XML 38 R27.htm IDEA: XBRL DOCUMENT

Variable Interest Entities and Securitizations (Tables)

9 Months Ended

Sep. 30, 2021

Variable Interest Entities and Securitization [Abstract]

Carrying Amount of Assets and Liabilities of Variable Interest Entities

The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of September 30, 2021 and December 31, 2020. We separately present information for consolidated and unconsolidated VIEs.

Table 5.1: Carrying Amount of Consolidated and Unconsolidated VIEs


	September 30, 2021
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	20,604	$	11,489	$	0	$	0	$	0
Auto loan securitizations	1,509		1,269		0		0		0
Total securitization-related VIEs	22,113		12,758		0		0		0
Other VIEs:(3)
Affordable housing entities	264		28		4,786		1,496		4,786
Entities that provide capital to low-income and rural communities	2,073		26		0		0		0
Other	0		0		400		0		400
Total other VIEs	2,337		54		5,186		1,496		5,186
Total VIEs	$	24,450	$	12,812	$	5,186	$	1,496	$	5,186


	December 31, 2020
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	22,066	$	10,338	$	0	$	0	$	0
Auto loan securitizations	2,360		2,055		0		0		0
Total securitization-related VIEs	24,426		12,393		0		0		0
Other VIEs:(3)
Affordable housing entities	242		17		4,602		1,240		4,602
Entities that provide capital to low-income and rural communities	1,951		26		0		0		0
Other	0		0		436		0		436
Total other VIEs	2,193		43		5,038		1,240		5,038
Total VIEs	$	26,619	$	12,436	$	5,038	$	1,240	$	5,038

__________

(1)Excludes insignificant VIEs from previously exited businesses.

(2)Represents the carrying amount of assets and liabilities owned by the VIE, which includes the seller’s interest and repurchased notes held by other related parties.

(3)In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.2 billion of assets and $602 million of liabilities as of September 30, 2021, and $2.3 billion of assets and $596 million of liabilities as of December 31, 2020.

External Debt and Receivable Balances of Securitization Programs

The table below presents our continuing involvement in certain securitization-related VIEs as of September 30, 2021 and December 31, 2020.

Table 5.2: Continuing Involvement in Securitization-Related VIEs


(Dollars in millions)	Credit Card		Auto
September 30, 2021:
Securities held by third-party investors	$	11,367	$	1,268
Receivables in the trusts	21,496		1,419
Cash balance of spread or reserve accounts	0		10
Retained interests	Yes		Yes
Servicing retained	Yes		Yes
December 31, 2020:
Securities held by third-party investors	$	10,361	$	2,053
Receivables in the trust	23,683		2,243
Cash balance of spread or reserve accounts	0		10
Retained interests	Yes		Yes
Servicing retained	Yes		Yes

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details