Segment And Geographic Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment and Geographic Information

Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and in assessing performance.

We report our results of operations on a line-of-business basis through three operating segments - Automotive Finance operations, Insurance operations, and Mortgage operations, with the remaining activity reported in Corporate and Other. The operating segments are determined based on the products and services offered, and reflect the manner in which financial information is currently evaluated by management. The following is a description of each of our reportable operating segments.

Automotive Finance operations— Provides automotive financing services to consumers and automotive dealers. For consumers, we offer retail automotive financing and leasing for new and used vehicles, and through our commercial automotive financing operations, we fund dealer purchases of new and used vehicles through wholesale or floorplan financing.

Insurance operations — Offers both consumer financial and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold to dealers. As part of our focus on offering dealers a broad range of consumer finance and insurance products, we provide vehicle service contracts, maintenance coverage, and Guaranteed Automobile Protection (GAP) products. We also underwrite selected commercial insurance coverages, which primarily insure dealers' vehicle inventories.

Mortgage operations — Our ongoing Mortgage operations include the management of our held-for-investment mortgage portfolio.

Corporate and Other primarily consists of Corporate Finance, centralized corporate treasury activities, such as management of the cash and corporate investment securities portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate funds-transfer pricing (FTP) and treasury asset liability management (ALM) activities. Corporate and Other also includes certain equity investments, overhead that was previously allocated to operations that have since been sold or classified as discontinued operations, and reclassifications and eliminations between the reportable operating segments.

We utilize an FTP methodology for the majority of our business operations. The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities based on expected duration and the LIBOR swap curve plus an assumed credit spread. Matching duration allocates interest income and interest expense to these reportable segments so their respective results are insulated from interest rate risk. This methodology is consistent with our ALM practices, which includes managing interest rate risk centrally at a corporate level. The net residual impact of the FTP methodology is included within the results of Corporate and Other.

The information presented in our reportable operating segments and geographic areas tables that follow are based in part on internal allocations, which involve management judgment.

Financial information for our reportable operating segments is summarized as follows.

Three months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations			Mortgage operations			Corporate and Other (a)			Consolidated (b)
2014
Net financing revenue (loss)	$	884	$	16		$	12		$	(46	)	$	866
Other revenue	62		290			9			4			365
Total net revenue (loss)	946		306			21			(42		)	1,231
Provision for loan losses	99		—			(25		)	(11		)	63
Total noninterest expense	386		329			19			87			821
Income (loss) from continuing operations before income tax expense	$	461	$	(23	)	$	27		$	(118	)	$	347
Total assets	$	111,334	$	7,232		$	7,640		$	23,731		$	149,937
2013
Net financing revenue (loss)	$	777	$	15		$	15		$	(179	)	$	628
Other revenue (loss)	60		325			(6		)	23			402
Total net revenue (loss)	837		340			9			(156		)	1,030
Provision for loan losses	88		—			6			(5		)	89
Total noninterest expense	367		295			46			93			801
Income (loss) from continuing operations before income tax expense	$	382	$	45		$	(43	)	$	(244	)	$	140
Total assets	$	107,485	$	7,336		$	9,061		$	26,745		$	150,627

(a) Total assets for Corporate Finance were $1.7 billion and $1.5 billion at June 30, 2014 and 2013, respectively.

(b) Net financing revenue after the provision for loan losses totaled $0.8 billion and $0.5 billion for the three months endedJune 30, 2014 and 2013, respectively.

Six months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage operations			Corporate and Other (a)			Consolidated (b)
2014
Net financing revenue (loss)	$	1,704	$	31	$	26		$	(74	)	$	1,687
Other revenue (loss)	126		562		13			(15		)	686
Total net revenue (loss)	1,830		593		39			(89		)	2,373
Provision for loan losses	258		—		(48		)	(10		)	200
Total noninterest expense	772		542		43			177			1,534
Income (loss) from continuing operations before income tax expense	$	800	$	51	$	44		$	(256	)	$	639
Total assets	$	111,334	$	7,232	$	7,640		$	23,731		$	149,937
2013
Net financing revenue (loss)	$	1,550	$	27	$	49		$	(358	)	$	1,268
Other revenue (loss)	142		633		(25		)	38			788
Total net revenue (loss)	1,692		660		24			(320		)	2,056
Provision for loan losses	200		—		26			(6		)	220
Total noninterest expense	767		554		245			193			1,759
Income (loss) from continuing operations before income tax expense	$	725	$	106	$	(247	)	$	(507	)	$	77
Total assets	$	107,485	$	7,336	$	9,061		$	26,745		$	150,627

(a) Total assets for Corporate Finance were $1.7 billion and $1.5 billion at June 30, 2014 and 2013, respectively.

(b) Net financing revenue after the provision for loan losses totaled $1.5 billion and $1.0 billion for the six months endedJune 30, 2014 and 2013, respectively.

Information concerning principal geographic areas were as follows.

Three months ended June 30, ($ in millions)	Revenue (a)		Income (loss) from continuing operations before income tax expense (b)			Net income (loss) (b)(c)
2014
Canada	$	33	$	16		$	36
Europe	—		(1		)	1
Latin America	—		—			(7		)
Asia-Pacific	—		—			33
Total foreign	33		15			63
Total domestic (d)	1,198		332			260
Total	$	1,231	$	347		$	323
2013
Canada	$	47	$	14		$	13
Europe	—		(1		)	(146		)
Latin America	—		(1		)	194
Asia-Pacific	—		—			29
Total foreign	47		12			90
Total domestic (d)	983		128			(1,017		)
Total	$	1,030	$	140		$	(927	)

(a) Revenue consists of net financing revenue and total other revenue as presented in our Condensed Consolidated Financial Statements.

(b) The domestic amounts include original discount amortization of $50 million and $64 million for the three months endedJune 30, 2014 and 2013, respectively.

(c) Gain (loss) realized on sale of discontinued operations are allocated to the geographic area in which the business operated.

(d) Amounts include eliminations between our domestic and foreign operations.

Six months ended June 30, ($ in millions)	Revenue (a)			Income (loss) from continuing operations before income tax expense (b)			Net income (loss) (b)(c)
2014
Canada	$	64		$	29		$	46
Europe	2			1			4
Latin America	—			—			(8		)
Asia-Pacific	—			—			66
Total foreign	66			30			108
Total domestic (d)	2,307			609			442
Total	$	2,373		$	639		$	550
2013
Canada	$	96		$	28		$	1,243
Europe (e)	(10		)	(19		)	(86		)
Latin America	—			(5		)	274
Asia-Pacific	1			(2		)	54
Total foreign	87			2			1,485
Total domestic (d)	1,969			75			(1,319		)
Total	$	2,056		$	77		$	166

(a) Revenue consists of net financing revenue and total other revenue as presented in our Condensed Consolidated Financial Statements.

(b) The domestic amounts include original discount amortization of $98 million and $124 million for the six months endedJune 30, 2014 and 2013, respectively.

(c) Gain (loss) realized on sale of discontinued operations are allocated to the geographic area in which the business operated.

(d) Amounts include eliminations between our domestic and foreign operations.

(e) Amounts include eliminations between our foreign operations.