| Parent Company Financial Information |
PARENT COMPANY FINANCIAL INFORMATION The following tables present parent company financial statements for Synchrony Financial. At December 31, 2019, restricted net assets of our subsidiaries were $12.4 billion. Condensed Statements of Earnings | | | | | | | | | | | | | For the years ended December 31 ($ in millions) | 2019 |
| 2018 |
| 2017 | Interest income: | | | | | | Interest income from subsidiaries | $ | 207 |
| | $ | 220 |
| | $ | 125 |
| Interest on cash and debt securities | 12 |
| | 20 |
| | 23 |
| Total interest income | 219 |
| | 240 |
| | 148 |
| Interest expense: | | | | | | Interest on senior unsecured notes | 300 |
| | 287 |
| | 268 |
| Total interest expense | 300 |
| | 287 |
| | 268 |
| Net interest income (expense) | (81 | ) | | (47 | ) | | (120 | ) | Dividends from bank subsidiaries | 3,900 |
| | 950 |
| | 1,040 |
| Dividends from nonbank subsidiaries | 309 |
| | 318 |
| | 1,133 |
| Other income | 144 |
| | 115 |
| | 91 |
| Other expense | 162 |
| | 120 |
| | 115 |
| Earnings before benefit from income taxes | 4,110 |
| | 1,216 |
| | 2,029 |
| Benefit from income taxes | (19 | ) | | (8 | ) | | (89 | ) | Equity in undistributed net earnings of subsidiaries | (382 | ) | | 1,566 |
| | (183 | ) | Net earnings | $ | 3,747 |
| | $ | 2,790 |
| | $ | 1,935 |
| | | | | | | Comprehensive income | $ | 3,764 |
| | $ | 2,792 |
| | $ | 1,924 |
|
Condensed Statements of Financial Position | | | | | | | | | At December 31 ($ in millions) | 2019 | | 2018 | Assets | | | | Cash and equivalents | $ | 4,491 |
| | $ | 3,356 |
| Debt securities | 502 |
| | 869 |
| Investments in and amounts due from subsidiaries(a) | 18,196 |
| | 18,566 |
| Goodwill | 17 |
| | 17 |
| Other assets | 89 |
| | 89 |
| Total assets | $ | 23,295 |
| | $ | 22,897 |
| | | | | Liabilities and Equity | | | | Amounts due to subsidiaries | $ | 220 |
| | $ | 184 |
| Senior unsecured notes | 7,461 |
| | 7,568 |
| Accrued expenses and other liabilities | 526 |
| | 467 |
| Total liabilities | 8,207 |
| | 8,219 |
| Equity: | | | | Total equity | 15,088 |
| | 14,678 |
| Total liabilities and equity | $ | 23,295 |
| | $ | 22,897 |
|
_____________ | | (a) | Includes investments in and amounts due from bank subsidiaries of $12.9 billion and $13.1 billion at December 31, 2019 and 2018, respectively. |
Condensed Statements of Cash Flows | | | | | | | | | | | | | For the years ended December 31 ($ in millions) | 2019 | | 2018 | | 2017 | Cash flows - operating activities | | | | | | Net earnings | $ | 3,747 |
| | $ | 2,790 |
| | $ | 1,935 |
| Adjustments to reconcile net earnings to cash provided from operating activities | | | | | | Deferred income taxes | (1 | ) | | 8 |
| | (43 | ) | (Increase) decrease in other assets | 14 |
| | 106 |
| | 18 |
| Increase (decrease) in accrued expenses and other liabilities | (15 | ) | | 6 |
| | (38 | ) | Equity in undistributed net earnings of subsidiaries | 382 |
| | (1,566 | ) | | 183 |
| All other operating activities | 38 |
| | 66 |
| | 53 |
| Cash provided from (used for) operating activities | 4,165 |
| | 1,410 |
| | 2,108 |
| | | | | | | Cash flows - investing activities | | | | | | Net (increase) decrease in investments in and amounts due from subsidiaries | 210 |
| | 1,687 |
| | (947 | ) | Maturity and sales of debt securities
| 972 |
| | 1,493 |
| | 1,914 |
| Purchases of debt securities | (597 | ) | | (681 | ) | | (1,402 | ) | All other investing activities | (100 | ) | | (94 | ) | | (45 | ) | Cash provided from (used for) investing activities | 485 |
| | 2,405 |
| | (480 | ) | |
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| Cash flows - financing activities | | | | | | Senior unsecured notes | | | | | | Proceeds from issuance of senior unsecured notes | 1,985 |
| | — |
| | 991 |
| Maturities and repayment of senior unsecured notes | (2,100 | ) | | — |
| | (1,200 | ) | Proceeds from issuance of preferred stock | 734 |
| | — |
| | — |
| Purchases of treasury stock | (3,618 | ) | | (1,868 | ) | | (1,497 | ) | Dividends paid on common stock | (581 | ) | | (534 | ) | | (446 | ) | Increase (decrease) in amounts due to subsidiaries | 28 |
| | (4 | ) | | 27 |
| All other financing activities | 37 |
| | (28 | ) | | (2 | ) | Cash provided from (used for) financing activities | (3,515 | ) | | (2,434 | ) | | (2,127 | ) | | | | | | | Increase (decrease) in cash and equivalents | 1,135 |
| | 1,381 |
| | (499 | ) | Cash and equivalents at beginning of year | 3,356 |
| | 1,975 |
| | 2,474 |
| Cash and equivalents at end of year | $ | 4,491 |
| | $ | 3,356 |
| | $ | 1,975 |
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