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Allowance for Finance Receivable Losses
12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Allowance for Finance Receivable Losses
Allowance for Finance Receivable Losses    

Changes in the allowance for finance receivable losses by finance receivable type were as follows:
(dollars in millions)
 
Personal
Loans
 
SpringCastle
Portfolio
 
Real Estate
Loans
 
Retail
Sales Finance
 
Consolidated
Total
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
541

 
$
4

 
$
46

 
$
1

 
$
592

Provision for finance receivable losses
 
909

 
14

 
9

 

 
932

Charge-offs
 
(846
)
 
(17
)
 
(11
)
 
(1
)
 
(875
)
Recoveries
 
65

 
3

 
5

 
1

 
74

Other (a)
 

 
(4
)
 
(30
)
 

 
(34
)
Balance at end of period
 
$
669

 
$

 
$
19

 
$
1

 
$
689

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
132

 
$
3

 
$
46

 
$
1

 
$
182

Provision for finance receivable losses
 
634

 
67

 
13

 
2

 
716

Charge-offs
 
(261
)
 
(78
)
 
(18
)
 
(3
)
 
(360
)
Recoveries
 
37

 
12

 
5

 
1

 
55

Other (b)
 
(1
)
 

 

 

 
(1
)
Balance at end of period
 
$
541

 
$
4

 
$
46

 
$
1

 
$
592

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
95

 
$
1

 
$
330

 
$
2

 
$
428

Provision for finance receivable losses
 
205

 
105

 
110

 
3

 
423

Charge-offs (c)
 
(193
)
 
(117
)
 
(61
)
 
(5
)
 
(376
)
Recoveries (d)
 
25

 
14

 
6

 
1

 
46

Other (e)
 

 

 
(339
)
 

 
(339
)
Balance at end of period
 
$
132

 
$
3

 
$
46

 
$
1

 
$
182

                                      
(a)
Other consists of:

the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale; and

the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance receivable held for sale during 2016.

(b)
Other consists of the elimination of allowance for finance receivable losses due to the transfer of personal loans held for investment to finance receivable held for sale during 2015.

(c)
Charge-offs during 2014 included a $4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014.

(d)
Recoveries during 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014.

(e)
Other consists of the elimination of allowance for finance receivable losses due to the transfer of real estate loans held for investment to finance receivable held for sale during 2014.

The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:
(dollars in millions)
 
Personal
Loans
 
SpringCastle
Portfolio
 
Real Estate
Loans
 
Retail
Sales Finance
 
Total
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Allowance for finance receivable losses:
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
 
$
571

 
$

 
$

 
$
1

 
$
572

Purchased credit impaired finance receivables
 
29

 

 
8

 

 
37

TDR finance receivables
 
69

 

 
11

 

 
80

Total
 
$
669

 
$

 
$
19

 
$
1

 
$
689

 
 
 
 
 
 
 
 
 
 
 
Finance receivables:
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
 
$
13,072

 
$

 
$
76

 
$
11

 
$
13,159

Purchased credit impaired finance receivables
 
353

 

 
24

 

 
377

TDR finance receivables
 
152

 

 
44

 

 
196

Total
 
$
13,577

 
$

 
$
144

 
$
11

 
$
13,732

 
 
 
 
 
 
 
 
 
 
 
Allowance for finance receivable losses as a percentage of finance receivables
 
4.93
%
 
%
 
13.31
%
 
4.42
%
 
5.01
%
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for finance receivable losses:
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
 
$
524

 
$

 
$

 
$
1

 
$
525

Purchased credit impaired finance receivables
 

 

 
12

 

 
12

TDR finance receivables
 
17

 
4

 
34

 

 
55

Total
 
$
541

 
$
4

 
$
46

 
$
1

 
$
592

 
 
 
 
 
 
 
 
 
 
 
Finance receivables:
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
 
$
12,599

 
$
1,340

 
$
387

 
$
23

 
$
14,349

Purchased credit impaired finance receivables
 
652

 
350

 
42

 

 
1,044

TDR finance receivables
 
44

 
13

 
109

 

 
166

Total
 
$
13,295

 
$
1,703

 
$
538

 
$
23

 
$
15,559

 
 
 
 
 
 
 
 
 
 
 
Allowance for finance receivable losses as a percentage of finance receivables
 
4.07
%
 
0.25
%
 
8.72
%
 
3.46
%
 
3.81
%


See Note 3 for additional information on the determination of the allowance for finance receivable losses.