Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

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 four operating segments: Automotive Finance operations, Insurance operations, Mortgage Finance operations, and Corporate Finance 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 U.S.-based automotive financing services to consumers and automotive dealers, and automotive and equipment financing services to companies and municipalities. Our automotive finance services include providing retail installment sales contracts, loans, and leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles and equipment, and vehicle remarketing services.

Insurance operations — Offers both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. As part of our focus on offering dealers a broad range of consumer financial and insurance products, we provide VSCs, VMCs, and GAP products. We also underwrite selected commercial insurance coverages, which primarily insure dealers' wholesale vehicle inventory.

Mortgage Finance operations — Primarily consists of the management of a held-for-investment consumer mortgage finance loan portfolio, which includes bulk purchases of high-quality jumbo and LMI mortgage loans originated by third parties. In late 2016, we also introduced limited direct mortgage originations consisting of jumbo and conforming mortgages through a third-party fulfillment partner, LenderLive. Under our current arrangement, conforming mortgages will be originated as held-for-sale and sold to LenderLive, while jumbo mortgages will be originated as held-for-investment. Servicing will be performed by a third party and no mortgage servicing rights will be created. Direct mortgage originations did not materially impact our results of operations for the year ended December 31, 2016.

Corporate Finance operations — Primarily provides senior secured leveraged cash flow and asset-based loans to mostly U.S.-based middle market companies. Our primary focus is on businesses owned by private equity sponsors with loans typically used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital.

Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan 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 which primarily consist of FHLB and FRB stock, the management of our legacy mortgage portfolio which primarily consists of loans originated prior to January 1, 2009, and reclassifications and eliminations between the reportable operating segments. Additionally, beginning in June 2016, financial information related to TradeKing is included within Corporate and Other.

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.

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

Year ended December 31, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage Finance operations			Corporate Finance operations			Corporate and Other			Consolidated (a)
2016
Net financing revenue and other interest income (loss)	$	3,665	$	61	$	97		$	121		$	(37	)	$	3,907
Other revenue	306		1,036		—			26			162			1,530
Total net revenue	3,971		1,097		97			147			125			5,437
Provision for loan losses	924		—		(4		)	10			(13		)	917
Total noninterest expense	1,667		940		67			66			199			2,939
Income (loss) from continuing operations before income tax expense	$	1,380	$	157	$	34		$	71		$	(61	)	$	1,581
Total assets	$	116,347	$	7,172	$	8,307		$	3,183		$	28,719		$	163,728
2015
Net financing revenue and other interest income	$	3,429	$	57	$	57		$	89		$	87		$	3,719
Other revenue (loss)	235		1,033		—			25			(151		)	1,142
Total net revenue (loss)	3,664		1,090		57			114			(64		)	4,861
Provision for loan losses	696		—		7			9			(5		)	707
Total noninterest expense	1,633		879		39			55			155			2,761
Income (loss) from continuing operations before income tax expense	$	1,335	$	211	$	11		$	50		$	(214	)	$	1,393
Total assets	$	115,636	$	7,053	$	6,461		$	2,677		$	26,754		$	158,581
2014
Net financing revenue and other interest income (loss)	$	3,321	$	56	$	36		$	59		$	(97	)	$	3,375
Other revenue (loss)	264		1,129		—			32			(149		)	1,276
Total net revenue (loss)	3,585		1,185		36			91			(246		)	4,651
Provision for loan losses	542		—		3			(16		)	(72		)	457
Total noninterest expense	1,614		988		21			43			282			2,948
Income (loss) from continuing operations before income tax expense	$	1,429	$	197	$	12		$	64		$	(456	)	$	1,246
Total assets	$	113,188	$	7,190	$	3,542		$	1,870		$	25,841		$	151,631

(a) Net financing revenue and other interest income after the provision for loan losses totaled $3.0 billion, for the years endedDecember 31, 2016, and 2015, and $2.9 billion for the year endedDecember 31, 2014.

Information concerning principal geographic areas was as follows.

Year ended December 31, ($ in millions)	Total net revenue (a)		Income from continuing operations before income tax expense		Net income (loss) (b)			Identifiable assets (c)		Long-lived assets (d)
2016
Canada	$	90	$	44	$	32		$	499	$	—
Europe	—		—		(1		)	276		—
Latin America	—		—		(1		)	23		—
Asia-Pacific	—		—		—			2		—
Total foreign (e)	90		44		30			800		—
Total domestic (f)	5,347		1,537		1,037			162,688		11,846
Total	$	5,437	$	1,581	$	1,067		$	163,488	$	11,846
2015
Canada	$	98	$	47	$	35		514		—
Europe	1		4		27			325		—
Latin America	—		—		(2		)	28		—
Asia-Pacific	—		—		452			2		—
Total foreign (e)	99		51		512			869		—
Total domestic (f)	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 (e)	126		54		186			2,891		—
Total domestic (f)	4,525		1,192		964			148,713		19,735
Total	$	4,651	$	1,246	$	1,150		$	151,604	$	19,735

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

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

(c) Identifiable assets consist of total assets excluding goodwill.

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

(e) Our foreign operations as of December 31, 2016, 2015, and 2014, consist of our ongoing Insurance operations in Canada and our remaining international entities in wind-down.

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