Fair Value (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2017 ($ in millions)	Level 1		Level 2			Level 3		Total
Assets
Investment securities
Available-for-sale securities
Debt securities
U.S. Treasury	$	2,073	$	—		$	—	$	2,073
U.S. States and political subdivisions	—		851			—		851
Foreign government	8		149			—		157
Agency mortgage-backed residential	—		14,344			—		14,344
Mortgage-backed residential	—		2,310			—		2,310
Mortgage-backed commercial	—		509			—		509
Asset-backed	—		1,039			—		1,039
Corporate debt	—		1,291			—		1,291
Total debt securities	2,081		20,493			—		22,574
Equity securities (a)	525		—			—		525
Total available-for-sale securities	2,606		20,493			—		23,099
Mortgage loans held-for-sale	—		—			9		9
Interests retained in financial asset sales	—		—			5		5
Derivative contracts in a receivable position
Interest rate	1		30			1		32
Foreign currency	—		5			—		5
Total derivative contracts in a receivable position	1		35			1		37
Total assets	$	2,607	$	20,528		$	15	$	23,150
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	(30	)	$	—	$	(30	)
Total derivative contracts in a payable position	—		(30		)	—		(30		)
Total liabilities	$	—	$	(30	)	$	—	$	(30	)


(a)	Our investment in any one industry did not exceed 15%.



	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
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
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%.

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

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.



	Level 3 recurring fair value measurements
			Net realized/unrealized gains													Fair value at September 30, 2017		Net unrealized gains included in earnings still held at September 30, 2017
($ in millions)	Fair value at July 1, 2017		included in earnings		included in OCI		Purchases		Sales			Issuances		Settlements
Assets
Mortgage loans held-for-sale	$	3	$	1	$	—	$	49	$	(44	)	$	—	$	—	$	9	$	—
Other assets
Interests retained in financial asset sales	5		—		—		—		—			—		—		5		—
Derivative assets	1		—		—		—		—			—		—		1		—
Total assets	$	9	$	1	$	—	$	49	$	(44	)	$	—	$	—	$	15	$	—



	Level 3 recurring fair value measurements
	Fair value at July 1, 2016		Net realized/unrealized gains					Purchases		Sales		Issuances		Settlements			Fair value at September 30, 2016		Net unrealized gains included in earnings still held at September 30, 2016
($ in millions)	Fair value at July 1, 2016		included in earnings			included in OCI		Purchases		Sales		Issuances		Settlements			Fair value at September 30, 2016
Assets
Other assets
Interests retained in financial asset sales	$	31	$	1	(a)	$	—	$	—	$	2	$	—	$	(2	)	$	32	$	—
Total assets	$	31	$	1		$	—	$	—	$	2	$	—	$	(2	)	$	32	$	—


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



	Level 3 recurring fair value measurements
			Net realized/unrealized gains														Fair value at September 30, 2017		Net unrealized gains included in earnings still held at September 30, 2017
($ in millions)	Fair value at Jan. 1, 2017		included in earnings		included in OCI		Purchases		Sales			Issuances		Settlements
Assets
Mortgage loans held-for-sale	$	—	$	1	$	—	$	72	$	(64	)	$	—	$	—		$	9	$	—
Other assets
Interests retained in financial asset sales	29		1		—		—		8			—		(33		)	5		—
Derivative assets	—		1		—		—		—			—		—			1		1
Total assets	$	29	$	3	$	—	$	72	$	(56	)	$	—	$	(33	)	$	15	$	1



	Level 3 recurring fair value measurements
	Fair value at Jan. 1, 2016		Net realized/unrealized gains					Purchases		Sales		Issuances		Settlements			Fair value at September 30, 2016		Net unrealized gains included in earnings still held at September 30, 2016
($ in millions)	Fair value at Jan. 1, 2016		included in earnings			included in OCI		Purchases		Sales		Issuances		Settlements			Fair value at September 30, 2016
Assets
Other assets
Interests retained in financial asset sales	$	40	$	4	(a)	$	—	$	—	$	8	$	—	$	(20	)	$	32	$	—
Total assets	$	40	$	4		$	—	$	—	$	8	$	—	$	(20	)	$	32	$	—


(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		Total gain (loss) included in earnings for the nine months ended
September 30, 2017 ($ 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	$	—	$	—	$	9	$	9	$	—		n/m	(a)	n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		29		29		$	(4	)	n/m	(a)	n/m	(a)
Other	—		—		35		35		(16		)	n/m	(a)	n/m	(a)
Total commercial finance receivables and loans, net	—		—		64		64		(20		)	n/m	(a)	n/m	(a)
Other assets
Repossessed and foreclosed assets (c)	—		—		13		13		(2		)	n/m	(a)	n/m	(a)
Other	—		—		3		3		—			n/m	(a)	n/m	(a)
Total assets	$	—	$	—	$	89	$	89	$	(22	)	n/m		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 2017. 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.



	Nonrecurring fair value measurements								Lower-of-cost or fair value or valuation reserve allowance			Total gain included in earnings for the three months ended		Total gain included in earnings for the nine months ended
September 30, 2016 ($ in millions)	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value or valuation reserve allowance			Total gain included in earnings for the three months ended		Total gain included in earnings for the nine months ended
Assets
Loans held-for-sale, net	$	—	$	—	$	56	$	56	$	—		n/m	(a)	n/m	(a)
Commercial finance receivables and loans, net (b)
Commercial and industrial
Automotive	—		—		30		30		(7		)	n/m	(a)	n/m	(a)
Other	—		—		45		45		(17		)	n/m	(a)	n/m	(a)
Total commercial finance receivables and loans, net	—		—		75		75		(24		)	n/m	(a)	n/m	(a)
Other assets
Repossessed and foreclosed assets (c)	—		—		15		15		(4		)	n/m	(a)	n/m	(a)
Other	—		—		7		7		—			n/m	(a)	n/m	(a)
Total assets	$	—	$	—	$	153	$	153	$	(28	)	n/m		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 September 30, 2017, and December 31, 2016.



			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
September 30, 2017
Financial assets
Held-to-maturity securities	$	1,839	$	—	$	1,807	$	—	$	1,807
Loans held-for-sale, net	9		—		—		9		9
Finance receivables and loans, net	117,585		—		—		119,498		119,498
Nonmarketable equity investments (a)	1,053		—		1,026		26		1,052
Financial liabilities
Deposit liabilities	$	90,116	$	—	$	—	$	88,151	$	88,151
Short-term borrowings	10,175		—		—		10,177		10,177
Long-term debt	45,122		—		29,776		17,880		47,656
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


(a)	Excludes investments with a carrying value of $12 million and fair value of $35 million at September 30, 2017, for which fair value is measured at net asset value (or its equivalent) as a practical expedient.