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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with CustomersOur primary revenue sources, which include financing revenue and other interest income, are addressed by other GAAP and are not in the scope of ASC Topic 606, Revenue from Contracts with Customers. As part of our Insurance operations, we recognize revenue from insurance contracts, which are addressed by other GAAP and are not included in the scope of this standard. Certain noninsurance contracts within our Insurance operations, including VSCs, GAP contracts, and VMCs, are included in the scope of this standard. All revenue associated with noninsurance contracts is recognized over the contract term on a basis proportionate to the anticipated cost emergence. Further, commissions and sales expense incurred to obtain these contracts are amortized over the terms of the related policies and service contracts on the same basis as premiums and service revenue are earned, and all advertising costs are recognized as expense when incurred.
The following tables present a disaggregated view of our revenue from contracts with customers included in other revenue that falls within the scope of the revenue recognition principles of ASC Topic 606, Revenue from Contracts with Customers. For further information regarding our revenue recognition policies and details about the nature of our respective revenue streams, refer to Note 1 and Note 3 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K.
Three months ended September 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2020
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $148 $— $— $— $148 
Remarketing fee income
20 — — — — 20 
Brokerage commissions and other revenue
— — — — 12 12 
Brokered/agent commissions— 4 — — — 4 
Deposit account and other banking fees— — — — 4 4 
Other3 — — — — 3 
Total revenue from contracts with customers
23 152 — — 16 191 
All other revenue
38 186 36 9 24 293 
Total other revenue (d)$61 $338 $36 $9 $40 $484 
2019
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $138 $— $— $— $138 
Remarketing fee income
19 — — — — 19 
Brokerage commissions and other revenue
— — — — 16 16 
Brokered/agent commissions— 3 — — — 3 
Deposit account and other banking fees— — — — 3 3 
Other5 — — — — 5 
Total revenue from contracts with customers
24 141 — — 19 184 
All other revenue
35 148 10 9 27 229 
Total other revenue (d)$59 $289 $10 $9 $46 $413 
(a)We had opening balances of $2.9 billion and $2.8 billion in unearned revenue associated with outstanding contracts at July 1, 2020, and July 1, 2019, respectively, and $218 million and $206 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the three months ended September 30, 2020, and September 30, 2019.
(b)At September 30, 2020, we had unearned revenue of $3.0 billion associated with outstanding contracts, and with respect to this balance we expect to recognize revenue of $210 million during the remainder of 2020, $779 million in 2021, $689 million in 2022, $568 million in 2023, and $722 million thereafter. At September 30, 2019, we had unearned revenue of $2.8 billion associated with outstanding contracts.
(c)We had deferred insurance assets of $1.8 billion at both July 1, 2020, and September 30, 2020, and recognized $125 million of expense during the three months ended September 30, 2020. We had deferred insurance assets of $1.6 billion and $1.7 billion at July 1, 2019, and September 30, 2019, respectively, and recognized $119 million of expense during the three months ended September 30, 2019.
(d)Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments.
Nine months ended September 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2020
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $433 $— $— $— $433 
Remarketing fee income52 — — — — 52 
Brokerage commissions and other revenue— — — — 39 39 
Brokered/agent commissions— 12 — — — 12 
Deposit account and other banking fees— — — — 9 9 
Other11 — — — — 11 
Total revenue from contracts with customers
63 445 — — 48 556 
All other revenue
85 468 65 28 103 749 
Total other revenue (c)$148 $913 $65 $28 $151 $1,305 
2019
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $403 $— $— $— $403 
Remarketing fee income56 — — — — 56 
Brokerage commissions and other revenue— — — — 50 50 
Brokered/agent commissions— 10 — — — 10 
Deposit account and other banking fees— — — — 12 12 
Other15 — — — — 15 
Total revenue from contracts with customers
71 413 — — 62 546 
All other revenue
117 522 16 30 43 728 
Total other revenue (c)$188 $935 $16 $30 $105 $1,274 
(a)We had opening balances of $2.9 billion and $2.6 billion in unearned revenue associated with outstanding contracts at January 1, 2020, and January 1, 2019, respectively, and $643 million and $607 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the nine months ended September 30, 2020, and September 30, 2019.
(b)We had deferred insurance assets of $1.7 billion and $1.8 billion at January 1, 2020, and September 30, 2020, respectively, and recognized $371 million of expense during the nine months ended September 30, 2020. We had deferred insurance assets of $1.5 billion and $1.7 billion at January 1, 2019, and September 30, 2019, respectively, and recognized $344 million of expense during the nine months ended September 30, 2019.
(c)Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments.
In addition to the components of other revenue presented above, as part of our Automotive Finance operations, we recognized net remarketing gains of $71 million and $62 million for the three months and nine months ended September 30, 2020, respectively, and $28 million and $66 million for the three months and nine months ended September 30, 2019, on the sale of off-lease vehicles. These gains are included in depreciation expense on operating lease assets in our Condensed Consolidated Statement of Comprehensive Income.