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 March 31, 2016

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 May 2, 2016, there were 10,160,021 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	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	67
Item 4.	Controls and Procedures	67
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	68
Item 4.	Mine Safety Disclosures	68
Item 5.	Other Information	68
Item 6.	Exhibits	68
SIGNATURE		69

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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)	March 31, 2016			December 31, 2015
Assets
Cash and cash equivalents	$	365		$	321
Investment securities	621			604
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $3.6 billion in 2016 and 2015)	4,378			4,300
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.6 billion in 2015)	—			1,576
Real estate loans	503			524
Retail sales finance	19			23
Net finance receivables	4,900			6,423
Unearned insurance premium and claim reserves	(245		)	(250		)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $113 million in 2016 and $128 million in 2015)	(211		)	(219		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	4,444			5,954
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015)	776			796
Notes receivable from parent and affiliates	3,775			3,804
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $212 million in 2016 and $282 million in 2015)	225			295
Other assets	286			281
Total assets	$	10,492		$	12,055
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $3.1 billion in 2016 and $5.5 billion in 2015)	$	7,187		$	9,582
Note payable to affiliate	374			—
Insurance claims and policyholder liabilities	228			230
Deferred and accrued taxes	178			103
Other liabilities	266			217
Total liabilities	8,233			10,132
Commitments and contingent liabilities (Note 14)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 and 10,160,020 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	5			5
Additional paid-in capital	769			758
Accumulated other comprehensive loss	(17		)	(24		)
Retained earnings	1,502			1,330
Springleaf Finance Corporation shareholder’s equity	2,259			2,069
Non-controlling interests	—			(146		)
Total shareholder’s equity	2,259			1,923
Total liabilities and shareholder’s equity	$	10,492		$	12,055

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 March 31,
	2016		2015
Interest income:
Finance charges	$	384	$	398
Finance receivables held for sale originated as held for investment	47		4
Total interest income	431		402
Interest expense	156		158
Net interest income	275		244
Provision for finance receivable losses	94		86
Net interest income after provision for finance receivable losses	181		158
Other revenues:
Insurance	39		36
Investment	6		17
Net gain on sale of SpringCastle interests	229		—
Other	40		—
Total other revenues	314		53
Other expenses:
Operating expenses:
Salaries and benefits	97		80
Other operating expenses	77		73
Insurance policy benefits and claims	17		16
Total other expenses	191		169
Income before provision for income taxes	304		42
Provision for income taxes	106		8
Net income	198		34
Net income attributable to non-controlling interests	26		31
Net income attributable to Springleaf Finance Corporation	$	172	$	3

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Net income	$	198		$	34
Other comprehensive income:
Net unrealized gains on non-credit impaired available-for-sale securities	12			5
Foreign currency translation adjustments	—			1
Income tax effect:
Net unrealized gains on non-credit impaired available-for-sale securities	(4		)	(2		)
Other comprehensive income, net of tax, before reclassification adjustments	8			4
Reclassification adjustments included in net income:
Net realized gains on available-for-sale securities	(1		)	(6		)
Income tax effect:
Net realized gains on available-for-sale securities	—			2
Reclassification adjustments included in net income, net of tax	(1		)	(4		)
Other comprehensive income, net of tax	7			—
Comprehensive income	205			34
Comprehensive income attributable to non-controlling interests	26			31
Comprehensive income attributable to Springleaf Finance Corporation	$	179		$	3

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, 2016	$	5	$	758		$	(24	)	$	1,330	$	2,069		$	(146	)	$	1,923
Capital contribution from parent	—		10			—			—		10			—			10
Share-based compensation expense, net of forfeitures	—		1			—			—		1			—			1
Excess tax benefit from share-based compensation	—		1			—			—		1			—			1
Withholding tax on vested RSUs	—		(1		)	—			—		(1		)	—			(1		)
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—			—			—		—			(18		)	(18		)
Sale of equity interests in SpringCastle joint venture	—		—			—			—		—			138			138
Other comprehensive income	—		—			7			—		7			—			7
Net income	—		—			—			172		172			26			198
Balance, March 31, 2016	$	5	$	769		$	(17	)	$	1,502	$	2,259		$	—		$	2,259
Balance, January 1, 2015	$	5	$	740		$	3		$	1,321	$	2,069		$	(188	)	$	1,881
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—			—			—		—			(18		)	(18		)
Net income	—		—			—			3		3			31			34
Balance, March 31, 2015	$	5	$	740		$	3		$	1,324	$	2,072		$	(175	)	$	1,897

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)	Three Months Ended March 31,
	2016			2015
Cash flows from operating activities
Net income	$	198		$	34
Reconciling adjustments:
Provision for finance receivable losses	94			86
Depreciation and amortization	20			17
Deferred income tax charge (benefit)	29			(14		)
Share-based compensation expense, net of forfeitures	1			—
Net gain on sale of SpringCastle interests	(229		)	—
Other	9			(7		)
Cash flows due to changes in:
Other assets and other liabilities	36			72
Insurance claims and policyholder liabilities	(7		)	(2		)
Taxes receivable and payable	47			18
Accrued interest and finance charges	20			7
Restricted cash and cash equivalents not reinvested	1			—
Other, net	1			—
Net cash provided by operating activities	220			211
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(30		)	—
Proceeds on sales of finance receivables held for sale originated as held for investment	—			52
Proceeds from sale of SpringCastle interests	101			—
Cash advances on intercompany notes receivables	(112		)	(28		)
Principal collections on intercompany notes receivables	127			16
Available-for-sale securities purchased	(92		)	(95		)
Trading and other securities purchased	(1		)	(945		)
Available-for-sale securities called, sold, and matured	78			56
Trading and other securities called, sold, and matured	10			1,193
Change in restricted cash and cash equivalents	(5		)	(120		)
Proceeds from sale of real estate owned	2			5
Other, net	4			10
Net cash provided by investing activities	82			144
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	295			1,523
Proceeds from intercompany note payable	370			—
Repayments of long-term debt	(916		)	(315		)
Distributions to joint venture partners	(18		)	(18		)
Excess tax benefit from share-based compensation	1			—
Capital contribution from parent	10			—
Net cash provided by (used for) financing activities	(258		)	1,190

Condensed Consolidated Statements of Cash Flows (Unaudited) (Continued)
(dollars in millions)	Three Months Ended March 31,
	2016		2015
Net change in cash and cash equivalents	44		1,545
Cash and cash equivalents at beginning of period	321		749
Cash and cash equivalents at end of period	$	365	$	2,294
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	$	1,478	$	—
Transfer of finance receivables to real estate owned	$	2	$	2
Net unsettled investment security dispositions	$	—	$	19

See Notes to Condensed Consolidated Financial Statements.

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SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

March 31, 2016

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 OneMain Holdings, Inc. (“OMH”).

At March 31, 2016, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”).

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 owned a 47% equity interest prior to March 31, 2016), 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. To conform to the 2016 presentation, we have reclassified certain items in prior periods, including certain items in prior periods of our condensed consolidated statements of cash flows. 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, 2015 (“2015 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

2. Significant Transactions

SPRINGCASTLE INTERESTS SALE

On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.”

The SpringCastle Joint Venture primarily holds subordinate ownership interests in a securitized loan portfolio (the “SpringCastle Portfolio”), which consists of unsecured loans and loans secured by subordinate residential real estate mortgages and includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in form and substance from the Company’s originated loans. At December 31, 2015, the SpringCastle Portfolio included over 232,000 of acquired loans, representing $1.6 billion in net finance receivables. For the three months ended March 31, 2016 and 2015, income before provision for income taxes of our Acquisitions and Servicing segment (which consists of the SpringCastle Sellers) totaled $279 million ($253 million attributable to SFC) and $64 million ($33 million attributable to SFC), respectively.

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In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million to be paid into an escrow account within 120 days following March 31, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $229 million.

As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless terminated, SFI will remain as servicer of the SpringCastle Portfolio, under the existing servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary.

Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers.

The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, is owned primarily by a private equity fund managed by an affiliate of Fortress. Mr. Edens, Chairman of the board of directors of OMH, also serves as Chairman of the board of directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the board of directors of Fortress. Mr. Jacobs, a member of the board of directors of OMH, also serves as a member of NRZ’s board of directors and Fortress’ board of directors.

The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to this sale.

OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDING, LLC

On November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC (“Independence”), completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for approximately $4.5 billion in cash (the “OneMain Acquisition”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. OMFH is not a subsidiary of SFC and SFC is not a subsidiary of OMFH.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement requires the Branch Sellers to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement.

LENDMARK SALE

On November 12, 2015, OMH and certain subsidiaries of SFC (the “Branch Sellers”) entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103%, plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that has accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark is unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, we transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. At March 31, 2016, the personal loans held for sale totaled approximately $606 million, primarily due to originations, net of charge-offs of personal loans in these branches

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during the past six months. The branches to be sold represent 15% of the branches and 12% of the personal loans held for investment and held for sale of the Company as of March 31, 2016.

Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016.

On May 2, 2016, we completed the Lendmark Sale. See Note 18 for further information on the subsequent closing.

3. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Consolidation

In February of 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 became effective for public business entities for annual periods beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect 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. The amendments to this transition guidance became effective for fiscal years beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

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.

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 amendments in this ASU become effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating the potential impact of the adoption of the ASU on our consolidated financial statements.

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Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for evaluation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments of this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Debt Instruments

In March of 2016, the FASB issued ASU 2016-06, Contingent Puts and Call Options in Debt Instruments, which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. The ASU requires assessing the embedded call (put) options solely in accordance with the four-step decision sequence. The amendment of this ASU becomes effective on a modified retrospective basis for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendment in this ASU becomes effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Technical Corrections and Improvements

In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. As these are technical corrections and improvements only, the company does not believe that this ASU will have a material effect on our consolidated financial statements.

Stock Compensation

In March of 2016, the FASB issued ASU 2016-09, Improvements to Employee Share - Based Payment Accounting, which simplifies the accounting for share-based payment transactions, income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment in this ASU becomes effective on a modified retrospective transition for accounting in tax benefits recognized, retrospectively for accounting related to the presentation of employee taxes paid, prospective for accounting related to recognition of excess tax benefits, and either a prospective or retrospective method for accounting related to presentation of excess employee tax benefits for annual periods,

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and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

We do not believe that any other accounting pronouncements issued during the first quarter of 2016, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

4. Finance Receivables

Our finance receivable types include personal loans, 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 March 31, 2016, $2.5 billion of personal loans, or 58%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 42%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $2.4 billion of personal loans, or 56%, secured by collateral consisting of titled personal property and $1.9 billion, or 44%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2015.

• 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 March 31, 2016, $197 million of real estate loans, or 39%, were secured by first mortgages and $306 million, or 61%, were secured by second mortgages, compared to $202 million of real estate loans, or 39%, secured by first mortgages and $322 million, or 61%, secured by second mortgages at December 31, 2015. 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.

Our finance receivable types also included the SpringCastle Portfolio at December 31, 2015, as defined below:

• SpringCastle Portfolio — included unsecured loans and loans secured by subordinate residential real estate mortgages that were sold on March 31, 2016, in connection with the SpringCastle Interests Sale. The SpringCastle Portfolio included both closed-end accounts and open-end lines of credit. These loans were in a liquidating status and varied in substance and form from our originated loans. Unless terminated, SFI will continue to provide the servicing for these loans, which we service as unsecured loans because the liens are subordinated to superior ranking security interests.

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Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance			Total
March 31, 2016
Gross receivables *	$	5,075		$	—	$	499	$	21		$	5,595
Unearned finance charges and points and fees	(798		)	—		—		(2		)	(800		)
Accrued finance charges	57			—		4		—			61
Deferred origination costs	44			—		—		—			44
Total	$	4,378		$	—	$	503	$	19		$	4,900
December 31, 2015
Gross receivables *	$	5,028		$	1,545	$	520	$	25		$	7,118
Unearned finance charges and points and fees	(833		)	—		—		(2		)	(835		)
Accrued finance charges	60			31		4		—			95
Deferred origination costs	45			—		—		—			45
Total	$	4,300		$	1,576	$	524	$	23		$	6,423

* 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 initial fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — 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. The carrying value of our personal loans totaled $3.6 billion at March 31, 2016 and December 31, 2015 and the carrying value of the SpringCastle Portfolio totaled $1.6 billion at December 31, 2015.

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

(dollars in millions)	March 31, 2016		December 31, 2015
Personal loans	$	1	$	2
SpringCastle Portfolio	—		365
Real estate loans	20		30
Total	$	21	$	397

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (i) the value of the collateral declines significantly; (ii) we believe the borrower will be unable to fulfill the repayment obligations; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans can be suspended if one of the following occurs: (i) the value of the real estate declines significantly below the property’s initial appraised value; (ii) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit can be terminated for delinquency. Accordingly, no reserve has been recorded for the unused lines of credit.

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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 March 31, 2016 and at December 31, 2015 were immaterial. Our personal loans 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 held for investment by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Net finance receivables:
60-89 days past due	$	39	$	—	$	6	$	—	$	45
90-119 days past due	33		—		5		—		38
120-149 days past due	33		—		3		—		36
150-179 days past due	32		—		3		—		35
180 days or more past due	3		—		22		—		25
Total delinquent finance receivables	140		—		39		—		179
Current	4,186		—		447		19		4,652
30-59 days past due	52		—		17		—		69
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Net finance receivables:
60-89 days past due	$	49	$	22	$	18	$	—	$	89
90-119 days past due	41		14		3		—		58
120-149 days past due	34		11		2		1		48
150-179 days past due	31		10		2		—		43
180 days or more past due	3		1		12		—		16
Total delinquent finance receivables	158		58		37		1		254
Current	4,077		1,475		474		22		6,048
30-59 days past due	65		43		13		—		121
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

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 held for investment by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Performing	$	4,277	$	—	$	470	$	19	$	4,766
Nonperforming	101		—		33		—		134
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Performing	$	4,191	$	1,540	$	505	$	22	$	6,258
Nonperforming	109		36		19		1		165
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transaction:

• 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 purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

At December 31, 2015, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased as part of the following transaction:

• SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC - on July 31, 2014 (the “SAC Capital Contribution”), SFC acquired a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), some of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013. On March 31, 2016, we sold the SpringCastle Portfolio in connection with the sale of our equity interest in the SpringCastle Joint Venture.

We report the carrying amount (which initially was the fair value) 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 March 31, 2016 and December 31, 2015, finance receivables held for sale totaled $776 million and $796 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
March 31, 2016
Carrying amount, net of allowance	$	—	$	71	$	71
Outstanding balance	—		132		132
Allowance for purchased credit impaired finance receivable losses	—		8		8
December 31, 2015
Carrying amount, net of allowance	$	223	$	76	$	299
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		7		7

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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
March 31, 2016
Carrying amount	$	52
Outstanding balance	87
December 31, 2015
Carrying amount	$	55
Outstanding balance	89

The allowance for purchased credit impaired finance receivable losses at March 31, 2016 and December 31, 2015, 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 March 31, 2016
Balance at beginning of period	$	422		$	39		$	461
Accretion (a)	(16		)	(2		)	(18		)
Transfer due to finance receivables sold	(399		)	—			(399		)
Disposals of finance receivables (b)	(7		)	(1		)	(8		)
Balance at end of period	$	—		$	36		$	36
Three Months Ended March 31, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(24		)	(3		)	(27		)
Disposals of finance receivables (b)	(12		)	—			(12		)
Balance at end of period	$	505		$	16		$	521

(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 March 31,
	2016		2015
Accretion	$	1	$	2

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

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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
March 31, 2016
TDR gross finance receivables (b)	$	33	$	—	$	199	$	232
TDR net finance receivables	33		—		201		234
Allowance for TDR finance receivable losses	11		—		35		46
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47

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

(dollars in millions)	Personal Loans		Real Estate Loans		Total
March 31, 2016
TDR gross finance receivables	$	2	$	91	$	93
TDR net finance receivables	2		91		93
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94

(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 *		Total
Three Months Ended March 31, 2016
TDR average net receivables	$	32	$	11	$	201	$	244
TDR finance charges recognized	1		—		3		4
Three Months Ended March 31, 2015
TDR average net receivables	$	25	$	11	$	195	$	231
TDR finance charges recognized	1		—		3		4

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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
Three Months Ended March 31, 2016
TDR average net receivables	$	2	$	92	$	94
TDR finance charges recognized	—		1		1
Three Months Ended March 31, 2015
TDR average net receivables	$	—	$	90	$	90
TDR finance charges recognized	—		1		1

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 March 31, 2016
Pre-modification TDR net finance receivables	$	9	$	1	$	4	$	14
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	1	$	3	$	9
Other (b)	3		—		1		4
Total post-modification TDR net finance receivables	$	8	$	1	$	4	$	13
Number of TDR accounts	1,782		157		89		2,028
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables	$	9	$	2	$	4	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	2	$	4	$	11
Other (b)	3		—		—		3
Total post-modification TDR net finance receivables	$	8	$	2	$	4	$	14
Number of TDR accounts	1,854		195		78		2,127

(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 March 31, 2016
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	1	$	1
Number of TDR accounts	128		19		147
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables **	$	—	$	—	$	—
Post-modification TDR net finance receivables **	$	—	$	—	$	—
Number of TDR accounts	—		9		9

* Pre- and post-modification TDR personal loans held for sale for the three months ended March 31, 2016 were less than $1 million and, therefore, are not quantified in the table above.

** Pre- and post-modification TDR real estate loans held for sale for the three months ended March 31, 2015 were less than $1 million and, therefore, are not quantified in the table above.

(b) “Other” modifications primarily include forgiveness of principal or interest.

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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		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended March 31, 2016
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	355		19		20		394
Three Months Ended March 31, 2015
TDR net finance receivables (b) (d)	$	—	$	—	$	1	$	1
Number of TDR accounts	57		10		18		85

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

(dollars in millions)	Real Estate Loans
Three Months Ended March 31, 2016
TDR net finance receivables	$	1
Number of TDR accounts	9
Three Months Ended March 31, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	9

* TDR real estate loans held for sale for the three months ended March 31, 2015 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the table above.

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

(c) TDR SpringCastle Portfolio loans for the three months ended March 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

(d) TDR personal loans and SpringCastle Portfolio loans for the three months ended March 31, 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 March 31, 2016
Balance at beginning of period	$	173		$	4		$	41		$	1		$	219
Provision for finance receivable losses	73			18			3			—			94
Charge-offs	(89		)	(21		)	(2		)	(1		)	(113		)
Recoveries	11			3			1			—			15
Other *	—			(4		)	—			—			(4		)
Balance at end of period	$	168		$	—		$	43		$	—		$	211
Three Months Ended March 31, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	55			27			4			—			86
Charge-offs	(61		)	(30		)	(6		)	(1		)	(98		)
Recoveries	8			3			1			1			13
Balance at end of period	$	132		$	3		$	39		$	1		$	175

* Consists of the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $113 million at March 31, 2016 and $128 million at December 31, 2015. 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 March 31,
	2016		2015
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	7

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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
March 31, 2016
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	157		$	—		$	—		$	—		$	157
Purchased credit impaired finance receivables	—			—			8			—			8
TDR finance receivables	11			—			35			—			46
Total	$	168		$	—		$	43		$	—		$	211
Finance receivables:
Collectively evaluated for impairment	$	4,347		$	—		$	366		$	19		$	4,732
Purchased credit impaired finance receivables	—			—			27			—			27
TDR finance receivables	31			—			110			—			141
Total	$	4,378		$	—		$	503		$	19		$	4,900
Allowance for finance receivable losses as a percentage of finance receivables	3.83		%	—		%	8.52		%	2.91		%	4.31		%
December 31, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	165		$	—		$	—		$	1		$	166
Purchased credit impaired finance receivables	—			—			7			—			7
TDR finance receivables	8			4			34			—			46
Total	$	173		$	4		$	41		$	1		$	219
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			223			28			—			251
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,576		$	524		$	23		$	6,423
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.27		%	7.93		%	3.45		%	3.41		%

6. Finance Receivables Held for Sale

We report finance receivables held for sale of $776 million at March 31, 2016 and $796 million at December 31, 2015, which are carried at the lower of cost or fair value. At March 31, 2016 and December 31, 2015, finance receivables held for sale consisted of personal loans of $606 million and $617 million, respectively, and real estate loans of $170 million and $179 million, respectively. On March 31, 2016, we marked our real estate loans held for sale to fair value and recorded impairments of $2 million in other revenues. See Note 17 for further information on the impairments of our real estate loans held for sale. At December 31, 2015, 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 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 $47 million and $4 million for the three months ended March 31, 2016 and 2015, respectively.

During March of 2016, we transferred $1.5 billion of loans of the SpringCastle Portfolio (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

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receivables for the foreseeable future. We simultaneously sold our interests of these finance receivables held for sale on March 31, 2016 and recorded a net gain in other revenues at the time of sale of $229 million.

We did not have any other material transfer activity to or from finance receivables held for sale during each of the three months ended March 31, 2016 and 2015.

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
March 31, 2016
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	76	$	1	$	—		$	77
Obligations of states, municipalities, and political subdivisions	91		1		—			92
Corporate debt	310		4		(7		)	307
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	70		—		—			70
Commercial mortgage-backed securities (“CMBS”)	47		—		—			47
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	18		—		—			18
Total bonds	612		6		(7		)	611
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	619	$	6	$	(8	)	$	617
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	74		—		—			74
CMBS	44		—		—			44
CDO/ABS	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	604	$	3	$	(16	)	$	591

* 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 March 31, 2016 and December 31, 2015, which is classified as a restricted investment and carried at cost.

As of March 31, 2016 and December 31, 2015, we did not recognize any other-than-temporary impairment non-credit losses on available-for-sale securities 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
March 31, 2016
Bonds:
U.S. government and government sponsored entities	$	30	$	—		$	—	$	—		$	30	$	—
Obligations of states, municipalities, and political subdivisions	19		—			3		—			22		—
Corporate debt	85		(7		)	6		—			91		(7		)
RMBS	16		—			—		—			16		—
CMBS	25		—			5		—			30		—
CDO/ABS	7		—			—		—			7		—
Total bonds	182		(7		)	14		—			196		(7		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	183	$	(7	)	$	20	$	(1	)	$	203	$	(8	)
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)

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

We do not consider the above unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at March 31, 2016, we have no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential impairments. During the three months ended March 31, 2016 and 2015, we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues.

During the three months ended March 31, 2016 and 2015, 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 proceeds 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 March 31,
	2016		2015
Proceeds from sales and redemptions	$	70	$	74
Realized gains	$	1	$	7
Realized losses	—		(1		)
Net realized gains	$	1	$	6

Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2016 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	$	83	$	83
Due after 1 year through 5 years	214		213
Due after 5 years through 10 years	61		60
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	135		135
Total	$	611	$	612

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 at March 31, 2016 and December 31, 2015.

TRADING AND OTHER SECURITIES

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

(dollars in millions)	March 31, 2016		December 31, 2015
Fixed maturity trading and other securities:
Bonds:
Corporate debt	$	1	$	10
Mortgage-backed, asset-backed, and collateralized:
CMBS	2		2
Total *	$	3	$	12

* The fair value of other securities totaled $3 million at March 31, 2016 and $2 million at December 31, 2015.

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

(dollars in millions)	Three Months Ended March 31,
	2016 *		2015
Net unrealized gains (losses) on trading and other securities held at period end	$	—	$	3
Net realized gains (losses) on trading and other securities sold or redeemed	—		—
Total	$	—	$	3

* Net unrealized and realized gains (losses) on trading and other securities were less than $1 million for the three months ended March 31, 2016 and, therefore, are not quantified in the table above.

8. Transactions with Affiliates of Fortress

SUBSERVICING AGREEMENT

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain 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 March 31, 2016 and 2015.

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 March 31, 2016 and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. See Note 2 for further information on this sale. NRZ is managed by an affiliate of Fortress.

9. Related Party Transactions

AFFILIATE LENDING

Notes Receivable from Parent and Affiliates

Note Receivable from SFI. SFC’s note receivable from SFI 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 2016 and does not expect to demand payment from SFI in 2016. The note receivable from SFI totaled $391 million at March 31, 2016 and $389 million at December 31, 2015. Interest receivable on this note totaled $2 million at March 31, 2016 and $1 million at December 31, 2015. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. Interest revenue on the note receivable from SFI totaled $5 million and $2 million, for the three months ended March 31, 2016 and 2015, respectively, which we report in other revenues.

Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, Springleaf Financial Cash Services, Inc. (“CSI”), SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence (the “Independence Demand Note”), whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion. Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On November 12, 2015, Independence borrowed $3.4 billion under the Independence Demand Note.

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At March 31, 2016, the note receivable from Independence totaled $3.4 billion, which included $15 million of interest due to CSI. Interest revenue on the note receivable from Independence totaled $46 million during the three months ended March 31, 2016, which we report in other revenues.

OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At March 31, 2016, no amounts were drawn under the note.

Receivables from Parent and Affiliates

At March 31, 2016 and December 31, 2015, receivables from parent and affiliates totaled $28 million and $9 million, respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, and (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates. Receivables from parent and affiliates at December 31, 2015 are presented net of a payable to SFI of $12 million. Excluding this payable, receivables from parent and affiliates totaled $21 million at December 31, 2015.

Note Payable to Affiliate

On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On January 22, 2016, SFC drew $370 million under the note.

At March 31, 2016, the note payable to OMFH totaled $374 million, which included interest of $2 million due to OMFH. Interest expense on the note payable to OMFH totaled $4 million for the three months ended March 31, 2016. Subsequently, we repaid the note in full on May 2, 2016.

Payables to Parent and Affiliates

At March 31, 2016 and December 31, 2015, payables to parent and affiliates totaled $34 million and $24 million, respectively. At March 31, 2016 and December 31, 2015, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $33 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 March 31, 2016 and December 31, 2015, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

Prior to the SpringCastle Interests Sale, SFI provided servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC, a subsidiary of SFC. At December 31, 2015, SpringCastle Holdings LLC’s payable to SFI totaled $4 million. Subsequent to the SpringCastle Interests Sale, SFI continues to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust.

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 $33 million at March 31, 2016 and $19 million at December 31, 2015.

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

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(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 months ended March 31, 2016 and 2015, SFMC recorded $67 million and $54 million, respectively, of service fee expenses, which are included in other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses.

10. Long-term Debt

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at March 31, 2016 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt			Total
Interest rates (a)	2.41% - 6.50%			1.92% - 2.77%		5.25% - 8.25%			6.00		%
Second quarter 2016	$	—		$	—	$	—		$	—		$	—
Third quarter 2016	—			—		375			—			375
Fourth quarter 2016	—			—		—			—			—
First quarter 2017	—			—		—			—			—
Remainder of 2017	—			—		1,889			—			1,889
2018	—			—		—			—			—
2019	—			—		700			—			700
2020	—			—		300			—			300
2021-2067	—			—		950			350			1,300
Securitizations (b)	2,012			—		—			—			2,012
Revolving conduit facilities (b)	—			1,098		—			—			1,098
Total principal maturities	$	2,012		$	1,098	$	4,214		$	350		$	7,674
Total carrying amount (c)	$	2,003		$	1,098	$	3,914		$	172		$	7,187
Debt issuance costs (d)	$	(9	)	$	—	$	(12	)	$	—		$	(21	)

(a) The interest rates shown are the range of contractual rates in effect at March 31, 2016.

(b) Securitizations and borrowings under revolving conduit facilities 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 and revolving conduit facilities.

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(c) The carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) 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) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which are reported in other assets and are excluded from the table above.

GUARANTY AGREEMENTS

5.25% SFC Notes

On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of March 31, 2016, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes

On December 30, 2013, OMH 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 on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted 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, OMH 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 March 31, 2016, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

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.

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 note 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

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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.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)	March 31, 2016		December 31, 2015
Assets
Cash and cash equivalents	$	1	$	7
Finance receivables:
Personal loans	3,592		3,621
SpringCastle Portfolio	—		1,576
Allowance for finance receivable losses	113		128
Finance receivables held for sale	—		435
Restricted cash and cash equivalents	212		282
Other assets	75		48
Liabilities
Long-term debt	$	3,101	$	5,513
Other liabilities	6		9

Consumer Loan Securitizations

Call of 2013-B Notes. On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million, which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on February 16, 2016, the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption.

Conduit Facilities

Springleaf 2013-VFN1 Trust. On January 15, 2016, we drew $298 million under the variable funding notes issued by the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”).

On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. 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 the 36^th month following the end of the revolving period. As of March 31, 2016, $298 million was outstanding under the notes.

Mill River 2015-VFN1 Trust. On January 15, 2016, we repaid $300 million on the variable funding notes issued by the Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”).

On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million. As of March 31, 2016, $100 million was outstanding under the notes.

Sumner Brook Trust 2013-VFN1. On February 16, 2016, Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, repaid the entire $100 million outstanding principal balance of its variable funding notes. As of March 31, 2016, no amounts were outstanding under the notes.

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Midbrook 2013-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Midbrook Funding Trust 2013-VFN1 to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. 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 the 36^th month following the end of the revolving period. As of March 31, 2016, no amounts were outstanding under the notes.

Whitford Brook 2014-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Whitford Brook Funding Trust 2014-VFN1 to extend the revolving period ending in June 2017 to June 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 the 12^th month following the end of the revolving period. As of March 31, 2016, $200 million was outstanding under the notes.

First Avenue Funding LLC. On March 28, 2016, we amended the note purchase agreement with the First Avenue Funding LLC (“First Avenue”) to extend the revolving period ending in December 2017 to March 2018. Following the 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 the 12 months following the maturity of the last auto loan held by First Avenue. As of March 31, 2016, $250 million was outstanding under the notes.

VIEINTEREST 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 months ended March 31, 2016 totaled $48 million, compared to $38 million for the three months ended March 31, 2015.

DECONSOLIDATED VIES

As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt.

As a result of the sales of the mortgage-backed retained certificates during 2014, we (i) deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt and (ii) established a reserve for sales recourse obligations of $6 million related to these sales. At March 31, 2016, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of March 31, 2016. 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, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2016
Balance at beginning of period	$	(9	)	$	(19	)	$	4	$	(24	)
Other comprehensive income before reclassifications	8			—			—		8
Reclassification adjustments from accumulated other comprehensive income (loss)	(1		)	—			—		(1		)
Balance at end of period	$	(2	)	$	(19	)	$	4	$	(17	)
Three Months Ended March 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive income before reclassifications	3			—			1		4
Reclassification adjustments from accumulated other comprehensive income (loss)	(4		)	—			—		(4		)
Balance at end of period	$	11		$	(13	)	$	5	$	3

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 March 31,
	2016		2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, before taxes	$	1	$	6
Income tax effect	—		(2		)
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, net of taxes	$	1	$	4

13. Income Taxes

At March 31, 2016, we had a net deferred tax liability of $122 million, compared to $89 million at December 31, 2015. The increase in net deferred tax liability of $33 million was primarily due to the impact of the SpringCastle Interests Sale, partially offset by changes in the fair value of our finance receivables.

The effective tax rate for the three months ended March 31, 2016 was 34.9% compared to 19.3% for the same period in 2015. The effective tax rates for the three months ended March 31, 2016 and 2015 differed from the federal statutory rates primarily due to the effects of the non-controlling interest in the previously owned SpringCastle Portfolio. As discussed in Note 2, on March 31, 2016, the Company sold its equity interest in the SpringCastle Portfolio.

We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the Internal Revenue Service. Management believes it has adequately provided for taxes for such years.

The Company’s unrecognized tax positions including interest and penalties totaled $9 million at March 31, 2016 and December 31, 2015, all of which would affect the effective tax rate if recognized. The amount of any change in the balance of uncertain tax positions over the next 12 months is not expected to be material to our consolidated financial statements.

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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

At March 31, 2016, our reserve for sales recourse obligations totaled $15 million, which primarily related to the real estate loan sales in 2014. During the three months ended March 31, 2016 and 2015, we had no repurchase activity and no material activity related to our reserve for sales recourse obligations. At March 31, 2016, there were no material recourse requests with loss exposure that management believes will not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly.

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.

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 March 31,
	2016			2015
Components of net periodic benefit cost - pension plans:
Interest cost	$	4		$	4
Expected return on assets	(4		)	(5		)
Net periodic benefit cost	$	—		$	(1	)

We do not currently fund post retirement benefits.

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16. Segment Information

Our segments coincide with how our businesses are managed. At March 31, 2016, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

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, disability 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 — SFI services the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owned a 47% equity interest. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the sale of our equity interest in the SpringCastle Joint Venture. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include 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. Unless terminated, SFI will continue to provide the servicing for these loans, which we service as unsecured loans because the liens are subordinated to superior ranking security interests.

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. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. OMH used these proceeds to acquire OneMain.

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 had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy 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.

We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3 of our 2015 Annual Report on Form 10-K, except as described below.

Due to the nature of the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using “Segment Accounting Basis,” which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

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We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for the three months ended March 31, 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $54 million for Consumer and Insurance and a decrease in interest expense of $45 million and $9 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
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.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is 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 policy benefits and claims	Directly correlated with a specific segment.

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The “Segment to GAAP Adjustment” column in the following tables primarily consists of:

• Interest income - the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables;

• Interest expense - primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting;

• Provision for finance receivable losses - the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis;

• Other revenues - the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale and realized gains/losses associated with our investment portfolio; and

• Other expenses - the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

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			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2016
Interest income	$	311	$	101	$	15		$	1		$	3		$	431
Interest expense	95		20		13			4			24			156
Provision for finance receivable losses	73		17		2			—			2			94
Net interest income (loss) after provision for finance receivable losses	143		64		—			(3		)	(23		)	181
Net gain on sale of SpringCastle interests	—		229		—			—			—			229
Other revenues *	45		—		(11		)	50			1			85
Other expenses	174		14		7			(4		)	—			191
Income (loss) before provision for (benefit from) income taxes	14		279		(18		)	51			(22		)	304
Income before provision for income taxes attributable to non-controlling interests	—		26		—			—			—			26
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	14	$	253	$	(18	)	$	51		$	(22	)	$	278
Assets	$	5,704	$	101	$	667		$	4,042		$	(22	)	$	10,492

* Other revenues reported in “Other” includes interest income on the Independence Demand Note and on SFC’s note receivable from SFI. See Note 9 for further information on the notes receivable from parent and affiliates.

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(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2015
Interest income	$	254	$	125	$	18		$	2		$	—		$	3		$	402
Interest expense	40		23		60			10			(5		)	30			158
Provision for finance receivable losses	55		27		2			—			—			2			86
Net interest income (loss) after provision for finance receivable losses	159		75		(44		)	(8		)	5			(29		)	158
Other revenues	51		5		3			2			(5		)	(3		)	53
Other expenses	140		16		7			5			—			1			169
Income (loss) before provision for (benefit from) income taxes	70		64		(48		)	(11		)	—			(33		)	42
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	$	70	$	33	$	(48	)	$	(11	)	$	—		$	(33	)	$	11
Assets *	$	4,821	$	1,958	$	3,613		$	1,832		$	—		$	17		$	12,241

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified $32 million of debt issuance costs from other assets to long-term debt as of March 31, 2015.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $216 million at March 31, 2015.

• During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within our segment footnote and have corrected the previously disclosed total assets at March 31, 2015 in the table above.

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
March 31, 2016
Assets
Cash and cash equivalents	$	358	$	7	$	—	$	365	$	365
Investment securities	—		619		2		621		621
Net finance receivables, less allowance for finance receivable losses	—		—		4,912		4,912		4,689
Finance receivables held for sale	—		—		804		804		776
Notes receivable from parent and affiliates	—		3,775		—		3,775		3,775
Restricted cash and cash equivalents	225		—		—		225		225
Other assets:
Commercial mortgage loans	—		—		53		53		53
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		28		—		28		28
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	7,470	$	—	$	7,470	$	7,187
Note payable to affiliate	—		374		—		374		374
Payables to parent and affiliates	—		34		—		34		34
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,204
Finance receivables held for sale	—		—		819		819		796
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24

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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
March 31, 2016
Assets
Cash equivalents in mutual funds	$	129	$	—	$	—	$	129
Cash equivalents in certificates of deposit and commercial paper	—		7		—		7
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		77		—		77
Obligations of states, municipalities, and political subdivisions	—		92		—		92
Corporate debt	—		307		—		307
RMBS	—		70		—		70
CMBS	—		47		—		47
CDO/ABS	—		18		—		18
Total bonds	—		611		—		611
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities *	—		616		1		617
Other securities:
Bonds:
Corporate debt	—		1		—		1
CMBS	—		2		—		2
Total other securities	—		3		—		3
Total investment securities	—		619		1		620
Restricted cash in mutual funds	210		—		—		210
Total	$	339	$	626	$	1	$	966

* 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 March 31, 2016, which is carried at cost.

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	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(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 December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

We had no transfers between Level 1 and Level 2 during the three months ended March 31, 2016.

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The following table presents changes in Level 3 assets measured at fair value on a recurring basis:

			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   March 31, 2016
Investment securities:
Available-for-sale securities:
Other long-term investments	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Total	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Three Months Ended   March 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	—	$	—	$	—		$	4
CMBS	3		—		—		—		—		(3		)	—
Total bonds	7		—		—		—		—		(3		)	4
Other long-term investments	1		—		—		—		—		—			1
Total	$	8	$	—	$	—	$	—	$	—	$	(3	)	$	5

* During the three months ended March 31, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater 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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
RMBS	Discounted cash flows	Spread	693 bps (a)	665 bps (a)
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 (b)	N/A (b)

(a) At March 31, 2016 and December 31, 2015, RMBS consisted of one bond, which was less than $1 million.

(b) Not applicable.

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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, 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
March 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	170	$	170
Real estate owned	—		—		10		10
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	188	$	188
December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	19	$	19

* The fair value information presented in the table 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 March 31,
	2016		2015
Assets
Finance receivables held for sale	$	2	$	—
Real estate owned	1		1
Commercial mortgage loans *	1		—
Total	$	4	$	1

* Net impairment charges recorded on commercial mortgage loans for the three months ended March 31, 2015 was less than $1 million and, therefore, is not quantified in the table above.

In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in our Real Estate segment to their fair value during the first quarter of 2016 and recorded the writedowns in other revenues.

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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 months ended March 31, 2016 and 2015 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 months ended March 31, 2016 and 2015 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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
Finance receivables held for sale	Income approach	National market conditions Operating performance	N/A*	—
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

Our unit of account is the mutual fund, which is measured at net asset value.

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 other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer

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restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative.

The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, 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 limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

Finance Receivables Held for Sale

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

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

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.

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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 March 31, 2016, we had no debt carried at fair value under the fair value option.

We estimate the fair values associated with variable rate revolving lines of credit to be equal to par.

Payables to Parent and Affiliates

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

18. Subsequent Events

SFC’S OFFERING OF SENIOR NOTES

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 under an Indenture dated as of December 3, 2014 (the “Base Indenture”), as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis.

SFC used a portion of the proceeds from the offering to repurchase approximately $600 million aggregate principal amount of its existing senior notes that mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased notes in the offering. SFC intends to use the remaining net proceeds for general corporate purposes, which may include further debt repurchases and repayments.

The notes will mature on December 15, 2020 and bear interest at a rate of 8.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2016. The notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are guaranteed by OMH and will not be guaranteed by any of SFC’s subsidiaries or any other party. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries.

The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund.

The Indenture contains covenants that, among other things (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them occur, would permit or require the principal of and accrued interest on the notes to become, or to be declared, due and payable.

LENDMARK SALE

On May 2, 2016, pursuant to the Purchase and Sale Agreement, dated as of November 12, 2015, by and between OneMain Holdings, Inc., certain of our subsidiaries and Lendmark and as required by our previously disclosed DOJ Settlement Agreement, we completed the sale of 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such branches to Lendmark for an aggregate cash purchase price of $624 million. Such sale was effective as of April 30, 2016, and included the sale to Lendmark of personal loans with an unpaid principal balance as of March 31, 2016, of $600 million. OMH has entered into a Transition Services Agreement with Lendmark, and OMH’s and our activities will remain subject to the oversight of the Monitoring Trustee appointed by the Court pursuant to the DOJ Settlement Agreement until the expiration of the Transition Services Agreement. Although we and OMH continue to take such steps as we believe are necessary to comply with the terms of the DOJ Settlement Agreement, no assurance can be given that we will not incur fines or penalties associated with OMH’s or our activities pursuant to the Transition Services Agreement or OMH’s or our efforts to comply with the terms of the DOJ Settlement Agreement.

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On May 2, 2016, SFC used a portion of the proceeds from the Lendmark Sale to repay, in full, its revolving demand note with OMFH, which totaled $376 million (including interest payable of $6 million).

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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	46
Overview	48
Recent Developments and Outlook	49
Results of Operations	50
Segment Results	54
Credit Quality	59
Liquidity and Capital Resources	61
Off-Balance Sheet Arrangements	65
Critical Accounting Policies and Estimates	65
Recent Accounting Pronouncements	65
Seasonality	65
Glossary of Terms	66

Forward-Looking Statements    

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent only management’s current beliefs regarding future events. By their nature, forward-looking statements involve inherent risks, uncertainties and other important factors that may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements that speak only as of the date they were made. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events. Forward-looking statements include, without limitation, statements concerning future plans, objectives, goals, projections, strategies, events or performance, and underlying assumptions and other statements related thereto. Statements preceded by, followed by or that otherwise include the words “anticipates,” “appears,” “are likely,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects” and similar expressions or future or conditional verbs such as “would,” “should,” “could,” “may,” or “will,” are intended to identify forward-looking statements. Important factors that could cause actual results, performance or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following:

• various risks relating to the sale of branches to Lendmark Financial Services, LLC (the “Lendmark Sale”) in connection with the previously disclosed settlement with the U.S. Department of Justice (the “DOJ”);

• various uncertainties and risks in connection with the OneMain Acquisition which may result in an adverse impact on us;

• 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, cyber security breaches, or other events disrupting business or commerce;

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• 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 or 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, including us), 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;

• 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 representation or warranty made in connection with such transactions;

• the costs and effects of any actual or alleged violations of any federal, state or local laws, rules or regulations, including any litigation associated therewith, any impact to our business operations, reputation, financial position, results of operations or cash flows arising therefrom, any impact to our relationships with lenders, investors or other third parties attributable thereto, and the costs and effects of any breach of any representation, warranty or covenant under any of our contractual arrangements, including indentures or other financing arrangements or contracts, as a result of any such violation;

• the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority and any litigation associated therewith;

• 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;

• the effects of any downgrade of our debt ratings by credit rating agencies, which could have a negative impact on our cost of and/or access to capital;

• 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 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;

• any failure or inability to achieve the SpringCastle Portfolio performance requirements set forth in the SpringCastle Interests Sale purchase agreement; and

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

We also direct readers to other risks and uncertainties discussed in other documents we file with the SEC.

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 branch-based consumer finance company providing personal loans primarily to non-prime customers through its network of over 800 branch offices in 27 states as of March 31, 2016 and on a centralized basis as part of its centralized operations and our iLoan platform. We also write credit and non-credit insurance policies covering our customers and the property pledged as collateral for our personal loans.

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 March 31, 2016, we had over 1.0 million personal loans, representing $5.0 billion of net finance receivables (including personal loans held for sale of $606 million). At March 31, 2016, $2.5 billion, or 58%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 42%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $2.4 billion of personal loans, or 56%, secured by collateral consisting of titled personal property and $1.9 billion, or 44%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2015.

• Insurance Products — We offer our customers credit insurance (life insurance, disability 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 Life Insurance Co. (“Merit”) and Yosemite Insurance Company (“Yosemite”). We also offer auto warranty membership plans of an unaffiliated company as an ancillary product.

Our core products also included the SpringCastle Portfolio at December 31, 2015, as described below:

• SpringCastle Portfolio —SFI services the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owned a 47% equity interest. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the SpringCastle Interests Sale. These loans consisted of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. These loans were in a liquidating status and varied in substance and form from our originated loans. Unless terminated, SFI will continue to provide the servicing for these loans, which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests.

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. Our first lien mortgages are serviced by third-party servicers, and we continue to provide servicing for our second lien mortgages (home equity lines of credit). At March 31, 2016, we had $503 million of real estate loans held for investment, of which $197 million, or 39%, were secured by first mortgages and $306 million, or 61%, were secured by second mortgages, compared to $202 million of real estate loans, or 39%, secured by first mortgages and $322 million, or 61%, secured by second mortgages at December 31, 2015. Real estate

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loans held for sale totaled $170 million and $179 million at March 31, 2016 and December 31, 2015, respectively, 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 March 31, 2016, we had three operating segments:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

See Note 16 of the Notes to Condensed Consolidated Financial Statements for more information about our segments.

Recent Developments and Outlook    

SPRINGCASTLE INTERESTS SALE

On March 31, 2016, the SpringCastle Sellers, wholly owned subsidiaries of OMH, entered into a purchase agreement with the SpringCastle Buyers. Pursuant to the purchase agreement, SpringCastle Holdings sold its 47% limited liability company interests in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million.

See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information on the SpringCastle Interests Sale.

ONEMAIN ACQUISITION

On November 15, 2015, OMH completed its acquisition of OMFH for approximately $4.5 billion in cash. As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH.

On November 12, 2015, in connection with the closing of the OneMain Acquisition, SFC’s wholly owned subsidiary, CSI, entered into the Independence Demand Note with Independence, whereby CSI provided Independence with $3.4 billion cash pursuant to the terms of the Independence Demand Note. See Note 9 of the Notes to Condensed Consolidated Financial Statements for further information regarding the Independence Demand Note and other related party agreements with OMFH.

Although management intends for Springleaf and OneMain to become an integrated operation, the two operations will initially be separately maintained under the Springleaf and OneMain brands, with the expectation of migrating to the OneMain brand.

LENDMARK SALE

On November 12, 2015, the Branch Sellers entered into the Lendmark Sale. The Springleaf branches to be sold represent 15% of our branches and approximately $606 million, or 12%, of our personal loans held for investment and held for sale as of March 31, 2016.

On May 2, 2016, the Branch Sellers sold the Springleaf branches to Lendmark for an aggregate cash purchase price of $624 million. On this date, SFC used a portion of the proceeds from the Lendmark Sale to repay, in full, its revolving demand note with OMFH, which totaled $376 million (including interest payable of $6 million) on May 2, 2016. See Note 2 and Note 18 of the Notes to Condensed Consolidated Financial Statements for further information on the Lendmark Sale.

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

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underwriting practices and ongoing collection efforts. We also continue to see growth in the volume of personal loan originations driven by the 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.

In addition, with an experienced management team, 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 operating segments is provided under “Segment Results.”

(dollars in millions)	Three Months Ended March 31,
	2016		2015
Interest income	$	431	$	402
Interest expense	156		158
Provision for finance receivable losses	94		86
Net interest income after provision for finance receivable losses	181		158
Net gain on sale of SpringCastle interests	229		—
Other revenues	85		53
Other expenses	191		169
Income before provision for income taxes	304		42
Provision for income taxes	106		8
Net income	198		34
Net income attributable to non-controlling interests	26		31
Net income attributable to Springleaf Finance Corporation	$	172	$	3

Comparison of Consolidated Results for Three Months Ended March 31, 2016 and 2015

Interest income increased for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

(dollars in millions)
Three Months Ended March 31, 2016 compared to 2015
Decrease in average net receivables	$	(1	)
Decrease in yield	(16		)
Increase in number of days in 2016	3
Increase in interest income on finance receivables held for sale	43
Total	$	29

• Average net receivablesdecreased for the three months ended March 31, 2016 primarily due to (i) the liquidating status of the previously owned SpringCastle Portfolio, (ii) the transfer of $608 million of our personal loans to finance receivables held for sale on September 30, 2015 as part of OMH’s initiative to close the OneMain Acquisition, and (iii) our liquidating real estate loan portfolio. This decrease was partially offset by higher personal loan average net receivables resulting from (i) our continued focus on personal loan originations through our branch network and centralized operations and (ii) the continued growth of our auto loan product.

• Yielddecreased for the three months ended March 31, 2016 primarily due to (i) the continued growth of our auto loan product, which generally has lower yields and (ii) a decrease in yield on our liquidating real estate loan portfolio due to a higher proportion of TDR real estate loans.

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• Interest income on finance receivables held for saleincreased for the three months ended March 31, 2016 primarily due to higher average finance receivables held for sale during the 2016 period resulting from the transfer of $608 million of our personal loans to held for sale on September 30, 2015.

Interest expense decreased for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

(dollars in millions)
Three Months Ended March 31, 2016 compared to 2015
Increase in average debt	$	9
Decrease in weighted average interest rate	(15		)
Interest expense on note payable to affiliate	4
Total	$	(2	)

• Average debtincreased for the three months ended March 31, 2016 primarily due to additional borrowings under our conduit facilities and higher average debt pursuant to our consumer securitization transactions during the 2016 period. See Note 11 of the Notes to Condensed Consolidated Financial Statements for further information on our consumer loan securitization transactions and borrowings under our conduit facilities.

• Weighted average interest rate on our debtdecreased for the three months ended March 31, 2016 primarily due to additional borrowings under our conduit facilities, which generally have lower interest rates.

• Interest expense on note payable to affiliate resulted from a revolving demand note agreement between SFC and OMFH, entered into on December 1, 2015. See Note 9 of the Notes to Condensed Consolidated Financial Statements for further information on this note.

Provision for finance receivable losses increased$8 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to the net of the following:

• Net charge-offs increased for the three months ended March 31, 2016 primarily due to higher net charge-offs on our personal loans reflecting (i) growth in these personal loans during the past 12 months and (ii) a higher personal loan delinquency ratio at March 31, 2016. This increase was partially offset by (i) lower net charge-offs on the previously owned SpringCastle Portfolio reflecting the improved central servicing performance as the acquired portfolio matured under our ownership and (ii) lower net charge-offs on our real estate loans reflecting the liquidating status of the real estate loan portfolio.

• Allowance requirements on our auto loan product decreased for the three months ended March 31, 2016, as we now have a full year of historical data reflected in the allowance model, in addition to using delinquency roll rates from a proxy hard-secured portfolio.

Net gain on sale of SpringCastle interests of $229 million for the three months ended March 31, 2016 reflected the net gain associated with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information on the sale.

Other revenues increased$32 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to the net of the following: (i) increase in interest income on notes receivable from parent and affiliates of $49 million reflecting interest income on the Independence Demand Note during the 2016 period and higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during the 2016 period to fund the operations of its subsidiaries and (ii) decrease in investment revenues of $11 million primarily due to lower realized gains on the sale of investment securities and a decrease in invested assets.

Other expenses increased$22 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to the following:

• Salaries and benefitsincreased$17 million for the three months ended March 31, 2016 primarily due to higher salary accruals resulting from an increase in the number of employees.

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• Other operating expensesincreased$4 million for the three months ended March 31, 2016 primarily due to (i) higher advertising expenses due to increased focus on e-commerce and increased direct mailings to pre-approved customers and (ii) higher information technology expenses. The increase in other operating expenses was partially offset by a $6 million reduction in reserves related to estimated Property Protection Insurance claims, which we believe will have minimal loss contingencies.

Provision for income taxes totaled $106 million for the three months ended March 31, 2016 compared to $8 million for the same period in 2015. The effective tax rate for the three months ended March 31, 2016 was 34.9% compared to 19.3% for the same period in 2015. The effective tax rates for the three months ended March 31, 2016 and 2015 differed from the federal statutory rates primarily due to the effects of the non-controlling interest in the previously owned SpringCastle Portfolio. As discussed in Note 2 of the Notes to Condensed Consolidated Financial Statements, on March 31, 2016, the Company sold its equity interest in the SpringCastle Portfolio.

Non-GAAP Financial Measures

We report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. See Note 16 of the Notes to Condensed Consolidated Financial Statements for a complete discussion of our segment accounting. We believe the Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

In addition, management uses pretax core earnings, a non-GAAP financial measure, as a key performance measure in evaluating the performance of our Core Consumer Operations. Pretax core earnings represents our income before provision for income taxes on a Segment Accounting Basis and excludes results of operations from our Non-Core Portfolio (Real Estate segment) and other non-core, non-originating legacy operations, net gain on sale of SpringCastle interests related to Core Consumer Operations, losses resulting from accelerated long-term repayment and repurchases of long-term debt related to Core Consumer Operations, SpringCastle transaction costs, and results of operations attributable to non-controlling interests. Pretax core earnings provides us with a key measure of our Core Consumer Operations’ performance and assists us in comparing its performance on an alternative 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.

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The reconciliations of (i) income before provision for income taxes on GAAP basis (purchase accounting) to the same amount under a Segment Accounting Basis and (ii) income before provision for income taxes on a Segment Accounting Basis to pretax core earnings were as follows:

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Income before provision for income taxes - GAAP basis	$	304		$	42
Adjustments:
Interest income (a)	(3		)	(3		)
Interest expense (b)	24			30
Provision for finance receivable losses (c)	2			2
Repurchases and repayments of long-term debt (d)	1			—
Amortization of other intangible assets (e)	—			1
Other (f)	(2		)	3
Income before provision for income taxes - Segment Accounting Basis	326			75
Adjustments:
Pretax operating loss - Non-Core Portfolio Operations	18			48
Pretax operating (income) loss - Other non-core/non-originating legacy operations	(51		)	11
Net gain on sale of SpringCastle interests	(229		)	—
Net loss from accelerated repayment/repurchase of debt - Core Consumer Operations	2			—
SpringCastle transaction costs	1			—
Operating income attributable to non-controlling interests	(26		)	(31		)
Pretax core earnings (non-GAAP)	$	41		$	103

(a) Interest income adjustments consist of: (i) the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and (ii) the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables.

Components of interest income adjustments consisted of:

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Accretion of net discount applied to non-credit impaired net finance receivables	$	(3	)	$	(3	)

(b) Interest expense adjustments primarily include the accretion of the net discount applied to our long term debt as part of purchase accounting.

Components of interest expense adjustments were as follows:

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Accretion of net discount applied to long-term debt	$	25		$	30
Elimination of accretion or amortization of historical discounts, premiums, commissions, and fees	(1		)	—
Total	$	24		$	30

(c) Provision for finance receivable losses consists of the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis.

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

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Allowance for finance receivable losses adjustments	$	3		$	4
Net charge-offs	(1		)	(2		)
Total	$	2		$	2

(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) Amortization of other intangible assets reflects the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

(f) “Other” items reflect differences between Segment Accounting Basis and GAAP 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.

Segment Results    

See Note 16 of the Notes to Condensed Consolidated Financial Statements for a description of our segments. Management considers the Consumer and Insurance segment and Acquisitions and Servicing segment as our Core Consumer Operations and the Real Estate segment as our Non-Core Portfolio. As a result of the Fortress Acquisition, we have applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance. See Note 16 of the Notes to Condensed Consolidated Financial Statements for reconciliations of segment totals to condensed consolidated financial statement amounts and for further discussion of the differences in our Segment Accounting Basis and GAAP.

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We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for the three months ended March 31, 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $54 million for Consumer and Insurance and a decrease in interest expense of $45 million and $9 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the period listed below:
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
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.
Other revenues	Directly correlated with a specific segment, except for gains and losses on foreign currency exchange, which 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 policy benefits and claims	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 and selected financial statistics for Consumer and Insurance (which are reported on a Segment Accounting Basis) and Acquisitions and Servicing are presented in the table below on an aggregate basis:

(dollars in millions)	At or for the Three Months Ended March 31,
	2016			2015
Interest income	$	412		$	379
Interest expense	115			63
Provision for finance receivable losses	90			82
Net interest income after provision for finance receivable losses	207			234
Net gain on sale of SpringCastle interests	229			—
Other revenues	45			56
Other expenses	188			156
Pretax operating income	293			134
Pretax operating income attributable to non-controlling interests	26			31
Pretax operating income attributable to Springleaf Finance Corporation	$	267		$	103
Consumer and Insurance
Finance receivables held for investment:
Net finance receivables	$	4,365		$	3,861
Number of accounts	880,116			898,617
TDR finance receivables	$	31		$	26
Allowance for finance receivable losses - TDR	$	10		$	3
Finance receivables held for sale:
Net finance receivables	$	606		$	—
Number of accounts	143,254			—
Finance receivables held for investment and held for sale:
Average net receivables	$	4,926		$	3,799
Yield	25.47		%	26.90		%
Gross charge-off ratio	7.20		%	6.40		%
Recovery ratio	(0.85		)%	(0.78		)%
Charge-off ratio	6.35		%	5.62		%
Delinquency ratio	2.76		%	2.51		%
Origination volume	$	943		$	860
Number of accounts originated	154,759			155,523
Acquisitions and Servicing
Finance receivables held for investment:
Net finance receivables	$	—		$	1,868
Number of accounts	—			264,830
Average net receivables	1,529			1,923
Yield	26.17		%	26.34		%
Net charge-off ratio	4.65		%	5.43		%
Delinquency ratio	—		%	4.22		%

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Comparison of Pretax Operating Results for Three Months EndedMarch 31, 2016 and 2015

Interest income increased$33 million for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

• Interest income — Consumer and Insuranceincreased$57 million for the three months ended March 31, 2016 due to the following:

◦ Finance chargesincreased$15 million for the three months ended March 31, 2016 primarily due to the net of the following:

▪ Average net receivables increased for the three months ended March 31, 2016 primarily due to increased originations on our personal loans resulting from our continued focus on personal loans, including our auto loan product. At March 31, 2016, we had nearly 89,000 auto loans totaling $1.0 billion compared to nearly 34,000 auto loans totaling $415 million at March 31, 2015.

▪ Yield decreased for the three months ended March 31, 2016 primarily due to the higher proportion of auto loan product, which generally has lower yields.

◦ Interest income on finance receivables held for sale of $42 million for the three months ended March 31, 2016 resulted from the transfer of personal loans to finance receivables held for sale on September 30, 2015.

• Interest income — Acquisitions and Servicingdecreased$24 million for the three months ended March 31, 2016 primarily due to lower average net receivables reflecting the liquidating status of the previously owned SpringCastle Portfolio.

Interest expense increased$52 million for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

• Interest expense — Consumer and Insuranceincreased$55 million for the three months ended March 31, 2016 primarily due to a change in the methodology of allocating interest expense, as previously described in the allocation methodologies table.

• Interest expense — Acquisitions and Servicingdecreased$3 million for the three months ended March 31, 2016 primarily due to the liquidating status of the previously owned SpringCastle Portfolio.

Provision for finance receivable losses increased$8 million for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

• Provision for finance receivable losses — Consumer and Insuranceincreased$18 million for the three months ended March 31, 2016 primarily due to higher net charge-offs on our personal loans during the 2016 period reflecting (i) growth in our personal loans during the past 12 months and (ii) a higher personal loan delinquency ratio at March 31, 2016. This increase was partially offset by a decrease in allowance requirements on our auto loan product, as we now have a full year of historical data reflected in the allowance model, in addition to using delinquency roll rates from a proxy hard-secured portfolio.

• Provision for finance receivable losses — Acquisitions and Servicingdecreased$10 million for the three months ended March 31, 2016 primarily due to lower net charge-offs on the previously owned SpringCastle Portfolio reflecting improvements in servicing of the acquired portfolio and its liquidating status.

Net gain on sale of SpringCastle interests of $229 million for the three months ended March 31, 2016 reflected the net gain associated with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 of the Notes to Condensed Consolidated Financial Statements for further information on the sale.

Other revenues decreased $11 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to a decrease in investment revenues of $12 million resulting from lower realized gains on the sale of investment securities and lower investment income generated from an investment in SpringCastle debt, which is eliminated in our consolidating operating results.

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Other expenses increased$32 million for the three months ended March 31, 2016 when compared to the same period in 2015 due to the net of the following:

• Other expenses — Consumer and Insuranceincreased$34 million for the three months ended March 31, 2016 primarily due to the following:

◦ Salaries and benefitsincreased $15 million for the three months ended March 31, 2016 primarily due to higher variable compensation reflecting increased originations of personal loans and increased staffing.

◦ Other operating expensesincreased $18 million for the three months ended March 31, 2016 primarily due to (i) higher advertising expenses reflecting our increased focus on e-commerce, (ii) higher information technology expenses, (iv) higher occupancy costs resulting from increased rent expense on our administrative offices and servicing facilities, and (v) higher credit and collection related costs reflecting growth in personal loans, including our auto loan product.

• Other expenses — Acquisitions and Servicingdecreased$2 million for the three months ended March 31, 2016 primarily due to decreased credit and collection related costs reflecting lower portfolio servicing costs due to the liquidating status of the previously owned SpringCastle Portfolio.

NON-CORE PORTFOLIO

Pretax operating results and selected financial statistics for Real Estate (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)	At or for the Three Months Ended March 31,
	2016			2015
Interest income	$	15		$	18
Interest expense (a)	13			60
Provision for finance receivable losses	2			2
Net interest loss after provision for finance receivable losses	—			(44		)
Other revenues (b)	(11		)	3
Other expenses	7			7
Pretax operating loss	$	(18	)	$	(48	)
Finance receivables held for investment:
Net finance receivables	$	542		$	646
Number of accounts	17,550			21,257
TDR finance receivables	$	159		$	159
Allowance for finance receivable losses - TDR	$	57		$	55
Average net receivables	$	554		$	660
Yield	8.73		%	9.24		%
Loss ratio	3.00		%	4.66		%
Delinquency ratio	7.82		%	7.21		%
Finance receivables held for sale:
Net finance receivables	$	170		$	194
Number of accounts	3,048			3,472
TDR finance receivables	$	185		$	191

(a) Interest expense decreased$47 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to a change in the methodology of allocating interest expense, as previously described in the allocation methodologies table.

(b) Other revenues decreased$14 million for the three months ended March 31, 2016 when compared to the same period in 2015 primarily due to the following: (i) impairments of $7 million recognized on our real estate loans held for sale during the 2016 period and (ii)

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decrease in investment revenues of $5 million, as the prior period reflected higher investment income generated from investing the proceeds of the 2014 real estate loan sales.

OTHER

“Other” consists of our other non-core, 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: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy 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.

Pretax operating results of the Other components (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)	Three Months Ended March 31,
	2016			2015
Interest income	$	1		$	2
Interest expense (a)	4			10
Net interest loss after provision for finance receivable losses	(3		)	(8		)
Other revenues (b)	50			2
Other expenses	(4		)	5
Pretax operating income (loss)	$	51		$	(11	)

(a) Interest expense for the three months ended March 31, 2016 when compared to the same period in 2015 reflected a change in the methodology of allocating interest expense, as previously described in the allocation methodologies table.

(b) Other revenues for the three months ended March 31, 2016 included (i) interest income on the Independence Demand Note and (ii) higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during the 2016 period to fund the operations of its subsidiaries. See Note 9 of the Notes to Condensed Consolidated Financial Statements for further information on the Independence Demand Note.

Net finance receivables of the Other components (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)	March 31,
	2016		2015
Net finance receivables:
Personal loans	$	15	$	25
Retail sales finance	20		41
Total	$	35	$	66

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.

We may offer borrowers the opportunity to defer their personal loan by extending the date on which any payment is due. We may require a partial payment prior to granting such a deferral. Deferments must bring the account contractually current or due for the current month’s payment. Borrowers are generally limited to two deferments in a rolling 12-month period unless it is determined that an exception is warranted.

In addition to deferrals, we may also offer borrowers the opportunity to cure delinquent accounts when a customer demonstrates that he or she has rehabilitated from a temporary event that caused the delinquency. An account may be brought to current status after the cause for delinquency has been identified and remediated and the customer has made two consecutive

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qualified payments; however, no principal or interest amounts are forgiven or credited. Independent risk management approval is required for all cures.

When a loan is 60 days past due, we transfer the loan to one of our centralized service centers for account servicing and collection processing. This process includes assessing previous collection efforts, contacting the customer to determine whether the customer’s financial problems are temporary, reviewing the collateral securing the loan and developing a plan to maintain contact with the customer to increase the likelihood of future payments. Certain non-routine collection activities may include litigation, repossession of collateral, or filing involuntary bankruptcy petitions.

We may renew a delinquent personal loan if the related borrower meets current underwriting criteria and we determine that it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new personal loan. We employ the same credit risk underwriting process that we would use for an application from a new customer to determine whether to grant a renewal of a personal loan, regardless of whether the borrower’s account is current or delinquent.

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. Although we engage in collection activities well before an account is 60 days past due, we consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. We record an allowance for loan losses to cover expected losses on our finance receivables.

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
March 31, 2016
Net finance receivables:
60-89 days past due	$	39	$	—	$	6	$	—	$	45
90-119 days past due	33		—		5		—		38
120-149 days past due	33		—		3		—		36
150-179 days past due	32		—		3		—		35
180 days or more past due	3		—		22		—		25
Total delinquent finance receivables	140		—		39		—		179
Current	4,186		—		447		19		4,652
30-59 days past due	52		—		17		—		69
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Net finance receivables:
60-89 days past due	$	49	$	22	$	18	$	—	$	89
90-119 days past due	41		14		3		—		58
120-149 days past due	34		11		2		1		48
150-179 days past due	31		10		2		—		43
180 days or more past due	3		1		12		—		16
Total delinquent finance receivables	158		58		37		1		254
Current	4,077		1,475		474		22		6,048
30-59 days past due	65		43		13		—		121
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

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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
March 31, 2016
TDR net finance receivables	$	33	$	—	$	201	$	234
Allowance for TDR finance receivable losses	$	11	$	—	$	35	$	46
Number of TDR accounts	10,949		—		3,490		14,439
December 31, 2015
TDR net finance receivables	$	31	$	13	$	201	$	245
Allowance for TDR finance receivable losses	$	9	$	4	$	34	$	47
Number of TDR accounts	10,542		1,656		3,506		15,704

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

(dollars in millions)	Personal Loans		Real Estate Loans		Total
March 31, 2016
TDR net finance receivables	$	2	$	91	$	93
Number of TDR accounts	746		1,294		2,040
December 31, 2015
TDR net finance receivables	$	2	$	92	$	94
Number of TDR accounts	738		1,322		2,060

Liquidity and Capital Resources    

SOURCES OF FUNDS

We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, securitization debt, borrowings from conduit facilities, unsecured debt and equity, and may also utilize other corporate debt facilities in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries.

SFC’s Offering of Senior Notes

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 under the Indenture, pursuant to which OMH provided a guarantee of the notes on an unsecured basis. SFC used a portion of the proceeds from the offering to repurchase approximately $600 million aggregate principal amount of its existing senior notes that mature in 2017. See Note 18 of the Notes to Condensed Consolidated Financial Statements for further information on this offering.

Securitizations and Borrowings from Revolving Conduit Facilities

During the three months ended March 31, 2016, we (i) exercised our right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B and (ii) deconsolidated the previously issued securitized interests of the SpringCastle Funding Asset-backed Notes 2014-A. See “Structured Financings” for further information on each of our securitization transactions.

During the three months ended March 31, 2016, we (i) extended the revolving periods on four existing conduits and (ii) amended three existing conduits to change the maximum principal balances. Net repayments under the notes of our existing conduits totaled $103 million for the three months ended March 31, 2016.

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See Note 11 of the Notes to Condensed Consolidated Financial Statements for further information on our personal loan securitizations and conduit facilities.

Subsequent to March 31, 2016, we completed the following transactions:

• On April 1, 2016, we drew $100 million under the variable funding notes issued by the Springleaf 2013-VFN1 Trust.

• On April 12, 2016, we repaid the entire $100 million outstanding principal balance of the variable funding notes issued by the Mill River 2015-VFN1 Trust.

• On April 14, 2016, we repaid $248 million of the outstanding principal balance of the variable funding notes issued by the Springleaf 2013-VFN1 Trust.

• On May 3, 2016, we repaid the entire $150 million outstanding principal balance of the variable funding notes issued by the Springleaf 2013-VFN1 Trust.

USES OF FUNDS

Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims and, to a lesser extent, expenditures relating to upgrading and monitoring our technology platform, risk systems, and branch locations.

At March 31, 2016, we had $365 million of cash and cash equivalents, and during the three months ended March 31, 2016, SFC generated net income of $172 million. Our net cash inflow from operating and investing activities totaled $302 millionfor the three months ended March 31, 2016. At March 31, 2016, our remaining scheduled principal and interest payments for 2016 on our existing debt (excluding securitizations and borrowings under revolving conduit facilities) totaled $647 million. As of March 31, 2016, we had $1.4 billion UPB of unencumbered personal loans (including $604 million held for sale) and $775 million UPB of unencumbered real estate loans (including $232 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 12 months.

We have previously purchased portions of our unsecured indebtedness, and we may elect to purchase additional portions of our unsecured indebtedness in the future. Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine.

LIQUIDITY

Operating Activities

Net cash provided by operations of $220 million for the three months ended March 31, 2016 reflected net income of $198 million, the impact of non-cash items, and a favorable change in working capital of $98 million. Net cash provided by operations of $211 million for the three months ended March 31, 2015 reflected net income of $34 million, the impact of non-cash items, and a favorable change in working capital of $95 million.

Investing Activities

Net cash provided by investing activities of $82 million for the three months ended March 31, 2016 was primarily due to the SpringCastle Interests Sale. Net cash provided by investing activities of $144 million for the three months ended March 31, 2015 reflected net sales of investment securities during 2015.

Financing Activities

Net cash used for financing activities of $258 million for the three months ended March 31, 2016 was primarily due to net repayments of long-term debt. Net cash provided by financing activities of $1.2 billion for the three months ended March 31, 2015 reflected the debt issuance associated with the 2015-A securitization.

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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 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 pay as dividends without prior notice to the Indiana Department of Insurance (the “Indiana DOI”). The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12-month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12-month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends.” Merit and Yosemite did not pay any dividends during the first quarter of 2016.

OUR DEBT AGREEMENTS

8.25% SFC Notes. On April 11, 2016, OMH entered into an Indenture and Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on $1.0 billion of 8.25% Senior Notes due 2020 issued by SFC. See Note 18 of the Notes to Condensed Consolidated Financial Statements for further information.

5.25% SFC Notes. On December 3, 2014, OMH 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% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of March 31, 2016, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes. On December 30, 2013, OMH 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 on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior

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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, OMH 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 March 31, 2016, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

With the exception of SFC’s junior subordinated debenture, none of our debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements.

As of March 31, 2016, we were in compliance with all of the covenants under our debt agreements.

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 (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters (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 12 months ended March 31, 2016, a mandatory trigger event did not occur with respect to the interest payment due in July of 2016, as we were in compliance with both required ratios discussed above.

Structured Financings

We execute private securitizations under Rule 144A of the Securities Act of 1933. As of March 31, 2016, 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:
SLFT 2014-A	$	559	$	644	$	535	$	620	2.56	%	Personal loans	2 years
SLFT 2015-A	1,163		1,250		1,163		1,250		3.47	%	Personal loans	3 years
SLFT 2015-B	314		335		314		336		3.78	%	Personal loans	5 years
Total consumer securitizations	$	2,036	$	2,229	$	2,012	$	2,206

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(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.

In addition to the structured financings included in the table above, we had access to seven conduit facilities with a total borrowing capacity of $2.4 billion as of March 31, 2016, as discussed in Note 11 of the Notes to Condensed Consolidated Financial Statements. At March 31, 2016, $1.1 billion was drawn under these facilities.

See “Liquidity and Capital Resources - Sources of Funds - Securitizations and Borrowings from Revolving Conduit Facilities” for securitization and conduit transactions completed subsequent to March 31, 2016.

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 Segment Accounting Basis were as follows:

	Three Months Ended March 31,
	2016		2015
Weighted average interest rate	5.26	%	5.47	%

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 March 31, 2016 or December 31, 2015, other than certain representations and warranties associated with the sales of the mortgage-backed retained certificates during 2014. As of March 31, 2016, 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 3 of the Notes to Consolidated Financial Statements in Part II, Item 8 of our 2015 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.

There have been no material changes to our critical accounting policies or to our methodologies for deriving critical accounting estimates during the three months ended March 31, 2016.

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. These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year.

65

Glossary of Terms    

Average debt	average of debt for each day in the period
Average net receivables	average of monthly average net finance receivables (net finance receivables at the beginning and end of each month divided by 2) 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 material changes to our market risk previously disclosed in Part II, Item 7A of our 2015 Annual Report on Form 10-K.

Item 4. Controls and Procedures.    

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that information we are required to disclose in reports that we file or submit 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 timely decisions regarding required disclosure.

As of December 31, 2015, we carried out an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer. Based on our evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2015 to provide the reasonable assurance described above.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the first quarter of 2016 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 2015 Annual Report on Form 10-K.

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

On January 11, 2016, in order to satisfy a non-debt capital funding requirement with respect to SFC’s debenture, SFC issued one share of SFC common stock to SFI for $10 million. The share of SFC common stock was issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. See “Liquidity and Capital Resources - Our Debt Agreements” in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information on SFC’s debentures.

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 70 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:	May 6, 2016	By	/s/ Micah R. Conrad
			Micah R. Conrad
			Senior Vice President and Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)

69

Exhibit Index    

Exhibit
2.1*	Purchase Agreement, dated as of March 31, 3016, by and among SpringCastle Holdings, LLC, Springleaf Acquisition Corporation, Springleaf Finance, Inc., NRZ Consumer LLC, NRZ SC America LLC, NRZ SC Credit Limited, NRZ SC Finance I LLC, NRZ SC Finance II LLC, NRZ SC Finance III LLC, NRZ SC Finance IV LLC, NRZ SC Finance V LLC, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P., and solely with respect to Section 11(a) and Section 11(g), NRZ SC America Trust 2015-1, NRZ SC Credit Trust 2015-1, NRZ SC Finance Trust 2015-1, and BTO Willow Holdings, L.P. Incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on April 1, 2016.
4.1	Second Supplemental Indenture relating to Springleaf Finance Corporation’s 8.250% Senior Notes due 2020, dated as of April 11, 2016, by and among Springleaf Finance Corporation, OneMain Holdings, Inc. and Wilmington Trust, National Association, as trustee. Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on April 11, 2016.
10.1	Form of Restricted Stock Award Agreement under the Springleaf Holdings, Inc. 2013 Omnibus Incentive Plan (Employees), filed herewith as Exhibit 10.1.
10.2	OneMain Holdings, Inc. Amended and Restated Annual Leadership Incentive Plan, effective January 1, 2016. Incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
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.

* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K.

70

EX-10.1

Exhibit 10.1    

RESTRICTED STOCK GRANT AGREEMENT
UNDER THE SPRINGLEAF HOLDINGS, INC.

2013 OMNIBUS INCENTIVE PLAN

This Restricted Stock Grant Agreement (this “Award Agreement”), dated as of [___________], 20[__] (the “Grant Date”), is made by and between OneMain Holdings, Inc., a Delaware corporation (the “Company”), and [______________] (the “Grantee”). Capitalized terms not defined herein shall have the meaning ascribed to them in the Springleaf Holdings, Inc. 2013 Omnibus Incentive Plan (as may be amended from time to time, the “Plan”). Where the context permits, references to the Company shall include any successor to the Company.

1. Grant of Restricted Stock. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Grantee an Award of [_______] shares of Common Stock of the Company (collectively, the “Restricted Stock”).

2. Grant Date. The Restricted Stock is granted hereby on the Grant Date.

3. Incorporation of the Plan. All terms, conditions and restrictions of the Plan are incorporated herein and made part hereof as if stated herein. If there is any conflict between the terms and conditions of the Plan and this Award Agreement, the terms and conditions of the Plan, as interpreted by the Administrator, shall govern.

4. Vesting. The Restricted Stock shall become vested as follows: 33.3% of the shares of Restricted Stock shall vest on [the first anniversary date of the Grant Date]; 33.3% of the shares of Restricted Stock shall vest on [the second anniversary date of the Grant Date]; and 33.4% of the shares of Restricted Stock shall vest on [the third anniversary date of the Grant Date] (each, a “Vesting Date”); provided that the Grantee remains continuously employed by (i) the Company, (ii) any direct or indirect parent of Springleaf Financial Holdings, LLC, (iii) any subsidiary of Springleaf Financial Holdings, LLC or (iv) any other entity controlled directly or indirectly by Springleaf Financial Holdings, LLC (as applicable, the “Employer”) through the applicable Vesting Date. Any notice period following the date on which the Grantee gave or received notice of termination of employment shall be disregarded for purposes of the vesting of the Restricted Stock, and vesting shall cease on the date such notice was given or received. Notwithstanding the foregoing:

(a) in the event of a termination by the Employer of the Grantee’s employment without Cause (except for such termination which follows Disability, and it being understood that relocation of no more than thirty (30) miles shall in no event be considered a termination without Cause), the shares of Restricted Stock scheduled to vest on the next Vesting Date following such termination of employment shall immediately vest on the date of such termination of employment; provided, however, that all such shares of Restricted Stock shall be

1

forfeited unless the Grantee (A) executes and delivers to the Company (and does not revoke) a separation and release agreement in a form satisfactory to the Company (a “Separation Agreement”) within sixty (60) days following such termination and continues to comply with the Separation Agreement and (B) acknowledges that the remainder of the shares of Restricted Stock shall be forfeited; and

(b) in the event of the death or Disability of the Grantee, all of the then unvested shares of Restricted Stock shall vest as of the date of such death or Disability; provided, however, that all such shares of Restricted Stock shall be forfeited unless that the Grantee (or the Grantee’s representative or estate, as applicable) executes and delivers to the Company (and does not revoke) a Separation Agreement (or, in the event the Restricted Stock vests upon the Disability of the Grantee, a release of claims in a form satisfactory to the Company) within sixty (60) days following the date of the Grantee’s death or Disability, as applicable and continues to comply with the Separation Agreement or release of claims, as applicable.

5. Forfeiture. Subject to the provisions of the Plan and Section 4 of this Award Agreement, shares of Restricted Stock which have not become vested on the earlier of (i) the date the Grantee’s employment ends for any reason and (ii) the date the Grantee gives or receives a notice of termination of employment, shall immediately be forfeited on such applicable date without the payment of any consideration, and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such shares of Restricted Stock.

6. Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party hereto upon any breach or default of any party under this Award Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Award Agreement, or any waiver on the part of any party of any provisions or conditions of this Award Agreement, shall be in writing and shall be effective only to the extent specifically set forth in such writing.

7. Integration. This Award Agreement and the Plan contain the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and in the Plan. This Award Agreement and the Plan supersede all prior agreements and understandings between the parties with respect to the subject matter hereof.

2

8. Counterparts; Electronic Signature. This Award Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The Grantee’s electronic signature of this Award Agreement shall have the same validity and effect as a signature affixed by the Grantee’s hand.

9. Grantee Acknowledgment. The Grantee hereby acknowledges receipt of a copy of the Plan. The Grantee hereby acknowledges that all decisions, determinations and interpretations of the Administrator in respect of the Plan, this Award Agreement and the Restricted Stock shall be final and conclusive.

10. Restrictions on Transfer. Until such time as the shares of Restricted Stock are fully vested in accordance with Section 4 hereof, or as otherwise provided in the Plan, no purported sale, assignment, mortgage, hypothecation, transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any such unvested shares of Restricted Stock or any agreement or commitment to do any of the foregoing (each a “Transfer”) by any holder thereof in violation of the provisions of this Award Agreement will be valid, except with the prior written consent of the Board (such consent shall be granted or withheld in the sole discretion of the Board).

Any purported Transfer of the shares of Restricted Stock or any economic benefit or interest therein in violation of this Award Agreement shall be null and void ab initio, and shall not create any obligation or liability of the Company, and any Person purportedly acquiring any of the shares of Restricted Stock or any economic benefit or interest therein transferred in violation of this Award Agreement shall not be entitled to be recognized as a holder of such shares.

Without prejudice to the foregoing, in the event of a Transfer or an attempted Transfer in violation of this Award Agreement, such shares of Restricted Stock, and all of the rights related thereto, shall be immediately forfeited without consideration.

11. Taxes; 83(b) Election. The Grantee understands that the Grantee (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Award Agreement. The Grantee shall pay to the Company promptly upon request, and in any event at the time the Grantee recognizes taxable income with respect to the Restricted Stock, an amount equal to the minimum amount of taxes the Company determines it is required to withhold under applicable tax laws with respect to the Restricted Stock. The Grantee may satisfy the foregoing requirement by making a payment to the Company in cash or, with the approval of the Administrator, in its sole discretion, by electing to have the Company repurchase either (i) shares of Common Stock which the Grantee already owns or (ii) shares of Restricted Stock, and in such event the Company shall repurchase such number of shares having a Fair Market Value equal to the minimum amount of tax required to be withheld (or such other amount as may be permitted by applicable law and accounting standards). Such shares shall be valued at

3

their Fair Market Value on the date as of which the amount of tax to be withheld is determined. Any fractional amounts shall be settled in cash.

If the Grantee makes an election under Section 83(b) of the Code, or any successor section thereto, to be taxed with respect to the Restricted Stock as of the Grant Date, the Grantee shall deliver a copy of such election to the Company immediately after filing such election with the Internal Revenue Service, together with any required tax withholding. A form of such election is attached hereto as Exhibit A. The Grantee hereby acknowledges that it is the Grantee’s sole responsibility, and not the Company’s, to file timely the election under Section 83(b) of the Code.

12. Governing Law. This Award Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choices of laws, of the State of Delaware applicable to agreements made and to be performed wholly within the State of Delaware.

13. Legend on Certificates. The Grantee agrees that any certificate issued for Restricted Stock (or, if applicable, any book entry statement issued for Restricted Stock) prior to the lapse of any outstanding restrictions relating thereto shall bear the following legend (in addition to any other legend or legends required under applicable federal and state securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER (THE “RESTRICTIONS”) AS SET FORTH IN THE SPRINGLEAF HOLDINGS, INC. 2013 OMNIBUS INCENTIVE PLAN AND A RESTRICTED STOCK GRANT AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND ONEMAIN HOLDINGS, INC., COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY. ANY ATTEMPT TO DISPOSE OF THESE SHARES IN CONTRAVENTION OF THE RESTRICTIONS, INCLUDING BY WAY OF SALE, ASSIGNMENT, TRANSFER, PLEDGE, HYPOTHECATION OR OTHERWISE, SHALL BE NULL AND VOID AND WITHOUT EFFECT AND SHALL RESULT IN THE FORFEITURE OF SUCH SHARES AS PROVIDED BY SUCH PLAN AND AWARD AGREEMENT.

14. Securities Laws Requirements. The Company shall not be obligated to issue shares of Common Stock to the Grantee free of the restrictive legend described in Section 13 hereof or of any other restrictive legend, if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended (“Securities Act”) (or any other federal or state statutes having similar requirements as may be in effect at that time). The Company shall be under no obligation to register the Restricted Stock pursuant to the Securities Act or any other federal or state securities laws.

4

15. Notices. All notices or other communications provided hereunder must be in writing and mailed or delivered either (i) to the Company at its principal place of business or (ii) to the Grantee at the address on file with the Company, or such other address as the Company or the Grantee may provide to the other for purposes of providing notice. Any such notice shall be deemed effective (1) upon delivery if delivered in person, (2) on the next business day if transmitted by national overnight courier and (3) on the fourth business day following mailing by first class mail.

16. Agreement Not a Contract for Services. Neither the Plan, the granting of the Restricted Stock, this Award Agreement nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee has a right to continue to provide services as an officer, director, employee, consultant or advisor of the Company or any Subsidiary or Affiliate for any period of time or at any specific rate of compensation.

17. Representations. The Grantee has reviewed with the Grantee’s own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by this Award Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Award Agreement.

18. Amendments; Construction. The Administrator may amend the terms of this Award Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Grantee hereunder without his or her consent. Headings to Sections of this Award Agreement are intended for convenience of reference only, are not part of this Award Agreement and shall have no effect on the interpretation hereof.

19. Adjustments. Pursuant to Section 5 of the Plan, in the event of a Change in Capitalization as described therein, the Administrator shall make such equitable changes or adjustments as it deems necessary or appropriate to the number and kind of securities or other property (including cash) issued or issuable in respect of outstanding Restricted Stock.

20. Award Agreement Binding on Successors. The terms of this Award Agreement shall be binding upon the Grantee and upon the Grantee’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest, and upon the Company and its successors and assignees, subject to the terms of the Plan. Notwithstanding anything to the contrary in this Award Agreement, neither this Award Agreement nor any rights granted herein shall be assignable by the Grantee.

21. Severability. Should any provision of this Award Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Award Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a

5

part hereof and treated as though contained in this original Award Agreement. Moreover, if one or more of the provisions contained in this Award Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by such judicial body shall not affect the enforceability of such provisions or provisions in any other jurisdiction.

22. Set-Off. The Grantee hereby acknowledges and agrees, without limiting rights of the Company or any Affiliate thereof otherwise available at law or in equity, that, to the extent permitted by law, the number of Shares due to the Grantee under this Award Agreement may be reduced by, and set-off against, any or all amounts or other consideration payable by the Grantee to the Company or any of its Affiliates under any other agreement or arrangement between the Grantee and the Company or any of its Affiliates; provided that any such set-off does not result in a penalty under Section 409A of the Code.

23. Rights as a Stockholder. During the period until the Restricted Stock vests as provided in Section 4 hereof, the Grantee shall, except as set forth in this Section 23, have all the rights of a stockholder with respect to the Restricted Stock, including the right to vote the underlying shares of Common Stock. Notwithstanding the foregoing, (i) the Grantee shall not have the right to Transfer the Restricted Stock prior to the vesting thereof as set forth in Section 4 hereof and (ii) any dividends or other distributions that are declared with respect to the shares of Restricted Stock between the Grant Date and the date on which such shares become vested will be paid to the Grantee at the time such shares vest as set forth in Section 4 hereof, and will not be paid to the Grantee in the event that the shares do not become so vested.

[Signature Pages Follow]

6

Exhibit 10.1    

IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement as of the date set forth above.

ONEMAIN HOLDINGS, INC.

By ____________________________

Print Name: _____________________

Title: __________________________

7

Exhibit 10.1    

The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing Award Agreement.

GRANTEE

Signature ____________________

Print Name: ____________________

8

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:	May 6, 2016
		/s/ Jay N. Levine
		Jay N. Levine
		President and Chief Executive Officer

72

EX-31.2

Exhibit 31.2    

Certifications

I, Micah R. Conrad, 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:	May 6, 2016
		/s/ Micah R. Conrad
		Micah R. Conrad
		Senior Vice President and Chief Financial Officer

73

EX-32.1

Exhibit 32.1    

Certifications

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 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 Micah R. Conrad, 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/ Micah R. Conrad
		Micah R. Conrad
		Senior Vice President and Chief Financial Officer
Date:	May 6, 2016

74

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document Information [Line Items]
Entity Registrant Name	SPRINGLEAF FINANCE CORP
Entity Central Index Key	0000025598
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
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		10,160,021
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 365	$ 321
Investment securities	621	604
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $3.6 billion in 2016 and 2015)	4,378	4,300
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.6 billion in 2015)	0	1,576
Real estate loans	503	524
Retail sales finance	19	23
Net finance receivables	4,900	6,423
Unearned insurance premium and claim reserves	(245)	(250)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $113 million in 2016 and $128 million in 2015)	(211)	(219)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	4,444	5,954
Finance receivables held for sale	776	796
Notes receivable from parent and affiliates	3,775	3,804
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $212 million in 2016 and $282 million in 2015)	225	295
Other assets	286	281
Total assets	10,492	12,055
Liabilities and Shareholder's Equity
Long-term debt (includes debt of consolidated VIEs of $3.1 billion in 2016 and $5.5 billion in 2015)	7,187	9,582
Note payable to affiliate	374	0
Insurance claims and policyholder liabilities	228	230
Deferred and accrued taxes	178	103
Other liabilities	266	217
Total liabilities	$ 8,233	$ 10,132
Commitments and contingent liabilities
Shareholder's equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 and 10,160,020 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 5	$ 5
Additional paid-in capital	769	758
Accumulated other comprehensive loss	(17)	(24)
Retained earnings	1,502	1,330
Springleaf Finance Corporation shareholder’s equity	2,259	2,069
Non-controlling interests	0	(146)
Total shareholder’s equity	2,259	1,923
Total liabilities and shareholder’s equity	$ 10,492	$ 12,055

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Personal loans	$ 4,378	$ 4,300
SpringCastle Portfolio	0	1,576
Allowance for finance receivable losses	211	219
Finance receivables held for sale	776	796
Restricted cash and cash equivalents	225	295
Long-term debt	$ 7,187	$ 9,582
Common Stock, par value (dollars per share)	$ 0.5	$ 0.5
Common Stock, shares authorized	25,000,000	25,000,000
Common shares, shares issued	10,160,021	10,160,020
Common shares, shares outstanding	10,160,021	10,160,020
Consolidated VIEs
Personal loans	$ 3,600	$ 3,600
SpringCastle Portfolio		1,600
Allowance for finance receivable losses	113	128
Finance receivables held for sale	0	435
Restricted cash and cash equivalents	212	282
Long-term debt	$ 3,101	$ 5,513

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Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Finance charges	$ 384	$ 398
Finance receivables held for sale originated as held for investment	47	4
Total interest income	431	402
Interest expense	156	158
Net interest income	275	244
Provision for finance receivable losses	94	86
Net interest income after provision for finance receivable losses	181	158
Other revenues:
Insurance	39	36
Investment	6	17
Net gain on sale of SpringCastle interests	229	0
Other	40	0
Total other revenues	314	53
Operating expenses:
Salaries and benefits	97	80
Other operating expenses	77	73
Insurance policy benefits and claims	17	16
Total other expenses	191	169
Income before provision for income taxes	304	42
Provision for income taxes	106	8
Net income	198	34
Net income attributable to non-controlling interests	26	31
Net income attributable to Springleaf Finance Corporation	$ 172	$ 3

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 198	$ 34
Other comprehensive income:
Net unrealized gains on non-credit impaired available-for-sale securities	12	5
Foreign currency translation adjustments	0	1
Income tax effect:
Net unrealized gains on non-credit impaired available-for-sale securities	(4)	(2)
Other comprehensive income, net of tax, before reclassification adjustments	8	4
Reclassification adjustments included in net income:
Net realized gains on available-for-sale securities	(1)	(6)
Income tax effect:
Net realized gains on available-for-sale securities	0	2
Reclassification adjustments included in net income, net of tax	(1)	(4)
Other comprehensive income, net of tax	7	0
Comprehensive income	205	34
Comprehensive income attributable to non-controlling interests	26	31
Comprehensive income attributable to Springleaf Finance Corporation	$ 179	$ 3

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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, 2014	$ 1,881	$ 5	$ 740	$ 3	$ 1,321	$ 2,069	$ (188)
Common shares issued and outstanding
Share-based compensation expense, net of forfeitures	0
Distributions declared to joint venture partners	(18)						(18)
Net income	34				3	3	31
Ending Balance at Mar. 31, 2015	1,897	5	740	3	1,324	2,072	(175)
Beginning Balance at Dec. 31, 2015	1,923	5	758	(24)	1,330	2,069	(146)
Common shares issued and outstanding
Capital contribution from parent	10		10			10
Share-based compensation expense, net of forfeitures	1		1			1
Excess tax benefit from share-based compensation	1		1			1
Withholding tax on vested RSUs	(1)		(1)			(1)
Distributions declared to joint venture partners	(18)						(18)
Sale of equity interests in SpringCastle joint venture	138						138
Other comprehensive income	7			7		7
Net income	198				172	172	26
Ending Balance at Mar. 31, 2016	$ 2,259	$ 5	$ 769	$ (17)	$ 1,502	$ 2,259	$ 0

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 198	$ 34
Reconciling adjustments:
Provision for finance receivable losses	94	86
Depreciation and amortization	20	17
Deferred income tax charge (benefit)	29	(14)
Share-based compensation expense, net of forfeitures	1	0
Net gain on sale of SpringCastle interests	(229)	0
Other	9	(7)
Cash flows due to changes in:
Other assets and other liabilities	36	72
Insurance claims and policyholder liabilities	(7)	(2)
Taxes receivable and payable	47	18
Accrued interest and finance charges	20	7
Restricted cash and cash equivalents not reinvested	1	0
Other, net	1	0
Net cash provided by operating activities	220	211
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(30)	0
Proceeds on sales of finance receivables held for sale originated as held for investment	0	52
Proceeds from sale of SpringCastle interests	101	0
Cash advances on intercompany notes receivables	(112)	(28)
Principal collections on intercompany notes receivables	127	16
Available-for-sale securities purchased	(92)	(95)
Trading and other securities purchased	(1)	(945)
Available-for-sale securities called, sold, and matured	78	56
Trading and other securities called, sold, and matured	10	1,193
Change in restricted cash and cash equivalents	(5)	(120)
Proceeds from sale of real estate owned	2	5
Other, net	4	10
Net cash provided by investing activities	82	144
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	295	1,523
Proceeds from intercompany note payable	370	0
Repayments of long-term debt	(916)	(315)
Distributions to joint venture partners	(18)	(18)
Excess tax benefit from share-based compensation	1	0
Capital contribution from parent	10	0
Net cash provided by (used for) financing activities	(258)	1,190
Net change in cash and cash equivalents	44	1,545
Cash and cash equivalents at beginning of period	321	749
Cash and cash equivalents at end of period	365	2,294
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	1,478	0
Transfer of finance receivables to real estate owned	2	2
Net unsettled investment security dispositions	$ 0	$ 19

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Business and Basis of Presentation

3 Months Ended

Mar. 31, 2016

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 OneMain Holdings, Inc. (“OMH”).

At March 31, 2016, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”).

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 owned a 47% equity interest prior to March 31, 2016), 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. To conform to the 2016 presentation, we have reclassified certain items in prior periods, including certain items in prior periods of our condensed consolidated statements of cash flows. 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, 2015 (“2015 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

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Significant Transactions

3 Months Ended

Mar. 31, 2016

Significant Transactions [Abstract]

Significant Transactions

Significant Transactions

SPRINGCASTLE INTERESTS SALE

On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.”

The SpringCastle Joint Venture primarily holds subordinate ownership interests in a securitized loan portfolio (the “SpringCastle Portfolio”), which consists of unsecured loans and loans secured by subordinate residential real estate mortgages and includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in form and substance from the Company’s originated loans. At December 31, 2015, the SpringCastle Portfolio included over 232,000 of acquired loans, representing $1.6 billion in net finance receivables. For the three months ended March 31, 2016 and 2015, income before provision for income taxes of our Acquisitions and Servicing segment (which consists of the SpringCastle Sellers) totaled $279 million ($253 million attributable to SFC) and $64 million ($33 million attributable to SFC), respectively.

In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million to be paid into an escrow account within 120 days following March 31, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $229 million.

As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless terminated, SFI will remain as servicer of the SpringCastle Portfolio, under the existing servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary.

Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers.

The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, is owned primarily by a private equity fund managed by an affiliate of Fortress. Mr. Edens, Chairman of the board of directors of OMH, also serves as Chairman of the board of directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the board of directors of Fortress. Mr. Jacobs, a member of the board of directors of OMH, also serves as a member of NRZ’s board of directors and Fortress’ board of directors.

The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to this sale.

OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDING, LLC

On November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC (“Independence”), completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for approximately $4.5 billion in cash (the “OneMain Acquisition”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. OMFH is not a subsidiary of SFC and SFC is not a subsidiary of OMFH.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement requires the Branch Sellers to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement.

LENDMARK SALE

On November 12, 2015, OMH and certain subsidiaries of SFC (the “Branch Sellers”) entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103%, plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that has accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark is unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, we transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. At March 31, 2016, the personal loans held for sale totaled approximately $606 million, primarily due to originations, net of charge-offs of personal loans in these branches during the past six months. The branches to be sold represent 15% of the branches and 12% of the personal loans held for investment and held for sale of the Company as of March 31, 2016.

Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016.

On May 2, 2016, we completed the Lendmark Sale. See Note 18 for further information on the subsequent closing.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2016

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Consolidation

In February of 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 became effective for public business entities for annual periods beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect 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. The amendments to this transition guidance became effective for fiscal years beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

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.

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 amendments in this ASU become effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating the potential impact of the adoption of the ASU on our consolidated financial statements.

Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for evaluation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments of this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Debt Instruments

In March of 2016, the FASB issued ASU 2016-06, Contingent Puts and Call Options in Debt Instruments, which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. The ASU requires assessing the embedded call (put) options solely in accordance with the four-step decision sequence. The amendment of this ASU becomes effective on a modified retrospective basis for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendment in this ASU becomes effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Technical Corrections and Improvements

In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. As these are technical corrections and improvements only, the company does not believe that this ASU will have a material effect on our consolidated financial statements.

Stock Compensation

In March of 2016, the FASB issued ASU 2016-09, Improvements to Employee Share - Based Payment Accounting, which simplifies the accounting for share-based payment transactions, income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment in this ASU becomes effective on a modified retrospective transition for accounting in tax benefits recognized, retrospectively for accounting related to the presentation of employee taxes paid, prospective for accounting related to recognition of excess tax benefits, and either a prospective or retrospective method for accounting related to presentation of excess employee tax benefits for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

We do not believe that any other accounting pronouncements issued during the first quarter of 2016, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

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Finance Receivables

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Finance Receivables

Finance Receivables

Our finance receivable types include personal loans, 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 March 31, 2016, $2.5 billion of personal loans, or 58%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 42%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $2.4 billion of personal loans, or 56%, secured by collateral consisting of titled personal property and $1.9 billion, or 44%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2015.

• 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 March 31, 2016, $197 million of real estate loans, or 39%, were secured by first mortgages and $306 million, or 61%, were secured by second mortgages, compared to $202 million of real estate loans, or 39%, secured by first mortgages and $322 million, or 61%, secured by second mortgages at December 31, 2015. 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.

Our finance receivable types also included the SpringCastle Portfolio at December 31, 2015, as defined below:

• SpringCastle Portfolio — included unsecured loans and loans secured by subordinate residential real estate mortgages that were sold on March 31, 2016, in connection with the SpringCastle Interests Sale. The SpringCastle Portfolio included both closed-end accounts and open-end lines of credit. These loans were in a liquidating status and varied in substance and form from our originated loans. Unless terminated, SFI will continue to provide the servicing for these loans, which we service as unsecured loans because the liens are subordinated to superior ranking security interests.

Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance			Total
March 31, 2016
Gross receivables *	$	5,075		$	—	$	499	$	21		$	5,595
Unearned finance charges and points and fees	(798		)	—		—		(2		)	(800		)
Accrued finance charges	57			—		4		—			61
Deferred origination costs	44			—		—		—			44
Total	$	4,378		$	—	$	503	$	19		$	4,900
December 31, 2015
Gross receivables *	$	5,028		$	1,545	$	520	$	25		$	7,118
Unearned finance charges and points and fees	(833		)	—		—		(2		)	(835		)
Accrued finance charges	60			31		4		—			95
Deferred origination costs	45			—		—		—			45
Total	$	4,300		$	1,576	$	524	$	23		$	6,423

* 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 initial fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — 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. The carrying value of our personal loans totaled $3.6 billion at March 31, 2016 and December 31, 2015 and the carrying value of the SpringCastle Portfolio totaled $1.6 billion at December 31, 2015.

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

(dollars in millions)	March 31, 2016		December 31, 2015
Personal loans	$	1	$	2
SpringCastle Portfolio	—		365
Real estate loans	20		30
Total	$	21	$	397

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (i) the value of the collateral declines significantly; (ii) we believe the borrower will be unable to fulfill the repayment obligations; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans can be suspended if one of the following occurs: (i) the value of the real estate declines significantly below the property’s initial appraised value; (ii) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit can be terminated for delinquency. Accordingly, no reserve has been recorded for the unused lines of credit.

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 March 31, 2016 and at December 31, 2015 were immaterial. Our personal loans 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 held for investment by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Net finance receivables:
60-89 days past due	$	39	$	—	$	6	$	—	$	45
90-119 days past due	33		—		5		—		38
120-149 days past due	33		—		3		—		36
150-179 days past due	32		—		3		—		35
180 days or more past due	3		—		22		—		25
Total delinquent finance receivables	140		—		39		—		179
Current	4,186		—		447		19		4,652
30-59 days past due	52		—		17		—		69
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Net finance receivables:
60-89 days past due	$	49	$	22	$	18	$	—	$	89
90-119 days past due	41		14		3		—		58
120-149 days past due	34		11		2		1		48
150-179 days past due	31		10		2		—		43
180 days or more past due	3		1		12		—		16
Total delinquent finance receivables	158		58		37		1		254
Current	4,077		1,475		474		22		6,048
30-59 days past due	65		43		13		—		121
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

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 held for investment by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Performing	$	4,277	$	—	$	470	$	19	$	4,766
Nonperforming	101		—		33		—		134
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Performing	$	4,191	$	1,540	$	505	$	22	$	6,258
Nonperforming	109		36		19		1		165
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transaction:

• 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 purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

At December 31, 2015, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased as part of the following transaction:

• SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC - on July 31, 2014 (the “SAC Capital Contribution”), SFC acquired a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), some of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013. On March 31, 2016, we sold the SpringCastle Portfolio in connection with the sale of our equity interest in the SpringCastle Joint Venture.

We report the carrying amount (which initially was the fair value) 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 March 31, 2016 and December 31, 2015, finance receivables held for sale totaled $776 million and $796 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
March 31, 2016
Carrying amount, net of allowance	$	—	$	71	$	71
Outstanding balance	—		132		132
Allowance for purchased credit impaired finance receivable losses	—		8		8
December 31, 2015
Carrying amount, net of allowance	$	223	$	76	$	299
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		7		7

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

(dollars in millions)	FA Loans
March 31, 2016
Carrying amount	$	52
Outstanding balance	87
December 31, 2015
Carrying amount	$	55
Outstanding balance	89

The allowance for purchased credit impaired finance receivable losses at March 31, 2016 and December 31, 2015, 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 March 31, 2016
Balance at beginning of period	$	422		$	39		$	461
Accretion (a)	(16		)	(2		)	(18		)
Transfer due to finance receivables sold	(399		)	—			(399		)
Disposals of finance receivables (b)	(7		)	(1		)	(8		)
Balance at end of period	$	—		$	36		$	36
Three Months Ended March 31, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(24		)	(3		)	(27		)
Disposals of finance receivables (b)	(12		)	—			(12		)
Balance at end of period	$	505		$	16		$	521

(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 March 31,
	2016		2015
Accretion	$	1	$	2

(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
March 31, 2016
TDR gross finance receivables (b)	$	33	$	—	$	199	$	232
TDR net finance receivables	33		—		201		234
Allowance for TDR finance receivable losses	11		—		35		46
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47

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

(dollars in millions)	Personal Loans		Real Estate Loans		Total
March 31, 2016
TDR gross finance receivables	$	2	$	91	$	93
TDR net finance receivables	2		91		93
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94

(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 *		Total
Three Months Ended March 31, 2016
TDR average net receivables	$	32	$	11	$	201	$	244
TDR finance charges recognized	1		—		3		4
Three Months Ended March 31, 2015
TDR average net receivables	$	25	$	11	$	195	$	231
TDR finance charges recognized	1		—		3		4

* 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 March 31, 2016
TDR average net receivables	$	2	$	92	$	94
TDR finance charges recognized	—		1		1
Three Months Ended March 31, 2015
TDR average net receivables	$	—	$	90	$	90
TDR finance charges recognized	—		1		1

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 March 31, 2016
Pre-modification TDR net finance receivables	$	9	$	1	$	4	$	14
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	1	$	3	$	9
Other (b)	3		—		1		4
Total post-modification TDR net finance receivables	$	8	$	1	$	4	$	13
Number of TDR accounts	1,782		157		89		2,028
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables	$	9	$	2	$	4	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	2	$	4	$	11
Other (b)	3		—		—		3
Total post-modification TDR net finance receivables	$	8	$	2	$	4	$	14
Number of TDR accounts	1,854		195		78		2,127

(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 March 31, 2016
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	1	$	1
Number of TDR accounts	128		19		147
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables **	$	—	$	—	$	—
Post-modification TDR net finance receivables **	$	—	$	—	$	—
Number of TDR accounts	—		9		9

* Pre- and post-modification TDR personal loans held for sale for the three months ended March 31, 2016 were less than $1 million and, therefore, are not quantified in the table above.

** Pre- and post-modification TDR real estate loans held for sale for the three months ended March 31, 2015 were less than $1 million and, therefore, are not quantified in the table above.

(b) “Other” modifications primarily include 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		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended March 31, 2016
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	355		19		20		394
Three Months Ended March 31, 2015
TDR net finance receivables (b) (d)	$	—	$	—	$	1	$	1
Number of TDR accounts	57		10		18		85

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

(dollars in millions)	Real Estate Loans
Three Months Ended March 31, 2016
TDR net finance receivables	$	1
Number of TDR accounts	9
Three Months Ended March 31, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	9

* TDR real estate loans held for sale for the three months ended March 31, 2015 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the table above.

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

(c) TDR SpringCastle Portfolio loans for the three months ended March 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

(d) TDR personal loans and SpringCastle Portfolio loans for the three months ended March 31, 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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Allowance for Finance Receivable Losses

3 Months Ended

Mar. 31, 2016

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Finance Receivable Losses

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 March 31, 2016
Balance at beginning of period	$	173		$	4		$	41		$	1		$	219
Provision for finance receivable losses	73			18			3			—			94
Charge-offs	(89		)	(21		)	(2		)	(1		)	(113		)
Recoveries	11			3			1			—			15
Other *	—			(4		)	—			—			(4		)
Balance at end of period	$	168		$	—		$	43		$	—		$	211
Three Months Ended March 31, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	55			27			4			—			86
Charge-offs	(61		)	(30		)	(6		)	(1		)	(98		)
Recoveries	8			3			1			1			13
Balance at end of period	$	132		$	3		$	39		$	1		$	175

* Consists of the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $113 million at March 31, 2016 and $128 million at December 31, 2015. 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 March 31,
	2016		2015
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	7

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
March 31, 2016
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	157		$	—		$	—		$	—		$	157
Purchased credit impaired finance receivables	—			—			8			—			8
TDR finance receivables	11			—			35			—			46
Total	$	168		$	—		$	43		$	—		$	211
Finance receivables:
Collectively evaluated for impairment	$	4,347		$	—		$	366		$	19		$	4,732
Purchased credit impaired finance receivables	—			—			27			—			27
TDR finance receivables	31			—			110			—			141
Total	$	4,378		$	—		$	503		$	19		$	4,900
Allowance for finance receivable losses as a percentage of finance receivables	3.83		%	—		%	8.52		%	2.91		%	4.31		%
December 31, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	165		$	—		$	—		$	1		$	166
Purchased credit impaired finance receivables	—			—			7			—			7
TDR finance receivables	8			4			34			—			46
Total	$	173		$	4		$	41		$	1		$	219
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			223			28			—			251
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,576		$	524		$	23		$	6,423
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.27		%	7.93		%	3.45		%	3.41		%

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Finance Receivables Held for Sale

3 Months Ended

Mar. 31, 2016

Receivables Held-for-sale [Abstract]

Finance Receivables Held for Sale

Finance Receivables Held for Sale

We report finance receivables held for sale of $776 million at March 31, 2016 and $796 million at December 31, 2015, which are carried at the lower of cost or fair value. At March 31, 2016 and December 31, 2015, finance receivables held for sale consisted of personal loans of $606 million and $617 million, respectively, and real estate loans of $170 million and $179 million, respectively. On March 31, 2016, we marked our real estate loans held for sale to fair value and recorded impairments of $2 million in other revenues. See Note 17 for further information on the impairments of our real estate loans held for sale. At December 31, 2015, 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 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 $47 million and $4 million for the three months ended March 31, 2016 and 2015, respectively.

During March of 2016, we transferred $1.5 billion of loans of the SpringCastle Portfolio (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. We simultaneously sold our interests of these finance receivables held for sale on March 31, 2016 and recorded a net gain in other revenues at the time of sale of $229 million.

We did not have any other material transfer activity to or from finance receivables held for sale during each of the three months ended March 31, 2016 and 2015.

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Investment Securities

3 Months Ended

Mar. 31, 2016

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
March 31, 2016
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	76	$	1	$	—		$	77
Obligations of states, municipalities, and political subdivisions	91		1		—			92
Corporate debt	310		4		(7		)	307
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	70		—		—			70
Commercial mortgage-backed securities (“CMBS”)	47		—		—			47
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	18		—		—			18
Total bonds	612		6		(7		)	611
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	619	$	6	$	(8	)	$	617
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	74		—		—			74
CMBS	44		—		—			44
CDO/ABS	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	604	$	3	$	(16	)	$	591

* 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 March 31, 2016 and December 31, 2015, which is classified as a restricted investment and carried at cost.

As of March 31, 2016 and December 31, 2015, we did not recognize any other-than-temporary impairment non-credit losses on available-for-sale securities 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
March 31, 2016
Bonds:
U.S. government and government sponsored entities	$	30	$	—		$	—	$	—		$	30	$	—
Obligations of states, municipalities, and political subdivisions	19		—			3		—			22		—
Corporate debt	85		(7		)	6		—			91		(7		)
RMBS	16		—			—		—			16		—
CMBS	25		—			5		—			30		—
CDO/ABS	7		—			—		—			7		—
Total bonds	182		(7		)	14		—			196		(7		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	183	$	(7	)	$	20	$	(1	)	$	203	$	(8	)
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)

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

We do not consider the above unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at March 31, 2016, we have no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential impairments. During the three months ended March 31, 2016 and 2015, we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues.

During the three months ended March 31, 2016 and 2015, 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 proceeds 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 March 31,
	2016		2015
Proceeds from sales and redemptions	$	70	$	74
Realized gains	$	1	$	7
Realized losses	—		(1		)
Net realized gains	$	1	$	6

Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2016 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	$	83	$	83
Due after 1 year through 5 years	214		213
Due after 5 years through 10 years	61		60
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	135		135
Total	$	611	$	612

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 at March 31, 2016 and December 31, 2015.

TRADING AND OTHER SECURITIES

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

(dollars in millions)	March 31, 2016		December 31, 2015
Fixed maturity trading and other securities:
Bonds:
Corporate debt	$	1	$	10
Mortgage-backed, asset-backed, and collateralized:
CMBS	2		2
Total *	$	3	$	12

* The fair value of other securities totaled $3 million at March 31, 2016 and $2 million at December 31, 2015.

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

(dollars in millions)	Three Months Ended March 31,
	2016 *		2015
Net unrealized gains (losses) on trading and other securities held at period end	$	—	$	3
Net realized gains (losses) on trading and other securities sold or redeemed	—		—
Total	$	—	$	3

* Net unrealized and realized gains (losses) on trading and other securities were less than $1 million for the three months ended March 31, 2016 and, therefore, are not quantified in the table above.

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Transactions with Affiliates of Fortress

3 Months Ended

Mar. 31, 2016

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Transactions with Affiliates of Fortress

Transactions with Affiliates of Fortress

SUBSERVICING AGREEMENT

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain 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 March 31, 2016 and 2015.

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 March 31, 2016 and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. See Note 2 for further information on this sale. NRZ is managed by an affiliate of Fortress.

Related Party Transactions

AFFILIATE LENDING

Notes Receivable from Parent and Affiliates

Note Receivable from SFI. SFC’s note receivable from SFI 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 2016 and does not expect to demand payment from SFI in 2016. The note receivable from SFI totaled $391 million at March 31, 2016 and $389 million at December 31, 2015. Interest receivable on this note totaled $2 million at March 31, 2016 and $1 million at December 31, 2015. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. Interest revenue on the note receivable from SFI totaled $5 million and $2 million, for the three months ended March 31, 2016 and 2015, respectively, which we report in other revenues.

Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, Springleaf Financial Cash Services, Inc. (“CSI”), SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence (the “Independence Demand Note”), whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion. Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On November 12, 2015, Independence borrowed $3.4 billion under the Independence Demand Note.

At March 31, 2016, the note receivable from Independence totaled $3.4 billion, which included $15 million of interest due to CSI. Interest revenue on the note receivable from Independence totaled $46 million during the three months ended March 31, 2016, which we report in other revenues.

OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At March 31, 2016, no amounts were drawn under the note.

Receivables from Parent and Affiliates

At March 31, 2016 and December 31, 2015, receivables from parent and affiliates totaled $28 million and $9 million, respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, and (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates. Receivables from parent and affiliates at December 31, 2015 are presented net of a payable to SFI of $12 million. Excluding this payable, receivables from parent and affiliates totaled $21 million at December 31, 2015.

Note Payable to Affiliate

On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On January 22, 2016, SFC drew $370 million under the note.

At March 31, 2016, the note payable to OMFH totaled $374 million, which included interest of $2 million due to OMFH. Interest expense on the note payable to OMFH totaled $4 million for the three months ended March 31, 2016. Subsequently, we repaid the note in full on May 2, 2016.

Payables to Parent and Affiliates

At March 31, 2016 and December 31, 2015, payables to parent and affiliates totaled $34 million and $24 million, respectively. At March 31, 2016 and December 31, 2015, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $33 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 March 31, 2016 and December 31, 2015, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

Prior to the SpringCastle Interests Sale, SFI provided servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC, a subsidiary of SFC. At December 31, 2015, SpringCastle Holdings LLC’s payable to SFI totaled $4 million. Subsequent to the SpringCastle Interests Sale, SFI continues to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust.

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 $33 million at March 31, 2016 and $19 million at December 31, 2015.

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 months ended March 31, 2016 and 2015, SFMC recorded $67 million and $54 million, respectively, of service fee expenses, which are included in other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses.

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Related Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Transactions with Affiliates of Fortress

SUBSERVICING AGREEMENT

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain 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 March 31, 2016 and 2015.

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 March 31, 2016 and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. See Note 2 for further information on this sale. NRZ is managed by an affiliate of Fortress.

Related Party Transactions

AFFILIATE LENDING

Notes Receivable from Parent and Affiliates

Note Receivable from SFI. SFC’s note receivable from SFI 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 2016 and does not expect to demand payment from SFI in 2016. The note receivable from SFI totaled $391 million at March 31, 2016 and $389 million at December 31, 2015. Interest receivable on this note totaled $2 million at March 31, 2016 and $1 million at December 31, 2015. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. Interest revenue on the note receivable from SFI totaled $5 million and $2 million, for the three months ended March 31, 2016 and 2015, respectively, which we report in other revenues.

Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, Springleaf Financial Cash Services, Inc. (“CSI”), SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence (the “Independence Demand Note”), whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion. Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On November 12, 2015, Independence borrowed $3.4 billion under the Independence Demand Note.

At March 31, 2016, the note receivable from Independence totaled $3.4 billion, which included $15 million of interest due to CSI. Interest revenue on the note receivable from Independence totaled $46 million during the three months ended March 31, 2016, which we report in other revenues.

OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At March 31, 2016, no amounts were drawn under the note.

Receivables from Parent and Affiliates

At March 31, 2016 and December 31, 2015, receivables from parent and affiliates totaled $28 million and $9 million, respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, and (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates. Receivables from parent and affiliates at December 31, 2015 are presented net of a payable to SFI of $12 million. Excluding this payable, receivables from parent and affiliates totaled $21 million at December 31, 2015.

Note Payable to Affiliate

On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.39% at March 31, 2016. On January 22, 2016, SFC drew $370 million under the note.

At March 31, 2016, the note payable to OMFH totaled $374 million, which included interest of $2 million due to OMFH. Interest expense on the note payable to OMFH totaled $4 million for the three months ended March 31, 2016. Subsequently, we repaid the note in full on May 2, 2016.

Payables to Parent and Affiliates

At March 31, 2016 and December 31, 2015, payables to parent and affiliates totaled $34 million and $24 million, respectively. At March 31, 2016 and December 31, 2015, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $33 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 March 31, 2016 and December 31, 2015, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

Prior to the SpringCastle Interests Sale, SFI provided servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC, a subsidiary of SFC. At December 31, 2015, SpringCastle Holdings LLC’s payable to SFI totaled $4 million. Subsequent to the SpringCastle Interests Sale, SFI continues to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust.

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 $33 million at March 31, 2016 and $19 million at December 31, 2015.

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 months ended March 31, 2016 and 2015, SFMC recorded $67 million and $54 million, respectively, of service fee expenses, which are included in other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses.

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 months ended March 31, 2016 and 2015, SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses.

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Long-term Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at March 31, 2016 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt			Total
Interest rates (a)	2.41% - 6.50%			1.92% - 2.77%		5.25% - 8.25%			6.00		%
Second quarter 2016	$	—		$	—	$	—		$	—		$	—
Third quarter 2016	—			—		375			—			375
Fourth quarter 2016	—			—		—			—			—
First quarter 2017	—			—		—			—			—
Remainder of 2017	—			—		1,889			—			1,889
2018	—			—		—			—			—
2019	—			—		700			—			700
2020	—			—		300			—			300
2021-2067	—			—		950			350			1,300
Securitizations (b)	2,012			—		—			—			2,012
Revolving conduit facilities (b)	—			1,098		—			—			1,098
Total principal maturities	$	2,012		$	1,098	$	4,214		$	350		$	7,674
Total carrying amount (c)	$	2,003		$	1,098	$	3,914		$	172		$	7,187
Debt issuance costs (d)	$	(9	)	$	—	$	(12	)	$	—		$	(21	)

(a) The interest rates shown are the range of contractual rates in effect at March 31, 2016.

(b) Securitizations and borrowings under revolving conduit facilities 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 and revolving conduit facilities.

(c) The carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) 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) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which are reported in other assets and are excluded from the table above.

GUARANTY AGREEMENTS

5.25% SFC Notes

On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of March 31, 2016, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes

On December 30, 2013, OMH 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 on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted 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, OMH 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 March 31, 2016, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2016

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.

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 note 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.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)	March 31, 2016		December 31, 2015
Assets
Cash and cash equivalents	$	1	$	7
Finance receivables:
Personal loans	3,592		3,621
SpringCastle Portfolio	—		1,576
Allowance for finance receivable losses	113		128
Finance receivables held for sale	—		435
Restricted cash and cash equivalents	212		282
Other assets	75		48
Liabilities
Long-term debt	$	3,101	$	5,513
Other liabilities	6		9

Consumer Loan Securitizations

Call of 2013-B Notes. On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million, which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on February 16, 2016, the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption.

Conduit Facilities

Springleaf 2013-VFN1 Trust. On January 15, 2016, we drew $298 million under the variable funding notes issued by the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”).

On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. 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 the 36^th month following the end of the revolving period. As of March 31, 2016, $298 million was outstanding under the notes.

Mill River 2015-VFN1 Trust. On January 15, 2016, we repaid $300 million on the variable funding notes issued by the Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”).

On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million. As of March 31, 2016, $100 million was outstanding under the notes.

Sumner Brook Trust 2013-VFN1. On February 16, 2016, Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, repaid the entire $100 million outstanding principal balance of its variable funding notes. As of March 31, 2016, no amounts were outstanding under the notes.

Midbrook 2013-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Midbrook Funding Trust 2013-VFN1 to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. 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 the 36^th month following the end of the revolving period. As of March 31, 2016, no amounts were outstanding under the notes.

Whitford Brook 2014-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Whitford Brook Funding Trust 2014-VFN1 to extend the revolving period ending in June 2017 to June 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 the 12^th month following the end of the revolving period. As of March 31, 2016, $200 million was outstanding under the notes.

First Avenue Funding LLC. On March 28, 2016, we amended the note purchase agreement with the First Avenue Funding LLC (“First Avenue”) to extend the revolving period ending in December 2017 to March 2018. Following the 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 the 12 months following the maturity of the last auto loan held by First Avenue. As of March 31, 2016, $250 million was outstanding under the notes.

VIEINTEREST 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 months ended March 31, 2016 totaled $48 million, compared to $38 million for the three months ended March 31, 2015.

DECONSOLIDATED VIES

As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt.

As a result of the sales of the mortgage-backed retained certificates during 2014, we (i) deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt and (ii) established a reserve for sales recourse obligations of $6 million related to these sales. At March 31, 2016, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of March 31, 2016. 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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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2016

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

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2016
Balance at beginning of period	$	(9	)	$	(19	)	$	4	$	(24	)
Other comprehensive income before reclassifications	8			—			—		8
Reclassification adjustments from accumulated other comprehensive income (loss)	(1		)	—			—		(1		)
Balance at end of period	$	(2	)	$	(19	)	$	4	$	(17	)
Three Months Ended March 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive income before reclassifications	3			—			1		4
Reclassification adjustments from accumulated other comprehensive income (loss)	(4		)	—			—		(4		)
Balance at end of period	$	11		$	(13	)	$	5	$	3

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 March 31,
	2016		2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, before taxes	$	1	$	6
Income tax effect	—		(2		)
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, net of taxes	$	1	$	4

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At March 31, 2016, we had a net deferred tax liability of $122 million, compared to $89 million at December 31, 2015. The increase in net deferred tax liability of $33 million was primarily due to the impact of the SpringCastle Interests Sale, partially offset by changes in the fair value of our finance receivables.

The effective tax rate for the three months ended March 31, 2016 was 34.9% compared to 19.3% for the same period in 2015. The effective tax rates for the three months ended March 31, 2016 and 2015 differed from the federal statutory rates primarily due to the effects of the non-controlling interest in the previously owned SpringCastle Portfolio. As discussed in Note 2, on March 31, 2016, the Company sold its equity interest in the SpringCastle Portfolio.

We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the Internal Revenue Service. Management believes it has adequately provided for taxes for such years.

The Company’s unrecognized tax positions including interest and penalties totaled $9 million at March 31, 2016 and December 31, 2015, all of which would affect the effective tax rate if recognized. The amount of any change in the balance of uncertain tax positions over the next 12 months is not expected to be material to our consolidated financial statements.

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Contingencies

3 Months Ended

Mar. 31, 2016

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

At March 31, 2016, our reserve for sales recourse obligations totaled $15 million, which primarily related to the real estate loan sales in 2014. During the three months ended March 31, 2016 and 2015, we had no repurchase activity and no material activity related to our reserve for sales recourse obligations. At March 31, 2016, there were no material recourse requests with loss exposure that management believes will not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly.

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.

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Benefit Plans

3 Months Ended

Mar. 31, 2016

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 March 31,
	2016			2015
Components of net periodic benefit cost - pension plans:
Interest cost	$	4		$	4
Expected return on assets	(4		)	(5		)
Net periodic benefit cost	$	—		$	(1	)

We do not currently fund post retirement benefits.

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Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our segments coincide with how our businesses are managed. At March 31, 2016, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

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, disability 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 — SFI services the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owned a 47% equity interest. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the sale of our equity interest in the SpringCastle Joint Venture. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include 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. Unless terminated, SFI will continue to provide the servicing for these loans, which we service as unsecured loans because the liens are subordinated to superior ranking security interests.

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. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. OMH used these proceeds to acquire OneMain.

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 had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy 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.

We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3 of our 2015 Annual Report on Form 10-K, except as described below.

Due to the nature of the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using “Segment Accounting Basis,” which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for the three months ended March 31, 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $54 million for Consumer and Insurance and a decrease in interest expense of $45 million and $9 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
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.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is 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 policy benefits and claims	Directly correlated with a specific segment.

The “Segment to GAAP Adjustment” column in the following tables primarily consists of:

• Interest income - the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables;

• Interest expense - primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting;

• Provision for finance receivable losses - the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis;

• Other revenues - the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale and realized gains/losses associated with our investment portfolio; and

• Other expenses - the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

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			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2016
Interest income	$	311	$	101	$	15		$	1		$	3		$	431
Interest expense	95		20		13			4			24			156
Provision for finance receivable losses	73		17		2			—			2			94
Net interest income (loss) after provision for finance receivable losses	143		64		—			(3		)	(23		)	181
Net gain on sale of SpringCastle interests	—		229		—			—			—			229
Other revenues *	45		—		(11		)	50			1			85
Other expenses	174		14		7			(4		)	—			191
Income (loss) before provision for (benefit from) income taxes	14		279		(18		)	51			(22		)	304
Income before provision for income taxes attributable to non-controlling interests	—		26		—			—			—			26
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	14	$	253	$	(18	)	$	51		$	(22	)	$	278
Assets	$	5,704	$	101	$	667		$	4,042		$	(22	)	$	10,492

* Other revenues reported in “Other” includes interest income on the Independence Demand Note and on SFC’s note receivable from SFI. See Note 9 for further information on the notes receivable from parent and affiliates.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2015
Interest income	$	254	$	125	$	18		$	2		$	—		$	3		$	402
Interest expense	40		23		60			10			(5		)	30			158
Provision for finance receivable losses	55		27		2			—			—			2			86
Net interest income (loss) after provision for finance receivable losses	159		75		(44		)	(8		)	5			(29		)	158
Other revenues	51		5		3			2			(5		)	(3		)	53
Other expenses	140		16		7			5			—			1			169
Income (loss) before provision for (benefit from) income taxes	70		64		(48		)	(11		)	—			(33		)	42
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	$	70	$	33	$	(48	)	$	(11	)	$	—		$	(33	)	$	11
Assets *	$	4,821	$	1,958	$	3,613		$	1,832		$	—		$	17		$	12,241

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified $32 million of debt issuance costs from other assets to long-term debt as of March 31, 2015.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $216 million at March 31, 2015.

• During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within our segment footnote and have corrected the previously disclosed total assets at March 31, 2015 in the table above.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2016

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
March 31, 2016
Assets
Cash and cash equivalents	$	358	$	7	$	—	$	365	$	365
Investment securities	—		619		2		621		621
Net finance receivables, less allowance for finance receivable losses	—		—		4,912		4,912		4,689
Finance receivables held for sale	—		—		804		804		776
Notes receivable from parent and affiliates	—		3,775		—		3,775		3,775
Restricted cash and cash equivalents	225		—		—		225		225
Other assets:
Commercial mortgage loans	—		—		53		53		53
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		28		—		28		28
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	7,470	$	—	$	7,470	$	7,187
Note payable to affiliate	—		374		—		374		374
Payables to parent and affiliates	—		34		—		34		34
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,204
Finance receivables held for sale	—		—		819		819		796
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24

FAIR VALUE MEASUREMENTS — RECURRING BASIS

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

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2016
Assets
Cash equivalents in mutual funds	$	129	$	—	$	—	$	129
Cash equivalents in certificates of deposit and commercial paper	—		7		—		7
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		77		—		77
Obligations of states, municipalities, and political subdivisions	—		92		—		92
Corporate debt	—		307		—		307
RMBS	—		70		—		70
CMBS	—		47		—		47
CDO/ABS	—		18		—		18
Total bonds	—		611		—		611
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities *	—		616		1		617
Other securities:
Bonds:
Corporate debt	—		1		—		1
CMBS	—		2		—		2
Total other securities	—		3		—		3
Total investment securities	—		619		1		620
Restricted cash in mutual funds	210		—		—		210
Total	$	339	$	626	$	1	$	966

* 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 March 31, 2016, which is carried at cost.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(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 December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

We had no transfers between Level 1 and Level 2 during the three months ended March 31, 2016.

The following table presents changes in Level 3 assets measured at fair value on a recurring basis:

			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   March 31, 2016
Investment securities:
Available-for-sale securities:
Other long-term investments	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Total	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Three Months Ended   March 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	—	$	—	$	—		$	4
CMBS	3		—		—		—		—		(3		)	—
Total bonds	7		—		—		—		—		(3		)	4
Other long-term investments	1		—		—		—		—		—			1
Total	$	8	$	—	$	—	$	—	$	—	$	(3	)	$	5

* During the three months ended March 31, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater 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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
RMBS	Discounted cash flows	Spread	693 bps (a)	665 bps (a)
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 (b)	N/A (b)

(a) At March 31, 2016 and December 31, 2015, RMBS consisted of one bond, which was less than $1 million.

(b) 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, 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
March 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	170	$	170
Real estate owned	—		—		10		10
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	188	$	188
December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	19	$	19

* The fair value information presented in the table 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 March 31,
	2016		2015
Assets
Finance receivables held for sale	$	2	$	—
Real estate owned	1		1
Commercial mortgage loans *	1		—
Total	$	4	$	1

* Net impairment charges recorded on commercial mortgage loans for the three months ended March 31, 2015 was less than $1 million and, therefore, is not quantified in the table above.

In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in our Real Estate segment to their fair value during the first quarter of 2016 and recorded the writedowns in other revenues.

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 months ended March 31, 2016 and 2015 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 months ended March 31, 2016 and 2015 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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
Finance receivables held for sale	Income approach	National market conditions Operating performance	N/A*	—
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

Our unit of account is the mutual fund, which is measured at net asset value.

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 other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

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

We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative.

The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, 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 limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

Finance Receivables Held for Sale

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

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

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 March 31, 2016, we had no debt carried at fair value under the fair value option.

We estimate the fair values associated with variable rate revolving lines of credit to be equal to par.

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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Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

SFC’S OFFERING OF SENIOR NOTES

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 under an Indenture dated as of December 3, 2014 (the “Base Indenture”), as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis.

SFC used a portion of the proceeds from the offering to repurchase approximately $600 million aggregate principal amount of its existing senior notes that mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased notes in the offering. SFC intends to use the remaining net proceeds for general corporate purposes, which may include further debt repurchases and repayments.

The notes will mature on December 15, 2020 and bear interest at a rate of 8.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2016. The notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are guaranteed by OMH and will not be guaranteed by any of SFC’s subsidiaries or any other party. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries.

The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund.

The Indenture contains covenants that, among other things (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them occur, would permit or require the principal of and accrued interest on the notes to become, or to be declared, due and payable.

LENDMARK SALE

On May 2, 2016, pursuant to the Purchase and Sale Agreement, dated as of November 12, 2015, by and between OneMain Holdings, Inc., certain of our subsidiaries and Lendmark and as required by our previously disclosed DOJ Settlement Agreement, we completed the sale of 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such branches to Lendmark for an aggregate cash purchase price of $624 million. Such sale was effective as of April 30, 2016, and included the sale to Lendmark of personal loans with an unpaid principal balance as of March 31, 2016, of $600 million. OMH has entered into a Transition Services Agreement with Lendmark, and OMH’s and our activities will remain subject to the oversight of the Monitoring Trustee appointed by the Court pursuant to the DOJ Settlement Agreement until the expiration of the Transition Services Agreement. Although we and OMH continue to take such steps as we believe are necessary to comply with the terms of the DOJ Settlement Agreement, no assurance can be given that we will not incur fines or penalties associated with OMH’s or our activities pursuant to the Transition Services Agreement or OMH’s or our efforts to comply with the terms of the DOJ Settlement Agreement.

On May 2, 2016, SFC used a portion of the proceeds from the Lendmark Sale to repay, in full, its revolving demand note with OMFH, which totaled $376 million (including interest payable of $6 million).

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Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2016

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 owned a 47% equity interest prior to March 31, 2016), 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. To conform to the 2016 presentation, we have reclassified certain items in prior periods, including certain items in prior periods of our condensed consolidated statements of cash flows. 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, 2015 (“2015 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting.

New Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Consolidation

In February of 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 became effective for public business entities for annual periods beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect 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. The amendments to this transition guidance became effective for fiscal years beginning after December 15, 2015. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

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.

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 amendments in this ASU become effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating the potential impact of the adoption of the ASU on our consolidated financial statements.

Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for evaluation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments of this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Debt Instruments

In March of 2016, the FASB issued ASU 2016-06, Contingent Puts and Call Options in Debt Instruments, which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. The ASU requires assessing the embedded call (put) options solely in accordance with the four-step decision sequence. The amendment of this ASU becomes effective on a modified retrospective basis for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendment in this ASU becomes effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

Technical Corrections and Improvements

In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. As these are technical corrections and improvements only, the company does not believe that this ASU will have a material effect on our consolidated financial statements.

Stock Compensation

In March of 2016, the FASB issued ASU 2016-09, Improvements to Employee Share - Based Payment Accounting, which simplifies the accounting for share-based payment transactions, income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment in this ASU becomes effective on a modified retrospective transition for accounting in tax benefits recognized, retrospectively for accounting related to the presentation of employee taxes paid, prospective for accounting related to recognition of excess tax benefits, and either a prospective or retrospective method for accounting related to presentation of excess employee tax benefits for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated financial statements.

We do not believe that any other accounting pronouncements issued during the first quarter of 2016, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

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Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Schedule of components of net finance receivables by type

Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance			Total
March 31, 2016
Gross receivables *	$	5,075		$	—	$	499	$	21		$	5,595
Unearned finance charges and points and fees	(798		)	—		—		(2		)	(800		)
Accrued finance charges	57			—		4		—			61
Deferred origination costs	44			—		—		—			44
Total	$	4,378		$	—	$	503	$	19		$	4,900
December 31, 2015
Gross receivables *	$	5,028		$	1,545	$	520	$	25		$	7,118
Unearned finance charges and points and fees	(833		)	—		—		(2		)	(835		)
Accrued finance charges	60			31		4		—			95
Deferred origination costs	45			—		—		—			45
Total	$	4,300		$	1,576	$	524	$	23		$	6,423

* 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 initial fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — 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)	March 31, 2016		December 31, 2015
Personal loans	$	1	$	2
SpringCastle Portfolio	—		365
Real estate loans	20		30
Total	$	21	$	397

Summary of net finance receivables by type and by days delinquent

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

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Net finance receivables:
60-89 days past due	$	39	$	—	$	6	$	—	$	45
90-119 days past due	33		—		5		—		38
120-149 days past due	33		—		3		—		36
150-179 days past due	32		—		3		—		35
180 days or more past due	3		—		22		—		25
Total delinquent finance receivables	140		—		39		—		179
Current	4,186		—		447		19		4,652
30-59 days past due	52		—		17		—		69
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Net finance receivables:
60-89 days past due	$	49	$	22	$	18	$	—	$	89
90-119 days past due	41		14		3		—		58
120-149 days past due	34		11		2		1		48
150-179 days past due	31		10		2		—		43
180 days or more past due	3		1		12		—		16
Total delinquent finance receivables	158		58		37		1		254
Current	4,077		1,475		474		22		6,048
30-59 days past due	65		43		13		—		121
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

Schedule of performing and nonperforming net finance receivables by type

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

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
March 31, 2016
Performing	$	4,277	$	—	$	470	$	19	$	4,766
Nonperforming	101		—		33		—		134
Total	$	4,378	$	—	$	503	$	19	$	4,900
December 31, 2015
Performing	$	4,191	$	1,540	$	505	$	22	$	6,258
Nonperforming	109		36		19		1		165
Total	$	4,300	$	1,576	$	524	$	23	$	6,423

Schedule of information regarding purchased credit impaired finance receivables

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
March 31, 2016
Carrying amount, net of allowance	$	—	$	71	$	71
Outstanding balance	—		132		132
Allowance for purchased credit impaired finance receivable losses	—		8		8
December 31, 2015
Carrying amount, net of allowance	$	223	$	76	$	299
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		7		7

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

(dollars in millions)	FA Loans
March 31, 2016
Carrying amount	$	52
Outstanding balance	87
December 31, 2015
Carrying amount	$	55
Outstanding balance	89

Purchased credit impaired FA Loans held for sale

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

(dollars in millions)	FA Loans
March 31, 2016
Carrying amount	$	52
Outstanding balance	87
December 31, 2015
Carrying amount	$	55
Outstanding balance	89

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 March 31, 2016
Balance at beginning of period	$	422		$	39		$	461
Accretion (a)	(16		)	(2		)	(18		)
Transfer due to finance receivables sold	(399		)	—			(399		)
Disposals of finance receivables (b)	(7		)	(1		)	(8		)
Balance at end of period	$	—		$	36		$	36
Three Months Ended March 31, 2015
Balance at beginning of period	$	541		$	19		$	560
Accretion (a)	(24		)	(3		)	(27		)
Disposals of finance receivables (b)	(12		)	—			(12		)
Balance at end of period	$	505		$	16		$	521

(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 March 31,
	2016		2015
Accretion	$	1	$	2

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

Accretion on purchased credit impaired FA Loans held for sale

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 March 31,
	2016		2015
Accretion	$	1	$	2

Schedule of information regarding troubled debt restructured ("TDR") 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
March 31, 2016
TDR gross finance receivables (b)	$	33	$	—	$	199	$	232
TDR net finance receivables	33		—		201		234
Allowance for TDR finance receivable losses	11		—		35		46
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47

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

(dollars in millions)	Personal Loans		Real Estate Loans		Total
March 31, 2016
TDR gross finance receivables	$	2	$	91	$	93
TDR net finance receivables	2		91		93
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94

(b) As defined earlier in this Note.

TDR finance receivables held for sale [Table Text Block]

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

(dollars in millions)	Personal Loans		Real Estate Loans		Total
March 31, 2016
TDR gross finance receivables	$	2	$	91	$	93
TDR net finance receivables	2		91		93
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94

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 *		Total
Three Months Ended March 31, 2016
TDR average net receivables	$	32	$	11	$	201	$	244
TDR finance charges recognized	1		—		3		4
Three Months Ended March 31, 2015
TDR average net receivables	$	25	$	11	$	195	$	231
TDR finance charges recognized	1		—		3		4

* 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 March 31, 2016
TDR average net receivables	$	2	$	92	$	94
TDR finance charges recognized	—		1		1
Three Months Ended March 31, 2015
TDR average net receivables	$	—	$	90	$	90
TDR finance charges recognized	—		1		1

TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale

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 March 31, 2016
TDR average net receivables	$	2	$	92	$	94
TDR finance charges recognized	—		1		1
Three Months Ended March 31, 2015
TDR average net receivables	$	—	$	90	$	90
TDR finance charges recognized	—		1		1

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 March 31, 2016
Pre-modification TDR net finance receivables	$	9	$	1	$	4	$	14
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	1	$	3	$	9
Other (b)	3		—		1		4
Total post-modification TDR net finance receivables	$	8	$	1	$	4	$	13
Number of TDR accounts	1,782		157		89		2,028
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables	$	9	$	2	$	4	$	15
Post-modification TDR net finance receivables:
Rate reduction	$	5	$	2	$	4	$	11
Other (b)	3		—		—		3
Total post-modification TDR net finance receivables	$	8	$	2	$	4	$	14
Number of TDR accounts	1,854		195		78		2,127

(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 March 31, 2016
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	1	$	1
Number of TDR accounts	128		19		147
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables **	$	—	$	—	$	—
Post-modification TDR net finance receivables **	$	—	$	—	$	—
Number of TDR accounts	—		9		9

* Pre- and post-modification TDR personal loans held for sale for the three months ended March 31, 2016 were less than $1 million and, therefore, are not quantified in the table above.

** Pre- and post-modification TDR real estate loans held for sale for the three months ended March 31, 2015 were less than $1 million and, therefore, are not quantified in the table above.

(b) “Other” modifications primarily include forgiveness of principal or interest.

Schedule of Information regarding new volume of TDR finance receivables held for sale

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 March 31, 2016
Pre-modification TDR net finance receivables *	$	—	$	1	$	1
Post-modification TDR net finance receivables *	$	—	$	1	$	1
Number of TDR accounts	128		19		147
Three Months Ended March 31, 2015
Pre-modification TDR net finance receivables **	$	—	$	—	$	—
Post-modification TDR net finance receivables **	$	—	$	—	$	—
Number of TDR accounts	—		9		9

* Pre- and post-modification TDR personal loans held for sale for the three months ended March 31, 2016 were less than $1 million and, therefore, are not quantified in the table above.

** Pre- and post-modification TDR real estate loans held for sale for the three months ended March 31, 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		SpringCastle Portfolio		Real Estate Loans (a)		Total
Three Months Ended March 31, 2016
TDR net finance receivables (b) (c)	$	1	$	—	$	1	$	2
Number of TDR accounts	355		19		20		394
Three Months Ended March 31, 2015
TDR net finance receivables (b) (d)	$	—	$	—	$	1	$	1
Number of TDR accounts	57		10		18		85

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

(dollars in millions)	Real Estate Loans
Three Months Ended March 31, 2016
TDR net finance receivables	$	1
Number of TDR accounts	9
Three Months Ended March 31, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	9

* TDR real estate loans held for sale for the three months ended March 31, 2015 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the table above.

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

(c) TDR SpringCastle Portfolio loans for the three months ended March 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

(d) TDR personal loans and SpringCastle Portfolio loans for the three months ended March 31, 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 HFS that defaulted during the previously 12-month period

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

(dollars in millions)	Real Estate Loans
Three Months Ended March 31, 2016
TDR net finance receivables	$	1
Number of TDR accounts	9
Three Months Ended March 31, 2015
TDR net finance receivables *	$	—
Number of TDR accounts	9

* TDR real estate loans held for sale for the three months ended March 31, 2015 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the table above.

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Allowance for Finance Receivable Losses (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016
Balance at beginning of period	$	173		$	4		$	41		$	1		$	219
Provision for finance receivable losses	73			18			3			—			94
Charge-offs	(89		)	(21		)	(2		)	(1		)	(113		)
Recoveries	11			3			1			—			15
Other *	—			(4		)	—			—			(4		)
Balance at end of period	$	168		$	—		$	43		$	—		$	211
Three Months Ended March 31, 2015
Balance at beginning of period	$	130		$	3		$	40		$	1		$	174
Provision for finance receivable losses	55			27			4			—			86
Charge-offs	(61		)	(30		)	(6		)	(1		)	(98		)
Recoveries	8			3			1			1			13
Balance at end of period	$	132		$	3		$	39		$	1		$	175

* Consists of the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale.

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 March 31,
	2016		2015
Charged-off against provision for finance receivable losses:
SCP Loans	$	4	$	7

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
March 31, 2016
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	157		$	—		$	—		$	—		$	157
Purchased credit impaired finance receivables	—			—			8			—			8
TDR finance receivables	11			—			35			—			46
Total	$	168		$	—		$	43		$	—		$	211
Finance receivables:
Collectively evaluated for impairment	$	4,347		$	—		$	366		$	19		$	4,732
Purchased credit impaired finance receivables	—			—			27			—			27
TDR finance receivables	31			—			110			—			141
Total	$	4,378		$	—		$	503		$	19		$	4,900
Allowance for finance receivable losses as a percentage of finance receivables	3.83		%	—		%	8.52		%	2.91		%	4.31		%
December 31, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	165		$	—		$	—		$	1		$	166
Purchased credit impaired finance receivables	—			—			7			—			7
TDR finance receivables	8			4			34			—			46
Total	$	173		$	4		$	41		$	1		$	219
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			223			28			—			251
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,576		$	524		$	23		$	6,423
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.27		%	7.93		%	3.45		%	3.41		%

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

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
March 31, 2016
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	76	$	1	$	—		$	77
Obligations of states, municipalities, and political subdivisions	91		1		—			92
Corporate debt	310		4		(7		)	307
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	70		—		—			70
Commercial mortgage-backed securities (“CMBS”)	47		—		—			47
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	18		—		—			18
Total bonds	612		6		(7		)	611
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	619	$	6	$	(8	)	$	617
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	74		—		—			74
CMBS	44		—		—			44
CDO/ABS	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total *	$	604	$	3	$	(16	)	$	591

* 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 March 31, 2016 and December 31, 2015, which is classified as a restricted investment and carried at cost.

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
March 31, 2016
Bonds:
U.S. government and government sponsored entities	$	30	$	—		$	—	$	—		$	30	$	—
Obligations of states, municipalities, and political subdivisions	19		—			3		—			22		—
Corporate debt	85		(7		)	6		—			91		(7		)
RMBS	16		—			—		—			16		—
CMBS	25		—			5		—			30		—
CDO/ABS	7		—			—		—			7		—
Total bonds	182		(7		)	14		—			196		(7		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	183	$	(7	)	$	20	$	(1	)	$	203	$	(8	)
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)

* 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 March 31, 2016 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	$	83	$	83
Due after 1 year through 5 years	214		213
Due after 5 years through 10 years	61		60
Due after 10 years	118		121
Mortgage-backed, asset-backed, and collateralized securities	135		135
Total	$	611	$	612

Schedule of fair value of trading securities by type

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

(dollars in millions)	March 31, 2016		December 31, 2015
Fixed maturity trading and other securities:
Bonds:
Corporate debt	$	1	$	10
Mortgage-backed, asset-backed, and collateralized:
CMBS	2		2
Total *	$	3	$	12

* The fair value of other securities totaled $3 million at March 31, 2016 and $2 million at December 31, 2015.

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 proceeds 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 March 31,
	2016		2015
Proceeds from sales and redemptions	$	70	$	74
Realized gains	$	1	$	7
Realized losses	—		(1		)
Net realized gains	$	1	$	6

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 and other securities, which we report in investment revenues, were as follows:

(dollars in millions)	Three Months Ended March 31,
	2016 *		2015
Net unrealized gains (losses) on trading and other securities held at period end	$	—	$	3
Net realized gains (losses) on trading and other securities sold or redeemed	—		—
Total	$	—	$	3

* Net unrealized and realized gains (losses) on trading and other securities were less than $1 million for the three months ended March 31, 2016 and, therefore, are not quantified in the table above.

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Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

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

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at March 31, 2016 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt			Total
Interest rates (a)	2.41% - 6.50%			1.92% - 2.77%		5.25% - 8.25%			6.00		%
Second quarter 2016	$	—		$	—	$	—		$	—		$	—
Third quarter 2016	—			—		375			—			375
Fourth quarter 2016	—			—		—			—			—
First quarter 2017	—			—		—			—			—
Remainder of 2017	—			—		1,889			—			1,889
2018	—			—		—			—			—
2019	—			—		700			—			700
2020	—			—		300			—			300
2021-2067	—			—		950			350			1,300
Securitizations (b)	2,012			—		—			—			2,012
Revolving conduit facilities (b)	—			1,098		—			—			1,098
Total principal maturities	$	2,012		$	1,098	$	4,214		$	350		$	7,674
Total carrying amount (c)	$	2,003		$	1,098	$	3,914		$	172		$	7,187
Debt issuance costs (d)	$	(9	)	$	—	$	(12	)	$	—		$	(21	)

(a) The interest rates shown are the range of contractual rates in effect at March 31, 2016.

(b) Securitizations and borrowings under revolving conduit facilities 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 and revolving conduit facilities.

(c) The carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) 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) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which are reported in other assets and are excluded from the table above.

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2016

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)	March 31, 2016		December 31, 2015
Assets
Cash and cash equivalents	$	1	$	7
Finance receivables:
Personal loans	3,592		3,621
SpringCastle Portfolio	—		1,576
Allowance for finance receivable losses	113		128
Finance receivables held for sale	—		435
Restricted cash and cash equivalents	212		282
Other assets	75		48
Liabilities
Long-term debt	$	3,101	$	5,513
Other liabilities	6		9

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2016

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

Schedule of changes in accumulated other comprehensive income

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2016
Balance at beginning of period	$	(9	)	$	(19	)	$	4	$	(24	)
Other comprehensive income before reclassifications	8			—			—		8
Reclassification adjustments from accumulated other comprehensive income (loss)	(1		)	—			—		(1		)
Balance at end of period	$	(2	)	$	(19	)	$	4	$	(17	)
Three Months Ended March 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4	$	3
Other comprehensive income before reclassifications	3			—			1		4
Reclassification adjustments from accumulated other comprehensive income (loss)	(4		)	—			—		(4		)
Balance at end of period	$	11		$	(13	)	$	5	$	3

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 March 31,
	2016		2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, before taxes	$	1	$	6
Income tax effect	—		(2		)
Reclassification from accumulated other comprehensive income    (loss) to investment revenues, net of taxes	$	1	$	4

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Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31,
	2016			2015
Components of net periodic benefit cost - pension plans:
Interest cost	$	4		$	4
Expected return on assets	(4		)	(5		)
Net periodic benefit cost	$	—		$	(1	)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

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			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2016
Interest income	$	311	$	101	$	15		$	1		$	3		$	431
Interest expense	95		20		13			4			24			156
Provision for finance receivable losses	73		17		2			—			2			94
Net interest income (loss) after provision for finance receivable losses	143		64		—			(3		)	(23		)	181
Net gain on sale of SpringCastle interests	—		229		—			—			—			229
Other revenues *	45		—		(11		)	50			1			85
Other expenses	174		14		7			(4		)	—			191
Income (loss) before provision for (benefit from) income taxes	14		279		(18		)	51			(22		)	304
Income before provision for income taxes attributable to non-controlling interests	—		26		—			—			—			26
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	14	$	253	$	(18	)	$	51		$	(22	)	$	278
Assets	$	5,704	$	101	$	667		$	4,042		$	(22	)	$	10,492

* Other revenues reported in “Other” includes interest income on the Independence Demand Note and on SFC’s note receivable from SFI. See Note 9 for further information on the notes receivable from parent and affiliates.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Three Months Ended   March 31, 2015
Interest income	$	254	$	125	$	18		$	2		$	—		$	3		$	402
Interest expense	40		23		60			10			(5		)	30			158
Provision for finance receivable losses	55		27		2			—			—			2			86
Net interest income (loss) after provision for finance receivable losses	159		75		(44		)	(8		)	5			(29		)	158
Other revenues	51		5		3			2			(5		)	(3		)	53
Other expenses	140		16		7			5			—			1			169
Income (loss) before provision for (benefit from) income taxes	70		64		(48		)	(11		)	—			(33		)	42
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	$	70	$	33	$	(48	)	$	(11	)	$	—		$	(33	)	$	11
Assets *	$	4,821	$	1,958	$	3,613		$	1,832		$	—		$	17		$	12,241

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified $32 million of debt issuance costs from other assets to long-term debt as of March 31, 2015.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $216 million at March 31, 2015.

• During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within our segment footnote and have corrected the previously disclosed total assets at March 31, 2015 in the table above.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

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

The following table 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
March 31, 2016
Assets
Cash and cash equivalents	$	358	$	7	$	—	$	365	$	365
Investment securities	—		619		2		621		621
Net finance receivables, less allowance for finance receivable losses	—		—		4,912		4,912		4,689
Finance receivables held for sale	—		—		804		804		776
Notes receivable from parent and affiliates	—		3,775		—		3,775		3,775
Restricted cash and cash equivalents	225		—		—		225		225
Other assets:
Commercial mortgage loans	—		—		53		53		53
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		28		—		28		28
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	7,470	$	—	$	7,470	$	7,187
Note payable to affiliate	—		374		—		374		374
Payables to parent and affiliates	—		34		—		34		34
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,204
Finance receivables held for sale	—		—		819		819		796
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24

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
March 31, 2016
Assets
Cash equivalents in mutual funds	$	129	$	—	$	—	$	129
Cash equivalents in certificates of deposit and commercial paper	—		7		—		7
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		77		—		77
Obligations of states, municipalities, and political subdivisions	—		92		—		92
Corporate debt	—		307		—		307
RMBS	—		70		—		70
CMBS	—		47		—		47
CDO/ABS	—		18		—		18
Total bonds	—		611		—		611
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities *	—		616		1		617
Other securities:
Bonds:
Corporate debt	—		1		—		1
CMBS	—		2		—		2
Total other securities	—		3		—		3
Total investment securities	—		619		1		620
Restricted cash in mutual funds	210		—		—		210
Total	$	339	$	626	$	1	$	966

* 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 March 31, 2016, which is carried at cost.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(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 December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

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:

			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   March 31, 2016
Investment securities:
Available-for-sale securities:
Other long-term investments	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Total	$	1	$	—	$	—	$	—	$	—	$	—		$	1
Three Months Ended   March 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	—	$	—	$	—		$	4
CMBS	3		—		—		—		—		(3		)	—
Total bonds	7		—		—		—		—		(3		)	4
Other long-term investments	1		—		—		—		—		—			1
Total	$	8	$	—	$	—	$	—	$	—	$	(3	)	$	5

* During the three months ended March 31, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the greater 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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
RMBS	Discounted cash flows	Spread	693 bps (a)	665 bps (a)
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 (b)	N/A (b)

(a) At March 31, 2016 and December 31, 2015, RMBS consisted of one bond, which was less than $1 million.

(b) 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
March 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	170	$	170
Real estate owned	—		—		10		10
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	188	$	188
December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11
Commercial mortgage loans	—		—		8		8
Total	$	—	$	—	$	19	$	19

* The fair value information presented in the table 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 March 31,
	2016		2015
Assets
Finance receivables held for sale	$	2	$	—
Real estate owned	1		1
Commercial mortgage loans *	1		—
Total	$	4	$	1

* Net impairment charges recorded on commercial mortgage loans for the three months ended March 31, 2015 was less than $1 million and, therefore, is not quantified in the table above.

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 March 31, 2016 and December 31, 2015 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	March 31, 2016	December 31, 2015
Finance receivables held for sale	Income approach	National market conditions Operating performance	N/A*	—
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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Business and Basis of Presentation (Details)	Mar. 31, 2016	Mar. 30, 2016
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%

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Significant Transactions -- SpringCastle Interests Sale (Details) $ in Millions		3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Ownership percentage in joint venture	47.00%	47.00%
Net finance receivables	$ 4,900	$ 4,900		$ 6,423
Income before provision for income taxes		304	$ 42
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation		278	11
Net gain on sale of SpringCastle interests		$ 229	0
Majority Shareholder
Percent of common stock held by related party	58.00%	58.00%
Acquisitions and Servicing | Operating Segments
Income before provision for income taxes		$ 279	64
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation		253	$ 33
Net gain on sale of SpringCastle interests		229
SpringCastle Portfolio
Number of loans acquired, over				232,000
Net finance receivables	$ 0	$ 0		$ 1,576
SpringCastle Interests Sale
Ownership percentage in joint venture	47.00%	47.00%
Aggregate purchase price	$ 112	$ 112
Aggregate purchase price	101	101
Escrow advance receivable	$ 11	$ 11
Maximum number of days, to place the remaining funds in an escrow account	120 days
Maximum number of years, the amount must be left in the escrow account	5 years
SpringCastle Interests Sale | NRZ Consumer LLC
Ownership percentage in joint venture	30.00%	30.00%
SpringCastle Interests Sale | Blackstone Buyers
Ownership percentage in joint venture	23.00%	23.00%

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Significant Transactions -- OMH's Acquisition of OneMain Financial Holdings, Inc. (Details) - OneMain $ in Billions	Nov. 15, 2015 USD ($)	Nov. 13, 2015 state branch
Business Acquisition [Line Items]
Payments to acquire business | $	$ 4.5
Business Combination, Number Of Branches To Be Divested | branch		127
Number of states which divested branches operate | state		11

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Significant Transactions -- Lendmark Sale (Details)			3 Months Ended	6 Months Ended
	Nov. 13, 2015	Nov. 12, 2015 USD ($) branch	Mar. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)
Business Acquisition [Line Items]
Period of time the loans were in held for sale				6 months
Number of extensions			2	2
Sale of Branches to Lendmark
Business Acquisition [Line Items]
Business Combination, Number Of Branches To Be Divested | branch		127
Purchase price threshold, percent of aggregate unpaid loan balance		103.00%
Number of days to close	120 days
Sale of Branches to Lendmark | Number of Branches
Business Acquisition [Line Items]
Concentration risk percent			15.00%
Sale of Branches to Lendmark | Loans and Leases Receivable, Gross, Consumer, Installment and Revolving
Business Acquisition [Line Items]
Concentration risk percent			12.00%
Sale of Branches to Lendmark | Personal loans
Business Acquisition [Line Items]
Loans held for sale			$ 606,000,000	$ 606,000,000	$ 608,000,000
Sale of Branches to Lendmark | Maximum
Business Acquisition [Line Items]
Purchase price threshold for sale being subject to certain limitations		$ 695,000,000

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Finance Receivables Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 30, 2016
Finance Receivables
Net finance receivables	$ 4,900,000,000	$ 6,423,000,000
Ownership percentage in joint venture	47.00%
Loans receivable held for sale	$ 776,000,000	796,000,000
Commitments to lend additional funds	$ 0
Unlikely to be Collected Financing Receivable
Finance Receivables
Accrual of finance charges, past due period	60 days
Corporate Joint Venture
Finance Receivables
Ownership percentage in joint venture			47.00%
Consolidated VIEs
Finance Receivables
Loans receivable held for sale	$ 0	$ 435,000,000
Real estate loans secured by first mortgages
Finance Receivables
Net finance receivables, percent of finance receivables outstanding	39.00%	39.00%
Real estate loans secured by second mortgages
Finance Receivables
Net finance receivables, percent of finance receivables outstanding	61.00%	61.00%
Personal loans
Finance Receivables
Net finance receivables	$ 4,378,000,000	$ 4,300,000,000
Accrual of finance charges, past due period	90 days
Loans receivable held for sale	$ 606,000,000	617,000,000
Personal loans | Consolidated VIEs | Consumer Loan Securitizations
Finance Receivables
Net finance receivables	$ 3,592,000,000	3,621,000,000
Personal loans | Minimum
Finance Receivables
Finance receivables original term	2 years
Personal loans | Maximum
Finance Receivables
Finance receivables original term	5 years
Personal loans | Titled personal property
Finance Receivables
Collateral for secured borrowings	$ 2,500,000,000	$ 2,400,000,000
Collateral for secured borrowings, percent of finance receivables	58.00%	56.00%
Personal loans | Consumer household goods or other items of personal property
Finance Receivables
Collateral for secured borrowings	$ 1,900,000,000	$ 1,900,000,000
Collateral for secured borrowings, percent of finance receivables	42.00%	44.00%
Real estate loans
Finance Receivables
Net finance receivables	$ 503,000,000	$ 524,000,000
Real estate loans | Real estate loans secured by first mortgages
Finance Receivables
Net finance receivables	197,000,000	202,000,000
Real estate loans | Real estate loans secured by second mortgages
Finance Receivables
Net finance receivables	$ 306,000,000	322,000,000
Real estate loans | Maximum
Finance Receivables
Finance receivables original term	360 months
Retail Sales Finance
Finance Receivables
Net finance receivables	$ 19,000,000	23,000,000
Retail Sales Finance | Maximum
Finance Receivables
Finance receivables original term	60 months
SpringCastle Portfolio
Finance Receivables
Net finance receivables	$ 0	1,576,000,000
SpringCastle Portfolio | Consolidated VIEs | Mortgage Loan Securitizations
Finance Receivables
Net finance receivables	$ 0	$ 1,576,000,000
Revolving Credit Facility
Finance Receivables
Accrual of finance charges, past due period	180 days

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Finance Receivables - Components of Net Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Finance Receivables
Gross receivables	$ 5,595	$ 7,118
Unearned finance charges and points and fees	(800)	(835)
Accrued finance charges	61	95
Deferred origination costs	44	45
Net finance receivables	4,900	6,423
Personal loans
Finance Receivables
Gross receivables	5,075	5,028
Unearned finance charges and points and fees	(798)	(833)
Accrued finance charges	57	60
Deferred origination costs	44	45
Net finance receivables	4,378	4,300
SpringCastle Portfolio
Finance Receivables
Gross receivables	0	1,545
Unearned finance charges and points and fees	0	0
Accrued finance charges	0	31
Deferred origination costs	0	0
Net finance receivables	0	1,576
Real estate loans
Finance Receivables
Gross receivables	499	520
Unearned finance charges and points and fees	0	0
Accrued finance charges	4	4
Deferred origination costs	0	0
Net finance receivables	503	524
Retail Sales Finance
Finance Receivables
Gross receivables	21	25
Unearned finance charges and points and fees	(2)	(2)
Accrued finance charges	0	0
Deferred origination costs	0	0
Net finance receivables	$ 19	$ 23

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Finance Receivables - Unused Lines of Credit (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Finance Receivables
Unused credit lines	$ 21	$ 397
Personal loans
Finance Receivables
Unused credit lines	1	2
SpringCastle Portfolio
Finance Receivables
Unused credit lines	0	365
Real estate loans
Finance Receivables
Unused credit lines	$ 20	$ 30

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Finance Receivables - Net Finance Receivables by Type and Days Delinquent (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Net finance receivables:
Net finance receivables	$ 4,900	$ 6,423
Total delinquent finance receivables	179	254
Current	4,652	6,048
Personal loans
Net finance receivables:
Net finance receivables	4,378	4,300
Total delinquent finance receivables	140	158
Current	4,186	4,077
SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	1,576
Total delinquent finance receivables	0	58
Current	0	1,475
Real estate loans
Net finance receivables:
Net finance receivables	503	524
Total delinquent finance receivables	39	37
Current	447	474
Retail Sales Finance
Net finance receivables:
Net finance receivables	19	23
Total delinquent finance receivables	0	1
Current	19	22
60-89 days past due
Net finance receivables:
Net finance receivables	45	89
60-89 days past due | Personal loans
Net finance receivables:
Net finance receivables	39	49
60-89 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	22
60-89 days past due | Real estate loans
Net finance receivables:
Net finance receivables	6	18
60-89 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	0
90-119 days past due
Net finance receivables:
Net finance receivables	38	58
90-119 days past due | Personal loans
Net finance receivables:
Net finance receivables	33	41
90-119 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	14
90-119 days past due | Real estate loans
Net finance receivables:
Net finance receivables	5	3
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	36	48
120-149 days past due | Personal loans
Net finance receivables:
Net finance receivables	33	34
120-149 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	11
120-149 days past due | Real estate loans
Net finance receivables:
Net finance receivables	3	2
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	35	43
150-179 days past due | Personal loans
Net finance receivables:
Net finance receivables	32	31
150-179 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	10
150-179 days past due | Real estate loans
Net finance receivables:
Net finance receivables	3	2
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	25	16
180 days or more past due | Personal loans
Net finance receivables:
Net finance receivables	3	3
180 days or more past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	1
180 days or more past due | Real estate loans
Net finance receivables:
Net finance receivables	22	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	69	121
30-59 days past due | Personal loans
Net finance receivables:
Net finance receivables	52	65
30-59 days past due | SpringCastle Portfolio
Net finance receivables:
Net finance receivables	0	43
30-59 days past due | Real estate loans
Net finance receivables:
Net finance receivables	17	13
30-59 days past due | Retail Sales Finance
Net finance receivables:
Net finance receivables	$ 0	$ 0

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Finance Receivables - Performing and NonPerforming Net Finance Receivables by Type (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Performing and nonperforming net finance receivables by type
Net finance receivables due	$ 4,900	$ 6,423
Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	4,378	4,300
SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	0	1,576
Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	503	524
Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	19	23
Performing
Performing and nonperforming net finance receivables by type
Net finance receivables due	4,766	6,258
Performing | Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	4,277	4,191
Performing | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	0	1,540
Performing | Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	470	505
Performing | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	19	22
Nonperforming
Performing and nonperforming net finance receivables by type
Net finance receivables due	134	165
Nonperforming | Personal loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	101	109
Nonperforming | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Net finance receivables due	0	36
Nonperforming | Real estate loans
Performing and nonperforming net finance receivables by type
Net finance receivables due	33	19
Nonperforming | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Net finance receivables due	$ 0	$ 1

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Finance Receivables - Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Finance Receivables
Carrying amount, net of allowance	$ 71	$ 299
Outstanding balance	132	618
Allowance for purchased credit impaired finance receivable losses	8	7
SpringCastle Portfolio
Finance Receivables
Carrying amount, net of allowance	0	223
Outstanding balance	0	482
Allowance for purchased credit impaired finance receivable losses	0	0
Affiliates of Fortress or AIG
Finance Receivables
Carrying amount, net of allowance	71	76
Outstanding balance	132	136
Allowance for purchased credit impaired finance receivable losses	8	7
Carrying amount, net of allowance, held for sale	52	55
Outstanding balance, held for sale	$ 87	$ 89

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Finance Receivables - Changes in Accretable Yield for Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	$ 461	$ 560
Accretion	(18)	(27)
Transfer due to finance receivables sold	(399)
Disposals of finance receivables	(8)	(12)
Balance at end of period	36	521
SpringCastle Portfolio
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	422	541
Accretion	(16)	(24)
Transfer due to finance receivables sold	(399)
Disposals of finance receivables	(7)	(12)
Balance at end of period	0	505
Affiliates of Fortress or AIG
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	39	19
Accretion	(2)	(3)
Transfer due to finance receivables sold	0
Disposals of finance receivables	(1)	0
Balance at end of period	36	16
Finance Receivables Originated
Changes in accretable yield for purchased credit impaired finance receivables
Accretion on purchased credit impaired finance receivables held for sale	$ 1	$ 2

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Finance Receivables - TDR Finance Receivables (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Allowance for TDR finance receivable losses	$ 46,000,000		$ 46,000,000
TDR net finance receivables	141,000,000		151,000,000
Personal Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	1,000,000	$ 1,000,000
TDR gross finance receivables	2,000,000		2,000,000
TDR net finance receivables	2,000,000		2,000,000
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	1,000,000	1,000,000
TDR gross finance receivables	91,000,000		92,000,000
TDR net finance receivables	91,000,000		92,000,000
Total Held for Sale
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	93,000,000		94,000,000
TDR net finance receivables	93,000,000		94,000,000
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	1,000,000	$ 1,000,000
Allowance for TDR finance receivable losses			4,000,000
TDR net finance receivables			13,000,000
Spring Castle portfolio held for investment [Member] | SpringCastle Portfolio | SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	0		14,000,000
TDR net finance receivables	0		13,000,000
Allowance for TDR finance receivable losses	0		4,000,000
Real Estate Loans Held for Sale | Real Estate Loans Held for Investment [Member] | Real Estate Loan
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	199,000,000		200,000,000
TDR net finance receivables	201,000,000		201,000,000
Allowance for TDR finance receivable losses	35,000,000		34,000,000
Personal Loans Held for Sale | consumer loan held for investment [Member] | Personal loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	33,000,000		32,000,000
TDR net finance receivables	33,000,000		31,000,000
Allowance for TDR finance receivable losses	11,000,000		9,000,000
Total Finance Receivables Held for Sale | finance receivables loans Held for Investment [Member] | Financing Receivable
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	232,000,000		246,000,000
TDR net finance receivables	234,000,000		245,000,000
Allowance for TDR finance receivable losses	$ 46,000,000		$ 47,000,000

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Finance Receivables - TDR Average Net Receivables and Finance Charges Recognized (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	$ 244	$ 231
TDR finance charges recognized	4	4
Personal Loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	32	25
TDR finance charges recognized	1	1
Personal Loans | Personal Loans Held for Sale
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	2	0
TDR finance charges recognized	0	0
SpringCastle Portfolio
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	11	11
TDR finance charges recognized	0	0
Real estate loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	201	195
TDR finance charges recognized	3	3
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	90
TDR finance charges recognized	1	1
Financing Receivable | Total Finance Receivables Held for Sale
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	94	90
TDR finance charges recognized	$ 1	$ 1

XML

Finance Receivables - New Volume of TDR Finance Receivables (Details)	3 Months Ended
	Mar. 31, 2016 USD ($) account	Mar. 31, 2015 USD ($) account
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 14,000,000	$ 15,000,000
Rate reduction	9,000,000	11,000,000
Other	4,000,000	3,000,000
Post-modification TDR net finance receivables:	$ 13,000,000	$ 14,000,000
Number of TDR accounts | account	2,028	2,127
Total Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 1,000,000	$ 0
Post-modification TDR net finance receivables:	$ 1,000,000	$ 0
Number of TDR accounts | account	147	9
Personal loans
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 9,000,000	$ 9,000,000
Rate reduction	5,000,000	5,000,000
Other	3,000,000	3,000,000
Post-modification TDR net finance receivables:	$ 8,000,000	$ 8,000,000
Number of TDR accounts | account	1,782	1,854
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 1,000,000	$ 2,000,000
Rate reduction	1,000,000	2,000,000
Other	0	0
Post-modification TDR net finance receivables:	$ 1,000,000	$ 2,000,000
Number of TDR accounts | account	157	195
Real estate loans
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 4,000,000	$ 4,000,000
Rate reduction	3,000,000	4,000,000
Other	1,000,000	0
Post-modification TDR net finance receivables:	$ 4,000,000	$ 4,000,000
Number of TDR accounts | account	89	78
Personal Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 0	$ 0
Post-modification TDR net finance receivables:	$ 0	$ 0
Number of TDR accounts | account	128	0
Pre-modification TDR net finance receivables	$ 1,000,000	$ 1,000,000
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	1,000,000	0
Post-modification TDR net finance receivables:	$ 1,000,000	$ 0
Number of TDR accounts | account	19	9
Pre-modification TDR net finance receivables	$ 1,000,000	$ 1,000,000

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Finance Receivables - Net Finance Receivables Modified as TDRs (Details)	3 Months Ended
	Mar. 31, 2016 USD ($) account	Mar. 31, 2015 USD ($) account
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	$ 2,000,000	$ 1,000,000
Number of TDR accounts | account	394	85
Personal Loans
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables		$ 1,000,000
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	$ 1,000,000
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Pre-modification TDR net finance receivables	1,000,000	1,000,000
Personal loans
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	$ 1,000,000	$ 0
Number of TDR accounts | account	355	57
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	$ 0	$ 0
Number of TDR accounts | account	19	10
Real estate loans
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	$ 1,000,000	$ 1,000,000
Number of TDR accounts | account	20	18
Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
TDR net finance receivables	$ 1,000,000	$ 0
Number of TDR accounts | account	9	9
Pre-modification TDR net finance receivables	$ 1,000,000	$ 1,000,000

XML

Allowance for Finance Receivable Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	$ 219	$ 174
Provision for finance receivable losses	94	86
Charge-offs	(113)	(98)
Recoveries	15	13
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale	(4)
Balance at end of period	211	175
Consolidated VIEs
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	128
Balance at end of period	113
Personal loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	173	130
Provision for finance receivable losses	73	55
Charge-offs	(89)	(61)
Recoveries	11	8
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale	0
Balance at end of period	168	132
SpringCastle Portfolio
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	4	3
Provision for finance receivable losses	18	27
Charge-offs	(21)	(30)
Recoveries	3	3
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale	(4)
Balance at end of period	0	3
Carrying amount charged-off for purchased credit impaired loans
Net charge-offs on finance receivables held for sale	4	7
Real estate loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	41	40
Provision for finance receivable losses	3	4
Charge-offs	(2)	(6)
Recoveries	1	1
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale	0
Balance at end of period	43	39
Retail Sales Finance
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period	1	1
Provision for finance receivable losses	0
Charge-offs	(1)	(1)
Recoveries		1
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale	0
Balance at end of period	$ 0	$ 1

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Allowance for Finance Receivable Losses - by Type and by Impairment Method (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$ 157	$ 166
Purchased credit impaired finance receivables	211	219	$ 175	$ 174
TDR finance receivables	46	46
Allowance for finance receivable losses	211	219	175	174
Finance receivables:
Collectively evaluated for impairment	4,732	6,021
Purchased credit impaired finance receivables	4,900	6,423
TDR finance receivables	$ 141	$ 151
Allowance for finance receivable losses as a percentage of finance receivables	4.31%	3.41%
Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Purchased credit impaired finance receivables	$ 8	$ 7
Allowance for finance receivable losses	8	7
Finance receivables:
Purchased credit impaired finance receivables	27	251
Personal loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	157	165
Purchased credit impaired finance receivables	168	173	132	130
TDR finance receivables	11	8
Allowance for finance receivable losses	168	173	132	130
Finance receivables:
Collectively evaluated for impairment	4,347	4,271
Purchased credit impaired finance receivables	4,378	4,300
TDR finance receivables	$ 31	$ 29
Allowance for finance receivable losses as a percentage of finance receivables	3.83%	4.01%
Personal loans | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Purchased credit impaired finance receivables	$ 0	$ 0
Allowance for finance receivable losses	0	0
Finance receivables:
Purchased credit impaired finance receivables	0	0
SpringCastle Portfolio
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0	0
Purchased credit impaired finance receivables	0	4	3	3
TDR finance receivables		4
Allowance for finance receivable losses	0	4	3	3
Finance receivables:
Collectively evaluated for impairment	0	1,340
Purchased credit impaired finance receivables	$ 0	1,576
TDR finance receivables		$ 13
Allowance for finance receivable losses as a percentage of finance receivables	0.00%	0.27%
SpringCastle Portfolio | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Purchased credit impaired finance receivables	$ 0	$ 0
Allowance for finance receivable losses	0	0
Finance receivables:
Purchased credit impaired finance receivables	0	223
Real estate loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0	0
Purchased credit impaired finance receivables	43	41	39	40
TDR finance receivables	35	34
Allowance for finance receivable losses	43	41	39	40
Finance receivables:
Collectively evaluated for impairment	366	387
Purchased credit impaired finance receivables	503	524
TDR finance receivables	$ 110	$ 109
Allowance for finance receivable losses as a percentage of finance receivables	8.52%	7.93%
Real estate loans | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Purchased credit impaired finance receivables	$ 8	$ 7
Allowance for finance receivable losses	8	7
Finance receivables:
Purchased credit impaired finance receivables	27	28
Retail Sales Finance
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0	1
Purchased credit impaired finance receivables	0	1	1	1
TDR finance receivables	0	0
Allowance for finance receivable losses	0	1	$ 1	$ 1
Finance receivables:
Collectively evaluated for impairment	19	23
Purchased credit impaired finance receivables	19	23
TDR finance receivables	$ 0	$ 0
Allowance for finance receivable losses as a percentage of finance receivables	2.91%	3.45%
Retail Sales Finance | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Purchased credit impaired finance receivables	$ 0	$ 0
Allowance for finance receivable losses	0	0
Finance receivables:
Purchased credit impaired finance receivables	$ 0	$ 0

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Finance Receivables Held for Sale (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Finance Receivables
Loans receivable held for sale	$ 776,000,000		$ 796,000,000
Collectively evaluated for impairment	4,732,000,000		6,021,000,000
Finance receivables held for sale originated as held for investment	47,000,000	$ 4,000,000
Net gain on sale of SpringCastle interests	229,000,000	0
Finance Receivables Held For Sale Originated as Held-for-investment	0	$ 0
Personal loans
Finance Receivables
Loans receivable held for sale	606,000,000		617,000,000
Collectively evaluated for impairment	4,347,000,000		4,271,000,000
Real Estate Loan
Finance Receivables
Loans receivable held for sale	170,000,000		179,000,000
Real Estate Loans Held for Sale
Finance Receivables
Collectively evaluated for impairment	2,000,000
SpringCastle Portfolio
Finance Receivables
Collectively evaluated for impairment	0		$ 1,340,000,000
Financing Receivable, Reclassification to Held-for-sale	$ 1,500,000,000

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Investment Securities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	$ 619	$ 604
Unrealized Gains	6	3
Unrealized Losses	(8)	(16)
Fair Value	617	591
Interest in a limited partnership	1	1
Bonds
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	612	597
Unrealized Gains	6	3
Unrealized Losses	(7)	(15)
Fair Value	611	585
U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	76	83
Unrealized Gains	1	0
Unrealized Losses	0	(1)
Fair Value	77	82
Obligations of states, municipalities, and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	91	88
Unrealized Gains	1	1
Unrealized Losses	0	0
Fair Value	92	89
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	310	278
Unrealized Gains	4	2
Unrealized Losses	(7)	(13)
Fair Value	307	267
Residential mortgage-backed securities (“RMBS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	70	74
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	70	74
Commercial mortgage-backed securities (“CMBS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	47	44
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	47	44
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	18	30
Unrealized Gains	0	0
Unrealized Losses	0	(1)
Fair Value	18	29
Preferred stock
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	6	6
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	5	5
Other long-term investments
Schedule of Available-for-sale Securities [Line Items]
Cost/ Amortized Cost	1	1
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	$ 1	$ 1

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Investment Securities Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
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
Other than temporarily impaired available for sale securities	0	$ 0
Credit losses on other than temporary impaired available for sale securities	0	$ 0
Available-for-sale securities	617,000,000		591,000,000
Other than temporary impairment losses recognized in earnings	0
Insurance Regulatory Authorities Bonds on Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities	$ 11,000,000		$ 11,000,000

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Investment Securities - FV and Unrealized Losses on AFS Securities by Type and Length of Time in Continuous Unrealized Loss Position (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Minimum disclosure of Unrealized losses on certain available-for-sale securities	$ 1,000,000
Fair Value
Less Than 12 Months	183,000,000	$ 435,000,000
12 Months or Longer	20,000,000	20,000,000
Total	203,000,000	455,000,000
Unrealized Losses
Less Than 12 Months	(7,000,000)	(15,000,000)
12 Months or Longer	(1,000,000)	(1,000,000)
Total	(8,000,000)	(16,000,000)
Bonds
Fair Value
Less Than 12 Months	182,000,000	434,000,000
12 Months or Longer	14,000,000	14,000,000
Total	196,000,000	448,000,000
Unrealized Losses
Less Than 12 Months	(7,000,000)	(15,000,000)
12 Months or Longer	0	0
Total	(7,000,000)	(15,000,000)
U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	30,000,000	76,000,000
12 Months or Longer	0
Total	30,000,000	76,000,000
Unrealized Losses
Less Than 12 Months	0	(1,000,000)
12 Months or Longer	0	0
Total	0	(1,000,000)
Obligations of states, municipalities, and political subdivisions
Fair Value
Less Than 12 Months	19,000,000	36,000,000
12 Months or Longer	3,000,000	2,000,000
Total	22,000,000	38,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
Corporate debt
Fair Value
Less Than 12 Months	85,000,000	189,000,000
12 Months or Longer	6,000,000	7,000,000
Total	91,000,000	196,000,000
Unrealized Losses
Less Than 12 Months	(7,000,000)	(13,000,000)
12 Months or Longer	0	0
Total	(7,000,000)	(13,000,000)
Residential mortgage-backed securities (“RMBS”)
Fair Value
Less Than 12 Months	16,000,000	68,000,000
12 Months or Longer	0	0
Total	16,000,000	68,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
Commercial mortgage-backed securities (“CMBS”)
Fair Value
Less Than 12 Months	25,000,000	36,000,000
12 Months or Longer	5,000,000	5,000,000
Total	30,000,000	41,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Fair Value
Less Than 12 Months	7,000,000	29,000,000
12 Months or Longer	0	0
Total	7,000,000	29,000,000
Unrealized Losses
Less Than 12 Months	0	(1,000,000)
12 Months or Longer	0	0
Total	0	(1,000,000)
Preferred stock
Fair Value
Less Than 12 Months	0	0
12 Months or Longer	6,000,000	6,000,000
Total	6,000,000	6,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	(1,000,000)	(1,000,000)
Total	(1,000,000)	(1,000,000)
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	0	0
12 Months or Longer	0	0
Total	$ 0	$ 0

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Investment Securities - Proceeds From AFS Securities Sold or Redeemed (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Available-for-sale securities sold or redeemed
Proceeds from sales and redemptions	$ 70	$ 74
Realized gains	1	7
Realized losses	0	(1)
Net realized gains	$ 1	$ 6

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Investment Securities - Contractual Maturities (Details 4) $ in Millions	Mar. 31, 2016 USD ($)
Fair Value
Due in 1 year or less	$ 83
Due after 1 year through 5 years	214
Due after 5 years through 10 years	61
Due after 10 years	118
Mortgage-backed, asset-backed, and collateralized securities	135
Total	611
Amortized Cost
Due in 1 year or less	83
Due after 1 year through 5 years	213
Due after 5 years through 10 years	60
Due after 10 years	121
Mortgage-backed, asset-backed, and collateralized securities	135
Total	$ 612

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Investment Securities - Trading and Other Securities (Details 5) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Trading securities
Other trading securities	$ 3,000,000		$ 2,000,000
Trading securities	3,000,000		12,000,000
Minimum disclosure of Unrealized losses on certain available-for-sale securities	1,000,000
Net unrealized and realized gains (losses) on trading securities
Net unrealized gains (losses) on trading and other securities held at period end	0	$ 3,000,000
Net realized gains (losses) on trading and other securities sold or redeemed	0	0
Total	0	$ 3,000,000
Corporate debt
Trading securities
Trading securities	1,000,000		10,000,000
Commercial mortgage-backed securities (“CMBS”)
Trading securities
Trading securities	$ 2,000,000		$ 2,000,000

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Transactions with Affiliates of Fortress (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Transactions with Affiliates of Fortress or AIG
Ownership percentage in joint venture	47.00%
Affiliated Entity | Logan Circle Partners L.P.
Transactions with Affiliates of Fortress or AIG
Costs and fees incurred for the investment management services, less than	$ 1,000,000	$ 1,000,000
Nationstar Mortgage LLC | Owners
Transactions with Affiliates of Fortress or AIG
Subservicing fees, less than	$ 1,000,000	$ 1,000,000

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Related Party Transactions (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) building	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Related Party Transactions
Note receivable from SFI	$ 3,775		$ 3,804
Receivables from parent and affiliates	$ 28		9
Percentage of allocated cost of service	100.00%
Affiliated Entity
Related Party Transactions
Payable due to SFI	$ 34		24
Affiliated Entity | Spring Castle Holdings LLC | Services Agreement
Related Party Transactions
Payables to parent and affiliates			4
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Intercompany Agreements
Related Party Transactions
Net payables	$ 33		19
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	$ 67	$ 54
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	1
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
Rent charged	1	1
Affiliated Entity | SFI
Related Party Transactions
Note receivable from SFI	391		389
Interest receivable on note	$ 2		1
Interest rates (as a percent)	5.39%
Interest revenue on note receivable	$ 5	$ 2
Affiliated Entity | Springleaf Finance Management Corporation
Related Party Transactions
Payable due to SFI	$ 1		1
Parent
Related Party Transactions
Payables to parent and affiliates			12
Majority Shareholder
Related Party Transactions
Receivables from parent and affiliates			$ 21

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Related Party Transactions -- Independence Demand Note (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Nov. 12, 2015
Debt Instrument [Line Items]
Notes receivable from parent and affiliates	$ 3,775,000,000	$ 3,804,000,000
Accrued finance charges	$ 61,000,000	$ 95,000,000
Independence Holding, Inc. [Member]
Debt Instrument [Line Items]
Related Party Transaction Note Receivable Maximum Borrowing Capacity			$ 3,550,000,000
Interest rates (as a percent)	5.39%
Securities Borrowed			$ 3,400,000,000
Notes receivable from parent and affiliates	$ 3,400,000,000
Accrued finance charges	15,000,000
Interest Income, Related Party	$ 46,000,000

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Related Party Transactions -- OneMain Demand Note (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Nov. 15, 2015
Debt Instrument [Line Items]
Notes receivable from parent and affiliates	$ 3,775,000,000	$ 3,804,000,000
OneMain Financial Holdings, Inc. | OneMain Demand Note [Member]
Debt Instrument [Line Items]
Related Party Transaction Note Receivable Maximum Borrowing Capacity			$ 500,000,000
Number of days notice required to demand note payment	5 days
Notes receivable from parent and affiliates	$ 0

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Related Party Transactions -- Note Payable to Affiliate (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Jan. 22, 2016	Dec. 01, 2015
Debt Instrument [Line Items]
Notes receivable from parent and affiliates	$ 3,775,000,000	$ 3,804,000,000
OneMain Financial Holdings, Inc. | OneMain Financial Holdings, Inc. | OMFH revolving demand note, OneMain Acquisition closing
Debt Instrument [Line Items]
Related Party Transaction Note Receivable Maximum Borrowing Capacity				$ 500,000,000
Number of days notice required to demand note payment		5 days
Interest rates (as a percent)	5.39%
Notes receivable from parent and affiliates			$ 370,000,000
Payables to parent and affiliates	$ 374,000,000
Interest Expense, Related Party	2,000,000
Interest due to OMFH related to Note payable	$ 4,000,000

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Long-term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Principal maturities of long-term debt by type of debt
Second quarter 2016	$ 0
Third quarter 2016	375
Fourth quarter 2016	0
First quarter 2017	0
Remainder of 2017	1,889
2018	0
2019	700
2020	300
2021-2067	1,300
Securitizations	2,012
Revolvoing conduit facilities, long-term debt maturities	1,098
Total principal maturities	7,674
Long-term debt	7,187	$ 9,582
Debt issuance costs	(21)
Securitizations
Principal maturities of long-term debt by type of debt
Long-term debt	2,003
Medium Term Notes
Principal maturities of long-term debt by type of debt
Long-term debt	$ 3,914
Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)	6.00%
Second quarter 2016	$ 0
Third quarter 2016	0
Fourth quarter 2016	0
First quarter 2017	0
Remainder of 2017	0
2018	0
2019	0
2020	0
2021-2067	350
Securitizations	0
Total principal maturities	350
Long-term debt	172
Debt issuance costs	$ 0
Senior Notes | Securitizations
Principal maturities of long-term debt by type of debt
Contractual interest rate, minimum (as a percent)	2.41%
Contractual interest rate, maximum (as a percent)	6.50%
Second quarter 2016	$ 0
Third quarter 2016	0
Fourth quarter 2016	0
First quarter 2017	0
Remainder of 2017	0
2018	0
2019	0
2020	0
2021-2067	0
Securitizations	2,012
Revolvoing conduit facilities, long-term debt maturities	0
Total principal maturities	2,012
Debt issuance costs	$ (9)
Senior Notes | Revolving Credit Facility
Principal maturities of long-term debt by type of debt
Contractual interest rate, minimum (as a percent)	1.92%
Contractual interest rate, maximum (as a percent)	2.77%
Second quarter 2016	$ 0
Third quarter 2016	0
Fourth quarter 2016	0
First quarter 2017	0
Remainder of 2017	0
2018	0
2019	0
2020	0
2021-2067	0
Securitizations	0
Revolvoing conduit facilities, long-term debt maturities	1,098
Total principal maturities	1,098
Long-term debt	1,098
Debt issuance costs	$ 0
Senior Notes | Medium Term Notes
Principal maturities of long-term debt by type of debt
Contractual interest rate, minimum (as a percent)	5.25%
Contractual interest rate, maximum (as a percent)	8.25%
Second quarter 2016	$ 0
Third quarter 2016	375
Fourth quarter 2016	0
First quarter 2017	0
Remainder of 2017	1,889
2018	0
2019	700
2020	300
2021-2067	950
Securitizations	0
Revolvoing conduit facilities, long-term debt maturities	0
Total principal maturities	4,214
Debt issuance costs	(12)
Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Revolvoing conduit facilities, long-term debt maturities	$ 0

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Long-term Debt - Guaranty Agreements (Details) - USD ($)	Dec. 30, 2013	Dec. 30, 2013	Mar. 31, 2016	Dec. 31, 2015	Dec. 03, 2014
Debt Instrument [Line Items]
Long-term debt			$ 7,187,000,000	$ 9,582,000,000
Junior Subordinated Debt
Debt Instrument [Line Items]
Long-term debt			$ 172,000,000
Interest rates (as a percent)			6.00%
Guaranty Agreements | Parent Company | 5.25% Senior Notes due 2019
Debt Instrument [Line Items]
Face amount of each issuance of debt					$ 700,000,000
Long-term debt			$ 700,000,000
Interest rates (as a percent)					5.25%
Guaranty Agreements | Parent Company | Senior Notes
Debt Instrument [Line Items]
Face amount of each issuance of debt	$ 5,200,000,000	$ 5,200,000,000
Guaranty Agreements | Parent Company | Junior Subordinated Debt
Debt Instrument [Line Items]
Face amount of each issuance of debt	$ 350,000,000	$ 350,000,000
Long-term debt			350,000,000
Term of debt	60 years	60 years
Guaranty Agreements | Parent Company | 8.250% Senior Notes due 2023
Debt Instrument [Line Items]
Interest rates (as a percent)	8.25%	8.25%
Guaranty Agreements | Parent Company | 7.750% Senior Notes due 2021
Debt Instrument [Line Items]
Interest rates (as a percent)	7.75%	7.75%
Guaranty Agreements | Parent Company | 6.00% Senior Notes due 2020
Debt Instrument [Line Items]
Interest rates (as a percent)	6.00%	6.00%
Guaranty Agreements | Parent Company | Senior Notes and Junior Subordinated Debt
Debt Instrument [Line Items]
Long-term debt			4,200,000,000
Guaranty Agreements | Parent Company | Senior Notes 1999 Indenture
Debt Instrument [Line Items]
Long-term debt			$ 2,300,000,000

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Variable Interest Entities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Variable Interest Entities
Cash and cash equivalents	$ 365	$ 321	$ 2,294	$ 749
Assets
Purchased credit impaired finance receivables	4,900	6,423
Allowance for finance receivable losses	211	219	175	174
Finance receivables held for sale	776	796
Restricted cash and cash equivalents	225	295
Other assets	286	281
Liabilities
Long-term debt	7,187	9,582
Other liabilities	266	217
Personal loans
Assets
Purchased credit impaired finance receivables	4,378	4,300
Allowance for finance receivable losses	168	173	132	130
Finance receivables held for sale	606	617
SpringCastle Portfolio
Assets
Purchased credit impaired finance receivables	0	1,576
Allowance for finance receivable losses	0	4	$ 3	$ 3
Consolidated VIEs
Variable Interest Entities
Cash and cash equivalents	1	7
Assets
Allowance for finance receivable losses	113	128
Finance receivables held for sale	0	435
Restricted cash and cash equivalents	212	282
Other assets	75	48
Liabilities
Long-term debt	3,101	5,513
Other liabilities	6	9
Consolidated VIEs | Consumer Loan Securitizations | Personal loans
Assets
Purchased credit impaired finance receivables	3,592	3,621
Consolidated VIEs | Mortgage Loan Securitizations | SpringCastle Portfolio
Assets
Purchased credit impaired finance receivables	$ 0	$ 1,576

XML

Variable Interest Entities -- Consumer Loan Securitizations (Details) - Consolidated VIEs - Consumer Loan Securitizations - USD ($) $ in Millions	Mar. 31, 2016	Feb. 16, 2016
Whitford Brook 2014-VFN1 Securitization
Debt Instrument [Line Items]
Securitization transaction outstanding	$ 200
Springleaf FundingTrust 2013 B [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price		$ 371
amount excluded from the redemption price		30
Amount of Notes Sold under Private Securitization Transaction		$ 400

XML

Variable Interest Entities -- Conduit Facilities (Details) - Consumer Loan Securitizations - Consolidated VIEs - USD ($)		1 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Feb. 28, 2018	Jan. 30, 2018	Feb. 24, 2017	Mar. 31, 2016	Feb. 24, 2016	Feb. 16, 2016	Jan. 21, 2016	Jan. 15, 2016
Springleaf Funding Trust 2013 VFN1
Debt Instrument [Line Items]
Securitization transaction outstanding						$ 298,000,000				$ 298,000,000
Springleaf Funding Trust 2013 VFN1 | As Reported
Debt Instrument [Line Items]
Securitization transactions, maximum principal balance									$ 350,000,000
Springleaf Funding Trust 2013 VFN1 | Scenario, Adjustment
Debt Instrument [Line Items]
Securitization transactions, maximum principal balance									850,000,000
Springleaf Funding Trust 2013 VFN1 | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Principal amount, reduce to cash payments, due and payable, term				36 months
Mill River 2015 VFN1
Debt Instrument [Line Items]
Amount paid under securitization										$ 300,000,000
Mill River 2015 VFN1 | As Reported
Debt Instrument [Line Items]
Securitization transaction outstanding						100,000,000
Securitization transactions, maximum principal balance									400,000,000
Mill River 2015 VFN1 | Scenario, Adjustment
Debt Instrument [Line Items]
Securitization transactions, maximum principal balance									$ 100,000,000
Sumner Brook Funding Trust 2013 VFN1
Debt Instrument [Line Items]
Securitization transaction outstanding						0
Amount paid under securitization								$ 100,000,000
Midbrook Funding Trust 2013 VFN1
Debt Instrument [Line Items]
Securitization transaction outstanding						0
Midbrook Funding Trust 2013 VFN1 | As Reported | Personal loans
Debt Instrument [Line Items]
Securitization transactions, maximum principal balance							$ 300,000,000
Midbrook Funding Trust 2013 VFN1 | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Principal amount, reduce to cash payments, due and payable, term			36 months
Midbrook Funding Trust 2013 VFN1 | Scenario, Forecast [Member] | Personal loans
Debt Instrument [Line Items]
Securitization transactions, maximum principal balance					$ 250,000,000
Whitford Brook 2014-VFN1 Securitization
Debt Instrument [Line Items]
Securitization transaction outstanding						200,000,000
Whitford Brook 2014-VFN1 Securitization | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Principal amount, reduce to cash payments, due and payable, term		12 months
First Avenue Funding LLC 2015
Debt Instrument [Line Items]
Securitization transaction outstanding						$ 250,000,000
First Avenue Funding LLC 2015 | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Principal amount, reduce to cash payments, due and payable, term	12 months

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Variable Interest Entities -- VIE Interest Expense and Deconsolidated VIES (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) loan	Mar. 31, 2015 USD ($) loan	Dec. 31, 2014 USD ($)
Variable Interest Entity [Line Items]
Interest expense	$ 156	$ 158
Repurchase activity | loan	0	0
Mortgage Loan Securitizations | Real estate loans
Variable Interest Entity [Line Items]
Real estate loans sold, reserve for sales recourse obligations	$ 6		$ 6
Consolidated VIEs
Variable Interest Entity [Line Items]
Interest expense	$ 48	$ 38

XML

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ (24)	$ 3
Other comprehensive income before reclassifications	8	4
Reclassification adjustments from accumulated other comprehensive income (loss)	(1)	(4)
Balance at end of period	(17)	3
Unrealized Gains (Losses) Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(9)	12
Other comprehensive income before reclassifications	8	3
Reclassification adjustments from accumulated other comprehensive income (loss)	(1)	(4)
Balance at end of period	(2)	11
Retirement Plan Liabilities Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(19)	(13)
Other comprehensive income before reclassifications	0	0
Reclassification adjustments from accumulated other comprehensive income (loss)	0	0
Balance at end of period	(19)	(13)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	4	4
Other comprehensive income before reclassifications	0	1
Reclassification adjustments from accumulated other comprehensive income (loss)	0	0
Balance at end of period	$ 4	$ 5

XML

Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments From AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification adjustments from accumulated other comprehensive income
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$ 6	$ 17
Income tax effect	(106)	(8)
Net income	198	34
Unrealized Gains (Losses) Available-for-Sale Securities | Reclassification adjustments
Reclassification adjustments from accumulated other comprehensive income
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	1	6
Income tax effect	0	(2)
Net income	$ 1	$ 4

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net deferred tax liabilities	$ 122		$ 89
Net Deferred Tax Assets, Increase (Decrease), Amount	$ 33
Effective income tax rate (as a percent)	34.90%	19.30%
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 9		$ 9

XML

Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) request loan	Mar. 31, 2015 loan
Commitments and Contingencies Disclosure [Abstract]
Finance receivables reserve for sales recourse obligations | $	$ 15
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number | loan	0	0
Number of unresolved recourse requests | request	0

XML

Benefit Plans (Details) - Pension - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Components of net periodic benefit cost:
Interest cost	$ 4	$ 4
Expected return on assets	(4)	(5)
Net periodic benefit cost	$ 0	$ (1)

XML

Segment Information Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) state division segment	Mar. 30, 2016	Dec. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)
Segment Reporting Information [Line Items]
Loans and Leases Receivable, Deferred Income | $	$ 245		$ 250	$ 216
Number of segments | segment	3
Ownership percentage in joint venture	47.00%
Other
Segment Reporting Information [Line Items]
Number of states where ceased branch based personal lending	14
Corporate Joint Venture
Segment Reporting Information [Line Items]
Ownership percentage in joint venture		47.00%
Consumer and Insurance Segment [Member]
Segment Reporting Information [Line Items]
Number of business divisions | division	2
Consumer and Insurance
Segment Reporting Information [Line Items]
Number of states in which entity operates	27

XML

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 431	$ 402
Interest expense	156	158
Provision for finance receivable losses	94	86
Net interest income after provision for finance receivable losses	181	158
Net gain on sale of SpringCastle interests	229	0
Other revenues	85	53
Other expenses	191	169
Income before provision for income taxes	304	42
Income before provision for income taxes attributable to non-controlling interests	26	31
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	278	11
Assets	10,492	12,241	$ 12,055
Other assets	286		$ 281
New Accounting Pronouncement, Early Adoption, Effect
Segment Reporting Information [Line Items]
Other assets		32
Operating Segments | Consumer and Insurance
Segment Reporting Information [Line Items]
Interest income	311	254
Interest expense	95	40
Provision for finance receivable losses	73	55
Net interest income after provision for finance receivable losses	143	159
Net gain on sale of SpringCastle interests	0
Other revenues	45	51
Other expenses	174	140
Income before provision for income taxes	14	70
Income before provision for income taxes attributable to non-controlling interests	0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	14	70
Assets	5,704	4,821
Operating Segments | Acquisitions and Servicing
Segment Reporting Information [Line Items]
Interest income	101	125
Interest expense	20	23
Provision for finance receivable losses	17	27
Net interest income after provision for finance receivable losses	64	75
Net gain on sale of SpringCastle interests	229
Other revenues	0	5
Other expenses	14	16
Income before provision for income taxes	279	64
Income before provision for income taxes attributable to non-controlling interests	26	31
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	253	33
Assets	101	1,958
Operating Segments | Real estate loans
Segment Reporting Information [Line Items]
Interest income	15	18
Interest expense	13	60
Provision for finance receivable losses	2	2
Net interest income after provision for finance receivable losses	0	(44)
Net gain on sale of SpringCastle interests	0
Other revenues	(11)	3
Other expenses	7	7
Income before provision for income taxes	(18)	(48)
Income before provision for income taxes attributable to non-controlling interests	0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	(18)	(48)
Assets	667	3,613
Other
Segment Reporting Information [Line Items]
Interest income	1	2
Interest expense	4	10
Net interest income after provision for finance receivable losses	(3)	(8)
Net gain on sale of SpringCastle interests	0
Other revenues	50	2
Other expenses	(4)	5
Income before provision for income taxes	51	(11)
Income before provision for income taxes attributable to non-controlling interests	0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	51	(11)
Assets	4,042	1,832
Eliminations
Segment Reporting Information [Line Items]
Interest income		0
Interest expense		(5)
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
Segment to GAAP Adjustment
Segment Reporting Information [Line Items]
Interest income	3	3
Interest expense	24	30
Provision for finance receivable losses	2	2
Net interest income after provision for finance receivable losses	(23)	(29)
Net gain on sale of SpringCastle interests	0
Other revenues	1	(3)
Other expenses	0	1
Income before provision for income taxes	(22)	(33)
Income before provision for income taxes attributable to non-controlling interests	0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	(22)	(33)
Assets	$ (22)	$ 17

XML

Segment Information -- Allocation of revenue and expenses (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended	16 Months Ended
	Mar. 31, 2015	Mar. 31, 2016	Oct. 31, 2015
Consumer and Insurance Segment [Member]
Segment Reporting Information [Line Items]
Increase (Decrease) Interest Expense Due to Change in Debt Allocation	$ 54
Real Estate and Other Segments [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage		100.00%
Real estate loans
Segment Reporting Information [Line Items]
Increase (Decrease) Interest Expense Due to Change in Debt Allocation	(45)
Other
Segment Reporting Information [Line Items]
Increase (Decrease) Interest Expense Due to Change in Debt Allocation	$ (9)
Total Average Unsecured Debt Allocation [Member] | Consumer and Insurance Segment [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			100.00%
Total Average Unsecured Debt Allocation [Member] | Real Estate and Other Segments [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			100.00%
Minimum | Total Average Unsecured Debt Allocation [Member] | Consumer and Insurance Segment [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			83.00%
Minimum | Total Average Unsecured Debt Allocation [Member] | Real Estate and Other Segments [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			83.00%
Maximum | Total Average Unsecured Debt Allocation [Member] | Consumer and Insurance Segment [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			100.00%
Maximum | Total Average Unsecured Debt Allocation [Member] | Real Estate and Other Segments [Member]
Segment Reporting Information [Line Items]
Unsecured Debt Allocation, Percentage			100.00%

XML

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Assets
Notes receivable from parent and affiliates	$ 3,775	$ 3,804
Restricted cash and cash equivalents	225	295
Other assets:
Receivables from parent and affiliates	28	9
Total Fair Value
Assets
Cash and cash equivalents	365	321
Investment securities	621	604
Net finance receivables, less allowance for finance receivable losses	4,912	6,897
Finance receivables held for sale	804	819
Notes receivable from parent and affiliates	3,775	3,804
Restricted cash and cash equivalents	225	295
Other assets:
Commercial mortgage loans	53	62
Escrow advance receivable	11	11
Receivables from parent and affiliates	28	9
Receivables related to sales of real estate loans and related trust assets	1	1
Liabilities
Long-term debt	7,470	9,998
Note payable to affiliate	374
Payables to parent and affiliates	34	24
Total Carrying Value
Assets
Cash and cash equivalents	365	321
Investment securities	621	604
Net finance receivables, less allowance for finance receivable losses	4,689	6,204
Finance receivables held for sale	776	796
Notes receivable from parent and affiliates	3,775	3,804
Restricted cash and cash equivalents	225	295
Other assets:
Commercial mortgage loans	53	62
Escrow advance receivable	11	11
Receivables from parent and affiliates	28	9
Receivables related to sales of real estate loans and related trust assets	5	5
Liabilities
Long-term debt	7,187	9,582
Note payable to affiliate	374
Payables to parent and affiliates	34	24
Fair Value Measurements Using Level 1
Assets
Cash and cash equivalents	358	321
Restricted cash and cash equivalents	225	295
Fair Value Measurements Using Level 2
Assets
Cash and cash equivalents	7	0
Investment securities	619	602
Notes receivable from parent and affiliates	3,775	3,804
Other assets:
Receivables from parent and affiliates	28	9
Receivables related to sales of real estate loans and related trust assets	1	1
Liabilities
Long-term debt	7,470	9,998
Note payable to affiliate	374
Payables to parent and affiliates	34	24
Fair Value Measurements Using Level 3
Assets
Investment securities	2	2
Net finance receivables, less allowance for finance receivable losses	4,912	6,897
Finance receivables held for sale	804	819
Other assets:
Commercial mortgage loans	53	62
Escrow advance receivable	$ 11	$ 11

XML

Fair Value Measurements - Recurring Basis (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets
Available-for-sale securities	$ 617,000,000	$ 591,000,000
Trading securities	3,000,000	12,000,000
Total investment securities	621,000,000	604,000,000
Other trading securities	3,000,000	2,000,000
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	77,000,000	82,000,000
Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	92,000,000	89,000,000
Corporate debt
Assets
Available-for-sale securities	307,000,000	267,000,000
Trading securities	1,000,000	10,000,000
Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities	70,000,000	74,000,000
Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities	47,000,000	44,000,000
Trading securities	2,000,000	2,000,000
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities	18,000,000	29,000,000
Bonds
Assets
Available-for-sale securities	611,000,000	585,000,000
Preferred stock
Assets
Available-for-sale securities	5,000,000	5,000,000
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	365,000,000	321,000,000
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	358,000,000	321,000,000
Fair Value Measurements Using Level 2
Assets
Cash and cash equivalents	7,000,000	0
Recurring basis
Assets
Other trading securities		2,000,000
Recurring basis | Total Carried At Fair Value
Assets
Cash equivalents in mutual funds	129,000,000	224,000,000
Cash and cash equivalents	7,000,000
Available-for-sale securities	617,000,000	591,000,000
Trading securities	3,000,000	12,000,000
Total investment securities	620,000,000	603,000,000
Restricted cash in mutual funds	210,000,000	276,000,000
Total	966,000,000	1,103,000,000
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities
Assets
Available-for-sale securities	77,000,000	82,000,000
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	92,000,000	89,000,000
Recurring basis | Total Carried At Fair Value | Corporate debt
Assets
Available-for-sale securities	307,000,000	267,000,000
Trading securities	1,000,000	10,000,000
Recurring basis | Total Carried At Fair Value | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities	70,000,000	74,000,000
Recurring basis | Total Carried At Fair Value | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities	47,000,000	44,000,000
Trading securities	2,000,000	2,000,000
Recurring basis | Total Carried At Fair Value | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities	18,000,000	29,000,000
Recurring basis | Total Carried At Fair Value | Bonds
Assets
Available-for-sale securities	611,000,000	585,000,000
Recurring basis | Total Carried At Fair Value | Preferred stock
Assets
Available-for-sale securities	5,000,000	5,000,000
Recurring basis | Total Carried At Fair Value | Other long-term investments
Assets
Available-for-sale securities	1,000,000	1,000,000
Recurring basis | Fair Value Measurements Using Level 1
Assets
Cash equivalents in mutual funds	129,000,000	224,000,000
Total investment securities		0
Restricted cash in mutual funds	210,000,000	276,000,000
Total	339,000,000	500,000,000
Recurring basis | Fair Value Measurements Using Level 2
Assets
Cash equivalents in mutual funds	0
Cash and cash equivalents	7,000,000
Available-for-sale securities	616,000,000	590,000,000
Trading securities	3,000,000	12,000,000
Total investment securities	619,000,000	602,000,000
Restricted cash in mutual funds		0
Total	626,000,000	602,000,000
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities
Assets
Available-for-sale securities	77,000,000	82,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	92,000,000	89,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt
Assets
Available-for-sale securities	307,000,000	267,000,000
Trading securities	1,000,000	10,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities	70,000,000	74,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities	47,000,000	44,000,000
Trading securities	2,000,000	2,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)
Assets
Available-for-sale securities	18,000,000	29,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Bonds
Assets
Available-for-sale securities	611,000,000	585,000,000
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stock
Assets
Available-for-sale securities	5,000,000	5,000,000
Recurring basis | Fair Value Measurements Using Level 3
Assets
Cash equivalents in mutual funds	0
Available-for-sale securities	1,000,000	1,000,000
Trading securities	0	0
Total investment securities	1,000,000	1,000,000
Restricted cash in mutual funds		0
Total	1,000,000	1,000,000
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt
Assets
Available-for-sale securities	0	0
Recurring basis | Fair Value Measurements Using Level 3 | Residential mortgage-backed securities (“RMBS”)
Assets
Available-for-sale securities	0	0
Recurring basis | Fair Value Measurements Using Level 3 | Commercial mortgage-backed securities (“CMBS”)
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Fair Value Measurements Using Level 3 | Bonds
Assets
Available-for-sale securities	0	0
Recurring basis | Fair Value Measurements Using Level 3 | Preferred stock
Assets
Available-for-sale securities	0
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments
Assets
Available-for-sale securities	$ 1,000,000	$ 1,000,000

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Fair Value Measurements - Changes in Level 3 Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investment securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 1	$ 8
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements)	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	(3)
Balance at end of period	1	5
Bonds | Available-for-sale 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
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements)		0
Transfers into Level 3		0
Transfers out of Level 3		(3)
Balance at end of period		4
Corporate debt | Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		4
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements)		0
Transfers into Level 3		0
Transfers out of Level 3		0
Balance at end of period		4
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
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements)		0
Transfers into Level 3		0
Transfers out of Level 3		(3)
Balance at end of period		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
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements)	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at end of period	$ 1	$ 1

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Fair Value Measurements - Quantitative Information About Level 3 Inputs (Details) - Level 3 - Recurring - Discounted cash flows $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016 USD ($) bond	Dec. 31, 2015 USD ($) bond
Corporate debt
Unobservable Input
Number of Bonds	1
Residential mortgage-backed securities (“RMBS”)
Unobservable Input
Spread (as a percent)	6.93%	6.65%
Number of Bonds		1
Minimum disclosure amount of debt instrument, fair value disclosure. | $	$ 1	$ 1

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Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Assets measured at fair value on a non-recurring basis
Debt carried at Fair Value under the Fair Value Option	$ 0
Non-recurring basis
Assets measured at fair value on a non-recurring basis
Assets at fair value	188,000,000		$ 19,000,000
Total impairment charges	4,000,000	$ 1,000,000
Non-recurring basis | Total Finance Receivables Held for Sale
Assets measured at fair value on a non-recurring basis
Assets at fair value	170,000,000
Impairment of Real Estate	2,000,000	0
Non-recurring basis | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	10,000,000		11,000,000
Impairment of Real Estate	1,000,000	1,000,000
Non-recurring basis | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	8,000,000		8,000,000
Impairment of Real Estate	1,000,000	0
Non-recurring basis | Level 1
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 1 | Total Finance Receivables Held for Sale
Assets measured at fair value on a non-recurring basis
Assets at fair value	0
Non-recurring basis | Level 1 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 1 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 2
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 2 | Total Finance Receivables Held for Sale
Assets measured at fair value on a non-recurring basis
Assets at fair value	0
Non-recurring basis | Level 2 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 2 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	0		0
Non-recurring basis | Level 3
Assets measured at fair value on a non-recurring basis
Assets at fair value	188,000,000		19,000,000
Non-recurring basis | Level 3 | Total Finance Receivables Held for Sale
Assets measured at fair value on a non-recurring basis
Assets at fair value	170,000,000
Non-recurring basis | Level 3 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	10,000,000		11,000,000
Non-recurring basis | Level 3 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	$ 8,000,000		$ 8,000,000
Not qualified for disclosure, due to less than $1 million [Member] | Non-recurring basis | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Impairment of Real Estate		$ 1,000,000

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Subsequent Events SFC's Offering of Senior Notes (Details) - Subsequent Event - Springleaf Finance Corporation - USD ($)	Dec. 15, 2016	Apr. 11, 2016
Senior Notes due 2017 | Beneficial Owners of Debt | Senior Notes due 2017
Debt Instrument [Line Items]
Repurchased debt amount		$ 600,000,000
Guaranty Agreements | Senior Note 8.25%, due 2020
Debt Instrument [Line Items]
Face amount of each issuance of debt		$ 1,000,000,000.0
Interest rates (as a percent)		8.25%
Scenario, Forecast [Member] | Guaranty Agreements | Senior Note 8.25%, due 2020
Debt Instrument [Line Items]
Interest rates (as a percent)	8.25%

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Subsequent Events Lendmark Sale (Details) $ in Millions	May. 02, 2016 USD ($) branch	Nov. 13, 2015 branch	Nov. 12, 2015 branch	Apr. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)
Sale of Branches to Lendmark
Subsequent Event [Line Items]
Business Combination, Number Of Branches To Be Divested | branch			127
Sale of Branches to Lendmark | Personal loans
Subsequent Event [Line Items]
Personal loans sold					$ 600
OneMain
Subsequent Event [Line Items]
Business Combination, Number Of Branches To Be Divested | branch		127
Subsequent Event | Sale of Branches to Lendmark
Subsequent Event [Line Items]
Aggregate sale price				$ 624
Subsequent Event | Lendmark Sale | OneMain Financial Holdings, Inc. | OMFH revolving demand note, OneMain Acquisition closing
Subsequent Event [Line Items]
Principal payment	$ 376
Accrued interest of debt	$ 6
Subsequent Event | OneMain | Sale of Branches to Lendmark
Subsequent Event [Line Items]
Business Combination, Number Of Branches To Be Divested | branch	127