Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

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

The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2020
Assets
Cash and cash equivalents	$	1,944	$	—	$	—	$	1,944	$	1,944
Investment securities	42		1,833		7		1,882		1,882
Net finance receivables, less allowance for finance receivable losses	—		—		18,176		18,176		15,493
Restricted cash and restricted cash equivalents	497		—		—		497		497
Other assets *	—		—		62		62		62
Liabilities
Long-term debt	$	—	$	18,702	$	—	$	18,702	$	17,531
December 31, 2019
Assets
Cash and cash equivalents	$	1,159	$	68	$	—	$	1,227	$	1,227
Investment securities	45		1,835		4		1,884		1,884
Net finance receivables, less allowance for finance receivable losses	—		—		19,319		19,319		17,560
Restricted cash and restricted cash equivalents	405		—		—		405		405
Other assets *	—		—		84		84		74
Liabilities
Long-term debt	$	—	$	18,509	$	—	$	18,509	$	17,212

*Other assets at September 30, 2020 and December 31, 2019 includes finance receivables held for sale and miscellaneous receivables related to our liquidating loan portfolios.

Schedule of assets and liabilities measured at fair value on a recurring basis

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

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
September 30, 2020
Assets
Cash equivalents in mutual funds	$	1,534	$	—	$	—	$	1,534
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		12		—		12
Obligations of states, municipalities, and political subdivisions	—		86		—		86
Commercial paper	—		24		—		24
Non-U.S. government and government sponsored entities	—		141		—		141
Corporate debt	5		1,179		—		1,184
RMBS	—		212		6		218
CMBS	—		63		—		63
CDO/ABS	—		78		—		78
Total available-for-sale securities	5		1,795		6		1,806
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		20		—		20
RMBS	—		1		—		1
CDO/ABS	—		16		—		16
Total bonds	—		38		—		38
Preferred stock	14		—		—		14
Common stock	23		—		1		24
Total other securities	37		38		1		76
Total investment securities	42		1,833		7		1,882
Restricted cash equivalents in mutual funds	487		—		—		487
Total	$	2,063	$	1,833	$	7	$	3,903

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2019
Assets
Cash equivalents in mutual funds	$	775	$	—	$	—	$	775
Cash equivalents in securities	—		68		—		68
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		11		—		11
Obligations of states, municipalities, and political subdivisions	—		92		—		92
Certificates of deposit and commercial paper	—		91		—		91
Non-U.S. government and government sponsored entities	—		147		—		147
Corporate debt	5		1,093		—		1,098
RMBS	—		217		—		217
CMBS	—		57		—		57
CDO/ABS	—		85		—		85
Total available-for-sale securities	5		1,793		—		1,798
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		23		1		24
RMBS	—		1		—		1
CDO/ABS	—		12		2		14
Total bonds	—		37		3		40
Preferred stock	14		5		—		19
Common stock	26		—		—		26
Other long-term investments	—		—		1		1
Total other securities	40		42		4		86
Total investment securities	45		1,835		4		1,884
Restricted cash equivalents in mutual funds	403		—		—		403
Total	$	1,223	$	1,903	$	4	$	3,130

Fair Value, Assets Measured on Nonrecurring Basis

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques