Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Measurements - Recurring Basis [Table Text Block]

The following tables display the assets and liabilities measured at fair value on a recurring basis including financial instruments elected for the fair value option. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The tables below display the hedges separately from the hedged items; therefore, they do not directly display the impact of our risk management activities.



	Recurring fair value measurements
March 31, 2017 ($ in millions)	Level 1		Level 2			Level 3		Total
Assets
Investment securities
Available-for-sale securities
Debt securities
U.S. Treasury	$	2,225	$	—		$	—	$	2,225
U.S. States and political subdivisions	—		795			—		795
Foreign government	9		137			—		146
Agency mortgage-backed residential	—		11,862			—		11,862
Mortgage-backed residential	—		1,996			—		1,996
Mortgage-backed commercial	—		534			—		534
Asset-backed	—		1,051			—		1,051
Corporate debt	—		1,255			—		1,255
Total debt securities	2,234		17,630			—		19,864
Equity securities (a)	444		—			—		444
Total available-for-sale securities	2,678		17,630			—		20,308
Mortgage loans held-for-sale	—		—			1		1
Interests retained in financial asset sales	—		—			31		31
Derivative contracts in a receivable position (b)
Interest rate	—		80			—		80
Total derivative contracts in a receivable position	—		80			—		80
Total assets	$	2,678	$	17,710		$	32	$	20,420
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position (b)
Interest rate	$	—	$	(80	)	$	—	$	(80	)
Foreign currency	—		(1		)	—		(1		)
Total derivative contracts in a payable position	—		(81		)	—		(81		)
Total liabilities	$	—	$	(81	)	$	—	$	(81	)


(a)	Our investment in any one industry did not exceed 16%.


(b)	For additional information on derivative instruments and hedging activities, refer to Note 19.



	Recurring fair value measurements
December 31, 2016 ($ in millions)	Level 1			Level 2			Level 3		Total
Assets
Investment securities
Available-for-sale securities
Debt securities
U.S. Treasury	$	1,620		$	—		$	—	$	1,620
U.S. States and political subdivisions	—			782			—		782
Foreign government	11			151			—		162
Agency mortgage-backed residential	—			10,290			—		10,290
Mortgage-backed residential	—			2,097			—		2,097
Mortgage-backed commercial	—			537			—		537
Asset-backed	—			1,400			—		1,400
Corporate debt	—			1,443			—		1,443
Total debt securities	1,631			16,700			—		18,331
Equity securities (a)	595			—			—		595
Total available-for-sale securities	2,226			16,700			—		18,926
Other assets
Interests retained in financial asset sales	—			—			29		29
Derivative contracts in a receivable position (b)
Interest rate	—			92			—		92
Foreign currency	—			2			—		2
Other	1			—			—		1
Total derivative contracts in a receivable position	1			94			—		95
Total assets	$	2,227		$	16,794		$	29	$	19,050
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position (b)
Interest rate	$	—		$	(94	)	$	—	$	(94	)
Other	(1		)	—			—		(1		)
Total derivative contracts in a payable position	(1		)	(94		)	—		(95		)
Total liabilities	$	(1	)	$	(94	)	$	—	$	(95	)


(a)	Our investment in any one industry did not exceed 14%.


(b)	For additional information on derivative instruments and hedging activities, refer to Note 19.

The following tables present the reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The Level 3 items presented below may be hedged by derivatives and other financial instruments that are classified as Level 1 or Level 2. Thus, the following tables do not fully reflect the impact of our risk management activities.

Fair Value Measurements - Reconciliation of Level 3 Assets and Liabilities [Table Text Block]



	Level 3 recurring fair value measurements
			Net realized/unrealized gains														Fair value at March 31, 2017		Net unrealized gains included in earnings still held at March 31, 2017
($ in millions)	Fair value at Jan. 1, 2017		included in earnings		included in OCI		Purchases		Sales			Issuances		Settlements			Fair value at March 31, 2017
Assets
Mortgage loans held-for-sale	$	—	$	—	$	—	$	3	$	(2	)	$	—	$	—		$	1	$	—
Other assets
Interests retained in financial asset sales	29		—		—		—		4			—		(2		)	31		—
Total assets	$	29	$	—	$	—	$	3	$	2		$	—	$	(2	)	$	32	$	—



	Level 3 recurring fair value measurements
	Fair value at Jan. 1, 2016		Net realized/unrealized gains					Purchases		Sales		Issuances		Settlements			Fair value at March 31, 2016		Net unrealized gains included in earnings still held at March 31, 2016
($ in millions)	Fair value at Jan. 1, 2016		included in earnings			included in OCI		Purchases		Sales		Issuances		Settlements			Fair value at March 31, 2016
Assets
Other assets
Interests retained in financial asset sales	$	40	$	2	(a)	$	—	$	—	$	4	$	—	$	(15	)	$	31	$	—
Total assets	$	40	$	2		$	—	$	—	$	4	$	—	$	(15	)	$	31	$	—


(a)	Reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

Fair Value Measurements - Nonrecurring Basis [Table Text Block]

The following tables display the assets and liabilities measured at fair value on a nonrecurring basis.



	Nonrecurring fair value measurements								Lower-of-cost or fair value or valuation reserve allowance			Total gain (loss) included in earnings for the three months ended
March 31, 2017 ($ in millions)	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value or valuation reserve allowance
Assets
Commercial finance receivables and loans, net (a)
Commercial and industrial
Automotive	$	—	$	—	$	29	$	29	$	(3	)	n/m	(b)
Other	—		—		61		61		(21		)	n/m	(b)
Total commercial finance receivables and loans, net	—		—		90		90		(24		)	n/m	(b)
Other assets
Repossessed and foreclosed assets (c)	—		—		15		15		(2		)	n/m	(b)
Other	—		—		4		4		—			n/m	(b)
Total assets	$	—	$	—	$	109	$	109	$	(26	)	n/m

n/m = not meaningful


(a)	Represents the portion of the portfolio specifically impaired during 2017. The related valuation allowance represents the cumulative adjustment to fair value of those specific receivables.


(b)	We consider the applicable valuation or loan loss allowance to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation or loan loss allowance.


(c)	The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.



	Nonrecurring fair value measurements								Lower-of-cost or fair value or valuation reserve allowance			Total gain (loss) included in earnings for the three months ended
March 31, 2016 ($ in millions)	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value or valuation reserve allowance
Assets
Loans held-for-sale, net	$	—	$	—	$	39	$	39	$	—		n/m	(a)
Commercial finance receivables and loans, net (b)
Commercial and industrial
Automotive	—		—		17		17		(3		)	n/m	(a)
Other	—		—		28		28		(15		)	n/m	(a)
Total commercial finance receivables and loans, net	—		—		45		45		(18		)	n/m	(a)
Other assets
Repossessed and foreclosed assets (c)	—		—		12		12		(3		)	n/m	(a)
Other	—		—		6		6		—			n/m	(a)
Total assets	$	—	$	—	$	102	$	102	$	(21	)	n/m

n/m = not meaningful


(a)	We consider the applicable valuation or loan loss allowance to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation or loan loss allowance.


(b)	Represents the portion of the portfolio specifically impaired during 2016. The related valuation allowance represents the cumulative adjustment to fair value of those specific receivables.


(c)	The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.

Fair Value of Financial Intruments [Table Text Block]

The following table presents the carrying and estimated fair value of financial instruments, except for those recorded at fair value on a recurring basis presented in the previous section of this note titled Recurring Fair Value. When possible, we use quoted market prices to determine fair value. Where quoted market prices are not available, the fair value is internally derived based on appropriate valuation methodologies with respect to the amount and timing of future cash flows and estimated discount rates. However, considerable judgment is required in interpreting current market data to develop the market assumptions and inputs necessary to estimate fair value. As such, the actual amount received to sell an asset or the amount paid to settle a liability could differ from our estimates. Fair value information presented herein was based on information available at March 31, 2017, and December 31, 2016.



			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
March 31, 2017
Financial assets
Held-to-maturity securities	$	1,104	$	—	$	1,063	$	—	$	1,063
Finance receivables and loans, net	117,847		—		—		119,420		119,420
Nonmarketable equity investments	833		—		795		59		854
Financial liabilities
Deposit liabilities	$	84,486	$	—	$	—	$	82,715	$	82,715
Short-term borrowings	8,371		—		—		8,372		8,372
Long-term debt	51,061		—		19,604		33,511		53,115
December 31, 2016
Financial assets
Held-to-maturity securities	$	839	$	—	$	789	$	—	$	789
Finance receivables and loans, net	117,800		—		—		118,750		118,750
Nonmarketable equity investments	1,046		—		1,012		55		1,067
Financial liabilities
Deposit liabilities	$	79,022	$	—	$	—	$	78,469	$	78,469
Short-term borrowings	12,673		—		—		12,675		12,675
Long-term debt	54,128		—		22,036		34,084		56,120

The following describes the methodologies and assumptions used to determine fair value for the significant classes of financial instruments. In addition to the valuation methods discussed below, we also followed guidelines for determining whether a market was not active and a transaction was not distressed. We assumed the price that would be received in an orderly transaction (including a market-based return) and not in forced liquidation or distressed sale.