Segment And Geographic Information

9 Months Ended

Sep. 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 September 30, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage operations			Corporate and Other (a)			Consolidated (b)
2014
Net financing revenue	$	850	$	16	$	9		$	14		$	889
Other revenue	69		287		—			19			375
Total net revenue	919		303		9			33			1,264
Provision for loan losses	109		—		(7		)	—			102
Total noninterest expense	395		243		19			85			742
Income (loss) from continuing operations before income tax expense	$	415	$	60	$	(3	)	$	(52	)	$	420
Total assets	$	110,937	$	7,178	$	7,402		$	23,678		$	149,195
2013
Net financing revenue (loss)	$	800	$	16	$	13		$	(92	)	$	737
Other revenue	65		293		19			(6		)	371
Total net revenue (loss)	865		309		32			(98		)	1,108
Provision for loan losses	150		—		(12		)	3			141
Total noninterest expense	376		226		48			112			762
Income (loss) from continuing operations before income tax expense	$	339	$	83	$	(4	)	$	(213	)	$	205
Total assets	$	108,609	$	7,323	$	8,562		$	26,062		$	150,556

(a) Total assets for Corporate Finance were $1.7 billion and $1.6 billion at September 30, 2014 and 2013, respectively.

(b) Net financing revenue after the provision for loan losses totaled $787 million and $596 million for the three months endedSeptember 30, 2014 and 2013, respectively.

Nine months ended September 30, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage operations			Corporate and Other (a)			Consolidated (b)
2014
Net financing revenue (loss)	$	2,554	$	47	$	35		$	(60	)	$	2,576
Other revenue	195		849		13			4			1,061
Total net revenue (loss)	2,749		896		48			(56		)	3,637
Provision for loan losses	367		—		(55		)	(10		)	302
Total noninterest expense	1,167		785		62			262			2,276
Income (loss) from continuing operations before income tax expense	$	1,215	$	111	$	41		$	(308	)	$	1,059
Total assets	$	110,937	$	7,178	$	7,402		$	23,678		$	149,195
2013
Net financing revenue (loss)	$	2,350	$	43	$	62		$	(450	)	$	2,005
Other revenue (loss)	207		926		(6		)	32			1,159
Total net revenue (loss)	2,557		969		56			(418		)	3,164
Provision for loan losses	350		—		14			(3		)	361
Total noninterest expense	1,143		780		293			305			2,521
Income (loss) from continuing operations before income tax expense	$	1,064	$	189	$	(251	)	$	(720	)	$	282
Total assets	$	108,609	$	7,323	$	8,562		$	26,062		$	150,556

(a) Total assets for Corporate Finance were $1.7 billion and $1.6 billion at September 30, 2014 and 2013, respectively.

(b) Net financing revenue after the provision for loan losses totaled $2.3 billion and $1.6 billion for the nine months endedSeptember 30, 2014 and 2013, respectively.

Information concerning principal geographic areas were as follows.

Three months ended September 30, ($ in millions)	Revenue (a)		Income (loss) from continuing operations before income tax expense (b)			Net income(b)(c)
2014
Canada	$	31	$	7		$	9
Europe	—		(1		)	1
Latin America	—		—			—
Asia-Pacific	—		—			29
Total foreign	31		6			39
Total domestic (d)	1,233		414			384
Total	$	1,264	$	420		$	423
2013
Canada	$	40	$	14		$	13
Europe (e)	2		1			4
Latin America	—		12			26
Asia-Pacific	—		—			35
Total foreign	42		27			78
Total domestic (d)	1,066		178			13
Total	$	1,108	$	205		$	91

(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 $51 million and $67 million for the three months endedSeptember 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.

Nine months ended September 30, ($ in millions)	Revenue (a)			Income (loss) from continuing operations before income tax expense (b)			Net income (loss) (b)(c)
2014
Canada	$	95		$	36		$	55
Europe	2			—			5
Latin America	—			—			(8		)
Asia-Pacific	—			—			95
Total foreign	97			36			147
Total domestic (d)	3,540			1,023			826
Total	$	3,637		$	1,059		$	973
2013
Canada	$	136		$	42		$	1,256
Europe (e)	(8		)	(18		)	(82		)
Latin America	—			7			300
Asia-Pacific	1			(2		)	89
Total foreign	129			29			1,563
Total domestic (d)	3,035			253			(1,306		)
Total	$	3,164		$	282		$	257

(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 $149 million and $191 million for the nine months endedSeptember 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.