10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-06155

SPRINGLEAF FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

Indiana	35-0416090
(State of Incorporation)	(I.R.S. Employer Identification No.)
601 N.W. Second Street, Evansville, IN	47708
(Address of principal executive offices)	(Zip Code)

(812) 424-8031

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o	Non-accelerated filer þ	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

At November 2, 2015, there were 10,160,020 shares of the registrant’s common stock, $0.50 par value, outstanding.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Condensed Consolidated Statements of Shareholder's Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	83
Item 4.	Controls and Procedures	83
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	84
Item 1A.	Risk Factors	84
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	84
Item 3.	Defaults Upon Senior Securities	84
Item 4.	Mine Safety Disclosures	84
Item 5.	Other Information	84
Item 6.	Exhibits	84

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.    

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(dollars in millions except par value amount)	September 30, 2015			December 31, 2014
Assets
Cash and cash equivalents	$	2,756		$	749
Investment securities	1,742			2,922
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $2.1 billion in 2015 and $1.9 billion in 2014)	3,990			3,800
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.7 billion in 2015 and $2.0 billion in 2014)	1,667			1,979
Real estate loans	547			625
Retail sales finance	27			48
Net finance receivables	6,231			6,452
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $131 million in 2015 and $72 million in 2014)	(191		)	(174		)
Net finance receivables, less allowance for finance receivable losses	6,040			6,278
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $484 million in 2015)	797			205
Note receivable from parent	322			251
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $256 million in 2015 and $210 million in 2014)	270			218
Other assets	455			474
Total assets	$	12,382		$	11,097
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $4.8 billion in 2015 and $3.6 billion in 2014)	$	9,555		$	8,356
Insurance claims and policyholder liabilities	467			446
Deferred and accrued taxes	146			159
Other liabilities	287			255
Total liabilities	10,455			9,216
Commitments and contingent liabilities (Note 14)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 shares issued and outstanding at September 30, 2015 and December 31, 2014	5			5
Additional paid-in capital	756			740
Accumulated other comprehensive income (loss)	(11		)	3
Retained earnings	1,331			1,321
Springleaf Finance Corporation shareholder’s equity	2,081			2,069
Non-controlling interests	(154		)	(188		)
Total shareholder’s equity	1,927			1,881
Total liabilities and shareholder’s equity	$	12,382		$	11,097

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(dollars in millions)	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Interest income:
Finance charges	$	419	$	385		$	1,221	$	1,172
Finance receivables held for sale originated as held for investment	4		47			13		54
Total interest income	423		432			1,234		1,226
Interest expense	171		172			500		526
Net interest income	252		260			734		700
Provision for finance receivable losses	82		93			247		274
Net interest income after provision for finance receivable losses	170		167			487		426
Other revenues:
Insurance	40		44			116		125
Investment	11		12			43		32
Net loss on repurchases and repayments of debt	—		—			—		(7		)
Net gain on fair value adjustments on debt	—		1			—		1
Net gain on sales of real estate loans and related trust assets	—		617			—		707
Other	4		(11		)	8		(3		)
Total other revenues	55		663			167		855
Other expenses:
Operating expenses:
Salaries and benefits	86		85			264		249
Other operating expenses	79		77			220		179
Insurance losses and loss adjustment expenses	17		20			53		57
Total other expenses	182		182			537		485
Income before provision for income taxes	43		648			117		796
Provision for income taxes	7		219			14		276
Net income	36		429			103		520
Net income attributable to non-controlling interests	31		23			93		23
Net income attributable to Springleaf Finance Corporation	$	5	$	406		$	10	$	497

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	36		$	429		$	103		$	520
Other comprehensive income (loss):
Net unrealized gains (losses) on non-credit impaired investment securities	(3		)	(4		)	(8		)	15
Income tax effect:
Net unrealized (gains) losses on non-credit impaired investment securities	1			2			3			(5		)
Other comprehensive income (loss), net of tax, before reclassification adjustments	(2		)	(2		)	(5		)	10
Reclassification adjustments included in net income:
Net realized gains on investment securities	(4		)	(3		)	(14		)	(6		)
Income tax effect:
Net realized gains on investment securities	2			1			5			2
Reclassification adjustments included in net income, net of tax	(2		)	(2		)	(9		)	(4		)
Other comprehensive income (loss), net of tax	(4		)	(4		)	(14		)	6
Comprehensive income	32			425			89			526
Comprehensive income attributable to non-controlling interests	31			23			93			23
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$	1		$	402		$	(4	)	$	503

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholder’s Equity (Unaudited)

	Springleaf Finance Corporation Shareholder’s Equity
(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Springleaf Finance Corporation Shareholder’s Equity			Non-controlling Interests			Total Shareholder’s Equity
Balance, January 1, 2015	$	5	$	740	$	3		$	1,321	$	2,069		$	(188	)	$	1,881
Non-cash incentive compensation from Initial Stockholder	—		15		—			—		15			—			15
Share-based compensation expense, net of forfeitures	—		1		—			—		1			—			1
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—		—			—		—			(59		)	(59		)
Change in net unrealized losses:
Available-for-sale securities	—		—		(14		)	—		(14		)	—			(14		)
Net income	—		—		—			10		10			93			103
Balance, September 30, 2015	$	5	$	756	$	(11	)	$	1,331	$	2,081		$	(154	)	$	1,927
Balance, January 1, 2014	$	5	$	422	$	28		$	873	$	1,328		$	—		$	1,328
Capital contributions from parent	—		22		—			—		22			—			22
Capital contribution of capital stock of Springleaf Acquisitions Corporation	—		295		—			—		295			395			690
Share-based compensation expense, net of forfeitures	—		1		—			—		1			—			1
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—		—			—		—			(9		)	(9		)
Change in net unrealized gains:
Available-for-sale securities	—		—		6			—		6			—			6
Net income	—		—		—			497		497			23			520
Balance, September 30, 2014	$	5	$	740	$	34		$	1,370	$	2,149		$	409		$	2,558

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(dollars in millions)	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities
Net income	$	103		$	520
Reconciling adjustments:
Provision for finance receivable losses	247			274
Depreciation and amortization	64			31
Deferred income tax charge (benefit)	(10		)	14
Non-cash incentive compensation from Initial Stockholder	15			—
Net gain on fair value adjustments on debt	—			(1		)
Net gain on sales of real estate loans and related trust assets	—			(707		)
Net charge-offs on finance receivables held for sale	—			11
Net loss on repurchases and repayments of debt	—			7
Share-based compensation expense, net of forfeitures	1			1
Other	(13		)	—
Cash flows due to changes in:
Other assets and other liabilities	23			62
Insurance claims and policyholder liabilities	22			36
Taxes receivable and payable	(29		)	(66		)
Accrued interest and finance charges	—			(11		)
Restricted cash and cash equivalents not reinvested	—			(3		)
Other, net	(1		)	—
Net cash provided by operating activities	422			168
Cash flows from investing activities
Finance receivables originated or purchased, net of deferred origination costs	(2,377		)	(1,841		)
Principal collections on finance receivables	1,825			1,908
Cash advances on intercompany notes receivables	(147		)	—
Principal collections on intercompany notes receivables	77			—
Sales and principal collections on finance receivables held for sale originated as held for investment	88			3,427
Available-for-sale investment securities purchased	(382		)	(261		)
Trading investment securities purchased	(1,457		)	(1,065		)
Available-for-sale investment securities called, sold, and matured	408			209
Trading investment securities called, sold, and matured	2,563			18
Change in restricted cash and cash equivalents	(46		)	5
Proceeds from sale of real estate owned	12			51
Other, net	1			4
Net cash provided by investing activities	565			2,455
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	1,929			672
Repayment of long-term debt	(850		)	(1,764		)
Distributions to joint venture partners	(59		)	(9		)
Capital contributions from parent	—			22
Net cash provided by (used for) financing activities	1,020			(1,079		)

Condensed Consolidated Statements of Cash Flows (Unaudited) (Continued)
(dollars in millions)	Nine Months Ended September 30,
	2015		2014
Net change in cash and cash equivalents	2,007		1,544
Cash and cash equivalents at beginning of period	749		375
Cash and cash equivalents at end of period	$	2,756	$	1,919
Supplemental non-cash activities
Transfer of finance receivables to real estate owned	$	8	$	46
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	$	608	$	6,810
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	$	—	$	2,342
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	$	—	$	1,652
Net unsettled investment security dispositions (purchases)	$	40	$	(28	)

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2015

1. Business and Basis of Presentation

Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). SFI is a wholly owned subsidiary of Springleaf Holdings, Inc. (“SHI”).

At September 30, 2015, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of SHI’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”) and AIG Capital Corporation, a subsidiary of American International Group, Inc. (“AIG”). At September 30, 2015, the economic interests of Fortress and AIG were 55% and 3%, respectively.

SFC is a financial services holding company with subsidiaries engaged in the consumer finance and insurance businesses.

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. 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 U.S. GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), 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. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 3 for further information on the adoption of this ASU.

Prior Period Revisions

During the fourth quarter of 2014, we discovered that our personal loans and loans included in the SpringCastle Portfolio deemed to be troubled debt restructured (“TDR”) finance receivables were previously incorrectly excluded in the related disclosures of our finance receivables and allowance for finance receivable losses. The applicable prior period amounts have been corrected in Notes 4 and 5 in this report.

During the fourth quarter of 2014, we discovered that our restricted cash and cash equivalents were overstated and other assets were understated by $15 million in our condensed consolidated balance sheets at September 30, 2014, as we incorrectly included escrow advances on our real estate loans held for sale in cash and cash equivalents. This error also resulted in our cash flows due to a decrease in restricted cash and cash equivalents not reinvested to be overstated and cash flows due to an increase in other assets and other liabilities to be overstated within the operating activities section of our condensed consolidated statements of cash flows for the nine months ended September 30, 2014. The affected amounts for the 2014 period have been corrected in our condensed consolidated statements of cash flows in this report. This classification error was not material to any previously issued financial statements.

During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million and decreased provision for income taxes by $3 million.

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During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We have evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements, however, we have corrected the previously disclosed periods in Note 16 of this report. We will also correct the prior period segment disclosures presented in our applicable quarterly and annual reports as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 17 of this report. This presentation error was not material to any previously issued financial statements.

2. Significant Transactions

SHI’S PENDING ACQUISITION OF ONEMAIN FINANCIAL

On March 2, 2015, SHI entered into a Stock Purchase Agreement with CitiFinancial Credit Company to acquire OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.) (“OneMain”), for an aggregate purchase price of $4.25 billion, which we refer to in this report as the “Proposed Acquisition”. There can be no assurance that the Proposed Acquisition will close, or, if it does, when the actual closing will occur. SHI continues to evaluate its plans regarding the integration of OneMain with its remaining businesses including us.

SHI’S EQUITY OFFERING

On May 4, 2015, SHI completed an offering of 27,864,525 shares of its common stock, consisting of 19,417,476 shares of common stock offered by SHI and 8,447,049 shares of common stock offered by the Initial Stockholder. SHI’s net proceeds from this sale were approximately $976 million, after deducting the underwriting discounts and commissions and additional offering-related expenses totaling $24 million. SHI intends to use the net proceeds of the offering, together with cash on hand, the proceeds from the sale of investment securities, and other funding options, to fund the Proposed Acquisition and/or for general corporate purposes, which may include debt repurchases and repayments, capital expenditures and other possible acquisitions.

In connection with SHI’s initial public offering in October 2013, certain executives of Springleaf received a grant of incentive units in the Initial Stockholder. These incentive units are subject to their continued employment with the Company and provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of SHI’s common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with Accounting Standards Codification Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in the second quarter of 2015 related to the incentive units.

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3. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

Push Down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on pushdown accounting from the Accounting Standards Codification. The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own pushdown accounting guidance in November 2014. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

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ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We are currently evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Cloud Computing Software

In April of 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other Internal-Use Software, to provide guidance on a customer’s accounting for fees paid in a cloud computing arrangement (“CCA”). Under the new standard, customers will apply the same criteria as vendors to determine whether a CCA contains a software license or is solely a service contract. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We evaluated the potential impact of adopting this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Fair Value Measurement Disclosures

In May of 2015, the FASB issued ASU 2015-07, Fair Value Measurement, to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We have a few investments for which fair value is measured using the net asset value per share practical expedient. However, application of this ASU will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of adopting the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after

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December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.

4. Finance Receivables

Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below:

• Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At September 30, 2015, $2.2 billion of personal loans, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.8 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured.

• SpringCastle Portfolio — are loans acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest (the “SpringCastle Portfolio”). These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans.

• Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At September 30, 2015, $209 million of real estate loans, or 38%, were secured by first mortgages and $338 million, or 62%, were secured by second mortgages. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans are in a liquidating status.

• Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status.

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Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
September 30, 2015
Gross receivables *	$	4,694		$	1,635	$	543		$	30		$	6,902
Unearned finance charges and points and fees	(802		)	—		—			(3		)	(805		)
Accrued finance charges	56			32		4			—			92
Deferred origination costs	42			—		—			—			42
Total	$	3,990		$	1,667	$	547		$	27		$	6,231
December 31, 2014
Gross receivables *	$	4,462		$	1,941	$	621		$	52		$	7,076
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	1,979	$	625		$	48		$	6,452

* Gross receivables are defined as follows:

• finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• finance receivables originated subsequent to the Fortress Acquisition (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Included in the table above are finance receivables associated with securitizations that remain on our balance sheet. At September 30, 2015 and December 31, 2014, the carrying values of these finance receivables totaled $2.1 billion and $1.9 billion, respectively, for our personal loans and $1.7 billion and $2.0 billion, respectively, for our SpringCastle Portfolio loans.

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Personal loans	$	2	$	1
SpringCastle Portfolio	366		354
Real estate loans	31		31
Total	$	399	$	386

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (1) the value of the collateral declines significantly; (2) we believe the borrower will be unable to fulfill the repayment obligations; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (1) the value of the real estate declines significantly below the property’s initial appraised value; (2) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion.

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CREDIT QUALITY INDICATORS

We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators.

We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at September 30, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges.

Delinquent Finance Receivables

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time.

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Net finance receivables:
60-89 days past due	$	47	$	24	$	16	$	1	$	88
90-119 days past due	36		15		4		—		55
120-149 days past due	29		11		3		—		43
150-179 days past due	23		9		2		—		34
180 days or more past due	2		1		12		—		15
Total delinquent finance receivables	137		60		37		1		235
Current	3,784		1,562		497		25		5,868
30-59 days past due	69		45		13		1		128
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Net finance receivables:
60-89 days past due	$	36	$	31	$	12	$	1	$	80
90-119 days past due	30		19		9		—		58
120-149 days past due	24		16		5		1		46
150-179 days past due	21		14		4		—		39
180 days or more past due	2		2		12		—		16
Total delinquent finance receivables	113		82		42		2		239
Current	3,632		1,839		565		45		6,081
30-59 days past due	55		58		18		1		132
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

Nonperforming Finance Receivables

We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss.

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Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Performing	$	3,900	$	1,631	$	526	$	27	$	6,084
Nonperforming	90		36		21		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Performing	$	3,723	$	1,928	$	595	$	47	$	6,293
Nonperforming	77		51		30		1		159
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

In connection with SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC on July 31, 2014 (the “SAC Capital Contribution”), SFC owns a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), certain of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013.

As a result of the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress (the “Fortress Acquisition”), we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination standards (“push-down accounting”) and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

We report the carrying amount of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below.

At September 30, 2015 and December 31, 2014, finance receivables held for sale totaled $797 million and $205 million, respectively. See Note 6 for further information on our finance receivables held for sale, which consist of certain of our personal loans and non-core real estate loans. Finance receivables held for sale include purchased credit impaired finance receivables as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below.

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
September 30, 2015
Carrying amount, net of allowance	$	251	$	86	$	337
Outstanding balance	515		139		654
Allowance for purchased credit impaired finance receivable losses	—		5		5
December 31, 2014
Carrying amount, net of allowance	$	340	$	93	$	433
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		5		5

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* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	FA Loans
September 30, 2015
Carrying amount, net of allowance	$	62
Outstanding balance	91
December 31, 2014
Carrying amount, net of allowance	$	68
Outstanding balance	99

The allowance for purchased credit impaired finance receivable losses at September 30, 2015 and December 31, 2014, reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows.

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	474		$	13		$	487
Accretion (a)	(20		)	(3		)	(23		)
Disposals of finance receivables (b)	(7		)	—			(7		)
Balance at end of period	$	447		$	10		$	457
Three Months Ended September 30, 2014
Balance at beginning of period	$	—		$	623		$	623
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(20		)	(31		)
Transfers due to finance receivables sold	—			(559		)	(559		)
Disposals of finance receivables (b)	(3		)	(4		)	(7		)
Balance at end of period	$	246		$	40		$	286
Nine Months Ended September 30, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(66		)	(8		)	(74		)
Disposals of finance receivables (b)	(28		)	(1		)	(29		)
Balance at end of period	$	447		$	10		$	457
Nine Months Ended September 30, 2014
Balance at beginning of period	$	—		$	767		$	767
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(75		)	(86		)
Transfers due to finance receivables sold	—			(637		)	(637		)
Disposals of finance receivables (b)	(3		)	(15		)	(18		)
Balance at end of period	$	246		$	40		$	286

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(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Accretion	$	2	$	11	$	5	$	11

(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period.

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
September 30, 2015
TDR gross finance receivables (b)	$	30	$	14	$	199	$	243
TDR net finance receivables	29		12		200		241
Allowance for TDR finance receivable losses	7		4		30		41
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
September 30, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

We have no commitments to lend additional funds on our TDR finance receivables.

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TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR average net receivables	$	30	$	12	$	199	$	241
TDR finance charges recognized	—		1		2		3
Three Months Ended September 30, 2014
TDR average net receivables (b)	$	17	$	8	$	797	$	822
TDR finance charges recognized	—		—		10		10
Nine Months Ended September 30, 2015
TDR average net receivables	$	28	$	12	$	197	$	237
TDR finance charges recognized	2		1		8		11
Nine Months Ended September 30, 2014
TDR average net receivables (b)	$	15	$	8	$	1,187	$	1,210
TDR finance charges recognized	1		—		45		46

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR average net receivables	$	92
TDR finance charges recognized	2
Three Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3
Nine Months Ended September 30, 2015
TDR average net receivables	$	91
TDR finance charges recognized	4
Nine Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3

(b) TDR SpringCastle Portfolio loans average net receivables for the three and nine months ended September 30, 2014 reflect a two-month average since the SAC Capital Contribution occurred on July 31, 2014.

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Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	8	$	1	$	6	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	1	$	3	$	7
Other (b)	3		—		2		5
Total post-modification TDR net finance receivables	$	6	$	1	$	5	$	12
Number of TDR accounts	1,545		142		95		1,782
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	5	$	2	$	28	$	35
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	2	$	26	$	31
Other (b)	2		—		4		6
Total post-modification TDR net finance receivables	$	5	$	2	$	30	$	37
Number of TDR accounts	1,125		246		403		1,774
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	24	$	5	$	16	$	45
Post-modification TDR net finance receivables:
Rate reduction	$	11	$	5	$	12	$	28
Other (b)	9		—		4		13
Total post-modification TDR net finance receivables	$	20	$	5	$	16	$	41
Number of TDR accounts	4,860		550		272		5,682
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	11	$	2	$	209	$	222
Post-modification TDR net finance receivables:
Rate reduction	$	7	$	2	$	154	$	163
Other (b)	4		—		45		49
Total post-modification TDR net finance receivables	$	11	$	2	$	199	$	212
Number of TDR accounts	2,678		246		2,290		5,214

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(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	2	$	2
Number of TDR accounts	50		33		83
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	4	$	4
Post-modification TDR net finance receivables *	$	—	$	5	$	5
Number of TDR accounts	50		77		127
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89

* Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above.

(b) “Other” modifications include extension of term and forgiveness of principal or interest.

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	342		26		9		377
Three Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	2	$	2
Number of TDR accounts	42		11		54		107
Nine Months Ended September 30, 2015
TDR net finance receivables (b)	$	3	$	1	$	2	$	6
Number of TDR accounts	855		122		35		1,012
Nine Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	31	$	31
Number of TDR accounts	74		11		488		573

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(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	1
Three Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30
Nine Months Ended September 30, 2015
TDR net finance receivables	$	1
Number of TDR accounts	14
Nine Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30

* TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

(c) TDR personal loans and SpringCastle Portfolio loans for the three and nine months ended September 30, 2014 and TDR SpringCastle Portfolio loans for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

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5. Allowance for Finance Receivable Losses

Changes in the allowance for finance receivable losses by finance receivable type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio			Real Estate Loans			Retail Sales Finance			Consolidated Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	139		$	3		$	35		$	1		$	178
Provision for finance receivable losses	60			20			2			—			82
Charge-offs	(57		)	(22		)	(4		)	—			(83		)
Recoveries	10			3			2			—			15
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Three Months Ended September 30, 2014
Balance at beginning of period	$	106		$	—		$	259		$	1		$	366
Provision for finance receivable losses	58			18			16			1			93
Charge-offs	(48		)	(20		)	(13		)	(1		)	(82		)
Recoveries	7			2			—			—			9
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(225		)	—			(225		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162
Nine Months Ended September 30, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	170			70			6			1			247
Charge-offs	(176		)	(78		)	(15		)	(2		)	(271		)
Recoveries	28			9			4			1			42
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Nine Months Ended September 30, 2014
Balance at beginning of period	$	94		$	—		$	236		$	2		$	332
Provision for finance receivable losses	150			18			103			3			274
Charge-offs	(139		)	(20		)	(67		)	(4		)	(230		)
Recoveries (c)	18			2			5			—			25
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(240		)	—			(240		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162

(a) During the three and nine months ended September 30, 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

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(c) Recoveries during the nine months ended September 30, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March of 2014.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $131 million at September 30, 2015 and $72 million at December 31, 2014. See Note 11 for further discussion regarding our securitization transactions.

The carrying value charged-off for purchased credit impaired loans was as follows:

(dollars in millions)	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	5	$	17	$	5
FA Loans gross charge-offs *	—		2		1		15

* Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status.

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The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	144	$	—	$	—	$	1	$	145
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—		—		5		—		5
Individually evaluated for impairment (TDR finance receivables)	7		4		30		—		41
Total	$	151	$	4	$	35	$	1	$	191
Finance receivables:
Collectively evaluated for impairment	$	3,963	$	1,404	$	410	$	27	$	5,804
Purchased credit impaired finance receivables	—		251		29		—		280
TDR finance receivables	27		12		108		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129	$	—	$	3	$	1	$	133
Purchased credit impaired finance receivables	—		—		5		—		5
TDR finance receivables	1		3		32		—		36
Total	$	130	$	3	$	40	$	1	$	174
Finance receivables:
Collectively evaluated for impairment	$	3,778	$	1,629	$	490	$	48	$	5,945
Purchased credit impaired finance receivables	—		340		30		—		370
TDR finance receivables	22		10		105		—		137
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

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6. Finance Receivables Held for Sale

We report finance receivables held for sale of $797 million at September 30, 2015 and $205 million at December 31, 2014, which are carried at the lower of cost or fair value. At September 30, 2015 and December 31, 2014, the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of the finance receivables held for sale. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our condensed consolidated statements of operations, which totaled $4 million and $13 million for the three and nine months ended September 30, 2015, respectively, compared to $47 million and $54 million for the three and nine months ended September 30, 2014, respectively.

On September 30, 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

During the three and nine months ended September 30, 2014, we transferred real estate loans totaling $5.3 billion and $6.6 billion, respectively, (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. During the three and nine months ended September 30, 2014, we sold the finance receivables held for sale totaling $4.7 billion and $6.0 billion, respectively, and recorded net gains of $617 million and $707 million, respectively. At September 30, 2015, these real estate loans held for sale totaled $189 million.

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7. Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	69	$	—	$	(1	)	$	68
Obligations of states, municipalities, and political subdivisions	83		1		—			84
Corporate debt	248		3		(6		)	245
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	79		—		—			79
Commercial mortgage-backed securities (“CMBS”)	39		—		—			39
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	32		—		—			32
Total bonds	550		4		(7		)	547
Preferred stock	16		—		—			16
Other long-term investments	1		—		—			1
Total (a)	$	567	$	4	$	(7	)	$	564
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014, primarily to support bank lines of credit.

As of September 30, 2015 and December 31, 2014, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss.

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Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *		Fair Value		Unrealized Losses
September 30, 2015
Bonds:
U.S. government and government sponsored entities	$	51	$	(1	)	$	—	$	—	$	51	$	(1	)
Obligations of states, municipalities, and political subdivisions	15		—			11		—		26		—
Corporate debt	107		(6		)	14		—		121		(6		)
RMBS	8		—			—		—		8		—
CMBS	19		—			7		—		26		—
CDO/ABS	16		—			—		—		16		—
Total bonds	216		(7		)	32		—		248		(7		)
Preferred stock	6		—			—		—		6		—
Other long-term investments	1		—			—		—		1		—
Total	$	223	$	(7	)	$	32	$	—	$	255	$	(7	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—	$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—		28		—
Corporate debt	36		(1		)	6		—		42		(1		)
RMBS	9		—			—		—		9		—
CMBS	16		(1		)	2		—		18		(1		)
CDO/ABS	46		—			—		—		46		—
Total bonds	134		(2		)	10		—		144		(2		)
Preferred stock	6		—			—		—		6		—
Total	$	140	$	(2	)	$	10	$	—	$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

We continue to monitor unrealized loss positions for potential impairments. During the three and nine months ended September 30, 2015 and 2014, we did not recognize any other-than-temporary impairment credit loss write-downs to investment revenues.

During the three and nine months ended September 30, 2015 and 2014, there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities.

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The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015			2014
Fair value	$	168	$	105	$	372		$	203
Realized gains	$	4	$	5	$	15		$	7
Realized losses	—		—		(1		)	—
Net realized gains	$	4	$	5	$	14		$	7

Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	72	$	72
Due after 1 year through 5 years	150		150
Due after 5 years through 10 years	57		57
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	150		150
Total	$	547	$	550

Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies.

The fair value of bonds on deposit with insurance regulatory authorities totaled $11 million and $12 million at September 30, 2015 and December 31, 2014, respectively.

TRADING SECURITIES

The fair value of trading securities by type was as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Fixed maturity trading securities:
Bonds:
U.S. government and government sponsored entities	$	783	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	196		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	2		35
CMBS	45		149
CDO/ABS	151		507
Total	$	1,177	$	2,321

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The net unrealized and realized gains (losses) on our trading securities, which we report in investment revenues, were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net unrealized gains (losses) on trading securities held at period end	$	(1	)	$	(2	)	$	3		$	(1	)
Net realized losses on trading securities sold or redeemed	(1		)	—			(2		)	—
Total	$	(2	)	$	(2	)	$	1		$	(1	)

8. Transactions with Affiliates of Fortress or AIG

SUBSERVICING AGREEMENT

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of less than $1 million for the three months ended September 30, 2015, and $1 million for the nine months ended September 30, 2015, compared to $1 million and $5 million for the three and nine months ended September 30, 2014, respectively.

As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014, our exposure to these affiliated services is reduced.

INVESTMENT MANAGEMENT AGREEMENT

Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services were under $1 million for the three months ended September 30, 2015 and 2014, and $1 million for the nine months ended September 30, 2015 and 2014.

REINSURANCE AGREEMENTS

Merit Life Insurance Co. (“Merit”), our wholly owned subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit accident and health insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $43 million and $44 million at September 30, 2015 and December 31, 2014, respectively.

INSURANCE COVERAGE

We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies were under $1 million for the three months ended September 30, 2015 and 2014 and $1 million for the nine months ended September 30, 2015 and 2014.

JOINT VENTURE

Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress.

THIRD STREET DISPOSITION

On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress.

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MSR SALE

SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million. In May of 2015, Nationstar paid off the remaining balance of $1 million of this receivable. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

9. Related Party Transactions

AFFILIATE LENDING

Note Receivable from Parent

SFC’s note receivable from parent is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2015 and does not expect to demand payment from SFI in 2015. The note receivable from parent totaled $322 million at September 30, 2015 and $251 million at December 31, 2014. Interest receivable on this note totaled $2 million at September 30, 2015 and was less than $1 million at December 31, 2014. The interest rate for the unpaid principal balance is the lender’s cost of funds rate. Interest revenue on the note receivable from SFI totaled $5 million and $11 million, for the three and nine months ended September 30, 2015, respectively, compared to $1 million and $4 million for the three and nine months ended September 30, 2014, respectively.

Receivables from Parent and Affiliates

At September 30, 2015 and December 31, 2014, receivables from parent and affiliates totaled $7 million and $12 million, respectively. SFC had a receivable from Second Street Funding Corporation, a subsidiary of SFI, for income taxes payable under current and prior tax sharing agreements, which totaled $4 million at September 30, 2015 and $4 million at December 31, 2014. Receivables from parent and affiliates also included interest receivable on SFC’s note receivable from SFI previously discussed in this Note. Receivables from parent and affiliates at September 30, 2015 and December 31, 2014 are presented net of a payable to SFI of $9 million and $43 million, respectively. Excluding this payable, receivables from parent and affiliates totaled $16 million at September 30, 2015 and $54 million at December 31, 2014.

Payables to Parent and Affiliates

At September 30, 2015 and December 31, 2014, payables to parent and affiliates totaled $19 million and $48 million, respectively. SFC’s payable to parent totaled $2 million and $17 million at September 30, 2015 and December 31, 2014, respectively, primarily due to payments made by SFI for the benefit of SFC. At September 30, 2015 and December 31, 2014, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $15 million and $19 million, respectively, to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At September 30, 2015 and December 31, 2014, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

SFI provided funding for SAC’s operations through an intercompany demand note, not to exceed $2.5 million. The note was payable in full on December 31, 2022, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was the lender’s cost plus 25 basis points. At December 31, 2014, the note payable to SFI totaled $1 million and was reported in other liabilities. On September 1, 2015, SAC repaid the note in full plus accrued interest. Interest expense on the note payable to SFI for the three and nine months ended September 30, 2015 and 2014 was immaterial.

SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At September 30, 2015 and December 31, 2014, SpringCastle Holdings LLC’s payable to SFI totaled $4 million and $10 million, respectively.

CAPITAL CONTRIBUTIONS

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

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During January and July of 2014, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, respectively.

INTERCOMPANY AGREEMENTS

On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $15 million at September 30, 2015 and $19 million at December 31, 2014.

Services Agreement

SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During the three and nine months ended September 30, 2015, SFMC recorded $55 million and $156 million, respectively, of service fee expenses, which are included in other operating expenses, compared to $65 million and $160 million for the three and nine months ended September 30, 2014.

License Agreement

The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During the three and nine months ended September 30, 2015, SFMC recorded $1 million and $4 million, respectively, of license fees, which are included as a contra expense to other operating expenses, compared to $1 million and $4 million for the three and nine months ended September 30, 2014.

Building Lease

The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three and nine months ended September 30, 2015, SFMC recorded $1 million and $3 million, respectively, of rent charged to SGSC, which are included as a contra expense to other operating expenses, compared to $1 million and $3 million for the three and nine months ended September 30, 2014.

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10. Long-term Debt

Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2015 were as follows:

(dollars in millions)	Medium Term Notes			Securitizations			Junior Subordinated Debt			Total
Interest rates (a)	5.25%-8.25%			1.87%-6.82%			6.00		%
Fourth quarter 2015	$	750		$	—		$	—		$	750
First quarter 2016	—			—			—			—
Second quarter 2016	—			—			—			—
Third quarter 2016	375			—			—			375
Remainder of 2016	—			—			—			—
2017	1,902			—			—			1,902
2018	—			—			—			—
2019	700			—			—			700
2020-2067	1,250			—			350			1,600
Securitizations (b)	—			4,784			—			4,784
Total principal maturities	$	4,977		$	4,784		$	350		$	10,111
Total carrying amount (c)	$	4,613		$	4,771		$	171		$	9,555
Debt issuance costs (d)	$	(13	)	$	(17	)	$	—		$	(30	)

(a) The interest rates shown are the range of contractual rates in effect at September 30, 2015.

(b) Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt.

GUARANTY AGREEMENTS

On December 3, 2014, SHI entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on $700 million of 5.25% of Senior Notes due 2019. As of September 30, 2015, approximately $700 million aggregate principal amount of senior notes were outstanding.

On December 30, 2013, SHI entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture (collectively, the “notes”) on a junior subordinated basis issued by SFC. The notes consist of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, SHI entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of September 30, 2015, approximately $5.0 billion aggregate principal amount of senior notes, including $3.0 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

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11. Variable Interest Entities

As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our condensed consolidated financial statements and are accounted for as secured borrowings. As a result of the 2014 sales of the Company’s beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions, we deconsolidated the underlying real estate loans and previously issued securitized interests which were reported in long-term debt.

CONSOLIDATED VIES

We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary, and, therefore, we consolidated such entities. We are deemed to be the primary beneficiaries of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns.

The asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each securitization trust. We retain interests in these securitization transactions, including residual interests in each securitization trust and, in some cases, subordinated securities issued by the VIEs. We retain credit risk in the securitizations through our ownership of the residual interest in each securitization trust, and, in some cases, ownership of the most subordinated class of asset-backed securities, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default.

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Assets
Finance receivables:
Personal loans	$	2,096	$	1,853
SpringCastle Portfolio	1,667		1,979
Allowance for finance receivable losses	131		72
Finance receivables held for sale	484		—
Restricted cash and cash equivalents	256		210
Liabilities
Long-term debt *	$	4,771	$	3,630

* As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

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Amendment to Sumner Brook 2013-VFN1 Securitization

On January 16, 2015, we amended the note purchase agreement with Sumner Brook Funding Trust 2013-VFN1 to extend the two-year revolving period ending December of 2015 to a three-year revolving period ending January of 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August of 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million. At September 30, 2015, no amounts were drawn under the notes.

2015-A Securitization

On February 26, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $1.2 billion of notes issued by Springleaf Funding Trust 2015-A at a 3.58% weighted average yield. The notes are backed by personal loans acquired from subsidiaries of SFC. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12 million interest reserve requirement.

Sale of SpringCastle 2014-A Notes

On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015.

Amendments to Whitford Brook 2014-VFN1 Securitization

On March 24, 2015, we amended the sale and servicing agreement relating to the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”) to remove the requirement for a $100 million minimum balance drawn under the variable funding notes, which are to be backed by personal loans acquired from subsidiaries of SFC from time to time. On March 25, 2015, we paid down the note balance of $100 million.

On June 3, 2015, we amended the note purchase agreement relating to the Whitford Brook 2014-VFN1 Trust to reduce the $300 million maximum principal balance to $250 million. On July 15, 2015, we drew $100 million under the notes, which remained drawn as of September 30, 2015.

2015-B Securitization

On April 7, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $314 million of notes issued by Springleaf Funding Trust 2015-B at a 3.84% weighted average yield. The notes are backed by personal loans acquired from subsidiaries of SFC. We sold the asset-backed notes for $314 million, after the price discount but before expenses and a $3 million interest reserve requirement.

Amendment to Springleaf 2013-VFN1 Securitization

On May 20, 2015, we amended the note purchase agreement with Springleaf Funding Trust 2013-VFN1 to, among other things, extend the original two-year revolving period ending October of 2015 to a two-year revolving period ending April of 2017, which may be extended for up to one additional year, subject to satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in May of 2020. The maximum amount that can be drawn under the notes remained at $350 million. At September 30, 2015, no amounts were drawn under the notes.

Mill River 2015-VFN1 Securitization

On May 27, 2015, we established a private securitization facility in which Mill River Funding Trust 2015-VFN1, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $400 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in June of 2021. At September 30, 2015, no amounts were drawn under the notes.

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Second Avenue Funding LLC Securitization

On June 3, 2015, we established a private securitization facility in which Second Avenue Funding LLC, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the three-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full in June of 2019. At September 30, 2015, no amounts were drawn under the notes.

First Avenue Funding LLC Securitization

On June 10, 2015, we established a private securitization facility in which First Avenue Funding LLC (“First Avenue”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a two-year revolving period, subject to the satisfaction of customary conditions precedent. On September 9, 2015, First Avenue amended the facility to extend the revolving period until September 10, 2017. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the two-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full twelve months following the maturity of the last auto loan held by First Avenue. At September 30, 2015, no amounts were drawn under the notes.

VIE Interest Expense

Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three and nine months ended September 30, 2015 totaled $49 million and $136 million, respectively, compared to $43 million and $130 million for the three and nine months ended September 30, 2014, respectively.

DECONSOLIDATED VIES

As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. During 2014, we established a reserve for sales recourse obligations of $6 million related to these sales. At September 30, 2015, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of September 30, 2015. See Note 14 for further information on the total reserve for sales recourse obligations relating to the real estate loan sales, including the sales of the mortgage-backed retained certificates.

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12. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains Investment Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended September 30, 2015
Balance at beginning of period	$	2		$	(13	)	$	4	$	(7	)
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2		)	—			—		(2		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Three Months Ended September 30, 2014
Balance at beginning of period	$	14		$	20		$	4	$	38
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income	(2		)	—			—		(2		)
Balance at end of period	$	10		$	20		$	4	$	34
Nine Months Ended September 30, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive loss before reclassifications	(5		)	—			—		(5		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—		(9		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Nine Months Ended September 30, 2014
Balance at beginning of period	$	4		$	20		$	4	$	28
Other comprehensive income before reclassifications	10			—			—		10
Reclassification adjustments from accumulated other comprehensive income	(4		)	—			—		(4		)
Balance at end of period	$	10		$	20		$	4	$	34

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	4		$	3		$	14		$	6
Income tax effect	(2		)	(1		)	(5		)	(2		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	2		$	2		$	9		$	4

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13. Income Taxes

At September 30, 2015, we had a net deferred tax liability of $138 million, compared to $156 million at December 31, 2014. The decrease in the net deferred tax liability was primarily due to purchase accounting for debt writedown. This decrease was partially offset by a change in our tax accounting method for the valuation of certain assets, which was approved by the Internal Revenue Service (the “IRS”) in August of 2015. The impact to our uncertain tax positions was immaterial.

The effective tax rate for the nine months ended September 30, 2015 was 12.1% compared to 34.7% for the same period in 2014. The effective tax rates for the nine months ended September 30, 2015 and 2014 differed from the federal statutory rates primarily due to the effect of the non-controlling interest in our joint venture.

We are currently under examination of our U.S. Federal tax return for the year 2013 by the IRS. Management believes it has adequately provided for taxes for such year.

14. Contingencies

LEGAL CONTINGENCIES

In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action.

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole.

SALES RECOURSE OBLIGATIONS

During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales. At September 30, 2015, our reserve for sales recourse obligations totaled $18 million, of which $18 million related to the real estate loan sales in 2014. We had no repurchase activity during the three months ended September 30, 2015. We repurchased 13 loans totaling $1 million for the nine months ended September 30, 2015 associated with the real estate loan sales in 2014. There was no repurchase activity associated with the real estate loan sales in 2014 during the three and nine months ended September 30, 2014. We repurchased 4 loans totaling $1 million during the three months ended September 30, 2014 and 9 loans totaling $2 million during the nine months ended September 30, 2014 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At September 30, 2015, there were no material recourse requests that management believes will not be covered by the reserve.

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The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(dollars in millions)	2015		2014		2015			2014
Balance at beginning of period	$	18	$	5	$	24		$	5
Recourse losses	—		—		(5		)	—
Provision for recourse obligations, net of recoveries *	—		8		(1		)	8
Balance at end of period	$	18	$	13	$	18		$	13

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses.

PAYMENT PROTECTION INSURANCE

Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March of 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $8 million at September 30, 2015 and $14 million at December 31, 2014. We do not believe that any additional losses related to PPI claims in excess of the amounts accrued will have a material adverse effect on our condensed consolidated financial statements as a whole.

15. Benefit Plans

The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Pension
Components of net periodic benefit cost:
Interest cost	$	4		$	3		$	12		$	11
Expected return on assets	(5		)	(4		)	(14		)	(12		)
Net periodic benefit cost	$	(1	)	$	(1	)	$	(2	)	$	(1	)

The components of net periodic benefit cost with respect to our post retirement plan were less than $1 million for the three and nine months ended September 30, 2015 and 2014 and, therefore, were not included in the table above.

16. Segment Information

Our segments coincide with how our businesses are managed. At September 30, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

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When we initially defined our operating segments in early 2013, we presented Consumer and Insurance as two distinct reporting segments. However, over the course of 2013 and into 2014, management has shifted its strategy for the Insurance segment toward organic growth primarily as an ancillary product complementing our consumer lending activities and has been increasingly viewing and managing the Insurance segment together with Consumer. As a result of the changes in strategy and the way that management views the insurance business of the Company, we began presenting them as one segment, effective December 31, 2014. To conform to the new segment alignment, we have revised our prior period segment disclosures. The Acquisitions and Servicing segment was added effective July 31, 2014, as a result of the SAC Capital Contribution on July 31, 2014.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.”

Our segments are managed as follows:

Core Consumer Operations

• Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, accident and health insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. Branch operations primarily conduct business in 27 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan.

• Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status.

Non-Core Portfolio

• Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we have also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including our retail sales finance accounts from our dedicated auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

Due to the nature of the Fortress Acquisition, we applied push-down accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the same accounting basis that we employed prior to the Fortress Acquisition, which we refer to as “historical accounting basis,” to provide a consistent basis for both management and other interested third parties to better understand the operating results of these segments. The historical accounting basis (which is a basis of accounting other than U.S. GAAP) also provides better comparability of the operating results of these segments to our competitors and other companies in the financial services industry. The historical accounting basis is not applicable to the Acquisitions and Servicing segment since this segment resulted from the SAC Capital Contribution subsequent to the Fortress Acquisition.

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The “Push-down Accounting Adjustments” column in the following tables primarily consists of:

• the accretion or amortization of the valuation adjustments on the applicable revalued assets and liabilities;

• the difference in finance charges on our purchased credit impaired finance receivables compared to the finance charges on these finance receivables on a historical accounting basis;

• the elimination of accretion or amortization of historical based discounts, premiums, and other deferred costs on our finance receivables and long-term debt;

• the difference in provision for finance receivable losses required based upon the differences in historical accounting basis and push-down accounting basis of the finance receivables;

• the acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt that we repurchase or repay;

• the reversal of the remaining unaccreted push-down accounting basis for net finance receivables, less allowance for finance receivable losses established at the date of the Fortress Acquisition on finance receivables held for sale that we sold; and

• the difference in the fair value of long-term debt based upon the differences between historical accounting basis where certain long-term debt components are marked-to-market on a recurring basis, and push-down accounting basis where long-term debt is no longer marked-to-market on a recurring basis.

The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2015
Interest income	$	289	$	113	$	17		$	1		$	3		$	423
Interest expense	43		22		58			16			32			171
Provision for finance receivable losses	62		19		(4		)	—			5			82
Net interest income (loss) after provision for finance receivable losses	184		72		(37		)	(15		)	(34		)	170
Other revenues	55		—		(2		)	4			(2		)	55
Other expenses	157		14		8			2			1			182
Income (loss) before provision for (benefit from) income taxes	82		58		(47		)	(13		)	(37		)	43
Income before provision for income taxes attributable to non-controlling interests	—		31		—			—			—			31
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	82	$	27	$	(47	)	$	(13	)	$	(37	)	$	12

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2014
Interest income	$	234	$	84	$	94		$	4		$	16		$	432
Interest expense	39		12		83			2			36			172
Provision for finance receivable losses	55		18		37			2			(19		)	93
Net interest income (loss) after provision for finance receivable losses	140		54		(26		)	—			(1		)	167
Other revenues	60		1		284			1			317			663
Other expenses	131		12		36			3			—			182
Income (loss) before provision for (benefit from) income taxes	69		43		222			(2		)	316			648
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	69	$	20	$	222		$	(2	)	$	316		$	625

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(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Eliminations			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2015
Interest income	$	810	$	356	$	52		$	6		$	—		$	10		$	1,234
Interest expense	119		67		177			48			(5		)	94			500
Provision for finance receivable losses	170		69		(7		)	1			—			14			247
Net interest income (loss) after provision for finance receivable losses	521		220		(118		)	(43		)	5			(98		)	487
Other revenues	161		5		4			10			(5		)	(8		)	167
Other expenses	448		45		24			17			—			3			537
Income (loss) before provision for (benefit from) income taxes	234		180		(138		)	(50		)	—			(109		)	117
Income before provision for income taxes attributable to non-controlling interests	—		93		—			—			—			—			93
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	234	$	87	$	(138	)	$	(50	)	$	—		$	(109	)	$	24
Assets	$	5,628	$	1,751	$	3,551		$	1,471		$	—		$	(19	)	$	12,382

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2014
Interest income	$	663	$	84	$	382		$	13		$	84		$	1,226
Interest expense	121		12		287			6			100			526
Provision for finance receivable losses	148		18		119			7			(18		)	274
Net interest income (loss) after provision for finance receivable losses	394		54		(24		)	—			2			426
Other revenues	167		1		196			5			486			855
Other expenses	380		12		77			14			2			485
Income (loss) before provision for (benefit from) income taxes	181		43		95			(9		)	486			796
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	181	$	20	$	95		$	(9	)	$	486		$	773
Assets (a) (b)	$	4,626	$	2,239	$	3,720		$	705		$	16		$	11,306

(a) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of September 30, 2014.

(b) See Note 1 for further information on the correction of this prior period disclosure.

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17. Fair Value Measurements

The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions.

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The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash and cash equivalents	$	2,461	$	295	$	—	$	2,756	$	2,756
Investment securities	—		1,730		12		1,742		1,742
Net finance receivables, less allowance for finance receivable losses	—		—		6,667		6,667		6,040
Finance receivables held for sale	—		—		802		802		797
Note receivable from parent	—		322		—		322		322
Restricted cash and cash equivalents	270		—		—		270		270
Other assets:
Commercial mortgage loans	—		—		71		71		71
Escrow advance receivable	—		—		10		10		10
Receivables from parent and affiliates	—		7		—		7		7
Receivables related to sales of real estate loans and related trust assets	—		3		—		3		9
Liabilities
Long-term debt	$	—	$	10,212	$	—	$	10,212	$	9,555
Payables to parent and affiliates	—		19		—		19		19
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,278
Finance receivables held for sale	—		—		209		209		205
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		12		—		12		12
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

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FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash equivalents in mutual funds	$	750	$	—	$	—	$	750
Cash equivalents in certificates of deposit and commercial paper	—		295		—		295
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		68		—		68
Obligations of states, municipalities, and political subdivisions	—		84		—		84
Corporate debt	—		245		—		245
RMBS	—		79		—		79
CMBS	—		39		—		39
CDO/ABS	—		32		—		32
Total bonds	—		547		—		547
Preferred stock	—		6		10		16
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		553		11		564
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		783		—		783
Corporate debt	—		196		—		196
RMBS	—		2		—		2
CMBS	—		45		—		45
CDO/ABS	—		151		—		151
Total trading securities	—		1,177		—		1,177
Total investment securities	—		1,730		11		1,741
Restricted cash in mutual funds	252		—		—		252
Total	$	1,002	$	2,025	$	11	$	3,038

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	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		592		8		600
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading securities	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method.

(b) Common stocks not carried at fair value totaled $1 million at September 30, 2015 and December 31, 2014 and, therefore, have been excluded from the table above.

We had no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2015.

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The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements *		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Preferred stock	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Other long-term investments	1		—		—		—		—		—		1
Total	$	1	$	—	$	—	$	10	$	—	$	—	$	11

* “Purchases, sales, issues, and settlements” column consisted only of purchases.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	5	$	—	$	—	$	—	$	—	$	—	$	5
Other long-term investments	1		—		—		—		—		—		1
Total available-for-sale securities	6		—		—		—		—		—		6
Trading securities:
Bonds:
CDO/ABS	6		—		—		—		—		—		6
Total	$	12	$	—	$	—	$	—	$	—	$	—	$	12

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The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into  Level 3		Transfers out of Level 3 (b)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Preferred stock	—		—		—		10			—		—			10
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	6		$	—	$	(3	)	$	11

(a) The detail of purchases and settlements is presented in the table below:

(dollars in millions)	Purchases		Settlements			Total
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	—	$	(4	)	$	(4	)
Preferred stock	10		—			10
Total	$	10	$	(4	)	$	6

(b) During the nine months ended September 30, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater observability of pricing inputs.

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The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(8	)	$	—	$	—		$	5
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(8		)	—		(1		)	5
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(8		)	—		(1		)	6
Trading securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		—			—		(1		)	6
Total trading securities	7		—		—		—			1		(2		)	6
Total	$	22	$	—	$	—	$	(8	)	$	1	$	(3	)	$	12

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During the nine months ended September 30, 2014, we transferred $1 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs.

(c) During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs.

We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table.

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Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	743 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)
Preferred stock	Market approach	Historical cost Operating performance	N/A (c)	N/A (c)

(a) At September 30, 2015 and December 31, 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us.

Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants.

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.

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Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *
(dollars in millions)	Level 1		Level 2		Level 3		Total
September 30, 2015
Assets
Real estate owned	$	—	$	—	$	12	$	12
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	20	$	20
December 31, 2014
Assets
Real estate owned	$	—	$	—	$	19	$	19
Commercial mortgage loans	—		—		11		11
Total	$	—	$	—	$	30	$	30

* The fair value information presented in the table above is as of the date the fair value adjustment was recorded.

Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows:

(dollars in millions)	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2015		2014			2015			2014
Assets
Real estate owned	$	1	$	3		$	3		$	13
Commercial mortgage loans	—		(1		)	(2		)	(2		)
Total	$	1	$	2		$	1		$	11

In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell for the three and nine months ended September 30, 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets.

In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value for the three and nine months ended September 30, 2015 and 2014 and recorded the net impairments in investment revenues.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table.

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Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Real estate owned	Market approach	Third-party valuation	N/A*	N/A*
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A*	N/A*

* Not applicable.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

We use the following methods and assumptions to estimate fair value.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value.

Mutual Funds

The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds.

Investment Securities

We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value as trading securities at fair value.

The fair value of certificates of deposit and commercial paper having maturity dates greater than three months is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent weaknesses in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

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Finance Receivables Held for Sale

We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses.

Restricted Cash and Cash Equivalents

The carrying amount of restricted cash and cash equivalents approximates fair value.

Note Receivable from Parent

The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates.

Commercial Mortgage Loans

Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses which is based on independent third-party valuations.

Real Estate Owned

We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset.

Escrow Advance Receivable

The carrying amount of escrow advance receivable approximates fair value.

Receivables from Parent and Affiliates

The carrying amount of receivables from parent and affiliates approximates fair value.

Receivables Related to Sales of Real Estate Loans and Related Trust Assets

The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value.

Long-term Debt

We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt.

We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At September 30, 2015, we had no debt carried at fair value under the fair value option.

Payables to Parent and Affiliates

The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

An index to our management’s discussion and analysis follows:

Topic	Page
Forward-Looking Statements	53
Overview	54
Recent Developments and Outlook	56
Results of Operations	57
Segments Results	64
Credit Quality	76
Liquidity and Capital Resources	78
Off Balance Sheet Arrangements	81
Critical Accounting Policies and Estimates	81
Recent Accounting Pronouncements	81
Seasonality	81
Glossary of Terms	82

Forward-Looking Statements    

This report may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to:

• changes in general economic conditions, including the interest rate environment in which we conduct business and the financial markets through which we can access capital and also invest cash flows from our Consumer and Insurance segment;

• levels of unemployment and personal bankruptcies;

• natural or accidental events such as earthquakes, hurricanes, tornadoes, fires, or floods affecting our customers, collateral, or branches or other operating facilities;

• war, acts of terrorism, riots, civil disruption, pandemics, or other events disrupting business or commerce;

• changes in the rate at which we can collect or potentially sell our finance receivables portfolio;

• the effectiveness of our credit risk scoring models in assessing the risk of customer unwillingness or lack of capacity to repay;

• changes in our ability to attract and retain employees or key executives to support our businesses;

• changes in the competitive environment in which we operate, including the demand for our products, customer responsiveness to our distribution channels, and the strength and ability of our competitors to operate independently or to enter into business combinations that result in a more attractive range of customer products or provide greater financial resources;

• shifts in collateral values, delinquencies, or credit losses;

• changes in federal, state and local laws, regulations, or regulatory policies and practices, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (which, among other things, established the Consumer Financial Protection Bureau, which has broad authority to regulate and examine financial institutions), that affect our ability to conduct business or the manner in which we conduct business, such as licensing requirements, pricing limitations or restrictions on the method of offering products, as well as changes that may result from increased regulatory scrutiny of the sub-prime lending industry;

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• potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans, if it is determined that there was a non-curable breach of a warranty made in connection with such transactions;

• the effect of future sales of our remaining portfolio of real estate loans and the transfer of servicing of these loans;

• the costs and effects of any litigation or governmental inquiries or investigations involving us, particularly those that are determined adversely to us;

• our continued ability to access the capital markets or the sufficiency of our current sources of funds to satisfy our cash flow requirements;

• our ability to comply with our debt covenants;

• our ability to generate sufficient cash to service all of our indebtedness;

• our substantial indebtedness, which could prevent us from meeting our obligations under our debt instruments and limit our ability to react to changes in the economy or our industry, or our ability to incur additional borrowings;

• the potential for downgrade of our debt by rating agencies, which would have a negative impact on our cost of, and access to, capital;

• the impacts of our securitizations and borrowings;

• our ability to maintain sufficient capital levels in our regulated and unregulated subsidiaries;

• changes in accounting standards or tax policies and practices and the application of such new policies and practices to the manner in which we conduct business; and

• the material weakness that we have identified in our internal control over financial reporting.

We also direct readers to other risks and uncertainties discussed in other documents we file with the SEC. The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We do not undertake any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this report that could cause actual results to differ before making an investment decision to purchase our common stock. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.

Overview    

Springleaf is a leading consumer finance company providing responsible loan products primarily to non-prime customers. We originate consumer loans through our network of 823 branch offices in 27 states and on a centralized basis as part of our centralized operations. We also pursue strategic acquisitions of loan portfolios. Through two insurance subsidiaries, we write credit and non-credit insurance policies covering our customers.

OUR PRODUCTS

Our core product offerings include:

• Personal Loans — We offer personal loans through our branch network and over the internet through our centralized operations to customers who generally need timely access to cash. Our personal loans are typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At September 30, 2015, we had over 855,000 personal loans, representing $4.0 billion of net finance receivables, of which $2.2 billion, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.8 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured. Personal loans held for sale totaled $608 million at September 30, 2015.

• Insurance Products — We offer our customers credit insurance (life insurance, accident and health insurance, and involuntary unemployment insurance) and non-credit insurance through both our branch network and our centralized operations. Credit insurance and non-credit insurance products are provided by our subsidiaries, Merit and Yosemite Insurance Company (“Yosemite”). We also offer auto security membership plans of an unaffiliated company as an ancillary product.

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• SpringCastle Portfolio —We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest. These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. At September 30, 2015, the SpringCastle Portfolio included over 242,000 of acquired loans, representing $1.7 billion in net finance receivables.

Our non-core and non-originating legacy products include:

• Real Estate Loans — We ceased real estate lending in January of 2012, and during 2014, we sold $6.3 billion real estate loans held for sale. The remaining real estate loans may be closed-end accounts or open-end home equity lines of credit, generally have a fixed rate and maximum original terms of 360 months, and are secured by first or second mortgages on residential real estate. We continue to service the liquidating real estate loans and support any advances on open-end accounts. At September 30, 2015, we had $547 million of real estate loans held for investment, of which $209 million, or 38%, were secured by first mortgages and $338 million, or 62%, were secured by second mortgages. Real estate loans held for sale totaled $189 million at September 30, 2015, all of which were secured by first mortgages.

• Retail Sales Finance — We ceased purchasing retail sales contracts and revolving retail accounts in January of 2013. We continue to service the liquidating retail sales contracts and will provide revolving retail sales financing services on our revolving retail accounts. We refer to retail sales contracts and revolving retail accounts collectively as “retail sales finance.”

OUR SEGMENTS

At September 30, 2015, we had three business segments: Consumer and Insurance, Acquisitions and Servicing, and Real Estate. The Acquisitions and Servicing segment was added effective July 31, 2014, as a result of the SAC Capital Contribution on July 31, 2014.

When we initially defined our operating segments in early 2013, we presented Consumer and Insurance as two distinct reporting segments. However, over the course of 2013 and into 2014, management has shifted its strategy for the Insurance segment toward organic growth primarily as an ancillary product complementing our consumer lending activities and has been increasingly viewing and managing the Insurance segment together with Consumer. As a result of the changes in strategy and the way that management views the insurance business of the Company, we began presenting them as one segment, effective December 31, 2014. To conform to the new segment alignment, we have revised our prior period segment disclosures in “Segment Results”.

See Note 16 of the Notes to Condensed Consolidated Financial Statements for a description of our segments.

Third Quarter Segment Highlights

• Net finance receivables — Consumer and Insurance reached $4.6 billion at September 30, 2015, including $608 million personal loans held for sale, compared to $3.6 billion at September 30, 2014.

• Origination volume — Consumer and Insurance totaled $1.1 billion for the third quarter of 2015 compared to $914 million for the third quarter of 2014 (including $273 million of direct auto loan originations during the third quarter of 2015 compared to $84 million during the third quarter of 2014).

• Pretax core earnings (a non-GAAP measure) was $109 million for the third quarter of 2015 compared to $88 million for the third quarter of 2014.

Our segments are reported on a historical accounting basis, which is a basis of accounting other than U.S. GAAP. See “Results of Operations” for a reconciliation of our pretax earnings on a push-down accounting basis to a historical accounting basis and “Segment Results” for a reconciliation of our pretax earnings on a historical accounting basis to pretax core earnings.

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Recent Developments and Outlook    

SHI’S PENDING ACQUISITION OF ONEMAIN FINANCIAL

We and SHI regularly consider strategic acquisitions and have been involved in transactions of various magnitudes involving a variety of forms of consideration and financing. On March 2, 2015, SHI entered into a Stock Purchase Agreement with CitiFinancial Credit Company to acquire OneMain for an aggregate purchase price of $4.25 billion. There can be no assurance that the Proposed Acquisition will close, or, if it does, when the actual closing will occur. SHI continues to evaluate its plans regarding the integration of OneMain with its remaining businesses including us.

SHI’S EQUITY OFFERING

On May 4, 2015, SHI completed an offering of 27,864,525 shares of its common stock, consisting of 19,417,476 shares of common stock offered by SHI and 8,447,049 shares of common stock offered by the Initial Stockholder. Upon completion of this offering, the Initial Stockholder owned approximately 58% of SHI common stock, and the economic interests of Fortress and AIG were reduced to approximately 55% and 3%, respectively.

SHI’s net proceeds from this sale were approximately $976 million, after deducting the underwriting discounts and commissions and additional offering-related expenses totaling $24 million. SHI intends to use the net proceeds of the offering, together with cash on hand, the proceeds from the sale of investment securities, and other funding options, to fund the Proposed Acquisition and/or for general corporate purposes, which may include debt repurchases and repayments, capital expenditures and other possible acquisitions.

See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information on the equity offering.

SECURITIZATIONS

During the first nine months of 2015, we completed five securitizations, including two consumer loan securitizations, two auto loan conduit securitizations, and one personal loan conduit securitization. We also sold certain SpringCastle 2014-A Notes that were previously retained, extended the revolving periods on three existing conduits, amended an existing conduit to remove the minimum balance requirement and reduce the maximum principal balance, and drew $100 million under the notes of an existing conduit. See Note 11 of the Notes to Condensed Consolidated Financial Statements for further information on these securitizations.

CUSTOMER REWARDS PROGRAM

During the second quarter of 2015, Springleaf launched Springleaf Rewards, a unique digital loyalty program that is designed to encourage credit education, positive customer behavior and brand engagement. The program rewards customers for a range of activities, such as consistently paying their bills on-time, interacting with Springleaf on social media and more. Unlike traditional rewards programs, Springleaf Rewards allows members to accrue points for doing things that help them establish and build their credit, such as viewing personal financial education videos and budgeting tutorials on line, monitoring their credit score, and paying on time. Customers also earn points for enrolling in conveniences like paperless statements and automatic payments. Since its launch in mid-June, more than 47,000 customers have signed up to start earning rewards. Springleaf Rewards members can choose how and when to redeem their points. Points can be exchanged for a variety of gift cards for nationwide retailers, restaurants and other merchants.

OUTLOOK

Assuming the U.S. economy continues to experience slow to moderate growth, we expect to continue our long history of strong credit performance. We believe the strong credit quality of our personal loan portfolio is the result of our disciplined underwriting practices and ongoing collection efforts. We also continue to see growth in the volume of personal loan originations driven by the following factors:

• Slow but sustained economic growth.

• Migration of customer activity from traditional channels such as direct mail to online channels (served by our centralized operations) where we believe we are well suited to capture volume due to our scale, technology, and deployment of advanced analytics.

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In addition, with an experienced management team, a strong balance sheet, proven access to the capital markets, and strong demand for consumer credit, we believe we are well positioned for future personal loan growth.

Results of Operations    

CONSOLIDATED RESULTS

See table below for our consolidated operating results. A further discussion of our operating results for each of our business segments is provided under “Segment Results.”

(dollars in millions)	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Interest income:
Finance charges	$	419	$	385		$	1,221	$	1,172
Finance receivables held for sale originated as held for investment	4		47			13		54
Total interest income	423		432			1,234		1,226
Interest expense	171		172			500		526
Net interest income	252		260			734		700
Provision for finance receivable losses	82		93			247		274
Net interest income after provision for finance receivable losses	170		167			487		426
Other revenues:
Insurance	40		44			116		125
Investment	11		12			43		32
Net loss on repurchases and repayments of debt	—		—			—		(7		)
Net gain on fair value adjustments on debt	—		1			—		1
Net gain on sales of real estate loans and related trust assets	—		617			—		707
Other	4		(11		)	8		(3		)
Total other revenues	55		663			167		855
Other expenses:
Operating expenses:
Salaries and benefits	86		85			264		249
Other operating expenses	79		77			220		179
Insurance losses and loss adjustment expenses	17		20			53		57
Total other expenses	182		182			537		485
Income before provision for income taxes	43		648			117		796
Provision for income taxes	7		219			14		276
Net income	36		429			103		520
Net income attributable to non-controlling interests	31		23			93		23
Net income attributable to Springleaf Finance Corporation	$	5	$	406		$	10	$	497

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Comparison of Consolidated Results for Three Months Ended September 30, 2015 and 2014

Finance charges increased for the three months ended September 30, 2015 when compared to the same period in 2014 due to the net of the following:

(dollars in millions)
2015 compared to 2014 - Three Months Ended September 30,
Decrease in average net receivables	$	(66	)
Increase in yield	100
Total	$	34

Average net receivables decreased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to our liquidating real estate loan portfolio, including the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease also reflected the liquidating status of the acquired SpringCastle Portfolio. This decrease was partially offset by (i) higher personal loan average net receivables resulting from our continued focus on personal loan originations though our branch network and centralized operations and growth in our auto loan product and (ii) higher SpringCastle average net receivables resulting from the SAC Capital Contribution on July 31, 2014.

Yield increased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to a higher proportion of personal loans, which have higher yields, as a result of the real estate loan sales during 2014. The increase in yield was partially offset by the launch of our auto loan product in June of 2014, which generally has lower yields.

Interest income on finance receivables held for sale decreased $43 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower average finance receivables held for sale during the 2015 period.

Interest expense decreased for the three months ended September 30, 2015 when compared to the same period in 2014 due to the net of the following:

(dollars in millions)
2015 compared to 2014 - Three Months Ended September 30,
Increase in average debt	$	13
Decrease in weighted average interest rate	(14		)
Total	$	(1	)

Average debt increased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to debt issuances pursuant to our consumer securitization transactions completed during the past twelve months. These increases were partially offset by debt repurchases and repayments of $3.3 billion during the past twelve months and the elimination of $3.4 billion of debt associated with our mortgage securitizations as a result of the sales of the Company’s beneficial interests in the mortgage-backed certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt.

The weighted average interest rate on our debt decreased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the debt repurchases and repayments discussed above, which resulted in lower accretion of net discount, established at the date of the Fortress Acquisition, applied to long-term debt. This decrease was partially offset by the elimination of debt associated with our mortgage securitizations discussed above, which generally have lower interest rates.

Provision for finance receivable losses decreased$11 million for the three months ended September 30, 2015 when compared to the same period in 2014. This decrease was primarily due to reductions in net charge-offs and the allowance requirements on our real estate loans as a result of the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease was partially offset by (i) one additional month of net charge-offs on the SpringCastle Portfolio during the 2015 period as a result of

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the SAC Capital Contribution on July 31, 2014 and (ii) higher net charge-offs on our personal loans primarily due to growth in our personal loans during the past twelve months and a higher personal loan delinquency ratio at September 30, 2015.

Insurance revenues decreased $4 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in credit and non-credit earned premiums. The decrease in credit earned premiums reflected the cancellations of dwelling policies as a result of the real estate loan sales during 2014. The decrease in non-credit earned premiums reflected fewer non-credit policies written.

Net gain on sales of real estate loans and related trust assets of $617 million for the three months ended September 30, 2014 reflected the reversal of the remaining push-down accounting adjustment for the real estate loans, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition.

Other revenues — other increased $15 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to (i) lower net charge-offs on our finance receivables held for sale and provision adjustments for liquidated held for sale accounts during the 2015 period and (ii) higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during the 2015 period to fund the operations of its subsidiaries. This increase was partially offset by servicing fee revenues during the 2014 period for the servicing of the real estate loans included in the MSR Sale. We continued to service these loans on behalf of Nationstar until the servicing transfer on September 30, 2014, under an interim servicing agreement.

Insurance losses and loss adjustment expenses decreased $3 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to favorable variances in benefit reserves.

Provision for income taxes totaled $7 million for the three months ended September 30, 2015 compared to $219 million for the same period in 2014. The effective tax rate for the three months ended September 30, 2015 was 16.1% compared to 33.8% for the same period in 2014. The effective tax rates for the three months ended September 30, 2015 and 2014 differed from the federal statutory rates primarily due to the effect of the non-controlling interest in our joint venture.

Comparison of Consolidated Results for Nine Months Ended September 30, 2015 and 2014

Finance charges increased for the nine months ended September 30, 2015 when compared to the same period in 2014 due to the net of the following:

(dollars in millions)
2015 compared to 2014 - Nine Months Ended September 30,
Decrease in average net receivables	$	(313	)
Increase in yield	362
Total	$	49

Average net receivables decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to our liquidating real estate loan portfolio, including the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease also reflected the liquidating status of the acquired SpringCastle Portfolio. This decrease was partially offset by (i) higher personal loan average net receivables resulting from our continued focus on personal loan originations through our branch network and centralized operations and the launch of our auto loan product in June of 2014 and (ii) higher SpringCastle average net receivables resulting from the SAC Capital Contribution on July 31, 2014.

Yield increased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to a higher proportion of personal loans, which have higher yields, as a result of the real estate loan sales during 2014. The increase in yield was partially offset by the launch of our auto loan product in June of 2014, which generally has lower yields.

Interest income on finance receivables held for sale decreased $41 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower average finance receivables held for sale during the 2015 period.

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Interest expense decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 due to the net of the following:

(dollars in millions)
2015 compared to 2014 - Nine Months Ended September 30,
Decrease in average debt	$	(16	)
Decrease in weighted average interest rate	(10		)
Total	$	(26	)

Average debt decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to debt repurchases and repayments of $3.3 billionduring the past twelve months and the elimination of $3.4 billion of debt associated with our mortgage securitizations as a result of the sales of the Company’s beneficial interests in the mortgage-backed certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt. These decreases were partially offset by net debt issuances pursuant to our consumer securitization transactions completed during the past twelve months.

The weighted average interest rate on our debt decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the debt repurchases and repayments discussed above, which resulted in lower accretion of net discount, established at the date of the Fortress Acquisition, applied to long-term debt. This decrease was partially offset by the elimination of debt associated with our mortgage securitizations discussed above, which generally have lower interest rates.

Provision for finance receivable losses decreased$27 million for the nine months ended September 30, 2015 when compared to the same period in 2014. This decrease was primarily due to reductions in the allowance requirements and net charge-offs on our real estate loans as a result of the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease was partially offset by (i) an additional seven months of net charge-offs on the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014 and (ii) higher net charge-offs on our personal loans primarily due to growth in our personal loans during the past twelve months and a higher personal loan delinquency ratio at September 30, 2015.

Insurance revenues decreased $9 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in credit and non-credit earned premiums. The decrease in credit earned premiums reflected the cancellations of dwelling policies as a result of the real estate loan sales during 2014. The decrease in non-credit earned premiums reflected fewer non-credit policies written.

Investment revenues increased$11 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to investment income generated from investing the proceeds of the real estate loan sales in 2014.

Net loss on repurchases and repayments of debt of $7 million for the nine months ended September 30, 2014 reflected repurchases of debt at net amounts greater than carrying value.

Net gain on sales of real estate loans and related trust assets of $707 million for the nine months ended September 30, 2014 reflected the reversal of the remaining push-down accounting adjustment for the real estate loans, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition.

Other revenues — other increased$11 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to (i) lower net charge-offs recognized on our finance receivables held for sale and provision adjustments for liquidated held for sale accounts during the 2015 period and (ii) higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during the 2015 period to fund the operations of its subsidiaries. This increase was partially offset by servicing fee revenues during the 2014 period for the servicing of the real estate loans included in the MSR Sale. We continued to service these loans on behalf of Nationstar until the servicing transfer on September 30, 2014, under an interim servicing agreement.

Salaries and benefits increased$15 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to non-cash incentive compensation expense of $15 million recorded in the second quarter of 2015 related to the rights of certain executives to a portion of the cash proceeds from the sale of SHI’s common stock by the Initial

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Stockholder. See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information on the equity offering.

Other operating expenses increased$41 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to an additional seven months of servicing expenses for the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase also reflected higher advertising and information technology expenses. The increase in advertising expenses reflected an increase in direct mailings to pre-approved customers, our increased focus on e-commerce and social media marketing, and our marketing efforts on our auto loan product during 2015. The increase in other operating expenses was partially offset by (i) one-time costs of $7 million recorded in the 2014 period related to the real estate loan sales; (ii) a $5 million reduction in reserves related to estimated PPI claims during the second quarter of 2015; and (iii) lower subservicing fees on our real estate loans as a result of the real estate loan sales during 2014. See Note 14 of the Notes to Condensed Consolidated Financial Statements for further information on the loss contingencies related to PPI claims.

Insurance losses and loss adjustment expenses decreased $4 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to favorable variances in claim reserves and benefit reserves.

Provision for income taxes totaled $14 million for the nine months ended September 30, 2015 compared to $276 million for the same period in 2014. The effective tax rate for the nine months ended September 30, 2015 was 12.1% compared to 34.7% for the same period in 2014. The effective tax rates for the nine months ended September 30, 2015 and 2014 differed from the federal statutory rates primarily due to the effect of the non-controlling interest in our joint venture.

Reconciliation of Income before Provision for Income Taxes on Push-Down Accounting Basis to Historical Accounting Basis

Due to the nature of the Fortress Acquisition, we revalued our assets and liabilities based on their fair values at November 30, 2010, the date of the Fortress Acquisition, in accordance with business combination accounting standards, or push-down accounting. Push-down accounting affected and continues to affect, among other things, the carrying amount of our finance receivables and long-term debt, our finance charges on our finance receivables and related yields, our interest expense, our allowance for finance receivable losses, and our net charge-offs and charge-off ratio. In general, on a quarterly basis, we accrete or amortize the valuation adjustments recorded in connection with the Fortress Acquisition, or record adjustments based on current expected cash flows as compared to expected cash flows at the time of the Fortress Acquisition, in each case, as described in more detail in the footnotes to the table below. In addition, push-down accounting resulted in the elimination of accretion or amortization of discounts, premiums, and other deferred costs on our finance receivables and long-term debt prior to the Fortress Acquisition. The reconciliations of income before provision for income taxes on a push-down accounting basis to income before provision for income taxes on a historical accounting basis (which is a basis of accounting other than U.S. GAAP that we believe provides a consistent basis for both management and other interested third parties to better understand our operating results) were as follows:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Income before provision for income taxes - push-down accounting basis	$	43		$	648		$	117		$	796
Interest income adjustments (a)	(3		)	(16		)	(10		)	(84		)
Interest expense adjustments (b)	32			36			94			100
Provision for finance receivable losses adjustments (c)	5			(19		)	14			(18		)
Repurchases and repayments of long-term debt adjustments (d)	—			—			—			(4		)
Fair value adjustments on debt (e)	—			—			—			8
Sales of finance receivables held for sale originated as held for investment adjustments (f)	—			(330		)	—			(505		)
Amortization of other intangible assets (g)	2			—			4			3
Other (h)	1			13			7			14
Income before provision for income taxes - historical accounting basis	$	80		$	332		$	226		$	310

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(a) Interest income adjustments consist of: (1) the accretion of the net discount applied to non-credit impaired net finance receivables to revalue the non-credit impaired net finance receivables to their fair value at the date of the Fortress Acquisition using the interest method over the remaining life of the related net finance receivables; (2) the difference in finance charges earned on our pools of purchased credit impaired net finance receivables under a level rate of return over the expected lives of the underlying pools of purchased credit impaired finance receivables, net of the finance charges earned on these finance receivables under historical accounting basis; and (3) the elimination of the accretion or amortization of historical unearned points and fees, deferred origination costs, premiums, and discounts.

Components of interest income adjustments consisted of:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Accretion of net discount applied to non-credit impaired net finance receivables	$	(3	)	$	(12	)	$	(9	)	$	(62	)
Purchased credit impaired finance receivables finance charges	(1		)	(5		)	(2		)	(29		)
Elimination of accretion or amortization of historical unearned points and fees, deferred origination costs, premiums, and discounts	1			1			1			7
Total	$	(3	)	$	(16	)	$	(10	)	$	(84	)

(b) Interest expense adjustments consist of: (1) the accretion of the net discount applied to long-term debt to revalue the debt securities to their fair value at the date of the Fortress Acquisition using the interest method over the remaining life of the related debt securities; and (2) the elimination of the accretion or amortization of historical discounts, premiums, commissions, and fees.

Components of interest expense adjustments were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Accretion of net discount applied to long-term debt	$	33		$	37		$	97		$	111
Elimination of accretion or amortization of historical discounts, premiums, commissions, and fees	(1		)	(1		)	(3		)	(11		)
Total	$	32		$	36		$	94		$	100

(c) Provision for finance receivable losses consists of the allowance for finance receivable losses adjustments and net charge-offs quantified in the table below. Allowance for finance receivable losses adjustments reflect the net difference between our allowance adjustment requirements calculated under our historical accounting basis net of adjustments required under push-down accounting basis. Net charge-offs reflect the net charge-off of loans at a higher carrying value under historical accounting basis versus the discounted basis to their fair value at date of the Fortress Acquisition under push-down accounting basis.

Components of provision for finance receivable losses adjustments were as follows:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Allowance for finance receivable losses adjustments	$	7		$	(13	)	$	18		$	9
Net charge-offs	(2		)	(6		)	(4		)	(27		)
Total	$	5		$	(19	)	$	14		$	(18	)

(d) Repurchases and repayments of long-term debt adjustments reflect the impact on acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt.

(e) Fair value adjustments on debt reflect differences between historical accounting basis and push-down accounting basis. On a historical accounting basis, certain long-term debt components are marked-to-market on a recurring basis and are no longer marked-to-market on a recurring basis after the application of push-down accounting at the time of the Fortress Acquisition.

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(f) Sales of finance receivables held for sale originated as held for investment reflect the reversal of the remaining unaccreted push-down accounting basis for net finance receivables, less allowance for finance receivable losses established at the date of the Fortress Acquisition that were sold in the 2014 period.

(g) Amortization of other intangible assets reflects the amortization over the remaining estimated life of intangible assets established at the date of the Fortress Acquisition as a result of the application of push-down accounting.

(h) “Other” items reflect differences between historical accounting basis and push-down accounting basis relating to various items such as the elimination of deferred charges, adjustments to the basis of other real estate assets, fair value adjustments to fixed assets, adjustments to insurance claims and policyholder liabilities, and various other differences all as of the date of the Fortress Acquisition.

At September 30, 2015 and December 31, 2014, the remaining unaccreted push-down accounting basis totaled $14 million and $5 million, respectively, for net finance receivables, less allowance for finance receivable losses, and $461 million and $561 million, respectively, for long-term debt.

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Segment Results    

See Note 16 of the Notes to Condensed Consolidated Financial Statements for a description of our segments. Management considers Consumer and Insurance and Acquisitions and Servicing as our Core Consumer Operations and Real Estate as our Non-Core Portfolio. Due to the nature of the Fortress Acquisition, we applied push-down accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the same accounting basis that we employed prior to the Fortress Acquisition, which we refer to as “historical accounting basis,” to provide a consistent basis for both management and other interested third parties to better understand the operating results of these segments. The historical accounting basis (which is a basis of accounting other than U.S. GAAP) also provides better comparability of the operating results of these segments to our competitors and other companies in the financial services industry. The historical accounting basis is not applicable to the Acquisitions and Servicing segment since this segment resulted from the SAC Capital Contribution on July 31, 2014 and therefore, was not affected by the Fortress Acquisition. See Note 16 of the Notes to Condensed Consolidated Financial Statements for reconciliations of segment totals to condensed consolidated financial statement amounts.

We allocate revenues and expenses (on a historical accounting basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Disaggregated into three categories based on the underlying debt that the expense pertains to:
	l securitizations — allocated to the segments whose finance receivables serve as the collateral securing each of the respective debt instruments;
	l  unsecured debt — allocated to the segments based on expected leverage for that segment or the balance of unencumbered assets and cash proceeds from sale of receivables in that segment; and
	l secured term loan — allocated to the segments whose finance receivables served as the collateral securing each of the respective debt instruments.
Provision for finance receivable losses	Directly correlated with a specific segment except for allocations to “other,” which are based on the remaining delinquent accounts as a percentage of total delinquent accounts.
Insurance revenues	Directly correlated with a specific segment.
Investment revenues	Directly correlated with a specific segment.
Net gain (loss) on repurchases and repayments of debt	Allocated to the segments based on the interest expense allocation of debt.
Net gain (loss) on fair value adjustments on debt	Directly correlated with a specific segment.
Other revenues — other	Directly correlated with a specific segment except for gains and losses on foreign currency exchange and derivatives. These items are allocated to the segments based on the interest expense allocation of debt.
Salaries and benefits	Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Other operating expenses	Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Insurance losses and loss adjustment expenses	Directly correlated with a specific segment.

We evaluate the performance of each of our segments based on its pretax operating earnings.

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CORE CONSUMER OPERATIONS

Pretax operating results for Consumer and Insurance (which are reported on a historical accounting basis), and Acquisitions and Servicing are presented in the table below on an aggregate basis:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest income	$	402	$	318	$	1,166	$	747
Interest expense	65		51		186		133
Net interest income	337		267		980		614
Provision for finance receivable losses	81		73		239		166
Net interest income after provision for finance receivable losses	256		194		741		448
Other revenues:
Insurance	40		44		116		125
Investment	12		13		43		35
Net loss on repurchases and repayments of debt	—		—		—		(1		)
Net gain on fair value adjustments on debt	—		1		—		1
Other	3		3		7		8
Total other revenues	55		61		166		168
Other expenses:
Operating expenses:
Salaries and benefits	82		65		236		205
Other operating expenses	72		57		204		129
Insurance losses and loss adjustment expenses	17		21		53		58
Total other expenses	171		143		493		392
Pretax operating income	140		112		414		224
Pretax operating income attributable to non-controlling interests	31		23		93		23
Pretax operating income attributable to Springleaf Finance Corporation	$	109	$	89	$	321	$	201

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Selected financial statistics for Consumer and Insurance (which are reported on a historical accounting basis) and Acquisitions and Servicing were as follows:

(dollars in millions)	Three Months Ended September 30,						At or for the Nine Months Ended September 30,
	2015			2014			2015			2014
Consumer and Insurance
Finance receivables held for investment:
Net finance receivables							$	3,973		$	3,550
Number of accounts							852,457			885,646
TDR finance receivables							$	27		$	18
Allowance for finance receivable losses - TDR							$	7		$	1
Provision for finance receivable losses - TDR	$	4		$	1		$	14		$	1
Average net receivables	$	4,417		$	3,456		$	4,086		$	3,277
Yield	26.00		%	27.04		%	26.46		%	27.02		%
Gross charge-off ratio	5.18		%	5.46		%	5.77		%	5.59		%
Recovery ratio	(0.90		)%	(0.79		)%	(0.89		)%	(0.67		)%
Charge-off ratio	4.28		%	4.67		%	4.88		%	4.92		%
Delinquency ratio							3.31		%	2.54		%
Origination volume	$	1,137		$	914		$	3,168		$	2,570
Number of accounts originated	212,707			190,593			586,973			559,218
Finance receivables held for sale:
Net finance receivables							$	608		$	—
Number of accounts							144,392			—
TDR finance receivables							$	2		$	—
Acquisitions and Servicing
Net finance receivables							$	1,667		$	2,083
Number of accounts							242,660			291,153
TDR finance receivables							$	12		$	8
Allowance for finance receivable losses - TDR							$	4		$	2
Provision for finance receivable losses - TDR	$	1		$	2		$	2		$	2
Average net receivables *	$	1,714		$	2,122		$	1,818		$	2,122
Yield	26.04		%	23.61		%	26.17		%	23.61		%
Net charge-off ratio	4.39		%	5.17		%	4.98		%	5.17		%
Delinquency ratio							4.06		%	5.11		%

* Acquisitions and Servicing average net receivables for the three and nine months ended September 30, 2014 reflect a two-month average since the SAC Capital Contribution occurred on July 31, 2014.

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Comparison of Pretax Operating Results for Three Months Ended September 30, 2015 and 2014

	Three Months Ended   September 30,
(dollars in millions)	2015		2014
Interest income:
Finance charges - Consumer and Insurance	$	289	$	234
Finance charges - Acquisitions and Servicing	113		84
Total	$	402	$	318

Finance charges — Consumer and Insurance increased$55 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to increases in average net receivables, partially offset by a decrease in yield. Average net receivables increased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to increased originations on personal loans resulting from our continued focus on personal loans, and growth in our auto loan product. At September 30, 2015, we had over 69,000 auto loans totaling $818 million compared to 6,800 auto loans totaling $89 million at September 30, 2014. Yield decreased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the higher proportion of our auto loan product, which generally has lower yields.

Finance charges — Acquisitions and Servicing increased$29 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to one additional month of finance charges on the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the liquidating status of the acquired portfolio.

(dollars in millions)	Three Months Ended   September 30,
	2015		2014
Interest expense - Consumer and Insurance	$	43	$	39
Interest expense - Acquisitions and Servicing	22		12
Total	$	65	$	51

Interest expense — Consumer and Insurance increased $4 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to additional funding required to support increased originations of personal loans. This increase was partially offset by a reduction in the utilization of financing from unsecured notes that was replaced by consumer loan securitizations, which generally have lower interest rates.

Interest expense — Acquisitions and Servicing increased$10 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the refinance of the SpringCastle 2013-A Notes in October 2014, which resulted in an increase in average debt. This increase also reflected one additional month of interest expense on the long-term debt associated with the securitization of the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014.

(dollars in millions)	Three Months Ended   September 30,
	2015		2014
Provision for finance receivable losses - Consumer and Insurance	$	62	$	55
Provision for finance receivable losses - Acquisitions and Servicing	19		18
Total	$	81	$	73

Provision for finance receivable losses — Consumer and Insurance increased$7 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to higher net charge-offs on our personal loans during the 2015 period primarily due to growth in our personal loans during the past twelve months and a higher personal loan delinquency ratio at September 30, 2015.

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Provision for finance receivable losses — Acquisitions and Servicing increased$1 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to one additional month of provision for finance receivable losses associated with the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the improved credit quality of the SpringCastle Portfolio reflecting improvements in servicing of the acquired portfolio and its liquidating status.

Insurance revenues decreased $4 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in credit and non-credit earned premiums. The decrease in credit earned premiums reflected the cancellations of dwelling policies as a result of the real estate loan sales during 2014. The decrease in non-credit earned premiums reflected fewer non-credit policies written.

(dollars in millions)	Three Months Ended   September 30,
	2015		2014
Salaries and benefits - Consumer and Insurance	$	82	$	65
Salaries and benefits - Acquisitions and Servicing	—		—
Total	$	82	$	65

Salaries and benefits — Consumer and Insurance increased $17 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to higher variable compensation reflecting increased originations of personal loans and increased staffing in our centralized operations. This increase also reflected the redistribution of the allocation of salaries and benefit expenses from our Real Estate segment as a result of the real estate loan sales in 2014.

(dollars in millions)	Three Months Ended   September 30,
	2015		2014
Other operating expenses - Consumer and Insurance	$	58	$	45
Other operating expenses - Acquisitions and Servicing	14		12
Total	$	72	$	57

Other operating expenses — Consumer and Insurance increased$13 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to: (i) higher advertising expenses reflecting our increased focus on e-commerce and social media marketing and our marketing efforts on our auto loan product during 2015; (ii) higher occupancy costs resulting from increased general maintenance costs of our branches; and (iii) higher information technology expenses reflecting increased depreciation and software maintenance as a result of software purchases and the capitalization of internally developed software. This increase also reflected the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

Other operating expenses — Acquisitions and Servicing increased$2 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to one additional month of other operating expenses during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the improved credit quality and the liquidation status of the acquired portfolio.

Insurance losses and loss adjustment expenses decreased $4 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to favorable variances in benefit reserves.

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Comparison of Pretax Operating Results for Nine Months EndedSeptember 30, 2015 and 2014

(dollars in millions)	Nine Months Ended   September 30,
	2015		2014
Interest income:
Finance charges - Consumer and Insurance	$	810	$	663
Finance charges - Acquisitions and Servicing	356		84
Total	$	1,166	$	747

Finance charges — Consumer and Insurance increased$147 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to increases in average net receivables, partially offset by a decrease in yield. Average net receivables increased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to increased originations on personal loans resulting from our continued focus on personal loans, including the launch of our auto loan product in June of 2014. At September 30, 2015, we had over 69,000 auto loans totaling $818 million compared to 6,800 auto loans totaling $89 million at September 30, 2014. Yield decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the higher proportion of our auto loan product, which generally has lower yields.

Finance charges — Acquisitions and Servicing increased$272 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to an additional seven months of finance charges on the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. The increase was partially offset by the liquidating status of the acquired portfolio.

(dollars in millions)	Nine Months Ended   September 30,
	2015		2014
Interest expense - Consumer and Insurance	$	119	$	121
Interest expense - Acquisitions and Servicing	67		12
Total	$	186	$	133

Interest expense — Consumer and Insurance decreased$2 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to a reduction in the utilization of financing from unsecured notes that was replaced by consumer loan securitizations, which generally have lower interest rates. This decrease was partially offset by additional funding required to support increased originations of personal loans.

Interest expense — Acquisitions and Servicing increased$55 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to an additional seven months of interest expense on the long-term debt associated with the securitization of the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase also reflected the refinance of the SpringCastle 2013-A Notes in October 2014, which resulted in an increase in average debt.

(dollars in millions)	Nine Months Ended   September 30,
	2015		2014
Provision for finance receivable losses - Consumer and Insurance	$	170	$	148
Provision for finance receivable losses - Acquisitions and Servicing	69		18
Total	$	239	$	166

Provision for finance receivable losses — Consumer and Insurance increased$22 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to higher net charge-offs on our personal loans during the 2015 period primarily due to growth in our personal loans during the past twelve months and a higher personal loan delinquency ratio at September 30, 2015.

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Provision for finance receivable losses — Acquisitions and Servicing increased$51 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to an additional seven months of provision for finance receivable losses associated with the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the improved credit quality of the SpringCastle Portfolio reflecting improvements in servicing of the acquired portfolio and its liquidating status.

Insurance revenues decreased $9 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in credit and non-credit earned premiums. The decrease in credit earned premiums reflected the cancellations of dwelling policies as a result of the real estate loan sales during 2014. The decrease in non-credit earned premiums reflected fewer non-credit policies written.

Investment revenues increased$8 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to investment income generated from an investment in SpringCastle debt, which is eliminated in our consolidating operating results.

(dollars in millions)	Nine Months Ended   September 30,
	2015		2014
Salaries and benefits - Consumer and Insurance	$	236	$	205
Salaries and benefits - Acquisitions and Servicing	—		—
Total	$	236	$	205

Salaries and benefits — Consumer and Insurance increased $31 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to higher variable compensation reflecting increased originations of personal loans and increased staffing in our centralized operations. This increase also reflected the redistribution of the allocation of salaries and benefit expenses from our Real Estate segment as a result of the real estate loan sales in 2014.

(dollars in millions)	Nine Months Ended   September 30,
	2015		2014
Other operating expenses - Consumer and Insurance	$	159	$	117
Other operating expenses - Acquisitions and Servicing	45		12
Total	$	204	$	129

Other operating expenses — Consumer and Insurance increased $42 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to: (i) higher advertising expenses reflecting our increased focus on e-commerce and social media marketing and our marketing efforts on our auto loan product during 2015; (ii) higher professional fees relating to legal and audit services; (iii) higher credit, collection and losses reflecting growth in personal loans, including our auto loan product: (iv) higher occupancy costs resulting from increased general maintenance costs of our branches and higher leasehold improvement amortization expense from the servicing facilities added in 2014; and (v) higher information technology expenses reflecting increased depreciation and software maintenance as a result of software purchases and the capitalization of internally developed software. This increase also reflected the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

Other operating expenses — Acquisitions and Servicing increased$33 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to an additional seven months of other operating expenses during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the improved credit quality and the liquidation status of the acquired portfolio.

Insurance losses and loss adjustment expenses decreased $5 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to favorable variances in claim reserves and benefit reserves.

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Reconciliation of Income before Provision for Income Taxes on Historical Accounting Basis to Pretax Core Earnings

Pretax core earnings is a key performance measure used by management in evaluating the performance of our Core Consumer Operations. Pretax core earnings represents our income before provision for income taxes on a historical accounting basis and excludes results of operations from our non-core portfolio (Real Estate) and other non-originating legacy operations, gains (losses) resulting from accelerated long-term debt repayment and repurchases of long-term debt related to Core Consumer Operations (attributable to SFC), gains (losses) on fair value adjustments on debt related to Core Consumer Operations (attributable to SFC), and results of operations attributable to non-controlling interests. Pretax core earnings provides us with a key measure of our Core Consumer Operations’ performance as it assists us in comparing its performance on a consistent basis. Management believes pretax core earnings is useful in assessing the profitability of our core business and uses pretax core earnings in evaluating our operating performance. Pretax core earnings is a non-GAAP measure and should be considered in addition to, but not as a substitute for or superior to, operating income, net income, operating cash flow, and other measures of financial performance prepared in accordance with U.S. GAAP.

The following is a reconciliation of income before provision for income taxes on a historical accounting basis to pretax core earnings:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Income before provision for income taxes - historical accounting basis *	$	80		$	332		$	226		$	310
Adjustments:
Pretax operating (income) loss - Non-Core Portfolio Operations	47			(222		)	138			(95		)
Pretax operating loss - Other/non-originating legacy operations	13			2			50			9
Net loss from accelerated repayment/repurchase of debt - Core Consumer Operations (attributable to SFC)	—			—			—			1
Net gain on fair value adjustments on debt - Core Consumer Operations (attributable to SFC)	—			(1		)	—			(1		)
Pretax operating income attributable to non-controlling interests	(31		)	(23		)	(93		)	(23		)
Pretax core earnings	$	109		$	88		$	321		$	201

* See reconciliation of income before provision for income taxes on a push-down accounting basis to a historical accounting basis, which is presented prior to “Segment Results”.

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NON-CORE PORTFOLIO

Pretax operating results for Real Estate (which are reported on a historical accounting basis) were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest income:
Finance charges	$	14		$	53		$	43		$	334
Finance receivables held for sale originated as held for investment	3			41			9			48
Total interest income	17			94			52			382
Interest expense	58			83			177			287
Net interest income (loss)	(41		)	11			(125		)	95
Provision for finance receivable losses	(4		)	37			(7		)	119
Net interest loss after provision for finance receivable losses	(37		)	(26		)	(118		)	(24		)
Other revenues:
Investment	—			(1		)	8			(1		)
Net loss on repurchases and repayments of debt	—			—			—			(10		)
Net gain on fair value adjustments on debt	—			—			—			8
Net gain on sales of real estate loans and related trust assets *	—			287			—			202
Other	(2		)	(2		)	(4		)	(3		)
Total other revenues	(2		)	284			4			196
Other expenses:
Operating expenses:
Salaries and benefits	3			18			9			35
Other operating expenses	5			18			15			42
Total other expenses	8			36			24			77
Pretax operating income (loss)	$	(47	)	$	222		$	(138	)	$	95

* For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans.

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Selected financial statistics for Real Estate (which are reported on a historical accounting basis) were as follows:

(dollars in millions)	Three Months Ended September 30,						At or for the Nine Months Ended September 30,
	2015			2014			2015			2014
Real Estate
Finance receivables held for investment:
Net finance receivables							$	591		$	702
Number of accounts							19,001			25,362
TDR finance receivables							$	159		$	160
Allowance for finance receivable losses - TDR							$	53		$	56
Provision for finance receivable losses - TDR	$	1		$	8		$	3		$	74
Average net receivables	$	605		$	2,867		$	633		$	6,512
Yield	9.15		%	7.33		%	9.11		%	6.86		%
Loss ratio *	3.28		%	3.03		%	3.93		%	1.97		%
Delinquency ratio							7.25		%	7.31		%
Finance receivables held for sale:
Net finance receivables							$	186		$	494
Number of accounts							3,283			7,427
TDR finance receivables							$	189		$	486

* The loss ratio for the nine months ended September 30, 2014 reflects $2 million of recoveries on charged-off real estate loans resulting from a sale of previously charged-off real estate loans in March of 2014. Excluding these recoveries, our Real Estate loss ratio would have been 2.02% for the nine months ended September 30, 2014.

Comparison of Pretax Operating Results for Three Months Ended September 30, 2015 and 2014

Finance charges decreased $39 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in average net receivables, partially offset by an increase in yield. Average net receivables decreased for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the continued liquidation of the real estate portfolio, including the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. The increase in yield for the three months ended September 30, 2015 reflected a higher proportion of our remaining real estate loans that are secured by second mortgages, which generally have higher yields.

Interest income on real estate loans held for sale decreased$38 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower average real estate loans held for sale during the 2015 period.

Interest expense decreased $25 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the sales of the Company’s beneficial interests in the mortgage-backed retained certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt.

Provision for finance receivable losses decreased $41 million for the three months ended September 30, 2015 when compared to the same period in 2014. The decrease in provision for finance receivable losses reflected reductions in net charge-offs and the allowance requirements on our real estate loans recorded for the three months ended September 30, 2015, as a result of the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease also reflected a lower real estate loan delinquency ratio at September 30, 2015.

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Net gain on sales of real estate loans and related trust assets of $287 million for the three months ended September 30, 2014 primarily reflected consideration of amounts greater than the historical carrying value of the real estate loans at the date of sale. The net gain also included proceeds of $39 million from the related MSR sale. The net gain was partially offset by the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale. Consistent with our segment reporting presentation, we have combined the lower of cost or fair value adjustments with the final gain (loss) on the sales of these loans.

Salaries and benefits decreased$15 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to the redistribution of the allocation of salaries and benefit expenses from our Real Estate segment as a result of the real estate loan sales in 2014.

Other operating expenses decreased $13 million for the three months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower professional services expenses and credit, collection and losses resulting from the sales of real estate loans during 2014. This decrease also reflected the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

Comparison of Pretax Operating Results for Nine Months EndedSeptember 30, 2015 and 2014

Finance charges decreased$291 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to decreases in average net receivables, partially offset by an increase in yield. Average net receivables decreased for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the continued liquidation of the real estate portfolio, including the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. The increase in yield for the nine months ended September 30, 2015 reflected a higher proportion of our remaining real estate loans that are secured by second mortgages, which generally have higher yields.

Interest income on real estate loans held for sale decreased$39 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower average real estate loans held for sale during the 2015 period.

Interest expense decreased$110 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the sales of the Company’s beneficial interests in the mortgage-backed retained certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt.

Provision for finance receivable losses decreased$126 million for the nine months ended September 30, 2015 when compared to the same period in 2014. The decrease in provision for finance receivable losses reflected reductions in net charge-offs and the allowance requirements on our real estate loans recorded for the nine months ended September 30, 2015, as a result of the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease also reflected a lower real estate loan delinquency ratio at September 30, 2015.

Investment revenues of $8 million for the nine months ended September 30, 2015 reflected investment income generated from investing the proceeds of the real estate loan sales during 2014.

Net loss on repurchases and repayments of debt of $10 million for the nine months ended September 30, 2014, reflected acceleration of amortization of deferred costs and repurchases of debt at net amounts greater than carrying value.

Net gain on fair value adjustments on debt of $8 million for the nine months ended September 30, 2014, reflected differences between historical accounting basis and push-down accounting basis. On a historical accounting basis, certain long-term debt components were marked-to-market on a recurring basis and were no longer marked-to-market on a recurring basis after the application of push-down accounting at the time of the Fortress Acquisition.

Net gain on sales of real estate loans and related trust assets of $202 million for the nine months ended September 30, 2014, primarily reflected consideration of amounts greater than the historical carrying value of the real estate loans at the date of sale. The net gain also included proceeds of $39 million from the related MSR sale. The net gain was partially offset by the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale. Consistent with our segment reporting presentation, we have combined the lower of cost or fair value adjustments with the final gain (loss) on the sales of these loans.

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Salaries and benefits decreased$26 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the redistribution of the allocation of salaries and benefit expenses from our Real Estate segment as a result of the real estate loan sales in 2014.

Other operating expenses decreased $27 million for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to lower professional services expenses and credit, collection and losses resulting from the sales of real estate loans during 2014. This decrease also reflected the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

OTHER

“Other” consists of our other non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our prospective Core Consumer Operations and our Non-Core Portfolio. These operations include our legacy operations in 14 states where we have also ceased branch-based personal lending as a result of our restructuring activities during the first half of 2012, our liquidating retail sales finance portfolio (including our retail sales finance accounts from our dedicated auto finance operation), our lending operations in Puerto Rico and the U.S. Virgin Islands, and the operations of our United Kingdom subsidiary.

Pretax operating results of the Other components (which are reported on a historical accounting basis) were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest income	$	1		$	4		$	6		$	13
Interest expense	16			2			48			6
Net interest income (loss)	(15		)	2			(42		)	7
Provision for finance receivable losses	—			2			1			7
Net interest loss after provision for finance receivable losses	(15		)	—			(43		)	—
Other revenues:
Other	4			1			10			5
Total other revenues	4			1			10			5
Other expenses:
Operating expenses:
Salaries and benefits	1			2			19			9
Other operating expenses	1			1			(2		)	5
Total other expenses	2			3			17			14
Pretax operating loss	$	(13	)	$	(2	)	$	(50	)	$	(9	)

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Net finance receivables of the Other components (which are reported on a historical accounting basis) were as follows:

(dollars in millions)	September 30,
	2015		2014
Net finance receivables:
Personal loans	$	19	$	34
Real estate loans	—		7
Retail sales finance	29		59
Total	$	48	$	100

Comparison of Pretax Operating Results for Three and/or Nine Months EndedSeptember 30, 2015 and 2014

Interest expense for the three and nine months ended September 30, 2015 when compared to the same periods in 2014 reflected higher interest expense on unsecured debt, which was allocated based on a higher cash balance resulting from the proceeds from the real estate sales in 2014.

Salaries and benefits for the nine months ended September 30, 2015 included non-cash incentive compensation expense of $15 million recorded in the second quarter of 2015 related to the rights of certain executives to a portion of the cash proceeds from the sale of SHI’s common stock by the Initial Stockholder. See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information regarding SHI’s equity offering.

Credit Quality    

Our customers encompass a wide range of borrowers. In the consumer finance industry, they are described as prime or near-prime at one extreme and non-prime or sub-prime (less creditworthy) at the other. Our customers’ incomes are generally near the national median but our customers may vary from national norms as to their debt-to-income ratios, employment and residency stability, and/or credit repayment histories. In general, our customers have lower credit quality and require significant levels of servicing.

Carrying value of finance receivables includes accrued finance charges, unamortized deferred origination costs and unamortized net premiums and discounts on purchased finance receivables. We record an allowance for loan losses to cover expected losses on our finance receivables.

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time.

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The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Net finance receivables:
60-89 days past due	$	47	$	24	$	16	$	1	$	88
90-119 days past due	36		15		4		—		55
120-149 days past due	29		11		3		—		43
150-179 days past due	23		9		2		—		34
180 days or more past due	2		1		12		—		15
Total delinquent finance receivables	137		60		37		1		235
Current	3,784		1,562		497		25		5,868
30-59 days past due	69		45		13		1		128
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Net finance receivables:
60-89 days past due	$	36	$	31	$	12	$	1	$	80
90-119 days past due	30		19		9		—		58
120-149 days past due	24		16		5		1		46
150-179 days past due	21		14		4		—		39
180 days or more past due	2		2		12		—		16
Total delinquent finance receivables	113		82		42		2		239
Current	3,632		1,839		565		45		6,081
30-59 days past due	55		58		18		1		132
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

TROUBLED DEBT RESTRUCTURING

We make modifications to our finance receivables to assist borrowers during times of financial difficulties. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable.

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans *		SpringCastle Portfolio		Real Estate Loans *		Total
September 30, 2015
TDR net finance receivables	$	29	$	12	$	200	$	241
Allowance for TDR finance receivable losses	$	7	$	4	$	30	$	41
Number of TDR accounts	10,098		1,557		3,478		15,133
December 31, 2014
TDR net finance receivables	$	22	$	10	$	196	$	228
Allowance for TDR finance receivable losses	$	1	$	3	$	32	$	36
Number of TDR accounts	8,069		1,159		3,463		12,691

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* TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
September 30, 2015
TDR net finance receivables	$	2	$	92	$	94
Number of TDR accounts	746		1,313		2,059
December 31, 2014
TDR net finance receivables	$	—	$	91	$	91
Number of TDR accounts	—		1,284		1,284

Liquidity and Capital Resources    

We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, securitization debt, and unsecured debt. In the future, we plan to finance our operating liquidity and capital needs through a combination of cash flows from operations, securitization debt, unsecured debt, and other corporate debt facilities.

As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses and, to a lesser extent, expenditures relating to upgrading and monitoring our technology platform, risk systems, and branch locations.

Our insurance subsidiaries maintain reserves as liabilities on the balance sheet to cover future claims for certain insurance products. Claims reserves totaled $71 million as of September 30, 2015.

At September 30, 2015, we had $2.8 billion of cash and cash equivalents, and during the nine months ended September 30, 2015, SFC generated net income of $10 million. Our net cash inflow from operating and investing activities totaled $987 millionfor the nine months ended September 30, 2015. At September 30, 2015, our scheduled principal and interest payments on our existing debt (excluding securitizations) totaled $892 million for the remainder of 2015 and $678 million for 2016. As of September 30, 2015, we had $1.5 billion UPB of unencumbered personal loans (including $115 million held for sale) and $838 million UPB of unencumbered real estate loans (including $247 million held for sale).

Based on our estimates and taking into account the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due for at least the next twelve months.

LIQUIDITY

Operating Activities

Net cash provided by operations of $422 million for the nine months ended September 30, 2015 reflected net income of $103 million, the impact of non-cash items, and a favorable change in working capital of $15 million. Net cash provided by operations of $168 million for the nine months ended September 30, 2014 reflected net income of $520 million, the impact of non-cash items, and a favorable change in working capital of $18 million.

Investing Activities

Net cash provided by investing activities decreased$1.9 billion for the nine months ended September 30, 2015 when compared to the same period in 2014 primarily due to the sales of real estate loans held for sale originated as held for investment during 2014. This decrease was partially offset by the sale of investment securities during 2015.

Financing Activities

Net cash provided by financing activities of $1.0 billion for the nine months ended September 30, 2015 reflected the debt issuances associated with the 2015-A and 2015-B securitizations. Net cash used by financing activities of $1.1 billion for the nine months ended September 30, 2014 was primarily due to the repayments of the secured term loan and the 2013-BAC trust notes in late March of 2014.

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Liquidity Risks and Strategies

SFC’s credit ratings are non-investment grade, which have a significant impact on our cost of, and access to, capital. This, in turn, can negatively affect our ability to manage our liquidity and our ability or cost to refinance our indebtedness.

There are numerous risks to our financial results, liquidity, capital raising, and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks include, but are not limited, to the following:

• our inability to grow or maintain our personal loan portfolio with adequate profitability;

• the effect of federal, state and local laws, regulations, or regulatory policies and practices;

• potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans; and

• the potential for disruptions in the debt and equity markets.

The principal factors that could decrease our liquidity are customer delinquencies and defaults, a decline in customer prepayments, and a prolonged inability to adequately access capital market funding. We intend to support our liquidity position by utilizing the following strategies:

• maintaining disciplined underwriting standards and pricing for loans we originate or purchase and managing purchases of finance receivables;

• pursuing additional debt financings (including new securitizations and new unsecured debt issuances, debt refinancing transactions and standby funding facilities), or a combination of the foregoing;

• purchasing portions of our outstanding indebtedness through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we or our affiliates may determine; and

• obtaining secured revolving credit facilities to allow us to use excess cash to pay down higher cost debt.

However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect.

OUR INSURANCE SUBSIDIARIES

State law restricts the amounts our insurance subsidiaries, Merit and Yosemite, may annually pay as dividends without prior notice to the Indiana Department of Insurance (the “DOI”). The maximum amount of dividends (referred to as “ordinary dividends”) that can be paid without prior DOI approval in any 12 month period (measured retrospectively from the date of last payment) is the greater of: (1) 10% of policyholders’ surplus as of the prior year-end; or (2) the net gain from operations as of the prior year-end. Any greater amount must be approved by the DOI prior to its payment. These approved dividends are called “extraordinary dividends”. Merit and Yosemite each paid $50 million of extraordinary dividends to SFC during the second quarter of 2015.

OUR DEBT AGREEMENTS

The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement.

With the exception of SFC’s junior subordinated debenture, none of our debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios.

Under our debt agreements, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements.

As of September 30, 2015, we were in compliance with all of the covenants under our debt agreements. Additionally, SHI guarantees the payments of principal, premium (if any) and interest on certain senior notes and the junior subordinated debt of SFC. See Note 10 of the Notes to Condensed Financial Statements for further information on these guaranty agreements.

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Junior Subordinated Debenture

In January of 2007, SFC issued $350 million aggregate principal amount of 60-year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January of 2017.

Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (1) tangible equity to tangible managed assets is less than 5.5% or (2) average fixed charge ratio is not more than 1.10x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends).

Based upon SFC’s financial results for the twelve months ended September 30, 2015, a mandatory trigger event occurred with respect to the payment due in January of 2016 as the average fixed charge ratio was 0.94x. As of September 30, 2015, SFC had not received from SFI the non-debt capital funding necessary to satisfy the January 2016 interest payments required by SFC’s debenture. SFC intends to issue one share of SFC common stock to SFI for $10.5 million in January of 2016 to satisfy the non-debt capital funding requirement.

Structured Financings

We execute private securitizations under Rule 144A of the Securities Act of 1933. As of September 30, 2015, our structured financings consisted of the following:

(dollars in millions)	Initial Note Amounts Issued (a)		Initial Collateral Balance (b)		Current Note Amounts Outstanding		Current Collateral Balance (b)		Current Weighted Average Interest Rate		Collateral Type	Revolving Period
Consumer Securitizations
SLFMT 2013-A	$	568	$	663	$	249	$	342	2.98	%	Personal loans	2 years
SLFMT 2013-B	370		442		370		442		3.99	%	Personal loans	3 years
SLFMT 2014-A	559		644		559		644		2.55	%	Personal loans	2 years
SLFMT 2015-A	1,163		1,250		1,162		1,250		3.47	%	Personal loans	3 years
SLFMT 2015-B	314		335		314		336		3.78	%	Personal loans	5 years
Total consumer securitizations	2,974		3,334		2,654		3,014
SpringCastle Securitization
SCFT 2014-A	2,559		2,737		2,030		2,207		3.98	%	Personal and junior mortgage loans	N/A (c)
Total secured structured financings	$	5,533	$	6,071	$	4,684	$	5,221

(a) Represents securities sold at time of issuance or at a later date and does not include retained notes.

(b) Represents UPB of the collateral supporting the issued and retained notes.

(c) Not applicable.

In addition to the structured financings included in the table above, we have access to seven conduit facilities with a total borrowing capacity of $2.2 billion, as discussed in Note 11 of the Notes to Condensed Consolidated Financial Statements. At September 30, 2015, $100 million was drawn under these facilities.

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Our securitizations have served to partially replace secured and unsecured debt in our capital structure with more favorable non-recourse funding. Our overall funding costs are positively impacted by our increased usage of securitizations as we typically execute these transactions at interest rates significantly below those of our maturing secured and unsecured debt.

The weighted average interest rates on our debt on a historical accounting basis were as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
Weighted average interest rate	5.47	%	5.45	%	5.45	%	5.39	%

Off-Balance Sheet Arrangements    

We have no material off-balance sheet arrangements as defined by SEC rules. We had no off-balance sheet exposure to losses associated with unconsolidated VIEs at September 30, 2015 or December 31, 2014, other than certain representations and warranties associated with the sales of the mortgage-backed retained certificates during 2014. As of September 30, 2015, we had no repurchase activity related to these sales.

Critical Accounting Policies and Estimates    

We describe our significant accounting policies used in the preparation of our consolidated financial statements in Note 2 of the Notes to Consolidated Financial Statements in Part II, Item 8 of our 2014 Annual Report on Form 10-K. We consider the following policies to be our most critical accounting policies because they involve critical accounting estimates and a significant degree of management judgment:

• allowance for finance receivable losses;

• purchased credit impaired finance receivables;

• TDR finance receivables; and

• fair value measurements.

We believe the amount of the allowance for finance receivable losses is the most significant estimate we make. See “—Critical Accounting Policies and Estimates — Allowance for Finance Receivable Losses” in Part II, Item 7 of our 2014 Annual Report on Form 10-K for further discussion of the models and assumptions used to assess the adequacy of the allowance for finance receivable losses and Note 5 of the Notes to Condensed Consolidated Financial Statements for period-to-period changes in the components of our allowance for finance receivable losses.

There have been no significant changes to our critical accounting policies or to our methodologies for deriving critical accounting estimates during the nine months ended September 30, 2015.

Recent Accounting Pronouncements    

See Note 3 of the Notes to Condensed Consolidated Financial Statements for discussion of recently issued accounting pronouncements.

Seasonality    

Our personal loan volume is generally highest during the second and fourth quarters of the year, primarily due to marketing efforts, seasonality of demand, and increased traffic in branches after the winter months. Demand for our personal loans is usually lower in January and February after the holiday season and as a result of tax refunds. Delinquencies on our personal loans are generally lowest in the first quarter and tend to rise throughout the remainder of the year. The seasonal trends in personal loan volume and delinquencies contribute to fluctuations in our operating results and cash needs throughout the year.

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Glossary of Terms    

Average debt	average of debt for each day in the period
Average net receivables	average of net finance receivables at the beginning and end of each month in the period
Charge-off ratio	annualized net charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Delinquency ratio	UPB 60 days or more past due (greater than three payments unpaid) as a percentage of UPB
Gross charge-off ratio	annualized gross charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Trust Preferred Securities	capital securities classified as debt for accounting purposes but due to their terms are afforded, at least in part, equity capital treatment in the calculation of effective leverage by rating agencies
Loss ratio	annualized net charge-offs, net writedowns on real estate owned, net gain (loss) on sales of real estate owned, and operating expenses related to real estate owned as a percentage of the average of real estate loans at the beginning of each month in the period
Net interest income	interest income less interest expense
Recovery ratio	annualized recoveries on net charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Tangible equity	total equity less accumulated other comprehensive income or loss
Weighted average interest rate	annualized interest expense as a percentage of average debt
Yield	annualized finance charges as a percentage of average net receivables

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.    

There have been no significant changes to our market risk previously disclosed in Part II, Item 7A of our 2014 Annual Report on Form 10-K.

Item 4. Controls and Procedures.    

Evaluation of Disclosure Controls and Procedures

We are committed to maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. Based on this evaluation, and in light of the previously identified material weakness in our internal control over financial reporting as of December 31, 2014, described in our 2014 Annual Report on Form 10-K, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of September 30, 2015.

We have taken and continue to take steps to remediate the underlying cause of the material weakness. These steps include strengthening our procedures and controls around validating the functionality of certain spreadsheets and reports used in the preparation and analysis of accounting and financial information, including developing specific guidelines for appropriate review procedures, such as validating inputs, assumptions and formulas, and providing additional training to our current accounting and finance personnel.

These actions are subject to ongoing review by our senior management, as well as oversight by the audit committee of our board of directors. We are placing a high priority on the remediation process and are committed to allocating the necessary resources to the remediation effort. To reduce the potential severity of the deficiency as soon as possible, we have focused our initial efforts on those spreadsheets and reports that present a higher risk of a misstatement. When fully implemented and operating effectively, our efforts are expected to remediate the material weakness. However, we cannot provide any assurance that these efforts will be successful or that they will cause our disclosure controls and procedures or internal control over financial reporting to be effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2015, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.    

See Note 14 of the Notes to Condensed Consolidated Financial Statements in Part I of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors.    

There have been no material changes to our risk factors previously disclosed in Part I, Item 1A of our 2014 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.    

None.

Item 3. Defaults Upon Senior Securities.    

None.

Item 4. Mine Safety Disclosures.    

Not applicable.

Item 5. Other Information.    

None.

Item 6. Exhibits.    

Exhibits are listed in the Exhibit Index beginning on page 86 herein.

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Signature    

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SPRINGLEAF FINANCE CORPORATION
		(Registrant)
Date:	November 9, 2015	By	/s/ Minchung (Macrina) Kgil
			Minchung (Macrina) Kgil
			Executive Vice President and Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)

85

Exhibit Index    

Exhibit
2.1	Stock Purchase Agreement, dated as of March 2, 2015, by and between Springleaf Holdings, Inc. and CitiFinancial Credit Company (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on March 3, 2015).
3 a.	Amended and Restated Articles of Incorporation of Springleaf Finance Corporation (the “Company”) (formerly American General Finance Corporation), as amended to date. Incorporated by reference to Exhibit (3a.) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.
b.	Amended and Restated By-laws of the Company, as amended to date. Incorporated by reference to Exhibit (3b.) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.
31.1	Rule 13a-14(a)/15d-14(a) Certifications of the President and Chief Executive Officer of Springleaf Finance Corporation.
31.2	Rule 13a-14(a)/15d-14(a) Certifications of the Executive Vice President and Chief Financial Officer of Springleaf Finance Corporation.
32.1	Section 1350 Certifications
101 *	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.

* As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Section 11 and 12 of the Securities and Exchange Act of 1933 and Section 18 of the Securities and Exchange Act of 1934.

86

EX-31.1

Exhibit 31.1                                                        

Certifications

I, Jay N. Levine, President and Chief Executive Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Springleaf Finance Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2015
		/s/ Jay N. Levine
		Jay N. Levine
		President and Chief Executive Officer

88

EX-31.2

Exhibit 31.2                                                        

Certifications

I, Minchung (Macrina) Kgil, Executive Vice President and Chief Financial Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Springleaf Finance Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2015
		/s/ Minchung (Macrina) Kgil
		Minchung (Macrina) Kgil
		Executive Vice President and Chief Financial Officer

89

EX-32.1

Exhibit 32.1                                                        

Certifications

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 of Springleaf Finance Corporation (the Company) as filed with the Securities and Exchange Commission on the date hereof (the Report), each of Jay N. Levine, President and Chief Executive Officer of the Company, and Minchung (Macrina) Kgil, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		/s/ Jay N. Levine
		Jay N. Levine
		President and Chief Executive Officer
		/s/ Minchung (Macrina) Kgil
		Minchung (Macrina) Kgil
		Executive Vice President and Chief Financial Officer
Date:	November 9, 2015

90

XML

Business and Basis of Presentation Prior Period Revisions (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014		Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Prior period revisions
Provision for finance receivable losses		$ 82		$ 93		$ 247	$ 274
Provision for income taxes		7		219		14	276
Assets		12,382		11,306	[1],[2]	12,382	11,306	[1],[2]		$ 11,097
Other
Prior period revisions
Provision for finance receivable losses		0		2		1	7
Assets		1,471		705	[1],[2]	1,471	705	[1],[2]
Consumer and Insurance | Operating segments
Prior period revisions
Provision for finance receivable losses		62		55		170	148
Assets		5,628		4,626	[1],[2]	5,628	4,626	[1],[2]
Real Estate | Operating segments
Prior period revisions
Provision for finance receivable losses		(4)		37		(7)	119
Assets		$ 3,551		3,720	[1],[2]	$ 3,551	3,720	[1],[2]
Adjustments
Prior period revisions
Cash and cash equivalents										165
Provision for finance receivable losses			$ 8
Provision for income taxes			$ (3)
Adjustments | Other
Prior period revisions
Assets	[3]			705			705		$ 1,832	555	$ 1,058	$ 611
Adjustments | Real Estate Loans Held for Sale
Prior period revisions
Escrow Liability										15
Adjustments | Consumer and Insurance | Operating segments
Prior period revisions
Assets	[3]			4,651			4,651		5,070	4,462	4,406	4,200
Adjustments | Real Estate | Operating segments
Prior period revisions
Assets	[3]			$ 3,720			$ 3,720		$ 3,613	$ 3,666	$ 6,561	$ 8,512

[1] As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of September 30, 2014.

[2] See Note 1 for further information on the correction of this prior period disclosure.

[3] The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

XML

Allowance for Finance Receivable Losses (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period		$ 178		$ 366		$ 174		$ 332
Provision for finance receivable losses		82		93		247		274
Charge-offs		(83)		(82)		(271)		(230)
Recoveries		15		9		42		25	[1]
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale		(1)	[2]	(225)	[3]	(1)	[2]	(240)	[3]
Allowance for SpringCastle Portfolio contributed to SFC				1				1
Balance at end of period		191		162		191		162
Carrying value of finance receivables transferred from held for investment to held for sale				5,300				6,600
Carrying amount charged-off for purchased credit impaired loans
Net charge-offs on finance receivables held for sale						0		11
Consolidated VIEs
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period						72
Balance at end of period		131				131
Real Estate Loan
Changes in the allowance for finance receivable losses by finance receivable type
Carrying value of finance receivables transferred from held for investment to held for sale				5,300				6,600
Personal loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period		139		106		130		94
Provision for finance receivable losses		60		58		170		150
Charge-offs		(57)		(48)		(176)		(139)
Recoveries		10		7		28		18	[1]
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale		(1)	[2]	0	[3]	(1)	[2]	0	[3]
Allowance for SpringCastle Portfolio contributed to SFC				0				0
Balance at end of period		151		123		151		123
Carrying value of finance receivables transferred from held for investment to held for sale		608				608
SpringCastle Portfolio
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period		3		0		3		0
Provision for finance receivable losses		20		18		70		18
Charge-offs		(22)		(20)		(78)		(20)
Recoveries		3		2		9		2	[1]
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale		0	[2]	0	[3]	0	[2]	0	[3]
Allowance for SpringCastle Portfolio contributed to SFC				1				1
Balance at end of period		4		1		4		1
Carrying amount charged-off for purchased credit impaired loans
Net charge-offs on finance receivables held for sale		4		5		17		5
Real Estate
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period		35		259		40		236
Provision for finance receivable losses		2		16		6		103
Charge-offs		(4)		(13)		(15)		(67)
Recoveries		2				4		5	[1]
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale		0	[2]	(225)	[3]	0	[2]	(240)	[3]
Allowance for SpringCastle Portfolio contributed to SFC				0				0
Balance at end of period		35		37		35		37
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims								2
Retail Sales Finance
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period		1		1		1		2
Provision for finance receivable losses		0		1		1		3
Charge-offs		0		(1)		(2)		(4)
Recoveries		0		0		1		0	[1]
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale		0	[2]	0	[3]	0	[2]	0	[3]
Allowance for SpringCastle Portfolio contributed to SFC				0				0
Balance at end of period		1		1		1		1
Affiliates of Fortress or AIG
Carrying amount charged-off for purchased credit impaired loans
Net charge-offs on finance receivables held for sale	[4]	$ 0		$ 2		$ 1		$ 15

[1] Recoveries during the nine months ended September 30, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March of 2014.

[2] During the three and nine months ended September 30, 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

[3] During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

[4] Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status.

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Finance Receivables (Details 6) - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014
Finance Receivables
Carrying amount, net of allowance		$ 337	$ 433
Outstanding balance		654	779
Allowance for purchased credit impaired finance receivable losses		5	5
SpringCastle Portfolio
Finance Receivables
Carrying amount, net of allowance		251	340
Outstanding balance		515	628
Allowance for purchased credit impaired finance receivable losses		0	0
Affiliates of Fortress or AIG
Finance Receivables
Carrying amount, net of allowance	[1]	86	93
Outstanding balance	[1]	139	151
Allowance for purchased credit impaired finance receivable losses	[1]	5	5
Carrying amount, net of allowance, held for sale		62	68
Outstanding balance, held for sale		$ 91	$ 99

[1] Purchased credit impaired FA Loans held for sale included in the table above were as follows:(dollars in millions) FA Loans September 30, 2015 Carrying amount, net of allowance $62Outstanding balance 91 December 31, 2014 Carrying amount, net of allowance $68Outstanding balance 99

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Contingencies - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) loan request	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan request	Sep. 30, 2014 USD ($) loan	Dec. 31, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Finance Receivables
Real estate loans sold, reserve for sales recourse obligations					$ 22
Finance receivables reserve for sales recourse obligations	$ 18	$ 13	$ 18	$ 13	24	$ 18	$ 5	$ 5
Repurchased loans		$ 1		$ 2
Number of unresolved recourse requests | request	0		0
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number | loan	0	4		9
Estimated PPI claims reserve	$ 8		$ 8		$ 14
Real Estate Loan
Finance Receivables
Finance receivables reserve for sales recourse obligations	$ 18		18
Repurchased loans			$ 1
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number | loan		0	13	0

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Allowance for Finance Receivable Losses (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$ 145		$ 133
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	191	$ 178	174	$ 162	$ 366	$ 332
Individually evaluated for impairment (TDR finance receivables)	41		36
Allowance for finance receivable losses	191	178	174	162	366	332
Finance receivables:
Collectively evaluated for impairment	5,804		5,945
Purchased credit impaired finance receivables	6,231		6,452
TDR finance receivables	147		137
Net finance receivables	6,231		6,452
Personal loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	144		129
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	151	139	130	123	106	94
Individually evaluated for impairment (TDR finance receivables)	7		1
Allowance for finance receivable losses	151	139	130	123	106	94
Finance receivables:
Collectively evaluated for impairment	3,963		3,778
Purchased credit impaired finance receivables	3,990		3,800
TDR finance receivables	27		22
Net finance receivables	3,990		3,800
SpringCastle Portfolio
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0		0
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	4	3	3	1	0	0
Individually evaluated for impairment (TDR finance receivables)	4		3
Allowance for finance receivable losses	4	3	3	1	0	0
Finance receivables:
Collectively evaluated for impairment	1,404		1,629
Purchased credit impaired finance receivables	1,667		1,979
TDR finance receivables	12		10
Net finance receivables	1,667		1,979
Real estate loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0		3
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	35	35	40	37	259	236
Individually evaluated for impairment (TDR finance receivables)	30		32
Allowance for finance receivable losses	35	35	40	37	259	236
Finance receivables:
Collectively evaluated for impairment	410		490
Purchased credit impaired finance receivables	547		625
TDR finance receivables	108		105
Net finance receivables	547		625
Retail Sales Finance
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	1		1
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	1	1	1	1	1	2
Individually evaluated for impairment (TDR finance receivables)	0		0
Allowance for finance receivable losses	1	$ 1	1	$ 1	$ 1	$ 2
Finance receivables:
Collectively evaluated for impairment	27		48
Purchased credit impaired finance receivables	27		48
TDR finance receivables	0		0
Net finance receivables	27		48
Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	5		5
Allowance for finance receivable losses	5		5
Finance receivables:
Purchased credit impaired finance receivables	280		370
Net finance receivables	280		370
Receivables Acquired with Deteriorated Credit Quality | Personal loans
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0		0
Allowance for finance receivable losses	0		0
Finance receivables:
Purchased credit impaired finance receivables	0		0
Net finance receivables	0		0
Receivables Acquired with Deteriorated Credit Quality | SpringCastle Portfolio
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0		0
Allowance for finance receivable losses	0		0
Finance receivables:
Purchased credit impaired finance receivables	251		340
Net finance receivables	251		340
Receivables Acquired with Deteriorated Credit Quality | Real estate loans
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	5		5
Allowance for finance receivable losses	5		5
Finance receivables:
Purchased credit impaired finance receivables	29		30
Net finance receivables	29		30
Receivables Acquired with Deteriorated Credit Quality | Retail Sales Finance
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0		0
Allowance for finance receivable losses	0		0
Finance receivables:
Purchased credit impaired finance receivables	0		0
Net finance receivables	$ 0		$ 0

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Fair Value Measurements (Details 4) - Level 3 - Recurring - Discounted cash flows - bond		9 Months Ended	12 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Corporate debt
Unobservable Input
Yield (as a percent)	[1]	0.00%	1.05%
Number of bonds			1
Residential mortgage-backed securities (“RMBS”)
Unobservable Input
Spread (as a percent)	[2]	7.43%	7.36%	[3]
Number of bonds		1	1
Commercial mortgage-backed securities (“CMBS”)
Unobservable Input
Spread (as a percent)	[2],[3]		1.39%
Mortgage Loan Securitizations
Unobservable Input
Number of bonds			1

[1] Not applicable.

[2] At September 30, 2015 and December 31, 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

[3] During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

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Finance Receivables (Details 4) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Net finance receivables:
Net finance receivables	$ 6,231	$ 6,452
Total delinquent finance receivables	235	239
Current	5,868	6,081
Personal loans
Net finance receivables:
Net finance receivables	3,990	3,800
Total delinquent finance receivables	137	113
Current	3,784	3,632
SpringCastle Portfolio
Net finance receivables:
Net finance receivables	1,667	1,979
Total delinquent finance receivables	60	82
Current	1,562	1,839
Real estate loans
Net finance receivables:
Net finance receivables	547	625
Total delinquent finance receivables	37	42
Current	497	565
Retail Sales Finance
Net finance receivables:
Net finance receivables	27	48
Total delinquent finance receivables	1	2
Current	25	45
60-89 days past due
Net finance receivables:
Net finance receivables	88	80
60-89 days past due | Personal loans
Net finance receivables:
Net finance receivables	47	36
60-89 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	24	31
60-89 days past due | Real estate loans
Net finance receivables:
Net finance receivables	16	12
60-89 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	1	1
90-119 days past due
Net finance receivables:
Net finance receivables	55	58
90-119 days past due | Personal loans
Net finance receivables:
Net finance receivables	36	30
90-119 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	15	19
90-119 days past due | Real estate loans
Net finance receivables:
Net finance receivables	4	9
90-119 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	0
120-149 days past due
Net finance receivables:
Net finance receivables	43	46
120-149 days past due | Personal loans
Net finance receivables:
Net finance receivables	29	24
120-149 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	11	16
120-149 days past due | Real estate loans
Net finance receivables:
Net finance receivables	3	5
120-149 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	1
150-179 days past due
Net finance receivables:
Net finance receivables	34	39
150-179 days past due | Personal loans
Net finance receivables:
Net finance receivables	23	21
150-179 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	9	14
150-179 days past due | Real estate loans
Net finance receivables:
Net finance receivables	2	4
150-179 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	0
180 days or more past due
Net finance receivables:
Net finance receivables	15	16
180 days or more past due | Personal loans
Net finance receivables:
Net finance receivables	2	2
180 days or more past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	1	2
180 days or more past due | Real estate loans
Net finance receivables:
Net finance receivables	12	12
180 days or more past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	0
30-59 days past due
Net finance receivables:
Net finance receivables	128	132
30-59 days past due | Personal loans
Net finance receivables:
Net finance receivables	69	55
30-59 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	45	58
30-59 days past due | Real estate loans
Net finance receivables:
Net finance receivables	13	18
30-59 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	$ 1	$ 1

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income

Changes in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains Investment Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended September 30, 2015
Balance at beginning of period	$	2		$	(13	)	$	4	$	(7	)
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2		)	—			—		(2		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Three Months Ended September 30, 2014
Balance at beginning of period	$	14		$	20		$	4	$	38
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income	(2		)	—			—		(2		)
Balance at end of period	$	10		$	20		$	4	$	34
Nine Months Ended September 30, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive loss before reclassifications	(5		)	—			—		(5		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—		(9		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Nine Months Ended September 30, 2014
Balance at beginning of period	$	4		$	20		$	4	$	28
Other comprehensive income before reclassifications	10			—			—		10
Reclassification adjustments from accumulated other comprehensive income	(4		)	—			—		(4		)
Balance at end of period	$	10		$	20		$	4	$	34

Schedule of reclassification adjustments from accumulated other comprehensive income

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	4		$	3		$	14		$	6
Income tax effect	(2		)	(1		)	(5		)	(2		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	2		$	2		$	9		$	4

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Fair Value Measurements (Details 5) - Non-recurring basis - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Assets measured at fair value on a non-recurring basis
Assets at fair value	[1]	$ 20		$ 20		$ 30
Total impairment charges		1	$ 2	1	$ 11
Real estate owned
Assets measured at fair value on a non-recurring basis
Impairment of Real Estate		1	3	3	13
Assets at fair value	[1]	12		12		19
Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Impairment of Real Estate		0	$ (1)	(2)	$ (2)
Assets at fair value	[1]	8		8		11
Level 3
Assets measured at fair value on a non-recurring basis
Assets at fair value	[1]	20		20		30
Level 3 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	[1]	12		12		19
Level 3 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	[1]	$ 8		$ 8		$ 11

[1] The fair value information presented in the table above is as of the date the fair value adjustment was recorded.

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014		Jun. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Interest income	$ 423	$ 432		$ 1,234	$ 1,226
Interest expense	171	172		500	526
Provision for finance receivable losses	82	93		247	274
Net interest income after provision for finance receivable losses	170	167		487	426
Other revenues	55	663		167	855
Other expenses	182	182		537	485
Income before provision for income taxes	43	648		117	796
Income before provision for income taxes attributable to non-controlling interests	31	23		93	23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	12	625		24	773
Assets	12,382	11,306	[1],[2]	12,382	11,306	[1],[2]		$ 11,097
Other assets	455			455				$ 474
New Accounting Pronouncement, Early Adoption, Effect
Segment Reporting Information [Line Items]
Other assets		29			29		$ 32
Operating segments | Consumer and Insurance
Segment Reporting Information [Line Items]
Interest income	289	234		810	663
Interest expense	43	39		119	121
Provision for finance receivable losses	62	55		170	148
Net interest income after provision for finance receivable losses	184	140		521	394
Other revenues	55	60		161	167
Other expenses	157	131		448	380
Income before provision for income taxes	82	69		234	181
Income before provision for income taxes attributable to non-controlling interests	0	0		0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	82	69		234	181
Assets	5,628	4,626	[1],[2]	5,628	4,626	[1],[2]
Operating segments | Acquisitions and Servicing
Segment Reporting Information [Line Items]
Interest income	113	84		356	84
Interest expense	22	12		67	12
Provision for finance receivable losses	19	18		69	18
Net interest income after provision for finance receivable losses	72	54		220	54
Other revenues	0	1		5	1
Other expenses	14	12		45	12
Income before provision for income taxes	58	43		180	43
Income before provision for income taxes attributable to non-controlling interests	31	23		93	23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	27	20		87	20
Assets	1,751	2,239	[1],[2]	1,751	2,239	[1],[2]
Operating segments | Real estate loans
Segment Reporting Information [Line Items]
Interest income	17	94		52	382
Interest expense	58	83		177	287
Provision for finance receivable losses	(4)	37		(7)	119
Net interest income after provision for finance receivable losses	(37)	(26)		(118)	(24)
Other revenues	(2)	284		4	196
Other expenses	8	36		24	77
Income before provision for income taxes	(47)	222		(138)	95
Income before provision for income taxes attributable to non-controlling interests	0	0		0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	(47)	222		(138)	95
Assets	3,551	3,720	[1],[2]	3,551	3,720	[1],[2]
Other
Segment Reporting Information [Line Items]
Interest income	1	4		6	13
Interest expense	16	2		48	6
Provision for finance receivable losses	0	2		1	7
Net interest income after provision for finance receivable losses	(15)	0		(43)	0
Other revenues	4	1		10	5
Other expenses	2	3		17	14
Income before provision for income taxes	(13)	(2)		(50)	(9)
Income before provision for income taxes attributable to non-controlling interests	0	0		0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	(13)	(2)		(50)	(9)
Assets	1,471	705	[1],[2]	1,471	705	[1],[2]
Eliminations
Segment Reporting Information [Line Items]
Interest income				0
Interest expense				(5)
Provision for finance receivable losses				0
Net interest income after provision for finance receivable losses				5
Other revenues				(5)
Other expenses				0
Income before provision for income taxes				0
Income before provision for income taxes attributable to non-controlling interests				0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation				0
Assets	0			0
Push-down Accounting Adjustments
Segment Reporting Information [Line Items]
Interest income	3	16		10	84
Interest expense	32	36		94	100
Provision for finance receivable losses	5	(19)		14	(18)
Net interest income after provision for finance receivable losses	(34)	(1)		(98)	2
Other revenues	(2)	317		(8)	486
Other expenses	1	0		3	2
Income before provision for income taxes	(37)	316		(109)	486
Income before provision for income taxes attributable to non-controlling interests	0	0		0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	(37)	316		(109)	486
Assets	$ (19)	$ 16	[1],[2]	$ (19)	$ 16	[1],[2]

[1] As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of September 30, 2014.

[2] See Note 1 for further information on the correction of this prior period disclosure.

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Investment Securities (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment		$ 0	$ 0	$ 0	$ 0
Cost/ Amortized Cost	[1]	567,000,000		567,000,000		$ 582,000,000
Unrealized Gains	[1]	4,000,000		4,000,000		20,000,000
Unrealized Losses	[1]	(7,000,000)		(7,000,000)		(2,000,000)
Fair Value	[1]	564,000,000		564,000,000		600,000,000
Interest in a limited partnership		1,000,000		1,000,000		1,000,000
Available-for-sale Securities Pledged as Collateral						2,000,000
Bonds
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		550,000,000		550,000,000		574,000,000
Unrealized Gains		4,000,000		4,000,000		20,000,000
Unrealized Losses		(7,000,000)		(7,000,000)		(2,000,000)
Fair Value		547,000,000		547,000,000		592,000,000
U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		69,000,000		69,000,000		61,000,000
Unrealized Gains		0		0		3,000,000
Unrealized Losses		(1,000,000)		(1,000,000)		0
Fair Value		68,000,000		68,000,000		64,000,000
Obligations of states, municipalities, and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		83,000,000		83,000,000		99,000,000
Unrealized Gains		1,000,000		1,000,000		3,000,000
Unrealized Losses		0		0		0
Fair Value		84,000,000		84,000,000		102,000,000
Certificates of deposit and commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	[2]					1,000,000
Unrealized Gains	[2]					0
Unrealized Losses	[2]					0
Fair Value	[2]					1,000,000
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		248,000,000		248,000,000		256,000,000
Unrealized Gains		3,000,000		3,000,000		12,000,000
Unrealized Losses		(6,000,000)		(6,000,000)		(1,000,000)
Fair Value		245,000,000		245,000,000		267,000,000
Residential mortgage-backed securities (“RMBS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		79,000,000		79,000,000		71,000,000
Unrealized Gains		0		0		2,000,000
Unrealized Losses		0		0		0
Fair Value		79,000,000		79,000,000		73,000,000
Commercial mortgage-backed securities (“CMBS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		39,000,000		39,000,000		25,000,000
Unrealized Gains		0		0		0
Unrealized Losses		0		0		(1,000,000)
Fair Value		39,000,000		39,000,000		24,000,000
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		32,000,000		32,000,000		61,000,000
Unrealized Gains		0		0		0
Unrealized Losses		0		0		0
Fair Value		32,000,000		32,000,000		61,000,000
Preferred stock
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		16,000,000		16,000,000		7,000,000
Unrealized Gains		0		0		0
Unrealized Losses		0		0		0
Fair Value		16,000,000		16,000,000		7,000,000
Other long-term investments
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost		1,000,000		1,000,000		1,000,000
Unrealized Gains		0		0		0
Unrealized Losses		0		0		0
Fair Value		$ 1,000,000		$ 1,000,000		$ 1,000,000

[1] Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

[2] Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014, primarily to support bank lines of credit.

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Fair Value Measurements (Details 2)		Sep. 30, 2015 USD ($) bond	Dec. 31, 2014 USD ($) bond
Assets
Available-for-sale securities	[1]	$ 564,000,000	$ 600,000,000
Trading securities		1,177,000,000	2,321,000,000
Total investment securities		1,742,000,000	2,922,000,000
Transfer from Level 1 Assets to Level 2		0
Transfer from Level 2 Assets to Level 1		0
Transfer from Level 1 Liabilities to Level 2		0
Transfers from Level 2 Liabilities to Level 1		0
U.S. government and government sponsored entities
Assets
Available-for-sale securities		68,000,000	64,000,000
Trading securities		783,000,000	302,000,000
Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities		84,000,000	102,000,000
Trading securities		0	14,000,000
Certificates of deposit and commercial paper
Assets
Available-for-sale securities	[2]		1,000,000
Trading securities		0	238,000,000
Corporate debt
Assets
Available-for-sale securities		245,000,000	267,000,000
Trading securities		196,000,000	1,056,000,000
Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities		79,000,000	73,000,000
Trading securities		2,000,000	35,000,000
Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities		39,000,000	24,000,000
Trading securities		45,000,000	149,000,000
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities		32,000,000	61,000,000
Trading securities		151,000,000	507,000,000
Bonds
Assets
Available-for-sale securities		547,000,000	592,000,000
Preferred stock
Assets
Available-for-sale securities		16,000,000	7,000,000
Other long-term investments
Assets
Available-for-sale securities		1,000,000	1,000,000
Total Carried At Fair Value
Assets
Cash and cash equivalents		2,756,000,000	749,000,000
Not carried at fair value | Common Stock
Assets
Available-for-sale securities		1,000,000	1,000,000
Fair Value Measurements Using Level 1
Assets
Cash and cash equivalents		2,461,000,000	584,000,000
Fair Value Measurements Using Level 2
Assets
Cash and cash equivalents		295,000,000	165,000,000
Recurring basis | Total Carried At Fair Value
Assets
Cash equivalents in mutual funds		750,000,000	236,000,000
Cash and cash equivalents		295,000,000	165,000,000
Available-for-sale securities	[3]	564,000,000	600,000,000
Trading securities		1,177,000,000	2,321,000,000
Total investment securities		1,741,000,000	2,921,000,000
Restricted cash in mutual funds		252,000,000	207,000,000
Total		3,038,000,000	3,529,000,000
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities
Assets
Available-for-sale securities		68,000,000	64,000,000
Trading securities		783,000,000	302,000,000
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities		84,000,000	102,000,000
Trading securities			14,000,000
Recurring basis | Total Carried At Fair Value | Non-U.S. government and government sponsored entities
Assets
Trading securities			20,000,000
Recurring basis | Total Carried At Fair Value | Corporate debt
Assets
Available-for-sale securities		245,000,000	267,000,000
Trading securities		196,000,000	1,056,000,000
Recurring basis | Total Carried At Fair Value | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities		79,000,000	73,000,000
Trading securities		2,000,000	35,000,000
Recurring basis | Total Carried At Fair Value | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities		39,000,000	24,000,000
Trading securities		45,000,000	149,000,000
Recurring basis | Total Carried At Fair Value | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities		32,000,000	61,000,000
Trading securities		151,000,000	507,000,000
Recurring basis | Total Carried At Fair Value | Bonds
Assets
Available-for-sale securities		547,000,000	592,000,000
Recurring basis | Total Carried At Fair Value | Preferred stock
Assets
Available-for-sale securities		16,000,000	7,000,000
Recurring basis | Total Carried At Fair Value | Other long-term investments
Assets
Available-for-sale securities		1,000,000	1,000,000	[4]
Recurring basis | Fair Value Measurements Using Level 1
Assets
Cash equivalents in mutual funds		750,000,000	236,000,000
Total investment securities			0
Restricted cash in mutual funds		252,000,000	207,000,000
Total		1,002,000,000	443,000,000
Recurring basis | Fair Value Measurements Using Level 2
Assets
Cash equivalents in mutual funds		0
Cash and cash equivalents		295,000,000	165,000,000
Available-for-sale securities	[3]	553,000,000	592,000,000
Trading securities		1,177,000,000	2,321,000,000
Total investment securities		1,730,000,000	2,913,000,000
Restricted cash in mutual funds			0
Total		2,025,000,000	3,078,000,000
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities
Assets
Available-for-sale securities		68,000,000	64,000,000
Trading securities		783,000,000	302,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities		84,000,000	102,000,000
Trading securities			14,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Non-U.S. government and government sponsored entities
Assets
Trading securities			20,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt
Assets
Available-for-sale securities		245,000,000	263,000,000
Trading securities		196,000,000	1,056,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities		79,000,000	73,000,000
Trading securities		2,000,000	35,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities		39,000,000	21,000,000
Trading securities		45,000,000	149,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities		32,000,000	61,000,000
Trading securities		151,000,000	507,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Bonds
Assets
Available-for-sale securities		547,000,000	585,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stock
Assets
Available-for-sale securities		6,000,000	7,000,000
Recurring basis | Fair Value Measurements Using Level 3
Assets
Cash equivalents in mutual funds		0
Available-for-sale securities	[3]	11,000,000	8,000,000
Trading securities		0	0
Total investment securities		11,000,000	8,000,000
Restricted cash in mutual funds			0
Total		11,000,000	8,000,000
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt
Assets
Available-for-sale securities		0	4,000,000
Recurring basis | Fair Value Measurements Using Level 3 | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities		0	0
Trading securities		0
Recurring basis | Fair Value Measurements Using Level 3 | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities		0	3,000,000
Trading securities			0
Recurring basis | Fair Value Measurements Using Level 3 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Trading securities		0
Recurring basis | Fair Value Measurements Using Level 3 | Bonds
Assets
Available-for-sale securities		0	7,000,000
Recurring basis | Fair Value Measurements Using Level 3 | Preferred stock
Assets
Available-for-sale securities		10,000,000
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments
Assets
Available-for-sale securities	[4]	$ 1,000,000	1,000,000
Cash Equivalents [Member] | Recurring basis | Total Carried At Fair Value
Assets
Trading securities			238,000,000
Cash Equivalents [Member] | Recurring basis | Total Carried At Fair Value | Certificates of deposit and commercial paper
Assets
Available-for-sale securities			1,000,000
Cash Equivalents [Member] | Recurring basis | Fair Value Measurements Using Level 2
Assets
Trading securities			238,000,000
Cash Equivalents [Member] | Recurring basis | Fair Value Measurements Using Level 2 | Certificates of deposit and commercial paper
Assets
Available-for-sale securities			$ 1,000,000
Discounted Cash Flow Valuation Technique [Member] | Residential mortgage-backed securities (“RMBS”) | Recurring basis | Fair Value Measurements Using Level 3
Assets
Number of bonds | bond		1	1
Debt Instrument, Fair Value Disclosure		$ 1,000,000	$ 1,000,000
Discounted Cash Flow Valuation Technique [Member] | Mortgage Loan Securitizations | Recurring basis | Fair Value Measurements Using Level 3
Assets
Number of bonds | bond			1
Discounted Cash Flow Valuation Technique [Member] | Corporate debt | Recurring basis | Fair Value Measurements Using Level 3
Assets
Number of bonds | bond			1

[1] Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

[2] Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014, primarily to support bank lines of credit.

[3] Common stocks not carried at fair value totaled $1 million at September 30, 2015 and December 31, 2014 and, therefore, have been excluded from the table above.

[4] Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method.

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Fair Value Measurements (Details 3) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2015		Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014
Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		$ 1		$ 6			$ 15
Net gains (losses) included in: Other revenues		0		0			0
Net gains (losses) included in: Other comprehensive income (loss)		0		0			0
Purchases, sales, issues, settlements		10		0			(8)	[1]
Transfers into Level 3				0			0
Transfers out of Level 3		0		0			(1)	[2]
Balance at end of period		11		6	$ 11		6
Trading securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period							7
Net gains (losses) included in: Other revenues							0
Net gains (losses) included in: Other comprehensive income (loss)							0
Purchases, sales, issues, settlements	[1]						0
Transfers into Level 3	[3]						1
Transfers out of Level 3	[2]						(2)
Balance at end of period				6			6
Investment securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period				12	8		22
Net gains (losses) included in: Other revenues				0	0		0
Net gains (losses) included in: Other comprehensive income (loss)				0	0		0
Purchases, sales, issues, settlements				0	6	[4]	(8)	[1]
Transfers into Level 3				0	0
Transfers out of Level 3				0	(3)	[5]	(3)	[2]
Balance at end of period		11		12	11		12
Purchases					10
Settlements					(4)
Bonds | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period					7		14
Net gains (losses) included in: Other revenues					0		0
Net gains (losses) included in: Other comprehensive income (loss)					0		0
Purchases, sales, issues, settlements					(4)	[4]	(8)	[1]
Transfers into Level 3					0		0
Transfers out of Level 3					(3)	[5]	(1)	[2]
Balance at end of period		0		5	0		5
Corporate debt | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period				5	4		13
Net gains (losses) included in: Other revenues				0	0		0
Net gains (losses) included in: Other comprehensive income (loss)				0	0		0
Purchases, sales, issues, settlements				0	(4)	[4]	(8)	[1]
Transfers into Level 3				0	0		0
Transfers out of Level 3				0	0		0	[2]
Balance at end of period		0		5	0		5
Purchases					0
Settlements					(4)
Residential mortgage-backed securities (“RMBS”) | Trading securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period							0
Net gains (losses) included in: Other revenues							0
Net gains (losses) included in: Other comprehensive income (loss)							0
Purchases, sales, issues, settlements	[1]						0
Transfers into Level 3	[3]						1
Transfers out of Level 3	[2]						(1)
Balance at end of period				0			0
Commercial mortgage-backed securities (“CMBS”) | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period					3
Net gains (losses) included in: Other revenues					0
Net gains (losses) included in: Other comprehensive income (loss)					0
Purchases, sales, issues, settlements					0
Transfers into Level 3					0
Transfers out of Level 3	[5]				(3)
Balance at end of period		0			0
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period							1
Net gains (losses) included in: Other revenues							0
Net gains (losses) included in: Other comprehensive income (loss)							0
Purchases, sales, issues, settlements	[1]						0
Transfers into Level 3							0
Transfers out of Level 3	[2]						(1)
Balance at end of period				0			0
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Trading securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period				6			7
Net gains (losses) included in: Other revenues				0			0
Net gains (losses) included in: Other comprehensive income (loss)				0			0
Purchases, sales, issues, settlements				0			0	[1]
Transfers into Level 3				0			0	[3]
Transfers out of Level 3				0			(1)	[2]
Balance at end of period				6			6
Preferred stock | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		0			0
Net gains (losses) included in: Other revenues		0			0
Net gains (losses) included in: Other comprehensive income (loss)		0			0
Purchases, sales, issues, settlements		10	[6]		10	[4]
Transfers into Level 3		0			0
Transfers out of Level 3		0			0
Balance at end of period		10			10
Purchases					10
Settlements					0
Other long-term investments | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		1		1	1		1
Net gains (losses) included in: Other revenues		0		0	0		0
Net gains (losses) included in: Other comprehensive income (loss)		0		0	0		0
Purchases, sales, issues, settlements		0		0	0	[4]	0	[1]
Transfers into Level 3		0		0	0		0
Transfers out of Level 3		0		0	0		0	[2]
Balance at end of period		$ 1		$ 1	$ 1		1
Residential mortgage-backed securities (“RMBS”) | Investment securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfers into Level 3	[3]						$ 1

[1] “Purchases, sales, issues, and settlements” column consisted only of settlements.

[2] During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs.

[3] During the nine months ended September 30, 2014, we transferred $1 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs.

[4] The detail of purchases and settlements is presented in the table below:(dollars in millions) Purchases Settlements Total Nine Months Ended September 30, 2015 Investment securities: Available-for-sale securities: Bonds: Corporate debt $— $(4) $(4)Preferred stock 10 — 10Total $10 $(4) $6

[5] During the nine months ended September 30, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater observability of pricing inputs.

[6] Net gains (losses) included in: Purchases, sales, issues, settlements * Transfers intoLevel 3 Transfersout ofLevel 3 Balanceat end ofperiod Balance at beginningof period Other revenues Other comprehensiveincome (loss) (dollars in millions) Three Months Ended September 30, 2015 Investment securities: Available-for-sale securities: Preferred stock $— $— $— $10 $— $— $10Other long-term investments 1 — — — — — 1Total $1 $— $— $10 $— $— $11 *“Purchases, sales, issues, and settlements” column consisted only of purchases.

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Contingencies - Sales Recourse Obligations (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finance Receivables Reserve for Sales Recourse Obligations [Roll Forward]
Finance receivables reserve for sales recourse obligations, beginning balance		$ 18	$ 5	$ 24	$ 5
Recourse losses		0	0	(5)	0
Provision for recourse obligations, net of recoveries	[1]	0	8	(1)	8
Finance receivables reserve for sales recourse obligations, ending balance		$ 18	$ 13	$ 18	$ 13

[1] Reflects the elimination of the reserve associated with other prior sales of finance receivables.

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Business and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. 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 U.S. GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), 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. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

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Finance Receivables (Details 8) - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	[1]	$ 243	$ 229
TDR net finance receivables		241	228
Allowance for TDR finance receivable losses		41	36
TDR net finance receivables		147	137
Personal loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	[1],[2]	30	22
TDR net finance receivables	[2]	29	22
Allowance for TDR finance receivable losses	[2]	7	1
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	[1]	14	11
TDR net finance receivables		12	10
Allowance for TDR finance receivable losses		4	3
Real estate loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	[1],[2]	199	196
TDR net finance receivables	[2]	200	196
Allowance for TDR finance receivable losses	[2]	30	32
Consumer Loan Held for sale [Member]
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables		2	0
TDR net finance receivables		2	0
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables		92	91
TDR net finance receivables		92	91
Total Held for Sale
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables		94	91
TDR net finance receivables		$ 94	$ 91

[1] As defined earlier in this Note.

[2] TDR finance receivables held for sale included in the table above were as follows:(dollars in millions) Personal Loans Real EstateLoans Total September 30, 2015 TDR gross finance receivables $2 $92 $94TDR net finance receivables 2 92 94 December 31, 2014 TDR gross finance receivables $— $91 $91TDR net finance receivables — 91 91

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Recent Accounting Pronouncements - Debt Issuance Costs (Details) - USD ($) $ in Millions	Sep. 30, 2015		Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
New Accounting Pronouncement, Early Adoption [Line Items]
Other assets	$ 455			$ 474
Long-term debt	$ 9,555	[1]		8,356
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Other assets			$ 32		$ 29
Long-term debt				$ 29

[1] The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

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Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets
Note receivable from parent	$ 322	$ 251
Restricted cash and cash equivalents	270	218
Other assets:
Receivables from parent and affiliates	7	12
Fair Value Measurements Using Level 1
Assets
Cash and cash equivalents	2,461	584
Restricted cash and cash equivalents	270	218
Fair Value Measurements Using Level 2
Assets
Cash and cash equivalents	295	165
Investment securities	1,730	2,913
Note receivable from parent	322	251
Other assets:
Receivables from parent and affiliates	7	12
Receivables related to sales of real estate loans and related trust assets	3	67
Liabilities
Long-term debt	10,212	9,182
Payables to parent and affiliates	19	48
Fair Value Measurements Using Level 3
Assets
Investment securities	12	9
Net finance receivables, less allowance for finance receivable losses	6,667	6,949
Finance receivables held for sale	802	209
Other assets:
Commercial mortgage loans	71	78
Escrow advance receivable	10	8
Total Fair Value
Assets
Cash and cash equivalents	2,756	749
Investment securities	1,742	2,922
Net finance receivables, less allowance for finance receivable losses	6,667	6,949
Finance receivables held for sale	802	209
Note receivable from parent	322	251
Restricted cash and cash equivalents	270	218
Other assets:
Commercial mortgage loans	71	78
Escrow advance receivable	10	8
Receivables from parent and affiliates	7	12
Receivables related to sales of real estate loans and related trust assets	3	67
Liabilities
Long-term debt	10,212	9,182
Payables to parent and affiliates	19	48
Total Carrying Value
Assets
Cash and cash equivalents	2,756	749
Investment securities	1,742	2,922
Net finance receivables, less allowance for finance receivable losses	6,040	6,278
Finance receivables held for sale	797	205
Note receivable from parent	322	251
Restricted cash and cash equivalents	270	218
Other assets:
Commercial mortgage loans	71	85
Escrow advance receivable	10	8
Receivables from parent and affiliates	7	12
Receivables related to sales of real estate loans and related trust assets	9	79
Liabilities
Long-term debt	9,555	8,356
Payables to parent and affiliates	$ 19	$ 48

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Detail of Purchases, Sales, Issuances, and Settlements [Table Text Block] [Table Text Block]

The detail of purchases and settlements is presented in the table below:

(dollars in millions)	Purchases		Settlements			Total
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	—	$	(4	)	$	(4	)
Preferred stock	10		—			10
Total	$	10	$	(4	)	$	6

Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value

The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash and cash equivalents	$	2,461	$	295	$	—	$	2,756	$	2,756
Investment securities	—		1,730		12		1,742		1,742
Net finance receivables, less allowance for finance receivable losses	—		—		6,667		6,667		6,040
Finance receivables held for sale	—		—		802		802		797
Note receivable from parent	—		322		—		322		322
Restricted cash and cash equivalents	270		—		—		270		270
Other assets:
Commercial mortgage loans	—		—		71		71		71
Escrow advance receivable	—		—		10		10		10
Receivables from parent and affiliates	—		7		—		7		7
Receivables related to sales of real estate loans and related trust assets	—		3		—		3		9
Liabilities
Long-term debt	$	—	$	10,212	$	—	$	10,212	$	9,555
Payables to parent and affiliates	—		19		—		19		19
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,278
Finance receivables held for sale	—		—		209		209		205
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		12		—		12		12
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash equivalents in mutual funds	$	750	$	—	$	—	$	750
Cash equivalents in certificates of deposit and commercial paper	—		295		—		295
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		68		—		68
Obligations of states, municipalities, and political subdivisions	—		84		—		84
Corporate debt	—		245		—		245
RMBS	—		79		—		79
CMBS	—		39		—		39
CDO/ABS	—		32		—		32
Total bonds	—		547		—		547
Preferred stock	—		6		10		16
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		553		11		564
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		783		—		783
Corporate debt	—		196		—		196
RMBS	—		2		—		2
CMBS	—		45		—		45
CDO/ABS	—		151		—		151
Total trading securities	—		1,177		—		1,177
Total investment securities	—		1,730		11		1,741
Restricted cash in mutual funds	252		—		—		252
Total	$	1,002	$	2,025	$	11	$	3,038

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		592		8		600
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading securities	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method.

(b) Common stocks not carried at fair value totaled $1 million at September 30, 2015 and December 31, 2014 and, therefore, have been excluded from the table above.

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements *		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Preferred stock	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Other long-term investments	1		—		—		—		—		—		1
Total	$	1	$	—	$	—	$	10	$	—	$	—	$	11

* “Purchases, sales, issues, and settlements” column consisted only of purchases.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	5	$	—	$	—	$	—	$	—	$	—	$	5
Other long-term investments	1		—		—		—		—		—		1
Total available-for-sale securities	6		—		—		—		—		—		6
Trading securities:
Bonds:
CDO/ABS	6		—		—		—		—		—		6
Total	$	12	$	—	$	—	$	—	$	—	$	—	$	12

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into  Level 3		Transfers out of Level 3 (b)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Preferred stock	—		—		—		10			—		—			10
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	6		$	—	$	(3	)	$	11

(a) The detail of purchases and settlements is presented in the table below:

(dollars in millions)	Purchases		Settlements			Total
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	—	$	(4	)	$	(4	)
Preferred stock	10		—			10
Total	$	10	$	(4	)	$	6

(b) During the nine months ended September 30, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater observability of pricing inputs.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(8	)	$	—	$	—		$	5
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(8		)	—		(1		)	5
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(8		)	—		(1		)	6
Trading securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		—			—		(1		)	6
Total trading securities	7		—		—		—			1		(2		)	6
Total	$	22	$	—	$	—	$	(8	)	$	1	$	(3	)	$	12

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During the nine months ended September 30, 2014, we transferred $1 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs.

(c) During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs.

Quantitative information about Level 3 inputs for assets measured on a recurring basis

Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	743 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)
Preferred stock	Market approach	Historical cost Operating performance	N/A (c)	N/A (c)

(a) At September 30, 2015 and December 31, 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded

Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *
(dollars in millions)	Level 1		Level 2		Level 3		Total
September 30, 2015
Assets
Real estate owned	$	—	$	—	$	12	$	12
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	20	$	20
December 31, 2014
Assets
Real estate owned	$	—	$	—	$	19	$	19
Commercial mortgage loans	—		—		11		11
Total	$	—	$	—	$	30	$	30

* The fair value information presented in the table above is as of the date the fair value adjustment was recorded.

Schedule of net impairment charges recorded on assets measured at fair value on a non-recurring basis

Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows:

(dollars in millions)	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2015		2014			2015			2014
Assets
Real estate owned	$	1	$	3		$	3		$	13
Commercial mortgage loans	—		(1		)	(2		)	(2		)
Total	$	1	$	2		$	1		$	11

Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Real estate owned	Market approach	Third-party valuation	N/A*	N/A*
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A*	N/A*

* Not applicable.

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Finance Receivables (Details 10) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2015 USD ($) account		Sep. 30, 2014 USD ($) account	Sep. 30, 2015 USD ($) account		Sep. 30, 2014 USD ($) account
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 15		$ 35	$ 45		$ 222
Rate reduction		7		31	28		163
Other (b)	[1]	5		6	13		49
Post-modification TDR net finance receivables:		$ 12		$ 37	$ 41		$ 212
Number of TDR accounts | account		1,782		1,774	5,682		5,214
Personal loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment	[2]	$ 8		$ 5	$ 24		$ 11
Rate reduction	[2]	3		3	11		7
Other (b)	[1],[2]	3		2	9		4
Post-modification TDR net finance receivables:	[2]	$ 6		$ 5	$ 20		$ 11
Number of TDR accounts | account	[2]	1,545		1,125	4,860		2,678
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 1		$ 2	$ 5		$ 2
Rate reduction		1		2	5		2
Other (b)	[1]	0		0	0		0
Post-modification TDR net finance receivables:		$ 1		$ 2	$ 5		$ 2
Number of TDR accounts | account		142		246	550		246
Real estate loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment	[2]	$ 6		$ 28	$ 16		$ 209
Rate reduction	[2]	3		26	12		154
Other (b)	[1],[2]	2		4	4		45
Post-modification TDR net finance receivables:	[2]	$ 5		$ 30	$ 16		$ 199
Number of TDR accounts | account	[2]	95		403	272		2,290
Consumer Loan Held for sale [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 0	[3]	$ 0	$ 0	[3]	$ 0
Pre-modification TDR net finance receivables		1
Post-modification TDR net finance receivables:		$ 0	[3]	$ 0	$ 0	[3]	$ 0
Number of TDR accounts | account		50		0	50		0
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 1	[3]	$ 6	$ 4	[3]	$ 6
Post-modification TDR net finance receivables:		$ 2	[3]	$ 7	$ 5	[3]	$ 7
Number of TDR accounts | account		33		89	77		89
Total Held for Sale
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 1	[3]	$ 6	$ 4	[3]	$ 6
Post-modification TDR net finance receivables:		$ 2	[3]	$ 7	$ 5	[3]	$ 7
Number of TDR accounts | account		83		89	127		89

[1] (b)“Other” modifications include extension of term and forgiveness of principal or interest.

[2] TDR finance receivables held for sale included in the table above were as follows:(dollars in millions) Personal Loans Real EstateLoans Total Three Months Ended September 30, 2015 Pre-modification TDR net finance receivables * $— $1 $1Post-modification TDR net finance receivables * $— $2 $2Number of TDR accounts 50 33 83 Three Months Ended September 30, 2014 Pre-modification TDR net finance receivables $— $6 $6Post-modification TDR net finance receivables $— $7 $7Number of TDR accounts — 89 89 Nine Months Ended September 30, 2015 Pre-modification TDR net finance receivables * $— $4 $4Post-modification TDR net finance receivables * $— $5 $5Number of TDR accounts 50 77 127 Nine Months Ended September 30, 2014 Pre-modification TDR net finance receivables $— $6 $6Post-modification TDR net finance receivables $— $7 $7Number of TDR accounts — 89 89 *Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above.

[3] Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above.

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ (7)	$ 38	$ 3	$ 28
Other comprehensive loss before reclassifications	(2)	(2)	(5)	10
Reclassification adjustments from accumulated other comprehensive income (loss)	(2)	(2)	(9)	(4)
Balance at end of period	(11)	34	(11)	34
Unrealized Gains Investment Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	2	14	12	4
Other comprehensive loss before reclassifications	(2)	(2)	(5)	10
Reclassification adjustments from accumulated other comprehensive income (loss)	(2)	(2)	(9)	(4)
Balance at end of period	(2)	10	(2)	10
Retirement Plan Liabilities Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(13)	20	(13)	20
Balance at end of period	(13)	20	(13)	20
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	4	4	4	4
Other comprehensive loss before reclassifications	0	0	0	0
Balance at end of period	$ 4	$ 4	$ 4	$ 4

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Investment Securities (Details 5) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Trading securities
Trading securities	$ 1,177		$ 1,177		$ 2,321
Net unrealized and realized gains (losses) on trading securities
Net unrealized gains (losses) on trading securities held at period end	(1)	$ (2)	3	$ (1)
Net realized losses on trading securities sold or redeemed	(1)	0	(2)	0
Total	(2)	$ (2)	1	$ (1)
U.S. government and government sponsored entities
Trading securities
Trading securities	783		783		302
Obligations of states, municipalities, and political subdivisions
Trading securities
Trading securities	0		0		14
Certificates of deposit and commercial paper
Trading securities
Trading securities	0		0		238
Non-U.S. government and government sponsored entities
Trading securities
Trading securities	0		0		20
Corporate debt
Trading securities
Trading securities	196		196		1,056
Residential mortgage-backed securities (“RMBS”)
Trading securities
Trading securities	2		2		35
Commercial mortgage-backed securities (“CMBS”)
Trading securities
Trading securities	45		45		149
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Trading securities
Trading securities	$ 151		$ 151		$ 507

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Finance Receivables (Details 5) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Performing and nonperforming net finance receivables by type
Net finance receivables due	$ 6,231	$ 6,452
Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	3,990	3,800
SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	1,667	1,979
Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	547	625
Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	27	48
Performing
Performing and nonperforming net finance receivables by type
Net finance receivables due	6,084	6,293
Performing | Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	3,900	3,723
Performing | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	1,631	1,928
Performing | Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	526	595
Performing | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	27	47
Nonperforming
Performing and nonperforming net finance receivables by type
Net finance receivables due	147	159
Nonperforming | Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	90	77
Nonperforming | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	36	51
Nonperforming | Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	21	30
Nonperforming | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	$ 0	$ 1

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Significant Transactions

9 Months Ended

Sep. 30, 2015

Significant Transactions [Abstract]

Significant Transactions

Significant Transactions

SHI’S PENDING ACQUISITION OF ONEMAIN FINANCIAL

On March 2, 2015, SHI entered into a Stock Purchase Agreement with CitiFinancial Credit Company to acquire OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.) (“OneMain”), for an aggregate purchase price of $4.25 billion, which we refer to in this report as the “Proposed Acquisition”. There can be no assurance that the Proposed Acquisition will close, or, if it does, when the actual closing will occur. SHI continues to evaluate its plans regarding the integration of OneMain with its remaining businesses including us.

SHI’S EQUITY OFFERING

On May 4, 2015, SHI completed an offering of 27,864,525 shares of its common stock, consisting of 19,417,476 shares of common stock offered by SHI and 8,447,049 shares of common stock offered by the Initial Stockholder. SHI’s net proceeds from this sale were approximately $976 million, after deducting the underwriting discounts and commissions and additional offering-related expenses totaling $24 million. SHI intends to use the net proceeds of the offering, together with cash on hand, the proceeds from the sale of investment securities, and other funding options, to fund the Proposed Acquisition and/or for general corporate purposes, which may include debt repurchases and repayments, capital expenditures and other possible acquisitions.

In connection with SHI’s initial public offering in October 2013, certain executives of Springleaf received a grant of incentive units in the Initial Stockholder. These incentive units are subject to their continued employment with the Company and provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of SHI’s common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with Accounting Standards Codification Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in the second quarter of 2015 related to the incentive units.

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Investment Securities Narrative (Details) - USD ($)		Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss		$ 0	$ 0
Available-for-sale securities	[1]	564,000,000	600,000,000
Insurance Regulatory Authorities Bonds on Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities		$ 11,000,000	$ 12,000,000

[1] Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

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Finance Receivables Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finance Receivables
Ownership percentage in joint venture	47.00%
Net finance receivables	$ 6,231,000,000	$ 6,452,000,000
Loans receivable held for sale	797,000,000	205,000,000
Commitments to lend additional funds	0
Consolidated VIEs
Finance Receivables
Loans receivable held for sale	484,000,000	0
Personal loans
Finance Receivables
Net finance receivables	3,990,000,000	3,800,000,000
Loans receivable held for sale	608,000,000
Personal loans | Consumer Loan Securitizations | Consolidated VIEs
Finance Receivables
Net finance receivables	2,096,000,000	1,853,000,000
Real estate loans
Finance Receivables
Net finance receivables	547,000,000	625,000,000
SpringCastle Portfolio
Finance Receivables
Net finance receivables	1,667,000,000	1,979,000,000
SpringCastle Portfolio | Mortgage Loan Securitizations | Consolidated VIEs
Finance Receivables
Net finance receivables	1,667,000,000	1,979,000,000
Retail Sales Finance
Finance Receivables
Net finance receivables	$ 27,000,000	$ 48,000,000
Revolving Retail
Finance Receivables
Accrual of finance charges, past due period	180 days
Real estate loans secured by first mortgages
Finance Receivables
Net finance receivables, percent of finance receivables outstanding	38.00%
Real estate loans secured by first mortgages | Real estate loans
Finance Receivables
Net finance receivables	$ 209,000,000
Real estate loans secured by second mortgages
Finance Receivables
Net finance receivables, percent of finance receivables outstanding	62.00%
Real estate loans secured by second mortgages | Real estate loans
Finance Receivables
Net finance receivables	$ 338,000,000
Corporate Joint Venture
Finance Receivables
Ownership percentage in joint venture	47.00%
Minimum | Personal loans
Finance Receivables
Finance receivables original term	2 years
Maximum | Personal loans
Finance Receivables
Finance receivables original term	5 years
Maximum | Real estate loans
Finance Receivables
Finance receivables original term	360 months
Maximum | Retail Sales Finance
Finance Receivables
Finance receivables original term	60 months
Titled personal property | Personal loans
Finance Receivables
Collateral for secured borrowings	$ 2,200,000,000
Collateral for secured borrowings, percent of finance receivables	56.00%
Consumer household goods or other items of personal property | Personal loans
Finance Receivables
Collateral for secured borrowings	$ 1,800,000,000
Collateral for secured borrowings, percent of finance receivables	44.00%

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Allowance for Finance Receivable Losses (Tables)

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable, Allowance [Abstract]

Schedule of changes in the allowance for finance receivable losses by finance receivable type

Changes in the allowance for finance receivable losses by finance receivable type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio			Real Estate Loans			Retail Sales Finance			Consolidated Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	139		$	3		$	35		$	1		$	178
Provision for finance receivable losses	60			20			2			—			82
Charge-offs	(57		)	(22		)	(4		)	—			(83		)
Recoveries	10			3			2			—			15
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Three Months Ended September 30, 2014
Balance at beginning of period	$	106		$	—		$	259		$	1		$	366
Provision for finance receivable losses	58			18			16			1			93
Charge-offs	(48		)	(20		)	(13		)	(1		)	(82		)
Recoveries	7			2			—			—			9
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(225		)	—			(225		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162
Nine Months Ended September 30, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	170			70			6			1			247
Charge-offs	(176		)	(78		)	(15		)	(2		)	(271		)
Recoveries	28			9			4			1			42
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Nine Months Ended September 30, 2014
Balance at beginning of period	$	94		$	—		$	236		$	2		$	332
Provision for finance receivable losses	150			18			103			3			274
Charge-offs	(139		)	(20		)	(67		)	(4		)	(230		)
Recoveries (c)	18			2			5			—			25
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(240		)	—			(240		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162

(a) During the three and nine months ended September 30, 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(c) Recoveries during the nine months ended September 30, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March of 2014.

Schedule of carrying value charged-off for purchased credit impaired loans

The carrying value charged-off for purchased credit impaired loans was as follows:

(dollars in millions)	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	5	$	17	$	5
FA Loans gross charge-offs *	—		2		1		15

* Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status.

Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method

The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	144	$	—	$	—	$	1	$	145
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—		—		5		—		5
Individually evaluated for impairment (TDR finance receivables)	7		4		30		—		41
Total	$	151	$	4	$	35	$	1	$	191
Finance receivables:
Collectively evaluated for impairment	$	3,963	$	1,404	$	410	$	27	$	5,804
Purchased credit impaired finance receivables	—		251		29		—		280
TDR finance receivables	27		12		108		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129	$	—	$	3	$	1	$	133
Purchased credit impaired finance receivables	—		—		5		—		5
TDR finance receivables	1		3		32		—		36
Total	$	130	$	3	$	40	$	1	$	174
Finance receivables:
Collectively evaluated for impairment	$	3,778	$	1,629	$	490	$	48	$	5,945
Purchased credit impaired finance receivables	—		340		30		—		370
TDR finance receivables	22		10		105		—		137
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

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Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2015

Financing Receivable, Impaired [Line Items]

Schedule of components of net finance receivables by type

Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
September 30, 2015
Gross receivables *	$	4,694		$	1,635	$	543		$	30		$	6,902
Unearned finance charges and points and fees	(802		)	—		—			(3		)	(805		)
Accrued finance charges	56			32		4			—			92
Deferred origination costs	42			—		—			—			42
Total	$	3,990		$	1,667	$	547		$	27		$	6,231
December 31, 2014
Gross receivables *	$	4,462		$	1,941	$	621		$	52		$	7,076
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	1,979	$	625		$	48		$	6,452

* Gross receivables are defined as follows:

• finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• finance receivables originated subsequent to the Fortress Acquisition (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Schedule of unused credit lines extended to customers by the Company

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Personal loans	$	2	$	1
SpringCastle Portfolio	366		354
Real estate loans	31		31
Total	$	399	$	386

Summary of net finance receivables by type and by days delinquent

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Net finance receivables:
60-89 days past due	$	47	$	24	$	16	$	1	$	88
90-119 days past due	36		15		4		—		55
120-149 days past due	29		11		3		—		43
150-179 days past due	23		9		2		—		34
180 days or more past due	2		1		12		—		15
Total delinquent finance receivables	137		60		37		1		235
Current	3,784		1,562		497		25		5,868
30-59 days past due	69		45		13		1		128
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Net finance receivables:
60-89 days past due	$	36	$	31	$	12	$	1	$	80
90-119 days past due	30		19		9		—		58
120-149 days past due	24		16		5		1		46
150-179 days past due	21		14		4		—		39
180 days or more past due	2		2		12		—		16
Total delinquent finance receivables	113		82		42		2		239
Current	3,632		1,839		565		45		6,081
30-59 days past due	55		58		18		1		132
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

Schedule of performing and nonperforming net finance receivables by type

Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Performing	$	3,900	$	1,631	$	526	$	27	$	6,084
Nonperforming	90		36		21		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Performing	$	3,723	$	1,928	$	595	$	47	$	6,293
Nonperforming	77		51		30		1		159
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

Schedule of information regarding purchased credit impaired finance receivables

Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	FA Loans
September 30, 2015
Carrying amount, net of allowance	$	62
Outstanding balance	91
December 31, 2014
Carrying amount, net of allowance	$	68
Outstanding balance	99

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
September 30, 2015
Carrying amount, net of allowance	$	251	$	86	$	337
Outstanding balance	515		139		654
Allowance for purchased credit impaired finance receivable losses	—		5		5
December 31, 2014
Carrying amount, net of allowance	$	340	$	93	$	433
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		5		5

* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	FA Loans
September 30, 2015
Carrying amount, net of allowance	$	62
Outstanding balance	91
December 31, 2014
Carrying amount, net of allowance	$	68
Outstanding balance	99

Schedule of changes in accretable yield for purchased credit impaired finance receivables

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	474		$	13		$	487
Accretion (a)	(20		)	(3		)	(23		)
Disposals of finance receivables (b)	(7		)	—			(7		)
Balance at end of period	$	447		$	10		$	457
Three Months Ended September 30, 2014
Balance at beginning of period	$	—		$	623		$	623
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(20		)	(31		)
Transfers due to finance receivables sold	—			(559		)	(559		)
Disposals of finance receivables (b)	(3		)	(4		)	(7		)
Balance at end of period	$	246		$	40		$	286
Nine Months Ended September 30, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(66		)	(8		)	(74		)
Disposals of finance receivables (b)	(28		)	(1		)	(29		)
Balance at end of period	$	447		$	10		$	457
Nine Months Ended September 30, 2014
Balance at beginning of period	$	—		$	767		$	767
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(75		)	(86		)
Transfers due to finance receivables sold	—			(637		)	(637		)
Disposals of finance receivables (b)	(3		)	(15		)	(18		)
Balance at end of period	$	246		$	40		$	286

(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Accretion	$	2	$	11	$	5	$	11

(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period.

Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Accretion	$	2	$	11	$	5	$	11

Schedule of information regarding troubled debt restructured ("TDR") finance receivables

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	342		26		9		377
Three Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	2	$	2
Number of TDR accounts	42		11		54		107
Nine Months Ended September 30, 2015
TDR net finance receivables (b)	$	3	$	1	$	2	$	6
Number of TDR accounts	855		122		35		1,012
Nine Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	31	$	31
Number of TDR accounts	74		11		488		573

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	1
Three Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30
Nine Months Ended September 30, 2015
TDR net finance receivables	$	1
Number of TDR accounts	14
Nine Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30

* TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

(c) TDR personal loans and SpringCastle Portfolio loans for the three and nine months ended September 30, 2014 and TDR SpringCastle Portfolio loans for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR average net receivables	$	92
TDR finance charges recognized	2
Three Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3
Nine Months Ended September 30, 2015
TDR average net receivables	$	91
TDR finance charges recognized	4
Nine Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
September 30, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	2	$	2
Number of TDR accounts	50		33		83
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	4	$	4
Post-modification TDR net finance receivables *	$	—	$	5	$	5
Number of TDR accounts	50		77		127
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89

* Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	1
Three Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30
Nine Months Ended September 30, 2015
TDR net finance receivables	$	1
Number of TDR accounts	14
Nine Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30

* TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
September 30, 2015
TDR gross finance receivables (b)	$	30	$	14	$	199	$	243
TDR net finance receivables	29		12		200		241
Allowance for TDR finance receivable losses	7		4		30		41
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
September 30, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables

TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR average net receivables	$	30	$	12	$	199	$	241
TDR finance charges recognized	—		1		2		3
Three Months Ended September 30, 2014
TDR average net receivables (b)	$	17	$	8	$	797	$	822
TDR finance charges recognized	—		—		10		10
Nine Months Ended September 30, 2015
TDR average net receivables	$	28	$	12	$	197	$	237
TDR finance charges recognized	2		1		8		11
Nine Months Ended September 30, 2014
TDR average net receivables (b)	$	15	$	8	$	1,187	$	1,210
TDR finance charges recognized	1		—		45		46

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR average net receivables	$	92
TDR finance charges recognized	2
Three Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3
Nine Months Ended September 30, 2015
TDR average net receivables	$	91
TDR finance charges recognized	4
Nine Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3

(b) TDR SpringCastle Portfolio loans average net receivables for the three and nine months ended September 30, 2014 reflect a two-month average since the SAC Capital Contribution occurred on July 31, 2014.

Schedule of information regarding new volume of the TDR finance receivables

Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	8	$	1	$	6	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	1	$	3	$	7
Other (b)	3		—		2		5
Total post-modification TDR net finance receivables	$	6	$	1	$	5	$	12
Number of TDR accounts	1,545		142		95		1,782
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	5	$	2	$	28	$	35
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	2	$	26	$	31
Other (b)	2		—		4		6
Total post-modification TDR net finance receivables	$	5	$	2	$	30	$	37
Number of TDR accounts	1,125		246		403		1,774
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	24	$	5	$	16	$	45
Post-modification TDR net finance receivables:
Rate reduction	$	11	$	5	$	12	$	28
Other (b)	9		—		4		13
Total post-modification TDR net finance receivables	$	20	$	5	$	16	$	41
Number of TDR accounts	4,860		550		272		5,682
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	11	$	2	$	209	$	222
Post-modification TDR net finance receivables:
Rate reduction	$	7	$	2	$	154	$	163
Other (b)	4		—		45		49
Total post-modification TDR net finance receivables	$	11	$	2	$	199	$	212
Number of TDR accounts	2,678		246		2,290		5,214

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	2	$	2
Number of TDR accounts	50		33		83
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	4	$	4
Post-modification TDR net finance receivables *	$	—	$	5	$	5
Number of TDR accounts	50		77		127
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89

* Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above.

Schedule of net 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 TDR finance receivables to be considered nonperforming

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	342		26		9		377
Three Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	2	$	2
Number of TDR accounts	42		11		54		107
Nine Months Ended September 30, 2015
TDR net finance receivables (b)	$	3	$	1	$	2	$	6
Number of TDR accounts	855		122		35		1,012
Nine Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	31	$	31
Number of TDR accounts	74		11		488		573

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	1
Three Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30
Nine Months Ended September 30, 2015
TDR net finance receivables	$	1
Number of TDR accounts	14
Nine Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30

* TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

(c) TDR personal loans and SpringCastle Portfolio loans for the three and nine months ended September 30, 2014 and TDR SpringCastle Portfolio loans for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

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Finance Receivables Held for Sale (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Finance Receivables
Loans receivable held for sale	$ 797		$ 797		$ 205
Finance receivables held for sale originated as held for investment	4	$ 47	13	$ 54
Carrying value of finance receivables transferred from held for investment to held for sale		5,300		6,600
Amount of loans sold		4,700		6,000
Net gain on sales of real estate loans and related trust assets	0	617	0	707
Personal loans
Finance Receivables
Loans receivable held for sale	608		608
Carrying value of finance receivables transferred from held for investment to held for sale	608		608
Real Estate Loan
Finance Receivables
Loans receivable held for sale	$ 189		$ 189
Carrying value of finance receivables transferred from held for investment to held for sale		$ 5,300		$ 6,600

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Finance Receivables (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2014
Finance Receivables
Gross receivables	[1]	$ 6,902			$ 7,076
Unearned finance charges and points and fees		(805)			(770)
Accrued finance charges		92			102
Deferred origination costs		42			44
Net finance receivables		6,231			6,452
Personal loans
Finance Receivables
Pre-modification TDR net finance receivables				$ 1
Gross receivables	[1]	4,694			4,462
Unearned finance charges and points and fees		(802)			(764)
Accrued finance charges		56			58
Deferred origination costs		42			44
Net finance receivables		3,990			3,800
SpringCastle Portfolio
Finance Receivables
Pre-modification TDR net finance receivables		1	$ 1	$ 1
Gross receivables	[1]	1,635			1,941
Unearned finance charges and points and fees		0			0
Accrued finance charges		32			38
Deferred origination costs		0			0
Net finance receivables		1,667			1,979
Real estate loans
Finance Receivables
Gross receivables	[1]	543			621
Unearned finance charges and points and fees		0			(1)
Accrued finance charges		4			5
Deferred origination costs		0			0
Net finance receivables		547			625
Retail Sales Finance
Finance Receivables
Gross receivables	[1]	30			52
Unearned finance charges and points and fees		(3)			(5)
Accrued finance charges		0			1
Deferred origination costs		0			0
Net finance receivables		27			$ 48
Consumer Loan Held for sale [Member]
Finance Receivables
Pre-modification TDR net finance receivables		$ 1

[1] Gross receivables are defined as follows:•finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;•finance receivables originated subsequent to the Fortress Acquisition (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and•purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investment securities

Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	69	$	—	$	(1	)	$	68
Obligations of states, municipalities, and political subdivisions	83		1		—			84
Corporate debt	248		3		(6		)	245
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	79		—		—			79
Commercial mortgage-backed securities (“CMBS”)	39		—		—			39
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	32		—		—			32
Total bonds	550		4		(7		)	547
Preferred stock	16		—		—			16
Other long-term investments	1		—		—			1
Total (a)	$	567	$	4	$	(7	)	$	564
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014, primarily to support bank lines of credit.

Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *		Fair Value		Unrealized Losses
September 30, 2015
Bonds:
U.S. government and government sponsored entities	$	51	$	(1	)	$	—	$	—	$	51	$	(1	)
Obligations of states, municipalities, and political subdivisions	15		—			11		—		26		—
Corporate debt	107		(6		)	14		—		121		(6		)
RMBS	8		—			—		—		8		—
CMBS	19		—			7		—		26		—
CDO/ABS	16		—			—		—		16		—
Total bonds	216		(7		)	32		—		248		(7		)
Preferred stock	6		—			—		—		6		—
Other long-term investments	1		—			—		—		1		—
Total	$	223	$	(7	)	$	32	$	—	$	255	$	(7	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—	$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—		28		—
Corporate debt	36		(1		)	6		—		42		(1		)
RMBS	9		—			—		—		9		—
CMBS	16		(1		)	2		—		18		(1		)
CDO/ABS	46		—			—		—		46		—
Total bonds	134		(2		)	10		—		144		(2		)
Preferred stock	6		—			—		—		6		—
Total	$	140	$	(2	)	$	10	$	—	$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

Schedule of contractual maturities of fixed-maturity available-for-sale securities

Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	72	$	72
Due after 1 year through 5 years	150		150
Due after 5 years through 10 years	57		57
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	150		150
Total	$	547	$	550

Schedule of fair value of trading securities by type

The fair value of trading securities by type was as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Fixed maturity trading securities:
Bonds:
U.S. government and government sponsored entities	$	783	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	196		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	2		35
CMBS	45		149
CDO/ABS	151		507
Total	$	1,177	$	2,321

Available-for-sale securities

Investment securities

Schedule of realized gains, realized losses, and net realized gains due to sale or redemption of fair values of available-for-sale securities

The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015			2014
Fair value	$	168	$	105	$	372		$	203
Realized gains	$	4	$	5	$	15		$	7
Realized losses	—		—		(1		)	—
Net realized gains	$	4	$	5	$	14		$	7

Trading securities

Investment securities

Schedule of net unrealized and realized gains (losses) on trading securities

The net unrealized and realized gains (losses) on our trading securities, which we report in investment revenues, were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net unrealized gains (losses) on trading securities held at period end	$	(1	)	$	(2	)	$	3		$	(1	)
Net realized losses on trading securities sold or redeemed	(1		)	—			(2		)	—
Total	$	(2	)	$	(2	)	$	1		$	(1	)

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Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of principal maturities of long-term debt by type of debt

Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2015 were as follows:

(dollars in millions)	Medium Term Notes			Securitizations			Junior Subordinated Debt			Total
Interest rates (a)	5.25%-8.25%			1.87%-6.82%			6.00		%
Fourth quarter 2015	$	750		$	—		$	—		$	750
First quarter 2016	—			—			—			—
Second quarter 2016	—			—			—			—
Third quarter 2016	375			—			—			375
Remainder of 2016	—			—			—			—
2017	1,902			—			—			1,902
2018	—			—			—			—
2019	700			—			—			700
2020-2067	1,250			—			350			1,600
Securitizations (b)	—			4,784			—			4,784
Total principal maturities	$	4,977		$	4,784		$	350		$	10,111
Total carrying amount (c)	$	4,613		$	4,771		$	171		$	9,555
Debt issuance costs (d)	$	(13	)	$	(17	)	$	—		$	(30	)

(a) The interest rates shown are the range of contractual rates in effect at September 30, 2015.

(b) Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt.

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Business and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Business and Basis of Presentation

Business and Basis of Presentation

Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). SFI is a wholly owned subsidiary of Springleaf Holdings, Inc. (“SHI”).

At September 30, 2015, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of SHI’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”) and AIG Capital Corporation, a subsidiary of American International Group, Inc. (“AIG”). At September 30, 2015, the economic interests of Fortress and AIG were 55% and 3%, respectively.

SFC is a financial services holding company with subsidiaries engaged in the consumer finance and insurance businesses.

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. 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 U.S. GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), 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. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 3 for further information on the adoption of this ASU.

Prior Period Revisions

During the fourth quarter of 2014, we discovered that our personal loans and loans included in the SpringCastle Portfolio deemed to be troubled debt restructured (“TDR”) finance receivables were previously incorrectly excluded in the related disclosures of our finance receivables and allowance for finance receivable losses. The applicable prior period amounts have been corrected in Notes 4 and 5 in this report.

During the fourth quarter of 2014, we discovered that our restricted cash and cash equivalents were overstated and other assets were understated by $15 million in our condensed consolidated balance sheets at September 30, 2014, as we incorrectly included escrow advances on our real estate loans held for sale in cash and cash equivalents. This error also resulted in our cash flows due to a decrease in restricted cash and cash equivalents not reinvested to be overstated and cash flows due to an increase in other assets and other liabilities to be overstated within the operating activities section of our condensed consolidated statements of cash flows for the nine months ended September 30, 2014. The affected amounts for the 2014 period have been corrected in our condensed consolidated statements of cash flows in this report. This classification error was not material to any previously issued financial statements.

During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million and decreased provision for income taxes by $3 million.

During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We have evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements, however, we have corrected the previously disclosed periods in Note 16 of this report. We will also correct the prior period segment disclosures presented in our applicable quarterly and annual reports as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 17 of this report. This presentation error was not material to any previously issued financial statements.

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2015

Variable Interest Entities

Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Assets
Finance receivables:
Personal loans	$	2,096	$	1,853
SpringCastle Portfolio	1,667		1,979
Allowance for finance receivable losses	131		72
Finance receivables held for sale	484		—
Restricted cash and cash equivalents	256		210
Liabilities
Long-term debt *	$	4,771	$	3,630

* As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

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Significant Transactions OneMain Financial Pending Acquisition (Details) $ in Millions	Mar. 02, 2015 USD ($)
OneMain Financial Holdings, Inc.
Business Acquisition [Line Items]
Aggregate purchase price	$ 4,250

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Finance Receivables (Details 11) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2015 USD ($) account		Sep. 30, 2014 USD ($) account		Sep. 30, 2015 USD ($) account		Sep. 30, 2014 USD ($) account
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	[1]	$ 2	[2]	$ 2	[2]	$ 6		$ 31	[2]
Number of TDR accounts | account		377		107		1,012		573
Personal loans
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	[1],[3]	$ 1	[2]	$ 0	[2]	$ 3		$ 0	[2]
Number of TDR accounts | account		342	[1]	42	[3]	855	[3]	74	[3]
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	[1]	$ 0	[2]	$ 0	[2]	$ 1		$ 0	[2]
Number of TDR accounts | account		26		11		122		11
Real estate loans
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	[1]	$ 1	[2],[3]	$ 2	[2]	$ 2	[3]	$ 31	[2],[3]
Number of TDR accounts | account	[3]	9		54		35		488
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
TDR net finance receivables		$ 0	[4]	$ 2		$ 1		$ 2
Number of TDR accounts | account		1		30		14		30
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables		$ 1
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables		$ 1		$ 1				$ 1
Personal loans
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables								$ 1

[1] Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

[2] TDR personal loans and SpringCastle Portfolio loans for the three and nine months ended September 30, 2014 and TDR SpringCastle Portfolio loans for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

[3] (a)TDR finance receivables held for sale included in the table above were as follows:(dollars in millions) Real EstateLoans Three Months Ended September 30, 2015 TDR net finance receivables * $—Number of TDR accounts 1 Three Months Ended September 30, 2014 TDR net finance receivables $2Number of TDR accounts 30 Nine Months Ended September 30, 2015 TDR net finance receivables $1Number of TDR accounts 14 Nine Months Ended September 30, 2014 TDR net finance receivables $2Number of TDR accounts 30 *TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

[4] TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

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Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension
Components of net periodic benefit cost:
Interest cost	$ 4	$ 3	$ 12	$ 11
Expected return on assets	(5)	(4)	(14)	(12)
Net periodic benefit cost	(1)	(1)	(2)	(1)
Other Postretirement Benefit Plan
Components of net periodic benefit cost:
Net periodic benefit cost	$ 1	$ 1	$ 1	$ 1

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2015		Dec. 31, 2014
Assets
Cash and cash equivalents	$ 2,756		$ 749
Investment securities	1,742		2,922
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $2.1 billion in 2015 and $1.9 billion in 2014)	3,990		3,800
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.7 billion in 2015 and $2.0 billion in 2014)	1,667		1,979
Real estate loans	547		625
Retail sales finance	27		48
Net finance receivables	6,231		6,452
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $131 million in 2015 and $72 million in 2014)	(191)		(174)
Net finance receivables, less allowance for finance receivable losses	6,040		6,278
Finance receivables held for sale	797		205
Note receivable from parent	322		251
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $256 million in 2015 and $210 million in 2014)	270		218
Other assets	455		474
Total assets	12,382		11,097
Liabilities and Shareholder's Equity
Long-term debt (includes debt of consolidated VIEs of $4.8 billion in 2015 and $3.6 billion in 2014)	9,555	[1]	8,356
Insurance claims and policyholder liabilities	467		446
Deferred and accrued taxes	146		159
Other liabilities	287		255
Total liabilities	$ 10,455		$ 9,216
Commitments and contingent liabilities
Shareholder's equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 shares issued and outstanding at September 30, 2015 and December 31, 2014	$ 5		$ 5
Additional paid-in capital	756		740
Accumulated other comprehensive income (loss)	(11)		3
Retained earnings	1,331		1,321
Springleaf Finance Corporation shareholder’s equity	2,081		2,069
Non-controlling interests	(154)		(188)
Total shareholder’s equity	1,927		1,881
Total liabilities and shareholder’s equity	$ 12,382		$ 11,097

[1] The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

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Finance Receivables (Details 3) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Finance Receivables
Unused credit lines	$ 399	$ 386
Personal loans
Finance Receivables
Unused credit lines	2	1
SpringCastle Portfolio
Finance Receivables
Unused credit lines	366	354
Real estate loans
Finance Receivables
Unused credit lines	$ 31	$ 31

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Springleaf Finance Corporation Shareholder’s Equity	Non-controlling Interests
Beginning Balance at Dec. 31, 2013	$ 1,328	$ 5	$ 422	$ 28	$ 873	$ 1,328
Common shares issued and outstanding
Non-cash incentive compensation from Initial Stockholder	0
Capital contributions from parent	22		22			22
Capital Contribution Of Capital Stock From Wholly Owned Subsidiary	690		295			295	$ 395
Share-based compensation expense, net of forfeitures	1		1			1
Distributions declared to joint venture partners	(9)						(9)
Available-for-sale securities	6			6		6
Net income	520				497	497	23
Ending Balance at Sep. 30, 2014	2,558	5	740	34	1,370	2,149	409
Beginning Balance at Dec. 31, 2014	1,881	5	740	3	1,321	2,069	(188)
Common shares issued and outstanding
Non-cash incentive compensation from Initial Stockholder	15		15			15
Share-based compensation expense, net of forfeitures	1		1			1
Distributions declared to joint venture partners	(59)						(59)
Available-for-sale securities	(14)			(14)		(14)
Net income	103				10	10	93
Ending Balance at Sep. 30, 2015	$ 1,927	$ 5	$ 756	$ (11)	$ 1,331	$ 2,081	$ (154)

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Investment Securities (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Available-for-sale securities sold or redeemed
Fair value	$ 168	$ 105	$ 372	$ 203
Realized gains	4	5	15	7
Realized losses	0	0	(1)	0
Net realized gains	$ 4	$ 5	$ 14	$ 7

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Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of components of net periodic benefit cost

The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Pension
Components of net periodic benefit cost:
Interest cost	$	4		$	3		$	12		$	11
Expected return on assets	(5		)	(4		)	(14		)	(12		)
Net periodic benefit cost	$	(1	)	$	(1	)	$	(2	)	$	(1	)

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Long-term Debt (Details) - USD ($)				9 Months Ended
		Dec. 30, 2013	Dec. 30, 2013	Sep. 30, 2015		Dec. 31, 2014	Dec. 03, 2014
Principal maturities of long-term debt by type of debt
Fourth quarter 2015				$ 750,000,000
First quarter 2016				0
Second quarter 2016				0
Third quarter 2016				375,000,000
Remainder of 2016				0
2017				1,902,000,000
2018				0
2019				700,000,000
2020-2067				1,600,000,000
Securitizations	[1]			4,784,000,000
Total principal maturities				10,111,000,000
Long-term debt				$ 9,555,000,000	[2]	$ 8,356,000,000
Medium Term Notes
Principal maturities of long-term debt by type of debt
Contractual interest rate, minimum (as a percent)	[3]			5.25%
Contractual interest rate, maximum (as a percent)	[3]			8.25%
Fourth quarter 2015				$ 750,000,000
First quarter 2016				0
Second quarter 2016				0
Third quarter 2016				375,000,000
Remainder of 2016				0
2017				1,902,000,000
2018				0
2019				700,000,000
2020-2067				1,250,000,000
Securitizations	[1]			0
Total principal maturities				4,977,000,000
Long-term debt	[2]			$ 4,613,000,000
Securitizations
Principal maturities of long-term debt by type of debt
Contractual interest rate, minimum (as a percent)	[3]			1.87%
Contractual interest rate, maximum (as a percent)	[3]			6.82%
Fourth quarter 2015				$ 0
First quarter 2016				0
Second quarter 2016				0
Third quarter 2016				0
Remainder of 2016				0
2017				0
2018				0
2019				0
2020-2067				0
Securitizations	[1]			4,784,000,000
Total principal maturities				4,784,000,000
Long-term debt	[2]			$ 4,771,000,000
Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)	[3]			6.00%
Fourth quarter 2015				$ 0
First quarter 2016				0
Second quarter 2016				0
Third quarter 2016				0
Remainder of 2016				0
2017				0
2018				0
2019				0
2020-2067				350,000,000
Securitizations	[1]			0
Total principal maturities				350,000,000
Long-term debt	[2]			171,000,000
Guaranty Agreements | Junior Subordinated Debt | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Face amount of each issuance of debt		$ 350,000,000	$ 350,000,000	350,000,000
Term of debt		60 years	60 years
Guaranty Agreements | Senior debt | Parent Company
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)							5.25%
Face amount of each issuance of debt				700,000,000			$ 700,000,000
Guaranty Agreements | Senior debt | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Face amount of each issuance of debt		$ 5,200,000,000	$ 5,200,000,000	5,000,000,000
Guaranty Agreements | 8.250% Senior Notes due 2023 | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)		8.25%	8.25%
Guaranty Agreements | 7.750% Senior Notes due 2021 | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)		7.75%	7.75%
Guaranty Agreements | 6.00% Senior Notes due 2020 | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)		6.00%	6.00%
Guaranty Agreements | Senior Notes 1999 Indenture | Springleaf Holding Inc.
Principal maturities of long-term debt by type of debt
Face amount of each issuance of debt				3,000,000,000
New Accounting Pronouncement, Early Adoption, Effect
Principal maturities of long-term debt by type of debt
Long-term debt						$ 29,000,000
Debt Issuance Cost	[4]			(30,000,000)
New Accounting Pronouncement, Early Adoption, Effect | Medium Term Notes
Principal maturities of long-term debt by type of debt
Debt Issuance Cost	[4]			(13,000,000)
New Accounting Pronouncement, Early Adoption, Effect | Securitizations
Principal maturities of long-term debt by type of debt
Debt Issuance Cost	[4]			(17,000,000)
New Accounting Pronouncement, Early Adoption, Effect | Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Debt Issuance Cost	[4]			$ 0

[1] Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations.

[2] The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

[3] The interest rates shown are the range of contractual rates in effect at September 30, 2015.

[4] As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt.

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Benefit Plans

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Benefit Plans

The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Pension
Components of net periodic benefit cost:
Interest cost	$	4		$	3		$	12		$	11
Expected return on assets	(5		)	(4		)	(14		)	(12		)
Net periodic benefit cost	$	(1	)	$	(1	)	$	(2	)	$	(1	)

The components of net periodic benefit cost with respect to our post retirement plan were less than $1 million for the three and nine months ended September 30, 2015 and 2014 and, therefore, were not included in the table above.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of information about the Company's segments as well as reconciliations to condensed consolidated financial statement amounts

The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2015
Interest income	$	289	$	113	$	17		$	1		$	3		$	423
Interest expense	43		22		58			16			32			171
Provision for finance receivable losses	62		19		(4		)	—			5			82
Net interest income (loss) after provision for finance receivable losses	184		72		(37		)	(15		)	(34		)	170
Other revenues	55		—		(2		)	4			(2		)	55
Other expenses	157		14		8			2			1			182
Income (loss) before provision for (benefit from) income taxes	82		58		(47		)	(13		)	(37		)	43
Income before provision for income taxes attributable to non-controlling interests	—		31		—			—			—			31
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	82	$	27	$	(47	)	$	(13	)	$	(37	)	$	12

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2014
Interest income	$	234	$	84	$	94		$	4		$	16		$	432
Interest expense	39		12		83			2			36			172
Provision for finance receivable losses	55		18		37			2			(19		)	93
Net interest income (loss) after provision for finance receivable losses	140		54		(26		)	—			(1		)	167
Other revenues	60		1		284			1			317			663
Other expenses	131		12		36			3			—			182
Income (loss) before provision for (benefit from) income taxes	69		43		222			(2		)	316			648
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	69	$	20	$	222		$	(2	)	$	316		$	625

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Eliminations			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2015
Interest income	$	810	$	356	$	52		$	6		$	—		$	10		$	1,234
Interest expense	119		67		177			48			(5		)	94			500
Provision for finance receivable losses	170		69		(7		)	1			—			14			247
Net interest income (loss) after provision for finance receivable losses	521		220		(118		)	(43		)	5			(98		)	487
Other revenues	161		5		4			10			(5		)	(8		)	167
Other expenses	448		45		24			17			—			3			537
Income (loss) before provision for (benefit from) income taxes	234		180		(138		)	(50		)	—			(109		)	117
Income before provision for income taxes attributable to non-controlling interests	—		93		—			—			—			—			93
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	234	$	87	$	(138	)	$	(50	)	$	—		$	(109	)	$	24
Assets	$	5,628	$	1,751	$	3,551		$	1,471		$	—		$	(19	)	$	12,382

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2014
Interest income	$	663	$	84	$	382		$	13		$	84		$	1,226
Interest expense	121		12		287			6			100			526
Provision for finance receivable losses	148		18		119			7			(18		)	274
Net interest income (loss) after provision for finance receivable losses	394		54		(24		)	—			2			426
Other revenues	167		1		196			5			486			855
Other expenses	380		12		77			14			2			485
Income (loss) before provision for (benefit from) income taxes	181		43		95			(9		)	486			796
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	181	$	20	$	95		$	(9	)	$	486		$	773
Assets (a) (b)	$	4,626	$	2,239	$	3,720		$	705		$	16		$	11,306

(a) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of September 30, 2014.

(b) See Note 1 for further information on the correction of this prior period disclosure.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions.

The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash and cash equivalents	$	2,461	$	295	$	—	$	2,756	$	2,756
Investment securities	—		1,730		12		1,742		1,742
Net finance receivables, less allowance for finance receivable losses	—		—		6,667		6,667		6,040
Finance receivables held for sale	—		—		802		802		797
Note receivable from parent	—		322		—		322		322
Restricted cash and cash equivalents	270		—		—		270		270
Other assets:
Commercial mortgage loans	—		—		71		71		71
Escrow advance receivable	—		—		10		10		10
Receivables from parent and affiliates	—		7		—		7		7
Receivables related to sales of real estate loans and related trust assets	—		3		—		3		9
Liabilities
Long-term debt	$	—	$	10,212	$	—	$	10,212	$	9,555
Payables to parent and affiliates	—		19		—		19		19
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,278
Finance receivables held for sale	—		—		209		209		205
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		12		—		12		12
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2015
Assets
Cash equivalents in mutual funds	$	750	$	—	$	—	$	750
Cash equivalents in certificates of deposit and commercial paper	—		295		—		295
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		68		—		68
Obligations of states, municipalities, and political subdivisions	—		84		—		84
Corporate debt	—		245		—		245
RMBS	—		79		—		79
CMBS	—		39		—		39
CDO/ABS	—		32		—		32
Total bonds	—		547		—		547
Preferred stock	—		6		10		16
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		553		11		564
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		783		—		783
Corporate debt	—		196		—		196
RMBS	—		2		—		2
CMBS	—		45		—		45
CDO/ABS	—		151		—		151
Total trading securities	—		1,177		—		1,177
Total investment securities	—		1,730		11		1,741
Restricted cash in mutual funds	252		—		—		252
Total	$	1,002	$	2,025	$	11	$	3,038

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments (a)	—		—		1		1
Total available-for-sale securities (b)	—		592		8		600
Trading securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading securities	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method.

(b) Common stocks not carried at fair value totaled $1 million at September 30, 2015 and December 31, 2014 and, therefore, have been excluded from the table above.

We had no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2015.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements *		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Preferred stock	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Other long-term investments	1		—		—		—		—		—		1
Total	$	1	$	—	$	—	$	10	$	—	$	—	$	11

* “Purchases, sales, issues, and settlements” column consisted only of purchases.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the three months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements		Transfers into Level 3		Transfers out of Level 3		Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Three Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	5	$	—	$	—	$	—	$	—	$	—	$	5
Other long-term investments	1		—		—		—		—		—		1
Total available-for-sale securities	6		—		—		—		—		—		6
Trading securities:
Bonds:
CDO/ABS	6		—		—		—		—		—		6
Total	$	12	$	—	$	—	$	—	$	—	$	—	$	12

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2015:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into  Level 3		Transfers out of Level 3 (b)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Preferred stock	—		—		—		10			—		—			10
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	6		$	—	$	(3	)	$	11

(a) The detail of purchases and settlements is presented in the table below:

(dollars in millions)	Purchases		Settlements			Total
Nine Months Ended   September 30, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	—	$	(4	)	$	(4	)
Preferred stock	10		—			10
Total	$	10	$	(4	)	$	6

(b) During the nine months ended September 30, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater observability of pricing inputs.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2014:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
(dollars in millions)
Nine Months Ended   September 30, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(8	)	$	—	$	—		$	5
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(8		)	—		(1		)	5
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(8		)	—		(1		)	6
Trading securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		—			—		(1		)	6
Total trading securities	7		—		—		—			1		(2		)	6
Total	$	22	$	—	$	—	$	(8	)	$	1	$	(3	)	$	12

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During the nine months ended September 30, 2014, we transferred $1 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs.

(c) During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs.

We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table.

Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	743 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)
Preferred stock	Market approach	Historical cost Operating performance	N/A (c)	N/A (c)

(a) At September 30, 2015 and December 31, 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us.

Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants.

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *
(dollars in millions)	Level 1		Level 2		Level 3		Total
September 30, 2015
Assets
Real estate owned	$	—	$	—	$	12	$	12
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	20	$	20
December 31, 2014
Assets
Real estate owned	$	—	$	—	$	19	$	19
Commercial mortgage loans	—		—		11		11
Total	$	—	$	—	$	30	$	30

* The fair value information presented in the table above is as of the date the fair value adjustment was recorded.

Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows:

(dollars in millions)	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2015		2014			2015			2014
Assets
Real estate owned	$	1	$	3		$	3		$	13
Commercial mortgage loans	—		(1		)	(2		)	(2		)
Total	$	1	$	2		$	1		$	11

In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell for the three and nine months ended September 30, 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets.

In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value for the three and nine months ended September 30, 2015 and 2014 and recorded the net impairments in investment revenues.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table.

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	September 30, 2015	December 31, 2014
Real estate owned	Market approach	Third-party valuation	N/A*	N/A*
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A*	N/A*

* Not applicable.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

We use the following methods and assumptions to estimate fair value.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value.

Mutual Funds

The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds.

Investment Securities

We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value as trading securities at fair value.

The fair value of certificates of deposit and commercial paper having maturity dates greater than three months is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent weaknesses in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

Finance Receivables Held for Sale

We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses.

Restricted Cash and Cash Equivalents

The carrying amount of restricted cash and cash equivalents approximates fair value.

Note Receivable from Parent

The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates.

Commercial Mortgage Loans

Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses which is based on independent third-party valuations.

Real Estate Owned

We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset.

Escrow Advance Receivable

The carrying amount of escrow advance receivable approximates fair value.

Receivables from Parent and Affiliates

The carrying amount of receivables from parent and affiliates approximates fair value.

Receivables Related to Sales of Real Estate Loans and Related Trust Assets

The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value.

Long-term Debt

We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt.

We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At September 30, 2015, we had no debt carried at fair value under the fair value option.

Payables to Parent and Affiliates

The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature.

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Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification adjustments from accumulated other comprehensive income
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$ 11	$ 12	$ 43	$ 32
Income tax effect	(7)	(219)	(14)	(276)
Net income	36	429	103	520
Unrealized Gains Investment Securities | Reclassification adjustments
Reclassification adjustments from accumulated other comprehensive income
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	4	3	14	6
Income tax effect	2	1	5	2
Net income	$ 2	$ 2	$ 9	$ 4

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 103	$ 520
Reconciling adjustments:
Provision for finance receivable losses	247	274
Depreciation and amortization	64	31
Deferred income tax charge (benefit)	(10)	14
Non-cash incentive compensation from Initial Stockholder	15	0
Net gain on fair value adjustments on debt	0	(1)
Net gain on sales of real estate loans and related trust assets	0	(707)
Net charge-offs on finance receivables held for sale	0	11
Net loss on repurchases and repayments of debt	0	7
Share-based compensation expense, net of forfeitures	1	1
Other	(13)	0
Cash flows due to changes in:
Other assets and other liabilities	23	62
Insurance claims and policyholder liabilities	22	36
Taxes receivable and payable	(29)	(66)
Accrued interest and finance charges	0	(11)
Restricted cash and cash equivalents not reinvested	0	(3)
Other, net	(1)	0
Net cash provided by operating activities	422	168
Cash flows from investing activities
Finance receivables originated or purchased, net of deferred origination costs	(2,377)	(1,841)
Principal collections on finance receivables	1,825	1,908
Cash advances on intercompany notes receivables	(147)	0
Principal collections on intercompany notes receivables	77	0
Sales and principal collections on finance receivables held for sale originated as held for investment	88	3,427
Available-for-sale investment securities purchased	(382)	(261)
Trading investment securities purchased	(1,457)	(1,065)
Available-for-sale investment securities called, sold, and matured	408	209
Trading investment securities called, sold, and matured	2,563	18
Change in restricted cash and cash equivalents	(46)	5
Proceeds from sale of real estate owned	12	51
Other, net	1	4
Net cash provided by investing activities	565	2,455
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	1,929	672
Repayment of long-term debt	(850)	(1,764)
Distributions to joint venture partners	(59)	(9)
Capital contributions from parent	0	22
Net cash provided by (used for) financing activities	1,020	(1,079)
Net change in cash and cash equivalents	2,007	1,544
Cash and cash equivalents at beginning of period	749	375
Cash and cash equivalents at end of period	2,756	1,919
Supplemental non-cash activities
Transfer of finance receivables to real estate owned	8	46
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	608	6,810
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	0	2,342
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	0	1,652
Unsettled investment security purchases and sales	$ 40	$ (28)

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions		Sep. 30, 2015		Dec. 31, 2014
Personal loans		$ 3,990		$ 3,800
SpringCastle Portfolio		1,667		1,979
Allowance for finance receivable losses		191		174
Finance receivables held for sale		797		205
Restricted cash and cash equivalents		270		218
Long-term debt		$ 9,555	[1]	$ 8,356
Common Stock, par value (dollars per share)		$ 0.50		$ 0.50
Common Stock, shares authorized		25,000,000		25,000,000
Common shares, shares issued		10,160,020		10,160,020
Common shares, shares outstanding		10,160,020		10,160,020
Consolidated VIEs
Personal loans		$ 2,100		$ 1,900
SpringCastle Portfolio		1,700		2,000
Allowance for finance receivable losses		131		72
Finance receivables held for sale		484		0
Restricted cash and cash equivalents		256		210
Long-term debt	[2]	$ 4,771		$ 3,630

[1] The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

[2] As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

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Long-term Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2015 were as follows:

(dollars in millions)	Medium Term Notes			Securitizations			Junior Subordinated Debt			Total
Interest rates (a)	5.25%-8.25%			1.87%-6.82%			6.00		%
Fourth quarter 2015	$	750		$	—		$	—		$	750
First quarter 2016	—			—			—			—
Second quarter 2016	—			—			—			—
Third quarter 2016	375			—			—			375
Remainder of 2016	—			—			—			—
2017	1,902			—			—			1,902
2018	—			—			—			—
2019	700			—			—			700
2020-2067	1,250			—			350			1,600
Securitizations (b)	—			4,784			—			4,784
Total principal maturities	$	4,977		$	4,784		$	350		$	10,111
Total carrying amount (c)	$	4,613		$	4,771		$	171		$	9,555
Debt issuance costs (d)	$	(13	)	$	(17	)	$	—		$	(30	)

(a) The interest rates shown are the range of contractual rates in effect at September 30, 2015.

(b) Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt.

GUARANTY AGREEMENTS

On December 3, 2014, SHI entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on $700 million of 5.25% of Senior Notes due 2019. As of September 30, 2015, approximately $700 million aggregate principal amount of senior notes were outstanding.

On December 30, 2013, SHI entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture (collectively, the “notes”) on a junior subordinated basis issued by SFC. The notes consist of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, SHI entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of September 30, 2015, approximately $5.0 billion aggregate principal amount of senior notes, including $3.0 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document Information [Line Items]
Entity Registrant Name	SPRINGLEAF FINANCE CORP
Entity Central Index Key	0000025598
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		10,160,020
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

XML

Variable Interest Entities

9 Months Ended

Sep. 30, 2015

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our condensed consolidated financial statements and are accounted for as secured borrowings. As a result of the 2014 sales of the Company’s beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions, we deconsolidated the underlying real estate loans and previously issued securitized interests which were reported in long-term debt.

CONSOLIDATED VIES

We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary, and, therefore, we consolidated such entities. We are deemed to be the primary beneficiaries of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns.

The asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each securitization trust. We retain interests in these securitization transactions, including residual interests in each securitization trust and, in some cases, subordinated securities issued by the VIEs. We retain credit risk in the securitizations through our ownership of the residual interest in each securitization trust, and, in some cases, ownership of the most subordinated class of asset-backed securities, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default.

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Assets
Finance receivables:
Personal loans	$	2,096	$	1,853
SpringCastle Portfolio	1,667		1,979
Allowance for finance receivable losses	131		72
Finance receivables held for sale	484		—
Restricted cash and cash equivalents	256		210
Liabilities
Long-term debt *	$	4,771	$	3,630

* As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

Amendment to Sumner Brook 2013-VFN1 Securitization

On January 16, 2015, we amended the note purchase agreement with Sumner Brook Funding Trust 2013-VFN1 to extend the two-year revolving period ending December of 2015 to a three-year revolving period ending January of 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August of 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million. At September 30, 2015, no amounts were drawn under the notes.

2015-A Securitization

On February 26, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $1.2 billion of notes issued by Springleaf Funding Trust 2015-A at a 3.58% weighted average yield. The notes are backed by personal loans acquired from subsidiaries of SFC. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12 million interest reserve requirement.

Sale of SpringCastle 2014-A Notes

On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015.

Amendments to Whitford Brook 2014-VFN1 Securitization

On March 24, 2015, we amended the sale and servicing agreement relating to the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”) to remove the requirement for a $100 million minimum balance drawn under the variable funding notes, which are to be backed by personal loans acquired from subsidiaries of SFC from time to time. On March 25, 2015, we paid down the note balance of $100 million.

On June 3, 2015, we amended the note purchase agreement relating to the Whitford Brook 2014-VFN1 Trust to reduce the $300 million maximum principal balance to $250 million. On July 15, 2015, we drew $100 million under the notes, which remained drawn as of September 30, 2015.

2015-B Securitization

On April 7, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $314 million of notes issued by Springleaf Funding Trust 2015-B at a 3.84% weighted average yield. The notes are backed by personal loans acquired from subsidiaries of SFC. We sold the asset-backed notes for $314 million, after the price discount but before expenses and a $3 million interest reserve requirement.

Amendment to Springleaf 2013-VFN1 Securitization

On May 20, 2015, we amended the note purchase agreement with Springleaf Funding Trust 2013-VFN1 to, among other things, extend the original two-year revolving period ending October of 2015 to a two-year revolving period ending April of 2017, which may be extended for up to one additional year, subject to satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in May of 2020. The maximum amount that can be drawn under the notes remained at $350 million. At September 30, 2015, no amounts were drawn under the notes.

Mill River 2015-VFN1 Securitization

On May 27, 2015, we established a private securitization facility in which Mill River Funding Trust 2015-VFN1, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $400 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in June of 2021. At September 30, 2015, no amounts were drawn under the notes.

Second Avenue Funding LLC Securitization

On June 3, 2015, we established a private securitization facility in which Second Avenue Funding LLC, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the three-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full in June of 2019. At September 30, 2015, no amounts were drawn under the notes.

First Avenue Funding LLC Securitization

On June 10, 2015, we established a private securitization facility in which First Avenue Funding LLC (“First Avenue”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a two-year revolving period, subject to the satisfaction of customary conditions precedent. On September 9, 2015, First Avenue amended the facility to extend the revolving period until September 10, 2017. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the two-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full twelve months following the maturity of the last auto loan held by First Avenue. At September 30, 2015, no amounts were drawn under the notes.

VIE Interest Expense

Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three and nine months ended September 30, 2015 totaled $49 million and $136 million, respectively, compared to $43 million and $130 million for the three and nine months ended September 30, 2014, respectively.

DECONSOLIDATED VIES

As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. During 2014, we established a reserve for sales recourse obligations of $6 million related to these sales. At September 30, 2015, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of September 30, 2015. See Note 14 for further information on the total reserve for sales recourse obligations relating to the real estate loan sales, including the sales of the mortgage-backed retained certificates.

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Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Finance charges	$ 419	$ 385	$ 1,221	$ 1,172
Finance receivables held for sale originated as held for investment	4	47	13	54
Total interest income	423	432	1,234	1,226
Interest expense	171	172	500	526
Net interest income	252	260	734	700
Provision for finance receivable losses	82	93	247	274
Net interest income after provision for finance receivable losses	170	167	487	426
Other revenues:
Insurance	40	44	116	125
Investment	11	12	43	32
Net loss on repurchases and repayments of debt	0	0	0	(7)
Net gain on fair value adjustments on debt	0	1	0	1
Net gain on sales of real estate loans and related trust assets	0	617	0	707
Other	4	(11)	8	(3)
Total other revenues	55	663	167	855
Operating expenses:
Salaries and benefits	86	85	264	249
Other operating expenses	79	77	220	179
Insurance losses and loss adjustment expenses	17	20	53	57
Total other expenses	182	182	537	485
Income before provision for income taxes	43	648	117	796
Provision for income taxes	7	219	14	276
Net income	36	429	103	520
Net income attributable to non-controlling interests	31	23	93	23
Net income attributable to Springleaf Finance Corporation	$ 5	$ 406	$ 10	$ 497

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Allowance for Finance Receivable Losses

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Finance Receivable Losses

Changes in the allowance for finance receivable losses by finance receivable type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio			Real Estate Loans			Retail Sales Finance			Consolidated Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	139		$	3		$	35		$	1		$	178
Provision for finance receivable losses	60			20			2			—			82
Charge-offs	(57		)	(22		)	(4		)	—			(83		)
Recoveries	10			3			2			—			15
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Three Months Ended September 30, 2014
Balance at beginning of period	$	106		$	—		$	259		$	1		$	366
Provision for finance receivable losses	58			18			16			1			93
Charge-offs	(48		)	(20		)	(13		)	(1		)	(82		)
Recoveries	7			2			—			—			9
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(225		)	—			(225		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162
Nine Months Ended September 30, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	170			70			6			1			247
Charge-offs	(176		)	(78		)	(15		)	(2		)	(271		)
Recoveries	28			9			4			1			42
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	151		$	4		$	35		$	1		$	191
Nine Months Ended September 30, 2014
Balance at beginning of period	$	94		$	—		$	236		$	2		$	332
Provision for finance receivable losses	150			18			103			3			274
Charge-offs	(139		)	(20		)	(67		)	(4		)	(230		)
Recoveries (c)	18			2			5			—			25
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b)	—			—			(240		)	—			(240		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	123		$	1		$	37		$	1		$	162

(a) During the three and nine months ended September 30, 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(c) Recoveries during the nine months ended September 30, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March of 2014.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $131 million at September 30, 2015 and $72 million at December 31, 2014. See Note 11 for further discussion regarding our securitization transactions.

The carrying value charged-off for purchased credit impaired loans was as follows:

(dollars in millions)	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	5	$	17	$	5
FA Loans gross charge-offs *	—		2		1		15

* Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status.

The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	144	$	—	$	—	$	1	$	145
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—		—		5		—		5
Individually evaluated for impairment (TDR finance receivables)	7		4		30		—		41
Total	$	151	$	4	$	35	$	1	$	191
Finance receivables:
Collectively evaluated for impairment	$	3,963	$	1,404	$	410	$	27	$	5,804
Purchased credit impaired finance receivables	—		251		29		—		280
TDR finance receivables	27		12		108		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129	$	—	$	3	$	1	$	133
Purchased credit impaired finance receivables	—		—		5		—		5
TDR finance receivables	1		3		32		—		36
Total	$	130	$	3	$	40	$	1	$	174
Finance receivables:
Collectively evaluated for impairment	$	3,778	$	1,629	$	490	$	48	$	5,945
Purchased credit impaired finance receivables	—		340		30		—		370
TDR finance receivables	22		10		105		—		137
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

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Finance Receivables

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Finance Receivables

Finance Receivables

Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below:

• Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At September 30, 2015, $2.2 billion of personal loans, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.8 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured.

• SpringCastle Portfolio — are loans acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest (the “SpringCastle Portfolio”). These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans.

• Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At September 30, 2015, $209 million of real estate loans, or 38%, were secured by first mortgages and $338 million, or 62%, were secured by second mortgages. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans are in a liquidating status.

• Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status.

Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
September 30, 2015
Gross receivables *	$	4,694		$	1,635	$	543		$	30		$	6,902
Unearned finance charges and points and fees	(802		)	—		—			(3		)	(805		)
Accrued finance charges	56			32		4			—			92
Deferred origination costs	42			—		—			—			42
Total	$	3,990		$	1,667	$	547		$	27		$	6,231
December 31, 2014
Gross receivables *	$	4,462		$	1,941	$	621		$	52		$	7,076
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	1,979	$	625		$	48		$	6,452

* Gross receivables are defined as follows:

• finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• finance receivables originated subsequent to the Fortress Acquisition (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Included in the table above are finance receivables associated with securitizations that remain on our balance sheet. At September 30, 2015 and December 31, 2014, the carrying values of these finance receivables totaled $2.1 billion and $1.9 billion, respectively, for our personal loans and $1.7 billion and $2.0 billion, respectively, for our SpringCastle Portfolio loans.

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Personal loans	$	2	$	1
SpringCastle Portfolio	366		354
Real estate loans	31		31
Total	$	399	$	386

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (1) the value of the collateral declines significantly; (2) we believe the borrower will be unable to fulfill the repayment obligations; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (1) the value of the real estate declines significantly below the property’s initial appraised value; (2) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion.

CREDIT QUALITY INDICATORS

We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators.

We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at September 30, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges.

Delinquent Finance Receivables

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time.

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Net finance receivables:
60-89 days past due	$	47	$	24	$	16	$	1	$	88
90-119 days past due	36		15		4		—		55
120-149 days past due	29		11		3		—		43
150-179 days past due	23		9		2		—		34
180 days or more past due	2		1		12		—		15
Total delinquent finance receivables	137		60		37		1		235
Current	3,784		1,562		497		25		5,868
30-59 days past due	69		45		13		1		128
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Net finance receivables:
60-89 days past due	$	36	$	31	$	12	$	1	$	80
90-119 days past due	30		19		9		—		58
120-149 days past due	24		16		5		1		46
150-179 days past due	21		14		4		—		39
180 days or more past due	2		2		12		—		16
Total delinquent finance receivables	113		82		42		2		239
Current	3,632		1,839		565		45		6,081
30-59 days past due	55		58		18		1		132
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

Nonperforming Finance Receivables

We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss.

Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
September 30, 2015
Performing	$	3,900	$	1,631	$	526	$	27	$	6,084
Nonperforming	90		36		21		—		147
Total	$	3,990	$	1,667	$	547	$	27	$	6,231
December 31, 2014
Performing	$	3,723	$	1,928	$	595	$	47	$	6,293
Nonperforming	77		51		30		1		159
Total	$	3,800	$	1,979	$	625	$	48	$	6,452

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

In connection with SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC on July 31, 2014 (the “SAC Capital Contribution”), SFC owns a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), certain of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013.

As a result of the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress (the “Fortress Acquisition”), we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination standards (“push-down accounting”) and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

We report the carrying amount of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below.

At September 30, 2015 and December 31, 2014, finance receivables held for sale totaled $797 million and $205 million, respectively. See Note 6 for further information on our finance receivables held for sale, which consist of certain of our personal loans and non-core real estate loans. Finance receivables held for sale include purchased credit impaired finance receivables as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below.

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
September 30, 2015
Carrying amount, net of allowance	$	251	$	86	$	337
Outstanding balance	515		139		654
Allowance for purchased credit impaired finance receivable losses	—		5		5
December 31, 2014
Carrying amount, net of allowance	$	340	$	93	$	433
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		5		5

* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	FA Loans
September 30, 2015
Carrying amount, net of allowance	$	62
Outstanding balance	91
December 31, 2014
Carrying amount, net of allowance	$	68
Outstanding balance	99

The allowance for purchased credit impaired finance receivable losses at September 30, 2015 and December 31, 2014, reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows.

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Three Months Ended September 30, 2015
Balance at beginning of period	$	474		$	13		$	487
Accretion (a)	(20		)	(3		)	(23		)
Disposals of finance receivables (b)	(7		)	—			(7		)
Balance at end of period	$	447		$	10		$	457
Three Months Ended September 30, 2014
Balance at beginning of period	$	—		$	623		$	623
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(20		)	(31		)
Transfers due to finance receivables sold	—			(559		)	(559		)
Disposals of finance receivables (b)	(3		)	(4		)	(7		)
Balance at end of period	$	246		$	40		$	286
Nine Months Ended September 30, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(66		)	(8		)	(74		)
Disposals of finance receivables (b)	(28		)	(1		)	(29		)
Balance at end of period	$	447		$	10		$	457
Nine Months Ended September 30, 2014
Balance at beginning of period	$	—		$	767		$	767
Accretable yield for SpringCastle Portfolio contributed to SFC	260			—			260
Accretion (a)	(11		)	(75		)	(86		)
Transfers due to finance receivables sold	—			(637		)	(637		)
Disposals of finance receivables (b)	(3		)	(15		)	(18		)
Balance at end of period	$	246		$	40		$	286

(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Accretion	$	2	$	11	$	5	$	11

(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period.

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
September 30, 2015
TDR gross finance receivables (b)	$	30	$	14	$	199	$	243
TDR net finance receivables	29		12		200		241
Allowance for TDR finance receivable losses	7		4		30		41
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
September 30, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

We have no commitments to lend additional funds on our TDR finance receivables.

TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR average net receivables	$	30	$	12	$	199	$	241
TDR finance charges recognized	—		1		2		3
Three Months Ended September 30, 2014
TDR average net receivables (b)	$	17	$	8	$	797	$	822
TDR finance charges recognized	—		—		10		10
Nine Months Ended September 30, 2015
TDR average net receivables	$	28	$	12	$	197	$	237
TDR finance charges recognized	2		1		8		11
Nine Months Ended September 30, 2014
TDR average net receivables (b)	$	15	$	8	$	1,187	$	1,210
TDR finance charges recognized	1		—		45		46

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR average net receivables	$	92
TDR finance charges recognized	2
Three Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3
Nine Months Ended September 30, 2015
TDR average net receivables	$	91
TDR finance charges recognized	4
Nine Months Ended September 30, 2014
TDR average net receivables	$	413
TDR finance charges recognized	3

(b) TDR SpringCastle Portfolio loans average net receivables for the three and nine months ended September 30, 2014 reflect a two-month average since the SAC Capital Contribution occurred on July 31, 2014.

Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	8	$	1	$	6	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	1	$	3	$	7
Other (b)	3		—		2		5
Total post-modification TDR net finance receivables	$	6	$	1	$	5	$	12
Number of TDR accounts	1,545		142		95		1,782
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	5	$	2	$	28	$	35
Post-modification TDR net finance receivables:
Rate reduction	$	3	$	2	$	26	$	31
Other (b)	2		—		4		6
Total post-modification TDR net finance receivables	$	5	$	2	$	30	$	37
Number of TDR accounts	1,125		246		403		1,774
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables	$	24	$	5	$	16	$	45
Post-modification TDR net finance receivables:
Rate reduction	$	11	$	5	$	12	$	28
Other (b)	9		—		4		13
Total post-modification TDR net finance receivables	$	20	$	5	$	16	$	41
Number of TDR accounts	4,860		550		272		5,682
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	11	$	2	$	209	$	222
Post-modification TDR net finance receivables:
Rate reduction	$	7	$	2	$	154	$	163
Other (b)	4		—		45		49
Total post-modification TDR net finance receivables	$	11	$	2	$	199	$	212
Number of TDR accounts	2,678		246		2,290		5,214

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Three Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	2	$	2
Number of TDR accounts	50		33		83
Three Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89
Nine Months Ended September 30, 2015
Pre-modification TDR net finance receivables *	$	—	$	4	$	4
Post-modification TDR net finance receivables *	$	—	$	5	$	5
Number of TDR accounts	50		77		127
Nine Months Ended September 30, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		89		89

* Pre-modification and post-modification TDR personal loans held for sale for the three and nine months ended September 30, 2015 were less than $1 million and, therefore, are not quantified in the table above.

(b) “Other” modifications include extension of term and forgiveness of principal or interest.

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended September 30, 2015
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	342		26		9		377
Three Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	2	$	2
Number of TDR accounts	42		11		54		107
Nine Months Ended September 30, 2015
TDR net finance receivables (b)	$	3	$	1	$	2	$	6
Number of TDR accounts	855		122		35		1,012
Nine Months Ended September 30, 2014
TDR net finance receivables (b) (c)	$	—	$	—	$	31	$	31
Number of TDR accounts	74		11		488		573

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Three Months Ended September 30, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	1
Three Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30
Nine Months Ended September 30, 2015
TDR net finance receivables	$	1
Number of TDR accounts	14
Nine Months Ended September 30, 2014
TDR net finance receivables	$	2
Number of TDR accounts	30

* TDR real estate loans held for sale for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

(c) TDR personal loans and SpringCastle Portfolio loans for the three and nine months ended September 30, 2014 and TDR SpringCastle Portfolio loans for the three months ended September 30, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the combined table above.

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Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our segments coincide with how our businesses are managed. At September 30, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

When we initially defined our operating segments in early 2013, we presented Consumer and Insurance as two distinct reporting segments. However, over the course of 2013 and into 2014, management has shifted its strategy for the Insurance segment toward organic growth primarily as an ancillary product complementing our consumer lending activities and has been increasingly viewing and managing the Insurance segment together with Consumer. As a result of the changes in strategy and the way that management views the insurance business of the Company, we began presenting them as one segment, effective December 31, 2014. To conform to the new segment alignment, we have revised our prior period segment disclosures. The Acquisitions and Servicing segment was added effective July 31, 2014, as a result of the SAC Capital Contribution on July 31, 2014.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.”

Our segments are managed as follows:

Core Consumer Operations

• Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, accident and health insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. Branch operations primarily conduct business in 27 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan.

• Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status.

Non-Core Portfolio

• Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we have also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including our retail sales finance accounts from our dedicated auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

Due to the nature of the Fortress Acquisition, we applied push-down accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the same accounting basis that we employed prior to the Fortress Acquisition, which we refer to as “historical accounting basis,” to provide a consistent basis for both management and other interested third parties to better understand the operating results of these segments. The historical accounting basis (which is a basis of accounting other than U.S. GAAP) also provides better comparability of the operating results of these segments to our competitors and other companies in the financial services industry. The historical accounting basis is not applicable to the Acquisitions and Servicing segment since this segment resulted from the SAC Capital Contribution subsequent to the Fortress Acquisition.

The “Push-down Accounting Adjustments” column in the following tables primarily consists of:

• the accretion or amortization of the valuation adjustments on the applicable revalued assets and liabilities;

• the difference in finance charges on our purchased credit impaired finance receivables compared to the finance charges on these finance receivables on a historical accounting basis;

• the elimination of accretion or amortization of historical based discounts, premiums, and other deferred costs on our finance receivables and long-term debt;

• the difference in provision for finance receivable losses required based upon the differences in historical accounting basis and push-down accounting basis of the finance receivables;

• the acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt that we repurchase or repay;

• the reversal of the remaining unaccreted push-down accounting basis for net finance receivables, less allowance for finance receivable losses established at the date of the Fortress Acquisition on finance receivables held for sale that we sold; and

• the difference in the fair value of long-term debt based upon the differences between historical accounting basis where certain long-term debt components are marked-to-market on a recurring basis, and push-down accounting basis where long-term debt is no longer marked-to-market on a recurring basis.

The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2015
Interest income	$	289	$	113	$	17		$	1		$	3		$	423
Interest expense	43		22		58			16			32			171
Provision for finance receivable losses	62		19		(4		)	—			5			82
Net interest income (loss) after provision for finance receivable losses	184		72		(37		)	(15		)	(34		)	170
Other revenues	55		—		(2		)	4			(2		)	55
Other expenses	157		14		8			2			1			182
Income (loss) before provision for (benefit from) income taxes	82		58		(47		)	(13		)	(37		)	43
Income before provision for income taxes attributable to non-controlling interests	—		31		—			—			—			31
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	82	$	27	$	(47	)	$	(13	)	$	(37	)	$	12

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Push-down Accounting Adjustments			Consolidated Total
Three Months Ended   September 30, 2014
Interest income	$	234	$	84	$	94		$	4		$	16		$	432
Interest expense	39		12		83			2			36			172
Provision for finance receivable losses	55		18		37			2			(19		)	93
Net interest income (loss) after provision for finance receivable losses	140		54		(26		)	—			(1		)	167
Other revenues	60		1		284			1			317			663
Other expenses	131		12		36			3			—			182
Income (loss) before provision for (benefit from) income taxes	69		43		222			(2		)	316			648
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	69	$	20	$	222		$	(2	)	$	316		$	625

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real  Estate			Other			Eliminations			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2015
Interest income	$	810	$	356	$	52		$	6		$	—		$	10		$	1,234
Interest expense	119		67		177			48			(5		)	94			500
Provision for finance receivable losses	170		69		(7		)	1			—			14			247
Net interest income (loss) after provision for finance receivable losses	521		220		(118		)	(43		)	5			(98		)	487
Other revenues	161		5		4			10			(5		)	(8		)	167
Other expenses	448		45		24			17			—			3			537
Income (loss) before provision for (benefit from) income taxes	234		180		(138		)	(50		)	—			(109		)	117
Income before provision for income taxes attributable to non-controlling interests	—		93		—			—			—			—			93
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	234	$	87	$	(138	)	$	(50	)	$	—		$	(109	)	$	24
Assets	$	5,628	$	1,751	$	3,551		$	1,471		$	—		$	(19	)	$	12,382

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Push-down Accounting Adjustments			Consolidated Total
At or for the Nine Months Ended   September 30, 2014
Interest income	$	663	$	84	$	382		$	13		$	84		$	1,226
Interest expense	121		12		287			6			100			526
Provision for finance receivable losses	148		18		119			7			(18		)	274
Net interest income (loss) after provision for finance receivable losses	394		54		(24		)	—			2			426
Other revenues	167		1		196			5			486			855
Other expenses	380		12		77			14			2			485
Income (loss) before provision for (benefit from) income taxes	181		43		95			(9		)	486			796
Income before provision for income taxes attributable to non-controlling interests	—		23		—			—			—			23
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	181	$	20	$	95		$	(9	)	$	486		$	773
Assets (a) (b)	$	4,626	$	2,239	$	3,720		$	705		$	16		$	11,306

(a) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of September 30, 2014.

(b) See Note 1 for further information on the correction of this prior period disclosure.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains Investment Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended September 30, 2015
Balance at beginning of period	$	2		$	(13	)	$	4	$	(7	)
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2		)	—			—		(2		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Three Months Ended September 30, 2014
Balance at beginning of period	$	14		$	20		$	4	$	38
Other comprehensive loss before reclassifications	(2		)	—			—		(2		)
Reclassification adjustments from accumulated other comprehensive income	(2		)	—			—		(2		)
Balance at end of period	$	10		$	20		$	4	$	34
Nine Months Ended September 30, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive loss before reclassifications	(5		)	—			—		(5		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—		(9		)
Balance at end of period	$	(2	)	$	(13	)	$	4	$	(11	)
Nine Months Ended September 30, 2014
Balance at beginning of period	$	4		$	20		$	4	$	28
Other comprehensive income before reclassifications	10			—			—		10
Reclassification adjustments from accumulated other comprehensive income	(4		)	—			—		(4		)
Balance at end of period	$	10		$	20		$	4	$	34

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows:

(dollars in millions)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	4		$	3		$	14		$	6
Income tax effect	(2		)	(1		)	(5		)	(2		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	2		$	2		$	9		$	4

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Transactions with Affiliates of Fortress or AIG

9 Months Ended

Sep. 30, 2015

Affiliates of Fortress or AIG

Transactions with Affiliates of Fortress or AIG

Transactions with Affiliates of Fortress or AIG

Transactions with Affiliates of Fortress or AIG

SUBSERVICING AGREEMENT

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of less than $1 million for the three months ended September 30, 2015, and $1 million for the nine months ended September 30, 2015, compared to $1 million and $5 million for the three and nine months ended September 30, 2014, respectively.

As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014, our exposure to these affiliated services is reduced.

INVESTMENT MANAGEMENT AGREEMENT

Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services were under $1 million for the three months ended September 30, 2015 and 2014, and $1 million for the nine months ended September 30, 2015 and 2014.

REINSURANCE AGREEMENTS

Merit Life Insurance Co. (“Merit”), our wholly owned subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit accident and health insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $43 million and $44 million at September 30, 2015 and December 31, 2014, respectively.

INSURANCE COVERAGE

We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies were under $1 million for the three months ended September 30, 2015 and 2014 and $1 million for the nine months ended September 30, 2015 and 2014.

JOINT VENTURE

Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress.

THIRD STREET DISPOSITION

On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress.

MSR SALE

SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million. In May of 2015, Nationstar paid off the remaining balance of $1 million of this receivable. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

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Investment Securities (Details 4) $ in Millions	Sep. 30, 2015 USD ($)
Fair Value
Due in 1 year or less	$ 72
Due after 1 year through 5 years	150
Due after 5 years through 10 years	57
Due after 10 years	118
Mortgage-backed, asset-backed, and collateralized securities	150
Total	547
Amortized Cost
Due in 1 year or less	72
Due after 1 year through 5 years	150
Due after 5 years through 10 years	57
Due after 10 years	121
Mortgage-backed, asset-backed, and collateralized securities	150
Total	$ 550

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Finance Receivables Held for Sale

9 Months Ended

Sep. 30, 2015

Receivables Held-for-sale [Abstract]

Finance Receivables Held for Sale

Finance Receivables Held for Sale

We report finance receivables held for sale of $797 million at September 30, 2015 and $205 million at December 31, 2014, which are carried at the lower of cost or fair value. At September 30, 2015 and December 31, 2014, the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of the finance receivables held for sale. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our condensed consolidated statements of operations, which totaled $4 million and $13 million for the three and nine months ended September 30, 2015, respectively, compared to $47 million and $54 million for the three and nine months ended September 30, 2014, respectively.

On September 30, 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

During the three and nine months ended September 30, 2014, we transferred real estate loans totaling $5.3 billion and $6.6 billion, respectively, (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. During the three and nine months ended September 30, 2014, we sold the finance receivables held for sale totaling $4.7 billion and $6.0 billion, respectively, and recorded net gains of $617 million and $707 million, respectively. At September 30, 2015, these real estate loans held for sale totaled $189 million.

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Investment Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	69	$	—	$	(1	)	$	68
Obligations of states, municipalities, and political subdivisions	83		1		—			84
Corporate debt	248		3		(6		)	245
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	79		—		—			79
Commercial mortgage-backed securities (“CMBS”)	39		—		—			39
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	32		—		—			32
Total bonds	550		4		(7		)	547
Preferred stock	16		—		—			16
Other long-term investments	1		—		—			1
Total (a)	$	567	$	4	$	(7	)	$	564
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at September 30, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014, primarily to support bank lines of credit.

As of September 30, 2015 and December 31, 2014, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss.

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *		Fair Value		Unrealized Losses
September 30, 2015
Bonds:
U.S. government and government sponsored entities	$	51	$	(1	)	$	—	$	—	$	51	$	(1	)
Obligations of states, municipalities, and political subdivisions	15		—			11		—		26		—
Corporate debt	107		(6		)	14		—		121		(6		)
RMBS	8		—			—		—		8		—
CMBS	19		—			7		—		26		—
CDO/ABS	16		—			—		—		16		—
Total bonds	216		(7		)	32		—		248		(7		)
Preferred stock	6		—			—		—		6		—
Other long-term investments	1		—			—		—		1		—
Total	$	223	$	(7	)	$	32	$	—	$	255	$	(7	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—	$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—		28		—
Corporate debt	36		(1		)	6		—		42		(1		)
RMBS	9		—			—		—		9		—
CMBS	16		(1		)	2		—		18		(1		)
CDO/ABS	46		—			—		—		46		—
Total bonds	134		(2		)	10		—		144		(2		)
Preferred stock	6		—			—		—		6		—
Total	$	140	$	(2	)	$	10	$	—	$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

We continue to monitor unrealized loss positions for potential impairments. During the three and nine months ended September 30, 2015 and 2014, we did not recognize any other-than-temporary impairment credit loss write-downs to investment revenues.

During the three and nine months ended September 30, 2015 and 2014, there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities.

The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015			2014
Fair value	$	168	$	105	$	372		$	203
Realized gains	$	4	$	5	$	15		$	7
Realized losses	—		—		(1		)	—
Net realized gains	$	4	$	5	$	14		$	7

Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	72	$	72
Due after 1 year through 5 years	150		150
Due after 5 years through 10 years	57		57
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	150		150
Total	$	547	$	550

Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies.

The fair value of bonds on deposit with insurance regulatory authorities totaled $11 million and $12 million at September 30, 2015 and December 31, 2014, respectively.

TRADING SECURITIES

The fair value of trading securities by type was as follows:

(dollars in millions)	September 30, 2015		December 31, 2014
Fixed maturity trading securities:
Bonds:
U.S. government and government sponsored entities	$	783	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	196		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	2		35
CMBS	45		149
CDO/ABS	151		507
Total	$	1,177	$	2,321

The net unrealized and realized gains (losses) on our trading securities, which we report in investment revenues, were as follows:

(dollars in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net unrealized gains (losses) on trading securities held at period end	$	(1	)	$	(2	)	$	3		$	(1	)
Net realized losses on trading securities sold or redeemed	(1		)	—			(2		)	—
Total	$	(2	)	$	(2	)	$	1		$	(1	)

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Parties other than Affiliates of Fortress or AIG

Related Party Transactions

Related Party Transactions

Related Party Transactions

AFFILIATE LENDING

Note Receivable from Parent

SFC’s note receivable from parent is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2015 and does not expect to demand payment from SFI in 2015. The note receivable from parent totaled $322 million at September 30, 2015 and $251 million at December 31, 2014. Interest receivable on this note totaled $2 million at September 30, 2015 and was less than $1 million at December 31, 2014. The interest rate for the unpaid principal balance is the lender’s cost of funds rate. Interest revenue on the note receivable from SFI totaled $5 million and $11 million, for the three and nine months ended September 30, 2015, respectively, compared to $1 million and $4 million for the three and nine months ended September 30, 2014, respectively.

Receivables from Parent and Affiliates

At September 30, 2015 and December 31, 2014, receivables from parent and affiliates totaled $7 million and $12 million, respectively. SFC had a receivable from Second Street Funding Corporation, a subsidiary of SFI, for income taxes payable under current and prior tax sharing agreements, which totaled $4 million at September 30, 2015 and $4 million at December 31, 2014. Receivables from parent and affiliates also included interest receivable on SFC’s note receivable from SFI previously discussed in this Note. Receivables from parent and affiliates at September 30, 2015 and December 31, 2014 are presented net of a payable to SFI of $9 million and $43 million, respectively. Excluding this payable, receivables from parent and affiliates totaled $16 million at September 30, 2015 and $54 million at December 31, 2014.

Payables to Parent and Affiliates

At September 30, 2015 and December 31, 2014, payables to parent and affiliates totaled $19 million and $48 million, respectively. SFC’s payable to parent totaled $2 million and $17 million at September 30, 2015 and December 31, 2014, respectively, primarily due to payments made by SFI for the benefit of SFC. At September 30, 2015 and December 31, 2014, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $15 million and $19 million, respectively, to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At September 30, 2015 and December 31, 2014, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

SFI provided funding for SAC’s operations through an intercompany demand note, not to exceed $2.5 million. The note was payable in full on December 31, 2022, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was the lender’s cost plus 25 basis points. At December 31, 2014, the note payable to SFI totaled $1 million and was reported in other liabilities. On September 1, 2015, SAC repaid the note in full plus accrued interest. Interest expense on the note payable to SFI for the three and nine months ended September 30, 2015 and 2014 was immaterial.

SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At September 30, 2015 and December 31, 2014, SpringCastle Holdings LLC’s payable to SFI totaled $4 million and $10 million, respectively.

CAPITAL CONTRIBUTIONS

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

During January and July of 2014, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, respectively.

INTERCOMPANY AGREEMENTS

On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $15 million at September 30, 2015 and $19 million at December 31, 2014.

Services Agreement

SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During the three and nine months ended September 30, 2015, SFMC recorded $55 million and $156 million, respectively, of service fee expenses, which are included in other operating expenses, compared to $65 million and $160 million for the three and nine months ended September 30, 2014.

License Agreement

The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During the three and nine months ended September 30, 2015, SFMC recorded $1 million and $4 million, respectively, of license fees, which are included as a contra expense to other operating expenses, compared to $1 million and $4 million for the three and nine months ended September 30, 2014.

Building Lease

The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three and nine months ended September 30, 2015, SFMC recorded $1 million and $3 million, respectively, of rent charged to SGSC, which are included as a contra expense to other operating expenses, compared to $1 million and $3 million for the three and nine months ended September 30, 2014.

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Related Party Transactions (Details) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) building	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)	Jul. 31, 2014 USD ($) $ / shares shares	Jan. 31, 2014 USD ($)
Related Party Transactions
Note receivable from SFI	$ 322.0		$ 322.0		$ 251.0
Receivables from parent and affiliates	7.0		$ 7.0		12.0
Percentage of allocated cost of service			100.00%
Affiliated Entity
Related Party Transactions
Payable due to SFI	19.0		$ 19.0		48.0
Affiliated Entity | Spring Castle Holdings LLC | Services Agreement
Related Party Transactions
Payables to parent and affiliates	4.0		4.0		10.0
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Intercompany Agreements
Related Party Transactions
Net payables	15.0		$ 15.0		19.0
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Services Agreement
Related Party Transactions
Percentage of allocated cost of service			100.00%
Service fee expenses	55.0	$ 65.0	$ 156.0	$ 160.0
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | License Agreement
Related Party Transactions
Margin on the systems and software (as a percent)			7.00%
Percentage of actual cost incurred			100.00%
License fees	1.0	1.0	$ 4.0	4.0
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Building Lease
Related Party Transactions
Number of buildings leased | building			6
Annual rental fees			$ 4.0
Rent charged	1.0	1.0	3.0	3.0
Affiliated Entity | SFI
Related Party Transactions
Note receivable from SFI	322.0		322.0		251.0
Interest receivable on note	2.0		2.0		1.0
Interest revenue on note receivable	5.0	$ 1.0	11.0	$ 4.0
Capital Contribution of Common Stock, Shares | shares						100
Capital contributions received to satisfy interest payments						$ 11.0	$ 11.0
Partners' Capital, Distribution Amount Per Share | $ / shares						$ 0.01
Affiliated Entity | Springleaf Finance Management Corporation
Related Party Transactions
Payable due to SFI	1.0		1.0		1.0
Affiliated Entity | Intercompany Demand Note Due 31 December 2022 | SFI | SAC
Related Party Transactions
Face amount of each issuance of debt	$ 2.5		$ 2.5		1.0
Interest rates (as a percent)	25.00%		25.00%
Subsidiary of Common Parent | Second Street Funding Corporation
Related Party Transactions
Current tax receivable	$ 4.0		$ 4.0		4.0
Parent
Related Party Transactions
Payables to parent and affiliates	9.0		9.0		43.0
Payable due to SFI	2.0		2.0		17.0
Majority Shareholder
Related Party Transactions
Receivables from parent and affiliates	$ 16.0		$ 16.0		$ 54.0

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Variable Interest Entities (Details)												3 Months Ended			9 Months Ended			12 Months Ended
		Jun. 30, 2015 USD ($)	Jun. 10, 2015 USD ($)	Jun. 03, 2015 USD ($)	May. 27, 2015 USD ($)	May. 20, 2015 USD ($)	May. 19, 2015	Apr. 07, 2015 USD ($)	Feb. 26, 2015 USD ($)	Jan. 16, 2015 USD ($)	Jan. 15, 2015	Sep. 30, 2015 USD ($) loan		Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($)		Sep. 30, 2014 USD ($) loan	Dec. 31, 2014 USD ($)	Mar. 25, 2015 USD ($)	Mar. 24, 2015 USD ($)	Mar. 09, 2015 USD ($)	Jun. 30, 2014 USD ($)	Mar. 24, 2014 USD ($)	Dec. 31, 2013 USD ($)
Assets
Purchased credit impaired finance receivables												$ 6,231,000,000			$ 6,231,000,000			$ 6,452,000,000
Allowance for finance receivable losses		$ 178,000,000										191,000,000		$ 162,000,000	191,000,000		$ 162,000,000	174,000,000				$ 366,000,000		$ 332,000,000
Finance receivables held for sale												797,000,000			797,000,000			205,000,000
Restricted cash and cash equivalents												270,000,000			270,000,000			218,000,000
Liabilities
Long-term debt												9,555,000,000	[1]		9,555,000,000	[1]		8,356,000,000
Variable Interest Entities, other information
Other assets												455,000,000			455,000,000			474,000,000
Long-term Debt, Gross												10,111,000,000			10,111,000,000
Interest expense												$ 171,000,000		$ 172,000,000	500,000,000		$ 526,000,000
Real estate loans sold, reserve for sales recourse obligations																		22,000,000
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number | loan												0		4			9
Personal loans
Assets
Purchased credit impaired finance receivables												$ 3,990,000,000			3,990,000,000			3,800,000,000
Allowance for finance receivable losses		139,000,000										151,000,000		$ 123,000,000	151,000,000		$ 123,000,000	130,000,000				106,000,000		94,000,000
Finance receivables held for sale												608,000,000			608,000,000
SpringCastle Portfolio
Assets
Purchased credit impaired finance receivables												1,667,000,000			1,667,000,000			1,979,000,000
Allowance for finance receivable losses		3,000,000										4,000,000		1,000,000	4,000,000		1,000,000	3,000,000				0		0
Real Estate
Assets
Purchased credit impaired finance receivables												547,000,000			547,000,000			625,000,000
Allowance for finance receivable losses		35,000,000										35,000,000		37,000,000	35,000,000		37,000,000	40,000,000				$ 259,000,000		$ 236,000,000
Mortgage Loan Securitizations | Real Estate
Variable Interest Entities, other information
Real estate loans sold, reserve for sales recourse obligations															$ 6,000,000			6,000,000
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number															0
SpringCastle 2014-A Notes, Class C | SAC
Variable Interest Entities, other information
Long-term Debt, Gross																					$ 232,000,000
SpringCastle 2014-A Notes, Class D | SAC
Variable Interest Entities, other information
Long-term Debt, Gross																					$ 131,000,000
Consolidated VIEs
Assets
Allowance for finance receivable losses												131,000,000			$ 131,000,000			72,000,000
Finance receivables held for sale												484,000,000			484,000,000			0
Restricted cash and cash equivalents												256,000,000			256,000,000			210,000,000
Liabilities
Long-term debt	[2]											4,771,000,000			4,771,000,000			3,630,000,000
Variable Interest Entities, other information
Interest expense												49,000,000		43,000,000	136,000,000		130,000,000
Consolidated VIEs | Consumer Loan Securitizations | Sumner Brook Funding Trust 2013 VFN1
Variable Interest Entities, other information
Funding period										3 years	2 years
Maximum amount of notes that may be issued under private securitization facility										$ 350,000,000
Amounts funded at closing		0
Amount Outstanding under Securitization Transaction												0			0
Consolidated VIEs | Consumer Loan Securitizations | Springleaf Funding Trust 2013 BAC
Variable Interest Entities, other information
Funding period						2 years	2 years
Maximum amount of notes that may be issued under private securitization facility						$ 350,000,000
Amounts funded at closing															0
Amount Outstanding under Securitization Transaction												0			0
Consolidated VIEs | Consumer Loan Securitizations | Mill River 2015 VFN1
Variable Interest Entities, other information
Funding period					3 years
Maximum amount of notes that may be issued under private securitization facility					$ 400,000,000
Amounts funded at closing															0
Amount Outstanding under Securitization Transaction												0			0
Consolidated VIEs | Consumer Loan Securitizations | Second Avenue funding, LLC securitization
Variable Interest Entities, other information
Funding period				3 years
Maximum amount of notes that may be issued under private securitization facility				$ 250,000,000
Amounts funded at closing															0
Amount Outstanding under Securitization Transaction												0			0
Consolidated VIEs | Consumer Loan Securitizations | First Avenue Funding LLC 2015
Variable Interest Entities, other information
Funding period			2 years
Maximum amount of notes that may be issued under private securitization facility			$ 250,000,000
Amounts funded at closing															0
Amount Outstanding under Securitization Transaction												0			0
Consolidated VIEs | Consumer Loan Securitizations | Personal loans
Assets
Purchased credit impaired finance receivables												2,096,000,000			2,096,000,000			1,853,000,000
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Springleaf Funding Trust 2015-A
Variable Interest Entities, other information
Amount of notes sold under private securitization									$ 1,200,000,000
Weighted average yield (as a percent)									3.58%
Proceeds from notes sold under securitization transactions									$ 1,200,000,000
Interest reserve requirement on notes sold under securitization									$ 12,000,000
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Whitford Brook 2014-VFN1 Securitization
Variable Interest Entities, other information
Maximum amount of notes that may be issued under private securitization facility				$ 250,000,000																$ 300,000,000			$ 300,000,000
Required minimum balance																							$ 100,000,000
Amount paid under securitization																			$ 100,000,000
Amount Outstanding under Securitization Transaction												100,000,000			100,000,000
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Springleaf Funding Trust 2015 B
Variable Interest Entities, other information
Amount of notes sold under private securitization								$ 314,000,000
Weighted average yield (as a percent)								3.84%
Proceeds from notes sold under securitization transactions								$ 314,000,000
Interest reserve requirement on notes sold under securitization								$ 3,000,000
Consolidated VIEs | Mortgage Loan Securitizations | SpringCastle Portfolio
Assets
Purchased credit impaired finance receivables												1,667,000,000			1,667,000,000			1,979,000,000
Consolidated VIEs | Mortgage Loan Securitizations | Real Estate
Variable Interest Entities, other information
Amount of loans sold															5,100,000,000
New Accounting Pronouncement, Early Adoption, Effect
Liabilities
Long-term debt																		29,000,000
Variable Interest Entities, other information
Other assets		$ 32,000,000												$ 29,000,000			$ 29,000,000
New Accounting Pronouncement, Early Adoption, Effect | Consolidated VIEs
Liabilities
Long-term debt												0			0			$ 14,000,000
Variable Interest Entities, other information
Other assets												$ 0			$ 0

[1] The net carrying amount of our long-term debt associated with certain securitizations that were either (1) issued at a premium or discount or (2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

[2] As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

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Transactions with Affiliates of Fortress or AIG (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	May. 31, 2015	Dec. 31, 2014	Aug. 01, 2014	Mar. 06, 2014
Transactions with Affiliates of Fortress or AIG
Ownership percentage in joint venture	47.00%		47.00%
Price agreed on for sale of interest in securitized assets							$ 39
NRZ Consumer LLC | Spring Castle Acquisition
Transactions with Affiliates of Fortress or AIG
Ownership percentage	30.00%		30.00%
Affiliated Entity | Nationstar Mortgage LLC | Servicing Agreement
Transactions with Affiliates of Fortress or AIG
Receivable from Nationstar						$ 1
Nationstar accounts receivable balance					$ 1
Affiliated Entity | Logan Circle Partners L.P.
Transactions with Affiliates of Fortress or AIG
Costs and fees incurred for the investment management services	$ 1	$ 1	$ 1	$ 1
Premium expense on insurance policies	1	1	1	1
Affiliated Entity | Merit | Subsidiaries of American International Group Inc
Transactions with Affiliates of Fortress or AIG
Reserves for reinsurance agreements	43		43			$ 44
Affiliated Entity | 2009-1 Trust | MLPFS
Transactions with Affiliates of Fortress or AIG
Percentage of interest concurrently agreed to be sold by counterparty to related party								75.00%
Nationstar Mortgage LLC | Owners
Transactions with Affiliates of Fortress or AIG
Subservicing fees	$ 1	$ 1	$ 1	$ 5

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Contingencies (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations

The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(dollars in millions)	2015		2014		2015			2014
Balance at beginning of period	$	18	$	5	$	24		$	5
Recourse losses	—		—		(5		)	—
Provision for recourse obligations, net of recoveries *	—		8		(1		)	8
Balance at end of period	$	18	$	13	$	18		$	13

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

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Finance Receivables (Details 9) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables		$ 241	$ 822	[1]	$ 237	$ 1,210	[1]
TDR finance charges recognized		3	10		11	46
Personal Loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables		30	17	[1]	28	15	[1]
TDR finance charges recognized		0	0		2	1
SpringCastle Portfolio
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables		12	8	[1]	12	8	[1]
TDR finance charges recognized		1	0		1	0
Real estate loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	[2]	199	797	[1]	197	1,187	[1]
TDR finance charges recognized	[2]	2	10		8	45
Real estate loans | Real Estate Loans Held for Sale
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables		92	413		91	413
TDR finance charges recognized		$ 2	$ 3		$ 4	$ 3

[1] (b)TDR SpringCastle Portfolio loans average net receivables for the three and nine months ended September 30, 2014 reflect a two-month average since the SAC Capital Contribution occurred on July 31, 2014.

[2] TDR finance receivables held for sale included in the table above were as follows:(dollars in millions) Real EstateLoans Three Months Ended September 30, 2015 TDR average net receivables $92TDR finance charges recognized 2 Three Months Ended September 30, 2014 TDR average net receivables $413TDR finance charges recognized 3 Nine Months Ended September 30, 2015 TDR average net receivables $91TDR finance charges recognized 4 Nine Months Ended September 30, 2014 TDR average net receivables $413TDR finance charges recognized 3

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Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

LEGAL CONTINGENCIES

In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action.

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole.

SALES RECOURSE OBLIGATIONS

During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales. At September 30, 2015, our reserve for sales recourse obligations totaled $18 million, of which $18 million related to the real estate loan sales in 2014. We had no repurchase activity during the three months ended September 30, 2015. We repurchased 13 loans totaling $1 million for the nine months ended September 30, 2015 associated with the real estate loan sales in 2014. There was no repurchase activity associated with the real estate loan sales in 2014 during the three and nine months ended September 30, 2014. We repurchased 4 loans totaling $1 million during the three months ended September 30, 2014 and 9 loans totaling $2 million during the nine months ended September 30, 2014 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At September 30, 2015, there were no material recourse requests that management believes will not be covered by the reserve.

The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(dollars in millions)	2015		2014		2015			2014
Balance at beginning of period	$	18	$	5	$	24		$	5
Recourse losses	—		—		(5		)	—
Provision for recourse obligations, net of recoveries *	—		8		(1		)	8
Balance at end of period	$	18	$	13	$	18		$	13

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses.

PAYMENT PROTECTION INSURANCE

Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March of 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $8 million at September 30, 2015 and $14 million at December 31, 2014. We do not believe that any additional losses related to PPI claims in excess of the amounts accrued will have a material adverse effect on our condensed consolidated financial statements as a whole.

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Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2015

Recent Accounting Pronouncements [Abstract]

New Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

Push Down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on pushdown accounting from the Accounting Standards Codification. The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own pushdown accounting guidance in November 2014. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We are currently evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Cloud Computing Software

In April of 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other Internal-Use Software, to provide guidance on a customer’s accounting for fees paid in a cloud computing arrangement (“CCA”). Under the new standard, customers will apply the same criteria as vendors to determine whether a CCA contains a software license or is solely a service contract. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We evaluated the potential impact of adopting this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Fair Value Measurement Disclosures

In May of 2015, the FASB issued ASU 2015-07, Fair Value Measurement, to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We have a few investments for which fair value is measured using the net asset value per share practical expedient. However, application of this ASU will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of adopting the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.

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Finance Receivables (Details 7) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period		$ 487	$ 623	$ 560	$ 767
Accretable yield for SpringCastle Portfolio contributed to SFC			260		260
Accretion	[1]	(23)	(31)	(74)	(86)
Transfers due to finance receivables sold			(559)		(637)
Disposals of finance receivables	[2]	(7)	(7)	(29)	(18)
Balance at end of period		457	286	457	286
SpringCastle Portfolio
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period		474	0	541	0
Accretable yield for SpringCastle Portfolio contributed to SFC			260		260
Accretion	[1]	(20)	(11)	(66)	(11)
Transfers due to finance receivables sold			0		0
Disposals of finance receivables	[2]	(7)	(3)	(28)	(3)
Balance at end of period		447	246	447	246
Affiliates of Fortress or AIG
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period		13	623	19	767
Accretable yield for SpringCastle Portfolio contributed to SFC					0
Accretion	[1]	(3)	(20)	(8)	(75)
Transfers due to finance receivables sold			(559)		(637)
Disposals of finance receivables	[2]	0	(4)	(1)	(15)
Balance at end of period		10	40	10	40
Finance Receivables Originated
Changes in accretable yield for purchased credit impaired finance receivables
Accretion on purchased credit impaired finance receivables held for sale		$ 2	$ 11	$ 5	$ 11

[1] Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:(dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Accretion $2 $11 $5 $11

[2] Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period.

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Significant Transactions Equity offering (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	May. 04, 2015
Redeemable Noncontrolling Interest [Line Items]
Common stock offering, shares				27,864,525
Proceeds from sale of common stock				$ 976
Secondary offering related expenses				$ 24
Non-cash incentive compensation from Initial Stockholder	$ 15	$ 15	$ 0
Springleaf Holding Inc.
Redeemable Noncontrolling Interest [Line Items]
Common stock offering, shares				19,417,476
Affiliates of Fortress or AIG
Redeemable Noncontrolling Interest [Line Items]
Common stock offering, shares				8,447,049

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 36	$ 429	$ 103	$ 520
Net unrealized gains on:
Net unrealized gains (losses) on non-credit impaired investment securities	(3)	(4)	(8)	15
Net unrealized gains on:
Net unrealized (gains) losses on non-credit impaired investment securities	1	2	3	(5)
Other comprehensive income (loss), net of tax, before reclassification adjustments	(2)	(2)	(5)	10
Reclassification adjustments included in net income:
Net realized gains on investment securities	(4)	(3)	(14)	(6)
Income tax effect:
Net realized gains on investment securities	2	1	5	2
Reclassification adjustments included in net income, net of tax	(2)	(2)	(9)	(4)
Other comprehensive income (loss), net of tax	(4)	(4)	(14)	6
Comprehensive income	32	425	89	526
Comprehensive income attributable to non-controlling interests	31	23	93	23
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$ 1	$ 402	$ (4)	$ 503

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2015

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

Push Down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on pushdown accounting from the Accounting Standards Codification. The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own pushdown accounting guidance in November 2014. The ASU is effective immediately. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our condensed consolidated financial statements, as we were already in compliance with these amendments.

ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We are currently evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Cloud Computing Software

In April of 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other Internal-Use Software, to provide guidance on a customer’s accounting for fees paid in a cloud computing arrangement (“CCA”). Under the new standard, customers will apply the same criteria as vendors to determine whether a CCA contains a software license or is solely a service contract. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We evaluated the potential impact of adopting this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Fair Value Measurement Disclosures

In May of 2015, the FASB issued ASU 2015-07, Fair Value Measurement, to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. We have a few investments for which fair value is measured using the net asset value per share practical expedient. However, application of this ASU will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of adopting the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements.

We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.

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Investment Securities (Details 2) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Other than Temporary Impairment Losses, Investments		$ 0	$ 0	$ 0	$ 0
minimum disclosure of Unrealized losses on certain available-for-sale securities				1,000,000
Fair Value
Less Than 12 Months		223,000,000		223,000,000		$ 140,000,000
12 Months or Longer		32,000,000		32,000,000		10,000,000
Total		255,000,000		255,000,000		150,000,000
Unrealized Losses
Less Than 12 Months	[1]	(7,000,000)		(7,000,000)		(2,000,000)
12 Months or Longer	[1]	0		0		0
Total		(7,000,000)		(7,000,000)		(2,000,000)
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment		0	0	0	0
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold		0	$ 0	0	$ 0
Bonds
Fair Value
Less Than 12 Months		216,000,000		216,000,000		134,000,000
12 Months or Longer		32,000,000		32,000,000		10,000,000
Total		248,000,000		248,000,000		144,000,000
Unrealized Losses
Less Than 12 Months	[1]	(7,000,000)		(7,000,000)		(2,000,000)
12 Months or Longer	[1]	0		0		0
Total		(7,000,000)		(7,000,000)		(2,000,000)
U.S. government and government sponsored entities
Fair Value
Less Than 12 Months		51,000,000		51,000,000		0
12 Months or Longer		0		0		1,000,000
Total		51,000,000		51,000,000		1,000,000
Unrealized Losses
Less Than 12 Months	[1]	(1,000,000)		(1,000,000)		0
12 Months or Longer	[1]	0		0		0
Total		(1,000,000)		(1,000,000)		0
Obligations of states, municipalities, and political subdivisions
Fair Value
Less Than 12 Months		15,000,000		15,000,000		27,000,000
12 Months or Longer		11,000,000		11,000,000		1,000,000
Total		26,000,000		26,000,000		28,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0		0
12 Months or Longer	[1]	0		0		0
Total		0		0		0
Corporate debt
Fair Value
Less Than 12 Months		107,000,000		107,000,000		36,000,000
12 Months or Longer		14,000,000		14,000,000		6,000,000
Total		121,000,000		121,000,000		42,000,000
Unrealized Losses
Less Than 12 Months	[1]	(6,000,000)		(6,000,000)		(1,000,000)
12 Months or Longer	[1]	0		0		0
Total		(6,000,000)		(6,000,000)		(1,000,000)
Residential mortgage-backed securities (“RMBS”)
Fair Value
Less Than 12 Months		8,000,000		8,000,000		9,000,000
12 Months or Longer		0		0		0
Total		8,000,000		8,000,000		9,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0		0
12 Months or Longer	[1]	0		0		0
Total		0		0		0
Commercial mortgage-backed securities (“CMBS”)
Fair Value
Less Than 12 Months		19,000,000		19,000,000		16,000,000
12 Months or Longer		7,000,000		7,000,000		2,000,000
Total		26,000,000		26,000,000		18,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0		(1,000,000)
12 Months or Longer	[1]	0		0		0
Total		0		0		(1,000,000)
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Fair Value
Less Than 12 Months		16,000,000		16,000,000		46,000,000
12 Months or Longer		0		0		0
Total		16,000,000		16,000,000		46,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0		0
12 Months or Longer	[1]	0		0		0
Total		0		0		0
Preferred stock
Fair Value
Less Than 12 Months		6,000,000		6,000,000		6,000,000
12 Months or Longer		0		0		0
Total		6,000,000		6,000,000		6,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0		0
12 Months or Longer	[1]	0		0		0
Total		0		0		$ 0
Other long-term investments
Fair Value
Less Than 12 Months		1,000,000		1,000,000
12 Months or Longer		0		0
Total		1,000,000		1,000,000
Unrealized Losses
Less Than 12 Months	[1]	0		0
12 Months or Longer	[1]	0		0
Total		$ 0		$ 0

[1] Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

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Income Taxes (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Net deferred tax liabilities	$ 138		$ 156
Effective income tax rate (as a percent)	12.10%	34.70%

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Business and Basis of Presentation Business and Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Schedule of revised condensed consolidated financial statements

We will also correct the prior period segment disclosures presented in our applicable quarterly and annual reports as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

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Segment Information Narrative (Details)	9 Months Ended
	Sep. 30, 2015 state division segment
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment	3
Ownership percentage in joint venture	47.00%
Other
Segment Reporting Information [Line Items]
Number of States with Legacy Operations where Branch Based Personal Lending Ceased	14
Corporate Joint Venture
Segment Reporting Information [Line Items]
Ownership percentage in joint venture	47.00%
Consumer and Insurance Segment
Segment Reporting Information [Line Items]
Number of Operating Segments | division	2
Consumer and Insurance
Segment Reporting Information [Line Items]
Number of States in which Entity Operates	27

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Business and Basis of Presentation (Details)	Sep. 30, 2015
Related Party Transactions
Ownership percentage in joint venture	47.00%
Corporate Joint Venture
Related Party Transactions
Ownership percentage in joint venture	47.00%
Majority Shareholder
Related Party Transactions
Percent of common stock held by related party	58.00%
Affiliates of Fortress or AIG
Related Party Transactions
Percent of common stock held by related party	55.00%
Subsidiaries of American International Group Inc
Related Party Transactions
Percent of common stock held by related party	3.00%

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At September 30, 2015, we had a net deferred tax liability of $138 million, compared to $156 million at December 31, 2014. The decrease in the net deferred tax liability was primarily due to purchase accounting for debt writedown. This decrease was partially offset by a change in our tax accounting method for the valuation of certain assets, which was approved by the Internal Revenue Service (the “IRS”) in August of 2015. The impact to our uncertain tax positions was immaterial.

The effective tax rate for the nine months ended September 30, 2015 was 12.1% compared to 34.7% for the same period in 2014. The effective tax rates for the nine months ended September 30, 2015 and 2014 differed from the federal statutory rates primarily due to the effect of the non-controlling interest in our joint venture.

We are currently under examination of our U.S. Federal tax return for the year 2013 by the IRS. Management believes it has adequately provided for taxes for such year.