Segment And Geographic Information

12 Months Ended

Dec. 31, 2015

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. Our automotive financing services include providing retail installment sales financing, loans, and leases; offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers; fleet financing, and vehicle remarketing services.

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 financial and insurance products, we provide vehicle service contracts, maintenance coverage, and guaranteed asset protection products. We also underwrite selected commercial insurance coverages, which primarily insure dealers' vehicle inventories.

Mortgage operations — Our Mortgage operations include the management of our held-for-investment mortgage loan portfolio and includes the execution of bulk purchases of high-quality jumbo and low-to-moderate income mortgage loans originated by third parties.

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 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 and reclassifications and eliminations between the reportable operating segments. Corporate Finance is a middle market lender that provides senior secured leveraged cash flow and asset based loans primarily to U.S.-based companies.

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 benchmark rate 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.

Change in Allocation of Costs to Reportable Segments

During the fourth quarter of 2015, we began to allocate additional overhead expenses related to centralized support functions to our Automotive Finance, Insurance, and Mortgage operations as a result of a change in management's view of our operations. These expenses were previously included within our Corporate and Other activities. Amounts for 2014 and 2013 have been reclassified to conform to the current management view.

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

Year ended December 31, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage operations			Corporate and Other (a)			Consolidated (b)
2015
Net financing revenue	$	3,429	$	57	$	72		$	161		$	3,719
Other revenue (loss)	235		1,033		87			(213		)	1,142
Total net revenue (loss)	3,664		1,090		159			(52		)	4,861
Provision for loan losses	696		—		1			10			707
Total noninterest expense	1,633		879		68			181			2,761
Income (loss) from continuing operations before income tax expense	$	1,335	$	211	$	90		$	(243	)	$	1,393
Total assets	$	115,636	$	7,053	$	9,768		$	26,124		$	158,581
2014
Net financing revenue (loss)	$	3,321	$	56	$	43		$	(45	)	$	3,375
Other revenue (loss)	264		1,129		17			(134		)	1,276
Total net revenue (loss)	3,585		1,185		60			(179		)	4,651
Provision for loan losses	542		—		(69		)	(16		)	457
Total noninterest expense	1,614		988		70			276			2,948
Income (loss) from continuing operations before income tax expense	$	1,429	$	197	$	59		$	(439	)	$	1,246
Total assets	$	113,188	$	7,190	$	7,884		$	23,369		$	151,631
2013
Net financing revenue (loss)	$	3,159	$	57	$	76		$	(513	)	$	2,779
Other revenue	268		1,196		—			20			1,484
Total net revenue (loss)	3,427		1,253		76			(493		)	4,263
Provision for loan losses	494		—		13			(6		)	501
Total noninterest expense	1,755		999		324			327			3,405
Income (loss) from continuing operations before income tax expense	$	1,178	$	254	$	(261	)	$	(814	)	$	357
Total assets	$	109,312	$	7,124	$	8,168		$	26,304		$	150,908

(a) Total assets for Corporate Finance were $2.7 billion, $1.9 billion, and $1.6 billion at December 31, 2015, 2014, and 2013, respectively.

(b) Net financing revenue after the provision for loan losses totaled $3.0 billion, $2.9 billion, and $2.3 billion for the years ended December 31, 2015, 2014, and 2013, respectively.

Information concerning principal geographic areas were as follows.

Year ended December 31,($ in millions)	Revenue (a)			Income (loss) from continuing operations before income tax expense (b)			Net income (loss) (b)(c)			Identifiable assets (d)		Long-lived assets (e)
2015
Canada	$	98		$	47		$	35		$	514	$	—
Europe	1			4			27			325		—
Latin America	—			—			(2		)	28		—
Asia-Pacific	—			—			452			2		—
Total foreign (f)	99			51			512			869		—
Total domestic (g)	4,762			1,342			777			157,685		16,506
Total	$	4,861		$	1,393		$	1,289		$	158,554	$	16,506
2014
Canada	$	124		$	54		$	68		$	590	$	—
Europe	2			—			4			1,636		—
Latin America	—			—			(8		)	29		—
Asia-Pacific	—			—			122			636		—
Total foreign (f)	126			54			186			2,891		—
Total domestic (g)	4,525			1,192			964			148,713		19,735
Total	$	4,651		$	1,246		$	1,150		$	151,604	$	19,735
2013
Canada	$	171		$	64		$	1,266		$	704	$	—
Europe (h)	(8		)	(18		)	(88		)	1,972		—
Latin America	—			7			300			29		—
Asia-Pacific	1			(2		)	117			520		—
Total foreign	164			51			1,595			3,225		—
Total domestic (g)	4,099			306			(1,234		)	147,656		17,916
Total	$	4,263		$	357		$	361		$	150,881	$	17,916

(a) Revenue consists of net financing revenue and total other revenue as presented in our Consolidated Statement of Income.

(b) The domestic amounts include original discount amortization of $62 million, $189 million, and $262 million for the years ended December 31, 2015, 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) Identifiable assets consist of total assets excluding goodwill.

(e) Long-lived assets consist of investment in operating leases, net, and net property and equipment.

(f) Our foreign operations as of December 31, 2015, and December 31, 2014, consist of our ongoing Insurance operations in Canada, and our remaining international entities in wind-down.

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

(h) Amounts include eliminations between our foreign operations.