Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

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
September 30, 2022 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a) (b)	$	606	$	—	$	1	$	607
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	1,999		—		—		1,999
U.S. States and political subdivisions	—		735		2		737
Foreign government	38		103		—		141
Agency mortgage-backed residential	—		16,675		—		16,675
Mortgage-backed residential	—		4,380		—		4,380
Agency mortgage-backed commercial	—		3,523		—		3,523
Asset-backed	—		467		—		467
Corporate debt	—		1,691		—		1,691
Total available-for-sale securities	2,037		27,574		2		29,613
Mortgage loans held-for-sale (c)	—		44		—		44
Finance receivables and loans, net
Consumer other (c)	—		—		6		6
Other assets
Derivative contracts in a receivable position
Interest rate	—		4		—		4
Foreign currency	—		7		—		7
Total derivative contracts in a receivable position	—		11		—		11
Total assets	$	2,643	$	27,629	$	9	$	30,281
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	—	$	2	$	2
Credit contracts	—		—		46		46
Total derivative contracts in a payable position	—		—		48		48
Total liabilities	$	—	$	—	$	48	$	48

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

(b)Excludes $40 million of equity securities that are measured at fair value using the net asset value practical expedient and therefore are not classified in the fair value hierarchy.

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

	Recurring fair value measurements
December 31, 2021 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a)	$	1,093	$	—	$	9	$	1,102
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,155		—		—		2,155
U.S. States and political subdivisions	—		855		9		864
Foreign government	19		138		—		157
Agency mortgage-backed residential	—		19,039		—		19,039
Mortgage-backed residential	—		4,425		—		4,425
Agency mortgage-backed commercial	—		4,526		—		4,526
Asset-backed	—		534		—		534
Corporate debt	—		1,887		—		1,887
Total available-for-sale securities	2,174		31,404		9		33,587
Mortgage loans held-for-sale (b)	—		80		—		80
Finance receivables and loans, net
Consumer other (b)	—		—		7		7
Other assets
Derivative contracts in a receivable position
Interest rate	—		1		5		6
Equity contracts	1		—		—		1
Total derivative contracts in a receivable position	1		1		5		7
Total assets	$	3,268	$	31,485	$	30	$	34,783
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	—	$	2	$	2
Foreign currency	—		3		—		3
Credit contracts	—		—		56		56
Equity contracts	1		—		—		1
Total derivative contracts in a payable position	1		3		58		62
Total liabilities	$	1	$	3	$	58	$	62

(a)Our direct investment in any one industry did not exceed 8%.

(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)
($ in millions)	2022		2021		2022		2021		2022		2021		2022		2021
Assets
Fair value at July 1,	$	2	$	9	$	12	$	7	$	—	$	97	$	7	$	8
Net realized/unrealized (losses) gains
Included in earnings	(1)		1		—		—		—		15		—		1
Included in OCI	—		—		—		—		—		—		—		—
Purchases	—		—		1		—		—		789		4		4
Sales	—		—		—		—		—		(799)		—		—
Issuances	—		—		—		—		—		—		—		—
Settlements	—		—		(11)		—		—		—		(5)		(5)
Transfers into Level 3	—		1		—		—		—		—		—		—
Transfers out of Level 3 (d)	—		—		—		—		—		(102)		—		—
Fair value at September 30,	$	1	$	11	$	2	$	7	$	—	$	—	$	6	$	8
Net unrealized gains still held at September 30,
Included in earnings	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	—
Included in OCI	—		—		—		—		—		—		—		—

(a)Net realized/unrealized (losses) 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)During the three months ended September 30, 2021, mortgage loans held for sale were transferred out of Level 3 and into Level 2 of the fair value hierarchy. This transfer reflects that the underlying assets are valued based on observable prices in an active market for similar assets, and is deemed to have occurred at the end of the reporting period.

	Derivative liabilities, net of derivative assets (a)
($ in millions)	2022		2021
Liabilities
Fair value at July 1,	$	50	$	37
Net realized/unrealized (gains) losses
Included in earnings	(6)		12
Included in OCI	—		—
Purchases	—		—
Sales	—		—
Issuances	—		1
Settlements	(2)		—
Transfers into Level 3	—		—
Transfers out of Level 3 (b) (c)	6		2
Fair value at September 30,	$	48	$	52
Net unrealized (gains) losses still held at September 30,
Included in earnings	$	(1)	$	10
Included in OCI	—		—

(a)Net realized/unrealized (gains) losses 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)Represents the settlement value of interest rate derivative assets that are transferred to loans held-for-sale within Level 2 of the fair value hierarchy during the three months ended September 30, 2022.

(c)During the three months ended September 30, 2021, certain derivative assets were transferred out of Level 3 and into Level 2 of the fair value hierarchy. This transfer reflects that the underlying assets are valued based on observable prices in an active market for similar assets, and is deemed to have occurred at the end of the reporting period.

	Equity securities (a)				Available-for-sale securities				Mortgage loans held-for-sale (b) (c)				Finance receivables and loans, net (b) (d)
($ in millions)	2022		2021		2022		2021		2022		2021		2022		2021
Assets
Fair value at January 1,	$	9	$	7	$	9	$	7	$	—	$	91	$	7	$	8
Net realized/unrealized gains (losses)
Included in earnings	1		5		—		—		—		64		(1)		2
Included in OCI	—		—		—		—		—		—		—		—
Purchases	—		—		4		—		—		2,640		12		12
Sales	(9)		(2)		—		—		—		(2,693)		—		—
Issuances	—		—		—		—		—		—		—		—
Settlements	—		—		(11)		—		—		—		(12)		(14)
Transfers into Level 3	—		1		—		—		—		—		—		—
Transfers out of Level 3 (e)	—		—		—		—		—		(102)		—		—
Fair value at September 30,	$	1	$	11	$	2	$	7	$	—	$	—	$	6	$	8
Net unrealized gains (losses) still held at September 30,
Included in earnings	$	—	$	5	$	—	$	—	$	—	$	—	$	(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 (losses) gains are reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.

(e)During the nine months ended September 30, 2021, mortgage loans held for sale were transferred out of Level 3 and into Level 2 of the fair value hierarchy. This transfer reflects that the underlying assets are valued based on observable prices in an active market for similar assets, and is deemed to have occurred at the end of the reporting period.

	Derivative liabilities, net of derivative assets (a)
($ in millions)	2022		2021
Liabilities
Fair value at January 1,	$	53	$	12
Net realized/unrealized losses
Included in earnings	1		34
Included in OCI	—		—
Purchases	—		—
Sales	—		—
Issuances	—		4
Settlements	(12)		—
Transfers into Level 3	—		—
Transfers out of Level 3 (b) (c)	6		2
Fair value at September 30,	$	48	$	52
Net unrealized (gains) losses still held at September 30,
Included in earnings	$	(5)	$	25
Included in OCI	—		—

(a)Net realized/unrealized (gains) losses 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)Represents the settlement value of interest rate derivative assets that are transferred to loans held-for-sale within Level 2 of the fair value hierarchy during the nine months ended September 30, 2022.

(c)During the nine months ended September 30, 2021, certain derivative assets were transferred out of Level 3 and into Level 2 of the fair value hierarchy. This transfer reflects that the underlying assets are valued based on observable prices in an active market for similar assets, and is deemed to have occurred at the end of the reporting period.

Fair Value Measurements - Nonrecurring Basis

The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at September 30, 2022, and December 31, 2021, 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
September 30, 2022 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	765	$	765	$	—	n/m	(a)
Commercial finance receivables and loans, net (b)
Other	—		—		63		63		(67)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		63		63		(67)		n/m	(a)
Other assets
Nonmarketable equity investments	—		1		32		33		—		n/m	(a)
Repossessed and foreclosed assets (c)	—		—		5		5		—		n/m	(a)
Total assets	$	—	$	1	$	865	$	866	$	(67)	n/m

n/m = not meaningful

(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative adjustments 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)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, 2021 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	468	$	468	$	—	n/m	(a)
Commercial finance receivables and loans, net (b)
Automotive	—		—		4		4		—		n/m	(a)
Other	—		—		112		112		(65)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		116		116		(65)		n/m	(a)
Other assets
Nonmarketable equity investments	—		—		7		7		(5)		n/m	(a)
Repossessed and foreclosed assets (c)	—		—		4		4		—		n/m	(a)
Total assets	$	—	$	—	$	595	$	595	$	(70)	n/m

n/m = not meaningful

(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative adjustments 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)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 September 30, 2022, and December 31, 2021.

			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
September 30, 2022
Financial assets
Held-to-maturity securities	$	1,084	$	—	$	903	$	—	$	903
Loans held-for-sale, net	764		—		—		764		764
Finance receivables and loans, net	128,839		—		—		130,628		130,628
FHLB/FRB stock (a)	1,010		—		1,010		—		1,010
Financial liabilities
Deposit liabilities	$	38,507	$	—	$	—	$	37,950	$	37,950
Short-term borrowings	7,200		—		—		7,208		7,208
Long-term debt	16,628		—		10,933		6,151		17,084
December 31, 2021
Financial assets
Held-to-maturity securities	$	1,170	$	—	$	1,204	$	—	$	1,204
Loans held-for-sale, net	469		—		—		469		469
Finance receivables and loans, net	118,994		—		—		126,044		126,044
FHLB/FRB stock (a)	738		—		738		—		738
Financial liabilities
Deposit liabilities	$	40,953	$	—	$	—	$	41,164	$	41,164
Long-term debt	17,029		—		12,637		6,892		19,529

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