Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Fair Value, Assets and Liabilities Measured on a 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
June 30, 2018 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a)	$	509	$	—	$	12	$	521
Available-for-sale securities
Debt securities
U.S. Treasury	1,874		—		—		1,874
U.S. States and political subdivisions	—		851		—		851
Foreign government	7		147		—		154
Agency mortgage-backed residential	—		15,066		—		15,066
Mortgage-backed residential	—		2,625		—		2,625
Mortgage-backed commercial	—		642		—		642
Asset-backed	—		868		—		868
Corporate debt	—		1,216		—		1,216
Total available-for-sale securities	1,881		21,415		—		23,296
Mortgage loans held-for-sale (b)	—		—		13		13
Interests retained in financial asset sales	—		—		4		4
Derivative contracts in a receivable position
Interest rate	—		62		1		63
Total derivative contracts in a receivable position	—		62		1		63
Total assets	$	2,390	$	21,477	$	30	$	23,897
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	62	$	—	$	62
Foreign currency	—		2		—		2
Other	1		—		—		1
Total derivative contracts in a payable position	1		64		—		65
Total liabilities	$	1	$	64	$	—	$	65


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


(b)	Carried at fair value due to fair value option elections.



	Recurring fair value measurements
December 31, 2017 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a)	$	518	$	—	$	—	$	518
Available-for-sale securities
Debt securities
U.S. Treasury	1,777		—		—		1,777
U.S. States and political subdivisions	—		854		—		854
Foreign government	8		146		—		154
Agency mortgage-backed residential	—		14,291		—		14,291
Mortgage-backed residential	—		2,494		—		2,494
Mortgage-backed commercial	—		541		—		541
Asset-backed	—		936		—		936
Corporate debt	—		1,256		—		1,256
Total available-for-sale securities	1,785		20,518		—		22,303
Mortgage loans held-for-sale (b)	—		—		13		13
Interests retained in financial asset sales	—		—		5		5
Derivative contracts in a receivable position
Interest rate	—		38		1		39
Total derivative contracts in a receivable position	—		38		1		39
Total assets	$	2,303	$	20,556	$	19	$	22,878
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	39	$	—	$	39
Foreign currency	—		2		—		2
Total derivative contracts in a payable position	—		41		—		41
Total liabilities	$	—	$	41	$	—	$	41


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


(b)	Carried at fair value due to fair value option elections.

Fair Value, Assets Measured on a Recurring Basis, Unobservable Input Reconciliation [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 June 30, 2018		Net unrealized gains included in earnings still held at June 30, 2018
($ in millions)	Fair value at April 1, 2018		included in earnings			included in OCI		Purchases		Sales			Issuances		Settlements
Assets
Equity securities	$	12	$	—		$	—	$	—	$	—		$	—	$	—		$	12	$	—
Mortgage loans held-for-sale (a)	7		1		(b)	—		73		(68		)	—		—			13		—
Other assets
Interests retained in financial asset sales	5		—			—		—		—			—		(1		)	4		—
Derivative assets	1		—			—		—		—			—		—			1		—
Total assets	$	25	$	1		$	—	$	73	$	(68	)	$	—	$	(1	)	$	30	$	—


(a)	Carried at fair value due to fair value option elections.


(b)	Reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.



	Level 3 recurring fair value measurements
	Fair value at April 1, 2017		Net realized/unrealized gains					Purchases		Sales			Issuances		Settlements			Fair value at June 30, 2017		Net unrealized gains included in earnings still held at June 30, 2017
($ in millions)	Fair value at April 1, 2017		included in earnings			included in OCI		Purchases		Sales			Issuances		Settlements			Fair value at June 30, 2017
Assets
Mortgage loans held-for-sale (a)	$	1	$	—		$	—	$	20	$	(18	)	$	—	$	—		$	3	$	—
Other assets
Interests retained in financial asset sales	31		1		(b)	—		—		4			—		(31		)	5		—
Derivative assets	—		1		(c)	—		—		—			—		—			1		1
Total assets	$	32	$	2		$	—	$	20	$	(14	)	$	—	$	(31	)	$	9	$	1


(a)	Carried at fair value due to fair value option elections.


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


(c)	Reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.



	Level 3 recurring fair value measurements
			Net realized/unrealized (losses) gains																Fair value at June 30, 2018		Net unrealized losses included in earnings still held at June 30, 2018
($ in millions)	Fair value at Jan. 1, 2018		included in earnings				included in OCI		Purchases		Sales			Issuances		Settlements
Assets
Equity securities (a)	$	19	$	(4	)	(b)	$	—	$	—	$	—		$	—	$	(3	)	$	12	$	(5	)
Mortgage loans held-for-sale (c)	13		2			(d)	—		132		(134		)	—		—			13		—
Other assets
Interests retained in financial asset sales	5		—				—		—		—			—		(1		)	4		—
Derivative assets	1		—				—		—		—			—		—			1		—
Total assets	$	38	$	(2	)		$	—	$	132	$	(134	)	$	—	$	(4	)	$	30	$	(5	)


(a)	In connection with our adoption of ASU 2016-01 on January 1, 2018, certain of our equity securities previously measured using the cost method of accounting are now measured at fair value on a recurring basis, and have been categorized as Level 3 within the fair value hierarchy. Accordingly, the fair value of such investments has been included in the opening balance of the reconciliation above.


(b)	Reported as other loss on investments, net, in the Condensed Consolidated Statement of Comprehensive Income.


(c)	Carried at fair value due to fair value option elections.


(d)	Reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.



	Level 3 recurring fair value measurements
	Fair value at Jan. 1, 2017		Net realized/unrealized gains					Purchases		Sales			Issuances		Settlements			Fair value at June 30, 2017		Net unrealized gains included in earnings still held at June 30, 2017
($ in millions)	Fair value at Jan. 1, 2017		included in earnings			included in OCI		Purchases		Sales			Issuances		Settlements			Fair value at June 30, 2017
Assets
Mortgage loans held-for-sale (a)	$	—	$	—		$	—	$	23	$	(20	)	$	—	$	—		$	3	$	—
Other assets
Interests retained in financial asset sales	29		1		(b)	—		—		8			—		(33		)	5		—
Derivative assets	—		1		(c)	—		—		—			—		—			1		1
Total assets	$	29	$	2		$	—	$	23	$	(12	)	$	—	$	(33	)	$	9	$	1


(a)	Carried at fair value due to fair value option elections.


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


(c)	Reported as gain on mortgage and automotive loans, net, 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
June 30, 2018 ($ in millions)	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value or valuation reserve allowance			Total gain (loss) included in earnings
Assets
Loans held-for-sale, net	$	—	$	—	$	315	$	315	$	—		n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		62		62		(12		)	n/m	(a)
Other	—		—		50		50		(15		)	n/m	(a)
Total commercial finance receivables and loans, net	—		—		112		112		(27		)	n/m	(a)
Other assets
Repossessed and foreclosed assets (c)	—		—		13		13		(1		)	n/m	(a)
Total assets	$	—	$	—	$	440	$	440	$	(28	)	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 2018. 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 (loss) included in earnings
December 31, 2017 ($ in millions)	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value or valuation reserve allowance			Total gain (loss) included in earnings
Assets
Loans held-for-sale, net	$	—	$	—	$	77	$	77	$	—		n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		20		20		(3		)	n/m	(a)
Other	—		—		22		22		(12		)	n/m	(a)
Total commercial finance receivables and loans, net	—		—		42		42		(15		)	n/m	(a)
Other assets
Repossessed and foreclosed assets (c)	—		—		14		14		(1		)	n/m	(a)
Other	—		—		3		3		—			n/m	(a)
Total assets	$	—	$	—	$	136	$	136	$	(16	)	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.

Financial Instruments Disclosure [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 June 30, 2018, and December 31, 2017.



			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
June 30, 2018
Financial assets
Held-to-maturity securities	$	2,089	$	—	$	2,007	$	—	$	2,007
Loans held-for-sale, net	315		—		—		315		315
Finance receivables and loans, net	124,287		—		—		125,846		125,846
Nonmarketable equity investments	1,237		—		1,237		—		1,237
Financial liabilities
Deposit liabilities (a)	$	49,617	$	—	$	—	$	49,493	$	49,493
Short-term borrowings	7,108		—		—		7,112		7,112
Long-term debt	47,328		—		28,040		21,094		49,134
December 31, 2017
Financial assets
Held-to-maturity securities	$	1,899	$	—	$	1,865	$	—	$	1,865
Loans held-for-sale, net	95		—		—		95		95
Finance receivables and loans, net	121,617		—		—		123,302		123,302
Nonmarketable equity investments	1,233		—		1,190		49		1,239
Financial liabilities
Deposit liabilities (a)	$	45,869	$	—	$	—	$	45,827	$	45,827
Short-term borrowings	11,413		—		—		11,417		11,417
Long-term debt	44,226		—		27,807		18,817		46,624

(a)

In connection with our adoption of ASU 2016-01 on January 1, 2018, deposit liabilities with no defined or contractual maturities are no longer included in the table above. Amounts for December 31, 2017, have been adjusted to conform to the current presentation and exclude $47.4 billion and $45.2 billion of deposit liabilities with no defined or contractual maturities from the carrying value and Level 3 fair value, respectively. Refer to Note 12 for information regarding the composition of our deposits portfolio, and Note 1 for further information regarding recently adopted accounting standards.