Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis

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, 2021 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a)	$	1,017	$	—	$	9	$	1,026
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,148		—		—		2,148
U.S. States and political subdivisions	—		1,017		7		1,024
Foreign government	17		167		—		184
Agency mortgage-backed residential	—		20,835		—		20,835
Mortgage-backed residential	—		2,910		—		2,910
Agency mortgage-backed commercial	—		4,405		—		4,405
Asset-backed	—		555		—		555
Corporate debt	—		2,100		—		2,100
Total available-for-sale securities	2,165		31,989		7		34,161
Mortgage loans held-for-sale (b)	—		—		97		97
Finance receivables and loans, net
Consumer other (b)	—		—		8		8
Derivative contracts in a receivable position
Interest rate	—		—		9		9
Foreign currency	—		4		—		4
Equity contracts	3		—		—		3
Total derivative contracts in a receivable position	3		4		9		16
Total assets	$	3,185	$	31,993	$	130	$	35,308
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Credit contracts	$	—	$	—	$	46	$	46
Equity contracts	1		—		—		1
Total derivative contracts in a payable position	1		—		46		47
Total liabilities	$	1	$	—	$	46	$	47

(a)Our direct investment in any one industry did not exceed 11%.

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

	Recurring fair value measurements
December 31, 2020 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a)	$	1,064	$	—	$	7	$	1,071
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	803		—		—		803
U.S. States and political subdivisions	—		1,088		7		1,095
Foreign government	17		159		—		176
Agency mortgage-backed residential	—		18,588		—		18,588
Mortgage-backed residential	—		2,640		—		2,640
Agency mortgage-backed commercial	—		4,189		—		4,189
Asset-backed	—		425		—		425
Corporate debt	—		1,914		—		1,914
Total available-for-sale securities	820		29,003		7		29,830
Mortgage loans held-for-sale (b)	—		—		91		91
Finance receivables and loans, net
Consumer other (b)	—		—		8		8
Derivative contracts in a receivable position
Interest rate	—		—		16		16
Foreign currency	—		1		—		1
Total derivative contracts in a receivable position	—		1		16		17
Total assets	$	1,884	$	29,004	$	129	$	31,017
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Foreign currency	$	—	$	1	$	—	$	1
Credit contracts	—		—		28		28
Equity contracts	4		—		—		4
Total derivative contracts in a payable position	4		1		28		33
Total liabilities	$	4	$	1	$	28	$	33

(a)Our direct investment in any one industry did not exceed 11%.

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

Fair Value, Assets Measured on a Recurring Basis, Unobservable Input Reconciliation

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.

	Equity securities (a)				Available-for-sale securities				Mortgage loans held-for-sale (b) (c)				Finance receivables and loans, net (b) (d)				Interests retained in financial asset sales
($ in millions)	2021		2020		2021		2020		2021		2020		2021		2020		2021		2020
Assets
Fair value at April 1,	$	11	$	4	$	7	$	3	$	146	$	68	$	8	$	10	$	—	$	1
Net realized/unrealized gains
Included in earnings	—		1		—		—		21		8		—		1		—		—
Included in OCI	—		—		—		—		—		—		—		—		—		—
Purchases	—		—		—		2		812		676		5		3		—		—
Sales	(2)		—		—		—		(882)		(661)		—		—		—		—
Issuances	—		—		—		—		—		—		—		—		—		—
Settlements	—		—		—		—		—		—		(5)		(6)		—		—
Transfers into (out of) Level 3	—		—		—		—		—		—		—		—		—		—
Fair value at June 30,	$	9	$	5	$	7	$	5	$	97	$	91	$	8	$	8	$	—	$	1
Net unrealized gains still held at June 30,
Included in earnings	$	—	$	1	$	—	$	—	$	1	$	1	$	—	$	—	$	—	$	—
Included in OCI	—		—		—		—		—		—		—		—		—		—

(a)Net realized/unrealized gains are reported as other gain on investments, net, in the Condensed Consolidated Statement of Comprehensive Income.

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

(c)Net realized/unrealized gains are reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.

(d)Net realized/unrealized gains are reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

	Derivative liabilities, net of derivative assets
($ in millions)	2021 (a)		2020 (b)
Liabilities
Fair value at April 1,	$	28	$	(8)
Net realized/unrealized losses (gains)
Included in earnings	7		(4)
Included in OCI	—		—
Purchases	—		—
Sales	—		—
Issuances	2		—
Settlements	—		—
Transfers into (out of) Level 3	—		—
Fair value at June 30,	$	37	$	(12)
Net unrealized losses (gains) still held at June 30,
Included in earnings	$	10	$	(4)
Included in OCI	—		—

(a)Net realized/unrealized losses (gains) are reported as gain on mortgage and automotive loans, net, and other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

(b)Net realized/unrealized losses (gains) are reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.

	Equity securities (a)				Available-for-sale securities				Mortgage loans held-for-sale (b) (c)				Finance receivables and loans, net (b) (d)				Interests retained in financial asset sales
($ in millions)	2021		2020		2021		2020		2021		2020		2021		2020		2021		2020
Assets
Fair value at January 1,	$	7	$	8	$	7	$	2	$	91	$	30	$	8	$	11	$	—	$	2
Net realized/unrealized gains (losses)
Included in earnings	4		(3)		—		—		49		13		1		—		—		—
Included in OCI	—		—		—		—		—		—		—		—		—		—
Purchases	—		—		—		3		1,851		978		8		9		—		—
Sales	(2)		—		—		—		(1,894)		(930)		—		—		—		—
Issuances	—		—		—		—		—		—		—		—		—		—
Settlements	—		—		—		—		—		—		(9)		(12)		—		(1)
Transfers into (out of) Level 3	—		—		—		—		—		—		—		—		—		—
Fair value at June 30,	$	9	$	5	$	7	$	5	$	97	$	91	$	8	$	8	$	—	$	1
Net unrealized gains (losses) still held at June 30,
Included in earnings	$	4	$	(3)	$	—	$	—	$	1	$	2	$	—	$	—	$	—	$	—
Included in OCI	—		—		—		—		—		—		—		—		—		—

(a)Net realized/unrealized gains (losses) are reported as other gain on investments, net, in the Condensed Consolidated Statement of Comprehensive Income.

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

(c)Net realized/unrealized gains are reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.

(d)Net realized/unrealized gains are reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

	Derivative liabilities, net of derivative assets
($ in millions)	2021 (a)		2020 (b)
Liabilities
Fair value at January 1,	$	12	$	(2)
Net realized/unrealized losses (gains)
Included in earnings	22		(10)
Included in OCI	—		—
Purchases	—		—
Sales	—		—
Issuances	3		—
Settlements	—		—
Transfers into (out of) Level 3	—		—
Fair value at June 30,	$	37	$	(12)
Net unrealized losses (gains) still held at June 30,
Included in earnings	$	25	$	(10)
Included in OCI	—		—

(a)Net realized/unrealized losses (gains) are reported as gain on mortgage and automotive loans, net, and other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

(b)Net realized/unrealized losses (gains) are reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.

Fair Value Measurements - Nonrecurring Basis

The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at June 30, 2021, and December 31, 2020, respectively. The amounts are generally as of the end of each period presented, which approximate the fair value measurements that occurred during each period.

	Nonrecurring fair value measurements								Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
June 30, 2021 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	312	$	312	$	—	n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		27		27		(2)		n/m	(a)
Other	—		—		59		59		(24)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		86		86		(26)		n/m	(a)
Other assets
Nonmarketable equity investments (c)	—		171		33		204		170		n/m	(a)
Repossessed and foreclosed assets (d)	—		—		3		3		—		n/m	(a)
Total assets	$	—	$	171	$	434	$	605	$	144	n/m

n/m = not meaningful

(a)We consider the applicable valuation allowance, loan loss allowance, or cumulative impairment 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 reserve, loan loss allowance, or cumulative adjustment.

(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.

(c)Primarily relates to an investment in one entity for which there was a subsequent funding round resulting in an observable price change in the value of our investment in the entity. Refer to Note 10 for further discussion.

(d)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 reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
December 31, 2020 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	315	$	315	$	—	n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		27		27		(5)		n/m	(a)
Other	—		—		54		54		(20)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		81		81		(25)		n/m	(a)
Other assets
Nonmarketable equity investments (c)	—		7		118		125		88		n/m	(a)
Repossessed and foreclosed assets (d)	—		—		9		9		(1)		n/m	(a)
Total assets	$	—	$	7	$	523	$	530	$	62	n/m

n/m = not meaningful

(a)We consider the applicable valuation allowance, loan loss allowance, or cumulative impairment 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 reserve, loan loss allowance, or cumulative adjustment.

(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.

(c)Primarily relates to an investment in one entity for which there was a subsequent funding round. This subsequent funding round resulted in an observable price change in the value of our investment in the entity. Refer to Note 13 to the Consolidated Financial Statements in our 2020 Annual Report on Form 10-K for further discussion.

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

Fair Value, by Balance Sheet Grouping

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, 2021, and December 31, 2020.

			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
June 30, 2021
Financial assets
Held-to-maturity securities	$	1,126	$	—	$	1,173	$	—	$	1,173
Loans held-for-sale, net	312		—		—		312		312
Finance receivables and loans, net	109,083		—		—		116,169		116,169
FHLB/FRB stock (a)	688		—		688		—		688
Financial liabilities
Deposit liabilities	$	47,253	$	—	$	—	$	47,675	$	47,675
Long-term debt	16,896		—		14,250		5,484		19,734
December 31, 2020
Financial assets
Held-to-maturity securities	$	1,253	$	—	$	1,331	$	—	$	1,331
Loans held-for-sale, net	315		—		—		315		315
Finance receivables and loans, net	115,243		—		—		122,156		122,156
FHLB/FRB stock (a)	725		—		725		—		725
Financial liabilities
Deposit liabilities	$	55,210	$	—	$	—	$	55,932	$	55,932
Short-term borrowings	2,136		—		—		2,136		2,136
Long-term debt	22,006		—		19,161		6,310		25,471

(a)Included in other assets on our Condensed Consolidated Balance Sheet.