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Receivables Held for Sale (Tables)
 9 Months Ended
Sep. 30, 2013
Receivables Held-for-sale [Abstract]  
Summary of Receivables Held for Sale
Receivables held for sale which are carried at the lower of amortized cost or fair value consisted of the following as of September 30, 2013 and December 31, 2012:
 
September 30, 2013
 
December 31, 2012
 
(in millions)
First lien real estate secured(1)
$
4,717

 
$
3,022

Personal non-credit card
—

 
3,181

Total receivables held for sale
$
4,717

 
$
6,203


 
(1) 
On October 1, 2013, we sold $901 million of the real estate secured receivables held for sale at September 30, 2013.
Summary of Activity in Receivables Held for Sale
The following table summarizes the activity in receivables held for sale during the three and nine months ended September 30, 2013.
 
Real Estate Secured
 
Personal Non-Credit Card
 
Total
 
(in millions)
Three Months Ended September 30, 2013:
 
 
 
 
 
Receivables held for sale at beginning of period
$
4,991

 
$
—

 
$
4,991

Receivable sales:
 
 
 
 
 
First lien real estate secured
(404
)
 
—

 
(404
)
Lower of amortized cost or fair value adjustment on receivables held for sale
112

 
—

 
112

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(238
)
 
—

 
(238
)
Change in receivable balance, including collections
(23
)
 
—

 
(23
)
Transfer of first lien real estate secured into held for sale at the lower of amortized cost or fair value(1)
279

 
—

 
279

Receivables held for sale at end of period(2)
$
4,717

 
$
—

 
$
4,717

 
 
 
 
 
 
Nine Months Ended September 30, 2013:
 
 
 
 
 
Receivables held for sale at beginning of period
$
3,022

 
$
3,181

 
$
6,203

Receivable sales:
 
 
 
 
 
First lien real estate secured
(634
)
 
—

 
(634
)
Personal non-credit card receivables
—

 
(2,947
)
 
(2,947
)
Lower of amortized cost or fair value adjustment on receivables held for sale
1,119

 
(82
)
 
1,037

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(556
)
 
—

 
(556
)
Change in receivable balance, including collections
(50
)
 
(152
)
 
(202
)
Transfer of first lien real estate secured into held for sale at the lower of amortized cost or fair value(1)
1,816

 
—

 
1,816

Receivables held for sale at end of period(2)
$
4,717

 
$
—

 
$
4,717

 
(1) 
The lower of amortized cost or fair value adjustment on receivables transferred into held for sale during the three and nine months ended September 30, 2013 totaled $46 million and $145 million, respectively.
(2) 
Net of a valuation allowance of $237 million at September 30, 2013. The following table provides a rollforward of our valuation allowance for the three and nine months ended September 30, 2013
Allowance for Credit Losses on Financing Receivables
The following table provides a rollforward of our valuation allowance for the three and nine months ended September 30, 2013:
 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
 
(in millions)
Balance at beginning of period
$
309

 
$
1,452

Initial valuation allowance for receivables transferred to held for sale during the period
46

 
145

Release of valuation allowance resulting from improvements in fair value
(112
)
 
(1,037
)
Release of valuation allowance for collections, loans sold, charged-off, transferred to REO or short sale
(6
)
 
(323
)
Balance at September 30, 2013
$
237

 
$
237
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment
The following table summarizes the components of the lower of amortized cost or fair value adjustment recorded in provision for credit losses and other revenues during the three and nine months ended September 30, 2013 and 2012:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
(Income)/Expense:
 
 
 
 
 
 
 
Three Months Ended September 30, 2013:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
46

 
$
—

 
$
—

 
$
46

Subsequent to initial transfer to held for sale(1)
(100
)
 
(1
)
 
(11
)
 
(112
)
Total recorded through other revenues
(54
)
 
(1
)
 
(11
)
 
(66
)
Lower of amortized cost or fair value adjustment
$
(54
)
 
$
(1
)
 
$
(11
)
 
$
(66
)
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2012:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
—

 
$
—

 
$
—

 
$
—

Subsequent to initial transfer to held for sale
85

 
(26
)
 
(9
)
 
50

Total recorded through other revenues
85

 
(26
)
 
(9
)
 
50

Lower of amortized cost or fair value adjustment
$
85

 
$
(26
)
 
$
(9
)
 
$
50

 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
145

 
$
—

 
$
—

 
$
145

Subsequent to initial transfer to held for sale(1)
(965
)
 
(50
)
 
(22
)
 
(1,037
)
Total recorded through other revenues
(820
)
 
(50
)
 
(22
)
 
(892
)
Lower of amortized cost or fair value adjustment
$
(820
)
 
$
(50
)
 
$
(22
)
 
$
(892
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Provision for credit losses
$
112

 
$
—

 
$
—

 
$
112

Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
1,547

 
—

 
—

 
1,547

Subsequent to initial transfer to held for sale
85

 
(26
)
 
(9
)
 
50

Total recorded through other revenues
1,632

 
(26
)
 
(9
)
 
1,597

Lower of amortized cost or fair value adjustment
$
1,744

 
$
(26
)
 
$
(9
)
 
$
1,709

 

(1) 
For the three months ended September 30, 2013, the fair value amount relates to an increase in the relative fair value of real estate secured receivables held for sale. For the nine months ended September 30, 2013, the fair value of the lower of amortized cost or fair value adjustment reflects an increase in the relative fair value of $1,047 million related to real estate secured receivables held for sale and an additional charge of $82 million related to personal non-credit card receivables prior to the sale of this portfolio on April 1, 2013.