Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Carrying and Estimated Fair Value

The following table summarizes the carrying values and estimated fair value of our financial instruments at March 31, 2013 and December 31, 2012.

	March 31, 2013
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Cash	$	545	$	545	$	545	$	—	$	—
Interest bearing deposits with banks	403		403		—		403		—
Securities purchased under agreements to resell	3,275		3,275		—		3,275		—
Real estate secured receivables(1):
First lien	25,606		19,776		—		—		19,776
Second lien	2,938		1,254		—		—		1,254
Total real estate secured receivables	28,544		21,030		—		—		21,030
Receivables held for sale	6,354		6,354		—		2,947		3,407
Due from affiliates	—		—		—		—		—
Derivative financial assets	131		131		—		131		—
Financial liabilities:
Due to affiliates carried at fair value	511		511		—		511		—
Due to affiliates not carried at fair value	8,574		8,678		—		8,678		—
Long-term debt carried at fair value	9,573		9,573		—		9,573		—
Long-term debt not carried at fair value	17,982		18,550		—		15,959		2,591
Derivative financial liabilities	1		1		—		1		—

	December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Cash	$	197	$	197	$	197	$	—	$	—
Interest bearing deposits with banks	1,371		1,371		—		1,371		—
Securities purchased under agreements to resell	2,160		2,160		—		2,160		—
Securities	80		80		80		—		—
Real estate secured receivables(1):
First lien	26,218		19,586		—		—		19,586
Second lien	3,066		1,113		—		—		1,113
Total real estate secured receivables	29,284		20,699		—		—		20,699
Receivables held for sale	6,203		6,203		—		—		6,203
Due from affiliates	105		105		—		105		—
Derivative financial assets	—		—		—		—		—
Financial liabilities:
Due to affiliates carried at fair value	514		514		—		514		—
Due to affiliates not carried at fair value	8,575		8,654		—		8,654		—
Long-term debt carried at fair value	9,725		9,725		—		9,725		—
Long-term debt not carried at fair value	18,701		19,172		—		16,537		2,635
Derivative financial liabilities	22		22		—		22		—

⁽¹⁾  The carrying amount of consumer receivables presented in the table above reflects the amortized cost of the receivable, including any accrued interest, less credit loss reserves as well as any charge-offs recorded in accordance with our existing charge-off policies.

Assets and Liabilities Recorded at Fair Value ona Recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting(1)			Total of Assets (Liabilities) Measured at Fair Value
	(in millions)
March 31, 2013
Derivative financial assets:
Interest rate swaps	$	—	$	455		$	—	$	—		$	455
Currency swaps	—		855			—		—			855
Derivative netting	—		—			—		(1,179		)	(1,179		)
Total derivative financial assets	—		1,310			—		(1,179		)	131
Total assets	$	—	$	1,310		$	—	(1,179		)	$	131
Due to affiliates carried at fair value	$	—	$	(511	)	$	—	$	—		$	(511	)
Long-term debt carried at fair value	—		(9,573		)	—		—			(9,573		)
Derivative related liabilities:
Interest rate swaps	—		(709		)	—		—			(709		)
Currency swaps	—		(124		)	—		—			(124		)
Derivative netting	—		—			—		832			832
Total derivative related liabilities	—		(833		)	—		832			(1		)
Total liabilities	$	—	$	(10,917	)	$	—	$	832		$	(10,085	)
December 31, 2012
Derivative financial assets:
Interest rate swaps	$	—	$	524		$	—	$	—		$	524
Currency swaps	—		1,159			—		—			1,159
Derivative netting	—		—			—		(1,683		)	(1,683		)
Total derivative financial assets	—		1,683			—		(1,683		)	—
Available-for-sale securities:
Money market funds	80		—			—		—			80
Total available-for-sale securities	80		—			—		—			80
Total assets	$	80	$	1,683		$	—	$	(1,683	)	$	80
Due to affiliates carried at fair value	$	—	$	(514	)	$	—	$	—		$	(514	)
Long-term debt carried at fair value	—		(9,725		)	—		—			(9,725		)
Derivative related liabilities:
Interest rate swaps	—		(1,585		)	—		—			(1,585		)
Currency swaps	—		(45		)	—		—			(45		)
Derivative netting	—		—			—		1,608			1,608
Total derivative related liabilities	—		(1,630		)	—		1,608			(22		)
Total liabilities	$	—	$	(11,869	)	$	—	$	1,608		$	(10,261	)

(1) Represents counterparty and swap collateral netting which allow the offsetting of amounts relating to certain contracts when certain conditions are met.

Assets and Liabilities Recorded at Fair Value on Non-recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2013 and 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

	Non-Recurring Fair Value Measurements as of March 31, 2013								Total Gains (Losses) for the Three Months Ended March 31, 2013
	Level 1		Level 2		Level 3		Total
	(in millions)
Receivables held for sale:
Real estate secured	$	—	$	—	$	3,407	$	3,407	$	536
Personal non-credit card	—		2,947		—		2,947		(82		)
Total receivables held for sale	—		2,947		3,407		6,354		454
Real estate owned(1)	—		271		—		271		(17		)
Total assets at fair value on a non-recurring basis	$	—	$	3,218	$	3,407	$	6,625	$	437

	Non-Recurring Fair Value Measurements as of March 31, 2012								Total Gains (Losses) for the Three Months Ended March 31, 2012
	Level 1		Level 2		Level 3		Total
	(in millions)
Real estate owned(1)	$	—	$	290	$	—	$	290	$	(26	)
Total assets at fair value on a non-recurring basis	$	—	$	290	$	—	$	290	$	(26	)

(1) Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value of the underlying asset unadjusted for transaction costs.

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents quantitative information about non-recurring fair value measurements of assets and liabilities classified as Level 3 in the fair value hierarchy as of March 31, 2013:

	Fair Value						Range of Inputs
Financial Instrument Type	March 31, 2013		December 31, 2012		Valuation Technique	Significant Unobservable Inputs	March 31, 2013				December 31, 2012
Receivables held for sale carried at fair value:
Real estate secured	$	3,407	$	3,022	Third party appraisal valuation based on	Collateral severity rates(1)	0	%	-	97%	0	%	-	92	%
					estimated loss severities, including collateral values, cash flows and	Expenses incurred through collateral disposition	5	%	-	10%	5	%	-	10	%
					market discount rate	Market discount rate	6	%	-	10%	10	%	-	15%
Personal non-credit card(2)	—		3,181		Third party valuation based on estimated loss rates, cash	Loss rate					13	%	-	19%
					flows and market discount rate	Market discount rate					10	%	-	15%

⁽¹⁾  The majority of the real estate secured receivables held for sale consider collateral value, among other items, in determining fair value. Collateral values are based on the most recently available broker's price opinion and the collateral loss severity rate averaged 36 percent and 37 percent at March 31, 2013 and December 31, 2012, respectively.

⁽²⁾  While our personal non-credit card portfolio held for sale was classified as Level 3 at December 31, 2012, as of March 31, 2013 its classification changed as a result of the agreement to sell the portfolio at an agreed upon price and is classified as Level 2 as of March 31, 2013.