8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported): August 26, 2016 (August 26, 2016)

Springleaf Finance Corporation

(Exact name of registrant as specified in its charter)

Indiana	001-06155	35-0416090
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
601 N.W. Second Street, Evansville, Indiana 47708
(Address of principal executive offices)(Zip Code)
(812) 424-8031
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, the “Company,” “we,” or “our”) is filing this Current Report on Form 8-K as a result of a change in our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool, as described in more detail below. The selected financial data (Item 6), Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) (Item 7), financial statements (Item 8) and certain exhibits (Item 15) in SFC’s Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”) have been revised to reflect the retrospective application of this change in accounting policy, and such revised financial data, financial statements, MD&A, and exhibits are included in exhibits to this Form 8-K and incorporated by reference herein. All other information in SFC’s 2015 Form 10-K has not been updated for events or developments that occurred subsequent to the filing of SFC’s 2015 Form 10-K with the U.S. Securities and Exchange Commission (the “SEC”) on February 29, 2016.

Change in Accounting Policy

As disclosed in SFC’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016, effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a PCI pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers. For more information regarding our policy for the derecognition of PCI loans, see Note 3 of the Notes to Consolidated Financial Statements included in Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.

The following exhibits filed with this Current Report on Form 8-K supersede the corresponding exhibits and sections of SFC’s 2015 Form 10-K:

Exhibit Number	Description
12.1	Computation of Ratio of Earnings to Fixed Charges
23.1	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm
99.1	Revised Selected Financial Data, MD&A, and Financial Statements from Springleaf Finance Corporation’s Annual Report on Form 10-K for the Year Ended December 31, 2015
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements

Forward-Looking Statements

This report, including the exhibits hereto, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent only management’s current beliefs regarding future events. By their nature, forward-looking statements involve inherent risks, uncertainties and other important factors that may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking

statements. We caution you not to place undue reliance on these forward-looking statements that speak only as of the date they were made. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events. Forward-looking statements include, without limitation, statements concerning future plans, objectives, goals, projections, strategies, events or performance, and underlying assumptions and other statements related thereto. Statements preceded by, followed by or that otherwise include the words “anticipates,” “appears,” “are likely,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects” and similar expressions or future or conditional verbs such as “would,” “should,” “could,” “may,” or “will,” are intended to identify forward-looking statements.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this report and other risks and uncertainties described in the “Risk Factors” and “Management’s Discussion and Analysis” sections of our most recent Form 10-K and Form 10-Qs filed with the SEC and in our other filings with the SEC from time to time, any of which could cause actual results, performance, or achievements to differ materially from those expressed in or implied by our forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Springleaf Finance Corporation
			(Registrant)
Date:	August 26, 2016	By:	/s/ Micah R. Conrad
			Micah R. Conrad
			Senior Vice President and Chief Financial Officer

Exhibit Index

Exhibit Number	Description
12.1	Computation of Ratio of Earnings to Fixed Charges
23.1	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm
99.1	Revised Selected Financial Data, MD&A, and Financial Statements from Springleaf Finance Corporation’s Annual Report on Form 10-K for the Year Ended December 31, 2015
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements

EX-12.1

Exhibit 12.1    

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(dollars in millions)
Years Ended December 31,	2015		2014		2013			2012			2011
Earnings:
Income (loss) before provision for (benefit from) income taxes	$	159	$	678	$	(125	)	$	(301	)	$	(309	)
Interest expense	667		683		843			1,068			1,276
Implicit interest in rents	9		10		9			12			12
Total earnings	$	835	$	1,371	$	727		$	779		$	979
Fixed charges:
Interest expense	$	667	$	683	$	843		$	1,068		$	1,276
Implicit interest in rents	9		10		9			12			12
Total fixed charges	$	676	$	693	$	852		$	1,080		$	1,288
Ratio of earnings to fixed charges	1.24		1.98		*			*			*

* Earnings did not cover total fixed charges by $125 million in 2013, $301 million in 2012, and $309 million in 2011.

EX-23.1

Exhibit 23.1    

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in Springleaf Finance Corporation’s Registration Statement on Form S-3 (No. 333-200408-01) of our report dated February 29, 2016, except with respect to the change in accounting principle for the derecognition of loans from purchase credit impaired loan pools, as to which the date is August 26, 2016, relating to the consolidated financial statements, which appears in Exhibit 99.1 to Springleaf Finance Corporation’s Current Report on Form 8-K dated August 26, 2016.

/s/ PricewaterhouseCoopers LLP

Chicago, IL

August 26, 2016

EX-99.1

Exhibit 99.1    

Revised Selected Financial Data, MD&A, and Financial Statements from Springleaf Finance Corporation’s Annual Report on Form 10-K for the Year Ended December 31, 2015

The revised sections contained in this Exhibit 99.1 supersede the corresponding sections of Springleaf Finance Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015.

TABLE OF CONTENTS

PART II
Item 6.	Selected Financial Data	2
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 8.	Financial Statements and Supplementary Data
	Reports of Independent Registered Public Accounting Firm	32
	Consolidated Balance Sheets	33
	Consolidated Statements of Operations	34
	Consolidated Statements of Comprehensive Income (Loss)	35
	Consolidated Statements of Shareholder’s Equity	36
	Consolidated Statements of Cash Flows	37
	Notes to Consolidated Financial Statements	39

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PART II

Item 6. Selected Financial Data.    

The following table presents our selected historical consolidated financial data and other operating data. The consolidated statement of operations data for the years ended December 31, 2015, 2014, and 2013 and the consolidated balance sheet data as of December 31, 2015 and 2014 have been derived from our audited consolidated financial statements included elsewhere herein. The statement of operations data for the years ended December 31, 2012 and 2011 and the consolidated balance sheet data as of December 31, 2013, 2012 and 2011 have been derived from our consolidated financial statements not included elsewhere herein.

The following selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 and our audited consolidated financial statements and related notes in Item 8.

(dollars in millions)	At or for the Years Ended December 31,
	2015			2014			2013			2012			2011
Consolidated Statements of Operations Data:
Interest income	$	1,657		$	1,625		$	1,637		$	1,694		$	1,834
Interest expense	667			683			843			1,068			1,276
Provision for finance receivable losses	339			352			371			334			263
Other revenues	243			745			161			114			154
Other expenses	735			657			709			707			758
Income (loss) before provision for (benefit from) income taxes	159			678			(125		)	(301		)	(309		)
Net income (loss)	141			445			(76		)	(215		)	(210		)
Net income attributable to non-controlling interests	127			48			—			—			—
Net income (loss) attributable to Springleaf Finance Corporation	14			397			(76		)	(215		)	(210		)
Consolidated Balance Sheet Data:
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses (a)	$	6,090		$	6,181		$	10,730		$	11,453		$	12,881
Total assets (a)	12,188			10,998			12,612			14,554			15,323
Long-term debt (a)	9,582			8,356			10,602			12,449			12,883
Total liabilities (a)	10,156			9,021			11,227			13,261			13,888
Springleaf Finance Corporation shareholder’s equity	2,111			2,106			1,385			1,293			1,435
Non-controlling interests	(79		)	(129		)	—			—			—
Total shareholder’s equity	2,032			1,977			1,385			1,293			1,435
Other Operating Data:
Ratio of earnings to fixed charges	1.24			1.98			(b)			(b)			(b)

(a) Prior year consolidated balance sheet data reflects (i) reclassification of debt issuance costs from other assets to long-term debt as a result of our early adoption of accounting standards update 2015-03, Interest - Imputation of Interest, which totaled $29 million, $39 million, $28 million, $21 million at December 31, 2014, 2013, 2012, and 2011, respectively, and (ii) reclassification of unearned insurance premium and claim reserves related to finance receivables from insurance claims and policyholder liabilities to a contra-asset to net finance receivables in connection with our policy integration with OneMain, which totaled $217 million, $172 million, $138 million, $127 million at December 31, 2014, 2013, 2012, and 2011, respectively.

(b) Earnings did not cover total fixed charges by $125 million in 2013, $301 million in 2012, and $309 million in 2011.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.    

The following discussion and analysis of our financial condition and results of operations should be read together with the audited consolidated financial statements and related notes in Item 8. This discussion and analysis contains forward-looking statements that involve risk, uncertainties, and assumptions. See “Forward-Looking Statements” beginning on page 3 of this report. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of many factors, including those discussed in “Risk Factors” in Item 1A in Part I of this report.

An index to our management’s discussion and analysis follows:

Topic	Page
Our Business	3
Recent Developments and Outlook	5
Results of Operations	6
Segment Results	12
Credit Quality	21
Liquidity and Capital Resources	23
Off-Balance Sheet Arrangements	28
Critical Accounting Policies and Estimates	28
Recent Accounting Pronouncements	29
Seasonality	29
Glossary of Terms	30

Our Business    

Springleaf is a branch-based consumer finance company providing personal loans primarily to non-prime customers through its network of over 800 branch offices in 27 states as of December 31, 2015 and on a centralized basis as part of its centralized operations and our newly launched iLoan platform. We also write credit and non-credit insurance policies covering our customers and the property pledged as collateral for our personal loans.

OUR PRODUCTS

Our core product offerings include:

• Personal Loans — We offer personal loans through our branch network and over the internet through our centralized operations to customers who generally need timely access to cash. Our personal loans are typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At December 31, 2015, we had over 1.0 million personal loans, representing $4.9 billion of net finance receivables (including personal loans held for sale of $617 million). At December 31, 2015, $2.4 billion, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $1.9 billion of personal loans, or 50%, secured by collateral consisting of titled personal property and $1.9 billion, or 50%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2014.

• Insurance Products — We offer our customers credit insurance (life insurance, disability insurance, and involuntary unemployment insurance) and non-credit insurance through both our branch network and our centralized operations. Credit insurance and non-credit insurance products are provided by our subsidiaries, Merit and Yosemite. We also offer auto warranty membership plans of an unaffiliated company as an ancillary product.

• SpringCastle Portfolio —We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owns a 47% equity interest. These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. At December 31, 2015, the SpringCastle Portfolio included over 232,000 of acquired loans,

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representing $1.7 billion in net finance receivables, compared to 277,000 of acquired loans totaling $2.1 billion at December 31, 2014.

Our non-core and non-originating legacy products include:

• Real Estate Loans — We ceased real estate lending in January of 2012, and during 2014, we sold $6.4 billion real estate loans held for sale. The remaining real estate loans may be closed-end accounts or open-end home equity lines of credit, generally have a fixed rate and maximum original terms of 360 months, and are secured by first or second mortgages on residential real estate. We continue to service the liquidating real estate loans and support any advances on open-end accounts. At December 31, 2015, we had $538 million of real estate loans held for investment, of which $207 million, or 38%, were secured by first mortgages and $331 million, or 62%, were secured by second mortgages, compared to $230 million of real estate loans, or 36%, secured by first mortgages and $409 million, or 64%, secured by second mortgages at December 31, 2014. Real estate loans held for sale totaled $176 million and $202 million at December 31, 2015 and 2014, respectively, all of which were secured by first mortgages.

• Retail Sales Finance — We ceased purchasing retail sales contracts and revolving retail accounts in January of 2013. We continue to service the liquidating retail sales contracts and will provide revolving retail sales financing services on our revolving retail accounts. We refer to retail sales contracts and revolving retail accounts collectively as “retail sales finance.”

OUR SEGMENTS

At December 31, 2015, we had three operating segments:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

See Note 23 of the Notes to Consolidated Financial Statements in Item 8 for more information about our segments.

2015 Segment Highlights

• Net finance receivables — Consumer and Insurance reached $4.9 billion at December 31, 2015, including $617 million personal loans held for sale, compared to $3.8 billion at December 31, 2014.

• Origination volume — Consumer and Insurance totaled $4.4 billion in 2015 compared to $3.6 billion in 2014 (including $1.0 billion of direct auto loan originations during 2015 compared to $250 million during 2014).

• Pretax core earnings (a non-GAAP measure) was $377 million in 2015 compared to $305 million in 2014.

Our segments are reported on a Segment Accounting Basis (referred to as “historical accounting basis” in previous SEC filings), as defined in Note 23 of the Notes to Consolidated Financial Statements in Item 8, and includes allocations of certain costs, such as interest expense and operating expenses, to the segments based on how management evaluates the business. This is a basis of accounting other than U.S. GAAP. See “Non-GAAP Financial Measures” under “Results of Operations” for (i) a reconciliation of our pretax earnings (loss) on a GAAP basis to a Segment Accounting Basis and (ii) a reconciliation of our pretax earnings (loss) on a Segment Accounting Basis to pretax core earnings.

HOW WE ASSESS OUR BUSINESS PERFORMANCE

Our pretax operating income is the primary metric by which we assess our business performance. Accordingly, we closely monitor the primary drivers of pretax operating income, which consist of the following:

Net Interest Income

We track the spread between the interest income earned on our finance receivables and the interest expense incurred on our debt, and continually monitor the components of our yield and our cost of funds.

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Net Credit Losses

The credit quality of our loans is driven by our long-standing underwriting philosophy, which takes into account the prospective customer’s household budget, and his or her willingness and capacity to repay the proposed loan. The profitability of our loan portfolio is directly connected to net credit losses; therefore, we closely analyze credit performance. We also monitor recovery rates because of their contribution to the reduction in the severity of our charge offs. Additionally, because delinquencies are an early indicator of future net credit losses, we analyze delinquency trends, adjusting for seasonality, to determine whether or not our loans are performing in line with our original estimates.

Operating Expenses

We assess our operational efficiency using various metrics and conduct extensive analysis to determine whether fluctuations in cost and expense levels indicate operational trends that need to be addressed. Our operating expense analysis also includes a review of origination and servicing costs to assist us in managing overall profitability.

Because loan volume and portfolio size determine the magnitude of the impact of each of the above factors on our earnings, we also closely monitor origination volume and annual percentage rate.

Recent Developments and Outlook    

OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDINGS, LLC

On November 15, 2015, OMH completed its acquisition of OMFH for $4.5 billion in cash. As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH.

On November 12, 2015, in connection with the closing of the OneMain Acquisition, SFC’s wholly owned subsidiary, Springleaf Financial Cash Services, Inc. (“CSI”), entered into a revolving demand note (the “Independence Demand Note”) with Independence, whereby CSI provided Independence with $3.4 billion cash pursuant to the terms of the Independence Demand Note. See Note 11 of the Notes to Consolidated Financial Statements in Item 8 for further information regarding the Independence Demand Note and other related party agreements with OMFH.

Although management intends for Springleaf and OneMain to become an integrated operation, the two operations will initially be separately maintained under the Springleaf and OneMain brands, with the expectation of migrating to the OneMain brand.

LENDMARK SALE

On November 12, 2015, certain subsidiaries of the Company (the “Branch Sellers”) entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”), to sell 127 branches to Lendmark (the “Lendmark Sale”). These branches represent 15% of the branches and approximately $617 million, or 13%, of the personal loans held for investment and held for sale, of the Company as of December 31, 2015. See Note 2 of the Notes to Consolidated Financial Statements in Item 8 for further information on the Lendmark Sale.

The closing of the Lendmark Sale is subject to various conditions. There can be no assurance that the Lendmark Sale will close, or if it does, when the closing will occur.

ONLINE PLATFORM

In September 2015, we launched our iLoan brand and platform to provide our current and prospective customers the option of obtaining an unsecured personal loan via a digital platform. The new online lending product offers a customized solution for our customers to consolidate debt, make home improvements or receive cash. Our iLoan product leverages our central underwriting and servicing operations in addition to our expertise in analytics, marketing, central operations and internet technology developed to support our branch operations.

As of December 31, 2015, the size of our iLoan unsecured loans ranged from $2,550 - $25,000, with a maximum term of five years.

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OUTLOOK

Assuming the U.S. economy continues to experience slow to moderate growth, we expect to continue our long history of strong credit performance. We believe the strong credit quality of our personal loan portfolio is the result of our disciplined underwriting practices and ongoing collection efforts. We also continue to see growth in the volume of personal loan originations driven by the migration of customer activity from traditional channels such as direct mail to online channels (served by our centralized operations) where we believe we are well suited to capture volume due to our scale, technology, and deployment of advanced analytics.

In addition, with an experienced management team, proven access to the capital markets, and strong demand for consumer credit, we believe we are well positioned for future personal loan growth.

Results of Operations    

CONSOLIDATED RESULTS

See table below for our consolidated operating results. A further discussion of our operating results for each of our operating segments is provided under “Segment Results.”

(dollars in millions)
Years Ended December 31,	2015		2014		2013
Interest income	$	1,657	$	1,625	$	1,637
Interest expense	667		683		843
Provision for finance receivable losses	339		352		371
Net interest income after provision for finance receivable losses	651		590		423
Other revenues	243		745		161
Other expenses	735		657		709
Income (loss) before provision for (benefit from) income taxes	159		678		(125		)
Provision for (benefit from) income taxes	18		233		(49		)
Net income (loss)	141		445		(76		)
Net income attributable to non-controlling interests	127		48		—
Net income (loss) attributable to Springleaf Finance Corporation	$	14	$	397	$	(76	)

Comparison of Consolidated Results for 2015 and 2014

Interest income increased in 2015 when compared to 2014 due to the net of the following:

(dollars in millions)
2015 compared to 2014
Decrease in average net receivables	$	(350	)
Increase in yield	383
Decrease in interest income on finance receivables held for sale	(1		)
Total	$	32

• Average net receivablesdecreased in 2015 primarily due to (i) our liquidating real estate loan portfolio, including the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014, (ii) the transfer of $608 million of our personal loans to finance receivables held for sale on September 30, 2015 as part of OMH’s initiative to close the OneMain Acquisition, and (iii) the liquidating status of the SpringCastle Portfolio. This decrease was partially offset by (i) higher personal loan average net receivables resulting from our continued focus on personal loan originations through our branch network and centralized operations and the launch of our auto loan product in June of 2014 and (ii) higher SpringCastle average net receivables resulting from the SAC Capital Contribution on July 31, 2014.

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• Yieldincreased in 2015 primarily due to a higher proportion of personal loans, which have higher yields, as a result of the real estate loan sales during 2014. The increase in yield was partially offset by the launch of our auto loan product in June of 2014, which generally has lower yields.

• Interest income on finance receivables held for saledecreased in 2015 primarily due to lower average finance receivables held for sale during 2015.

Interest expense decreased in 2015 when compared to 2014 due to the following:

(dollars in millions)
2015 compared to 2014
Decrease in average debt	$	(3	)
Decrease in weighted average interest rate	(13		)
Total	$	(16	)

• Average debtdecreased in 2015 primarily due to debt repurchases and repayments of $2.0 billion during 2015 and the elimination of $3.4 billion of debt associated with our mortgage securitizations as a result of the sales of the Company’s beneficial interests in the mortgage-backed certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt. These decreases were partially offset by net debt issuances pursuant to our consumer securitization transactions completed during 2015 and additional borrowings under our conduit facilities. See Note 13 of the Notes to Consolidated Financial Statements in Item 8 for further information on our consumer loan securitization transactions and borrowings under our conduit facilities.

• Weighted average interest rate on our debtdecreased in 2015 primarily due to the debt repurchases and repayments discussed above, which resulted in lower accretion of net discount, established at the date Fortress acquired a significant ownership interest in OMH (the “Fortress Acquisition”), applied to long-term debt. This decrease was partially offset by the elimination of debt associated with our mortgage securitizations discussed above, which generally have lower interest rates.

Provision for finance receivable losses decreased $13 million in 2015 when compared to 2014 primarily due to the net of the following:

• Allowance requirements on our real estate loans decreased in 2015 as a result of the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014.

• Net charge-offs increased in 2015 primarily due to (i) an additional seven months net charge-offs on the SpringCastle Portfolio during 2015 as a result of the SAC Capital Contribution on July 31, 2014 and (ii) higher net charge-offs on our personal loans primarily due to growth in personal loans during 2015 and a higher personal loan delinquency ratio in 2015. This increase was partially offset by lower net charge-offs on our real estate loans reflecting the 2014 transfer of real estate loans previously discussed.

Other revenues decreased $502 million in 2015 when compared to 2014 primarily due to the net of the following: (i) transactions that occurred in 2014 including net gain on sales of real estate loans and related trust assets of $626 million and net loss on repurchases and repayments of debt of $66 million, (ii) net increase in revenues associated with the 2014 real estate loans sales of $2 million (higher investment revenue generated from investing the proceeds of the sales, partially offset by lower insurance revenue reflecting the cancellations of dwelling policies as a result of the sales) and (iii) increase in other revenues — other of $57 million primarily due to 2015 interest income on the Independence Demand Note, higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during 2015 to fund the operations of its subsidiaries, and lower net charge-offs recognized on our finance receivables held for sale and provision adjustments for liquidated held for sale accounts during 2015. See Note 11 of the Notes to Consolidated Financial Statements in Item 8 for further information on the Independence Demand Note.

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Other expenses increased $78 million in 2015 when compared to 2014 due to the net of the following:

• Salaries and benefitsincreased $43 million in 2015 primarily due to (i) higher salary accruals due to an increase in the number of employees, (ii) non-cash incentive compensation expense of $15 million recorded in the second quarter of 2015 related to the rights of certain executives to a portion of the cash proceeds from the sale of OMH’s common stock by the Initial Stockholder and (iii) compensation costs of $7 million in connection with the OneMain Acquisition and the Lendmark Sale. See Note 2 of the Notes to Consolidated Financial Statements in Item 8 for further information on OMH’s equity offering.

• Other operating expensesincreased $38 million in 2015 primarily due to (i) an additional seven months of servicing expenses for the SpringCastle Portfolio during 2015 as a result of the SAC Capital Contribution on July 31, 2014, (ii) higher advertising expenses due to increased direct mailings to pre-approved customers, our increased focus on e-commerce and social media marketing, and our marketing efforts on our auto loan product during 2015, (iii) increased application processing expenses reflecting a higher number of applications for auto loan products, and (iv) higher information technology expenses. The increase in other operating expenses was partially offset by (i) costs of $7 million recorded in 2014 related to the real estate loan sales, (ii) a $6 million reduction in reserves related to estimated Property Protection Insurance (“PPI”) claims, and (iii) lower subservicing fees on our real estate loans as a result of the real estate loan sales during 2014. See Note 20 of the Notes to Consolidated Financial Statements in Item 8 for further information on the loss contingencies related to PPI claims.

• Insurance policy benefits and claimsdecreased $3 million in 2015 primarily due to favorable variances in benefit reserves.

Provision for income taxes totaled $18 million for 2015 compared to $233 million for 2014. The effective tax rate for 2015 was 11.1% compared to 34.4% for 2014. The effective tax rate for 2015 and 2014 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in the SpringCastle Portfolio and state income taxes. See Note 19 of the Notes to Consolidated Financial Statements in Item 8 for further information on the effective rates.

Comparison of Consolidated Results for 2014 and 2013

Interest income decreased in 2014 when compared to 2013 due to the net of the following:

(dollars in millions)
2014 compared to 2013
Decrease in average net receivables	$	(384	)
Increase in yield	100
SpringCastle finance charges in 2014	211
Interest income on finance receivables held for sale	61
Total	$	(12	)

• Average net receivablesdecreased in 2014 primarily due to our liquidating real estate loan portfolio, including the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease was partially offset by higher personal loan average net receivables resulting from our continued focus on personal loan originations through our branch network and centralized operations.

• Yield increased in 2014 primarily from our personal loans, which have higher yields. This increase also reflected a higher proportion of personal loans as a result of the transfers of real estate loans to finance receivables held for sale during 2014.

• SpringCastle finance charges for 2014 included five months of finance charges on the SpringCastle Portfolio as a result of the SAC Capital Contribution on July 31, 2014.

• Interest income on finance receivables held for sale in 2014 resulted from the transfers of real estate loans to finance receivables held for sale during 2014.

8

Interest expense decreased in 2014 when compared to 2013 due to the net of the following:

(dollars in millions)
2014 compared to 2013
Decrease in average debt	$	(219	)
Increase in weighted average interest rate	29
SpringCastle net interest expense in 2014	30
Total	$	(160	)

• Average debtdecreased in 2014 primarily due to debt repurchases and repayments of $4.2 billion during 2014 and the elimination of $3.4 billion of debt associated with our mortgage securitizations as a result of the sales of the Company’s beneficial interests in the mortgage-backed certificates during 2014. These decreases were partially offset by net debt issuances pursuant to our consumer securitization transactions completed during 2014.

• Weighted average interest rate on our debtincreased in 2014 primarily due to the elimination of debt associated with our mortgage securitizations discussed above, which generally have lower interest rates. This increase was partially offset by the debt repurchases and repayments discussed above, which resulted in lower accretion of net discount applied to long-term debt.

• SpringCastle interest expense for 2014 included five months of interest expense on long-term debt associated with the securitization of the SpringCastle Portfolio.

Provision for finance receivable losses decreased $19 million in 2014 when compared to 2013 primarily due to the net of the following:

• Allowance requirements decreased in 2014 primarily due to a reduction in the allowance requirements on our real estate loans deemed to be purchased credit impaired finance receivables and troubled debt restructured (“TDR”) finance receivables subsequent to the Fortress Acquisition as a result of the transfers of real estate loans with a total carrying value of $6.6 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease was partially offset by additional allowance requirements on our personal loans primarily due to growth in our personal loans during 2014 and a higher personal loan delinquency ratio at December 31, 2014.

• Net charge-offs increased in 2014 primarily due to (i) higher net charge-offs on our personal loans primarily due to growth in our personal loans during 2014 and a higher personal loan delinquency ratio at December 31, 2014 and (ii) $37 million of recoveries recorded in June 2013 resulting from a sale of previously charged-off finance receivables in June 2013 (net of a $4 million adjustment for the subsequent buyback of certain finance receivables).

• SpringCastle provision for finance receivable losses for 2014 included five months of provision for finance receivable losses associated with the SpringCastle Portfolio totaling $36 million.

Other revenues increased $584 million in 2014 when compared to 2013 primarily due to the net of the following: (i) net gain on sales of real estate loans and related trust assets of $626 million in 2014 which reflected the reversal of the remaining unaccreted GAAP basis for the real estate loans, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition, (ii) increase in insurance revenues of $18 million primarily due to increases in credit and non-credit earned premiums reflecting higher originations of personal loans with longer terms during 2014, (iii) net loss on repurchases and repayments of debt of $66 million and $42 million in 2014 and 2013, respectively, which reflected repurchases of debt at net amounts greater than carrying value, and (iv) decrease in other revenues — other of $42 million primarily due to impairments recognized on our finance receivables held for sale and provision adjustments for liquidated held for sale accounts during 2014 and lower interest revenue on notes receivables from SFI, partially offset by servicing fee revenues for the servicing of the real estate loans included in the agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar, which we continued to service until the servicing transfer on September 30, 2014, under an interim servicing agreement.

9

Other expenses decreased $52 million in 2014 when compared to 2013 due to the net of the following:

• Salaries and benefitsdecreased $126 million in 2014 primarily due to $145 million of share-based compensation expense due to the grant of restricted stock units (“RSUs”) to certain of our executives and employees in the second half of 2013. This decrease was partially offset by (i) higher salary accruals reflecting an increase in number of employees and increased commissions related to originations of personal loans and (ii) employee retention and severance accruals of $3 million recorded in the second half of 2014 due to the workforce reduction of approximately 170 employees in 2014.

• Other operating expensesincreased $64 million in 2014 primarily due to (i) servicing expenses of $25 million for the SpringCastle Portfolio as a result of the SAC Capital Contribution on July 31, 2014, (ii) higher professional fees primarily due to costs relating to the real estate sales transactions, and (iii) higher advertising and information technology expenses during 2014.

• Insurance policy benefits and claimsincreased $10 million in 2014 primarily due to unfavorable variances in benefit reserves and claim reserves.

Provision for income taxes totaled $233 million for 2014 compared to benefit from income taxes of $49 million for 2013. The effective tax rate for 2014 was 34.4% compared to 39.4% for 2013. The effective tax rate for 2014 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in our joint venture, partially offset by the effect of our state income taxes. The effective tax rate for 2013 differed from the federal statutory rate primarily due to the effects of state income taxes and a change in tax status, partially offset by the effect of interest and penalties on prior year tax returns.

Non-GAAP Financial Measures

As a result of the Fortress Acquisition, we have applied purchase accounting rules in accordance with U.S. GAAP that have caused us to fair value our assets and liabilities (primarily our finance receivables, long-term debt, and allowance for finance receivable losses). The fair valuing of these components of our balance sheet has affected and continues to affect our finance charges and related yields, our interest expense and our provision and charge offs. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. See Note 23 of the Notes to Consolidated Financial Statements in Item 8 for a complete discussion of our segment accounting. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

In addition, management uses pretax core earnings, a non-GAAP financial measure, as a key performance measure in evaluating the performance of our Core Consumer Operations. Pretax core earnings represents our income (loss) before provision for (benefit from) income taxes on a Segment Accounting Basis and excludes results of operations from our Non-Core Portfolio (Real Estate segment) and other non-core, non-originating legacy operations, gains (losses) resulting from accelerated long-term debt repayment and repurchases of long-term debt related to Core Consumer Operations (attributable to SFC), gains (losses) on fair value adjustments on debt related to Core Consumer Operations (attributable to SFC), costs associated with debt refinance related to Consumer and Insurance, and results of operations attributable to non-controlling interests. Pretax core earnings provides us with a key measure of our Core Consumer Operations’ performance and assists us in comparing its performance on an alternative basis. Management believes pretax core earnings is useful in assessing the profitability of our core business and uses pretax core earnings in evaluating our operating performance. Pretax core earnings is a non-GAAP measure and should be considered in addition to, but not as a substitute for or superior to, operating income, net income, operating cash flow, and other measures of financial performance prepared in accordance with U.S. GAAP.

10

The reconciliations of (i) income (loss) before provision for (benefit from) income taxes on GAAP basis (purchase accounting) to the same amount under a Segment Accounting Basis and (ii) income (loss) before provision for (benefit from) income taxes on a Segment Accounting Basis to pretax core earnings were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Income (loss) before provision for (benefit from) income taxes - GAAP basis	$	159		$	678		$	(125	)
Adjustments:
Interest income (a)	(11		)	(85		)	(181		)
Interest expense (b)	127			133			140
Provision for finance receivable losses (c)	17			(19		)	(1		)
Repurchases and repayments of long-term debt (d)	—			16			(10		)
Fair value adjustments on debt (e)	—			8			57
Sales of finance receivables held for sale originated as held for investment (f)	—			(434		)	—
Amortization of other intangible assets (g)	4			5			5
Other (h)	13			26			7
Income (loss) before provision for (benefit from) income taxes - Segment Accounting Basis	309			328			(108		)
Adjustments:
Pretax operating loss - Non-Core Portfolio Operations	172			5			181
Pretax operating loss - Other non-core/non-originating legacy operations	23			2			131
Net loss from accelerated repayment/repurchase of debt - Core Consumer Operations (attributable to SFC)	—			17			5
Costs associated with debt refinance - Consumer and Insurance	—			1			—
Operating income attributable to non-controlling interests	(127		)	(48		)	—
Pretax core earnings (non-GAAP)	$	377		$	305		$	209

(a) Interest income adjustments consist of: (i) the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and (ii) the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables.

Components of interest income adjustments consisted of:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Accretion of net discount applied to non-credit impaired net finance receivables	$	(12	)	$	(66	)	$	(151	)
Purchased credit impaired finance receivables finance charges	(1		)	(26		)	(46		)
Elimination of accretion or amortization of historical unearned points and fees, deferred origination costs, premiums, and discounts	2			7			16
Total	$	(11	)	$	(85	)	$	(181	)

(b) Interest expense adjustments primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting.

Components of interest expense adjustments were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Accretion of net discount applied to long-term debt	$	131		$	145		$	180
Elimination of accretion or amortization of historical discounts, premiums, commissions, and fees	(4		)	(12		)	(40		)
Total	$	127		$	133		$	140

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(c) Provision for finance receivable losses consists of the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis.

Components of provision for finance receivable losses adjustments were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Allowance for finance receivable losses adjustments	$	22		$	24		$	101
Net charge-offs	(5		)	(43		)	(102		)
Total	$	17		$	(19	)	$	(1	)

(d) Repurchases and repayments of long-term debt adjustments reflect the impact on acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt.

(e) Fair value adjustments on debt reflect differences between Segment Accounting Basis and GAAP basis. On a Segment Accounting Basis, certain long-term debt components are marked-to-market on a recurring basis and are no longer marked-to-market on a recurring basis after the application of purchase accounting at the time of the Fortress Acquisition.

(f) Fair value adjustments on sales of finance receivables held for sale originated as held for investment reflect the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale.

(g) Amortization of other intangible assets reflects the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

(h) “Other” items reflect differences between Segment Accounting Basis and GAAP basis relating to various items such as the elimination of deferred charges, adjustments to the basis of other real estate assets, fair value adjustments to fixed assets, adjustments to insurance claims and policyholder liabilities, and various other differences all as of the date of the Fortress Acquisition.

Segment Results    

See Note 23 of the Notes to Consolidated Financial Statements in Item 8 for a description of our segments. Management considers the Consumer and Insurance segment and Acquisitions and Servicing segment as our Core Consumer Operations and the Real Estate segment as our Non-Core Portfolio. As a result of the Fortress Acquisition, we have applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance. See Note 23 of the Notes to Consolidated Financial Statements in Item 8 for reconciliations of segment totals to consolidated financial statement amounts and for further discussion of the differences in our Segment Accounting Basis and GAAP.

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We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
	Prior to third quarter 2014
	The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt.
Provision for finance receivable losses	Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt.
Salaries and benefits	Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Other operating expenses	Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Insurance policy benefits and claims	Directly correlated with a specific segment.

We evaluate the performance of each of our segments based on its pretax operating earnings.

13

CORE CONSUMER OPERATIONS

Pretax operating results and selected financial statistics for Consumer and Insurance (which are reported on a Segment Accounting Basis), and Acquisitions and Servicing are presented in the table below on an aggregate basis:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014			2013
Interest income	$	1,570		$	1,123		$	721
Interest expense	277			199			149
Provision for finance receivable losses	323			236			117
Net interest income after provision for finance receivable losses	970			688			455
Other revenues	217			200			197
Other expenses	683			553			448
Pretax operating income	504			335			204
Pretax operating income attributable to non-controlling interests	127			48			—
Pretax operating income attributable to Springleaf Finance Corporation	$	377		$	287		$	204
Consumer and Insurance
Finance receivables held for investment:
Net finance receivables	$	4,286		$	3,775		$	3,129
Number of accounts	887,523			908,808			826,659
TDR finance receivables	$	29		$	22		$	15
Allowance for finance receivable losses - TDR	$	8		$	2		$	1
Finance receivables held for sale:
Net finance receivables	$	617		$	—		$	—
Number of accounts	145,736			—			—
Finance receivables held for investment and held for sale:
Average net receivables	$	4,250		$	3,374		$	2,789
Yield	26.23		%	27.01		%	25.85		%
Gross charge-off ratio (a)	5.92		%	5.64		%	5.19		%
Recovery ratio (b)	(0.86		)%	(0.71		)%	(1.67		)%
Charge-off ratio (a) (b)	5.06		%	4.93		%	3.52		%
Delinquency ratio	3.16		%	2.80		%	2.59		%
Origination volume	$	4,434		$	3,612		$	3,240
Number of accounts originated	818,758			775,581			786,805
Acquisitions and Servicing
Net finance receivables	$	1,703		$	2,091		$	—
Number of accounts	232,383			277,533			—
Average net receivables (c)	$	1,887		$	2,174		$	—
Yield	24.14		%	23.21		%	—		%
Net charge-off ratio	3.49		%	3.70		%	—		%
Delinquency ratio	4.07		%	4.69		%	—		%

(a) The gross charge-off ratio and charge-off ratio in 2013 reflect $15 million of additional charge-offs recorded in March of 2013 (on a Segment Accounting Basis) related to our change in charge-off policy for personal loans effective March 31, 2013. Excluding these additional charge-offs, the gross charge-off ratio would have been 4.66% in 2013.

(b) The recovery ratio and charge-off ratio in 2013 reflects $23 million of recoveries on charged-off personal loans resulting from a sale of our charged-off finance receivables in June of 2013, net of a $3 million adjustment for the subsequent buyback of certain personal loans.

14

Excluding the impacts of the $15 million of additional charge-offs and the $23 million of recoveries on charged-off personal loans, the charge-off ratio would have been 3.82% in 2013.

(c) Acquisitions and Servicing average net receivables for 2014 reflect a five-month average since the SAC Capital Contribution occurred on July 31, 2014.

Comparison of Pretax Operating Results for 2015 and 2014

Interest income increased $447 million in 2015 when compared to 2014 due to the following:

• Interest income — Consumer and Insuranceincreased $204 million in 2015 primarily due to the net of the following:

◦ Average net receivables increased in 2015 primarily due to increased originations on personal loans resulting from our continued focus on personal loans, including the launch of our auto loan product in June of 2014. At December 31, 2015, we had over 85,000 auto loans totaling nearly $1.0 billion compared to 19,000 auto loans totaling $238 million at December 31, 2014.

◦ Yield decreased in 2015 primarily due to the higher proportion of our auto loan product, which generally has lower yields.

◦ Interest income on finance receivables held for sale of $43 million in 2015 resulted from the transfer of personal loans to finance receivables held for sale on September 30, 2015.

• Interest income — Acquisitions and Servicingincreased $243 million in 2015 primarily due to an additional seven months of finance charges on the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. The increase was partially offset by the liquidating status of the acquired SpringCastle Portfolio.

Interest expense increased $78 million in 2015 when compared to 2014 due to the following:

• Interest expense — Consumer and Insuranceincreased $27 million in 2015 primarily due to additional funding required to support increased originations of personal loans. This increase was partially offset by a reduction in the utilization of financing from unsecured notes that was replaced by consumer loan securitizations and additional borrowings under our conduit facilities, which generally have lower interest rates.

• Interest expense — Acquisitions and Servicingincreased $51 million in 2015 primarily due to (i) an additional seven months of interest expense on the long-term debt associated with the securitization of the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014 and (ii) the refinance of the SpringCastle 2013-A Notes in October of 2014, which resulted in an increase in average debt.

Provision for finance receivable losses increased $87 million in 2015 when compared to 2014 due to the following:

• Provision for finance receivable losses — Consumer and Insuranceincreased $55 million in 2015 primarily due to higher net charge-offs on our personal loans during 2015 reflecting (i) growth in our personal loans in 2015 and (ii) a higher personal loan delinquency ratio at December 31, 2015.

• Provision for finance receivable losses — Acquisitions and Servicingincreased $32 million in 2015 primarily due to an additional seven months of provision for finance receivable losses associated with the SpringCastle Portfolio during the 2015 period as a result of the SAC Capital Contribution on July 31, 2014. This increase was partially offset by the improved credit quality of the SpringCastle Portfolio reflecting improvements in servicing of the acquired portfolio and its liquidating status.

Other revenues increased $17 million in 2015 when compared to 2014 primarily due to the net of the following: (i) net loss on repurchases and repayments of debt of $28 million in 2014 and (ii) decrease in insurance revenues of $8 million primarily due to decreases in credit and non-credit earned premiums reflecting the cancellations of dwelling policies as a result of the real estate loan sales during 2014 and fewer non-credit policies written, respectively.

15

Other expenses increased $130 million in 2015 when compared to 2014 due to the following:

• Other expenses — Consumer and Insurance increased $99 million in 2015 due to the net of the following:

◦ Salaries and benefitsincreased $57 million in 2015 primarily due to (i) higher variable compensation reflecting increased originations of personal loans, (ii) increased staffing in our centralized operations, (iii) compensation costs of $6 million in connection with the OneMain Acquisition and the Lendmark Sale, and (iv) the redistribution of the allocation of salaries and benefit expenses as a result of the real estate loan sales in 2014.

◦ Other operating expensesincreased $45 million in 2015 primarily due to (i) higher advertising expenses reflecting our increased focus on e-commerce and social media marketing and our marketing efforts on our auto loan product during 2015, (ii) higher information technology expenses reflecting increased depreciation and software maintenance as a result of software purchases and the capitalization of internally developed software, (iii) higher occupancy costs resulting from increased general maintenance costs of our branches and higher leasehold improvement amortization expense from the servicing facilities added in 2014, (iv) higher professional fees relating to legal and audit services, (v) higher credit and collection related costs reflecting growth in personal loans, including our auto loan product, and (vi) the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

◦ Insurance policy benefits and claimsdecreased $3 million in 2015 primarily due to favorable variances in benefit reserves.

• Other expenses — Acquisitions and Servicing increased $31 million in 2015 reflecting higher other operating expenses in 2015 primarily due to an additional seven months of other operating expenses during 2015 period as a result of the SAC Capital Contribution on July 31, 2014.

Comparison of Pretax Operating Results for 2014 and 2013

Interest income increased $402 million in 2014 when compared to 2013 due to the following:

• Interest income — Consumer and Insurance increased $190 million in 2014 primarily due to the following:

◦ Average net receivables increased in 2014 primarily due to increased originations of personal loans resulting from our continued focus on personal loans.

◦ Yield increased in 2014 primarily due to pricing of new personal loans at higher state specific rates with concentrations in states with more favorable returns.

• Interest income — Acquisitions and Servicing of $212 million in 2014 reflected five months of finance charges on the SpringCastle Portfolio.

Interest expense increased $50 million in 2014 when compared to 2013 due to the following:

• Interest expense — Consumer and Insuranceincreased $14 million in 2014 primarily due to additional funding required to support increased originations of personal loans. This increase was partially offset by less utilization of financing from unsecured notes that was replaced by consumer loan securitizations, which generally have lower interest rates.

• Interest expense — Acquisitions and Servicing of $36 million in 2014 reflected five months of interest expense on long-term debt associated with the securitization of the SpringCastle Portfolio and the refinance of the SpringCastle 2013-A Notes in October of 2014, which resulted in an increase in average debt.

Provision for finance receivable losses increased $119 million in 2014 when compared to 2013 due to the following:

• Provision for finance receivable losses — Consumer and Insuranceincreased $83 million in 2014 primarily due to (i) higher net charge-offs and additional allowance requirements on our personal loans resulting from increased originations of personal loans in 2014 and a higher personal loan delinquency ratio at December 31, 2014 and (ii) $23

16

million of recoveries recorded in June 2013 on previously charged-off personal loans resulting from a sale of these loans in June 2013 (net of a $3 million adjustment for the subsequent buyback of certain personal loans).

• Provision for finance receivable losses — Acquisitions and Servicing of $36 million in 2014 reflected five months of provision for finance receivable losses on the SpringCastle Portfolio.

Other revenues increased $3 million in 2014 when compared to 2013 primarily due to the net of the following: (i) increase in insurance revenues of $18 million primarily due to increases in credit and non-credit earned premiums reflecting higher originations of personal loans with longer terms in 2014, (ii) increase in investment income of $8 million primarily due to investment income generated from an investment in SpringCastle debt, which is eliminated in our consolidated results, and (iii) net loss on repurchases and repayments of debt of $28 million and $5 million in 2014 and 2013, respectively, which reflected repurchases of debt at net amounts greater than carrying value.

Other expenses increased $105 million in 2014 when compared to 2013 due to the following:

• Other expenses — Consumer and Insurance increased $75 million in 2014 due to the following:

◦ Other operating expenses increased $45 million in 2014 primarily due to higher professional fees, advertising, and information technology expenses and the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

◦ Salaries and benefitsincreased $20 million in 2014 primarily due to increased originations of personal loans and the redistribution of the allocation of salaries and benefit expenses as a result of the real estate loan sales in 2014.

◦ Insurance policy benefits and claims increased $10 million in 2014 primarily due to unfavorable variances in benefit reserves and claim reserves.

• Other expenses — Acquisitions and Servicing of $30 million in 2014 reflected five months of operating expenses allocated to Acquisitions and Servicing.

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NON-CORE PORTFOLIO

Pretax operating results and selected financial statistics for Real Estate (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014			2013
Interest income	$	68		$	401		$	690
Interest expense	213			349			539
Provision for finance receivable losses	(2		)	128			255
Net interest loss after provision for finance receivable losses	(143		)	(76		)	(104		)
Other revenues (a)	4			162			7
Other expenses	33			91			84
Pretax operating income (loss)	$	(172	)	$	(5	)	$	(181	)
Finance receivables held for investment:
Net finance receivables	$	565		$	670		$	9,199
Number of accounts	21,631			22,852			118,618
TDR finance receivables	$	160		$	160		$	3,241
Allowance for finance receivable losses - TDR	$	57		$	56		$	751
Average net receivables	$	619		$	5,055		$	9,783
Yield	8.99		%	6.93		%	7.06		%
Loss ratio (b) (c)	3.71		%	2.11		%	2.22		%
Delinquency ratio	7.71		%	8.07		%	8.08		%
Finance receivables held for sale:
Net finance receivables	$	182		$	200		$	—
Number of accounts	3,196			3,578			—
TDR finance receivables	$	187		$	194		$	—

(a) For purposes of our segment reporting presentation in Note 23 of the Notes to Consolidated Financial Statements in Item 8, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans.

(b) The loss ratio in 2014 reflects $2 million of recoveries on charged-off real estate loans resulting from a sale of previously charged-off real estate loans in March of 2014. Excluding these recoveries, our Real Estate loss ratio would have been 2.16% in 2014.

(c) The loss ratio in 2013 reflects $9 million of recoveries on charged-off real estate loans resulting from a sale of our charged-off finance receivables in June of 2013, net of a $1 million adjustment for the subsequent buyback of certain real estate loans. Excluding these recoveries, our Real Estate loss ratio would have been 2.31% in 2013.

Comparison of Pretax Operating Results for 2015 and 2014

Interest income decreased $333 million in 2015 when compared to 2014 due to the following:

• Finance chargesdecreased $295 million in 2015 primarily due to the net of the following:

◦ Average net receivables decreased in 2015 primarily due to the continued liquidation of the real estate portfolio, including the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014.

◦ Yield increased in 2015 primarily due to a higher proportion of our remaining real estate loans that are secured by second mortgages, which generally have higher yields.

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• Interest income on real estate loans held for sale decreased $38 million in 2015 primarily due to lower average real estate loans held for sale during 2015.

Interest expense decreased $136 million in 2015 when compared to 2014 primarily due to the sales of the Company’s beneficial interests in the mortgage-backed retained certificates during 2014 and the resulting deconsolidation of the securitization trusts and their outstanding certificates reflected as long-term debt.

Provision for finance receivable losses decreased $130 million in 2015 when compared to 2014 due to reductions in net charge-offs and the allowance requirements on our real estate loans recorded during 2015 as a result of (i) the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014 and (ii) a lower real estate loan delinquency ratio at December 31, 2015.

Other revenues decreased $158 million in 2015 when compared to 2014 primarily due to the net of the following: (i) transactions that occurred in 2014 including net gain on sales of real estate loans and related trust assets of $192 million, net gain on fair value adjustments on debt of $8 million, and net loss on repurchases and repayments of debt of $22 million, (ii) increase in other revenues — other of $10 million primarily due to lower net charge-offs recognized on real estate finance receivables held for sale and provision adjustments for liquidated real estate held for sale accounts during 2015, and (iii) investment revenues of $9 million in 2015 which reflected investment income generated from investing the proceeds of the real estate loan sales during 2014.

Other expenses decreased $58 million in 2015 when compared to 2014 due to the following:

• Other operating expensesdecreased $34 million in 2015 primarily due to lower professional services expenses and credit and collection related costs resulting from the sales of real estate loans during 2014. This decrease also reflected the redistribution of the allocation of other operating expenses as a result of the real estate loan sales in 2014.

• Salaries and benefitsdecreased $24 million in 2015 primarily due to the redistribution of the allocation of salaries and benefit expenses as a result of the real estate loan sales in 2014.

Comparison of Pretax Operating Results for 2014 and 2013

Interest income decreased $289 million in 2014 when compared to 2013 due to the net of the following:

• Finance chargesdecreased $340 million in 2014 primarily due to the following:

◦ Average net receivables decreased in 2014 primarily due to the continued liquidation of the real estate portfolio, including the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014.

◦ Yield decreased in 2014 reflecting a higher proportion of TDR finance receivables during the first half of 2014, which generally have lower rates than non-modified real estate loans. The decrease in yield was partially offset by a higher proportion of our remaining real estate loans that are secured by second mortgages, which generally have higher yields.

• Interest income on real estate loans held for sale in 2014 resulted from the transfers of real estate loans to held for sale during 2014.

Interest expense decreased $190 million in 2014 when compared to 2013 primarily due to lower secured term loan interest expense allocated to Real Estate and lower securitization interest expense as a result of the sales of the Company’s beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions.

Provision for finance receivable losses decreased $127 million in 2014 when compared to 2013 primarily due to a reduction in the allowance requirements recorded during 2014 as a result of the transfers of real estate loans with a total carrying value of $7.1 billion to finance receivables held for sale and the subsequent sales of nearly all of these real estate loans during 2014. This decrease was partially offset by $9 million of recoveries on previously charged-off real estate loans resulting from a sale of these loans in June 2013 (net of a $1 million adjustment for the subsequent buyback of certain real estate loans).

Other revenue increased $155 million in 2014 when compared to 2013 primarily due to the net of the following: (i) net gain on sales of real estate loans and related trust assets of $192 million in 2014 which primarily reflected consideration of amounts

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greater than the equity basis of the real estate loans at the date of sale, including proceeds of $39 million from the related MSR Sale, partially offset by the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale (consistent with our segment reporting presentation, we have combined the lower of cost or fair value adjustments with the final gain (loss) on the sales of these loans), (ii) net loss on repurchases and repayments of debt of $22 million and $46 million in 2014 and 2013, respectively, which reflected acceleration of amortization of deferred costs and repurchases of debt at net amounts greater than carrying value, and (iii) net gain on fair value adjustments on debt of $8 million and $57 million in 2014 and 2013, respectively, which reflected differences between Segment Accounting Basis and GAAP basis. On a Segment Accounting Basis, certain long-term debt components were marked-to-market on a recurring basis and were no longer marked-to-market on a recurring basis after the application of purchase accounting at the time of the Fortress Acquisition.

OTHER

“Other” consists of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our prospective Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

Pretax operating results of the Other components (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Interest income	$	8		$	16		$	45
Interest expense (a)	55			7			15
Provision for finance receivable losses	1			7			—
Net interest income (loss) after provision for finance receivable losses	(48		)	2			30
Other revenues (b)	42			6			13
Other expenses (c) (d)	17			10			174
Pretax operating loss	$	(23	)	$	(2	)	$	(131	)

(a) Interest expense for 2015 when compared to 2014 reflected higher interest expense on unsecured debt, which was allocated based on a higher cash balance resulting from the proceeds from the real estate sales in 2014.

(b) Other revenues for 2015 included (i) 2015 interest income on the Independence Demand Note and (ii) higher interest income on SFC’s note receivable from SFI reflecting additional SFI borrowings during 2015 to fund the operations of its subsidiaries. See Note 11 of the Notes to Consolidated Financial Statements in Item 8 for further information on the Independence Demand Note.

(c) Other expenses for 2015 included non-cash incentive compensation expense of $15 million recorded in the second quarter of 2015 related to the rights of certain executives to a portion of the cash proceeds from the sale of OMH’s common stock by the Initial Stockholder.

(d) Other expenses for 2013 included $145 million of share-based compensation expense due to the grant of RSUs to certain of our executives and employees in the second half of 2013.

Net finance receivables of the Other components (which are reported on a Segment Accounting Basis) were as follows:

(dollars in millions)
December 31,	2015		2014		2013
Net finance receivables:
Personal loans	$	17	$	29	$	38
Real estate loans	—		6		8
Retail sales finance	24		50		103
Total	$	41	$	85	$	149

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Credit Quality    

Our customers encompass a wide range of borrowers. In the consumer finance industry, they are described as prime or near-prime at one extreme and non-prime or sub-prime (less creditworthy) at the other. Our customers’ incomes are generally near the national median but our customers may vary from national norms as to their debt-to-income ratios, employment and residency stability, and/or credit repayment histories. In general, our customers have lower credit quality and require significant levels of servicing.

We may offer borrowers the opportunity to defer their personal loan by extending the date on which any payment is due. We may require a partial payment prior to granting such a deferral. Deferments must bring the account contractually current or due for the current month’s payment. Borrowers are generally limited to two deferments in a rolling twelve month period unless it is determined that an exception is warranted.

In addition to deferrals, we may also offer borrowers the opportunity to cure. Delinquent accounts are offered the opportunity to cure when a customer demonstrates that he or she has rehabilitated from a temporary event that caused the delinquency. An account may be brought to current status after the cause for delinquency has been identified and remediated and the customer has made two consecutive qualified payments; however, no principal or interest amounts are forgiven or credited. Cures are reviewed by a central and independent loan review team.

A full file review is completed when a loan is 60 days past due. This review includes assessing previous collection efforts, contacting the customer to determine whether the customer’s financial problems are temporary, reviewing the collateral securing the loan and developing a plan to maintain contact with the customer to increase the likelihood of future payments. Certain non-routine collection activities may include litigation, repossession of collateral, or filing involuntary bankruptcy petitions. Litigation and repossession are used as a last resort after all other collection efforts to resolve the delinquency and protect our interest in the personal loan have been exhausted. Litigation and repossession require approval.

We may renew a delinquent personal loan if the related borrower meets current underwriting criteria and we determine that it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new personal loan. We employ the same credit risk underwriting process as it would for an application from a new customer to determine whether to grant a renewal of a personal loan, regardless of whether the borrower’s account is current or delinquent.

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. We record an allowance for loan losses to cover expected losses on our finance receivables.

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The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Net finance receivables: *
60-89 days past due	$	49	$	26	$	19	$	—	$	94
90-119 days past due	41		16		3		—		60
120-149 days past due	34		12		2		1		49
150-179 days past due	31		11		2		—		44
180 days or more past due	3		1		13		—		17
Total delinquent finance receivables	158		66		39		1		264
Current	4,077		1,588		486		22		6,173
30-59 days past due	65		49		13		—		127
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Net finance receivables: *
60-89 days past due	$	36	$	34	$	13	$	1	$	84
90-119 days past due	30		21		9		—		60
120-149 days past due	24		17		5		1		47
150-179 days past due	21		16		4		—		41
180 days or more past due	2		2		13		—		17
Total delinquent finance receivables	113		90		44		2		249
Current	3,632		1,937		577		45		6,191
30-59 days past due	55		64		18		1		138
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

* Purchased credit impaired finance receivables are accounted for on a pool basis. For purposes of allocating the pool carrying amount to individual finance receivables, the Company applied the ratio of the carrying value to the gross receivable balance of each pool in developing the above table. Finance receivables greater than 180 days delinquent within a PCI pool are not ascribed any carrying value and are not used in deriving the aforementioned ratio.

TROUBLED DEBT RESTRUCTURING

We make modifications to our finance receivables to assist borrowers during times of financial difficulties. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable.

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans *		SpringCastle Portfolio		Real Estate Loans *		Total
December 31, 2015
TDR net finance receivables	$	31	$	13	$	201	$	245
Allowance for TDR finance receivable losses	$	9	$	4	$	34	$	47
Number of TDR accounts	10,542		1,656		3,506		15,704
December 31, 2014
TDR net finance receivables	$	22	$	10	$	196	$	228
Allowance for TDR finance receivable losses	$	1	$	3	$	32	$	36
Number of TDR accounts	8,069		1,159		3,463		12,691

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* TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
December 31, 2015
TDR net finance receivables	$	2	$	92	$	94
Number of TDR accounts	738		1,322		2,060
December 31, 2014
TDR net finance receivables	$	—	$	91	$	91
Number of TDR accounts	—		1,284		1,284

Liquidity and Capital Resources    

SOURCES OF FUNDS

We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, securitization debt, borrowings from conduit facilities, unsecured debt and equity, and may also utilize other corporate debt facilities in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries.

Securitizations and Borrowings from Revolving Conduit Facilities

During 2015, we completed two consumer loan securitizations. We also sold certain SpringCastle 2014-A Notes that were previously retained and repaid the entire outstanding principal balance of the 2013-A Trust’s subordinate asset-backed notes, plus accrued and unpaid interest. See “Structured Financings” for further information each of our securitization transactions.

During 2015, we completed two auto loan conduit securitizations and one personal loan conduit securitization. We also extended the revolving periods on two existing conduits, amended an existing conduit to remove the minimum balance requirement and reduce the maximum principal balance, and drew $1.2 billion under the notes of our existing conduits.

See Note 13 of the Notes to Consolidated Financial Statements in Item 8 for further information on our personal loan securitizations and conduit facilities.

Subsequent to December 31, 2015, we completed the following transactions:

• On January 15, 2016, we drew $298 million under the variable funding notes issued by the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”) and repaid $300 million on the variable funding notes issued by the Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”).

• On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, $298 million was outstanding under the notes.

• On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million. As of February 24, 2016, $100 million was outstanding under the notes.

• On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million, which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption.

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• On February 16, 2016, Sumner Brook Funding Trust 2013-VFN1, a wholly owned special purpose vehicle of SFC, repaid the entire $100 million outstanding principal balance of its variable funding notes.

• On February 24, 2016, we amended the note purchase agreement with the Midbrook Funding Trust 2013-VFN1 to (i)extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, no amounts were outstanding under the notes.

• On February 24, 2016, we amended the note purchase agreement with the Whitford Brook Funding Trust 2014-VFN1 to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12^th month following the end of the revolving period. As of February 24, 2016, $200 million was outstanding under the notes.

USES OF FUNDS

Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims and, to a lesser extent, expenditures relating to upgrading and monitoring our technology platform, risk systems, and branch locations.

At December 31, 2015, we had $321 million of cash and cash equivalents, and during 2015, SFC generated net income of $14 million. Our net cash outflow from operating and investing activities totaled $1.4 billion in 2015. At December 31, 2015, our scheduled principal and interest payments for 2016 on our existing debt (excluding securitizations) totaled $678 million. As of December 31, 2015, we had $854 million unpaid principal balance (“UPB”) of unencumbered personal loans (including $182 million held for sale) and $806 million UPB of unencumbered real estate loans (including $240 million held for sale).

Based on our estimates and taking into account the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due for at least the next twelve months.

We have previously purchased portions of our unsecured indebtedness, and we may elect to purchase additional portions of our unsecured indebtedness in the future. Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine.

LIQUIDITY

Operating Activities

Net cash provided by operations of $603 million for 2015 reflected net income of $141 million, the impact of non-cash items, and a favorable change in working capital of $67 million. Net cash provided by operations of $236 million for 2014 reflected net income of $445 million, the impact of non-cash items, and an unfavorable change in working capital of $118 million primarily due to costs relating to the real estate sales transactions. Net cash provided by operations of $406 million for 2013 reflected a net loss of $76 million, the impact of non-cash items, and an unfavorable change in working capital of $65 million.

Investing Activities

Net cash used for investing activities of $2.0 billion for 2015 was primarily due to the OneMain Acquisition. Net cash provided by investing activities of $1.4 billion for 2014 was primarily due to the sales of real estate loans held for sale originated as held for investment during 2014, partially offset by the purchase of investment securities. Net cash provided by investing activities of $726 million for 2013 was primarily due to net principal collections (originations) of finance receivables held for sale and held for investment and change in notes receivable from parent.

Financing Activities

Net cash provided by financing activities of $992 million for 2015 reflected the debt issuances associated with the 2015-A and 2015-B securitizations. Net cash used for financing activities of $1.3 billion for 2014 was primarily due to the repayments of

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the secured term loan and the 2013-BAC trust notes in late March of 2014. Net cash used for financing activities of $2.1 billion for 2013 was primarily due to the repayment of the initial secured term loan.

Liquidity Risks and Strategies

SFC’s credit ratings are non-investment grade, which have a significant impact on our cost of, and access to, capital. This, in turn, can negatively affect our ability to manage our liquidity and our ability or cost to refinance our indebtedness.

There are numerous risks to our financial results, liquidity, capital raising, and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks include, but are not limited, to the following:

• our inability to grow or maintain our personal loan portfolio with adequate profitability;

• the effect of federal, state and local laws, regulations, or regulatory policies and practices;

• potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans; and

• the potential for disruptions in the debt and equity markets.

The principal factors that could decrease our liquidity are customer delinquencies and defaults, a decline in customer prepayments, and a prolonged inability to adequately access capital market funding. We intend to support our liquidity position by utilizing the following strategies:

• maintaining disciplined underwriting standards and pricing for loans we originate or purchase and managing purchases of finance receivables;

• pursuing additional debt financings (including new securitizations and new unsecured debt issuances, debt refinancing transactions and standby funding facilities), or a combination of the foregoing;

• purchasing portions of our outstanding indebtedness through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we may determine; and

• obtaining secured revolving credit facilities to allow us to use excess cash to pay down higher cost debt.

However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect.

OUR INSURANCE SUBSIDIARIES

State law restricts the amounts our insurance subsidiaries, Merit and Yosemite, may pay as dividends without prior notice to the Indiana Department of Insurance (the “Indiana DOI”). The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends”. Our insurance subsidiaries paid extraordinary dividends to SFC totaling $100 million, $57 million, and $150 million during 2015, 2014, and 2013, respectively, and ordinary dividends of $18 million to SFC during 2014. In addition, Yosemite paid, as an extraordinary dividend to SFC, 100% of the common stock of its wholly owned subsidiary, CommoLoCo, Inc., in the amount of $58 million in July of 2013.

OUR DEBT AGREEMENTS

5.25% SFC Notes. On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of December 31, 2015, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes. On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture on a junior

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subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2015, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

With the exception of SFC’s junior subordinated debenture, none of our debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements.

As of December 31, 2015, we were in compliance with all of the covenants under our debt agreements.

Junior Subordinated Debenture. In January of 2007, SFC issued $350 million aggregate principal amount of 60-year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January of 2017.

Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends).

Based upon SFC’s financial results for the twelve months ended September 30, 2015, a mandatory trigger event occurred with respect to the interest payment due in January of 2016 as the average fixed charge ratio was 0.94x. On January 11, 2016, SFC issued one share of SFC common stock to SFI for $11 million to satisfy the January 2016 interest payments required by SFC’s debenture.

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Structured Financings

We execute private securitizations under Rule 144A of the Securities Act of 1933. As of December 31, 2015, our structured financings consisted of the following:

(dollars in millions)	Initial Note Amounts Issued (a)		Initial Collateral Balance (b)		Current Note Amounts Outstanding		Current Collateral Balance (b)		Current Weighted Average Interest Rate		Collateral Type	Revolving Period
Consumer Securitizations:
SLFT 2013-B	$	370	$	442	$	370	$	442	3.99	%	Personal loans	3 years
SLFT 2014-A	559		644		559		644		2.55	%	Personal loans	2 years
SLFT 2015-A	1,163		1,250		1,163		1,250		3.47	%	Personal loans	3 years
SLFT 2015-B	314		335		314		336		3.78	%	Personal loans	5 years
Total consumer securitizations	2,406		2,671		2,406		2,672
SpringCastle Securitization:
SCFT 2014-A	2,559		2,737		1,917		2,095		4.08	%	Personal and junior mortgage loans	N/A (c)
Total secured structured financings	$	4,965	$	5,408	$	4,323	$	4,767

(a) Represents securities sold at time of issuance or at a later date and does not include retained notes.

(b) Represents UPB of the collateral supporting the issued and retained notes.

(c) Not applicable.

In addition to the structured financings included in the table above, we had access to seven conduit facilities with a total borrowing capacity of $2.2 billion as of December 31, 2015, as discussed in Note 13 of the Notes to Consolidated Financial Statements in Item 8. At December 31, 2015, $1.2 billion was drawn under these facilities.

See “Liquidity and Capital Resources - Sources of Funds - Securitizations and Borrowings from Revolving Conduit Facilities” for securitization and conduit transactions completed subsequent to December 31, 2015.

Our securitizations have served to partially replace secured and unsecured debt in our capital structure with more favorable non-recourse funding. Our overall funding costs are positively impacted by our increased usage of securitizations as we typically execute these transactions at interest rates significantly below those of our maturing secured and unsecured debt.

The weighted average interest rates on our debt on a Segment Accounting Basis were as follows:

Years Ended December 31,	2015		2014		2013
Weighted average interest rate	5.42	%	5.42	%	5.59	%

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Contractual Obligations

At December 31, 2015, our material contractual obligations were as follows:

(dollars in millions)	2016		2017-2018		2019-2020		2021+		Securitizations		Revolving Conduit Facilities		Total
Principal maturities on long-term debt:
Securitization debt (a):
Consumer	$	—	$	—	$	—	$	—	$	2,406	$	—	$	2,406
SpringCastle Portfolio	—		—		—		—		1,917		—		1,917
Revolving conduit facilities (a)	—		—		—		—		—		1,200		1,200
Medium-term notes	375		1,903		1,000		950		—		—		4,228
Junior subordinated debt	—		—		—		350		—		—		350
Total principal maturities	375		1,903		1,000		1,300		4,323		1,200		10,101
Interest payments on debt (b)	303		415		231		505		441		46		1,941
Operating leases (c)	27		36		13		1		—		—		77
Total	$	705	$	2,354	$	1,244	$	1,806	$	4,764	$	1,246	$	12,119

(a) On-balance sheet securitizations and borrowing under revolving conduit facilities are not included in maturities by period due to their variable monthly payments.

(b) Future interest payments on floating-rate debt and revolving conduit facilities are estimated based upon floating rates in effect and revolving balances at December 31, 2015.

(c) Operating leases include annual rental commitments for leased office space, automobiles, and information technology and related equipment.

Off-Balance Sheet Arrangements    

We have no material off-balance sheet arrangements as defined by SEC rules. We had no off-balance sheet exposure to losses associated with unconsolidated variable interest entities (“VIEs”) at December 31, 2015 or 2014, other than certain representations and warranties associated with the sales of the mortgage-backed retained certificates during 2014. As of December 31, 2015, we had no repurchase activity related to these sales.

Critical Accounting Policies and Estimates    

We consider the following policies to be our most critical accounting policies because they involve critical accounting estimates and a significant degree of management judgment:

ALLOWANCE FOR FINANCE RECEIVABLE LOSSES

We estimate the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types.

Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies.

28

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. We update our estimates for cash flows on a quarterly basis incorporating current assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. If expected cash flows increase significantly, we adjust the yield prospectively; conversely, if expected cash flows decrease, we record an impairment.

TDR FINANCE RECEIVABLES

When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. When we modify an account we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. Account modifications that are deemed to be a TDR finance receivable are measured for impairment in accordance with the authoritative guidance for the accounting for impaired loans.

The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates.

FAIR VALUE MEASUREMENTS

Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely used financial techniques or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely used financial techniques.

GOODWILL AND OTHER INTANGIBLE ASSETS

For goodwill and indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

Recent Accounting Pronouncements    

See Note 4 of the Notes to Consolidated Financial Statements in Item 8 for discussion of recently issued accounting pronouncements.

Seasonality    

Our personal loan volume is generally highest during the second and fourth quarters of the year, primarily due to marketing efforts, seasonality of demand, and increased traffic in branches after the winter months. Demand for our personal loans is usually lower in January and February after the holiday season and as a result of tax refunds. Delinquencies on our personal loans are generally lowest in the first quarter and tend to rise throughout the remainder of the year. These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year.

29

Glossary of Terms    

Average debt	average of debt for each day in the period
Average net receivables	average of monthly average net finance receivables (net finance receivables at the beginning and end of each month divided by 2) in the period
Charge-off ratio	annualized net charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Delinquency ratio	UPB 60 days or more past due (greater than three payments unpaid) as a percentage of UPB
Gross charge-off ratio	annualized gross charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Trust Preferred Securities	capital securities classified as debt for accounting purposes but due to their terms are afforded, at least in part, equity capital treatment in the calculation of effective leverage by rating agencies
Loss ratio	annualized net charge-offs, net writedowns on real estate owned, net gain (loss) on sales of real estate owned, and operating expenses related to real estate owned as a percentage of the average of real estate loans at the beginning of each month in the period
Net interest income	interest income less interest expense
Recovery ratio	annualized recoveries on net charge-offs as a percentage of the average of net finance receivables at the beginning of each month in the period
Tangible equity	total equity less accumulated other comprehensive income or loss
Weighted average interest rate	annualized interest expense as a percentage of average debt
Yield	annualized finance charges as a percentage of average net receivables

30

Item 8. Financial Statements and Supplementary Data.    

An index to our financial statements and supplementary data follows:

Topic		Page
Report of Independent Registered Public Accounting Firm		32
Consolidated Balance Sheets		33
Consolidated Statements of Operations		34
Consolidated Statements of Comprehensive Income (Loss)		35
Consolidated Statements of Shareholder’s Equity		36
Consolidated Statements of Cash Flows		37
Notes to Consolidated Financial Statements:
Note 1.	Nature of Operations	39
Note 2.	Significant Transactions	39
Note 3.	Summary of Significant Accounting Policies	40
Note 4.	Recent Accounting Pronouncements	56
Note 5.	Finance Receivables	58
Note 6.	Allowance for Finance Receivable Losses	67
Note 7.	Finance Receivables Held for Sale	69
Note 8.	Investment Securities	70
Note 9.	Other Assets	73
Note 10.	Transactions with Affiliates of Fortress or AIG	74
Note 11.	Related Party Transactions	75
Note 12.	Long-term Debt	78
Note 13.	Variable Interest Entities	81
Note 14.	Derivative Financial Instruments	86
Note 15.	Insurance	87
Note 16.	Other Liabilities	89
Note 17.	Capital Stock	89
Note 18.	Accumulated Other Comprehensive Income (Loss)	90
Note 19.	Income Taxes	90
Note 20.	Lease Commitments, Rent Expense, and Contingent Liabilities	94
Note 21.	Benefit Plans	95
Note 22.	Share-Based Compensation	101
Note 23.	Segment Information	103
Note 24.	Fair Value Measurements	106
Note 25.	Subsequent Events	115
Note 26.	Selected Quarterly Financial Data (Unaudited)	116

31

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholder of Springleaf Finance Corporation:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive income (loss), shareholder’s equity, and cash flows present fairly, in all material respects, the financial position of Springleaf Finance Corporation and its subsidiaries (the “Company”) at December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 3 to the consolidated financial statements, the Company changed the manner in which it accounts for the derecognition of loans from purchased credit impaired loan pools.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 29, 2016, except for the change in the manner in which the Company accounts for the derecognition of loans from purchased credit impaired loan pools as discussed in Note 3 to the consolidated financial statements, as to which the date is August 26, 2016

32

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(dollars in millions except par value amount)
December 31,	2015			2014
Assets
Cash and cash equivalents	$	321		$	749
Investment securities	604			2,922
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $3.6 billion in 2015 and $1.9 billion in 2014)	4,300			3,800
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.7 billion in 2015 and $2.1 billion in 2014)	1,703			2,091
Real estate loans	538			639
Retail sales finance	23			48
Net finance receivables	6,564			6,578
Unearned insurance premium and claim reserves	(250		)	(217		)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $128 million in 2015 and $72 million in 2014)	(224		)	(180		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	6,090			6,181
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015)	793			202
Notes receivable from parent and affiliates	3,804			251
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $282 million in 2015 and $210 million in 2014)	295			218
Other assets	281			475
Total assets	$	12,188		$	10,998
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)	$	9,582		$	8,356
Insurance claims and policyholder liabilities	230			229
Deferred and accrued taxes	128			177
Other liabilities	216			259
Total liabilities	10,156			9,021
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 shares issued and outstanding at December 31, 2015 and 2014	5			5
Additional paid-in capital	789			771
Accumulated other comprehensive income (loss)	(24		)	3
Retained earnings	1,341			1,327
Springleaf Finance Corporation shareholder’s equity	2,111			2,106
Non-controlling interests	(79		)	(129		)
Total shareholder’s equity	2,032			1,977
Total liabilities and shareholder’s equity	$	12,188		$	10,998

See Notes to Consolidated Financial Statements.

33

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(dollars in millions)
Years Ended December 31,	2015		2014			2013
Interest income:
Finance charges	$	1,597	$	1,564		$	1,637
Finance receivables held for sale originated as held for investment	60		61			—
Total interest income	1,657		1,625			1,637
Interest expense	667		683			843
Net interest income	990		942			794
Provision for finance receivable losses	339		352			371
Net interest income after provision for finance receivable losses	651		590			423
Other revenues:
Insurance	158		166			148
Investment	49		39			34
Net loss on repurchases and repayments of debt	—		(66		)	(42		)
Net gain on fair value adjustments on debt	—		1			—
Net gain on sales of real estate loans and related trust assets	—		626			—
Other	36		(21		)	21
Total other revenues	243		745			161
Other expenses:
Operating expenses:
Salaries and benefits	364		321			447
Other operating expenses	299		261			197
Insurance policy benefits and claims	72		75			65
Total other expenses	735		657			709
Income (loss) before provision for (benefit from) income taxes	159		678			(125		)
Provision for (benefit from) income taxes	18		233			(49		)
Net income (loss)	141		445			(76		)
Net income attributable to non-controlling interests	127		48			—
Net income (loss) attributable to Springleaf Finance Corporation	$	14	$	397		$	(76	)

See Notes to Consolidated Financial Statements.

34

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Net income (loss)	$	141		$	445		$	(76	)
Other comprehensive income (loss):
Net unrealized gains (losses) on non-credit impaired available-for-sale securities	(17		)	20			(12		)
Retirement plan liabilities adjustments	(9		)	(50		)	18
Foreign currency translation adjustments	—			—			(1		)
Income tax effect:
Net unrealized (gains) losses on non-credit impaired available-for-sale securities	5			(7		)	4
Retirement plan liabilities adjustments	3			17			(6		)
Other comprehensive income (loss), net of tax, before reclassification adjustments	(18		)	(20		)	3
Reclassification adjustments included in net income (loss):
Net realized gains on available-for-sale securities	(14		)	(8		)	(2		)
Income tax effect:
Net realized gains on available-for-sale securities	5			3			1
Reclassification adjustments included in net income (loss), net of tax	(9		)	(5		)	(1		)
Other comprehensive income (loss), net of tax	(27		)	(25		)	2
Comprehensive income (loss)	114			420			(74		)
Comprehensive income attributable to non-controlling interests	127			48			—
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$	(13	)	$	372		$	(74	)

See Notes to Consolidated Financial Statements.

35

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Shareholder’s Equity

	Springleaf Finance Corporation Shareholder’s Equity
(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Springleaf Finance Corporation Shareholder’s Equity			Non-controlling Interests			Total Shareholder’s Equity
Balance, January 1, 2015	$	5	$	771	$	3		$	1,327		$	2,106		$	(129	)	$	1,977
Non-cash incentive compensation from Initial Stockholder	—		15		—			—			15			—			15
Share-based compensation expense, net of forfeitures	—		2		—			—			2			—			2
Excess tax benefit from share-based compensation	—		1		—			—			1			—			1
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—		—			—			—			(77		)	(77		)
Accumulated other comprehensive loss	—		—		(27		)	—			(27		)	—			(27		)
Net income	—		—		—			14			14			127			141
Balance, December 31, 2015	$	5	$	789	$	(24	)	$	1,341		$	2,111		$	(79	)	$	2,032
Balance, January 1, 2014	$	5	$	422	$	28		$	930		$	1,385		$	—		$	1,385
Capital contributions from parent	—		22		—			—			22			—			22
Capital contribution of capital stock of Springleaf Acquisitions Corporation	—		326		—			—			326			450			776
Share-based compensation expense, net of forfeitures	—		1		—			—			1			—			1
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—		—			—			—			(627		)	(627		)
Accumulated other comprehensive loss	—		—		(25		)	—			(25		)	—			(25		)
Net income	—		—		—			397			397			48			445
Balance, December 31, 2014	$	5	$	771	$	3		$	1,327		$	2,106		$	(129	)	$	1,977
Balance, January 1, 2013	$	5	$	256	$	26		$	1,006		$	1,293		$	—		$	1,293
Capital contributions from parent	—		21		—			—			21			—			21
Share-based compensation expense, net of forfeitures	—		145		—			—			145			—			145
Accumulated other comprehensive income	—		—		2			—			2			—			2
Net loss	—		—		—			(76		)	(76		)	—			(76		)
Balance, December 31, 2013	$	5	$	422	$	28		$	930		$	1,385		$	—		$	1,385

See Notes to Consolidated Financial Statements.

36

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Cash flows from operating activities
Net income (loss)	$	141		$	445		$	(76	)
Reconciling adjustments:
Provision for finance receivable losses	339			352			371
Depreciation and amortization	92			112			82
Deferred income tax charge (benefit)	(50		)	(12		)	(114		)
Non-cash incentive compensation from Initial Stockholder	15			—			—
Net gain on fair value adjustments on debt	—			(1		)	—
Net gain on sales of real estate loans and related trust assets	—			(626		)	—
Net loss on repurchases and repayments of debt	—			66			42
Share-based compensation expense, net of forfeitures	2			1			145
Other	(3		)	17			21
Cash flows due to changes in:
Other assets and other liabilities	(54		)	(9		)	2
Insurance claims and policyholder liabilities	34			51			29
Taxes receivable and payable	111			(127		)	(50		)
Accrued interest and finance charges	(23		)	(39		)	(41		)
Restricted cash and cash equivalents not reinvested	—			5			(4		)
Other, net	(1		)	1			(1		)
Net cash provided by operating activities	603			236			406
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(799		)	(88		)	379
Proceeds on sales of finance receivables held for sale originated as held for investment	78			3,789			15
Cash advances on intercompany notes receivables	(3,720		)	(128		)	—
Principal collections on intercompany notes receivables	189			44			—
Available-for-sale securities purchased	(476		)	(348		)	(196		)
Trading and other securities purchased	(1,474		)	(2,930		)	(10		)
Available-for-sale securities called, sold, and matured	470			269			296
Trading and other securities called, sold, and matured	3,779			646			8
Change in notes receivable from parent and affiliate	—			—			370
Change in restricted cash and cash equivalents	(72		)	93			(241		)
Proceeds from sale of real estate owned	14			58			108
Other, net	(12		)	—			(3		)
Net cash provided by (used for) investing activities	(2,023		)	1,405			726
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	3,028			3,557			3,765
Repayments of long-term debt	(1,960		)	(4,218		)	(5,868		)
Change in notes payable to parent and affiliates	—			—			(31		)
Distributions to joint venture partners	(77		)	(627		)	—
Excess tax benefit from restricted stock units	1			—			—
Capital contributions from parent	—			22			21
Net cash provided by (used for) financing activities	992			(1,266		)	(2,113		)

37

Consolidated Statements of Cash Flows (Continued)

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Effect of exchange rate changes on cash and cash equivalents	—			(1		)	(1		)
Net change in cash and cash equivalents	(428		)	374			(982		)
Cash and cash equivalents at beginning of period	749			375			1,357
Cash and cash equivalents at end of period	$	321		$	749		$	375
Supplemental cash flow information
Interest paid	$	(511	)	$	(504	)	$	(652	)
Income taxes received (paid)	45			(369		)	(112		)
Supplemental non-cash activities
Transfer of finance receivables to real estate owned	$	11		$	49		$	93
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	617			6,986			18
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	—			2,446			—
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	—			1,670			—
Net unsettled investment security purchases	—			(7		)	—

See Notes to Consolidated Financial Statements.

38

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2015

1. Nature of Operations

Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). SFI is a wholly owned subsidiary of OneMain Holdings, Inc. (“OMH”), formally Springleaf Holdings, Inc.

At December 31, 2015, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”).

SFC is a financial services holding company with subsidiaries engaged in the consumer finance and insurance businesses. At December 31, 2015, we had $6.6 billion of net finance receivables due from approximately 1.2 million customer accounts. Our network of over 800 branch offices in 27 states, as of December 31, 2015, is complemented by our centralized operations, which provides support to our branch operations. At December 31, 2015, we had approximately 3,500 employees.

2. Significant Transactions

OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDING, LLC

On November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC (“Independence”), completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for $4.5 billion in cash (the “OneMain Acquisition”). In connection with the OneMain Acquisition, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (previously defined in Note 1 as “OMH”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. OMFH is not a subsidiary of SFC and SFC is not a subsidiary of OMFH.

On November 12, 2015, in connection with the closing of the OneMain Acquisition, SFC’s wholly owned subsidiary, Springleaf Financial Cash Services, Inc. (“CSI”), entered into a revolving demand note (the “Independence Demand Note”) with Independence, whereby CSI provided Independence with $3.4 billion cash pursuant to the terms of the Independence Demand Note. See Note 11 for further information regarding the Independence Demand Note and other related party agreements with OMFH.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC (collectively, the “Branch Sellers”) entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across eleven states as a condition for approval of the OneMain Acquisition. The Settlement Agreement requires the Branch Sellers to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. In connection with the Settlement Agreement, the U.S. District of Court for the District of Columbia appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement.

LENDMARK SALE

On November 12, 2015, the Branch Sellers entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”), to sell 127 branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103%, plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that has accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark is unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, we transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. At December 31, 2015, the personal loans held for sale totaled

39

Notes to Consolidated Financial Statements, Continued

approximately $617 million, primarily due to originations, net of charge-offs of personal loans in these branches during the fourth quarter of 2015. These branches represent 15% of the branches and approximately 13% of the personal loans held for investment and held for sale of the Company as of December 31, 2015.

The closing of the Lendmark Sale is subject to various conditions. There can be no assurance that the Lendmark Sale will close, or if it does, when the closing will occur. In the event that the Branch Sellers have not completed the sale of these branches within 120 days after November 13, 2015, as such time period may be extended pursuant to the Settlement Agreement, the court may appoint a divestiture trustee to conduct the sale of such assets. In this case, the divestiture trustee would have the power to accomplish the divestiture of such assets to an acquirer or acquirers acceptable to the DOJ, and the Branch Sellers would have no right to object to a sale by the divestiture trustee on any ground other than the divestiture trustee’s malfeasance. Accordingly, the asset divesture could occur on terms less favorable to the Branch Sellers than the Lendmark Sale.

3. Summary of Significant Accounting Policies

BASIS OF PRESENTATION

We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated balance sheet and consolidated cash flow statement.

To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 4 for further information on the adoption of this ASU.

CHANGE IN ACCOUNTING POLICY

Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers.

See “Accounting Policies - Purchased Credit Impaired Finance Receivables” for our policy for derecognition of PCI loans following the change described above.

40

Notes to Consolidated Financial Statements, Continued

We have retrospectively applied this change in accounting policy. The effect of this change in accounting policy on income (loss) before provision for (benefit from) income taxes and net income (loss) attributable to SFC, and the cumulative effect of this change in accounting policy on shareholder’s equity attributable to SFC for the following prior periods are included in the table below.

(dollars in millions)	As Reported			As Adjusted
Income (loss) before provision for (benefit from) income taxes
Year ended December 31, 2013	$	(136	)	$	(125	)
Year ended December 31, 2014	755			678
Year ended December 31, 2015	144			159
Net income (loss) attributable to SFC
Year ended December 31, 2013	$	(83	)	$	(76	)
Year ended December 31, 2014	448			397
Year ended December 31, 2015	9			14
Shareholder’s equity attributable to SFC
January 1, 2014	$	1,328		$	1,385
January 1, 2015	2,069			2,106
January 1, 2016	2,069			2,111

41

Notes to Consolidated Financial Statements, Continued

Revised Condensed Consolidated Balance Sheet

	December 31, 2015						December 31, 2014
(dollars in millions)	As Reported *			As Adjusted			As Reported			As Adjusted
Assets
Cash and cash equivalents	$	321		$	321		$	749		$	749
Investment securities	604			604			2,922			2,922
Net finance receivables:
Personal loans	4,300			4,300			3,800			3,800
SpringCastle Portfolio	1,576			1,703			1,979			2,091
Real estate loans	524			538			625			639
Retail sales finance	23			23			48			48
Net finance receivables	6,423			6,564			6,452			6,578
Unearned insurance premium and claim reserves	(250		)	(250		)	(217		)	(217		)
Allowance for finance receivable losses	(219		)	(224		)	(174		)	(180		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	5,954			6,090			6,061			6,181
Finance receivables held for sale	796			793			205			202
Notes receivable from parent and affiliates	3,804			3,804			251			251
Restricted cash and cash equivalents	295			295			218			218
Other assets	281			281			474			475
Total assets	$	12,055		$	12,188		$	10,880		$	10,998
Liabilities and Shareholder’s Equity
Long-term debt	$	9,582		$	9,582		$	8,356		$	8,356
Insurance claims and policyholder liabilities	230			230			229			229
Deferred and accrued taxes	103			128			159			177
Other liabilities	217			216			255			259
Total liabilities	10,132			10,156			8,999			9,021
Shareholder’s equity:
Common stock	5			5			5			5
Additional paid-in capital	758			789			740			771
Accumulated other comprehensive income (loss)	(24		)	(24		)	3			3
Retained earnings	1,330			1,341			1,321			1,327
Springleaf Finance Corporation shareholder’s equity	2,069			2,111			2,069			2,106
Non-controlling interests	(146		)	(79		)	(188		)	(129		)
Total shareholder’s equity	1,923			2,032			1,881			1,977
Total liabilities and shareholder’s equity	$	12,055		$	12,188		$	10,880		$	10,998

* As reported in our Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated balance sheet as of December 31, 2015, has been revised in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

42

Notes to Consolidated Financial Statements, Continued

Revised Condensed Consolidated Statements of Operations

(dollars in millions)	Year Ended December 31, 2015				Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported		As Adjusted		As Reported			As Adjusted			As Reported			As Adjusted
Interest income:
Finance charges	$	1,604	$	1,597	$	1,574		$	1,564		$	1,648		$	1,637
Finance receivables held for sale originated as held for investment	61		60		60			61			—			—
Total interest income	1,665		1,657		1,634			1,625			1,648			1,637
Interest expense	667		667		683			683			843			843
Net interest income	998		990		951			942			805			794
Provision for finance receivable losses	361		339		368			352			394			371
Net interest income after provision for finance receivable losses	637		651		583			590			411			423
Other revenues:
Insurance	158		158		166			166			148			148
Investment	49		49		39			39			34			34
Net loss on repurchases and repayments of debt	—		—		(66		)	(66		)	(42		)	(42		)
Net gain on fair value adjustments on debt	—		—		1			1			—			—
Net gain on sales of real estate loans and related trust assets	—		—		702			626			—			—
Other	35		36		(13		)	(21		)	22			21
Total other revenues	242		243		829			745			162			161
Other expenses:
Operating expenses:
Salaries and benefits	364		364		321			321			447			447
Other operating expenses	299		299		261			261			197			197
Insurance policy benefits and claims	72		72		75			75			65			65
Total other expenses	735		735		657			657			709			709
Income (loss) before provision for (benefit from) income taxes	144		159		755			678			(136		)	(125		)
Provision for (benefit from) income taxes	15		18		263			233			(53		)	(49		)
Net income (loss)	129		141		492			445			(83		)	(76		)
Net income attributable to non-controlling interests	120		127		44			48			—			—
Net income (loss) attributable to Springleaf Finance Corporation	$	9	$	14	$	448		$	397		$	(83	)	$	(76	)

43

Notes to Consolidated Financial Statements, Continued

Revised Condensed Consolidated Statement of Cash Flows

(dollars in millions)	Year Ended December 31, 2015						Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported			As Adjusted			As Reported			As Adjusted			As Reported			As Adjusted
Cash flows from operating activities
Net income (loss)	$	129		$	141		$	492		$	445		$	(83	)	$	(76	)
Reconciling adjustments:
Provision for finance receivable losses	361			339			368			352			394			371
Depreciation and amortization	84			92			109			112			72			82
Deferred income tax charge (benefit)	(53		)	(50		)	18			(12		)	(118		)	(114		)
Non-cash incentive compensation from Initial Stockholder	15			15			—			—			—			—
Net gain on fair value adjustments on debt	—			—			(1		)	(1		)	—			—
Net gain on sales of real estate loans and related trust assets	—			—			(702		)	(626		)	—			—
Net loss on repurchases and repayments of debt	—			—			66			66			42			42
Share-based compensation expense, net of forfeitures	2			2			1			1			145			145
Other	(1		)	(3		)	9			17			19			21
Cash flows due to changes in:
Other assets and other liabilities	(54		)	(54		)	(9		)	(9		)	2			2
Insurance claims and policyholder liabilities	34			34			51			51			29			29
Taxes receivable and payable	111			111			(127		)	(127		)	(50		)	(50		)
Accrued interest and finance charges	(23		)	(23		)	(39		)	(39		)	(41		)	(41		)
Restricted cash and cash equivalents not reinvested	—			—			5			5			(4		)	(4		)
Other, net	(1		)	(1		)	1			1			(1		)	(1		)
Net cash provided by operating activities	604			603			242			236			406			406
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(799		)	(799		)	(94		)	(88		)	379			379
Proceeds on sales of finance receivables held for sale originated as held for investment	78			78			3,789			3,789			15			15
Cash advances on intercompany notes receivables	(3,720		)	(3,720		)	(128		)	(128		)	—			—
Principal collections on intercompany notes receivables	189			189			44			44			—			—
Available-for-sale securities purchased	(476		)	(476		)	(348		)	(348		)	(196		)	(196		)
Trading and other securities purchased	(1,474		)	(1,474		)	(2,930		)	(2,930		)	(10		)	(10		)
Available-for-sale securities called, sold, and matured	470			470			269			269			296			296
Trading and other securities called, sold, and matured	3,779			3,779			646			646			8			8
Change in notes receivable from parent and affiliate	—			—			—			—			370			370
Change in restricted cash and cash equivalents	(72		)	(72		)	93			93			(241		)	(241		)
Proceeds from sale of real estate owned	14			14			58			58			108			108
Other, net	(12		)	(12		)	—			—			(3		)	(3		)
Net cash provided by (used for) investing activities	(2,023		)	(2,023		)	1,399			1,405			726			726
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	3,028			3,028			3,557			3,557			3,765			3,765
Repayments of long-term debt	(1,960		)	(1,960		)	(4,218		)	(4,218		)	(5,868		)	(5,868		)
Change in notes payable to parent and affiliates	—			—			—			—			(31		)	(31		)
Distributions to joint venture partners	(78		)	(77		)	(627		)	(627		)	—			—
Excess tax benefit from share-based compensation	1			1			—			—			—			—
Capital contribution from parent	—			—			22			22			21			21
Net cash provided by (used for) financing activities	991			992			(1,266		)	(1,266		)	(2,113		)	(2,113		)

44

Notes to Consolidated Financial Statements, Continued

Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	(1		)	(1		)	(1		)
Net change in cash and cash equivalents	(428		)	(428		)	374			374			(982		)	(982		)
Cash and cash equivalents at beginning of period	749			749			375			375			1,357			1,357
Cash and cash equivalents at end of period	$	321		$	321		$	749		$	749		$	375		$	375

We have also adjusted the applicable prior period amounts in the Notes to the Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 herein to reflect the impact of this change in accounting policy.

ACCOUNTING POLICIES

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

Finance Receivables

Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables.

We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. A significant portion of insurance claims and policyholder liabilities originate from the finance receivables. Historically, our policy has been to report them as liabilities and not net them against finance receivables; however, during the fourth quarter of 2015, we changed our presentation of unearned premiums and certain unpaid claim liabilities in the consolidated balance sheets as a reduction to net finance receivables. We believe this presentation is preferable as it aligns more closely with the presentation of these balances with our peers. We retrospectively applied this change in presentation in our consolidated balance sheets as of December 31, 2014 to ensure comparability across reporting periods. Similarly we will change comparable prior periods in our Forms 10-Q which we plan to file in 2016. As this is a change in balance sheet presentation only, there is no effect on net income (loss) or net income (loss) attributable to SFC.

45

Notes to Consolidated Financial Statements, Continued

Finance Receivable Revenue Recognition

We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method.

We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the loans acquired through a joint venture in which we own a 47% equity interest (the “SpringCastle Portfolio”), and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges.

For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized.

We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount.

We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables.

Purchased Credit Impaired Finance Receivables

Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers.

Our policy for derecognition of PCI loans following the change described above is presented below:

As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date.

We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield.

46

Notes to Consolidated Financial Statements, Continued

Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables.

We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount. Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool.

Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment.

We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following:

• prior finance receivable loss and delinquency experience;

• the composition of our finance receivable portfolio; and

• current economic conditions, including the levels of unemployment and personal bankruptcies.

We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As

47

Notes to Consolidated Financial Statements, Continued

delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses.

Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses.

We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due.

To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off.

We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit.

For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies.

For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices (one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies.

Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies.

The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and

48

Notes to Consolidated Financial Statements, Continued

timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses.

We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates.

Finance Receivables Held for Sale

Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the Consolidated Statements of Operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues.

When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables.

Real Estate Owned

We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date.

We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred.

Reserve for Sales Recourse Obligations

When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations

49

Notes to Consolidated Financial Statements, Continued

and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues.

Other Intangible Assets

At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the insurance licenses and certain domain names, which we determined to have indefinite lives.

For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value.

For indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate.

Insurance Premiums

We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period.

We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations.

We recognize commissions on ancillary products as other revenue when earned.

We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Policy and Claim Reserves

Policy reserves for credit life, credit disability, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience,

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Notes to Consolidated Financial Statements, Continued

actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed.

We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities.

Acquisition Costs

We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured.

Investment Securities

We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets.

Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues.

We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability.

Impairments on Investment Securities

Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present:

• we intend to sell the security;

• it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or

• we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security).

If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date.

In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines.

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Notes to Consolidated Financial Statements, Continued

If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred.

If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss.

Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income.

We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary.

Investment Revenue Recognition

We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues.

Variable Interest Entities

An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances.

Other Invested Assets

Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets.

Cash and Cash Equivalents

We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents.

We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts.

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Notes to Consolidated Financial Statements, Continued

Restricted Cash and Cash Equivalents

We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents.

Long-term Debt

We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense.

Income Taxes

We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse.

We are included in the consolidated U.S. federal and state income tax returns of OneMain Holdings, Inc., our ultimate parent company, where applicable. The tax provision and current and deferred tax balances have been presented on a separate return methodology as if we were a separate filer, with modification. ASC Topic 740 requires the method of accounting to be systematic, rational, and consistent within the broad principles of ASC Topic 740. We have modified our method of accounting such that our net operating losses and capital losses, if applicable, are considered realized when those net operating losses and/or capital losses are utilized by our parent company or other members of the consolidated group.

Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including:

• the nature, frequency, and severity of current and cumulative financial reporting losses;

• the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences;

• the carryforward periods for the net operating and capital loss carryforwards;

• the sources and timing of future taxable income; and

• tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts.

We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset.

We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority.

Derivative Financial Instruments

Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows.

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Notes to Consolidated Financial Statements, Continued

We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties.

Benefit Plans

We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss.

Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses.

Share-based Compensation Plans

We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period.

Fair Value Measurements

Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models.

Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities.

We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments.

We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar

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Notes to Consolidated Financial Statements, Continued

assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24.

In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period.

Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management.

PRIOR PERIOD REVISIONS

During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million and decreased provision for income taxes by $3 million. The adjustment was not material to our results of operations for 2015.

During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements. However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 24 of this report. This presentation error was not material to any previously issued financial statements.

After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated.

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Notes to Consolidated Financial Statements, Continued

4. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Push-down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on push-down accounting from the Accounting Standards Codification (“ASC”). The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own push-down accounting guidance in November 2014. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

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Notes to Consolidated Financial Statements, Continued

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of December 31, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of the adoption the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of the adoption of this ASU on our consolidated financial statements.

Balance Sheet Classification of Deferred Taxes

In November of 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation and requires all deferred tax assets (“DTAs”) and liabilities (“DTLs”), along with related valuation allowances, to be classified as noncurrent. In essence, each jurisdiction will have only one net noncurrent DTA/DTL. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning December 15, 2016.

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Notes to Consolidated Financial Statements, Continued

Early adoption is permitted and may be applied either prospectively or retrospectively. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

We do not believe that any other accounting pronouncement issued during 2015, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

5. Finance Receivables

Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below:

• Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At December 31, 2015, $2.4 billion of personal loans, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $1.9 billion of personal loans, or 50%, secured by collateral consisting of titled personal property and $1.9 billion, or 50%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2014.

• SpringCastle Portfolio — includes unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans.

• Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At December 31, 2015, $207 million of real estate loans, or 38%, were secured by first mortgages and $331 million, or 62%, were secured by second mortgages, compared to $230 million of real estate loans, or 36%, secured by first mortgages and $409 million, or 64%, secured by second mortgages at December 31, 2014. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans are in a liquidating status.

• Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status.

58

Notes to Consolidated Financial Statements, Continued

Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
December 31, 2015
Gross receivables *	$	5,028		$	1,672	$	534		$	25		$	7,259
Unearned finance charges and points and fees	(833		)	—		—			(2		)	(835		)
Accrued finance charges	60			31		4			—			95
Deferred origination costs	45			—		—			—			45
Total	$	4,300		$	1,703	$	538		$	23		$	6,564
December 31, 2014
Gross receivables *	$	4,462		$	2,053	$	635		$	52		$	7,202
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	2,091	$	639		$	48		$	6,578

* Gross receivables are defined as follows:

• Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Included in the table above are finance receivables associated with securitizations that remain on our balance sheet. At December 31, 2015 and December 31, 2014, the carrying values of these finance receivables totaled $3.6 billion and $1.9 billion, respectively, for our personal loans and $1.7 billion and $2.1 billion, respectively, for our SpringCastle Portfolio loans.

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)
December 31,	2015		2014
Personal loans	$	2	$	1
SpringCastle Portfolio	365		354
Real estate loans	30		31
Total	$	397	$	386

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (i) the value of the collateral declines significantly; (ii) we believe the borrower will be unable to fulfill the repayment obligations; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (i) the value of the real estate declines significantly below the property’s initial appraised value; (ii) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be

59

Notes to Consolidated Financial Statements, Continued

terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion. Accordingly, no reserve has been recorded for the unused lines of credit.

GEOGRAPHIC DIVERSIFICATION

Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. However, the unemployment and housing market stresses in the U.S. have been national in scope and not limited to a particular region. The largest concentrations of net finance receivables were as follows:

December 31,	2015				2014 *
(dollars in millions)	Amount		Percent		Amount		Percent
North Carolina	$	593	9	%	$	645	10	%
Illinois	468		7		414		6
California	429		7		540		8
Indiana	403		6		349		5
Pennsylvania	375		6		393		6
Ohio	371		6		394		6
Florida	345		5		328		5
Virginia	334		5		351		5
Other	3,246		49		3,164		49
Total	$	6,564	100	%	$	6,578	100	%

* December 31, 2014 concentrations of net finance receivables are presented in the order of December 31, 2015 state concentrations.

CREDIT QUALITY INDICATORS

We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators.

We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges.

Delinquent Finance Receivables

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time.

60

Notes to Consolidated Financial Statements, Continued

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Net finance receivables: *
60-89 days past due	$	49	$	26	$	19	$	—	$	94
90-119 days past due	41		16		3		—		60
120-149 days past due	34		12		2		1		49
150-179 days past due	31		11		2		—		44
180 days or more past due	3		1		13		—		17
Total delinquent finance receivables	158		66		39		1		264
Current	4,077		1,588		486		22		6,173
30-59 days past due	65		49		13		—		127
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Net finance receivables: *
60-89 days past due	$	36	$	34	$	13	$	1	$	84
90-119 days past due	30		21		9		—		60
120-149 days past due	24		17		5		1		47
150-179 days past due	21		16		4		—		41
180 days or more past due	2		2		13		—		17
Total delinquent finance receivables	113		90		44		2		249
Current	3,632		1,937		577		45		6,191
30-59 days past due	55		64		18		1		138
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

* Purchased credit impaired finance receivables are accounted for on a pool basis. For purposes of allocating the pool carrying amount to individual finance receivables, the Company applied the ratio of the carrying value to the gross receivable balance of each pool in developing the above table. Finance receivables greater than 180 days delinquent within a PCI pool are not ascribed any carrying value and are not used in deriving the aforementioned ratio.

Nonperforming Finance Receivables

We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss.

61

Notes to Consolidated Financial Statements, Continued

Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Performing	$	4,191	$	1,663	$	518	$	22	$	6,394
Nonperforming	109		40		20		1		170
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Performing	$	3,723	$	2,035	$	608	$	47	$	6,413
Nonperforming	77		56		31		1		165
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transactions:

• SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC — on July 31, 2014 (the “SAC Capital Contribution”), SFC acquired a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), certain of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013.

• Fortress Acquisition — we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

We report the carrying amount of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below.

At December 31, 2015 and December 31, 2014, finance receivables held for sale totaled $793 million and $202 million, respectively. See Note 7 for further information on our finance receivables held for sale, which consist of certain of our personal loans and non-core real estate loans. Finance receivables held for sale include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below.

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
December 31, 2015
Carrying amount, net of allowance	$	350	$	89	$	439
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		12		12
December 31, 2014
Carrying amount, net of allowance	$	452	$	105	$	557
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		11		11

62

Notes to Consolidated Financial Statements, Continued

* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2015		2014
Carrying amount	$	59	$	72
Outstanding balance	89		99

The allowance for purchased credit impaired finance receivable losses at December 31, 2015 and 2014, reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows.

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Year Ended December 31, 2015
Balance at beginning of period	$	452		$	54		$	506
Accretion (a)	(77		)	(8		)	(85		)
Reclassifications from nonaccretable difference (b)	—			20			20
Balance at end of period	$	375		$	66		$	441
Year Ended December 31, 2014
Balance at beginning of period	$	—		$	768		$	768
Accretable yield for SpringCastle Portfolio contributed to SFC	366			—			366
Accretion (a)	(37		)	(75		)	(112		)
Reclassifications from nonaccretable difference (b)	123			19			142
Transfers due to finance receivables sold	—			(658		)	(658		)
Balance at end of period	$	452		$	54		$	506
Year Ended December 31, 2013
Balance at beginning of period	$	—		$	624		$	624
Accretion	—			(117		)	(117		)
Reclassifications from nonaccretable difference (b)	—			261			261
Balance at end of period	$	—		$	768		$	768

(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014
Accretion	$	6	$	13

(b) Reclassifications from nonaccretable difference represents the increases in accretion resulting from higher estimated undiscounted cash flows.

63

Notes to Consolidated Financial Statements, Continued

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

We have no commitments to lend additional funds on our TDR finance receivables.

TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR average net receivables	$	29	$	12	$	198	$	239
TDR finance charges recognized	3		1		11		15
Year Ended December 31, 2014
TDR average net receivables (b)	$	17	$	5	$	951	$	973
TDR finance charges recognized	2		1		47		50
Year Ended December 31, 2013
TDR average net receivables	$	15	$	—	$	1,116	$	1,131
TDR finance charges recognized	1		—		63		64

64

Notes to Consolidated Financial Statements, Continued

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
TDR average net receivables *	$	2	$	91	$	93
TDR finance charges recognized	—		5		5
Year Ended December 31, 2014
TDR average net receivables **	$	—	$	248	$	248
TDR finance charges recognized	—		4		4

* TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

(b) TDR SpringCastle Portfolio loans average net receivables for the year ended December 31, 2014 reflect a five-month average since the SAC Capital Contribution occurred on July 31, 2014.

The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months.

Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	33	$	7	$	21	$	61
Post-modification TDR net finance receivables:
Rate reduction	$	15	$	6	$	17	$	38
Other (b)	12		—		5		17
Total post-modification TDR net finance receivables	$	27	$	6	$	22	$	55
Number of TDR accounts	6,515		721		385		7,621
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	18	$	4	$	213	$	235
Post-modification TDR net finance receivables:
Rate reduction	$	10	$	4	$	157	$	171
Other (b)	6		—		46		52
Total post-modification TDR net finance receivables	$	16	$	4	$	203	$	223
Number of TDR accounts	4,206		468		2,374		7,048
Year Ended December 31, 2013
Pre-modification TDR net finance receivables	$	15	$	—	$	573	$	588
Post-modification TDR net finance receivables:
Rate reduction	$	8	$	—	$	543	$	551
Other (b)	4		—		50		54
Total post-modification TDR net finance receivables	$	12	$	—	$	593	$	605
Number of TDR accounts	3,240		—		7,085		10,325

65

Notes to Consolidated Financial Statements, Continued

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	1	$	6	$	7
Post-modification TDR net finance receivables	$	1	$	7	$	8
Number of TDR accounts	162		113		275
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		94		94

(b) “Other” modifications include extension of term and forgiveness of principal or interest.

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR net finance receivables (b)	$	5	$	2	$	3	$	10
Number of TDR accounts	1,221		147		46		1,414
Year Ended December 31, 2014
TDR net finance receivables (b)	$	1	$	1	$	33	$	35
Number of TDR accounts	141		53		524		718
Year Ended December 31, 2013
TDR net finance receivables (b)	$	1	$	—	$	69	$	70
Number of TDR accounts	355		—		928		1,283

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17
Year Ended December 31, 2014
TDR net finance receivables	$	3
Number of TDR accounts	49

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

66

Notes to Consolidated Financial Statements, Continued

6. 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, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	257			67			13			2			339
Charge-offs	(250		)	(78		)	(18		)	(3		)	(349		)
Recoveries	37			12			5			1			55
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	173		$	4		$	46		$	1		$	224
Year Ended December 31, 2014
Balance at beginning of period	$	94		$	—		$	330		$	2		$	426
Provision for finance receivable losses	203			36			110			3			352
Charge-offs (b)	(192		)	(39		)	(61		)	(5		)	(297		)
Recoveries (c)	25			5			6			1			37
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (d)	—			—			(339		)	—			(339		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	130		$	3		$	46		$	1		$	180
Year Ended December 31, 2013
Balance at beginning of period	$	67		$	—		$	190		$	2		$	259
Provision for finance receivable losses	130			—			242			(1		)	371
Charge-offs (e)	(149		)	—			(117		)	(9		)	(275		)
Recoveries (f)	47			—			15			10			72
Transfers to finance receivables held for sale (g)	(1		)	—			—			—			(1		)
Balance at end of period	$	94		$	—		$	330		$	2		$	426

(a) During 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) 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.

(c) 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.

(d) During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(e) Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13 million of additional charge-offs in March 2013.

67

Notes to Consolidated Financial Statements, Continued

(f) Recoveries in 2013 included $37 million ($23 million of personal loan recoveries, $9 million of real estate loan recoveries, and $5 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4 million adjustment for the subsequent buyback of certain finance receivables.

(g) During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $128 million at December 31, 2015 and $72 million at December 31, 2014. See Note 13 for further discussion regarding our securitization transactions.

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, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	164		$	—		$	—		$	1		$	165
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—			—			12			—			12
Individually evaluated for impairment (TDR finance receivables)	9			4			34			—			47
Total	$	173		$	4		$	46		$	1		$	224
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			350			42			—			392
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,703		$	538		$	23		$	6,564
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.25		%	8.72		%	3.46		%	3.42		%
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129		$	—		$	3		$	1		$	133
Purchased credit impaired finance receivables	—			—			11			—			11
TDR finance receivables	1			3			32			—			36
Total	$	130		$	3		$	46		$	1		$	180
Finance receivables:
Collectively evaluated for impairment	$	3,778		$	1,629		$	490		$	48		$	5,945
Purchased credit impaired finance receivables	—			452			44			—			496
TDR finance receivables	22			10			105			—			137
Total	$	3,800		$	2,091		$	639		$	48		$	6,578
Allowance for finance receivable losses as a percentage of finance receivables	3.44		%	0.13		%	7.27		%	1.56		%	2.74		%

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

68

Notes to Consolidated Financial Statements, Continued

7. Finance Receivables Held for Sale

We report finance receivables held for sale of $793 million at December 31, 2015 and $202 million at December 31, 2014, which are carried at the lower of cost or fair value. At December 31, 2015, the fair value of our finance receivables held for sale exceeded the cost. At December 31, 2014, we marked our real estate loans held for sale to fair value and recorded impairments of $7 million. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our consolidated statements of operations, which totaled $60 million in 2015 and $61 million in 2014.

On September 30, 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. See Note 2 for further information on this transfer.

During 2014, we transferred $6.6 billion of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2014, we sold finance receivables held for sale totaling $6.4 billion and recorded a net gain of $626 million. At December 31, 2015 and 2014, the remaining holdback provision relating to these real estate sales totaled $5 million and $64 million, respectively.

During 2013, we transferred $18 million of finance receivables (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2013, we sold finance receivables held for sale totaling $18 million and recorded a loss in other revenues at the time of sale of $2 million.

We did not have any transfer activity from finance receivables held for sale to finance receivables held for investment during 2015, 2014 or 2013.

69

Notes to Consolidated Financial Statements, Continued

8. Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	74		—		—			74
Commercial mortgage-backed securities (“CMBS”)	44		—		—			44
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total (a)	$	604	$	3	$	(16	)	$	591
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 and 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $1 million at December 31, 2014, primarily to support bank lines of credit.

As of December 31, 2015 and 2014, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss.

70

Notes to Consolidated Financial Statements, Continued

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—		$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—			28		—
Corporate debt	36		(1		)	6		—			42		(1		)
RMBS	9		—			—		—			9		—
CMBS	16		(1		)	2		—			18		(1		)
CDO/ABS	46		—			—		—			46		—
Total bonds	134		(2		)	10		—			144		(2		)
Preferred stock	6		—			—		—			6		—
Total	$	140	$	(2	)	$	10	$	—		$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

We do not consider the above unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2015, we have no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential impairments. During 2015, 2014 and 2013, we did not recognize any other-than-temporary credit loss write-downs to investment revenues.

During 2015, 2014, and 2013, there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities.

71

Notes to Consolidated Financial Statements, Continued

The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Proceeds from sales and redemptions	$	416		$	260		$	254
Realized gains	$	15		$	9		$	4
Realized losses	(1		)	(1		)	(2		)
Net realized gains	$	14		$	8		$	2

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	96	$	96
Due after 1 year through 5 years	165		166
Due after 5 years through 10 years	54		55
Due after 10 years	123		132
Mortgage-backed, asset-backed, and collateralized securities	147		148
Total	$	585	$	597

Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies.

The fair value of bonds on deposit with insurance regulatory authorities totaled $11 million at December 31, 2015 and $12 million at December 31, 2014.

TRADING AND OTHER SECURITIES

The fair value of trading and other securities by type was as follows:

(dollars in millions)
December 31,	2015		2014
Fixed maturity trading and other securities:
Bonds:
U.S. government and government sponsored entities	$	—	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	10		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	—		35
CMBS	2		149
CDO/ABS	—		507
Total *	$	12	$	2,321

* The fair value of other securities totaled $2 million at December 31, 2015 and $5 million at December 31, 2014.

72

Notes to Consolidated Financial Statements, Continued

The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014
Net unrealized gains (losses) on trading and other securities held at year end *	$	4		$	(9	)
Net realized gains (losses) on trading and other securities sold or redeemed during the year *	(3		)	5
Total	$	1		$	(4	)

* The net unrealized and realized gains (losses) on our other securities for the year ended December 31, 2013 were less than $1 million and, therefore, are not quantified in the table above.

9. Other Assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2015		2014
Fixed assets, net (a)	$	83	$	73
Other investments (b)	67		104
Prepaid expenses and deferred charges (c)	35		23
Ceded insurance reserves	22		22
Other intangible assets	16		20
Escrow advance receivable	11		8
Cost basis investments	10		—
Receivables from parent and affiliates	9		11
Current tax receivable (d)	8		105
Real estate owned	8		13
Receivables related to sales of real estate loans and related trust assets (e)	5		79
Other	7		17
Total	$	281	$	475

(a) Fixed assets were net of accumulated depreciation of $173 million at December 31, 2015 and $167 million at December 31, 2014.

(b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income.

(c) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of December 31, 2014.

(d) Current tax receivable includes current federal and state tax assets.

(e) Receivables related to sales of real estate loans and related trust assets includes $5 million and $64 million, respectively, of holdback provisions as of December 31, 2015 and 2014.

73

Notes to Consolidated Financial Statements, Continued

OTHER INTANGIBLE ASSETS

The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows:

(dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Other Intangible Assets
December 31, 2015
Value of business acquired (“VOBA”)	$	36	$	(32	)	$	4
Customer relationships	18		(18		)	—
Licenses	12		—			12
Customer lists	9		(9		)	—
Total	$	75	$	(59	)	$	16
December 31, 2014
VOBA	$	36	$	(32	)	$	4
Customer relationships	18		(15		)	3
Licenses	12		—			12
Customer lists	9		(8		)	1
Total	$	75	$	(55	)	$	20

Amortization expense totaled $4 million in 2015 and 2014, and $5 million in 2013. The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below.

(dollars in millions)	Estimated Aggregate Amortization Expense
2016	$	1
2017 *	—
2018 *	—
2019 *	—
2020 *	—

* Amortization expense is less than $1 million for each year subsequent to 2016 and, therefore, is not quantified in the table above.

10. Transactions with Affiliates of Fortress or AIG

FORTRESS AFFILIATED TRANSACTIONS

Subservicing Agreement

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of $2 million in 2015, $5 million in 2014, and $9 million in 2013.

As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014, our exposure to these affiliated services is reduced.

Investment Management Agreement

Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1 million in 2015, 2014, and 2013.

74

Notes to Consolidated Financial Statements, Continued

Joint Venture

Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress.

Third Street Disposition

On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress.

MSR Sale

SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million. In May of 2015, Nationstar paid off the remaining balance of $1 million of this receivable. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

AIG AFFILIATED TRANSACTIONS

As a result of the offering of OMH’s common stock in May of 2015, the economic interests of American International Group, Inc. (“AIG”) is no longer material; therefore, the discussion of AIG affiliated transactions below only relates to 2014 and 2013.

Reinsurance Agreements

Merit Life Insurance Co. (“Merit”), our wholly owned insurance subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit disability insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $44 million at December 31, 2014.

Insurance Coverage

We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies totaled $1 million in 2014 and 2013.

Derivatives

On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement with AIG Financial Products Corp. (“AIGFP”) and recorded a loss of $2 million in other revenues — other. The notional amount of this swap agreement totaled $417 million at August 5, 2013. Immediately following this termination, we had no derivative financial instruments. As a result of this termination, AIGFP returned the remaining cash collateral of $40 million to SFI that SFI had posted as security for SFC’s swap agreement with AIGFP.

11. Related Party Transactions

AFFILIATE LENDING

Notes Receivable from Parent and Affiliates

Note Receivable from SFI. SFC’s note receivable from SFI is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2016 and does not expect to demand payment from SFI in 2016. The note receivable from parent totaled $389 million at December 31, 2015 and

75

Notes to Consolidated Financial Statements, Continued

$251 million at December 31, 2014. Interest receivable on this note totaled $1 million at December 31, 2015 and was less than $1 million at December 31, 2014. The interest rate for the UPB is the lender’s cost of funds rate. Interest revenue on the note receivable from SFI totaled $15 million during 2015, $5 million during 2014, and $15 million during 2013.

Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, CSI, SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence, whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion. Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.82% at December 31, 2015. On November 12, Independence borrowed $3.4 billion under the Independence Demand Note.

At December 31, 2015, the note receivable from Independence totaled $3.4 billion, which included interest due to CSI totaling $16 million. Interest revenue on the note receivable from Independence totaled $27 million during 2015, which we report in other revenues.

OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its Restricted Subsidiaries, relating to OMFH’s 6.75% Senior Notes due 2019 and its 7.25% Senior Notes due 2021) or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment on 5 days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015, no amounts were drawn under the note.

Receivables from Parent and Affiliates

At December 31, 2015 and 2014, receivables from parent and affiliates totaled $9 million and $11 million, respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, and (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates. Receivables from parent and affiliates at December 31, 2015 and 2014 are presented net of a payable to SFI of $12 million and $43 million, respectively. Excluding this payable, receivables from parent and affiliates totaled $21 million and $54 million at December 31, 2015 and 2014, respectively.

Note Payable to Affiliate

On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment on 5 days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015, no amounts were drawn under the note.

Subsequently, we drew $370 million under the note on January 22, 2016. The lender’s cost of funds rate at this date was 5.39%.

Payables to Parent and Affiliates

At December 31, 2015 and 2014, payables to parent and affiliates totaled $24 million and $48 million, respectively. SFC’s payable to parent totaled $17 million at December 31, 2014 primarily due to payments made by SFI for the benefit of SFC. At December 31, 2015 and 2014, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $19 million to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At December 31, 2015 and 2014, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

76

Notes to Consolidated Financial Statements, Continued

SFI provided funding for SAC’s operations through an intercompany demand note, not to exceed $3 million. The note was payable in full on December 31, 2022, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was lender’s cost plus 25 basis points. At December 31, 2014, the note payable to SFI totaled $1 million and was reported in other liabilities. On September 1, 2015, SAC repaid the note in full plus accrued interest. Interest expense on the note payable to SFI for the year ended December 31, 2015 and 2014 was immaterial.

SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At December 31, 2015 and 2014, SpringCastle Holdings LLC’s payable to SFI totaled $4 million and $10 million, respectively.

CAPITAL CONTRIBUTIONS

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

During January and July of 2014, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, respectively.

INTERCOMPANY AGREEMENTS

On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $19 million at December 31, 2015 and 2014.

Services Agreement

SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During 2015 and 2014, SFMC recorded $224 million and $213 million, respectively, of service fee expenses, which are included in other operating expenses.

License Agreement

The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During 2015 and 2014, SFMC recorded $6 million and $5 million, respectively, of license fees, which are included as a contra expense to other operating expenses.

Building Lease

The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During 2015, and 2014, SFMC recorded $4 million of rent charged to SGSC, which are included as a contra expense to other operating expenses.

77

Notes to Consolidated Financial Statements, Continued

12. Long-term Debt

Carrying value and fair value of long-term debt by type were as follows:

	December 31, 2015				December 31, 2014
(dollars in millions)	Carrying Value		Fair Value		Carrying Value *		Fair Value
Senior debt	$	9,410	$	9,753	$	8,184	$	8,920
Junior subordinated debt	172		245		172		262
Total	$	9,582	$	9,998	$	8,356	$	9,182

* As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt - senior debt as of December 31, 2014.

Weighted average effective interest rates on long-term debt by type were as follows:

	Years Ended December 31,						At December 31,
	2015		2014		2013		2015		2014
Senior debt	6.96	%	7.10	%	7.06	%	6.66	%	7.16	%
Junior subordinated debt	12.26		12.26		12.26		12.26		12.26
Total	7.05		7.19		7.14		6.76		7.26

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2015 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.41% - 6.82%			1.65% - 3.65%		5.25% - 8.25%			6.00%
First quarter 2016	$	—		$	—	$	—		$	—	$	—
Second quarter 2016	—			—		—			—		—
Third quarter 2016	—			—		375			—		375
Fourth quarter 2016	—			—		—			—		—
2016	—			—		375			—		375
2017	—			—		1,903			—		1,903
2018	—			—		—			—		—
2019	—			—		700			—		700
2020	—			—		300			—		300
2021-2067	—			—		950			350		1,300
Securitizations (b)	4,323			—		—			—		4,323
Revolving conduit facilities (b)	—			1,200		—			—		1,200
Total principal maturities	$	4,323		$	1,200	$	4,228		$	350	$	10,101
Total carrying amount (c)	$	4,313		$	1,200	$	3,897		$	172	$	9,582
Debt issuance costs (d)	$	(15	)	$	—	$	(14	)	$	—	$	(29	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2015.

78

Notes to Consolidated Financial Statements, Continued

(b) Securitizations and borrowing under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which we continue to report in other assets.

GUARANTY AGREEMENTS

5.25% SFC Notes

On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of December 31, 2015, approximately $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes

On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2015, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

DEBT COVENANTS

The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement.

With the exception of SFC’s junior subordinated debenture, none of SFC’s debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements.

As of December 31, 2015, we were in compliance with all of the covenants under our debt agreements.

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Notes to Consolidated Financial Statements, Continued

Junior Subordinated Debenture

In January 2007, SFC issued $350 million aggregate principal amount of 60-year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January 2017.

Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends).

Based upon SFC’s financial results for the twelve months ended September 30, 2015, a mandatory trigger event occurred with respect to the interest payment due in January of 2016 as the average fixed charge ratio was 0.94x. On January 11, 2016, SFC issued one share of SFC common stock to SFI for $11 million to satisfy the January 2016 interest payments required by SFC’s debenture.

REPURCHASE OR REPAYMENT OF DEBT

In connection with our liability management efforts, we or our affiliates from time to time have purchased, or may in the future purchase, portions of our outstanding indebtedness. Any such purchases may be made through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration as we or any such affiliates may determine. Our plans are dynamic and we may adjust our plans in response to changes in our expectations and changes in market conditions.

Medium Term Notes

In December 2014, we used the proceeds from our offering of $700 million aggregate principal amount of the 5.25% SFC Notes to repurchase $9 million and $361 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017 from certain beneficial owners of the notes. We recorded a net loss of $20 million related to the partial extinguishment on this debt repurchase and capitalized $57 million related to a partial modification on this debt repurchase.

Additionally, in December 2014, we repurchased $23 million and $66 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017. We recorded a net loss of $17 million related to these additional debt repurchases in December 2014.

SpringCastle 2013-A Notes

On October 3, 2014, certain indirect subsidiaries of SFC associated with a joint venture in which we own a 47% equity interest (the “Co-Issuers”) used the proceeds from the SpringCastle Funding Asset-backed Notes 2014-A (the “SpringCastle 2014-A Notes”) to repay in full the SpringCastle Funding Asset-backed Notes 2013-A (the “SpringCastle 2013-A Notes”), which were issued by the Co-Issuers on April 1, 2013. See Note 13 for further information on the refinance of SpringCastle 2013-A Notes. We recorded a net loss of $21 million related to this refinancing transaction.

Secured Term Loan

On March 31, 2014, Springleaf Financial Funding Company (“SFFC”) prepaid, without penalty or premium, the entire $750 million outstanding principal balance of the secured term loan, plus accrued and unpaid interest. Effective upon the prepayment, all obligations of SFFC, SFC, and the applicable consumer finance operating subsidiaries of SFC under the secured term loan (other than contingent reimbursement obligations and indemnity obligations) were terminated and all guarantees and security interests were released.

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Notes to Consolidated Financial Statements, Continued

13. Variable Interest Entities

As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our consolidated financial statements and are accounted for as secured borrowings.

CONSOLIDATED VIES

We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary, and, therefore, we consolidated such entities. We are deemed to be the primary beneficiary of each of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns.

The asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each securitization trust. We retain interests in these securitization transactions, including residual interests in each securitization trust and, in some cases, subordinated securities issued by the VIEs. We retain credit risk in the securitizations through our ownership of the residual interest in each securitization trust, and, in some cases, ownership of the most subordinated class of asset-backed securities, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and the VIE liabilities if the VIE’s creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)
December 31,	2015		2014
Assets
Cash and cash equivalents (a)	$	7	$	52
Finance receivables:
Personal loans	3,621		1,853
SpringCastle Portfolio	1,703		2,091
Allowance for finance receivable losses	128		72
Finance receivables held for sale	435		—
Restricted cash and cash equivalents	282		210
Other assets (a)	48		23
Liabilities
Long-term debt (b)	$	5,513	$	3,630
Other liabilities (a)	9		8

(a) In connection with OMH’s disclosure integration with OneMain, we have expanded our presentation to include cash and cash equivalents, other assets and other liabilities associated with our securitization trusts.

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Notes to Consolidated Financial Statements, Continued

(b) As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

SECURITIZATION TRANSACTIONS

Consumer Loan Securitizations

2013-A Securitization. On February 19, 2013, we completed a private securitization transaction in which Tenth Street Funding LLC (“Tenth Street”), a wholly owned special purpose vehicle, sold $568 million of notes backed by personal loans held by Springleaf Funding Trust 2013-A (the “2013-A Trust”), at a 2.83% weighted average yield. The notes were scheduled to mature in September 2021. We sold the asset-backed notes for $568 million, after the price discount but before expenses and a $7 million interest reserve requirement. We initially retained $36 million of the 2013-A Trust’s subordinate asset-backed notes.

On December 15, 2015, Tenth Street exercised its right to redeem the asset-backed notes issued by the 2013-A Trust on February 19, 2013 (the “2013-A Notes”). To redeem the 2013-A Notes, Tenth Street paid a redemption price of $189 million, which excluded $37 million for the Class D 2013-A Notes owned by Tenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-A Notes was $225 million on the date of the optional redemption.

2013-B Securitization. On June 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $256 million of notes backed by personal loans held by Springleaf Funding Trust 2013-B (the “2013-B Trust”), at a 4.11% weighted average yield. The notes mature in June 2023 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $255 million, after the price discount but before expenses and a $4 million interest reserve requirement. We initially retained $114 million of the 2013-B Trust’s senior asset-backed notes (which we subsequently sold in 2013 and recorded $112 million of additional debt) and $30 million of the 2013-B Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2013-BAC Securitization. On September 25, 2013, we completed a private securitization transaction in which the Springleaf Funding Trust 2013-BAC (the “2013-BAC Trust”), a wholly owned special purpose vehicle, issued $500 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. We sold the personal loan-backed notes for gross proceeds of $500 million.

On March 27, 2014, we repaid the entire $231 million outstanding principal balance of the notes, plus accrued and unpaid interest of the 2013-BAC Trust.

2014-A Securitization. On March 26, 2014, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $559 million of notes backed by personal loans held by Springleaf Funding Trust 2014-A (the “2014-A Trust”), at a 2.62% weighted average yield. The notes mature in December 2022 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $559 million, after the price discount but before expenses and a $6 million interest reserve requirement. We initially retained $33 million of the 2014-A Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2015-A Securitization. On February 26, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $1.2 billion of notes backed by personal loans held by Springleaf Funding Trust 2015-A at a 3.58% weighted average yield. The notes mature in November 2024 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2015-B Securitization. On April 7, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $314 million of notes backed by personal loans held by Springleaf Funding Trust 2015-B at a 3.84% weighted average yield. The notes mature in May 2028 and have a fifty-nine month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $314 million, after the price

82

Notes to Consolidated Financial Statements, Continued

discount but before expenses and a $3 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

SpringCastle Securitizations

SpringCastle 2014-A Securitization. On October 3, 2014, the Co-Issuers issued $2.6 billion of the SpringCastle 2014-A Notes at a 4.68% weighted average yield in a private placement transaction. The SpringCastle 2014-A Notes are collateralized by the SpringCastle Portfolio in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014. The Co-Issuers sold the SpringCastle 2014-A Notes for approximately $2.6 billion after the price discount but before expenses. The Co-Issuers used the proceeds from the SpringCastle 2014-A Notes to repay in full on October 3, 2014 the SpringCastle 2013-A Notes. At September 30, 2014, the UPB of the SpringCastle 2013-A Notes was $1.5 billion.

On October 3, 2014, SAC purchased $363 million initial principal amount of the SpringCastle 2014-A Notes. The Co-Issuers retained $62 million of the SpringCastle 2014-A Notes. Certain subsidiaries of NRZ own a 30% equity interest in the Co-Issuers. NRZ is managed by an affiliate of Fortress.

On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015.

Mortgage Securitizations

2013-1 Securitization. On April 10, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $783 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-1 (the “2013-1 Trust”), at a 2.85% weighted average yield. We sold the mortgage-backed notes for $782 million, after the price discount but before expenses. We initially retained $237 million of the 2013-1 Trust’s subordinate mortgage-backed notes.

2013-2 Securitization. On July 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $599 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-2 (the “2013-2 Trust”), at a 2.88% weighted average yield. We sold the mortgage-backed notes for $591 million, after the price discount but before expenses. We initially retained $535 million of the 2013-2 Trust’s subordinate mortgage-backed notes.

2013-3 Securitization. On October 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $271 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-3 (the “2013-3 Trust”), at a 3.40% weighted average yield. We sold the mortgage-backed notes for $269 million, after the price discount but before expenses. We initially retained $229 million of the 2013-3 Trust’s subordinate mortgage-backed notes.

Sales of Previously Retained Mortgage-backed Notes

During 2013, we sold the following previously retained mortgage-backed notes:

(dollars in millions)	Principal Amount of Previously Retained Notes Issued		Carrying Amount of Additional Debt Recorded
Mortgage Securitizations
SLFMT 2012-2	$	20	$	21
SLFMT 2012-3	8		8
SLFMT 2013-2	158		149
SLFMT 2013-3	23		23

During 2014, our remaining beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions were sold in a series of separate transactions. As a result of these sales, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary.

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Notes to Consolidated Financial Statements, Continued

REVOLVING CONDUIT FACILITIES

Conduit Facilities

Midbrook 2013-VFN1 Securitization. On September 26, 2013, we established a private securitization facility in which the Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, could issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but could be funded from time to time over a one-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes could also be paid down in whole or in part and then redrawn. Following the one-year funding period, the principal amount of the notes, if any, would amortize and would be due and payable in full in October 2017.

On June 13, 2014, we amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to extend the one-year funding period to a two-year funding period. Following the two-year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2019. The maximum principal balance of variable funding notes that can be issued remained at $300 million. At December 31, 2015, no amounts had been funded.

The note purchase agreement with the Midbrook 2013-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment.

Springleaf 2013-VFN1 Securitization. On September 27, 2013, we established a private securitization facility in which the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period, which may be extended for one year, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two- or three-year funding period, as the case may be, the principal amount of the notes, if any, will amortize and will be due and payable in full in October 2019.

On May 20, 2015, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to, among other things, extend the original two-year revolving period ending October of 2015 to a two-year revolving period ending April of 2017, which may be extended for up to one additional year, subject to satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in May of 2020. At December 31, 2015, the maximum amount that could be drawn under the notes remained at $350 million. No amounts were drawn under the notes as of December 31, 2015.

The note purchase agreement with the Springleaf 2013-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment.

Sumner Brook 2013-VFN1 Securitization. On December 20, 2013, we established a private securitization facility in which the Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two-year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in August 2022.

On January 16, 2015, we amended the note purchase agreement with the Sumner Brook 2013-VFN1 Trust to extend the two-year revolving period ending December of 2015 to a three-year revolving period ending January of 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August of 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million. On December 21, 2015, we drew $100 million under the notes, which remained outstanding as of December 31, 2015.

Whitford Brook 2014-VFN1 Securitization. On June 26, 2014, we established a private securitization facility in which the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”), a wholly owned special purpose vehicle,

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Notes to Consolidated Financial Statements, Continued

may issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC. The notes will be funded over a three-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down to the required minimum balance of $100 million and then redrawn. Following the three-year funding period, the principal amount of the notes will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2018, unless an option to prepay is elected between July 2017 and July 2018.

On March 24, 2015, we amended the sale and servicing agreement relating to the Whitford Brook 2014-VFN1 Trust to remove the requirement for a $100 million minimum balance drawn under the variable funding notes, which are to be backed by personal loans acquired from subsidiaries of SFC from time to time. On March 25, 2015, we paid down the note balance of $100 million.

On June 3, 2015, we amended the note purchase agreement relating to the Whitford Brook 2014-VFN1 Trust to reduce the $300 million maximum principal balance to $250 million. On each of July 15, 2015 and December 3, 2015, we drew $100 million under the notes. As of December 31, 2015, $200 million remained outstanding under the notes.

The note purchase agreement with the Whitford Brook 2015-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment.

Mill River 2015-VFN1 Securitization. On May 27, 2015, we established a private securitization facility in which Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $400 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in June of 2021. On each of November 23, 2015 and December 10, 2015, we drew $200 million under the notes. As of December 31, 2015, $400 million remained outstanding under the notes.

The note purchase agreement with the Mill River 2015-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment.

Second Avenue Funding LLC Securitization. On June 3, 2015, we established a private securitization facility in which Second Avenue Funding LLC, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the three-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full in June of 2019. On November 23, 2015, we drew $250 million under the notes, which remained outstanding as of December 31, 2015.

First Avenue Funding LLC Securitization. On June 10, 2015, we established a private securitization facility in which First Avenue Funding LLC (“First Avenue”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a two-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the two-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full twelve months following the maturity of the last auto loan held by First Avenue. On November 23, 2015, we drew $250 million under the notes, which remained outstanding as of December 31, 2015.

On December 11, 2015, we amended the facility to extend the scheduled maturity date until December 10, 2017.

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Notes to Consolidated Financial Statements, Continued

VIE INTEREST EXPENSE

Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $184 million in 2015, $163 million in 2014, and $147 million in 2013.

DECONSOLIDATED VIES

As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. During 2014, we established a reserve for sales recourse obligations of $6 million related to these sales. At December 31, 2015, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of December 31, 2015. See Note 20 for further information on the total reserve for sales recourse obligations relating to the real estate loan sales, including the sales of the mortgage-backed retained certificates.

14. Derivative Financial Instruments

During 2015 and 2014, we did not have any derivative activity. In 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIG Financial Products, a subsidiary of AIG, and recorded a loss of $2 million in other revenues — other. Immediately following this termination, we had no derivative financial instruments.

Changes in the notional amounts of our cross currency interest rate swap agreements were as follows:

(dollars in millions)
At or for the Year Ended December 31,	2013
Balance at beginning of period	$	417
Discontinued and terminated contracts	(417		)
Balance at end of period	$	—

During 2013, we recognized a net loss of $3 million on SFC’s non-designated hedging instruments in other revenues — other.

Derivative adjustments included in other revenues — other consisted of the following:

(dollars in millions)
Year Ended December 31,	2013
Net interest income	$	9
Mark to market losses	(8		)
Total	$	1

SFC was exposed to credit risk if counterparties to its swap agreement did not perform. SFC regularly monitored counterparty credit ratings throughout the term of the agreement. SFC’s exposure to market risk was limited to changes in the value of its swap agreement offset by changes in the value of the hedged debt. While SFC’s cross currency interest rate swap agreement mitigated economic exposure of related debt, it did not qualify as a cash flow or fair value hedge under U.S. GAAP.

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Notes to Consolidated Financial Statements, Continued

15. Insurance

Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows:

(dollars in millions)
December 31,	2015		2014
Finance receivable related:
Payable to SFC:
Unearned premium reserves	$	222	$	194
Claim reserves	28		23
Subtotal (a)	250		217
Payable to third-party beneficiaries:
Benefit reserves	113		107
Claim reserves	4		5
Subtotal (b)	117		112
Non-finance receivable related:
Benefit reserves	72		75
Claim reserves	41		42
Subtotal (b)	113		117
Total	$	480	$	446

(a) Reported as a contra-asset to net finance receivables in connection with the OneMain policy integration.

(b) Reported in insurance claims and policyholder liabilities.

Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits included the following amounts assumed from other insurers:

(dollars in millions)
December 31,	2015		2014
Non-affiliated insurance companies	$	58	$	15
AIG affiliated insurance companies*	—		43
Total	$	58	$	58

* As a result of the offering of OMH’s common stock in May of 2015, the economic interests of AIG is no longer material; therefore, the reinsurance agreements with insurers that are subsidiaries of AIG as of December 31, 2015 have not been segregated.

At December 31, 2015 and 2014, reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $22 million.

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Notes to Consolidated Financial Statements, Continued

Changes in the reserve for unpaid claims and loss adjustment expenses, net of reinsurance recoverable:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014			2013
Balance at beginning of period	$	48		$	46		$	51
Additions for losses and loss adjustment expenses incurred to:
Current year	64			65			59
Prior years *	—			(3		)	(6		)
Total	64			62			53
Reductions for losses and loss adjustment expenses paid related to:
Current year	(40		)	(39		)	(35		)
Prior years	(21		)	(21		)	(23		)
Total	(61		)	(60		)	(58		)
Balance at end of period	$	51		$	48		$	46

* Reflects a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 and $6 million at December 31, 2013 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected.

Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana Department of Insurance (the “Indiana DOI”), which is a comprehensive basis of accounting other than U.S. GAAP. The primary differences between statutory accounting practices and U.S. GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis.

Statutory net income (loss) for our insurance companies by type of insurance was as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Property and casualty	$	15		$	16		$	41
Life and disability	(1		)	(2		)	3

Statutory capital and surplus for our insurance companies by type of insurance were as follows:

(dollars in millions)
December 31,	2015		2014
Property and casualty	$	76	$	108
Life and disability	123		171

Our insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2015 and 2014, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels.

State law restricts the amounts our insurance subsidiaries, Yosemite Insurance Company (“Yosemite”) and Merit, may pay as dividends without prior notice to the Indiana DOI. The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the

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Notes to Consolidated Financial Statements, Continued

Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends”. Our insurance subsidiaries paid extraordinary dividends to SFC totaling $100 million, $57 million, and $150 million during 2015, 2014, and 2013, respectively, and ordinary dividends of $18 million to SFC during 2014. In addition, Yosemite paid, as an extraordinary dividend to SFC, 100% of the common stock of its wholly owned subsidiary, CommoLoCo, Inc., in the amount of $58 million in July of 2013.

16. Other Liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2015		2014
Retirement plans	$	55	$	50
Accrued interest on debt	55		57
Payables to parent and affiliates *	24		48
Other accrued expenses and accounts payable	17		30
Loan principal warranty reserve	15		24
Salary and benefit liabilities	14		11
Bank overdrafts	14		5
Other insurance liabilities	5		4
Other	17		30
Total	$	216	$	259

* See Note 11 for further information on payables to parent and affiliates.

17. Capital Stock

SFC has two classes of authorized capital stock: special stock and common stock. SFC may issue special stock in series. The board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance.

Par value and shares authorized at December 31, 2015 were as follows:

	Special Stock		Common Stock
Par value	$	—	$	0.50
Shares authorized	25,000,000		25,000,000

Shares issued and outstanding were as follows:

	Special Stock		Common Stock
December 31,	2015	2014	2015	2014
Shares issued and outstanding	—	—	10,160,020	10,160,020

During January and July of 2014 and 2013, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014 and 2013, respectively.

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

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Notes to Consolidated Financial Statements, Continued

18. Accumulated Other Comprehensive Income (Loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(12		)	(6		)	—			(18		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—			(9		)
Balance at end of period	$	(9	)	$	(19	)	$	4		$	(24	)
Year Ended December 31, 2014
Balance at beginning of period	$	4		$	20		$	4		$	28
Other comprehensive income (loss) before reclassifications	13			(33		)	—			(20		)
Reclassification adjustments from accumulated other comprehensive income	(5		)	—			—			(5		)
Balance at end of period	$	12		$	(13	)	$	4		$	3
Year Ended December 31, 2013
Balance at beginning of period	$	13		$	8		$	5		$	26
Other comprehensive income (loss) before reclassifications	(8		)	12			(1		)	3
Reclassification adjustments from accumulated other comprehensive income	(1		)	—			—			(1		)
Balance at end of period	$	4		$	20		$	4		$	28

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Unrealized gains on available-for-sale securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	8		$	2
Income tax effect	(5		)	(3		)	(1		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	9		$	5		$	1

19. Income Taxes

OMH and all of its eligible domestic U.S. subsidiaries, including SFC, file a consolidated life/non-life federal tax return with the Internal Revenue Service (“IRS”). Previously, Merit was not an eligible company, and it filed a separate federal life insurance tax return. For our 2015 consolidated federal tax return, Merit is eligible as an includible insurance company under Internal Revenue Code (“IRC”) Section 1504. Income taxes from the consolidated federal and state tax returns are allocated to the eligible subsidiaries under a tax sharing agreement with OMH.

Our foreign subsidiaries file tax returns in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2015, the Company had no undistributed foreign earnings.

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Notes to Consolidated Financial Statements, Continued

Components of income (loss) before provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014		2013
Income (loss) before provision for (benefit from) income taxes - U.S. operations	$	152	$	676	$	(121	)
Income (loss) before provision for (benefit from) income taxes - foreign operations	7		2		(4		)
Total	$	159	$	678	$	(125	)

Components of provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Current:
Federal	$	63		$	228		$	62
Foreign	—			—			1
State	5			17			2
Total current	68			245			65
Deferred:
Federal	(46		)	(10		)	(103		)
Foreign	—			—			1
State	(4		)	(2		)	(12		)
Total deferred	(50		)	(12		)	(114		)
Total	$	18		$	233		$	(49	)

Expense from foreign income taxes includes our foreign subsidiaries that operate in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom.

We recorded a current state income tax provision in 2015, 2014, and 2013 attributable to profitable operations in certain states in which we engage in business activity that could not be offset against losses incurred. We recorded a valuation allowance against the majority of our gross state deferred tax assets related to net operating losses.

Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows:

Years Ended December 31,	2015		2014		2013
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Non-controlling interests	(27.91	)	(2.51	)	—
Nondeductible compensation	3.39		—		(2.16	)
Nontaxable investment income	(0.29	)	(0.14	)	1.20
State income taxes, net of federal	0.23		1.50		4.60
Foreign operations	0.12		0.51		(2.91	)
Interest and penalties on prior year tax returns	—		(0.14	)	(4.75	)
Change in tax status	—		—		9.07
Other, net	0.58		0.15		(0.66	)
Effective income tax rate	11.12	%	34.37	%	39.39	%

The effective tax rate for 2015 and 2014 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in the SpringCastle Portfolio and state income taxes. The effective tax rate is based on income (loss) before

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Notes to Consolidated Financial Statements, Continued

taxes, which includes income (loss) attributable to non-controlling interests. The income (loss) attributable to the non-controlling interest is not included in the taxable income in SFC, resulting in variances from the federal statutory rate of (27.91)% and (2.51)% in 2015 and 2014, respectively. The difference in the impact on the effective tax rate due to non-controlling interest in 2015 as compared to 2014 is due to the fact that the net income attributable to non-controlling interest was a greater percentage of the total income (loss) before taxes in 2015 as compared to 2014. The effective tax rate for 2013 differed from the federal statutory rate primarily due to the effects of state income taxes and a change in tax status, partially offset by the effect of interest and penalties on prior year tax returns.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Balance at beginning of year	$	4		$	2		$	2
Increases in tax positions for prior years	4			3			—
Decreases in tax positions for prior years	(2		)	—			—
Increases in tax positions for current years	4			—			—
Lapse in statute of limitations	—			(1		)	—
Settlements with tax authorities	(1		)	—			—
Balance at end of year	$	9		$	4		$	2

Our gross unrecognized tax obligation includes interest and penalties. We recognize interest and penalties related to gross unrecognized tax obligations in income tax expense. We accrued $3 million in 2015, $1 million in 2014, and less than $1 million in 2013 for the payment of respective tax obligation, interest and penalty, net of any federal benefit. The amount of any change in the balance of uncertain tax liabilities over the next twelve months is not expected to be material to our consolidated financial statements.

We are currently under examination of our U.S. federal tax return for the year 2013 by the IRS. Management believes it has adequately provided for taxes for such year. No specific examination issue or adjustment has been identified to date. During 2015, the Company amended their 2011 and 2012 federal and state returns. Therefore, the Company could be subject to examination for the respective years. The amended returns resulted in a net receivable that is recorded in the current tax receivable account.

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Notes to Consolidated Financial Statements, Continued

Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2015			2014
Deferred tax assets:
Allowance for loan losses	$	95		$	81
Capital loss carryforward	27			—
Pension/employee benefits	26			20
State taxes, net of federal	19			20
Net operating losses and tax attributes	16			19
Joint venture	8			—
Legal and warranty reserve	6			9
Deferred insurance commissions	5			3
Payment protection insurance liability	2			5
Other	8			5
Total	212			162
Deferred tax liabilities:
Debt writedown	150			194
Impact of tax accounting method change	76			—
Mark-to-market	21			51
Discount - debt exchange	20			23
Insurance reserves	15			10
Other intangible assets	5			7
Joint venture	—			5
Other	—			5
Total	287			295
Net deferred tax liabilities before valuation allowance	(75		)	(133		)
Valuation allowance	(38		)	(44		)
Net deferred tax liabilities	$	(113	)	$	(177	)

We had a net deferred tax liability of $113 million and $177 million at December 31, 2015 and 2014, respectively. The deferred tax liability reflected on the impact of tax accounting method change relates to the valuation of certain assets. The gross deferred tax liabilities are expected to reverse in time, and amounts are sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets.

Included in our gross deferred tax assets are foreign deferred tax assets that are primarily attributable to foreign net operating loss carryforwards. The benefit of the foreign net operating loss carryforwards is $13 million and $15 million from our United Kingdom operations at December 31, 2015 and 2014, respectively, and $2 million from our Puerto Rico operations at December 31, 2015 and 2014. The United Kingdom net operating loss does not have a statute of limitations and the Puerto Rico net operating loss expires in 2024. We had a valuation allowance against our United Kingdom and Puerto Rico operations of $16 million and $18 million at December 31, 2015 and 2014, respectively.

In addition, at December 31, 2015, we had a federal capital loss carryforward of $78 million. The federal capital loss carryforward expires in 2020. At December 31, 2015, we had state net operating loss carryforwards of $548 million, compared to $500 million at December 31, 2014. The state net operating loss carryforwards expire between 2017 and 2036. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $22 million and $26 million at December 31, 2015 and 2014, respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more-likely-than-not to not be realized.

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Notes to Consolidated Financial Statements, Continued

At December 31, 2015, we had $14 million of net current federal and foreign income tax payable, compared to $100 million receivable at December 31, 2014. At December 31, 2015, we had $8 million of current state tax receivable, compared to $5 million at December 31, 2014.

20. Lease Commitments, Rent Expense, and Contingent Liabilities

LEASE COMMITMENTS AND RENT EXPENSE

Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows:

(dollars in millions)	Lease Commitments
First quarter 2016	$	7
Second quarter 2016	7
Third quarter 2016	7
Fourth quarter 2016	6
2016	27
2017	21
2018	15
2019	9
2020	4
2021+	1
Total	$	77

In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $28 million in 2015, $29 million in 2014, and $30 million in 2013.

LEGAL CONTINGENCIES

In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action.

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Notes to Consolidated Financial Statements, Continued

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole.

SALES RECOURSE OBLIGATIONS

During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales. At December 31, 2015, our reserve for sales recourse obligations totaled $15 million, which primarily related to the real estate loan sales in 2014. We repurchased 13 loans totaling $1 million during 2015 associated with the real estate loan sales in 2014. There was no repurchase activity associated with the 2014 sales of real estate loans during 2014. We repurchased 9 loans totaling $1 million during 2014 and 20 loans totaling $3 million during 2013 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At December 31, 2015, there were no material recourse requests with loss exposure that management believes will not be covered by the reserve.

The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014		2013
Balance at beginning of period	$	24		$	5	$	5
Recourse losses	(2		)	—		—
Provision for recourse obligations, net of recoveries *	(7		)	19		—
Balance at end of period	$	15		$	24	$	5

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses.

PAYMENT PROTECTION INSURANCE

Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March of 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $6 million at December 31, 2015 and $14 million at December 31, 2014. We do not believe that any additional losses related to PPI claims in excess of the amounts accrued will have a material adverse effect on our consolidated financial statements as a whole.

21. Benefit Plans

PENSION PLANS

Retirement Plan

The Springleaf Financial Services Retirement Plan (the ”Retirement Plan”) is a noncontributory defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Effective December 31, 2012, the Retirement Plan was frozen. U.S. salaried employees who were employed by a participating company, had attained age 21, and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65) and were based

95

Notes to Consolidated Financial Statements, Continued

upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Retirement Plan that accrued prior to January 1, 2013.

CommoLoCo Retirement Plan

The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our current and former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013.

Unfunded Defined Benefit Plans

We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004.

POSTRETIREMENT PLANS

Springleaf Retiree Medical and Life Insurance Plan

We provided postretirement medical care and life insurance benefits. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Life and dental benefits were closed to new participants. Postretirement medical and life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Medical benefits were contributory, while the life insurance benefits were non-contributory. Retiree medical contributions were based on the actual premium payments reduced by Company-provided credits. These retiree contributions were subject to adjustment annually. Other cost sharing features of the medical plan included deductibles, coinsurance, and Medicare coordination. On December 31, 2014, we terminated the Springleaf Retiree Medical and Life Insurance Plan, and we recorded a settlement gain and a curtailment gain of $4 million and $2 million, respectively, as a credit to salaries and benefit expenses.

CommoLoCo Retiree Life Insurance Plan

We provided postretirement life insurance benefits to eligible participants of CommoLoCo, Inc. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Postretirement life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Life insurance benefits were non-contributory. On February 28, 2015, the Retiree Group Life Insurance program was terminated.

401(K) PLANS

We sponsor voluntary savings plans for our U.S. employees and for our employees of CommoLoCo, Inc.

Springleaf Financial Services 401(k) Plan

The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2015, 2014, and 2013 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. We do not anticipate any changes to the Company’s matching contributions for 2016.

Effective January 1, 2013, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit

96

Notes to Consolidated Financial Statements, Continued

sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same.

The salaries and benefit expense associated with this plan was $5 million in 2015, $4 million in 2014, and $4 million in 2013.

CommoLoCo Thrift Plan

The CommoLoCo Thrift Plan provides for salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. The salaries and benefit expense associated with this plan for 2015, 2014, and 2013 was immaterial. We do not anticipate any changes to the Company’s matching contributions for 2016.

OBLIGATIONS AND FUNDED STATUS

The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities.

(dollars in millions)	Pension (a)									Postretirement (b)
At or for the Years Ended December 31,	2015			2014			2013			2014			2013
Projected benefit obligation, beginning of period	$	409		$	323		$	368		$	2		$	7
Interest cost	15			15			14			—			—
Actuarial loss (gain) (c)	(24		)	83			(47		)	—			(5		)
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Curtailment	—			—			—			(2		)	—
Projected benefit obligation, end of period	388			409			323			—			2
Fair value of plan assets, beginning of period	359			317			347			—			—
Actual return on plan assets, net of expenses	(15		)	54			(18		)	—			—
Company contributions	1			—			—			—			—
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Fair value of plan assets, end of period	333			359			317			—			—
Funded status, end of period	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Net amounts recognized in the consolidated balance sheet:
Other assets	$	—		$	—		$	7		$	—		$	—
Other liabilities	(55		)	(50		)	(13		)	—			(2		)
Total amounts recognized	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Pretax net gain (loss) recognized in accumulated other comprehensive income or loss	$	29		$	(19	)	$	26		$	—		$	4

(a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2015 and 2014.

(b) We do not currently fund postretirement benefits.

(c) We adopted new mortality tables in 2014, which increased the plan liabilities during 2014.

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Notes to Consolidated Financial Statements, Continued

The accumulated benefit obligation for U.S. pension benefit plans was $388 million at December 31, 2015 and $409 million at December 31, 2014.

Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows:

(dollars in millions)	PBO and ABO Exceeds Fair Value of Plan Assets
December 31,	2015		2014
Projected benefit obligation	$	388	$	409
Accumulated benefit obligation	388		409
Fair value of plan assets	333		359

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans:

(dollars in millions)	Pension									Postretirement
Years Ended December 31,	2015			2014			2013			2014			2013
Components of net periodic benefit cost:
Service cost	$	—		$	—		$	—		$	—		$	1
Interest cost	15			15			14			—			—
Expected return on assets	(19		)	(16		)	(15		)	—			—
Curtailment gain	—			—			—			(2		)	—
Settlement gain	—			—			—			(4		)	—
Net periodic benefit cost	(4		)	(1		)	(1		)	(6		)	1
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)	9			46			(13		)	—			(5		)
Net settlement gain	—			—			—			4			—
Total recognized in other comprehensive income or loss	9			46			(13		)	4			(5		)
Total recognized in net periodic benefit cost and other comprehensive income or loss	$	5		$	45		$	(14	)	$	(2	)	$	(4	)

We have made the following estimates relating to our combined defined benefit pension plans and our defined benefit postretirement plans:

• the estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be less than $1 million for our combined defined benefit pension plans;

• the estimated prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans; and

• the estimated amortization from accumulated other comprehensive income or loss for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be zero for our defined benefit postretirement plans.

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Notes to Consolidated Financial Statements, Continued

Assumptions

The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs:

	Pension				Postretirement
December 31,	2015		2014		2015		2014
Projected benefit obligation:
Discount rate	4.26	%	3.89	%	3.45	%	3.80	%
Rate of compensation increase	—		—		N/A *		N/A *
Net periodic benefit costs:
Discount rate	3.89	%	4.83	%	3.80	%	3.80	%
Expected long-term rate of return on plan assets	5.27	%	5.29	%	N/A *		N/A *
Rate of compensation increase (average)	—		—		N/A *		N/A *

* Not applicable

Discount Rate Methodology

The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2015 and an equivalent weighted average discount rate was derived that resulted in the same liability. This single discount rate for each plan was used.

Investment Strategy

The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class.

Allocation of Plan Assets

The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation.

At December 31, 2015, the actual asset allocation for the primary asset classes was 90% in fixed income securities, 9% in equity securities, and 1% in cash and cash equivalents. The 2016 target asset allocation for the primary asset classes is 88% in fixed income securities and 12% in equity securities. The actual allocation may differ from the target allocation at any particular point in time.

The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 5.7% for the CommoLoCo Retirement Plan for 2015. The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change.

Expected Cash Flows

Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess

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Notes to Consolidated Financial Statements, Continued

of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the IRC. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid.

The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2015 are as follows:

(dollars in millions)	Pension
2016	$	15
2017	15
2018	15
2019	15
2020	16
2021-2025	89

FAIR VALUE MEASUREMENTS — PLAN ASSETS

The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets.

The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

(dollars in millions)	Level 1		Level 2		Level 3		Total
December 31, 2015
Assets:
Cash and cash equivalents	$	3	$	—	$	—	$	3
Equity securities:
U.S. (a)	—		16		—		16
International (b)	—		15		—		15
Fixed income securities:
U.S. investment grade (c)	—		291		—		291
U.S. high yield (d)	—		8		—		8
Total	$	3	$	330	$	—	$	333
December 31, 2014
Assets:
Cash and cash equivalents	$	2	$	—	$	—	$	2
Equity securities:
U.S. (a)	—		19		—		19
International (b)	—		1		—		1
Fixed income securities:
U.S. investment grade (c)	—		335		—		335
U.S. high yield (d)	—		2		—		2
Total	$	2	$	357	$	—	$	359

(a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies.

(b) Includes investment mutual funds in companies in emerging and developed markets.

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Notes to Consolidated Financial Statements, Continued

(c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks.

22. Share-Based Compensation

OMNIBUS INCENTIVE PLAN

In 2013, OMH adopted the 2013 Omnibus Incentive Plan (the “Omnibus Plan”) under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. Under this plan, as of December 31, 2015, 11,105,064 shares of authorized common stock are reserved for issuance pursuant to grants approved by OMH’s Board of Directors. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”), stock appreciation rights (“SARs”), and other stock-based awards and cash awards. SFC participates in stock awards of OMH. Unless specifically noted, the following disclosures are based on all award activity of OMH.

Service-based Awards

In connection with the initial public offering on October 16, 2013 and subsequent to the offering, OMH has granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years or less and provide the holders the right to vote and to earn dividends during the vesting period that are subject to forfeiture if the shares do not vest. The fair value for restricted units and awards is generally the closing market price of OMH’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2015, 2014, and 2013 was $47.44, $25.65, and $17.00, respectively. The total fair value of service-based awards that vested during 2015 and 2014 was $7 million and $1 million, respectively. No service-based awards vested in 2013.

The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	1,352,865		$	17.91
Granted	1,115,662		47.44
Vested	(384,902	)	18.45
Forfeited	(74,201	)	24.65
Unvested at December 31, 2015	2,009,424		33.95		2.91

Performance-based Awards

During 2015 and 2014, OMH awarded performance-based RSUs (“PRSUs”) that may be earned based on the financial performance of OMH. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2016. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2016, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2016, 2017 and 2018; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the Form 10-K filing date that

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Notes to Consolidated Financial Statements, Continued

occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award.

Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and cancelled, and all expense recognized to that date is reversed.

The weighted average grant date fair value of performance-based awards issued in 2015 and 2014 was $34.45 and $25.78, respectively. No performance-based awards vested in 2015 or 2014.

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	583,459		$	25.84
Granted	16,091		34.45
Forfeited	(18,437	)	35.05
Unvested at December 31, 2015	581,113		25.79		2.59

In addition, two of our executives were granted 8.203125 RSUs on September 30, 2013, for which we recorded share-based compensation expense of $131 million. This grant was subsequently amended on October 8, 2013 to reduce the number of RSUs granted to the executives by 0.859375 RSUs and to grant these units to a certain management employee. No other terms of the grant were modified. As a result of the additional grant, we recognized $14 million in additional compensation expense in the fourth quarter of 2013. There was no additional compensation expense recorded for the modification of the grant to the executives, as the fair value of the modified award was less than the fair value of the original award immediately before the terms were modified. Therefore, total compensation expense recognized for the 8.203125 units was $145 million. These RSUs were converted into the right to receive 8.203125% of the outstanding shares of OMH common stock and were also subject to an equitable adjustment for the stock split that occurred on October 9, 2013. The adjusted number of shares of OMH common stock underlying these RSUs (8,203,125 shares) were delivered to the holders in October 2013 after the conversion. The weighted average grant date fair value of these units (after conversion and subsequent stock split) was $16.00 based on an equity valuation. The shares are fully vested; however, they generally cannot be sold or otherwise transferred for five years following the date of delivery, except to the extent necessary to satisfy certain tax obligations.

Total share-based compensation expense, net of forfeitures, for all stock-based awards totaled $2 million, $1 million, and $145 million, respectively, during 2015, 2014, and 2013. The total income tax benefit recognized for stock-based compensation was $1 million in 2015, less than $1 million in 2014, and $51 million in 2013. As of December 31, 2015, there was total unrecognized compensation expense of $4 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 2.9 years.

OMH Incentive Units

On October 9, 2013, certain executives of the Company received a grant of incentive units in the Initial Stockholder. In the fourth quarter of 2015, such executives surrendered a portion of their incentive units and certain additional executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are

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Notes to Consolidated Financial Statements, Continued

employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. These incentive units are subject to their continued employment with the Company and, in the case of the incentive units issued in 2015, the continued employment of both Jay Levine and John Anderson. These incentive units provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of our common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in the second quarter of 2015 related to the incentive units. No expense was recognized for these awards during 2014 or 2013.

23. Segment Information

Our segments coincide with how our businesses are managed. At December 31, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.”

Our segments are managed as follows:

Core Consumer Operations

• Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. Branch operations primarily conduct business in 27 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan.

• Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owns a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status.

Non-Core Portfolio

• Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. OMH used these proceeds to acquire OneMain.

The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance

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Notes to Consolidated Financial Statements, Continued

operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3, except as described below.

Due to the nature of the Fortress Acquisition, we have applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using “Segment Accounting Basis” (referred to as “historical accounting basis” in previous SEC filings), which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
	Prior to third quarter 2014
	The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt.

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Notes to Consolidated Financial Statements, Continued

Provision for finance receivable losses	Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt.
Salaries and benefits	Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Other operating expenses	Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Insurance policy benefits and claims	Directly correlated with a specific segment.

The “Segment to GAAP Adjustment” column in the following tables primarily consists of:

• interest income - the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables;

• interest expense - primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting;

• provision for finance receivable losses - the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis;

• other revenues - the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale and realized gains/losses associated with our investment portfolio; and

• other expenses - the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2015
Interest income	$	1,115	$	455	$	68		$	8		$	—		$	11		$	1,657
Interest expense	190		87		213			55			(5		)	127			667
Provision for finance receivable losses	255		68		(2		)	1			—			17			339
Net interest income (loss) after provision for finance receivable losses	670		300		(143		)	(48		)	5			(133		)	651
Other revenues	212		5		4			42			(5		)	(15		)	243
Other expenses	622		61		33			17			—			2			735
Income (loss) before provision for (benefit from) income taxes	260		244		(172		)	(23		)	—			(150		)	159
Income before provision for income taxes attributable to non-controlling interests	—		127		—			—			—			—			127
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	260	$	117	$	(172	)	$	(23	)	$	—		$	(150	)	$	32
Assets	$	5,632	$	1,784	$	711		$	4,119		$	—		$	(58	)	$	12,188

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Notes to Consolidated Financial Statements, Continued

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing			Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2014
Interest income	$	911	$	212		$	401		$	16		$	—		$	85		$	1,625
Interest expense	163		36			349			7			(5		)	133			683
Provision for finance receivable losses	200		36			128			7			—			(19		)	352
Net interest income (loss) after provision for finance receivable losses	548		140			(76		)	2			5			(29		)	590
Other revenues	215		(15		)	162			6			(5		)	382			745
Other expenses	523		30			91			10			—			3			657
Income (loss) before provision for (benefit from) income taxes	240		95			(5		)	(2		)	—			350			678
Income before provision for income taxes attributable to non-controlling interests	—		48			—			—			—			—			48
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	240	$	47		$	(5	)	$	(2	)	$	—		$	350		$	630
Assets *	$	4,218	2,536			$	3,665		$	555		$	—		$	24		$	10,998
At or for the Year Ended December 31, 2013
Interest income	$	721	$	—		$	690		$	45		$	—		$	181		$	1,637
Interest expense	149		—			539			15			—			140			843
Provision for finance receivable losses	117		—			255			—			—			(1		)	371
Net interest income after provision for finance receivable losses	455		—			(104		)	30			—			42			423
Other revenues	197		—			7			13			—			(56		)	161
Other expenses	448		—			84			174			—			3			709
Income (loss) before provision for (benefit from) income taxes	$	204	$	—		$	(181	)	$	(131	)	$	—		$	(17	)	$	(125	)
Assets *	$	3,999	$	—		$	8,487		$	611		$	—		$	(485	)	$	12,612

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified debt issuance costs of $29 million and $39 million as of December 31, 2014 and 2013, respectively, from other assets to long-term debt.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $217 million and $172 million at December 31, 2014 and 2013, respectively.

• See Note 3 for further information on the correction of the total asset segment disclosure error.

24. Fair Value Measurements

The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the

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Notes to Consolidated Financial Statements, Continued

accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements.

The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,340
Finance receivables held for sale	—		—		819		819		793
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,398
Finance receivables held for sale	—		—		209		209		202
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		11		—		11		11
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

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Notes to Consolidated Financial Statements, Continued

FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

108

Notes to Consolidated Financial Statements, Continued

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		592		8		600
Trading and other securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading and other securities (b)	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2014, which is carried at cost.

(b) The fair value of other securities totaled $5 million at December 31, 2014.

We had no transfers between Level 1 and Level 2 during December 31, 2015 and 2014.

109

Notes to Consolidated Financial Statements, Continued

The following table presents changes during 2015 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3		Transfers out of Level 3 (b)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	(4	)	$	—	$	(3	)	$	1

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2015, we transferred $3 million of CMBS out of Level 3 primarily related to the greater observability of pricing inputs.

The following table presents changes during 2014 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(9	)	$	—	$	—		$	4
CMBS	—		—		—		—			3		—			3
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(9		)	3		(1		)	7
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(9		)	3		(1		)	8
Trading and other securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		(6		)	—		(1		)	—
Total trading and other securities	7		—		—		(6		)	1		(2		)	—
Total	$	22	$	—	$	—	$	(15	)	$	4	$	(3	)	$	8

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2014, we transferred $3 million of CMBS available-for-sale securities and $1 million of RMBS other securities into Level 3 primarily related to the reduced observability of pricing inputs.

110

Notes to Consolidated Financial Statements, Continued

(c) During 2014, we transferred $1 million of CDO/ABS available-for-sale securities, $1 million of RMBS other securities, and $1 million of CDO/ABS trading and other securities out of Level 3 primarily related to the greater observability of pricing inputs.

We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table.

Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	665 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)

(a) At December 31, 2015 and 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us.

Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants.

111

Notes to Consolidated Financial Statements, Continued

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *								Impairment Charges
(dollars in millions)	Level 1		Level 2		Level 3		Total
At or for the Year Ended December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11	$	3
Commercial mortgage loans	—		—		8		8		(2		)
Total	$	—	$	—	$	19	$	19	$	1
At or for the Year Ended December 31, 2014
Assets
Finance receivables held for sale	$	—	$	—	$	202	$	202	$	7
Real estate owned	—		—		19		19		15
Commercial mortgage loans	—		—		11		11		(2		)
Total	$	—	$	—	$	232	$	232	$	20

* The fair value information presented in the table is as of the date the fair value adjustment was recorded.

In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell during 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets.

In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value during 2015 and 2014 and recorded the net impairments in investment revenues.

In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in our Real Estate segment to their fair value during 2014 and recorded the writedowns in other revenues.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table.

112

Notes to Consolidated Financial Statements, Continued

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Finance receivables held for sale	Income approach	National market conditions Operating performance	—	N/A *
Real estate owned	Market approach	Third-party valuation	N/A *	N/A *
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A *	N/A *

* Not applicable.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

We use the following methods and assumptions to estimate fair value.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value.

Mutual Funds

The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds.

Investment Securities

We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative.

The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be

113

Notes to Consolidated Financial Statements, Continued

realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

Finance Receivables Held for Sale

We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses.

Restricted Cash and Cash Equivalents

The carrying amount of restricted cash and cash equivalents approximates fair value.

Note Receivable from Parent

The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates.

Commercial Mortgage Loans

Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses which is based on independent third-party valuations.

Real Estate Owned

We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset.

Escrow Advance Receivable

The carrying amount of escrow advance receivable approximates fair value.

Receivables from Parent and Affiliates

The carrying amount of receivables from parent and affiliates approximates fair value.

Receivables Related to Sales of Real Estate Loans and Related Trust Assets

The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value.

Long-term Debt

We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt.

We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2015, we had no debt carried at fair value under the fair value option.

We estimate the fair values associated with variable rate revolving lines of credit to be equal to par.

114

Notes to Consolidated Financial Statements, Continued

Payables to Parent and Affiliates

The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature.

25. Subsequent Events

AMENDMENTS TO CONDUIT FACILITIES

On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, $298 million was outstanding under the notes.

On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million. As of February 24, 2016, $100 million was outstanding under the notes.

On February 24, 2016, we amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, no amounts were outstanding under the notes.

On February 24, 2016, we amended the note purchase agreement with the Whitford Brook 2014-VFN1 Trust to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12^th month following the end of the revolving period. As of February 24, 2016, $200 million was outstanding under the notes.

CALL OF 2013-B NOTES

On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million, which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption.

115

Notes to Consolidated Financial Statements, Continued

26. Selected Quarterly Financial Data (Unaudited)

Our selected quarterly financial data for 2015 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	430	$	422	$	406	$	399
Interest expense	167		171		171		158
Provision for finance receivable losses	109		78		73		79
Other revenues	81		49		59		54
Other expenses	198		182		186		169
Income before provision for (benefit from) income taxes	37		40		35		47
Provision for (benefit from) income taxes	4		5		—		9
Net income	33		35		35		38
Net income attributable to non-controlling interests	29		32		33		33
Net income attributable to Springleaf Finance Corporation	$	4	$	3	$	2	$	5

Our selected quarterly financial data for 2014 was as follows:

(dollars in millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
Interest income	$	403		$	431	$	389	$	402
Interest expense	157			172		172		182
Provision for finance receivable losses	87			85		80		100
Other revenues	(38		)	602		90		91
Other expenses	172			182		152		151
Income (loss) before provision for (benefit from) income taxes	(51		)	594		75		60
Provision for (benefit from) income taxes	(17		)	198		29		23
Net income (loss)	(34		)	396		46		37
Net income attributable to non-controlling interests	22			26		—		—
Net income (loss) attributable to Springleaf Finance Corporation	$	(56	)	$	370	$	46	$	37

116

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2015
Document and Entity Information
Entity Registrant Name	SPRINGLEAF FINANCE CORP
Entity Central Index Key	0000025598
Document Type	8-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 321	$ 749
Investment securities	604	2,922
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $3.6 billion in 2015 and $1.9 billion in 2014)	4,300	3,800
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.7 billion in 2015 and $2.1 billion in 2014)	1,703	2,091
Real estate loans	538	639
Retail sales finance	23	48
Net finance receivables	6,564	6,578
Unearned insurance premium and claim reserves	(250)	(217)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $128 million in 2015 and $72 million in 2014)	(224)	(180)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	6,090	6,181
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015)	793	202
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $282 million in 2015 and $210 million in 2014)	295	218
Other assets	281	475
Total assets	12,188	10,998
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)	9,582	8,356
Insurance claims and policyholder liabilities	230	229
Deferred and accrued taxes	128	177
Other liabilities	216	259
Total liabilities	10,156	9,021
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 shares issued and outstanding at December 31, 2015 and 2014	5	5
Additional paid-in capital	789	771
Accumulated other comprehensive income (loss)	(24)	3
Retained earnings	1,341	1,327
Springleaf Finance Corporation shareholder’s equity	2,111	2,106
Non-controlling interests	(79)	(129)
Total shareholder’s equity	2,032	1,977
Total liabilities and shareholder’s equity	$ 12,188	$ 10,998

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Personal loans of consolidated VIEs	$ 4,300		$ 3,800
SpringCastle Portfolio	1,703		2,091
Allowance for finance receivable losses	224		180	$ 426	$ 259
Finance receivables held for sale	793		202
Restricted cash and cash equivalents	295		218
Long-term debt	$ 9,582		$ 8,356
Common stock, par value (in USD per share)	$ 0.50		$ 0.50
Common stock, shares authorized	25,000,000		25,000,000
Common stock, shares issued	10,160,020		10,160,020
Common stock, shares outstanding	10,160,020		10,160,020
Consolidated VIEs
Allowance for finance receivable losses	$ 128		$ 72
Finance receivables held for sale	435		0
Restricted cash and cash equivalents	282		210
Long-term debt	5,513		3,630
Personal Loans
Allowance for finance receivable losses	173		130	94	67
Finance receivables held for sale		$ 608
Personal Loans | Consolidated VIEs
Personal loans of consolidated VIEs	3,621		1,853
SpringCastle Portfolio
Allowance for finance receivable losses	4		3	$ 0	$ 0
SpringCastle Portfolio | Consolidated VIEs
SpringCastle Portfolio	$ 1,703		$ 2,091

XML

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Finance charges									$ 1,597	$ 1,564	$ 1,637
Finance receivables held for sale originated as held for investment									60	61	0
Total interest income	$ 430	$ 422	$ 406	$ 399	$ 403	$ 431	$ 389	$ 402	1,657	1,625	1,637
Interest expense	167	171	171	158	157	172	172	182	667	683	843
Net interest income									990	942	794
Provision for finance receivable losses	109	78	73	79	87	85	80	100	339	352	371
Net interest income after provision for finance receivable losses									651	590	423
Other revenues:
Insurance									158	166	148
Investment									49	39	34
Net loss on repurchases and repayments of debt									0	(66)	(42)
Net gain on fair value adjustments on debt									0	1	0
Net gain on sales of real estate loans and related trust assets									0	626	0
Other									36	(21)	21
Total other revenues	81	49	59	54	(38)	602	90	91	243	745	161
Operating expenses:
Salaries and benefits									364	321	447
Other operating expenses									299	261	197
Insurance policy benefits and claims									72	75	65
Total other expenses	198	182	186	169	172	182	152	151	735	657	709
Income (loss) before provision for (benefit from) income taxes	37	40	35	47	(51)	594	75	60	159	678	(125)
Provision for (benefit from) income taxes	4	5	0	9	(17)	198	29	23	18	233	(49)
Net income (loss)	33	35	35	38	(34)	396	46	37	141	445	(76)
Net income attributable to non-controlling interests	29	32	33	33	22	26	0	0	127	48	0
Net income attributable to Springleaf Finance Corporation	$ 4	$ 3	$ 2	$ 5	$ (56)	$ 370	$ 46	$ 37	$ 14	$ 397	$ (76)

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 141	$ 445	$ (76)
Other comprehensive income (loss):
Net unrealized gains (losses) on non-credit impaired available-for-sale securities	(17)	20	(12)
Retirement plan liabilities adjustments	(9)	(50)	18
Foreign currency translation adjustments	0	0	(1)
Income tax effect:
Net unrealized (gains) losses on non-credit impaired available-for-sale securities	5	(7)	4
Retirement plan liabilities adjustments	3	17	(6)
Other comprehensive income (loss), net of tax, before reclassification adjustments	(18)	(20)	3
Reclassification adjustments included in net income (loss):
Net realized gains on available-for-sale securities	(14)	(8)	(2)
Income tax effect:
Net realized gains on available-for-sale securities	5	3	1
Reclassification adjustments included in net income (loss), net of tax	(9)	(5)	(1)
Other comprehensive income (loss), net of tax	(27)	(25)	2
Comprehensive income (loss)	114	420	(74)
Comprehensive income attributable to non-controlling interests	127	48	0
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$ (13)	$ 372	$ (74)

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Incentive Units	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Incentive Units	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Springleaf Finance Corporation Shareholder’s Equity	Springleaf Finance Corporation Shareholder’s Equity Incentive Units	Non-controlling Interests
Balance, beginning of the period at Dec. 31, 2012	$ 1,293		$ 5	$ 256		$ 26	$ 1,006	$ 1,293		$ 0
Common shares issued and outstanding
Capital contributions from parent	21			21				21
Share-based compensation expense, net of forfeitures	145			145				145
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	2					2		2		0
Net income (loss)	(76)						(76)	(76)
Balance, end of period at Dec. 31, 2013	1,385		5	422		28	930	1,385		0
Common shares issued and outstanding
Capital contributions from parent	22			22				22
Capital contribution of capital stock of Springleaf Acquisitions Corporation	776			326				326		450
Share-based compensation expense, net of forfeitures	1			1				1
Distributions declared to joint venture partners	(627)									(627)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(25)					(25)	0	(25)		0
Net income (loss)	445						397	397		48
Balance, end of period at Dec. 31, 2014	1,977		5	771		3	1,327	2,106		(129)
Common shares issued and outstanding
Non-cash incentive compensation from Initial Stockholder		$ 15			$ 15				$ 15
Share-based compensation expense, net of forfeitures	2			2				2
Excess tax benefit from share-based compensation	1			1				1
Distributions declared to joint venture partners	(77)									(77)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(27)					(27)	0	(27)		0
Net income (loss)	141						14	14		127
Balance, end of period at Dec. 31, 2015	$ 2,032		$ 5	$ 789		$ (24)	$ 1,341	$ 2,111		$ (79)

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net income (loss)	$ 141	$ 445	$ (76)
Reconciling adjustments:
Provision for finance receivable losses	339	352	371
Depreciation and amortization	92	112	82
Deferred income tax charge (benefit)	(50)	(12)	(114)
Non-cash incentive compensation from Initial Stockholder	15	0	0
Non-cash incentive compensation from Initial Stockholder	0	(1)	0
Net gain on sales of real estate loans and related trust assets	0	(626)	0
Net loss on repurchases and repayments of debt	0	66	42
Share-based compensation expense, net of forfeitures	2	1	145
Other	(3)	17	21
Cash flows due to changes in:
Other assets and other liabilities	(54)	(9)	2
Insurance claims and policyholder liabilities	34	51	29
Taxes receivable and payable	111	(127)	(50)
Accrued interest and finance charges	(23)	(39)	(41)
Restricted cash and cash equivalents not reinvested	0	5	(4)
Other, net	(1)	1	(1)
Net cash provided by operating activities	603	236	406
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(799)	(88)	379
Proceeds on sales of finance receivables held for sale originated as held for investment	78	3,789	15
Cash advances on intercompany notes receivables	(3,720)	(128)	0
Principal collections on intercompany notes receivables	189	44	0
Available-for-sale securities purchased	(476)	(348)	(196)
Trading and other securities purchased	(1,474)	(2,930)	(10)
Available-for-sale securities called, sold, and matured	470	269	296
Trading and other securities called, sold, and matured	3,779	646	8
Change in restricted cash and cash equivalents	0	0	370
Change in restricted cash and cash equivalents	(72)	93	(241)
Proceeds from sale of real estate owned	14	58	108
Other, net	(12)	0	(3)
Net cash provided by (used for) investing activities	(2,023)	1,405	726
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	3,028	3,557	3,765
Repayments of long-term debt	(1,960)	(4,218)	(5,868)
Change in notes payable to parent and affiliates	0	0	(31)
Distributions to joint venture partners	(77)	(627)	0
Excess tax benefit from restricted stock units	1	0	0
Capital contributions from parent	0	22	21
Net cash provided by (used for) financing activities	992	(1,266)	(2,113)
Effect of exchange rate changes on cash and cash equivalents	0	(1)	(1)
Net change in cash and cash equivalents	(428)	374	(982)
Cash and cash equivalents at beginning of period	749	375	1,357
Cash and cash equivalents at end of period	321	749	375
Supplemental cash flow information
Interest paid	(511)	(504)	(652)
Income taxes received (paid)	45	(369)	(112)
Supplemental non-cash activities
Transfer of finance receivables to real estate owned	11	49	93
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	617	6,986	18
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	0	2,446	0
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation	0	1,670	0
Net unsettled investment security purchases	$ 0	$ (7)	$ 0

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Nature of Operations

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). SFI is a wholly owned subsidiary of OneMain Holdings, Inc. (“OMH”), formally Springleaf Holdings, Inc.

At December 31, 2015, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”).

SFC is a financial services holding company with subsidiaries engaged in the consumer finance and insurance businesses. At December 31, 2015, we had $6.6 billion of net finance receivables due from approximately 1.2 million customer accounts. Our network of over 800 branch offices in 27 states, as of December 31, 2015, is complemented by our centralized operations, which provides support to our branch operations. At December 31, 2015, we had approximately 3,500 employees.

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Significant Transactions

12 Months Ended

Dec. 31, 2015

Significant Transactions [Abstract]

Significant Transactions

Significant Transactions

OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDING, LLC

On November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC (“Independence”), completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for $4.5 billion in cash (the “OneMain Acquisition”). In connection with the OneMain Acquisition, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (previously defined in Note 1 as “OMH”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. OMFH is not a subsidiary of SFC and SFC is not a subsidiary of OMFH.

On November 12, 2015, in connection with the closing of the OneMain Acquisition, SFC’s wholly owned subsidiary, Springleaf Financial Cash Services, Inc. (“CSI”), entered into a revolving demand note (the “Independence Demand Note”) with Independence, whereby CSI provided Independence with $3.4 billion cash pursuant to the terms of the Independence Demand Note. See Note 11 for further information regarding the Independence Demand Note and other related party agreements with OMFH.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC (collectively, the “Branch Sellers”) entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across eleven states as a condition for approval of the OneMain Acquisition. The Settlement Agreement requires the Branch Sellers to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. In connection with the Settlement Agreement, the U.S. District of Court for the District of Columbia appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement.

LENDMARK SALE

On November 12, 2015, the Branch Sellers entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”), to sell 127 branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103%, plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that has accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark is unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, we transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. At December 31, 2015, the personal loans held for sale totaled approximately $617 million, primarily due to originations, net of charge-offs of personal loans in these branches during the fourth quarter of 2015. These branches represent 15% of the branches and approximately 13% of the personal loans held for investment and held for sale of the Company as of December 31, 2015.

The closing of the Lendmark Sale is subject to various conditions. There can be no assurance that the Lendmark Sale will close, or if it does, when the closing will occur. In the event that the Branch Sellers have not completed the sale of these branches within 120 days after November 13, 2015, as such time period may be extended pursuant to the Settlement Agreement, the court may appoint a divestiture trustee to conduct the sale of such assets. In this case, the divestiture trustee would have the power to accomplish the divestiture of such assets to an acquirer or acquirers acceptable to the DOJ, and the Branch Sellers would have no right to object to a sale by the divestiture trustee on any ground other than the divestiture trustee’s malfeasance. Accordingly, the asset divesture could occur on terms less favorable to the Branch Sellers than the Lendmark Sale.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

BASIS OF PRESENTATION

We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated balance sheet and consolidated cash flow statement.

To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 4 for further information on the adoption of this ASU.

CHANGE IN ACCOUNTING POLICY

Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers.

See “Accounting Policies - Purchased Credit Impaired Finance Receivables” for our policy for derecognition of PCI loans following the change described above.

We have retrospectively applied this change in accounting policy. The effect of this change in accounting policy on income (loss) before provision for (benefit from) income taxes and net income (loss) attributable to SFC, and the cumulative effect of this change in accounting policy on shareholder’s equity attributable to SFC for the following prior periods are included in the table below.

(dollars in millions)	As Reported			As Adjusted
Income (loss) before provision for (benefit from) income taxes
Year ended December 31, 2013	$	(136	)	$	(125	)
Year ended December 31, 2014	755			678
Year ended December 31, 2015	144			159
Net income (loss) attributable to SFC
Year ended December 31, 2013	$	(83	)	$	(76	)
Year ended December 31, 2014	448			397
Year ended December 31, 2015	9			14
Shareholder’s equity attributable to SFC
January 1, 2014	$	1,328		$	1,385
January 1, 2015	2,069			2,106
January 1, 2016	2,069			2,111

Revised Condensed Consolidated Balance Sheet

	December 31, 2015						December 31, 2014
(dollars in millions)	As Reported *			As Adjusted			As Reported			As Adjusted
Assets
Cash and cash equivalents	$	321		$	321		$	749		$	749
Investment securities	604			604			2,922			2,922
Net finance receivables:
Personal loans	4,300			4,300			3,800			3,800
SpringCastle Portfolio	1,576			1,703			1,979			2,091
Real estate loans	524			538			625			639
Retail sales finance	23			23			48			48
Net finance receivables	6,423			6,564			6,452			6,578
Unearned insurance premium and claim reserves	(250		)	(250		)	(217		)	(217		)
Allowance for finance receivable losses	(219		)	(224		)	(174		)	(180		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	5,954			6,090			6,061			6,181
Finance receivables held for sale	796			793			205			202
Notes receivable from parent and affiliates	3,804			3,804			251			251
Restricted cash and cash equivalents	295			295			218			218
Other assets	281			281			474			475
Total assets	$	12,055		$	12,188		$	10,880		$	10,998
Liabilities and Shareholder’s Equity
Long-term debt	$	9,582		$	9,582		$	8,356		$	8,356
Insurance claims and policyholder liabilities	230			230			229			229
Deferred and accrued taxes	103			128			159			177
Other liabilities	217			216			255			259
Total liabilities	10,132			10,156			8,999			9,021
Shareholder’s equity:
Common stock	5			5			5			5
Additional paid-in capital	758			789			740			771
Accumulated other comprehensive income (loss)	(24		)	(24		)	3			3
Retained earnings	1,330			1,341			1,321			1,327
Springleaf Finance Corporation shareholder’s equity	2,069			2,111			2,069			2,106
Non-controlling interests	(146		)	(79		)	(188		)	(129		)
Total shareholder’s equity	1,923			2,032			1,881			1,977
Total liabilities and shareholder’s equity	$	12,055		$	12,188		$	10,880		$	10,998

* As reported in our Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated balance sheet as of December 31, 2015, has been revised in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

Revised Condensed Consolidated Statements of Operations

(dollars in millions)	Year Ended December 31, 2015				Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported		As Adjusted		As Reported			As Adjusted			As Reported			As Adjusted
Interest income:
Finance charges	$	1,604	$	1,597	$	1,574		$	1,564		$	1,648		$	1,637
Finance receivables held for sale originated as held for investment	61		60		60			61			—			—
Total interest income	1,665		1,657		1,634			1,625			1,648			1,637
Interest expense	667		667		683			683			843			843
Net interest income	998		990		951			942			805			794
Provision for finance receivable losses	361		339		368			352			394			371
Net interest income after provision for finance receivable losses	637		651		583			590			411			423
Other revenues:
Insurance	158		158		166			166			148			148
Investment	49		49		39			39			34			34
Net loss on repurchases and repayments of debt	—		—		(66		)	(66		)	(42		)	(42		)
Net gain on fair value adjustments on debt	—		—		1			1			—			—
Net gain on sales of real estate loans and related trust assets	—		—		702			626			—			—
Other	35		36		(13		)	(21		)	22			21
Total other revenues	242		243		829			745			162			161
Other expenses:
Operating expenses:
Salaries and benefits	364		364		321			321			447			447
Other operating expenses	299		299		261			261			197			197
Insurance policy benefits and claims	72		72		75			75			65			65
Total other expenses	735		735		657			657			709			709
Income (loss) before provision for (benefit from) income taxes	144		159		755			678			(136		)	(125		)
Provision for (benefit from) income taxes	15		18		263			233			(53		)	(49		)
Net income (loss)	129		141		492			445			(83		)	(76		)
Net income attributable to non-controlling interests	120		127		44			48			—			—
Net income (loss) attributable to Springleaf Finance Corporation	$	9	$	14	$	448		$	397		$	(83	)	$	(76	)

Revised Condensed Consolidated Statement of Cash Flows

(dollars in millions)	Year Ended December 31, 2015						Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported			As Adjusted			As Reported			As Adjusted			As Reported			As Adjusted
Cash flows from operating activities
Net income (loss)	$	129		$	141		$	492		$	445		$	(83	)	$	(76	)
Reconciling adjustments:
Provision for finance receivable losses	361			339			368			352			394			371
Depreciation and amortization	84			92			109			112			72			82
Deferred income tax charge (benefit)	(53		)	(50		)	18			(12		)	(118		)	(114		)
Non-cash incentive compensation from Initial Stockholder	15			15			—			—			—			—
Net gain on fair value adjustments on debt	—			—			(1		)	(1		)	—			—
Net gain on sales of real estate loans and related trust assets	—			—			(702		)	(626		)	—			—
Net loss on repurchases and repayments of debt	—			—			66			66			42			42
Share-based compensation expense, net of forfeitures	2			2			1			1			145			145
Other	(1		)	(3		)	9			17			19			21
Cash flows due to changes in:
Other assets and other liabilities	(54		)	(54		)	(9		)	(9		)	2			2
Insurance claims and policyholder liabilities	34			34			51			51			29			29
Taxes receivable and payable	111			111			(127		)	(127		)	(50		)	(50		)
Accrued interest and finance charges	(23		)	(23		)	(39		)	(39		)	(41		)	(41		)
Restricted cash and cash equivalents not reinvested	—			—			5			5			(4		)	(4		)
Other, net	(1		)	(1		)	1			1			(1		)	(1		)
Net cash provided by operating activities	604			603			242			236			406			406
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(799		)	(799		)	(94		)	(88		)	379			379
Proceeds on sales of finance receivables held for sale originated as held for investment	78			78			3,789			3,789			15			15
Cash advances on intercompany notes receivables	(3,720		)	(3,720		)	(128		)	(128		)	—			—
Principal collections on intercompany notes receivables	189			189			44			44			—			—
Available-for-sale securities purchased	(476		)	(476		)	(348		)	(348		)	(196		)	(196		)
Trading and other securities purchased	(1,474		)	(1,474		)	(2,930		)	(2,930		)	(10		)	(10		)
Available-for-sale securities called, sold, and matured	470			470			269			269			296			296
Trading and other securities called, sold, and matured	3,779			3,779			646			646			8			8
Change in notes receivable from parent and affiliate	—			—			—			—			370			370
Change in restricted cash and cash equivalents	(72		)	(72		)	93			93			(241		)	(241		)
Proceeds from sale of real estate owned	14			14			58			58			108			108
Other, net	(12		)	(12		)	—			—			(3		)	(3		)
Net cash provided by (used for) investing activities	(2,023		)	(2,023		)	1,399			1,405			726			726
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	3,028			3,028			3,557			3,557			3,765			3,765
Repayments of long-term debt	(1,960		)	(1,960		)	(4,218		)	(4,218		)	(5,868		)	(5,868		)
Change in notes payable to parent and affiliates	—			—			—			—			(31		)	(31		)
Distributions to joint venture partners	(78		)	(77		)	(627		)	(627		)	—			—
Excess tax benefit from share-based compensation	1			1			—			—			—			—
Capital contribution from parent	—			—			22			22			21			21
Net cash provided by (used for) financing activities	991			992			(1,266		)	(1,266		)	(2,113		)	(2,113		)

Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	(1		)	(1		)	(1		)
Net change in cash and cash equivalents	(428		)	(428		)	374			374			(982		)	(982		)
Cash and cash equivalents at beginning of period	749			749			375			375			1,357			1,357
Cash and cash equivalents at end of period	$	321		$	321		$	749		$	749		$	375		$	375

We have also adjusted the applicable prior period amounts in the Notes to the Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 herein to reflect the impact of this change in accounting policy.

ACCOUNTING POLICIES

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

Finance Receivables

Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables.

We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. A significant portion of insurance claims and policyholder liabilities originate from the finance receivables. Historically, our policy has been to report them as liabilities and not net them against finance receivables; however, during the fourth quarter of 2015, we changed our presentation of unearned premiums and certain unpaid claim liabilities in the consolidated balance sheets as a reduction to net finance receivables. We believe this presentation is preferable as it aligns more closely with the presentation of these balances with our peers. We retrospectively applied this change in presentation in our consolidated balance sheets as of December 31, 2014 to ensure comparability across reporting periods. Similarly we will change comparable prior periods in our Forms 10-Q which we plan to file in 2016. As this is a change in balance sheet presentation only, there is no effect on net income (loss) or net income (loss) attributable to SFC.

Finance Receivable Revenue Recognition

We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method.

We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the loans acquired through a joint venture in which we own a 47% equity interest (the “SpringCastle Portfolio”), and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges.

For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized.

We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount.

We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables.

Purchased Credit Impaired Finance Receivables

Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers.

Our policy for derecognition of PCI loans following the change described above is presented below:

As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date.

We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield.

Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables.

We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount. Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool.

Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment.

We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following:

• prior finance receivable loss and delinquency experience;

• the composition of our finance receivable portfolio; and

• current economic conditions, including the levels of unemployment and personal bankruptcies.

We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses.

Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses.

We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due.

To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off.

We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit.

For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies.

For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices (one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies.

Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies.

The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses.

We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates.

Finance Receivables Held for Sale

Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the Consolidated Statements of Operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues.

When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables.

Real Estate Owned

We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date.

We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred.

Reserve for Sales Recourse Obligations

When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues.

Other Intangible Assets

At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the insurance licenses and certain domain names, which we determined to have indefinite lives.

For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value.

For indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate.

Insurance Premiums

We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period.

We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations.

We recognize commissions on ancillary products as other revenue when earned.

We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Policy and Claim Reserves

Policy reserves for credit life, credit disability, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed.

We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities.

Acquisition Costs

We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured.

Investment Securities

We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets.

Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues.

We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability.

Impairments on Investment Securities

Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present:

• we intend to sell the security;

• it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or

• we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security).

If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date.

In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines.

If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred.

If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss.

Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income.

We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary.

Investment Revenue Recognition

We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues.

Variable Interest Entities

An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances.

Other Invested Assets

Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets.

Cash and Cash Equivalents

We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents.

We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts.

Restricted Cash and Cash Equivalents

We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents.

Long-term Debt

We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense.

Income Taxes

We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse.

We are included in the consolidated U.S. federal and state income tax returns of OneMain Holdings, Inc., our ultimate parent company, where applicable. The tax provision and current and deferred tax balances have been presented on a separate return methodology as if we were a separate filer, with modification. ASC Topic 740 requires the method of accounting to be systematic, rational, and consistent within the broad principles of ASC Topic 740. We have modified our method of accounting such that our net operating losses and capital losses, if applicable, are considered realized when those net operating losses and/or capital losses are utilized by our parent company or other members of the consolidated group.

Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including:

• the nature, frequency, and severity of current and cumulative financial reporting losses;

• the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences;

• the carryforward periods for the net operating and capital loss carryforwards;

• the sources and timing of future taxable income; and

• tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts.

We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset.

We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority.

Derivative Financial Instruments

Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows.

We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties.

Benefit Plans

We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss.

Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses.

Share-based Compensation Plans

We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period.

Fair Value Measurements

Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models.

Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities.

We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments.

We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24.

In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period.

Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management.

PRIOR PERIOD REVISIONS

During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million and decreased provision for income taxes by $3 million. The adjustment was not material to our results of operations for 2015.

During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements. However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 24 of this report. This presentation error was not material to any previously issued financial statements.

After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated.

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Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Push-down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on push-down accounting from the Accounting Standards Codification (“ASC”). The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own push-down accounting guidance in November 2014. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of December 31, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of the adoption the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of the adoption of this ASU on our consolidated financial statements.

Balance Sheet Classification of Deferred Taxes

In November of 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation and requires all deferred tax assets (“DTAs”) and liabilities (“DTLs”), along with related valuation allowances, to be classified as noncurrent. In essence, each jurisdiction will have only one net noncurrent DTA/DTL. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning December 15, 2016. Early adoption is permitted and may be applied either prospectively or retrospectively. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

We do not believe that any other accounting pronouncement issued during 2015, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

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Finance Receivables

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Finance Receivables

Finance Receivables

Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below:

• Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of two to five years. At December 31, 2015, $2.4 billion of personal loans, or 56%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 44%, were secured by consumer household goods or other items of personal property or were unsecured, compared to $1.9 billion of personal loans, or 50%, secured by collateral consisting of titled personal property and $1.9 billion, or 50%, secured by consumer household goods or other items of personal property or unsecured at December 31, 2014.

• SpringCastle Portfolio — includes unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans.

• Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At December 31, 2015, $207 million of real estate loans, or 38%, were secured by first mortgages and $331 million, or 62%, were secured by second mortgages, compared to $230 million of real estate loans, or 36%, secured by first mortgages and $409 million, or 64%, secured by second mortgages at December 31, 2014. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans are in a liquidating status.

• Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status.

Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
December 31, 2015
Gross receivables *	$	5,028		$	1,672	$	534		$	25		$	7,259
Unearned finance charges and points and fees	(833		)	—		—			(2		)	(835		)
Accrued finance charges	60			31		4			—			95
Deferred origination costs	45			—		—			—			45
Total	$	4,300		$	1,703	$	538		$	23		$	6,564
December 31, 2014
Gross receivables *	$	4,462		$	2,053	$	635		$	52		$	7,202
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	2,091	$	639		$	48		$	6,578

* Gross receivables are defined as follows:

• Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Included in the table above are finance receivables associated with securitizations that remain on our balance sheet. At December 31, 2015 and December 31, 2014, the carrying values of these finance receivables totaled $3.6 billion and $1.9 billion, respectively, for our personal loans and $1.7 billion and $2.1 billion, respectively, for our SpringCastle Portfolio loans.

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)
December 31,	2015		2014
Personal loans	$	2	$	1
SpringCastle Portfolio	365		354
Real estate loans	30		31
Total	$	397	$	386

Unused lines of credit on our personal loans can be suspended if one of the following occurs: (i) the value of the collateral declines significantly; (ii) we believe the borrower will be unable to fulfill the repayment obligations; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (i) the value of the real estate declines significantly below the property’s initial appraised value; (ii) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion. Accordingly, no reserve has been recorded for the unused lines of credit.

GEOGRAPHIC DIVERSIFICATION

Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. However, the unemployment and housing market stresses in the U.S. have been national in scope and not limited to a particular region. The largest concentrations of net finance receivables were as follows:

December 31,	2015				2014 *
(dollars in millions)	Amount		Percent		Amount		Percent
North Carolina	$	593	9	%	$	645	10	%
Illinois	468		7		414		6
California	429		7		540		8
Indiana	403		6		349		5
Pennsylvania	375		6		393		6
Ohio	371		6		394		6
Florida	345		5		328		5
Virginia	334		5		351		5
Other	3,246		49		3,164		49
Total	$	6,564	100	%	$	6,578	100	%

* December 31, 2014 concentrations of net finance receivables are presented in the order of December 31, 2015 state concentrations.

CREDIT QUALITY INDICATORS

We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators.

We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges.

Delinquent Finance Receivables

We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time.

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Net finance receivables: *
60-89 days past due	$	49	$	26	$	19	$	—	$	94
90-119 days past due	41		16		3		—		60
120-149 days past due	34		12		2		1		49
150-179 days past due	31		11		2		—		44
180 days or more past due	3		1		13		—		17
Total delinquent finance receivables	158		66		39		1		264
Current	4,077		1,588		486		22		6,173
30-59 days past due	65		49		13		—		127
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Net finance receivables: *
60-89 days past due	$	36	$	34	$	13	$	1	$	84
90-119 days past due	30		21		9		—		60
120-149 days past due	24		17		5		1		47
150-179 days past due	21		16		4		—		41
180 days or more past due	2		2		13		—		17
Total delinquent finance receivables	113		90		44		2		249
Current	3,632		1,937		577		45		6,191
30-59 days past due	55		64		18		1		138
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

* Purchased credit impaired finance receivables are accounted for on a pool basis. For purposes of allocating the pool carrying amount to individual finance receivables, the Company applied the ratio of the carrying value to the gross receivable balance of each pool in developing the above table. Finance receivables greater than 180 days delinquent within a PCI pool are not ascribed any carrying value and are not used in deriving the aforementioned ratio.

Nonperforming Finance Receivables

We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss.

Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Performing	$	4,191	$	1,663	$	518	$	22	$	6,394
Nonperforming	109		40		20		1		170
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Performing	$	3,723	$	2,035	$	608	$	47	$	6,413
Nonperforming	77		56		31		1		165
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transactions:

• SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC — on July 31, 2014 (the “SAC Capital Contribution”), SFC acquired a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), certain of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013.

• Fortress Acquisition — we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value.

We report the carrying amount of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below.

At December 31, 2015 and December 31, 2014, finance receivables held for sale totaled $793 million and $202 million, respectively. See Note 7 for further information on our finance receivables held for sale, which consist of certain of our personal loans and non-core real estate loans. Finance receivables held for sale include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below.

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
December 31, 2015
Carrying amount, net of allowance	$	350	$	89	$	439
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		12		12
December 31, 2014
Carrying amount, net of allowance	$	452	$	105	$	557
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		11		11

* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2015		2014
Carrying amount	$	59	$	72
Outstanding balance	89		99

The allowance for purchased credit impaired finance receivable losses at December 31, 2015 and 2014, reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows.

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Year Ended December 31, 2015
Balance at beginning of period	$	452		$	54		$	506
Accretion (a)	(77		)	(8		)	(85		)
Reclassifications from nonaccretable difference (b)	—			20			20
Balance at end of period	$	375		$	66		$	441
Year Ended December 31, 2014
Balance at beginning of period	$	—		$	768		$	768
Accretable yield for SpringCastle Portfolio contributed to SFC	366			—			366
Accretion (a)	(37		)	(75		)	(112		)
Reclassifications from nonaccretable difference (b)	123			19			142
Transfers due to finance receivables sold	—			(658		)	(658		)
Balance at end of period	$	452		$	54		$	506
Year Ended December 31, 2013
Balance at beginning of period	$	—		$	624		$	624
Accretion	—			(117		)	(117		)
Reclassifications from nonaccretable difference (b)	—			261			261
Balance at end of period	$	—		$	768		$	768

(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014
Accretion	$	6	$	13

(b) Reclassifications from nonaccretable difference represents the increases in accretion resulting from higher estimated undiscounted cash flows.

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

We have no commitments to lend additional funds on our TDR finance receivables.

TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR average net receivables	$	29	$	12	$	198	$	239
TDR finance charges recognized	3		1		11		15
Year Ended December 31, 2014
TDR average net receivables (b)	$	17	$	5	$	951	$	973
TDR finance charges recognized	2		1		47		50
Year Ended December 31, 2013
TDR average net receivables	$	15	$	—	$	1,116	$	1,131
TDR finance charges recognized	1		—		63		64

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
TDR average net receivables *	$	2	$	91	$	93
TDR finance charges recognized	—		5		5
Year Ended December 31, 2014
TDR average net receivables **	$	—	$	248	$	248
TDR finance charges recognized	—		4		4

* TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

(b) TDR SpringCastle Portfolio loans average net receivables for the year ended December 31, 2014 reflect a five-month average since the SAC Capital Contribution occurred on July 31, 2014.

The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months.

Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	33	$	7	$	21	$	61
Post-modification TDR net finance receivables:
Rate reduction	$	15	$	6	$	17	$	38
Other (b)	12		—		5		17
Total post-modification TDR net finance receivables	$	27	$	6	$	22	$	55
Number of TDR accounts	6,515		721		385		7,621
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	18	$	4	$	213	$	235
Post-modification TDR net finance receivables:
Rate reduction	$	10	$	4	$	157	$	171
Other (b)	6		—		46		52
Total post-modification TDR net finance receivables	$	16	$	4	$	203	$	223
Number of TDR accounts	4,206		468		2,374		7,048
Year Ended December 31, 2013
Pre-modification TDR net finance receivables	$	15	$	—	$	573	$	588
Post-modification TDR net finance receivables:
Rate reduction	$	8	$	—	$	543	$	551
Other (b)	4		—		50		54
Total post-modification TDR net finance receivables	$	12	$	—	$	593	$	605
Number of TDR accounts	3,240		—		7,085		10,325

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	1	$	6	$	7
Post-modification TDR net finance receivables	$	1	$	7	$	8
Number of TDR accounts	162		113		275
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		94		94

(b) “Other” modifications include extension of term and forgiveness of principal or interest.

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR net finance receivables (b)	$	5	$	2	$	3	$	10
Number of TDR accounts	1,221		147		46		1,414
Year Ended December 31, 2014
TDR net finance receivables (b)	$	1	$	1	$	33	$	35
Number of TDR accounts	141		53		524		718
Year Ended December 31, 2013
TDR net finance receivables (b)	$	1	$	—	$	69	$	70
Number of TDR accounts	355		—		928		1,283

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17
Year Ended December 31, 2014
TDR net finance receivables	$	3
Number of TDR accounts	49

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

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Allowance for Finance Receivable Losses

12 Months Ended

Dec. 31, 2015

Loans and Leases Receivable, Allowance [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, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	257			67			13			2			339
Charge-offs	(250		)	(78		)	(18		)	(3		)	(349		)
Recoveries	37			12			5			1			55
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	173		$	4		$	46		$	1		$	224
Year Ended December 31, 2014
Balance at beginning of period	$	94		$	—		$	330		$	2		$	426
Provision for finance receivable losses	203			36			110			3			352
Charge-offs (b)	(192		)	(39		)	(61		)	(5		)	(297		)
Recoveries (c)	25			5			6			1			37
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (d)	—			—			(339		)	—			(339		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	130		$	3		$	46		$	1		$	180
Year Ended December 31, 2013
Balance at beginning of period	$	67		$	—		$	190		$	2		$	259
Provision for finance receivable losses	130			—			242			(1		)	371
Charge-offs (e)	(149		)	—			(117		)	(9		)	(275		)
Recoveries (f)	47			—			15			10			72
Transfers to finance receivables held for sale (g)	(1		)	—			—			—			(1		)
Balance at end of period	$	94		$	—		$	330		$	2		$	426

(a) During 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) 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.

(c) 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.

(d) During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(e) Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13 million of additional charge-offs in March 2013.

(f) Recoveries in 2013 included $37 million ($23 million of personal loan recoveries, $9 million of real estate loan recoveries, and $5 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4 million adjustment for the subsequent buyback of certain finance receivables.

(g) During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $128 million at December 31, 2015 and $72 million at December 31, 2014. See Note 13 for further discussion regarding our securitization transactions.

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, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	164		$	—		$	—		$	1		$	165
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—			—			12			—			12
Individually evaluated for impairment (TDR finance receivables)	9			4			34			—			47
Total	$	173		$	4		$	46		$	1		$	224
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			350			42			—			392
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,703		$	538		$	23		$	6,564
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.25		%	8.72		%	3.46		%	3.42		%
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129		$	—		$	3		$	1		$	133
Purchased credit impaired finance receivables	—			—			11			—			11
TDR finance receivables	1			3			32			—			36
Total	$	130		$	3		$	46		$	1		$	180
Finance receivables:
Collectively evaluated for impairment	$	3,778		$	1,629		$	490		$	48		$	5,945
Purchased credit impaired finance receivables	—			452			44			—			496
TDR finance receivables	22			10			105			—			137
Total	$	3,800		$	2,091		$	639		$	48		$	6,578
Allowance for finance receivable losses as a percentage of finance receivables	3.44		%	0.13		%	7.27		%	1.56		%	2.74		%

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

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Finance Receivables Held for Sale

12 Months Ended

Dec. 31, 2015

Receivables Held-for-sale [Abstract]

Finance Receivables Held for Sale

Finance Receivables Held for Sale

We report finance receivables held for sale of $793 million at December 31, 2015 and $202 million at December 31, 2014, which are carried at the lower of cost or fair value. At December 31, 2015, the fair value of our finance receivables held for sale exceeded the cost. At December 31, 2014, we marked our real estate loans held for sale to fair value and recorded impairments of $7 million. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our consolidated statements of operations, which totaled $60 million in 2015 and $61 million in 2014.

On September 30, 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. See Note 2 for further information on this transfer.

During 2014, we transferred $6.6 billion of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2014, we sold finance receivables held for sale totaling $6.4 billion and recorded a net gain of $626 million. At December 31, 2015 and 2014, the remaining holdback provision relating to these real estate sales totaled $5 million and $64 million, respectively.

During 2013, we transferred $18 million of finance receivables (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2013, we sold finance receivables held for sale totaling $18 million and recorded a loss in other revenues at the time of sale of $2 million.

We did not have any transfer activity from finance receivables held for sale to finance receivables held for investment during 2015, 2014 or 2013.

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Investment Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	74		—		—			74
Commercial mortgage-backed securities (“CMBS”)	44		—		—			44
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total (a)	$	604	$	3	$	(16	)	$	591
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 and 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $1 million at December 31, 2014, primarily to support bank lines of credit.

As of December 31, 2015 and 2014, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss.

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—		$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—			28		—
Corporate debt	36		(1		)	6		—			42		(1		)
RMBS	9		—			—		—			9		—
CMBS	16		(1		)	2		—			18		(1		)
CDO/ABS	46		—			—		—			46		—
Total bonds	134		(2		)	10		—			144		(2		)
Preferred stock	6		—			—		—			6		—
Total	$	140	$	(2	)	$	10	$	—		$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

We do not consider the above unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2015, we have no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential impairments. During 2015, 2014 and 2013, we did not recognize any other-than-temporary credit loss write-downs to investment revenues.

During 2015, 2014, and 2013, there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities.

The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Proceeds from sales and redemptions	$	416		$	260		$	254
Realized gains	$	15		$	9		$	4
Realized losses	(1		)	(1		)	(2		)
Net realized gains	$	14		$	8		$	2

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	96	$	96
Due after 1 year through 5 years	165		166
Due after 5 years through 10 years	54		55
Due after 10 years	123		132
Mortgage-backed, asset-backed, and collateralized securities	147		148
Total	$	585	$	597

Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies.

The fair value of bonds on deposit with insurance regulatory authorities totaled $11 million at December 31, 2015 and $12 million at December 31, 2014.

TRADING AND OTHER SECURITIES

The fair value of trading and other securities by type was as follows:

(dollars in millions)
December 31,	2015		2014
Fixed maturity trading and other securities:
Bonds:
U.S. government and government sponsored entities	$	—	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	10		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	—		35
CMBS	2		149
CDO/ABS	—		507
Total *	$	12	$	2,321

* The fair value of other securities totaled $2 million at December 31, 2015 and $5 million at December 31, 2014.

The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014
Net unrealized gains (losses) on trading and other securities held at year end *	$	4		$	(9	)
Net realized gains (losses) on trading and other securities sold or redeemed during the year *	(3		)	5
Total	$	1		$	(4	)

* The net unrealized and realized gains (losses) on our other securities for the year ended December 31, 2013 were less than $1 million and, therefore, are not quantified in the table above.

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Other Assets

12 Months Ended

Dec. 31, 2015

Other Assets [Abstract]

Other Assets

Other Assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2015		2014
Fixed assets, net (a)	$	83	$	73
Other investments (b)	67		104
Prepaid expenses and deferred charges (c)	35		23
Ceded insurance reserves	22		22
Other intangible assets	16		20
Escrow advance receivable	11		8
Cost basis investments	10		—
Receivables from parent and affiliates	9		11
Current tax receivable (d)	8		105
Real estate owned	8		13
Receivables related to sales of real estate loans and related trust assets (e)	5		79
Other	7		17
Total	$	281	$	475

(a) Fixed assets were net of accumulated depreciation of $173 million at December 31, 2015 and $167 million at December 31, 2014.

(b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income.

(c) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of December 31, 2014.

(d) Current tax receivable includes current federal and state tax assets.

(e) Receivables related to sales of real estate loans and related trust assets includes $5 million and $64 million, respectively, of holdback provisions as of December 31, 2015 and 2014.

OTHER INTANGIBLE ASSETS

The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows:

(dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Other Intangible Assets
December 31, 2015
Value of business acquired (“VOBA”)	$	36	$	(32	)	$	4
Customer relationships	18		(18		)	—
Licenses	12		—			12
Customer lists	9		(9		)	—
Total	$	75	$	(59	)	$	16
December 31, 2014
VOBA	$	36	$	(32	)	$	4
Customer relationships	18		(15		)	3
Licenses	12		—			12
Customer lists	9		(8		)	1
Total	$	75	$	(55	)	$	20

Amortization expense totaled $4 million in 2015 and 2014, and $5 million in 2013. The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below.

(dollars in millions)	Estimated Aggregate Amortization Expense
2016	$	1
2017 *	—
2018 *	—
2019 *	—
2020 *	—

* Amortization expense is less than $1 million for each year subsequent to 2016 and, therefore, is not quantified in the table above.

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Transactions with Affiliates of Fortress or AIG

12 Months Ended

Dec. 31, 2015

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Transactions with Affiliates of Fortress or AIG

Transactions with Affiliates of Fortress or AIG

FORTRESS AFFILIATED TRANSACTIONS

Subservicing Agreement

Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of $2 million in 2015, $5 million in 2014, and $9 million in 2013.

As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014, our exposure to these affiliated services is reduced.

Investment Management Agreement

Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1 million in 2015, 2014, and 2013.

Joint Venture

Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress.

Third Street Disposition

On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress.

MSR Sale

SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million. In May of 2015, Nationstar paid off the remaining balance of $1 million of this receivable. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar.

AIG AFFILIATED TRANSACTIONS

As a result of the offering of OMH’s common stock in May of 2015, the economic interests of American International Group, Inc. (“AIG”) is no longer material; therefore, the discussion of AIG affiliated transactions below only relates to 2014 and 2013.

Reinsurance Agreements

Merit Life Insurance Co. (“Merit”), our wholly owned insurance subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit disability insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $44 million at December 31, 2014.

Insurance Coverage

We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies totaled $1 million in 2014 and 2013.

Derivatives

On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement with AIG Financial Products Corp. (“AIGFP”) and recorded a loss of $2 million in other revenues — other. The notional amount of this swap agreement totaled $417 million at August 5, 2013. Immediately following this termination, we had no derivative financial instruments. As a result of this termination, AIGFP returned the remaining cash collateral of $40 million to SFI that SFI had posted as security for SFC’s swap agreement with AIGFP.

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Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

AFFILIATE LENDING

Notes Receivable from Parent and Affiliates

Note Receivable from SFI. SFC’s note receivable from SFI is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2016 and does not expect to demand payment from SFI in 2016. The note receivable from parent totaled $389 million at December 31, 2015 and $251 million at December 31, 2014. Interest receivable on this note totaled $1 million at December 31, 2015 and was less than $1 million at December 31, 2014. The interest rate for the UPB is the lender’s cost of funds rate. Interest revenue on the note receivable from SFI totaled $15 million during 2015, $5 million during 2014, and $15 million during 2013.

Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, CSI, SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence, whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $3.55 billion. Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.82% at December 31, 2015. On November 12, Independence borrowed $3.4 billion under the Independence Demand Note.

At December 31, 2015, the note receivable from Independence totaled $3.4 billion, which included interest due to CSI totaling $16 million. Interest revenue on the note receivable from Independence totaled $27 million during 2015, which we report in other revenues.

OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its Restricted Subsidiaries, relating to OMFH’s 6.75% Senior Notes due 2019 and its 7.25% Senior Notes due 2021) or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment on 5 days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015, no amounts were drawn under the note.

Receivables from Parent and Affiliates

At December 31, 2015 and 2014, receivables from parent and affiliates totaled $9 million and $11 million, respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, and (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates. Receivables from parent and affiliates at December 31, 2015 and 2014 are presented net of a payable to SFI of $12 million and $43 million, respectively. Excluding this payable, receivables from parent and affiliates totaled $21 million and $54 million at December 31, 2015 and 2014, respectively.

Note Payable to Affiliate

On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million. Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment on 5 days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015, no amounts were drawn under the note.

Subsequently, we drew $370 million under the note on January 22, 2016. The lender’s cost of funds rate at this date was 5.39%.

Payables to Parent and Affiliates

At December 31, 2015 and 2014, payables to parent and affiliates totaled $24 million and $48 million, respectively. SFC’s payable to parent totaled $17 million at December 31, 2014 primarily due to payments made by SFI for the benefit of SFC. At December 31, 2015 and 2014, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $19 million to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At December 31, 2015 and 2014, SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network.

SFI provided funding for SAC’s operations through an intercompany demand note, not to exceed $3 million. The note was payable in full on December 31, 2022, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was lender’s cost plus 25 basis points. At December 31, 2014, the note payable to SFI totaled $1 million and was reported in other liabilities. On September 1, 2015, SAC repaid the note in full plus accrued interest. Interest expense on the note payable to SFI for the year ended December 31, 2015 and 2014 was immaterial.

SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At December 31, 2015 and 2014, SpringCastle Holdings LLC’s payable to SFI totaled $4 million and $10 million, respectively.

CAPITAL CONTRIBUTIONS

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

During January and July of 2014, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, respectively.

INTERCOMPANY AGREEMENTS

On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $19 million at December 31, 2015 and 2014.

Services Agreement

SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During 2015 and 2014, SFMC recorded $224 million and $213 million, respectively, of service fee expenses, which are included in other operating expenses.

License Agreement

The license agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During 2015 and 2014, SFMC recorded $6 million and $5 million, respectively, of license fees, which are included as a contra expense to other operating expenses.

Building Lease

The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During 2015, and 2014, SFMC recorded $4 million of rent charged to SGSC, which are included as a contra expense to other operating expenses.

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Long-term Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Carrying value and fair value of long-term debt by type were as follows:

	December 31, 2015				December 31, 2014
(dollars in millions)	Carrying Value		Fair Value		Carrying Value *		Fair Value
Senior debt	$	9,410	$	9,753	$	8,184	$	8,920
Junior subordinated debt	172		245		172		262
Total	$	9,582	$	9,998	$	8,356	$	9,182

* As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt - senior debt as of December 31, 2014.

Weighted average effective interest rates on long-term debt by type were as follows:

	Years Ended December 31,						At December 31,
	2015		2014		2013		2015		2014
Senior debt	6.96	%	7.10	%	7.06	%	6.66	%	7.16	%
Junior subordinated debt	12.26		12.26		12.26		12.26		12.26
Total	7.05		7.19		7.14		6.76		7.26

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2015 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.41% - 6.82%			1.65% - 3.65%		5.25% - 8.25%			6.00%
First quarter 2016	$	—		$	—	$	—		$	—	$	—
Second quarter 2016	—			—		—			—		—
Third quarter 2016	—			—		375			—		375
Fourth quarter 2016	—			—		—			—		—
2016	—			—		375			—		375
2017	—			—		1,903			—		1,903
2018	—			—		—			—		—
2019	—			—		700			—		700
2020	—			—		300			—		300
2021-2067	—			—		950			350		1,300
Securitizations (b)	4,323			—		—			—		4,323
Revolving conduit facilities (b)	—			1,200		—			—		1,200
Total principal maturities	$	4,323		$	1,200	$	4,228		$	350	$	10,101
Total carrying amount (c)	$	4,313		$	1,200	$	3,897		$	172	$	9,582
Debt issuance costs (d)	$	(15	)	$	—	$	(14	)	$	—	$	(29	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2015.

(b) Securitizations and borrowing under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which we continue to report in other assets.

GUARANTY AGREEMENTS

5.25% SFC Notes

On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of December 31, 2015, approximately $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

SFC Notes

On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2015, approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding.

The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions.

DEBT COVENANTS

The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement.

With the exception of SFC’s junior subordinated debenture, none of SFC’s debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements.

As of December 31, 2015, we were in compliance with all of the covenants under our debt agreements.

Junior Subordinated Debenture

In January 2007, SFC issued $350 million aggregate principal amount of 60-year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January 2017.

Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends).

Based upon SFC’s financial results for the twelve months ended September 30, 2015, a mandatory trigger event occurred with respect to the interest payment due in January of 2016 as the average fixed charge ratio was 0.94x. On January 11, 2016, SFC issued one share of SFC common stock to SFI for $11 million to satisfy the January 2016 interest payments required by SFC’s debenture.

REPURCHASE OR REPAYMENT OF DEBT

In connection with our liability management efforts, we or our affiliates from time to time have purchased, or may in the future purchase, portions of our outstanding indebtedness. Any such purchases may be made through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration as we or any such affiliates may determine. Our plans are dynamic and we may adjust our plans in response to changes in our expectations and changes in market conditions.

Medium Term Notes

In December 2014, we used the proceeds from our offering of $700 million aggregate principal amount of the 5.25% SFC Notes to repurchase $9 million and $361 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017 from certain beneficial owners of the notes. We recorded a net loss of $20 million related to the partial extinguishment on this debt repurchase and capitalized $57 million related to a partial modification on this debt repurchase.

Additionally, in December 2014, we repurchased $23 million and $66 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017. We recorded a net loss of $17 million related to these additional debt repurchases in December 2014.

SpringCastle 2013-A Notes

On October 3, 2014, certain indirect subsidiaries of SFC associated with a joint venture in which we own a 47% equity interest (the “Co-Issuers”) used the proceeds from the SpringCastle Funding Asset-backed Notes 2014-A (the “SpringCastle 2014-A Notes”) to repay in full the SpringCastle Funding Asset-backed Notes 2013-A (the “SpringCastle 2013-A Notes”), which were issued by the Co-Issuers on April 1, 2013. See Note 13 for further information on the refinance of SpringCastle 2013-A Notes. We recorded a net loss of $21 million related to this refinancing transaction.

Secured Term Loan

On March 31, 2014, Springleaf Financial Funding Company (“SFFC”) prepaid, without penalty or premium, the entire $750 million outstanding principal balance of the secured term loan, plus accrued and unpaid interest. Effective upon the prepayment, all obligations of SFFC, SFC, and the applicable consumer finance operating subsidiaries of SFC under the secured term loan (other than contingent reimbursement obligations and indemnity obligations) were terminated and all guarantees and security interests were released.

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Variable Interest Entities

12 Months Ended

Dec. 31, 2015

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our consolidated financial statements and are accounted for as secured borrowings.

CONSOLIDATED VIES

We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary, and, therefore, we consolidated such entities. We are deemed to be the primary beneficiary of each of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns.

The asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each securitization trust. We retain interests in these securitization transactions, including residual interests in each securitization trust and, in some cases, subordinated securities issued by the VIEs. We retain credit risk in the securitizations through our ownership of the residual interest in each securitization trust, and, in some cases, ownership of the most subordinated class of asset-backed securities, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and the VIE liabilities if the VIE’s creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)
December 31,	2015		2014
Assets
Cash and cash equivalents (a)	$	7	$	52
Finance receivables:
Personal loans	3,621		1,853
SpringCastle Portfolio	1,703		2,091
Allowance for finance receivable losses	128		72
Finance receivables held for sale	435		—
Restricted cash and cash equivalents	282		210
Other assets (a)	48		23
Liabilities
Long-term debt (b)	$	5,513	$	3,630
Other liabilities (a)	9		8

(a) In connection with OMH’s disclosure integration with OneMain, we have expanded our presentation to include cash and cash equivalents, other assets and other liabilities associated with our securitization trusts.

(b) As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

SECURITIZATION TRANSACTIONS

Consumer Loan Securitizations

2013-A Securitization. On February 19, 2013, we completed a private securitization transaction in which Tenth Street Funding LLC (“Tenth Street”), a wholly owned special purpose vehicle, sold $568 million of notes backed by personal loans held by Springleaf Funding Trust 2013-A (the “2013-A Trust”), at a 2.83% weighted average yield. The notes were scheduled to mature in September 2021. We sold the asset-backed notes for $568 million, after the price discount but before expenses and a $7 million interest reserve requirement. We initially retained $36 million of the 2013-A Trust’s subordinate asset-backed notes.

On December 15, 2015, Tenth Street exercised its right to redeem the asset-backed notes issued by the 2013-A Trust on February 19, 2013 (the “2013-A Notes”). To redeem the 2013-A Notes, Tenth Street paid a redemption price of $189 million, which excluded $37 million for the Class D 2013-A Notes owned by Tenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-A Notes was $225 million on the date of the optional redemption.

2013-B Securitization. On June 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $256 million of notes backed by personal loans held by Springleaf Funding Trust 2013-B (the “2013-B Trust”), at a 4.11% weighted average yield. The notes mature in June 2023 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $255 million, after the price discount but before expenses and a $4 million interest reserve requirement. We initially retained $114 million of the 2013-B Trust’s senior asset-backed notes (which we subsequently sold in 2013 and recorded $112 million of additional debt) and $30 million of the 2013-B Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2013-BAC Securitization. On September 25, 2013, we completed a private securitization transaction in which the Springleaf Funding Trust 2013-BAC (the “2013-BAC Trust”), a wholly owned special purpose vehicle, issued $500 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. We sold the personal loan-backed notes for gross proceeds of $500 million.

On March 27, 2014, we repaid the entire $231 million outstanding principal balance of the notes, plus accrued and unpaid interest of the 2013-BAC Trust.

2014-A Securitization. On March 26, 2014, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $559 million of notes backed by personal loans held by Springleaf Funding Trust 2014-A (the “2014-A Trust”), at a 2.62% weighted average yield. The notes mature in December 2022 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $559 million, after the price discount but before expenses and a $6 million interest reserve requirement. We initially retained $33 million of the 2014-A Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2015-A Securitization. On February 26, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $1.2 billion of notes backed by personal loans held by Springleaf Funding Trust 2015-A at a 3.58% weighted average yield. The notes mature in November 2024 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

2015-B Securitization. On April 7, 2015, we completed a private term securitization transaction in which a wholly owned special purpose vehicle sold $314 million of notes backed by personal loans held by Springleaf Funding Trust 2015-B at a 3.84% weighted average yield. The notes mature in May 2028 and have a fifty-nine month revolving period during which no principal payments are required to be made on the notes. We sold the asset-backed notes for $314 million, after the price discount but before expenses and a $3 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes.

SpringCastle Securitizations

SpringCastle 2014-A Securitization. On October 3, 2014, the Co-Issuers issued $2.6 billion of the SpringCastle 2014-A Notes at a 4.68% weighted average yield in a private placement transaction. The SpringCastle 2014-A Notes are collateralized by the SpringCastle Portfolio in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014. The Co-Issuers sold the SpringCastle 2014-A Notes for approximately $2.6 billion after the price discount but before expenses. The Co-Issuers used the proceeds from the SpringCastle 2014-A Notes to repay in full on October 3, 2014 the SpringCastle 2013-A Notes. At September 30, 2014, the UPB of the SpringCastle 2013-A Notes was $1.5 billion.

On October 3, 2014, SAC purchased $363 million initial principal amount of the SpringCastle 2014-A Notes. The Co-Issuers retained $62 million of the SpringCastle 2014-A Notes. Certain subsidiaries of NRZ own a 30% equity interest in the Co-Issuers. NRZ is managed by an affiliate of Fortress.

On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015.

Mortgage Securitizations

2013-1 Securitization. On April 10, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $783 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-1 (the “2013-1 Trust”), at a 2.85% weighted average yield. We sold the mortgage-backed notes for $782 million, after the price discount but before expenses. We initially retained $237 million of the 2013-1 Trust’s subordinate mortgage-backed notes.

2013-2 Securitization. On July 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $599 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-2 (the “2013-2 Trust”), at a 2.88% weighted average yield. We sold the mortgage-backed notes for $591 million, after the price discount but before expenses. We initially retained $535 million of the 2013-2 Trust’s subordinate mortgage-backed notes.

2013-3 Securitization. On October 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $271 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-3 (the “2013-3 Trust”), at a 3.40% weighted average yield. We sold the mortgage-backed notes for $269 million, after the price discount but before expenses. We initially retained $229 million of the 2013-3 Trust’s subordinate mortgage-backed notes.

Sales of Previously Retained Mortgage-backed Notes

During 2013, we sold the following previously retained mortgage-backed notes:

(dollars in millions)	Principal Amount of Previously Retained Notes Issued		Carrying Amount of Additional Debt Recorded
Mortgage Securitizations
SLFMT 2012-2	$	20	$	21
SLFMT 2012-3	8		8
SLFMT 2013-2	158		149
SLFMT 2013-3	23		23

During 2014, our remaining beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions were sold in a series of separate transactions. As a result of these sales, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary.

REVOLVING CONDUIT FACILITIES

Conduit Facilities

Midbrook 2013-VFN1 Securitization. On September 26, 2013, we established a private securitization facility in which the Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, could issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but could be funded from time to time over a one-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes could also be paid down in whole or in part and then redrawn. Following the one-year funding period, the principal amount of the notes, if any, would amortize and would be due and payable in full in October 2017.

On June 13, 2014, we amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to extend the one-year funding period to a two-year funding period. Following the two-year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2019. The maximum principal balance of variable funding notes that can be issued remained at $300 million. At December 31, 2015, no amounts had been funded.

The note purchase agreement with the Midbrook 2013-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment.

Springleaf 2013-VFN1 Securitization. On September 27, 2013, we established a private securitization facility in which the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period, which may be extended for one year, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two- or three-year funding period, as the case may be, the principal amount of the notes, if any, will amortize and will be due and payable in full in October 2019.

On May 20, 2015, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to, among other things, extend the original two-year revolving period ending October of 2015 to a two-year revolving period ending April of 2017, which may be extended for up to one additional year, subject to satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in May of 2020. At December 31, 2015, the maximum amount that could be drawn under the notes remained at $350 million. No amounts were drawn under the notes as of December 31, 2015.

The note purchase agreement with the Springleaf 2013-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment.

Sumner Brook 2013-VFN1 Securitization. On December 20, 2013, we established a private securitization facility in which the Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two-year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in August 2022.

On January 16, 2015, we amended the note purchase agreement with the Sumner Brook 2013-VFN1 Trust to extend the two-year revolving period ending December of 2015 to a three-year revolving period ending January of 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August of 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million. On December 21, 2015, we drew $100 million under the notes, which remained outstanding as of December 31, 2015.

Whitford Brook 2014-VFN1 Securitization. On June 26, 2014, we established a private securitization facility in which the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC. The notes will be funded over a three-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down to the required minimum balance of $100 million and then redrawn. Following the three-year funding period, the principal amount of the notes will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2018, unless an option to prepay is elected between July 2017 and July 2018.

On March 24, 2015, we amended the sale and servicing agreement relating to the Whitford Brook 2014-VFN1 Trust to remove the requirement for a $100 million minimum balance drawn under the variable funding notes, which are to be backed by personal loans acquired from subsidiaries of SFC from time to time. On March 25, 2015, we paid down the note balance of $100 million.

On June 3, 2015, we amended the note purchase agreement relating to the Whitford Brook 2014-VFN1 Trust to reduce the $300 million maximum principal balance to $250 million. On each of July 15, 2015 and December 3, 2015, we drew $100 million under the notes. As of December 31, 2015, $200 million remained outstanding under the notes.

The note purchase agreement with the Whitford Brook 2015-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment.

Mill River 2015-VFN1 Securitization. On May 27, 2015, we established a private securitization facility in which Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $400 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in June of 2021. On each of November 23, 2015 and December 10, 2015, we drew $200 million under the notes. As of December 31, 2015, $400 million remained outstanding under the notes.

The note purchase agreement with the Mill River 2015-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment.

Second Avenue Funding LLC Securitization. On June 3, 2015, we established a private securitization facility in which Second Avenue Funding LLC, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a three-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the three-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full in June of 2019. On November 23, 2015, we drew $250 million under the notes, which remained outstanding as of December 31, 2015.

First Avenue Funding LLC Securitization. On June 10, 2015, we established a private securitization facility in which First Avenue Funding LLC (“First Avenue”), a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a two-year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the two-year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full twelve months following the maturity of the last auto loan held by First Avenue. On November 23, 2015, we drew $250 million under the notes, which remained outstanding as of December 31, 2015.

On December 11, 2015, we amended the facility to extend the scheduled maturity date until December 10, 2017.

VIE INTEREST EXPENSE

Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $184 million in 2015, $163 million in 2014, and $147 million in 2013.

DECONSOLIDATED VIES

As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. During 2014, we established a reserve for sales recourse obligations of $6 million related to these sales. At December 31, 2015, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of December 31, 2015. See Note 20 for further information on the total reserve for sales recourse obligations relating to the real estate loan sales, including the sales of the mortgage-backed retained certificates.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

During 2015 and 2014, we did not have any derivative activity. In 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIG Financial Products, a subsidiary of AIG, and recorded a loss of $2 million in other revenues — other. Immediately following this termination, we had no derivative financial instruments.

Changes in the notional amounts of our cross currency interest rate swap agreements were as follows:

(dollars in millions)
At or for the Year Ended December 31,	2013
Balance at beginning of period	$	417
Discontinued and terminated contracts	(417		)
Balance at end of period	$	—

During 2013, we recognized a net loss of $3 million on SFC’s non-designated hedging instruments in other revenues — other.

Derivative adjustments included in other revenues — other consisted of the following:

(dollars in millions)
Year Ended December 31,	2013
Net interest income	$	9
Mark to market losses	(8		)
Total	$	1

SFC was exposed to credit risk if counterparties to its swap agreement did not perform. SFC regularly monitored counterparty credit ratings throughout the term of the agreement. SFC’s exposure to market risk was limited to changes in the value of its swap agreement offset by changes in the value of the hedged debt. While SFC’s cross currency interest rate swap agreement mitigated economic exposure of related debt, it did not qualify as a cash flow or fair value hedge under U.S. GAAP.

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Insurance

12 Months Ended

Dec. 31, 2015

Insurance [Abstract]

Insurance

Insurance

Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows:

(dollars in millions)
December 31,	2015		2014
Finance receivable related:
Payable to SFC:
Unearned premium reserves	$	222	$	194
Claim reserves	28		23
Subtotal (a)	250		217
Payable to third-party beneficiaries:
Benefit reserves	113		107
Claim reserves	4		5
Subtotal (b)	117		112
Non-finance receivable related:
Benefit reserves	72		75
Claim reserves	41		42
Subtotal (b)	113		117
Total	$	480	$	446

(a) Reported as a contra-asset to net finance receivables in connection with the OneMain policy integration.

(b) Reported in insurance claims and policyholder liabilities.

Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits included the following amounts assumed from other insurers:

(dollars in millions)
December 31,	2015		2014
Non-affiliated insurance companies	$	58	$	15
AIG affiliated insurance companies*	—		43
Total	$	58	$	58

* As a result of the offering of OMH’s common stock in May of 2015, the economic interests of AIG is no longer material; therefore, the reinsurance agreements with insurers that are subsidiaries of AIG as of December 31, 2015 have not been segregated.

At December 31, 2015 and 2014, reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $22 million.

Changes in the reserve for unpaid claims and loss adjustment expenses, net of reinsurance recoverable:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014			2013
Balance at beginning of period	$	48		$	46		$	51
Additions for losses and loss adjustment expenses incurred to:
Current year	64			65			59
Prior years *	—			(3		)	(6		)
Total	64			62			53
Reductions for losses and loss adjustment expenses paid related to:
Current year	(40		)	(39		)	(35		)
Prior years	(21		)	(21		)	(23		)
Total	(61		)	(60		)	(58		)
Balance at end of period	$	51		$	48		$	46

* Reflects a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 and $6 million at December 31, 2013 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected.

Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana Department of Insurance (the “Indiana DOI”), which is a comprehensive basis of accounting other than U.S. GAAP. The primary differences between statutory accounting practices and U.S. GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis.

Statutory net income (loss) for our insurance companies by type of insurance was as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Property and casualty	$	15		$	16		$	41
Life and disability	(1		)	(2		)	3

Statutory capital and surplus for our insurance companies by type of insurance were as follows:

(dollars in millions)
December 31,	2015		2014
Property and casualty	$	76	$	108
Life and disability	123		171

Our insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2015 and 2014, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels.

State law restricts the amounts our insurance subsidiaries, Yosemite Insurance Company (“Yosemite”) and Merit, may pay as dividends without prior notice to the Indiana DOI. The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends”. Our insurance subsidiaries paid extraordinary dividends to SFC totaling $100 million, $57 million, and $150 million during 2015, 2014, and 2013, respectively, and ordinary dividends of $18 million to SFC during 2014. In addition, Yosemite paid, as an extraordinary dividend to SFC, 100% of the common stock of its wholly owned subsidiary, CommoLoCo, Inc., in the amount of $58 million in July of 2013.

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Other Liabilities

12 Months Ended

Dec. 31, 2015

Other Liabilities Disclosure [Abstract]

Other Liabilities

Other Liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2015		2014
Retirement plans	$	55	$	50
Accrued interest on debt	55		57
Payables to parent and affiliates *	24		48
Other accrued expenses and accounts payable	17		30
Loan principal warranty reserve	15		24
Salary and benefit liabilities	14		11
Bank overdrafts	14		5
Other insurance liabilities	5		4
Other	17		30
Total	$	216	$	259

* See Note 11 for further information on payables to parent and affiliates.

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Capital Stock

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Capital Stock

Capital Stock

SFC has two classes of authorized capital stock: special stock and common stock. SFC may issue special stock in series. The board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance.

Par value and shares authorized at December 31, 2015 were as follows:

	Special Stock		Common Stock
Par value	$	—	$	0.50
Shares authorized	25,000,000		25,000,000

Shares issued and outstanding were as follows:

	Special Stock		Common Stock
December 31,	2015	2014	2015	2014
Shares issued and outstanding	—	—	10,160,020	10,160,020

During January and July of 2014 and 2013, SFC received capital contributions from SFI of $11 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014 and 2013, respectively.

On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC.

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(12		)	(6		)	—			(18		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—			(9		)
Balance at end of period	$	(9	)	$	(19	)	$	4		$	(24	)
Year Ended December 31, 2014
Balance at beginning of period	$	4		$	20		$	4		$	28
Other comprehensive income (loss) before reclassifications	13			(33		)	—			(20		)
Reclassification adjustments from accumulated other comprehensive income	(5		)	—			—			(5		)
Balance at end of period	$	12		$	(13	)	$	4		$	3
Year Ended December 31, 2013
Balance at beginning of period	$	13		$	8		$	5		$	26
Other comprehensive income (loss) before reclassifications	(8		)	12			(1		)	3
Reclassification adjustments from accumulated other comprehensive income	(1		)	—			—			(1		)
Balance at end of period	$	4		$	20		$	4		$	28

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Unrealized gains on available-for-sale securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	8		$	2
Income tax effect	(5		)	(3		)	(1		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	9		$	5		$	1

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

OMH and all of its eligible domestic U.S. subsidiaries, including SFC, file a consolidated life/non-life federal tax return with the Internal Revenue Service (“IRS”). Previously, Merit was not an eligible company, and it filed a separate federal life insurance tax return. For our 2015 consolidated federal tax return, Merit is eligible as an includible insurance company under Internal Revenue Code (“IRC”) Section 1504. Income taxes from the consolidated federal and state tax returns are allocated to the eligible subsidiaries under a tax sharing agreement with OMH.

Our foreign subsidiaries file tax returns in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2015, the Company had no undistributed foreign earnings.

Components of income (loss) before provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014		2013
Income (loss) before provision for (benefit from) income taxes - U.S. operations	$	152	$	676	$	(121	)
Income (loss) before provision for (benefit from) income taxes - foreign operations	7		2		(4		)
Total	$	159	$	678	$	(125	)

Components of provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Current:
Federal	$	63		$	228		$	62
Foreign	—			—			1
State	5			17			2
Total current	68			245			65
Deferred:
Federal	(46		)	(10		)	(103		)
Foreign	—			—			1
State	(4		)	(2		)	(12		)
Total deferred	(50		)	(12		)	(114		)
Total	$	18		$	233		$	(49	)

Expense from foreign income taxes includes our foreign subsidiaries that operate in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom.

We recorded a current state income tax provision in 2015, 2014, and 2013 attributable to profitable operations in certain states in which we engage in business activity that could not be offset against losses incurred. We recorded a valuation allowance against the majority of our gross state deferred tax assets related to net operating losses.

Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows:

Years Ended December 31,	2015		2014		2013
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Non-controlling interests	(27.91	)	(2.51	)	—
Nondeductible compensation	3.39		—		(2.16	)
Nontaxable investment income	(0.29	)	(0.14	)	1.20
State income taxes, net of federal	0.23		1.50		4.60
Foreign operations	0.12		0.51		(2.91	)
Interest and penalties on prior year tax returns	—		(0.14	)	(4.75	)
Change in tax status	—		—		9.07
Other, net	0.58		0.15		(0.66	)
Effective income tax rate	11.12	%	34.37	%	39.39	%

The effective tax rate for 2015 and 2014 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in the SpringCastle Portfolio and state income taxes. The effective tax rate is based on income (loss) before taxes, which includes income (loss) attributable to non-controlling interests. The income (loss) attributable to the non-controlling interest is not included in the taxable income in SFC, resulting in variances from the federal statutory rate of (27.91)% and (2.51)% in 2015 and 2014, respectively. The difference in the impact on the effective tax rate due to non-controlling interest in 2015 as compared to 2014 is due to the fact that the net income attributable to non-controlling interest was a greater percentage of the total income (loss) before taxes in 2015 as compared to 2014. The effective tax rate for 2013 differed from the federal statutory rate primarily due to the effects of state income taxes and a change in tax status, partially offset by the effect of interest and penalties on prior year tax returns.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Balance at beginning of year	$	4		$	2		$	2
Increases in tax positions for prior years	4			3			—
Decreases in tax positions for prior years	(2		)	—			—
Increases in tax positions for current years	4			—			—
Lapse in statute of limitations	—			(1		)	—
Settlements with tax authorities	(1		)	—			—
Balance at end of year	$	9		$	4		$	2

Our gross unrecognized tax obligation includes interest and penalties. We recognize interest and penalties related to gross unrecognized tax obligations in income tax expense. We accrued $3 million in 2015, $1 million in 2014, and less than $1 million in 2013 for the payment of respective tax obligation, interest and penalty, net of any federal benefit. The amount of any change in the balance of uncertain tax liabilities over the next twelve months is not expected to be material to our consolidated financial statements.

We are currently under examination of our U.S. federal tax return for the year 2013 by the IRS. Management believes it has adequately provided for taxes for such year. No specific examination issue or adjustment has been identified to date. During 2015, the Company amended their 2011 and 2012 federal and state returns. Therefore, the Company could be subject to examination for the respective years. The amended returns resulted in a net receivable that is recorded in the current tax receivable account.

Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2015			2014
Deferred tax assets:
Allowance for loan losses	$	95		$	81
Capital loss carryforward	27			—
Pension/employee benefits	26			20
State taxes, net of federal	19			20
Net operating losses and tax attributes	16			19
Joint venture	8			—
Legal and warranty reserve	6			9
Deferred insurance commissions	5			3
Payment protection insurance liability	2			5
Other	8			5
Total	212			162
Deferred tax liabilities:
Debt writedown	150			194
Impact of tax accounting method change	76			—
Mark-to-market	21			51
Discount - debt exchange	20			23
Insurance reserves	15			10
Other intangible assets	5			7
Joint venture	—			5
Other	—			5
Total	287			295
Net deferred tax liabilities before valuation allowance	(75		)	(133		)
Valuation allowance	(38		)	(44		)
Net deferred tax liabilities	$	(113	)	$	(177	)

We had a net deferred tax liability of $113 million and $177 million at December 31, 2015 and 2014, respectively. The deferred tax liability reflected on the impact of tax accounting method change relates to the valuation of certain assets. The gross deferred tax liabilities are expected to reverse in time, and amounts are sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets.

Included in our gross deferred tax assets are foreign deferred tax assets that are primarily attributable to foreign net operating loss carryforwards. The benefit of the foreign net operating loss carryforwards is $13 million and $15 million from our United Kingdom operations at December 31, 2015 and 2014, respectively, and $2 million from our Puerto Rico operations at December 31, 2015 and 2014. The United Kingdom net operating loss does not have a statute of limitations and the Puerto Rico net operating loss expires in 2024. We had a valuation allowance against our United Kingdom and Puerto Rico operations of $16 million and $18 million at December 31, 2015 and 2014, respectively.

In addition, at December 31, 2015, we had a federal capital loss carryforward of $78 million. The federal capital loss carryforward expires in 2020. At December 31, 2015, we had state net operating loss carryforwards of $548 million, compared to $500 million at December 31, 2014. The state net operating loss carryforwards expire between 2017 and 2036. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $22 million and $26 million at December 31, 2015 and 2014, respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more-likely-than-not to not be realized.

At December 31, 2015, we had $14 million of net current federal and foreign income tax payable, compared to $100 million receivable at December 31, 2014. At December 31, 2015, we had $8 million of current state tax receivable, compared to $5 million at December 31, 2014.

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Lease Commitments, Rent Expense, and Contingent Liabilities

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments, Rent Expense, and Contingent Liabilities

Lease Commitments, Rent Expense, and Contingent Liabilities

LEASE COMMITMENTS AND RENT EXPENSE

Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows:

(dollars in millions)	Lease Commitments
First quarter 2016	$	7
Second quarter 2016	7
Third quarter 2016	7
Fourth quarter 2016	6
2016	27
2017	21
2018	15
2019	9
2020	4
2021+	1
Total	$	77

In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $28 million in 2015, $29 million in 2014, and $30 million in 2013.

LEGAL CONTINGENCIES

In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action.

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole.

SALES RECOURSE OBLIGATIONS

During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales. At December 31, 2015, our reserve for sales recourse obligations totaled $15 million, which primarily related to the real estate loan sales in 2014. We repurchased 13 loans totaling $1 million during 2015 associated with the real estate loan sales in 2014. There was no repurchase activity associated with the 2014 sales of real estate loans during 2014. We repurchased 9 loans totaling $1 million during 2014 and 20 loans totaling $3 million during 2013 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At December 31, 2015, there were no material recourse requests with loss exposure that management believes will not be covered by the reserve.

The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014		2013
Balance at beginning of period	$	24		$	5	$	5
Recourse losses	(2		)	—		—
Provision for recourse obligations, net of recoveries *	(7		)	19		—
Balance at end of period	$	15		$	24	$	5

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses.

PAYMENT PROTECTION INSURANCE

Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March of 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $6 million at December 31, 2015 and $14 million at December 31, 2014. We do not believe that any additional losses related to PPI claims in excess of the amounts accrued will have a material adverse effect on our consolidated financial statements as a whole.

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Benefit Plans

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Benefit Plans

PENSION PLANS

Retirement Plan

The Springleaf Financial Services Retirement Plan (the ”Retirement Plan”) is a noncontributory defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Effective December 31, 2012, the Retirement Plan was frozen. U.S. salaried employees who were employed by a participating company, had attained age 21, and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Retirement Plan that accrued prior to January 1, 2013.

CommoLoCo Retirement Plan

The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our current and former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013.

Unfunded Defined Benefit Plans

We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004.

POSTRETIREMENT PLANS

Springleaf Retiree Medical and Life Insurance Plan

We provided postretirement medical care and life insurance benefits. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Life and dental benefits were closed to new participants. Postretirement medical and life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Medical benefits were contributory, while the life insurance benefits were non-contributory. Retiree medical contributions were based on the actual premium payments reduced by Company-provided credits. These retiree contributions were subject to adjustment annually. Other cost sharing features of the medical plan included deductibles, coinsurance, and Medicare coordination. On December 31, 2014, we terminated the Springleaf Retiree Medical and Life Insurance Plan, and we recorded a settlement gain and a curtailment gain of $4 million and $2 million, respectively, as a credit to salaries and benefit expenses.

CommoLoCo Retiree Life Insurance Plan

We provided postretirement life insurance benefits to eligible participants of CommoLoCo, Inc. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Postretirement life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Life insurance benefits were non-contributory. On February 28, 2015, the Retiree Group Life Insurance program was terminated.

401(K) PLANS

We sponsor voluntary savings plans for our U.S. employees and for our employees of CommoLoCo, Inc.

Springleaf Financial Services 401(k) Plan

The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2015, 2014, and 2013 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. We do not anticipate any changes to the Company’s matching contributions for 2016.

Effective January 1, 2013, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same.

The salaries and benefit expense associated with this plan was $5 million in 2015, $4 million in 2014, and $4 million in 2013.

CommoLoCo Thrift Plan

The CommoLoCo Thrift Plan provides for salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. The salaries and benefit expense associated with this plan for 2015, 2014, and 2013 was immaterial. We do not anticipate any changes to the Company’s matching contributions for 2016.

OBLIGATIONS AND FUNDED STATUS

The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities.

(dollars in millions)	Pension (a)									Postretirement (b)
At or for the Years Ended December 31,	2015			2014			2013			2014			2013
Projected benefit obligation, beginning of period	$	409		$	323		$	368		$	2		$	7
Interest cost	15			15			14			—			—
Actuarial loss (gain) (c)	(24		)	83			(47		)	—			(5		)
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Curtailment	—			—			—			(2		)	—
Projected benefit obligation, end of period	388			409			323			—			2
Fair value of plan assets, beginning of period	359			317			347			—			—
Actual return on plan assets, net of expenses	(15		)	54			(18		)	—			—
Company contributions	1			—			—			—			—
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Fair value of plan assets, end of period	333			359			317			—			—
Funded status, end of period	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Net amounts recognized in the consolidated balance sheet:
Other assets	$	—		$	—		$	7		$	—		$	—
Other liabilities	(55		)	(50		)	(13		)	—			(2		)
Total amounts recognized	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Pretax net gain (loss) recognized in accumulated other comprehensive income or loss	$	29		$	(19	)	$	26		$	—		$	4

(a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2015 and 2014.

(b) We do not currently fund postretirement benefits.

(c) We adopted new mortality tables in 2014, which increased the plan liabilities during 2014.

The accumulated benefit obligation for U.S. pension benefit plans was $388 million at December 31, 2015 and $409 million at December 31, 2014.

Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows:

(dollars in millions)	PBO and ABO Exceeds Fair Value of Plan Assets
December 31,	2015		2014
Projected benefit obligation	$	388	$	409
Accumulated benefit obligation	388		409
Fair value of plan assets	333		359

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans:

(dollars in millions)	Pension									Postretirement
Years Ended December 31,	2015			2014			2013			2014			2013
Components of net periodic benefit cost:
Service cost	$	—		$	—		$	—		$	—		$	1
Interest cost	15			15			14			—			—
Expected return on assets	(19		)	(16		)	(15		)	—			—
Curtailment gain	—			—			—			(2		)	—
Settlement gain	—			—			—			(4		)	—
Net periodic benefit cost	(4		)	(1		)	(1		)	(6		)	1
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)	9			46			(13		)	—			(5		)
Net settlement gain	—			—			—			4			—
Total recognized in other comprehensive income or loss	9			46			(13		)	4			(5		)
Total recognized in net periodic benefit cost and other comprehensive income or loss	$	5		$	45		$	(14	)	$	(2	)	$	(4	)

We have made the following estimates relating to our combined defined benefit pension plans and our defined benefit postretirement plans:

• the estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be less than $1 million for our combined defined benefit pension plans;

• the estimated prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans; and

• the estimated amortization from accumulated other comprehensive income or loss for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be zero for our defined benefit postretirement plans.

Assumptions

The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs:

	Pension				Postretirement
December 31,	2015		2014		2015		2014
Projected benefit obligation:
Discount rate	4.26	%	3.89	%	3.45	%	3.80	%
Rate of compensation increase	—		—		N/A *		N/A *
Net periodic benefit costs:
Discount rate	3.89	%	4.83	%	3.80	%	3.80	%
Expected long-term rate of return on plan assets	5.27	%	5.29	%	N/A *		N/A *
Rate of compensation increase (average)	—		—		N/A *		N/A *

* Not applicable

Discount Rate Methodology

The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2015 and an equivalent weighted average discount rate was derived that resulted in the same liability. This single discount rate for each plan was used.

Investment Strategy

The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class.

Allocation of Plan Assets

The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation.

At December 31, 2015, the actual asset allocation for the primary asset classes was 90% in fixed income securities, 9% in equity securities, and 1% in cash and cash equivalents. The 2016 target asset allocation for the primary asset classes is 88% in fixed income securities and 12% in equity securities. The actual allocation may differ from the target allocation at any particular point in time.

The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 5.7% for the CommoLoCo Retirement Plan for 2015. The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change.

Expected Cash Flows

Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the IRC. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid.

The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2015 are as follows:

(dollars in millions)	Pension
2016	$	15
2017	15
2018	15
2019	15
2020	16
2021-2025	89

FAIR VALUE MEASUREMENTS — PLAN ASSETS

The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets.

The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

(dollars in millions)	Level 1		Level 2		Level 3		Total
December 31, 2015
Assets:
Cash and cash equivalents	$	3	$	—	$	—	$	3
Equity securities:
U.S. (a)	—		16		—		16
International (b)	—		15		—		15
Fixed income securities:
U.S. investment grade (c)	—		291		—		291
U.S. high yield (d)	—		8		—		8
Total	$	3	$	330	$	—	$	333
December 31, 2014
Assets:
Cash and cash equivalents	$	2	$	—	$	—	$	2
Equity securities:
U.S. (a)	—		19		—		19
International (b)	—		1		—		1
Fixed income securities:
U.S. investment grade (c)	—		335		—		335
U.S. high yield (d)	—		2		—		2
Total	$	2	$	357	$	—	$	359

(a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies.

(b) Includes investment mutual funds in companies in emerging and developed markets.

(c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

OMNIBUS INCENTIVE PLAN

In 2013, OMH adopted the 2013 Omnibus Incentive Plan (the “Omnibus Plan”) under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. Under this plan, as of December 31, 2015, 11,105,064 shares of authorized common stock are reserved for issuance pursuant to grants approved by OMH’s Board of Directors. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”), stock appreciation rights (“SARs”), and other stock-based awards and cash awards. SFC participates in stock awards of OMH. Unless specifically noted, the following disclosures are based on all award activity of OMH.

Service-based Awards

In connection with the initial public offering on October 16, 2013 and subsequent to the offering, OMH has granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years or less and provide the holders the right to vote and to earn dividends during the vesting period that are subject to forfeiture if the shares do not vest. The fair value for restricted units and awards is generally the closing market price of OMH’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2015, 2014, and 2013 was $47.44, $25.65, and $17.00, respectively. The total fair value of service-based awards that vested during 2015 and 2014 was $7 million and $1 million, respectively. No service-based awards vested in 2013.

The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	1,352,865		$	17.91
Granted	1,115,662		47.44
Vested	(384,902	)	18.45
Forfeited	(74,201	)	24.65
Unvested at December 31, 2015	2,009,424		33.95		2.91

Performance-based Awards

During 2015 and 2014, OMH awarded performance-based RSUs (“PRSUs”) that may be earned based on the financial performance of OMH. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2016. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2016, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2016, 2017 and 2018; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the Form 10-K filing date that occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award.

Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and cancelled, and all expense recognized to that date is reversed.

The weighted average grant date fair value of performance-based awards issued in 2015 and 2014 was $34.45 and $25.78, respectively. No performance-based awards vested in 2015 or 2014.

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	583,459		$	25.84
Granted	16,091		34.45
Forfeited	(18,437	)	35.05
Unvested at December 31, 2015	581,113		25.79		2.59

In addition, two of our executives were granted 8.203125 RSUs on September 30, 2013, for which we recorded share-based compensation expense of $131 million. This grant was subsequently amended on October 8, 2013 to reduce the number of RSUs granted to the executives by 0.859375 RSUs and to grant these units to a certain management employee. No other terms of the grant were modified. As a result of the additional grant, we recognized $14 million in additional compensation expense in the fourth quarter of 2013. There was no additional compensation expense recorded for the modification of the grant to the executives, as the fair value of the modified award was less than the fair value of the original award immediately before the terms were modified. Therefore, total compensation expense recognized for the 8.203125 units was $145 million. These RSUs were converted into the right to receive 8.203125% of the outstanding shares of OMH common stock and were also subject to an equitable adjustment for the stock split that occurred on October 9, 2013. The adjusted number of shares of OMH common stock underlying these RSUs (8,203,125 shares) were delivered to the holders in October 2013 after the conversion. The weighted average grant date fair value of these units (after conversion and subsequent stock split) was $16.00 based on an equity valuation. The shares are fully vested; however, they generally cannot be sold or otherwise transferred for five years following the date of delivery, except to the extent necessary to satisfy certain tax obligations.

Total share-based compensation expense, net of forfeitures, for all stock-based awards totaled $2 million, $1 million, and $145 million, respectively, during 2015, 2014, and 2013. The total income tax benefit recognized for stock-based compensation was $1 million in 2015, less than $1 million in 2014, and $51 million in 2013. As of December 31, 2015, there was total unrecognized compensation expense of $4 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 2.9 years.

OMH Incentive Units

On October 9, 2013, certain executives of the Company received a grant of incentive units in the Initial Stockholder. In the fourth quarter of 2015, such executives surrendered a portion of their incentive units and certain additional executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. These incentive units are subject to their continued employment with the Company and, in the case of the incentive units issued in 2015, the continued employment of both Jay Levine and John Anderson. These incentive units provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of our common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in the second quarter of 2015 related to the incentive units. No expense was recognized for these awards during 2014 or 2013.

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Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our segments coincide with how our businesses are managed. At December 31, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.”

Our segments are managed as follows:

Core Consumer Operations

• Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. Branch operations primarily conduct business in 27 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan.

• Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC owns a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status.

Non-Core Portfolio

• Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. OMH used these proceeds to acquire OneMain.

The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3, except as described below.

Due to the nature of the Fortress Acquisition, we have applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using “Segment Accounting Basis” (referred to as “historical accounting basis” in previous SEC filings), which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance.

We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
	Prior to third quarter 2014
	The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt.

Provision for finance receivable losses	Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt.
Salaries and benefits	Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Other operating expenses	Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Insurance policy benefits and claims	Directly correlated with a specific segment.

The “Segment to GAAP Adjustment” column in the following tables primarily consists of:

• interest income - the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables;

• interest expense - primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting;

• provision for finance receivable losses - the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis;

• other revenues - the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale and realized gains/losses associated with our investment portfolio; and

• other expenses - the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting.

The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2015
Interest income	$	1,115	$	455	$	68		$	8		$	—		$	11		$	1,657
Interest expense	190		87		213			55			(5		)	127			667
Provision for finance receivable losses	255		68		(2		)	1			—			17			339
Net interest income (loss) after provision for finance receivable losses	670		300		(143		)	(48		)	5			(133		)	651
Other revenues	212		5		4			42			(5		)	(15		)	243
Other expenses	622		61		33			17			—			2			735
Income (loss) before provision for (benefit from) income taxes	260		244		(172		)	(23		)	—			(150		)	159
Income before provision for income taxes attributable to non-controlling interests	—		127		—			—			—			—			127
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	260	$	117	$	(172	)	$	(23	)	$	—		$	(150	)	$	32
Assets	$	5,632	$	1,784	$	711		$	4,119		$	—		$	(58	)	$	12,188

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing			Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2014
Interest income	$	911	$	212		$	401		$	16		$	—		$	85		$	1,625
Interest expense	163		36			349			7			(5		)	133			683
Provision for finance receivable losses	200		36			128			7			—			(19		)	352
Net interest income (loss) after provision for finance receivable losses	548		140			(76		)	2			5			(29		)	590
Other revenues	215		(15		)	162			6			(5		)	382			745
Other expenses	523		30			91			10			—			3			657
Income (loss) before provision for (benefit from) income taxes	240		95			(5		)	(2		)	—			350			678
Income before provision for income taxes attributable to non-controlling interests	—		48			—			—			—			—			48
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	240	$	47		$	(5	)	$	(2	)	$	—		$	350		$	630
Assets *	$	4,218	2,536			$	3,665		$	555		$	—		$	24		$	10,998
At or for the Year Ended December 31, 2013
Interest income	$	721	$	—		$	690		$	45		$	—		$	181		$	1,637
Interest expense	149		—			539			15			—			140			843
Provision for finance receivable losses	117		—			255			—			—			(1		)	371
Net interest income after provision for finance receivable losses	455		—			(104		)	30			—			42			423
Other revenues	197		—			7			13			—			(56		)	161
Other expenses	448		—			84			174			—			3			709
Income (loss) before provision for (benefit from) income taxes	$	204	$	—		$	(181	)	$	(131	)	$	—		$	(17	)	$	(125	)
Assets *	$	3,999	$	—		$	8,487		$	611		$	—		$	(485	)	$	12,612

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified debt issuance costs of $29 million and $39 million as of December 31, 2014 and 2013, respectively, from other assets to long-term debt.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $217 million and $172 million at December 31, 2014 and 2013, respectively.

• See Note 3 for further information on the correction of the total asset segment disclosure error.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements.

The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,340
Finance receivables held for sale	—		—		819		819		793
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,398
Finance receivables held for sale	—		—		209		209		202
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		11		—		11		11
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		592		8		600
Trading and other securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading and other securities (b)	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2014, which is carried at cost.

(b) The fair value of other securities totaled $5 million at December 31, 2014.

We had no transfers between Level 1 and Level 2 during December 31, 2015 and 2014.

The following table presents changes during 2015 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3		Transfers out of Level 3 (b)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	(4	)	$	—	$	(3	)	$	1

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2015, we transferred $3 million of CMBS out of Level 3 primarily related to the greater observability of pricing inputs.

The following table presents changes during 2014 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(9	)	$	—	$	—		$	4
CMBS	—		—		—		—			3		—			3
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(9		)	3		(1		)	7
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(9		)	3		(1		)	8
Trading and other securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		(6		)	—		(1		)	—
Total trading and other securities	7		—		—		(6		)	1		(2		)	—
Total	$	22	$	—	$	—	$	(15	)	$	4	$	(3	)	$	8

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2014, we transferred $3 million of CMBS available-for-sale securities and $1 million of RMBS other securities into Level 3 primarily related to the reduced observability of pricing inputs.

(c) During 2014, we transferred $1 million of CDO/ABS available-for-sale securities, $1 million of RMBS other securities, and $1 million of CDO/ABS trading and other securities out of Level 3 primarily related to the greater observability of pricing inputs.

We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table.

Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	665 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)

(a) At December 31, 2015 and 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us.

Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants.

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *								Impairment Charges
(dollars in millions)	Level 1		Level 2		Level 3		Total
At or for the Year Ended December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11	$	3
Commercial mortgage loans	—		—		8		8		(2		)
Total	$	—	$	—	$	19	$	19	$	1
At or for the Year Ended December 31, 2014
Assets
Finance receivables held for sale	$	—	$	—	$	202	$	202	$	7
Real estate owned	—		—		19		19		15
Commercial mortgage loans	—		—		11		11		(2		)
Total	$	—	$	—	$	232	$	232	$	20

* The fair value information presented in the table is as of the date the fair value adjustment was recorded.

In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell during 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets.

In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value during 2015 and 2014 and recorded the net impairments in investment revenues.

In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in our Real Estate segment to their fair value during 2014 and recorded the writedowns in other revenues.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table.

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Finance receivables held for sale	Income approach	National market conditions Operating performance	—	N/A *
Real estate owned	Market approach	Third-party valuation	N/A *	N/A *
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A *	N/A *

* Not applicable.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

We use the following methods and assumptions to estimate fair value.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value.

Mutual Funds

The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds.

Investment Securities

We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.

We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative.

The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value.

Finance Receivables

The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.

Finance Receivables Held for Sale

We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses.

Restricted Cash and Cash Equivalents

The carrying amount of restricted cash and cash equivalents approximates fair value.

Note Receivable from Parent

The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates.

Commercial Mortgage Loans

Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses which is based on independent third-party valuations.

Real Estate Owned

We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset.

Escrow Advance Receivable

The carrying amount of escrow advance receivable approximates fair value.

Receivables from Parent and Affiliates

The carrying amount of receivables from parent and affiliates approximates fair value.

Receivables Related to Sales of Real Estate Loans and Related Trust Assets

The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value.

Long-term Debt

We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt.

We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2015, we had no debt carried at fair value under the fair value option.

We estimate the fair values associated with variable rate revolving lines of credit to be equal to par.

Payables to Parent and Affiliates

The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature.

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Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

AMENDMENTS TO CONDUIT FACILITIES

On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, $298 million was outstanding under the notes.

On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million. As of February 24, 2016, $100 million was outstanding under the notes.

On February 24, 2016, we amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36^th month following the end of the revolving period. As of February 24, 2016, no amounts were outstanding under the notes.

On February 24, 2016, we amended the note purchase agreement with the Whitford Brook 2014-VFN1 Trust to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12^th month following the end of the revolving period. As of February 24, 2016, $200 million was outstanding under the notes.

CALL OF 2013-B NOTES

On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million, which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption.

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited)

Our selected quarterly financial data for 2015 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	430	$	422	$	406	$	399
Interest expense	167		171		171		158
Provision for finance receivable losses	109		78		73		79
Other revenues	81		49		59		54
Other expenses	198		182		186		169
Income before provision for (benefit from) income taxes	37		40		35		47
Provision for (benefit from) income taxes	4		5		—		9
Net income	33		35		35		38
Net income attributable to non-controlling interests	29		32		33		33
Net income attributable to Springleaf Finance Corporation	$	4	$	3	$	2	$	5

Our selected quarterly financial data for 2014 was as follows:

(dollars in millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
Interest income	$	403		$	431	$	389	$	402
Interest expense	157			172		172		182
Provision for finance receivable losses	87			85		80		100
Other revenues	(38		)	602		90		91
Other expenses	172			182		152		151
Income (loss) before provision for (benefit from) income taxes	(51		)	594		75		60
Provision for (benefit from) income taxes	(17		)	198		29		23
Net income (loss)	(34		)	396		46		37
Net income attributable to non-controlling interests	22			26		—		—
Net income (loss) attributable to Springleaf Finance Corporation	$	(56	)	$	370	$	46	$	37

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated balance sheet and consolidated cash flow statement.

To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 4 for further information on the adoption of this ASU.

Operating Segment Reporting

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2015, our three segments include:

• Consumer and Insurance;

• Acquisitions and Servicing; and

• Real Estate.

Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary.

We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies:

Interest income	Directly correlated with a specific segment.
Interest expense	Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio
	Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows:
	Subsequent to the OneMain Acquisition
	Total average unsecured debt is allocated as follows:
	l  Consumer and Insurance - receives remainder of unallocated average debt; and
	l  Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.)
	The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively.
	For the period third quarter 2014 to the OneMain Acquisition
	Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each of its respective asset base. Any excess is allocated to Consumer and Insurance.
	Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represents the following:
	l  Consumer and Insurance - average net finance receivables including average net finance receivables held for sale;
	l  Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and
	l Other - average net finance receivables other than the periods listed below:
	l  May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments.
	l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments.
	Prior to third quarter 2014
	The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt.

Provision for finance receivable losses	Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts.
Other revenues	Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt.
Salaries and benefits	Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Other operating expenses	Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided.
Insurance policy benefits and claims	Directly correlated with a specific segment.

Finance Receivables

Finance Receivables

Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables.

We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. A significant portion of insurance claims and policyholder liabilities originate from the finance receivables. Historically, our policy has been to report them as liabilities and not net them against finance receivables; however, during the fourth quarter of 2015, we changed our presentation of unearned premiums and certain unpaid claim liabilities in the consolidated balance sheets as a reduction to net finance receivables. We believe this presentation is preferable as it aligns more closely with the presentation of these balances with our peers. We retrospectively applied this change in presentation in our consolidated balance sheets as of December 31, 2014 to ensure comparability across reporting periods. Similarly we will change comparable prior periods in our Forms 10-Q which we plan to file in 2016. As this is a change in balance sheet presentation only, there is no effect on net income (loss) or net income (loss) attributable to SFC.

Finance Receivable Revenue Recognition

Finance Receivable Revenue Recognition

We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method.

We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the loans acquired through a joint venture in which we own a 47% equity interest (the “SpringCastle Portfolio”), and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges.

For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized.

We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount.

We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables.

Purchased Credit Impaired Finance Receivables

Purchased Credit Impaired Finance Receivables

Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired (“PCI”) pool. Historically, we removed loans from a PCI pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a PCI pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of PCI loans is preferable as it enhances consistency with our industry peers.

Our policy for derecognition of PCI loans following the change described above is presented below:

As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days

Troubled Debt Restructured Finance Receivables

Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment.

We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual.

Allowance for Finance Receivable Losses

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following:

• prior finance receivable loss and delinquency experience;

• the composition of our finance receivable portfolio; and

• current economic conditions, including the levels of unemployment and personal bankruptcies.

We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses.

Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses.

We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due.

To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off.

We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit.

For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies.

For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices (one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies.

Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies.

The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses.

We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates.

Finance Receivables Held for Sale

Finance Receivables Held for Sale

Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the Consolidated Statements of Operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues.

When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables.

Real Estate Owned

Real Estate Owned

We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date.

We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred.

Reserve for Sales Recourse Obligations

Reserve for Sales Recourse Obligations

When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues.

Net Other Intangible Assets

Other Intangible Assets

At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the insurance licenses and certain domain names, which we determined to have indefinite lives.

For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value.

For indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate.

Insurance Premiums

Insurance Premiums

We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period.

We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations.

We recognize commissions on ancillary products as other revenue when earned.

We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Policy and Claim Reserves

Policy and Claim Reserves

Policy reserves for credit life, credit disability, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed.

We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities.

Acquisition Costs

Acquisition Costs

We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured.

Investment Securities

Investment Securities

We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets.

Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues.

We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability.

Impairments on Investment Securities

Impairments on Investment Securities

Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present:

• we intend to sell the security;

• it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or

• we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security).

If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date.

In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines.

If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred.

If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss.

Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income.

We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary.

Investment Revenue Recognition

Investment Revenue Recognition

We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues.

Variable Interest Entities

Variable Interest Entities

An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances.

Other Invested Assets

Other Invested Assets

Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents.

We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts.

Restricted Cash and Cash Equivalents

Restricted Cash and Cash Equivalents

We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents.

Long-term Debt

Long-term Debt

We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense.

Income Taxes

Income Taxes

We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse.

We are included in the consolidated U.S. federal and state income tax returns of OneMain Holdings, Inc., our ultimate parent company, where applicable. The tax provision and current and deferred tax balances have been presented on a separate return methodology as if we were a separate filer, with modification. ASC Topic 740 requires the method of accounting to be systematic, rational, and consistent within the broad principles of ASC Topic 740. We have modified our method of accounting such that our net operating losses and capital losses, if applicable, are considered realized when those net operating losses and/or capital losses are utilized by our parent company or other members of the consolidated group.

Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including:

• the nature, frequency, and severity of current and cumulative financial reporting losses;

• the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences;

• the carryforward periods for the net operating and capital loss carryforwards;

• the sources and timing of future taxable income; and

• tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts.

We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset.

We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority.

Derivative Financial Instruments

Derivative Financial Instruments

Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows.

We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties.

Benefit Plans

Benefit Plans

We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss.

Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses.

Share-based Compensation Plans

Share-based Compensation Plans

We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period.

Fair Value Measurements

Fair Value Measurements

Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models.

Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities.

We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments.

We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24.

In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period.

Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management.

Prior Period Revisions

PRIOR PERIOD REVISIONS

During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million and decreased provision for income taxes by $3 million. The adjustment was not material to our results of operations for 2015.

During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements. However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 24 of this report. This presentation error was not material to any previously issued financial statements.

After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated.

New Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Troubled Debt Restructurings

In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Debt Issuance Costs

In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest,which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our consolidated financial statements.

In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Push-down Accounting

In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting, to remove Securities and Exchange Commission (the “SEC”) staff guidance on push-down accounting from the Accounting Standards Codification (“ASC”). The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own push-down accounting guidance in November 2014. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Plan Accounting

In July of 2015, the FASB issued ASU 2015-12, Plan Accounting, to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

Business Combination Adjustments

In September of 2015, the FASB issued ASU 2015-16, Business Combinations, to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of December 31, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements.

ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED

Revenue Recognition

In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date, to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements.

Consolidation

In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

Short-Duration Insurance Contracts Disclosures

In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of the adoption the ASU on our consolidated financial statements.

Technical Corrections and Improvements

In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of the adoption of this ASU on our consolidated financial statements.

Balance Sheet Classification of Deferred Taxes

In November of 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation and requires all deferred tax assets (“DTAs”) and liabilities (“DTLs”), along with related valuation allowances, to be classified as noncurrent. In essence, each jurisdiction will have only one net noncurrent DTA/DTL. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning December 15, 2016. Early adoption is permitted and may be applied either prospectively or retrospectively. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements.

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Summary of Significant Accounting Policies Change in Accounting Policy (Tables) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Change in Accounting Policy [Abstract]

Cumulative effect of change in accounting policy [Table Text Block]

The effect of this change in accounting policy on income (loss) before provision for (benefit from) income taxes and net income (loss) attributable to SFC, and the cumulative effect of this change in accounting policy on shareholder’s equity attributable to SFC for the following prior periods are included in the table below.

(dollars in millions)	As Reported			As Adjusted
Income (loss) before provision for (benefit from) income taxes
Year ended December 31, 2013	$	(136	)	$	(125	)
Year ended December 31, 2014	755			678
Year ended December 31, 2015	144			159
Net income (loss) attributable to SFC
Year ended December 31, 2013	$	(83	)	$	(76	)
Year ended December 31, 2014	448			397
Year ended December 31, 2015	9			14
Shareholder’s equity attributable to SFC
January 1, 2014	$	1,328		$	1,385
January 1, 2015	2,069			2,106
January 1, 2016	2,069			2,111

Schedule of Revised Condensed Balance Sheet [Table Text Block]

Revised Condensed Consolidated Balance Sheet

	December 31, 2015						December 31, 2014
(dollars in millions)	As Reported *			As Adjusted			As Reported			As Adjusted
Assets
Cash and cash equivalents	$	321		$	321		$	749		$	749
Investment securities	604			604			2,922			2,922
Net finance receivables:
Personal loans	4,300			4,300			3,800			3,800
SpringCastle Portfolio	1,576			1,703			1,979			2,091
Real estate loans	524			538			625			639
Retail sales finance	23			23			48			48
Net finance receivables	6,423			6,564			6,452			6,578
Unearned insurance premium and claim reserves	(250		)	(250		)	(217		)	(217		)
Allowance for finance receivable losses	(219		)	(224		)	(174		)	(180		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	5,954			6,090			6,061			6,181
Finance receivables held for sale	796			793			205			202
Notes receivable from parent and affiliates	3,804			3,804			251			251
Restricted cash and cash equivalents	295			295			218			218
Other assets	281			281			474			475
Total assets	$	12,055		$	12,188		$	10,880		$	10,998
Liabilities and Shareholder’s Equity
Long-term debt	$	9,582		$	9,582		$	8,356		$	8,356
Insurance claims and policyholder liabilities	230			230			229			229
Deferred and accrued taxes	103			128			159			177
Other liabilities	217			216			255			259
Total liabilities	10,132			10,156			8,999			9,021
Shareholder’s equity:
Common stock	5			5			5			5
Additional paid-in capital	758			789			740			771
Accumulated other comprehensive income (loss)	(24		)	(24		)	3			3
Retained earnings	1,330			1,341			1,321			1,327
Springleaf Finance Corporation shareholder’s equity	2,069			2,111			2,069			2,106
Non-controlling interests	(146		)	(79		)	(188		)	(129		)
Total shareholder’s equity	1,923			2,032			1,881			1,977
Total liabilities and shareholder’s equity	$	12,055		$	12,188		$	10,880		$	10,998

* As reported in our Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated balance sheet as of December 31, 2015, has been revised in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

Schedule of Revised Condensed Income Statement [Table Text Block]

Revised Condensed Consolidated Statements of Operations

(dollars in millions)	Year Ended December 31, 2015				Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported		As Adjusted		As Reported			As Adjusted			As Reported			As Adjusted
Interest income:
Finance charges	$	1,604	$	1,597	$	1,574		$	1,564		$	1,648		$	1,637
Finance receivables held for sale originated as held for investment	61		60		60			61			—			—
Total interest income	1,665		1,657		1,634			1,625			1,648			1,637
Interest expense	667		667		683			683			843			843
Net interest income	998		990		951			942			805			794
Provision for finance receivable losses	361		339		368			352			394			371
Net interest income after provision for finance receivable losses	637		651		583			590			411			423
Other revenues:
Insurance	158		158		166			166			148			148
Investment	49		49		39			39			34			34
Net loss on repurchases and repayments of debt	—		—		(66		)	(66		)	(42		)	(42		)
Net gain on fair value adjustments on debt	—		—		1			1			—			—
Net gain on sales of real estate loans and related trust assets	—		—		702			626			—			—
Other	35		36		(13		)	(21		)	22			21
Total other revenues	242		243		829			745			162			161
Other expenses:
Operating expenses:
Salaries and benefits	364		364		321			321			447			447
Other operating expenses	299		299		261			261			197			197
Insurance policy benefits and claims	72		72		75			75			65			65
Total other expenses	735		735		657			657			709			709
Income (loss) before provision for (benefit from) income taxes	144		159		755			678			(136		)	(125		)
Provision for (benefit from) income taxes	15		18		263			233			(53		)	(49		)
Net income (loss)	129		141		492			445			(83		)	(76		)
Net income attributable to non-controlling interests	120		127		44			48			—			—
Net income (loss) attributable to Springleaf Finance Corporation	$	9	$	14	$	448		$	397		$	(83	)	$	(76	)

Joint venture

$ 8

$ 0

Schedule of Revised Condensed Cash Flow Statement [Table Text Block]

Revised Condensed Consolidated Statement of Cash Flows

(dollars in millions)	Year Ended December 31, 2015						Year Ended December 31, 2014						Year Ended December 31, 2013
	As Reported			As Adjusted			As Reported			As Adjusted			As Reported			As Adjusted
Cash flows from operating activities
Net income (loss)	$	129		$	141		$	492		$	445		$	(83	)	$	(76	)
Reconciling adjustments:
Provision for finance receivable losses	361			339			368			352			394			371
Depreciation and amortization	84			92			109			112			72			82
Deferred income tax charge (benefit)	(53		)	(50		)	18			(12		)	(118		)	(114		)
Non-cash incentive compensation from Initial Stockholder	15			15			—			—			—			—
Net gain on fair value adjustments on debt	—			—			(1		)	(1		)	—			—
Net gain on sales of real estate loans and related trust assets	—			—			(702		)	(626		)	—			—
Net loss on repurchases and repayments of debt	—			—			66			66			42			42
Share-based compensation expense, net of forfeitures	2			2			1			1			145			145
Other	(1		)	(3		)	9			17			19			21
Cash flows due to changes in:
Other assets and other liabilities	(54		)	(54		)	(9		)	(9		)	2			2
Insurance claims and policyholder liabilities	34			34			51			51			29			29
Taxes receivable and payable	111			111			(127		)	(127		)	(50		)	(50		)
Accrued interest and finance charges	(23		)	(23		)	(39		)	(39		)	(41		)	(41		)
Restricted cash and cash equivalents not reinvested	—			—			5			5			(4		)	(4		)
Other, net	(1		)	(1		)	1			1			(1		)	(1		)
Net cash provided by operating activities	604			603			242			236			406			406
Cash flows from investing activities
Net principal collections (originations) of finance receivables held for investment and held for sale	(799		)	(799		)	(94		)	(88		)	379			379
Proceeds on sales of finance receivables held for sale originated as held for investment	78			78			3,789			3,789			15			15
Cash advances on intercompany notes receivables	(3,720		)	(3,720		)	(128		)	(128		)	—			—
Principal collections on intercompany notes receivables	189			189			44			44			—			—
Available-for-sale securities purchased	(476		)	(476		)	(348		)	(348		)	(196		)	(196		)
Trading and other securities purchased	(1,474		)	(1,474		)	(2,930		)	(2,930		)	(10		)	(10		)
Available-for-sale securities called, sold, and matured	470			470			269			269			296			296
Trading and other securities called, sold, and matured	3,779			3,779			646			646			8			8
Change in notes receivable from parent and affiliate	—			—			—			—			370			370
Change in restricted cash and cash equivalents	(72		)	(72		)	93			93			(241		)	(241		)
Proceeds from sale of real estate owned	14			14			58			58			108			108
Other, net	(12		)	(12		)	—			—			(3		)	(3		)
Net cash provided by (used for) investing activities	(2,023		)	(2,023		)	1,399			1,405			726			726
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	3,028			3,028			3,557			3,557			3,765			3,765
Repayments of long-term debt	(1,960		)	(1,960		)	(4,218		)	(4,218		)	(5,868		)	(5,868		)
Change in notes payable to parent and affiliates	—			—			—			—			(31		)	(31		)
Distributions to joint venture partners	(78		)	(77		)	(627		)	(627		)	—			—
Excess tax benefit from share-based compensation	1			1			—			—			—			—
Capital contribution from parent	—			—			22			22			21			21
Net cash provided by (used for) financing activities	991			992			(1,266		)	(1,266		)	(2,113		)	(2,113		)

Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	(1		)	(1		)	(1		)
Net change in cash and cash equivalents	(428		)	(428		)	374			374			(982		)	(982		)
Cash and cash equivalents at beginning of period	749			749			375			375			1,357			1,357
Cash and cash equivalents at end of period	$	321		$	321		$	749		$	749		$	375		$	375

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Summary of Significant Accounting Policies Prior Period Revisions (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows:

(dollars in millions)	Consumer and Insurance		Real Estate		Other
Assets *
March 31, 2015	$	5,070	$	3,613	$	1,832
December 31, 2014	4,462		3,666		555
September 30, 2014	4,651		3,720		705
June 30, 2014	4,406		6,561		1,058
December 31, 2013	4,200		8,512		611

* The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03.

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Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule of components of net finance receivables by type

Components of net finance receivables by type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio		Real Estate Loans			Retail Sales Finance			Total
December 31, 2015
Gross receivables *	$	5,028		$	1,672	$	534		$	25		$	7,259
Unearned finance charges and points and fees	(833		)	—		—			(2		)	(835		)
Accrued finance charges	60			31		4			—			95
Deferred origination costs	45			—		—			—			45
Total	$	4,300		$	1,703	$	538		$	23		$	6,564
December 31, 2014
Gross receivables *	$	4,462		$	2,053	$	635		$	52		$	7,202
Unearned finance charges and points and fees	(764		)	—		(1		)	(5		)	(770		)
Accrued finance charges	58			38		5			1			102
Deferred origination costs	44			—		—			—			44
Total	$	3,800		$	2,091	$	639		$	48		$	6,578

* Gross receivables are defined as follows:

• Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;

• Finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

• Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Schedule of unused credit lines extended to customers by the Company

Unused lines of credit extended to customers by the Company were as follows:

(dollars in millions)
December 31,	2015		2014
Personal loans	$	2	$	1
SpringCastle Portfolio	365		354
Real estate loans	30		31
Total	$	397	$	386

Schedule of largest concentrations of net finance receivables

The largest concentrations of net finance receivables were as follows:

December 31,	2015				2014 *
(dollars in millions)	Amount		Percent		Amount		Percent
North Carolina	$	593	9	%	$	645	10	%
Illinois	468		7		414		6
California	429		7		540		8
Indiana	403		6		349		5
Pennsylvania	375		6		393		6
Ohio	371		6		394		6
Florida	345		5		328		5
Virginia	334		5		351		5
Other	3,246		49		3,164		49
Total	$	6,564	100	%	$	6,578	100	%

* December 31, 2014 concentrations of net finance receivables are presented in the order of December 31, 2015 state concentrations.

Summary of net finance receivables by type by days delinquent

The following is a summary of net finance receivables by type and by days delinquent:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Net finance receivables: *
60-89 days past due	$	49	$	26	$	19	$	—	$	94
90-119 days past due	41		16		3		—		60
120-149 days past due	34		12		2		1		49
150-179 days past due	31		11		2		—		44
180 days or more past due	3		1		13		—		17
Total delinquent finance receivables	158		66		39		1		264
Current	4,077		1,588		486		22		6,173
30-59 days past due	65		49		13		—		127
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Net finance receivables: *
60-89 days past due	$	36	$	34	$	13	$	1	$	84
90-119 days past due	30		21		9		—		60
120-149 days past due	24		17		5		1		47
150-179 days past due	21		16		4		—		41
180 days or more past due	2		2		13		—		17
Total delinquent finance receivables	113		90		44		2		249
Current	3,632		1,937		577		45		6,191
30-59 days past due	55		64		18		1		138
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

Schedule of performing and nonperforming net finance receivables by type

Our performing and nonperforming net finance receivables by type were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans		Retail Sales Finance		Total
December 31, 2015
Performing	$	4,191	$	1,663	$	518	$	22	$	6,394
Nonperforming	109		40		20		1		170
Total	$	4,300	$	1,703	$	538	$	23	$	6,564
December 31, 2014
Performing	$	3,723	$	2,035	$	608	$	47	$	6,413
Nonperforming	77		56		31		1		165
Total	$	3,800	$	2,091	$	639	$	48	$	6,578

Schedule of information regarding purchased credit impaired finance receivables

Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans		FA Loans *		Total
December 31, 2015
Carrying amount, net of allowance	$	350	$	89	$	439
Outstanding balance	482		136		618
Allowance for purchased credit impaired finance receivable losses	—		12		12
December 31, 2014
Carrying amount, net of allowance	$	452	$	105	$	557
Outstanding balance	628		151		779
Allowance for purchased credit impaired finance receivable losses	—		11		11

* Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2015		2014
Carrying amount	$	59	$	72
Outstanding balance	89		99

Schedule of Purchased credit impaired FA Loans held for sale [Table Text Block]

Purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2015		2014
Carrying amount	$	59	$	72
Outstanding balance	89		99

Schedule of changes in accretable yield for purchased credit impaired finance receivables

Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:

(dollars in millions)	SCP Loans			FA Loans			Total
Year Ended December 31, 2015
Balance at beginning of period	$	452		$	54		$	506
Accretion (a)	(77		)	(8		)	(85		)
Reclassifications from nonaccretable difference (b)	—			20			20
Balance at end of period	$	375		$	66		$	441
Year Ended December 31, 2014
Balance at beginning of period	$	—		$	768		$	768
Accretable yield for SpringCastle Portfolio contributed to SFC	366			—			366
Accretion (a)	(37		)	(75		)	(112		)
Reclassifications from nonaccretable difference (b)	123			19			142
Transfers due to finance receivables sold	—			(658		)	(658		)
Balance at end of period	$	452		$	54		$	506
Year Ended December 31, 2013
Balance at beginning of period	$	—		$	624		$	624
Accretion	—			(117		)	(117		)
Reclassifications from nonaccretable difference (b)	—			261			261
Balance at end of period	$	—		$	768		$	768

(a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014
Accretion	$	6	$	13

(b) Reclassifications from nonaccretable difference represents the increases in accretion resulting from higher estimated undiscounted cash flows.

Schedule of Accretion on our purchased credit impaired FA Loans held for sale [Table Text Block]

Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014
Accretion	$	6	$	13

Schedule of Troubled Debt Restructurings,Held for Investments and Held for Sale [Table Text Block]

Information regarding TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
December 31, 2015
TDR gross finance receivables (b)	$	32	$	14	$	200	$	246
TDR net finance receivables	31		13		201		245
Allowance for TDR finance receivable losses	9		4		34		47
December 31, 2014
TDR gross finance receivables (b)	$	22	$	11	$	196	$	229
TDR net finance receivables	22		10		196		228
Allowance for TDR finance receivable losses	1		3		32		36

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

(b) As defined earlier in this Note.

Schedule of TDR finance receivables held for sale (gross, net and allowance) [Table Text Block]

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
December 31, 2015
TDR gross finance receivables	$	2	$	92	$	94
TDR net finance receivables	2		92		94
December 31, 2014
TDR gross finance receivables	$	—	$	91	$	91
TDR net finance receivables	—		91		91

Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables

TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR average net receivables	$	29	$	12	$	198	$	239
TDR finance charges recognized	3		1		11		15
Year Ended December 31, 2014
TDR average net receivables (b)	$	17	$	5	$	951	$	973
TDR finance charges recognized	2		1		47		50
Year Ended December 31, 2013
TDR average net receivables	$	15	$	—	$	1,116	$	1,131
TDR finance charges recognized	1		—		63		64

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
TDR average net receivables *	$	2	$	91	$	93
TDR finance charges recognized	—		5		5
Year Ended December 31, 2014
TDR average net receivables **	$	—	$	248	$	248
TDR finance charges recognized	—		4		4

* TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

(b) TDR SpringCastle Portfolio loans average net receivables for the year ended December 31, 2014 reflect a five-month average since the SAC Capital Contribution occurred on July 31, 2014.

Schedule of trouble debt restructuring average held for sale [Table Text Block]

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
TDR average net receivables *	$	2	$	91	$	93
TDR finance charges recognized	—		5		5
Year Ended December 31, 2014
TDR average net receivables **	$	—	$	248	$	248
TDR finance charges recognized	—		4		4

* TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

Schedule of information regarding new volume of the TDR finance receivables

Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:

(dollars in millions)	Personal Loans (a)		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	33	$	7	$	21	$	61
Post-modification TDR net finance receivables:
Rate reduction	$	15	$	6	$	17	$	38
Other (b)	12		—		5		17
Total post-modification TDR net finance receivables	$	27	$	6	$	22	$	55
Number of TDR accounts	6,515		721		385		7,621
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	18	$	4	$	213	$	235
Post-modification TDR net finance receivables:
Rate reduction	$	10	$	4	$	157	$	171
Other (b)	6		—		46		52
Total post-modification TDR net finance receivables	$	16	$	4	$	203	$	223
Number of TDR accounts	4,206		468		2,374		7,048
Year Ended December 31, 2013
Pre-modification TDR net finance receivables	$	15	$	—	$	573	$	588
Post-modification TDR net finance receivables:
Rate reduction	$	8	$	—	$	543	$	551
Other (b)	4		—		50		54
Total post-modification TDR net finance receivables	$	12	$	—	$	593	$	605
Number of TDR accounts	3,240		—		7,085		10,325

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	1	$	6	$	7
Post-modification TDR net finance receivables	$	1	$	7	$	8
Number of TDR accounts	162		113		275
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		94		94

(b) “Other” modifications include extension of term and forgiveness of principal or interest.

Schedule of Information regarding new volume of TDR finance receivables held for sale [Table Text Block]

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Total
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	1	$	6	$	7
Post-modification TDR net finance receivables	$	1	$	7	$	8
Number of TDR accounts	162		113		275
Year Ended December 31, 2014
Pre-modification TDR net finance receivables	$	—	$	6	$	6
Post-modification TDR net finance receivables	$	—	$	7	$	7
Number of TDR accounts	—		94		94

Schedule of net finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause TDR finance receivables to be considered nonperforming

Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:

(dollars in millions)	Personal Loans		SpringCastle Portfolio		Real Estate Loans (a)		Total
Year Ended December 31, 2015
TDR net finance receivables (b)	$	5	$	2	$	3	$	10
Number of TDR accounts	1,221		147		46		1,414
Year Ended December 31, 2014
TDR net finance receivables (b)	$	1	$	1	$	33	$	35
Number of TDR accounts	141		53		524		718
Year Ended December 31, 2013
TDR net finance receivables (b)	$	1	$	—	$	69	$	70
Number of TDR accounts	355		—		928		1,283

(a) TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17
Year Ended December 31, 2014
TDR net finance receivables	$	3
Number of TDR accounts	49

(b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

Schedule of net finance receivables that were modified TDRs that were held for sale [Table Text Block]

TDR finance receivables held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17
Year Ended December 31, 2014
TDR net finance receivables	$	3
Number of TDR accounts	49

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Allowance for Finance Receivable Losses (Tables)

12 Months Ended

Dec. 31, 2015

Loans and Leases Receivable, Allowance [Abstract]

Schedule of changes in the allowance for finance receivable losses by finance receivable type

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, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	257			67			13			2			339
Charge-offs	(250		)	(78		)	(18		)	(3		)	(349		)
Recoveries	37			12			5			1			55
Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a)	(1		)	—			—			—			(1		)
Balance at end of period	$	173		$	4		$	46		$	1		$	224
Year Ended December 31, 2014
Balance at beginning of period	$	94		$	—		$	330		$	2		$	426
Provision for finance receivable losses	203			36			110			3			352
Charge-offs (b)	(192		)	(39		)	(61		)	(5		)	(297		)
Recoveries (c)	25			5			6			1			37
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (d)	—			—			(339		)	—			(339		)
Allowance for SpringCastle Portfolio contributed to SFC	—			1			—			—			1
Balance at end of period	$	130		$	3		$	46		$	1		$	180
Year Ended December 31, 2013
Balance at beginning of period	$	67		$	—		$	190		$	2		$	259
Provision for finance receivable losses	130			—			242			(1		)	371
Charge-offs (e)	(149		)	—			(117		)	(9		)	(275		)
Recoveries (f)	47			—			15			10			72
Transfers to finance receivables held for sale (g)	(1		)	—			—			—			(1		)
Balance at end of period	$	94		$	—		$	330		$	2		$	426

(a) During 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(b) 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.

(c) 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.

(d) During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

(e) Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13 million of additional charge-offs in March 2013.

(f) Recoveries in 2013 included $37 million ($23 million of personal loan recoveries, $9 million of real estate loan recoveries, and $5 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4 million adjustment for the subsequent buyback of certain finance receivables.

(g) During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future.

Schedule of carrying amount charged-off for purchased credit impaired loans

Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method

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, 2015
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	164		$	—		$	—		$	1		$	165
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	—			—			12			—			12
Individually evaluated for impairment (TDR finance receivables)	9			4			34			—			47
Total	$	173		$	4		$	46		$	1		$	224
Finance receivables:
Collectively evaluated for impairment	$	4,271		$	1,340		$	387		$	23		$	6,021
Purchased credit impaired finance receivables	—			350			42			—			392
TDR finance receivables	29			13			109			—			151
Total	$	4,300		$	1,703		$	538		$	23		$	6,564
Allowance for finance receivable losses as a percentage of finance receivables	4.01		%	0.25		%	8.72		%	3.46		%	3.42		%
December 31, 2014
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$	129		$	—		$	3		$	1		$	133
Purchased credit impaired finance receivables	—			—			11			—			11
TDR finance receivables	1			3			32			—			36
Total	$	130		$	3		$	46		$	1		$	180
Finance receivables:
Collectively evaluated for impairment	$	3,778		$	1,629		$	490		$	48		$	5,945
Purchased credit impaired finance receivables	—			452			44			—			496
TDR finance receivables	22			10			105			—			137
Total	$	3,800		$	2,091		$	639		$	48		$	6,578
Allowance for finance receivable losses as a percentage of finance receivables	3.44		%	0.13		%	7.27		%	1.56		%	2.74		%

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2015

Investment securities

Schedule of Available-for-sale Securities Reconciliation

Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2015
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	83	$	—	$	(1	)	$	82
Obligations of states, municipalities, and political subdivisions	88		1		—			89
Corporate debt	278		2		(13		)	267
Mortgage-backed, asset-backed, and collateralized:
Residential mortgage-backed securities (“RMBS”)	74		—		—			74
Commercial mortgage-backed securities (“CMBS”)	44		—		—			44
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”)	30		—		(1		)	29
Total bonds	597		3		(15		)	585
Preferred stock	6		—		(1		)	5
Other long-term investments	1		—		—			1
Total (a)	$	604	$	3	$	(16	)	$	591
December 31, 2014
Fixed maturity available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	$	61	$	3	$	—		$	64
Obligations of states, municipalities, and political subdivisions	99		3		—			102
Certificates of deposit and commercial paper (b)	1		—		—			1
Corporate debt	256		12		(1		)	267
Mortgage-backed, asset-backed, and collateralized:
RMBS	71		2		—			73
CMBS	25		—		(1		)	24
CDO/ABS	61		—		—			61
Total bonds	574		20		(2		)	592
Preferred stock	7		—		—			7
Other long-term investments	1		—		—			1
Total (a)	$	582	$	20	$	(2	)	$	600

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 and 2014, which is classified as a restricted investment and carried at cost.

(b) Includes certificates of deposit pledged as collateral, totaling $1 million at December 31, 2014, primarily to support bank lines of credit.

Schedule of fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in millions)	Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses *			Fair Value		Unrealized Losses
December 31, 2015
Bonds:
U.S. government and government sponsored entities	$	76	$	(1	)	$	—	$	—		$	76	$	(1	)
Obligations of states, municipalities, and political subdivisions	36		—			2		—			38		—
Corporate debt	189		(13		)	7		—			196		(13		)
RMBS	68		—			—		—			68		—
CMBS	36		—			5		—			41		—
CDO/ABS	29		(1		)	—		—			29		(1		)
Total bonds	434		(15		)	14		—			448		(15		)
Preferred stock	—		—			6		(1		)	6		(1		)
Other long-term investments	1		—			—		—			1		—
Total	$	435	$	(15	)	$	20	$	(1	)	$	455	$	(16	)
December 31, 2014
Bonds:
U.S. government and government sponsored entities	$	—	$	—		$	1	$	—		$	1	$	—
Obligations of states, municipalities, and political subdivisions	27		—			1		—			28		—
Corporate debt	36		(1		)	6		—			42		(1		)
RMBS	9		—			—		—			9		—
CMBS	16		(1		)	2		—			18		(1		)
CDO/ABS	46		—			—		—			46		—
Total bonds	134		(2		)	10		—			144		(2		)
Preferred stock	6		—			—		—			6		—
Total	$	140	$	(2	)	$	10	$	—		$	150	$	(2	)

* Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above.

Schedule of contractual maturities of fixed-maturity available-for-sale securities

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2015 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	96	$	96
Due after 1 year through 5 years	165		166
Due after 5 years through 10 years	54		55
Due after 10 years	123		132
Mortgage-backed, asset-backed, and collateralized securities	147		148
Total	$	585	$	597

Schedule of fair value of trading securities by type

The fair value of trading and other securities by type was as follows:

(dollars in millions)
December 31,	2015		2014
Fixed maturity trading and other securities:
Bonds:
U.S. government and government sponsored entities	$	—	$	302
Obligations of states, municipalities, and political subdivisions	—		14
Certificates of deposit and commercial paper	—		238
Non-U.S. government and government sponsored entities	—		20
Corporate debt	10		1,056
Mortgage-backed, asset-backed, and collateralized:
RMBS	—		35
CMBS	2		149
CDO/ABS	—		507
Total *	$	12	$	2,321

* The fair value of other securities totaled $2 million at December 31, 2015 and $5 million at December 31, 2014.

Available-for-sale securities

Investment securities

Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities

The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Proceeds from sales and redemptions	$	416		$	260		$	254
Realized gains	$	15		$	9		$	4
Realized losses	(1		)	(1		)	(2		)
Net realized gains	$	14		$	8		$	2

Trading securities

Investment securities

Schedule of net unrealized and realized gains (losses) on trading securities

The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014
Net unrealized gains (losses) on trading and other securities held at year end *	$	4		$	(9	)
Net realized gains (losses) on trading and other securities sold or redeemed during the year *	(3		)	5
Total	$	1		$	(4	)

* The net unrealized and realized gains (losses) on our other securities for the year ended December 31, 2013 were less than $1 million and, therefore, are not quantified in the table above.

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2015

Other Assets [Abstract]

Schedule of components of other assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2015		2014
Fixed assets, net (a)	$	83	$	73
Other investments (b)	67		104
Prepaid expenses and deferred charges (c)	35		23
Ceded insurance reserves	22		22
Other intangible assets	16		20
Escrow advance receivable	11		8
Cost basis investments	10		—
Receivables from parent and affiliates	9		11
Current tax receivable (d)	8		105
Real estate owned	8		13
Receivables related to sales of real estate loans and related trust assets (e)	5		79
Other	7		17
Total	$	281	$	475

(a) Fixed assets were net of accumulated depreciation of $173 million at December 31, 2015 and $167 million at December 31, 2014.

(b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income.

(c) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of December 31, 2014.

(d) Current tax receivable includes current federal and state tax assets.

(e) Receivables related to sales of real estate loans and related trust assets includes $5 million and $64 million, respectively, of holdback provisions as of December 31, 2015 and 2014.

Schedule of gross carrying amount and accumulated amortization, in total and by major intangible asset class

The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows:

(dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Other Intangible Assets
December 31, 2015
Value of business acquired (“VOBA”)	$	36	$	(32	)	$	4
Customer relationships	18		(18		)	—
Licenses	12		—			12
Customer lists	9		(9		)	—
Total	$	75	$	(59	)	$	16
December 31, 2014
VOBA	$	36	$	(32	)	$	4
Customer relationships	18		(15		)	3
Licenses	12		—			12
Customer lists	9		(8		)	1
Total	$	75	$	(55	)	$	20

Schedule of estimated aggregate amortization of other intangible assets

The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below.

(dollars in millions)	Estimated Aggregate Amortization Expense
2016	$	1
2017 *	—
2018 *	—
2019 *	—
2020 *	—

* Amortization expense is less than $1 million for each year subsequent to 2016 and, therefore, is not quantified in the table above.

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Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of carrying value and fair value of long-term debt by type

Carrying value and fair value of long-term debt by type were as follows:

	December 31, 2015				December 31, 2014
(dollars in millions)	Carrying Value		Fair Value		Carrying Value *		Fair Value
Senior debt	$	9,410	$	9,753	$	8,184	$	8,920
Junior subordinated debt	172		245		172		262
Total	$	9,582	$	9,998	$	8,356	$	9,182

* As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt - senior debt as of December 31, 2014.

Schedule of weighted average interest rates on long-term debt by type

Weighted average effective interest rates on long-term debt by type were as follows:

	Years Ended December 31,						At December 31,
	2015		2014		2013		2015		2014
Senior debt	6.96	%	7.10	%	7.06	%	6.66	%	7.16	%
Junior subordinated debt	12.26		12.26		12.26		12.26		12.26
Total	7.05		7.19		7.14		6.76		7.26

Schedule of principal maturities of long-term debt by type of debt

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2015 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Revolving Conduit Facilities		Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.41% - 6.82%			1.65% - 3.65%		5.25% - 8.25%			6.00%
First quarter 2016	$	—		$	—	$	—		$	—	$	—
Second quarter 2016	—			—		—			—		—
Third quarter 2016	—			—		375			—		375
Fourth quarter 2016	—			—		—			—		—
2016	—			—		375			—		375
2017	—			—		1,903			—		1,903
2018	—			—		—			—		—
2019	—			—		700			—		700
2020	—			—		300			—		300
2021-2067	—			—		950			350		1,300
Securitizations (b)	4,323			—		—			—		4,323
Revolving conduit facilities (b)	—			1,200		—			—		1,200
Total principal maturities	$	4,323		$	1,200	$	4,228		$	350	$	10,101
Total carrying amount (c)	$	4,313		$	1,200	$	3,897		$	172	$	9,582
Debt issuance costs (d)	$	(15	)	$	—	$	(14	)	$	—	$	(29	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2015.

(b) Securitizations and borrowing under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) The net carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or (iii) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value.

(d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which we continue to report in other assets.

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Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2015

Variable Interest Entities

Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows:

(dollars in millions)
December 31,	2015		2014
Assets
Cash and cash equivalents (a)	$	7	$	52
Finance receivables:
Personal loans	3,621		1,853
SpringCastle Portfolio	1,703		2,091
Allowance for finance receivable losses	128		72
Finance receivables held for sale	435		—
Restricted cash and cash equivalents	282		210
Other assets (a)	48		23
Liabilities
Long-term debt (b)	$	5,513	$	3,630
Other liabilities (a)	9		8

(a) In connection with OMH’s disclosure integration with OneMain, we have expanded our presentation to include cash and cash equivalents, other assets and other liabilities associated with our securitization trusts.

(b) As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt.

Schedule of Variable Interest Entities Sale of Previously Retained Mortgage Backed Securities and Asset Backed Securities [Table Text Block]

During 2013, we sold the following previously retained mortgage-backed notes:

(dollars in millions)	Principal Amount of Previously Retained Notes Issued		Carrying Amount of Additional Debt Recorded
Mortgage Securitizations
SLFMT 2012-2	$	20	$	21
SLFMT 2012-3	8		8
SLFMT 2013-2	158		149
SLFMT 2013-3	23		23

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of changes in the notional amounts of cross currency interest rate swap agreements and foreign currency forward agreement

Changes in the notional amounts of our cross currency interest rate swap agreements were as follows:

(dollars in millions)
At or for the Year Ended December 31,	2013
Balance at beginning of period	$	417
Discontinued and terminated contracts	(417		)
Balance at end of period	$	—

Schedule of derivative adjustments included in other revenues - other

Derivative adjustments included in other revenues — other consisted of the following:

(dollars in millions)
Year Ended December 31,	2013
Net interest income	$	9
Mark to market losses	(8		)
Total	$	1

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Insurance (Tables)

12 Months Ended

Dec. 31, 2015

Insurance [Abstract]

Schedule of components of insurance claims and policyholder liabilities

Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows:

(dollars in millions)
December 31,	2015		2014
Finance receivable related:
Payable to SFC:
Unearned premium reserves	$	222	$	194
Claim reserves	28		23
Subtotal (a)	250		217
Payable to third-party beneficiaries:
Benefit reserves	113		107
Claim reserves	4		5
Subtotal (b)	117		112
Non-finance receivable related:
Benefit reserves	72		75
Claim reserves	41		42
Subtotal (b)	113		117
Total	$	480	$	446

(a) Reported as a contra-asset to net finance receivables in connection with the OneMain policy integration.

(b) Reported in insurance claims and policyholder liabilities.

Schedule of insurance claims and policyholder liabilities assumed from other insurers

Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits included the following amounts assumed from other insurers:

(dollars in millions)
December 31,	2015		2014
Non-affiliated insurance companies	$	58	$	15
AIG affiliated insurance companies*	—		43
Total	$	58	$	58

* As a result of the offering of OMH’s common stock in May of 2015, the economic interests of AIG is no longer material; therefore, the reinsurance agreements with insurers that are subsidiaries of AIG as of December 31, 2015 have not been segregated.

Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable

Changes in the reserve for unpaid claims and loss adjustment expenses, net of reinsurance recoverable:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014			2013
Balance at beginning of period	$	48		$	46		$	51
Additions for losses and loss adjustment expenses incurred to:
Current year	64			65			59
Prior years *	—			(3		)	(6		)
Total	64			62			53
Reductions for losses and loss adjustment expenses paid related to:
Current year	(40		)	(39		)	(35		)
Prior years	(21		)	(21		)	(23		)
Total	(61		)	(60		)	(58		)
Balance at end of period	$	51		$	48		$	46

* Reflects a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 and $6 million at December 31, 2013 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected.

Schedule of statutory net income for insurance companies by type of insurance

Statutory net income (loss) for our insurance companies by type of insurance was as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Property and casualty	$	15		$	16		$	41
Life and disability	(1		)	(2		)	3

Schedule of statutory capital and surplus for insurance companies by type of insurance

Statutory capital and surplus for our insurance companies by type of insurance were as follows:

(dollars in millions)
December 31,	2015		2014
Property and casualty	$	76	$	108
Life and disability	123		171

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Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Other Liabilities Disclosure [Abstract]

Schedule of components of other liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2015		2014
Retirement plans	$	55	$	50
Accrued interest on debt	55		57
Payables to parent and affiliates *	24		48
Other accrued expenses and accounts payable	17		30
Loan principal warranty reserve	15		24
Salary and benefit liabilities	14		11
Bank overdrafts	14		5
Other insurance liabilities	5		4
Other	17		30
Total	$	216	$	259

* See Note 11 for further information on payables to parent and affiliates.

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Capital Stock (Tables)

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Schedule of par value and shares authorized

Par value and shares authorized at December 31, 2015 were as follows:

	Special Stock		Common Stock
Par value	$	—	$	0.50
Shares authorized	25,000,000		25,000,000

Schedule of shares issued and outstanding

Shares issued and outstanding were as follows:

	Special Stock		Common Stock
December 31,	2015	2014	2015	2014
Shares issued and outstanding	—	—	10,160,020	10,160,020

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income (loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities			Retirement Plan Liabilities Adjustments			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(12		)	(6		)	—			(18		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(9		)	—			—			(9		)
Balance at end of period	$	(9	)	$	(19	)	$	4		$	(24	)
Year Ended December 31, 2014
Balance at beginning of period	$	4		$	20		$	4		$	28
Other comprehensive income (loss) before reclassifications	13			(33		)	—			(20		)
Reclassification adjustments from accumulated other comprehensive income	(5		)	—			—			(5		)
Balance at end of period	$	12		$	(13	)	$	4		$	3
Year Ended December 31, 2013
Balance at beginning of period	$	13		$	8		$	5		$	26
Other comprehensive income (loss) before reclassifications	(8		)	12			(1		)	3
Reclassification adjustments from accumulated other comprehensive income	(1		)	—			—			(1		)
Balance at end of period	$	4		$	20		$	4		$	28

Schedule of reclassification adjustments from accumulated other comprehensive income (loss)

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Unrealized gains on available-for-sale securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	8		$	2
Income tax effect	(5		)	(3		)	(1		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	$	9		$	5		$	1

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Components of income (loss) before provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015		2014		2013
Income (loss) before provision for (benefit from) income taxes - U.S. operations	$	152	$	676	$	(121	)
Income (loss) before provision for (benefit from) income taxes - foreign operations	7		2		(4		)
Total	$	159	$	678	$	(125	)

Schedule of components of benefit from income taxes

Components of provision for (benefit from) income taxes were as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Current:
Federal	$	63		$	228		$	62
Foreign	—			—			1
State	5			17			2
Total current	68			245			65
Deferred:
Federal	(46		)	(10		)	(103		)
Foreign	—			—			1
State	(4		)	(2		)	(12		)
Total deferred	(50		)	(12		)	(114		)
Total	$	18		$	233		$	(49	)

Schedule of reconciliations of statutory federal income tax rate to effective tax rate

Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows:

Years Ended December 31,	2015		2014		2013
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Non-controlling interests	(27.91	)	(2.51	)	—
Nondeductible compensation	3.39		—		(2.16	)
Nontaxable investment income	(0.29	)	(0.14	)	1.20
State income taxes, net of federal	0.23		1.50		4.60
Foreign operations	0.12		0.51		(2.91	)
Interest and penalties on prior year tax returns	—		(0.14	)	(4.75	)
Change in tax status	—		—		9.07
Other, net	0.58		0.15		(0.66	)
Effective income tax rate	11.12	%	34.37	%	39.39	%

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows:

(dollars in millions)
Years Ended December 31,	2015			2014			2013
Balance at beginning of year	$	4		$	2		$	2
Increases in tax positions for prior years	4			3			—
Decreases in tax positions for prior years	(2		)	—			—
Increases in tax positions for current years	4			—			—
Lapse in statute of limitations	—			(1		)	—
Settlements with tax authorities	(1		)	—			—
Balance at end of year	$	9		$	4		$	2

Schedule of components of deferred tax assets and liabilities

Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2015			2014
Deferred tax assets:
Allowance for loan losses	$	95		$	81
Capital loss carryforward	27			—
Pension/employee benefits	26			20
State taxes, net of federal	19			20
Net operating losses and tax attributes	16			19
Joint venture	8			—
Legal and warranty reserve	6			9
Deferred insurance commissions	5			3
Payment protection insurance liability	2			5
Other	8			5
Total	212			162
Deferred tax liabilities:
Debt writedown	150			194
Impact of tax accounting method change	76			—
Mark-to-market	21			51
Discount - debt exchange	20			23
Insurance reserves	15			10
Other intangible assets	5			7
Joint venture	—			5
Other	—			5
Total	287			295
Net deferred tax liabilities before valuation allowance	(75		)	(133		)
Valuation allowance	(38		)	(44		)
Net deferred tax liabilities	$	(113	)	$	(177	)

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Lease Commitments, Rent Expense, and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition

Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows:

(dollars in millions)	Lease Commitments
First quarter 2016	$	7
Second quarter 2016	7
Third quarter 2016	7
Fourth quarter 2016	6
2016	27
2017	21
2018	15
2019	9
2020	4
2021+	1
Total	$	77

Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations

The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2015			2014		2013
Balance at beginning of period	$	24		$	5	$	5
Recourse losses	(2		)	—		—
Provision for recourse obligations, net of recoveries *	(7		)	19		—
Balance at end of period	$	15		$	24	$	5

* Reflects the elimination of the reserve associated with other prior sales of finance receivables.

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of funded status of the defined benefit pension plans and other postretirement benefit plans

We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities.

(dollars in millions)	Pension (a)									Postretirement (b)
At or for the Years Ended December 31,	2015			2014			2013			2014			2013
Projected benefit obligation, beginning of period	$	409		$	323		$	368		$	2		$	7
Interest cost	15			15			14			—			—
Actuarial loss (gain) (c)	(24		)	83			(47		)	—			(5		)
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Curtailment	—			—			—			(2		)	—
Projected benefit obligation, end of period	388			409			323			—			2
Fair value of plan assets, beginning of period	359			317			347			—			—
Actual return on plan assets, net of expenses	(15		)	54			(18		)	—			—
Company contributions	1			—			—			—			—
Benefits paid:
Plan assets	(12		)	(12		)	(12		)	—			—
Fair value of plan assets, end of period	333			359			317			—			—
Funded status, end of period	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Net amounts recognized in the consolidated balance sheet:
Other assets	$	—		$	—		$	7		$	—		$	—
Other liabilities	(55		)	(50		)	(13		)	—			(2		)
Total amounts recognized	$	(55	)	$	(50	)	$	(6	)	$	—		$	(2	)
Pretax net gain (loss) recognized in accumulated other comprehensive income or loss	$	29		$	(19	)	$	26		$	—		$	4

(a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2015 and 2014.

(b) We do not currently fund postretirement benefits.

(c) We adopted new mortality tables in 2014, which increased the plan liabilities during 2014.

Schedule of defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets

Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows:

(dollars in millions)	PBO and ABO Exceeds Fair Value of Plan Assets
December 31,	2015		2014
Projected benefit obligation	$	388	$	409
Accumulated benefit obligation	388		409
Fair value of plan assets	333		359

Schedule of components of net periodic benefit cost in income and other amounts recognized in accumulated other comprehensive income or loss

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans:

(dollars in millions)	Pension									Postretirement
Years Ended December 31,	2015			2014			2013			2014			2013
Components of net periodic benefit cost:
Service cost	$	—		$	—		$	—		$	—		$	1
Interest cost	15			15			14			—			—
Expected return on assets	(19		)	(16		)	(15		)	—			—
Curtailment gain	—			—			—			(2		)	—
Settlement gain	—			—			—			(4		)	—
Net periodic benefit cost	(4		)	(1		)	(1		)	(6		)	1
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)	9			46			(13		)	—			(5		)
Net settlement gain	—			—			—			4			—
Total recognized in other comprehensive income or loss	9			46			(13		)	4			(5		)
Total recognized in net periodic benefit cost and other comprehensive income or loss	$	5		$	45		$	(14	)	$	(2	)	$	(4	)

Summary of weighted average assumptions used to determine projected benefit obligations and net periodic benefit costs

The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs:

	Pension				Postretirement
December 31,	2015		2014		2015		2014
Projected benefit obligation:
Discount rate	4.26	%	3.89	%	3.45	%	3.80	%
Rate of compensation increase	—		—		N/A *		N/A *
Net periodic benefit costs:
Discount rate	3.89	%	4.83	%	3.80	%	3.80	%
Expected long-term rate of return on plan assets	5.27	%	5.29	%	N/A *		N/A *
Rate of compensation increase (average)	—		—		N/A *		N/A *

* Not applicable

Schedule of expected future benefit payments, net of participants' contributions, of defined benefit pension plans and other postretirement benefit plans

The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2015 are as follows:

(dollars in millions)	Pension
2016	$	15
2017	15
2018	15
2019	15
2020	16
2021-2025	89

Schedule of plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs utilized to determine fair value

The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

(dollars in millions)	Level 1		Level 2		Level 3		Total
December 31, 2015
Assets:
Cash and cash equivalents	$	3	$	—	$	—	$	3
Equity securities:
U.S. (a)	—		16		—		16
International (b)	—		15		—		15
Fixed income securities:
U.S. investment grade (c)	—		291		—		291
U.S. high yield (d)	—		8		—		8
Total	$	3	$	330	$	—	$	333
December 31, 2014
Assets:
Cash and cash equivalents	$	2	$	—	$	—	$	2
Equity securities:
U.S. (a)	—		19		—		19
International (b)	—		1		—		1
Fixed income securities:
U.S. investment grade (c)	—		335		—		335
U.S. high yield (d)	—		2		—		2
Total	$	2	$	357	$	—	$	359

(a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies.

(b) Includes investment mutual funds in companies in emerging and developed markets.

(c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade.

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of restricted stock activity

The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	1,352,865		$	17.91
Granted	1,115,662		47.44
Vested	(384,902	)	18.45
Forfeited	(74,201	)	24.65
Unvested at December 31, 2015	2,009,424		33.95		2.91

Summary of performance activity

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2015:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2015	583,459		$	25.84
Granted	16,091		34.45
Forfeited	(18,437	)	35.05
Unvested at December 31, 2015	581,113		25.79		2.59

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts

The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2015
Interest income	$	1,115	$	455	$	68		$	8		$	—		$	11		$	1,657
Interest expense	190		87		213			55			(5		)	127			667
Provision for finance receivable losses	255		68		(2		)	1			—			17			339
Net interest income (loss) after provision for finance receivable losses	670		300		(143		)	(48		)	5			(133		)	651
Other revenues	212		5		4			42			(5		)	(15		)	243
Other expenses	622		61		33			17			—			2			735
Income (loss) before provision for (benefit from) income taxes	260		244		(172		)	(23		)	—			(150		)	159
Income before provision for income taxes attributable to non-controlling interests	—		127		—			—			—			—			127
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	260	$	117	$	(172	)	$	(23	)	$	—		$	(150	)	$	32
Assets	$	5,632	$	1,784	$	711		$	4,119		$	—		$	(58	)	$	12,188

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing			Real Estate			Other			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2014
Interest income	$	911	$	212		$	401		$	16		$	—		$	85		$	1,625
Interest expense	163		36			349			7			(5		)	133			683
Provision for finance receivable losses	200		36			128			7			—			(19		)	352
Net interest income (loss) after provision for finance receivable losses	548		140			(76		)	2			5			(29		)	590
Other revenues	215		(15		)	162			6			(5		)	382			745
Other expenses	523		30			91			10			—			3			657
Income (loss) before provision for (benefit from) income taxes	240		95			(5		)	(2		)	—			350			678
Income before provision for income taxes attributable to non-controlling interests	—		48			—			—			—			—			48
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation	$	240	$	47		$	(5	)	$	(2	)	$	—		$	350		$	630
Assets *	$	4,218	2,536			$	3,665		$	555		$	—		$	24		$	10,998
At or for the Year Ended December 31, 2013
Interest income	$	721	$	—		$	690		$	45		$	—		$	181		$	1,637
Interest expense	149		—			539			15			—			140			843
Provision for finance receivable losses	117		—			255			—			—			(1		)	371
Net interest income after provision for finance receivable losses	455		—			(104		)	30			—			42			423
Other revenues	197		—			7			13			—			(56		)	161
Other expenses	448		—			84			174			—			3			709
Income (loss) before provision for (benefit from) income taxes	$	204	$	—		$	(181	)	$	(131	)	$	—		$	(17	)	$	(125	)
Assets *	$	3,999	$	—		$	8,487		$	611		$	—		$	(485	)	$	12,612

* Assets reflect the following:

• As a result of our early adoption of ASU 2015-03, we reclassified debt issuance costs of $29 million and $39 million as of December 31, 2014 and 2013, respectively, from other assets to long-term debt.

• In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $217 million and $172 million at December 31, 2014 and 2013, respectively.

• See Note 3 for further information on the correction of the total asset segment disclosure error.

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value

The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash and cash equivalents	$	321	$	—	$	—	$	321	$	321
Investment securities	—		602		2		604		604
Net finance receivables, less allowance for finance receivable losses	—		—		6,897		6,897		6,340
Finance receivables held for sale	—		—		819		819		793
Notes receivable from parent and affiliates	—		3,804		—		3,804		3,804
Restricted cash and cash equivalents	295		—		—		295		295
Other assets:
Commercial mortgage loans	—		—		62		62		62
Escrow advance receivable	—		—		11		11		11
Receivables from parent and affiliates	—		9		—		9		9
Receivables related to sales of real estate loans and related trust assets	—		1		—		1		5
Liabilities
Long-term debt	$	—	$	9,998	$	—	$	9,998	$	9,582
Payables to parent and affiliates	—		24		—		24		24
December 31, 2014
Assets
Cash and cash equivalents	$	584	$	165	$	—	$	749	$	749
Investment securities	—		2,913		9		2,922		2,922
Net finance receivables, less allowance for finance receivable losses	—		—		6,949		6,949		6,398
Finance receivables held for sale	—		—		209		209		202
Note receivable from parent	—		251		—		251		251
Restricted cash and cash equivalents	218		—		—		218		218
Other assets:
Commercial mortgage loans	—		—		78		78		85
Escrow advance receivable	—		—		8		8		8
Receivables from parent and affiliates	—		11		—		11		11
Receivables related to sales of real estate loans and related trust assets	—		67		—		67		79
Liabilities
Long-term debt	$	—	$	9,182	$	—	$	9,182	$	8,356
Payables to parent and affiliates	—		48		—		48		48

Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash equivalents in mutual funds	$	224	$	—	$	—	$	224
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		82		—		82
Obligations of states, municipalities, and political subdivisions	—		89		—		89
Corporate debt	—		267		—		267
RMBS	—		74		—		74
CMBS	—		44		—		44
CDO/ABS	—		29		—		29
Total bonds	—		585		—		585
Preferred stock	—		5		—		5
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		590		1		591
Trading and other securities:
Bonds:
Corporate debt	—		10		—		10
CMBS	—		2		—		2
Total trading and other securities (b)	—		12		—		12
Total investment securities	—		602		1		603
Restricted cash in mutual funds	276		—		—		276
Total	$	500	$	602	$	1	$	1,103

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015, which is carried at cost.

(b) The fair value of other securities totaled $2 million at December 31, 2015.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash equivalents in mutual funds	$	236	$	—	$	—	$	236
Cash equivalents in certificates of deposit and commercial paper	—		165		—		165
Investment securities:
Available-for-sale securities:
Bonds:
U.S. government and government sponsored entities	—		64		—		64
Obligations of states, municipalities, and political subdivisions	—		102		—		102
Certificates of deposit and commercial paper	—		1		—		1
Corporate debt	—		263		4		267
RMBS	—		73		—		73
CMBS	—		21		3		24
CDO/ABS	—		61		—		61
Total bonds	—		585		7		592
Preferred stock	—		7		—		7
Other long-term investments	—		—		1		1
Total available-for-sale securities (a)	—		592		8		600
Trading and other securities:
Bonds:
U.S. government and government sponsored entities	—		302		—		302
Obligations of states, municipalities, and political subdivisions	—		14		—		14
Certificates of deposit and commercial paper	—		238		—		238
Non-U.S. government and government sponsored entities	—		20		—		20
Corporate debt	—		1,056		—		1,056
RMBS	—		35		—		35
CMBS	—		149		—		149
CDO/ABS	—		507		—		507
Total trading and other securities (b)	—		2,321		—		2,321
Total investment securities	—		2,913		8		2,921
Restricted cash in mutual funds	207		—		—		207
Total	$	443	$	3,078	$	8	$	3,529

(a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2014, which is carried at cost.

(b) The fair value of other securities totaled $5 million at December 31, 2014.

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents changes during 2015 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3		Transfers out of Level 3 (b)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2015
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	4	$	—	$	—	$	(4	)	$	—	$	—		$	—
CMBS	3		—		—		—			—		(3		)	—
Total bonds	7		—		—		(4		)	—		(3		)	—
Other long-term investments	1		—		—		—			—		—			1
Total	$	8	$	—	$	—	$	(4	)	$	—	$	(3	)	$	1

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2015, we transferred $3 million of CMBS out of Level 3 primarily related to the greater observability of pricing inputs.

The following table presents changes during 2014 in Level 3 assets measured at fair value on a recurring basis:

			Net gains (losses) included in:				Purchases, sales, issues, settlements (a)			Transfers into Level 3 (b)		Transfers out of Level 3 (c)			Balance at end of period
(dollars in millions)	Balance at beginning of period		Other revenues		Other comprehensive income (loss)
Year Ended December 31, 2014
Investment securities:
Available-for-sale securities:
Bonds:
Corporate debt	$	13	$	—	$	—	$	(9	)	$	—	$	—		$	4
CMBS	—		—		—		—			3		—			3
CDO/ABS	1		—		—		—			—		(1		)	—
Total bonds	14		—		—		(9		)	3		(1		)	7
Other long-term investments	1		—		—		—			—		—			1
Total available-for-sale securities	15		—		—		(9		)	3		(1		)	8
Trading and other securities:
Bonds:
RMBS	—		—		—		—			1		(1		)	—
CDO/ABS	7		—		—		(6		)	—		(1		)	—
Total trading and other securities	7		—		—		(6		)	1		(2		)	—
Total	$	22	$	—	$	—	$	(15	)	$	4	$	(3	)	$	8

(a) “Purchases, sales, issues, and settlements” column consisted only of settlements.

(b) During 2014, we transferred $3 million of CMBS available-for-sale securities and $1 million of RMBS other securities into Level 3 primarily related to the reduced observability of pricing inputs.

(c) During 2014, we transferred $1 million of CDO/ABS available-for-sale securities, $1 million of RMBS other securities, and $1 million of CDO/ABS trading and other securities out of Level 3 primarily related to the greater observability of pricing inputs.

Quantitative information about Level 3 inputs for assets measured on a recurring basis

Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Corporate debt	Discounted cash flows	Yield	—	1.05% (a)
RMBS	Discounted cash flows	Spread	665 bps (a)	736 bps (a) (b)
CMBS	Discounted cash flows	Spread	—	139 bps (a) (b)
Other long-term investments	Discounted cash flows and indicative valuations	Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity	N/A (c)	N/A (c)

(a) At December 31, 2015 and 2014, RMBS consisted of one bond, which was less than $1 million. At December 31, 2014, corporate debt and CMBS also consisted of one bond.

(b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above.

(c) Not applicable.

Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded

Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows:

	Fair Value Measurements Using *								Impairment Charges
(dollars in millions)	Level 1		Level 2		Level 3		Total
At or for the Year Ended December 31, 2015
Assets
Real estate owned	$	—	$	—	$	11	$	11	$	3
Commercial mortgage loans	—		—		8		8		(2		)
Total	$	—	$	—	$	19	$	19	$	1
At or for the Year Ended December 31, 2014
Assets
Finance receivables held for sale	$	—	$	—	$	202	$	202	$	7
Real estate owned	—		—		19		19		15
Commercial mortgage loans	—		—		11		11		(2		)
Total	$	—	$	—	$	232	$	232	$	20

* The fair value information presented in the table is as of the date the fair value adjustment was recorded.

Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2015 and 2014 is as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2015	December 31, 2014
Finance receivables held for sale	Income approach	National market conditions Operating performance	—	N/A *
Real estate owned	Market approach	Third-party valuation	N/A *	N/A *
Commercial mortgage loans	Market approach Income approach Cost approach	Local market conditions Nature of investment Comparable property sales Operating performance	N/A *	N/A *

* Not applicable.

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of selected quarterly financial data

Our selected quarterly financial data for 2015 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	430	$	422	$	406	$	399
Interest expense	167		171		171		158
Provision for finance receivable losses	109		78		73		79
Other revenues	81		49		59		54
Other expenses	198		182		186		169
Income before provision for (benefit from) income taxes	37		40		35		47
Provision for (benefit from) income taxes	4		5		—		9
Net income	33		35		35		38
Net income attributable to non-controlling interests	29		32		33		33
Net income attributable to Springleaf Finance Corporation	$	4	$	3	$	2	$	5

Our selected quarterly financial data for 2014 was as follows:

(dollars in millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
Interest income	$	403		$	431	$	389	$	402
Interest expense	157			172		172		182
Provision for finance receivable losses	87			85		80		100
Other revenues	(38		)	602		90		91
Other expenses	172			182		152		151
Income (loss) before provision for (benefit from) income taxes	(51		)	594		75		60
Provision for (benefit from) income taxes	(17		)	198		29		23
Net income (loss)	(34		)	396		46		37
Net income attributable to non-controlling interests	22			26		—		—
Net income (loss) attributable to Springleaf Finance Corporation	$	(56	)	$	370	$	46	$	37

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Nature of Operations - paragraph 2 (Details)	Dec. 31, 2015
Springleaf Financial Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage - SpringCastle	58.00%

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Nature of Operations - paragraph 3 (Details) account in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) employee account state branch	Dec. 31, 2014 USD ($)
Related Party Transaction [Line Items]
Net finance receivables | $	$ 6,564	$ 6,578
Number of states in which entity operates | state	27
Minimum [Member]
Related Party Transaction [Line Items]
Number of Customer Accounts from which Finance Receivable Due | account	1.2
Number of branch offices, more than | branch	800
Entity Number of Employees | employee	3,500

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Significant Transactions OMH Acquisition of OneMain Financial Holding, LLC (Details) $ in Billions	Nov. 15, 2015 USD ($)	Nov. 13, 2015 branch	Nov. 12, 2015 USD ($)
Independence Holding, Inc. | Springfield Financial Cash Services, Inc | Subsidiaries
Business Acquisition [Line Items]
Cash proceeds for revolving demand note			$ 3.4
OneMain
Business Acquisition [Line Items]
Cash consideration	$ 4.5
Number of branches divested | branch		127

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Significant Transactions Lendmark Sale (Details) $ in Millions			12 Months Ended
	Nov. 13, 2015	Nov. 12, 2015 USD ($) branch	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)
Sale of Branches to Lendmark
Business Acquisition [Line Items]
Branches divested, as a percent of total branches			15.00%
Number of days to close sale of branches	120 days
Sale of Branches to Lendmark | Personal Loans
Business Acquisition [Line Items]
Loans receivable held for sale			$ 617	$ 608
Percentage of net finance receivables held for sale			13.00%
Sale of Branches to Lendmark | Maximum [Member]
Business Acquisition [Line Items]
Consideration from disposal of branches		$ 695
Lendmark Sale
Business Acquisition [Line Items]
Number of branch offices | branch		127
Loans purchased multiplier as of Lendmark Sale closing date		103.00%

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Summary of Significant Accounting Policies Basis of Presentation (Details)	Dec. 31, 2015	Jul. 31, 2014
Corporate Joint Venture
Entity Information [Line Items]
Ownership percentage - SpringCastle	47.00%	47.00%

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Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2015 state deferment segment payment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of business segments | segment	3
Number of states where personal lending has ceased | state	14
Finance receivables past due period	60 days
Financing receivable, period which most repurchase requests occur	5 years
Unrestricted cash and short-term maturities period	3
Likelihood of tax benefit being realized upon settlement	50.00%
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of past due contractual payments to occur before finance charges stop accruing	4
Finance receivables period for write-off	180 days
Credit card receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, number of deferments allowed in twelve month period | deferment	2
Financing receivable, period for deferment allowance	12 months
Retail Sales Finance Revolving Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of past due contractual payments to occur before finance charges stop accruing	6
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, number of past due payments to trigger property inspection	2
Financing receivable, number of past due installments to trigger foreclosure	4
Real Estate Loans Central
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, number of deferments allowed in twelve month period | deferment	1
Real Estate Loans Branch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, number of deferments allowed in twelve month period | deferment	2
Financing receivable, period for deferment allowance	12 months
Minimum [Member] | Retail Sales Finance Retail Sales Contracts - serviced externally
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of past due contractual payments to occur before finance charges stop accruing	3
Maximum [Member] | Retail Sales Finance Retail Sales Contracts - serviced externally
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of past due contractual payments to occur before finance charges stop accruing	4

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Summary of Significant Accounting Policies Change in Accounting Policy (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) before provision for (benefit from) income taxes	$ 37	$ 40	$ 35	$ 47	$ (51)	$ 594	$ 75	$ 60	$ 159	$ 678	$ (125)
Net Income (Loss) Available to Common Stockholders, Basic	4	$ 3	$ 2	$ 5	(56)	$ 370	$ 46	$ 37	14	397	(76)
Stockholders' Equity Attributable to Parent	2,111				2,106				2,111	2,106	1,385
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) before provision for (benefit from) income taxes									144	755	(136)
Net Income (Loss) Available to Common Stockholders, Basic									9	448	(83)
Stockholders' Equity Attributable to Parent	$ 2,069				$ 2,069				$ 2,069	$ 2,069	$ 1,328

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Summary of Significant Accounting Policies Revised Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	$ 321	$ 749	$ 375	$ 1,357
Investment securities	604	2,922
Personal loans of consolidated VIEs	4,300	3,800
SpringCastle Portfolio	1,703	2,091
Real estate loans	538	639
Retail sales finance	23	48
Net finance receivables	6,564	6,578
Unearned insurance premium and claim reserves	250	217	(172)
Allowance for finance receivable losses	224	180	426	259
Loans and Leases Receivable, Net Amount	6,090	6,181
Finance receivables held for sale	793	202
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	295	218
Other assets	281	475
Assets	12,188	10,998	12,612
Long-term debt	9,582	8,356
Insurance claims and policyholder liabilities	230	229
Deferred and accrued taxes	128	177
Other liabilities	216	259
Liabilities	10,156	9,021
Common stock	5	5
Additional paid-in capital	789	771
Accumulated other comprehensive income (loss)	(24)	3	28	26
Retained earnings	1,341	1,327
Stockholders' Equity Attributable to Parent	2,111	2,106	1,385
Non-controlling interests	(79)	(129)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,032	1,977	1,385	1,293
Liabilities and Equity	12,188	10,998
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	321	749	375	$ 1,357
Investment securities	604	2,922
Personal loans of consolidated VIEs	4,300	3,800
SpringCastle Portfolio	1,576	1,979
Real estate loans	524	625
Retail sales finance	23	48
Net finance receivables	6,423	6,452
Unearned insurance premium and claim reserves	250	217
Allowance for finance receivable losses	219	174
Loans and Leases Receivable, Net Amount	5,954	6,061
Finance receivables held for sale	796	205
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	295	218
Other assets	281	474
Assets	12,055	10,880
Long-term debt	9,582	8,356
Insurance claims and policyholder liabilities	230	229
Deferred and accrued taxes	103	159
Other liabilities	217	255
Liabilities	10,132	8,999
Common stock	5	5
Additional paid-in capital	758	740
Accumulated other comprehensive income (loss)	(24)	3
Retained earnings	1,330	1,321
Stockholders' Equity Attributable to Parent	2,069	2,069	$ 1,328
Non-controlling interests	(146)	(188)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,923	1,881
Liabilities and Equity	$ 12,055	$ 10,880

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Summary of Significant Accounting Policies Revised Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finance charges									$ 1,597	$ 1,564	$ 1,637
Finance receivables held for sale originated as held for investment									60	61	0
Interest income	$ 430	$ 422	$ 406	$ 399	$ 403	$ 431	$ 389	$ 402	1,657	1,625	1,637
Interest expense	167	171	171	158	157	172	172	182	667	683	843
Net interest income									990	942	794
Provision for finance receivable losses	109	78	73	79	87	85	80	100	339	352	371
Net interest income after provision for finance receivable losses									651	590	423
Insurance									158	166	148
Investment									49	39	34
Net loss on repurchases and repayments of debt									0	(66)	(42)
Net gain on fair value adjustments on debt									0	1	0
Net gain on sales of real estate loans and related trust assets									0	626	0
Other									36	(21)	21
Total other revenues	81	49	59	54	(38)	602	90	91	243	745	161
Salaries and benefits									364	321	447
Other operating expenses									299	261	197
Insurance policy benefits and claims									72	75	65
Total other expenses	198	182	186	169	172	182	152	151	735	657	709
Income (loss) before provision for (benefit from) income taxes	37	40	35	47	(51)	594	75	60	159	678	(125)
Provision for (benefit from) income taxes	4	5	0	9	(17)	198	29	23	18	233	(49)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest									141	445	(76)
Net income attributable to non-controlling interests	29	32	33	33	22	26	0	0	127	48	0
Net Income (Loss) Available to Common Stockholders, Basic	$ 4	$ 3	$ 2	$ 5	$ (56)	$ 370	$ 46	$ 37	14	397	(76)
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finance charges									1,604	1,574	1,648
Finance receivables held for sale originated as held for investment									61	60	0
Interest income									1,665	1,634	1,648
Interest expense									667	683	843
Net interest income									998	951	805
Provision for finance receivable losses									361	368	394
Net interest income after provision for finance receivable losses									637	583	411
Insurance									158	166	148
Investment									49	39	34
Net loss on repurchases and repayments of debt									0	(66)	(42)
Net gain on fair value adjustments on debt									0	1	0
Net gain on sales of real estate loans and related trust assets									0	702	0
Other									35	(13)	22
Total other revenues									242	829	162
Salaries and benefits									364	321	447
Other operating expenses									299	261	197
Insurance policy benefits and claims									72	75	65
Total other expenses									735	657	709
Income (loss) before provision for (benefit from) income taxes									144	755	(136)
Provision for (benefit from) income taxes									15	263	(53)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest									129	492	(83)
Net income attributable to non-controlling interests									120	44	0
Net Income (Loss) Available to Common Stockholders, Basic									$ 9	$ 448	$ (83)

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Summary of Significant Accounting Policies Revised Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ 33	$ 35	$ 35	$ 38	$ (34)	$ 396	$ 46	$ 37	$ 141	$ 445	$ (76)
Provision for finance receivable losses	109	$ 78	$ 73	$ 79	87	$ 85	$ 80	$ 100	339	352	371
Depreciation and amortization									92	112	82
Deferred income tax charge (benefit)									(50)	(12)	(114)
Non-cash incentive compensation from Initial Stockholder									15	0	0
Gain (Loss) on Fair Value Adjustments on Debt									0	(1)	0
Net gain on sales of real estate loans and related trust assets									0	(626)	0
Net loss on repurchases and repayments of debt									0	66	42
Share-based Compensation									2	1	145
Other Noncash Income (Expense)									(3)	17	21
Increase (Decrease) in Other Operating Assets and Liabilities, Net									(54)	(9)	2
Insurance claims and policyholder liabilities									34	51	29
Taxes receivable and payable									111	(127)	(50)
Accrued interest and finance charges									(23)	(39)	(41)
Increase (Decrease) in Restricted Cash for Operating Activities									0	5	(4)
Other, net									(1)	1	(1)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations									603	236	406
Net principal collections (originations) of finance receivables held for investment and held for sale									(799)	(88)	379
Proceeds on sales of finance receivables held for sale originated as held for investment									78	3,789	15
Cash advances on intercompany notes receivables									(3,720)	(128)	0
Principal collections on intercompany notes receivables									189	44	0
Payments to Acquire Available-for-sale Securities									(476)	(348)	(196)
Payments to Acquire Trading Securities Held-for-investment									(1,474)	(2,930)	(10)
Available-for-sale securities called, sold, and matured									470	269	296
Trading and other securities called, sold, and matured									3,779	646	8
Change in notes receivable from parent and affiliate									0	0	370
Change in restricted cash and cash equivalents									(72)	93	(241)
Proceeds from sale of real estate owned									14	58	108
Payments for (Proceeds from) Other Investing Activities									(12)	0	(3)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations									(2,023)	1,405	726
Proceeds from issuance of long-term debt, net of commissions									3,028	3,557	3,765
Repayments of Long-term Debt									(1,960)	(4,218)	(5,868)
Change in notes payable to parent and affiliates									0	0	(31)
Distributions to joint venture partners									(77)	(627)	0
Excess tax benefit from restricted stock units									1	0	0
Capital contributions from parent									0	22	21
Net cash provided by (used for) financing activities									992	(1,266)	(2,113)
Effect of exchange rate changes on cash and cash equivalents									0	(1)	(1)
Net change in cash and cash equivalents									(428)	374	(982)
Cash and cash equivalents	321				749				321	749	375	$ 1,357
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)									129	492	(83)
Provision for finance receivable losses									361	368	394
Depreciation and amortization									84	109	72
Deferred income tax charge (benefit)									(53)	18	(118)
Non-cash incentive compensation from Initial Stockholder									15	0	0
Gain (Loss) on Fair Value Adjustments on Debt									0	(1)	0
Net gain on sales of real estate loans and related trust assets									0	(702)	0
Net loss on repurchases and repayments of debt									0	66	42
Share-based Compensation									2	1	145
Other Noncash Income (Expense)									(1)	9	19
Increase (Decrease) in Other Operating Assets and Liabilities, Net									(54)	(9)	2
Insurance claims and policyholder liabilities									34	51	29
Taxes receivable and payable									111	(127)	(50)
Accrued interest and finance charges									(23)	(39)	(41)
Increase (Decrease) in Restricted Cash for Operating Activities									0	5	(4)
Other, net									(1)	1	(1)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations									604	242	406
Net principal collections (originations) of finance receivables held for investment and held for sale									(799)	(94)	379
Proceeds on sales of finance receivables held for sale originated as held for investment									78	3,789	15
Cash advances on intercompany notes receivables									(3,720)	(128)	0
Principal collections on intercompany notes receivables									189	44	0
Payments to Acquire Available-for-sale Securities									(476)	(348)	(196)
Payments to Acquire Trading Securities Held-for-investment									(1,474)	(2,930)	(10)
Available-for-sale securities called, sold, and matured									470	269	296
Trading and other securities called, sold, and matured									3,779	646	8
Change in notes receivable from parent and affiliate									0	0	370
Change in restricted cash and cash equivalents									(72)	93	(241)
Proceeds from sale of real estate owned									14	58	108
Payments for (Proceeds from) Other Investing Activities									(12)	0	(3)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations									(2,023)	1,399	726
Proceeds from issuance of long-term debt, net of commissions									3,028	3,557	3,765
Repayments of Long-term Debt									(1,960)	(4,218)	(5,868)
Change in notes payable to parent and affiliates									0	0	(31)
Distributions to joint venture partners									(78)	(627)
Excess tax benefit from restricted stock units									1	0	0
Capital contributions from parent									0	22	21
Net cash provided by (used for) financing activities									991	(1,266)	(2,113)
Effect of exchange rate changes on cash and cash equivalents									0	(1)	(1)
Net change in cash and cash equivalents									(428)	374	(982)
Cash and cash equivalents	$ 321				$ 749				$ 321	$ 749	$ 375	$ 1,357

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Summary of Significant Accounting Policies Prior Period Revisions (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses	$ 109	$ 78	$ 73	$ 79	$ 87	$ 85	$ 80	$ 100	$ 339	$ 352	$ 371
Provision for (benefit from) income taxes	4	$ 5	0	9	(17)	198	29	$ 23	18	233	(49)
Assets	12,188				10,998				12,188	10,998	12,612
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses			8
Provision for (benefit from) income taxes			$ 3
Cash equivalents in certificates of deposit and commercial paper					165					165
Other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses									1	7
Assets	4,119				555				4,119	555	611
Other | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets				1,832	555	705	1,058			555	611
Consumer Segment | Operating Segments | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets				5,070	4,462	4,651	4,406			4,462	4,200
Residential Portfolio Segment [Member] | Operating Segments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses									(2)	128	255
Assets	$ 711				3,665				$ 711	3,665	8,487
Residential Portfolio Segment [Member] | Operating Segments | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets				$ 3,613	$ 3,666	$ 3,720	$ 6,561			$ 3,666	$ 8,512

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Recent Accounting Pronouncements (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt issuance cost	$ 32	$ 29
New Accounting Pronouncement, Early Adoption, Effect
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt issuance cost			$ 29

XML

Finance Receivables - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 6,564,000	$ 6,578,000
SpringCastle Portfolio		1,703,000	2,091,000
Finance receivables held for sale		793,000	202,000
Amount of commitments to lend additional funds on TDR finance receivables		$ 0
Unlikely to be Collected Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off		60 days
Nonperforming Financial Instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off		90 days
Default period TDR finance receivables to be considered Non-performing		12 months
Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables held for sale		$ 435,000	$ 0
Corporate Joint Venture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ownership percentage - SpringCastle		47.00%			47.00%
First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, real estate loans as a percent of total financing receivables		38.00%	36.00%
Second Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, real estate loans as a percent of total financing receivables		62.00%	64.00%
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 4,300,000	$ 3,800,000
Finance receivables period for write-off	180 days	90 days
Finance receivables held for sale				$ 608,000
Personal Loans | Asset-backed securities | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 3,600,000	1,900,000
Personal Loans | Titled personal property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of receivable secured by personal property		$ 2,400,000	$ 1,900,000
Percentage of net finance receivables secured by the real and/or personal property of the borrower		56.00%	50.00%
Personal Loans | Consumer household goods or other items of personal property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of receivable secured by personal property		$ 1,900,000	$ 1,900,000
Percentage of net finance receivables secured by the real and/or personal property of the borrower		44.00%	50.00%
Personal Loans | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term		2 years
Personal Loans | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term		5 years
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 538,000	$ 639,000
Residential Portfolio Segment [Member] | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		207,000	230,000
Residential Portfolio Segment [Member] | Second Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 331,000	409,000
Residential Portfolio Segment [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term		360 months
Credit card receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 23,000	48,000
Credit card receivable | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term		60 months
SpringCastle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net finance receivables		$ 1,703,000	2,091,000
SpringCastle Portfolio | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
SpringCastle Portfolio		1,703,000	$ 2,091,000
SpringCastle Portfolio | Collateralized Mortgage Backed Securities | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
SpringCastle Portfolio		$ 1,700,000
Revolving Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off		180 days

XML

Finance Receivables - By Type (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	$ 7,259	$ 7,202
Unearned finance charges and points and fees	(835)	(770)
Accrued finance charges	95	102
Deferred origination costs	45	44
Net finance receivables	6,564	6,578
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	5,028	4,462
Unearned finance charges and points and fees	(833)	(764)
Accrued finance charges	60	58
Deferred origination costs	45	44
Net finance receivables	4,300	3,800
SpringCastle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	1,672	2,053
Accrued finance charges	31	38
Net finance receivables	1,703	2,091
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	534	635
Unearned finance charges and points and fees		(1)
Accrued finance charges	4	5
Net finance receivables	538	639
Retail Sales Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	25	52
Unearned finance charges and points and fees	(2)	(5)
Accrued finance charges		1
Net finance receivables	$ 23	$ 48

XML

Finance Receivables - Unused Lines Of Credit Extended To Customers (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused credit lines	$ 397	$ 386
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused credit lines	2	1
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused credit lines	30	31
SpringCastle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused credit lines	$ 365	$ 354

XML

Finance Receivables - Geographic Diversification (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
GEOGRAPHIC DIVERSIFICATION
Total	$ 6,564	$ 6,578
Finance receivable | Geographic concentration
GEOGRAPHIC DIVERSIFICATION
Total	$ 6,564	$ 6,578
Concentration (as a percent)	100.00%	100.00%
Finance receivable | Geographic concentration | North Carolina
GEOGRAPHIC DIVERSIFICATION
Total	$ 593	$ 645
Concentration (as a percent)	9.00%	10.00%
Finance receivable | Geographic concentration | Illinois
GEOGRAPHIC DIVERSIFICATION
Total	$ 468	$ 414
Concentration (as a percent)	7.00%	6.00%
Finance receivable | Geographic concentration | California
GEOGRAPHIC DIVERSIFICATION
Total	$ 429	$ 540
Concentration (as a percent)	7.00%	8.00%
Finance receivable | Geographic concentration | Indiana
GEOGRAPHIC DIVERSIFICATION
Total	$ 403	$ 349
Concentration (as a percent)	6.00%	5.00%
Finance receivable | Geographic concentration | Pennsylvania
GEOGRAPHIC DIVERSIFICATION
Total	$ 375	$ 393
Concentration (as a percent)	6.00%	6.00%
Finance receivable | Geographic concentration | Ohio
GEOGRAPHIC DIVERSIFICATION
Total	$ 371	$ 394
Concentration (as a percent)	6.00%	6.00%
Finance receivable | Geographic concentration | Florida
GEOGRAPHIC DIVERSIFICATION
Total	$ 345	$ 328
Concentration (as a percent)	5.00%	5.00%
Finance receivable | Geographic concentration | Virginia
GEOGRAPHIC DIVERSIFICATION
Total	$ 334	$ 351
Concentration (as a percent)	5.00%	5.00%
Finance receivable | Geographic concentration | Other
GEOGRAPHIC DIVERSIFICATION
Total	$ 3,246	$ 3,164
Concentration (as a percent)	49.00%	49.00%

XML

Finance Receivables - By Type And By Days Delinquent (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Net finance receivables:
Total delinquent finance receivables	$ 264	$ 249
Total	6,564	6,578
Personal Loans
Net finance receivables:
Total delinquent finance receivables	158	113
Total	4,300	3,800
SpringCastle Portfolio
Net finance receivables:
Total delinquent finance receivables	66	90
Total	1,703	2,091
Real Estate Loans
Net finance receivables:
Total delinquent finance receivables	39	44
Total	538	639
Retail Sales Finance
Net finance receivables:
Total delinquent finance receivables	1	2
Total	23	48
60-89 days past due
Net finance receivables:
Net delinquent finance receivables	94	84
60-89 days past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	49	36
60-89 days past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	26	34
60-89 days past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	19	13
60-89 days past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	0	1
90-119 days past due
Net finance receivables:
Net delinquent finance receivables	60	60
90-119 days past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	41	30
90-119 days past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	16	21
90-119 days past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	3	9
90-119 days past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	0	0
120-149 days past due
Net finance receivables:
Net delinquent finance receivables	49	47
120-149 days past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	34	24
120-149 days past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	12	17
120-149 days past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	2	5
120-149 days past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	1	1
150-179 days past due
Net finance receivables:
Net delinquent finance receivables	44	41
150-179 days past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	31	21
150-179 days past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	11	16
150-179 days past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	2	4
150-179 days past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	0	0
180 days or more past due
Net finance receivables:
Net delinquent finance receivables	17	17
180 days or more past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	3	2
180 days or more past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	1	2
180 days or more past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	13	13
180 days or more past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	0	0
Financing Receivables, 1 to 29 Days Past Due [Member]
Net finance receivables:
Financing Receivable, Recorded Investment, Current	6,173	6,191
Financing Receivables, 1 to 29 Days Past Due [Member] | Personal Loans
Net finance receivables:
Financing Receivable, Recorded Investment, Current	4,077	3,632
Financing Receivables, 1 to 29 Days Past Due [Member] | SpringCastle Portfolio
Net finance receivables:
Financing Receivable, Recorded Investment, Current	1,588	1,937
Financing Receivables, 1 to 29 Days Past Due [Member] | Real Estate Loans
Net finance receivables:
Financing Receivable, Recorded Investment, Current	486	577
Financing Receivables, 1 to 29 Days Past Due [Member] | Retail Sales Finance
Net finance receivables:
Financing Receivable, Recorded Investment, Current	22	45
30-59 days past due
Net finance receivables:
Net delinquent finance receivables	127	138
30-59 days past due | Personal Loans
Net finance receivables:
Net delinquent finance receivables	65	55
30-59 days past due | SpringCastle Portfolio
Net finance receivables:
Net delinquent finance receivables	49	64
30-59 days past due | Real Estate Loans
Net finance receivables:
Net delinquent finance receivables	13	18
30-59 days past due | Retail Sales Finance
Net finance receivables:
Net delinquent finance receivables	$ 0	$ 1

XML

Finance Receivables - Performing And NonPerforming By Type (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Performing and nonperforming net finance receivables by type
Total	$ 6,564	$ 6,578
Personal Loans
Performing and nonperforming net finance receivables by type
Total	4,300	3,800
SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Total	1,703	2,091
Real Estate Loans
Performing and nonperforming net finance receivables by type
Total	538	639
Retail Sales Finance
Performing and nonperforming net finance receivables by type
Total	23	48
Performing
Performing and nonperforming net finance receivables by type
Total	6,394	6,413
Performing | Personal Loans
Performing and nonperforming net finance receivables by type
Total	4,191	3,723
Performing | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Total	1,663	2,035
Performing | Real Estate Loans
Performing and nonperforming net finance receivables by type
Total	518	608
Performing | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Total	22	47
Nonperforming Financial Instruments
Performing and nonperforming net finance receivables by type
Total	170	165
Nonperforming Financial Instruments | Personal Loans
Performing and nonperforming net finance receivables by type
Total	109	77
Nonperforming Financial Instruments | SpringCastle Portfolio
Performing and nonperforming net finance receivables by type
Total	40	56
Nonperforming Financial Instruments | Real Estate Loans
Performing and nonperforming net finance receivables by type
Total	20	31
Nonperforming Financial Instruments | Retail Sales Finance
Performing and nonperforming net finance receivables by type
Total	$ 1	$ 1

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Finance Receivables - Purchased Credit Impaired Held For Investment And Held For Sale (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	$ 439	$ 557
Outstanding balance	618	779
Allowance for purchased credit impaired finance receivable losses	12	11
SpringCastle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	350	452
Outstanding balance	482	628
Allowance for purchased credit impaired finance receivable losses	0	0
FA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	89	105
Outstanding balance	136	151
Allowance for purchased credit impaired finance receivable losses	12	11
Carrying amount of finance receivables held for sale	59	72
Outstanding balance of finance receivables held for sale	$ 89	$ 99

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Finance Receivables - Changes In Accretable Yield For Purchased Credit Impaired (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	$ 506	$ 768	$ 624
Accretable yield for SpringCastle Portfolio contributed to SFC		366
Accretion	(85)	(112)	(117)
Reclassifications from nonaccretable difference	20	142	261
Transfers due to finance receivables sold		(658)
Balance at end of period	441	506	768
SpringCastle Portfolio
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	452	0	0
Accretable yield for SpringCastle Portfolio contributed to SFC		366
Accretion	(77)	(37)	0
Reclassifications from nonaccretable difference	0	123	0
Transfers due to finance receivables sold		0
Balance at end of period	375	452	0
FA Loans
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	54	768	624
Accretable yield for SpringCastle Portfolio contributed to SFC		0
Accretion	(8)	(75)	(117)
Reclassifications from nonaccretable difference	20	19	261
Transfers due to finance receivables sold		(658)
Balance at end of period	66	54	$ 768
Finance Receivables Originated
Changes in accretable yield for purchased credit impaired finance receivables
Accretion of purchased credit impairment FA loans held for sale	$ 6	$ 13

XML

Finance Receivables - TDR Held For Investment And Held For Sale (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Allowance for TDR finance receivable losses	$ 47	$ 36
SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
Allowance for TDR finance receivable losses	4	3
Personal Loans | Personal Loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	2	0
TDR net finance receivables	2	0
Personal Loans | Personal Loans | Personal Loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	32	22
TDR net finance receivables	31	22
Allowance for TDR finance receivable losses	9	1
SpringCastle Portfolio | Spring Castle Portfolio | SpringCastle Portfolio
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	14	11
TDR net finance receivables	13	10
Allowance for TDR finance receivable losses	4	3
Real Estate Loan | Real Estate Loans Held for Sale
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	92	91
TDR net finance receivables	92	91
Real Estate Loan | Real Estate Loans Held for Sale | Real Estate Loans Held for Investment
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	200	196
TDR net finance receivables	201	196
Allowance for TDR finance receivable losses	34	32
Financing Receivable | finance receivables Loans Held for Sale [Member]
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	94	91
TDR net finance receivables	94	91
Financing Receivable | finance receivables Loans Held for Sale [Member] | finance receivables loans Held for Investment
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	246	229
TDR net finance receivables	245	228
Allowance for TDR finance receivable losses	$ 47	$ 36

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Finance Receivables - TDR Recognized (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Personal Loans | Personal Loans | Personal Loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	$ 29	$ 17	$ 15
TDR finance charges recognized	3	2	1
SpringCastle Portfolio | Spring Castle Portfolio | SpringCastle Portfolio
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	12	5	0
TDR finance charges recognized	1	1	0
Real Estate Loan | Real Estate Loans Held for Sale | Real Estate Loans Held for Investment
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	198	951	1,116
TDR finance charges recognized	11	47	63
Financing Receivable | finance receivables Loans Held for Sale [Member]
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	93	248
TDR finance charges recognized	5	4
Financing Receivable | finance receivables Loans Held for Sale [Member] | finance receivables loans Held for Investment
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	239	973	1,131
TDR finance charges recognized	15	50	$ 64
Consumer Portfolio Segment | Personal Loans
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	2	0
TDR finance charges recognized	0	0
Residential Portfolio Segment [Member] | Real Estate Loans Held for Sale
TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables	91	248
TDR finance charges recognized	$ 5	$ 4

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Finance Receivables - TDR New Volume (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) account	Dec. 31, 2014 USD ($) account	Dec. 31, 2013 USD ($) account
Personal Loans | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 1	$ 0
Post-modification TDR net finance receivables	$ 1	$ 0
Number of TDR accounts | account	162	0
Personal Loans | Personal Loans | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 33	$ 18	$ 15
Post-modification TDR net finance receivables	27	16	12
Financing receivable, post-modification rate reduction	15	10	8
Financing receivable, post-modification other	$ 12	$ 6	$ 4
Number of TDR accounts | account	6,515	4,206	3,240
SpringCastle Portfolio | Spring Castle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 7	$ 4	$ 0
Post-modification TDR net finance receivables	6	4	0
Financing receivable, post-modification rate reduction	6	4	0
Financing receivable, post-modification other	$ 0	$ 0	$ 0
Number of TDR accounts | account	721	468	0
Real Estate Loan | Real Estate Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 6	$ 6
Post-modification TDR net finance receivables	$ 7	$ 7
Number of TDR accounts | account	113	94
Real Estate Loan | Real Estate Loans Held for Sale | Real Estate Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 21	$ 213	$ 573
Post-modification TDR net finance receivables	22	203	593
Financing receivable, post-modification rate reduction	17	157	543
Financing receivable, post-modification other	$ 5	$ 46	$ 50
Number of TDR accounts | account	385	2,374	7,085
Financing Receivable | finance receivables Loans Held for Sale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 7	$ 6
Post-modification TDR net finance receivables	$ 8	$ 7
Number of TDR accounts | account	275	94
Financing Receivable | finance receivables Loans Held for Sale [Member] | finance receivables loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 61	$ 235	$ 588
Post-modification TDR net finance receivables	55	223	605
Financing receivable, post-modification rate reduction	38	171	551
Financing receivable, post-modification other	$ 17	$ 52	$ 54
Number of TDR accounts | account	7,621	7,048	10,325

XML

Finance Receivables - Held For Investment And Held For Sale Modified As TDR (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) account	Dec. 31, 2014 USD ($) account	Dec. 31, 2013 USD ($) account
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables | $	$ 10	$ 35	$ 70
Number of TDR accounts | account	1,414	718	1,283
Real Estate Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables | $	$ 1	$ 3
Number of TDR accounts | account	17	49
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables | $	$ 5	$ 1	$ 1
Number of TDR accounts | account	1,221	141	355
SpringCastle Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables | $	$ 2	$ 1	$ 0
Number of TDR accounts | account	147	53	0
Real Estate Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables | $	$ 3	$ 33	$ 69
Number of TDR accounts | account	46	524	928

XML

Allowance for Finance Receivable Losses - Changes in Allowance for Finance Receivable Losses by Type (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended									12 Months Ended
	Mar. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							$ 180				$ 426		$ 180	$ 426	$ 259
Provision for finance receivable losses				$ 109	$ 78	$ 73	79	$ 87	$ 85	$ 80	100		339	352	371
Charge-offs													(349)	(297)	(275)
Recoveries													55	37	72
Transfers to finance receivables held for sale														1	(1)
Balance at end of period				224				180				$ 426	224	180	426
Finance receivables transferred from held for investment to held for sale														6,600	18
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims															37
Adjustment for the subsequent buyback of previously charged-off finance receivables sold		$ 4
Transfers to finance receivables held for sale which have a specific allowance												18
Consolidated VIEs
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							72						72
Balance at end of period				128				72					128	72
Scenario, Previously Reported [Member]
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							174						174
Provision for finance receivable losses													361	368	394
Balance at end of period				219				174					219	174
Adjustments
Changes in the allowance for finance receivable losses by finance receivable type
Provision for finance receivable losses						$ 8
Borrowers in Bankruptcy Status
Changes in the allowance for finance receivable losses by finance receivable type
Charge-offs														(4)
Personal Loans
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale													(1)
Real Estate Loans Held for Sale
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale														(339)
Personal Loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							130				94		130	94	67
Provision for finance receivable losses													257	203	130
Charge-offs													(250)	(192)	(149)
Recoveries													37	25	47
Transfers to finance receivables held for sale															(1)
Balance at end of period				173				130				94	173	130	94
Finance receivables transferred from held for investment to held for sale													$ 608
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims															23
Finance receivables period for write-off	180 days												90 days
Personal Loans | Scenario, Previously Reported [Member]
Changes in the allowance for finance receivable losses by finance receivable type
Minimum percentage of original loan amount to be received before charge-off (as a percent)			5.00%
Personal Loans | Change in charge-off policy | Adjustments
Changes in the allowance for finance receivable losses by finance receivable type
Charge-offs			$ (13)
Personal Loans | Personal Loans
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale													$ (1)
Personal Loans | Real Estate Loans Held for Sale
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale														0
SpringCastle Portfolio
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							3				0		3	0	0
Provision for finance receivable losses													67	36	0
Charge-offs													(78)	(39)	0
Recoveries													12	5	0
Transfers to finance receivables held for sale														1	0
Balance at end of period				4				3				0	4	3	0
SpringCastle Portfolio | Real Estate Loans Held for Sale
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale														0
Real Estate Loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							46				330		46	330	190
Provision for finance receivable losses													13	110	242
Charge-offs													(18)	(61)	(117)
Recoveries													5	6	15
Balance at end of period				46				46				330	46	46	330
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims														2	9
Real Estate Loans | Real Estate Loans Held for Sale
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale														(339)
Retail Sales Finance
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period							$ 1				$ 2		1	2	2
Provision for finance receivable losses													2	3	(1)
Charge-offs													(3)	(5)	(9)
Recoveries													1	1	10
Balance at end of period				$ 1				$ 1				$ 2	$ 1	1	2
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims															$ 5
Retail Sales Finance | Real Estate Loans Held for Sale
Changes in the allowance for finance receivable losses by finance receivable type
Transfers to finance receivables held for sale														$ 0

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Allowance for Finance Receivable Losses - By Type And By Impairment Method (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	$ 165	$ 133
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	224	180	$ 426	$ 259
Individually evaluated for impairment (TDR finance receivables)	47	36
Allowance for finance receivable losses	$ 224	$ 180	426	259
Allowance for finance receivable losses as a percentage of finance receivables	3.42%	2.74%
Finance receivables:
Collectively evaluated for impairment	$ 6,021	$ 5,945
Net finance receivables	6,564	6,578
TDR finance receivables	151	137
Total	6,564	6,578
Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	12	11
Allowance for finance receivable losses	12	11
Finance receivables:
Net finance receivables	392	496
Total	392	496
Personal Loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	164	129
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	173	130	94	67
Individually evaluated for impairment (TDR finance receivables)	9	1
Allowance for finance receivable losses	$ 173	$ 130	94	67
Allowance for finance receivable losses as a percentage of finance receivables	4.01%	3.44%
Finance receivables:
Collectively evaluated for impairment	$ 4,271	$ 3,778
Net finance receivables	4,300	3,800
TDR finance receivables	29	22
Total	4,300	3,800
Personal Loans | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0	0
Allowance for finance receivable losses	0	0
Finance receivables:
Net finance receivables	0	0
Total	0	0
SpringCastle Portfolio
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0	0
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	4	3	0	0
Individually evaluated for impairment (TDR finance receivables)	4	3
Allowance for finance receivable losses	$ 4	$ 3	0	0
Allowance for finance receivable losses as a percentage of finance receivables	0.25%	0.13%
Finance receivables:
Collectively evaluated for impairment	$ 1,340	$ 1,629
Net finance receivables	1,703	2,091
TDR finance receivables	13	10
Total	1,703	2,091
SpringCastle Portfolio | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0	0
Allowance for finance receivable losses	0	0
Finance receivables:
Net finance receivables	350	452
Total	350	452
Real Estate Loans
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	0	3
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	46	46	330	190
Individually evaluated for impairment (TDR finance receivables)	34	32
Allowance for finance receivable losses	$ 46	$ 46	330	190
Allowance for finance receivable losses as a percentage of finance receivables	8.72%	7.27%
Finance receivables:
Collectively evaluated for impairment	$ 387	$ 490
Net finance receivables	538	639
TDR finance receivables	109	105
Total	538	639
Real Estate Loans | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	12	11
Allowance for finance receivable losses	12	11
Finance receivables:
Net finance receivables	42	44
Total	42	44
Retail Sales Finance
Allowance for finance receivable losses for finance receivables:
Collectively evaluated for impairment	1	1
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	1	1	2	2
Individually evaluated for impairment (TDR finance receivables)	0	0
Allowance for finance receivable losses	$ 1	$ 1	$ 2	$ 2
Allowance for finance receivable losses as a percentage of finance receivables	3.46%	1.56%
Finance receivables:
Collectively evaluated for impairment	$ 23	$ 48
Net finance receivables	23	48
TDR finance receivables	0	0
Total	23	48
Retail Sales Finance | Receivables Acquired with Deteriorated Credit Quality
Allowance for finance receivable losses for finance receivables:
Acquired with deteriorated credit quality (purchased credit impaired finance receivables)	0	0
Allowance for finance receivable losses	0	0
Finance receivables:
Net finance receivables	0	0
Total	$ 0	$ 0

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Finance Receivables Held for Sale (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables held for sale	$ 793	$ 202
Finance receivables held for sale originated as held for investment	60	61	$ 0
Finance receivables transferred from held for investment to held for sale		6,600	18
Cost of mortgages sold		6,400	18
Net gain (loss) on sales of real estate loans and related trust assets	0	626	0
Holdback provision receivable on loans sold	5	64
Gain (loss) on sale of finance receivables			(2)
Finance Receivables Held For Sale Originated as Held-for-investment	0	0	$ 0
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables transferred from held for investment to held for sale		6,600
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables held for sale				$ 608
Finance receivables transferred from held for investment to held for sale	608
Fair Value, Measurements, Nonrecurring [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Asset Impairment Charges	$ 1	20
finance receivables Loans Held for Sale [Member] | Fair Value, Measurements, Nonrecurring [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Asset Impairment Charges		$ 7

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Investment Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Accumulated Other comprehensive Income (loss), other than temporary impairment, not credit loss, net of tax, available-for sale, additions or reductions	$ 0	$ 0	$ 0
Cost/Amortized Cost	604,000,000	582,000,000
Unrealized Gains	3,000,000	20,000,000
Unrealized Losses	(16,000,000)	(2,000,000)
Fair Value	591,000,000	600,000,000
Minimum disclosure of Unrealized losses on certain available-for-sale securities	1,000,000	1,000,000
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss	0	0
Bonds:
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	597,000,000	574,000,000
Unrealized Gains	3,000,000	20,000,000
Unrealized Losses	(15,000,000)	(2,000,000)
Fair Value	585,000,000	592,000,000
U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	83,000,000	61,000,000
Unrealized Gains	0	3,000,000
Unrealized Losses	(1,000,000)	0
Fair Value	82,000,000	64,000,000
Obligations of states, municipalities, and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	88,000,000	99,000,000
Unrealized Gains	1,000,000	3,000,000
Unrealized Losses	0	0
Fair Value	89,000,000	102,000,000
Certificates of deposit and commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost		1,000,000
Unrealized Gains		0
Unrealized Losses		0
Fair Value		1,000,000
AFS pledged as collateral		1,000,000
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	278,000,000	256,000,000
Unrealized Gains	2,000,000	12,000,000
Unrealized Losses	(13,000,000)	(1,000,000)
Fair Value	267,000,000	267,000,000
RMBS
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	74,000,000	71,000,000
Unrealized Gains	0	2,000,000
Unrealized Losses	0	0
Fair Value	74,000,000	73,000,000
CMBS
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	44,000,000	25,000,000
Unrealized Gains	0	0
Unrealized Losses	0	(1,000,000)
Fair Value	44,000,000	24,000,000
CDO/ABS
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	30,000,000	61,000,000
Unrealized Gains	0	0
Unrealized Losses	(1,000,000)	0
Fair Value	29,000,000	61,000,000
Preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	6,000,000	7,000,000
Unrealized Gains	0	0
Unrealized Losses	(1,000,000)	0
Fair Value	5,000,000	7,000,000
Other long-term investments
Schedule of Available-for-sale Securities [Line Items]
Cost/Amortized Cost	1,000,000	1,000,000
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	$ 1,000,000	$ 1,000,000

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Investment Securities - Fair Vaue and Unrealized Losses on AFS Securities (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value
Less Than 12 Months	$ 435,000,000	$ 140,000,000
12 Months or Longer	20,000,000	10,000,000
Total	455,000,000	150,000,000
Unrealized Losses
Less Than 12 Months	(15,000,000)	(2,000,000)
12 Months or Longer	(1,000,000)	0
Total	(16,000,000)	(2,000,000)
Other-than-temporary impairment credit loss
Net impairment losses recognized in net income (loss)	0	0	$ 0
Bonds:
Fair Value
Less Than 12 Months	434,000,000	134,000,000
12 Months or Longer	14,000,000	10,000,000
Total	448,000,000	144,000,000
Unrealized Losses
Less Than 12 Months	(15,000,000)	(2,000,000)
12 Months or Longer	0	0
Total	(15,000,000)	(2,000,000)
U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	76,000,000
12 Months or Longer	0	1,000,000
Total	76,000,000	1,000,000
Unrealized Losses
Less Than 12 Months	(1,000,000)	0
12 Months or Longer	0	0
Total	(1,000,000)	0
Obligations of states, municipalities, and political subdivisions
Fair Value
Less Than 12 Months	36,000,000	27,000,000
12 Months or Longer	2,000,000	1,000,000
Total	38,000,000	28,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
Corporate debt
Fair Value
Less Than 12 Months	189,000,000	36,000,000
12 Months or Longer	7,000,000	6,000,000
Total	196,000,000	42,000,000
Unrealized Losses
Less Than 12 Months	(13,000,000)	(1,000,000)
12 Months or Longer	0	0
Total	(13,000,000)	(1,000,000)
RMBS
Fair Value
Less Than 12 Months	68,000,000	9,000,000
12 Months or Longer	0	0
Total	68,000,000	9,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
CMBS
Fair Value
Less Than 12 Months	36,000,000	16,000,000
12 Months or Longer	5,000,000	2,000,000
Total	41,000,000	18,000,000
Unrealized Losses
Less Than 12 Months	0	(1,000,000)
12 Months or Longer	0	0
Total	0	(1,000,000)
CDO/ABS
Fair Value
Less Than 12 Months	29,000,000	46,000,000
12 Months or Longer	0	0
Total	29,000,000	46,000,000
Unrealized Losses
Less Than 12 Months	(1,000,000)	0
12 Months or Longer	0	0
Total	(1,000,000)	0
Preferred stocks
Fair Value
Less Than 12 Months	0	6,000,000
12 Months or Longer	6,000,000
Total	6,000,000	6,000,000
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	(1,000,000)	0
Total	(1,000,000)	$ 0
Other long-term investments
Fair Value
Less Than 12 Months	1,000,000
12 Months or Longer	0
Total	1,000,000
Unrealized Losses
Less Than 12 Months	0
12 Months or Longer	0
Total	$ 0

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Investment Securities - Proceeds of AFS Securities Sold or Redeemed (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale securities sold or redeemed
Fair value	$ 416	$ 260	$ 254
Realized gains	15	9	4
Realized losses	(1)	(1)	(2)
Net realized gains (losses)	$ 14	$ 8	$ 2

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Investment Securities - Contractual Maturities of Fixed Maturity AFS Securities (Details 4) $ in Millions	Dec. 31, 2015 USD ($)
Fair Value
Due in 1 year or less	$ 96
Due after 1 year through 5 years	165
Due after 5 years through 10 years	54
Due after 10 years	123
Mortgage-backed, asset-backed, and collateralized securities	147
Fair Value	585
Amortized Cost
Due in 1 year or less	96
Due after 1 year through 5 years	166
Due after 5 years through 10 years	55
Due after 10 years	132
Mortgage-backed, asset-backed, and collateralized securities	148
Amortized Cost	$ 597

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Investment Securities - Trading Securities and Other Securities (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Trading securities
Trading securities	$ 12	$ 2,321
Trading securities	2	5
Realized gains (losses) on trading securities
Net unrealized gains (losses) on trading securities held at year end	4	(9)
Net realized gains (losses) on trading securities sold or redeemed during the year	(3)	5
Total	1	(4)
Minimum disclosure of unrealized and realized gains (losses) on other securities			$ 1
U.S. government and government sponsored entities
Trading securities
Trading Securities, Debt	0	302
Obligations of states, municipalities, and political subdivisions
Trading securities
Trading Securities, Debt	0	14
Certificates of deposit and commercial paper
Trading securities
Trading Securities, Debt	0	238
Non-U.S. government and government sponsored entities
Trading securities
Trading Securities, Debt	0	20
Corporate debt
Trading securities
Trading Securities, Debt	10	1,056
RMBS
Trading securities
Trading Securities, Debt	0	35
CMBS
Trading securities
Trading Securities, Debt	2	149
CDO/ABS
Trading securities
Trading Securities, Debt	$ 0	$ 507

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Investment Securities (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Net impairment losses recognized in net income (loss)	$ 0	$ 0	$ 0
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss	0	0
Available-for-sale securities	591,000,000	600,000,000
Insurance Regulatory Authorities Bonds on Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities	$ 11,000,000	$ 12,000,000

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Other Assets Components of Other Assets Table (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Components of Other Assets Table [Abstract]
Fixed assets, net	$ 83	$ 73
Other investments	67	104
Prepaid expenses and deferred charges	35	23
Ceded insurance reserves	22	22
Other intangible assets	16	20
Escrow advance receivable	11	8
Cost basis investments	10	0
Receivables from parent and affiliates	9	11
Current tax receivable	8	105
Real estate owned	8	13
Receivables related to sales of real estate loans and related trust assets	5	79
Other	7	17
Other Assets	$ 281	$ 475

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Other Assets (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Assets [Abstract]
Accumulated depreciation on fixed assets		$ 173	$ 167
Debt issuance cost	$ 32	29
New Accounting Pronouncement, Early Adoption [Line Items]
Long-term debt		9,582	8,356
Holdback provision receivable on loans sold		$ 5	64
Adjustments for New Accounting Principle, Early Adoption
Other Assets [Abstract]
Debt issuance cost			$ 29	$ 39

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Other Assets - Other Intangible Assets (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Intangible asset
Gross Carrying Amount	$ 75	$ 75
Accumulated Amortization	(59)	(55)
Net Other Intangible Assets	16	20
Amortization expense	$ 4	4	$ 5
amortization expense of intangibles periods in table	5 years
Estimated Aggregate Amortization Expense
2016	$ 1
2017	0
2018	0
2019	0
2020	0
Value of business acquired (“VOBA”)
Intangible asset
Gross Carrying Amount	36	36
Accumulated Amortization	(32)	(32)
Net Other Intangible Assets	4	4
Customer relationships
Intangible asset
Gross Carrying Amount	18	18
Accumulated Amortization	(18)	(15)
Net Other Intangible Assets	0	3
Licenses
Intangible asset
Gross Carrying Amount	12	12
Accumulated Amortization	0	0
Net Other Intangible Assets	12	12
Customer lists
Intangible asset
Gross Carrying Amount	9	9
Accumulated Amortization	(9)	(8)
Net Other Intangible Assets	$ 0	$ 1

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Transactions with Affiliates of Fortress or AIG (Details) $ in Millions		12 Months Ended
	Aug. 05, 2013 USD ($) instrument	Dec. 31, 2015 USD ($) instrument	Dec. 31, 2014 USD ($) instrument	Dec. 31, 2013 USD ($) instrument	May 31, 2015 USD ($)	Aug. 01, 2014 USD ($)	Jul. 31, 2014	Mar. 06, 2014
Related Party Transaction [Line Items]
Reserves for reinsurance agreements		$ 58	$ 58
Number of positions | instrument		0	0
Cross currency interest rate derivative
Related Party Transaction [Line Items]
Number of positions | instrument				0
Affiliated companies | Logan Circle Partners L P
Related Party Transaction [Line Items]
Costs and fees incurred for the investment management services		$ 1	$ 1	$ 1
Affiliated companies | Nationstar | Servicing Agreement
Related Party Transaction [Line Items]
Sale of servicing rights, purchase price						$ 39
Accounts receivable, related parties			1
Nationstar accounts receivable balance					$ 1
Affiliated companies | AIGFP | Cross currency interest rate derivative
Related Party Transaction [Line Items]
Notional amount of terminated instruments	$ 417
Number of positions | instrument	0
Affiliated companies | AIGFP | Other Noninterest Income | Cross currency interest rate derivative
Related Party Transaction [Line Items]
Loss recorded in other revenues - other on termination	$ 2			2
Affiliated companies | SFI | AIGFP
Related Party Transaction [Line Items]
Amount of cash collateral returned	$ 40
Affiliates of Fortress or AIG
Related Party Transaction [Line Items]
Insurance coverage premium expense			1	1
MorEquity and Other Indirect Subsidiaries | Nationstar
Related Party Transaction [Line Items]
Subservicing fees		$ 2	5	$ 9
NRZ Consumer LLC | Spring Castle Acquisition LLC
Related Party Transaction [Line Items]
Ownership percentage		30.00%
Corporate Joint Venture
Related Party Transaction [Line Items]
Ownership percentage - SpringCastle		47.00%					47.00%
American General Mortgage Loan Trust 2009 1 | Affiliated companies | Merrill Lynch Pierce Fenner and Smith
Related Party Transaction [Line Items]
Percentage of interest concurrently agreed to be sold by counterparty to related party								75.00%
Merit | Affiliated companies | Subsidiaries of American International Group Inc
Related Party Transaction [Line Items]
Reserves for reinsurance agreements			$ 44

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Related Party Transactions (Details)			12 Months Ended
	Sep. 30, 2014	Jul. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) building	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Jan. 22, 2016 USD ($)	Dec. 01, 2015 USD ($)	Nov. 15, 2015 USD ($)	Nov. 12, 2015 USD ($)	Jul. 10, 2014 USD ($)	Jan. 31, 2014 USD ($)	Jul. 31, 2013 USD ($)	Jun. 07, 2013 USD ($)	Jan. 31, 2013 USD ($)
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates			$ 3,804,000,000	$ 251,000,000
Accrued finance charges			95,000,000	102,000,000
Receivables from parent and affiliates			9,000,000	11,000,000
Intercompany payable			24,000,000	48,000,000
Independence Demand Note
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates			$ 3,400,000,000
Interest rates (as a percent)			5.82%
Revolving demand note, maximum commitment									$ 3,550,000,000
Securities Borrowed									$ 3,400,000,000
Accrued finance charges			$ 16,000,000
Interest revenue, related party			27,000,000
Affiliated companies
Related Party Transaction [Line Items]
Payable due to SFI			24,000,000	48,000,000
Springleaf Financial Holdings, LLC
Related Party Transaction [Line Items]
Receivables from parent and affiliates			21,000,000	54,000,000
Payable to affiliate			12,000,000	43,000,000
Springleaf Finance Corporation | Springleaf Acquisition Corporation
Related Party Transaction [Line Items]
Related party capital contribution | shares		100
Related party capital contribution, par value (in USD per share) | $ / shares		$ 0.01
Capital contributions received to satisfy interest payments		$ 11,000,000								$ 11,000,000	$ 11,000,000	$ 11,000,000		$ 11,000,000
Services Agreement | Affiliated companies | Spring Castle Holdings LLC
Related Party Transaction [Line Items]
Payable to affiliate			4,000,000	10,000,000
OMF's Senior Note due 2019
Related Party Transaction [Line Items]
Interest rates (as a percent)								6.75%
OMF's Senior Note due 2021
Related Party Transaction [Line Items]
Interest rates (as a percent)								7.25%
SFI | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates			389,000,000	251,000,000
Interest receivables on note			1,000,000	1,000,000
Interest revenue on note receivable			15,000,000	5,000,000	$ 15,000,000
Payable due to SFI				17,000,000
Capital contributions received to satisfy interest payments		$ 11,000,000									$ 11,000,000
SFI | Intercompany Demand Note Due 31 December 2022 | Affiliated companies | Springleaf Acquisition Corporation
Related Party Transaction [Line Items]
Interest rates (as a percent)					0.25%
Debt instrument, face amount				1,000,000									$ 2,500,000
Spring leaf General Services Corporation | Services Agreement | Affiliated companies
Related Party Transaction [Line Items]
Percentage of allocated cost of service	100.00%
Spring leaf General Services Corporation | Services Agreement | Affiliated companies | Springleaf Finance Management Corporation
Related Party Transaction [Line Items]
Intercompany payable			19,000,000	19,000,000
Service fee expenses			$ 224,000,000	213,000,000
Spring leaf General Services Corporation | License Agreement | Affiliated companies | Springleaf Finance Management Corporation
Related Party Transaction [Line Items]
Percentage of allocated cost of service			100.00%
Margin on the systems and software (as a percent)			7.00%
Percentage of actual cost incurred			100.00%
License fees			$ 6,000,000	5,000,000
Spring leaf General Services Corporation | Building Lease Agreement | Affiliated companies | Springleaf Finance Management Corporation
Related Party Transaction [Line Items]
Number of buildings leased | building			6
Annual rental fees			$ 4,000,000
Rent charged			4,000,000	4,000,000
Springleaf Finance Management Corporation | Affiliated companies
Related Party Transaction [Line Items]
Payable due to SFI			1,000,000	$ 1,000,000
OneMain Demand Note [Member] | OneMain Financial Holdings, Inc. [Member]
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates			$ 0
Revolving demand note, maximum commitment								$ 500,000,000
Number of days notice required to demand note payment			5 days
OMFH revolving demand note, OneMain Acquisition closing [Member] | OneMain Financial Holdings, Inc. [Member] | OneMain Financial Holdings, Inc. [Member]
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates			$ 0
Revolving demand note, maximum commitment							$ 500,000,000
Number of days notice required to demand note payment			5 days
Subsequent Event [Member] | OMFH revolving demand note, OneMain Acquisition closing [Member] | OneMain Financial Holdings, Inc. [Member] | OneMain Financial Holdings, Inc. [Member]
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates						$ 370,000,000
Interest rates (as a percent)						5.39%

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Long-term Debt - Carrying Value and Fair Value (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt issuance cost	$ 32	$ 29
Long-term debt		9,582	$ 8,356
Fair Value		9,998	9,182
Adjustments for New Accounting Principle, Early Adoption
Debt Instrument [Line Items]
Debt issuance cost			29	$ 39
Senior debt
Debt Instrument [Line Items]
Long-term debt		9,410	8,184
Fair Value		9,753	8,920
Junior Subordinated Debt
Debt Instrument [Line Items]
Long-term debt		172	172
Fair Value		$ 245	$ 262

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Long-term Debt - Weighted Average Interest Rates (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Weighted average interest rates during period	7.05%	7.19%	7.14%
Weighted average interest rates	6.76%	7.26%
Senior debt
Debt Instrument [Line Items]
Weighted average interest rates during period	6.96%	7.10%	7.06%
Weighted average interest rates	6.66%	7.16%
Junior Subordinated Debt
Debt Instrument [Line Items]
Weighted average interest rates during period	12.26%	12.26%	12.26%
Weighted average interest rates	12.26%	12.26%

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Long-term Debt - Principal Maturities By Type (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
First quarter 2016		$ 0
Second quarter 2016		0
Third quarter 2016		375
Fourth quarter 2016		0
2016		375
2017		1,903
2018		0
2019		700
2020		300
2021-2067		1,300
Securitizations		4,323
Revolving conduit facilities, long-term debt maturities		1,200
Total principal maturities		10,101
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		9,582	$ 8,356
Debt issuance cost	$ (32)	(29)
Junior Subordinated Debt
Debt Instrument [Line Items]
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		$ 172	$ 172
Senior debt | Securitizations
Debt Instrument [Line Items]
Stated interest rate, minimum		2.41%
Stated interest rate, maximum		6.82%
First quarter 2016		$ 0
Second quarter 2016		0
Third quarter 2016		0
Fourth quarter 2016		0
2016		0
2017		0
2018		0
2019		0
2020		0
2021-2067		0
Securitizations		4,323
Revolving conduit facilities, long-term debt maturities		0
Total principal maturities		4,323
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		4,313
Debt issuance cost		$ (15)
Senior debt | Revolving Conduit Facilities
Debt Instrument [Line Items]
Stated interest rate, minimum		1.65%
Stated interest rate, maximum		3.65%
First quarter 2016		$ 0
Second quarter 2016		0
Third quarter 2016		0
Fourth quarter 2016		0
2016		0
2017		0
2018		0
2019		0
2020		0
2021-2067		0
Securitizations		0
Revolving conduit facilities, long-term debt maturities		1,200
Total principal maturities		1,200
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		1,200
Debt issuance cost		$ 0
Senior debt | Medium Term Notes
Debt Instrument [Line Items]
Stated interest rate, minimum		5.25%
Stated interest rate, maximum		8.25%
First quarter 2016		$ 0
Second quarter 2016		0
Third quarter 2016		375
Fourth quarter 2016		0
2016		375
2017		1,903
2018		0
2019		700
2020		300
2021-2067		950
Securitizations		0
Revolving conduit facilities, long-term debt maturities		0
Total principal maturities		4,228
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		3,897
Debt issuance cost		$ (14)
Junior Subordinated Debt
Debt Instrument [Line Items]
Interest rates (as a percent)		6.00%
First quarter 2016		$ 0
Second quarter 2016		0
Third quarter 2016		0
Fourth quarter 2016		0
2016		0
2017		0
2018		0
2019		0
2020		0
2021-2067		350
Securitizations		0
Revolving conduit facilities, long-term debt maturities		0
Total principal maturities		350
Long-term debt (includes debt of consolidated VIEs of $5.5 billion in 2015 and $3.6 billion in 2014)		172
Debt issuance cost		$ 0

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Long-term Debt - Narrative (Details)						1 Months Ended		12 Months Ended
	Jan. 11, 2016 USD ($) shares	Oct. 03, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 30, 2013 USD ($)	Dec. 30, 2013 USD ($)	Dec. 31, 2014 USD ($)	Jan. 31, 2007 USD ($)	Sep. 30, 2015	Dec. 31, 2015 USD ($) agreement	Jul. 31, 2014
Principal maturities of long-term debt by type of debt
Number of debt agreements with specific financial targets or ratios | agreement									0
Corporate Joint Venture
Principal maturities of long-term debt by type of debt
Ownership percentage - SpringCastle									47.00%	47.00%
Senior Notes Issued in May 2013
Principal maturities of long-term debt by type of debt
Long term debt						$ 700,000,000			$ 700,000,000
Interest rates (as a percent)						5.25%
Junior Subordinated Debt | Springleaf Finance Corporation
Principal maturities of long-term debt by type of debt
Long term debt							$ 350,000,000
Term of debt							60 years
Average fixed charge ratio								0.94
Trailing period used to calculate fixed charge ratio								12 months
Junior Subordinated Debt | Springleaf Finance Corporation | Subsequent Event [Member]
Principal maturities of long-term debt by type of debt
Debt Instrument, Convertible, Number of Equity Instruments | shares	1
Common stock issued for deferred interest payment	$ 11,000,000
Junior Subordinated Debt | Springleaf Finance Corporation | Minimum [Member]
Principal maturities of long-term debt by type of debt
Tangible equity to tangible managed assets (as a percent)							5.50%
Average fixed charge ratio							1.1
Secured Term Loan | Springleaf Financial Funding Company
Principal maturities of long-term debt by type of debt
Repayments of debt			$ 750,000,000
Guaranty Agreements | Senior debt | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Long term debt				$ 5,200,000,000	$ 5,200,000,000				4,200,000,000
Guaranty Agreements | 8.250% Senior Notes due 2023 | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)				8.25%	8.25%
Guaranty Agreements | 7.750% Senior Notes due 2021 | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)				7.75%	7.75%
Guaranty Agreements | 6.00% Senior Notes due 2020 | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)				6.00%	6.00%
Guaranty Agreements | Junior Subordinated Debt | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Long term debt				$ 350,000,000	$ 350,000,000				350,000,000
Term of debt				60 years	60 years
Guaranty Agreements | Senior Notes 1999 Indenture | OneMain Financial Holdings, Inc. [Member]
Principal maturities of long-term debt by type of debt
Long term debt									$ 2,300,000,000
Senior Notes Issued in May 2013 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Gain (loss) on extinguishment of debt						$ 17,000,000
6.50 % Medium Term Notes due 2017 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)						6.50%
Debt repurchased						$ 23,000,000
6.90 % Medium Term Notes due 2017 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)						6.90%
Debt repurchased						$ 66,000,000
SpringCastle Funding Asset-backed Notes 2013-A [Member] | Corporate Joint Venture
Principal maturities of long-term debt by type of debt
Gain (loss) on extinguishment of debt		$ 21,000,000
Beneficial Owners of Debt | Senior Notes Issued in May 2013 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Capitalized debt modification expense						57,000,000
Gain (loss) on extinguishment of debt						20,000,000
Beneficial Owners of Debt | 6.50 % Medium Term Notes due 2017 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Debt repurchased						9,000,000
Beneficial Owners of Debt | 6.90 % Medium Term Notes due 2017 | Medium Term Notes
Principal maturities of long-term debt by type of debt
Debt repurchased						$ 361,000,000

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Variable Interest Entities Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Dec. 31, 2013	Dec. 31, 2012
Variable Interest Entity [Line Items]
Cash and cash equivalents			$ 321	$ 749		$ 375	$ 1,357
Personal loans of consolidated VIEs			4,300	3,800
SpringCastle Portfolio			1,703	2,091
Allowance for finance receivable losses			224	180		426	259
Finance receivables held for sale			793	202
Restricted cash and cash equivalents			295	218
Other assets			281	475
Long-term debt			9,582	8,356
Other liabilities			216	259
Debt issuance cost	$ 32		29
New Accounting Pronouncement, Early Adoption, Effect
Variable Interest Entity [Line Items]
Debt issuance cost				29
Personal Loans
Variable Interest Entity [Line Items]
Allowance for finance receivable losses			173	130		94	67
Finance receivables held for sale					$ 608
SpringCastle Portfolio
Variable Interest Entity [Line Items]
Allowance for finance receivable losses			4	3		$ 0	$ 0
Consolidated VIEs
Variable Interest Entity [Line Items]
Cash and cash equivalents			7	52
Allowance for finance receivable losses			128	72
Finance receivables held for sale			435	0
Restricted cash and cash equivalents			282	210
Other assets			48	23
Long-term debt			5,513	3,630
Other liabilities			9	8
Consolidated VIEs | New Accounting Pronouncement, Early Adoption, Effect | Long-term Debt
Variable Interest Entity [Line Items]
Debt issuance cost		$ 14
Consolidated VIEs | Personal Loans
Variable Interest Entity [Line Items]
Personal loans of consolidated VIEs			3,621	1,853
Consolidated VIEs | SpringCastle Portfolio
Variable Interest Entity [Line Items]
SpringCastle Portfolio			$ 1,703	$ 2,091

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Variable Interest Entities Customer Loan and Mortgage Securitizations (Details) - USD ($) $ in Millions									1 Months Ended
	Apr. 07, 2015	Feb. 26, 2015	Oct. 03, 2014	Apr. 17, 2014	Mar. 26, 2014	Sep. 25, 2013	Jun. 19, 2013	Feb. 19, 2013	Feb. 28, 2013	Dec. 31, 2015	Dec. 15, 2015	Mar. 09, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Long-term debt, gross										$ 10,101
Spring Castle Credit Funding LLC | Asset-backed securities
Debt Instrument [Line Items]
Weighted Average Yield of Notes			4.68%
Debt instrument, face amount			$ 2,600
Proceeds from issuance of debt, net			2,600
Long-term debt, unpaid balance													$ 1,500
Notes purchased from SAC			363
Debt instrument, retained by co-issuer			$ 62
Noncontrolling interest, ownership percentage			30.00%
Springleaf Acquisition Corporation | SpringCastle 2014-A Notes, Class C
Debt Instrument [Line Items]
Long-term debt, gross												$ 232
Springleaf Acquisition Corporation | SpringCastle 2014-A Notes, Class D
Debt Instrument [Line Items]
Long-term debt, gross												$ 131
Securitization [Member] | Consolidated VIEs | Personal Loans | Springleaf FundingTrust 2013 B
Debt Instrument [Line Items]
Line of Credit Facility, Draw Period				35 months
Securitization [Member] | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2014 A
Debt Instrument [Line Items]
Line of Credit Facility, Draw Period				23 months
Securitization [Member] | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2015-A
Debt Instrument [Line Items]
Line of Credit Facility, Draw Period				35 months
Securitization [Member] | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2015 B
Debt Instrument [Line Items]
Line of Credit Facility, Draw Period				59 months
Asset-backed securities | Consolidated VIEs | Springleaf Funding Trust 2013 A
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction								$ 568			$ 225
Weighted Average Yield of Notes								2.83%
Proceeds from accounts receivable securitization									$ 568
Amount for interest reserve requirement on notes sold under securitization transaction								$ 7
Principal balance retained								$ 36
Debt instrument, redemption price											189
Amount excluded from the redemption price											$ 37
Asset-backed securities | Consolidated VIEs | Springleaf FundingTrust 2013 B
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction							$ 256
Weighted Average Yield of Notes							4.11%
Proceeds from accounts receivable securitization							$ 255
Amount for interest reserve requirement on notes sold under securitization transaction							4
Asset-backed securities | Consolidated VIEs | Springleaf FundingTrust 2013 B | Senior Subordinated Notes
Debt Instrument [Line Items]
Principal balance retained							30
Additional debt of senior asset-backed notes							112
Asset-backed securities | Consolidated VIEs | Springleaf FundingTrust 2013 B | Senior debt
Debt Instrument [Line Items]
Principal balance retained							$ 114
Asset-backed securities | Consolidated VIEs | Springleaf Funding Trust 2013 BAC
Debt Instrument [Line Items]
Proceeds from accounts receivable securitization						$ 500
Asset-backed securities | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2014 A
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction					$ 559
Weighted Average Yield of Notes					2.62%
Proceeds from accounts receivable securitization					$ 559
Amount for interest reserve requirement on notes sold under securitization transaction					6
Principal balance retained					$ 33
Asset-backed securities | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2015-A
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction		$ 1,200
Weighted Average Yield of Notes		3.58%
Proceeds from accounts receivable securitization		$ 1,200
Amount for interest reserve requirement on notes sold under securitization transaction		$ 12
Asset-backed securities | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2015 B
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction	$ 314
Weighted Average Yield of Notes	3.84%
Proceeds from accounts receivable securitization	$ 314
Amount for interest reserve requirement on notes sold under securitization transaction	$ 3
Asset-backed securities | Consolidated VIEs | Personal Loans | Springleaf Funding Trust 2013 BAC
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction						$ 500

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Variable Interest Entities SpringCastle 2014-A Securitization (Details) - USD ($) $ in Millions	Oct. 03, 2014	Dec. 31, 2015	Mar. 09, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Long-term debt, gross		$ 10,101
Springleaf Acquisition Corporation | SpringCastle 2014-A Notes, Class C
Debt Instrument [Line Items]
Long-term debt, gross			$ 232
Springleaf Acquisition Corporation | SpringCastle 2014-A Notes, Class D
Debt Instrument [Line Items]
Long-term debt, gross			$ 131
Spring Castle Credit Funding LLC | Asset-backed securities
Debt Instrument [Line Items]
Debt instrument, face amount	$ 2,600
Weighted Average Yield of Notes	4.68%
Proceeds from issuance of debt, net	$ 2,600
Long-term debt, unpaid balance				$ 1,500
Notes purchased from SAC	363
Debt instrument, retained by co-issuer	$ 62
Noncontrolling interest, ownership percentage	30.00%

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Variable Interest Entities Mortgage-backed Notes Sold Previously Retained (Details) - Collateralized Mortgage Backed Securities - USD ($) $ in Millions				12 Months Ended
	Oct. 09, 2013	Jul. 09, 2013	Apr. 10, 2013	Dec. 31, 2013
Springleaf Mortgage Loan Trust 20131 [Member] | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of notes sold under private securitization transaction			$ 783
Weighted Average Yield of Notes			2.85%
Principal balance retained			$ 237
Proceeds from accounts receivable securitization			$ 782
The 2012-2 Trust | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from accounts receivable securitization				$ 20
Debt instrument, face amount				21
The 2012-3 Trust | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from accounts receivable securitization				8
Debt instrument, face amount				8
The 2013-2 Trust | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of notes sold under private securitization transaction		$ 599
Weighted Average Yield of Notes		2.88%
Principal balance retained		$ 535
Proceeds from accounts receivable securitization		$ 591
The 2013-2 Trust | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from accounts receivable securitization				158
Debt instrument, face amount				149
The 2013-3 Trust | Consolidated VIEs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of notes sold under private securitization transaction	$ 271
Weighted Average Yield of Notes	3.40%
Principal balance retained	$ 229
Proceeds from accounts receivable securitization	$ 269
The 2013-3 Trust | Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from accounts receivable securitization				23
Debt instrument, face amount				$ 23

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Variable Interest Entities Revolving Conduit Facilities (Details) - Variable Interest Entity, Primary Beneficiary - Asset-backed securities - USD ($)													12 Months Ended
	Jun. 10, 2015	Jun. 03, 2015	May 27, 2015	Jan. 16, 2015	Jan. 15, 2015	Jun. 26, 2014	Jun. 13, 2014	Mar. 27, 2014	Dec. 20, 2013	Sep. 27, 2013	Sep. 26, 2013	Sep. 25, 2013	Dec. 31, 2015	Dec. 21, 2015	Dec. 10, 2015	Dec. 03, 2015	Nov. 23, 2015	Jul. 15, 2015	Mar. 25, 2015	Mar. 24, 2015	Mar. 24, 2014
Midbrook Funding Trust 2013 VFN1 | Personal Loans
Debt Instrument [Line Items]
Maximum principal balance that can be issued							$ 300,000,000				$ 300,000,000
Amount Funded at Closing of Securitization Transaction											$ 0		$ 0
Funding Period Including Extended Period							2 years
Funding Period											1 year
Springleaf Funding Trust 2013 VFN1
Debt Instrument [Line Items]
Maximum principal balance that can be issued										$ 350,000,000
Amount Funded at Closing of Securitization Transaction										$ 0
Funding Period Including Extended Period										3 years
Outstanding balance													0
Funding Period										2 years
Extended Funding Period										1 year
Springleaf Funding Trust 2013 VFN1 | Personal Loans
Debt Instrument [Line Items]
Maximum principal balance that can be issued													350,000,000
Sumner Brook Funding Trust 2013 VFN1
Debt Instrument [Line Items]
Maximum principal balance that can be issued				$ 350,000,000					$ 350,000,000
Amount Funded at Closing of Securitization Transaction									$ 0
Funding Period Including Extended Period									2 years
Outstanding balance													100,000,000	$ 100,000,000
Funding Period				3 years	2 years				2 years
Whitford Brook Funding Trust2014 VFN1 | Personal Loans
Debt Instrument [Line Items]
Maximum principal balance that can be issued		$ 250,000,000				$ 300,000,000														$ 300,000,000
Securitization Required Minimum Balance						$ 100,000,000															$ 100,000,000
Amount paid under securitization																			$ 100,000,000
Outstanding balance													200,000,000			$ 100,000,000		$ 100,000,000
Funding Period						3 years
Mill River 2015 VFN1
Debt Instrument [Line Items]
Maximum principal balance that can be issued			$ 400,000,000
Amount Funded at Closing of Securitization Transaction													0
Outstanding balance													400,000,000		$ 200,000,000		$ 200,000,000
Funding Period			3 years
Second Avenue funding, LLC securitization
Debt Instrument [Line Items]
Maximum principal balance that can be issued		$ 250,000,000
Amount Funded at Closing of Securitization Transaction													0
Outstanding balance													250,000,000				$ 250,000,000
Funding Period		3 years
First Avenue Funding LLC 2015
Debt Instrument [Line Items]
Maximum principal balance that can be issued	$ 250,000,000
Amount Funded at Closing of Securitization Transaction													0
Outstanding balance													$ 250,000,000
Funding Period	2 years
Springleaf Funding Trust 2013 BAC
Debt Instrument [Line Items]
Proceeds from accounts receivable securitization												$ 500,000,000
Springleaf Funding Trust 2013 BAC | Personal Loans
Debt Instrument [Line Items]
Repayments of debt								$ 231,000,000
Personal Loans | Springleaf Funding Trust 2013 BAC
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction												$ 500,000,000

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Variable Interest Entities Narrative (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) loan securitization	Dec. 31, 2014 USD ($) loan	Dec. 31, 2013 USD ($) loan
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Interest expense	$ 167	$ 171	$ 171	$ 158	$ 157	$ 172	$ 172	$ 182	$ 667	$ 683	$ 843
Cost of mortgages sold										$ 6,400	$ 18
Number of loans repurchased under recourse agreement | loan									13	9	20
Consolidated VIEs
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Interest expense									$ 184	$ 163	$ 147
Real Estate Loans | Collateralized Mortgage Backed Securities
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Cost of mortgages sold									5,100
Reserve for sale recourse obligations related to finance receivables sold									$ 6	$ 6
Number of loans repurchased under recourse agreement | securitization									0

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Derivative Financial Instruments (Details) $ in Millions		12 Months Ended
	Aug. 05, 2013 USD ($) instrument	Dec. 31, 2013 USD ($) instrument	Dec. 31, 2015 instrument	Dec. 31, 2014 instrument
Fair value of derivative instruments
Derivative, Notional Amount			0	0
Other Noninterest Income
Fair value of derivative instruments
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $		$ 3
Cross currency interest rate
Fair value of derivative instruments
Derivative, Notional Amount		0
AIGFP | Affiliated companies | Cross currency interest rate
Fair value of derivative instruments
Derivative, Notional Amount	0
AIGFP | Affiliated companies | Cross currency interest rate | Other Noninterest Income
Fair value of derivative instruments
Loss recorded in other revenues - other on termination | $	$ 2	$ 2

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Derivative Financial Instruments - Cross Currency Interest Rate Swaps (Details 2) - Cross currency interest rate $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)
Fair value of derivative instruments
Balance at beginning of period	$ 417
Discontinued and terminated contracts	(417)
Balance at end of period	$ 0

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Derivative Financial Instruments - Derivative Adjustments (Details 3) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)
Other Noninterest Income
Derivative [Line Items]
Gain (Loss) on Hedging Activity	$ 9
Gain Loss on Derivative Instruments Mark to Market	(8)
Other Noninterest Income
Derivative [Line Items]
Unrealized Gain (Loss) on Derivatives	$ 1

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Insurance (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Insurance claims and policyholder liabilities
Insurance claims and policyholder liabilities	$ 230	$ 229
Unearned insurance premium and claim reserves	250	217	$ (172)
Insurance claims and policyholder liabilities assumed from other insurers	58	58
unearned premium and claim reserves and liability of benefit reserves	480	446
Non-affiliated insurance companies
Insurance claims and policyholder liabilities
Insurance claims and policyholder liabilities assumed from other insurers	58	15
Affiliated companies
Insurance claims and policyholder liabilities
Insurance claims and policyholder liabilities assumed from other insurers	0	43
Non-finance receivable
Insurance claims and policyholder liabilities
Benefit reserves	72	75
Claim reserves	41	42
Insurance claims and policyholder liabilities	113	117
Payable to SFC | Finance receivable
Insurance claims and policyholder liabilities
Unearned premium reserves	222	194
Claim reserves	28	23
Unearned insurance premium and claim reserves	250	217
Third-Party Beneficiaries | Finance receivable
Insurance claims and policyholder liabilities
Benefit reserves	113	107
Claim reserves	4	5
Insurance claims and policyholder liabilities	$ 117	$ 112

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Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable
Balance at beginning of period	$ 48	$ 46	$ 51
Additions for losses and loss adjustment expense incurred to:
Current year	64	65	59
Prior years	0	(3)	(6)
Total	64	62	53
Reductions for losses and loss adjustment expenses paid related to:
Current year	(40)	(39)	(35)
Prior years	(21)	(21)	(23)
Total	(61)	(60)	(58)
Balance at end of period	$ 51	$ 48	$ 46

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Insurance - Statutory Net Income (Loss) (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and casualty
Statutory net income and statutory capital and surplus
Statutory net income	$ 15	$ 16	$ 41
Statutory capital and surplus	76	108
Life and accident and health
Statutory net income and statutory capital and surplus
Statutory net income	(1)	(2)	$ 3
Statutory capital and surplus	$ 123	$ 171

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Insurance - Narrative (Details 4) - USD ($) $ in Millions		12 Months Ended
	Jul. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Insurance
Statutory Accounting Practice, Period that the ordinary dividends can be paid without prior approval		12 months
Ceded insurance reserves		$ 22	$ 22
Prior years		$ 0	(3)	$ (6)
Maximum amount of dividends that may be paid in a 12 month period without prior approval from regulatory agencies, as a percentage of policyholder's surplus		10.00%
Statutory Accounting Practice, Period that the extraordinary dividends can be paid without prior approval		12 months
Maximum Amount of Extraordinary Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus		10.00%
Merit
Insurance
Proceeds from Dividends Received			18
CommoLoCo, Inc.
Insurance
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency	$ 58
Payment of approved extraordinary dividend as percentage of wholly owned subsidiary common stock				100.00%
Yosemite
Insurance
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency		$ 100	57	$ 150
Non-affiliated insurance companies
Insurance
Ceded insurance reserves		$ 22	$ 22

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Other Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Retirement plans	$ 55	$ 50
Accrued interest on debt	55	57
Payables to parent and affiliates	24	48
Other accrued expenses and accounts payable	17	30
Loan principal warranty reserve	15	24
Salary and benefit liabilities	14	11
Bank overdrafts	14	5
Other insurance liabilities	5	4
Other	17	30
Total	$ 216	$ 259

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Capital Stock (Details) $ / shares in Units, $ in Millions		12 Months Ended
	Jul. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2015 item $ / shares shares	Dec. 31, 2014 $ / shares shares	Jul. 10, 2014 USD ($)	Jan. 31, 2014 USD ($)	Jul. 31, 2013 USD ($)	Jan. 31, 2013 USD ($)
Capital stock
Number of classes of authorized capital stock | item		2
Par value and shares authorized
Special Shares, Par Value (in dollars per share) | $ / shares		$ 0
Common Stock, Par or Stated Value Per Share | $ / shares		$ 0.50	$ 0.50
Special Shares authorized		25,000,000
Common Shares Authorized		25,000,000	25,000,000
Shares issued and outstanding
Special Stock Shares Issued		0	0
Special Stock Shares Outstanding		0	0
Common stock, shares issued		10,160,020	10,160,020
Common stock, shares outstanding		10,160,020	10,160,020
Springleaf Acquisition Corporation | Springleaf Finance Corporation
Capital stock
Capital contributions received to satisfy hybrid debt semi-annual interest payments | $	$ 11			$ 11	$ 11	$ 11	$ 11
Related party capital contribution	100
Related party capital contribution, par value (in USD per share) | $ / shares	$ 0.01

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	$ 3	$ 28	$ 26
Other comprehensive income (loss) before reclassifications	(18)	(20)	3
Reclassification adjustments from accumulated other comprehensive income	(9)	(5)	(1)
Balance at end of period	(24)	3	28
Unrealized gains (losses) on investment securities
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	12	4	13
Other comprehensive income (loss) before reclassifications	(12)	13	(8)
Reclassification adjustments from accumulated other comprehensive income	(9)	(5)	(1)
Balance at end of period	(9)	12	4
Retirement Plan Liabilities Adjustments
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	(13)	20	8
Other comprehensive income (loss) before reclassifications	(6)	(33)	12
Reclassification adjustments from accumulated other comprehensive income	0	0	0
Balance at end of period	(19)	(13)	20
Foreign Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	4	4	5
Other comprehensive income (loss) before reclassifications	0	0	(1)
Reclassification adjustments from accumulated other comprehensive income	0	0	0
Balance at end of period	$ 4	$ 4	$ 4

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Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reclassification adjustments from accumulated other comprehensive income (loss)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes									$ (49)	$ (39)	$ (34)
Income tax effect	$ (4)	$ (5)	$ 0	$ (9)	$ 17	$ (198)	$ (29)	$ (23)	(18)	(233)	49
Unrealized gains (losses) on investment securities | Reclassification adjustments
Reclassification adjustments from accumulated other comprehensive income (loss)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes									14	8	2
Income tax effect									5	3	1
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes									$ 9	$ 5	$ 1

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income (Loss) from Continuing Operations before Income Taxes, Domestic									$ 152	$ 676	$ (121)
Income (Loss) from Continuing Operations before Income Taxes, Foreign									7	2	(4)
Income (loss) before provision for (benefit from) income taxes	$ 37	$ 40	$ 35	$ 47	$ (51)	$ 594	$ 75	$ 60	159	678	(125)
Current:
Current Federal									63	228	62
Current Foreign									0	0	1
Current State Tax Expense (Benefit)									5	17	2
Total current									68	245	65
Deferred:
Deferred Federal Income Tax Expense (Benefit)									(46)	(10)	(103)
Deferred Foreign Income Tax Expense (Benefit)									0	0	1
Deferred State Income Tax Expense (Benefit)									(4)	(2)	(12)
Total deferred									(50)	(12)	(114)
Provision for (benefit from) income taxes	4	$ 5	$ 0	9	(17)	$ 198	$ 29	23	$ 18	$ 233	$ (49)
Reconciliation of the statutory federal income tax rate to the effective tax rate
Statutory federal income tax rate									35.00%	35.00%	35.00%
Non-controlling interests									27.91%	2.51%	(0.00%)
Nondeductible compensation									3.39%	0.00%	(2.16%)
Nontaxable investment income									0.29%	0.14%	(1.20%)
State income taxes, net of federal									0.23%	1.50%	4.60%
Foreign operations									0.12%	0.51%	(2.91%)
Interest and penalties on prior year tax returns									0.00%	(0.14%)	(4.75%)
Change in tax status									0.00%	0.00%	9.07%
Other, net									0.58%	0.15%	(0.66%)
Effective income tax rate									11.12%	34.37%	39.39%
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation
Balance at beginning of year				$ 4				$ 2	$ 4	$ 2	$ 2
Increases in tax positions for prior years									4	3	0
Decreases in tax positions for prior years									(2)	0	0
Increases in tax positions for current years									4	0	0
Lapse in statute of limitations									0	(1)	0
Settlements with tax authorities									(1)	0	0
Balance at end of year	9				4				9	4	2
Accrued payment of interest (net of federal benefit) and penalties	$ 3				$ 1				$ 3	$ 1	$ 1

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for loan losses	$ 95	$ 81
Capital loss carryforward	27	0
Pension/employee benefits	26	20
State taxes, net of federal	19	20
Net operating losses and tax attributes	16	19
Joint venture	8	0
Legal and warranty reserve	6	9
Deferred insurance commissions	5	3
Payment protection insurance liability	2	5
Other	8	5
Total	212	162
Deferred tax liabilities:
Debt writedown	150	194
Impact of tax accounting method change	76	0
Discount - debt exchange	20	23
Deferred Tax Liabilities, Mark to Market	21	51
Insurance reserves	15	10
Other intangible assets	5	7
Other	0	5
Total	287	295
Deferred Tax Assets, Liabilities Gross	(75)	(133)
Valuation allowance	(38)	(44)
Net deferred tax liabilities	$ (113)	$ (177)

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Income Taxes - Narrative (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Jul. 31, 2014
Income taxes
Net deferred tax liabilities	$ 113	$ 177
Valuation allowance	38	44
Capital loss carryforward	78
State operating loss carryforward	548	500
State
Income taxes
Valuation allowance	22	26
Income taxes receivable, current	8	5
United Kingdom operations
Income taxes
Foreign net operating loss carryforward from United Kingdom operations	13	15
Federal and foreign tax authorities
Income taxes
Taxes payable, current	14
Income taxes receivable, current		100
Puerto Rico Jurisdiction
Income taxes
Foreign net operating loss carryforward from United Kingdom operations	2	2
Puerto Rico Jurisdiction | United Kingdom operations
Income taxes
Valuation allowance	$ 16	$ 18
Corporate Joint Venture
Income taxes
Ownership percentage - SpringCastle	47.00%		47.00%

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Lease Commitments, Rent Expense, and Contingent Liabilities (Details) $ in Millions	Dec. 31, 2015 USD ($)
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases
First quarter 2016	$ 7
Second quarter 2016	7
Third quarter 2016	7
Fourth quarter 2016	6
2015	27
2017	21
2018	15
2019	9
2020	4
2021 and thereafter	1
Total	$ 77

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Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) request in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) loan request	Dec. 31, 2014 USD ($) loan	Dec. 31, 2013 USD ($) loan
Loss Contingencies [Line Items]
Number of loans repurchased under recourse agreement | loan	13	9	20
Payments to repurchase financing receivables	$ 1	$ 1	$ 3
Material recourse requests with loss exposure not expected to be covered by reserve | request	0
Balance at beginning of period	$ 24	5	5
Recourse losses	(2)	0	0
Provision for recourse obligations, net of recoveries	(7)	19	0
Balance at end of period	$ 15	24	$ 5
Real Estate Loan
Loss Contingencies [Line Items]
Reserve for sale recourse obligations related to finance receivables sold		$ 22

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Lease Commitments, Rent Expense, and Contingent Liabilities Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Rental expense	$ 28	$ 29	$ 30
Estimated PPI claims reserve	$ 6	$ 14

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Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Springleaf Financial Services Retirement Plan
Benefit Plans
Minimum eligibility age to participate in the plan	21 years
Continuous service period required to participate in the plan	12 months
Vesting period	5 years
Normal retirement age	65 years
Maximum credited service period	44 years
CommoLoCo Retirement Plan
Benefit Plans
Minimum eligibility age to participate in the plan	21 years
Continuous service period required to participate in the plan	1 year
Springleaf Retiree Medical and Life Insurance Plan
Benefit Plans
Minimum eligibility age to participate in the plan	55 years
Continuous service period required to participate in the plan	10 years
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements		$ 4
Curtailment gain		$ (2)
CommoLoCo Retiree Life Insurance Plan
Benefit Plans
Minimum eligibility age to participate in the plan	55 years
Continuous service period required to participate in the plan	10 years

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Benefit Plans - 401(k) Plans (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Springleaf Financial Services 401(k) Plan
401(K) PLANS
Maximum employer matching contribution (as a percent)	100.00%	100.00%	100.00%
Percentage of employee salary eligible for employer matching contribution	4.00%	4.00%	4.00%
Maximum employer discretionary profit sharing contribution as percentage of annual pay	4.00%
Salaries and benefit expense related to plan	$ 5	$ 4	$ 4
CommoLoCo Thrift Plan
401(K) PLANS
Maximum employer matching contribution (as a percent)	100.00%
Percentage of employee salary eligible for employer matching contribution	3.00%
Employer's match of employees' contributions of the next 3% of eligible compensation (as a percent)	50.00%
Percentage of eligible compensation, matched 50% by employer	3.00%

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Benefit Plans - Obligations and Funded Status (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair value of plan assets
Balance at the beginning of the period	$ 359
Balance at the end of the period	333	$ 359
Pretax amounts recognized in accumulated other comprehensive income or loss:
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax	9	50	$ (18)
Pension Plan
Benefit Plans
Defined Benefit Plan, Service Cost		0	0
Projected benefit obligation
Balance at the beginning of the period	409	323	368
Interest cost	15	15	14
Actuarial loss (gain)	(24)	83	(47)
Benefits paid: Plan assets	(12)	(12)	(12)
Curtailment	0	0	0
Balance at the end of the period	388	409	323
Fair value of plan assets
Balance at the beginning of the period	359	317	347
Actual return of plan assets, net of expenses	(15)	54	(18)
Company contributions	1	0	0
Benefits paid: Plan assets	(12)	(12)	(12)
Balance at the end of the period	333	359	317
Funded status, end of period	(55)	(50)	(6)
Net amounts recognized in the consolidated balance sheet:
Other assets	0	0	7
Other liabilities	(55)	(50)	(13)
Total amounts recognized	(55)	(50)	(6)
Pretax amounts recognized in accumulated other comprehensive income or loss:
Total amounts recognized	29	(19)	26
Projected benefit obligation of non-qualified unfunded plans	10	10
Accumulated benefit obligation	388	409
Defined Benefit Plan, Expected Return on Plan Assets	19	16	15
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments		0	0
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements		0	0
Defined Benefit Plan, Net Periodic Benefit Cost	(4)	(1)	(1)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax	(9)	(46)	13
Other Comprehensive Income Loss Finalization of Pension and Non Pension Postretirement Plan Valuation Settlement Before Tax		0	0
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax	9	46	(13)
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax	5	45	(14)
Other Postretirement Benefit Plan
Benefit Plans
Defined Benefit Plan, Service Cost		0	1
Projected benefit obligation
Balance at the beginning of the period	0	2	7
Interest cost		0	0
Actuarial loss (gain)		0	(5)
Benefits paid: Plan assets		0	0
Curtailment		(2)	0
Balance at the end of the period		0	2
Fair value of plan assets
Balance at the beginning of the period	$ 0	0	0
Actual return of plan assets, net of expenses		0	0
Company contributions		0	0
Benefits paid: Plan assets		0	0
Balance at the end of the period		0	0
Funded status, end of period		0	(2)
Net amounts recognized in the consolidated balance sheet:
Other assets		0	0
Other liabilities		0	(2)
Total amounts recognized		0	(2)
Pretax amounts recognized in accumulated other comprehensive income or loss:
Total amounts recognized		0	4
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments		2	0
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements		4
Defined Benefit Plan, Net Periodic Benefit Cost		(6)	1
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax		0	5
Other Comprehensive Income Loss Finalization of Pension and Non Pension Postretirement Plan Valuation Settlement Before Tax		(4)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax		4	(5)
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax		$ (2)	$ (4)

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Benefit Plans - PBO (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Total recognized in other comprehensive income or loss	$ 9	$ 50	$ (18)
Pension Plan
Benefit Plans
Accumulated benefit obligation	388	409
PBO Exceeds Fair Value of Plan Assets
Projected benefit obligation	388	409
Accumulated benefit obligation	388	409
Fair value of plan assets	333	359
Components of net periodic benefit cost:
Defined Benefit Plan, Service Cost		0	0
Interest cost	15	15	14
Expected return on assets	(19)	(16)	(15)
Curtailment gain		0	0
Settlement loss (gain)		0	0
Net periodic benefit cost	(4)	(1)	(1)
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)	9	46	(13)
Net settlement gain (loss)		0	0
Total recognized in other comprehensive income or loss	9	46	(13)
Total recognized in net periodic benefit cost and other comprehensive income or loss	5	45	(14)
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year
Estimated net loss	1
Estimated prior service credit	0
Other Postretirement Benefit Plan
Components of net periodic benefit cost:
Defined Benefit Plan, Service Cost		0	1
Interest cost		0	0
Curtailment gain		(2)	0
Settlement loss (gain)		(4)
Net periodic benefit cost		(6)	1
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)		0	(5)
Net settlement gain (loss)		4
Total recognized in other comprehensive income or loss		4	(5)
Total recognized in net periodic benefit cost and other comprehensive income or loss		$ (2)	$ (4)
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year
Estimated net loss and prior service credit	$ 0

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Benefit Plans - Assumptions (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fixed income securities
Net periodic benefit costs:
Actual asset allocation (as a percent)	90.00%
Target asset allocation (as a percent)	88.00%
Equity securities
Net periodic benefit costs:
Actual asset allocation (as a percent)	9.00%
Target asset allocation (as a percent)	12.00%
Cash and cash equivalents
Net periodic benefit costs:
Actual asset allocation (as a percent)	1.00%
Pension Plan
Projected benefit obligation:
Discount rate (as a percent)	4.26%	3.89%
Net periodic benefit costs:
Discount rate (as a percent)	3.89%	4.83%
Expected return on assets (as a percent)	5.27%	5.29%
Rate of compensation increase (as a percent)	0.00%	0.00%
Expected future benefit payments, net of participants' contribution
2016	$ 15
2017	15
2018	15
2019	15
2020	16
2021-2025	$ 89
Other Postretirement Benefit Plan
Projected benefit obligation:
Discount rate (as a percent)	3.45%	3.80%
Net periodic benefit costs:
Discount rate (as a percent)	3.80%	3.80%
Springleaf Financial Services Retirement Plan
Net periodic benefit costs:
Expected return on assets (as a percent)	5.30%
CommoLoCo Retirement Plan
Net periodic benefit costs:
Expected return on assets (as a percent)	5.70%

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Benefit Plans - Fair Value (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Benefit Plans
Total fair value of plan assets	$ 333	$ 359
Level 1
Benefit Plans
Total fair value of plan assets	3	2
Level 2
Benefit Plans
Total fair value of plan assets	330	357
Cash and cash equivalents
Benefit Plans
Total fair value of plan assets	3	2
Cash and cash equivalents | Level 1
Benefit Plans
Total fair value of plan assets	3	2
Equity securities | U.S.
Benefit Plans
Total fair value of plan assets	16	19
Equity securities | U.S. | Level 2
Benefit Plans
Total fair value of plan assets	16	19
Equity securities | International
Benefit Plans
Total fair value of plan assets	15	1
Equity securities | International | Level 2
Benefit Plans
Total fair value of plan assets	15	1
Investment Grade Securities | U.S.
Benefit Plans
Total fair value of plan assets	291	335
Investment Grade Securities | U.S. | Level 2
Benefit Plans
Total fair value of plan assets	291	335
High Yield Securities | U.S.
Benefit Plans
Total fair value of plan assets	8	2
High Yield Securities | U.S. | Level 2
Benefit Plans
Total fair value of plan assets	$ 8	$ 2

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Share-Based Compensation - Narrative (Details)			1 Months Ended		3 Months Ended		12 Months Ended
	Oct. 16, 2013	Oct. 08, 2013 shares	Oct. 31, 2013 $ / shares shares	Sep. 30, 2013 USD ($) employee shares	Jun. 30, 2015 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Oct. 09, 2013
SHARE-BASED COMPENSATION
Vesting period of award with rights							2 years
Total income tax benefit recognized for stock-based compensation | $							$ 1,000,000	$ 1,000,000	$ 51,000,000
Unrecognized compensation expense | $							$ 4,000,000
Weighted average period over which unrecognized compensation expense expected is to be recognized							2 years 11 months
Service-Based Awards [Member]
SHARE-BASED COMPENSATION
Weighted average grant date fair value (in USD per share) | $ / shares							$ 47.44	$ 25.65	$ 17.00
Fair value of vested shares | $							$ 7,000,000
Vested shares								1,000,000	0
Restricted Stock Units
SHARE-BASED COMPENSATION
Vesting period of award without rights	4 years 2 months 12 days
Weighted average grant date fair value (in USD per share) | $ / shares							$ 47.44
Vested shares							384,902
Shares granted							1,115,662
Share-based compensation expense | $							$ 2,000,000	$ 1,000,000	$ 145,000,000
Weighted average grant date fair value (in USD per share) | $ / shares							$ 33.95	$ 17.91
Restricted Stock Units | Springleaf Holdings, LLC
SHARE-BASED COMPENSATION
Share-based compensation expense | $				$ 145,000,000
Percentage of outstanding shares into which equity awards are converted to rights										8.20313%
Shares delivered to holders of the award			8,203,125
Weighted average grant date fair value (in USD per share) | $ / shares			$ 16.00
Period within which equity awards cannot be sold or transferred			5 years
Restricted Stock Units | Executives | Springleaf Holdings, LLC
SHARE-BASED COMPENSATION
Shares granted				8.203125
Number of executives to whom share-based awards granted | employee				2
Share-based compensation expense | $				$ 131,000,000
Reductions to awards during the period (in shares)		0.859375
Restricted Stock Units | Management | Springleaf Holdings, LLC
SHARE-BASED COMPENSATION
Additional compensation expense | $						$ 14,000,000
Restricted Stock Awards
SHARE-BASED COMPENSATION
Vesting period of award with rights	3 years
Performance Shares
SHARE-BASED COMPENSATION
Weighted average grant date fair value (in USD per share) | $ / shares							$ 34.45	$ 25.78
Vested shares							0	0
Shares granted							16,091
Weighted average grant date fair value (in USD per share) | $ / shares							$ 25.79	$ 25.84
Incentive Units
SHARE-BASED COMPENSATION
Share-based compensation expense | $					$ 15,000,000			$ 0	$ 0
Omnibus Incentive Plan
SHARE-BASED COMPENSATION
Number of shares of common stock authorized							11,105,064
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted, more than							10.00%

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Share-Based Compensation - Service-based Activity (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of Shares
Unvested shares at beginning of period | shares	1,352,865
Granted | shares	1,115,662
Vested | shares	(384,902)
Forfeited | shares	(74,201)
Unvested shares at end of period | shares	2,009,424
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in USD per share) | $ / shares	$ 17.91
Weighted average grant date fair value (in USD per share) | $ / shares	47.44
Vested (in USD per share) | $ / shares	18.45
Forfeited (in USD per share) | $ / shares	24.65
Weighted average grant date fair value, end of period (in USD per share) | $ / shares	$ 33.95
Weighted Average Remaining Term (in Years)	2 years 10 months 28 days

XML

Share-Based Compensation - Performance Based Activity (Details) - Performance Shares - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of Shares
Unvested shares at beginning of period	583,459
Granted	16,091
Forfeited	(18,437)
Unvested shares at end of period	581,113	583,459
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in USD per share)	$ 25.84
Weighted average grant date fair value (in USD per share)	34.45	$ 25.78
Forfeited (in USD per share)	35.05
Weighted average grant date fair value, end of period (in USD per share)	$ 25.79	$ 25.84
Weighted Average Remaining Term (in Years)	2 years 7 months 2 days

XML

Segment Information (Details) $ in Millions		3 Months Ended								12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) state	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) state segment division	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Jul. 31, 2014
Information about segments as well as reconciliations to consolidated financial statement amounts
Number of business segments | segment										3
Number of states in which entity operates | state		27								27
Number of states where personal lending has ceased | state										14
Interest income		$ 430	$ 422	$ 406	$ 399	$ 403	$ 431	$ 389	$ 402	$ 1,657	$ 1,625	$ 1,637
Interest expense		167	171	171	158	157	172	172	182	667	683	843
Net interest income										990	942	794
Provision for finance receivable losses		109	78	73	79	87	85	80	100	339	352	371
Net interest income after provision for finance receivable losses										651	590	423
Other revenues		81	49	59	54	(38)	602	90	91	243	745	161
Other expenses		198	182	186	169	172	182	152	151	735	657	709
Income (loss) before provision for (benefit from) income taxes		37	$ 40	$ 35	$ 47	(51)	$ 594	$ 75	$ 60	159	678	(125)
Income before provision for income taxes attributable to non-controlling interests										127	48
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										32	630
Assets		12,188				10,998				12,188	10,998	12,612
Debt issuance cost	$ 32									29
Unearned insurance premium and claim reserves		$ 250				217				250	217	(172)
Insurance										158	166	148
Investment										49	39	34
Net loss on repurchases and repayments of debt										0	(66)	(42)
Net gain on fair value adjustments on debt										0	1	0
Net gain (loss) on sales of real estate loans and related trust assets										0	626	0
Other										36	(21)	21
Salaries and benefits										364	321	447
Other operating expenses										$ 299	261	197
Adjustments for New Accounting Principle, Early Adoption
Information about segments as well as reconciliations to consolidated financial statement amounts
Debt issuance cost											29	39
Consumer and Insurance
Information about segments as well as reconciliations to consolidated financial statement amounts
Number of operating segments | division										2
Number of states in which entity operates | state		27								27
Corporate Joint Venture
Information about segments as well as reconciliations to consolidated financial statement amounts
Ownership percentage - SpringCastle		47.00%								47.00%			47.00%
Operating Segments | Consumer and Insurance
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income										$ 1,115	911	721
Interest expense										190	163	149
Provision for finance receivable losses										255	200	117
Net interest income after provision for finance receivable losses										670	548	455
Other revenues										212	215	197
Other expenses										622	523	448
Income (loss) before provision for (benefit from) income taxes										260	240	204
Income before provision for income taxes attributable to non-controlling interests										0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										260	240
Assets		$ 5,632				4,218				5,632	4,218	3,999
Operating Segments | Acquisitions and Servicing Segment
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income										455	212	0
Interest expense										87	36	0
Provision for finance receivable losses										68	36	0
Net interest income after provision for finance receivable losses										300	140	0
Other revenues										5	(15)	0
Other expenses										61	30	0
Income (loss) before provision for (benefit from) income taxes										244	95	0
Income before provision for income taxes attributable to non-controlling interests										127	48
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										117	47
Assets		1,784				2,536				1,784	2,536
Operating Segments | Real Estate Loans
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income										68	401	690
Interest expense										213	349	539
Provision for finance receivable losses										(2)	128	255
Net interest income after provision for finance receivable losses										(143)	(76)	(104)
Other revenues										4	162	7
Other expenses										33	91	84
Income (loss) before provision for (benefit from) income taxes										(172)	(5)	(181)
Income before provision for income taxes attributable to non-controlling interests											0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										(172)	(5)
Assets		711				3,665				711	3,665	8,487
Consolidation, Eliminations [Member]
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income										0	0	0
Interest expense										(5)	(5)
Net interest income after provision for finance receivable losses										5	5	0
Other revenues										(5)	(5)	0
Other expenses										0	0	0
Income (loss) before provision for (benefit from) income taxes										0	0	0
Income before provision for income taxes attributable to non-controlling interests										0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation											0
Assets						0					0	0
Segment Reconciling Items [Member]
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income										11	85	181
Interest expense										127	133	140
Provision for finance receivable losses										17	(19)	(1)
Net interest income after provision for finance receivable losses										(133)	(29)	42
Other revenues										(15)	382	(56)
Other expenses										2	3	3
Income (loss) before provision for (benefit from) income taxes										(150)	350	(17)
Income before provision for income taxes attributable to non-controlling interests										0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										(150)	350
Assets		(58)				24				$ (58)	24	(485)
Non-core [Member]
Information about segments as well as reconciliations to consolidated financial statement amounts
Number of states where personal lending has ceased | state										14
Interest income										$ 8	16	45
Interest expense										55	7	15
Provision for finance receivable losses										1	7
Net interest income after provision for finance receivable losses										(48)	2	30
Other revenues										42	6	13
Other expenses										17	10	174
Income (loss) before provision for (benefit from) income taxes										(23)	(2)	(131)
Income before provision for income taxes attributable to non-controlling interests										0	0
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										(23)	(2)
Assets		$ 4,119				$ 555				$ 4,119	$ 555	$ 611

XML

Segment Information - Allocation of Revenues and Expenses (Details) - USD ($) $ in Millions	2 Months Ended	12 Months Ended	16 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Oct. 31, 2015
Real Estate and Other Segments
Segment Reporting Information [Line Items]
Unsecured debt allocation percent	100.00%		100.00%
Consumer and Insurance
Segment Reporting Information [Line Items]
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent		$ 208
Residential Portfolio Segment [Member]
Segment Reporting Information [Line Items]
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent		(157)
Other
Segment Reporting Information [Line Items]
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent		$ (51)
Minimum [Member] | Real Estate and Other Segments
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			83.00%
Maximum [Member] | Real Estate and Other Segments
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			100.00%
Total Average Unsecured Debt Allocation [Member] | Consumer and Insurance
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			100.00%
Total Average Unsecured Debt Allocation [Member] | Minimum [Member] | Consumer and Insurance
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			83.00%
Total Average Unsecured Debt Allocation [Member] | Maximum [Member] | Consumer and Insurance
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			100.00%

XML

Fair Value Measurements - Fair Value and Carrying Values of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets
Investment securities	$ 604	$ 2,922
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	295	218
Other assets:
Commercial mortgage loans	67	104
Escrow advance receivable	11	8
Receivables from parent and affiliates	9	11
Liabilities
Long-term debt	9,582	8,356
Total Fair Value
Assets
Cash equivalents in certificates of deposit and commercial paper	321	749
Investment securities	604	2,922
Net finance receivables, less allowance for finance receivable losses	6,897	6,949
Finance receivables held for sale	819	209
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	295	218
Other assets:
Commercial mortgage loans	62	78
Escrow advance receivable	11	8
Receivables from parent and affiliates	9	11
Receivables related to sales of real estate loans and related trust assets	1	67
Liabilities
Long-term debt	9,998	9,182
Payable to parent and affiliate	24	48
Total Carrying Value
Assets
Cash equivalents in certificates of deposit and commercial paper	321	749
Investment securities	604	2,922
Net finance receivables, less allowance for finance receivable losses	6,340	6,398
Finance receivables held for sale	793	202
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	295	218
Other assets:
Commercial mortgage loans	62	85
Escrow advance receivable	11	8
Receivables from parent and affiliates	9	11
Receivables related to sales of real estate loans and related trust assets	5	79
Liabilities
Long-term debt	9,582	8,356
Payable to parent and affiliate	24	48
Level 1
Assets
Cash equivalents in certificates of deposit and commercial paper	321	584
Investment securities	0	0
Net finance receivables, less allowance for finance receivable losses	0	0
Finance receivables held for sale	0	0
Notes receivable from parent and affiliates	0	0
Restricted cash and cash equivalents	295	218
Other assets:
Commercial mortgage loans	0	0
Escrow advance receivable	0	0
Receivables from parent and affiliates	0	0
Receivables related to sales of real estate loans and related trust assets	0	0
Liabilities
Long-term debt	0	0
Payable to parent and affiliate	0	0
Level 2
Assets
Cash equivalents in certificates of deposit and commercial paper	0	165
Investment securities	602	2,913
Net finance receivables, less allowance for finance receivable losses	0	0
Finance receivables held for sale	0	0
Notes receivable from parent and affiliates	3,804	251
Restricted cash and cash equivalents	0	0
Other assets:
Commercial mortgage loans	0	0
Escrow advance receivable	0	0
Receivables related to sales of real estate loans and related trust assets	1	67
Liabilities
Long-term debt	9,998	9,182
Payable to parent and affiliate	24	48
Level 3
Assets
Cash equivalents in certificates of deposit and commercial paper	0	0
Investment securities	2	9
Net finance receivables, less allowance for finance receivable losses	6,897	6,949
Finance receivables held for sale	819	209
Notes receivable from parent and affiliates	0	0
Restricted cash and cash equivalents	0	0
Other assets:
Commercial mortgage loans	62	78
Escrow advance receivable		8
Receivables from parent and affiliates	0	0
Receivables related to sales of real estate loans and related trust assets	0	0
Liabilities
Long-term debt	0	0
Payable to parent and affiliate	$ 0	$ 0

XML

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets
Available-for-sale securities	$ 591	$ 600
Trading securities	12	2,321
Investment securities	604	2,922
Trading securities	2	5
Total
Assets
Cash equivalents in certificates of deposit and commercial paper	321	749
Investment securities	604	2,922
Investment securities:
Assets
Available-for-sale securities	585	592
U.S. government and government sponsored entities
Assets
Available-for-sale securities	82	64
Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	89	102
Certificates of deposit and commercial paper
Assets
Available-for-sale securities		1
Corporate debt
Assets
Available-for-sale securities	267	267
RMBS
Assets
Available-for-sale securities	74	73
CMBS
Assets
Available-for-sale securities	44	24
CDO/ABS
Assets
Available-for-sale securities	29	61
Preferred stocks
Assets
Available-for-sale securities	5	7
Other long-term investments
Assets
Available-for-sale securities	1	1
Common stocks | Not Carried at Fair Value
Assets
Available-for-sale securities	1	1
Level 1
Assets
Cash equivalents in certificates of deposit and commercial paper	321	584
Investment securities	0	0
Level 2
Assets
Cash equivalents in certificates of deposit and commercial paper	0	165
Investment securities	602	2,913
Level 3
Assets
Cash equivalents in certificates of deposit and commercial paper	0	0
Investment securities	2	9
Recurring basis
Assets
Cash and cash equivalents in mutual funds	224	236
Cash equivalents in certificates of deposit and commercial paper		165
Available-for-sale securities	591	600
Trading securities	12	2,321
Investment securities	603	2,921
Restricted cash in mutual funds	276	207
Assets at fair value	1,103	3,529
Trading securities	2	5
Recurring basis | Investment securities:
Assets
Available-for-sale securities	585	592
Recurring basis | U.S. government and government sponsored entities
Assets
Available-for-sale securities	82	64
Trading securities		302
Recurring basis | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	89	102
Trading securities		14
Recurring basis | Certificates of deposit and commercial paper
Assets
Available-for-sale securities		1
Trading securities		238
Recurring basis | Non-U.S. government and government sponsored entities
Assets
Trading securities		20
Recurring basis | Corporate debt
Assets
Available-for-sale securities	267	267
Trading securities	10	1,056
Recurring basis | RMBS
Assets
Available-for-sale securities	74	73
Trading securities		35
Recurring basis | CMBS
Assets
Available-for-sale securities	44	24
Trading securities	2	149
Recurring basis | CDO/ABS
Assets
Available-for-sale securities	29	61
Trading securities		507
Recurring basis | Preferred stocks
Assets
Available-for-sale securities	5	7
Recurring basis | Other long-term investments
Assets
Available-for-sale securities	1	1
Recurring basis | Level 1
Assets
Cash and cash equivalents in mutual funds	224	236
Cash equivalents in certificates of deposit and commercial paper		0
Available-for-sale securities	0	0
Trading securities	0	0
Investment securities	0	0
Restricted cash in mutual funds	276	207
Assets at fair value	500	443
Recurring basis | Level 1 | Investment securities:
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | U.S. government and government sponsored entities
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 1 | Certificates of deposit and commercial paper
Assets
Available-for-sale securities		0
Trading securities		0
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities
Assets
Trading securities		0
Recurring basis | Level 1 | Corporate debt
Assets
Available-for-sale securities	0	0
Trading securities	0	0
Recurring basis | Level 1 | RMBS
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 1 | CMBS
Assets
Available-for-sale securities	0	0
Trading securities	0	0
Recurring basis | Level 1 | CDO/ABS
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 1 | Preferred stocks
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Other long-term investments
Assets
Available-for-sale securities	0	0
Recurring basis | Level 2
Assets
Cash and cash equivalents in mutual funds	0	0
Cash equivalents in certificates of deposit and commercial paper		165
Available-for-sale securities	590	592
Trading securities	12	2,321
Investment securities	602	2,913
Restricted cash in mutual funds	0	0
Assets at fair value	602	3,078
Recurring basis | Level 2 | Investment securities:
Assets
Available-for-sale securities	585	585
Recurring basis | Level 2 | U.S. government and government sponsored entities
Assets
Available-for-sale securities	82	64
Trading securities		302
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	89	102
Trading securities		14
Recurring basis | Level 2 | Certificates of deposit and commercial paper
Assets
Available-for-sale securities		1
Trading securities		238
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities
Assets
Trading securities		20
Recurring basis | Level 2 | Corporate debt
Assets
Available-for-sale securities	267	263
Trading securities	10	1,056
Recurring basis | Level 2 | RMBS
Assets
Available-for-sale securities	74	73
Trading securities		35
Recurring basis | Level 2 | CMBS
Assets
Available-for-sale securities	44	21
Trading securities	2	149
Recurring basis | Level 2 | CDO/ABS
Assets
Available-for-sale securities	29	61
Trading securities		507
Recurring basis | Level 2 | Preferred stocks
Assets
Available-for-sale securities	5	7
Recurring basis | Level 2 | Other long-term investments
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3
Assets
Cash and cash equivalents in mutual funds	0	0
Cash equivalents in certificates of deposit and commercial paper		0
Available-for-sale securities	1	8
Trading securities		0
Investment securities	1	8
Restricted cash in mutual funds	0	0
Assets at fair value	1	8
Recurring basis | Level 3 | Investment securities:
Assets
Available-for-sale securities	0	7
Recurring basis | Level 3 | U.S. government and government sponsored entities
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 3 | Certificates of deposit and commercial paper
Assets
Available-for-sale securities		0
Trading securities		0
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities
Assets
Trading securities		0
Recurring basis | Level 3 | Corporate debt
Assets
Available-for-sale securities	0	4
Trading securities	0	0
Recurring basis | Level 3 | RMBS
Assets
Available-for-sale securities	0	0
Trading securities		0
Recurring basis | Level 3 | CMBS
Assets
Available-for-sale securities	0	3
Trading securities	0	0
Recurring basis | Level 3 | CDO/ABS
Assets
Available-for-sale securities	0	0
Trading securities	0	0
Recurring basis | Level 3 | Preferred stocks
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | Other long-term investments
Assets
Available-for-sale securities	$ 1	$ 1

XML

Fair Value Measurements - Changes in Level 3 Assets (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	$ 8	$ 15
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Purchases, sales, issues, settlements		(9)
Transfers into Level 3		3
Transfers out of Level 3		(1)
Balance at end of period		8
Trading securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	0	7
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Purchases, sales, issues, settlements		(6)
Transfers into Level 3		1
Transfers out of Level 3		(2)
Balance at end of period		0
Investment securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	8	22
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Purchases, sales, issues, settlements	(4)	(15)
Transfers into Level 3	0	4
Transfers out of Level 3	(3)	(3)
Balance at end of period	1	8
Corporate debt | Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	4	13
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Purchases, sales, issues, settlements	(4)	(9)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at end of period	0	4
CMBS | Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	3	0
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Purchases, sales, issues, settlements	0	0
Transfers into Level 3	0	3
Transfers out of Level 3	(3)	0
Balance at end of period	0	3
CDO/ABS | Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	0	1
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Purchases, sales, issues, settlements		0
Transfers into Level 3		0
Transfers out of Level 3		(1)
Balance at end of period		0
CDO/ABS | Trading securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	0	7
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Purchases, sales, issues, settlements		(6)
Transfers into Level 3		0
Transfers out of Level 3		(1)
Balance at end of period		0
Bonds: | Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	7	14
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Purchases, sales, issues, settlements	(4)	(9)
Transfers into Level 3	0	3
Transfers out of Level 3	(3)	(1)
Balance at end of period	0	7
Other long-term investments | Available-for-sale securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	1	1
Net gains (losses) included in: Other revenues	0	0
Net gains (losses) included in: Other comprehensive income (loss)	0	0
Purchases, sales, issues, settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at end of period	1	1
RMBS | Trading securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance at beginning of period	$ 0	0
Net gains (losses) included in: Other revenues		0
Net gains (losses) included in: Other comprehensive income (loss)		0
Purchases, sales, issues, settlements		0
Transfers into Level 3		1
Transfers out of Level 3		(1)
Balance at end of period		$ 0

XML

Fair Value Measurements - Quantitative Information About Level 3 (Details 4) - Level 3 - Recurring - Discounted cash flows $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) bond	Dec. 31, 2014 USD ($) bond
Corporate debt
Unobservable Input
Yield (as a percent)	0.00%	1.05%
Number of bonds		1
RMBS
Unobservable Input
Spread (as a percent)	6.65%	7.36%
Number of bonds	1	1
Minimum disclosure amount of debt instrument, fair value disclosure. | $	$ 1	$ 1
CMBS
Unobservable Input
Number of bonds	1
Collateralized Mortgage Backed Securities
Unobservable Input
Spread (as a percent)	0.00%	1.39%
Number of bonds		1

XML

Fair Value Measurements - Fair Value Measured on Non-Recurring Basis (Details 5) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Assets measured at fair value on a non-recurring basis
Assets at fair value	$ 19	$ 232
Writedowns on assets resulting from restructuring	1	20
Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	11	19
Impairment Charges	3	15
Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	8	11
Impairment Charges	(2)	(2)
finance receivables Loans Held for Sale [Member]
Assets measured at fair value on a non-recurring basis
Assets at fair value		202
Writedowns on assets resulting from restructuring		7
Level 1
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 1 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 1 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 1 | finance receivables Loans Held for Sale [Member]
Assets measured at fair value on a non-recurring basis
Assets at fair value		0
Level 2
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 2 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 2 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 2 | finance receivables Loans Held for Sale [Member]
Assets measured at fair value on a non-recurring basis
Assets at fair value		0
Level 3
Assets measured at fair value on a non-recurring basis
Assets at fair value	19	232
Level 3 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	11	19
Level 3 | Commercial mortgage loans
Assets measured at fair value on a non-recurring basis
Assets at fair value	$ 8	11
Level 3 | finance receivables Loans Held for Sale [Member]
Assets measured at fair value on a non-recurring basis
Assets at fair value		$ 202

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Fair Value Measurements - Narrative (Details)	Dec. 31, 2015 USD ($)
Fair Value Measurements [Abstract]
Debt carried at fair value	$ 0

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Subsequent Events - Amendments to Conduit Facilities (Details) - Consolidated VIEs - Asset-backed Securities [Member] - USD ($)	1 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Jan. 30, 2018	Feb. 24, 2016	Jan. 21, 2016	Dec. 31, 2015	Dec. 10, 2015	Nov. 23, 2015	May 27, 2015	Sep. 27, 2013
Springleaf Funding Trust 2013 VFN1
Variable Interest Entity [Line Items]
Maximum principal balance that can be issued										$ 350,000,000
Outstanding balance						$ 0
Mill River 2015 VFN1
Variable Interest Entity [Line Items]
Maximum principal balance that can be issued									$ 400,000,000
Outstanding balance						$ 400,000,000	$ 200,000,000	$ 200,000,000
Subsequent Event [Member] | Springleaf Funding Trust 2013 VFN1
Variable Interest Entity [Line Items]
Maximum principal balance that can be issued					$ 850,000,000
Outstanding balance				$ 298,000,000
Subsequent Event [Member] | Mill River 2015 VFN1
Variable Interest Entity [Line Items]
Maximum principal balance that can be issued					$ 100,000,000
Outstanding balance				100,000,000
Subsequent Event [Member] | Midbrook Funding Trust 2013 VFN1
Variable Interest Entity [Line Items]
Outstanding balance				0
Subsequent Event [Member] | Whitford Brook Funding Trust2014 VFN1
Variable Interest Entity [Line Items]
Outstanding balance				$ 200,000,000
Scenario, Forecast | Subsequent Event [Member] | Springleaf Funding Trust 2013 VFN1
Variable Interest Entity [Line Items]
Principal amount, reduce to cash payments, due and payable			36 months
Scenario, Forecast | Subsequent Event [Member] | Midbrook Funding Trust 2013 VFN1
Variable Interest Entity [Line Items]
Principal amount, reduce to cash payments, due and payable		36 months
Scenario, Forecast | Subsequent Event [Member] | Whitford Brook Funding Trust2014 VFN1
Variable Interest Entity [Line Items]
Principal amount, reduce to cash payments, due and payable	12 months

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Subsequent Events - Call of 2013-B Notes (Details) - Consolidated VIEs - Asset-backed securities - Springleaf FundingTrust 2013 B - USD ($) $ in Millions	Feb. 16, 2016	Jun. 19, 2013
Subsequent events
Amount of notes sold under private securitization transaction		$ 256
Subsequent Event [Member]
Subsequent events
Debt instrument, redemption price	$ 371
Amount excluded from the redemption price	30
Amount of notes sold under private securitization transaction	$ 400

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Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 430	$ 422	$ 406	$ 399	$ 403	$ 431	$ 389	$ 402	$ 1,657	$ 1,625	$ 1,637
Interest expense	167	171	171	158	157	172	172	182	667	683	843
Provision for finance receivable losses	109	78	73	79	87	85	80	100	339	352	371
Total other revenues	81	49	59	54	(38)	602	90	91	243	745	161
Total other expenses	198	182	186	169	172	182	152	151	735	657	709
Income (loss) before provision for (benefit from) income taxes	37	40	35	47	(51)	594	75	60	159	678	(125)
Provision for (benefit from) income taxes	4	5	0	9	(17)	198	29	23	18	233	(49)
Net income (loss)	33	35	35	38	(34)	396	46	37	141	445	(76)
Net income attributable to non-controlling interests	29	32	33	33	22	26	0	0	127	48	0
Net income attributable to Springleaf Finance Corporation	$ 4	$ 3	$ 2	$ 5	$ (56)	$ 370	$ 46	$ 37	$ 14	$ 397	$ (76)