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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
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 U.S. GAAP topics 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 U.S. GAAP topics 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. 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 2022 Annual Report on Form 10-K.
Three months ended June 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2023
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $171 $— $— $— $171 
Remarketing fee income31 — — — — 31 
Brokerage commissions and other revenue— — — — 23 23 
Banking fees and interchange income (d)— — — — 11 11 
Brokered/agent commissions— 4 — — — 4 
Other5 — — — — 5 
Total revenue from contracts with customers
36 175 — — 34 245 
All other revenue
47 162 5 28 19 261 
Total other revenue (e)$83 $337 $5 $28 $53 $506 
2022
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $163 $— $— $— $163 
Remarketing fee income29 — — — — 29 
Brokerage commissions and other revenue— — — — 13 13 
Banking fees and interchange income (d)— — — — 10 10 
Brokered/agent commissions— 4 — — — 4 
Other6 — — — 1 7 
Total revenue from contracts with customers
35 167 — — 24 226 
All other revenue37 (9)4 19 35 86 
Total other revenue (e)$72 $158 $4 $19 $59 $312 
(a)We had opening balances of $3.0 billion in unearned revenue associated with outstanding contracts at both April 1, 2023, and 2022, and $243 million and $234 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 June 30, 2023, and 2022, respectively.
(b)At June 30, 2023, we had unearned revenue of $3.0 billion associated with outstanding contracts, and with respect to this balance we expect to recognize revenue of $464 million during the remainder of 2023, $812 million in 2024, $644 million in 2025, $467 million in 2026, and $582 million thereafter. At June 30, 2022, we had unearned revenue of $3.0 billion associated with outstanding contracts.
(c)We had deferred insurance assets of $1.8 billion at both April 1, 2023, and June 30, 2023, and recognized $144 million of expense during the three months ended June 30, 2023. We had deferred insurance assets of $1.8 billion at both April 1, 2022, and June 30, 2022, and recognized $140 million of expense during the three months ended June 30, 2022.
(d)Interchange income is reported net of customer rewards. Customer rewards expense was $5 million and $3 million for the three months ended June 30, 2023, and 2022, respectively.
(e)Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments.
Six months ended June 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2023
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $340 $— $— $— $340 
Remarketing fee income64 — — — — 64 
Brokerage commissions and other revenue— — — — 46 46 
Banking fees and interchange income (c)— — — — 21 21 
Brokered/agent commissions— 7 — — — 7 
Other10 — — — — 10 
Total revenue from contracts with customers
74 347 — — 67 488 
All other revenue
86 371 9 57 (7)516 
Total other revenue (d)$160 $718 $9 $57 $60 $1,004 
2022
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $325 $— $— $— $325 
Remarketing fee income56 — — — — 56 
Brokerage commissions and other revenue— — — — 24 24 
Banking fees and interchange income (c)— — — — 21 21 
Brokered/agent commissions— 8 — — — 8 
Other11 — — — 2 13 
Total revenue from contracts with customers
67 333 — — 47 447 
All other revenue73 95 18 43 78 307 
Total other revenue (d)$140 $428 $18 $43 $125 $754 
(a)We had opening balances of $3.0 billion and $3.1 billion in unearned revenue associated with outstanding contracts at January 1, 2023, and 2022, respectively, and $484 million and $465 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the six months ended June 30, 2023, and 2022, respectively.
(b)We had deferred insurance assets of $1.8 billion at both January 1, 2023, and June 30, 2023, and recognized $288 million of expense during the six months ended June 30, 2023. We had deferred insurance assets of $1.9 billion and $1.8 billion at January 1, 2022, and June 30, 2022, respectively, and recognized $277 million of expense during the six months ended June 30, 2022.
(c)Interchange income is reported net of customer rewards. Customer rewards expense was $9 million and $6 million for the six months ended June 30, 2023, and 2022, respectively.
(d)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 $70 million and $117 million for the three months and six months ended June 30, 2023, respectively, compared to $50 million and $100 million for the same periods in 2022, 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.