 | 1,842 |
Net finance receivables | 18,979 | 19,212 |
Financing receivable, allowance for credit loss | 2,071 | 2,095 |
Restricted cash and restricted cash equivalents | 531 | 476 |
Long-term debt | 17,560 | 17,750 |
Other liabilities | $ 493 | $ 614 |
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) | 125,793,836 | 127,809,640 |
Common stock, shares outstanding (in shares) | 125,793,836 | 127,809,640 |
Treasury stock, shares (in shares) | 8,981,004 | 6,712,923 |
Consolidated VIEs | ||
Net finance receivables | $ 8,579 | $ 8,821 |
Financing receivable, allowance for credit loss | 896 | 910 |
Restricted cash and restricted cash equivalents | 509 | 466 |
Long-term debt | 7,803 | 7,999 |
Other liabilities | $ 12 | $ 13 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Interest income | $ 1,089 | $ 1,060 |
Interest expense | 219 | 235 |
Net interest income | 870 | 825 |
Provision for finance receivable losses | 238 | (2) |
Net interest income after provision for finance receivable losses | 632 | 827 |
Other revenues: | ||
Insurance | 111 | 107 |
Investment | 15 | 17 |
Gain on sales of finance receivables | 17 | 4 |
Net loss on repurchases and repayments of debt | 0 | (47) |
Other | 19 | 10 |
Total other revenues | 162 | 91 |
Other expenses: | ||
Salaries and benefits | 205 | 189 |
Other operating expenses | 148 | 150 |
Insurance policy benefits and claims | 45 | 33 |
Total other expenses | 398 | 372 |
Income before income taxes | 396 | 546 |
Income taxes | 95 | 133 |
Net income | $ 301 | $ 413 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 127,075,714 | 134,405,368 |
Diluted (in shares) | 127,463,027 | 134,807,165 |
Earnings per share: | ||
Basic (in dollars per share) | $ 2.37 | $ 3.07 |
Diluted (in dollars per share) | $ 2.36 | $ 3.06 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 301 | $ 413 |
Other comprehensive loss: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | (105) | (43) |
Foreign currency translation adjustments | 2 | 2 |
Other | 13 | 23 |
Income tax effect: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | 24 | 10 |
Foreign currency translation adjustments | (1) | 0 |
Other | (3) | (6) |
Other comprehensive loss, net of tax, before reclassification adjustments | (70) | (14) |
Net realized losses on available-for-sale securities, net of tax | (2) | 0 |
Reclassification adjustments included in net income, net of tax | (2) | 0 |
Other comprehensive loss, net of tax | (72) | (14) |
Comprehensive income | $ 229 | $ 399 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | |
Balance at beginning of period at Dec. 31, 2020 | $ 3,441 | $ 1 | $ 1,655 | $ 94 | $ 1,691 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense, net of forfeitures | 7 | 7 | |||||
Withholding tax on share-based compensation | (5) | (5) | |||||
Other comprehensive loss | (14) | (14) | |||||
Cash dividends | [1] | (534) | (534) | ||||
Net income | 413 | 413 | |||||
Balance at end of period at Mar. 31, 2021 | 3,308 | 1 | 1,657 | 80 | 1,570 | 0 | |
Balance at beginning of period at Dec. 31, 2021 | 3,093 | 1 | 1,672 | 61 | 1,727 | (368) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock repurchased | (110) | (110) | |||||
Share-based compensation expense, net of forfeitures | 12 | 12 | |||||
Withholding tax on share-based compensation | (12) | (12) | |||||
Other comprehensive loss | (72) | (72) | |||||
Cash dividends | [1] | (123) | (123) | ||||
Net income | 301 | 301 | |||||
Balance at end of period at Mar. 31, 2022 | $ 3,089 | $ 1 | $ 1,672 | $ (11) | $ 1,905 | $ (478) | |
[1] | Cash dividends declared were $0.95 per share and $3.95 per share during the three months ended March 31, 2022 and 2021, respectively. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.95 | $ 3.95 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | $ 301 | $ 413 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 238 | (2) |
Depreciation and amortization | 61 | 61 |
Deferred income tax charge | 21 | 59 |
Net loss on repurchases and repayments of debt | 0 | 47 |
Share-based compensation expense, net of forfeitures | 12 | 7 |
Gain on sales of finance receivables | (17) | (4) |
Other | (2) | (2) |
Cash flows due to changes in other assets and other liabilities | (62) | (23) |
Net cash provided by operating activities | 552 | 556 |
Cash flows from investing activities | ||
Net principal collections (originations and purchases) of finance receivables | (245) | 217 |
Proceeds from sales of finance receivables | 200 | 50 |
Available-for-sale securities purchased | (90) | (146) |
Available-for-sale securities called, sold, and matured | 196 | 91 |
Other securities purchased | (2) | (688) |
Other securities called, sold, and matured | 7 | 681 |
Other, net | (16) | (7) |
Net cash provided by investing activities | 50 | 198 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of issuance costs | 198 | |
Expenses from issuance of long-term debt, net of issuance costs | (1) | |
Repayment of long-term debt | (398) | (1,065) |
Cash dividends | (126) | (534) |
Common stock repurchased | (110) | 0 |
Withholding tax on share-based compensation | (12) | (5) |
Net cash used for financing activities | (448) | (1,605) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 154 | (851) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,017 | 2,723 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,171 | 1,872 |
Supplemental cash flow information | ||
Cash and cash equivalents | 640 | 1,301 |
Restricted cash and restricted cash equivalents | 531 | 571 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 1,171 | $ 1,872 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (Unaudited) - OMFC - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 640 | $ 541 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion in 2022, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,778 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $8.6 billion in 2022 and $8.8 billion in 2021) | 18,979 | 19,212 |
Unearned insurance premium and claim reserves | (741) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $896 million in 2022 and $910 million in 2021) | (2,071) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,167 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $509 million in 2022 and $466 million in 2021) | 531 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 274 | 274 |
Other assets | 981 | 1,003 |
Total assets | 21,808 | 22,079 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.8 billion in 2022 and $8.0 billion in 2021) | 17,560 | 17,750 |
Insurance claims and policyholder liabilities | 621 | 621 |
Deferred and accrued taxes | 45 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $12 million in 2022 and $13 million in 2021) | 493 | 614 |
Total liabilities | 18,719 | 18,986 |
Contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 1 | 1 |
Additional paid-in capital | 1,672 | 1,672 |
Accumulated other comprehensive income (loss) | (11) | 61 |
Retained earnings | 1,905 | 1,727 |
Total shareholders’ equity | 3,089 | 3,093 |
Total liabilities and shareholders’ equity | 21,808 | 22,079 |
Consolidated VIEs | ||
Assets | ||
Cash and cash equivalents | 2 | 2 |
Net finance receivables (includes loans of consolidated VIEs of $8.6 billion in 2022 and $8.8 billion in 2021) | 8,579 | 8,821 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $896 million in 2022 and $910 million in 2021) | (896) | (910) |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $509 million in 2022 and $466 million in 2021) | 509 | 466 |
Other assets | 27 | 26 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.8 billion in 2022 and $8.0 billion in 2021) | 7,803 | 7,999 |
Other liabilities (includes other liabilities of consolidated VIEs of $12 million in 2022 and $13 million in 2021) | 12 | 13 |
OMFC | ||
Assets | ||
Cash and cash equivalents | 620 | 510 |
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion in 2022, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,778 | 1,992 |
Net finance receivables (includes loans of consolidated VIEs of $8.6 billion in 2022 and $8.8 billion in 2021) | 18,979 | 19,212 |
Unearned insurance premium and claim reserves | (741) | (761) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $896 million in 2022 and $910 million in 2021) | (2,071) | (2,095) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,167 | 16,356 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $509 million in 2022 and $466 million in 2021) | 531 | 476 |
Goodwill | 1,437 | 1,437 |
Other intangible assets | 274 | 274 |
Other assets | 980 | 1,001 |
Total assets | 21,787 | 22,046 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.8 billion in 2022 and $8.0 billion in 2021) | 17,560 | 17,750 |
Insurance claims and policyholder liabilities | 621 | 621 |
Deferred and accrued taxes | 47 | 1 |
Other liabilities (includes other liabilities of consolidated VIEs of $12 million in 2022 and $13 million in 2021) | 493 | 614 |
Total liabilities | 18,721 | 18,986 |
Contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 5 | 5 |
Additional paid-in capital | 1,916 | 1,916 |
Accumulated other comprehensive income (loss) | (11) | 61 |
Retained earnings | 1,156 | 1,078 |
Total shareholders’ equity | 3,066 | 3,060 |
Total liabilities and shareholders’ equity | 21,787 | 22,046 |
OMFC | Consolidated VIEs | ||
Assets | ||
Net finance receivables (includes loans of consolidated VIEs of $8.6 billion in 2022 and $8.8 billion in 2021) | 8,600 | 8,800 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $896 million in 2022 and $910 million in 2021) | (896) | (910) |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $509 million in 2022 and $466 million in 2021) | 509 | 466 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $7.8 billion in 2022 and $8.0 billion in 2021) | 7,800 | 8,000 |
Other liabilities (includes other liabilities of consolidated VIEs of $12 million in 2022 and $13 million in 2021) | $ 12 | $ 13 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (Unaudited) - OMFC (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investment securities, fair value | $ 1,700 | $ 1,907 |
Investment securities, amortized cost basis | 1,743 | 1,842 |
Net finance receivables | 18,979 | 19,212 |
Financing receivable, allowance for credit loss | 2,071 | 2,095 |
Restricted cash and restricted cash equivalents | 531 | 476 |
Long-term debt | 17,560 | 17,750 |
Other liabilities | $ 493 | $ 614 |
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) | 125,793,836 | 127,809,640 |
Common stock, shares outstanding (in shares) | 125,793,836 | 127,809,640 |
OMFC | ||
Investment securities, fair value | $ 1,700 | $ 1,900 |
Investment securities, amortized cost basis | 1,800 | |
Net finance receivables | 18,979 | 19,212 |
Financing receivable, allowance for credit loss | 2,071 | 2,095 |
Restricted cash and restricted cash equivalents | 531 | 476 |
Long-term debt | 17,560 | 17,750 |
Other liabilities | $ 493 | $ 614 |
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 | $ 8,579 | $ 8,821 |
Financing receivable, allowance for credit loss | 896 | 910 |
Restricted cash and restricted cash equivalents | 509 | 466 |
Long-term debt | 7,803 | 7,999 |
Other liabilities | 12 | 13 |
Consolidated VIEs | OMFC | ||
Net finance receivables | 8,600 | 8,800 |
Financing receivable, allowance for credit loss | 896 | 910 |
Restricted cash and restricted cash equivalents | 509 | 466 |
Long-term debt | 7,800 | 8,000 |
Other liabilities | $ 12 | $ 13 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Operations (Unaudited) - OMFC - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | $ 1,089 | $ 1,060 |
Interest expense | 219 | 235 |
Net interest income | 870 | 825 |
Provision for finance receivable losses | 238 | (2) |
Net interest income after provision for finance receivable losses | 632 | 827 |
Other revenues: | ||
Insurance | 111 | 107 |
Investment | 15 | 17 |
Gain on sales of finance receivables | 17 | 4 |
Net loss on repurchases and repayments of debt | 0 | (47) |
Other | 19 | 10 |
Total other revenues | 162 | 91 |
Other expenses: | ||
Salaries and benefits | 205 | 189 |
Other operating expenses | 148 | 150 |
Insurance policy benefits and claims | 45 | 33 |
Total other expenses | 398 | 372 |
Income before income taxes | 396 | 546 |
Income taxes | 95 | 133 |
Net income | 301 | 413 |
OMFC | ||
Interest income | 1,089 | 1,060 |
Interest expense | 219 | 235 |
Net interest income | 870 | 825 |
Provision for finance receivable losses | 238 | (2) |
Net interest income after provision for finance receivable losses | 632 | 827 |
Other revenues: | ||
Insurance | 111 | 107 |
Investment | 15 | 17 |
Gain on sales of finance receivables | 17 | 4 |
Net loss on repurchases and repayments of debt | 0 | (47) |
Other | 19 | 10 |
Total other revenues | 162 | 91 |
Other expenses: | ||
Salaries and benefits | 205 | 189 |
Other operating expenses | 148 | 150 |
Insurance policy benefits and claims | 45 | 33 |
Total other expenses | 398 | 372 |
Income before income taxes | 396 | 546 |
Income taxes | 95 | 133 |
Net income | $ 301 | $ 413 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - OMFC - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 301 | $ 413 |
Other comprehensive loss: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | (105) | (43) |
Foreign currency translation adjustments | 2 | 2 |
Other | 13 | 23 |
Income tax effect: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | 24 | 10 |
Foreign currency translation adjustments | (1) | 0 |
Other | (3) | (6) |
Other comprehensive loss, net of tax, before reclassification adjustments | (70) | (14) |
Net realized losses on available-for-sale securities, net of tax | (2) | 0 |
Reclassification adjustments included in net income, net of tax | (2) | 0 |
Other comprehensive loss, net of tax | (72) | (14) |
Comprehensive income | 229 | 399 |
OMFC | ||
Net income | 301 | 413 |
Other comprehensive loss: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | (105) | (43) |
Foreign currency translation adjustments | 2 | 2 |
Other | 13 | 23 |
Income tax effect: | ||
Net change in unrealized losses on non-credit impaired available-for-sale securities | 24 | 10 |
Foreign currency translation adjustments | (1) | 0 |
Other | (3) | (6) |
Other comprehensive loss, net of tax, before reclassification adjustments | (70) | (14) |
Net realized losses on available-for-sale securities, net of tax | (2) | 0 |
Reclassification adjustments included in net income, net of tax | (2) | 0 |
Other comprehensive loss, net of tax | (72) | (14) |
Comprehensive income | $ 229 | $ 399 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - OMFC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | OMFC | OMFCCommon Stock | OMFCAdditional Paid-in Capital | OMFCAccumulated Other Comprehensive Income (Loss) | OMFCRetained Earnings | ||
Balance at beginning of period at Dec. 31, 2020 | $ 3,441 | $ 1 | $ 1,655 | $ 94 | $ 1,691 | $ 3,440 | $ 5 | $ 1,899 | $ 94 | $ 1,442 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation expense, net of forfeitures | 7 | 7 | 7 | 7 | ||||||||
Withholding tax on share-based compensation | (5) | (5) | (5) | (5) | ||||||||
Other comprehensive loss | (14) | (14) | (14) | (14) | ||||||||
Cash dividends | (534) | [1] | (534) | [1] | (535) | (535) | ||||||
Net income | 413 | 413 | 413 | 413 | ||||||||
Balance at end of period at Mar. 31, 2021 | 3,308 | 1 | 1,657 | 80 | 1,570 | 3,306 | 5 | 1,901 | 80 | 1,320 | ||
Balance at beginning of period at Dec. 31, 2021 | 3,093 | 1 | 1,672 | 61 | 1,727 | 3,060 | 5 | 1,916 | 61 | 1,078 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation expense, net of forfeitures | 12 | 12 | 12 | 12 | ||||||||
Withholding tax on share-based compensation | (12) | (12) | (12) | (12) | ||||||||
Other comprehensive loss | (72) | (72) | (72) | (72) | ||||||||
Cash dividends | (123) | [1] | (123) | [1] | (223) | (223) | ||||||
Net income | 301 | 301 | 301 | 301 | ||||||||
Balance at end of period at Mar. 31, 2022 | $ 3,089 | $ 1 | $ 1,672 | $ (11) | $ 1,905 | $ 3,066 | $ 5 | $ 1,916 | $ (11) | $ 1,156 | ||
[1] | Cash dividends declared were $0.95 per share and $3.95 per share during the three months ended March 31, 2022 and 2021, respectively. |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - OMFC (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.95 | $ 3.95 |
Condensed Consolidated State_10
Condensed Consolidated Statements of Cash Flows (Unaudited) - OMFC - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | $ 301 | $ 413 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 238 | (2) |
Depreciation and amortization | 61 | 61 |
Deferred income tax charge | 21 | 59 |
Net loss on repurchases and repayments of debt | 0 | 47 |
Share-based compensation expense, net of forfeitures | 12 | 7 |
Gain on sales of finance receivables | (17) | (4) |
Other | (2) | (2) |
Cash flows due to changes in other assets and other liabilities | (62) | (23) |
Net cash provided by operating activities | 552 | 556 |
Cash flows from investing activities | ||
Net principal collections (originations and purchases) of finance receivables | (245) | 217 |
Proceeds from sales of finance receivables | 200 | 50 |
Available-for-sale securities purchased | (90) | (146) |
Available-for-sale securities called, sold, and matured | 196 | 91 |
Other securities purchased | (2) | (688) |
Other securities called, sold, and matured | 7 | 681 |
Other, net | (16) | (7) |
Net cash provided by investing activities | 50 | 198 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of issuance costs | 198 | |
Expenses from issuance of long-term debt, net of issuance costs | (1) | |
Repayment of long-term debt | (398) | (1,065) |
Cash dividends | (126) | (534) |
Withholding tax on share-based compensation | (12) | (5) |
Net cash used for financing activities | (448) | (1,605) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 154 | (851) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,017 | 2,723 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,171 | 1,872 |
Supplemental cash flow information | ||
Cash and cash equivalents | 640 | 1,301 |
Restricted cash and restricted cash equivalents | 531 | 571 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,171 | 1,872 |
OMFC | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | 301 | 413 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 238 | (2) |
Depreciation and amortization | 61 | 61 |
Deferred income tax charge | 21 | 59 |
Net loss on repurchases and repayments of debt | 0 | 47 |
Share-based compensation expense, net of forfeitures | 12 | 7 |
Gain on sales of finance receivables | (17) | (4) |
Other | (2) | (2) |
Cash flows due to changes in other assets and other liabilities | (61) | (23) |
Net cash provided by operating activities | 553 | 556 |
Cash flows from investing activities | ||
Net principal collections (originations and purchases) of finance receivables | (245) | 217 |
Proceeds from sales of finance receivables | 200 | 50 |
Available-for-sale securities purchased | (90) | (146) |
Available-for-sale securities called, sold, and matured | 196 | 91 |
Other securities purchased | (2) | (688) |
Other securities called, sold, and matured | 7 | 681 |
Other, net | (16) | (7) |
Net cash provided by investing activities | 50 | 198 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of issuance costs | 198 | |
Expenses from issuance of long-term debt, net of issuance costs | (1) | |
Repayment of long-term debt | (398) | (1,065) |
Cash dividends | (226) | (534) |
Withholding tax on share-based compensation | (12) | (5) |
Net cash used for financing activities | (438) | (1,605) |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 165 | (851) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 986 | 2,723 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,151 | 1,872 |
Supplemental cash flow information | ||
Cash and cash equivalents | 620 | 1,301 |
Restricted cash and restricted cash equivalents | 531 | 571 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 1,151 | $ 1,872 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | 1. Business and Basis of Presentation OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses. 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,” “OneMain,” “we,” “us,” or “our.” 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. To conform to the 2022 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
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. Upon adoption, our assumptions used to measure the liability for future policy benefits will be updated at least annually. The guidance requires the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we have selected the modified retrospective transition method. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all the amendments in this ASU at the time of adoption. The Company’s long-duration contracts include term life, accidental death and dismemberment, and disability income protection. We will utilize an actuarial software solution to meet the new accounting and disclosure requirements, and we continue to refine the development of the actuarial model and assumptions. After the model has been subject to a parallel testing phase in 2022, the Company will provide further disclosure regarding the estimated impact of the adoption of the ASU on our consolidated financial statements. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating whether adoption of this ASU will have a material impact 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 | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Finance Receivables | 3. Finance Receivables Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, fixed terms generally between three Components of our net finance receivables were as follows: (dollars in millions) Personal Loans Credit Cards Total March 31, 2022 Gross finance receivables (a) $ 18,693 $ 49 $ 18,742 Unearned fees (218) (1) (219) Accrued finance charges and fees 278 1 279 Deferred origination costs 176 1 177 Total $ 18,929 $ 50 $ 18,979 December 31, 2021 Gross finance receivables (a) $ 18,944 $ 24 $ 18,968 Unearned fees (225) (1) (226) Accrued finance charges and fees 289 — 289 Deferred origination costs 179 2 181 Total $ 19,187 $ 25 $ 19,212 (a) Gross finance receivables equal the unpaid principal balance of our personal loans and credit cards. 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 March 31, 2022, we have whole loan sale flow agreements with third parties, with remaining terms of less than two years, in which we agreed to sell a combined total of $180 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in other revenue. Our first sale was executed in the first quarter of 2021. During the three months ended March 31, 2022 and 2021, we sold $180 million and $45 million of gross finance receivables, respectively. The gain on the sales were $17 million and $4 million during the three months ended March 31, 2022 and 2021, respectively. 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 personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and collection of these accounts is managed by our centralized operations. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $27 million and $20 million during the three months ended March 31, 2022 and 2021, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $4 million during the three months ended March 31, 2022 and 2021. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses. We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, there were no net accrued finance charges and fees reversed for the three months ended March 31, 2022 and 2021. The following tables below are a summary of our personal loans by the year of origination and number of days delinquent: (dollars in millions) 2022 2021 2020 2019 2018 Prior Total March 31, 2022 Performing Current $ 2,771 $ 9,057 $ 3,252 $ 2,153 $ 622 $ 229 $ 18,084 30-59 days past due 3 131 55 37 13 7 246 60-89 days past due — 99 42 26 9 5 181 Total performing 2,774 9,287 3,349 2,216 644 241 18,511 Nonperforming (Nonaccrual) 90+ days past due — 202 113 70 21 12 418 Total $ 2,774 $ 9,489 $ 3,462 $ 2,286 $ 665 $ 253 $ 18,929 (dollars in millions) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Performing Current $ 10,645 $ 3,935 $ 2,641 $ 814 $ 193 $ 109 $ 18,337 30-59 days past due 125 74 53 19 6 5 282 60-89 days past due 81 53 33 11 4 3 185 Total performing 10,851 4,062 2,727 844 203 117 18,804 Nonperforming (Nonaccrual) 90+ days past due 125 130 85 28 9 6 383 Total $ 10,976 $ 4,192 $ 2,812 $ 872 $ 212 $ 123 $ 19,187 The following is a summary of credit cards by number of days delinquent: (dollars in millions) March 31, 2022 December 31, 2021 Current $ 47 $ 25 30-59 days past due 2 — 60-89 days past due 1 — 90+ days past due — — Total $ 50 $ 25 There were no credit cards that were converted to term loans at March 31, 2022 or December 31, 2021. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables were as follows: (dollars in millions) March 31, 2022 December 31, 2021 TDR gross finance receivables $ 652 $ 646 TDR net finance receivables * 656 650 Allowance for TDR finance receivable losses 263 270 * TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs. There were no credit cards classified as TDR finance receivables at March 31, 2022 or December 31, 2021. Information regarding the new volume of the TDR finance receivables were as follows: Three Months Ended (dollars in millions) 2022 2021 Pre-modification TDR net finance receivables $ 134 $ 116 Post-modification TDR net finance receivables: Rate reduction 87 78 Other * 47 38 Total post-modification TDR net finance receivables $ 134 $ 116 Number of TDR accounts 16,165 14,508 * “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 (dollars in millions) 2022 2021 TDR net finance receivables * $ 30 $ 30 Number of TDR accounts 3,796 4,183 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. UNFUNDED LENDING COMMITMENTS Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $42 million at March 31, 2022 and $54 million at December 31, 2021. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 3 Months Ended |
Mar. 31, 2022 | |
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 finance receivables 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 overall unemployment rate. We also considered inflationary pressures, supply chain concerns, geopolitical risks, along with the persistent labor supply shortages. Our forecast leveraged economic projections from industry leading forecast providers. At March 31, 2022, our economic forecast used a reasonable and supportable period of 12 months. The decrease in our allowance for finance receivable losses for the three months ended March 31, 2022 was primarily due to a seasonal decline in our loan portfolio. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of 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: (dollars in millions) Personal Loans Credit Cards Total Three Months Ended March 31, 2022 Balance at beginning of period $ 2,090 $ 5 $ 2,095 Provision for finance receivable losses 233 5 238 Charge-offs (329) — (329) Recoveries 67 — 67 Balance at end of period $ 2,061 $ 10 $ 2,071 Three Months Ended March 31, 2021* Balance at beginning of period $ 2,269 $ — $ 2,269 Provision for finance receivable losses (2) — (2) Charge-offs (255) — (255) Recoveries 50 — 50 Balance at end of period $ 2,062 $ — $ 2,062 * There were no credit cards for the three months ended March 31, 2021 as the product offering began in the third quarter of 2021. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) Personal Loans Credit Cards Total March 31, 2022 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,798 $ 10 $ 1,808 TDR finance receivables 263 — 263 Total $ 2,061 $ 10 $ 2,071 Finance receivables: Collectively evaluated for impairment $ 18,273 $ 50 $ 18,323 TDR finance receivables 656 — 656 Total $ 18,929 $ 50 $ 18,979 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.99 % 10.91 % December 31, 2021 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,820 $ 5 $ 1,825 TDR finance receivables 270 — 270 Total $ 2,090 $ 5 $ 2,095 Finance receivables: Collectively evaluated for impairment $ 18,537 $ 25 $ 18,562 TDR finance receivables 650 — 650 Total $ 19,187 $ 25 $ 19,212 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.91 % 10.90 % |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 74 — (3) 71 Commercial paper 57 — — 57 Non-U.S. government and government sponsored entities 156 1 (3) 154 Corporate debt 1,140 11 (38) 1,113 Mortgage-backed, asset-backed, and collateralized: RMBS 177 1 (8) 170 CMBS 43 — (1) 42 CDO/ABS 85 — (3) 82 Total $ 1,743 $ 13 $ (56) $ 1,700 December 31, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 16 $ — $ — $ 16 Obligations of states, municipalities, and political subdivisions 76 3 — 79 Commercial paper 50 — — 50 Non-U.S. government and government sponsored entities 151 4 — 155 Corporate debt 1,246 61 (5) 1,302 Mortgage-backed, asset-backed, and collateralized: RMBS 169 3 (2) 170 CMBS 44 1 — 45 CDO/ABS 90 1 (1) 90 Total $ 1,842 $ 73 $ (8) $ 1,907 * The allowance for credit losses related to our investment securities as of March 31, 2022 and December 31, 2021 were immaterial. Interest receivables reported in “Other assets” totaled $12 million and $13 million as of March 31, 2022 and December 31, 2021, respectively. There were no material amounts reversed from investment revenue for available-for-sale securities for the three months ended March 31, 2022 and 2021. 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 March 31, 2022 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 48 (3) 2 — 50 (3) Commercial paper 47 — — — 47 — Non-U.S. government and government sponsored entities 91 (3) 6 — 97 (3) Corporate debt 584 (31) 48 (7) 632 (38) Mortgage-backed, asset-backed, and collateralized: RMBS 125 (6) 20 (2) 145 (8) CMBS 31 (1) — — 31 (1) CDO/ABS 61 (3) 5 — 66 (3) Total $ 993 $ (47) $ 81 $ (9) $ 1,074 $ (56) December 31, 2021 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 10 — — — 10 — Commercial paper 46 — — — 46 — Non-U.S. government and government sponsored entities 19 — 5 — 24 — Corporate debt 208 (3) 38 (2) 246 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 81 (1) 15 (1) 96 (2) CMBS 7 — — — 7 — CDO/ABS 41 (1) 3 — 44 (1) Total $ 418 $ (5) $ 61 $ (3) $ 479 $ (8) On a lot basis, we had 1,406 and 570 investment securities in an unrealized loss position at March 31, 2022 and December 31, 2021, 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 March 31, 2022, 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 March 31, 2022, 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 months ended March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021. The proceeds of available-for-sale securities sold or redeemed during the three months ended March 31, 2022 and 2021 totaled $163 million and $67 million, respectively. The net realized gains and losses were immaterial during the three months ended March 31, 2022 and 2021. Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2022 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 180 $ 179 Due after 1 year through 5 years 493 496 Due after 5 years through 10 years 572 598 Due after 10 years 161 165 Mortgage-backed, asset-backed, and collateralized securities 294 305 Total $ 1,700 $ 1,743 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 $556 million and $587 million at March 31, 2022 and December 31, 2021, respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) March 31, 2022 December 31, 2021 Fixed maturity other securities: Bonds $ 25 $ 30 Preferred stock * 19 22 Common stock * 34 33 Total $ 78 $ 85 * 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 and losses on other securities held were immaterial for the three months ended March 31, 2022 and 2021. Net realized gains and losses on other securities sold or redeemed were immaterial for the three months ended March 31, 2022 and 2021. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Unsecured Junior Total Interest rates (b) 0.81%-6.94% 0.99%-1.15% 3.50%-8.88% 1.99 % Remainder of 2022 $ — $ — $ — $ — $ — 2023 — — 1,175 — 1,175 2024 — — 1,300 — 1,300 2025 — — 1,835 — 1,835 2026 — — 1,600 — 1,600 2027-2067 — — 3,750 350 4,100 Securitizations (c) 7,184 — — — 7,184 Revolving conduit facilities (c) — 650 — — 650 Total principal maturities $ 7,184 $ 650 $ 9,660 $ 350 $ 17,844 Total carrying amount $ 7,153 $ 650 $ 9,585 $ 172 $ 17,560 Debt issuance costs (d) (29) — (77) — (106) (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 March 31, 2022. (c) Securitizations and borrowings under the revolving conduit facilities 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. 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 and unsecured corporate revolver, which totaled $30 million at March 31, 2022 and are reported in “Other assets.” |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as securitized borrowings. See Note 2 and Note 9 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) March 31, 2022 December 31, 2021 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 8,579 8,821 Allowance for finance receivable losses 896 910 Restricted cash and restricted cash equivalents 509 466 Other assets 27 26 Liabilities Long-term debt $ 7,803 $ 7,999 Other liabilities 12 13 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 $65 million and $78 million during the three months ended March 31, 2022 and 2021, 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 $6.0 billion as of March 31, 2022. 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 nine years as of March 31, 2022. Amounts drawn on these facilities are collateralized by our personal loans. |
Insurance
Insurance | 3 Months Ended |
Mar. 31, 2022 | |
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) 2022 2021 Balance at beginning of period $ 118 $ 148 Less reinsurance recoverables (3) (3) Net balance at beginning of period 115 145 Additions for losses and loss adjustment expenses incurred to: Current year 58 57 Prior years * (8) (18) Total 50 39 Reductions for losses and loss adjustment expenses paid related to: Current year (16) (18) Prior years (35) (47) Total (51) (65) Net balance at end of period 114 119 Plus reinsurance recoverables 3 3 Balance at end of period $ 117 $ 122 * At March 31, 2022, $8 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit and term life claims during the period. At March 31, 2021, $18 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability and unemployment claims during the period. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share (OMH Only) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Balance at beginning of period 127,809,640 134,341,724 Common stock issued 252,277 135,372 Common stock repurchased (2,282,552) — Treasury stock issued 14,471 — Balance at end of period 125,793,836 134,477,096 EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows: Three Months Ended March 31, (dollars in millions, except per share data) 2022 2021 Numerator (basic and diluted): Net income $ 301 $ 413 Denominator: Weighted average number of shares outstanding (basic) 127,075,714 134,405,368 Effect of dilutive securities * 387,313 401,797 Weighted average number of shares outstanding (diluted) 127,463,027 134,807,165 Earnings per share: Basic $ 2.37 $ 3.07 Diluted $ 2.36 $ 3.06 * We have excluded weighted-average unvested restricted stock units totaling 1,172,754 and 133,004 for the three months ended March 31, 2022 and 2021, 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) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Balance at beginning of period $ 49 $ 1 $ 3 $ 8 $ 61 Other comprehensive income (loss) before reclassifications (81) — 1 10 (70) Reclassification adjustments from accumulated other comprehensive loss (2) — — — (2) Balance at end of period $ (34) $ 1 $ 4 $ 18 $ (11) Three Months Ended March 31, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (33) — 2 17 $ (14) Balance at end of period $ 58 $ 1 $ 4 $ 17 $ 80 (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 months ended March 31, 2022 and 2021. (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 consolidated statements of operations were immaterial for the three months ended March 31, 2022 and 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes We had a net deferred tax asset of $339 million at March 31, 2022 and December 31, 2021. Deferred tax asset increases related to the change in fair value of investment securities were offset by decreases related to bonus accrual deductions, mark to market adjustments on our liquidating loan portfolio, and our allowance for finance receivable losses. 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 three months ended March 31, 2022 was 24.1%, compared to 24.4% for the same period in 2021. The effective tax rate for the three months ended March 31, 2022 and 2021 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 2019. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $7 million at March 31, 2022 and $8 million at December 31, 2021. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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. Additionally, we are, from time to time, in the normal course of business, subject to inquiries and investigations by federal, state and local governmental authorities regarding our products and our operations. These inquiries and investigations may result in fines, restitution or other penalties, including injunctive relief that may result in restrictions on our business. 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. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536. The staff’s investigation is focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase. We are cooperating with the CFPB in this matter and expect ongoing interactions. Although the Company believes it has not violated the Consumer Financial Protection Act, we are unable to estimate how long this investigation will continue, whether and in what manner the CFPB may commence legal action, or what the ultimate outcome of this matter will be. Should the CFPB opt to commence legal proceedings, it may seek civil monetary penalties, restitution, injunctive relief, or other damages. The Company does not currently believe that the outcome of this matter will have a material adverse effect on our business, financial condition, or results of operation. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information At March 31, 2022, 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 2 and Note 17 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 March 31, 2022 Interest income $ 1,087 $ 1 $ 1 $ 1,089 Interest expense 217 1 1 219 Provision for finance receivable losses 237 — 1 238 Net interest income after provision for finance receivable losses 633 — (1) 632 Other revenues 158 4 — 162 Other expenses 395 4 (1) 398 Income before income tax expense $ 396 $ — $ — $ 396 Assets $ 19,748 $ 40 $ 2,020 $ 21,808 Three Months Ended March 31, 2021 Interest income $ 1,057 $ 1 $ 2 $ 1,060 Interest expense 233 1 1 235 Provision for finance receivable losses (3) — 1 (2) Net interest income after provision for finance receivable losses 827 — — 827 Other revenues 98 3 (10) 91 Other expenses 358 6 8 372 Income (loss) before income tax expense (benefit) $ 567 $ (3) $ (18) $ 546 Assets $ 19,194 $ 57 $ 2,034 $ 21,285 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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 2 and Note 18 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 March 31, 2022 Assets Cash and cash equivalents $ 631 $ 9 $ — $ 640 $ 640 Investment securities 56 1,717 5 1,778 1,778 Net finance receivables, less allowance for finance receivable losses — — 19,479 19,479 16,908 Restricted cash and restricted cash equivalents 531 — — 531 531 Other assets * — — 51 51 43 Liabilities Long-term debt $ — $ 17,537 $ — $ 17,537 $ 17,560 December 31, 2021 Assets Cash and cash equivalents $ 535 $ 6 $ — $ 541 $ 541 Investment securities 59 1,927 6 1,992 1,992 Net finance receivables, less allowance for finance receivable losses — — 20,083 20,083 17,117 Restricted cash and restricted cash equivalents 476 — — 476 476 Other assets * — — 52 52 46 Liabilities Long-term debt $ — $ 18,781 $ — $ 18,781 $ 17,750 * Other assets at March 31, 2022 and December 31, 2021 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 March 31, 2022 Assets Cash equivalents in mutual funds $ 138 $ — $ — $ 138 Cash equivalents in securities — 9 — 9 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 71 — 71 Commercial paper — 57 — 57 Non-U.S. government and government sponsored entities — 154 — 154 Corporate debt 4 1,105 4 1,113 RMBS — 170 — 170 CMBS — 42 — 42 CDO/ABS — 82 — 82 Total available-for-sale securities 4 1,692 4 1,700 Other securities Bonds: Corporate debt — 8 — 8 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 25 — 25 Preferred stock 19 — — 19 Common stock 33 — 1 34 Total other securities 52 25 1 78 Total investment securities 56 1,717 5 1,778 Restricted cash equivalents in mutual funds 512 — — 512 Total $ 706 $ 1,726 $ 5 $ 2,437 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2021 Assets Cash equivalents in mutual funds $ 41 $ — $ — $ 41 Cash equivalents in securities — 6 — 6 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 79 — 79 Certificates of deposit and commercial paper — 50 — 50 Non-U.S. government and government sponsored entities — 155 — 155 Corporate debt 5 1,292 5 1,302 RMBS — 170 — 170 CMBS — 45 — 45 CDO/ABS — 90 — 90 Total available-for-sale securities 5 1,897 5 1,907 Other securities Bonds: Corporate debt — 9 — 9 RMBS — 1 — 1 CDO/ABS — 20 — 20 Total bonds — 30 — 30 Preferred stock 22 — — 22 Common stock 32 — 1 33 Total other securities 54 30 1 85 Total investment securities 59 1,927 6 1,992 Restricted cash equivalents in mutual funds 468 — — 468 Total $ 568 $ 1,933 $ 6 $ 2,507 Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 18 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. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. |
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. |
USE OF 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. Upon adoption, our assumptions used to measure the liability for future policy benefits will be updated at least annually. The guidance requires the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU become effective for the Company beginning January 1, 2023 and we have selected the modified retrospective transition method. The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all the amendments in this ASU at the time of adoption. The Company’s long-duration contracts include term life, accidental death and dismemberment, and disability income protection. We will utilize an actuarial software solution to meet the new accounting and disclosure requirements, and we continue to refine the development of the actuarial model and assumptions. After the model has been subject to a parallel testing phase in 2022, the Company will provide further disclosure regarding the estimated impact of the adoption of the ASU on our consolidated financial statements. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating whether adoption of this ASU will have a material impact 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) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of our net finance receivables were as follows: (dollars in millions) Personal Loans Credit Cards Total March 31, 2022 Gross finance receivables (a) $ 18,693 $ 49 $ 18,742 Unearned fees (218) (1) (219) Accrued finance charges and fees 278 1 279 Deferred origination costs 176 1 177 Total $ 18,929 $ 50 $ 18,979 December 31, 2021 Gross finance receivables (a) $ 18,944 $ 24 $ 18,968 Unearned fees (225) (1) (226) Accrued finance charges and fees 289 — 289 Deferred origination costs 179 2 181 Total $ 19,187 $ 25 $ 19,212 (a) Gross finance receivables equal the unpaid principal balance of our personal loans and credit cards. 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 personal loans by the year of origination and number of days delinquent: (dollars in millions) 2022 2021 2020 2019 2018 Prior Total March 31, 2022 Performing Current $ 2,771 $ 9,057 $ 3,252 $ 2,153 $ 622 $ 229 $ 18,084 30-59 days past due 3 131 55 37 13 7 246 60-89 days past due — 99 42 26 9 5 181 Total performing 2,774 9,287 3,349 2,216 644 241 18,511 Nonperforming (Nonaccrual) 90+ days past due — 202 113 70 21 12 418 Total $ 2,774 $ 9,489 $ 3,462 $ 2,286 $ 665 $ 253 $ 18,929 (dollars in millions) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Performing Current $ 10,645 $ 3,935 $ 2,641 $ 814 $ 193 $ 109 $ 18,337 30-59 days past due 125 74 53 19 6 5 282 60-89 days past due 81 53 33 11 4 3 185 Total performing 10,851 4,062 2,727 844 203 117 18,804 Nonperforming (Nonaccrual) 90+ days past due 125 130 85 28 9 6 383 Total $ 10,976 $ 4,192 $ 2,812 $ 872 $ 212 $ 123 $ 19,187 The following is a summary of credit cards by number of days delinquent: (dollars in millions) March 31, 2022 December 31, 2021 Current $ 47 $ 25 30-59 days past due 2 — 60-89 days past due 1 — 90+ days past due — — Total $ 50 $ 25 |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) March 31, 2022 December 31, 2021 TDR gross finance receivables $ 652 $ 646 TDR net finance receivables * 656 650 Allowance for TDR finance receivable losses 263 270 * TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs. |
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 (dollars in millions) 2022 2021 Pre-modification TDR net finance receivables $ 134 $ 116 Post-modification TDR net finance receivables: Rate reduction 87 78 Other * 47 38 Total post-modification TDR net finance receivables $ 134 $ 116 Number of TDR accounts 16,165 14,508 * “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 (dollars in millions) 2022 2021 TDR net finance receivables * $ 30 $ 30 Number of TDR accounts 3,796 4,183 * 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) | 3 Months Ended |
Mar. 31, 2022 | |
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: (dollars in millions) Personal Loans Credit Cards Total Three Months Ended March 31, 2022 Balance at beginning of period $ 2,090 $ 5 $ 2,095 Provision for finance receivable losses 233 5 238 Charge-offs (329) — (329) Recoveries 67 — 67 Balance at end of period $ 2,061 $ 10 $ 2,071 Three Months Ended March 31, 2021* Balance at beginning of period $ 2,269 $ — $ 2,269 Provision for finance receivable losses (2) — (2) Charge-offs (255) — (255) Recoveries 50 — 50 Balance at end of period $ 2,062 $ — $ 2,062 * There were no credit cards for the three months ended March 31, 2021 as the product offering began in the third quarter of 2021. |
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) Personal Loans Credit Cards Total March 31, 2022 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,798 $ 10 $ 1,808 TDR finance receivables 263 — 263 Total $ 2,061 $ 10 $ 2,071 Finance receivables: Collectively evaluated for impairment $ 18,273 $ 50 $ 18,323 TDR finance receivables 656 — 656 Total $ 18,929 $ 50 $ 18,979 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.99 % 10.91 % December 31, 2021 Allowance for finance receivable losses: Collectively evaluated for impairment $ 1,820 $ 5 $ 1,825 TDR finance receivables 270 — 270 Total $ 2,090 $ 5 $ 2,095 Finance receivables: Collectively evaluated for impairment $ 18,537 $ 25 $ 18,562 TDR finance receivables 650 — 650 Total $ 19,187 $ 25 $ 19,212 Allowance for finance receivable losses as a percentage of finance receivables 10.89 % 19.91 % 10.90 % |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 74 — (3) 71 Commercial paper 57 — — 57 Non-U.S. government and government sponsored entities 156 1 (3) 154 Corporate debt 1,140 11 (38) 1,113 Mortgage-backed, asset-backed, and collateralized: RMBS 177 1 (8) 170 CMBS 43 — (1) 42 CDO/ABS 85 — (3) 82 Total $ 1,743 $ 13 $ (56) $ 1,700 December 31, 2021* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 16 $ — $ — $ 16 Obligations of states, municipalities, and political subdivisions 76 3 — 79 Commercial paper 50 — — 50 Non-U.S. government and government sponsored entities 151 4 — 155 Corporate debt 1,246 61 (5) 1,302 Mortgage-backed, asset-backed, and collateralized: RMBS 169 3 (2) 170 CMBS 44 1 — 45 CDO/ABS 90 1 (1) 90 Total $ 1,842 $ 73 $ (8) $ 1,907 * The allowance for credit losses related to our investment securities as of March 31, 2022 and December 31, 2021 were immaterial. |
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 March 31, 2022 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 48 (3) 2 — 50 (3) Commercial paper 47 — — — 47 — Non-U.S. government and government sponsored entities 91 (3) 6 — 97 (3) Corporate debt 584 (31) 48 (7) 632 (38) Mortgage-backed, asset-backed, and collateralized: RMBS 125 (6) 20 (2) 145 (8) CMBS 31 (1) — — 31 (1) CDO/ABS 61 (3) 5 — 66 (3) Total $ 993 $ (47) $ 81 $ (9) $ 1,074 $ (56) December 31, 2021 U.S. government and government sponsored entities $ 6 $ — $ — $ — $ 6 $ — Obligations of states, municipalities, and political subdivisions 10 — — — 10 — Commercial paper 46 — — — 46 — Non-U.S. government and government sponsored entities 19 — 5 — 24 — Corporate debt 208 (3) 38 (2) 246 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 81 (1) 15 (1) 96 (2) CMBS 7 — — — 7 — CDO/ABS 41 (1) 3 — 44 (1) Total $ 418 $ (5) $ 61 $ (3) $ 479 $ (8) |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2022 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 180 $ 179 Due after 1 year through 5 years 493 496 Due after 5 years through 10 years 572 598 Due after 10 years 161 165 Mortgage-backed, asset-backed, and collateralized securities 294 305 Total $ 1,700 $ 1,743 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) March 31, 2022 December 31, 2021 Fixed maturity other securities: Bonds $ 25 $ 30 Preferred stock * 19 22 Common stock * 34 33 Total $ 78 $ 85 * 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) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Unsecured Junior Total Interest rates (b) 0.81%-6.94% 0.99%-1.15% 3.50%-8.88% 1.99 % Remainder of 2022 $ — $ — $ — $ — $ — 2023 — — 1,175 — 1,175 2024 — — 1,300 — 1,300 2025 — — 1,835 — 1,835 2026 — — 1,600 — 1,600 2027-2067 — — 3,750 350 4,100 Securitizations (c) 7,184 — — — 7,184 Revolving conduit facilities (c) — 650 — — 650 Total principal maturities $ 7,184 $ 650 $ 9,660 $ 350 $ 17,844 Total carrying amount $ 7,153 $ 650 $ 9,585 $ 172 $ 17,560 Debt issuance costs (d) (29) — (77) — (106) (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 March 31, 2022. (c) Securitizations and borrowings under the revolving conduit facilities 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. 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 and unsecured corporate revolver, which totaled $30 million at March 31, 2022 and are reported in “Other assets.” |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, 2022 December 31, 2021 Assets Cash and cash equivalents $ 2 $ 2 Net finance receivables 8,579 8,821 Allowance for finance receivable losses 896 910 Restricted cash and restricted cash equivalents 509 466 Other assets 27 26 Liabilities Long-term debt $ 7,803 $ 7,999 Other liabilities 12 13 |
Insurance (Tables)
Insurance (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) 2022 2021 Balance at beginning of period $ 118 $ 148 Less reinsurance recoverables (3) (3) Net balance at beginning of period 115 145 Additions for losses and loss adjustment expenses incurred to: Current year 58 57 Prior years * (8) (18) Total 50 39 Reductions for losses and loss adjustment expenses paid related to: Current year (16) (18) Prior years (35) (47) Total (51) (65) Net balance at end of period 114 119 Plus reinsurance recoverables 3 3 Balance at end of period $ 117 $ 122 * At March 31, 2022, $8 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit and term life claims during the period. At March 31, 2021, $18 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability and unemployment claims during the period. |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (OMH Only) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Balance at beginning of period 127,809,640 134,341,724 Common stock issued 252,277 135,372 Common stock repurchased (2,282,552) — Treasury stock issued 14,471 — Balance at end of period 125,793,836 134,477,096 |
Computation of earnings per share | The computation of earnings per share was as follows: Three Months Ended March 31, (dollars in millions, except per share data) 2022 2021 Numerator (basic and diluted): Net income $ 301 $ 413 Denominator: Weighted average number of shares outstanding (basic) 127,075,714 134,405,368 Effect of dilutive securities * 387,313 401,797 Weighted average number of shares outstanding (diluted) 127,463,027 134,807,165 Earnings per share: Basic $ 2.37 $ 3.07 Diluted $ 2.36 $ 3.06 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Balance at beginning of period $ 49 $ 1 $ 3 $ 8 $ 61 Other comprehensive income (loss) before reclassifications (81) — 1 10 (70) Reclassification adjustments from accumulated other comprehensive loss (2) — — — (2) Balance at end of period $ (34) $ 1 $ 4 $ 18 $ (11) Three Months Ended March 31, 2021 Balance at beginning of period $ 91 $ 1 $ 2 $ — $ 94 Other comprehensive income (loss) before reclassifications (33) — 2 17 $ (14) Balance at end of period $ 58 $ 1 $ 4 $ 17 $ 80 (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 months ended March 31, 2022 and 2021. (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) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Interest income $ 1,087 $ 1 $ 1 $ 1,089 Interest expense 217 1 1 219 Provision for finance receivable losses 237 — 1 238 Net interest income after provision for finance receivable losses 633 — (1) 632 Other revenues 158 4 — 162 Other expenses 395 4 (1) 398 Income before income tax expense $ 396 $ — $ — $ 396 Assets $ 19,748 $ 40 $ 2,020 $ 21,808 Three Months Ended March 31, 2021 Interest income $ 1,057 $ 1 $ 2 $ 1,060 Interest expense 233 1 1 235 Provision for finance receivable losses (3) — 1 (2) Net interest income after provision for finance receivable losses 827 — — 827 Other revenues 98 3 (10) 91 Other expenses 358 6 8 372 Income (loss) before income tax expense (benefit) $ 567 $ (3) $ (18) $ 546 Assets $ 19,194 $ 57 $ 2,034 $ 21,285 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Assets Cash and cash equivalents $ 631 $ 9 $ — $ 640 $ 640 Investment securities 56 1,717 5 1,778 1,778 Net finance receivables, less allowance for finance receivable losses — — 19,479 19,479 16,908 Restricted cash and restricted cash equivalents 531 — — 531 531 Other assets * — — 51 51 43 Liabilities Long-term debt $ — $ 17,537 $ — $ 17,537 $ 17,560 December 31, 2021 Assets Cash and cash equivalents $ 535 $ 6 $ — $ 541 $ 541 Investment securities 59 1,927 6 1,992 1,992 Net finance receivables, less allowance for finance receivable losses — — 20,083 20,083 17,117 Restricted cash and restricted cash equivalents 476 — — 476 476 Other assets * — — 52 52 46 Liabilities Long-term debt $ — $ 18,781 $ — $ 18,781 $ 17,750 |
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 March 31, 2022 Assets Cash equivalents in mutual funds $ 138 $ — $ — $ 138 Cash equivalents in securities — 9 — 9 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 71 — 71 Commercial paper — 57 — 57 Non-U.S. government and government sponsored entities — 154 — 154 Corporate debt 4 1,105 4 1,113 RMBS — 170 — 170 CMBS — 42 — 42 CDO/ABS — 82 — 82 Total available-for-sale securities 4 1,692 4 1,700 Other securities Bonds: Corporate debt — 8 — 8 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 25 — 25 Preferred stock 19 — — 19 Common stock 33 — 1 34 Total other securities 52 25 1 78 Total investment securities 56 1,717 5 1,778 Restricted cash equivalents in mutual funds 512 — — 512 Total $ 706 $ 1,726 $ 5 $ 2,437 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2021 Assets Cash equivalents in mutual funds $ 41 $ — $ — $ 41 Cash equivalents in securities — 6 — 6 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 16 — 16 Obligations of states, municipalities, and political subdivisions — 79 — 79 Certificates of deposit and commercial paper — 50 — 50 Non-U.S. government and government sponsored entities — 155 — 155 Corporate debt 5 1,292 5 1,302 RMBS — 170 — 170 CMBS — 45 — 45 CDO/ABS — 90 — 90 Total available-for-sale securities 5 1,897 5 1,907 Other securities Bonds: Corporate debt — 9 — 9 RMBS — 1 — 1 CDO/ABS — 20 — 20 Total bonds — 30 — 30 Preferred stock 22 — — 22 Common stock 32 — 1 33 Total other securities 54 30 1 85 Total investment securities 59 1,927 6 1,992 Restricted cash equivalents in mutual funds 468 — — 468 Total $ 568 $ 1,933 $ 6 $ 2,507 |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Whole loan sale flow agreement, quarterly loans sold | $ 180 | ||
Proceeds from sale of gross finance receivables | 180 | $ 45 | |
Gain on sale of financing receivables | 17 | 4 | |
Unused credit card lines | $ 42 | $ 54 | |
Minimum | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, original term | 3 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Whole loan sale flow agreement, commitment period | 2 years | ||
Maximum | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, original term | 6 years | ||
Unlikely to be Collected Financing Receivable | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 60 days | ||
Nonperforming (Nonaccrual) | Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 90 days | ||
Reversal of net accrued finance charges | $ 27 | 20 | |
Interest income | $ 4 | $ 4 | |
Nonperforming (Nonaccrual) | Credit Cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 180 days |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 18,742 | $ 18,968 |
Unearned fees | (219) | (226) |
Accrued finance charges and fees | 279 | 289 |
Deferred origination costs | 177 | 181 |
Financing Receivable, before Allowance for Credit Loss, Total | 18,979 | 19,212 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 18,693 | 18,944 |
Unearned fees | (218) | (225) |
Accrued finance charges and fees | 278 | 289 |
Deferred origination costs | 176 | 179 |
Financing Receivable, before Allowance for Credit Loss, Total | 18,929 | 19,187 |
Credit Cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 49 | 24 |
Unearned fees | (1) | (1) |
Accrued finance charges and fees | 1 | 0 |
Deferred origination costs | 1 | 2 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 50 | $ 25 |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Delinquency by finance receivables type | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 18,979 | $ 19,212 |
Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 2,774 | 10,976 |
Prior Year Two | 9,489 | 4,192 |
Prior Year Three | 3,462 | 2,812 |
Prior Year Four | 2,286 | 872 |
Prior Year Five | 665 | 212 |
Prior Year Six | 253 | 123 |
Financing Receivable, before Allowance for Credit Loss, Total | 18,929 | 19,187 |
Performing | ||
Delinquency by finance receivables type | ||
Prior Year One | 10,851 | |
Prior Year Two | 4,062 | |
Prior Year Three | 2,727 | |
Prior Year Four | 844 | |
Prior Year Five | 203 | |
Prior Year Six | 117 | |
Financing Receivable, before Allowance for Credit Loss, Total | 18,804 | |
Performing | Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 2,774 | |
Prior Year Two | 9,287 | |
Prior Year Three | 3,349 | |
Prior Year Four | 2,216 | |
Prior Year Five | 644 | |
Prior Year Six | 241 | |
Financing Receivable, before Allowance for Credit Loss, Total | 18,511 | |
Performing | Current | Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 2,771 | 10,645 |
Prior Year Two | 9,057 | 3,935 |
Prior Year Three | 3,252 | 2,641 |
Prior Year Four | 2,153 | 814 |
Prior Year Five | 622 | 193 |
Prior Year Six | 229 | 109 |
Financing Receivable, before Allowance for Credit Loss, Total | 18,084 | 18,337 |
Performing | 30-59 days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 3 | 125 |
Prior Year Two | 131 | 74 |
Prior Year Three | 55 | 53 |
Prior Year Four | 37 | 19 |
Prior Year Five | 13 | 6 |
Prior Year Six | 7 | 5 |
Financing Receivable, before Allowance for Credit Loss, Total | 246 | 282 |
Performing | 60-89 days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 0 | 81 |
Prior Year Two | 99 | 53 |
Prior Year Three | 42 | 33 |
Prior Year Four | 26 | 11 |
Prior Year Five | 9 | 4 |
Prior Year Six | 5 | 3 |
Financing Receivable, before Allowance for Credit Loss, Total | 181 | 185 |
Nonperforming (Nonaccrual) | 90+ days past due | Personal Loans | ||
Delinquency by finance receivables type | ||
Prior Year One | 0 | 125 |
Prior Year Two | 202 | 130 |
Prior Year Three | 113 | 85 |
Prior Year Four | 70 | 28 |
Prior Year Five | 21 | 9 |
Prior Year Six | 12 | 6 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 418 | $ 383 |
Finance Receivables - Summary o
Finance Receivables - Summary of Credit Cards by Number of Days Delinquent (Details) - Credit Cards - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Delinquency by finance receivables type | ||
Financing receivable | $ 50 | $ 25 |
Current | ||
Delinquency by finance receivables type | ||
Financing receivable | 47 | 25 |
30-59 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 2 | 0 |
60-89 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 1 | 0 |
90+ days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | $ 0 | $ 0 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
TDR gross finance receivables | $ 652 | $ 646 |
TDR net finance receivables | 656 | 650 |
Allowance for TDR finance receivable losses | $ 263 | $ 270 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)account | Mar. 31, 2021USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-modification TDR net finance receivables | $ 134 | $ 116 |
Total post-modification TDR net finance receivables | $ 134 | $ 116 |
Number of TDR accounts | account | 16,165 | 14,508 |
Rate reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total post-modification TDR net finance receivables | $ 87 | $ 78 |
Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total post-modification TDR net finance receivables | $ 47 | $ 38 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)account | Mar. 31, 2021USD ($)account | |
Receivables [Abstract] | ||
TDR net finance receivables | $ | $ 30 | $ 30 |
Number of TDR accounts | account | 3,796 | 4,183 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in allowance for finance receivable losses | ||
Balance at beginning of period | $ 2,095 | $ 2,269 |
Provision for finance receivable losses | 238 | (2) |
Charge-offs | (329) | (255) |
Recoveries | 67 | 50 |
Balance at end of period | 2,071 | 2,062 |
Personal Loans | ||
Changes in allowance for finance receivable losses | ||
Balance at beginning of period | 2,090 | 2,269 |
Provision for finance receivable losses | 233 | (2) |
Charge-offs | (329) | (255) |
Recoveries | 67 | 50 |
Balance at end of period | 2,061 | 2,062 |
Credit Cards | ||
Changes in allowance for finance receivable losses | ||
Balance at beginning of period | 5 | 0 |
Provision for finance receivable losses | 5 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | $ 10 | $ 0 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | $ 1,808 | $ 1,825 | ||
TDR finance receivables | 263 | 270 | ||
Total | 2,071 | 2,095 | $ 2,062 | $ 2,269 |
Finance receivables: | ||||
Collectively evaluated for impairment | 18,323 | 18,562 | ||
TDR finance receivables | 656 | 650 | ||
Net finance receivables | $ 18,979 | $ 19,212 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 10.91% | 10.90% | ||
Personal Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | $ 1,798 | $ 1,820 | ||
TDR finance receivables | 263 | 270 | ||
Total | 2,061 | 2,090 | 2,062 | 2,269 |
Finance receivables: | ||||
Collectively evaluated for impairment | 18,273 | 18,537 | ||
TDR finance receivables | 656 | 650 | ||
Net finance receivables | $ 18,929 | $ 19,187 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 10.89% | 10.89% | ||
Credit Cards | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | $ 10 | $ 5 | ||
TDR finance receivables | 0 | 0 | ||
Total | 10 | 5 | $ 0 | $ 0 |
Finance receivables: | ||||
Collectively evaluated for impairment | 50 | 25 | ||
TDR finance receivables | 0 | 0 | ||
Net finance receivables | $ 50 | $ 25 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 19.99% | 19.91% |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,743 | $ 1,842 |
Unrealized Gains | 13 | 73 |
Unrealized Losses | (56) | (8) |
Fair Value | 1,700 | 1,907 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 11 | 16 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 11 | 16 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 74 | 76 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (3) | 0 |
Fair Value | 71 | 79 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 57 | 50 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 57 | 50 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 156 | 151 |
Unrealized Gains | 1 | 4 |
Unrealized Losses | (3) | 0 |
Fair Value | 154 | 155 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,140 | 1,246 |
Unrealized Gains | 11 | 61 |
Unrealized Losses | (38) | (5) |
Fair Value | 1,113 | 1,302 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 177 | 169 |
Unrealized Gains | 1 | 3 |
Unrealized Losses | (8) | (2) |
Fair Value | 170 | 170 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 43 | 44 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (1) | 0 |
Fair Value | 42 | 45 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 85 | 90 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (3) | (1) |
Fair Value | $ 82 | $ 90 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)investment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest receivable | $ 12 | $ 13 | |
Investment securities in an unrealized loss position | investment | 1,406 | 570 | |
Proceeds from sales and redemptions | $ 163 | $ 67 | |
Securities on deposit with third parties | $ 556 | $ 587 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less Than 12 Months | $ 993 | $ 418 |
12 Months or Longer | 81 | 61 |
Total | 1,074 | 479 |
Unrealized Losses | ||
Less Than 12 Months | (47) | (5) |
12 Months or Longer | (9) | (3) |
Total | (56) | (8) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 6 | 6 |
12 Months or Longer | 0 | 0 |
Total | 6 | 6 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 48 | 10 |
12 Months or Longer | 2 | 0 |
Total | 50 | 10 |
Unrealized Losses | ||
Less Than 12 Months | (3) | 0 |
12 Months or Longer | 0 | 0 |
Total | (3) | 0 |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 47 | 46 |
12 Months or Longer | 0 | 0 |
Total | 47 | 46 |
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 | 91 | 19 |
12 Months or Longer | 6 | 5 |
Total | 97 | 24 |
Unrealized Losses | ||
Less Than 12 Months | (3) | 0 |
12 Months or Longer | 0 | 0 |
Total | (3) | 0 |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 584 | 208 |
12 Months or Longer | 48 | 38 |
Total | 632 | 246 |
Unrealized Losses | ||
Less Than 12 Months | (31) | (3) |
12 Months or Longer | (7) | (2) |
Total | (38) | (5) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 125 | 81 |
12 Months or Longer | 20 | 15 |
Total | 145 | 96 |
Unrealized Losses | ||
Less Than 12 Months | (6) | (1) |
12 Months or Longer | (2) | (1) |
Total | (8) | (2) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 31 | 7 |
12 Months or Longer | 0 | 0 |
Total | 31 | 7 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | 0 |
Total | (1) | 0 |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 61 | 41 |
12 Months or Longer | 5 | 3 |
Total | 66 | 44 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (1) |
12 Months or Longer | 0 | 0 |
Total | $ (3) | $ (1) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) $ in Millions | Mar. 31, 2022USD ($) |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |
Due in 1 year or less | $ 180 |
Due after 1 year through 5 years | 493 |
Due after 5 years through 10 years | 572 |
Due after 10 years | 161 |
Mortgage-backed, asset-backed, and collateralized securities | 294 |
Total | 1,700 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |
Due in 1 year or less | 179 |
Due after 1 year through 5 years | 496 |
Due after 5 years through 10 years | 598 |
Due after 10 years | 165 |
Mortgage-backed, asset-backed, and collateralized securities | 305 |
Cost/ Amortized Cost | $ 1,743 |
Investment Securities - Fair _2
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 25 | $ 30 |
Total | 78 | 85 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 19 | 22 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 34 | $ 33 |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2022 | $ 0 | |
2023 | 1,175 | |
2024 | 1,300 | |
2025 | 1,835 | |
2026 | 1,600 | |
2027-2067 | 4,100 | |
Total principal maturities | 17,844 | |
Long-term debt | 17,560 | $ 17,750 |
Debt issuance costs | (106) | |
Securitization [Member] | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027-2067 | 0 | |
Securitizations and Revolving conduit facilities | 7,184 | |
Total principal maturities | 7,184 | |
Long-term debt | 7,153 | |
Debt issuance costs | $ (29) | |
Securitization [Member] | Minimum | ||
Long-term debt | ||
Interest rate | 0.81% | |
Securitization [Member] | Maximum | ||
Long-term debt | ||
Interest rate | 6.94% | |
Revolving Conduit Facilities | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2022 | $ 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027-2067 | 0 | |
Securitizations and Revolving conduit facilities | 650 | |
Total principal maturities | 650 | |
Long-term debt | 650 | |
Debt issuance costs | $ 0 | |
Revolving Conduit Facilities | Minimum | ||
Long-term debt | ||
Interest rate | 0.99% | |
Revolving Conduit Facilities | Maximum | ||
Long-term debt | ||
Interest rate | 1.15% | |
Unsecured Notes | Securitization [Member] | ||
Principal maturities of long-term debt by type of debt | ||
Debt issuance costs | $ 30 | |
Unsecured Notes | Unsecured Notes | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2022 | 0 | |
2023 | 1,175 | |
2024 | 1,300 | |
2025 | 1,835 | |
2026 | 1,600 | |
2027-2067 | 3,750 | |
Total principal maturities | 9,660 | |
Long-term debt | 9,585 | |
Debt issuance costs | $ (77) | |
Unsecured Notes | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 3.50% | |
Unsecured Notes | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 8.88% | |
Junior Subordinated Debt | ||
Long-term debt | ||
Interest rate | 1.99% | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2022 | $ 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027-2067 | 350 | |
Total principal maturities | 350 | |
Long-term debt | 172 | |
Debt issuance costs | $ 0 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 640 | $ 541 | $ 1,301 | |
Net finance receivables | 18,979 | 19,212 | ||
Allowance for finance receivable losses | 2,071 | 2,095 | 2,062 | $ 2,269 |
Restricted cash and restricted cash equivalents | 531 | 476 | $ 571 | |
Other assets | 981 | 1,003 | ||
Long-term debt | 17,560 | 17,750 | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 2 | 2 | ||
Net finance receivables | 8,579 | 8,821 | ||
Allowance for finance receivable losses | 896 | 910 | ||
Restricted cash and restricted cash equivalents | 509 | 466 | ||
Other assets | 27 | 26 | ||
Long-term debt | 7,803 | 7,999 | ||
Other liabilities | $ 12 | $ 13 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Interest expense | $ 219 | $ 235 |
Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Interest expense | $ 65 | $ 78 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) | 3 Months Ended |
Mar. 31, 2022 | |
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) - Consolidated VIEs - Securitizations $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)facility | |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 14 |
Total borrowing capacity | $ 6,000 |
Debt instrument, term | 9 years |
Amounts drawn | $ 650 |
Remaining borrowing capacity | $ 5,400 |
Insurance - Changes in the Rese
Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 118 | $ 148 | ||
Less reinsurance recoverables | (3) | (3) | $ (3) | $ (3) |
Net balance at beginning of period | 115 | 145 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 58 | 57 | ||
Prior years | (8) | (18) | ||
Total | 50 | 39 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (16) | (18) | ||
Prior years | (35) | (47) | ||
Total | (51) | (65) | ||
Net balance at end of period | 114 | 119 | ||
Plus reinsurance recoverables | 3 | 3 | $ 3 | $ 3 |
Balance at end of period | $ 117 | $ 122 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022class | |
Earnings Per Share [Abstract] | |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 127,809,640 | 134,341,724 |
Common stock issued (in shares) | 252,277 | 135,372 |
Common stock repurchased (in shares) | (2,282,552) | 0 |
Treasury stock issued (in shares) | 14,471 | 0 |
Ending balance (in shares) | 125,793,836 | 134,477,096 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator (basic and diluted): | ||
Net income | $ 301 | $ 413 |
Denominator: | ||
Weighted average number of shares outstanding (basic) (in shares) | 127,075,714 | 134,405,368 |
Effect of dilutive securities (in shares) | 387,313 | 401,797 |
Weighted average number of shares outstanding (diluted) (in shares) | 127,463,027 | 134,807,165 |
Earnings per share: | ||
Basic (in dollars per share) | $ 2.37 | $ 3.07 |
Diluted (in dollars per share) | $ 2.36 | $ 3.06 |
Restricted stock units | ||
Earnings per share: | ||
Shares excluded in the diluted earnings per share calculation (in shares) | 1,172,754 | 133,004 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | $ 3,093 | $ 3,441 |
Other comprehensive income (loss) before reclassifications | (70) | (14) |
Reclassification adjustments from accumulated other comprehensive income | (2) | |
Balance at end of period | 3,089 | 3,308 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | 49 | 91 |
Other comprehensive income (loss) before reclassifications | (81) | (33) |
Reclassification adjustments from accumulated other comprehensive income | (2) | |
Balance at end of period | (34) | 58 |
Retirement Plan Liabilities Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | 1 | 1 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |
Balance at end of period | 1 | 1 |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | 3 | 2 |
Other comprehensive income (loss) before reclassifications | 1 | 2 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |
Balance at end of period | 4 | 4 |
Other | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | 8 | 0 |
Other comprehensive income (loss) before reclassifications | 10 | 17 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |
Balance at end of period | 18 | 17 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning of period | 61 | 94 |
Balance at end of period | $ (11) | $ 80 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax asset | $ 339 | $ 339 | |
Effective tax rate | 24.10% | 24.40% | |
Unrecognized tax benefits | $ 7 | $ 8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 1,089 | $ 1,060 | |
Interest expense | 219 | 235 | |
Provision for finance receivable losses | 238 | (2) | |
Net interest income after provision for finance receivable losses | 632 | 827 | |
Total other revenues | 162 | 91 | |
Total other expenses | 398 | 372 | |
Income before income taxes | 396 | 546 | |
Total assets | 21,808 | 21,285 | $ 22,079 |
Consumer and Insurance | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Interest income | 1,087 | 1,057 | |
Interest expense | 217 | 233 | |
Provision for finance receivable losses | 237 | (3) | |
Net interest income after provision for finance receivable losses | 633 | 827 | |
Total other revenues | 158 | 98 | |
Total other expenses | 395 | 358 | |
Income before income taxes | 396 | 567 | |
Total assets | 19,748 | 19,194 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 1 | 1 | |
Interest expense | 1 | 1 | |
Provision for finance receivable losses | 0 | 0 | |
Net interest income after provision for finance receivable losses | 0 | 0 | |
Total other revenues | 4 | 3 | |
Total other expenses | 4 | 6 | |
Income before income taxes | 0 | (3) | |
Total assets | 40 | 57 | |
Segment to GAAP Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest income | 1 | 2 | |
Interest expense | 1 | 1 | |
Provision for finance receivable losses | 1 | 1 | |
Net interest income after provision for finance receivable losses | (1) | 0 | |
Total other revenues | 0 | (10) | |
Total other expenses | (1) | 8 | |
Income before income taxes | 0 | (18) | |
Total assets | $ 2,020 | $ 2,034 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Assets | |||
Restricted cash and restricted cash equivalents | $ 531 | $ 476 | $ 571 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 640 | 541 | |
Investment securities | 1,778 | 1,992 | |
Net finance receivables, less allowance for finance receivable losses | 19,479 | 20,083 | |
Restricted cash and restricted cash equivalents | 531 | 476 | |
Other assets | 51 | 52 | |
Liabilities | |||
Long-term debt | 17,537 | 18,781 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 640 | 541 | |
Investment securities | 1,778 | 1,992 | |
Net finance receivables, less allowance for finance receivable losses | 16,908 | 17,117 | |
Restricted cash and restricted cash equivalents | 531 | 476 | |
Other assets | 43 | 46 | |
Liabilities | |||
Long-term debt | 17,560 | 17,750 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 631 | 535 | |
Investment securities | 56 | 59 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 531 | 476 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 9 | 6 | |
Investment securities | 1,717 | 1,927 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 17,537 | 18,781 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 5 | 6 | |
Net finance receivables, less allowance for finance receivable losses | 19,479 | 20,083 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 51 | 52 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 1,700 | $ 1,907 |
Other securities | 78 | 85 |
U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 11 | 16 |
Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 71 | 79 |
Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,113 | 1,302 |
RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 170 | 170 |
CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 42 | 45 |
CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 82 | 90 |
Level 1 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 56 | 59 |
Level 2 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 1,717 | 1,927 |
Level 3 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 5 | 6 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 138 | 41 |
Cash equivalents in securities | 9 | 6 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,700 | 1,907 |
Other securities | 78 | 85 |
Total investment securities | 1,778 | 1,992 |
Restricted cash equivalents in mutual funds | 512 | 468 |
Total | 2,437 | 2,507 |
Fair Value, Measurements, Recurring | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 25 | 30 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 11 | 16 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 71 | 79 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 57 | 50 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 154 | 155 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,113 | 1,302 |
Other securities | 8 | 9 |
Fair Value, Measurements, Recurring | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 170 | 170 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 42 | 45 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 82 | 90 |
Other securities | 16 | 20 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 19 | 22 |
Fair Value, Measurements, Recurring | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 34 | 33 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 138 | 41 |
Cash equivalents in securities | 0 | 0 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 5 |
Other securities | 52 | 54 |
Total investment securities | 56 | 59 |
Restricted cash equivalents in mutual funds | 512 | 468 |
Total | 706 | 568 |
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 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 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 | 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 | 19 | 22 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 33 | 32 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 9 | 6 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,692 | 1,897 |
Other securities | 25 | 30 |
Total investment securities | 1,717 | 1,927 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 1,726 | 1,933 |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 25 | 30 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 11 | 16 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 71 | 79 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 57 | 50 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 154 | 155 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,105 | 1,292 |
Other securities | 8 | 9 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 170 | 170 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 42 | 45 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 82 | 90 |
Other securities | 16 | 20 |
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 | 0 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 5 |
Other securities | 1 | 1 |
Total investment securities | 5 | 6 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 5 | 6 |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
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 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 4 | 5 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 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 |