8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

Amendment No. 1

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 3, 2018 (June 22, 2018)

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, IN		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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.01 Completion of Acquisition or Disposition of Assets.

As previously reported, on June 22, 2018, Springleaf Finance, Inc. (“SFI”), a separate wholly owned direct subsidiary of OneMain Holdings, Inc. (“OMH”), entered into a Contribution Agreement with Springleaf Finance Corporation (“SFC” or the “Company”), a wholly owned direct subsidiary of SFI and a wholly owned indirect subsidiary of OMH, pursuant to which all of the common interests of Independence Holdings, LLC (“Independence”) were contributed to SFC on the same date (the “Contribution”). As a result of the Contribution and effective as of June 22, 2018, (i) Independence became a wholly owned direct subsidiary of SFC and (ii) Independence’s direct and indirect subsidiaries, including OneMain Financial Holdings, LLC (“OMFH”), became indirect subsidiaries of SFC. Independence, through its principal subsidiary OMFH, engages in the consumer finance and insurance businesses.

The Company’s consolidated financial statements have been retrospectively recast for all periods presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”) to include the historical results of Independence because the Contribution was between entities under common control. This Current Report on Form 8-K/A (this “Form 8-K/A”) amends the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (the “SEC”) on June 22, 2018 (the “Initial 8-K”) to include the recast financial statements and other affected financial information of the Company included in the 2017 Form 10-K, which have been updated to retrospectively reflect the Contribution and present SFC and Independence on a combined basis for all periods presented in the 2017 Form 10-K. In particular, Exhibit 99.1 to this Form 8-K/A includes the following items that were contained in the 2017 Form 10-K and have been updated as a result of the Contribution: Part II, Item 6: “Selected Financial Data,” Part II, Item 7: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Part II, Item 7A: “Quantitative and Qualitative Disclosures About Market Risk,” Part II, Item 8: “Financial Statements and Supplementary Data” (which includes the recast audited consolidated financial statements of the Company at December 31, 2017 and 2016 and for each of the three years in the period ended December 31, 2017), Part II, Item 9A: "Controls and Procedures" and Part IV, Item 15: “Exhibits and Financial Statement Schedule.” Exhibit 99.2 to this Form 8-K/A includes the audited financial statements of OMFH, the predecessor of Independence, for the period from January 1, 2015 through October 31, 2015. With respect to the Company’s historical financial information for the year ended December 31, 2015, the impact of the retrospective presentation is only since November 1, 2015, the date that Independence acquired OMFH.

All updates to the historical information included in the applicable items of the 2017 Form 10-K specified above and reflected in Exhibit 99.1 hereto relate solely to the retrospective presentation of the Contribution as noted above, and this Form 8-K/A does not update or modify any other disclosures in the 2017 Form 10-K. Except as noted above, this Form 8-K/A does not provide any update or discussion of any developments, activities, trends, or risks related to the Company subsequent to the filing of the 2017 Form 10-K. The information in this Form 8-K/A, including the exhibits hereto, should be read in conjunction with the Initial 8-K, the 2017 Form 10-K and subsequent Company filings with the SEC.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.

Exhibit Number	Description
2.1	Contribution Agreement, dated June 22, 2018, between Springleaf Finance Corporation and Springleaf Finance, Inc. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed on June 22, 2018.
12.1	Computation of Ratio of Earnings to Fixed Charges
23.1	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm
23.2	Consent of KPMG LLP, Independent Registered Public Accounting Firm
99.1	Updated Part II, Items 6 (Selected Financial Data), 7 (Management's Discussion and Analysis of Financial Condition and Results of Operations), 7A (Quantitative and Qualitative Disclosures About Market Risk) and 8 (Financial Statements and Supplementary Data), 9A (Controls and Procedures) and Updated Part IV, Item 15 (Exhibits and Financial Statement Schedule) from Springleaf Finance Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 21, 2018
99.2	Audited consolidated financial statements of OneMain Financial Holdings, LLC as of and for the ten months ended October 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 Shareholder’s Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements, and (vii) Financial Statement Schedule

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 3, 2018	By:	/s/ Micah R. Conrad
			Micah R. Conrad
			Executive Vice President and Chief Financial Officer

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,	2017		2016		2015			2014		2013
Earnings:
Income (loss) before income tax expense (benefit)	$	395	$	397	$	(196	)	$	678	$	(125	)
Interest expense	816		856		715			683		843
Implicit interest in rents	26		27		12			10		9
Total earnings	$	1,237	$	1,280	$	531		$	1,371	$	727
Fixed charges:
Interest expense	$	816	$	856	$	715		$	683	$	843
Implicit interest in rents	26		27		12			10		9
Total fixed charges	$	842	$	883	$	727		$	693	$	852
Ratio of earnings to fixed charges	1.47		1.45		*			1.98		*

* Earnings did not cover total fixed charges by $196 million in 2015 and by $125 million in 2013.

134

EX-23.1

Exhibit 23.1    

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-221391-01) of Springleaf Finance Corporation of our reportdated February 21, 2018, except with respect of the effects of the reorganization of entities under common control discussed in Note 2 to the consolidated financial statements and the financial statement schedule, as to which the date is August 3, 2018, relating to the consolidated financial statements and financial statement schedule, which appears in Springleaf Finance Corporation’s Current Report on Form 8‑K/A dated August 3, 2018.

/s/ PricewaterhouseCoopers LLP

Dallas, Texas

August 3, 2018

135

EX-23.2

Exhibit 23.2    

Consent of Independent Registered Public Accounting Firm

The Board of Directors

OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.):

We consent to the incorporation by reference in the registration statement (No. 333-221391-01) on Form S-3 of Springleaf Finance Corporation of our report dated February 10, 2016, with respect to the consolidated statement of financial position of OneMain Financial Holdings, LLC as of October 31, 2015 and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the 10-month period ended October 31, 2015, which report is included in the Form 8-K/A of Springleaf Finance Corporation dated August 3, 2018.

/s/ KPMG LLP

Baltimore, Maryland

August 3, 2018

136

EX-99.1

Exhibit 99.1    

EXPLANATORY NOTE

On June 22, 2018, Springleaf Finance, Inc. (“SFI”), a separate wholly owned direct subsidiary of OneMain Holdings, Inc. (“OMH”), entered into a Contribution Agreement with Springleaf Finance Corporation (“SFC,” the “Company,” “we,” “us,” or “our”), a wholly owned direct subsidiary of SFI and a wholly owned indirect subsidiary of OMH, pursuant to which all of the common interests of Independence Holdings, LLC (“Independence”) were contributed to SFC on the same date (the “Contribution”). As a result of the Contribution and effective as of June 22, 2018, (i) Independence became a wholly owned direct subsidiary of SFC and (ii) Independence’s direct and indirect subsidiaries, including OneMain Financial Holdings, LLC (“OMFH”), became indirect subsidiaries of SFC. Independence, through its principal subsidiary OMFH, engages in the consumer finance and insurance businesses.

The Company’s consolidated financial statements have been retrospectively recast for all periods presented to include the historical results of Independence because the Contribution was between entities under common control. Information in the Company’s previously filed Annual Report for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2018 (the “2017 Form 10-K”), has been updated as a result of the Contribution. Items 6, 7, 7A, 8, 9A and 15 of the 2017 Form 10-K include periods prior to the contribution of Independence and have been updated below to retrospectively reflect the Contribution and present SFC and Independence on a combined basis for all periods presented in the 2017 Form 10-K.  

All updates to the historical information included in the applicable items of the 2017 Form 10-K set forth below relate solely to the retrospective presentation of the Contribution as noted above, and this Exhibit 99.1 to the Company’s Current Report on Form 8-K/A dated August 3, 2018 does not update or modify any other disclosures in the 2017 Form 10-K. Except as noted above, this Exhibit 99.1 does not provide any update or discussion of any developments, activities, trends, or risks related to the Company subsequent to the filing of the 2017 Form 10-K. Information within the previously filed 2017 Form 10-K not affected by this Exhibit 99.1 reflects the disclosure made at the time of the filing of the 2017 Form 10-K. For additional information related to developments since the filing of the 2017 Form 10-K, refer to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018. Accordingly, this Exhibit 99.1 to the Company’s Current Report on Form 8-K/A dated August 3, 2018 should be read in conjunction with the previously filed 2017 Form 10-K and the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018, as filed with the SEC on August 3, 2018.

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TABLE OF CONTENTS

Forward-Looking Statements		7
PART II
Item 6.	Selected Financial Data	10
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 8.	Financial Statements and Supplementary Data
	Reports of Independent Registered Public Accounting Firm	39
	Consolidated Balance Sheets	40
	Consolidated Statements of Operations	41
	Consolidated Statements of Comprehensive Income (Loss)	42
	Consolidated Statements of Shareholder’s Equity	43
	Consolidated Statements of Cash Flows	44
	Notes to Consolidated Financial Statements	46
Item 9A.	Controls and Procedures	125
PART IV
Item 15.	Exhibits and Financial Statement Schedules	126

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GLOSSARY

Terms and abbreviations used in this Current Report on Form 8-K/A dated August 3, 2018 (and exhibits thereto) are defined below.

Term or Abbreviation	Definition
2013 Omnibus Incentive Plan	incentive plan under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants
2014-1 Notes	asset backed notes issued in April 2014 by OneMain Financial Issuance Trust 2014-1
2014-A Notes	asset-backed notes issued in March 2014 by the Springleaf Funding Trust 2014-A
2016 Annual Report on Form 10-K	Annual Report on Form 10-K for the fiscal year ended December 31, 2016
2019 OMFH Notes	$700 million aggregate principal amount of 6.75% Senior Notes due 2019
2022 SFC Notes	$500 million of 6.125% Senior Notes due 2022 issued by SFC on May 15, 2017 and guaranteed by OMH
30-89 Delinquency ratio	net finance receivables 30-89 days past due as a percentage of net finance receivables
401(k) Plan	Springleaf Financial Services 401(k) Plan
5.25% SFC Notes	$700 million of 5.25% Senior Notes due 2019 issued by SFC on December 3, 2014 and guaranteed by OMH
5.625% SFC Notes	$875 million of 5.625% Senior Notes due 2023 issued by SFC on December 8, 2017 and guaranteed by OMH
6.125% SFC Notes	collectively, the 2022 SFC Notes and the Additional SFC Notes
8.25% SFC Notes	$1.0 billion of 8.25% Senior Notes due 2020 issued by SFC on April 11, 2016 and guaranteed by OMH
ABO	accumulated benefit obligation
ABS	asset-backed securities
Accretable yield	the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows
Additional SFC Notes	$500 million of 6.125% Senior Notes due 2022 issued by SFC on May 30, 2017 and guaranteed by OMH
Adjusted pretax income (loss)	a non-GAAP financial measure; income (loss) before income tax expense (benefit) on a Segment Accounting Basis, excluding acquisition-related transaction and integration expenses, net gain (loss) on sales of personal and real estate loans, net gain on sale of SpringCastle interests, SpringCastle transaction costs, losses resulting from repurchases and repayments of debt, debt refinance costs, net loss on liquidation of our United Kingdom subsidiary, and income attributable to non-controlling interests
AHL	American Health and Life Insurance Company
Apollo	Apollo Global Management, LLC and its consolidated subsidiaries
Apollo-Värde Transaction	the proposed purchase by the Apollo-Värde Group of 54,937,500 shares of OMH common stock from the Initial Stockholder pursuant to the Share Purchase Agreement entered into among OMH, the Initial Stockholder and the Apollo-Värde Group on January 3, 2018
Apollo-Värde Group	an investor group led by funds managed by Apollo and Värde
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
August 2016 Real Estate Loan Sale	SFC and certain of its subsidiaries sold a portfolio of second lien mortgage loans for aggregate cash proceeds of $246 million on August 3, 2016
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 two) in the period
BP	basis point
Blackstone	collectively, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P.
CDO	collateralized debt obligations
CFPB	Consumer Financial Protection Bureau
CMBS	commercial mortgage-backed securities
CRA	Congressional Review Act

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Term or Abbreviation	Definition
December 2016 Real Estate Loan Sale	SFC and certain of its subsidiaries sold a portfolio of first and second lien mortgage loans for aggregate cash proceeds of $58 million on December 19, 2016
Dodd-Frank Act	the Dodd-Frank Wall Street Reform and Consumer Protection Act
DOJ	U.S. Department of Justice
ERISA	Employee Retirement Income Security Act of 1974
Exchange Act	Securities Exchange Act of 1934, as amended
Excess Retirement Income Plan	Springleaf Financial Services Excess Retirement Income Plan
FA Loans	purchased credit impaired finance receivables related to the Fortress Acquisition
FASB	Financial Accounting Standards Board
FHLB	Federal Home Loan Bank
FICO score	a credit score created by Fair Isaac Corporation
Fitch	Fitch, Inc.
Fixed charge ratio	earnings less 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
Fortress	Fortress Investment Group LLC
Fortress Acquisition	transaction by which FCFI Acquisition LLC, an affiliate of Fortress, acquired an 80% economic interest of the sole stockholder of SFC for a cash purchase price of $119 million, effective November 30, 2010
GAAP	generally accepted accounting principles in the United States of America
GAP	guaranteed asset protection
Gross charge-off ratio	annualized gross charge-offs as a percentage of average net receivables
Indenture	the SFC Base Indenture, together with all subsequent Supplemental Indentures
Independence	Independence Holdings, LLC
Indiana DOI	Indiana Department of Insurance
Initial Stockholder	Springleaf Financial Holdings, LLC
Investment Company Act	Investment Company Act of 1940
IRS	Internal Revenue Service
Junior Subordinated Debenture	$350 million aggregate principal amount of 60-year junior subordinated debt issued by SFC under an indenture dated January 22, 2007, by and between SFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH
Lendmark Sale	the sale of 127 Springleaf branches to Lendmark Financial Service, LLC, effective April 30, 2016
LIBOR	London Interbank Offered Rate
Logan Circle	Logan Circle Partners, L.P.
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 average real estate loans
Merit	Merit Life Insurance Co.
MetLife	MetLife, Inc.
Military Lending Act	governs certain consumer lending to active-duty service members and covered dependents and limits, among other things, the interest rate that may be charged
Moody’s	Moody’s Investors Service, Inc.
Nationstar	Nationstar Mortgage LLC, dba “Mr. Cooper”
Net charge-off ratio	annualized net charge-offs as a percentage of average net receivables
Net interest income	interest income less interest expense
NRZ	New Residential Investment Corp.
OCLI	OneMain Consumer Loan, Inc.
ODART	OneMain Direct Auto Receivables Trust
OGSC	OneMain General Services Corporation, successor to SGSC and SFMC
OM Loans	purchased credit impaired personal loans acquired in the OneMain Acquisition

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Term or Abbreviation	Definition
OMAS	OneMain Assurance Services, LLC
OMFH	OneMain Financial Holdings, LLC
OMFH Indenture	Indenture entered into on December 11, 2014, as amended or supplemented from time to time, by OMFH and certain of its subsidiaries in connection with the issuance of the OMFH Notes
OMFH Note	collectively, $700 million aggregate principal amount of 6.75% Senior Notes due 2019 and $800 million in aggregate principal amount of 7.25% Senior Notes due 2021
OMFH Second Supplemental Indenture	Second Supplemental Indenture dated as of November 8, 2016, to the OMFH Indenture
OMFIT	OneMain Financial Issuance Trust
OMH	OneMain Holdings, Inc.
OneMain	OMFH, collectively with its subsidiaries
OneMain Acquisition	Acquisition of OneMain from CitiFinancial Credit Company, effective November 1, 2015
OneMain Financial Funding VIII LSA	Loan and Security Agreement, dated February 2, 2017, among OneMain Financial Funding VIII, LLC, certain third party lenders and other third parties pursuant to which OneMain Financial Funding VIII, LLC may borrow up to $450 million
Other SFC Notes	collectively, approximately $5.2 billion aggregate principal amount of senior notes, on a senior unsecured basis, and the Junior Subordinated Debenture, on a junior subordinated basis, issued by SFC and guaranteed by OMH
PBO	projected benefit obligation
PRSUs	performance-based RSUs
PVFP	present value of future profits
Recovery ratio	annualized recoveries on net charge-offs as a percentage of average net receivables
Retail sales finance	collectively, retail sales contracts and revolving retail accounts
Retirement Plan	Springleaf Financial Services Retirement Plan
RMBS	residential mortgage-backed securities
RSAs	restricted stock awards
RSUs	restricted stock units
SCP Loans	purchased credit impaired loans acquired through the SpringCastle Joint Venture
SEC	U.S. Securities and Exchange Commission
Securities Act	Securities Act of 1933
Segment Accounting Basis	a basis used to report the operating results of our segments, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting
Settlement Agreement	a Settlement Agreement with the U.S. Department of Justice entered into by OMH and certain of its subsidiaries on November 13, 2015, in connection with the OneMain Acquisition
S&P	Standard & Poor’s Ratings Services
SFC	Springleaf Finance Corporation
SFC Base Indenture	Indenture dated as of December 3, 2014
SFC First Supplemental Indenture	First Supplemental Indenture dated as of December 3, 2014, to the SFC Base Indenture
SFC Fourth Supplemental Indenture	Fourth Supplemental Indenture dated as of December 8, 2017, to the SFC Base Indenture
SFC Guaranty Agreements	agreements entered into on December 30, 2013 by OMH whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes
SFC Second Supplemental Indenture	Second Supplemental Indenture dated as of April 11, 2016, to the SFC Base Indenture
SFC Third Supplemental Indenture	Third Supplemental Indenture dated as of May 15, 2017, to the SFC Base Indenture
SFC Trust Guaranty Agreement	agreement entered into on December 30, 2013 by OMH whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities in connection with the Junior Subordinated Debenture

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Term or Abbreviation	Definition
SFH	Springleaf Financial Holdings LLC, an entity owned primarily by a private equity fund managed by an affiliate of Fortress that sold 54,937,500 shares of OMH’s common stock to the Apollo-Värde Group in the Apollo-Värde Transaction
SFI	Springleaf Finance, Inc.
SFMC	Springleaf Finance Management Corporation
SGSC	Springleaf General Services Corporation
Share Purchase Agreement	Share Purchase Agreement entered into on January 3, 2018, among the Apollo-Värde Group, the Initial Stockholder and OMH to acquire from the Initial Stockholder 54,937,500 shares of OMH’s common stock that was issued and outstanding as of such date, representing the entire holdings of OMH’s stock beneficially owned by Fortress
SLFT	Springleaf Funding Trust
SoftBank	SoftBank Group Corporation
SpringCastle Interests Sale	the March 31, 2016 sale by SpringCastle Holdings, LLC and Springleaf Acquisition Corporation of the equity interest in the SpringCastle Joint Venture
SpringCastle Joint Venture	joint venture among SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC, and SpringCastle Acquisition LLC in which SpringCastle Holdings, LLC previously owned a 47% equity interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC and Springleaf Acquisition Corporation previously owned a 47% equity interest in SpringCastle Acquisition LLC
SpringCastle Portfolio	loans acquired through the SpringCastle Joint Venture
Tangible equity	total equity less accumulated other comprehensive income or loss
Tangible managed assets	total assets less goodwill and other intangible assets
Tax Act	Public Law 115-97 amending the Internal Revenue Code of 1986
TDR finance receivables	troubled debt restructured finance receivables
Texas DOI	Texas Department of Insurance
Triton	Triton Insurance Company
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
TILA	Truth-In-Lending-Act
UPB	unpaid principal balance
Värde	Värde Partners, Inc.
VOBA	value of business acquired
VFN	variable funding notes
VIEs	variable interest entities
Weighted average interest rate	annualized interest expense as a percentage of average debt
Wilmington	Wilmington Trust, National Association
Yield	annualized finance charges as a percentage of average net receivables
Yosemite	Yosemite Insurance Company

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Forward-Looking Statements    

This Current Report on Form 8-K/A dated August 3, 2018 (and exhibits thereto) 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 Current Report on Form 8-K/A dated August 3, 2018 (and exhibits thereto) 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. Important factors that could cause actual results, performance or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following:

• the inability to obtain, or delays in obtaining, cost savings and synergies from the OneMain Acquisition and risks and other uncertainties associated with the integration of the companies;

• any litigation, fines or penalties that could arise relating to the OneMain Acquisition or Apollo-Värde Transaction;

• the impact of the Apollo-Värde Transaction on our relationships with employees and third parties;

• various risks relating to continued compliance with the Settlement Agreement;

• changes in general economic conditions, including the interest rate environment in which we conduct business and the financial markets through which we can access capital and also invest cash flows from our Consumer and Insurance segment;

• levels of unemployment and personal bankruptcies;

• natural or accidental events such as earthquakes, hurricanes, tornadoes, fires, or floods affecting our customers, collateral, or branches or other operating facilities;

• war, acts of terrorism, riots, civil disruption, pandemics, disruptions in the operation of our information systems, cyber-attacks or other security breaches, or other events disrupting business or commerce;

• changes in the rate at which we can collect or potentially sell our finance receivables portfolio;

• the effectiveness of our credit risk scoring models in assessing the risk of customer unwillingness or lack of capacity to repay;

• changes in our ability to attract and retain employees or key executives to support our businesses;

• changes in the competitive environment in which we operate, including the demand for our products, customer responsiveness to our distribution channels, our ability to make technological improvements, and the strength and ability of our competitors to operate independently or to enter into business combinations that result in a more attractive range of customer products or provide greater financial resources;

• risks related to the acquisition or sale of assets or businesses or the formation, termination or operation of joint ventures or other strategic alliances or arrangements, including loan delinquencies or net charge-offs, integration or migration issues, increased costs of servicing, incomplete records, and retention of customers;

• risks associated with our insurance operations, including insurance claims that exceed our expectations or insurance losses that exceed our reserves;

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• the inability to successfully implement our growth strategy for our consumer lending business as well as various risks associated with successfully acquiring portfolios of consumer loans, pursuing acquisitions, and/or establishing joint ventures;

• declines in collateral values or increases in actual or projected delinquencies or net charge-offs;

• changes in federal, state or local laws, regulations, or regulatory policies and practices, including the Dodd-Frank Act (which, among other things, established the CFPB, which has broad authority to regulate and examine financial institutions, including us), that affect our ability to conduct business or the manner in which we conduct business, such as licensing requirements, pricing limitations or restrictions on the method of offering products, as well as changes that may result from increased regulatory scrutiny of the sub-prime lending industry, our use of third-party vendors and real estate loan servicing, or changes in corporate or individual income tax laws or regulations, including effects of the enactment of Public Law 115-97 amending the Internal Revenue Code of 1986;

• potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans, if it is determined that there was a non-curable breach of a representation or warranty made in connection with such transactions;

• the costs and effects of any actual or alleged violations of any federal, state or local laws, rules or regulations, including any litigation associated therewith, any impact to our business operations, reputation, financial position, results of operations or cash flows arising therefrom, any impact to our relationships with lenders, investors or other third parties attributable thereto, and the costs and effects of any breach of any representation, warranty or covenant under any of our contractual arrangements, including indentures or other financing arrangements or contracts, as a result of any such violation;

• the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority and any litigation associated therewith;

• our continued ability to access the capital markets or the sufficiency of our current sources of funds to satisfy our cash flow requirements;

• our ability to comply with our debt covenants;

• our ability to generate sufficient cash to service all of our indebtedness;

• any material impairment or write-down of the value of our assets;

• the effects of any downgrade of our debt ratings by credit rating agencies, which could have a negative impact on our cost of and/or access to capital;

• our substantial indebtedness, which could prevent us from meeting our obligations under our debt instruments and limit our ability to react to changes in the economy or our industry, or our ability to incur additional borrowings;

• the impacts of our securitizations and borrowings;

• our ability to maintain sufficient capital levels in our regulated and unregulated subsidiaries;

• changes in accounting standards or tax policies and practices and the application of such new standards, policies and practices;

• changes in accounting principles and policies or changes in accounting estimates;

• effects of the acquisition of Fortress by an affiliate of SoftBank Group Corp.;

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• effects, if any, of the contemplated acquisition by an investor group of shares of our common stock beneficially owned by Fortress and its affiliates;

• any failure or inability to achieve the SpringCastle Portfolio performance requirements set forth in the SpringCastle Interests Sale purchase agreement; and

• the effect of future sales of our remaining portfolio of real estate loans and the transfer of servicing of these loans, including the environmental liability and costs for damage caused by hazardous waste if a real estate loan goes into default.

We also direct readers to the other risks and uncertainties discussed in “Risk Factors” in Part I - Item 1A of the 2017 Form 10-K and in other documents filed with the SEC (including the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018).

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 the 2017 Form 10-K and subsequent Company filings with the SEC that could cause actual results to differ before making an investment decision to purchase our common stock. 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.

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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, 2017, 2016, and 2015 and the consolidated balance sheet data as of December 31, 2017 and 2016 have been derived from our audited consolidated financial statements included elsewhere herein. The statement of operations data for the years ended December 31, 2014 and 2013 and the consolidated balance sheet data as of December 31, 2015, 2014 and 2013 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” included in this report and our audited consolidated financial statements and related notes included in this report.

(dollars in millions)	At or for the Years Ended December 31,
	2017		2016		2015 (a)			2014			2013
Consolidated Statements of Operations Data:
Interest income	$	3,187	$	3,096	$	1,910		$	1,625		$	1,637
Interest expense	816		856		715			683			843
Provision for finance receivable losses	947		929		711			352			371
Other revenues	540		754		275			745			161
Other expenses	1,569		1,668		955			657			709
Income (loss) before income tax expense (benefit)	395		397		(196		)	678			(125		)
Net income (loss)	152		270		(74		)	445			(76		)
Net income attributable to non-controlling interests	—		28		127			48			—
Net income (loss) attributable to Springleaf Finance Corporation	152		242		(201		)	397			(76		)
Consolidated Balance Sheet Data:
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	$	13,627	$	12,414	$	14,217		$	6,181		$	10,730
Total assets	19,645		18,340		21,396			10,998			12,612
Long-term debt	15,050		13,959		17,300			8,356			10,602
Total liabilities	16,243		15,067		18,488			9,021			11,227
Springleaf Finance Corporation shareholder’s equity	3,402		3,273		2,987			2,106			1,385
Non-controlling interests	—		—		(79		)	(129		)	—
Total shareholder’s equity	3,402		3,273		2,908			1,977			1,385
Other Operating Data:
Ratio of earnings to fixed charges	1.47		1.45		(b)			1.98			(b)

(a) Selected financial data for 2015 includes OneMain’s results effective from November 1, 2015, pursuant to our contractual agreements with Citigroup.

(b) Earnings did not cover total fixed charges by $196 million in 2015 and by $125 million in 2013.

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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 included in this report. This discussion and analysis contains forward-looking statements that involve risk, uncertainties, and assumptions. See “Forward-Looking Statements” included in this report for more information. 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” included in the SFC Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

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

Topic	Page
Overview	11
Recent Developments and Outlook	13
Results of Operations	16
Segment Results	22
Credit Quality	26
Liquidity and Capital Resources	30
Off-Balance Sheet Arrangements	34
Critical Accounting Policies and Estimates	34
Recent Accounting Pronouncements	35
Seasonality	35

Overview    

We are a leading provider of responsible personal loan products, primarily to non-prime customers. Our network of over 1,600 branch offices in 44 states as of December 31, 2017, is staffed with highly trained personnel and is complemented by our online personal loan origination capabilities and centralized operations, which allows us to reach customers located outside our branch footprint. Our digital platform provides current and prospective customers the option of obtaining an unsecured personal loan via our website, www.onemainfinancial.com. (The information on our website is not incorporated by reference into this report.) In connection with our personal loan business, we offer our customers credit and non-credit insurance.

In addition, we service loans owned by third-parties; pursue strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets; and may establish joint ventures or enter into other strategic alliances or arrangements from time to time.

OUR PRODUCTS

Our 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 three to six years and are secured by consumer goods, automobiles, or other personal property or are unsecured. At December 31, 2017, we had nearly 2.3 million personal loans, representing $14.8 billion of net finance receivables compared to 2.2 million personal loans totaling $13.5 billion at December 31, 2016.

• 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 affiliated insurance companies, Merit, Yosemite, AHL and Triton. We also offer home and auto membership plans of an unaffiliated company.

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Our non-originating legacy products include:

• Real Estate Loans — In 2012, we ceased originating real estate loans and the portfolio is in a liquidating status. During 2016, we sold $308 million real estate loans held for sale. At December 31, 2017, we had $128 million of real estate loans held for investment, of which 91% were secured by first mortgages, compared to $144 million at December 31, 2016, of which 93% were secured by first mortgages. Real estate loans held for sale totaled $132 million and $153 million at December 31, 2017 and 2016, respectively.

• 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.

OUR SEGMENTS

At December 31, 2017, we had two operating segments:

• Consumer and Insurance; and

• Acquisitions and Servicing.

Beginning in 2017, we include Real Estate, which was previously presented as a distinct reporting segment, in “Other.” See Note 23 of the Notes to Consolidated Financial Statements included in this report for further information on this change in our segment alignment and for more information about our segments. To conform to the new alignment of our segments, we have revised our prior period segment disclosures.

HOW WE ASSESS OUR BUSINESS PERFORMANCE

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.

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. We closely analyze credit performance because the profitability of our loan portfolio is directly connected to net credit losses. We define net credit losses as gross charge-offs minus recoveries in the portfolio. 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. We also monitor recovery rates because of their contribution to the reduction in the severity of our charge-offs.

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.

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Recent Developments and Outlook    

APOLLO-VÄRDE TRANSACTION

On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with SFH and OMH to acquire from SFH 54,937,500 shares of OMH’s common stock representing the entire holdings of OMH’s stock beneficially owned by Fortress. The Apollo-Värde Transaction closed on June 25, 2018 for an aggregate purchase price of approximately $1.4 billion in cash.

As disclosed in Note 22 of the Notes to Consolidated Financial Statements, certain executives of the Company had previously been granted incentive units that only provide benefits (in the form of distributions) if SFH makes distributions to one or more of its common members that exceed specified amounts. In connection with the Apollo-Värde Transaction, certain executive officers who are holders of SFH incentive units received a distribution of approximately $106 million in the aggregate from SFH as a result of their ownership interests in SFH. Although the distribution was not made by the Company or its subsidiaries, in accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of approximately $106 million in the second quarter of 2018, with an equal and offsetting increase to additional paid-in-capital. The impact to the Company was non-cash, equity neutral and not tax deductible.

DIVIDEND OF SFMC

On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, and SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million, respectively, on the contribution date.

The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition.

SFC’s MEDIUM-TERM NOTE ISSUANCES

6.125% SFC Notes

On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture” ), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis.

On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price.

SFC used a portion of these net proceeds to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds for general corporate purposes.

5.625% SFC Notes

On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the ‘‘5.625% SFC Notes’’) under the SFC Base Indenture, as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis. SFC used a portion of these net proceeds to repay at maturity approximately $557 million aggregate principal amount of its existing 6.90% Medium-Term Notes. SFC intends to use the remaining net proceeds for general corporate purposes, which may include additional debt repurchases and repayments.

See Note 2 and 13 of the Notes to Consolidated Financial Statements included in this report for further information on the SFC Offerings.

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OMFH SECURITIZATION OFFERING

On December 11, 2017, OMFH, as sponsor, completed an offering of approximately $605 million of asset-backed notes in a private offering (the ‘‘December OMFH Securitization’’). The December OMFH Securitization included one class of senior asset-backed notes and four classes of subordinate asset-backed notes. The assets that were pledged consist of a pool of non-revolving, fixed-rate loans secured by automobiles, light-duty trucks and other vehicles. At least 5% of the initial note principal balance of each class of notes and the residual interest in the issuing entity were retained in satisfaction of the risk retention requirements of Section 941 of the Dodd-Frank Act.

See Note 13 of the Notes to Consolidated Financial Statements included in this report for further information on the December OMFH Securitization.

MATURITY OF SFC’S 6.90% MEDIUM-TERM NOTES

On December 15, 2017, the $557 million outstanding principal amount of SFC’s 6.90% Medium-Term Notes, Series J became due and payable.

See Note 13 of the Notes to Consolidated Financial Statements included in this report for further information on the maturity of SFC’s 6.90% medium-term notes.

REDEMPTION OF THE OMFH 2019 NOTES

On December 8, 2017, OMFH issued a notice of redemption to redeem all $700 million outstanding principal amount of its 6.75% Senior Notes due 2019 at a redemption price equal to 103.375%, plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018.

See Notes 12 and 24 of the Notes to Consolidated Financial Statements included in this report for further information on the Redemption of the OMFH Notes.

THE TAX ACT

On December 22, 2017, the President signed into law the Tax Act, which contains substantial changes to the Internal Revenue Code effective January 1, 2018, including a reduction in the federal corporate tax rate from 35% to 21%. In the long-term, we anticipate that we will have an overall benefit from the reduction in the tax rate slightly offset by potential deductions disallowed under the current law. However, we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. For further information see Note 18 of the Notes to Consolidated Financial Statements included in this report.

IMPACT OF HURRICANES HARVEY, IRMA AND MARIA

In August and September of 2017, our customers in certain areas of the United States and Puerto Rico were impacted by hurricanes Harvey, Irma and Maria. The estimated total hurricane-related impact recorded during 2017 was approximately $25 million, consisting primarily of increases in our loan loss reserve and borrower-related assistance programs. See additional discussion under “Results of Operations” and “Segment Results” below.

COST SYNERGIES

As of December 31, 2017, we had incurred approximately $239 million of acquisition-related transaction and integration expenses ($69 million incurred during 2017) from the OneMain Acquisition.

We achieved our estimated cost synergies from the OneMain Acquisition, including approximately $200 million in lower operating expenses, which were fully realized by the end of the fourth quarter of 2017. Furthermore, our transition services agreement with Citigroup terminated on May 1, 2017 in accordance with its terms, and we are no longer required to make any further payments under the agreement.

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OUTLOOK                

With our experienced management team, long track record of successfully accessing the capital markets, and strong demand for consumer credit, we believe we are well positioned to execute on our strategic priorities to strengthen our capital base through the following key initiatives:

• Continuing the growth in receivables through enhanced marketing strategies and customer product options;

• Growing secured lending originations with a goal of enhancing credit performance;

• Leveraging our scale and cost discipline across the Company to deliver improved operating leverage;

• Increasing tangible equity and reducing leverage; and

• Maintaining a strong liquidity level with diversified funding sources.

We continue to execute our strategy to increase the proportion of our loan originations secured by titled collateral (which typically have lower yields and credit losses relative to unsecured personal loans), particularly within the former OneMain branches where secured loan originations have historically represented a smaller proportion of total originations than those of the former Springleaf branches. As we continue to increase secured loans as a proportion of our total loan portfolio, our yields may be lower in future periods relative to our historical yields; however, we also expect a proportional improvement in net credit losses over time as our portfolio matures and as secured loans become a greater proportion of our total loan portfolio.

Assuming the U.S. economy continues to experience slow to moderate growth, we expect to continue our long history of strong credit performance and believe the strong credit quality of our loan portfolio will continue as the result of our disciplined underwriting practices and ongoing collection efforts. We have continued to see some migration of customer activity away from traditional channels, such as direct mail, to online channels (primarily serviced through our branch network), where we believe we are well suited to capture volume due to our scale, technology, and deployment of advanced analytics.

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Results of Operations    

CONSOLIDATED RESULTS            

On November 15, 2015, we completed the OneMain Acquisition. The results of OneMain are included in our consolidated operating results and selected financial statistics from November 1, 2015 in the table below. A further discussion of our operating results for each of our operating segments is provided under “Segment Results” below.

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Interest income	$	3,187		$	3,096		$	1,910
Interest expense	816			856			715
Provision for finance receivable losses	947			929			711
Net interest income after provision for finance receivable losses	1,424			1,311			484
Net gain on sale of SpringCastle interests	—			167			—
Other revenues	540			587			275
Acquisition-related transaction and integration expenses	69			108			62
Other expenses	1,500			1,560			893
Income (loss) before income tax expense (benefit)	395			397			(196		)
Income tax expense (benefit)	243			127			(122		)
Net income (loss)	152			270			(74		)
Net income attributable to non-controlling interests	—			28			127
Net income attributable to SFC	$	152		$	242		$	(201	)
Selected Financial Statistics (a)
Finance receivables held for investment:
Net finance receivables	$	14,909		$	13,686		$	15,469
Number of accounts	2,351,211			2,202,166			2,443,250
Finance receivables held for sale:
Net finance receivables	$	132		$	153		$	793
Number of accounts	2,460			2,800			148,932
Finance receivables held for investment and held for sale: (b)
Average net receivables	$	14,009		$	14,412		$	8,252
Yield	22.66		%	21.35		%	22.94		%
Gross charge-off ratio	7.47		%	6.04		%	4.34		%
Recovery ratio	(0.76		)%	(0.50		)%	(0.67		)%
Net charge-off ratio	6.71		%	5.54		%	3.67		%
30-89 Delinquency ratio	2.48		%	2.30		%	2.59		%
Origination volume	$	10,502		$	9,408		$	5,715
Number of accounts originated	1,436,871			1,313,388			971,662

(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

(b) Includes personal loans held for sale, but excludes real estate loans held for sale in order to be comparable with our segment statistics disclosed in “Segment Results.”

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Comparison of Consolidated Results for 2017 and 2016

Interest incomeincreased$91 million in 2017 when compared to 2016 due to the net of the following:

• Finance chargesincreased$152 million primarily due to the net of the following:

• Yield on finance receivables held for investmentincreased primarily due to lower amortization of purchase premium on non-credit impaired finance receivables. This increase was partially offset by the continued shift of the portfolio towards secured personal loans and direct auto customers who tend to have loans with lower yields and lower charge-offs relative to our unsecured personal loans.

• Average net receivables held for investmentdecreased primarily due to (i) the SpringCastle Interests Sale and (ii) our liquidating real estate loan portfolio, including transfers of $307 million of real estate loans to finance receivables held for sale during 2016. This decrease was partially offset by the continued growth in our personal loan portfolio.

• Interest income on finance receivables held for saledecreased$61 million primarily due to (i) personal loans sold in the Lendmark Sale in May 2016, and (ii) the real estate loans in finance receivables held for sale during 2016 period, which were sold in the fourth quarter of 2016.

Interest expensedecreased$40 million in 2017 when compared to 2016 due to the net of the following:

• Average debtdecreased primarily due to debt elimination associated with the SpringCastle Interests Sale and net debt issuance and repayment activity in 2017. This decrease was partially offset by net debt issuances during the past 12 months relating to SFC’s offerings of the 6.125% SFC Notes in May of 2017 and our securitization transactions. See Notes 13 and 14 of the Notes to Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions and our conduit facilities.

• Weighted average interest rate on our debtincreased primarily due to (i) SFC’s offering of the 8.25% SFC Notes in April of 2016, (ii) the debt elimination associated with the SpringCastle Interests Sale, and (iii) the pay down of securitizations, which had a lower interest rate relative to our other indebtedness. This increase was partially offset by the repurchase of $600 million of unsecured notes, which had a higher interest rate relative to our other indebtedness.

Provision for finance receivable lossesincreased$18 million in 2017 when compared to 2016 primarily due to (i) the growth in our personal loan portfolio during the past 12 months, (ii) continued alignment and enhancement of our collection practices which resulted in higher provision from an increase in the loans now classified as TDR, (iii) a greater proportion of charge-offs from our purchased credit impaired finance receivables in 2016, which were not recorded as charge-offs through the allowance for finance receivable losses and (iv) the estimated impacts of hurricanes Harvey, Irma and Maria. Based on information currently available, we estimate the impact to net charge-offs attributable to these hurricanes to be $17 million and have increased our provision for finance receivable losses accordingly. This increase was partially offset by $22 million reduction in the impairment in the purchased credit impaired loans due to the increase in expected cash flows in that portfolio.

Net gain on sale of SpringCastle interests of $167 million in 2016 reflected the net gain associated with the sale of our equity interests in the SpringCastle Joint Venture on March 31, 2016.

Other revenuesdecreased$47 million in 2017 when compared to 2016 primarily due to (i) a decrease in insurance revenues of $29 million during 2017 primarily due to lower volume of loans with insurance products sold and a decrease in revenues from runoff business, (ii) a decrease of $18 million in 2017 due to net gain on sales of personal and real estate loans in 2016, (iii) a decrease in investment revenue of $13 million primarily due to lower realized gains on securities sold in the 2017 period, and (iv) a decrease of $12 million driven by higher net loss on repurchases and repayments of debt in 2017. This decrease was partially offset by (i) a $13 million increase in fee revenues from home and auto membership plans sold in the 2017 period, (ii) a $9 million lower market adjustment on finance receivables held for sale in 2017 compared to 2016 and (iii) a $4 million increase in interest income on notes receivable from parent and affiliates in the 2017 period, as discussed in Note 12 of the Notes to Consolidated Financial Statements of this report.

Acquisition-related transaction and integration costs decreased $39 million in 2017 when compared to 2016 primarily due to (i) $32 million of lower compensation costs associated with severance and stock compensation costs in 2017, (ii) a $13 million claim reserve adjustment for pre-acquisition non-credit insurance policies, and (iii) $9 million of lower system conversions and

17

project management servicing fees. These decreases were partially offset by $17 million in expenses associated with branch and administrative office consolidations. See “Non-GAAP Financial Measures” below for further information regarding these costs.

Other expensesdecreased$60 million in 2017 when compared to 2016 due to the following:

• Other operating expensesdecreased$83 million primarily due to (i) a decrease in Citigroup transition expenses of $55 million, (ii) lower professional and audit expenses of $33 million during the 2017 period, (iii) an increase in the deferral of origination costs of $22 million due to the increase in the number of loans originated in the 2017 period compared to prior year, and (iv) a decrease in amortization of other intangible assets of $18 million during the 2017 period. This decrease was partially offset by an increase in OCLI loan referral fees of $39 million due to increased levels of loan volume through online sources. See Note 12 of the Notes to Consolidated Financial Statements included in this report for further information on loan referral fees.

• Insurance policy benefits and claimsincreased$17 million primarily due to the prior year favorable variances of $12 million in credit claim and benefit reserves and a $5 million increase in reserve for non-credit insurance products due to higher growth in sales.

• Salaries and benefitsincreased by $6 million.

Income taxes totaled $243 million for 2017 compared to $127 million for 2016. The increase is primarily due to recognition of the impact of the Tax Act. The effective tax rate for 2017 was 61.5% compared to 31.9% for 2016. The effective tax rate for 2017 differed from the federal statutory rate primarily due to the recognition of the impact of the Tax Act and the effects of state income taxes. As a result of the Tax Act we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. The effective tax rate for 2016 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in the previously owned SpringCastle Portfolio and the effects of state income taxes. See Note 19 of the Notes to Consolidated Financial Statements included in this report for further information on the effective tax rates.

Comparison of Consolidated Results for 2016 and 2015

Interest income increased $1.2 billion in 2016 when compared to 2015 due to the net of the following:

• Finance chargesincreased $1.2 billion primarily due to the net of the following:

• Average net receivables held for investment increased primarily due to (i) loans acquired in the OneMain Acquisition and (ii) the continued growth of our loan portfolio (primarily of our secured personal loans). This increase was partially offset by (i) the SpringCastle Interests Sale, (ii) the transfer of $608 million of our personal loans to finance receivables held for sale on September 30, 2015, and (iii) our liquidating real estate loan portfolio, including the transfers of $257 million and $50 million of real estate loans to finance receivables held for sale on June 30, 2016 and November 30, 2016, respectively.

• Yield on finance receivables held for investment decreased primarily due to (i) the continued growth of secured personal loans, which generally have lower yields relative to our unsecured personal loans, and (ii) the effects of purchase accounting adjustments relating to the OneMain Acquisition.

• Interest income on finance receivables held for sale increased $14 million primarily due to (i) the transfer of $608 million of our personal loans to held for sale on September 30, 2015, which were sold in the Lendmark Sale on May 2, 2016, and (ii) the transfers of $307 million of real estate loans to finance receivables held for sale during 2016, which were sold in the August 2016 Real Estate Loan Sale and December 2016 Real Estate Loan Sale.

Interest expense increased $141 million in 2016 when compared to 2015 due to the net of the following:

• Average debt increased primarily due to (i) debt acquired in the OneMain Acquisition and (ii) net unsecured debt issued during the 2016 period. This increase was partially offset by (i) the elimination of the debt associated with the SpringCastle Interests Sale and (ii) net repayments under our conduit facilities. See Notes 13 and 14 of the Notes to Consolidated Financial Statements included in this report for further information on our long-term debt, consumer loan securitization transactions, and our conduit facilities.

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• Weighted average interest rate on our debt decreased primarily due to (i) debt acquired from the OneMain Acquisition, which generally has a lower weighted average interest rate relative to SFC's weighted average interest rate, and (ii) the repurchase of $600 million unsecured notes, which had a higher interest rate relative to our other indebtedness, in connection with SFC’s offering of the 8.25% SFC Notes, as defined in “Liquidity and Capital Resources” included in this report. The decrease was partially offset by (i) SFC’s offering of the 8.25% SFC Notes in April of 2016 and (ii) the elimination of debt associated with the SpringCastle Interests Sale, which generally had a lower interest rate relative to our other indebtedness.

Provision for finance receivable losses increased $218 million in 2016 when compared to 2015 primarily due to (i) provision for finance receivable losses of $229 million resulting from the OneMain Acquisition, which reflected net charge-offs of $477 million, partially offset by the re-establishment of the allowance for finance receivable losses of $248 million in 2015 and (ii) higher net charge-offs on Springleaf personal loans reflecting growth during the past 12 months. This increase was partially offset by (i) lower net charge-offs on the previously owned SpringCastle Portfolio reflecting the SpringCastle Interests Sale and the improved central servicing performance as the acquired portfolio matured under our ownership and (ii) the continued refinement of our estimates of allowance for finance receivable losses and their related assumptions based on ongoing integration and alignment of collection and charge-off practices.

Net gain on sale of SpringCastle interests of $167 million in 2016 reflected the net gain associated with the sale of our equity interest in the SpringCastle Joint Venture on March 31, 2016. See Note 2 of the Notes to Consolidated Financial Statements included in this report for further information on this sale.

Other revenues increased $312 million in 2016 when compared to 2015 primarily due to (i) other revenues of $319 million resulting from the OneMain Acquisition, which consisted of insurance revenues of $236 million, investment revenues of $54 million, and remaining other revenues of $29 million, including $25 million of revenues from our ancillary products, (ii) net gain on sales of personal and real estate loans of $18 million in 2016, (iii) servicing charge income for the receivables related to the Lendmark Sale of $6 million in 2016, (iv) foreign currency translation adjustment gain of $4 million in 2016 resulting from the liquidation of our United Kingdom subsidiary, and (v) a $3 million increase in interest income on notes receivable from parent and affiliates in the 2016 period, as discussed in Note 12 of the Notes to Consolidated Financial Statements of this report. This increase was partially offset by (i) a decrease in Springleaf investment revenues of $20 million during 2016 primarily due to a decrease in invested assets and lower realized gains on the sale of investment securities and (ii) net loss on repurchases and repayments of debt of $17 million in 2016.

Acquisition-related transaction and integration costs of $108 million and $62 million in 2016 and 2015, respectively, reflected increased costs relating to the OneMain Acquisition and the Lendmark Sale, including branch and system conversions, information technology costs, certain compensation and benefit related costs, and other costs and fees that would not have been incurred in the ordinary course of business. See “Non-GAAP Financial Measures” below for further information regarding these costs.

Other expenses increased $667 million in 2016 when compared to 2015 due to the following:

• Other operating expenses increased $299 million primarily due to (i) an increase in other operating expense of $306 million resulting from the OneMain Acquisition, which consisted primarily of advertising expenses of $74 million, occupancy costs of $66 million, amortization on other intangible assets of $57 million, and information technology expenses of $53 million, (ii) a decrease in Springleaf deferred origination costs of $12 million during 2016, (iii) an increase in Springleaf information technology expenses of $9 million during 2016, (iv) an increase in professional fees of $8 million during 2016 primarily reflecting debt refinance costs, and (v) an increase of $5 million in OCLI loan referral fees due to increased levels of loan volume through online sources. See Note 12 of the Notes to Consolidated Financial Statements included in this report for further information on loan referral fees. These increases were offset by lower expense in 2016 due to nine additional months of servicing expenses for the SpringCastle Portfolio totaling $38 million during 2015.

• Salaries and benefits increased $297 million primarily due to salaries and benefits of $317 million resulting from the OneMain Acquisition. This increase was partially offset by (i) non-cash incentive compensation expense of $15 million recorded in 2015 relating to the rights of certain executives to receive a portion of the cash proceeds from the sale of OMH’s common stock by the Initial Stockholder and (ii) a decrease in Springleaf average staffing during 2016.

• Insurance policy benefits and claims increased $71 million due to insurance policy benefits and claims of $88 million resulting from the OneMain Acquisition. This increase was partially offset by a $17 million decrease in Springleaf

19

insurance policy benefits and claims during 2016 primarily due to favorable variances in benefit reserves, which partially resulted from a $9 million write-down of benefit reserves recorded during 2016.

Income taxes totaled $127 million for 2016 compared to benefit from income taxes of $122 million for 2015. The effective tax rate for 2016 was 31.9% compared to 62.5% for 2015. The effective tax rate for 2016 and 2015 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in the previously owned SpringCastle Portfolio, partially offset by the effect of state income taxes. On March 31, 2016, the Company sold its equity interest in the SpringCastle Portfolio. See Note 19 of the Notes to Consolidated Financial Statements included in this report for further information on the effective rates.

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NON-GAAP FINANCIAL MEASURES

Adjusted Pretax Income (Loss)

Management uses adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segments. Adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes acquisition-related transaction and integration expenses, net gain (loss) on sales of personal and real estate loans, net gain on sale of SpringCastle interests, SpringCastle transaction costs, losses resulting from repurchases and repayments of debt, debt refinance costs, net loss on liquidation of our United Kingdom subsidiary, and income attributable to non-controlling interests. Management believes adjusted pretax income (loss) is useful in assessing the profitability of our segments and uses adjusted pretax income (loss) in evaluating our operating performance and as a performance goal under the company’s executive compensation programs. Adjusted pretax income (loss) is a non-GAAP financial measure and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.

The reconciliations of income (loss) before income taxes attributable to SFC on a Segment Accounting Basis to adjusted pretax income (loss) attributable to SFC (non-GAAP) by segment were as follows:

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Consumer and Insurance
Income before income taxes - Segment Accounting Basis	$	601		$	716		$	372
Adjustments:
Acquisition-related transaction and integration expenses	66			100			16
Net gain on sale of personal loans	—			(22		)	—
Net loss on repurchases and repayments of debt	18			14			—
Debt refinance costs	—			4			$	—
Adjusted pretax income (non-GAAP)	$	685		$	812		$	388
Acquisitions and Servicing
Income (loss) before income taxes - Segment Accounting Basis	$	(2	)	$	218		$	243
Adjustments:
Net gain on sale of SpringCastle interests	—			(167		)	—
Acquisition-related transaction and integration expenses	—			1			1
SpringCastle transaction costs	—			1			—
Income attributable to non-controlling interests	—			(28		)	(127		)
Adjusted pretax income (loss) (non-GAAP)	$	(2	)	$	25		$	117
Other
Income (loss) before income taxes - Segment Accounting Basis	$	1		$	(70	)	$	(270	)
Adjustments:
Acquisition-related transaction and integration expenses	6			27			48
Net loss on sale of real estate loans	—			12			—
Net loss on liquidation of United Kingdom subsidiary	—			6			—
Net loss on repurchases and repayments of debt	—			1			—
Debt refinance costs	—			1			—
Adjusted pretax income (loss) (non-GAAP)	$	7		$	(23	)	$	(222	)

Acquisition-related transaction and integration expenses incurred as a result of the OneMain Acquisition and the Lendmark Sale include (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration.

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Segment Results     

See Note 23 of the Notes to Consolidated Financial Statements included in this report for (i) a description of our segments, (ii) reconciliations of segment totals to consolidated financial statement amounts, (iii) methodologies used to allocate revenues and expenses to each segment, and (iv) further discussion of the differences in our Segment Accounting Basis and GAAP.

CONSUMER AND INSURANCE            

Adjusted pretax income and selected financial statistics for Consumer and Insurance (which are reported on an adjusted Segment Accounting Basis) were as follows:

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Interest income	$	3,296		$	3,314		$	1,470
Interest expense	765			738			242
Provision for finance receivable losses	955			908			346
Net interest income after provision for finance receivable losses	1,576			1,668			882
Other revenues	567			601			274
Other expenses	1,458			1,457			768
Adjusted pretax income (non-GAAP)	$	685		$	812		$	388
Selected Financial Statistics (a)
Finance receivables held for investment:
Net finance receivables	$	14,772		$	13,409		$	12,864
Number of accounts	2,346,289			2,191,348			2,179,484
Finance receivables held for sale:
Net finance receivables	$	—		$	—		$	617
Number of accounts	—			—			145,736
Finance receivables held for investment and held for sale: (b)
Average net receivables	$	13,811		$	13,393		$	5,681
Yield	23.86		%	24.75		%	25.87		%
Gross charge-off ratio (c)	7.92		%	7.82		%	7.46		%
Recovery ratio	(0.93		)%	(0.76		)%	(0.80		)%
Net charge-off ratio (c)	6.99		%	7.06		%	6.66		%
30-89 Delinquency ratio	2.43		%	2.25		%	2.29		%
Origination volume	$	10,502		$	9,388		$	5,627
Number of accounts originated	1,436,871			1,313,388			971,662

(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

(b) Includes personal loans held for sale for the 2016 and 2015 periods in connection with the Lendmark Sale.

(c) The gross charge-off ratio and net charge-off ratio in 2015 reflect $62 million of additional charge-offs recorded in December of 2015 (on a Segment Accounting Basis) related to alignment in charge-off policy for personal loans in connection with the OneMain integration. Excluding these additional charge-offs, our gross charge-off ratio and net charge-off ratio would have been 6.37% and 5.57%, respectively.

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Comparison of Adjusted Pretax Income for 2017 and 2016

Interest incomedecreased$18 million in 2017 when compared to 2016 due to the net of the following:

• Interest income on finance receivables held for saledecreased$56 million in 2017 due to the transfer of our personal loans to finance receivables held for sale in the 2015 period that were sold in the Lendmark Sale in May of 2016.

• Finance chargesincreased$38 million primarily due to the net of the following:

• Average net receivables held for investment increased primarily due to the continued growth in our personal loan portfolio.

• Yield on finance receivables held for investment decreased primarily due to the continued shift of the portfolio towards secured personal loans and direct auto customers who tend to have loans with lower yields and lower charge offs relative to our unsecured personal loans.

Interest expenseincreased$27 million in 2017 when compared to 2016 primarily due to an increase in the utilization of financing from unsecured notes which generally have higher interest rates relative to our other indebtedness.

Provision for finance receivable lossesincreased$47 million in 2017 when compared to 2016 primarily due to (i) the growth in our personal loan portfolio during the past 12 months, (ii) continued alignment and enhancement of our collection practices which resulted in an increase in the loans now classified as TDR and (iii) the estimated impacts of hurricanes Harvey and Irma. Based on information currently available, we estimate the impact to net charge-offs attributable to these hurricanes to be $12 million and have increased our provision for finance receivable losses accordingly.

Other revenuesdecreased $34 million in 2017 when compared to 2016 primarily due to (i) a decrease in insurance revenues of $28 million during 2017 primarily due to lower volume of loans with insurance products sold and a decrease in revenue from runoff business and (ii) a decrease in investment revenue of $21 million primarily due to lower realized gains on securities sold and reinvestments into lower yielding assets. This decrease was offset by an increase in fee revenues of $10 million from home and auto membership plans sold in 2017.

Comparison of Adjusted Pretax Income for 2016 and 2015

Interest income increased$1.8 billion in 2016 when compared to 2015 due to the following:

• Finance chargesincreased$1.8 billion primarily due to the net of the following:

• Average net receivables increased primarily due to (i) loans acquired in the OneMain Acquisition and (ii) the continued growth of our loan portfolio (primarily of our secured personal loans). This increase was partially offset by the transfer of $608 million of our personal loans to finance receivables held for sale on September 30, 2015.

• Yield decreased primarily due to the continued growth of secured personal loans, which generally have lower yields relative to our unsecured personal loans.

• Interest income on finance receivables held for sale increased $13 million primarily due to the transfer of personal loans to finance receivables held for sale on September 30, 2015 and sold in the Lendmark Sale on May 2, 2016.

Interest expense increased$496 million in 2016 when compared to 2015 primarily due to (i) interest expense of $284 million resulting from the OneMain Acquisition and (ii) a change in the methodology of allocating interest expense. See Note 23 of the Notes to Consolidated Financial Statements included in this report for the allocation methodologies.

Provision for finance receivable lossesincreased$562 million in 2016 when compared to 2015 primarily due to (i) provision for finance receivable losses of $512 million resulting from the OneMain Acquisition and (ii) higher net charge-offs on Springleaf personal loans reflecting growth during 2016. This increase was partially offset by the continued refinement of our estimates of allowance for finance receivable losses and their related assumptions based on ongoing integration and alignment of collection and charge-off practices.

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Other revenuesincreased$327 million in 2016 when compared to 2015 primarily due to other revenues of $336 million resulting from the OneMain Acquisition, which consisted of insurance revenues of $236 million, investment revenues of $71 million, and remaining other revenues of $29 million, partially offset by a decrease in Springleaf investment revenues of $12 million during 2016 resulting from a decrease in invested assets and lower realized gains on the sale of investment securities.

Other expenses increased$689 million in 2016 when compared to 2015 due to the following:

• Salaries and benefitsincreased $314 million primarily due to (i) salaries and benefits of $316 million resulting from the OneMain Acquisition and (ii) an increase in Springleaf average staffing during 2016 prior to the Lendmark Sale.

• Other operating expensesincreased$305 million primarily due to (i) other operating expenses of $266 million resulting from the OneMain Acquisition, which consisted primarily of advertising expenses of $74 million, occupancy costs of $66 million, and information technology expenses of $49 million, (ii) an increase in Springleaf credit and collection related costs of $13 million during 2016 reflecting growth in our loan portfolio, (iii) a decrease in Springleaf deferred origination costs of $12 million during 2016, (iv) an increase in Springleaf information technology expenses of $10 million during 2016, (v) an increase in Springleaf advertising expenses of $6 million during 2016, and (vi) an increase of $5 million in OCLI loan referral fees due to increased levels of loan volume through online sources. See Note 12 of the Notes to Consolidated Financial Statements included in this report for further information on loan referral fees.

• Insurance policy benefits and claimsincreased$70 million primarily due to insurance policy benefits and claims of $87 million resulting from the OneMain Acquisition. This increase was partially offset by a $17 million decrease in Springleaf insurance policy benefits and claims during 2016 primarily due to favorable variances in benefit reserves, which partially resulted from a $9 million write-down of benefit reserves recorded during 2016.

ACQUISITIONS AND SERVICING

Adjusted pretax income (loss) attributable to SFC and selected financial statistics for Acquisitions and Servicing (which are reported on an adjusted Segment Accounting Basis) were as follows:

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Interest income	$	—		$	102		$	455
Interest expense	—			20			87
Provision for finance receivable losses	—			14			68
Net interest income after provision for finance receivable losses	—			68			300
Other revenues	—			—			5
Other expenses	2			15			61
Adjusted pretax income (loss) (non-GAAP)	(2		)	53			244
Pretax income attributable to non-controlling interests	—			28			127
Adjusted pretax income (loss) attributable to SFC (non-GAAP)	$	(2	)	$	25		$	117
Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables	$	—		$	—		$	1,703
Number of accounts	—			—			232,383
Average net receivables	$	—		$	414		$	1,887
Yield	—		%	24.19		%	24.14		%
Net charge-off ratio	—		%	3.48		%	3.49		%
30-89 Delinquency ratio	—		%	—		%	4.40		%

* See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

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On March 31, 2016, we sold our equity interest in the SpringCastle Joint Venture, the primary component of our Acquisitions

and Servicing segment.

OTHER

“Other” consist of our non-originating legacy operations, which include (i) our liquidating real estate loan portfolio as discussed below and (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation).

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

Adjusted pretax income (loss) of the Other components (which are reported on an adjusted Segment Accounting Basis) were as follows:

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Interest income	$	23		$	51		$	76
Interest expense (a)	21			43			268
Provision for finance receivable losses (b)	7			6			(1		)
Net interest income (loss) after provision for finance receivable losses	(5		)	2			(191		)
Other revenues (c)	23			3			19
Other expenses (d)	11			28			50
Adjusted pretax income (loss) (non-GAAP)	$	7		$	(23	)	$	(222	)

(a) Interest expense for 2016 when compared to 2015 reflected a change in the methodology of allocating interest expense. See Note 23 of the Notes to Consolidated Financial Statements included in this report for the allocation methodologies table.

(b) Provision for finance receivable losses for 2017 includes a $5 million increase due to estimated net charge-offs attributable to the impact of hurricanes Harvey and Maria.

(c) Other revenues reported in “Other” primarily includes interest income on SFC’s note receivable from SFI. See Note 12 of the Notes to Consolidated Financial Statements included in this report for further information on the notes receivable from parent and affiliates.

(d) Other expenses for 2015 reflected non-cash incentive compensation relating to the rights of certain executives to receive a portion of the cash proceeds received by the Initial Stockholder.

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

(dollars in millions)
December 31,	2017		2016		2015
Net finance receivables:
Personal loans	$	—	$	11	$	17
Real estate loans	136		153		565
Retail sales finance	6		12		24
Total	$	142	$	176	$	606

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Credit Quality    

FINANCE RECEIVABLE COMPOSITION

The following table presents the composition of our finance receivables held for investment for each of the Company’s segments on a Segment Accounting Basis, as well as reconciliations to our total net finance receivables on a GAAP basis:

(dollars in millions)	Consumer and Insurance		Other		Segment to GAAP Adjustment			Consolidated Total
December 31, 2017
Personal loans	$	14,772	$	—	$	3		$	14,775
Real estate loans	—		136		(8		)	128
Retail sales finance	—		6		—			6
Total	$	14,772	$	142	$	(5	)	$	14,909
December 31, 2016
Personal loans	$	13,409	$	11	$	111		$	13,531
Real estate loans	—		153		(9		)	144
Retail sales finance	—		12		(1		)	11
Total	$	13,409	$	176	$	101		$	13,686

The largest component of our finance receivables and primary source of our interest income is our personal loan portfolio. Our personal loans are typically non-revolving with a fixed-rate and a fixed, original term of three to six years and are secured by consumer goods, automobiles, or other personal property or are unsecured. At December 31, 2017, 43% of our personal loans were secured by titled collateral, compared to 36% at December 31, 2016.

Distribution of Finance Receivables by FICO Score

There are many different categorizations used in the consumer lending industry to describe the creditworthiness of a borrower, including prime, non-prime, and sub-prime. We track and analyze the performance of our finance receivable portfolio using many different parameters, including FICO scores, which is widely recognized in the consumer lending industry.

We group FICO scores into the following credit strength categories:

•     Prime: FICO score of 660 or higher

•     Non-prime: FICO score of 620-659

•      Sub-prime: FICO score of 619 or below

Our customers are described as prime at one end of the credit spectrum and sub-prime at the other. Our customers’ demographics are in many respects near the national median, but may vary from national norms in terms of credit and repayment histories. Many of our customers have experienced some level of prior financial difficulty or have limited credit experience and require higher levels of servicing and support from our branch network.

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Our net finance receivables grouped into the following categories based solely on borrower FICO credit scores at the purchase, origination, renewal, or most recently refreshed date were as follows:

(dollars in millions)	Personal Loans		Real Estate Loans		Retail Sales Finance		Total
December 31, 2017 *
FICO scores
660 or higher	$	3,937	$	42	$	3	$	3,982
620-659	3,903		21		1		3,925
619 or below	6,935		65		2		7,002
Total	$	14,775	$	128	$	6	$	14,909
December 31, 2016
FICO scores
660 or higher	$	3,413	$	41	$	5	$	3,459
620-659	3,369		23		2		3,394
619 or below	6,726		77		4		6,807
Unavailable	23		3		—		26
Total	$	13,531	$	144	$	11	$	13,686

* The shift in FICO distribution includes the alignment in FICO versions across OMH. Effective March 31, 2017, the legacy Springleaf FICO scores were refreshed to FICO 08 version, which is comparable with the legacy OneMain FICO version.

DELINQUENCY

We consider the delinquency status of our finance receivables as the primary indicator of credit quality. We monitor delinquency trends to evaluate the risk of future credit losses and employ advanced analytical tools to manage our exposure and appetite. Our branch team members work with customers through occasional periods of financial difficulty and offer a variety of borrower assistance programs to help customers continue to make payments. Team members also actively engage in collection activities throughout the early stages of delinquency. We closely track and report the percentage of receivables that are contractually 30-89 days past due as a benchmark of portfolio quality, collections effectiveness, and as a strong indicator of losses in coming quarters.

When finance receivables are contractually 60 days past due, we consider them delinquent and transfer collections management of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. Use of our centralized operations teams for managing late stage delinquency allows us to apply more advanced collections technologies/tools and drives operating efficiencies in servicing. At 90 days past due, we consider our finance receivables to be nonperforming.

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The following table presents (i) delinquency information of the Company’s segments on a Segment Accounting Basis, (ii) reconciliations to our total net finance receivables on a GAAP basis, by number of days delinquent, and (iii) delinquency ratios as a percentage of net finance receivables:

(dollars in millions)	Consumer and Insurance			Other			Segment to GAAP Adjustment			Consolidated Total
December 31, 2017
Current	$	14,076		$	109		$	—		$	14,185
30-59 days past due	203			9			(2		)	210
Delinquent (60-89 days past due)	156			4			(1		)	159
Performing	14,435			122			(3		)	14,554
Nonperforming (90+ days past due)	337			20			(2		)	355
Total net finance receivables	$	14,772		$	142		$	(5	)	$	14,909
Delinquency ratio
30-89 days past due	2.43		%	8.60		%	*			2.48		%
30+ days past due	4.71		%	22.75		%	*			4.86		%
60+ days past due	3.34		%	16.66		%	*			3.45		%
90+ days past due	2.28		%	14.15		%	*			2.38		%
December 31, 2016
Current	$	12,757		$	131		$	103		$	12,991
30-59 days past due	173			10			(1		)	182
Delinquent (60-89 days past due)	129			4			—			133
Performing	13,059			145			102			13,306
Nonperforming (90+ days past due)	350			31			(1		)	380
Total net finance receivables	$	13,409		$	176		$	101		$	13,686
Delinquency ratio
30-89 days past due	2.25		%	8.32		%	*			2.30		%
30+ days past due	4.87		%	25.88		%	*			5.08		%
60+ days past due	3.58		%	20.16		%	*			3.76		%
90+ days past due	2.61		%	17.56		%	*			2.78		%

* Not applicable.

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ALLOWANCE FOR FINANCE RECEIVABLE LOSSES

We record an allowance for finance receivable losses to cover estimated incurred losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon our continual review of the credit quality of the finance receivable portfolios and changes in economic conditions.

Changes in the allowance for finance receivable losses for each of the Company’s segments on a Segment Accounting Basis, as well as reconciliations to our total allowance for finance receivable losses on a GAAP basis, were as follows:

(dollars in millions)	Consumer and Insurance			Acquisitions and Servicing			Other			Segment to GAAP Adjustment			Consolidated Total
Year Ended December 31, 2017
Balance at beginning of period	$	729		$	—		$	31		$	(74	)	$	686
Provision for finance receivable losses	955			—			7			(15		)	947
Charge-offs	(1,093		)	—			(7		)	53			(1,047		)
Recoveries	128			—			4			(26		)	106
Balance at end of period	$	719		$	—		$	35		$	(62	)	$	692
Allowance ratio	4.86		%	—		%	24.28		%	(a)			4.64		%
Year Ended December 31, 2016
Balance at beginning of period	$	766		$	4		$	70		$	(251	)	$	589
Provision for finance receivable losses	908			14			6			1			929
Charge-offs	(1,047		)	(17		)	(18		)	210			(872		)
Recoveries	102			3			8			(39		)	74
Other (b)	—			(4		)	(35		)	5			(34		)
Balance at end of period	$	729		$	—		$	31		$	(74	)	$	686
Allowance ratio	5.44		%	—		%	17.51		%	(a)			5.01		%
Year Ended December 31, 2015
Balance at beginning of period	$	132		$	3		$	91		$	(46	)	$	180
Provision for finance receivable losses	346			68			(1		)	298			711
Charge-offs	(423		)	(79		)	(28		)	174			(356		)
Recoveries	46			12			8			(11		)	55
Other (c)	665			—			—			(666		)	(1		)
Balance at end of period	$	766		$	4		$	70		$	(251	)	$	589
Allowance ratio	5.95		%	0.25		%	11.57		%	(a)			3.81		%

(a) Not applicable.

(b) Other consists of:

•     the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in

connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 of the Notes to Consolidated Financial Statements included in this report for more information about the sale; and

•     the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance

receivable held for sale during 2016.

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(c) Other consists of:

•the addition to allowance for finance receivable losses of $666 million due to the personal loans acquired in connection with the

OneMain Acquisition and the offsetting Segment to GAAP adjustment; and

• the elimination of allowance for finance receivable losses of $1 million due to the transfer of personal loans held for investment to finance receivable held for sale during 2015.

The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance, along with the volume of our TDR activity, are the primary drivers that can cause fluctuations in our allowance for finance receivable losses from period to period. We monitor the allowance ratio to ensure we have a sufficient level of allowance for finance receivable losses to cover estimated incurred losses in our finance receivable portfolio. The level of allowance for finance receivables losses as a percentage of net finance receivables has decreased from 2016 due to the change in portfolio mix to more secured personal loans, improvement in the effectiveness of our collections, and the completion of our integration.

In aggregate, our Consumer and Insurance allowance for finance receivable losses decreased by $12 million during 2017, inclusive of $12 million related to estimates of impacts to charge-offs resulting from hurricanes Harvey and Irma.

See Notes 4 and 6 of the Notes to Consolidated Financial Statements included in this report for more information about changes in the allowance for finance receivable losses.

TDR FINANCE RECEIVABLES

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 for each of the Company’s segments on a Segment Accounting Basis, as well as reconciliations to information regarding our total TDR finance receivables held for investment on a GAAP basis, were as follows:

(dollars in millions)	Consumer and Insurance		Other		Segment to GAAP Adjustment			Consolidated Total
December 31, 2017
TDR net finance receivables	$	480	$	74	$	(188	)	$	366
Allowance for TDR finance receivable losses	190		26		(70		)	146
December 31, 2016
TDR net finance receivables	$	421	$	71	$	(296	)	$	196
Allowance for TDR finance receivable losses	154		23		(97		)	80

Upon the completion of our branch integration in the first quarter of 2017, we continued the alignment and enhancement of our collection processes, which in the second quarter of 2017 resulted in an increase in the loans now classified as TDRs, and accordingly, we reclassified the associated allowance for finance receivable losses. This resulted in a reduction to the allowance for non-TDR finance receivables and an increase to the allowance for TDR finance receivable losses. The allowance for non-TDR finance receivable losses continues to reflect our historical loss coverage.

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.

30

SFC Issuance of 5.625% Senior Notes Due 2023

On December 8, 2017, SFC issued $875 million aggregate principal amount of the 5.625% SFC Notes under the SFC Fourth Supplemental Indenture, pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis. SFC used a portion of the net proceeds from the sale of the 5.625% SFC Notes to repay at maturity approximately $557 million aggregate principal amount of SFC’s existing 6.90% Medium-Term Notes and for general corporate purposes. See Note 13 of the Notes to Consolidated Financial Statements included in this report for further information on the issuance.

SFC Issuance of 6.125% Senior Notes Due 2022

On May 15, 2017, SFC issued $500 million aggregate principal amount of the 6.125% SFC Notes under the SFC Third Supplemental Indenture, pursuant to which OMH provided a guarantee of the 6.125% SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of the Additional SFC Notes in an add-on offering. SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes. See Note 13 of the Notes to Consolidated Financial Statements included in this report for further information on the issuance.

Securitizations and Borrowings from Revolving Conduit Facilities

During 2017, we (i) completed two consumer loan securitizations and two auto securitizations, and (ii) exercised our right to redeem the 2014-A Notes and the 2014-1 Notes. At December 31, 2017, we had $9.8 billion in UPB of finance receivables pledged as collateral for our securitization transactions.

During 2017, we (i) terminated eight revolving conduit agreements and (ii) entered into seven new conduit facilities. At December 31, 2017, we had access to 10 conduit facilities with a total borrowing capacity of $5.1 billion. At December 31, 2017, no amounts were drawn under these facilities.

See Notes 13 and 14 of the Notes to Consolidated Financial Statements included in this report for further information on our long-term debt, loan securitization transactions and conduit facilities.

Subsequent to December 31, 2017, we completed the following transactions:

• On January 8, 2018, we redeemed $700 million in aggregate principal amount of OMFH’s 6.75% Senior Notes due 2019. See Note 25 of the Notes to Consolidated Financial Statements included in this report for further information regarding this redemption.

• On February 2, 2018, OneMain Financial B6 Warehouse Trust voluntarily terminated its note purchase agreement. Concurrently, we entered into the OneMain Financial Funding VIII LSA with the same third party lenders who were party to the terminated note purchase agreement with the OneMain Financial B6 Warehouse Trust. Under the OneMain Financial Funding VIII LSA, we may borrow up to a maximum principal balance of $450 million. See Note 25 of the Notes to Consolidated Financial Statements included in this report for further information.

• We have drawn a net amount of $475 million under our various revolving conduit facilities.

USES OF FUNDS

Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses (including acquisition-related transaction and integration 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, 2017, we had $958 million of cash and cash equivalents, which included $242 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes. During 2017, we generated net income attributable to SFC of $152 million. Our net cash outflow from operating and investing activities totaled $633 million in 2017. At December 31, 2017, our scheduled principal and interest payments for 2018 on our existing debt (excluding securitizations) totaled $1.1 billion. As of December 31, 2017, we had $5.0 billion UPB of unencumbered personal loans and $328 million UPB of unencumbered real estate loans (including $193 million held for sale).

31

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 12 months.

See Notes 13 and 14 of the Notes to Consolidated Financial Statements included in this report for further information on our long-term debt, loan securitization transactions and conduit facilities.

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 $1.6 billion for 2017 reflected net income of $152 million, the impact of non-cash items, and a favorable change in working capital of $159 million. Net cash provided by operations of $1.2 billion for 2016 reflected a net income of $270 million, the impact of non-cash items, and an unfavorable change in working capital of $273 million. Net cash provided by operations of $764 million for 2015 reflected a net loss of $74 million, the impact of non-cash items, and a favorable change in working capital of $123 million.

Investing Activities

Net cash used for investing activities of $2.3 billion for 2017 was primarily due to net principal originations of finance receivables held for investment and held for sale, partially offset by net sales, calls, and maturities of available-for-sale securities and by net cash advances of intercompany note from parent. Net cash provided by investing activities of $63 million for 2016 was primarily due to the SpringCastle Interests Sale, the Lendmark Sale, and the August and December 2016 Real Estate Loan Sales, partially offset by net principal originations of finance receivables held for investment and held for sale. Net cash used for investing activities of $2.3 billion for 2015 was primarily due to the OneMain Acquisition.

Financing Activities

Net cash provided by financing activities of $968 million for 2017 was primarily due to net issuances of long-term debt, including SFC’s offerings of the 6.125% SFC Notes in May of 2017 and the 5.625% SFC Notes in December of 2017; offset primarily by the repayment at maturity of existing 6.90% Medium-Term Notes and the repurchase of existing 6.90% Medium-Term Notes. Net cash used for financing activities of $1.7 billion for 2016 was primarily due to net repayments of long-term debt. Net cash provided by financing activities of $2.1 billion for 2015 reflected the debt issuances associated with the 2015-A and 2015-B securitizations and the $1.1 billion capital contribution by OMH related to the purchase of OMFH.

Liquidity Risks and Strategies

SFC’s and OMFH’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;

• any inability to repay or default in the repayment of intercompany indebtedness owed to us by our affiliates or owed by us to our affiliates;

• 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.

32

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 some or all 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 revolving conduit 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 new and extending existing secured revolving facilities to provide committed liquidity in case of prolonged market fluctuations.

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

Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. See Note 15 of the Notes to Consolidated Financial Statements included in this report for further information on these restrictions and the dividends paid by our insurance subsidiaries during 2015 through 2017.

OUR DEBT AGREEMENTS

The debt agreements to which SFC, OMFH, and their subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. See Note 13 of the Notes to Consolidated Financial Statements included in this report for further information on the restrictive covenants under SFC’s and OMFH’s debt agreements, as well as the guarantees of SFC’s and OMFH’s long-term debt.

Contractual Obligations

At December 31, 2017, our material contractual obligations were as follows:

(dollars in millions)	2018 (a)		2019-2020		2021-2022		2023+		Securitizations		Total
Principal maturities on long-term debt:
Securitization debt (b)	$	—	$	—	$	—	$	—	$	8,711	$	8,711
Medium-term notes	700		1,995		2,446		1,175		—		6,316
Junior subordinated debt	—		—		—		350		—		350
Total principal maturities	700		1,995		2,446		1,525		8,711		15,377
Interest payments on debt (c)	385		740		372		580		587		2,664
Operating leases (d)	52		70		31		14		—		167
Total	$	1,137	$	2,805	$	2,849	$	2,119	$	9,298	$	18,208

(a) On January 8, 2018, the Company redeemed all $700 million outstanding principal amount of OMFH’s 6.75% Senior Notes due 2019. See Note 25 for further information regarding this redemption.

(b) On-balance sheet securitizations and borrowings under revolving conduit facilities are not included in maturities by period due to their variable monthly payments. At December 31, 2017, there were no amounts drawn under our revolving conduit facilities.

(c) Future interest payments on floating-rate debt are estimated based upon floating rates in effect at December 31, 2017.

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

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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 at December 31, 2017 or 2016, other than certain representations and warranties associated with the sales of the mortgage-backed retained certificates during 2014. As of December 31, 2017, 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 contractual 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 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.

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 or 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.

34

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 as of October 1 of each year. For goodwill, if the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated utilizing the income approach, which uses prospective financial information of the reporting unit discounted at a rate that we estimate a market participant would use. For indefinite lived intangible assets, 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 included in this report 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.

35

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.    

The fair values of certain of our assets and liabilities are sensitive to changes in market interest rates. The impact of changes in interest rates would be reduced by the fact that increases (decreases) in fair values of assets would be partially offset by corresponding changes in fair values of liabilities. In aggregate, the estimated impact of an immediate and sustained 100 bp increase or decrease in interest rates on the fair values of our interest rate-sensitive financial instruments would not be material to our financial position.

The estimated increases (decreases) in fair values of interest rate-sensitive financial instruments were as follows:

December 31,	2017					2016
(dollars in millions)	+100 bp			-100 bp		+100 bp			-100 bp
Assets
Net finance receivables, less allowance for finance receivable losses	$	(216	)	$	222	$	(181	)	$	186
Finance receivables held for sale	(10		)	12		(11		)	13
Fixed-maturity investment securities	(62		)	68		(69		)	71
Liabilities
Long-term debt	$	(375	)	$	236	$	(327	)	$	193

We derived the changes in fair values by modeling estimated cash flows of certain of our assets and liabilities. We adjusted the cash flows to reflect changes in prepayments and calls, but did not consider loan originations, debt issuances, or new investment purchases.

We did not enter into interest rate-sensitive financial instruments for trading or speculative purposes.

Readers should exercise care in drawing conclusions based on the above analysis. While these changes in fair values provide a measure of interest rate sensitivity, they do not represent our expectations about the impact of interest rate changes on our financial results. This analysis is also based on our exposure at a particular point in time and incorporates numerous assumptions and estimates. It also assumes an immediate change in interest rates, without regard to the impact of certain business decisions or initiatives that we would likely undertake to mitigate or eliminate some or all of the adverse effects of the modeled scenarios.

36

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		39
Consolidated Balance Sheets		40
Consolidated Statements of Operations		41
Consolidated Statements of Comprehensive Income (Loss)		42
Consolidated Statements of Shareholder’s Equity		43
Consolidated Statements of Cash Flows		44
Notes to Consolidated Financial Statements:
Note 1.	Nature of Operations	46
Note 2.	Significant Transactions	47
Note 3.	Summary of Significant Accounting Policies	61
Note 4.	Recent Accounting Pronouncements	71
Note 5.	Finance Receivables	74
Note 6.	Allowance for Finance Receivable Losses	82
Note 7.	Finance Receivables Held for Sale	84
Note 8.	Investment Securities	85
Note 9.	Goodwill and Other Intangible Assets	89
Note 10.	Other Assets	90
Note 11.	Transactions with Affiliates	90
Note 12.	Related Party Transactions	91
Note 13.	Long-term Debt	93
Note 14.	Variable Interest Entities	97
Note 15.	Insurance	101
Note 16.	Other Liabilities	105
Note 17.	Capital Stock	105
Note 18.	Accumulated Other Comprehensive Income (Loss)	106
Note 19.	Income Taxes	107
Note 20.	Lease Commitments, Rent Expense, and Contingent Liabilities	110
Note 21.	Benefit Plans	111
Note 22.	Share-Based Compensation	111
Note 23.	Segment Information	114
Note 24.	Fair Value Measurements	118
Note 25.	Subsequent Events	124
Note 26.	Selected Quarterly Financial Data (Unaudited)	124
Schedule I - Condensed Financial Information of Registrant at December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016, and 2015		127

37

Introductory Note to the Consolidated Financial Statements

On June 22, 2018, SFC entered into a Contribution Agreement with SFI, a wholly-owned subsidiary of OMH. Pursuant to the Contribution Agreement, Independence was contributed by SFI to SFC. Independence, through its principal subsidiary OMFH, engages in the consumer finance and insurance businesses.

The Company’s consolidated financial statements have been retrospectively recast for all periods presented to include the historical results of Independence because the transaction was between entities under common control.

38

Report of Independent Registered Public Accounting Firm

TotheBoard of Directors and Shareholder of Springleaf Finance Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Springleaf Finance Corporation and its subsidiaries as of December 31, 2017 and 2016, and the related consolidated statements of operations, comprehensive income (loss), shareholder’s equity, and cash flowsfor each of the three years in the period ended December 31, 2017, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidatedfinancial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Companyas ofDecember 31, 2017 and 2016, and the results of their operations and their cash flows for each of the three years in the period endedDecember 31, 2017in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidatedfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidatedfinancial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidatedfinancial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidatedfinancial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidatedfinancial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Dallas, Texas

February 21, 2018, except with respect of the effects of the reorganization of entities under common control discussed in Note 2 to the consolidated financial statements and the financial statement schedule, as to which the date is August 3, 2018

We have served as the Company's auditor since 2002.

39

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(dollars in millions, except par value amount)
December 31,	2017			2016
Assets
Cash and cash equivalents	$	958		$	553
Investment securities	1,697			1,764
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $9.8 billion in 2017 and $9.5 billion in 2016)	14,775			13,531
Real estate loans	128			144
Retail sales finance	6			11
Net finance receivables	14,909			13,686
Unearned insurance premium and claim reserves	(590		)	(586		)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	(692		)	(686		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	13,627			12,414
Finance receivables held for sale	132			153
Note receivable from parent	391			285
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $482 million in 2017 and $552 million in 2016)	498			568
Goodwill	1,422			1,422
Other intangible assets	439			491
Other assets	481			690
Total assets	$	19,645		$	18,340
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016)	$	15,050		$	13,959
Insurance claims and policyholder liabilities	737			757
Deferred and accrued taxes	46			11
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	410			340
Total liabilities	16,243			15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	5			5
Additional paid-in capital	1,909			1,906
Accumulated other comprehensive income (loss)	6			(6		)
Retained earnings	1,482			1,368
Total shareholder’s equity	3,402			3,273
Total liabilities and shareholder’s equity	$	19,645		$	18,340

See Notes to Consolidated Financial Statements.

40

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Interest income:
Finance charges	$	3,174		$	3,022		$	1,850
Finance receivables held for sale originated as held for investment	13			74			60
Total interest income	3,187			3,096			1,910
Interest expense	816			856			715
Net interest income	2,371			2,240			1,195
Provision for finance receivable losses	947			929			711
Net interest income after provision for finance receivable losses	1,424			1,311			484
Other revenues:
Insurance	420			449			211
Investment	73			86			50
Interest income on notes receivable from parent	23			19			15
Net loss on repurchases and repayments of debt	(29		)	(17		)	—
Net gain on sale of SpringCastle interests	—			167			—
Net gain on sales of personal and real estate loans and related trust assets	—			18			—
Other	53			32			(1		)
Total other revenues	540			754			275
Other expenses:
Operating expenses:
Salaries and benefits	729			723			426
Acquisition-related transaction and integration expenses	69			108			62
Other operating expenses	587			670			371
Insurance policy benefits and claims	184			167			96
Total other expenses	1,569			1,668			955
Income (loss) before income tax expense (benefit)	395			397			(196		)
Income tax expense (benefit)	243			127			(122		)
Net income (loss)	152			270			(74		)
Net income attributable to non-controlling interests	—			28			127
Net income (loss) attributable to Springleaf Finance Corporation	$	152		$	242		$	(201	)

See Notes to Consolidated Financial Statements.

41

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Net income (loss)	$	152		$	270		$	(74	)
Other comprehensive income (loss):
Net unrealized gains (losses) on:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	21			36			(28		)
Retirement plan liabilities adjustments	4			22			(9		)
Foreign currency translation adjustments	6			4			(6		)
Income tax effect:
Net unrealized (gains) losses on:
Net unrealized (gains) losses on non-credit impaired available-for-sale securities	(7		)	(13		)	10
Retirement plan liabilities adjustments	(1		)	(7		)	3
Foreign currency translation adjustments	(2		)	(1		)	2
Other comprehensive income (loss), net of tax, before reclassification adjustments	21			41			(28		)
Reclassification adjustments included in net income (loss):
Net realized gains on available-for-sale securities	(14		)	(15		)	(12		)
Net realized gain on foreign currency translation adjustments	—			(4		)	—
Income tax effect:
Net realized gains on available-for-sale securities	5			5			4
Reclassification adjustments included in net income, net of tax	(9		)	(14		)	(8		)
Other comprehensive income (loss), net of tax	12			27			(36		)
Comprehensive income (loss)	164			297			(110		)
Comprehensive income attributable to non-controlling interests	—			28			127
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$	164		$	269		$	(237	)

See Notes to Consolidated Financial Statements.

42

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, 2017	$	5	$	1,906		$	(6	)	$	1,368		$	3,273		$	—		$	3,273
Share-based compensation expense, net of forfeitures	—		5			—			—			5			—			5
Withholding tax on vested restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”)	—		(2		)	—			—			(2		)	—			(2		)
Other comprehensive income	—		—			12			—			12			—			12
Dividend of SFMC to SFI	—		—			—			(38		)	(38		)	—			(38		)
Net income	—		—			—			152			152			—			152
Balance, December 31, 2017	$	5	$	1,909		$	6		$	1,482		$	3,402		$	—		$	3,402
Balance, January 1, 2016	$	5	$	1,889		$	(33	)	$	1,126		$	2,987		$	(79	)	$	2,908
Capital contributions from parent	—		10			—			—			10			—			10
Share-based compensation expense, net of forfeitures	—		8			—			—			8			—			8
Withholding tax on share-based compensation	—		(1		)	—			—			(1		)	—			(1		)
Change in non-controlling interests:
Distributions declared to joint venture partners	—		—			—			—			—			(18		)	(18		)
Sale of equity interests in SpringCastle joint venture	—		—			—			—			—			69			69
Other comprehensive income	—		—			27			—			27			—			27
Net income	—		—			—			242			242			28			270
Balance, December 31, 2016	$	5	$	1,906		$	(6	)	$	1,368		$	3,273		$	—		$	3,273
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		)
Other comprehensive loss	—		—			(36		)	—			(36		)	—			(36		)
Capital contribution from parent	—		1,100			—			—			1,100			—			1,100
Net loss	—		—			—			(201		)	(201		)	127			(74		)
Balance, December 31, 2015	$	5	$	1,889		$	(33	)	$	1,126		$	2,987		$	(79	)	$	2,908

See Notes to Consolidated Financial Statements.

43

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Cash flows from operating activities
Net income (loss)	$	152		$	270		$	(74	)
Reconciling adjustments:
Provision for finance receivable losses	947			929			711
Depreciation and amortization	317			510			193
Deferred income tax charge (benefit)	43			(105		)	(208		)
Non-cash incentive compensation from Initial Stockholder	—			—			15
Net gain on liquidation of United Kingdom subsidiary	—			(4		)	—
Net gain on sales of personal and real estate loans and related trust assets	—			(18		)	—
Net loss on repurchases and repayments of debt	29			17			—
Share-based compensation expense, net of forfeitures	5			8			2
Net gain on sale of SpringCastle interests	—			(167		)	—
Other	(5		)	(9		)	2
Cash flows due to changes in:
Other assets and other liabilities	175			(189		)	1
Insurance claims and policyholder liabilities	(22		)	(64		)	27
Taxes receivable and payable	43			(38		)	131
Accrued interest and finance charges	(37		)	15			(34		)
Other, net	—			3			(2		)
Net cash provided by operating activities	1,647			1,158			764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale	(2,267		)	(1,155		)	(975		)
Proceeds on sales of finance receivables held for sale originated as held for investment	—			930			78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired	—			—			(3,520		)
Proceeds from sale of SpringCastle interests, net of restricted cash released	—			26			—
Cash advances on intercompany note to parent	(355		)	(297		)	(327		)
Proceeds from repayments of principal on intercompany note to parent	249			401			189
Cash received from CitiFinancial Credit Company	—			23			—
Available-for-sale securities purchased	(671		)	(746		)	(525		)
Trading and other securities purchased	—			(17		)	(1,474		)
Available-for-sale securities called, sold, and matured	739			837			521
Trading and other securities called, sold, and matured	18			63			3,779
Proceeds from sale of real estate owned	4			8			14
Other, net	3			(10		)	(14		)
Net cash provided by (used for) investing activities	(2,280		)	63			(2,254		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	5,427			6,660			3,028
Repayments of long-term debt	(4,447		)	(8,320		)	(1,960		)
Distributions to joint venture partners	—			(18		)	(77		)
Withholding tax on vested RSUs and PRSUs	(2		)	(1		)	1
Cash dividend of SFMC	(10		)	—			—
Capital contributions from parent	—			10			1,100
Net cash provided by (used for) financing activities	968			(1,669		)	2,092

44

Consolidated Statements of Cash Flows (Continued)

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	335			(448		)	602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	1,121			1,569			967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	$	1,456		$	1,121		$	1,569
Supplemental cash flow information
Cash and cash equivalents	$	958		$	553		$	893
Restricted cash and restricted cash equivalents	498			568			676
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$	1,456		$	1,121		$	1,569
Interest paid	$	(746	)	$	(765	)	$	(594	)
Income taxes received (paid)	(154		)	(269		)	43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	$	—		$	1,945		$	617
Increase in finance receivables held for investment financed with intercompany payable	—			89			—
Transfer of finance receivables to real estate owned	9			8			11
Net unsettled investment security purchases	1			1			—
Non-cash dividend of SFMC	(28		)	—			—

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

See Notes to Consolidated Financial Statements.

45

SPRINGLEAF FINANCE CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2017

1. Nature of Operations

Springleaf Finance Corporation is referred to in this report as SFC or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our” is a wholly owned subsidiary of SFI. SFI is a wholly owned subsidiary of OMH.

SFC is a financial services holding company whose principal subsidiaries are Independence Holdings, LLC (“Independence”), which, as described below, was contributed to SFC by SFI on June 22, 2018, and other direct subsidiaries engaged in the consumer finance and insurance businesses.

At December 31, 2017, the Initial Stockholder owned approximately 44% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. On December 27, 2017, SoftBank acquired Fortress and Fortress now operates within SoftBank as an independent business headquartered in New York.

See Note 24 regarding a definitive agreement entered into on January 3, 2018, among OMH, an investor group led by funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) and Värde Partners, Inc. (“Värde” and together with Apollo, collectively, the “Apollo-Värde Group”) and the Initial Stockholder.

46

2. Significant Transactions

INDEPENDENCE CONTRIBUTION

On June 22, 2018, SFC entered into a Contribution Agreement with SFI, a wholly-owned subsidiary of OMH. Pursuant to the Contribution Agreement, Independence was contributed by SFI to SFC.

The Company has retrospectively recast the financial results for all periods to include Independence as required for transactions between entities under common control. The following table presents the Company’s previously reported Consolidated Balance Sheet as of December 31, 2017 and 2016 retrospectively recast for the contribution of Independence:

(dollars in millions, except par value amount)	2017
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	244		$	714		$	—		$	958
Investment securities		536			1,172			(11		)	1,697
Net finance receivables:
Personal loans		5,308			9,467			—			14,775
Real estate loans		128			—			—			128
Retail sales finance		6			—			—			6
Net finance receivables		5,442			9,467			—			14,909
Unearned insurance premium and claim reserves		(108		)	(482		)	—			(590		)
Allowance for finance receivable losses		(240		)	(452		)	—			(692		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		5,094			8,533			—			13,627
Finance receivables held for sale		132			—			—			132
Notes receivable from parent and affiliates		4,488			—			(4,097		)	391
Restricted cash and restricted cash equivalents		169			329			—			498
Goodwill		—			1,422			—			1,422
Other intangible assets		15			424			—			439
Other assets		146			402			(67		)	481
Total assets		$	10,824		$	12,996		$	(4,175	)	$	19,645
Liabilities and Shareholder’s Equity
Long-term debt		$	7,865		$	7,195		$	(10	)	15,050
Note payable to parent and affiliates		—			4,097			(4,097		)	—
Insurance claims and policyholder liabilities		261			476			—			737
Deferred and accrued taxes		78			3			(35		)	46
Other liabilities		214			229			(33		)	410
Total liabilities		8,418			12,000			(4,175		)	16,243
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,110			—			1,909
Accumulated other comprehensive income (loss)		—			6			—			6
Retained earnings		1,602			(120		)	—			1,482
Total shareholder’s equity		2,406			996			—			3,402
Total liabilities and shareholder’s equity		$	10,824		$	12,996		$	(4,175	)	$	19,645

47

(dollars in millions, except par value amount)	2016
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	240		$	313		$	—		$	553
Investment securities		582			1,188			(6		)	1,764
Net finance receivables:
Personal loans		4,804			8,727			—			13,531
Real estate loans		144			—			—			144
Retail sales finance		11			—			—			11
Net finance receivables		4,959			8,727			—			13,686
Unearned insurance premium and claim reserves		(212		)	(374		)	—			(586		)
Allowance for finance receivable losses		(204		)	(482		)	—			(686		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		4,543			7,871			—			12,414
Finance receivables held for sale		153			—			—			153
Notes receivable from parent and affiliates		3,723			—			(3,438		)	285
Restricted cash and restricted cash equivalents		227			341			—			568
Goodwill		—			1,422			—			1,422
Other intangible assets		15			476			—			491
Other assets		236			552			(98		)	690
Total assets		$	9,719		$	12,163		$	(3,542	)	$	18,340
Liabilities and Shareholder’s Equity
Long-term debt		$	6,837		$	7,127		$	(5	)	13,959
Note payable to parent and affiliates		—			3,438			(3,438		)	—
Insurance claims and policyholder liabilities		248			509			—			757
Deferred and accrued taxes		106			—			(95		)	11
Other liabilities		185			159			(4		)	340
Total liabilities		7,376			11,233			(3,542		)	15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,107			—			1,906
Accumulated other comprehensive income (loss)		(7		)	1			—			(6		)
Retained earnings		1,546			(178		)	—			1,368
Total shareholder’s equity		2,343			930			—			3,273
Total liabilities and shareholder’s equity		$	9,719		$	12,163		$	(3,542	)	$	18,340

48

The following table presents the Company’s previously reported Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

(dollars in millions)	2017
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,228		$	1,946		$	—		$	3,174
Finance receivables held for sale originated as held for investment		13			—			—			13
Total interest income		1,241			1,946			—			3,187
Interest expense		517			531			(232		)	816
Net interest income		724			1,415			232			2,371
Provision for finance receivable losses		324			623			—			947
Net interest income after provision for finance receivable losses		400			792			232			1,424
Other revenues:
Insurance		140			280			—			420
Investment		28			45			—			73
Interest income on notes receivable from parent and affiliates		255			—			(232		)	23
Net loss on repurchases and repayments of debt		(28		)	(1		)	—			(29		)
Other		12			69			(28		)	53
Total other revenues		407			393			(260		)	540
Other expenses:
Operating expenses:
Salaries and benefits		307			442			(20		)	729
Acquisition-related transaction and integration expenses		—			—			69			69
Other operating expenses		251			413			(77		)	587
Insurance policy benefits and claims		56			128			—			184
Total other expenses		614			983			(28		)	1,569
Income before income tax expense		193			202			—			395
Income tax expense		99			144			—			243
Net income		94			58			—			152
Net income attributable to non-controlling interests		—			—			—			—
Net income attributable to Springleaf Finance Corporation		$	94		$	58		$	—		$	152

49

(dollars in millions)	2016
		As Reported								Consolidated
Year to Date		SFC			Independence		Adjustments			SFC
Interest income:
Finance charges		$	1,276		$	1,746	$	—		$	3,022
Finance receivables held for sale originated as held for investment		74			—		—			74
Total interest income		1,350			1,746		—			3,096
Interest expense		556			502		(202		)	856
Net interest income		794			1,244		202			2,240
Provision for finance receivable losses		329			600		—			929
Net interest income after provision for finance receivable losses		465			644		202			1,311
Other revenues:
Insurance		160			289		—			449
Investment		31			55		—			86
Interest income on notes receivable from parent and affiliates		214			7		(202		)	19
Net loss on repurchases and repayments of debt		(17		)	—		—			(17		)
Net gain on sale of SpringCastle interests		167			—		—			167
Net gain on sales of personal and real estate loans and related trust assets		18			—		—			18
Other		1			31		—			32
Total other revenues		574			382		(202		)	754
Other expenses:
Operating expenses:
Salaries and benefits		347			427		(51		)	723
Acquisition-related transaction and integration expenses		—			—		108			108
Other operating expenses		291			436		(57		)	670
Insurance policy benefits and claims		55			112		—			167
Total other expenses		693			975		—			1,668
Income before income tax expense		346			51		—			397
Income tax expense		113			14		—			127
Net income		233			37		—			270
Net income attributable to non-controlling interests		28			—		—			28
Net income attributable to Springleaf Finance Corporation		$	205		$	37	$	—		$	242

50

(dollars in millions)	2015
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,597		$	253		$	—		$	1,850
Finance receivables held for sale originated as held for investment		60			—			—			60
Total interest income		1,657			253			—			1,910
Interest expense		667			75			(27		)	715
Net interest income		990			178			27			1,195
Provision for finance receivable losses		339			372			—			711
Net interest income after provision for finance receivable losses		651			(194		)	27			484
Other revenues:
Insurance		158			53			—			211
Investment		49			1			—			50
Interest income on notes receivable from parent and affiliates		42			—			(27		)	15
Other		(6		)	5			—			(1		)
Total other revenues		243			59			(27		)	275
Other expenses:
Operating expenses:
Salaries and benefits		364			73			(11		)	426
Acquisition-related transaction and integration expenses		—			—			62			62
Other operating expenses		299			123			(51		)	371
Insurance policy benefits and claims		72			24			—			96
Total other expenses		735			220			—			955
Income before income tax expense (benefit)		159			(355		)	—			(196		)
Income tax expense (benefit)		18			(140		)	—			(122		)
Net income (loss)		141			(215		)	—			(74		)
Net income attributable to non-controlling interests		127			—			—			127
Net income (loss) attributable to Springleaf Finance Corporation		$	14		$	(215	)	$	—		$	(201	)

51

The following table presents the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated SFC
Cash flows from operating activities
Net income		$	94		$	58		$	—		$	152
Reconciling adjustments:
Provision for finance receivable losses		324			623			—			947
Depreciation and amortization		143			174			—			317
Deferred income tax benefit		(82		)	125			—			43
Net loss on repurchases and repayments of debt		28			1			—			29
Share-based compensation expense, net of forfeitures		—			5			—			5
Other		1			(6		)	—			(5		)
Cash flows due to changes in:
Other assets and other liabilities		107			68			—			175
Insurance claims and policyholder liabilities		(92		)	70			—			(22		)
Taxes receivable and payable		13			30			—			43
Accrued interest and finance charges		(95		)	54			4			(37		)
Other, net		(3		)	3			—			—
Net cash provided by operating activities		438			1,205			4			1,647
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(783		)	(1,484		)	—			(2,267		)
Cash advances on intercompany notes receivable		(1,837		)	—			1,482			(355		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,154			—			(905		)	249
Available-for-sale securities purchased		(245		)	(431		)	5			(671		)
Available-for-sale securities called, sold, and matured		301			438			—			739
Trading and other securities called, sold, and matured		1			17			—			18
Proceeds from sale of real estate owned		4			—			—			4
Other, net		12			(9		)	—			3
Net cash provided by (used for) financing activities		(1,393		)	(1,469		)	582			(2,280		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,456			1,971			—			5,427
Repayments of long-term debt		(2,544		)	(1,898		)	(5		)	(4,447		)
Proceeds from intercompany note payable		—			1,486			(1,486		)	—
Payments on intercompany note payable		—			(905		)	905			—
Withholding tax on vested RSUs and PRSUs		(1		)	(1		)	—			(2		)
Cash dividend of SFMC		(10		)	—			—			(10		)
Net cash provided by (used for) financing activities		901			653			(586		)	968

52

Consolidated Statements of Cash Flows (Continued)	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(54		)	389			—		335
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		467			654			—		$	1,121
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	413		$	1,043		$	—	$	1,456
Supplemental cash flow information
Cash and cash equivalents		$	244		$	714		$	—	$	958
Restricted cash and restricted cash equivalents		169			329			—		498
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	413		$	1,043		$	—	$	1,456
Interest paid		$	(436	)	$	(310	)	$	—	$	(746	)
Income taxes received (paid)		(71		)	(83		)	—		(154		)
Supplemental non-cash activities
Transfer of finance receivables to real estate owned		$	9		$	—		$	—	$	9
Net unsettled investment security purchases		—			1			—		$	1
Non-cash dividend of SFMC		(28		)	—			—		(28		)

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

53

	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income		$	233		$	37		$	—		$	270
Reconciling adjustments:
Provision for finance receivable losses		329			600			—			929
Depreciation and amortization		144			366			—			510
Deferred income tax benefit		(83		)	(22		)	—			(105		)
Net gain on liquidation of United Kingdom subsidiary		(4		)	—			—			(4		)
Net gain on sales of personal and real estate loans and related trust assets		(18		)	—			—			(18		)
Net loss on repurchases and repayments of debt		17			—			—			17
Share-based compensation expense, net of forfeitures		1			7			—			8
Net gain on sale of SpringCastle interests		(167		)	—			—			(167		)
Other		6			(15		)	—			(9		)
Cash flows due to changes in:
Other assets and other liabilities		(37		)	(152		)	—			(189		)
Insurance claims and policyholder liabilities		(19		)	(45		)	—			(64		)
Taxes receivable and payable		56			(94		)	—			(38		)
Accrued interest and finance charges		14			1			—			15
Other, net		3			—			—			3
Net cash provided by operating activities		475			683			—			1,158
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(557		)	(598		)	—			(1,155		)
Proceeds on sales of finance receivables held for sale originated as held for investment		930			—			—			930
Proceeds from sale of SpringCastle interests, net of restricted cash released		26			—			—			26
Cash advances on intercompany notes receivable		(1,042		)	(670		)	1,415			(297		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,023			670			(1,292		)	401
Cash received from CitiFinancial Credit Company		—			23			—			23
Available-for-sale securities purchased		(353		)	(399		)	6			(746		)
Trading and other securities purchased		(10		)	(7		)	—			(17		)
Available-for-sale securities called, sold, and matured		380			457			—			837
Trading and other securities called, sold, and matured		20			43			—			63
Proceeds from sale of real estate owned		8			—			—			8
Other, net		26			(36		)	—			(10		)
Net cash provided by (used for) investing activities		451			(517		)	129			63

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Consolidated Statements of Cash Flows (Continued)	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,854			2,806			—			6,660
Proceeds from intercompany note payable		670			1,415			(2,085		)	—
Repayments of long-term debt		(4,920		)	(3,394		)	(6		)	(8,320		)
Distributions to joint venture partners		(18		)	—			—			(18		)
Payments on note payable to affiliate		(670		)	(1,292		)	1,962			—
Withholding tax on vested RSUs and PRSUs		(1		)	—			—			(1		)
Capital contributions from parent		10			—			—			10
Net cash provided by (used for) financing activities		(1,075		)	(465		)	(129		)	(1,669		)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(149		)	(299		)	—			(448		)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		616			953			—			1,569
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	467		$	654		$	—		$	1,121
Supplemental cash flow information
Cash and cash equivalents		$	240		$	313		$	—		$	553
Restricted cash and restricted cash equivalents		227			341			—			568
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	467		$	654		$	—		$	1,121
Interest paid		$	(451	)	$	(314	)	$	—		$	(765	)
Income taxes received (paid)		(140		)	(129		)	—			(269		)
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	1,945		$	—		$	—		$	1,945
Increase in finance receivables held for investment financed with intercompany payable		89			—			—			89
Transfer of finance receivables to real estate owned		8			—			—			8
Net unsettled investment security purchases		—			1			—			1

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

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	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income (loss)		$	141		$	(215	)	$	—		$	(74	)
Reconciling adjustments:
Provision for finance receivable losses		339			372			—			711
Depreciation and amortization		92			101			—			193
Deferred income tax benefit		(50		)	(158		)	—			(208		)
Non-cash incentive compensation from Initial Stockholder		15			—			—			15
Share-based compensation expense, net of forfeitures		2			—			—			2
Other		(3		)	5			—			2
Cash flows due to changes in:
Other assets and other liabilities		(48		)	49			—			1
Insurance claims and policyholder liabilities		34			(7		)	—			27
Taxes receivable and payable		111			20			—			131
Accrued interest and finance charges		(23		)	(11		)	—			(34		)
Other, net		(2		)	—			—			(2		)
Net cash provided by operating activities		608			156			—			764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(799		)	(176		)	—			(975		)
Proceeds on sales of finance receivables held for sale originated as held for investment		78			—			—			78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired		—			(3,520		)	—			(3,520		)
Cash advances on intercompany notes receivable		(3,720		)	—			3,393			(327		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		189			—			—			189
Available-for-sale securities purchased		(476		)	(49		)	—			(525		)
Trading and other securities purchased		(1,474		)	—			—			(1,474		)
Available-for-sale securities called, sold, and matured		470			51			—			521
Trading and other securities called, sold, and matured		3,779			—			—			3,779
Proceeds from sale of real estate owned		14			—			—			14
Other, net		(12		)	(2		)	—			(14		)
Net cash (used for) financing activities		(1,951		)	(3,696		)	3,393			(2,254		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,028			—			—			3,028
Repayments of long-term debt		(1,960		)	—			—			(1,960		)
Proceeds from intercompany note payable		—			3,393			(3,393		)	—
Distributions to joint venture partners		(77		)	—			—			(77		)
Excess tax benefit from share-based compensation		1			—			—			1
Capital contribution		—			1,100			—			1,100
Net cash provided by financing activities		992			4,493			(3,393		)	2,092

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Consolidated Statements of Cash Flows (Continued)	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(351		)	953			—		602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		967			—			—		967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	616		$	953		$	—	$	1,569
Supplemental cash flow information
Cash and cash equivalents		$	321		$	572		$	—	$	893
Restricted cash and restricted cash equivalents		295			381			—		676
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	616		$	953		$	—	$	1,569
Interest paid		$	(511	)	$	(83	)	$	—	$	(594	)
Income taxes received (paid)		45			(2		)	—		43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	617		$	—		$	—	$	617
Transfer of finance receivables to real estate owned		11			—			—		11

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

ONEMAIN ACQUISITION

On November 15, 2015, Independence completed its acquisition of OMFH from Citigroup for approximately $4.5 billion in cash (the “OneMain Acquisition”). OMFH is a leading consumer finance company in the United States, providing personal loans to primarily middle income households through a national, community based network. The results of OMFH are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup.

We allocated the purchase price to the net tangible and intangible assets acquired and liabilities assumed, based on their respective estimated fair values as of October 31, 2015. Given the timing of this transaction and complexity of the purchase accounting, our estimate of the fair value adjustment specific to the acquired loans and intangible assets was preliminary, and our determination of the final tax positions with Citigroup was also preliminary. During 2016, we finalized the accounting for these matters as shown in the table below.

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The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows:

(dollars in millions)	As Reported			Adjustments*				As Adjusted
Cash consideration	$	4,478		$	(23	)	(a)	$	4,455
Fair value of assets acquired:
Cash and cash equivalents	958			—				958
Investment securities	1,294			—				1,294
Personal loans	8,801			(6		)	(b)	8,795
Intangibles	555			3			(c)	558
Other assets	247			(3		)	(d)	244
Fair value of liabilities assumed:
Long-term debt	(7,725		)	—				(7,725		)
Unearned premium, insurance policy and claims reserves	(936		)	—				(936		)
Other liabilities	(156		)	1			(e)	(155		)
Goodwill	$	1,440						$	1,422

* During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available:

(a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments.

(b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period.

(c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date.

(d) Represents a decrease in valuation of acquired software asset.

(e) Represents the settlement of a payable to Citigroup during the measurement period.

Of the adjusted $8.8 billion of acquired personal loans included in the table above, $8.1 billion relates to finance receivables determined not to be credit impaired at acquisition. Contractually required principal and interest of these non-credit impaired personal loans was $11.6 billion at the date of acquisition, of which $2.2 billion is not expected to be collected, primarily due to forgone interest as a result of prepayments and defaults.

The goodwill recognized from the OneMain Acquisition is reported in our Consumer and Insurance segment. We did not record any impairments to goodwill during 2017 and 2016. See Note 9 for the reconciliations of the carrying amounts of goodwill at the beginning and end of 2017 and 2016.

As of December 31, 2017, we had incurred approximately $239 million of acquisition-related transaction and integration expenses ($69 million incurred during 2017) in connection with the OneMain Acquisition and the Lendmark Sale, which we report as a component of operating expenses. These expenses primarily include transaction costs, technology termination and certain compensation and benefit related costs.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC 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 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement required certain of OMH’s subsidiaries (the “Branch Sellers”) to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement appointed a third-party monitor to oversee management of the divestiture branches and ensure

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the Company’s compliance with the terms of the Settlement Agreement. The sale contemplated under the terms of the Settlement Agreement was consummated through the Lendmark Sale described below.

LENDMARK SALE

On November 12, 2015, OMH and the Branch Sellers entered into a purchase and sale agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such 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 had 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 would be 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.

Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016.

On May 2, 2016, we completed the Lendmark Sale for an aggregate cash purchase price of $624 million. Such sale was effective as of April 30, 2016 and included the sale to Lendmark of personal loans with an unpaid principal balance (“UPB”) as of March 31, 2016 of $600 million. OMH entered into a transition services agreement with Lendmark dated as of May 2, 2016 (the “Transition Services Agreement”), and OMH’s and our activities remained subject to the oversight of the Monitoring Trustee appointed by the court pursuant to the Settlement Agreement until the expiration of the Transition Services Agreement. The Transition Services Agreement expired on May 1, 2017.

SPRINGCASTLE INTERESTS SALE

On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, on March 31, 2016, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.”

In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million paid into an escrow account on July 29, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five-year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $167 million.

As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless SFI is terminated, SFI will remain as servicer of the SpringCastle Portfolio under the servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary.

Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for

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purposes of certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers.

The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, the date of sale, was owned primarily by a private equity fund managed by an affiliate of Fortress. Wesley Edens, Chairman of the Board of Directors of OMH, also serves as Chairman of the Board of Directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the Board of Directors of Fortress. Douglas Jacobs, a member of the Board of Directors of OMH, also serves as a member of NRZ’s Board of Directors and Fortress’ Board of Directors.

The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to the SpringCastle Interests Sale.

REAL ESTATE LOAN SALES

August 2016 Real Estate Loan Sale

On August 3, 2016, SFC and certain of its subsidiaries sold a portfolio of second lien mortgage loans for aggregate cash proceeds of $246 million (the “August 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of $4 million. Unless we are terminated or we resign as servicer, we will continue to service the loans included in this sale pursuant to a servicing agreement. The purchase and sale agreement and the servicing agreement include customary representations and warranties and indemnification provisions.

December 2016 Real Estate Loan Sale

On December 19, 2016, SFC and certain of its subsidiaries sold a portfolio of first and second lien mortgage loans for aggregate cash proceeds of $58 million (the “December 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of less than $1 million.

SFC’s MEDIUM-TERM NOTE ISSUANCES

8.25% Senior Notes Due 2020

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a First Supplemental Indenture, dated as of December 3, 2014 (the “SFC First Supplemental Indenture”) and a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis.

6.125% Senior Notes Due 2022

On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis.

On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price.

5.625% Senior Notes Due 2023

On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the ‘‘5.625% SFC Notes’’) under the SFC Base Indenture, as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture” and, collectively with the SFC Base Indenture, the SFC First Supplemental Indenture, the SFC Second Supplemental Indenture, and the SFC Third Supplemental Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis.

See Note 12 for further information regarding our debt issuances.

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3. Summary of Significant Accounting Policies

BASIS OF PRESENTATION

We prepared our consolidated financial statements using 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 owned a 47% equity interest prior to March 31, 2016), and 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 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 23, we have revised our prior period segment disclosures.

ACCOUNTING POLICIES

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2017, our two segments include:

• Consumer and Insurance; and

• Acquisitions and Servicing.

In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment.

The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016.

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

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, 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, except for collections of interest, which we include as cash flows from operating 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.

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.

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We stop accruing finance charges when four contractual payments become past due for personal loans 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

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 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 update on a quarterly basis the amount of cash flows we expect to collect, which incorporates 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, and such removal will not affect the yield used to recognize accretable yield of the pool.

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Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans 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 past due interest or forgive principal or interest. Additionally, as part of the modification, we may require trial payments. 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, 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 contractual 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.

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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 personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies.

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 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 may 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

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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. 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.

Reserve for Sales Recourse Obligations

When we sell finance receivables, we may 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.

Goodwill

Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount.

We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use.

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Intangible Assets other than Goodwill

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 OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives.

For intangible assets with a finite useful life, we review 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. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance.

For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. 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 from affiliates 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 dismemberment, 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 involuntary unemployment, and collateral protection 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

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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.

Insurance Policy 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 shareholder’s 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 (as further described in “Fair Value Measurements” below) 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.

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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.

Acquisition-related Transaction and Integration Expenses

In connection with the OneMain Acquisition, we incur acquisition-related transaction and integration costs, including (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration.

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

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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. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards.

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 and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized.

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.

The Tax Act was enacted on December 22, 2017 and we must reflect the changes associated with its provisions in 2017. The law is complex and has extensive implications for our federal and state current and deferred taxes and income tax expense. We recorded and reported the effects of the Tax Act in our financial statements in 2017. For further information, see Note 19 of the Notes to Consolidated Financial Statements included in this report.

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

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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.

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Foreign Currency Translation

Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

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 related to prior periods, 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.

4. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements.

Statement of Cash Flows

In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Technical Corrections and Improvements

In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections, to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Business Combinations

In January of 2017, the FASB issued ASU 2017-01, Business Combinations, to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact on our consolidated financial statements.

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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. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements.

Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $167 million of minimum lease commitments from these operating leases (refer to Note 20). We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact.

Allowance for Finance Receivables Losses

In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach.

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The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis bedetermined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition.

The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets.

In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance.

The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impacts.

Statement of Cash Flows

In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Income Taxes

In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Goodwill Impairment

In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Compensation and Benefits

In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting, which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We

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do not believe that any other accounting pronouncements issued during 2017, 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, 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 three to six years. At December 31, 2017, we had over 2.3 million personal loans representing $14.8 billion of net finance receivables, compared to

2.2 million personal loans totaling $13.5 billion at December 31, 2016.

• 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. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. In 2012, we ceased originating real estate loans and the portfolio is 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, are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant, 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 in a liquidating status.

Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			Real Estate Loans		Retail Sales Finance			Total
December 31, 2017
Gross receivables *	$	16,173		$	127	$	7		$	16,307
Unearned finance charges and points and fees	(1,724		)	—		(1		)	(1,725		)
Accrued finance charges	210			1		—			211
Deferred origination costs	116			—		—			116
Total	$	14,775		$	128	$	6		$	14,909
December 31, 2016
Gross receivables *	$	15,360		$	142	$	12		$	15,514
Unearned finance charges and points and fees	(2,061		)	1		(1		)	(2,061		)
Accrued finance charges	150			1		—			151
Deferred origination costs	82			—		—			82
Total	$	13,531		$	144	$	11		$	13,686

* 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 premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value;

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

• 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; and

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• TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable.

At December 31, 2017 and 2016, unused lines of credit extended to customers by the Company were immaterial.

GEOGRAPHIC DIVERSIFICATION

Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows:

December 31,	2017				2016 *
(dollars in millions)	Amount		Percent		Amount		Percent
Texas	$	1,300	9	%	$	1,194	9	%
North Carolina	1,155		8		1,112		8
Pennsylvania	882		6		825		6
California	876		6		806		6
Ohio	726		5		660		5
Florida	674		5		572		4
Illinois	667		4		599		4
Virginia	641		4		623		5
Georgia	618		4		586		4
Indiana	608		4		539		4
Tennessee	520		3		465		3
Other	6,242		42		5,705		42
Total	$	14,909	100	%	$	13,686	100	%

* December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 state concentrations.

CREDIT QUALITY INDICATOR

We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are contractually 60 days past due, we consider them delinquent and transfer collection of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming.

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The following is a summary of net finance receivables held for investment by type and by number of days delinquent:

(dollars in millions)	Personal Loans		Real Estate Loans		Retail Sales Finance		Total
December 31, 2017
Performing:
Current	$	14,081	$	98	$	6	$	14,185
30-59 days past due	202		8		—		210
60-89 days past due	156		3		—		159
Total performing	14,439		109		6		14,554
Nonperforming:
90-179 days past due	330		4		—		334
180 days or more past due	6		15		—		21
Total nonperforming	336		19		—		355
Total	$	14,775	$	128	$	6	$	14,909
December 31, 2016
Performing:
Current	$	12,878	$	102	$	11	$	12,991
30-59 days past due	173		9		—		182
60-89 days past due	129		4		—		133
Total performing	13,180		115		11		13,306
Nonperforming:
90-179 days past due	347		8		—		355
180 days or more past due	4		21		—		25
Total nonperforming	351		29		—		380
Total	$	13,531	$	144	$	11	$	13,686

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, 2017 and at December 31, 2016 were immaterial.

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased in connection with the OneMain Acquisition and the Fortress Acquisition.

Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold our interest in the SpringCastle Portfolio in connection with the SpringCastle Interests Sale.

We report the carrying amount (which initially was the fair value) 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, 2017 and 2016, finance receivables held for sale totaled $132 million and $153 million, respectively, which 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. See Note 7 for further information on our finance receivables held for sale.

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

December 31,	2017						2016
(dollars in millions)	OM Loans		FA Loans (a)		Total		OM Loans		FA Loans (a)		Total
Carrying amount, net of allowance	$	176	$	57	$	233	$	324	$	70	$	394
Outstanding balance (b)	243		94		337		444		107		551
Allowance for purchased credit impaired finance receivable losses	6		9		15		29		8		37

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

(dollars in millions)
December 31,	2017		2016
Carrying amount	$	44	$	54
Outstanding balance	72		83

(b) Outstanding balance is defined as UPB of the loans with a net carrying amount.

The allowance for purchased credit impaired finance receivable losses at December 31, 2017 and 2016, reflected the carrying value of the purchased credit impaired loans held for investment 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)	OM Loans			SCP Loans			FA Loans			Total
Year Ended December 31, 2017
Balance at beginning of period	$	59		$	—		$	60		$	119
Accretion (a)	(34		)	—			(5		)	(39		)
Reclassifications to nonaccretable difference (b)	22			—			(2		)	20
Balance at end of period	$	47		$	—		$	53		$	100
Year Ended December 31, 2016
Balance at beginning of period	$	151		$	375		$	66		$	592
Accretion (a)	(69		)	(16		)	(7		)	(92		)
Other (c)	(23		)	—			—			(23		)
Reclassifications from nonaccretable difference (b)	—			—			12			12
Transfers due to finance receivables sold	—			(359		)	(11		)	(370		)
Balance at end of period	$	59		$	—		$	60		$	119
Year Ended December 31, 2015
Balance at beginning of period	$	—		$	452		$	54		$	506
Additions from OneMain Acquisition	166			—			—			166
Accretion (a)	(15		)	(77		)	(8		)	(100		)
Reclassifications from nonaccretable difference (b)	—			—			20			20
Balance at end of period	$	151		$	375		$	66		$	592

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(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,	2017		2016		2015
Accretion	$	4	$	5	$	6

(b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows.

(c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield.

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		Real Estate Loans (a)		Total
December 31, 2017
TDR gross finance receivables (b)	$	318	$	139	$	457
TDR net finance receivables	317		140		457
Allowance for TDR finance receivable losses	134		12		146
December 31, 2016
TDR gross finance receivables	$	151	$	133	$	284
TDR net finance receivables	152		134		286
Allowance for TDR finance receivable losses	69		11		80

(a) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2017		2016
TDR gross finance receivables	$	90	$	89
TDR net finance receivables	91		90

(b) As defined earlier in this Note.

As of December 31, 2017, we had no commitments to lend additional funds on our TDR finance receivables.

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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 (b)		Total
Year Ended December 31, 2017
TDR average net receivables	$	230	$	—	$	140	$	370
TDR finance charges recognized	33		—		9		42
Year Ended December 31, 2016
TDR average net receivables	$	95	$	—	$	175	$	270
TDR finance charges recognized	12		—		11		23
Year Ended December 31, 2015
TDR average net receivables (c)	$	35	$	12	$	198	$	245
TDR finance charges recognized	3		1		11		15

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
TDR average net receivables	$	91
TDR finance charges recognized	6
Year Ended December 31, 2016
TDR average net receivables	$	102
TDR finance charges recognized	6
Year Ended December 31, 2015
TDR average net receivables	$	91
TDR finance charges recognized	5

(c) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables.

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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 (b)		Total
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	326	$	—	$	16	$	342
Post-modification TDR net finance receivables:
Rate reduction	$	250	$	—	$	16	$	266
Other (c)	74		—		—		74
Total post-modification TDR net finance receivables	$	324	$	—	$	16	$	340
Number of TDR accounts	45,300		—		510		45,810
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	211	$	1	$	16	$	228
Post-modification TDR net finance receivables:
Rate reduction	$	194	$	1	$	16	$	211
Other (c)	12		—		1		13
Total post-modification TDR net finance receivables	$	206	$	1	$	17	$	224
Number of TDR accounts	29,395		157		364		29,916
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	47	$	7	$	21	$	75
Post-modification TDR net finance receivables:
Rate reduction	$	31	$	6	$	17	$	54
Other (c)	12		—		5		17
Total post-modification TDR net finance receivables	$	43	$	6	$	22	$	71
Number of TDR accounts	8,365		721		385		9,471

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	232
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	5
Post-modification TDR net finance receivables	$	5
Number of TDR accounts	122
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	113

(c) “Other” modifications primarily include forgiveness of principal or interest.

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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, 2017
TDR net finance receivables (b)	$	88	$	—	$	4	$	92
Number of TDR accounts	14,935		—		101		15,036
Year Ended December 31, 2016
TDR net finance receivables (b) (c)	$	24	$	—	$	3	$	27
Number of TDR accounts	3,684		19		61		3,764
Year Ended December 31, 2015
TDR net finance receivables (b)	$	8	$	2	$	3	$	13
Number of TDR accounts	1,649		147		46		1,842

(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, 2017
TDR net finance receivables	$	2
Number of TDR accounts	53
Year Ended December 31, 2016
TDR net finance receivables	$	2
Number of TDR accounts	30
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17

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

(c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

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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, 2017
Balance at beginning of period	$	666		$	—		$	19		$	1		$	686
Provision for finance receivable losses	941			—			6			—			947
Charge-offs	(1,041		)	—			(5		)	(1		)	(1,047		)
Recoveries	102			—			3			1			106
Balance at end of period	$	668		$	—		$	23		$	1		$	692
Year Ended December 31, 2016
Balance at beginning of period	$	538		$	4		$	46		$	1		$	589
Provision for finance receivable losses	906			14			9			—			929
Charge-offs	(843		)	(17		)	(11		)	(1		)	(872		)
Recoveries	65			3			5			1			74
Other (a)	—			(4		)	(30		)	—			(34		)
Balance at end of period	$	666		$	—		$	19		$	1		$	686
Year Ended December 31, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	629			67			13			2			711
Charge-offs	(257		)	(78		)	(18		)	(3		)	(356		)
Recoveries	37			12			5			1			55
Other (b)	(1		)	—			—			—			(1		)
Balance at end of period	$	538		$	4		$	46		$	1		$	589

(a) Other consists of:

•     the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in

connection with the sale of our equity interest in the SpringCastle Joint Venture; and

•     the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance

receivable held for sale during 2016.

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

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The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:

(dollars in millions)	Personal Loans			Real Estate Loans			Retail Sales Finance			Total
December 31, 2017
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	528		$	2		$	1		$	531
Purchased credit impaired finance receivables	6			9			—			15
TDR finance receivables	134			12			—			146
Total	$	668		$	23		$	1		$	692
Finance receivables:
Collectively evaluated for impairment	$	14,276		$	57		$	6		$	14,339
Purchased credit impaired finance receivables	182			22			—			204
TDR finance receivables	317			49			—			366
Total	$	14,775		$	128		$	6		$	14,909
Allowance for finance receivable losses as a percentage of finance receivables	4.52		%	18.66		%	9.91		%	4.64		%
December 31, 2016
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	568		$	—		$	1		$	569
Purchased credit impaired finance receivables	29			8			—			37
TDR finance receivables	69			11			—			80
Total	$	666		$	19		$	1		$	686
Finance receivables:
Collectively evaluated for impairment	$	13,026		$	76		$	11		$	13,113
Purchased credit impaired finance receivables	353			24			—			377
TDR finance receivables	152			44			—			196
Total	$	13,531		$	144		$	11		$	13,686
Allowance for finance receivable losses as a percentage of finance receivables	4.92		%	13.31		%	4.42		%	5.01		%

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

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7. Finance Receivables Held for Sale

We report finance receivables held for sale of $132 million at December 31, 2017 and $153 million at December 31, 2016, which are carried at the lower of cost or fair value and consist entirely of real estate loans. At December 31, 2017 and 2016, the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale.

See Note 3 for more information regarding our accounting policy for finance receivables held for sale.

SPRINGCASTLE PORTFOLIO

During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio from held for investment to held for sale and simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $167 million.

PERSONAL LOANS

During 2015, we transferred $608 million of personal loans from held for investment to held for sale. On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million.

REAL ESTATE LOANS

On November 30, 2016, we transferred $50 million of real estate loans from held for investment to held for sale. In connection with the December 2016 Real Estate Loan Sale, we sold a portfolio of first and second lien mortgage loans with a carrying value of $58 million and recorded a net loss in other revenues of less than $1 million.

On June 30, 2016, we transferred $257 million of real estate loans from held for investment to held for sale. In connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $250 million and recorded a net loss in other revenues of $4 million.

We did not have any other material transfer activity to or from finance receivables held for sale during 2017, 2016 or 2015.

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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, 2017
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	28	$	—	$	—		$	28
Obligations of states, municipalities, and political subdivisions	135		—		—			135
Certificates of deposit and commercial paper	60		—		—			60
Non-U.S. government and government sponsored entities	126		—		(1		)	125
Corporate debt	941		12		(5		)	948
Mortgage-backed, asset-backed, and collateralized:
RMBS	100		—		(1		)	99
CMBS	88		—		(1		)	87
CDO/ABS	96		—		—			96
Total bonds	1,574		12		(8		)	1,578
Preferred stock (a)	15		—		(1		)	14
Common stock (a)	21		2		—			23
Other long-term investments	1		—		—			1
Total (b)	$	1,611	$	14	$	(9	)	$	1,616
December 31, 2016
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	31	$	—	$	—		$	31
Obligations of states, municipalities, and political subdivisions	145		1		(1		)	145
Non-U.S. government and government sponsored entities	119		—		(1		)	118
Corporate debt	1,024		8		(7		)	1,025
Mortgage-backed, asset-backed, and collateralized:
RMBS	101		—		(1		)	100
CMBS	109		—		(1		)	108
CDO/ABS	102		—		—			102
Total bonds	1,631		9		(11		)	1,629
Preferred stock (a)	17		—		(1		)	16
Common stock (a)	16		1		—			17
Other long-term investments	2		—		—			2
Total (b)	$	1,666	$	10	$	(12	)	$	1,664

(a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016, which is classified as a restricted investment and carried at cost.

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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, 2017
Bonds:
U.S. government and government sponsored entities	$	21	$	—		$	3	$	—		$	24	$	—
Obligations of states, municipalities, and political subdivisions	65		—			20		—			85		—
Non-U.S. government and government sponsored entities	89		(1		)	13		—			102		(1		)
Corporate debt	387		(3		)	93		(2		)	480		(5		)
RMBS	40		—			25		(1		)	65		(1		)
CMBS	40		—			38		(1		)	78		(1		)
CDO/ABS	48		—			26		—			74		—
Total bonds	690		(4		)	218		(4		)	908		(8		)
Preferred stock	3		—			7		(1		)	10		(1		)
Common stock	3		—			—		—			3		—
Other long-term investments	1		—			—		—			1		—
Total	$	697	$	(4	)	$	225	$	(5	)	$	922	$	(9	)
December 31, 2016
Bonds:
U.S. government and government sponsored entities	$	18	$	—		$	—	$	—		$	18	$	—
Obligations of states, municipalities, and political subdivisions	99		(1		)	2		—			101		(1		)
Non-U.S. government and government sponsored entities	55		(1		)	1		—			56		(1		)
Corporate debt	416		(6		)	8		(1		)	424		(7		)
RMBS	74		(1		)	1		—			75		(1		)
CMBS	66		(1		)	5		—			71		(1		)
CDO/ABS	64		—			3		—			67		—
Total bonds	792		(10		)	20		(1		)	812		(11		)
Preferred stock	6		—			8		(1		)	14		(1		)
Common stock	2		—			1		—			3		—
Total	$	800	$	(10	)	$	29	$	(2	)	$	829	$	(12	)

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

On a lot basis, we had 1,369 and 1,331 investment securities in an unrealized loss position at December 31, 2017 and 2016, respectively. We do not consider the 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, 2017, we had 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 2017, we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues. During each of the 2016 and 2015 periods, other-than-temporary impairment credit losses were immaterial.

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There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities for the 2017, 2016, and 2015 periods.

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

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Proceeds from sales and redemptions	$	508		$	518		$	429
Realized gains	$	15		$	16		$	15
Realized losses	(1		)	(1		)	(1		)
Net realized gains	$	14		$	15		$	14

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 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	$	224	$	225
Due after 1 year through 5 years	530		531
Due after 5 years through 10 years	335		334
Due after 10 years	207		200
Mortgage-backed, asset-backed, and collateralized securities	282		284
Total	$	1,578	$	1,574

Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.

The fair value of securities on deposit with third parties totaled $537 million and $465 million at December 31, 2017 and 2016, respectively.

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TRADING AND OTHER SECURITIES

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

(dollars in millions)
December 31,	2017		2016
Fixed maturity other securities:
Bonds
Non-U.S. government and government sponsored entities	$	1	$	1
Corporate debt	68		85
Mortgage-backed, asset-backed, and collateralized:
RMBS	1		1
CMBS	—		1
CDO/ABS	4		5
Total bonds	74		93
Preferred stock	6		6
Total	$	80	$	99

The mark-to-market and net 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,	2017			2016		2015
Mark-to-market gains (losses) on trading and other securities held at year end	$	(1	)	$	1	$	—
Net realized gains (losses) on trading and other securities sold or redeemed during the year	—			7		(3		)
Total	$	(1	)	$	8	$	(3	)

Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016.

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9. Goodwill and Other Intangible Assets

GOODWILL

Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016
Balance at beginning of period	$	1,422	$	1,440
Adjustments to purchase price allocation*	—		(18		)
Balance at end of period	$	1,422	$	1,422

* See Note 2 for details regarding this transaction.

Goodwill was recorded at the OMFH subsidiary level. We did not record any impairments to goodwill during 2017 and 2016.

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, 2017
Customer relationships	$	223	$	(92	)	$	131
Trade names	220		—			220
VOBA	141		(90		)	51
Licenses	37		—			37
Other	12		(12		)	—
Total	$	633	$	(194	)	$	439
December 31, 2016
Customer relationships	$	223	$	(58	)	$	165
Trade names	220		—			220
VOBA	141		(74		)	67
Licenses	37		—			37
Other	12		(10		)	2
Total	$	633	$	(142	)	$	491

Amortization expense totaled $52 million in 2017, $70 million in 2016, and $16 million in 2015. 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
2018	$	42
2019	39
2020	38
2021	32
2022	3

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10. Other Assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2017		2016
Deferred tax assets	$	139	$	180
Ceded insurance reserves	95		102
Prepaid expenses and deferred charges	89		89
Fixed assets, net	67		128
Other investments	29		52
Current tax receivable	13		20
Cost basis investments	11		11
Receivables from parent and affiliates	4		76
Other	34		32
Total	$	481	$	690

* Fixed assets were net of accumulated depreciation of $120 million at December 31, 2017 and $247 million at December 31, 2016. The decrease in fixed assets is primarily related to the contribution of SFMC in the form of a dividend. See Note 12 for more information regarding this transaction.

11. Transactions with Affiliates

SUBSERVICING AGREEMENT

Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017, 2016, and 2015.

INVESTMENT MANAGEMENT AGREEMENT

Logan Circle provides investment management services for our investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017, 2016, and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress.

See Note 2 for more information regarding this transaction.

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12. Related Party Transactions

AFFILIATE LENDING

Note Receivable from Parent

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 2018 and does not expect to demand payment from SFI in 2018. The note receivable from SFI totaled $391 million at December 31, 2017 and $285 million at December 31, 2016. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.87% at December 31, 2017. Interest revenue on the note receivable from SFI totaled $23 million during 2017, $19 million during 2016, and $15 million during 2015, which we report in interest income on notes receivable from parent and affiliates.

INTERCOMPANY AGREEMENTS

Dividend of SFMC to SFI

On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million, respectively, on the contribution date.

The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition.

Agreements with OGSC

OGSC, as successor to SFMC and SGSC, is a party to the following three intercompany agreements:

Services Agreement. OGSC provides the following services to various affiliates under a service agreement: 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 to OGSC are equal to 100% of the allocated cost of providing the services. We believe these allocations are reasonable among the entities receiving the services. In addition to the services noted above, OGSC assumed the services provided by SFMC, which primarily consist of providing operating staff and field management for our branches. During 2017, 2016, and 2015, we recorded $460 million, $243 million, and $224 million, respectively, of service fee expenses, which are included in other operating expenses.

License Agreement.As a result of the merger of SFMC and SGSC noted above, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated. The monthly license fee payable by SGSC for its use of the information technology systems and software was 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 was 100% of the actual costs incurred by SFMC. Amounts recorded by us under this license agreement totaled $1 million in 2017 and $6 million in 2016 and 2015, respectively, and are included as a contra expense to other operating expenses.

Building Lease Agreement. In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement whereby SFMC leased six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other charges, was terminated effective April 5, 2017. As a result, SFMC’s rent charged to SGSC was $1 million during 2017 and $4 million during 2016 and 2015, respectively, which is included as a contra expense to other operating expenses.

Agreements with OCLI

Loan Referral Fees. OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During 2017 and 2016, these fees were $56 million and $17 million, respectively. Certain costs incurred by OCLI to provide these services are included in deferred origination costs.

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Loan Purchase and Sale Agreements. From time to time, OCLI enters into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sells certain personal loans and continues to service the loans.

During the fourth quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $2 million for an aggregate purchase price of $2 million. OCLI does not service these loans.

During the third quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $4 million for an aggregate purchase price of $4 million. OCLI does not service these loans.

During the second quarter of 2016, OCLI had sold personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million. OCLI continues to service these loans. During 2017 and 2016, SFC recorded $2 million and $3 million, respectively, of service fee expenses for these personal loans.

See Note 10 and Note 16 regarding receivables and payables from affiliates and parent.

Capital Contribution to SFC

During 2015, Independence received a capital contribution of $1.1 billion from OMH in connection with the OneMain Acquisition. In conjunction with the retrospective inclusion of Independence in the financial results of the Company as described in Footnote 2 above, we have reflected this capital contribution as a contribution to the Company.

During 2016, SFC received a capital contribution of $10 million from SFI to satisfy an interest payment required by the Junior Subordinated Debenture.

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13. Long-term Debt

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

	December 31, 2017				December 31, 2016
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior debt	$	14,878	$	15,436	$	13,787	$	14,340
Junior subordinated debt	172		189		172		158
Total	$	15,050	$	15,625	$	13,959	$	14,498

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

	Years Ended December 31,						At December 31,
	2017		2016		2015		2017		2016
Senior debt	5.73	%	5.60	%	6.56	%	5.56	%	5.80	%
Junior subordinated debt	6.41		12.26		12.26		6.37		12.26
Total	5.74		5.67		6.65		5.57		5.88

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2017 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.04% - 6.94%			5.25% - 8.25%			3.11%
2018	—			700			—		700
2019	—			696			—		696
2020	—			1,299			—		1,299
2021	—			1,446			—		1,446
2022	—			1,000			—		1,000
2023-2067	—			1,175			350		1,525
Securitizations (b)	8,711			—			—		8,711
Total principal maturities	$	8,711		$	6,316		$	350	$	15,377
Total carrying amount	$	8,688		$	6,190		$	172	$	15,050
Debt issuance costs (c)	$	(24	)	$	(30	)	$	—	$	(54	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 3.11% as of December 31, 2017. Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00%.

(b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017, there were no amounts drawn under our revolving conduit facilities. See Note 14 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $20 million at December 31, 2017 and are reported in other assets.

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SFC’s Medium-Term Note Issuances

5.625% Senior Notes Due 2023

On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the “5.625% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis.

SFC used a portion of the net proceeds from the sale of the 5.625% SFC Notes to repay at maturity approximately $557 million aggregate principal amount of its existing 6.90% Medium-Term Notes. SFC intends to use the remaining net proceeds from the sale of the 5.625% SFC Notes for general corporate purposes, which may include additional debt repurchases and repayments.

6.125% Senior Notes Due 2022

On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis.

On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price.

SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes.

8.25% Senior Notes Due 2020

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under the SFC Base Indenture, as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture” and, collectively with the SFC Base Indenture and the SFC First Supplemental Indenture, the SFC Third Supplemental Indenture, and the SFC Fourth Supplemental Indenture thereto, the “Indenture”), pursuant to which OMH provided a guarantee of the 8.25% SFC notes on an unsecured basis.

SFC used a portion of the proceeds from the sale of the 8.25% SFC Notes to repurchase approximately $600 million aggregate principal amount of its existing senior notes that were scheduled to mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased new 8.25% SFC Notes in the offering. SFC used the remaining net proceeds for general corporate purposes.

The 5.625% SFC Notes, 6.125% SFC Notes and 8.25% SFC Notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries.

The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund.

The Indenture contain covenants that, among other things, (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them were to occur, would permit or require the principal of and accrued interest on the SFC Notes to become, or to be declared, due and payable.

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GUARANTY AGREEMENTS

5.625% SFC Notes

On December 8, 2017, OMH entered into the SFC Fourth Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.625% SFC Notes. As of December 31, 2017, $875 million aggregate principal amount of the 5.625% SFC Notes were outstanding.

6.125% SFC Notes

On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of December 31, 2017, $1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding.

8.25% SFC Notes

On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of December 31, 2017, $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding.

5.25% SFC Notes

On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of December 31, 2017, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

Other SFC Notes

On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consist of the following:

• 8.25% Senior Notes due 2023

• 7.75% Senior Notes due 2021

• 6.00% Senior Notes due 2020; and

• the Junior Subordinated Debenture;

The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2017, approximately $1.6 billion aggregate principal amount of the Other SFC Notes were outstanding.

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

OMFH 6.75% Notes and 7.25% Notes Indenture

On December 11, 2014, OMFH and certain of its subsidiaries entered into the OMFH Indenture, among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of the OMFH Notes. The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries, other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2017, $1.5 billion aggregate principal amount of the OMFH Notes were outstanding.

On November 8, 2016, OMH entered into the OMFH Second Supplemental Indenture, pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations

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under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company.

On December 8, 2017, OMFH provided notice to note holders to redeem all $700 million outstanding principal amount of the 2019 OMFH Notes on January 8, 2018, at a redemption price equal to 103.375%, plus accrued and unpaid interest to the redemption date. See Note 25 for more detail on this redemption.

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

DEBT COVENANTS

SFC Debt Agreements

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 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, 2017, SFC was in compliance with all of the covenants under its debt agreements.

Junior Subordinated Debenture

In January of 2007, SFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60-year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 3.11% as of December 31, 2017. Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00%.

Pursuant to the terms of the Junior Subordinated Debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated 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 Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated 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.

Based upon SFC’s financial results for the 12 months ended December 31, 2017, a mandatory trigger event did not occur with respect to the interest payment due in January of 2018, as SFC was in compliance with both required ratios discussed above.

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OMFH Debt Agreements

None of OMFH’s debt agreements require OMFH or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, the OMFH Indenture does contain a number of covenants that limit, among other things, OMFH’s ability and the ability of most of its subsidiaries to incur additional debt; create liens securing certain debt; pay dividends on or make distributions in respect of its capital stock or make investments or other restricted payments; create restrictions on the ability of its restricted subsidiaries to pay dividends to OMFH or make certain other intercompany transfers; sell certain assets; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and enter into certain transactions with affiliates. The OMFH Indenture also contains customary events of default which would permit the trustee or the holders of the OMFH Notes to declare the OMFH Notes to be immediately due and payable if not cured within applicable grace periods, including the nonpayment of principal, interest or premium, if any, when due; violation of covenants and other agreements contained in the OMFH Indenture; payment default after final maturity or cross acceleration of certain material debt; certain bankruptcy and insolvency events; material judgment defaults; and the failure of any guarantee of the notes, other than in accordance with the terms of the OMFH Indenture or such guarantee. On November 8, 2016, OMH agreed to fully, unconditionally, and irrevocably guarantee the OMFH Notes.

As of December 31, 2017, OMFH was in compliance with all of the covenants under its debt agreements.

14. Variable Interest Entities

CONSOLIDATED VIES

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 asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns.

The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. In addition, with respect to each financing transaction that is subject to the risk retention requirements of Section 941 of the Dodd-Frank Act, we retain at least 5% of the balance of each class of debt obligations and at least 5% of the residual interest in each VIE which, collectively, represents 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default.

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We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its 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,	2017		2016
Assets
Cash and cash equivalents	$	4	$	3
Finance receivables:
Personal loans	9,769		9,509
Allowance for finance receivable losses	465		501
Restricted cash and restricted cash equivalents	482		552
Other assets	20		14
Liabilities
Long-term debt	$	8,688	$	8,240
Other liabilities	15		16

SECURITIZED BORROWINGS

Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes.

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Our securitized borrowings at December 31, 2017 consisted of the following:

(dollars in millions)	Issue Amount *		Current Note Amounts Outstanding *		Current Weighted Average Interest Rate		Original Revolving Period	Issue Date	Maturity Date
Consumer Securitizations:
SLFT 2015-A	$	1,163	$	1,163	3.47	%	3 years	02/26/2015	11/2024
SLFT 2015-B	314		314		3.78	%	5 years	04/07/2015	05/2028
SLFT 2016-A (a)	532		500		3.10	%	2 years	12/14/2016	11/2029
SLFT 2017-A (b)	652		619		2.98	%	3 years	06/28/2017	07/2030
OMFIT 2014-2	1,185		320		4.16	%	2 years	07/30/2014	09/2024
OMFIT 2015-1	1,229		1,229		3.74	%	3 years	02/05/2015	03/2026
OMFIT 2015-2	1,250		750		3.40	%	2 years	05/21/2015	07/2025
OMFIT 2015-3	293		293		4.21	%	5 years	09/29/2015	11/2028
OMFIT 2016-1 (c)	500		459		4.01	%	3 years	02/10/2016	02/2029
OMFIT 2016-2 (d)	890		816		4.50	%	2 years	03/23/2016	03/2028
OMFIT 2016-3 (e)	350		317		4.33	%	5 years	06/07/2016	06/2031
OMFIT 2017-1 (f)	947		900		2.66	%	2 years	09/06/2017	09/2032
Total consumer securitizations			7,680
Auto Securitization:
ODART 2016-1 (g)	754		188		2.91	%	—	07/19/2016	Various
ODART 2017-1 (h)	300		268		2.61	%	1 year	02/01/2017	Various
ODART 2017-2 (i)	605		575		2.63	%	1 year	12/11/2017	Various
Total auto securitizations			1,031
Total secured structured financings			$	8,711

* Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts.

(a) SLFT 2016-A Securitization. We initially retained $32 million of the asset-backed notes.

(b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes.

(c) OMFIT 2016-1 Securitization.We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold.

(d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold.

(e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes.

(f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes.

(g) ODART 2016-1 Securitization. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes.

(h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes.

(i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes.

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Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million, which excluded $33 million for the Class D Notes owned by Twenty First Street Funding, LLC, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption.

Call of 2014-1 Notes. On November 20, 2017, we exercised our right to redeem the 2014-1 Notes for a redemption price of $81 million. The outstanding principal balance of the asset-backed notes was $81 million on the date of the optional redemption.

REVOLVING CONDUIT FACILITIES

As of December 31, 2017, our borrowings under conduit facilities consisted of the following:

(dollar in millions)	Note Maximum Balance		Amount Drawn		Revolving Period End	Backed by Loans Acquired from Subsidiaries of	Due and Payable (a)
First Avenue Funding, LLC	$	250	$	—	June 2018	SFC - auto loans	(b)
Seine River Funding, LLC	500		—		December 2019	SFC - personal loans	December 2022
OneMain Financial B6 Warehouse Trust	600		—		February 2019	OMFH - personal loans	February 2021
Rocky River Funding, LLC	250		—		September 2019	OMFH - personal loans	October 2020
OneMain Financial Funding VII, LLC	650		—		October 2019	OMFH - personal loans	November 2021
Thur River Funding, LLC	350		—		June 2020	SFC - personal loans	February 2027
OneMain Financial Funding IX, LLC	600		—		June 2020	OMFH - personal loans	July 2021
Mystic River Funding, LLC	850		—		September 2020	SFC - personal loans	October 2023
Fourth Avenue Auto Funding, LLC	250		—		September 2020	SFC - auto loans	October 2021
OneMain Financial Auto Funding I, LLC	750		—		October 2020	OMFH - auto loans	November 2027
Total	$	5,050	$	—

(a) The date following the revolving period, that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full.

(b) For First Avenue Funding, LLC, principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue Funding, LLC.

During the 2017 period we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above:

	Termination Date
Midbrook 2013-VFN1 Trust	4/13/2017
OneMain Financial B5 Warehouse Trust	4/13/2017
Sumner Brook 2013-VFN1 Trust	6/29/2017
Whitford Brook 2014-VFN1 Trust	7/14/2017
OneMain Financial B3 Warehouse Trust	7/14/2017
Springleaf 2013-VFN1 Trust	9/28/2017
Second Avenue Funding LLC	9/29/2017
OneMain Financial B4 Warehouse Trust	11/8/2017

VIE INTEREST EXPENSE

Other than our retained interest in certain debt obligations issued by VIEs and residual interests in the remaining consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $323 million in 2017, $341 million in 2016, and $216 million in 2015.

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DECONSOLIDATED VIES

As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt.

15. Insurance

INSURANCE RESERVES

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

(dollars in millions)
December 31,	2017		2016
Finance receivable related:
Payable to OMH:
Unearned premium reserves	515		508
Claim reserves	75		78
Subtotal (a)	590		586
Payable to third-party beneficiaries:
Unearned premium reserves	99		98
Benefit reserves	103		105
Claim reserves	18		20
Subtotal (b)	220		223
Non-finance receivable related:
Unearned premium reserves	81		86
Benefit reserves	375		388
Claim reserves	61		60
Subtotal (b)	517		534
Total	$	1,327	$	1,343

(a) Reported as a contra-asset to net finance receivables.

(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 assumed from non-affiliated insurance companies totaled $325 million and $333 million at December 31, 2017 and 2016, respectively.

Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $95 million and $102 million at December 31, 2017 and 2016, respectively.

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Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable):

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	158		$	177		$	70
Less reinsurance recoverables	(26		)	(26		)	(22		)
Net balance at beginning of period	132			151			48
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition	—			—			104
Additions for losses and loss adjustment expenses incurred to:
Current year	188			203			83
Prior years *	5			(20		)	5
Total	193			183			88
Reductions for losses and loss adjustment expenses paid related to:
Current year	(115		)	(124		)	(63		)
Prior years	(78		)	(78		)	(26		)
Total	(193		)	(202		)	(89		)
Foreign currency translation adjustment	(1		)	—			—
Net balance at end of period	131			132			151
Plus reinsurance recoverables	23			26			26
Balance at end of period	$	154		$	158		$	177

* Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017, primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies (ii) a redundancy in the prior years’ net reserves of $20 million at December 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed.

Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

											At December 31, 2017
(dollars in millions)	2013 (a)		2014 (a)		2015 (a)		2016 (a)		2017		Incurred-but- not-reported Liabilities (b)	Cumulative Number of Reported Claims	Cumulative Frequency (c)
Credit Insurance
Accident Year
2013	$	140	$	127	$	125	$	124	$	124	—	50,295	2.7	%
2014	—		145		132		130		131		3	51,776	2.7	%
2015	—		—		138		129		129		8	52,505	2.8	%
2016	—		—		—		138		135		20	51,558	2.8	%
2017	—		—		—		—		136		59	39,329	2.2	%
Total									$	655

(a) Unaudited.

(b) Includes expected development on reported claims.

(c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force.

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Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

(dollars in millions)	2013 *		2014 *		2015 *		2016 *		2017
Credit Insurance
Accident Year
2013	$	68	$	105	$	115	$	121	$	124
2014	—		71		110		121		128
2015	—		—		71		109		121
2016	—		—		—		75		115
2017	—		—		—		—		77
Total									$	565
All outstanding liabilities before 2013, net of reinsurance									—
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	90

* Unaudited.

The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows:

(dollars in millions)
December 31,	2017		2016 *		2015 *
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:
Credit insurance	$	90	$	96	$	105
Other short-duration insurance lines	22		20		25
Total	112		116		130
Reinsurance recoverable on unpaid claims:
Other short-duration insurance lines	20		22		22
Insurance lines other than short-duration	22		20		25
Total gross liability for unpaid claims and claim adjustment expense	$	154	$	158	$	177

* Unaudited.

We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. For the long-tailed Excess & Surplus products, which have a longer period of time before claims are paid, unpaid claim liabilities are estimated by a third party and reviewed by our appointed actuary using statistical analyses, including analysis of trends in loss severity and frequency.

There have been no significant changes in methodologies or assumptions during 2017.

Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017, were as follows:

Years	1		2		3		4		5
Credit insurance	55.4	%	29.4	%	8.9	%	4.8	%	2.5	%

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STATUTORY ACCOUNTING

Springleaf and OneMain insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana DOI and the Texas DOI, respectively, which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and 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,	2017		2016		2015
Property and casualty
Yosemite	$	19	$	11	$	15
Triton	31		14		3
Life and health
Merit	$	37	$	20	$	(1	)
AHL	34		71		11

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

(dollars in millions)
December 31,	2017		2016
Property and casualty
Yosemite	$	42	$	63
Triton	170		139
Life and health
Merit	$	79	$	133
AHL	130		215

Springleaf and OneMain insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI and the Texas DOI, respectively. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2017 and 2016, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels.

DIVIDEND RESTRICTIONS

Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. State law restricts the amounts that Merit and Yosemite may pay as dividends without prior notice to the Indiana DOI and the amounts that AHL and Triton may pay as dividends without prior notice to the Texas DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas 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 or Texas DOI prior to its payment. The maximum ordinary dividends for an Indiana or Texas 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 or Texas DOI prior to its payment. These approved dividends are called “extraordinary dividends.” AHL and Triton paid extraordinary dividends to OMFH totaling $111 million during 2017,

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$105 million during 2016 and $68 million of ordinary dividends subsequent to the effective closing of the OneMain Acquisition in 2015. Merit and Yosemite paid extraordinary dividends to SFC totaling $125 million, $63 million, and $100 million during 2017, 2016, and 2015, respectively.

16. Other Liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2017		2016
Payables to parent and affiliates *	$	189	$	39
Accrued expenses and other liabilities	79		93
Accrued interest on debt	58		61
Salary and benefit liabilities	31		45
Insurance liabilities	12		14
Loan principal warranty reserve	8		14
Retirement plans	5		31
Other	28		43
Total	$	410	$	340

* Payables to parent and affiliates at December 31, 2017 primarily consisted of payable to OGSC for services provided to SFC under its

intercompany service agreements. See Note 12 for further information regarding SFC’s intercompany agreements.

17. Capital Stock

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

Par value and shares authorized at December 31, 2017 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,	2017	2016	2017	2016
Shares issued and outstanding	—	—	10,160,021	10,160,021

During 2016, SFC received capital contributions from SFI totaling $10 million to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt.

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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, 2017
Balance at beginning of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Other comprehensive income before reclassifications	14			3			4			21
Reclassification adjustments from accumulated other comprehensive loss	(9		)	—			—			(9		)
Balance at end of period	$	4		$	(1	)	$	3		$	6
Year Ended December 31, 2016
Balance at beginning of period	$	(14	)	$	(19	)	$	—		$	(33	)
Other comprehensive income before reclassifications	23			15			3			41
Reclassification adjustments from accumulated other comprehensive loss	(10		)	—			(4		)	(14		)
Balance at end of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(18		)	(6		)	(4		)	(28		)
Reclassification adjustments from accumulated other comprehensive loss	(8		)	—			—			(8		)
Balance at end of period	$	(14	)	$	(19	)	$	—		$	(33	)

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,	2017			2016			2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	15		$	12
Income tax effect	(5		)	(5		)	(4		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	9			10			8
Unrealized gains on foreign currency translation adjustments:
Reclassification from accumulated other comprehensive income (loss) to other revenues	—			4			—
Total	$	9		$	14		$	8

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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 IRS. AHL, an insurance subsidiary of SFC, is not an eligible company under Internal Revenue Code Section 1504 and therefore, files separate federal life insurance tax returns. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH.

The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico and the U.S. Virgin Islands. 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, 2017, the Company had no undistributed foreign earnings.

Components of income (loss) before income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016		2015
Income (loss) before income tax expense (benefit) - U.S. operations	$	380	$	380	$	(208	)
Income before income tax expense - foreign operations	15		17		12
Total	$	395	$	397	$	(196	)

Components of income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016			2015
Current:
Federal	$	190	$	210		$	80
Foreign	2		1			1
State	8		21			5
Total current	200		232			86
Deferred:
Federal	34		(92		)	(192		)
Foreign *	—		5			—
State	9		(18		)	(16		)
Total deferred	43		(105		)	(208		)
Total	$	243	$	127		$	(122	)

* Deferred foreign income taxes were less than $1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above.

Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico and the U.S. Virgin Islands. During the 2016 and 2015 periods, expense from foreign income taxes also included United Kingdom operations.

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

Years Ended December 31,	2017		2016		2015
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Impact of Tax Act	21.69		—		—
State income taxes, net of federal	2.63		0.48		7.62
Return to provision adjustment	0.81		0.26		0.89
Excess tax benefit on share-based compensation	0.33		(0.18	)	—
Tax impact of United Kingdom subsidiary liquidation	—		(0.54	)	—
Non-controlling interests	—		(2.49	)	22.87
Nondeductible compensation	—		—		(2.78	)
Other, net	1.09		(0.66	)	(1.14	)
Effective income tax rate	61.55	%	31.87	%	62.46	%

The effective income tax rate for 2017, 2016, and 2015 differed from the statutory federal income tax rate primarily due to the recognition of the impact of the Tax Act, effects of the non-controlling interest in the previously owned SpringCastle Portfolio and state income taxes. The effective income 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 statutory federal income tax rate of (2.49)% and 22.87% in 2016 and 2015, respectively.

The difference in the effective income tax rate in 2017 as compared to 2016 is primarily due to the recognition of the impact of the Tax Act which increased our 2017 effective income tax rate by 21.69% as compared to 2016. As a result of the Tax Act we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. The difference in the impact on the effective income tax rate due to non-controlling interest in 2016 as compared to 2015 is due to the fact that the net income attributable to non-controlling interest was a smaller percentage of the total income (loss) in 2016 as compared to 2015.

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

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Balance at beginning of year	$	16		$	15		$	4
Increases in tax positions for current years	1			2			10
Increases in tax positions for prior years	—			—			4
Lapse in statute of limitations	(2		)	(1		)	—
Settlements with tax authorities	—			—			(1		)
Decreases in tax positions for prior years	—			—			(2		)
Balance at end of year	$	15		$	16		$	15

Our gross unrecognized tax benefits include related interest and penalties. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 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 years 2011 to 2013 by the IRS. We are also under examination of various states for the years 2011 to 2016. Management believes it has adequately provided for taxes for such years.

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Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2017			2016
Deferred tax assets:
Allowance for loan losses	$	146		$	246
State taxes, net of federal	65			58
Mark-to-market	55			55
Pension/employee benefits	5			19
Acquisition costs	6			6
Federal and foreign net operating losses and tax attributes	5			4
Insurance reserves	3			—
Legal and warranty reserve	2			6
Other intangibles	2			1
Other	9			9
Total	298			404
Deferred tax liabilities:
Debt fair value adjustment	44			90
Goodwill	41			37
Deferred loan fees	14			12
Discount - debt exchange	11			16
Deferred insurance commissions	2			2
Impact of tax accounting method change	—			38
Insurance Reserves	—			2
Other	5			1
Total	117			198
Net deferred tax assets before valuation allowance	181			206
Valuation allowance	(44		)	(29		)
Net deferred tax assets	$	137		$	177

The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. The decrease of our net deferred tax asset is mainly attributable to recording of an adjustment as of December 31, 2017 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act.

During 2016, we liquidated our United Kingdom operations. As such, there are no net operating loss carryforwards (and no offsetting valuation allowances) related to our United Kingdom operations at December 31, 2016.

At December 31, 2017, we had state net operating loss carryforwards of $704 million, compared to $750 million at December 31, 2016. The state net operating loss carryforwards expire between 2018 and 2037. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $44 million and $29 million at December 31, 2017 and 2016, 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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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
2018	$	52
2019	40
2020	30
2021	20
2022	11
2023+	14
Total	$	167

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 $77 million in 2017, $80 million in 2016, and $36 million in 2015.

LEGAL CONTINGENCIES

In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our 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 evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims.

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

At December 31, 2017, our reserve for sales recourse obligations totaled $8 million, which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish an additional reserve for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction.

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The activity in our reserve for sales recourse obligations was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	13		$	15		$	24
Recourse losses	(1		)	—			(2		)
Provision for recourse obligations, net of recoveries *	(4		)	(2		)	(7		)
Balance at end of period	$	8		$	13		$	15

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

At December 31, 2017, there were no material recourse requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When 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.

21. Benefit Plans

PENSION PLANS

As noted in Note 12 Related Party Transactions, the Company contributed SFMC, a former subsidiary of SFC to SFI in the form of a dividend. All assets and liabilities of SFMC were transferred including the net pension liabilities and any other obligations related to the Springleaf Financial Services Retirement Plan, a noncontributory defined benefit plan, the Springleaf Financial Services Excess Retirement Income Plan, an unfunded defined benefit plan, and the Supplemental Executive Retirement Income Plan, an unfunded defined benefit plan, to OMH. The projected net pension obligation related to these plans as of December 31, 2016 was $25 million.

The CommoLoCo Retirement Plan, a noncontributory defined benefit plan, which had a projected net pension obligation as of December 31, 2016 of $6 million, was retained by the Company.

The CommoLoCo Retirement Plan, which is subject to the provisions of the Puerto Rico tax code, was frozen effective December 31, 2012. 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. The fair value of plan assets net of expense for the CommoLoCo retirement Plan totaled $12 million as of December 31, 2017 and the projected benefit obligation totaled $17 million. The projected net pension obligation related to the CommoLoco Retirement Plan was $5 million.

22. Share-Based Compensation

OMNIBUS INCENTIVE PLAN

In 2013, OMH adopted the 2013 Omnibus Incentive Plan, which was amended and restated effective as of May 25, 2016, under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. The amendment and restatement of the Omnibus Plan (i) extended the term of the Omnibus Plan from October 2023 to May 2026 and (ii) limited the number of cash and equity-based awards under the Omnibus Plan valued at more than $500,000 to non-employee directors during the calendar year.

As of December 31, 2017, 13,199,096 shares of common stock were reserved for issuance under the Omnibus Plan, including 1,411,236 shares subject to outstanding equity awards. 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, RSUs and RSAs, stock appreciation rights, 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.

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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. 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 2017, 2016, and 2015 was $27.85, $26.14, and $47.44, respectively. The total fair value of service-based awards that vested during 2017, 2016, and 2015 was $18 million, $10 million, and $7 million, respectively.

The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	1,382,920		$	35.86
Granted	407,184		27.85
Vested	(575,322	)	31.86
Forfeited	(73,172	)	38.10
Unvested at December 31, 2017	1,141,610		34.87		1.91

Performance-based Awards

During 2017, 2016 and 2015, OMH awarded 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, 2017. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2017, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2017, 2018, and 2019; 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 filing date of this Annual Report on Form 10-K 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 canceled, and all expense recognized to that date is reversed.

Prior to the OneMain Acquisition, none of the performance targets related to certain PRSUs issued in 2014 were deemed probable of occurring. Subsequent to the OneMain Acquisition, the targets were re-evaluated and the 100% performance targets were deemed probable of occurring. Accordingly in 2015, we recorded a cumulative catch-up expense of $6 million, which is included in acquisition-related transaction and integration expenses. During the fourth quarter of 2016, the Compensation Committee determined that the PRSU performance targets were 100% achieved. Accordingly, a portion of the PRSU awards vested immediately, with the remaining shares subject to vesting upon meeting stated service requirements.

The weighted average grant date fair value of performance-based awards issued in 2017 and 2015 was $24.98 and $34.45, respectively. No performance shares were granted during 2016. The total fair value of performance-based awards that vested during 2017 and 2016 was $2 million and $4 million, respectively. No performance-based awards vested in 2015.

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The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	407,948		$	25.94
Granted	90,072		24.98
Vested	(92,000	)	24.78
Forfeited	(136,394	)	25.70
Unvested at December 31, 2017	269,626		26.14		3.78

Following the contribution of SFMC to SFI, share-based compensation expense is primarily incurred by OGSC and subsequently allocated to SFC by OMGS. As of December 31, 2017, there was no unrecognized compensation expense. See Note 12 for information regarding the dividend of SFMC to SFI.

Total share-based compensation expense, net of forfeitures, for all stock-based awards directly incurred by SFC amounted to $5 million in 2017, $8 million in 2016 and $2 million in 2015. The total income tax benefit recognized for stock-based compensation was $2 million in 2017, $3 million in 2016 and $1 million in 2015.

Initial Stockholder Incentive Units

In the fourth quarter of 2015, certain executives of the Company surrendered a portion of their incentive units in the Initial Stockholder 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 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 in 2015, 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 2015 related to the incentive units with a capital contribution offset such that the impact to overall shareholder’s equity was neutral. No expense was recognized for these awards during 2017 or 2016.

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23. Segment Information

Our segments coincide with how our businesses are managed. At December 31, 2017, our two segments included:

• Consumer and Insurance — We originate and service personal loans and offer credit insurance (life insurance, disability insurance, involuntary unemployment insurance, and collateral protection insurance) and non-credit insurance through our branch network and our centralized operations. We also offer home and auto membership plans of an unaffiliated company. Our branch network conducts business in 44 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is located near an existing branch, 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, our centralized operations originate the loan.

• Acquisitions and Servicing — SFI services the SpringCastle Portfolio. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. Unless SFI is terminated, SFI will continue to provide the servicing for these loans pursuant to a servicing agreement, which SFI services as unsecured loans because the liens are subordinated to superior ranking security interests. See Note 2 for information regarding the SpringCastle Interest Sale and the acquisition and disposition of the SpringCastle Portfolio.

The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i)

our liquidating real estate loan portfolio as discussed below, (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation), (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016.

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

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 OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, 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 (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods).

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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	Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance and Other - The Company has securitization debt 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. 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 Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and
	l Consumer and Insurance - receives remainder of unallocated average debt.
	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 $208 million for Other.
	For the period first quarter 2015 to the OneMain Acquisition
	Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance.
	Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represented the following:
	l  Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and
	l  Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments.
Provision for finance receivable losses	Directly correlated with specific segment, except for allocations related to personal loans and retail in 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:
	l  Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt.
	l  Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt.
Acquisition-related transaction and integration expenses	Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided.
Other expenses	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.

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

• Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs, and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and reestablishes interest income recognition on a historical cost basis;

• Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis;

• Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis;

• Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio;

• Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis;

• Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and

• Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition.

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			Other (a)			Eliminations		Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2017
Interest income	$	3,296	$	—		$	23		$	—	$	(132	)	$	3,187
Interest expense	765		—			21			—		30			816
Provision for finance receivable losses	955		—			7			—		(15		)	947
Net interest income (loss) after provision for finance receivable losses	1,576		—			(5		)	—		(147		)	1,424
Other revenues (b)	549		—			23			—		(32		)	540
Acquisition-related transaction and integration expenses	66		—			6			—		(3		)	69
Other expenses	1,458		2			11			—		29			1,500
Income (loss) before income tax expense (benefit)	$	601	$	(2	)	$	1		$	—	$	(205	)	$	395
Assets (c)	$	16,793	$	—		$	680		$	—	$	2,172		$	19,645

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(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Other (a)			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2016
Interest income	$	3,314	$	102	$	51		$	—		$	(371	)	$	3,096
Interest expense	738		20		43			—			55			856
Provision for finance receivable losses	908		14		6			—			1			929
Net interest income (loss) after provision for finance receivable losses	1,668		68		2			—			(427		)	1,311
Net gain on sale of SpringCastle interests	—		167		—			—			—			167
Other revenues (b)	609		—		(16		)	—			(6		)	587
Acquisition related transaction and integration expenses	100		1		27			—			(20		)	108
Other expenses	1,461		16		29			—			54			1,560
Income before income taxes	716		218		(70		)	—			(467		)	397
Income before income tax attributable to non-controlling interests	—		28		—			—			—			28
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	716	$	190	$	(70	)	$	—		$	(467	)	$	369
Assets (c)	$	15,783	$	—	$	590		$	—		$	1,967		$	18,340
At or for the Year Ended December 31, 2015
Interest income	$	1,470	$	455	$	76		$	—		$	(91	)	$	1,910
Interest expense	242		87		268			(5		)	123			715
Provision for finance receivable losses	346		68		(1		)	—			298			711
Net interest income (loss) after provision for finance receivable losses	882		300		(191		)	5			(512		)	484
Other revenues	274		5		19			(5		)	(18		)	275
Acquisition related transaction and integration expenses	16		1		48			—			(3		)	62
Other expenses	768		61		50			—			14			893
Income (loss) before income tax expense (benefit)	372		243		(270		)	—			(541		)	(196		)
Income before income tax attributable to non-controlling interests	—		127		—			—			—			127
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	372	$	116	$	(270	)	$	—		$	(541	)	$	(323	)
Assets	$	15,875	$	1,784	$	1,415		$	—		$	2,322		$	21,396

(a) Real Estate segment has been combined with “Other” for the prior period.

(b) Other revenues reported in “Other” primarily includes interest income on the SFC’s note receivable from SFI. See Note 12 for further information on the notes receivable from parent and affiliates.

(c) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 12 for further information on the note receivable from parent.

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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 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 presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2017
Assets
Cash and cash equivalents	$	904	$	54	$	—	$	958	$	958
Investment securities	36		1,654		7		1,697		1,697
Net finance receivables, less allowance for finance receivable losses	—		—		15,607		15,607		14,217
Finance receivables held for sale	—		—		139		139		132
Notes receivable from parent	—		391		—		391		391
Restricted cash and restricted cash equivalents	498		—		—		498		498
Other assets (a)	—		4		12		16		16
Liabilities
Long-term debt	$	—	$	15,625	$	—	$	15,625	$	15,050
Other liabilities (b)	—		189		—		189		189
December 31, 2016
Assets
Cash and cash equivalents	$	480	$	73	$	—	$	553	$	553
Investment securities	31		1,724		9		1,764		1,764
Net finance receivables, less allowance for finance receivable losses	—		—		13,857		13,857		13,000
Finance receivables held for sale	—		—		159		159		153
Notes receivable from parent	—		285		—		285		285
Restricted cash and restricted cash equivalents	568		—		—		568		568
Other assets (a)	—		77		34		111		113
Liabilities
Long-term debt	$	—	$	14,498	$	—	$	14,498	$	13,959
Other liabilities (b)	—		39		—		39		39

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(a) Other assets includes commercial mortgage loans, escrow advance receivables, and receivables from parent and affiliates at December 31, 2017 and commercial mortgage loans, escrow advance receivables, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets at December 31, 2016.

(b) Consists of payables to parent and affiliates.

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 (a)
December 31, 2017
Assets
Cash equivalents in mutual funds	$	688	$	—	$	—	$	688
Cash equivalents in securities	—		54		—		54
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		28		—		28
Obligations of states, municipalities, and political subdivisions	—		135		—		135
Non-U.S. government and government sponsored entities	—		60		—		60
Certificates of deposit and commercial paper	—		125		—		125
Corporate debt	—		946		2		948
RMBS	—		99		—		99
CMBS	—		87		—		87
CDO/ABS	—		95		1		96
Total bonds	—		1,575		3		1,578
Preferred stock	7		7		—		14
Common stock	23		—		—		23
Other long-term investments	—		—		1		1
Total available-for-sale securities (b)	30		1,582		4		1,616
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		66		2		68
RMBS	—		1		—		1
CMBS	—		—		—		—
CDO/ABS	—		4		—		4
Total bonds	—		72		2		74
Preferred stock	6		—		—		6
Total other securities	6		72		2		80
Total investment securities	36		1,654		6		1,696
Restricted cash in mutual funds	484		—		—		484
Total	$	1,208	$	1,708	$	6	$	2,922

(a) Due to the insignificant activity within the Level 3 assets during 2017, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

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(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017, which is carried at cost.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3 (a)
December 31, 2016
Assets
Cash equivalents in mutual funds	$	286	$	—	$	—	$	286
Cash equivalents in securities	—		73		—		73
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		31		—		31
Obligations of states, municipalities, and political subdivisions	—		145		—		145
Non-U.S. government and government sponsored entities	—		118		—		118
Corporate debt	—		1,025		—		1,025
RMBS	—		100		—		100
CMBS	—		108		—		108
CDO/ABS	—		98		4		102
Total bonds	—		1,625		4		1,629
Preferred stock	8		8		—		16
Common stock	17		—		—		17
Other long-term investments	—		—		2		2
Total available-for-sale securities (b)	25		1,633		6		1,664
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		83		2		85
RMBS	—		1		—		1
CMBS	—		1		—		1
CDO/ABS	—		5		—		5
Total bonds	—		91		2		93
Preferred stock	6		—		—		6
Total other securities	6		91		2		99
Total investment securities	31		1,724		8		1,763
Restricted cash in mutual funds	553		—		—		553
Total	$	870	$	1,797	$	8	$	2,675

(a) Due to the insignificant activity within the Level 3 assets during 2016, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016, which is carried at cost.

We had no transfers between Level 1 and Level 2 during 2017 and 2016.

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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, 2017
Assets
Real estate owned	$	—	$	—	$	6	$	6	$	3
At or for the Year Ended December 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	159	$	159	$	4
Real estate owned	—		—		5		5		2
Total	$	—	$	—	$	164	$	164	$	6

* The fair value information presented in the table is as of the date the fair value adjustment was recorded.

We wrote down certain finance receivables held for sale reported in our Other segment to their fair value during the second quarter of 2016 and recorded the writedowns in other revenues.

We wrote down certain real estate owned reported in our Other segment to their fair value less cost to sell during 2017 and 2016 and recorded the writedowns in other revenues. 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.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned 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.

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 was as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2017	December 31, 2016
Finance receivables held for sale	Income approach	Market value for similar type loan transactions to obtain a price point	*	*
Real estate owned	Market approach	Third-party valuation	*	*

* We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable.

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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 certain cash equivalents, 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, for both non-impaired and purchased credit impaired finance receivables, is 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 Restricted Cash Equivalents

The carrying amount of restricted cash and restricted cash equivalents approximates fair value.

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Notes Receivable from Parent

The carrying amount of the notes receivable from parent approximates the fair value because the notes are payable on a demand basis prior to their due dates and the interest rates on these notes adjust 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 base our estimate of the fair value on independent third-party valuations at the time we take 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, 2017, 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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25. Subsequent Events

Redemption of OMFH 2019 Notes

On December 8, 2017, the Company issued a notice of redemption to redeem all $700 million outstanding principal amount of OMFH’s 6.75% Senior Notes due 2019 at a redemption price equal to 103.375%, plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018. In connection with the redemption, we recognized approximately $1 million of net loss on repurchases and repayments of debt for the three months ended March 31, 2018.

Apollo-Värde Transaction

On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with the Initial Stockholder and OMH to acquire 54,937,500 shares or approximately 40.6% of the outstanding shares of OMH common stock from the Initial Stockholder, representing the entire holdings of OMH stock beneficially owned by Fortress. This transaction closed June 25, 2018.

26. Selected Quarterly Financial Data (Unaudited)

Our selected quarterly financial data for 2017 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	853	$	806	$	772	$	756
Interest expense	204		207		203		202
Provision for finance receivable losses	229		242		233		243
Other revenues	139		149		117		135
Other expenses	382		401		386		400
Income before income taxes	177		105		67		46
Income taxes	161		44		20		18
Net income	$	16	$	61	$	47	$	28

Our selected quarterly financial data for 2016 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	766	$	767	$	739	$	824
Interest expense	201		215		214		226
Provision for finance receivable losses	256		261		218		194
Other revenues	138		151		158		307
Other expenses	409		396		416		447
Income before income taxes	38		46		49		264
Income taxes	—		16		20		91
Net income	38		30		29		173
Net income attributable to non-controlling interests	—		—		—		28
Net income attributable to Springleaf Finance Corporation	$	38	$	30	$	29	$	145

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Item 9A. Controls and Procedures.    

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of December 31, 2017, we carried out an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer. Based on our evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2017, to provide the reasonable assurance described above.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, and has conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2017, based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in “Internal Control - Integrated Framework” (2013). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2017.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the fourth quarter of 2017, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART IV

Item 15. Exhibits and Financial Statement Schedules.    

(a) (1) The following consolidated financial statements of Springleaf Finance Corporation and its subsidiaries are included in Part II - Item 8:

Consolidated Balance Sheets, December 31, 2017 and 2016

Consolidated Statements of Operations, years ended December 31, 2017, 2016, and 2015

Consolidated Statements of Comprehensive Income (Loss), years ended December 31, 2017, 2016, and 2015

Consolidated Statements of Shareholder’s Equity, years ended December 31, 2017, 2016, and 2015

Consolidated Statements of Cash Flows, years ended December 31, 2017, 2016, and 2015

Notes to Consolidated Financial Statements

(2)    Financial Statement Schedules:

Schedule I - Condensed Financial Information of Registrant is included in Part IV - Item 15(c) below.

(3) Exhibits:

Exhibits are listed in the Exhibit Index below.

(b) Exhibits

The exhibits required to be included in this portion of Part IV - Item 15(b) are listed in the Exhibit Index to this report.

(c) Schedule I - Condensed Financial Information of Registrant

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Schedule I — Condensed Financial Information of Registrant

SPRINGLEAF FINANCE CORPORATION

Condensed Balance Sheets

(dollars in millions)
December 31,	2017		2016
Assets
Cash and cash equivalents	$	148	$	96
Investment in subsidiaries	7,062		7,107
Notes receivable from parent and affiliates	2,334		1,992
Restricted cash	9		5
Other assets	159		188
Total assets	$	9,712	$	9,388
Liabilities and Shareholder’s Equity
Long-term debt	$	4,824	$	4,162
Intercompany note payable	436		409
Deferred and accrued taxes	46		164
Other liabilities	1,004		1,380
Total liabilities	6,310		6,115
Shareholder’s equity	3,402		3,273
Total liabilities and shareholder’s equity	$	9,712	$	9,388

See Notes to Condensed Financial Statements.

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SPRINGLEAF FINANCE CORPORATION

Condensed Statements of Operations and Comprehensive Income (Loss)

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Interest income on notes receivable from parent and affiliates	131			104			56
Interest expense	430			459			502
Net interest expense	(299		)	(355		)	(446		)
Other revenues:
Investments	2			1			13
Net loss on repurchases and repayments of debt	(26		)	(14		)	—
Other revenues	6			4			—
Total other revenues	(18		)	(9		)	13
Other expenses	41			9			1
Income (loss) before income tax expense (benefit)	(358		)	(373		)	(434		)
Provision for (benefit from) income taxes	(118		)	(138		)	(160		)
Equity in undistributed net income (loss) from subsidiaries	392			477			73
Net income (loss)	152			242			(201		)
Other comprehensive income (loss), net of tax	12			27			(36		)
Comprehensive income (loss)	$	164		$	269		$	(237	)

See Notes to Condensed Financial Statements.

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SPRINGLEAF FINANCE CORPORATION

Condensed Statements of Cash Flows

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Net cash provided by (used for) operating activities	$	(601	)	$	557		$	173
Cash flows from investing activities
Cash advances on notes receivable with parent and affiliates	(4,322		)	(5,827		)	(2,256		)
Payments received on notes receivable with parent and affiliates	3,980			4,683			2,968
Distributions from subsidiaries	413			499			326
Capital contribution to subsidiary (a)	—			—			(3,393		)
Sale of available-for-sale securities	—			10			2,306
Net cash provided by (used for) investing activities	71			(635		)	(49		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	1,861			995			—
Repayment of long-term debt	(1,302		)	(1,020		)	(798		)
Proceeds from intercompany note payable	27			24			392
Repayments on intercompany note payable	—			(1		)	(7		)
Net cash provided by (used for) financing activities	586			(2		)	(413		)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	56			(80		)	(289		)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	101			181			470
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	$	157		$	101		$	181
Supplemental cash flow information
Cash and cash equivalents	$	148		$	96		$	178
Restricted cash and restricted cash equivalents	9			5			3
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$	157		$	101		$	181
Supplemental non-cash activities
Non-cash contribution of Independence	$	—		$	—		$	1,100

(a) Contribution to Springleaf Financial Cash Services, Inc. a wholly owned subsidiary of SFC, for funding its intercompany note to Independence. On November 12, 2015, Independence borrowed $3.4 billion under the note to fund a portion of the purchase price for the OneMain Acquisition.

See Notes to Condensed Financial Statements.

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SPRINGLEAF FINANCE CORPORATION

Notes to Condensed Financial Statements

1. Accounting Policies    

Springleaf Finance Corporation (“SFC”) records its investments in subsidiaries at cost plus the equity in undistributed (overdistributed) comprehensive income from subsidiaries since the date of incorporation or, if purchased, the date of the acquisition. The condensed financial statements of the registrant should be read in conjunction with SFC’s consolidated financial statements.

2. Related Party Transactions    

Notes Receivable from Affiliates

SFC provides funding to its parent, SFI, and to most of its subsidiaries for lending activities. SFC charges SFI and these subsidiaries for this funding based on SFC’s cost of funds plus a spread, as specified in the respective note agreements.

Notes receivable from parent and affiliates consisted of the following:

(dollars in millions)	December 31, 2017		December 31, 2016
SFC parent (SFI)	$	390	$	285
OMFH (a)	1,214		530
SCSI	539		950
Notes for subsidiary securitizations	191		227
Total	$	2,334	$	1,992

(a)SFC has, from time to time, amended the OMFH note to increase the maximum amount that may be advanced to OMFH. At December 31, 2017, the maximum amount that may be advanced totaled $1.6 billion.

Note Payable to Affiliate

On January 1, 2015, SFC entered into a note with Springleaf Acquisition Corporation (SAC), whereby SFC initially borrowed $374 million. The note was amended effective December 31, 2017 and, under the amended terms, is payable in full on December 31, 2020 with an aggregate amount outstanding not to exceed $500 million. Under the terms, SAC may request payment of the note and 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 borrower’s cost of funds rate plus 25 bps. At December 31, 2017 and 2016, $436 million and $409 million was drawn under the note, respectively. Interest expense on the note payable was $27 million and $24 million in 2017 and 2016, respectively and is reported in interest expense.

Other Assets

SFC has income tax receivable balances with its subsidiaries and affiliates under a tax sharing agreement. The balances for these amounts were $140 million and $187 million at December 31, 2017 and 2016, respectively and are included in other assets.

Other Liabilities

SFC and its direct and indirect subsidiaries incur obligations for various services including short term funding of loan originations from OGSC. These transactions are generally funded through intercompany clearing accounts that are centrally processed through OGSC which acts as a funding clearing house for the transactions between the various subsidiaries of SFC.  SFC’s payable to OGSC under this funding structure was $1.0 billion and $1.4 billion at December 31, 2017 and 2016 respectively and is included in other liabilities

130

3. Long-term Debt     

Principal maturities of long-term debt at December 31, 2017 were as follows:

(dollars in millions)
2018	—
2019	700
2020	1,300
2021	650
2022	1,000
2023-2067	1,525
Total principal maturities	$	5,175
Total carrying amount	$	4,824

See Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in this report for information regarding the following Guaranty Agreements:

• 5.625% SFC Notes

• 6.125% SFC Notes

• 8.25% SFC Notes

• 5.25% SFC Notes

• Other SFC Notes

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Exhibit Index    

Exhibit
2.1*	Stock Purchase Agreement, dated as of March 2, 2015, by and between Springleaf Holdings, Inc. and CitiFinancial Credit Company. Incorporated by reference to Exhibit 2.1 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on March 3, 2015.
2.2 *	Closing Letter Agreement, dated as of November 12, 2015, by and among Citifinancial Credit Company, Springleaf Holdings, Inc., and Independence Holdings, LLC. Incorporated by reference to Exhibit 2.2 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Annual Report on Form 10-K for the year ended December 31, 2015, filed on February 29, 2016.
2.3*	Purchase Agreement, dated as of March 31, 2016, by and among SpringCastle Holdings, LLC, Springleaf Acquisition Corporation, Springleaf Finance, Inc., NRZ Consumer LLC, NRZ SC America LLC, NRZ SC Credit Limited, NRZ SC Finance I LLC, NRZ SC Finance II LLC, NRZ SC Finance III LLC, NRZ SC Finance IV LLC, NRZ SC Finance V LLC, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P., and solely with respect to Section 11(a) and Section 11(g), NRZ SC America Trust 2015-1, NRZ SC Credit Trust 2015-1, NRZ SC Finance Trust 2015-1, and BTO Willow Holdings, L.P. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed on April 1, 2016.
2.4	Contribution Agreement, dated June 22, 2018, between Springleaf Finance Corporation and Springleaf Finance, Inc. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed on June 22, 2018
3.1	Amended and Restated Articles of Incorporation of Springleaf Finance Corporation (formerly American General Finance Corporation), as amended to date. Incorporated by reference to Exhibit 3a. to our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, filed on March 30, 2011.
3.2	Amended and Restated By-laws of Springleaf Finance Corporation (formerly American General Finance Corporation), as amended to date. Incorporated by reference to Exhibit 3b. to our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, filed on March 30, 2011.
Certain instruments defining the rights of holders of long-term debt securities of the Company are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Company hereby undertakes to furnish to the SEC, upon request, copies of any such instruments.
4.1	Junior Subordinated Indenture, dated as of January 22, 2007, from Springleaf Finance Corporation 9 formerly American General Finance Corporation) to Deutsche Bank Trust Company Americas, as Trustee. Incorporated by reference to Exhibit 4.2 to our Annual Report on Form 10-K for the period ended December 31, 2016, filed on February 21, 2017.
4.2	Indenture, dated as of May 29, 2013, between Springleaf Finance Corporation and Wilmington Trust, National Association, as trustee. Incorporated by reference to Exhibit 4.1 of our Current Report on Form 8-K filed on May 29, 2013.
4.3	Indenture, dated as of September 24, 2013, between Springleaf Finance Corporation and Wilmington Trust, National Association, as trustee. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on September 25, 2013.
4.4	Indenture, dated as of September 24, 2013, between Springleaf Finance Corporation and Wilmington Trust, National Association, as trustee. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on September 25, 2013.
4.5	Indenture, dated as of December 3, 2014, by Springleaf Finance Corporation, OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.), as Guarantor, and Wilmington Trust, National Association. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on December 3, 2014.
4.5.1	First Supplemental Indenture, dated as of December 3, 2014, by and among Springleaf Finance Corporation, OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.), as Guarantor, and Wilmington Trust, National Association, as Trustee. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on December 3, 2014.
4.5.2	Second Supplemental Indenture, dated as of April 11, 2016, by and among Springleaf Finance Corporation, OneMain Holdings, Inc., as Guarantor, and Wilmington Trust, National Association, as Trustee. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on April 11, 2016.
4.5.3	Third Supplemental Indenture, dated as of May 15, 2017, by and among Springleaf Finance Corporation, OneMain Holdings, Inc., as Guarantor, and Wilmington Trust, National Association, as Trustee. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on May 15, 2017.

132

Exhibit
4.5.4	Fourth Supplemental Indenture, dated as of December 8, 2017, by and among Springleaf Finance Corporation, OneMain Holdings, Inc., as Guarantor, and Wilmington Trust, National Association, as Trustee. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on December 8, 2017.
4.6	Indenture, dated as of December 11, 2014, among OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.), the guarantors from time to time parties thereto, and The Bank of New York Mellon, as trustee. Incorporated by reference to Exhibit 4.5 to Amendment No. 3 to Form S-1 of OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.) (File No. 333-199206) filed on February 11, 2015.
4.6.1	First Supplemental Indenture, dates as of May 21, 2015, among OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.), OMF HY, Inc. and The Bank of New York Mellon, as trustee. Incorporated by reference to Exhibit 4.7.1 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Annual Report on Form 10-K for the period ending December 31, 2016, filed on February 21, 2017.
4.6.2	Second Supplemental Indenture, dated as of November 8, 2016, among OneMain Financial Holdings, LLC (formerly OneMain Financial Holdings, Inc.), as Issuer, OMF HY, Inc., as Co-Obligor, OneMain Holdings, Inc., as Guarantor, and The Bank of New York Mellon, as Trustee. Incorporated by reference to Exhibit 4.7.2 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Annual Report on Form 10-K for the period ended December 31, 2016, filed on February 21, 2017.
10	Guaranty, dated as of December 30, 2013, by OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) in respect of Springleaf Finance Corporation’s 8.250% Senior Notes due 2023. Incorporated by reference to Exhibit 10.1 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on January 3, 2014.
10.1	Guaranty, dated as of December 30, 2013, by OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) in respect of Springleaf Finance Corporation’s 7.750% Senior Notes due 2021. Incorporated by reference to Exhibit 10.2 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on January 3, 2014.
10.2	Guaranty, dated as of December 30, 2013, by OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) in respect of Springleaf Finance Corporation’s 6.00% Senior Notes due 2020. Incorporated by reference to Exhibit 10.3 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on January 3, 2014.
10.3	Guaranty, dated as of December 30, 2013, by OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) in respect of Springleaf Finance Corporation’s 60-year junior subordinated debentures. Incorporated by reference to Exhibit 10.5 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on January 3, 2014.
10.4	Trust Guaranty, dated as of December 30, 2013, by OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) in respect of Springleaf Finance Corporation’s trust preferred securities. Incorporated by reference to Exhibit 10.6 to OneMain Holdings, Inc.’s (formerly Springleaf Holdings, Inc.) (File No. 1-36129) Current Report on Form 8-K filed on January 3, 2014.
12.1	Computation of ratio of earnings to fixed charges
23.1	Consent of PricewaterhouseCoopers LLP
31.1	Rule 13a-14(a)/15d-14(a) Certifications of the President and Chief Executive Officer of Springleaf Finance Corporation
31.2	Rule 13a-14(a)/15d-14(a) Certifications of the Executive Vice President and Chief Financial Officer of Springleaf Finance Corporation
32.1	Section 1350 Certifications
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 Shareholder’s Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.

* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon request.

133

EX-99.2

ONEMAINFINANCIALHOLDINGS, LLC AND SUBSIDIARIES

Financial Report as of and for the Ten Months Ended

October 31, 2015

TABLE OF CONTENTS

		Page
Item 1.	Consolidated Financial Statements
	Report of Independent Auditor	-1
	Consolidated Statement of Financial Position as of October 31, 2015	-3
	Consolidated Statement of Income for the ten months ended October 31, 2015	-5
	Consolidated Statement of Comprehensive Income for the ten months ended October 31, 2015	-6
	Consolidated Statement of Changes in Equity for the ten months ended October 31, 2015	-7
	Consolidated Statement of Cash Flows for the ten months ended October 31, 2015	-8
	Notes to Consolidated Financial Statements as of October 31, 2015 and for ten months ended October 31, 2015	-9

KPMG LLP

1 East Pratt Street

Baltimore, MD 21202-1128

Independent Auditors’ Report

The Board of Directors

OneMain Financial Holdings, LLC and subsidiaries:

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of OneMain Financial Holdings, LLC and subsidiaries, which comprise the consolidated statement of financial position as of October 31, 2015 and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows, for the 10-month period ended October 31, 2015, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(KPMG International), a Swiss entity.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of OneMain Financial Holdings, LLC and subsidiaries as of October 31, 2015, and the results of its operations and its cash flow, for the 10-month period then ended, in accordance with U.S. generally accepted accounting principles.

Baltimore, Maryland

February 10, 2016

-2

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Financial Position

(In millions of dollars, except share data)

	October 31, 2015
Assets
Cash and cash equivalents (including restricted cash of $383)	$	883
Investments (at fair value)	1,379
Consumer finance receivables:
Loans and accrued interest receivable	9,987
Unearned revenue and deferred costs	(1,456		)
Unearned premium and claim reserves	(409		)
Allowance for loan losses	(666		)
Net consumer finance receivables	7,456
Deferred tax assets, net	339
Intangible assets	62
Premises and equipment, net	91
Other assets	254
Total assets	$	10,464

The following table summarizes the assets of the variable interest entities (“VIEs”) that are included in the Consolidated Statement of Financial Position above. The assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs on the following page, and are in excess of those obligations. Additionally, the assets in the table below include third-party assets of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation.

	October 31, 2015
Assets
Cash and cash equivalents	$	383
Net consumer finance receivables	7,033
Other assets	14
Total assets	$	7,430

Refer to the Notes to Consolidated Financial Statements.

-3

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Financial Position (continued)

(In millions of dollars, except share data)

	October 31, 2015
Liabilities and equity
Related party debt	$	5
Revolving line of credit - related party	284
Revolving line of credit - third party	1,136
Long-term debt	6,181
Insurance policy and claim reserves	533
Accounts payable, accrued expenses and other liabilities	153
Total liabilities	8,292
Commitments and contingencies (Note 16)
Equity:
Common stock ($1.00 par value, 1,000 shares issued and authorized at October 31, 2015)	—
Additional paid-in capital	1,839
Retained earnings	314
Accumulated other comprehensive income	19
Total equity	2,172
Total liabilities and equity	$	10,464

The following table summarizes the liabilities of VIEs that are included in the Consolidated Statement of Financial Position above. The liabilities in the table below include third-party liabilities of consolidated VIEs only, and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts where creditors or beneficial interest holders have recourse to the general credit of OneMain Financial Holdings, LLC and subsidiaries.

	October 31, 2015
Liabilities
Revolving line of credit - related party	$	284
Revolving line of credit - third party	1,136
Long-term debt	4,697
Accounts payable, accrued expenses and other liabilities	8
Total liabilities	$	6,125

Refer to the Notes to Consolidated Financial Statements.

-4

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Income

(In millions of dollars, except share data)

	Ten Months Ended October 31,
	2015
Revenue
Finance interest and other charges	$	1,721
Investment revenue	47
Total interest revenue	1,768
Interest expense	271
Net interest revenue	1,497
Other non-interest revenue:
Insurance premiums	264
Realized gain on sales and impairments of investments, net	3
Other revenue	33
Total non-interest revenue	300
Total revenue, net of interest expense	1,797
Provisions for credit losses and for benefits and claims
Provision for credit losses	470
Policyholder benefits and claims	119
Total provisions for credit losses and for benefits and claims	589
Operating expenses
Compensation and benefits	257
Technology and communications	76
Occupancy	62
Advertising and marketing	78
Other operating	164
Total operating expenses	637
Income before income taxes	571
Provision for income taxes	210
Net income	$	361
Share data:
Weighted average shares outstanding	1,000
Earnings per share basic and diluted	$	361,410

Refer to the Notes to Consolidated Financial Statements.

-5

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income

(In millions of dollars)

	Ten Months Ended October 31,
	2015
Net income	$	361
Other comprehensive loss:
Net change in unrealized gains (losses) on investment securities, net of taxes	(18		)
Net change in foreign currency translation adjustment, net of taxes	(7		)
Total other comprehensive loss	(25		)
Comprehensive income	$	336

Refer to the Notes to Consolidated Financial Statements.

-6

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

(In millions of dollars, except share data)

				Additional paid-in capital			Retained earnings			Accumulated other comprehensive income (loss)			Total  equity
	Common stock
	Shares	Amount
Balance, January 1, 2015	1,000	$	—	$	1,846		$	43		$	44		$	1,933
Net income	—	—		—			361			—			361
Transfers to Parent	—	—		(7		)	—			—			(7		)
Dividends	—	—		—			(90		)	—			(90		)
Other comprehensive loss, net of taxes	—	—		—			—			(25		)	(25		)
Balance, October 31, 2015	1,000	$	—	$	1,839		$	314		$	19		$	2,172

Refer to the Notes to Consolidated Financial Statements.

-7

ONEMAIN FINANCIAL HOLDINGS, LLC AND SUBSIDIARIES

Consolidated Statement of Cash Flows

(In millions of dollars)

	Ten Months Ended
	October 31, 2015
Cash flows from operating activities
Net income	$	361
Adjustments to reconcile income to net cash from operating activities:
Net realized gain on sales of investments	(6		)
Impairments of investments	3
Provision for credit losses	470
Depreciation and amortization	61
Change in income taxes payable	(512		)
Net changes in other assets and liabilities	47
Net cash provided by operating activities	424
Cash flows from investing activities
Net increase in short-term investments	(45		)
Purchases of investments	(289		)
Proceeds from sales of investments	93
Proceeds from maturities of investments	210
Originations of consumer finance receivables(1)	(2,764		)
Repayments of consumer finance receivables	2,124
Purchases of premises and equipment	(25		)
Proceeds from sale of premises and equipment	13
Increase in restricted cash	(236		)
Net cash used in investing activities	(919		)
Cash flows from financing activities
Debt issuance costs	(35		)
Repayments of revolving line of credit - related party	(56		)
Draws on revolving line of credit - related party	340
Repayments of revolving line of credit - third party	(224		)
Draws on revolving line of credit - third party	1,360
Issuance of long-term debt, net	2,772
Net decrease in related party debt	(3,244		)
Dividends paid to Parent	(90		)
Net cash provided by financing activities	823
Increase in cash and cash equivalents	328
Cash and cash equivalents, beginning of period (excluding restricted cash of $147)	172
Cash and cash equivalents, end of period (excluding restricted cash of $383)	$	500
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	212
Income taxes	746
Supplemental schedule of non-cash investing and financing activities:
Transfers (to) from Parent	(7		)

  __________

(1) Originations of consumer finance receivables are presented net of payoffs on loans that were refinanced into a new loan.

Refer to the Notes to Consolidated Financial Statements.

-8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) Organization and Business

The accompanying Consolidated Financial Statements primarily include OneMain Financial Holdings, LLC ("OMFH")(formerly OneMain Financial Holdings, Inc.), a holding company, and its wholly owned subsidiaries OneMain Financial, Inc. (DE)(“OMFI”), American Health and Life Insurance Company (“AHL”) and Triton Insurance Company (“Triton”), (collectively “OneMain Financial Holdings, LLC and subsidiaries" or “the Company”). The Company is a wholly owned subsidiary of CitiFinancial Credit Company (“CCC” or “Parent”), which is a wholly owned subsidiary of Associates First Capital Corporation, an indirect subsidiary of Citigroup, Inc. (“Citigroup”).

On May 26, 2015, OneMain Financial Holdings, Inc. was converted to a limited liability company, or LLC, and renamed OneMain Financial Holdings, LLC. OneMain Financial Holdings, Inc. ownership interests were converted into OMFH units, which are presented as Common stock on the Consolidated Statement of Financial Position. The member has no liability to the Company or its creditors for obligations or liabilities of the Company. Refer to Note 17 for organizational changes subsequent to October 31, 2015.

The Company conducts its operations through two business segments - Lending and Insurance. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting, operating segments represent components of an entity where discrete financial information is available and for which the operating results are regularly reviewed by the chief operating decision maker to determine resources to be allocated to a segment and to assess its performance.

The Company’s Lending segment originates and services personal loans to consumers through a community branch-based network throughout the United States.

The Company’s Insurance segment, known as OneMain Solutions, underwrites policies to its customers and underwrites and reinsures policies covering customers of Citigroup affiliates. In addition, the Company is a full service administrator of debt protection products for customers of Citigroup affiliates. Refer to Note 15 for further information on the services provided to Citigroup affiliates.

Refer to Note 3 for additional information regarding the Company’s business segments.

On November 13, 2015, regulatory approvals were received to allow for the previously announced sale of the Company to OneMain Holdings, Inc. ("OMH")(formerly Springleaf Holdings, Inc.). The sale was completed on November 15, 2015. Refer to Note 17 for additional discussion.

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation

The Company's financial statements have been prepared on a consolidated basis and consolidate all of the Company’s subsidiaries. The Consolidated Financial Statements included herein may not be indicative of the Company’s financial position, results of operations, and cash flows in the future, and also may not be indicative of the financial position, results of operations and cash flows had the Company been a separate, stand-alone entity during the period presented.

The Consolidated Financial Statements as of October 31, 2015 and for the ten-month period ended October 31, 2015 have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All significant intercompany balances and transactions between the legal entities that comprise the Company have been eliminated.

Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. While management uses its best judgment in making estimates, actual amounts or results could differ from those estimates. Market conditions may increase the risk and complexity of the judgments in these estimates.

The Consolidated Financial Statements include expense allocations to and from affiliates for certain costs of support functions provided on a centralized basis within Citigroup. Such allocations primarily relate to employee benefits, technology, operations and global functions such as finance, human resources, legal and compliance. Management believes the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by the Company during the period presented. The allocations may not, however, reflect the expenses the Company

-9

would have incurred as a stand-alone company for the period presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure, which functions were outsourced or performed by employees and strategic decisions in various areas such as information technology and infrastructure. Refer to Note 15 for further discussion of these expense allocations.

Earnings per share is calculated as net income divided by the weighted average shares outstanding during the period. No securities or instruments have been issued that could convert to common stock and have a dilutive effect on earnings per share.

While the Company is included in the consolidated U.S. federal and certain state income tax returns of Citigroup, the income tax provision in the Consolidated Statement of Income has been calculated as if the Company filed separate U.S. federal and state tax returns.

The Company consolidates entities deemed to be VIEs when the Company is determined to be the primary beneficiary.

(b) Use of Estimates

Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. Such estimates are used in connection with certain fair value measurements. Refer to Note 14 for further discussions on estimates used in the determination of fair value. Moreover, estimates are significant in determining the amounts of other-than-temporary impairments (“OTTI”), provisions for probable and estimable losses that may arise from credit-related exposures, probable and estimable losses related to litigation and regulatory proceedings, insurance policy and claims reserves and tax reserves. While management uses its best judgment in making estimates, actual amounts or results could differ from those estimates. Current market conditions increase the risk and complexity of the judgments in these estimates.

(c) Cash and Cash Equivalents

Cash and cash equivalents include cash on deposit with banks and short-term, highly liquid investments with original maturities of three months or less. These short-term investments are carried at cost plus accrued interest, which approximates fair value. Restricted cash is restricted primarily for the use of the consolidated VIEs.

(d) Investments

Investments include fixed-income and equity securities. Fixed-income instruments primarily include mortgage-backed securities, corporate bonds, notes and redeemable preferred stocks. Equity securities include common and nonredeemable preferred stocks. All securities are classified as available-for-sale (“AFS”).

AFS securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and reported as a component of Accumulated other comprehensive income ("AOCI") on the Consolidated Statement of Financial Position until realized. Realized gains and losses from the sale of AFS securities are determined on a specific identification basis and are recorded in earnings.

Premiums and discounts on debt securities are amortized or accreted over the life of the related AFS security as an adjustment to yield using the effective interest method. Such amortization and accretion are classified in Investment revenue on the Consolidated Statement of Income. Dividend and interest income are recognized when earned and included in Investment revenue on the Consolidated Statement of Income. For investments in fixed-income securities, accrual of interest income is suspended for investments that are in default or when collection is doubtful.

The Consolidated Statement of Income reflect the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis. For AFS debt securities in a loss position that management has no intent to sell and believes that it is not likely to be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the rest of the fair value loss is classified in Accumulated other comprehensive income on the Consolidated Statement of Financial Position. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using cash flow projections and base assumptions. For equity securities deemed to be impaired, the entire fair value loss is recognized in earnings.

A decline in the market value of any AFS security below cost, that is deemed to be other-than-temporary, is recorded in earnings immediately. To determine whether impairment is other-than-temporary, the Company assesses each security for indications of credit impairment. Refer to Note 5 for further discussion on investments and OTTI.

-10

(e) Consumer Finance Receivables

Consumer finance receivables include loans which are reported at their outstanding unpaid principal balances, reduced by any charge-off, and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. In calculating net consumer finance receivables, consumer finance receivables are reduced by unearned revenue and deferred costs, allowance for loan losses and unearned insurance premium and claim reserves on certain collateral protection, credit life, credit involuntary unemployment ("IUI") and credit disability policies related to the loans. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to income over the lives of the related loans. All loans are held for investment.

Interest income accrual ceases for personal loans when payments are 90 days contractually past due. If payments are made on a personal loan that reduces the loan’s contractual delinquency status to less than 90 days contractually past due, the accrual of income resumes. Cash receipts on non-accruing loans are recorded either on a cash basis to income or entirely to the outstanding principal balance depending on the terms of the loan. Loans that have been modified to include a concession to a borrower who is in financial difficulty may not be accruing interest at the time of the modification. One or two payments under the new terms must be made to return the loan to accrual status, depending on the delinquency status. All borrowers are required to provide full income documentation and show ability to pay prior to a modification being granted.

Charge-off policies follow the general guidelines below:

• Personal loans are charged off at the earlier of: (1) 180 days contractually past due if there have been no payments within the last six months; or (2) 360 days contractually past due;

• Unsecured personal loans in bankruptcy are charged off in the month following 30 days contractual delinquency; and

• Personal loans secured by autos in bankruptcy are charged off at the earlier of: (1) 180 days contractually past due if there have been no payments within the last six months; or (2) 360 days contractually past due.

Charge-offs are recorded as a reduction to the allowance for loan losses and subsequent recoveries of previously charged-off amounts are credited to the allowance for loan losses.

Allowance for Loan Losses

An allowance for loan losses on consumer finance receivables is maintained at an amount that represents management’s best estimate of probable losses inherent in its existing receivables portfolios. Losses on consumer finance receivables are recognized when incurred. The Company evaluates the loan portfolios for impairment quarterly. The allowance for non-troubled debt restructured loans is determined in accordance with ASC 450-20, Loss Contingencies, and established via a process that estimates these probable losses based upon various analyses. This process includes migration analysis, in which historical delinquency and credit loss experience is applied to the current aging of the portfolio, along with analyses that reflect current and anticipated economic conditions, including changes in housing prices and unemployment trends.

Provisions for loan losses are direct charges to income in amounts sufficient to maintain the allowance at a level management determines to be adequate to cover losses inherent in the portfolio. The allowance fluctuates based upon continual review of the loan portfolio and changes in economic conditions. Changes to the allowance for loan losses are classified in Provision for credit losses on the Consolidated Statement of Income.

Separate valuation allowances are determined for impaired loans whose terms have been modified in a troubled debt restructuring (“TDR”). Long-term modification programs, as well as short-term (less than 12 months) modifications from January 1, 2011 that provide concessions (such as interest rate reductions) to borrowers in financial difficulty, are reported as TDRs. Short-term concessions granted prior to January 1, 2011 are not reported as TDRs.

The allowance for loan losses for TDRs is determined in accordance with ASC 310-10-35 considering all available evidence, including, as appropriate, the present value of the expected future cash flows of the loans discounted at the loans’ original effective interest rates. These expected cash flows incorporate modification program default rate assumptions.

Finance-Related Interest and Other Charges

Finance-related interest and other charges are recognized as income using the level-yield method. Fees received and direct costs incurred for the origination and renewal of loans are deferred and amortized over the contractual lives of the receivables as part of interest income. The remaining unamortized balances are reflected in interest income at the time that the receivables are paid in full or renewed, or reflected in credit losses when the receivables are partially or fully charged off. The Company considers all renewals that are not TDRs to be more than minor modifications. Therefore, the remaining unamortized

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balances relating to modifications that are not TDRs are reflected in interest income whenever a loan is renewed. Unamortized balances related to TDRs are included in the recorded investment of the TDR and no additional fees are assessed and no additional costs are deferred.

(f) Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of three to 10 years for equipment. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the useful life of five to 20 years or the term of the related lease.

Computer software and development costs incurred in connection with developing or obtaining computer software for internal use are capitalized and amortized over a useful life of two to 10 years.

Premises and equipment are tested for impairment annually and when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the asset.

(g) Intangible Assets

Intangible assets are comprised of the present value of future profits (“PVFP”) of purchased insurance contracts in the Insurance segment. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with ASC 944, Financial Services—Insurance.

(h) Insurance

Insurance Premiums

Premiums from short-duration insurance contracts are earned over the related contract period. Short-duration contracts primarily include collateral protection, credit life, credit disability, and credit IUI policies. Credit insurance premiums that are billed monthly are recognized as revenue when billed. The Company defers single premium credit insurance premiums in Unearned premium and claim reserves on the Consolidated Statement of Financial Position. Unearned premiums on U.S. credit insurance are recognized as revenue on credit life using the sum-of-digits or actuarial methods, on credit disability using one-third pro-rata plus two-thirds sum-of-digits, on credit IUI using the mean of pro-rata and sum-of-digits, and on other collateral protection using the pro-rata method. For Canadian credit insurance, credit life unearned premiums are recognized as revenue using the sum-of-digits method, for credit disability using the mean of pro-rata and sum-of-digits and for credit IUI using the pro-rata method.

Premiums from long-duration contracts are earned when due from policyholders. Long-duration contracts include term life, accidental death and hospital indemnity policies. Benefits and expenses are associated with premiums by means of the provision for future policy benefits, unearned premiums and the deferral and amortization of policy acquisition costs. Premiums from reinsurance assumed are earned over the related contract period.

Unearned premium, policy and claim reserves related to the Company's borrowers are netted and classified as contra-assets in Consumer finance receivables on the Consolidated Statement of Financial Position. Unearned premium, policy and claim reserves related to non-Company customers are classified as liabilities in Insurance policy and claim reserves on the Consolidated Statement of Financial Position.

Commissions on ancillary insurance products are recorded net of estimated refunds based on historical cancellation rates. These commissions are classified in Other revenue on the Consolidated Statement of Income.

Insurance Policy and Claim Reserves

The liabilities for future policy benefits for long-duration policies are calculated in accordance with principles set forth in ASC 944. Mortality, morbidity, lapse and yield assumptions are set at the time of issue for each issue year of business and are not changed in future valuation periods.

Included in insurance policy and claim reserves are unearned premiums for credit life, credit disability, credit IUI, and collateral protection insurance.

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Claim reserves for losses are based on claims experience, actual claims reported and estimates of claims incurred but not reported. Assumptions 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 the 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 Policyholder benefits and claims on the Consolidated Statement of Income in the period in which the estimates are changed.

Acquisition Costs

The Company defers insurance policy acquisition costs (primarily commissions on acquired blocks and premium taxes). The Company classifies deferred policy acquisition costs in Other assets on the Consolidated Statement of Financial Position and amortizes these costs at a policy level over the term of the related policies, whether directly written or reinsured. Deferred acquisition costs ("DAC") are subject to premium deficiency testing in accordance with ASC 944.

(i) Advertising

Advertising costs are expensed as incurred except for certain insurance direct mail and related expenses attributed to successful written premiums. These costs are capitalized in DAC, classified in Other assets on the Consolidated Statement of Financial Position and subject to premium deficiency testing in accordance with ASC 944.

(j) Income Taxes

The Company is included in the consolidated U.S. federal and state income tax returns of Citigroup, where applicable, but also files certain separate state and foreign income tax returns. The tax provision and current and deferred tax balances have been presented on a separate company basis as if the Company were a separate filer. The Company recognizes the current and deferred tax consequences of all transactions that have been recognized in the Consolidated Financial Statements using the provisions of the enacted tax laws. Deferred taxes are recorded for the future consequences of events that have been recognized in the Consolidated Financial Statements or tax returns. The Company is subject to the income tax laws of the United States and Canada, and the state and local jurisdictions in which it operates. These tax laws are complex and are subject to differing interpretations by the taxpayer and the relevant governmental taxing authorities. Disputes over interpretations of the tax laws may be subject to review and adjudication by the court systems of the various tax jurisdictions or may be settled with the taxing authority upon audit.

In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws. The Company must also make estimates about when, in the future, certain items will affect taxable income in the various tax jurisdictions, both domestic and foreign. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws and rates that will be in effect when the differences are expected to reverse. Deferred income tax expense or benefit represents the expected increase or decrease to future tax payments as these temporary differences reverse over time. Deferred tax assets are recognized subject to management’s judgment that realization is more-likely-than-not.

ASC 740, Income Taxes, sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. This interpretation uses a two-step approach wherein a tax benefit is recognized if a position is more-likely-than-not to be sustained. The amount of the benefit is then measured to be the highest tax benefit that is greater than 50% likely to be realized. ASC 740 also sets out disclosure requirements to enhance transparency of an entity’s tax reserves.

Refer to Note 11 to the Consolidated Financial Statements for a further discussion of the Company’s tax provision and related income tax assets and liabilities.

(k) Foreign Currency Translation

Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income on the Consolidated Statement of Financial Position.

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(l) Securitization

The Company securitizes personal loans from time to time. There are two key accounting determinations that must be made relating to securitizations; first, whether the securitization entity would be consolidated; and second, whether the transfer of financial assets to the entity is considered a sale under GAAP. If the securitization entity is a VIE, and the Company is determined to be the primary beneficiary, the VIE is consolidated. Refer to Note 13 for more information regarding VIEs.

Interests in the securitized and sold assets may be retained in the form of subordinated tranches, spread accounts and servicing rights. In the case of consolidated securitization entities, these retained interests are not reported on the Consolidated Statement of Financial Position. There were no such retained interests as of October 31, 2015. The securitized loans remain on the Consolidated Statement of Financial Position and the Company consolidates its securitization entities.

(m) Incentive Compensation

The Company’s executives and employees participate in the Citigroup programs described below to the extent they meet the eligibility criteria established by Citigroup. The Company makes cash payments to reimburse Citigroup for the cost of the awards when shares are delivered to participants (the payments are based on market value of the vested stock awards at such time or the spread realized by the employee on an option exercise). The Company recognizes compensation expense for the awards as described below.

Discretionary Annual Incentive Awards

Citigroup grants immediate cash bonus payments, deferred cash awards, stock payments and restricted and deferred stock awards as part of its discretionary annual incentive award program involving a large segment of Citigroup employees worldwide, including employees of the Company. Most of the shares of common stock issued by Citigroup as part of its equity compensation programs are to settle the vesting of the stock components of these awards.

Discretionary annual incentives are generally awarded in the first quarter of the calendar year based on the previous year’s performance. Awards valued at less than U.S. $100,000 (or local currency equivalent) are generally paid in the form of an immediate cash bonus. Pursuant to Citigroup policy and/or regulatory requirements, certain employees and officers are subject to mandatory deferrals of incentive pay and generally receive 25%-60% of their awards in a combination of restricted or deferred stock and deferred cash awards.

Deferred annual incentive awards are generally delivered as two awards—a restricted or deferred stock award under Citigroup’s Capital Accumulation Program (“CAP”) and a deferred cash award. The applicable mix of CAP and deferred cash awards may vary based on the employee’s minimum deferral requirement and the country of employment. In some cases, the entire deferral will be in the form of either a CAP or deferred cash award.

Subject to certain exceptions (principally, for retirement-eligible employees), continuous employment within Citigroup is required to vest in CAP and deferred cash awards. Post-employment vesting by retirement-eligible employees and participants who meet other conditions is generally conditioned upon their refraining from competition with Citigroup during the remaining vesting period, unless the employment relationship has been terminated by Citigroup under certain conditions.

Generally, the CAP and deferred cash awards vest in equal annual installments over three- or four-year periods. Vested CAP awards are delivered in shares of Citigroup common stock. Deferred cash awards are payable in cash and earn a fixed notional rate of interest that is paid only if and when the underlying principal award amount vests.

Unvested CAP and deferred cash awards made in January 2011 or later are subject to one or more clawback provisions that apply in certain circumstances, including in the case of employee risk-limit violations or other misconduct, or where the awards were based on earnings that were misstated. CAP awards made to certain employees in February 2013 and later, and deferred cash awards made to certain employees in January 2012, are subject to a formulaic performance-based vesting condition pursuant to which amounts otherwise scheduled to vest will be reduced based on the amount of any pre-tax loss in the participant’s business in the calendar year preceding the scheduled vesting date. For CAP awards made in February 2013 and later, a minimum reduction of 20% applies for the first dollar of loss.

In addition, deferred cash awards made to certain employees in February 2013 and later are subject to a discretionary performance-based vesting condition under which an amount otherwise scheduled to vest may be reduced in the event of a “material adverse outcome” for which a participant has “significant responsibility.” Deferred cash awards made to these employees in February 2014 and later are subject to an additional clawback provision pursuant to which unvested awards may

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be canceled if the employee engaged in misconduct or exercised materially imprudent judgment, or failed to supervise or escalate the behavior of other employees who did.

The compensation expense related to the discretionary annual incentive cash awards, which are paid immediately, was $7 million for the ten months ended October 31, 2015. This amount is classified in Compensation and benefits expense on the Consolidated Statement of Income.

Sign-on and Long-term Retention Awards

Stock awards, deferred cash awards and grants of stock options may be made at various times during the year as sign-on awards to induce new hires to join the Company or to high-potential employees as long-term retention awards.

Vesting periods and other terms and conditions pertaining to these awards tend to vary by grant. Generally, recipients must remain employed through the vesting dates to vest in the awards, except in cases of death, disability or involuntary termination other than for “gross misconduct.” These awards do not usually provide for post-employment vesting by retirement-eligible participants. Any stock option grants are for Citigroup common stock with exercise prices that are no less than the fair market value at the time of grant.

Stock Option Programs

Stock options have not been granted to Citigroup's employees as part of the annual incentive award programs since 2009.

Other Variable Incentive Compensation

Citigroup has various incentive programs globally that are used to motivate and reward performance primarily in the areas of sales, operational excellence and customer satisfaction. Participation in these plans is generally limited to employees who are not eligible for discretionary annual incentive awards. The compensation expense related to variable incentive compensation awards was $25 million for the ten months ended October 31, 2015 and is classified in Compensation and benefits expense on the Consolidated Statement of Income.

Summary

Recipients of Citigroup stock awards generally do not have any stockholder rights until shares are delivered upon vesting or exercise, or after the expiration of applicable required holding periods. Recipients of restricted or deferred stock awards and stock unit awards, however, may be entitled to receive dividends or dividend-equivalent payments during the vesting period. Recipients of restricted stock awards generally are entitled to vote the shares in their award during the vesting period. Once a stock award vests, the shares are freely transferable, unless they are subject to a restriction on sale or transfer for a specified period. Pursuant to a stock ownership commitment, certain executives have committed to holding most of their vested shares indefinitely.

The total expense recognized for stock awards represents the grant date fair value of such awards, which is generally recognized as a charge to income ratably over the vesting period, other than for awards to retirement-eligible employees and immediately vested awards. Whenever awards are made or are expected to be made to retirement-eligible employees, the charge to income is accelerated based on when the applicable conditions to retirement eligibility were or will be met. If the employee is retirement eligible on the grant date, or the award is vested at grant date, the entire expense is estimated and recognized in the year prior to grant. The compensation expense related to deferred stock and deferred cash awards was not material for any of the period presented.

(n) Retirement and Postemployment Benefits

The Company participates in several noncontributory defined benefit pension plans sponsored by Citigroup covering certain U.S. employees. Citigroup’s U.S. qualified defined benefit plan was frozen effective January 1, 2008 for most employees. Accordingly, no additional compensation-based contributions were credited to the cash balance portion of the plan for existing plan participants after 2007. However, certain employees covered under the prior final pay plan formula continue to accrue benefits. The Company also participates in a number of noncontributory, nonqualified pension plans. These plans, which are unfunded, provide supplemental defined pension benefits to certain U.S. employees. With the exception of a few employees covered under the prior final average pay formulas, the benefits under these plans were frozen in prior years. The allocated share of the related benefit for these pension plans was $7 million for the ten months ended October 31, 2015. This amount is classified in Compensation and benefits expense on the Consolidated Statement of Income.

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The Company also participates in postretirement health care and life insurance benefits offered by Citigroup to certain eligible U.S. retired employees. The allocated share of the related net expense is classified in Compensation and benefits expense on the Consolidated Statement of Income and was not material to the results of operations for the ten months ended October 31, 2015.

The Company also participates in postemployment plans sponsored by Citigroup that provide income continuation and health and welfare benefits to certain eligible U.S. employees on long-term disability. The allocated share of the related net expense was $1 million for the ten months ended October 31, 2015. This amount is classified in Compensation and benefits expense on the Consolidated Statement of Income.

Citigroup sponsors defined contribution plans in the United States and in certain non-U.S. locations, all of which are administered in accordance with local laws. The most significant defined contribution plan is the Citigroup 401(k) Plan in the U.S. Under the Citigroup 401(k) plan, eligible U.S. employees received matching contributions of up to 6% of their eligible compensation for October 31, 2015 subject to statutory limits. Additionally, for eligible employees whose eligible compensation is $100,000 or less, a fixed contribution of up to 2% of eligible compensation is provided. All Company contributions are invested according to participants’ individual elections. The expense allocated to the Company for the Citigroup 401(k) Plan amounted to approximately $13 million for the ten months ended October 31, 2015. This amount is classified in Compensation and benefits expense on the Consolidated Statement of Income and included in direct allocated costs. Refer to Note 15 for further discussion on direct allocated costs.

(o) Accounting Changes

Debt Issuance Costs

In April 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, to conform the presentation of debt issuance costs to that of debt discounts and premiums. Thus, the ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. 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. The Company elected to early adopt this new ASU as of September 30, 2015 and reported $35 million of debt issuance costs in Long-term debt on the Consolidated Statement of Financial Position as of October 31, 2015. The Company will continue to report fees paid to access its warehouse facility in Other assets on the Consolidated Statement of Financial Position. The adoption of this ASU did not have a material effect on the Company's Consolidated Financial Statements.

Push Down Accounting

In November 2014, the FASB issued ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting.

The amendments in the ASU provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. The amendments in this ASU are effective November 18, 2014.

In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115, to remove Securities and Exchange Commission (the “SEC”) staff guidance on pushdown accounting from the Accounting Standards Codification. The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own pushdown accounting guidance in November 2014. The ASU is effective immediately. The adoption of this ASU did not have an impact on the Company's Consolidated Financial Statements. The Company does not expect to apply pushdown accounting as a result of the acquisition discussed in Note 17, Subsequent Events.

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(p) Future Application of Accounting Standards

Short-Duration Contracts

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-09, Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts, which requires insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The ASU also requires insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements.

In addition, the ASU requires insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. The ASU is effective for the Company for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted.

The Company is currently evaluating the impact of the ASU on its disclosures and expects to elect early adoption.

Consolidation

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve certain areas of consolidation guidance for legal entities such as limited partnerships, limited liability companies, and securitization structures. The ASU will reduce the number of consolidation models. The ASU will be effective on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The Company is evaluating the effect of ASU No. 2015-02 on its financial statements upon its adoption on January 1, 2016 and does not expect to elect early adoption.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective on January 1, 2018. Early application is permitted for annual periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial statements.

Accounting for Financial Instruments—Credit Losses

In December 2012, the FASB issued a proposed ASU, Financial Instruments-Credit Losses. This proposed ASU, or exposure draft, was issued for public comment in order to allow stakeholders the opportunity to review the proposal and provide comments to the FASB and does not constitute accounting guidance until a final ASU is issued.

The exposure draft contains proposed guidance developed by the FASB with the goal of improving financial reporting about expected credit losses on loans, securities and other financial assets held by banks, financial institutions and other organizations. The exposure draft proposes a new accounting model intended to require earlier recognition of credit losses, while also providing additional transparency about credit risk.

The FASB’s proposed model would utilize an “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and other receivables at the time the financial asset is originated or acquired and adjusted each period for changes in expected credit losses. For available for sale ("AFS") securities where fair value is less than cost, impairment would be recognized in the allowance for credit losses and adjusted each period for changes in credit. This would replace the multiple existing impairment models in GAAP, which generally require that a loss be “incurred” before it is recognized.

The FASB’s proposed model represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for financial instruments. The impact of the FASB’s final ASU on the Company’s financial statements will be assessed when it is issued. The exposure draft does not contain a proposed effective date; this would be included in the final ASU, when issued.

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(3) Business Segments

The Company evaluates the results of its operations through two reportable segments: Lending and Insurance.

The Lending segment primarily originates, services and, from time to time, securitizes unsecured personal loans and personal loans secured by autos through its community-based branch network.

The Insurance segment writes and reinsures credit life, credit disability, credit involuntary unemployment insurance ("IUI"), collateral protection, term life, accidental death, and hospital indemnity policies.

The chief operating decision maker evaluates the operating results and performance of the Lending and Insurance segments through Income before income taxes on the Consolidated Statement of Income.

The following table summarizes certain information by segment: 

	Ten Months Ended October 31, 2015
	Net interest revenue		Operating expenses				Income before income taxes
(In millions of dollars)
Lending	$	1,450	$	573			$	463
Insurance	47		98				108
Intersegment eliminations and reclassifications	—		(34		)	(1)	—
Total	$	1,497	$	637			$	571

__________ 

(1) Represents commissions charged to the Insurance segment by the Lending segment for insurance products sold through the Lending branch network, which are eliminated in consolidation.

The following table summarizes total assets by segment: 

	Total assets
	October 31, 2015
(In millions of dollars)
Lending	$	9,288
Insurance	1,585
Intersegment eliminations and reclassifications(1)	(409		)
Total	$	10,464

__________

(1) Represents unearned premium and claim reserves related to the Company's customers that is managed as a liability for segment reporting purposes.

Most of the revenue generated by the Company’s business segments is derived from U.S. clients. Neither business segment earned revenue from a single external customer that was 10% or more of total consolidated revenue.

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(4) Interest Revenue and Expense

The following table summarizes interest revenue, interest expense and provision for credit losses: 

	Ten Months Ended October 31, 2015
(In millions of dollars)
Interest revenue:
Finance interest and other charges	$	1,721
Investment revenue	47
Total interest revenue	1,768
Interest expense:
Related party debt	48
Third-party debt	223
Total interest expense	271
Net interest revenue	1,497
Provision for credit losses	470
Net interest revenue after provision for credit losses	$	1,027

(5) Investments

The following table summarizes amortized cost, gross unrealized gains and losses and estimated fair value of investments, which the Company classifies as AFS: 

	October 31, 2015
	Amortized cost		Gross unrealized				Fair value
			Gains		Losses
(In millions of dollars)
Fixed maturity securities:
Mortgage-backed:
U.S. government agency guaranteed	$	53	$	4	$	—	$	57
Prime	4		—		—		4
Commercial	61		2		—		63
Total mortgage-backed	118		6		—		124
U.S. Treasury and federal agency	26		—		—		26
State and municipal	50		1		—		51
Foreign government	130		7		1		136
Corporate	844		38		14		868
Other debt	60		—		—		60
Total fixed maturity securities	1,228		52		15		1,265
Equity securities	30		8		—		38
Short-term and other securities	76		—		—		76
Total investments	$	1,334	$	60	$	15	$	1,379

Management reviews the investment portfolio on a periodic basis to determine the cause of declines in the fair value of each security in an unrealized loss position. Evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Any credit-related impairment related to debt securities that the Company does not plan to sell and is not likely to be required to sell is recognized in the Consolidated Statement of Income, with the non-credit-related impairment recognized in accumulated other comprehensive income ("AOCI"). For other debt securities with other-than-temporary-impairment ("OTTI"), the entire impairment is recognized in the Consolidated Statement of Income. Equity securities deemed other-than-temporarily impaired are written down to fair value, with the full difference between fair value and cost recognized in earnings.

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Each investment security has been assessed for indications of credit impairment. Considerations such as recoverability of invested amount over a reasonable period of time, along with the factors considered in evaluating whether a loss is temporary, include:

• The length of time and the extent to which fair value has been below cost;

• The severity of the impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer, including credit ratings and support from subordination for asset-backed securities;

• Activity in the market of the issuer which may indicate adverse credit conditions; and

• The Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

For fixed-maturity securities, including investment-grade perpetual preferred stocks, these considerations include management’s estimate of the probability of collecting amounts sufficient to recover the amortized cost basis of the security. For equity securities, these considerations reflect management’s ability and intent to hold the investment for a period of time sufficient to recover the cost basis of the security or whether it is more-likely-than-not that the Company will be required to sell the security prior to recovery of its cost basis.

Review for impairment generally includes:

• Identification and evaluation of investments that have indication of possible impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period;

• Discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having OTTI and those that would not support OTTI; and

• Documentation of the results of these analyses, as required under business policies.

As a result of this analysis, the Company recorded pre-tax losses for OTTI, primarily related to equity securities, of $3 million for the ten months ended October 31, 2015. Pre-tax losses for OTTI are classified in Realized gain on sales and impairments of investments, net on the Consolidated Statement of Income.

The following table summarizes a ten-month roll-forward of the credit-related impairments recognized in earnings for AFS debt securities held at October 31, 2015 that the Company does not intend to sell nor likely will be required to sell:

	Cumulative OTTI credit losses recognized in earnings
(In millions of dollars)	Balance, January 1, 2015		Credit impairments recognized in earnings on securities not previously impaired		Credit impairments recognized in earnings on securities previously impaired		Reductions due to credit-impaired securities sold, transferred or matured			Balance, October 31, 2015
AFS debt securities:
Mortgage-backed	$	1	$	—	$	—	$	—		$	1
Foreign government	—		—		—		—			—
Corporate	3		—		—		(1		)	2
All other debt	1		—		—		(1		)	—
Total OTTI credit losses recognized for AFS debt securities	$	5	$	—	$	—	$	(2	)	$	3

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The following table summarizes amortized cost and fair value by contractual maturity: 

	October 31, 2015
	Amortized cost		Fair value
(In millions of dollars)
Mortgage-backed:
Due within 1 year	—		—
After 1 but within 5 years	1		1
After 5 but within 10 years	5		5
After 10 years	112		118
Total	118		124
U.S. Treasury and federal agency:
Due within 1 year	6		6
After 1 but within 5 years	9		9
After 5 but within 10 years	11		11
After 10 years	—		—
Total	26		26
State and municipal:
Due within 1 year	3		3
After 1 but within 5 years	19		19
After 5 but within 10 years	24		25
After 10 years	4		4
Total	50		51
Foreign government:
Due within 1 year	19		19
After 1 but within 5 years	55		59
After 5 but within 10 years	53		55
After 10 years	3		3
Total	130		136
Corporate and other:
Due within 1 year	74		74
After 1 but within 5 years	429		454
After 5 but within 10 years	304		304
After 10 years	97		96
Total	904		928
Total fixed maturity securities	$	1,228	$	1,265

Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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The following table summarizes the fair value of investment securities for which an OTTI has not been recognized that have been in an unrealized loss position for less than 12 months or for 12 months or longer: 

	October 31, 2015
	Less than twelve months				Twelve months or longer				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
(In millions of dollars)
Mortgage-backed	$	13	$	—	$	6	$	—	$	19	$	—
U.S. Treasury and federal agency	9		—		—		—		9		—
State and municipal	4		—		2		—		6		—
Foreign government	12		—		2		1		14		1
Corporate	201		9		45		5		246		14
Other debt	18		—		6		—		24		—
Equity	4		—		—		—		4		—
Total	$	261	$	9	$	61	$	6	$	322	$	15

At October 31, 2015, the Company had 750 investment securities in a gross unrealized loss position. The unrealized losses are primarily due to increases in interest rates primarily as a result of widening of interest rate spreads. The evidence considered by management in reaching the conclusion that the unrealized losses are not other-than-temporary includes analyst views, financial performance of the issuers and underlying collateral, cash flow projections, ratings and rating downgrades and available credit enhancements. Based on the analysis of the evidence, management has determined it is probable that the Company will collect all amounts due according to the contractual terms of the investment securities. The Company has no intent to sell the investment securities and believes it likely will not be required to sell the investment securities before recovery of the amortized cost basis.

Proceeds on sales of investments were $96 million for the ten months ended October 31, 2015.

The following table summarizes Realized gain on sales and impairments of investments, net on the Consolidated Statement of Income: 

	Ten Months Ended October 31, 2015
(In millions of dollars)
Gross pre-tax gains (losses) on investment securities:
Gains	$	9
Losses	(3		)
Net pre-tax gains on investment securities	6
OTTI	(3		)
Realized gain on sales and impairments of investments, net	$	3

At October 31, 2015, investment securities with an approximate carrying value of $152 million were on deposit with regulatory authorities as required by insurance regulations.

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(6) Consumer Finance Receivables

The following table summarizes net consumer finance receivables: 

	October 31, 2015
(In millions of dollars)
Total loans(1)	$	8,442
Unearned premium and claim reserves	(409		)
Accrued interest receivable	89
Consumer finance receivables(1)	8,122
Allowance for loan losses	(666		)
Net consumer finance receivables	$	7,456

__________

(1) Presented net of unearned revenue and deferred costs of $1.5 billion at October 31, 2015.

Geographic diversification of consumer finance receivables reduces the concentration of credit risk associated with economic stress in any one state. The Company’s entire personal loan portfolio is serviced within the United States. At October 31, 2015, no state or customer comprised a significant portion of the Company’s total consumer finance receivables balance.

Refer to Note 14 for further discussion on the fair value of consumer finance receivables.

Credit Quality Indicators

Credit quality indicators that are actively monitored include delinquency status and Fair Isaac Corporation (“FICO”) credit scores.

Delinquency Status

Delinquency status is carefully monitored and considered a key indicator of credit quality. The Company considers a loan delinquent if a monthly payment has not been received by the close of business on the loan’s next due date. All loans are classified as non-accrual when loan payments are 90 days contractually past due.

The following table summarizes consumer finance receivables delinquencies and non-accrual loans:

	October 31, 2015
(In millions of dollars)
Current(1)	$	8,057
30 - 89 days past due	162
90 days or more past due (non-accrual)	223
Total loans	$	8,442

__________

(1) Loans less than 30 days past due are presented as current.

Credit Scores

Independent credit agencies rate an individual’s risk for assuming debt based on the individual’s credit history and assign every consumer a FICO credit score. These scores are continually updated by the agencies based upon an individual’s credit actions (e.g., taking out a loan, missed or late payments, etc.). FICO scores are updated monthly for substantially the entire portfolio or, otherwise, on a quarterly basis.

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The following table summarizes details on FICO scores: 

	October 31, 2015
(In millions of dollars)
Less than 620	$	3,677
Equal to or greater than 620 but less than 660	2,297
Equal to or greater than 660	2,468
Total loans	$	8,442

Allowance for Loan Losses

The following table summarizes the change in the allowance for loan losses on consumer finance receivables: 

	Ten Months Ended October 31, 2015
(In millions of dollars)
Balance at beginning of period	$	695
Provision for credit losses	470
Amounts charged off	(545		)
Recovery of amounts previously charged off	46
Balance at end of period	$	666
Total loans	$	8,442
Ratio of allowance for loan losses to total loans at end of period	7.89		%

The following table summarizes the allowance for loan losses and investment in loans: 

	October 31, 2015
(In millions of dollars)
Allowance for loan losses:
Determined in accordance with ASC 450-20	$	443
Determined in accordance with ASC 310-10-35	223
Total allowance for loan losses	$	666
Loans, net of unearned income:
Non-TDR loans evaluated for impairment in accordance with ASC 450-20	$	7,929
TDR loans evaluated for impairment in accordance with ASC 310-10-35	513
Total loans	$	8,442

Impaired Loans

Impaired loans are those for which the Company believes it is not probable that it will collect all amounts due according to the original contractual terms of the loan. Impaired loans include loans whose terms have been modified due to the borrower’s financial difficulties and for which the Company has granted a concession to the borrower. These modifications may include interest rate reductions and/or principal forgiveness. Impaired loans exclude loans that have not been modified and are carried on a non-accrual basis. In addition, impaired loans exclude substantially all loans modified pursuant to the Company’s short-term modification programs (i.e., for periods of 12 months or less) that were modified after December 31, 2008 and prior to January 1, 2011. Outstanding loans included in these short-term programs amounted to $7 million at October 31, 2015.

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The following table summarizes impaired loans: 

	October 31, 2015
(In millions of dollars)
Recorded investment(1)	$	513
Unpaid principal balance	512
Related specific allowance(2)	223
Average carrying value(3)	499

______

(1) Recorded investment in consumer finance receivables includes net deferred loan fees and costs, unamortized premium or discount and direct write-downs.

(2) Classified in Allowance for loan losses on the Consolidated Statement of Financial Position.

(3) Average carrying value represents the average recorded investment ending balance for the last three quarters and one month ended October 31, 2015, and does not include related specific allowance.

The following table summarizes interest income recognized on impaired loans:

	Ten Months Ended October 31, 2015
(In millions of dollars)
Interest income recognized	$	71

Troubled Debt Restructurings

The Company may make modifications to its loans for various reasons. Such modifications may result in long-term or short-term rate reductions and payment deferrals. When a modification is made to a loan for a borrower experiencing financial difficulty and the terms are considered below market terms for that borrower, the Company reports such modified loans as TDRs.

The following table summarizes TDR activity and default information: 

	Ten Months Ended October 31, 2015
Number of loans modified	38,107
Post-modification recorded investment (in millions of dollars)	$	285
Average interest rate reduction	6.31		%
TDRs for which a payment default (defined as 60 days past due) occurred within one year of the modification (in millions of dollars)	$	61

(7) Intangible Assets

Intangible assets are comprised of the present value of future profits ("PVFP") of purchased insurance contracts. The following table summarizes intangible assets: 

	October 31, 2015
	Gross carrying amount		Accumulated amortization			Net carrying amount
(In millions of dollars)
Total intangible assets	$	226	$	(164	)	$	62

Amortization expense was $10 million for the ten months ended October 31, 2015 and is classified in Other operating expense on the Consolidated Statement of Income.

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The following table summarizes future amortization expense related to intangible assets at October 31, 2015, which will be fully amortized in 2020, for each of the years ended December 31,

(In millions of dollars)
2015	$	2
2016	11
2017	13
2018	13
2019	11
2020	12
Total amortization expense	$	62

(8) Premises and Equipment, net

The following table summarizes the cost of premises and equipment and related accumulated depreciation and amortization: 

	October 31, 2015
(In millions of dollars)
Leasehold improvements	$	96
Equipment	33
Software	77
Premises and equipment	206
Less accumulated depreciation and amortization	(115		)
Premises and equipment, net	$	91

Depreciation and amortization expense was $18 million for the ten months ended October 31, 2015. Rental expense (principally for offices and computer equipment) was $40 million for the ten months ended October 31, 2015. Non-base rent expenses, included in rental expense, (principally real estate taxes and utilities) were $3 million for the ten months ended October 31, 2015. These amounts are classified in Occupancy expense and Technology and communications expense on the Consolidated Statement of Income, based on the nature of the related asset.

In addition to the above, allocated rental expenses due to affiliates of $4 million for the ten months ended October 31, 2015 were incurred. Refer to Note 15 for further discussion of expense allocations.

Annual impairment tests were performed and no premises and equipment were impaired.

Refer to Note 15 for transfers of premises and equipment to and from affiliates.

The following table summarizes future minimum annual rentals under noncancelable operating leases at October 31, 2015 for each of the years ended December 31,

(In millions of dollars)
2015	$	6
2016	34
2017	24
2018	14
2019	8
2020	5
Thereafter	19
Total noncancelable operating leases	$	110

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Some of the Company’s branch leases contain a standard renewal option of up to five years, have rent escalations built into their respective leases, and contain various leasehold and tenant improvement incentives.

(9) Long-term Debt and Revolving Credit Facility

Long-term Debt

Long-term debt is accounted for at cost. Debt issuance costs related to long-term debt are capitalized and classified in Long-term debt on the Consolidated Statement of Financial Position. Amortization of debt issuance costs related to long-term debt is classified in Interest expense on the Consolidated Statement of Income over the earlier of the contractual term of the debt or the earliest call date that management would consider exercising. The following table summarizes certain information relating to long-term debt:

	Weighted average interest rate	Maturity date	October 31, 2015
			(In millions of dollars)
2019 Notes	6.75%	2019	$	700
2021 Notes	7.25%	2021	800
Senior unsecured notes			1,500
OneMain Financial Issuance Trust 2014-1	2.54%	2024	760
OneMain Financial Issuance Trust 2014-2	2.93%	2024	1,184
OneMain Financial Issuance Trust 2015-1	3.74%	2026	1,229
OneMain Financial Issuance Trust 2015-2	3.07%	2025	1,250
OneMain Financial Issuance Trust 2015-3	4.21%	2028	293
Securitizations			4,716
Less: Debt issuance costs			35
Total long-term debt			$	6,181

Senior Unsecured Notes

On December 11, 2014, OMFH completed an issuance of $1.5 billion of unsecured debt, of which $700 million aggregate principal amount of 6.75% fixed-rate senior notes will mature in 2019 (the “2019 Notes”) and $800 million aggregate principal amount of 7.25% fixed-rate senior notes will mature in 2021 (the “2021 Notes” and, together with the 2019 Notes, the “Notes”).

Each series of Notes are:

• general unsecured senior obligations of the Company;

• equal in right of payment with any existing and future senior indebtedness of the Company;

• subordinated to any existing and future secured indebtedness of the Company to the extent of the value of the assets securing such indebtedness;

• senior in right of payment to any future subordinated indebtedness of the Company;

• subordinated to any existing and future indebtedness and other liabilities, including preferred stock, of non-guarantors; and

• unconditionally guaranteed on a senior unsecured basis by each of the Company’s wholly owned domestic subsidiaries other than certain subsidiaries, including the Company’s insurance subsidiaries and securitization subsidiaries.

The Notes

The 2019 Notes mature on December 15, 2019 and the 2021 Notes mature on December 15, 2021. Interest on the Notes is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2015. The Company may redeem the Notes, in whole or in part, at its option, at different prices throughout the term of the debt.

Certain Covenants

The indenture under which the Notes were issued does not contain financial covenants but does contain a number of restrictive non-financial covenants that impose significant operating and financial restrictions on the Company and may limit its ability to engage in acts that may be in the Company’s best interest, including, but not limited to:

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• limitations on restricted payments;

• limitations on certain types of indebtedness subject to financial ratios;

• limitations on restrictions on distributions from certain subsidiaries;

• limitations on affiliate transactions;

• limitations on sales of assets and subsidiary stock;

• limitations on the type of business conducted;

• limitations on additional guarantees; and

• certain limitations on mergers and consolidations.

As of October 31, 2015, the Company is in compliance with all of its covenants.

Suspension of Covenants on Achievement of Investment Grade Status

If and when the Notes achieve investment grade status and no default or event of default has occurred and is continuing under the indenture, the Company will not be subject to the provisions of the covenants referred to above. At October 31, 2015, the Notes had a non-investment grade rating and no default or event of default had occurred.

Guarantees

The obligations of the Company pursuant to the Notes are unconditionally guaranteed, jointly and severally, by each of the Company’s subsidiaries ("Guarantors") except for certain subsidiaries that are specifically excluded from providing this guarantee, including the VIEs and insurance companies ("Non-Guarantors"). As of October 31, 2015, the Non-Guarantors accounted for approximately 72% of the Company’s total revenue, 83% of total assets and 80%, or $6.6 billion, of total liabilities including trade payables.

Securitizations

On September 29, 2015, the Company completed the securitization of personal loans using the OneMain Financial Issuance Trust 2015-3 (the “2015-3 Trust”) formed in April 2015, resulting in the issuance of $293 million of 3.63% Class A, 4.16% Class B, 5.82% Class C and 6.94% Class D fixed rate notes collateralized by $329 million of loans. The notes are due November 18, 2028 and may be called at the option of the 2015-3 Trust on or after the payment date occurring in September 2019 at a redemption price equal to 100% of the aggregate note principal balance at the time of the call. The 2015-3 Trust will make payments of interest on the notes during the revolving period, which ends August 31, 2020, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the 2015-3 Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the 2015-3 Trust while the notes are outstanding. The parent of the 2015-3 Trust is OneMain Financial Funding III LLC, which is a subsidiary of OMFH.

On May 21, 2015, the Company completed the securitization of personal loans using the OneMain Financial Issuance Trust 2015-2 (the “2015-2 Trust”) formed in December 2014, resulting in the issuance of $1.3 billion of 2.57% Class A, 3.10% Class B, 4.32% Class C and 5.64% Class D fixed rate notes collateralized by $1.3 billion of loans. The notes are due July 18, 2025 and may be called at the option of the 2015-2 Trust on or after the payment date occurring in May 2017 at a redemption price equal to 100% of the aggregate note principal balance at the time of the call. The 2015-2 Trust will make payments of interest on the notes during the revolving period, which ends April 30, 2017, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the 2015-2 Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the 2015-2 Trust while the notes are outstanding. The parent of the 2015-2 Trust is OneMain Financial Funding III LLC, which is a subsidiary of OMFH.

On February 5, 2015, the Company completed the securitization of personal loans using the OneMain Financial Issuance Trust 2015-1 (the “2015-1 Trust”) formed in October 2014, resulting in the issuance of $1.2 billion of 3.19% Class A, 3.85% Class B, 5.12% Class C and 6.63% Class D fixed rate notes collateralized by $1.4 billion of loans. The notes are due March 18, 2026 and may be called at the option of the 2015-1 Trust on or after the payment date occurring in January 2018 at a redemption price equal to 101% of the aggregate note principal balance at the time of the call. The 2015-1 Trust will make payments of interest on the notes during the revolving period, which ends December 31, 2017, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the 2015-1 Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the 2015-1 Trust while the notes are outstanding. The parent of the 2015-1 Trust is OneMain Financial Funding III LLC, which is a subsidiary of OMFH.

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On July 30, 2014, the Company completed the securitization of personal loans and formed OneMain Financial Issuance Trust 2014-2 (“OneMain Trust”) resulting in the issuance of $1.2 billion of 2.47% Class A, 3.02% Class B, 4.33% Class C and 5.31% Class D fixed rate notes collateralized by $1.3 billion of loans. The notes are due September 18, 2024 and may be called at the option of the OneMain Trust on or after July 18, 2016 at a redemption price equal to 101% of the aggregate note principal balance at the time of the call. The OneMain Trust will make payments of interest on the notes during the revolving period, which ends June 30, 2016, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the OneMain Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the OneMain Trust while the notes are outstanding. The parent of the OneMain Trust is OneMain Financial Funding II, LLC, which is a subsidiary of OMFH.

On April 17, 2014, the Company completed the securitization of personal loans and formed OneMain Financial Issuance Trust 2014-1 (the “Issuer” or the “Trust”) resulting in the issuance of $760 million of 2.43% Class A and 3.24% Class B fixed rate notes collateralized by $1.0 billion of loans.The notes are due June 18, 2024 and may be called at the option of the Issuer on or after April 18, 2016 at a redemption price equal to 101% of the aggregate note principal balance at the time of the call. The Issuer will make payments of interest on the notes during the revolving period, which ends March 31, 2016, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the Trust while the notes are outstanding. The parent of the Trust is OneMain Financial Funding, LLC, which is a subsidiary of OMFH.

At October 31, 2015, no default or event of default had occurred related to the securitizations discussed above.

Maturities of Long-term Debt

The following table summarizes future maturities of long-term debt (excluding securitizations) at October 31, 2015:

	2016		2017		2018		2019		2020		Thereafter		Securitizations(1)		Total(2)
(In millions of dollars)
2019 Notes	$	—	$	—	$	—	$	—	$	700	$	—	$	—	$	700
2021 Notes	—		—		—		—		—		800		—		800
Senior unsecured notes	—		—		—		—		700		800		—		1,500
OneMain Financial Issuance Trust 2014-1	—		—		—		—		—		—		760		760
OneMain Financial Issuance Trust 2014-2	—		—		—		—		—		—		1,184		1,184
OneMain Financial Issuance Trust 2015-1	—		—		—		—		—		—		1,229		1,229
OneMain Financial Issuance Trust 2015-2	—		—		—		—		—		—		1,250		1,250
OneMain Financial Issuance Trust 2015-3	—		—		—		—		—		—		293		293
Securitizations	—		—		—		—		—		—		4,716		4,716
Total maturities of long-term debt	$	—	$	—	$	—	$	—	$	700	$	800	$	4,716	$	6,216

__________

(1) On-balance sheet securitizations are not included in maturities by period due to their variable monthly payments.

(2) Excludes $35 million of debt issuance costs.

Refer to Note 14 for information regarding the fair value of long-term debt.

Revolving Line of Credit

On February 3, 2015, the Company entered into a $3.0 billion revolving warehouse facility. The facility has a securitization structure, whereby OneMain Financial Warehouse Trust, a wholly owned statutory trust (“Warehouse Trust”), has issued Series 2015-A Variable Funding Notes (the “notes”) that are backed by personal loans originated by the Company from time to time, to a number of financial institutions, which may from time to time include asset-backed commercial paper conduits administered by certain of these financial institutions. During the revolving period of the facility, the Company may sell personal loans into the Warehouse Trust and draw advances against the value of such personal loans, subject to meeting

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required overcollateralization levels. The lenders will make advances against the notes on a revolving basis through December 31, 2017. The initial maximum principal balance of $3.0 billion will be reduced by $500 million on January 30, 2016 and by an additional $1.0 billion on January 30, 2017. The notes mature on January 18, 2025. During the revolving period, the outstanding note balance may be redeemed, in whole or in part, at the Company's option. The Company incurs a fee during the revolving period for the unused portion of the credit facility. This fee is recorded in Interest expense on the Consolidated Statement of Income. The debt incurred under the warehouse facility is non-recourse to OMFH. The parent of the Warehouse Trust is OneMain Financial Warehouse LLC, which is a subsidiary of OMFH.

Debt issuance costs associated with the revolving credit facility are capitalized and classified in Other assets on the Consolidated Statement of Financial Position. Amortization of debt issuance costs is classified in Interest expense on the Consolidated Statement of Income.

At October 31, 2015, $1.4 billion of the warehouse facility was drawn and no default or event of default had occurred. Of the $1.4 billion drawn, $1.1 billion is due to third-parties and $284 million is due to an affiliate and is included in Revolving line of credit - related party on the Consolidated Statement of Financial Position (see Note 15 for additional discussion).

The securitization trusts and Warehouse Trust described above are VIEs consolidated by the Company as their primary beneficiary. Refer to Note 13 for further discussion regarding VIEs.

(10) Insurance

Reinsurance

The Company’s use of ceded reinsurance arrangements is limited. The Company has generally used assumed reinsurance agreements to acquire blocks of business in force. Ceded reinsurance arrangements do not discharge the insurance entities or the Company as the primary insurer.

The following table summarizes reinsurance amounts included on the Consolidated Statement of Income:

	Ten Months Ended October 31, 2015
	Direct amount		Assumed from  other companies		Ceded to other companies			Net amount
(In millions of dollars)
Premiums:
Accident and health insurance	$	88	$	21	$	—		$	109
Life insurance	67		36		(5		)	98
Property and other	54		3		—			57
Total premiums	$	209	$	60	$	(5	)	$	264
Policyholder benefits and claims	$	101	$	26	$	(8	)	$	119
Insurance policy and claim reserves at October 31, 2015	$	654	$	288	$	(85	)	$	857

Deferred Policy Acquisition Costs

Unamortized deferred policy acquisition costs were $95 million at October 31, 2015, and are classified in Other assets on the Consolidated Statement of Financial Position. Amortization of deferred policy acquisition costs was $12 million for the ten months ended October 31, 2015, and is classified in Other operating expense on the Consolidated Statement of Income.

Statutory Stockholder’s Equity

The insurance entities' statutory stockholder’s equity was $343 million at October 31, 2015. The life insurance entities’ statutory stockholder’s equity was $167 million at October 31, 2015. The property and casualty insurance entity’s statutory stockholder’s equity was $176 million at October 31, 2015. State law restricts the amounts the Company’s insurance entities may pay as dividends without prior notice to, or in some cases prior approval from, the Texas Department of Insurance. The Company’s insurance entities paid dividends of $35 million in the ten months ended October 31, 2015 and $68 million subsequent to October 31, 2015 that did not require prior approval. The insurance entities may pay dividends up to $22 million

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without prior regulatory approval during the remainder of 2015. For each period presented, the Company met the regulatory capital requirements. The consolidated insurance entities' net income determined in accordance with statutory accounting practices was $76 million for the ten months ended October 31, 2015. The life insurance entities’ net income determined in accordance with statutory accounting practices was $45 million for the ten months ended October 31, 2015. The property and casualty insurance entity’s net income determined in accordance with statutory accounting practices was $31 million for the ten months ended October 31, 2015.

The following table reconciles statutory income before income taxes to GAAP income before income taxes for the Company’s insurance entities for the ten months ended October 31, 2015:

	October 31, 2015
(In millions of dollars)
Statutory income before income taxes	$	114
Deferred policy acquisition costs	12
Amortization of present value of future profits	(10		)
Reserve changes	—
Amortization of interest maintenance reserve	(4		)
Other, net	(5		)
GAAP Insurance segment income before income taxes	$	107

The following table reconciles statutory equity to GAAP equity for the Company’s insurance entities for the ten months ended October 31, 2015:

	October 31, 2015
(In millions of dollars)
Statutory equity	$	343
Deferred policy acquisition costs (1)	161
Reserve changes	125
Present value of future profits	62
Income taxes expense	(109		)
Interest maintenance and asset valuation reserves	23
Net unrealized gains	25
Other	58
GAAP equity	$	688

__________

(1) The deferred policy acquisition costs reported in the table above include capitalized costs related to commissions that eliminate upon consolidation of the Company of $66 million at October 31, 2015.

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Liability for Accident and Health Unpaid Claims and Reserve for Losses and Loss Expenses

The following table summarizes activity in the liability for unpaid claims and claim adjustment expenses related to accident and health and credit IUI policies: 

	Ten Months Ended October 31, 2015
(In millions of dollars)
Balance, January 1	$	95
Incurred related to:
Current year	75
Prior years	(3		)
Total incurred	72
Paid related to:
Current year	(26		)
Prior years	(43		)
Total paid	(69		)
Foreign currency translation adjustment	(1		)
Balance, October 31	$	97

The decrease in incurred claims related to prior years in the ten months ended October 31, 2015 resulted from subsequent revisions to estimated claim reserves based on actual experience.

(11) Income Taxes

The following table summarizes components of current and deferred provision (benefit) for income taxes for the ten months ended October 31, 2015:

	October 31, 2015
(In millions of dollars)
Current tax provision:
U.S. Federal	$	188
State & local	16
Non-U.S.	6
Total current tax provision	210
Deferred tax benefit:
U.S. Federal	1
State & local	(1		)
Non-U.S.	—
Total deferred tax benefit	—
Provision for income taxes	$	210

The following table reconciles the federal statutory income tax rate to the Company’s effective income tax rate for the ten months ended October 31, 2015:

	October 31, 2015
Statutory U.S. Federal income tax rate for corporations	35.0	%
State income taxes, net of Federal income tax benefit	1.7
Tax advantaged income	(0.1	)
Other	0.2
Effective income tax rate	36.8	%

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The following table summarizes deferred income taxes at October 31, 2015:

	October 31, 2015
(In millions of dollars)
Deferred tax assets:
Credit loss deduction	$	250
Fixed assets	62
Other deferred tax assets	95
Insurance reserves	3
Total deferred tax assets	410
Deferred tax liabilities:
Investments and loan basis differences	(3		)
Deferred policy acquisition costs and value of insurance in force	(68		)
Total deferred tax liabilities	(71		)
Net deferred tax assets	$	339

The Company had no valuation allowance on deferred tax assets at October 31, 2015. Although realization is not assured, the Company believes that the realization of the recognized deferred tax asset is more-likely-than-not based on expectations as to future taxable income in the jurisdictions in which it operates.

The Company recorded uncertain income tax positions relevant to the jurisdictions where it is required to file income tax returns.

The following table summarizes the activity of the Company’s unrecognized tax benefits for the ten months ended October 31, 2015:

	October 31, 2015
(In millions of dollars)
Total unrecognized tax benefits at January 1	$	5
Net amount of increases for current year’s tax positions	—
Gross amount of increases for prior year’s tax positions	—
Gross amount of decreases for prior year’s tax positions	—
Amounts of decreases related to settlements	—
Reductions due to lapse of statutes of limitations	—
Foreign exchange, acquisitions and dispositions	—
Distributions back to the Parent	—
Total unrecognized tax benefits at October 31	$	5

Total unrecognized tax benefits that, if recognized, would affect the effective tax rate were $4 million at October 31, 2015.

Interest and penalties (not included in “unrecognized tax benefits” above) are a component of the Provision for income taxes on the Consolidated Statement of Income and are immaterial for all periods presented.

The Company is currently under audit by the Internal Revenue Service and other major taxing jurisdictions, and it may conclude certain state and local tax audits within the next 12 months. It is thus reasonably possible that significant changes in the gross balance of unrecognized tax benefits may occur within the next 12 months, although the Company does not expect such audits to result in amounts that would cause a significant change to the effective tax rate.

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The following table summarizes the major tax jurisdictions in which the Company operates and the earliest tax year subject to examination:

Jurisdiction	Tax year
United States	2012
Maryland	2012

Refer to Note 15 for income taxes payable to affiliates.

(12) Changes in AOCI

The following table summarizes the components of AOCI:

	Net unrealized gains (losses) on investment securities			Foreign currency translation adjustment(1)			Accumulated other comprehensive income
(In millions of dollars)
Ten Months Ended October 31, 2015
Balance at beginning of period	$	47		$	(3	)	$	44
Other comprehensive loss before reclassifications	(16		)	(7		)	(23		)
Decrease due to amounts reclassified from AOCI	(2		)	—			(2		)
Change, net of tax	(18		)	(7		)	(25		)
Balance at end of period	$	29		$	(10	)	$	19

  __________

(1) Reflects the movements in the Canadian Dollar against the U.S. Dollar.

The following table summarizes the pre-tax and after-tax changes in each component of AOCI:

	Pre-tax			Tax effect			After-tax
(In millions of dollars)
Ten Months Ended October 31, 2015
Balance at beginning of period	$	68		$	(24	)	$	44
Change in net unrealized gains (losses) on investment securities	(28		)	10			(18		)
Foreign currency translation adjustment	(11		)	4			(7		)
Change	(39		)	14			(25		)
Balance at end of period	$	29		$	(10	)	$	19

The following table summarizes the decrease in AOCI for amounts reclassified to the Consolidated Statement of Income:

	Ten Months Ended October 31, 2015
(In millions of dollars)
Net realized gains on sales of investments(1)	$	(6	)
Gross OTTI impairment losses(1)	3
Net realized gains on investment securities reclassified out of AOCI—pretax	(3		)
Tax expense	1
Net realized gains on investment securities reclassified out of AOCI—after-tax	$	(2	)

 __________

(1) Refer to Note 5 for additional information on realized gains and losses on investment securities and OTTI impairment losses.

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(13) Variable Interest Entities

An entity is referred to as a VIE if it meets the criteria outlined in ASC 810, Consolidation, which are: (1) the entity’s equity is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; or (2) the entity’s equity investors cannot make significant decisions about the entity’s operations or do not absorb their proportionate share of the expected losses or receive the expected returns of the entity. The Company is involved with VIEs through its loan securitization and revolving warehouse activities.

In accordance with ASC 810, the Company consolidates a VIE when it has both the power to direct the activities that most significantly impact the VIE’s economic performance and an obligation to absorb losses, or a right to receive benefits from the entity that could be potentially significant to the VIE (that is, the Company is the primary beneficiary).

VIEs are continually monitored to determine if any events have occurred that could cause the VIEs' primary beneficiary status to change. These events include:

• Additional purchases or sales of variable interests by the Company or an unrelated third party, which cause the Company’s overall variable interest ownership to change;

• Changes in contractual arrangements in a manner that reallocates expected losses and residual returns among the variable interest holders;

• Changes in the party with power to direct activities of a VIE that most significantly affect the entity’s economic performance; and

• Providing support to an entity that results in an implicit variable interest.

The securitization trusts and warehouse facility described in Note 9 are VIEs consolidated by the Company at October 31, 2015.

The following table summarizes the carrying amounts and classifications of the VIEs' assets and liabilities in the Consolidated Statement of Financial Position that are consolidated in accordance with ASC 810: 

	October 31, 2015
(In millions of dollars)
Assets
Cash and cash equivalents	$	387
Net consumer finance receivables	7,033
Deferred tax assets	39
Other assets	14
Total assets	$	7,473
Liabilities
Revolving line of credit - related party	$	284
Revolving line of credit - third party	1,136
Long-term debt	4,697
Accounts payable, accrued expenses and other liabilities	8
Total liabilities	$	6,125

(14) Fair Value Measurements

ASC 820-10, Fair Value Measurement, defines fair value, establishes a consistent framework for measuring fair value and requires disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Among other things, the standard requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

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Fair Value Hierarchy

ASC 820-10 specifies a hierarchy of inputs based on whether the inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.

These two types of inputs have created the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The Company’s policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period.

Determination of Fair Value

For assets and liabilities carried at fair value, the Company primarily utilizes third-party valuation service providers to derive fair values based on various methodologies, including market quotes where available, external non-binding broker quotes, and proprietary valuation models. The Company assesses the reasonableness of security values received from valuation service providers through various analytical techniques including comparing the information obtained from the valuation service providers to other third-party valuation sources for selected securities.

Fair Value of Financial Instruments

The following table summarizes the fair value and carrying amount of financial instruments: 

	October 31, 2015
	Carrying value				Estimated fair value		Estimated fair value
							Level 1		Level 2		Level 3
(In millions of dollars)
Assets
Cash and cash equivalents	$	883			$	883	$	—	$	883	$	—
Investments (Note 5)	1,379				1,379		165		1,164		50
Consumer finance receivables (Note 6)	7,865		(1	)	8,801		—		—		8,801
Liabilities
Related party debt (Note 15)	5				5		—		—		5
Revolving line of credit - related party (Note 15)	284				284		—		—		284
Revolving line of credit - third party (Note 9)	1,136				1,136		—		—		1,136
Long-term debt (Note 9)	6,181				6,284		—		—		6,284

__________

(1) The carrying value of consumer finance receivables is calculated as net consumer finance receivables excluding unearned premium and claim reserves of $409 million.

Fair value assumptions of the financial instruments listed below are based upon subjective estimates of market conditions and perceived risks of the financial instruments at a certain point in time, as disclosed further in various notes to the Consolidated Financial Statements.

Fixed maturities and equity securities—fair value is based primarily on quoted market prices for similar instruments or if quoted market prices are not available, discounted expected cash flows using market rates for similar instruments which are

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commensurate with the credit quality and maturity of the investments. If market rates for similar instruments are not available, other valuation techniques would be used and the asset would be classified as Level 3.

Short-term and other investments—carrying value approximates fair value due to the relatively short period of time between the origination of the investment and its expected maturity or realization.

Consumer finance receivables—fair value is estimated using a discounted cash flow methodology using assumptions management believes a market participant would make in valuing these assets.

Related party debt—carrying value approximates fair value due to the short-term nature of these instruments.

Revolving line of credit—carrying value approximates fair value due to the short-term nature of these instruments.

Long-term debt—fair value measurements of long-term debt are based upon input from market participants or indicative prices obtained from a third party.

The disclosed fair values for financial instruments do not reflect any premium or discount that could result from offering for sale, at one time, the Company’s entire holdings of a particular financial instrument. In addition, any potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in amounts disclosed.

Items Measured at Fair Value on a Recurring Basis

The Company has certain financial assets that are required to be reported on the Consolidated Statement of Financial Position at fair value, on a recurring basis. The Company does not have any items that are required to be reported on the Consolidated Statement of Financial Position at fair value, on a nonrecurring basis.

The following table summarizes investments measured at fair value on a recurring basis: 

	October 31, 2015
	Level 1		Level 2		Level 3		Total
(In millions of dollars)
Fixed maturity securities:
Mortgage-backed:
U.S. government agency guaranteed	$	—	$	56	$	1	$	57
Prime	—		4		—		4
Commercial	—		63		—		63
Total mortgage-backed	—		123		1		124
U.S. Treasury and federal agency	11		15		—		26
State and municipal	—		51		—		51
Foreign government	37		99		—		136
Corporate	4		826		38		868
Other debt	—		50		10		60
Total fixed maturity securities	52		1,164		49		1,265
Equity securities	37		—		1		38
Short-term and other securities	76		—		—		76
Total investments	$	165	$	1,164	$	50	$	1,379

Transfers between Level 1 and Level 2 of the Fair Value Hierarchy

For the ten months ended October 31, 2015, the Company transferred no investments from Level 1 to Level 2 and $54 million of investments from Level 2 to Level 1. Transfers from Level 2 to Level 1 related to short-term and other securities and foreign government securities, which were traded with sufficient frequency to constitute an active market.

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The following table summarizes the changes in the Level 3 fair value category: 

	Balance, January 1, 2015		Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Net realized gains (losses)		Net unrealized losses in other comprehensive income on assets still held			Balance, October 31, 2015
(In millions of dollars)
Fixed maturity securities:
Mortgage-backed:
U.S. government agency guaranteed	$	1	$	4	$	(3	)	$	—	$	(1	)	$	—	$	—		$	1
Prime	—		—		—			—		—			—		—			—
Commercial	1		1		(2		)	—		—			—		—			—
Total mortgage-backed	2		5		(5		)	—		(1		)	—		—			1
Foreign Government	1		—		(1		)	—										—
Corporate	40		6		(4		)	3		(6		)	—		(1		)	38
Other debt	10		—		—			—		—			—		—			10
Total fixed maturity securities	53		11		(10		)	3		(7		)	—		(1		)	49
Equity securities	5		5		(6		)	—		(3		)	—		—			1
Total fixed maturity and equity securities	$	58	$	16	$	(16	)	$	3	$	(10	)	$	—	$	(1	)	$	50

Transfers in and out of Level 3 of the Fair Value Hierarchy

For the ten months ended October 31, 2015, securities, primarily related to mortgage-backed, corporate, and equity were transferred into and out of Level 3 due to changes in the level of price observability for the specific securities. Of the $16 million of securities transferred into Level 3, $5 million was transferred from Level 1 and $11 million was transferred from Level 2. Of the $16 million of securities transferred out of Level 3, $5 million was transferred into Level 1 and $11 million was transferred into Level 2.

Valuation Techniques and Inputs for Level 2 Fair Value Measurements

At October 31, 2015, the financial instruments in Level 2 consisted of cash and investments. Investments in Level 2 were composed primarily of corporate securities, mortgage-backed securities and foreign government securities. The fair value for these investments is based upon: (1) quoted prices for similar assets in active markets; (2) quoted prices for identical or similar assets in inactive markets; or (3) valuations based on models where the significant inputs are observable; including, but not limited to, interest rates, yield curves, prepayment speeds, default rates and loss severities; or where the significant inputs can be corroborated by observable market data.

Valuation Techniques and Inputs for Level 3 Fair Value Measurements

At October 31, 2015, the majority of the investments in Level 3 were corporate securities for which the fair value is measured by the Company’s third-party valuation service provider using a price based methodology with the significant unobservable input as the price, which ranges from 3.24 to 118.49 of par at October 31, 2015.

The effect on the fair value measurement of a given security is wholly dependent on the amount and direction of any changes in the unobservable price input.

(15) Related Party Transactions

Expense Allocations

The Consolidated Financial Statements include direct and indirect expense allocations of certain costs for employee benefits and support functions provided on a centralized basis by various providers across Citigroup and CCC. These expenses are allocated to the Company based on various cost- and/or activity-related drivers.

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The following table summarizes the Company’s allocated share of the related costs from Citigroup and CCC providers:

	Ten Months Ended October 31, 2015
(In millions of dollars)
Direct costs	$	172
Indirect costs	43
Total allocated expenses	$	215

Direct Allocated Costs

Direct allocated costs represent specific services or functions that are attributable to the Company based on actual and/or estimated usage or consumption.

Employee benefits

The Company reimburses Citigroup for payroll taxes and benefits provided to its employees under various U.S. Citigroup employee benefit plans, including costs associated with its participation in Citigroup’s retirement plans and active employee health and life insurance benefit plans. These costs are allocated by individual based on actual employee wages. The Company’s allocated share of the costs associated with these plans was $64 million for the ten months ended October 31, 2015. These costs are classified in Compensation and benefits expense on the Consolidated Statement of Income.

Technology

Citigroup provides certain information technology infrastructure, applications and support services. These costs are allocated based on individual employee consumption or information technology infrastructure usage. The Company’s allocated share of costs associated with these services was $59 million for the ten months ended October 31, 2015. These costs are classified in Technology and communications expense on the Consolidated Statement of Income.

Occupancy

Citigroup provides the Company certain shared premises and related services primarily located in Baltimore, Maryland. These costs are allocated based on the square footage occupied on the premises, including a share of costs related to unoccupied square footage and common areas. The Company’s allocated share of costs associated with these services was $4 million for the ten months ended October 31, 2015. These costs are classified in Occupancy expense on the Consolidated Statement of Income.

Other Direct Costs

Centralized Citigroup locations provide various services including payment processing, preparation of customer statements and centralized default management services. Costs are allocated to the Company based on transactions, statements produced and number of accounts serviced. The Company’s allocated share of the costs for these services was $40 million for the ten months ending October 31, 2015. These costs are classified in Other operating expense on the Consolidated Statement of Income.

The Company incurred expenses from certain affiliates for marketing and distributing its credit insurance products and billing and collecting periodic premiums on other products and programs. These expenses are based on a percentage of written insurance premiums. The Company’s share of costs associated with these services was $5 million for the ten months ended October 31, 2015. These costs are classified in Other operating expense on the Consolidated Statement of Income.

Indirect Allocated Costs

Indirect allocated costs represent general corporate level services provided to the Company and other affiliates by Citigroup. Corporate level services include finance, human resources, compliance, risk, legal, communications, treasury, audit, administration and security. The costs are attributed to the Company in two steps; first, using a consumption based survey; and second, based on metrics that are reflective of service usage.

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Revenue Allocations

The Insurance segment provides administrative support related to debt protection products on behalf of other Citigroup affiliates. The Company recorded income related to these services of $12 million for the ten months ended October 31, 2015. These amounts are classified in Other revenue on the Consolidated Statement of Income.

The Company provides other shared support to an affiliate and recorded income related to these services of $3 million for the ten months ended. These amounts are classified in Other revenue on the Consolidated Statement of Income.

Related Party Debt

The Company’s related party debt was $5 million, net of related party receivables of $459 thousand at October 31, 2015. These balances are short-term in nature with no stated maturity and include charges for operational support and the borrowing and lending of funds. Interest is charged monthly and is based on CCC's cost of funds.

In addition, $284 million of the $1.4 billion drawn on the revolving credit facility is due to an affiliate (as discussed in Note 9). Interest is charged monthly and is primarily based on a LIBOR-indexed floating rate.

The following table summarizes information with respect to related party debt: 

	At or for the ten months ended
	October 31, 2015
(In millions of dollars, except weighted average interest rate)
Weighted average interest rate	4.03		%
Maximum outstanding balance	$	3,550
Interest paid	$	48

Other Related Party Transactions

Cash on deposit with related parties was $403 million as of October 31, 2015. This balance is classified in Cash and cash equivalents on the Consolidated Statement of Financial Position.

At October 31, 2015, net income taxes payable to affiliates of $5 million is offset by net income taxes receivable from taxing authorities of $5 million.

During the ten months ended October 31, 2015, the Company transferred software totaling $13 million to an affiliate and acquired $6 million of software and other premises and equipment from an affiliate. Both transfers occurred at carrying value.

During the ten months ended October 31, 2015, non-cash transfers to Parent totaled $7 million and were related to the settlement of affiliate tax balances.

On October 20, 2015, the Company paid a dividend of $90 million to CCC.

(16) Commitments and Contingencies

In the ordinary course of business, the Company including its affiliates and subsidiaries, as well as its respective current and former officers, directors and employees, routinely are named as defendants in, or as parties to, various actual or threatened legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of consumer protection, lending, insurance, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these legal actions and proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief, and in some instances, seek recovery on a class-wide basis.

In the ordinary course of business, the Company is also subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, restitutions, disgorgements, injunctions or other relief. In addition, the Company and certain of its affiliates and subsidiaries are regulated entities and, in those capacities, subject to regulation by various U.S. and state regulators. In connection with formal and informal inquiries by these regulators, the Company receives

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requests, subpoenas and orders seeking documents, testimony and other information in connection with various aspects of their regulated activities. The Company from time to time receives grand jury subpoenas and other requests for information or assistance, formal or informal, relating to the Company and its customers, from federal or state law enforcement agencies. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with ASC 450, Contingencies accruals are established for contingencies, including litigation and regulatory matters, when management believes it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued, unless some higher amount within the range is a better estimate than any other amount within the range. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. In view of the inherent unpredictability of litigation and regulatory matters, particularly where the damages sought are substantial or indeterminate, the investigations or proceedings are in the early stages, or the matters involve novel legal theories or a large number of parties, the Company cannot predict the timing or ultimate resolution of litigation and regulatory matters, and the actual costs of resolving litigation and regulatory matters may be substantially higher or lower than the amounts accrued for those matters.

Subject to the foregoing, it is the opinion of the Company’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of the matters described in this Note would not be likely to have a material adverse effect on the Company’s financial condition. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on its results of operations or cash flows in particular periods.

Litigation and Regulatory Contingencies

Securitizations

In December 2014, the Company received a subpoena from the Department of Justice requesting information related to the Company’s origination, servicing and securitization of personal loans secured by autos. The Company is fully cooperating with the inquiry.

West Virginia Consumer Finance Litigation

In 2006, Paul Lightner filed a counter-claim class action complaint seeking recovery under West Virginia’s Consumer Credit and Protection Act against CitiFinancial, Inc. (WV) for selling insurance with allegedly inflated premiums and for allegedly taking impermissible security interests in household goods. In 2008, the trial court certified a class under both claims and denied CitiFinancial, Inc.’s motion for summary judgment on both claims. CitiFinancial, Inc. appealed the denial of summary judgment on the insurance claim, and in 2009 the West Virginia Supreme Court reversed the trial court, and held that appropriateness of insurance rates was a matter to be decided by the West Virginia Insurance Commissioner. In 2010, the West Virginia Insurance Commissioner ruled in CitiFinancial, Inc. (WV)’s favor, and plaintiffs appealed this decision. In June 2014, the West Virginia Supreme Court ruled in CitiFinancial, Inc. (WV)’s favor, and affirmed the decision of the Insurance Commissioner. The matter has been remanded back to the trial court, where a new judge has been assigned to the matter. CitiFinancial, Inc. (WV) is subject to the prior judge’s 2008 certification order, and is seeking to have the remaining claim for taking impermissible security interests in household goods decertified. Additional information concerning this matter is publicly available in court filings under Lightner v. CitiFinancial, Inc., Case No. 02-C0723 (Cir. Ct. Marshall Co. WV).

Other Commitments and Contingencies

On July 25, 2014, CCC executed a Host Services Agreement on behalf of the Company and other affiliates. In conjunction with this agreement, the Company executed a work order directly with the third party for maintenance services, which is expected to commence once the new account management system is operational. The work order has an initial five year term and provides for payments based on a fixed fee per loan processed. If, once effective, the work order is terminated by the Company without cause, the Company would be obligated to pay a termination fee of $26 million less any fees already paid under the agreement.

On August 13, 2014, CCC entered into an agreement to obtain a new back-office account management system on behalf of the Company and other affiliates. The related expense allocated to the Company is not material for the ten months ended October 31, 2015. This contract can be terminated prior to completion in exchange for an early termination fee of

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approximately $9 million less any amounts already paid under the contract. If incurred, a significant portion of the termination fee would be allocated to the Company.

(17) Subsequent Events

On February 10, 2016, OMFH completed the securitization of personal loans and formed OneMain Financial Issuance Trust 2016-1 (“2016-1 Trust”) resulting in the issuance of $500 million of Class A, Class B, Class C and Class D fixed rate notes collateralized by $556 million of loans. The notes are due February 20, 2029 and may be called at the option of the 2016-1 Trust on or after the payment date occurring in January 2019 at a redemption price equal to 101% of the aggregate note principal balance at the time of the call. The 2016-1 Trust will make payments of interest on the notes during the revolving period, which ends December 31, 2018, and make principal and interest payments thereafter. During the revolving period, additional loans may be transferred to the 2016-1 Trust. The loans are restricted from being sold or pledged as collateral and can only be used to pay the liabilities of the 2016-1 Trust while the notes are outstanding. The parent of the 2016-1 Trust is OneMain Financial Funding III, LLC, which is a subsidiary of OMFH. The 2016-1 Trust is a VIE consolidated by the Company as its primary beneficiary.

On January 21, 2016, the Company refinanced the revolving warehouse facility and entered into new separate warehouse facilities with four unaffiliated financial institutions that provide committed financing on a revolving basis for personal loans originated by our subsidiaries. The maximum aggregate principal balance under the new facilities is $2.4 billion and the maximum principal balance under each of the separate facilities is $550 million, $750 million, $350 million and $750 million. The aggregate maximum capacity is subject to a scheduled reduction of $100 million in January 2017 to $2.3 billion and a further reduction of $100 million in January 2018 to $2.2 billion. In the absence of the refinancing, the Company’s aggregate financing capacity would have been reduced from $3.0 billion to $2.5 billion on January 30, 2016, and further reduced to $1.5 billion on January 30, 2017, due to the scheduled reductions in maximum principal balance under the now terminated Warehouse Facility.

On January 4, 2016, the Board of Managers of the Company approved a distribution of $90 million to its sole member, Independence Holdings, LLC. The distribution was paid on January 8, 2016.

On November 13, 2015, regulatory approvals were received to allow for the previously announced sale of the Company to OMH. The sale was completed on November 15, 2015, resulting in OMH acquiring all of the outstanding equity interests of the Company for approximately $4.5 billion in cash. As a result of the sale, on November 15, 2015, OMFH became a wholly owned subsidiary of Independence Holdings, LLC, a wholly owned subsidiary of OMH and OMFI was liquidated and merged into newly formed OneMain Financial Group, LLC.

The Company has evaluated all events subsequent to the balance sheet date as of October 31, 2015 through February 10, 2016, which is the date these Consolidated Financial Statements were available to be issued, and have determined that there are no other subsequent events that required disclosure under ASC 855, Subsequent Events.

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XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017
Document and Entity Information
Entity Registrant Name	SPRINGLEAF FINANCE CORP
Entity Central Index Key	0000025598
Document Type	8-K/A
Document Period End Date	Dec. 31, 2017
Amendment Flag	true
Amendment Description	On June 22, 2018, Springleaf Finance, Inc. (“SFI”), a separate wholly owned direct subsidiary of OneMain Holdings, Inc. (“OMH”), entered into a Contribution Agreement with Springleaf Finance Corporation (“SFC,” the “Company,” “we,” “us,” or “our”), a wholly owned direct subsidiary of SFI and a wholly owned indirect subsidiary of OMH, pursuant to which all of the common interests of Independence Holdings, LLC (“Independence”) were contributed to SFC on the same date (the “Contribution”). As a result of the Contribution and effective as of June 22, 2018, (i) Independence became a wholly owned direct subsidiary of SFC and (ii) Independence’s direct and indirect subsidiaries, including OneMain Financial Holdings, LLC (“OMFH”), became indirect subsidiaries of SFC. The Company’s consolidated financial statements have been retrospectively recast for all periods presented to include the historical results of Independence because the Contribution was between entities under common control. Information in the Company’s previously filed Annual Report for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2018 (the “2017 Form 10-K”), has been updated as a result of the Contribution. Items 6, 7, 7A, 8, 9A and 15 of the 2017 Form 10-K include periods prior to the contribution of Independence and have been updated below to retrospectively reflect the Contribution and present SFC and Independence on a combined basis for all periods presented in the 2017 Form 10-K.

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 958	$ 553
Investment securities	1,697	1,764
Net finance receivables:
Personal loans (includes loans of consolidated VIEs of $9.8 billion in 2017 and $9.5 billion in 2016)	14,775	13,531
Real estate loans	128	144
Retail sales finance	6	11
Net finance receivables	14,909	13,686
Unearned insurance premium and claim reserves	(590)	(586)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	(692)	(686)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	13,627	12,414
Finance receivables held for sale	132	153
Note receivable from parent	391	285
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $482 million in 2017 and $552 million in 2016)	498	568
Goodwill	1,422	1,422
Other intangible assets	439	491
Other assets	481	690
Total assets	19,645	18,340
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016)	15,050	13,959
Insurance claims and policyholder liabilities	737	757
Deferred and accrued taxes	46	11
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	410	340
Total liabilities	16,243	15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	5	5
Additional paid-in capital	1,909	1,906
Accumulated other comprehensive income (loss)	6	(6)
Retained earnings	1,482	1,368
Total shareholder’s equity	3,402	3,273
Total liabilities and shareholder’s equity	$ 19,645	$ 18,340

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Personal loans of consolidated VIEs	$ 14,775	$ 13,531
Allowance for finance receivable losses	692	686
Restricted cash and restricted cash equivalents	498	568
Long-term debt	15,050	13,959
Other liabilities	$ 410	$ 340
Common stock, par value (in USD per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	10,160,021	10,160,021
Common stock, shares outstanding (in shares)	10,160,021	10,160,021
Consolidated VIEs
Allowance for finance receivable losses	$ 465	$ 501
Restricted cash and restricted cash equivalents	482	552
Long-term debt	8,700	8,200
Other liabilities	14	12
Personal Loans
Allowance for finance receivable losses	668	666
Personal Loans | Consolidated VIEs
Personal loans of consolidated VIEs	$ 9,800	$ 9,500

XML

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest income:
Finance charges	$ 3,174	$ 3,022	$ 1,850
Finance receivables held for sale originated as held for investment	13	74	60
Total interest income	3,187	3,096	1,910
Interest expense	816	856	715
Net interest income	2,371	2,240	1,195
Provision for finance receivable losses	947	929	711
Net interest income after provision for finance receivable losses	1,424	1,311	484
Other revenues:
Insurance	420	449	211
Investment	73	86	50
Interest income on notes receivable from parent	23	19	15
Net loss on repurchases and repayments of debt	(29)	(17)	0
Net gain on sale of SpringCastle interests	0	167	0
Net gain on sales of personal and real estate loans and related trust assets	0	18	0
Other	53	32	(1)
Total other revenues	540	754	275
Operating expenses:
Salaries and benefits	729	723	426
Acquisition-related transaction and integration expenses	69	108	62
Other operating expenses	587	670	371
Insurance policy benefits and claims	184	167	96
Total other expenses	1,569	1,668	955
Income (loss) before income tax expense (benefit)	395	397	(196)
Income tax expense (benefit)	243	127	(122)
Net income (loss)	152	270	(74)
Net income attributable to non-controlling interests	0	28	127
Net income (loss) attributable to Springleaf Finance Corporation	$ 152	$ 242	$ (201)

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 152	$ 270	$ (74)
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	21	36	(28)
Retirement plan liabilities adjustments	4	22	(9)
Foreign currency translation adjustments	6	4	(6)
Income tax effect:
Net unrealized (gains) losses on non-credit impaired available-for-sale securities	(7)	(13)	10
Retirement plan liabilities adjustments	(1)	(7)	3
Foreign currency translation adjustments	(2)	(1)	2
Other comprehensive income (loss), net of tax, before reclassification adjustments	21	41	(28)
Reclassification adjustments included in net income (loss):
Net realized gains on available-for-sale securities	(14)	(15)	(12)
Net realized gain on foreign currency translation adjustments	0	(4)	0
Income tax effect:
Net realized gains on available-for-sale securities	5	5	4
Reclassification adjustments included in net income, net of tax	(9)	(14)	(8)
Other comprehensive income (loss), net of tax	12	27	(36)
Comprehensive income (loss)	164	297	(110)
Comprehensive income attributable to non-controlling interests	0	28	127
Comprehensive income (loss) attributable to Springleaf Finance Corporation	$ 164	$ 269	$ (237)

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Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Springleaf Finance Corporation Shareholder’s Equity	Non-controlling Interests
Balance at beginning of period at Dec. 31, 2014	$ 1,977	$ 5	$ 771	$ 3	$ 1,327	$ 2,106	$ (129)
Common shares issued and outstanding
Other comprehensive income (loss)	(36)			(36)		(36)
Net income (loss)	(74)				(201)	(201)	127
Capital contributions from parent	1,100		1,100			1,100
Share-based compensation expense, net of forfeitures	2		2			2
Distributions declared to joint venture partners	(77)						(77)
Non-cash incentive compensation from Initial Stockholder	15		15			15
Excess tax benefit from share-based compensation	1		1			1
Balance at end of period at Dec. 31, 2015	2,908	5	1,889	(33)	1,126	2,987	(79)
Common shares issued and outstanding
Other comprehensive income (loss)	27			27		27
Net income (loss)	270				242	242	28
Capital contributions from parent	10		10			10
Share-based compensation expense, net of forfeitures	8		8			8
Withholding tax on share-based compensation	(1)		(1)			(1)
Distributions declared to joint venture partners	(18)						(18)
Sale of equity interests in SpringCastle joint venture	69						69
Balance at end of period at Dec. 31, 2016	3,273	5	1,906	(6)	1,368	3,273	0
Common shares issued and outstanding
Other comprehensive income (loss)	12			12	0	12
Dividend of SFMC to SFI	(38)				(38)	(38)
Net income (loss)	152				152	152
Share-based compensation expense, net of forfeitures	5		5			5
Withholding tax on share-based compensation	(2)		(2)			(2)
Balance at end of period at Dec. 31, 2017	$ 3,402	$ 5	$ 1,909	$ 6	$ 1,482	$ 3,402	$ 0

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income (loss)	$ 152	$ 270	$ (74)
Reconciling adjustments:
Provision for finance receivable losses	947	929	711
Depreciation and amortization	317	510	193
Deferred income tax charge (benefit)	43	(105)	(208)
Non-cash incentive compensation from Initial Stockholder	0	0	15
Net gain on liquidation of United Kingdom subsidiary	0	(4)	0
Net gain on sales of personal and real estate loans and related trust assets	0	(18)	0
Net loss on repurchases and repayments of debt	29	17	0
Share-based compensation expense, net of forfeitures	5	8	2
Net gain on sale of SpringCastle interests	0	(167)	0
Other	(5)	(9)	2
Cash flows due to changes in:
Other assets and other liabilities	175	(189)	1
Insurance claims and policyholder liabilities	(22)	(64)	27
Taxes receivable and payable	43	(38)	131
Accrued interest and finance charges	(37)	15	(34)
Other, net	0	3	(2)
Net cash provided by operating activities	1,647	1,158	764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale	(2,267)	(1,155)	(975)
Proceeds on sales of finance receivables held for sale originated as held for investment	0	930	78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired	0	0	(3,520)
Proceeds from sale of SpringCastle interests, net of restricted cash released	0	26	0
Cash advances on intercompany note to parent	(355)	(297)	(327)
Proceeds from repayments of principal on intercompany note to parent	249	401	189
Cash received from CitiFinancial Credit Company	0	23	0
Available-for-sale securities purchased	(671)	(746)	(525)
Trading and other securities purchased	0	(17)	(1,474)
Available-for-sale securities called, sold, and matured	739	837	521
Trading and other securities called, sold, and matured	18	63	3,779
Proceeds from sale of real estate owned	4	8	14
Other, net	3	(10)	(14)
Net cash provided by (used for) investing activities	(2,280)	63	(2,254)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	5,427	6,660	3,028
Repayments of long-term debt	(4,447)	(8,320)	(1,960)
Distributions to joint venture partners		(18)	(77)
Withholding tax on vested RSUs and PRSUs	(2)	(1)	1
Cash dividend of SFMC	(10)	0	0
Capital contributions from parent	0	10	1,100
Net cash provided by (used for) financing activities	968	(1,669)	2,092
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	335	(448)	602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	1,121	1,569	967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,456	1,121	1,569
Supplemental cash flow information
Cash and cash equivalents	958	553	893
Total cash and cash equivalents and restricted cash and restricted cash equivalents	1,121	1,569	967
Interest paid	(746)	(765)	(594)
Income taxes received (paid)	(154)	(269)	43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)	0	1,945	617
Increase in finance receivables held for investment financed with intercompany payable	0	89	0
Transfer of finance receivables to real estate owned	9	8	11
Net unsettled investment security purchases	1	1	0
Non-cash dividend of SFMC	$ (28)	$ 0	$ 0

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Nature of Operations

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

Springleaf Finance Corporation is referred to in this report as SFC or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our” is a wholly owned subsidiary of SFI. SFI is a wholly owned subsidiary of OMH.

SFC is a financial services holding company whose principal subsidiaries are Independence Holdings, LLC (“Independence”), which, as described below, was contributed to SFC by SFI on June 22, 2018, and other direct subsidiaries engaged in the consumer finance and insurance businesses.

At December 31, 2017, the Initial Stockholder owned approximately 44% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. On December 27, 2017, SoftBank acquired Fortress and Fortress now operates within SoftBank as an independent business headquartered in New York.

See Note 24 regarding a definitive agreement entered into on January 3, 2018, among OMH, an investor group led by funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) and Värde Partners, Inc. (“Värde” and together with Apollo, collectively, the “Apollo-Värde Group”) and the Initial Stockholder.

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Significant Transactions

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Significant Transactions

Significant Transactions

INDEPENDENCE CONTRIBUTION

On June 22, 2018, SFC entered into a Contribution Agreement with SFI, a wholly-owned subsidiary of OMH. Pursuant to the Contribution Agreement, Independence was contributed by SFI to SFC.

The Company has retrospectively recast the financial results for all periods to include Independence as required for transactions between entities under common control. The following table presents the Company’s previously reported Consolidated Balance Sheet as of December 31, 2017 and 2016 retrospectively recast for the contribution of Independence:

(dollars in millions, except par value amount)	2017
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	244		$	714		$	—		$	958
Investment securities		536			1,172			(11		)	1,697
Net finance receivables:
Personal loans		5,308			9,467			—			14,775
Real estate loans		128			—			—			128
Retail sales finance		6			—			—			6
Net finance receivables		5,442			9,467			—			14,909
Unearned insurance premium and claim reserves		(108		)	(482		)	—			(590		)
Allowance for finance receivable losses		(240		)	(452		)	—			(692		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		5,094			8,533			—			13,627
Finance receivables held for sale		132			—			—			132
Notes receivable from parent and affiliates		4,488			—			(4,097		)	391
Restricted cash and restricted cash equivalents		169			329			—			498
Goodwill		—			1,422			—			1,422
Other intangible assets		15			424			—			439
Other assets		146			402			(67		)	481
Total assets		$	10,824		$	12,996		$	(4,175	)	$	19,645
Liabilities and Shareholder’s Equity
Long-term debt		$	7,865		$	7,195		$	(10	)	15,050
Note payable to parent and affiliates		—			4,097			(4,097		)	—
Insurance claims and policyholder liabilities		261			476			—			737
Deferred and accrued taxes		78			3			(35		)	46
Other liabilities		214			229			(33		)	410
Total liabilities		8,418			12,000			(4,175		)	16,243
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,110			—			1,909
Accumulated other comprehensive income (loss)		—			6			—			6
Retained earnings		1,602			(120		)	—			1,482
Total shareholder’s equity		2,406			996			—			3,402
Total liabilities and shareholder’s equity		$	10,824		$	12,996		$	(4,175	)	$	19,645

(dollars in millions, except par value amount)	2016
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	240		$	313		$	—		$	553
Investment securities		582			1,188			(6		)	1,764
Net finance receivables:
Personal loans		4,804			8,727			—			13,531
Real estate loans		144			—			—			144
Retail sales finance		11			—			—			11
Net finance receivables		4,959			8,727			—			13,686
Unearned insurance premium and claim reserves		(212		)	(374		)	—			(586		)
Allowance for finance receivable losses		(204		)	(482		)	—			(686		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		4,543			7,871			—			12,414
Finance receivables held for sale		153			—			—			153
Notes receivable from parent and affiliates		3,723			—			(3,438		)	285
Restricted cash and restricted cash equivalents		227			341			—			568
Goodwill		—			1,422			—			1,422
Other intangible assets		15			476			—			491
Other assets		236			552			(98		)	690
Total assets		$	9,719		$	12,163		$	(3,542	)	$	18,340
Liabilities and Shareholder’s Equity
Long-term debt		$	6,837		$	7,127		$	(5	)	13,959
Note payable to parent and affiliates		—			3,438			(3,438		)	—
Insurance claims and policyholder liabilities		248			509			—			757
Deferred and accrued taxes		106			—			(95		)	11
Other liabilities		185			159			(4		)	340
Total liabilities		7,376			11,233			(3,542		)	15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,107			—			1,906
Accumulated other comprehensive income (loss)		(7		)	1			—			(6		)
Retained earnings		1,546			(178		)	—			1,368
Total shareholder’s equity		2,343			930			—			3,273
Total liabilities and shareholder’s equity		$	9,719		$	12,163		$	(3,542	)	$	18,340

The following table presents the Company’s previously reported Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

(dollars in millions)	2017
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,228		$	1,946		$	—		$	3,174
Finance receivables held for sale originated as held for investment		13			—			—			13
Total interest income		1,241			1,946			—			3,187
Interest expense		517			531			(232		)	816
Net interest income		724			1,415			232			2,371
Provision for finance receivable losses		324			623			—			947
Net interest income after provision for finance receivable losses		400			792			232			1,424
Other revenues:
Insurance		140			280			—			420
Investment		28			45			—			73
Interest income on notes receivable from parent and affiliates		255			—			(232		)	23
Net loss on repurchases and repayments of debt		(28		)	(1		)	—			(29		)
Other		12			69			(28		)	53
Total other revenues		407			393			(260		)	540
Other expenses:
Operating expenses:
Salaries and benefits		307			442			(20		)	729
Acquisition-related transaction and integration expenses		—			—			69			69
Other operating expenses		251			413			(77		)	587
Insurance policy benefits and claims		56			128			—			184
Total other expenses		614			983			(28		)	1,569
Income before income tax expense		193			202			—			395
Income tax expense		99			144			—			243
Net income		94			58			—			152
Net income attributable to non-controlling interests		—			—			—			—
Net income attributable to Springleaf Finance Corporation		$	94		$	58		$	—		$	152

(dollars in millions)	2016
		As Reported								Consolidated
Year to Date		SFC			Independence		Adjustments			SFC
Interest income:
Finance charges		$	1,276		$	1,746	$	—		$	3,022
Finance receivables held for sale originated as held for investment		74			—		—			74
Total interest income		1,350			1,746		—			3,096
Interest expense		556			502		(202		)	856
Net interest income		794			1,244		202			2,240
Provision for finance receivable losses		329			600		—			929
Net interest income after provision for finance receivable losses		465			644		202			1,311
Other revenues:
Insurance		160			289		—			449
Investment		31			55		—			86
Interest income on notes receivable from parent and affiliates		214			7		(202		)	19
Net loss on repurchases and repayments of debt		(17		)	—		—			(17		)
Net gain on sale of SpringCastle interests		167			—		—			167
Net gain on sales of personal and real estate loans and related trust assets		18			—		—			18
Other		1			31		—			32
Total other revenues		574			382		(202		)	754
Other expenses:
Operating expenses:
Salaries and benefits		347			427		(51		)	723
Acquisition-related transaction and integration expenses		—			—		108			108
Other operating expenses		291			436		(57		)	670
Insurance policy benefits and claims		55			112		—			167
Total other expenses		693			975		—			1,668
Income before income tax expense		346			51		—			397
Income tax expense		113			14		—			127
Net income		233			37		—			270
Net income attributable to non-controlling interests		28			—		—			28
Net income attributable to Springleaf Finance Corporation		$	205		$	37	$	—		$	242

(dollars in millions)	2015
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,597		$	253		$	—		$	1,850
Finance receivables held for sale originated as held for investment		60			—			—			60
Total interest income		1,657			253			—			1,910
Interest expense		667			75			(27		)	715
Net interest income		990			178			27			1,195
Provision for finance receivable losses		339			372			—			711
Net interest income after provision for finance receivable losses		651			(194		)	27			484
Other revenues:
Insurance		158			53			—			211
Investment		49			1			—			50
Interest income on notes receivable from parent and affiliates		42			—			(27		)	15
Other		(6		)	5			—			(1		)
Total other revenues		243			59			(27		)	275
Other expenses:
Operating expenses:
Salaries and benefits		364			73			(11		)	426
Acquisition-related transaction and integration expenses		—			—			62			62
Other operating expenses		299			123			(51		)	371
Insurance policy benefits and claims		72			24			—			96
Total other expenses		735			220			—			955
Income before income tax expense (benefit)		159			(355		)	—			(196		)
Income tax expense (benefit)		18			(140		)	—			(122		)
Net income (loss)		141			(215		)	—			(74		)
Net income attributable to non-controlling interests		127			—			—			127
Net income (loss) attributable to Springleaf Finance Corporation		$	14		$	(215	)	$	—		$	(201	)

The following table presents the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated SFC
Cash flows from operating activities
Net income		$	94		$	58		$	—		$	152
Reconciling adjustments:
Provision for finance receivable losses		324			623			—			947
Depreciation and amortization		143			174			—			317
Deferred income tax benefit		(82		)	125			—			43
Net loss on repurchases and repayments of debt		28			1			—			29
Share-based compensation expense, net of forfeitures		—			5			—			5
Other		1			(6		)	—			(5		)
Cash flows due to changes in:
Other assets and other liabilities		107			68			—			175
Insurance claims and policyholder liabilities		(92		)	70			—			(22		)
Taxes receivable and payable		13			30			—			43
Accrued interest and finance charges		(95		)	54			4			(37		)
Other, net		(3		)	3			—			—
Net cash provided by operating activities		438			1,205			4			1,647
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(783		)	(1,484		)	—			(2,267		)
Cash advances on intercompany notes receivable		(1,837		)	—			1,482			(355		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,154			—			(905		)	249
Available-for-sale securities purchased		(245		)	(431		)	5			(671		)
Available-for-sale securities called, sold, and matured		301			438			—			739
Trading and other securities called, sold, and matured		1			17			—			18
Proceeds from sale of real estate owned		4			—			—			4
Other, net		12			(9		)	—			3
Net cash provided by (used for) financing activities		(1,393		)	(1,469		)	582			(2,280		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,456			1,971			—			5,427
Repayments of long-term debt		(2,544		)	(1,898		)	(5		)	(4,447		)
Proceeds from intercompany note payable		—			1,486			(1,486		)	—
Payments on intercompany note payable		—			(905		)	905			—
Withholding tax on vested RSUs and PRSUs		(1		)	(1		)	—			(2		)
Cash dividend of SFMC		(10		)	—			—			(10		)
Net cash provided by (used for) financing activities		901			653			(586		)	968

Consolidated Statements of Cash Flows (Continued)	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(54		)	389			—		335
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		467			654			—		$	1,121
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	413		$	1,043		$	—	$	1,456
Supplemental cash flow information
Cash and cash equivalents		$	244		$	714		$	—	$	958
Restricted cash and restricted cash equivalents		169			329			—		498
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	413		$	1,043		$	—	$	1,456
Interest paid		$	(436	)	$	(310	)	$	—	$	(746	)
Income taxes received (paid)		(71		)	(83		)	—		(154		)
Supplemental non-cash activities
Transfer of finance receivables to real estate owned		$	9		$	—		$	—	$	9
Net unsettled investment security purchases		—			1			—		$	1
Non-cash dividend of SFMC		(28		)	—			—		(28		)

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income		$	233		$	37		$	—		$	270
Reconciling adjustments:
Provision for finance receivable losses		329			600			—			929
Depreciation and amortization		144			366			—			510
Deferred income tax benefit		(83		)	(22		)	—			(105		)
Net gain on liquidation of United Kingdom subsidiary		(4		)	—			—			(4		)
Net gain on sales of personal and real estate loans and related trust assets		(18		)	—			—			(18		)
Net loss on repurchases and repayments of debt		17			—			—			17
Share-based compensation expense, net of forfeitures		1			7			—			8
Net gain on sale of SpringCastle interests		(167		)	—			—			(167		)
Other		6			(15		)	—			(9		)
Cash flows due to changes in:
Other assets and other liabilities		(37		)	(152		)	—			(189		)
Insurance claims and policyholder liabilities		(19		)	(45		)	—			(64		)
Taxes receivable and payable		56			(94		)	—			(38		)
Accrued interest and finance charges		14			1			—			15
Other, net		3			—			—			3
Net cash provided by operating activities		475			683			—			1,158
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(557		)	(598		)	—			(1,155		)
Proceeds on sales of finance receivables held for sale originated as held for investment		930			—			—			930
Proceeds from sale of SpringCastle interests, net of restricted cash released		26			—			—			26
Cash advances on intercompany notes receivable		(1,042		)	(670		)	1,415			(297		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,023			670			(1,292		)	401
Cash received from CitiFinancial Credit Company		—			23			—			23
Available-for-sale securities purchased		(353		)	(399		)	6			(746		)
Trading and other securities purchased		(10		)	(7		)	—			(17		)
Available-for-sale securities called, sold, and matured		380			457			—			837
Trading and other securities called, sold, and matured		20			43			—			63
Proceeds from sale of real estate owned		8			—			—			8
Other, net		26			(36		)	—			(10		)
Net cash provided by (used for) investing activities		451			(517		)	129			63

Consolidated Statements of Cash Flows (Continued)	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,854			2,806			—			6,660
Proceeds from intercompany note payable		670			1,415			(2,085		)	—
Repayments of long-term debt		(4,920		)	(3,394		)	(6		)	(8,320		)
Distributions to joint venture partners		(18		)	—			—			(18		)
Payments on note payable to affiliate		(670		)	(1,292		)	1,962			—
Withholding tax on vested RSUs and PRSUs		(1		)	—			—			(1		)
Capital contributions from parent		10			—			—			10
Net cash provided by (used for) financing activities		(1,075		)	(465		)	(129		)	(1,669		)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(149		)	(299		)	—			(448		)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		616			953			—			1,569
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	467		$	654		$	—		$	1,121
Supplemental cash flow information
Cash and cash equivalents		$	240		$	313		$	—		$	553
Restricted cash and restricted cash equivalents		227			341			—			568
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	467		$	654		$	—		$	1,121
Interest paid		$	(451	)	$	(314	)	$	—		$	(765	)
Income taxes received (paid)		(140		)	(129		)	—			(269		)
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	1,945		$	—		$	—		$	1,945
Increase in finance receivables held for investment financed with intercompany payable		89			—			—			89
Transfer of finance receivables to real estate owned		8			—			—			8
Net unsettled investment security purchases		—			1			—			1

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income (loss)		$	141		$	(215	)	$	—		$	(74	)
Reconciling adjustments:
Provision for finance receivable losses		339			372			—			711
Depreciation and amortization		92			101			—			193
Deferred income tax benefit		(50		)	(158		)	—			(208		)
Non-cash incentive compensation from Initial Stockholder		15			—			—			15
Share-based compensation expense, net of forfeitures		2			—			—			2
Other		(3		)	5			—			2
Cash flows due to changes in:
Other assets and other liabilities		(48		)	49			—			1
Insurance claims and policyholder liabilities		34			(7		)	—			27
Taxes receivable and payable		111			20			—			131
Accrued interest and finance charges		(23		)	(11		)	—			(34		)
Other, net		(2		)	—			—			(2		)
Net cash provided by operating activities		608			156			—			764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(799		)	(176		)	—			(975		)
Proceeds on sales of finance receivables held for sale originated as held for investment		78			—			—			78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired		—			(3,520		)	—			(3,520		)
Cash advances on intercompany notes receivable		(3,720		)	—			3,393			(327		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		189			—			—			189
Available-for-sale securities purchased		(476		)	(49		)	—			(525		)
Trading and other securities purchased		(1,474		)	—			—			(1,474		)
Available-for-sale securities called, sold, and matured		470			51			—			521
Trading and other securities called, sold, and matured		3,779			—			—			3,779
Proceeds from sale of real estate owned		14			—			—			14
Other, net		(12		)	(2		)	—			(14		)
Net cash (used for) financing activities		(1,951		)	(3,696		)	3,393			(2,254		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,028			—			—			3,028
Repayments of long-term debt		(1,960		)	—			—			(1,960		)
Proceeds from intercompany note payable		—			3,393			(3,393		)	—
Distributions to joint venture partners		(77		)	—			—			(77		)
Excess tax benefit from share-based compensation		1			—			—			1
Capital contribution		—			1,100			—			1,100
Net cash provided by financing activities		992			4,493			(3,393		)	2,092

Consolidated Statements of Cash Flows (Continued)	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(351		)	953			—		602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		967			—			—		967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	616		$	953		$	—	$	1,569
Supplemental cash flow information
Cash and cash equivalents		$	321		$	572		$	—	$	893
Restricted cash and restricted cash equivalents		295			381			—		676
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	616		$	953		$	—	$	1,569
Interest paid		$	(511	)	$	(83	)	$	—	$	(594	)
Income taxes received (paid)		45			(2		)	—		43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	617		$	—		$	—	$	617
Transfer of finance receivables to real estate owned		11			—			—		11

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

ONEMAIN ACQUISITION

On November 15, 2015, Independence completed its acquisition of OMFH from Citigroup for approximately $4.5 billion in cash (the “OneMain Acquisition”). OMFH is a leading consumer finance company in the United States, providing personal loans to primarily middle income households through a national, community based network. The results of OMFH are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup.

We allocated the purchase price to the net tangible and intangible assets acquired and liabilities assumed, based on their respective estimated fair values as of October 31, 2015. Given the timing of this transaction and complexity of the purchase accounting, our estimate of the fair value adjustment specific to the acquired loans and intangible assets was preliminary, and our determination of the final tax positions with Citigroup was also preliminary. During 2016, we finalized the accounting for these matters as shown in the table below.

The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows:

(dollars in millions)	As Reported			Adjustments*				As Adjusted
Cash consideration	$	4,478		$	(23	)	(a)	$	4,455
Fair value of assets acquired:
Cash and cash equivalents	958			—				958
Investment securities	1,294			—				1,294
Personal loans	8,801			(6		)	(b)	8,795
Intangibles	555			3			(c)	558
Other assets	247			(3		)	(d)	244
Fair value of liabilities assumed:
Long-term debt	(7,725		)	—				(7,725		)
Unearned premium, insurance policy and claims reserves	(936		)	—				(936		)
Other liabilities	(156		)	1			(e)	(155		)
Goodwill	$	1,440						$	1,422

* During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available:

(a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments.

(b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period.

(c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date.

(d) Represents a decrease in valuation of acquired software asset.

(e) Represents the settlement of a payable to Citigroup during the measurement period.

Of the adjusted $8.8 billion of acquired personal loans included in the table above, $8.1 billion relates to finance receivables determined not to be credit impaired at acquisition. Contractually required principal and interest of these non-credit impaired personal loans was $11.6 billion at the date of acquisition, of which $2.2 billion is not expected to be collected, primarily due to forgone interest as a result of prepayments and defaults.

The goodwill recognized from the OneMain Acquisition is reported in our Consumer and Insurance segment. We did not record any impairments to goodwill during 2017 and 2016. See Note 9 for the reconciliations of the carrying amounts of goodwill at the beginning and end of 2017 and 2016.

As of December 31, 2017, we had incurred approximately $239 million of acquisition-related transaction and integration expenses ($69 million incurred during 2017) in connection with the OneMain Acquisition and the Lendmark Sale, which we report as a component of operating expenses. These expenses primarily include transaction costs, technology termination and certain compensation and benefit related costs.

In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC 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 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement required certain of OMH’s subsidiaries (the “Branch Sellers”) to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement 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. The sale contemplated under the terms of the Settlement Agreement was consummated through the Lendmark Sale described below.

LENDMARK SALE

On November 12, 2015, OMH and the Branch Sellers entered into a purchase and sale agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such 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 had 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 would be 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.

Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016.

On May 2, 2016, we completed the Lendmark Sale for an aggregate cash purchase price of $624 million. Such sale was effective as of April 30, 2016 and included the sale to Lendmark of personal loans with an unpaid principal balance (“UPB”) as of March 31, 2016 of $600 million. OMH entered into a transition services agreement with Lendmark dated as of May 2, 2016 (the “Transition Services Agreement”), and OMH’s and our activities remained subject to the oversight of the Monitoring Trustee appointed by the court pursuant to the Settlement Agreement until the expiration of the Transition Services Agreement. The Transition Services Agreement expired on May 1, 2017.

SPRINGCASTLE INTERESTS SALE

On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, on March 31, 2016, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.”

In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million paid into an escrow account on July 29, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five-year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $167 million.

As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless SFI is terminated, SFI will remain as servicer of the SpringCastle Portfolio under the servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary.

Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for purposes of certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers.

The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, the date of sale, was owned primarily by a private equity fund managed by an affiliate of Fortress. Wesley Edens, Chairman of the Board of Directors of OMH, also serves as Chairman of the Board of Directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the Board of Directors of Fortress. Douglas Jacobs, a member of the Board of Directors of OMH, also serves as a member of NRZ’s Board of Directors and Fortress’ Board of Directors.

The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to the SpringCastle Interests Sale.

REAL ESTATE LOAN SALES

August 2016 Real Estate Loan Sale

On August 3, 2016, SFC and certain of its subsidiaries sold a portfolio of second lien mortgage loans for aggregate cash proceeds of $246 million (the “August 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of $4 million. Unless we are terminated or we resign as servicer, we will continue to service the loans included in this sale pursuant to a servicing agreement. The purchase and sale agreement and the servicing agreement include customary representations and warranties and indemnification provisions.

December 2016 Real Estate Loan Sale

On December 19, 2016, SFC and certain of its subsidiaries sold a portfolio of first and second lien mortgage loans for aggregate cash proceeds of $58 million (the “December 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of less than $1 million.

SFC’s MEDIUM-TERM NOTE ISSUANCES

8.25% Senior Notes Due 2020

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a First Supplemental Indenture, dated as of December 3, 2014 (the “SFC First Supplemental Indenture”) and a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis.

6.125% Senior Notes Due 2022

On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis.

On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price.

5.625% Senior Notes Due 2023

On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the ‘‘5.625% SFC Notes’’) under the SFC Base Indenture, as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture” and, collectively with the SFC Base Indenture, the SFC First Supplemental Indenture, the SFC Second Supplemental Indenture, and the SFC Third Supplemental Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis.

See Note 12 for further information regarding our debt issuances.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

BASIS OF PRESENTATION

We prepared our consolidated financial statements using 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 owned a 47% equity interest prior to March 31, 2016), and 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 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 23, we have revised our prior period segment disclosures.

ACCOUNTING POLICIES

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2017, our two segments include:

• Consumer and Insurance; and

• Acquisitions and Servicing.

In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment.

The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016.

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

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, 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, except for collections of interest, which we include as cash flows from operating 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.

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 four contractual payments become past due for personal loans 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

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 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 update on a quarterly basis the amount of cash flows we expect to collect, which incorporates 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, and such removal will not affect the yield used to recognize accretable yield of the pool.

Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans 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 past due interest or forgive principal or interest. Additionally, as part of the modification, we may require trial payments. 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, 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 contractual 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 personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies.

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 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 may 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. 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.

Reserve for Sales Recourse Obligations

When we sell finance receivables, we may 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.

Goodwill

Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount.

We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use.

Intangible Assets other than Goodwill

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 OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives.

For intangible assets with a finite useful life, we review 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. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance.

For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. 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 from affiliates 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 dismemberment, 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 involuntary unemployment, and collateral protection 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.

Insurance Policy 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 shareholder’s 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 (as further described in “Fair Value Measurements” below) 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.

Acquisition-related Transaction and Integration Expenses

In connection with the OneMain Acquisition, we incur acquisition-related transaction and integration costs, including (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration.

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. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards.

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 and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized.

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.

The Tax Act was enacted on December 22, 2017 and we must reflect the changes associated with its provisions in 2017. The law is complex and has extensive implications for our federal and state current and deferred taxes and income tax expense. We recorded and reported the effects of the Tax Act in our financial statements in 2017. For further information, see Note 19 of the Notes to Consolidated Financial Statements included in this report.

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.

Foreign Currency Translation

Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

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 related to prior periods, 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.

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Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements.

Statement of Cash Flows

In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Technical Corrections and Improvements

In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections, to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Business Combinations

In January of 2017, the FASB issued ASU 2017-01, Business Combinations, to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact 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. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements.

Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $167 million of minimum lease commitments from these operating leases (refer to Note 20). We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact.

Allowance for Finance Receivables Losses

In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach.

The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis bedetermined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition.

The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets.

In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance.

The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impacts.

Statement of Cash Flows

In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Income Taxes

In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Goodwill Impairment

In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Compensation and Benefits

In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting, which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, 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, 2017

Receivables [Abstract]

Finance Receivables

Finance Receivables

Our finance receivable types include personal loans, 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 three to six years. At December 31, 2017, we had over 2.3 million personal loans representing $14.8 billion of net finance receivables, compared to

2.2 million personal loans totaling $13.5 billion at December 31, 2016.

• 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. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. In 2012, we ceased originating real estate loans and the portfolio is 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, are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant, 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 in a liquidating status.

Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			Real Estate Loans		Retail Sales Finance			Total
December 31, 2017
Gross receivables *	$	16,173		$	127	$	7		$	16,307
Unearned finance charges and points and fees	(1,724		)	—		(1		)	(1,725		)
Accrued finance charges	210			1		—			211
Deferred origination costs	116			—		—			116
Total	$	14,775		$	128	$	6		$	14,909
December 31, 2016
Gross receivables *	$	15,360		$	142	$	12		$	15,514
Unearned finance charges and points and fees	(2,061		)	1		(1		)	(2,061		)
Accrued finance charges	150			1		—			151
Deferred origination costs	82			—		—			82
Total	$	13,531		$	144	$	11		$	13,686

* 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 premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value;

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

• 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; and

• TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable.

At December 31, 2017 and 2016, unused lines of credit extended to customers by the Company were immaterial.

GEOGRAPHIC DIVERSIFICATION

Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows:

December 31,	2017				2016 *
(dollars in millions)	Amount		Percent		Amount		Percent
Texas	$	1,300	9	%	$	1,194	9	%
North Carolina	1,155		8		1,112		8
Pennsylvania	882		6		825		6
California	876		6		806		6
Ohio	726		5		660		5
Florida	674		5		572		4
Illinois	667		4		599		4
Virginia	641		4		623		5
Georgia	618		4		586		4
Indiana	608		4		539		4
Tennessee	520		3		465		3
Other	6,242		42		5,705		42
Total	$	14,909	100	%	$	13,686	100	%

* December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 state concentrations.

CREDIT QUALITY INDICATOR

We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are contractually 60 days past due, we consider them delinquent and transfer collection of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming.

The following is a summary of net finance receivables held for investment by type and by number of days delinquent:

(dollars in millions)	Personal Loans		Real Estate Loans		Retail Sales Finance		Total
December 31, 2017
Performing:
Current	$	14,081	$	98	$	6	$	14,185
30-59 days past due	202		8		—		210
60-89 days past due	156		3		—		159
Total performing	14,439		109		6		14,554
Nonperforming:
90-179 days past due	330		4		—		334
180 days or more past due	6		15		—		21
Total nonperforming	336		19		—		355
Total	$	14,775	$	128	$	6	$	14,909
December 31, 2016
Performing:
Current	$	12,878	$	102	$	11	$	12,991
30-59 days past due	173		9		—		182
60-89 days past due	129		4		—		133
Total performing	13,180		115		11		13,306
Nonperforming:
90-179 days past due	347		8		—		355
180 days or more past due	4		21		—		25
Total nonperforming	351		29		—		380
Total	$	13,531	$	144	$	11	$	13,686

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, 2017 and at December 31, 2016 were immaterial.

PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES

Our purchased credit impaired finance receivables consist of receivables purchased in connection with the OneMain Acquisition and the Fortress Acquisition.

Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold our interest in the SpringCastle Portfolio in connection with the SpringCastle Interests Sale.

We report the carrying amount (which initially was the fair value) 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, 2017 and 2016, finance receivables held for sale totaled $132 million and $153 million, respectively, which 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. See Note 7 for further information on our finance receivables held for sale.

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

December 31,	2017						2016
(dollars in millions)	OM Loans		FA Loans (a)		Total		OM Loans		FA Loans (a)		Total
Carrying amount, net of allowance	$	176	$	57	$	233	$	324	$	70	$	394
Outstanding balance (b)	243		94		337		444		107		551
Allowance for purchased credit impaired finance receivable losses	6		9		15		29		8		37

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

(dollars in millions)
December 31,	2017		2016
Carrying amount	$	44	$	54
Outstanding balance	72		83

(b) Outstanding balance is defined as UPB of the loans with a net carrying amount.

The allowance for purchased credit impaired finance receivable losses at December 31, 2017 and 2016, reflected the carrying value of the purchased credit impaired loans held for investment 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)	OM Loans			SCP Loans			FA Loans			Total
Year Ended December 31, 2017
Balance at beginning of period	$	59		$	—		$	60		$	119
Accretion (a)	(34		)	—			(5		)	(39		)
Reclassifications to nonaccretable difference (b)	22			—			(2		)	20
Balance at end of period	$	47		$	—		$	53		$	100
Year Ended December 31, 2016
Balance at beginning of period	$	151		$	375		$	66		$	592
Accretion (a)	(69		)	(16		)	(7		)	(92		)
Other (c)	(23		)	—			—			(23		)
Reclassifications from nonaccretable difference (b)	—			—			12			12
Transfers due to finance receivables sold	—			(359		)	(11		)	(370		)
Balance at end of period	$	59		$	—		$	60		$	119
Year Ended December 31, 2015
Balance at beginning of period	$	—		$	452		$	54		$	506
Additions from OneMain Acquisition	166			—			—			166
Accretion (a)	(15		)	(77		)	(8		)	(100		)
Reclassifications from nonaccretable difference (b)	—			—			20			20
Balance at end of period	$	151		$	375		$	66		$	592

(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,	2017		2016		2015
Accretion	$	4	$	5	$	6

(b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows.

(c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield.

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		Real Estate Loans (a)		Total
December 31, 2017
TDR gross finance receivables (b)	$	318	$	139	$	457
TDR net finance receivables	317		140		457
Allowance for TDR finance receivable losses	134		12		146
December 31, 2016
TDR gross finance receivables	$	151	$	133	$	284
TDR net finance receivables	152		134		286
Allowance for TDR finance receivable losses	69		11		80

(a) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2017		2016
TDR gross finance receivables	$	90	$	89
TDR net finance receivables	91		90

(b) As defined earlier in this Note.

As of December 31, 2017, we had 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 (b)		Total
Year Ended December 31, 2017
TDR average net receivables	$	230	$	—	$	140	$	370
TDR finance charges recognized	33		—		9		42
Year Ended December 31, 2016
TDR average net receivables	$	95	$	—	$	175	$	270
TDR finance charges recognized	12		—		11		23
Year Ended December 31, 2015
TDR average net receivables (c)	$	35	$	12	$	198	$	245
TDR finance charges recognized	3		1		11		15

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
TDR average net receivables	$	91
TDR finance charges recognized	6
Year Ended December 31, 2016
TDR average net receivables	$	102
TDR finance charges recognized	6
Year Ended December 31, 2015
TDR average net receivables	$	91
TDR finance charges recognized	5

(c) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net 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 (b)		Total
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	326	$	—	$	16	$	342
Post-modification TDR net finance receivables:
Rate reduction	$	250	$	—	$	16	$	266
Other (c)	74		—		—		74
Total post-modification TDR net finance receivables	$	324	$	—	$	16	$	340
Number of TDR accounts	45,300		—		510		45,810
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	211	$	1	$	16	$	228
Post-modification TDR net finance receivables:
Rate reduction	$	194	$	1	$	16	$	211
Other (c)	12		—		1		13
Total post-modification TDR net finance receivables	$	206	$	1	$	17	$	224
Number of TDR accounts	29,395		157		364		29,916
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	47	$	7	$	21	$	75
Post-modification TDR net finance receivables:
Rate reduction	$	31	$	6	$	17	$	54
Other (c)	12		—		5		17
Total post-modification TDR net finance receivables	$	43	$	6	$	22	$	71
Number of TDR accounts	8,365		721		385		9,471

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	232
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	5
Post-modification TDR net finance receivables	$	5
Number of TDR accounts	122
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	113

(c) “Other” modifications primarily include 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, 2017
TDR net finance receivables (b)	$	88	$	—	$	4	$	92
Number of TDR accounts	14,935		—		101		15,036
Year Ended December 31, 2016
TDR net finance receivables (b) (c)	$	24	$	—	$	3	$	27
Number of TDR accounts	3,684		19		61		3,764
Year Ended December 31, 2015
TDR net finance receivables (b)	$	8	$	2	$	3	$	13
Number of TDR accounts	1,649		147		46		1,842

(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, 2017
TDR net finance receivables	$	2
Number of TDR accounts	53
Year Ended December 31, 2016
TDR net finance receivables	$	2
Number of TDR accounts	30
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17

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

(c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

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Allowance for Finance Receivable Losses

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Allowance for Finance Receivable Losses

Allowance for Finance Receivable Losses

Changes in the allowance for finance receivable losses by finance receivable type were as follows:

(dollars in millions)	Personal Loans			SpringCastle Portfolio			Real Estate Loans			Retail Sales Finance			Consolidated Total
Year Ended December 31, 2017
Balance at beginning of period	$	666		$	—		$	19		$	1		$	686
Provision for finance receivable losses	941			—			6			—			947
Charge-offs	(1,041		)	—			(5		)	(1		)	(1,047		)
Recoveries	102			—			3			1			106
Balance at end of period	$	668		$	—		$	23		$	1		$	692
Year Ended December 31, 2016
Balance at beginning of period	$	538		$	4		$	46		$	1		$	589
Provision for finance receivable losses	906			14			9			—			929
Charge-offs	(843		)	(17		)	(11		)	(1		)	(872		)
Recoveries	65			3			5			1			74
Other (a)	—			(4		)	(30		)	—			(34		)
Balance at end of period	$	666		$	—		$	19		$	1		$	686
Year Ended December 31, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	629			67			13			2			711
Charge-offs	(257		)	(78		)	(18		)	(3		)	(356		)
Recoveries	37			12			5			1			55
Other (b)	(1		)	—			—			—			(1		)
Balance at end of period	$	538		$	4		$	46		$	1		$	589

(a) Other consists of:

•     the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in

connection with the sale of our equity interest in the SpringCastle Joint Venture; and

•     the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance

receivable held for sale during 2016.

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

The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows:

(dollars in millions)	Personal Loans			Real Estate Loans			Retail Sales Finance			Total
December 31, 2017
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	528		$	2		$	1		$	531
Purchased credit impaired finance receivables	6			9			—			15
TDR finance receivables	134			12			—			146
Total	$	668		$	23		$	1		$	692
Finance receivables:
Collectively evaluated for impairment	$	14,276		$	57		$	6		$	14,339
Purchased credit impaired finance receivables	182			22			—			204
TDR finance receivables	317			49			—			366
Total	$	14,775		$	128		$	6		$	14,909
Allowance for finance receivable losses as a percentage of finance receivables	4.52		%	18.66		%	9.91		%	4.64		%
December 31, 2016
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	568		$	—		$	1		$	569
Purchased credit impaired finance receivables	29			8			—			37
TDR finance receivables	69			11			—			80
Total	$	666		$	19		$	1		$	686
Finance receivables:
Collectively evaluated for impairment	$	13,026		$	76		$	11		$	13,113
Purchased credit impaired finance receivables	353			24			—			377
TDR finance receivables	152			44			—			196
Total	$	13,531		$	144		$	11		$	13,686
Allowance for finance receivable losses as a percentage of finance receivables	4.92		%	13.31		%	4.42		%	5.01		%

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, 2017

Receivables Held-for-sale [Abstract]

Finance Receivables Held for Sale

Finance Receivables Held for Sale

We report finance receivables held for sale of $132 million at December 31, 2017 and $153 million at December 31, 2016, which are carried at the lower of cost or fair value and consist entirely of real estate loans. At December 31, 2017 and 2016, the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale.

See Note 3 for more information regarding our accounting policy for finance receivables held for sale.

SPRINGCASTLE PORTFOLIO

During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio from held for investment to held for sale and simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $167 million.

PERSONAL LOANS

During 2015, we transferred $608 million of personal loans from held for investment to held for sale. On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million.

REAL ESTATE LOANS

On November 30, 2016, we transferred $50 million of real estate loans from held for investment to held for sale. In connection with the December 2016 Real Estate Loan Sale, we sold a portfolio of first and second lien mortgage loans with a carrying value of $58 million and recorded a net loss in other revenues of less than $1 million.

On June 30, 2016, we transferred $257 million of real estate loans from held for investment to held for sale. In connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $250 million and recorded a net loss in other revenues of $4 million.

We did not have any other material transfer activity to or from finance receivables held for sale during 2017, 2016 or 2015.

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Investment Securities

12 Months Ended

Dec. 31, 2017

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, 2017
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	28	$	—	$	—		$	28
Obligations of states, municipalities, and political subdivisions	135		—		—			135
Certificates of deposit and commercial paper	60		—		—			60
Non-U.S. government and government sponsored entities	126		—		(1		)	125
Corporate debt	941		12		(5		)	948
Mortgage-backed, asset-backed, and collateralized:
RMBS	100		—		(1		)	99
CMBS	88		—		(1		)	87
CDO/ABS	96		—		—			96
Total bonds	1,574		12		(8		)	1,578
Preferred stock (a)	15		—		(1		)	14
Common stock (a)	21		2		—			23
Other long-term investments	1		—		—			1
Total (b)	$	1,611	$	14	$	(9	)	$	1,616
December 31, 2016
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	31	$	—	$	—		$	31
Obligations of states, municipalities, and political subdivisions	145		1		(1		)	145
Non-U.S. government and government sponsored entities	119		—		(1		)	118
Corporate debt	1,024		8		(7		)	1,025
Mortgage-backed, asset-backed, and collateralized:
RMBS	101		—		(1		)	100
CMBS	109		—		(1		)	108
CDO/ABS	102		—		—			102
Total bonds	1,631		9		(11		)	1,629
Preferred stock (a)	17		—		(1		)	16
Common stock (a)	16		1		—			17
Other long-term investments	2		—		—			2
Total (b)	$	1,666	$	10	$	(12	)	$	1,664

(a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016, which is classified as a restricted investment and carried at cost.

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, 2017
Bonds:
U.S. government and government sponsored entities	$	21	$	—		$	3	$	—		$	24	$	—
Obligations of states, municipalities, and political subdivisions	65		—			20		—			85		—
Non-U.S. government and government sponsored entities	89		(1		)	13		—			102		(1		)
Corporate debt	387		(3		)	93		(2		)	480		(5		)
RMBS	40		—			25		(1		)	65		(1		)
CMBS	40		—			38		(1		)	78		(1		)
CDO/ABS	48		—			26		—			74		—
Total bonds	690		(4		)	218		(4		)	908		(8		)
Preferred stock	3		—			7		(1		)	10		(1		)
Common stock	3		—			—		—			3		—
Other long-term investments	1		—			—		—			1		—
Total	$	697	$	(4	)	$	225	$	(5	)	$	922	$	(9	)
December 31, 2016
Bonds:
U.S. government and government sponsored entities	$	18	$	—		$	—	$	—		$	18	$	—
Obligations of states, municipalities, and political subdivisions	99		(1		)	2		—			101		(1		)
Non-U.S. government and government sponsored entities	55		(1		)	1		—			56		(1		)
Corporate debt	416		(6		)	8		(1		)	424		(7		)
RMBS	74		(1		)	1		—			75		(1		)
CMBS	66		(1		)	5		—			71		(1		)
CDO/ABS	64		—			3		—			67		—
Total bonds	792		(10		)	20		(1		)	812		(11		)
Preferred stock	6		—			8		(1		)	14		(1		)
Common stock	2		—			1		—			3		—
Total	$	800	$	(10	)	$	29	$	(2	)	$	829	$	(12	)

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

On a lot basis, we had 1,369 and 1,331 investment securities in an unrealized loss position at December 31, 2017 and 2016, respectively. We do not consider the 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, 2017, we had 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 2017, we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues. During each of the 2016 and 2015 periods, other-than-temporary impairment credit losses were immaterial.

There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities for the 2017, 2016, and 2015 periods.

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

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Proceeds from sales and redemptions	$	508		$	518		$	429
Realized gains	$	15		$	16		$	15
Realized losses	(1		)	(1		)	(1		)
Net realized gains	$	14		$	15		$	14

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 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	$	224	$	225
Due after 1 year through 5 years	530		531
Due after 5 years through 10 years	335		334
Due after 10 years	207		200
Mortgage-backed, asset-backed, and collateralized securities	282		284
Total	$	1,578	$	1,574

Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.

The fair value of securities on deposit with third parties totaled $537 million and $465 million at December 31, 2017 and 2016, respectively.

TRADING AND OTHER SECURITIES

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

(dollars in millions)
December 31,	2017		2016
Fixed maturity other securities:
Bonds
Non-U.S. government and government sponsored entities	$	1	$	1
Corporate debt	68		85
Mortgage-backed, asset-backed, and collateralized:
RMBS	1		1
CMBS	—		1
CDO/ABS	4		5
Total bonds	74		93
Preferred stock	6		6
Total	$	80	$	99

The mark-to-market and net 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,	2017			2016		2015
Mark-to-market gains (losses) on trading and other securities held at year end	$	(1	)	$	1	$	—
Net realized gains (losses) on trading and other securities sold or redeemed during the year	—			7		(3		)
Total	$	(1	)	$	8	$	(3	)

Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

GOODWILL

Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016
Balance at beginning of period	$	1,422	$	1,440
Adjustments to purchase price allocation*	—		(18		)
Balance at end of period	$	1,422	$	1,422

* See Note 2 for details regarding this transaction.

Goodwill was recorded at the OMFH subsidiary level. We did not record any impairments to goodwill during 2017 and 2016.

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, 2017
Customer relationships	$	223	$	(92	)	$	131
Trade names	220		—			220
VOBA	141		(90		)	51
Licenses	37		—			37
Other	12		(12		)	—
Total	$	633	$	(194	)	$	439
December 31, 2016
Customer relationships	$	223	$	(58	)	$	165
Trade names	220		—			220
VOBA	141		(74		)	67
Licenses	37		—			37
Other	12		(10		)	2
Total	$	633	$	(142	)	$	491

Amortization expense totaled $52 million in 2017, $70 million in 2016, and $16 million in 2015. 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
2018	$	42
2019	39
2020	38
2021	32
2022	3

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Other Assets

12 Months Ended

Dec. 31, 2017

Other Assets [Abstract]

Other Assets

Other Assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2017		2016
Deferred tax assets	$	139	$	180
Ceded insurance reserves	95		102
Prepaid expenses and deferred charges	89		89
Fixed assets, net	67		128
Other investments	29		52
Current tax receivable	13		20
Cost basis investments	11		11
Receivables from parent and affiliates	4		76
Other	34		32
Total	$	481	$	690

* Fixed assets were net of accumulated depreciation of $120 million at December 31, 2017 and $247 million at December 31, 2016. The decrease in fixed assets is primarily related to the contribution of SFMC in the form of a dividend. See Note 12 for more information regarding this transaction.

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Transactions with Affiliates

12 Months Ended

Dec. 31, 2017

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Transactions with Affiliates

Transactions with Affiliates

SUBSERVICING AGREEMENT

Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017, 2016, and 2015.

INVESTMENT MANAGEMENT AGREEMENT

Logan Circle provides investment management services for our investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017, 2016, and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress.

See Note 2 for more information regarding this transaction.

Related Party Transactions

AFFILIATE LENDING

Note Receivable from Parent

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 2018 and does not expect to demand payment from SFI in 2018. The note receivable from SFI totaled $391 million at December 31, 2017 and $285 million at December 31, 2016. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.87% at December 31, 2017. Interest revenue on the note receivable from SFI totaled $23 million during 2017, $19 million during 2016, and $15 million during 2015, which we report in interest income on notes receivable from parent and affiliates.

INTERCOMPANY AGREEMENTS

Dividend of SFMC to SFI

On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million, respectively, on the contribution date.

The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition.

Agreements with OGSC

OGSC, as successor to SFMC and SGSC, is a party to the following three intercompany agreements:

Services Agreement. OGSC provides the following services to various affiliates under a service agreement: 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 to OGSC are equal to 100% of the allocated cost of providing the services. We believe these allocations are reasonable among the entities receiving the services. In addition to the services noted above, OGSC assumed the services provided by SFMC, which primarily consist of providing operating staff and field management for our branches. During 2017, 2016, and 2015, we recorded $460 million, $243 million, and $224 million, respectively, of service fee expenses, which are included in other operating expenses.

License Agreement.As a result of the merger of SFMC and SGSC noted above, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated. The monthly license fee payable by SGSC for its use of the information technology systems and software was 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 was 100% of the actual costs incurred by SFMC. Amounts recorded by us under this license agreement totaled $1 million in 2017 and $6 million in 2016 and 2015, respectively, and are included as a contra expense to other operating expenses.

Building Lease Agreement. In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement whereby SFMC leased six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other charges, was terminated effective April 5, 2017. As a result, SFMC’s rent charged to SGSC was $1 million during 2017 and $4 million during 2016 and 2015, respectively, which is included as a contra expense to other operating expenses.

Agreements with OCLI

Loan Referral Fees. OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During 2017 and 2016, these fees were $56 million and $17 million, respectively. Certain costs incurred by OCLI to provide these services are included in deferred origination costs.

Loan Purchase and Sale Agreements. From time to time, OCLI enters into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sells certain personal loans and continues to service the loans.

During the fourth quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $2 million for an aggregate purchase price of $2 million. OCLI does not service these loans.

During the third quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $4 million for an aggregate purchase price of $4 million. OCLI does not service these loans.

During the second quarter of 2016, OCLI had sold personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million. OCLI continues to service these loans. During 2017 and 2016, SFC recorded $2 million and $3 million, respectively, of service fee expenses for these personal loans.

See Note 10 and Note 16 regarding receivables and payables from affiliates and parent.

Capital Contribution to SFC

During 2015, Independence received a capital contribution of $1.1 billion from OMH in connection with the OneMain Acquisition. In conjunction with the retrospective inclusion of Independence in the financial results of the Company as described in Footnote 2 above, we have reflected this capital contribution as a contribution to the Company.

During 2016, SFC received a capital contribution of $10 million from SFI to satisfy an interest payment required by the Junior Subordinated Debenture.

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Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Transactions with Affiliates

SUBSERVICING AGREEMENT

Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017, 2016, and 2015.

INVESTMENT MANAGEMENT AGREEMENT

Logan Circle provides investment management services for our investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017, 2016, and 2015.

SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE

On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress.

See Note 2 for more information regarding this transaction.

Related Party Transactions

AFFILIATE LENDING

Note Receivable from Parent

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 2018 and does not expect to demand payment from SFI in 2018. The note receivable from SFI totaled $391 million at December 31, 2017 and $285 million at December 31, 2016. The interest rate for the UPB is the lender’s cost of funds rate, which was 5.87% at December 31, 2017. Interest revenue on the note receivable from SFI totaled $23 million during 2017, $19 million during 2016, and $15 million during 2015, which we report in interest income on notes receivable from parent and affiliates.

INTERCOMPANY AGREEMENTS

Dividend of SFMC to SFI

On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million, respectively, on the contribution date.

The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition.

Agreements with OGSC

OGSC, as successor to SFMC and SGSC, is a party to the following three intercompany agreements:

Services Agreement. OGSC provides the following services to various affiliates under a service agreement: 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 to OGSC are equal to 100% of the allocated cost of providing the services. We believe these allocations are reasonable among the entities receiving the services. In addition to the services noted above, OGSC assumed the services provided by SFMC, which primarily consist of providing operating staff and field management for our branches. During 2017, 2016, and 2015, we recorded $460 million, $243 million, and $224 million, respectively, of service fee expenses, which are included in other operating expenses.

License Agreement.As a result of the merger of SFMC and SGSC noted above, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated. The monthly license fee payable by SGSC for its use of the information technology systems and software was 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 was 100% of the actual costs incurred by SFMC. Amounts recorded by us under this license agreement totaled $1 million in 2017 and $6 million in 2016 and 2015, respectively, and are included as a contra expense to other operating expenses.

Building Lease Agreement. In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement whereby SFMC leased six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other charges, was terminated effective April 5, 2017. As a result, SFMC’s rent charged to SGSC was $1 million during 2017 and $4 million during 2016 and 2015, respectively, which is included as a contra expense to other operating expenses.

Agreements with OCLI

Loan Referral Fees. OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During 2017 and 2016, these fees were $56 million and $17 million, respectively. Certain costs incurred by OCLI to provide these services are included in deferred origination costs.

Loan Purchase and Sale Agreements. From time to time, OCLI enters into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sells certain personal loans and continues to service the loans.

During the fourth quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $2 million for an aggregate purchase price of $2 million. OCLI does not service these loans.

During the third quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $4 million for an aggregate purchase price of $4 million. OCLI does not service these loans.

During the second quarter of 2016, OCLI had sold personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million. OCLI continues to service these loans. During 2017 and 2016, SFC recorded $2 million and $3 million, respectively, of service fee expenses for these personal loans.

See Note 10 and Note 16 regarding receivables and payables from affiliates and parent.

Capital Contribution to SFC

During 2015, Independence received a capital contribution of $1.1 billion from OMH in connection with the OneMain Acquisition. In conjunction with the retrospective inclusion of Independence in the financial results of the Company as described in Footnote 2 above, we have reflected this capital contribution as a contribution to the Company.

During 2016, SFC received a capital contribution of $10 million from SFI to satisfy an interest payment required by the Junior Subordinated Debenture.

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Long-term Debt

12 Months Ended

Dec. 31, 2017

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, 2017				December 31, 2016
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior debt	$	14,878	$	15,436	$	13,787	$	14,340
Junior subordinated debt	172		189		172		158
Total	$	15,050	$	15,625	$	13,959	$	14,498

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

	Years Ended December 31,						At December 31,
	2017		2016		2015		2017		2016
Senior debt	5.73	%	5.60	%	6.56	%	5.56	%	5.80	%
Junior subordinated debt	6.41		12.26		12.26		6.37		12.26
Total	5.74		5.67		6.65		5.57		5.88

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2017 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.04% - 6.94%			5.25% - 8.25%			3.11%
2018	—			700			—		700
2019	—			696			—		696
2020	—			1,299			—		1,299
2021	—			1,446			—		1,446
2022	—			1,000			—		1,000
2023-2067	—			1,175			350		1,525
Securitizations (b)	8,711			—			—		8,711
Total principal maturities	$	8,711		$	6,316		$	350	$	15,377
Total carrying amount	$	8,688		$	6,190		$	172	$	15,050
Debt issuance costs (c)	$	(24	)	$	(30	)	$	—	$	(54	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 3.11% as of December 31, 2017. Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00%.

(b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017, there were no amounts drawn under our revolving conduit facilities. See Note 14 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $20 million at December 31, 2017 and are reported in other assets.

SFC’s Medium-Term Note Issuances

5.625% Senior Notes Due 2023

On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the “5.625% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis.

SFC used a portion of the net proceeds from the sale of the 5.625% SFC Notes to repay at maturity approximately $557 million aggregate principal amount of its existing 6.90% Medium-Term Notes. SFC intends to use the remaining net proceeds from the sale of the 5.625% SFC Notes for general corporate purposes, which may include additional debt repurchases and repayments.

6.125% Senior Notes Due 2022

On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis.

On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price.

SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes.

8.25% Senior Notes Due 2020

On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under the SFC Base Indenture, as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture” and, collectively with the SFC Base Indenture and the SFC First Supplemental Indenture, the SFC Third Supplemental Indenture, and the SFC Fourth Supplemental Indenture thereto, the “Indenture”), pursuant to which OMH provided a guarantee of the 8.25% SFC notes on an unsecured basis.

SFC used a portion of the proceeds from the sale of the 8.25% SFC Notes to repurchase approximately $600 million aggregate principal amount of its existing senior notes that were scheduled to mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased new 8.25% SFC Notes in the offering. SFC used the remaining net proceeds for general corporate purposes.

The 5.625% SFC Notes, 6.125% SFC Notes and 8.25% SFC Notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries.

The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund.

The Indenture contain covenants that, among other things, (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them were to occur, would permit or require the principal of and accrued interest on the SFC Notes to become, or to be declared, due and payable.

GUARANTY AGREEMENTS

5.625% SFC Notes

On December 8, 2017, OMH entered into the SFC Fourth Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.625% SFC Notes. As of December 31, 2017, $875 million aggregate principal amount of the 5.625% SFC Notes were outstanding.

6.125% SFC Notes

On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of December 31, 2017, $1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding.

8.25% SFC Notes

On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of December 31, 2017, $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding.

5.25% SFC Notes

On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of December 31, 2017, $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding.

Other SFC Notes

On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consist of the following:

• 8.25% Senior Notes due 2023

• 7.75% Senior Notes due 2021

• 6.00% Senior Notes due 2020; and

• the Junior Subordinated Debenture;

The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2017, approximately $1.6 billion aggregate principal amount of the Other SFC Notes were outstanding.

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

OMFH 6.75% Notes and 7.25% Notes Indenture

On December 11, 2014, OMFH and certain of its subsidiaries entered into the OMFH Indenture, among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of the OMFH Notes. The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries, other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2017, $1.5 billion aggregate principal amount of the OMFH Notes were outstanding.

On November 8, 2016, OMH entered into the OMFH Second Supplemental Indenture, pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company.

On December 8, 2017, OMFH provided notice to note holders to redeem all $700 million outstanding principal amount of the 2019 OMFH Notes on January 8, 2018, at a redemption price equal to 103.375%, plus accrued and unpaid interest to the redemption date. See Note 25 for more detail on this redemption.

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

DEBT COVENANTS

SFC Debt Agreements

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 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, 2017, SFC was in compliance with all of the covenants under its debt agreements.

Junior Subordinated Debenture

In January of 2007, SFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60-year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 3.11% as of December 31, 2017. Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00%.

Pursuant to the terms of the Junior Subordinated Debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated 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 Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated 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.

Based upon SFC’s financial results for the 12 months ended December 31, 2017, a mandatory trigger event did not occur with respect to the interest payment due in January of 2018, as SFC was in compliance with both required ratios discussed above.

OMFH Debt Agreements

None of OMFH’s debt agreements require OMFH or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, the OMFH Indenture does contain a number of covenants that limit, among other things, OMFH’s ability and the ability of most of its subsidiaries to incur additional debt; create liens securing certain debt; pay dividends on or make distributions in respect of its capital stock or make investments or other restricted payments; create restrictions on the ability of its restricted subsidiaries to pay dividends to OMFH or make certain other intercompany transfers; sell certain assets; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and enter into certain transactions with affiliates. The OMFH Indenture also contains customary events of default which would permit the trustee or the holders of the OMFH Notes to declare the OMFH Notes to be immediately due and payable if not cured within applicable grace periods, including the nonpayment of principal, interest or premium, if any, when due; violation of covenants and other agreements contained in the OMFH Indenture; payment default after final maturity or cross acceleration of certain material debt; certain bankruptcy and insolvency events; material judgment defaults; and the failure of any guarantee of the notes, other than in accordance with the terms of the OMFH Indenture or such guarantee. On November 8, 2016, OMH agreed to fully, unconditionally, and irrevocably guarantee the OMFH Notes.

As of December 31, 2017, OMFH was in compliance with all of the covenants under its debt agreements.

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Variable Interest Entities

12 Months Ended

Dec. 31, 2017

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

CONSOLIDATED VIES

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 asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns.

The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. In addition, with respect to each financing transaction that is subject to the risk retention requirements of Section 941 of the Dodd-Frank Act, we retain at least 5% of the balance of each class of debt obligations and at least 5% of the residual interest in each VIE which, collectively, represents 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. We have no obligation to repurchase or replace qualified finance receivables 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 liabilities if its 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,	2017		2016
Assets
Cash and cash equivalents	$	4	$	3
Finance receivables:
Personal loans	9,769		9,509
Allowance for finance receivable losses	465		501
Restricted cash and restricted cash equivalents	482		552
Other assets	20		14
Liabilities
Long-term debt	$	8,688	$	8,240
Other liabilities	15		16

SECURITIZED BORROWINGS

Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes.

Our securitized borrowings at December 31, 2017 consisted of the following:

(dollars in millions)	Issue Amount *		Current Note Amounts Outstanding *		Current Weighted Average Interest Rate		Original Revolving Period	Issue Date	Maturity Date
Consumer Securitizations:
SLFT 2015-A	$	1,163	$	1,163	3.47	%	3 years	02/26/2015	11/2024
SLFT 2015-B	314		314		3.78	%	5 years	04/07/2015	05/2028
SLFT 2016-A (a)	532		500		3.10	%	2 years	12/14/2016	11/2029
SLFT 2017-A (b)	652		619		2.98	%	3 years	06/28/2017	07/2030
OMFIT 2014-2	1,185		320		4.16	%	2 years	07/30/2014	09/2024
OMFIT 2015-1	1,229		1,229		3.74	%	3 years	02/05/2015	03/2026
OMFIT 2015-2	1,250		750		3.40	%	2 years	05/21/2015	07/2025
OMFIT 2015-3	293		293		4.21	%	5 years	09/29/2015	11/2028
OMFIT 2016-1 (c)	500		459		4.01	%	3 years	02/10/2016	02/2029
OMFIT 2016-2 (d)	890		816		4.50	%	2 years	03/23/2016	03/2028
OMFIT 2016-3 (e)	350		317		4.33	%	5 years	06/07/2016	06/2031
OMFIT 2017-1 (f)	947		900		2.66	%	2 years	09/06/2017	09/2032
Total consumer securitizations			7,680
Auto Securitization:
ODART 2016-1 (g)	754		188		2.91	%	—	07/19/2016	Various
ODART 2017-1 (h)	300		268		2.61	%	1 year	02/01/2017	Various
ODART 2017-2 (i)	605		575		2.63	%	1 year	12/11/2017	Various
Total auto securitizations			1,031
Total secured structured financings			$	8,711

* Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts.

(a) SLFT 2016-A Securitization. We initially retained $32 million of the asset-backed notes.

(b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes.

(c) OMFIT 2016-1 Securitization.We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold.

(d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold.

(e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes.

(f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes.

(g) ODART 2016-1 Securitization. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes.

(h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes.

(i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes.

Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million, which excluded $33 million for the Class D Notes owned by Twenty First Street Funding, LLC, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption.

Call of 2014-1 Notes. On November 20, 2017, we exercised our right to redeem the 2014-1 Notes for a redemption price of $81 million. The outstanding principal balance of the asset-backed notes was $81 million on the date of the optional redemption.

REVOLVING CONDUIT FACILITIES

As of December 31, 2017, our borrowings under conduit facilities consisted of the following:

(dollar in millions)	Note Maximum Balance		Amount Drawn		Revolving Period End	Backed by Loans Acquired from Subsidiaries of	Due and Payable (a)
First Avenue Funding, LLC	$	250	$	—	June 2018	SFC - auto loans	(b)
Seine River Funding, LLC	500		—		December 2019	SFC - personal loans	December 2022
OneMain Financial B6 Warehouse Trust	600		—		February 2019	OMFH - personal loans	February 2021
Rocky River Funding, LLC	250		—		September 2019	OMFH - personal loans	October 2020
OneMain Financial Funding VII, LLC	650		—		October 2019	OMFH - personal loans	November 2021
Thur River Funding, LLC	350		—		June 2020	SFC - personal loans	February 2027
OneMain Financial Funding IX, LLC	600		—		June 2020	OMFH - personal loans	July 2021
Mystic River Funding, LLC	850		—		September 2020	SFC - personal loans	October 2023
Fourth Avenue Auto Funding, LLC	250		—		September 2020	SFC - auto loans	October 2021
OneMain Financial Auto Funding I, LLC	750		—		October 2020	OMFH - auto loans	November 2027
Total	$	5,050	$	—

(a) The date following the revolving period, that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full.

(b) For First Avenue Funding, LLC, principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue Funding, LLC.

During the 2017 period we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above:

	Termination Date
Midbrook 2013-VFN1 Trust	4/13/2017
OneMain Financial B5 Warehouse Trust	4/13/2017
Sumner Brook 2013-VFN1 Trust	6/29/2017
Whitford Brook 2014-VFN1 Trust	7/14/2017
OneMain Financial B3 Warehouse Trust	7/14/2017
Springleaf 2013-VFN1 Trust	9/28/2017
Second Avenue Funding LLC	9/29/2017
OneMain Financial B4 Warehouse Trust	11/8/2017

VIE INTEREST EXPENSE

Other than our retained interest in certain debt obligations issued by VIEs and residual interests in the remaining consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $323 million in 2017, $341 million in 2016, and $216 million in 2015.

DECONSOLIDATED VIES

As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt.

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Insurance

12 Months Ended

Dec. 31, 2017

Insurance [Abstract]

Insurance

Insurance

INSURANCE RESERVES

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

(dollars in millions)
December 31,	2017		2016
Finance receivable related:
Payable to OMH:
Unearned premium reserves	515		508
Claim reserves	75		78
Subtotal (a)	590		586
Payable to third-party beneficiaries:
Unearned premium reserves	99		98
Benefit reserves	103		105
Claim reserves	18		20
Subtotal (b)	220		223
Non-finance receivable related:
Unearned premium reserves	81		86
Benefit reserves	375		388
Claim reserves	61		60
Subtotal (b)	517		534
Total	$	1,327	$	1,343

(a) Reported as a contra-asset to net finance receivables.

(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 assumed from non-affiliated insurance companies totaled $325 million and $333 million at December 31, 2017 and 2016, respectively.

Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $95 million and $102 million at December 31, 2017 and 2016, respectively.

Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable):

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	158		$	177		$	70
Less reinsurance recoverables	(26		)	(26		)	(22		)
Net balance at beginning of period	132			151			48
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition	—			—			104
Additions for losses and loss adjustment expenses incurred to:
Current year	188			203			83
Prior years *	5			(20		)	5
Total	193			183			88
Reductions for losses and loss adjustment expenses paid related to:
Current year	(115		)	(124		)	(63		)
Prior years	(78		)	(78		)	(26		)
Total	(193		)	(202		)	(89		)
Foreign currency translation adjustment	(1		)	—			—
Net balance at end of period	131			132			151
Plus reinsurance recoverables	23			26			26
Balance at end of period	$	154		$	158		$	177

* Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017, primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies (ii) a redundancy in the prior years’ net reserves of $20 million at December 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed.

Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

											At December 31, 2017
(dollars in millions)	2013 (a)		2014 (a)		2015 (a)		2016 (a)		2017		Incurred-but- not-reported Liabilities (b)	Cumulative Number of Reported Claims	Cumulative Frequency (c)
Credit Insurance
Accident Year
2013	$	140	$	127	$	125	$	124	$	124	—	50,295	2.7	%
2014	—		145		132		130		131		3	51,776	2.7	%
2015	—		—		138		129		129		8	52,505	2.8	%
2016	—		—		—		138		135		20	51,558	2.8	%
2017	—		—		—		—		136		59	39,329	2.2	%
Total									$	655

(a) Unaudited.

(b) Includes expected development on reported claims.

(c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force.

Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

(dollars in millions)	2013 *		2014 *		2015 *		2016 *		2017
Credit Insurance
Accident Year
2013	$	68	$	105	$	115	$	121	$	124
2014	—		71		110		121		128
2015	—		—		71		109		121
2016	—		—		—		75		115
2017	—		—		—		—		77
Total									$	565
All outstanding liabilities before 2013, net of reinsurance									—
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	90

* Unaudited.

The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows:

(dollars in millions)
December 31,	2017		2016 *		2015 *
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:
Credit insurance	$	90	$	96	$	105
Other short-duration insurance lines	22		20		25
Total	112		116		130
Reinsurance recoverable on unpaid claims:
Other short-duration insurance lines	20		22		22
Insurance lines other than short-duration	22		20		25
Total gross liability for unpaid claims and claim adjustment expense	$	154	$	158	$	177

* Unaudited.

We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. For the long-tailed Excess & Surplus products, which have a longer period of time before claims are paid, unpaid claim liabilities are estimated by a third party and reviewed by our appointed actuary using statistical analyses, including analysis of trends in loss severity and frequency.

There have been no significant changes in methodologies or assumptions during 2017.

Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017, were as follows:

Years	1		2		3		4		5
Credit insurance	55.4	%	29.4	%	8.9	%	4.8	%	2.5	%

STATUTORY ACCOUNTING

Springleaf and OneMain insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana DOI and the Texas DOI, respectively, which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and 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,	2017		2016		2015
Property and casualty
Yosemite	$	19	$	11	$	15
Triton	31		14		3
Life and health
Merit	$	37	$	20	$	(1	)
AHL	34		71		11

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

(dollars in millions)
December 31,	2017		2016
Property and casualty
Yosemite	$	42	$	63
Triton	170		139
Life and health
Merit	$	79	$	133
AHL	130		215

Springleaf and OneMain insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI and the Texas DOI, respectively. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2017 and 2016, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels.

DIVIDEND RESTRICTIONS

Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. State law restricts the amounts that Merit and Yosemite may pay as dividends without prior notice to the Indiana DOI and the amounts that AHL and Triton may pay as dividends without prior notice to the Texas DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas 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 or Texas DOI prior to its payment. The maximum ordinary dividends for an Indiana or Texas 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 or Texas DOI prior to its payment. These approved dividends are called “extraordinary dividends.” AHL and Triton paid extraordinary dividends to OMFH totaling $111 million during 2017, $105 million during 2016 and $68 million of ordinary dividends subsequent to the effective closing of the OneMain Acquisition in 2015. Merit and Yosemite paid extraordinary dividends to SFC totaling $125 million, $63 million, and $100 million during 2017, 2016, and 2015, respectively.

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Other Liabilities

12 Months Ended

Dec. 31, 2017

Other Liabilities Disclosure [Abstract]

Other Liabilities

Other Liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2017		2016
Payables to parent and affiliates *	$	189	$	39
Accrued expenses and other liabilities	79		93
Accrued interest on debt	58		61
Salary and benefit liabilities	31		45
Insurance liabilities	12		14
Loan principal warranty reserve	8		14
Retirement plans	5		31
Other	28		43
Total	$	410	$	340

* Payables to parent and affiliates at December 31, 2017 primarily consisted of payable to OGSC for services provided to SFC under its

intercompany service agreements. See Note 12 for further information regarding SFC’s intercompany agreements.

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Capital Stock

12 Months Ended

Dec. 31, 2017

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 SFC board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance.

Par value and shares authorized at December 31, 2017 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,	2017	2016	2017	2016
Shares issued and outstanding	—	—	10,160,021	10,160,021

During 2016, SFC received capital contributions from SFI totaling $10 million to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt.

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

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, 2017
Balance at beginning of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Other comprehensive income before reclassifications	14			3			4			21
Reclassification adjustments from accumulated other comprehensive loss	(9		)	—			—			(9		)
Balance at end of period	$	4		$	(1	)	$	3		$	6
Year Ended December 31, 2016
Balance at beginning of period	$	(14	)	$	(19	)	$	—		$	(33	)
Other comprehensive income before reclassifications	23			15			3			41
Reclassification adjustments from accumulated other comprehensive loss	(10		)	—			(4		)	(14		)
Balance at end of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(18		)	(6		)	(4		)	(28		)
Reclassification adjustments from accumulated other comprehensive loss	(8		)	—			—			(8		)
Balance at end of period	$	(14	)	$	(19	)	$	—		$	(33	)

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,	2017			2016			2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	15		$	12
Income tax effect	(5		)	(5		)	(4		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	9			10			8
Unrealized gains on foreign currency translation adjustments:
Reclassification from accumulated other comprehensive income (loss) to other revenues	—			4			—
Total	$	9		$	14		$	8

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Income Taxes

12 Months Ended

Dec. 31, 2017

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 IRS. AHL, an insurance subsidiary of SFC, is not an eligible company under Internal Revenue Code Section 1504 and therefore, files separate federal life insurance tax returns. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH.

The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico and the U.S. Virgin Islands. 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, 2017, the Company had no undistributed foreign earnings.

Components of income (loss) before income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016		2015
Income (loss) before income tax expense (benefit) - U.S. operations	$	380	$	380	$	(208	)
Income before income tax expense - foreign operations	15		17		12
Total	$	395	$	397	$	(196	)

Components of income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016			2015
Current:
Federal	$	190	$	210		$	80
Foreign	2		1			1
State	8		21			5
Total current	200		232			86
Deferred:
Federal	34		(92		)	(192		)
Foreign *	—		5			—
State	9		(18		)	(16		)
Total deferred	43		(105		)	(208		)
Total	$	243	$	127		$	(122	)

* Deferred foreign income taxes were less than $1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above.

Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico and the U.S. Virgin Islands. During the 2016 and 2015 periods, expense from foreign income taxes also included United Kingdom operations.

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

Years Ended December 31,	2017		2016		2015
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Impact of Tax Act	21.69		—		—
State income taxes, net of federal	2.63		0.48		7.62
Return to provision adjustment	0.81		0.26		0.89
Excess tax benefit on share-based compensation	0.33		(0.18	)	—
Tax impact of United Kingdom subsidiary liquidation	—		(0.54	)	—
Non-controlling interests	—		(2.49	)	22.87
Nondeductible compensation	—		—		(2.78	)
Other, net	1.09		(0.66	)	(1.14	)
Effective income tax rate	61.55	%	31.87	%	62.46	%

The effective income tax rate for 2017, 2016, and 2015 differed from the statutory federal income tax rate primarily due to the recognition of the impact of the Tax Act, effects of the non-controlling interest in the previously owned SpringCastle Portfolio and state income taxes. The effective income 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 statutory federal income tax rate of (2.49)% and 22.87% in 2016 and 2015, respectively.

The difference in the effective income tax rate in 2017 as compared to 2016 is primarily due to the recognition of the impact of the Tax Act which increased our 2017 effective income tax rate by 21.69% as compared to 2016. As a result of the Tax Act we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. The difference in the impact on the effective income tax rate due to non-controlling interest in 2016 as compared to 2015 is due to the fact that the net income attributable to non-controlling interest was a smaller percentage of the total income (loss) in 2016 as compared to 2015.

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

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Balance at beginning of year	$	16		$	15		$	4
Increases in tax positions for current years	1			2			10
Increases in tax positions for prior years	—			—			4
Lapse in statute of limitations	(2		)	(1		)	—
Settlements with tax authorities	—			—			(1		)
Decreases in tax positions for prior years	—			—			(2		)
Balance at end of year	$	15		$	16		$	15

Our gross unrecognized tax benefits include related interest and penalties. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 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 years 2011 to 2013 by the IRS. We are also under examination of various states for the years 2011 to 2016. Management believes it has adequately provided for taxes for such years.

Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2017			2016
Deferred tax assets:
Allowance for loan losses	$	146		$	246
State taxes, net of federal	65			58
Mark-to-market	55			55
Pension/employee benefits	5			19
Acquisition costs	6			6
Federal and foreign net operating losses and tax attributes	5			4
Insurance reserves	3			—
Legal and warranty reserve	2			6
Other intangibles	2			1
Other	9			9
Total	298			404
Deferred tax liabilities:
Debt fair value adjustment	44			90
Goodwill	41			37
Deferred loan fees	14			12
Discount - debt exchange	11			16
Deferred insurance commissions	2			2
Impact of tax accounting method change	—			38
Insurance Reserves	—			2
Other	5			1
Total	117			198
Net deferred tax assets before valuation allowance	181			206
Valuation allowance	(44		)	(29		)
Net deferred tax assets	$	137		$	177

The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. The decrease of our net deferred tax asset is mainly attributable to recording of an adjustment as of December 31, 2017 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act.

During 2016, we liquidated our United Kingdom operations. As such, there are no net operating loss carryforwards (and no offsetting valuation allowances) related to our United Kingdom operations at December 31, 2016.

At December 31, 2017, we had state net operating loss carryforwards of $704 million, compared to $750 million at December 31, 2016. The state net operating loss carryforwards expire between 2018 and 2037. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $44 million and $29 million at December 31, 2017 and 2016, 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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Lease Commitments, Rent Expense, and Contingent Liabilities

12 Months Ended

Dec. 31, 2017

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
2018	$	52
2019	40
2020	30
2021	20
2022	11
2023+	14
Total	$	167

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 $77 million in 2017, $80 million in 2016, and $36 million in 2015.

LEGAL CONTINGENCIES

In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our 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 evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims.

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

At December 31, 2017, our reserve for sales recourse obligations totaled $8 million, which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish an additional reserve for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction.

The activity in our reserve for sales recourse obligations was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	13		$	15		$	24
Recourse losses	(1		)	—			(2		)
Provision for recourse obligations, net of recoveries *	(4		)	(2		)	(7		)
Balance at end of period	$	8		$	13		$	15

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

At December 31, 2017, there were no material recourse requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When 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.

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Benefit Plans

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

PENSION PLANS

As noted in Note 12 Related Party Transactions, the Company contributed SFMC, a former subsidiary of SFC to SFI in the form of a dividend. All assets and liabilities of SFMC were transferred including the net pension liabilities and any other obligations related to the Springleaf Financial Services Retirement Plan, a noncontributory defined benefit plan, the Springleaf Financial Services Excess Retirement Income Plan, an unfunded defined benefit plan, and the Supplemental Executive Retirement Income Plan, an unfunded defined benefit plan, to OMH. The projected net pension obligation related to these plans as of December 31, 2016 was $25 million.

The CommoLoCo Retirement Plan, a noncontributory defined benefit plan, which had a projected net pension obligation as of December 31, 2016 of $6 million, was retained by the Company.

The CommoLoCo Retirement Plan, which is subject to the provisions of the Puerto Rico tax code, was frozen effective December 31, 2012. 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. The fair value of plan assets net of expense for the CommoLoCo retirement Plan totaled $12 million as of December 31, 2017 and the projected benefit obligation totaled $17 million. The projected net pension obligation related to the CommoLoco Retirement Plan was $5 million.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2017

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, which was amended and restated effective as of May 25, 2016, under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. The amendment and restatement of the Omnibus Plan (i) extended the term of the Omnibus Plan from October 2023 to May 2026 and (ii) limited the number of cash and equity-based awards under the Omnibus Plan valued at more than $500,000 to non-employee directors during the calendar year.

As of December 31, 2017, 13,199,096 shares of common stock were reserved for issuance under the Omnibus Plan, including 1,411,236 shares subject to outstanding equity awards. 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, RSUs and RSAs, stock appreciation rights, 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. 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 2017, 2016, and 2015 was $27.85, $26.14, and $47.44, respectively. The total fair value of service-based awards that vested during 2017, 2016, and 2015 was $18 million, $10 million, and $7 million, respectively.

The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	1,382,920		$	35.86
Granted	407,184		27.85
Vested	(575,322	)	31.86
Forfeited	(73,172	)	38.10
Unvested at December 31, 2017	1,141,610		34.87		1.91

Performance-based Awards

During 2017, 2016 and 2015, OMH awarded 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, 2017. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2017, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2017, 2018, and 2019; 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 filing date of this Annual Report on Form 10-K 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 canceled, and all expense recognized to that date is reversed.

Prior to the OneMain Acquisition, none of the performance targets related to certain PRSUs issued in 2014 were deemed probable of occurring. Subsequent to the OneMain Acquisition, the targets were re-evaluated and the 100% performance targets were deemed probable of occurring. Accordingly in 2015, we recorded a cumulative catch-up expense of $6 million, which is included in acquisition-related transaction and integration expenses. During the fourth quarter of 2016, the Compensation Committee determined that the PRSU performance targets were 100% achieved. Accordingly, a portion of the PRSU awards vested immediately, with the remaining shares subject to vesting upon meeting stated service requirements.

The weighted average grant date fair value of performance-based awards issued in 2017 and 2015 was $24.98 and $34.45, respectively. No performance shares were granted during 2016. The total fair value of performance-based awards that vested during 2017 and 2016 was $2 million and $4 million, respectively. No performance-based awards vested in 2015.

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	407,948		$	25.94
Granted	90,072		24.98
Vested	(92,000	)	24.78
Forfeited	(136,394	)	25.70
Unvested at December 31, 2017	269,626		26.14		3.78

Following the contribution of SFMC to SFI, share-based compensation expense is primarily incurred by OGSC and subsequently allocated to SFC by OMGS. As of December 31, 2017, there was no unrecognized compensation expense. See Note 12 for information regarding the dividend of SFMC to SFI.

Total share-based compensation expense, net of forfeitures, for all stock-based awards directly incurred by SFC amounted to $5 million in 2017, $8 million in 2016 and $2 million in 2015. The total income tax benefit recognized for stock-based compensation was $2 million in 2017, $3 million in 2016 and $1 million in 2015.

Initial Stockholder Incentive Units

In the fourth quarter of 2015, certain executives of the Company surrendered a portion of their incentive units in the Initial Stockholder 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 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 in 2015, 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 2015 related to the incentive units with a capital contribution offset such that the impact to overall shareholder’s equity was neutral. No expense was recognized for these awards during 2017 or 2016.

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Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Our segments coincide with how our businesses are managed. At December 31, 2017, our two segments included:

• Consumer and Insurance — We originate and service personal loans and offer credit insurance (life insurance, disability insurance, involuntary unemployment insurance, and collateral protection insurance) and non-credit insurance through our branch network and our centralized operations. We also offer home and auto membership plans of an unaffiliated company. Our branch network conducts business in 44 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is located near an existing branch, 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, our centralized operations originate the loan.

• Acquisitions and Servicing — SFI services the SpringCastle Portfolio. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. Unless SFI is terminated, SFI will continue to provide the servicing for these loans pursuant to a servicing agreement, which SFI services as unsecured loans because the liens are subordinated to superior ranking security interests. See Note 2 for information regarding the SpringCastle Interest Sale and the acquisition and disposition of the SpringCastle Portfolio.

The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i)

our liquidating real estate loan portfolio as discussed below, (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation), (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016.

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

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 OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, 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 (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods).

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	Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance and Other - The Company has securitization debt 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. 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 Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and
	l Consumer and Insurance - receives remainder of unallocated average debt.
	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 $208 million for Other.
	For the period first quarter 2015 to the OneMain Acquisition
	Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance.
	Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represented the following:
	l  Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and
	l  Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments.
Provision for finance receivable losses	Directly correlated with specific segment, except for allocations related to personal loans and retail in 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:
	l  Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt.
	l  Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt.
Acquisition-related transaction and integration expenses	Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided.
Other expenses	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 - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs, and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and reestablishes interest income recognition on a historical cost basis;

• Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis;

• Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis;

• Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio;

• Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis;

• Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and

• Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition.

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			Other (a)			Eliminations		Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2017
Interest income	$	3,296	$	—		$	23		$	—	$	(132	)	$	3,187
Interest expense	765		—			21			—		30			816
Provision for finance receivable losses	955		—			7			—		(15		)	947
Net interest income (loss) after provision for finance receivable losses	1,576		—			(5		)	—		(147		)	1,424
Other revenues (b)	549		—			23			—		(32		)	540
Acquisition-related transaction and integration expenses	66		—			6			—		(3		)	69
Other expenses	1,458		2			11			—		29			1,500
Income (loss) before income tax expense (benefit)	$	601	$	(2	)	$	1		$	—	$	(205	)	$	395
Assets (c)	$	16,793	$	—		$	680		$	—	$	2,172		$	19,645

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Other (a)			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2016
Interest income	$	3,314	$	102	$	51		$	—		$	(371	)	$	3,096
Interest expense	738		20		43			—			55			856
Provision for finance receivable losses	908		14		6			—			1			929
Net interest income (loss) after provision for finance receivable losses	1,668		68		2			—			(427		)	1,311
Net gain on sale of SpringCastle interests	—		167		—			—			—			167
Other revenues (b)	609		—		(16		)	—			(6		)	587
Acquisition related transaction and integration expenses	100		1		27			—			(20		)	108
Other expenses	1,461		16		29			—			54			1,560
Income before income taxes	716		218		(70		)	—			(467		)	397
Income before income tax attributable to non-controlling interests	—		28		—			—			—			28
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	716	$	190	$	(70	)	$	—		$	(467	)	$	369
Assets (c)	$	15,783	$	—	$	590		$	—		$	1,967		$	18,340
At or for the Year Ended December 31, 2015
Interest income	$	1,470	$	455	$	76		$	—		$	(91	)	$	1,910
Interest expense	242		87		268			(5		)	123			715
Provision for finance receivable losses	346		68		(1		)	—			298			711
Net interest income (loss) after provision for finance receivable losses	882		300		(191		)	5			(512		)	484
Other revenues	274		5		19			(5		)	(18		)	275
Acquisition related transaction and integration expenses	16		1		48			—			(3		)	62
Other expenses	768		61		50			—			14			893
Income (loss) before income tax expense (benefit)	372		243		(270		)	—			(541		)	(196		)
Income before income tax attributable to non-controlling interests	—		127		—			—			—			127
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	372	$	116	$	(270	)	$	—		$	(541	)	$	(323	)
Assets	$	15,875	$	1,784	$	1,415		$	—		$	2,322		$	21,396

(a) Real Estate segment has been combined with “Other” for the prior period.

(b) Other revenues reported in “Other” primarily includes interest income on the SFC’s note receivable from SFI. See Note 12 for further information on the notes receivable from parent and affiliates.

(c) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 12 for further information on the note receivable from parent.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2017

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 presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2017
Assets
Cash and cash equivalents	$	904	$	54	$	—	$	958	$	958
Investment securities	36		1,654		7		1,697		1,697
Net finance receivables, less allowance for finance receivable losses	—		—		15,607		15,607		14,217
Finance receivables held for sale	—		—		139		139		132
Notes receivable from parent	—		391		—		391		391
Restricted cash and restricted cash equivalents	498		—		—		498		498
Other assets (a)	—		4		12		16		16
Liabilities
Long-term debt	$	—	$	15,625	$	—	$	15,625	$	15,050
Other liabilities (b)	—		189		—		189		189
December 31, 2016
Assets
Cash and cash equivalents	$	480	$	73	$	—	$	553	$	553
Investment securities	31		1,724		9		1,764		1,764
Net finance receivables, less allowance for finance receivable losses	—		—		13,857		13,857		13,000
Finance receivables held for sale	—		—		159		159		153
Notes receivable from parent	—		285		—		285		285
Restricted cash and restricted cash equivalents	568		—		—		568		568
Other assets (a)	—		77		34		111		113
Liabilities
Long-term debt	$	—	$	14,498	$	—	$	14,498	$	13,959
Other liabilities (b)	—		39		—		39		39

(a) Other assets includes commercial mortgage loans, escrow advance receivables, and receivables from parent and affiliates at December 31, 2017 and commercial mortgage loans, escrow advance receivables, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets at December 31, 2016.

(b) Consists of payables to parent and affiliates.

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 (a)
December 31, 2017
Assets
Cash equivalents in mutual funds	$	688	$	—	$	—	$	688
Cash equivalents in securities	—		54		—		54
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		28		—		28
Obligations of states, municipalities, and political subdivisions	—		135		—		135
Non-U.S. government and government sponsored entities	—		60		—		60
Certificates of deposit and commercial paper	—		125		—		125
Corporate debt	—		946		2		948
RMBS	—		99		—		99
CMBS	—		87		—		87
CDO/ABS	—		95		1		96
Total bonds	—		1,575		3		1,578
Preferred stock	7		7		—		14
Common stock	23		—		—		23
Other long-term investments	—		—		1		1
Total available-for-sale securities (b)	30		1,582		4		1,616
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		66		2		68
RMBS	—		1		—		1
CMBS	—		—		—		—
CDO/ABS	—		4		—		4
Total bonds	—		72		2		74
Preferred stock	6		—		—		6
Total other securities	6		72		2		80
Total investment securities	36		1,654		6		1,696
Restricted cash in mutual funds	484		—		—		484
Total	$	1,208	$	1,708	$	6	$	2,922

(a) Due to the insignificant activity within the Level 3 assets during 2017, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017, which is carried at cost.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3 (a)
December 31, 2016
Assets
Cash equivalents in mutual funds	$	286	$	—	$	—	$	286
Cash equivalents in securities	—		73		—		73
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		31		—		31
Obligations of states, municipalities, and political subdivisions	—		145		—		145
Non-U.S. government and government sponsored entities	—		118		—		118
Corporate debt	—		1,025		—		1,025
RMBS	—		100		—		100
CMBS	—		108		—		108
CDO/ABS	—		98		4		102
Total bonds	—		1,625		4		1,629
Preferred stock	8		8		—		16
Common stock	17		—		—		17
Other long-term investments	—		—		2		2
Total available-for-sale securities (b)	25		1,633		6		1,664
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		83		2		85
RMBS	—		1		—		1
CMBS	—		1		—		1
CDO/ABS	—		5		—		5
Total bonds	—		91		2		93
Preferred stock	6		—		—		6
Total other securities	6		91		2		99
Total investment securities	31		1,724		8		1,763
Restricted cash in mutual funds	553		—		—		553
Total	$	870	$	1,797	$	8	$	2,675

(a) Due to the insignificant activity within the Level 3 assets during 2016, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016, which is carried at cost.

We had no transfers between Level 1 and Level 2 during 2017 and 2016.

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, 2017
Assets
Real estate owned	$	—	$	—	$	6	$	6	$	3
At or for the Year Ended December 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	159	$	159	$	4
Real estate owned	—		—		5		5		2
Total	$	—	$	—	$	164	$	164	$	6

* The fair value information presented in the table is as of the date the fair value adjustment was recorded.

We wrote down certain finance receivables held for sale reported in our Other segment to their fair value during the second quarter of 2016 and recorded the writedowns in other revenues.

We wrote down certain real estate owned reported in our Other segment to their fair value less cost to sell during 2017 and 2016 and recorded the writedowns in other revenues. 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.

The inputs and quantitative data used in our Level 3 valuations for our real estate owned 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.

Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 was as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2017	December 31, 2016
Finance receivables held for sale	Income approach	Market value for similar type loan transactions to obtain a price point	*	*
Real estate owned	Market approach	Third-party valuation	*	*

* We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are 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 certain cash equivalents, 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, for both non-impaired and purchased credit impaired finance receivables, is 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 Restricted Cash Equivalents

The carrying amount of restricted cash and restricted cash equivalents approximates fair value.

Notes Receivable from Parent

The carrying amount of the notes receivable from parent approximates the fair value because the notes are payable on a demand basis prior to their due dates and the interest rates on these notes adjust 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 base our estimate of the fair value on independent third-party valuations at the time we take 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, 2017, 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, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Redemption of OMFH 2019 Notes

On December 8, 2017, the Company issued a notice of redemption to redeem all $700 million outstanding principal amount of OMFH’s 6.75% Senior Notes due 2019 at a redemption price equal to 103.375%, plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018. In connection with the redemption, we recognized approximately $1 million of net loss on repurchases and repayments of debt for the three months ended March 31, 2018.

Apollo-Värde Transaction

On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with the Initial Stockholder and OMH to acquire 54,937,500 shares or approximately 40.6% of the outstanding shares of OMH common stock from the Initial Stockholder, representing the entire holdings of OMH stock beneficially owned by Fortress. This transaction closed June 25, 2018.

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited)

Our selected quarterly financial data for 2017 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	853	$	806	$	772	$	756
Interest expense	204		207		203		202
Provision for finance receivable losses	229		242		233		243
Other revenues	139		149		117		135
Other expenses	382		401		386		400
Income before income taxes	177		105		67		46
Income taxes	161		44		20		18
Net income	$	16	$	61	$	47	$	28

Our selected quarterly financial data for 2016 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	766	$	767	$	739	$	824
Interest expense	201		215		214		226
Provision for finance receivable losses	256		261		218		194
Other revenues	138		151		158		307
Other expenses	409		396		416		447
Income before income taxes	38		46		49		264
Income taxes	—		16		20		91
Net income	38		30		29		173
Net income attributable to non-controlling interests	—		—		—		28
Net income attributable to Springleaf Finance Corporation	$	38	$	30	$	29	$	145

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Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2017

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

Schedule I — Condensed Financial Information of Registrant

SPRINGLEAF FINANCE CORPORATION

Condensed Balance Sheets

(dollars in millions)
December 31,	2017		2016
Assets
Cash and cash equivalents	$	148	$	96
Investment in subsidiaries	7,062		7,107
Notes receivable from parent and affiliates	2,334		1,992
Restricted cash	9		5
Other assets	159		188
Total assets	$	9,712	$	9,388
Liabilities and Shareholder’s Equity
Long-term debt	$	4,824	$	4,162
Intercompany note payable	436		409
Deferred and accrued taxes	46		164
Other liabilities	1,004		1,380
Total liabilities	6,310		6,115
Shareholder’s equity	3,402		3,273
Total liabilities and shareholder’s equity	$	9,712	$	9,388

See Notes to Condensed Financial Statements.

SPRINGLEAF FINANCE CORPORATION

Condensed Statements of Operations and Comprehensive Income (Loss)

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Interest income on notes receivable from parent and affiliates	131			104			56
Interest expense	430			459			502
Net interest expense	(299		)	(355		)	(446		)
Other revenues:
Investments	2			1			13
Net loss on repurchases and repayments of debt	(26		)	(14		)	—
Other revenues	6			4			—
Total other revenues	(18		)	(9		)	13
Other expenses	41			9			1
Income (loss) before income tax expense (benefit)	(358		)	(373		)	(434		)
Provision for (benefit from) income taxes	(118		)	(138		)	(160		)
Equity in undistributed net income (loss) from subsidiaries	392			477			73
Net income (loss)	152			242			(201		)
Other comprehensive income (loss), net of tax	12			27			(36		)
Comprehensive income (loss)	$	164		$	269		$	(237	)

See Notes to Condensed Financial Statements.

SPRINGLEAF FINANCE CORPORATION

Condensed Statements of Cash Flows

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Net cash provided by (used for) operating activities	$	(601	)	$	557		$	173
Cash flows from investing activities
Cash advances on notes receivable with parent and affiliates	(4,322		)	(5,827		)	(2,256		)
Payments received on notes receivable with parent and affiliates	3,980			4,683			2,968
Distributions from subsidiaries	413			499			326
Capital contribution to subsidiary (a)	—			—			(3,393		)
Sale of available-for-sale securities	—			10			2,306
Net cash provided by (used for) investing activities	71			(635		)	(49		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions	1,861			995			—
Repayment of long-term debt	(1,302		)	(1,020		)	(798		)
Proceeds from intercompany note payable	27			24			392
Repayments on intercompany note payable	—			(1		)	(7		)
Net cash provided by (used for) financing activities	586			(2		)	(413		)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	56			(80		)	(289		)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	101			181			470
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	$	157		$	101		$	181
Supplemental cash flow information
Cash and cash equivalents	$	148		$	96		$	178
Restricted cash and restricted cash equivalents	9			5			3
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$	157		$	101		$	181
Supplemental non-cash activities
Non-cash contribution of Independence	$	—		$	—		$	1,100

(a) Contribution to Springleaf Financial Cash Services, Inc. a wholly owned subsidiary of SFC, for funding its intercompany note to Independence. On November 12, 2015, Independence borrowed $3.4 billion under the note to fund a portion of the purchase price for the OneMain Acquisition.

See Notes to Condensed Financial Statements.

SPRINGLEAF FINANCE CORPORATION

Notes to Condensed Financial Statements

1. Accounting Policies    

Springleaf Finance Corporation (“SFC”) records its investments in subsidiaries at cost plus the equity in undistributed (overdistributed) comprehensive income from subsidiaries since the date of incorporation or, if purchased, the date of the acquisition. The condensed financial statements of the registrant should be read in conjunction with SFC’s consolidated financial statements.

2. Related Party Transactions    

Notes Receivable from Affiliates

SFC provides funding to its parent, SFI, and to most of its subsidiaries for lending activities. SFC charges SFI and these subsidiaries for this funding based on SFC’s cost of funds plus a spread, as specified in the respective note agreements.

Notes receivable from parent and affiliates consisted of the following:

(dollars in millions)	December 31, 2017		December 31, 2016
SFC parent (SFI)	$	390	$	285
OMFH (a)	1,214		530
SCSI	539		950
Notes for subsidiary securitizations	191		227
Total	$	2,334	$	1,992

(a)SFC has, from time to time, amended the OMFH note to increase the maximum amount that may be advanced to OMFH. At December 31, 2017, the maximum amount that may be advanced totaled $1.6 billion.

Note Payable to Affiliate

On January 1, 2015, SFC entered into a note with Springleaf Acquisition Corporation (SAC), whereby SFC initially borrowed $374 million. The note was amended effective December 31, 2017 and, under the amended terms, is payable in full on December 31, 2020 with an aggregate amount outstanding not to exceed $500 million. Under the terms, SAC may request payment of the note and 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 borrower’s cost of funds rate plus 25 bps. At December 31, 2017 and 2016, $436 million and $409 million was drawn under the note, respectively. Interest expense on the note payable was $27 million and $24 million in 2017 and 2016, respectively and is reported in interest expense.

Other Assets

SFC has income tax receivable balances with its subsidiaries and affiliates under a tax sharing agreement. The balances for these amounts were $140 million and $187 million at December 31, 2017 and 2016, respectively and are included in other assets.

Other Liabilities

SFC and its direct and indirect subsidiaries incur obligations for various services including short term funding of loan originations from OGSC. These transactions are generally funded through intercompany clearing accounts that are centrally processed through OGSC which acts as a funding clearing house for the transactions between the various subsidiaries of SFC.  SFC’s payable to OGSC under this funding structure was $1.0 billion and $1.4 billion at December 31, 2017 and 2016 respectively and is included in other liabilities

3. Long-term Debt     

Principal maturities of long-term debt at December 31, 2017 were as follows:

(dollars in millions)
2018	—
2019	700
2020	1,300
2021	650
2022	1,000
2023-2067	1,525
Total principal maturities	$	5,175
Total carrying amount	$	4,824

See Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in this report for information regarding the following Guaranty Agreements:

• 5.625% SFC Notes

• 6.125% SFC Notes

• 8.25% SFC Notes

• 5.25% SFC Notes

• Other SFC Notes

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

We prepared our consolidated financial statements using 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 owned a 47% equity interest prior to March 31, 2016), and 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 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 23, we have revised our prior period segment disclosures.

Operating Segment Reporting

Operating Segments

Our segments coincide with how our businesses are managed. At December 31, 2017, our two segments include:

• Consumer and Insurance; and

• Acquisitions and Servicing.

In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment.

The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016.

Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures.

Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, 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 (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods).

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	Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance and Other - The Company has securitization debt 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. 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 Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and
	l Consumer and Insurance - receives remainder of unallocated average debt.
	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 $208 million for Other.
	For the period first quarter 2015 to the OneMain Acquisition
	Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance.
	Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represented the following:
	l  Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and
	l  Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments.
Provision for finance receivable losses	Directly correlated with specific segment, except for allocations related to personal loans and retail in 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:
	l  Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt.
	l  Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt.
Acquisition-related transaction and integration expenses	Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided.
Other expenses	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 - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs, and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and reestablishes interest income recognition on a historical cost basis;

• Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis;

• Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis;

• Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio;

• Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis;

• Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and

• Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition.

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, 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, except for collections of interest, which we include as cash flows from operating 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.

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 four contractual payments become past due for personal loans 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

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 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 update on a quarterly basis the amount of cash flows we expect to collect, which incorporates 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, and such removal will not affect the yield used to recognize accretable yield of the pool.

Troubled Debt Restructured Finance Receivables

Troubled Debt Restructured Finance Receivables

We make modifications to our personal loans 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 past due interest or forgive principal or interest. Additionally, as part of the modification, we may require trial payments. 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, 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 contractual 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 personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies.

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 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 may 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. 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.

Reserve for Sales Recourse Obligations

Reserve for Sales Recourse Obligations

When we sell finance receivables, we may 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.

Goodwill & Other Intangible Assets

Goodwill

Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount.

We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use.

Intangible Assets other than Goodwill

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 OneMain trade name, insurance licenses, lending licenses and certain domain names, which we have determined to have indefinite lives.

For intangible assets with a finite useful life, we review 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. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance.

For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. 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 from affiliates 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 dismemberment, 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 involuntary unemployment, and collateral protection 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.

Insurance Policy Acquisition Costs

Insurance Policy 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 shareholder’s 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 (as further described in “Fair Value Measurements” below) 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.

Acquisition-related Transaction and Integration Expenses

Acquisition-related Transaction and Integration Expenses

In connection with the OneMain Acquisition, we incur acquisition-related transaction and integration costs, including (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration.

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. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards.

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 and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized.

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.

The Tax Act was enacted on December 22, 2017 and we must reflect the changes associated with its provisions in 2017. The law is complex and has extensive implications for our federal and state current and deferred taxes and income tax expense. We recorded and reported the effects of the Tax Act in our financial statements in 2017. For further information, see Note 19 of the Notes to Consolidated Financial Statements included in this report.

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.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

Accounting Pronouncements Recently Adopted and To Be Adopted

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Investments

In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements.

Statement of Cash Flows

In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Technical Corrections and Improvements

In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections, to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements.

Business Combinations

In January of 2017, the FASB issued ASU 2017-01, Business Combinations, to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact 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. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements.

Financial Instruments

In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Leases

In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $167 million of minimum lease commitments from these operating leases (refer to Note 20). We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impact.

Allowance for Finance Receivables Losses

In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach.

The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis bedetermined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition.

The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets.

In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance.

The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. We believe the adoption of this ASU will have a material effect on our consolidated financial statements, and we are in the process of quantifying the expected impacts.

Statement of Cash Flows

In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Income Taxes

In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

Goodwill Impairment

In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.

Compensation and Benefits

In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements.

In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting, which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

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Significant Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Schedule of revised condensed consolidated financial statements

The following table presents the Company’s previously reported Consolidated Balance Sheet as of December 31, 2017 and 2016 retrospectively recast for the contribution of Independence:

(dollars in millions, except par value amount)	2017
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	244		$	714		$	—		$	958
Investment securities		536			1,172			(11		)	1,697
Net finance receivables:
Personal loans		5,308			9,467			—			14,775
Real estate loans		128			—			—			128
Retail sales finance		6			—			—			6
Net finance receivables		5,442			9,467			—			14,909
Unearned insurance premium and claim reserves		(108		)	(482		)	—			(590		)
Allowance for finance receivable losses		(240		)	(452		)	—			(692		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		5,094			8,533			—			13,627
Finance receivables held for sale		132			—			—			132
Notes receivable from parent and affiliates		4,488			—			(4,097		)	391
Restricted cash and restricted cash equivalents		169			329			—			498
Goodwill		—			1,422			—			1,422
Other intangible assets		15			424			—			439
Other assets		146			402			(67		)	481
Total assets		$	10,824		$	12,996		$	(4,175	)	$	19,645
Liabilities and Shareholder’s Equity
Long-term debt		$	7,865		$	7,195		$	(10	)	15,050
Note payable to parent and affiliates		—			4,097			(4,097		)	—
Insurance claims and policyholder liabilities		261			476			—			737
Deferred and accrued taxes		78			3			(35		)	46
Other liabilities		214			229			(33		)	410
Total liabilities		8,418			12,000			(4,175		)	16,243
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,110			—			1,909
Accumulated other comprehensive income (loss)		—			6			—			6
Retained earnings		1,602			(120		)	—			1,482
Total shareholder’s equity		2,406			996			—			3,402
Total liabilities and shareholder’s equity		$	10,824		$	12,996		$	(4,175	)	$	19,645

(dollars in millions, except par value amount)	2016
		As Reported SFC			Independence			Adjustments			Consolidated SFC
Assets
Cash and cash equivalents		$	240		$	313		$	—		$	553
Investment securities		582			1,188			(6		)	1,764
Net finance receivables:
Personal loans		4,804			8,727			—			13,531
Real estate loans		144			—			—			144
Retail sales finance		11			—			—			11
Net finance receivables		4,959			8,727			—			13,686
Unearned insurance premium and claim reserves		(212		)	(374		)	—			(586		)
Allowance for finance receivable losses		(204		)	(482		)	—			(686		)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses		4,543			7,871			—			12,414
Finance receivables held for sale		153			—			—			153
Notes receivable from parent and affiliates		3,723			—			(3,438		)	285
Restricted cash and restricted cash equivalents		227			341			—			568
Goodwill		—			1,422			—			1,422
Other intangible assets		15			476			—			491
Other assets		236			552			(98		)	690
Total assets		$	9,719		$	12,163		$	(3,542	)	$	18,340
Liabilities and Shareholder’s Equity
Long-term debt		$	6,837		$	7,127		$	(5	)	13,959
Note payable to parent and affiliates		—			3,438			(3,438		)	—
Insurance claims and policyholder liabilities		248			509			—			757
Deferred and accrued taxes		106			—			(95		)	11
Other liabilities		185			159			(4		)	340
Total liabilities		7,376			11,233			(3,542		)	15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock		5			—			—			5
Additional paid-in capital		799			1,107			—			1,906
Accumulated other comprehensive income (loss)		(7		)	1			—			(6		)
Retained earnings		1,546			(178		)	—			1,368
Total shareholder’s equity		2,343			930			—			3,273
Total liabilities and shareholder’s equity		$	9,719		$	12,163		$	(3,542	)	$	18,340

The following table presents the Company’s previously reported Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

(dollars in millions)	2017
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,228		$	1,946		$	—		$	3,174
Finance receivables held for sale originated as held for investment		13			—			—			13
Total interest income		1,241			1,946			—			3,187
Interest expense		517			531			(232		)	816
Net interest income		724			1,415			232			2,371
Provision for finance receivable losses		324			623			—			947
Net interest income after provision for finance receivable losses		400			792			232			1,424
Other revenues:
Insurance		140			280			—			420
Investment		28			45			—			73
Interest income on notes receivable from parent and affiliates		255			—			(232		)	23
Net loss on repurchases and repayments of debt		(28		)	(1		)	—			(29		)
Other		12			69			(28		)	53
Total other revenues		407			393			(260		)	540
Other expenses:
Operating expenses:
Salaries and benefits		307			442			(20		)	729
Acquisition-related transaction and integration expenses		—			—			69			69
Other operating expenses		251			413			(77		)	587
Insurance policy benefits and claims		56			128			—			184
Total other expenses		614			983			(28		)	1,569
Income before income tax expense		193			202			—			395
Income tax expense		99			144			—			243
Net income		94			58			—			152
Net income attributable to non-controlling interests		—			—			—			—
Net income attributable to Springleaf Finance Corporation		$	94		$	58		$	—		$	152

(dollars in millions)	2016
		As Reported								Consolidated
Year to Date		SFC			Independence		Adjustments			SFC
Interest income:
Finance charges		$	1,276		$	1,746	$	—		$	3,022
Finance receivables held for sale originated as held for investment		74			—		—			74
Total interest income		1,350			1,746		—			3,096
Interest expense		556			502		(202		)	856
Net interest income		794			1,244		202			2,240
Provision for finance receivable losses		329			600		—			929
Net interest income after provision for finance receivable losses		465			644		202			1,311
Other revenues:
Insurance		160			289		—			449
Investment		31			55		—			86
Interest income on notes receivable from parent and affiliates		214			7		(202		)	19
Net loss on repurchases and repayments of debt		(17		)	—		—			(17		)
Net gain on sale of SpringCastle interests		167			—		—			167
Net gain on sales of personal and real estate loans and related trust assets		18			—		—			18
Other		1			31		—			32
Total other revenues		574			382		(202		)	754
Other expenses:
Operating expenses:
Salaries and benefits		347			427		(51		)	723
Acquisition-related transaction and integration expenses		—			—		108			108
Other operating expenses		291			436		(57		)	670
Insurance policy benefits and claims		55			112		—			167
Total other expenses		693			975		—			1,668
Income before income tax expense		346			51		—			397
Income tax expense		113			14		—			127
Net income		233			37		—			270
Net income attributable to non-controlling interests		28			—		—			28
Net income attributable to Springleaf Finance Corporation		$	205		$	37	$	—		$	242

(dollars in millions)	2015
		As Reported									Consolidated
Year to Date		SFC			Independence			Adjustments			SFC
Interest income:
Finance charges		$	1,597		$	253		$	—		$	1,850
Finance receivables held for sale originated as held for investment		60			—			—			60
Total interest income		1,657			253			—			1,910
Interest expense		667			75			(27		)	715
Net interest income		990			178			27			1,195
Provision for finance receivable losses		339			372			—			711
Net interest income after provision for finance receivable losses		651			(194		)	27			484
Other revenues:
Insurance		158			53			—			211
Investment		49			1			—			50
Interest income on notes receivable from parent and affiliates		42			—			(27		)	15
Other		(6		)	5			—			(1		)
Total other revenues		243			59			(27		)	275
Other expenses:
Operating expenses:
Salaries and benefits		364			73			(11		)	426
Acquisition-related transaction and integration expenses		—			—			62			62
Other operating expenses		299			123			(51		)	371
Insurance policy benefits and claims		72			24			—			96
Total other expenses		735			220			—			955
Income before income tax expense (benefit)		159			(355		)	—			(196		)
Income tax expense (benefit)		18			(140		)	—			(122		)
Net income (loss)		141			(215		)	—			(74		)
Net income attributable to non-controlling interests		127			—			—			127
Net income (loss) attributable to Springleaf Finance Corporation		$	14		$	(215	)	$	—		$	(201	)

The following table presents the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence:

	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated SFC
Cash flows from operating activities
Net income		$	94		$	58		$	—		$	152
Reconciling adjustments:
Provision for finance receivable losses		324			623			—			947
Depreciation and amortization		143			174			—			317
Deferred income tax benefit		(82		)	125			—			43
Net loss on repurchases and repayments of debt		28			1			—			29
Share-based compensation expense, net of forfeitures		—			5			—			5
Other		1			(6		)	—			(5		)
Cash flows due to changes in:
Other assets and other liabilities		107			68			—			175
Insurance claims and policyholder liabilities		(92		)	70			—			(22		)
Taxes receivable and payable		13			30			—			43
Accrued interest and finance charges		(95		)	54			4			(37		)
Other, net		(3		)	3			—			—
Net cash provided by operating activities		438			1,205			4			1,647
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(783		)	(1,484		)	—			(2,267		)
Cash advances on intercompany notes receivable		(1,837		)	—			1,482			(355		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,154			—			(905		)	249
Available-for-sale securities purchased		(245		)	(431		)	5			(671		)
Available-for-sale securities called, sold, and matured		301			438			—			739
Trading and other securities called, sold, and matured		1			17			—			18
Proceeds from sale of real estate owned		4			—			—			4
Other, net		12			(9		)	—			3
Net cash provided by (used for) financing activities		(1,393		)	(1,469		)	582			(2,280		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,456			1,971			—			5,427
Repayments of long-term debt		(2,544		)	(1,898		)	(5		)	(4,447		)
Proceeds from intercompany note payable		—			1,486			(1,486		)	—
Payments on intercompany note payable		—			(905		)	905			—
Withholding tax on vested RSUs and PRSUs		(1		)	(1		)	—			(2		)
Cash dividend of SFMC		(10		)	—			—			(10		)
Net cash provided by (used for) financing activities		901			653			(586		)	968

Consolidated Statements of Cash Flows (Continued)	2017
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(54		)	389			—		335
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		467			654			—		$	1,121
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	413		$	1,043		$	—	$	1,456
Supplemental cash flow information
Cash and cash equivalents		$	244		$	714		$	—	$	958
Restricted cash and restricted cash equivalents		169			329			—		498
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	413		$	1,043		$	—	$	1,456
Interest paid		$	(436	)	$	(310	)	$	—	$	(746	)
Income taxes received (paid)		(71		)	(83		)	—		(154		)
Supplemental non-cash activities
Transfer of finance receivables to real estate owned		$	9		$	—		$	—	$	9
Net unsettled investment security purchases		—			1			—		$	1
Non-cash dividend of SFMC		(28		)	—			—		(28		)

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income		$	233		$	37		$	—		$	270
Reconciling adjustments:
Provision for finance receivable losses		329			600			—			929
Depreciation and amortization		144			366			—			510
Deferred income tax benefit		(83		)	(22		)	—			(105		)
Net gain on liquidation of United Kingdom subsidiary		(4		)	—			—			(4		)
Net gain on sales of personal and real estate loans and related trust assets		(18		)	—			—			(18		)
Net loss on repurchases and repayments of debt		17			—			—			17
Share-based compensation expense, net of forfeitures		1			7			—			8
Net gain on sale of SpringCastle interests		(167		)	—			—			(167		)
Other		6			(15		)	—			(9		)
Cash flows due to changes in:
Other assets and other liabilities		(37		)	(152		)	—			(189		)
Insurance claims and policyholder liabilities		(19		)	(45		)	—			(64		)
Taxes receivable and payable		56			(94		)	—			(38		)
Accrued interest and finance charges		14			1			—			15
Other, net		3			—			—			3
Net cash provided by operating activities		475			683			—			1,158
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(557		)	(598		)	—			(1,155		)
Proceeds on sales of finance receivables held for sale originated as held for investment		930			—			—			930
Proceeds from sale of SpringCastle interests, net of restricted cash released		26			—			—			26
Cash advances on intercompany notes receivable		(1,042		)	(670		)	1,415			(297		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		1,023			670			(1,292		)	401
Cash received from CitiFinancial Credit Company		—			23			—			23
Available-for-sale securities purchased		(353		)	(399		)	6			(746		)
Trading and other securities purchased		(10		)	(7		)	—			(17		)
Available-for-sale securities called, sold, and matured		380			457			—			837
Trading and other securities called, sold, and matured		20			43			—			63
Proceeds from sale of real estate owned		8			—			—			8
Other, net		26			(36		)	—			(10		)
Net cash provided by (used for) investing activities		451			(517		)	129			63

Consolidated Statements of Cash Flows (Continued)	2016
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,854			2,806			—			6,660
Proceeds from intercompany note payable		670			1,415			(2,085		)	—
Repayments of long-term debt		(4,920		)	(3,394		)	(6		)	(8,320		)
Distributions to joint venture partners		(18		)	—			—			(18		)
Payments on note payable to affiliate		(670		)	(1,292		)	1,962			—
Withholding tax on vested RSUs and PRSUs		(1		)	—			—			(1		)
Capital contributions from parent		10			—			—			10
Net cash provided by (used for) financing activities		(1,075		)	(465		)	(129		)	(1,669		)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(149		)	(299		)	—			(448		)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		616			953			—			1,569
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	467		$	654		$	—		$	1,121
Supplemental cash flow information
Cash and cash equivalents		$	240		$	313		$	—		$	553
Restricted cash and restricted cash equivalents		227			341			—			568
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	467		$	654		$	—		$	1,121
Interest paid		$	(451	)	$	(314	)	$	—		$	(765	)
Income taxes received (paid)		(140		)	(129		)	—			(269		)
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	1,945		$	—		$	—		$	1,945
Increase in finance receivables held for investment financed with intercompany payable		89			—			—			89
Transfer of finance receivables to real estate owned		8			—			—			8
Net unsettled investment security purchases		—			1			—			1

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits.

	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments			Consolidated  SFC
Cash flows from operating activities
Net income (loss)		$	141		$	(215	)	$	—		$	(74	)
Reconciling adjustments:
Provision for finance receivable losses		339			372			—			711
Depreciation and amortization		92			101			—			193
Deferred income tax benefit		(50		)	(158		)	—			(208		)
Non-cash incentive compensation from Initial Stockholder		15			—			—			15
Share-based compensation expense, net of forfeitures		2			—			—			2
Other		(3		)	5			—			2
Cash flows due to changes in:
Other assets and other liabilities		(48		)	49			—			1
Insurance claims and policyholder liabilities		34			(7		)	—			27
Taxes receivable and payable		111			20			—			131
Accrued interest and finance charges		(23		)	(11		)	—			(34		)
Other, net		(2		)	—			—			(2		)
Net cash provided by operating activities		608			156			—			764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale		(799		)	(176		)	—			(975		)
Proceeds on sales of finance receivables held for sale originated as held for investment		78			—			—			78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired		—			(3,520		)	—			(3,520		)
Cash advances on intercompany notes receivable		(3,720		)	—			3,393			(327		)
Proceeds from repayments of principal and assignment of intercompany notes receivable		189			—			—			189
Available-for-sale securities purchased		(476		)	(49		)	—			(525		)
Trading and other securities purchased		(1,474		)	—			—			(1,474		)
Available-for-sale securities called, sold, and matured		470			51			—			521
Trading and other securities called, sold, and matured		3,779			—			—			3,779
Proceeds from sale of real estate owned		14			—			—			14
Other, net		(12		)	(2		)	—			(14		)
Net cash (used for) financing activities		(1,951		)	(3,696		)	3,393			(2,254		)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		3,028			—			—			3,028
Repayments of long-term debt		(1,960		)	—			—			(1,960		)
Proceeds from intercompany note payable		—			3,393			(3,393		)	—
Distributions to joint venture partners		(77		)	—			—			(77		)
Excess tax benefit from share-based compensation		1			—			—			1
Capital contribution		—			1,100			—			1,100
Net cash provided by financing activities		992			4,493			(3,393		)	2,092

Consolidated Statements of Cash Flows (Continued)	2015
(dollars in millions)		As Reported SFC			Independence			Adjustments		Consolidated  SFC
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		(351		)	953			—		602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period		967			—			—		967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period		$	616		$	953		$	—	$	1,569
Supplemental cash flow information
Cash and cash equivalents		$	321		$	572		$	—	$	893
Restricted cash and restricted cash equivalents		295			381			—		676
Total cash and cash equivalents and restricted cash and restricted cash equivalents		$	616		$	953		$	—	$	1,569
Interest paid		$	(511	)	$	(83	)	$	—	$	(594	)
Income taxes received (paid)		45			(2		)	—		43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)		$	617		$	—		$	—	$	617
Transfer of finance receivables to real estate owned		11			—			—		11

Schedule of recognized identified assets acquired and liabilities assumed

The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows:

(dollars in millions)	As Reported			Adjustments*				As Adjusted
Cash consideration	$	4,478		$	(23	)	(a)	$	4,455
Fair value of assets acquired:
Cash and cash equivalents	958			—				958
Investment securities	1,294			—				1,294
Personal loans	8,801			(6		)	(b)	8,795
Intangibles	555			3			(c)	558
Other assets	247			(3		)	(d)	244
Fair value of liabilities assumed:
Long-term debt	(7,725		)	—				(7,725		)
Unearned premium, insurance policy and claims reserves	(936		)	—				(936		)
Other liabilities	(156		)	1			(e)	(155		)
Goodwill	$	1,440						$	1,422

* During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available:

(a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments.

(b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period.

(c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date.

(d) Represents a decrease in valuation of acquired software asset.

(e) Represents the settlement of a payable to Citigroup during the measurement perio

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Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Schedule of components of net finance receivables by type

Components of net finance receivables held for investment by type were as follows:

(dollars in millions)	Personal Loans			Real Estate Loans		Retail Sales Finance			Total
December 31, 2017
Gross receivables *	$	16,173		$	127	$	7		$	16,307
Unearned finance charges and points and fees	(1,724		)	—		(1		)	(1,725		)
Accrued finance charges	210			1		—			211
Deferred origination costs	116			—		—			116
Total	$	14,775		$	128	$	6		$	14,909
December 31, 2016
Gross receivables *	$	15,360		$	142	$	12		$	15,514
Unearned finance charges and points and fees	(2,061		)	1		(1		)	(2,061		)
Accrued finance charges	150			1		—			151
Deferred origination costs	82			—		—			82
Total	$	13,531		$	144	$	11		$	13,686

* 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 premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value;

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

• 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; and

• TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable.

Schedule of largest concentrations of net finance receivables

The largest concentrations of net finance receivables were as follows:

December 31,	2017				2016 *
(dollars in millions)	Amount		Percent		Amount		Percent
Texas	$	1,300	9	%	$	1,194	9	%
North Carolina	1,155		8		1,112		8
Pennsylvania	882		6		825		6
California	876		6		806		6
Ohio	726		5		660		5
Florida	674		5		572		4
Illinois	667		4		599		4
Virginia	641		4		623		5
Georgia	618		4		586		4
Indiana	608		4		539		4
Tennessee	520		3		465		3
Other	6,242		42		5,705		42
Total	$	14,909	100	%	$	13,686	100	%

* December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 state concentrations.

Summary of net finance receivables by type by days delinquent

The following is a summary of net finance receivables held for investment by type and by number of days delinquent:

(dollars in millions)	Personal Loans		Real Estate Loans		Retail Sales Finance		Total
December 31, 2017
Performing:
Current	$	14,081	$	98	$	6	$	14,185
30-59 days past due	202		8		—		210
60-89 days past due	156		3		—		159
Total performing	14,439		109		6		14,554
Nonperforming:
90-179 days past due	330		4		—		334
180 days or more past due	6		15		—		21
Total nonperforming	336		19		—		355
Total	$	14,775	$	128	$	6	$	14,909
December 31, 2016
Performing:
Current	$	12,878	$	102	$	11	$	12,991
30-59 days past due	173		9		—		182
60-89 days past due	129		4		—		133
Total performing	13,180		115		11		13,306
Nonperforming:
90-179 days past due	347		8		—		355
180 days or more past due	4		21		—		25
Total nonperforming	351		29		—		380
Total	$	13,531	$	144	$	11	$	13,686

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:

December 31,	2017						2016
(dollars in millions)	OM Loans		FA Loans (a)		Total		OM Loans		FA Loans (a)		Total
Carrying amount, net of allowance	$	176	$	57	$	233	$	324	$	70	$	394
Outstanding balance (b)	243		94		337		444		107		551
Allowance for purchased credit impaired finance receivable losses	6		9		15		29		8		37

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

(dollars in millions)
December 31,	2017		2016
Carrying amount	$	44	$	54
Outstanding balance	72		83

(b) Outstanding balance is defined as UPB of the loans with a net carrying amount.

Schedule of Purchased credit impaired FA Loans held for sale

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

(dollars in millions)
December 31,	2017		2016
Carrying amount	$	44	$	54
Outstanding balance	72		83

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)	OM Loans			SCP Loans			FA Loans			Total
Year Ended December 31, 2017
Balance at beginning of period	$	59		$	—		$	60		$	119
Accretion (a)	(34		)	—			(5		)	(39		)
Reclassifications to nonaccretable difference (b)	22			—			(2		)	20
Balance at end of period	$	47		$	—		$	53		$	100
Year Ended December 31, 2016
Balance at beginning of period	$	151		$	375		$	66		$	592
Accretion (a)	(69		)	(16		)	(7		)	(92		)
Other (c)	(23		)	—			—			(23		)
Reclassifications from nonaccretable difference (b)	—			—			12			12
Transfers due to finance receivables sold	—			(359		)	(11		)	(370		)
Balance at end of period	$	59		$	—		$	60		$	119
Year Ended December 31, 2015
Balance at beginning of period	$	—		$	452		$	54		$	506
Additions from OneMain Acquisition	166			—			—			166
Accretion (a)	(15		)	(77		)	(8		)	(100		)
Reclassifications from nonaccretable difference (b)	—			—			20			20
Balance at end of period	$	151		$	375		$	66		$	592

(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,	2017		2016		2015
Accretion	$	4	$	5	$	6

(b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows.

(c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield.

Schedule of Accretion on our purchased credit impaired FA Loans held for sale

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,	2017		2016		2015
Accretion	$	4	$	5	$	6

Schedule of Troubled Debt Restructurings, Held for Investments and Held for Sale

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

(dollars in millions)	Personal Loans		Real Estate Loans (a)		Total
December 31, 2017
TDR gross finance receivables (b)	$	318	$	139	$	457
TDR net finance receivables	317		140		457
Allowance for TDR finance receivable losses	134		12		146
December 31, 2016
TDR gross finance receivables	$	151	$	133	$	284
TDR net finance receivables	152		134		286
Allowance for TDR finance receivable losses	69		11		80

(a) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2017		2016
TDR gross finance receivables	$	90	$	89
TDR net finance receivables	91		90

(b) As defined earlier in this Note.

Schedule of TDR finance receivables held for sale (gross, net and allowance)

TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)
December 31,	2017		2016
TDR gross finance receivables	$	90	$	89
TDR net finance receivables	91		90

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 (b)		Total
Year Ended December 31, 2017
TDR average net receivables	$	230	$	—	$	140	$	370
TDR finance charges recognized	33		—		9		42
Year Ended December 31, 2016
TDR average net receivables	$	95	$	—	$	175	$	270
TDR finance charges recognized	12		—		11		23
Year Ended December 31, 2015
TDR average net receivables (c)	$	35	$	12	$	198	$	245
TDR finance charges recognized	3		1		11		15

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
TDR average net receivables	$	91
TDR finance charges recognized	6
Year Ended December 31, 2016
TDR average net receivables	$	102
TDR finance charges recognized	6
Year Ended December 31, 2015
TDR average net receivables	$	91
TDR finance charges recognized	5

Schedule of trouble debt restructuring average held for sale

TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
TDR average net receivables	$	91
TDR finance charges recognized	6
Year Ended December 31, 2016
TDR average net receivables	$	102
TDR finance charges recognized	6
Year Ended December 31, 2015
TDR average net receivables	$	91
TDR finance charges recognized	5

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 (b)		Total
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	326	$	—	$	16	$	342
Post-modification TDR net finance receivables:
Rate reduction	$	250	$	—	$	16	$	266
Other (c)	74		—		—		74
Total post-modification TDR net finance receivables	$	324	$	—	$	16	$	340
Number of TDR accounts	45,300		—		510		45,810
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	211	$	1	$	16	$	228
Post-modification TDR net finance receivables:
Rate reduction	$	194	$	1	$	16	$	211
Other (c)	12		—		1		13
Total post-modification TDR net finance receivables	$	206	$	1	$	17	$	224
Number of TDR accounts	29,395		157		364		29,916
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	47	$	7	$	21	$	75
Post-modification TDR net finance receivables:
Rate reduction	$	31	$	6	$	17	$	54
Other (c)	12		—		5		17
Total post-modification TDR net finance receivables	$	43	$	6	$	22	$	71
Number of TDR accounts	8,365		721		385		9,471

(a) TDR personal loans held for sale included in the table above were immaterial.

(b) TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	232
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	5
Post-modification TDR net finance receivables	$	5
Number of TDR accounts	122
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	113

(c) “Other” modifications primarily include forgiveness of principal or interest.

Schedule Of Information Regarding New Volume Of TDR Finance Receivables Held For Sale

TDR real estate loans held for sale included in the table above were as follows:

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	232
Year Ended December 31, 2016
Pre-modification TDR net finance receivables	$	5
Post-modification TDR net finance receivables	$	5
Number of TDR accounts	122
Year Ended December 31, 2015
Pre-modification TDR net finance receivables	$	6
Post-modification TDR net finance receivables	$	7
Number of TDR accounts	113

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, 2017
TDR net finance receivables (b)	$	88	$	—	$	4	$	92
Number of TDR accounts	14,935		—		101		15,036
Year Ended December 31, 2016
TDR net finance receivables (b) (c)	$	24	$	—	$	3	$	27
Number of TDR accounts	3,684		19		61		3,764
Year Ended December 31, 2015
TDR net finance receivables (b)	$	8	$	2	$	3	$	13
Number of TDR accounts	1,649		147		46		1,842

(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, 2017
TDR net finance receivables	$	2
Number of TDR accounts	53
Year Ended December 31, 2016
TDR net finance receivables	$	2
Number of TDR accounts	30
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17

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

(c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.

Schedule of net finance receivables that were modified TDRs that were held for sale

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

(dollars in millions)	Real Estate Loans
Year Ended December 31, 2017
TDR net finance receivables	$	2
Number of TDR accounts	53
Year Ended December 31, 2016
TDR net finance receivables	$	2
Number of TDR accounts	30
Year Ended December 31, 2015
TDR net finance receivables	$	1
Number of TDR accounts	17

XML

Allowance for Finance Receivable Losses (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [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, 2017
Balance at beginning of period	$	666		$	—		$	19		$	1		$	686
Provision for finance receivable losses	941			—			6			—			947
Charge-offs	(1,041		)	—			(5		)	(1		)	(1,047		)
Recoveries	102			—			3			1			106
Balance at end of period	$	668		$	—		$	23		$	1		$	692
Year Ended December 31, 2016
Balance at beginning of period	$	538		$	4		$	46		$	1		$	589
Provision for finance receivable losses	906			14			9			—			929
Charge-offs	(843		)	(17		)	(11		)	(1		)	(872		)
Recoveries	65			3			5			1			74
Other (a)	—			(4		)	(30		)	—			(34		)
Balance at end of period	$	666		$	—		$	19		$	1		$	686
Year Ended December 31, 2015
Balance at beginning of period	$	130		$	3		$	46		$	1		$	180
Provision for finance receivable losses	629			67			13			2			711
Charge-offs	(257		)	(78		)	(18		)	(3		)	(356		)
Recoveries	37			12			5			1			55
Other (b)	(1		)	—			—			—			(1		)
Balance at end of period	$	538		$	4		$	46		$	1		$	589

(a) Other consists of:

•     the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in

connection with the sale of our equity interest in the SpringCastle Joint Venture; and

•     the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance

receivable held for sale during 2016.

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

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			Real Estate Loans			Retail Sales Finance			Total
December 31, 2017
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	528		$	2		$	1		$	531
Purchased credit impaired finance receivables	6			9			—			15
TDR finance receivables	134			12			—			146
Total	$	668		$	23		$	1		$	692
Finance receivables:
Collectively evaluated for impairment	$	14,276		$	57		$	6		$	14,339
Purchased credit impaired finance receivables	182			22			—			204
TDR finance receivables	317			49			—			366
Total	$	14,775		$	128		$	6		$	14,909
Allowance for finance receivable losses as a percentage of finance receivables	4.52		%	18.66		%	9.91		%	4.64		%
December 31, 2016
Allowance for finance receivable losses:
Collectively evaluated for impairment	$	568		$	—		$	1		$	569
Purchased credit impaired finance receivables	29			8			—			37
TDR finance receivables	69			11			—			80
Total	$	666		$	19		$	1		$	686
Finance receivables:
Collectively evaluated for impairment	$	13,026		$	76		$	11		$	13,113
Purchased credit impaired finance receivables	353			24			—			377
TDR finance receivables	152			44			—			196
Total	$	13,531		$	144		$	11		$	13,686
Allowance for finance receivable losses as a percentage of finance receivables	4.92		%	13.31		%	4.42		%	5.01		%

XML

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	28	$	—	$	—		$	28
Obligations of states, municipalities, and political subdivisions	135		—		—			135
Certificates of deposit and commercial paper	60		—		—			60
Non-U.S. government and government sponsored entities	126		—		(1		)	125
Corporate debt	941		12		(5		)	948
Mortgage-backed, asset-backed, and collateralized:
RMBS	100		—		(1		)	99
CMBS	88		—		(1		)	87
CDO/ABS	96		—		—			96
Total bonds	1,574		12		(8		)	1,578
Preferred stock (a)	15		—		(1		)	14
Common stock (a)	21		2		—			23
Other long-term investments	1		—		—			1
Total (b)	$	1,611	$	14	$	(9	)	$	1,616
December 31, 2016
Fixed maturity available-for-sale securities:
Bonds
U.S. government and government sponsored entities	$	31	$	—	$	—		$	31
Obligations of states, municipalities, and political subdivisions	145		1		(1		)	145
Non-U.S. government and government sponsored entities	119		—		(1		)	118
Corporate debt	1,024		8		(7		)	1,025
Mortgage-backed, asset-backed, and collateralized:
RMBS	101		—		(1		)	100
CMBS	109		—		(1		)	108
CDO/ABS	102		—		—			102
Total bonds	1,631		9		(11		)	1,629
Preferred stock (a)	17		—		(1		)	16
Common stock (a)	16		1		—			17
Other long-term investments	2		—		—			2
Total (b)	$	1,666	$	10	$	(12	)	$	1,664

(a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016, which is classified as a restricted investment and carried at cost.

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, 2017
Bonds:
U.S. government and government sponsored entities	$	21	$	—		$	3	$	—		$	24	$	—
Obligations of states, municipalities, and political subdivisions	65		—			20		—			85		—
Non-U.S. government and government sponsored entities	89		(1		)	13		—			102		(1		)
Corporate debt	387		(3		)	93		(2		)	480		(5		)
RMBS	40		—			25		(1		)	65		(1		)
CMBS	40		—			38		(1		)	78		(1		)
CDO/ABS	48		—			26		—			74		—
Total bonds	690		(4		)	218		(4		)	908		(8		)
Preferred stock	3		—			7		(1		)	10		(1		)
Common stock	3		—			—		—			3		—
Other long-term investments	1		—			—		—			1		—
Total	$	697	$	(4	)	$	225	$	(5	)	$	922	$	(9	)
December 31, 2016
Bonds:
U.S. government and government sponsored entities	$	18	$	—		$	—	$	—		$	18	$	—
Obligations of states, municipalities, and political subdivisions	99		(1		)	2		—			101		(1		)
Non-U.S. government and government sponsored entities	55		(1		)	1		—			56		(1		)
Corporate debt	416		(6		)	8		(1		)	424		(7		)
RMBS	74		(1		)	1		—			75		(1		)
CMBS	66		(1		)	5		—			71		(1		)
CDO/ABS	64		—			3		—			67		—
Total bonds	792		(10		)	20		(1		)	812		(11		)
Preferred stock	6		—			8		(1		)	14		(1		)
Common stock	2		—			1		—			3		—
Total	$	800	$	(10	)	$	29	$	(2	)	$	829	$	(12	)

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

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 mark-to-market and net 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,	2017			2016		2015
Mark-to-market gains (losses) on trading and other securities held at year end	$	(1	)	$	1	$	—
Net realized gains (losses) on trading and other securities sold or redeemed during the year	—			7		(3		)
Total	$	(1	)	$	8	$	(3	)

Schedule of contractual maturities of fixed-maturity available-for-sale securities

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 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	$	224	$	225
Due after 1 year through 5 years	530		531
Due after 5 years through 10 years	335		334
Due after 10 years	207		200
Mortgage-backed, asset-backed, and collateralized securities	282		284
Total	$	1,578	$	1,574

Debt Securities, Trading, and Equity Securities, FV-NI

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

(dollars in millions)
December 31,	2017		2016
Fixed maturity other securities:
Bonds
Non-U.S. government and government sponsored entities	$	1	$	1
Corporate debt	68		85
Mortgage-backed, asset-backed, and collateralized:
RMBS	1		1
CMBS	—		1
CDO/ABS	4		5
Total bonds	74		93
Preferred stock	6		6
Total	$	80	$	99

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 net realized gains were as follows:

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Proceeds from sales and redemptions	$	508		$	518		$	429
Realized gains	$	15		$	16		$	15
Realized losses	(1		)	(1		)	(1		)
Net realized gains	$	14		$	15		$	14

XML

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016
Balance at beginning of period	$	1,422	$	1,440
Adjustments to purchase price allocation*	—		(18		)
Balance at end of period	$	1,422	$	1,422

* See Note 2 for details regarding this transaction.

Schedule of Finite-Lived 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, 2017
Customer relationships	$	223	$	(92	)	$	131
Trade names	220		—			220
VOBA	141		(90		)	51
Licenses	37		—			37
Other	12		(12		)	—
Total	$	633	$	(194	)	$	439
December 31, 2016
Customer relationships	$	223	$	(58	)	$	165
Trade names	220		—			220
VOBA	141		(74		)	67
Licenses	37		—			37
Other	12		(10		)	2
Total	$	633	$	(142	)	$	491

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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
2018	$	42
2019	39
2020	38
2021	32
2022	3

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2017

Other Assets [Abstract]

Schedule of components of other assets

Components of other assets were as follows:

(dollars in millions)
December 31,	2017		2016
Deferred tax assets	$	139	$	180
Ceded insurance reserves	95		102
Prepaid expenses and deferred charges	89		89
Fixed assets, net	67		128
Other investments	29		52
Current tax receivable	13		20
Cost basis investments	11		11
Receivables from parent and affiliates	4		76
Other	34		32
Total	$	481	$	690

* Fixed assets were net of accumulated depreciation of $120 million at December 31, 2017 and $247 million at December 31, 2016. The decrease in fixed assets is primarily related to the contribution of SFMC in the form of a dividend. See Note 12 for more information regarding this transaction.

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, 2017
Customer relationships	$	223	$	(92	)	$	131
Trade names	220		—			220
VOBA	141		(90		)	51
Licenses	37		—			37
Other	12		(12		)	—
Total	$	633	$	(194	)	$	439
December 31, 2016
Customer relationships	$	223	$	(58	)	$	165
Trade names	220		—			220
VOBA	141		(74		)	67
Licenses	37		—			37
Other	12		(10		)	2
Total	$	633	$	(142	)	$	491

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Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017				December 31, 2016
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior debt	$	14,878	$	15,436	$	13,787	$	14,340
Junior subordinated debt	172		189		172		158
Total	$	15,050	$	15,625	$	13,959	$	14,498

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,
	2017		2016		2015		2017		2016
Senior debt	5.73	%	5.60	%	6.56	%	5.56	%	5.80	%
Junior subordinated debt	6.41		12.26		12.26		6.37		12.26
Total	5.74		5.67		6.65		5.57		5.88

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, 2017 were as follows:

	Senior Debt
(dollars in millions)	Securitizations			Medium Term Notes			Junior Subordinated Debt		Total
Interest rates (a)	2.04% - 6.94%			5.25% - 8.25%			3.11%
2018	—			700			—		700
2019	—			696			—		696
2020	—			1,299			—		1,299
2021	—			1,446			—		1,446
2022	—			1,000			—		1,000
2023-2067	—			1,175			350		1,525
Securitizations (b)	8,711			—			—		8,711
Total principal maturities	$	8,711		$	6,316		$	350	$	15,377
Total carrying amount	$	8,688		$	6,190		$	172	$	15,050
Debt issuance costs (c)	$	(24	)	$	(30	)	$	—	$	(54	)

(a) The interest rates shown are the range of contractual rates in effect at December 31, 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75%, or 3.11% as of December 31, 2017. Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00%.

(b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017, there were no amounts drawn under our revolving conduit facilities. See Note 14 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $20 million at December 31, 2017 and are reported in other assets.

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Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2017

Variable Interest Entities

Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts

(dollars in millions)
December 31,	2017		2016
Assets
Cash and cash equivalents	$	4	$	3
Finance receivables:
Personal loans	9,769		9,509
Allowance for finance receivable losses	465		501
Restricted cash and restricted cash equivalents	482		552
Other assets	20		14
Liabilities
Long-term debt	$	8,688	$	8,240
Other liabilities	15		16

Our securitized borrowings at December 31, 2017 consisted of the following:

(dollars in millions)	Issue Amount *		Current Note Amounts Outstanding *		Current Weighted Average Interest Rate		Original Revolving Period	Issue Date	Maturity Date
Consumer Securitizations:
SLFT 2015-A	$	1,163	$	1,163	3.47	%	3 years	02/26/2015	11/2024
SLFT 2015-B	314		314		3.78	%	5 years	04/07/2015	05/2028
SLFT 2016-A (a)	532		500		3.10	%	2 years	12/14/2016	11/2029
SLFT 2017-A (b)	652		619		2.98	%	3 years	06/28/2017	07/2030
OMFIT 2014-2	1,185		320		4.16	%	2 years	07/30/2014	09/2024
OMFIT 2015-1	1,229		1,229		3.74	%	3 years	02/05/2015	03/2026
OMFIT 2015-2	1,250		750		3.40	%	2 years	05/21/2015	07/2025
OMFIT 2015-3	293		293		4.21	%	5 years	09/29/2015	11/2028
OMFIT 2016-1 (c)	500		459		4.01	%	3 years	02/10/2016	02/2029
OMFIT 2016-2 (d)	890		816		4.50	%	2 years	03/23/2016	03/2028
OMFIT 2016-3 (e)	350		317		4.33	%	5 years	06/07/2016	06/2031
OMFIT 2017-1 (f)	947		900		2.66	%	2 years	09/06/2017	09/2032
Total consumer securitizations			7,680
Auto Securitization:
ODART 2016-1 (g)	754		188		2.91	%	—	07/19/2016	Various
ODART 2017-1 (h)	300		268		2.61	%	1 year	02/01/2017	Various
ODART 2017-2 (i)	605		575		2.63	%	1 year	12/11/2017	Various
Total auto securitizations			1,031
Total secured structured financings			$	8,711

* Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts.

(a) SLFT 2016-A Securitization. We initially retained $32 million of the asset-backed notes.

(b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes.

(c) OMFIT 2016-1 Securitization.We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold.

(d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold.

(e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes.

(f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes.

(g) ODART 2016-1 Securitization. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes.

(h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes.

(i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes.

Schedule of borrowings under conduit facilities

As of December 31, 2017, our borrowings under conduit facilities consisted of the following:

(dollar in millions)	Note Maximum Balance		Amount Drawn		Revolving Period End	Backed by Loans Acquired from Subsidiaries of	Due and Payable (a)
First Avenue Funding, LLC	$	250	$	—	June 2018	SFC - auto loans	(b)
Seine River Funding, LLC	500		—		December 2019	SFC - personal loans	December 2022
OneMain Financial B6 Warehouse Trust	600		—		February 2019	OMFH - personal loans	February 2021
Rocky River Funding, LLC	250		—		September 2019	OMFH - personal loans	October 2020
OneMain Financial Funding VII, LLC	650		—		October 2019	OMFH - personal loans	November 2021
Thur River Funding, LLC	350		—		June 2020	SFC - personal loans	February 2027
OneMain Financial Funding IX, LLC	600		—		June 2020	OMFH - personal loans	July 2021
Mystic River Funding, LLC	850		—		September 2020	SFC - personal loans	October 2023
Fourth Avenue Auto Funding, LLC	250		—		September 2020	SFC - auto loans	October 2021
OneMain Financial Auto Funding I, LLC	750		—		October 2020	OMFH - auto loans	November 2027
Total	$	5,050	$	—

(a) The date following the revolving period, that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full.

(b) For First Avenue Funding, LLC, principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue Funding, LLC.

During the 2017 period we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above:

	Termination Date
Midbrook 2013-VFN1 Trust	4/13/2017
OneMain Financial B5 Warehouse Trust	4/13/2017
Sumner Brook 2013-VFN1 Trust	6/29/2017
Whitford Brook 2014-VFN1 Trust	7/14/2017
OneMain Financial B3 Warehouse Trust	7/14/2017
Springleaf 2013-VFN1 Trust	9/28/2017
Second Avenue Funding LLC	9/29/2017
OneMain Financial B4 Warehouse Trust	11/8/2017

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Insurance (Tables)

12 Months Ended

Dec. 31, 2017

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,	2017		2016
Finance receivable related:
Payable to OMH:
Unearned premium reserves	515		508
Claim reserves	75		78
Subtotal (a)	590		586
Payable to third-party beneficiaries:
Unearned premium reserves	99		98
Benefit reserves	103		105
Claim reserves	18		20
Subtotal (b)	220		223
Non-finance receivable related:
Unearned premium reserves	81		86
Benefit reserves	375		388
Claim reserves	61		60
Subtotal (b)	517		534
Total	$	1,327	$	1,343

(a) Reported as a contra-asset to net finance receivables.

(b) Reported in insurance claims and policyholder liabilities.

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 (not considering reinsurance recoverable):

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	158		$	177		$	70
Less reinsurance recoverables	(26		)	(26		)	(22		)
Net balance at beginning of period	132			151			48
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition	—			—			104
Additions for losses and loss adjustment expenses incurred to:
Current year	188			203			83
Prior years *	5			(20		)	5
Total	193			183			88
Reductions for losses and loss adjustment expenses paid related to:
Current year	(115		)	(124		)	(63		)
Prior years	(78		)	(78		)	(26		)
Total	(193		)	(202		)	(89		)
Foreign currency translation adjustment	(1		)	—			—
Net balance at end of period	131			132			151
Plus reinsurance recoverables	23			26			26
Balance at end of period	$	154		$	158		$	177

* Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017,

Short-duration Insurance Contracts, Claims Development

Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

											At December 31, 2017
(dollars in millions)	2013 (a)		2014 (a)		2015 (a)		2016 (a)		2017		Incurred-but- not-reported Liabilities (b)	Cumulative Number of Reported Claims	Cumulative Frequency (c)
Credit Insurance
Accident Year
2013	$	140	$	127	$	125	$	124	$	124	—	50,295	2.7	%
2014	—		145		132		130		131		3	51,776	2.7	%
2015	—		—		138		129		129		8	52,505	2.8	%
2016	—		—		—		138		135		20	51,558	2.8	%
2017	—		—		—		—		136		59	39,329	2.2	%
Total									$	655

(a) Unaudited.

(b) Includes expected development on reported claims.

(c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force.

Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017, were as follows:

(dollars in millions)	2013 *		2014 *		2015 *		2016 *		2017
Credit Insurance
Accident Year
2013	$	68	$	105	$	115	$	121	$	124
2014	—		71		110		121		128
2015	—		—		71		109		121
2016	—		—		—		75		115
2017	—		—		—		—		77
Total									$	565
All outstanding liabilities before 2013, net of reinsurance									—
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	90

* Unaudited.

The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows:

(dollars in millions)
December 31,	2017		2016 *		2015 *
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:
Credit insurance	$	90	$	96	$	105
Other short-duration insurance lines	22		20		25
Total	112		116		130
Reinsurance recoverable on unpaid claims:
Other short-duration insurance lines	20		22		22
Insurance lines other than short-duration	22		20		25
Total gross liability for unpaid claims and claim adjustment expense	$	154	$	158	$	177

* Unaudited.

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017, were as follows:

Years	1		2		3		4		5
Credit insurance	55.4	%	29.4	%	8.9	%	4.8	%	2.5	%

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,	2017		2016		2015
Property and casualty
Yosemite	$	19	$	11	$	15
Triton	31		14		3
Life and health
Merit	$	37	$	20	$	(1	)
AHL	34		71		11

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,	2017		2016
Property and casualty
Yosemite	$	42	$	63
Triton	170		139
Life and health
Merit	$	79	$	133
AHL	130		215

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Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Other Liabilities Disclosure [Abstract]

Schedule of components of other liabilities

Components of other liabilities were as follows:

(dollars in millions)
December 31,	2017		2016
Payables to parent and affiliates *	$	189	$	39
Accrued expenses and other liabilities	79		93
Accrued interest on debt	58		61
Salary and benefit liabilities	31		45
Insurance liabilities	12		14
Loan principal warranty reserve	8		14
Retirement plans	5		31
Other	28		43
Total	$	410	$	340

* Payables to parent and affiliates at December 31, 2017 primarily consisted of payable to OGSC for services provided to SFC under its

intercompany service agreements. See Note 12 for further information regarding SFC’s intercompany agreements.

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Capital Stock (Tables)

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

Schedule of par value and shares authorized

Par value and shares authorized at December 31, 2017 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,	2017	2016	2017	2016
Shares issued and outstanding	—	—	10,160,021	10,160,021

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017
Balance at beginning of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Other comprehensive income before reclassifications	14			3			4			21
Reclassification adjustments from accumulated other comprehensive loss	(9		)	—			—			(9		)
Balance at end of period	$	4		$	(1	)	$	3		$	6
Year Ended December 31, 2016
Balance at beginning of period	$	(14	)	$	(19	)	$	—		$	(33	)
Other comprehensive income before reclassifications	23			15			3			41
Reclassification adjustments from accumulated other comprehensive loss	(10		)	—			(4		)	(14		)
Balance at end of period	$	(1	)	$	(4	)	$	(1	)	$	(6	)
Year Ended December 31, 2015
Balance at beginning of period	$	12		$	(13	)	$	4		$	3
Other comprehensive loss before reclassifications	(18		)	(6		)	(4		)	(28		)
Reclassification adjustments from accumulated other comprehensive loss	(8		)	—			—			(8		)
Balance at end of period	$	(14	)	$	(19	)	$	—		$	(33	)

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,	2017			2016			2015
Unrealized gains on investment securities:
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes	$	14		$	15		$	12
Income tax effect	(5		)	(5		)	(4		)
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes	9			10			8
Unrealized gains on foreign currency translation adjustments:
Reclassification from accumulated other comprehensive income (loss) to other revenues	—			4			—
Total	$	9		$	14		$	8

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Components of income (loss) before income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016		2015
Income (loss) before income tax expense (benefit) - U.S. operations	$	380	$	380	$	(208	)
Income before income tax expense - foreign operations	15		17		12
Total	$	395	$	397	$	(196	)

Schedule of components of benefit from income taxes

Components of income tax expense (benefit) were as follows:

(dollars in millions)
Years Ended December 31,	2017		2016			2015
Current:
Federal	$	190	$	210		$	80
Foreign	2		1			1
State	8		21			5
Total current	200		232			86
Deferred:
Federal	34		(92		)	(192		)
Foreign *	—		5			—
State	9		(18		)	(16		)
Total deferred	43		(105		)	(208		)
Total	$	243	$	127		$	(122	)

* Deferred foreign income taxes were less than $1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above.

Schedule of reconciliations of statutory federal income tax rate to effective tax rate

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

Years Ended December 31,	2017		2016		2015
Statutory federal income tax rate	35.00	%	35.00	%	35.00	%
Impact of Tax Act	21.69		—		—
State income taxes, net of federal	2.63		0.48		7.62
Return to provision adjustment	0.81		0.26		0.89
Excess tax benefit on share-based compensation	0.33		(0.18	)	—
Tax impact of United Kingdom subsidiary liquidation	—		(0.54	)	—
Non-controlling interests	—		(2.49	)	22.87
Nondeductible compensation	—		—		(2.78	)
Other, net	1.09		(0.66	)	(1.14	)
Effective income tax rate	61.55	%	31.87	%	62.46	%

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 benefits (all of which would affect the effective income tax rate if recognized) is as follows:

(dollars in millions)
Years Ended December 31,	2017			2016			2015
Balance at beginning of year	$	16		$	15		$	4
Increases in tax positions for current years	1			2			10
Increases in tax positions for prior years	—			—			4
Lapse in statute of limitations	(2		)	(1		)	—
Settlements with tax authorities	—			—			(1		)
Decreases in tax positions for prior years	—			—			(2		)
Balance at end of year	$	15		$	16		$	15

Schedule of components of deferred tax assets and liabilities

Components of deferred tax assets and liabilities were as follows:

(dollars in millions)
December 31,	2017			2016
Deferred tax assets:
Allowance for loan losses	$	146		$	246
State taxes, net of federal	65			58
Mark-to-market	55			55
Pension/employee benefits	5			19
Acquisition costs	6			6
Federal and foreign net operating losses and tax attributes	5			4
Insurance reserves	3			—
Legal and warranty reserve	2			6
Other intangibles	2			1
Other	9			9
Total	298			404
Deferred tax liabilities:
Debt fair value adjustment	44			90
Goodwill	41			37
Deferred loan fees	14			12
Discount - debt exchange	11			16
Deferred insurance commissions	2			2
Impact of tax accounting method change	—			38
Insurance Reserves	—			2
Other	5			1
Total	117			198
Net deferred tax assets before valuation allowance	181			206
Valuation allowance	(44		)	(29		)
Net deferred tax assets	$	137		$	177

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Lease Commitments, Rent Expense, and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

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
2018	$	52
2019	40
2020	30
2021	20
2022	11
2023+	14
Total	$	167

Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations

The activity in our reserve for sales recourse obligations was as follows:

(dollars in millions)
At or for the Years Ended December 31,	2017			2016			2015
Balance at beginning of period	$	13		$	15		$	24
Recourse losses	(1		)	—			(2		)
Provision for recourse obligations, net of recoveries *	(4		)	(2		)	(7		)
Balance at end of period	$	8		$	13		$	15

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

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

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 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	1,382,920		$	35.86
Granted	407,184		27.85
Vested	(575,322	)	31.86
Forfeited	(73,172	)	38.10
Unvested at December 31, 2017	1,141,610		34.87		1.91

Summary of performance activity

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017:

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in Years)
Unvested as of January 1, 2017	407,948		$	25.94
Granted	90,072		24.98
Vested	(92,000	)	24.78
Forfeited	(136,394	)	25.70
Unvested at December 31, 2017	269,626		26.14		3.78

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

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			Other (a)			Eliminations		Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2017
Interest income	$	3,296	$	—		$	23		$	—	$	(132	)	$	3,187
Interest expense	765		—			21			—		30			816
Provision for finance receivable losses	955		—			7			—		(15		)	947
Net interest income (loss) after provision for finance receivable losses	1,576		—			(5		)	—		(147		)	1,424
Other revenues (b)	549		—			23			—		(32		)	540
Acquisition-related transaction and integration expenses	66		—			6			—		(3		)	69
Other expenses	1,458		2			11			—		29			1,500
Income (loss) before income tax expense (benefit)	$	601	$	(2	)	$	1		$	—	$	(205	)	$	395
Assets (c)	$	16,793	$	—		$	680		$	—	$	2,172		$	19,645

(dollars in millions)	Consumer and Insurance		Acquisitions and Servicing		Other (a)			Eliminations			Segment to GAAP Adjustment			Consolidated Total
At or for the Year Ended December 31, 2016
Interest income	$	3,314	$	102	$	51		$	—		$	(371	)	$	3,096
Interest expense	738		20		43			—			55			856
Provision for finance receivable losses	908		14		6			—			1			929
Net interest income (loss) after provision for finance receivable losses	1,668		68		2			—			(427		)	1,311
Net gain on sale of SpringCastle interests	—		167		—			—			—			167
Other revenues (b)	609		—		(16		)	—			(6		)	587
Acquisition related transaction and integration expenses	100		1		27			—			(20		)	108
Other expenses	1,461		16		29			—			54			1,560
Income before income taxes	716		218		(70		)	—			(467		)	397
Income before income tax attributable to non-controlling interests	—		28		—			—			—			28
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	716	$	190	$	(70	)	$	—		$	(467	)	$	369
Assets (c)	$	15,783	$	—	$	590		$	—		$	1,967		$	18,340
At or for the Year Ended December 31, 2015
Interest income	$	1,470	$	455	$	76		$	—		$	(91	)	$	1,910
Interest expense	242		87		268			(5		)	123			715
Provision for finance receivable losses	346		68		(1		)	—			298			711
Net interest income (loss) after provision for finance receivable losses	882		300		(191		)	5			(512		)	484
Other revenues	274		5		19			(5		)	(18		)	275
Acquisition related transaction and integration expenses	16		1		48			—			(3		)	62
Other expenses	768		61		50			—			14			893
Income (loss) before income tax expense (benefit)	372		243		(270		)	—			(541		)	(196		)
Income before income tax attributable to non-controlling interests	—		127		—			—			—			127
Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation	$	372	$	116	$	(270	)	$	—		$	(541	)	$	(323	)
Assets	$	15,875	$	1,784	$	1,415		$	—		$	2,322		$	21,396

(a) Real Estate segment has been combined with “Other” for the prior period.

(b) Other revenues reported in “Other” primarily includes interest income on the SFC’s note receivable from SFI. See Note 12 for further information on the notes receivable from parent and affiliates.

(c) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 12 for further information on the note receivable from parent.

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	Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio.
	Consumer and Insurance and Other - The Company has securitization debt 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. 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 Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and
	l Consumer and Insurance - receives remainder of unallocated average debt.
	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 $208 million for Other.
	For the period first quarter 2015 to the OneMain Acquisition
	Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other asset base. Any excess was allocated to Consumer and Insurance.
	Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt.
	Asset base represented the following:
	l  Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; and
	l  Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments.
Provision for finance receivable losses	Directly correlated with specific segment, except for allocations related to personal loans and retail in 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:
	l  Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt.
	l  Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt.
Acquisition-related transaction and integration expenses	Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided.
Other expenses	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 - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs, and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and reestablishes interest income recognition on a historical cost basis;

• Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis;

• Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis;

• Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio;

• Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis;

• Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and

• Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition.

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

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

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2017
Assets
Cash and cash equivalents	$	904	$	54	$	—	$	958	$	958
Investment securities	36		1,654		7		1,697		1,697
Net finance receivables, less allowance for finance receivable losses	—		—		15,607		15,607		14,217
Finance receivables held for sale	—		—		139		139		132
Notes receivable from parent	—		391		—		391		391
Restricted cash and restricted cash equivalents	498		—		—		498		498
Other assets (a)	—		4		12		16		16
Liabilities
Long-term debt	$	—	$	15,625	$	—	$	15,625	$	15,050
Other liabilities (b)	—		189		—		189		189
December 31, 2016
Assets
Cash and cash equivalents	$	480	$	73	$	—	$	553	$	553
Investment securities	31		1,724		9		1,764		1,764
Net finance receivables, less allowance for finance receivable losses	—		—		13,857		13,857		13,000
Finance receivables held for sale	—		—		159		159		153
Notes receivable from parent	—		285		—		285		285
Restricted cash and restricted cash equivalents	568		—		—		568		568
Other assets (a)	—		77		34		111		113
Liabilities
Long-term debt	$	—	$	14,498	$	—	$	14,498	$	13,959
Other liabilities (b)	—		39		—		39		39

(a) Other assets includes commercial mortgage loans, escrow advance receivables, and receivables from parent and affiliates at December 31, 2017 and commercial mortgage loans, escrow advance receivables, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets at December 31, 2016.

(b) Consists of payables to parent and affiliates.

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 (a)
December 31, 2017
Assets
Cash equivalents in mutual funds	$	688	$	—	$	—	$	688
Cash equivalents in securities	—		54		—		54
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		28		—		28
Obligations of states, municipalities, and political subdivisions	—		135		—		135
Non-U.S. government and government sponsored entities	—		60		—		60
Certificates of deposit and commercial paper	—		125		—		125
Corporate debt	—		946		2		948
RMBS	—		99		—		99
CMBS	—		87		—		87
CDO/ABS	—		95		1		96
Total bonds	—		1,575		3		1,578
Preferred stock	7		7		—		14
Common stock	23		—		—		23
Other long-term investments	—		—		1		1
Total available-for-sale securities (b)	30		1,582		4		1,616
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		66		2		68
RMBS	—		1		—		1
CMBS	—		—		—		—
CDO/ABS	—		4		—		4
Total bonds	—		72		2		74
Preferred stock	6		—		—		6
Total other securities	6		72		2		80
Total investment securities	36		1,654		6		1,696
Restricted cash in mutual funds	484		—		—		484
Total	$	1,208	$	1,708	$	6	$	2,922

(a) Due to the insignificant activity within the Level 3 assets during 2017, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017, which is carried at cost.

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3 (a)
December 31, 2016
Assets
Cash equivalents in mutual funds	$	286	$	—	$	—	$	286
Cash equivalents in securities	—		73		—		73
Investment securities:
Available-for-sale securities
Bonds:
U.S. government and government sponsored entities	—		31		—		31
Obligations of states, municipalities, and political subdivisions	—		145		—		145
Non-U.S. government and government sponsored entities	—		118		—		118
Corporate debt	—		1,025		—		1,025
RMBS	—		100		—		100
CMBS	—		108		—		108
CDO/ABS	—		98		4		102
Total bonds	—		1,625		4		1,629
Preferred stock	8		8		—		16
Common stock	17		—		—		17
Other long-term investments	—		—		2		2
Total available-for-sale securities (b)	25		1,633		6		1,664
Other securities
Bonds:
Non-U.S. government and government sponsored entities	—		1		—		1
Corporate debt	—		83		2		85
RMBS	—		1		—		1
CMBS	—		1		—		1
CDO/ABS	—		5		—		5
Total bonds	—		91		2		93
Preferred stock	6		—		—		6
Total other securities	6		91		2		99
Total investment securities	31		1,724		8		1,763
Restricted cash in mutual funds	553		—		—		553
Total	$	870	$	1,797	$	8	$	2,675

(a) Due to the insignificant activity within the Level 3 assets during 2016, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

(b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016, which is carried at cost.

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, 2017
Assets
Real estate owned	$	—	$	—	$	6	$	6	$	3
At or for the Year Ended December 31, 2016
Assets
Finance receivables held for sale	$	—	$	—	$	159	$	159	$	4
Real estate owned	—		—		5		5		2
Total	$	—	$	—	$	164	$	164	$	6

* 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, 2017 and 2016 was as follows:

			Range (Weighted Average)
	Valuation Technique(s)	Unobservable Input	December 31, 2017	December 31, 2016
Finance receivables held for sale	Income approach	Market value for similar type loan transactions to obtain a price point	*	*
Real estate owned	Market approach	Third-party valuation	*	*

* We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable.

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of selected quarterly financial data

Our selected quarterly financial data for 2017 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	853	$	806	$	772	$	756
Interest expense	204		207		203		202
Provision for finance receivable losses	229		242		233		243
Other revenues	139		149		117		135
Other expenses	382		401		386		400
Income before income taxes	177		105		67		46
Income taxes	161		44		20		18
Net income	$	16	$	61	$	47	$	28

Our selected quarterly financial data for 2016 was as follows:

(dollars in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	766	$	767	$	739	$	824
Interest expense	201		215		214		226
Provision for finance receivable losses	256		261		218		194
Other revenues	138		151		158		307
Other expenses	409		396		416		447
Income before income taxes	38		46		49		264
Income taxes	—		16		20		91
Net income	38		30		29		173
Net income attributable to non-controlling interests	—		—		—		28
Net income attributable to Springleaf Finance Corporation	$	38	$	30	$	29	$	145

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Nature of Operations - paragraph 2 (Details)	Dec. 31, 2017
Springleaf Financial Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage	44.00%

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Significant Transactions - Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 958	$ 553	$ 893
Investment securities	1,697	1,764
Net finance receivables:
Personal loans of consolidated VIEs	14,775	13,531
Real estate loans	128	144
Retail sales finance	6	11
Net finance receivables	14,909	13,686
Unearned insurance premium and claim reserves	(590)	(586)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	(692)	(686)	(589)	$ (180)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	13,627	12,414
Finance receivables held for sale	132	153
Notes receivable from parent and affiliates	391	285
Restricted cash and restricted cash equivalents	498	568	676
Goodwill	1,422	1,422	1,440
Other intangible assets	439	491
Other assets	481	690
Total assets	19,645	18,340	21,396
Liabilities and Shareholder’s Equity
Carrying Value	15,050	13,959
Note payable to parent and affiliates	0	0
Insurance claims and policyholder liabilities	737	757
Deferred and accrued taxes	46	11
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	410	340
Total liabilities	16,243	15,067
Commitments and contingent liabilities (Note 20)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	5	5
Additional paid-in capital	1,909	1,906
Accumulated other comprehensive income (loss)	6	(6)
Retained earnings	1,482	1,368
Total shareholder’s equity	3,402	3,273
Total liabilities and shareholder’s equity	19,645	18,340
As Reported SFC
Assets
Cash and cash equivalents	244	240	321
Investment securities	536	582
Net finance receivables:
Personal loans of consolidated VIEs	5,308	4,804
Real estate loans	128	144
Retail sales finance	6	11
Net finance receivables	5,442	4,959
Unearned insurance premium and claim reserves	(108)	(212)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	(240)	(204)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	5,094	4,543
Finance receivables held for sale	132	153
Notes receivable from parent and affiliates	4,488	3,723
Restricted cash and restricted cash equivalents	169	227	295
Goodwill	0	0
Other intangible assets	15	15
Other assets	146	236
Total assets	10,824	9,719
Liabilities and Shareholder’s Equity
Carrying Value	7,865	6,837
Note payable to parent and affiliates	0	0
Insurance claims and policyholder liabilities	261	248
Deferred and accrued taxes	78	106
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	214	185
Total liabilities	8,418	7,376
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	5	5
Additional paid-in capital	799	799
Accumulated other comprehensive income (loss)	0	(7)
Retained earnings	1,602	1,546
Total shareholder’s equity	2,406	2,343
Total liabilities and shareholder’s equity	10,824	9,719
Independence
Assets
Cash and cash equivalents	714	313	572
Investment securities	1,172	1,188
Net finance receivables:
Personal loans of consolidated VIEs	9,467	8,727
Real estate loans	0	0
Retail sales finance	0	0
Net finance receivables	9,467	8,727
Unearned insurance premium and claim reserves	(482)	(374)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	(452)	(482)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	8,533	7,871
Finance receivables held for sale	0	0
Notes receivable from parent and affiliates	0	0
Restricted cash and restricted cash equivalents	329	341	381
Goodwill	1,422	1,422
Other intangible assets	424	476
Other assets	402	552
Total assets	12,996	12,163
Liabilities and Shareholder’s Equity
Carrying Value	7,195	7,127
Note payable to parent and affiliates	4,097	3,438
Insurance claims and policyholder liabilities	476	509
Deferred and accrued taxes	3	0
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	229	159
Total liabilities	12,000	11,233
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	0	0
Additional paid-in capital	1,110	1,107
Accumulated other comprehensive income (loss)	6	1
Retained earnings	(120)	(178)
Total shareholder’s equity	996	930
Total liabilities and shareholder’s equity	12,996	12,163
Adjustments
Assets
Cash and cash equivalents	0	0	0
Investment securities	(11)	(6)
Net finance receivables:
Personal loans of consolidated VIEs	0	0
Real estate loans	0	0
Retail sales finance	0	0
Net finance receivables	0	0
Unearned insurance premium and claim reserves	0	0
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016)	0	0
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	0	0
Finance receivables held for sale	0	0
Notes receivable from parent and affiliates	(4,097)	(3,438)
Restricted cash and restricted cash equivalents	0	0	$ 0
Goodwill	0	0
Other intangible assets	0	0
Other assets	(67)	(98)
Total assets	(4,175)	(3,542)
Liabilities and Shareholder’s Equity
Carrying Value	(10)	(5)
Note payable to parent and affiliates	(4,097)	(3,438)
Insurance claims and policyholder liabilities	0	0
Deferred and accrued taxes	(35)	(95)
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	(33)	(4)
Total liabilities	(4,175)	(3,542)
Shareholder’s equity:
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016	0	0
Additional paid-in capital	0	0
Accumulated other comprehensive income (loss)	0	0
Retained earnings	0	0
Total shareholder’s equity	0	0
Total liabilities and shareholder’s equity	$ (4,175)	$ (3,542)

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Significant Transactions - Statements of Operations (Details) - USD ($) $ in Millions		3 Months Ended								12 Months Ended
	May 02, 2016	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest income:
Finance charges										$ 3,174	$ 3,022	$ 1,850
Finance receivables held for sale originated as held for investment										13	74	60
Total interest income		$ 853	$ 806	$ 772	$ 756	$ 766	$ 767	$ 739	$ 824	3,187	3,096	1,910
Interest expense		204	207	203	202	201	215	214	226	816	856	715
Net interest income										2,371	2,240	1,195
Provision for finance receivable losses		229	242	233	243	256	261	218	194	947	929	711
Net interest income after provision for finance receivable losses										1,424	1,311	484
Other revenues:
Insurance										420	449	211
Investment										73	86	50
Interest income on notes receivable from parent										23	19	15
Net loss on repurchases and repayments of debt										(29)	(17)	0
Net gain on sale of SpringCastle interests									167	0	167	0
Net gain on sales of personal and real estate loans and related trust assets	$ 22									0	18	0
Other										53	32	(1)
Total other revenues		139	149	117	135	138	151	158	307	540	754	275
Operating expenses:
Salaries and benefits										729	723	426
Acquisition-related transaction and integration expenses										69	108	62
Other operating expenses										587	670	371
Insurance policy benefits and claims										184	167	96
Total other expenses		382	401	386	400	409	396	416	447	1,569	1,668	955
Income (loss) before income tax expense (benefit)		177	105	67	46	38	46	49	264	395	397	(196)
Income tax expense (benefit)		161	44	20	18	0	16	20	91	243	127	(122)
Net income (loss)		$ 16	$ 61	$ 47	$ 28	38	30	29	173	152	270	(74)
Net income attributable to non-controlling interests						0	0	0	28	0	28	127
Net income (loss) attributable to Springleaf Finance Corporation						$ 38	$ 30	$ 29	$ 145	152	242	(201)
As Reported SFC
Interest income:
Finance charges										1,228	1,276	1,597
Finance receivables held for sale originated as held for investment										13	74	60
Total interest income										1,241	1,350	1,657
Interest expense										517	556	667
Net interest income										724	794	990
Provision for finance receivable losses										324	329	339
Net interest income after provision for finance receivable losses										400	465	651
Other revenues:
Insurance										140	160	158
Investment										28	31	49
Interest income on notes receivable from parent										255	214	42
Net loss on repurchases and repayments of debt										(28)	(17)
Net gain on sale of SpringCastle interests											167
Net gain on sales of personal and real estate loans and related trust assets											18
Other										12	1	(6)
Total other revenues										407	574	243
Operating expenses:
Salaries and benefits										307	347	364
Acquisition-related transaction and integration expenses										0	0	0
Other operating expenses										251	291	299
Insurance policy benefits and claims										56	55	72
Total other expenses										614	693	735
Income (loss) before income tax expense (benefit)										193	346	159
Income tax expense (benefit)										99	113	18
Net income (loss)										94	233	141
Net income attributable to non-controlling interests										0	28	127
Net income (loss) attributable to Springleaf Finance Corporation										94	205	14
Independence
Interest income:
Finance charges										1,946	1,746	253
Finance receivables held for sale originated as held for investment										0	0	0
Total interest income										1,946	1,746	253
Interest expense										531	502	75
Net interest income										1,415	1,244	178
Provision for finance receivable losses										623	600	372
Net interest income after provision for finance receivable losses										792	644	(194)
Other revenues:
Insurance										280	289	53
Investment										45	55	1
Interest income on notes receivable from parent										0	7	0
Net loss on repurchases and repayments of debt										(1)	0
Net gain on sale of SpringCastle interests											0
Net gain on sales of personal and real estate loans and related trust assets											0
Other										69	31	5
Total other revenues										393	382	59
Operating expenses:
Salaries and benefits										442	427	73
Acquisition-related transaction and integration expenses										0	0	0
Other operating expenses										413	436	123
Insurance policy benefits and claims										128	112	24
Total other expenses										983	975	220
Income (loss) before income tax expense (benefit)										202	51	(355)
Income tax expense (benefit)										144	14	(140)
Net income (loss)										58	37	(215)
Net income attributable to non-controlling interests										0	0	0
Net income (loss) attributable to Springleaf Finance Corporation										58	37	(215)
Adjustments
Interest income:
Finance charges										0	0	0
Finance receivables held for sale originated as held for investment										0	0	0
Total interest income										0	0	0
Interest expense										(232)	(202)	(27)
Net interest income										232	202	27
Provision for finance receivable losses										0	0	0
Net interest income after provision for finance receivable losses										232	202	27
Other revenues:
Insurance										0	0	0
Investment										0	0	0
Interest income on notes receivable from parent										(232)	(202)	(27)
Net loss on repurchases and repayments of debt										0	0
Net gain on sale of SpringCastle interests											0
Net gain on sales of personal and real estate loans and related trust assets											0
Other										(28)	0	0
Total other revenues										(260)	(202)	(27)
Operating expenses:
Salaries and benefits										(20)	(51)	(11)
Acquisition-related transaction and integration expenses										69	108	62
Other operating expenses										(77)	(57)	(51)
Insurance policy benefits and claims										0	0	0
Total other expenses										(28)	0	0
Income (loss) before income tax expense (benefit)										0	0	0
Income tax expense (benefit)										0	0	0
Net income (loss)										0	0	0
Net income attributable to non-controlling interests										0	0	0
Net income (loss) attributable to Springleaf Finance Corporation										$ 0	$ 0	$ 0

XML

Significant Transactions - Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ 16	$ 61	$ 47	$ 28	$ 38	$ 30	$ 29	$ 173	$ 152	$ 270	$ (74)
Reconciling adjustments:
Provision for finance receivable losses	229	$ 242	$ 233	243	256	$ 261	$ 218	194	947	929	711
Depreciation and amortization									317	510	193
Deferred income tax charge (benefit)									43	(105)	(208)
Non-cash incentive compensation from Initial Stockholder									0	0	15
Net gain on liquidation of United Kingdom subsidiary									0	(4)	0
Net gain on sales of personal and real estate loans and related trust assets									0	(18)	0
Net loss on repurchases and repayments of debt									29	17	0
Share-based compensation expense, net of forfeitures									5	8	2
Net gain on sale of SpringCastle interests								167	0	167	0
Other									(5)	(9)	2
Cash flows due to changes in:
Other assets and other liabilities									175	(189)	1
Insurance claims and policyholder liabilities									(22)	(64)	27
Taxes receivable and payable									43	(38)	131
Accrued interest and finance charges									(37)	15	(34)
Other, net									0	3	(2)
Net cash provided by operating activities									1,647	1,158	764
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale									(2,267)	(1,155)	(975)
Proceeds on sales of finance receivables held for sale originated as held for investment									0	930	78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired									0	0	(3,520)
Proceeds from sale of SpringCastle interests, net of restricted cash released									0	26	0
Cash advances on intercompany note to parent									(355)	(297)	(327)
Proceeds from repayments of principal on intercompany note to parent									249	401	189
Cash received from CitiFinancial Credit Company									0	23	0
Available-for-sale securities purchased									(671)	(746)	(525)
Trading and other securities purchased									0	(17)	(1,474)
Available-for-sale securities called, sold, and matured									739	837	521
Trading and other securities called, sold, and matured									18	63	3,779
Proceeds from sale of real estate owned									4	8	14
Other, net									3	(10)	(14)
Net cash used for investing activities									(2,280)	63	(2,254)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions									5,427	6,660	3,028
Repayments of long-term debt									(4,447)	(8,320)	(1,960)
Proceeds from intercompany note payable											0
Distributions to joint venture partners										(18)	(77)
Excess tax benefit from share-based compensation											1
Payments on note payable to affiliate										0
Proceeds from intercompany note payable									0	0
Payments on intercompany note payable									0
Withholding tax on vested RSUs and PRSUs									(2)	(1)	1
Capital contributions from parent									0	10	1,100
Cash dividend of SFMC									(10)
Net cash provided by (used for) financing activities									968	(1,669)	2,092
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents									335	(448)	602
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period				1,121				1,569	1,121	1,569	967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,456				1,121				1,456	1,121	1,569
Supplemental cash flow information
Cash and cash equivalents												$ 958	$ 553	$ 893
Restricted cash and restricted cash equivalents												498	568	676
Total cash and cash equivalents and restricted cash and restricted cash equivalents	1,456			1,121	1,121			1,569	1,121	1,569	967	1,456	1,121	1,569
Interest paid									(746)	(765)	(594)
Income taxes received (paid)									(154)	(269)	43
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)									0	1,945	617
Increase in finance receivables held for investment financed with intercompany payable									0	89	0
Transfer of finance receivables to real estate owned									9	8	11
Net unsettled investment security purchases									1	1	0
Non-cash dividend of SFMC									(28)	0	0
As Reported SFC
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)									94	233	141
Reconciling adjustments:
Provision for finance receivable losses									324	329	339
Depreciation and amortization									143	144	92
Deferred income tax charge (benefit)									(82)	(83)	(50)
Non-cash incentive compensation from Initial Stockholder											15
Net gain on liquidation of United Kingdom subsidiary										(4)
Net gain on sales of personal and real estate loans and related trust assets										(18)
Net loss on repurchases and repayments of debt									28	17
Share-based compensation expense, net of forfeitures									0	1	2
Net gain on sale of SpringCastle interests										167
Other									1	6	(3)
Cash flows due to changes in:
Other assets and other liabilities									107	(37)	(48)
Insurance claims and policyholder liabilities									(92)	(19)	34
Taxes receivable and payable									13	56	111
Accrued interest and finance charges									(95)	14	(23)
Other, net									(3)	3	(2)
Net cash provided by operating activities									438	475	608
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale									(783)	(557)	(799)
Proceeds on sales of finance receivables held for sale originated as held for investment										930	78
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired											0
Proceeds from sale of SpringCastle interests, net of restricted cash released										26
Cash advances on intercompany note to parent									(1,837)	(1,042)	(3,720)
Proceeds from repayments of principal on intercompany note to parent									1,154	1,023	189
Cash received from CitiFinancial Credit Company										0
Available-for-sale securities purchased									(245)	(353)	(476)
Trading and other securities purchased										(10)	(1,474)
Available-for-sale securities called, sold, and matured									301	380	470
Trading and other securities called, sold, and matured									1	20	3,779
Proceeds from sale of real estate owned									4	8	14
Other, net									12	26	(12)
Net cash used for investing activities									(1,393)	451	(1,951)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions									3,456	3,854	3,028
Repayments of long-term debt									(2,544)	(4,920)	(1,960)
Proceeds from intercompany note payable											0
Distributions to joint venture partners										(18)	(77)
Excess tax benefit from share-based compensation											1
Payments on note payable to affiliate										(670)
Proceeds from intercompany note payable									0	670
Payments on intercompany note payable									0
Withholding tax on vested RSUs and PRSUs									(1)	(1)
Capital contributions from parent										10	0
Cash dividend of SFMC									(10)
Net cash provided by (used for) financing activities									901	(1,075)	992
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents									(54)	(149)	(351)
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period				467				616	467	616	967
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	413				467				413	467	616
Supplemental cash flow information
Cash and cash equivalents												244	240	321
Restricted cash and restricted cash equivalents												169	227	295
Total cash and cash equivalents and restricted cash and restricted cash equivalents	413			467	467			616	467	616	967	413	467	616
Interest paid									(436)	(451)	(511)
Income taxes received (paid)									(71)	(140)	45
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)										1,945	617
Increase in finance receivables held for investment financed with intercompany payable										89
Transfer of finance receivables to real estate owned									9	8	11
Net unsettled investment security purchases									0	0
Non-cash dividend of SFMC									(28)
Independence
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)									58	37	(215)
Reconciling adjustments:
Provision for finance receivable losses									623	600	372
Depreciation and amortization									174	366	101
Deferred income tax charge (benefit)									125	(22)	(158)
Non-cash incentive compensation from Initial Stockholder											0
Net gain on liquidation of United Kingdom subsidiary										0
Net gain on sales of personal and real estate loans and related trust assets										0
Net loss on repurchases and repayments of debt									1	0
Share-based compensation expense, net of forfeitures									5	7	0
Net gain on sale of SpringCastle interests										0
Other									(6)	(15)	5
Cash flows due to changes in:
Other assets and other liabilities									68	(152)	49
Insurance claims and policyholder liabilities									70	(45)	(7)
Taxes receivable and payable									30	(94)	20
Accrued interest and finance charges									54	1	(11)
Other, net									3	0	0
Net cash provided by operating activities									1,205	683	156
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale									(1,484)	(598)	(176)
Proceeds on sales of finance receivables held for sale originated as held for investment										0	0
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired											(3,520)
Proceeds from sale of SpringCastle interests, net of restricted cash released										0
Cash advances on intercompany note to parent									0	(670)	0
Proceeds from repayments of principal on intercompany note to parent									0	670	0
Cash received from CitiFinancial Credit Company										23
Available-for-sale securities purchased									(431)	(399)	(49)
Trading and other securities purchased										(7)
Available-for-sale securities called, sold, and matured									438	457	51
Trading and other securities called, sold, and matured									17	43	0
Proceeds from sale of real estate owned									0	0	0
Other, net									(9)	(36)	(2)
Net cash used for investing activities									(1,469)	(517)	(3,696)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions									1,971	2,806	0
Repayments of long-term debt									(1,898)	(3,394)	0
Proceeds from intercompany note payable											3,393
Distributions to joint venture partners										0	0
Excess tax benefit from share-based compensation											0
Payments on note payable to affiliate										(1,292)
Proceeds from intercompany note payable									1,486	1,415
Payments on intercompany note payable									(905)
Withholding tax on vested RSUs and PRSUs									(1)	0
Capital contributions from parent										0	1,100
Cash dividend of SFMC									0
Net cash provided by (used for) financing activities									653	(465)	4,493
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents									389	(299)	953
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period				654				953	654	953	0
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,043				654				1,043	654	953
Supplemental cash flow information
Cash and cash equivalents												714	313	572
Restricted cash and restricted cash equivalents												329	341	381
Total cash and cash equivalents and restricted cash and restricted cash equivalents	1,043			654	654			953	654	953	0	1,043	654	953
Interest paid									(310)	(314)	(83)
Income taxes received (paid)									(83)	(129)	(2)
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)										0	0
Increase in finance receivables held for investment financed with intercompany payable										0
Transfer of finance receivables to real estate owned									0	0	0
Net unsettled investment security purchases									1	1
Non-cash dividend of SFMC									0
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)									0	0	0
Reconciling adjustments:
Provision for finance receivable losses									0	0	0
Depreciation and amortization									0	0	0
Deferred income tax charge (benefit)									0	0	0
Non-cash incentive compensation from Initial Stockholder											0
Net gain on liquidation of United Kingdom subsidiary										0
Net gain on sales of personal and real estate loans and related trust assets										0
Net loss on repurchases and repayments of debt									0	0
Share-based compensation expense, net of forfeitures									0	0	0
Net gain on sale of SpringCastle interests										0
Other									0	0	0
Cash flows due to changes in:
Other assets and other liabilities									0	0	0
Insurance claims and policyholder liabilities									0	0	0
Taxes receivable and payable									0	0	0
Accrued interest and finance charges									4	0	0
Other, net									0	0	0
Net cash provided by operating activities									4	0	0
Cash flows from investing activities
Net principal originations of finance receivables held for investment and held for sale									0	0	0
Proceeds on sales of finance receivables held for sale originated as held for investment										0	0
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired											0
Proceeds from sale of SpringCastle interests, net of restricted cash released										0
Cash advances on intercompany note to parent									1,482	1,415	3,393
Proceeds from repayments of principal on intercompany note to parent									(905)	(1,292)	0
Cash received from CitiFinancial Credit Company										0
Available-for-sale securities purchased									5	6	0
Trading and other securities purchased										0	0
Available-for-sale securities called, sold, and matured									0	0	0
Trading and other securities called, sold, and matured									0	0	0
Proceeds from sale of real estate owned									0	0	0
Other, net									0	0	0
Net cash used for investing activities									582	129	3,393
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions									0	0	0
Repayments of long-term debt									(5)	(6)	0
Proceeds from intercompany note payable											(3,393)
Distributions to joint venture partners										0	0
Excess tax benefit from share-based compensation											0
Payments on note payable to affiliate										1,962
Proceeds from intercompany note payable									(1,486)	(2,085)
Payments on intercompany note payable									905
Withholding tax on vested RSUs and PRSUs									0	0
Capital contributions from parent										0	0
Cash dividend of SFMC									0
Net cash provided by (used for) financing activities									(586)	(129)	(3,393)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents									0	0	0
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period				0				0	0	0	0
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	0				0				0	0	0
Supplemental cash flow information
Cash and cash equivalents												0	0	0
Restricted cash and restricted cash equivalents												0	0	0
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$ 0			$ 0	$ 0			$ 0	0	0	0	$ 0	$ 0	$ 0
Interest paid									0	0	0
Income taxes received (paid)									0	0	0
Supplemental non-cash activities
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses)										0	0
Increase in finance receivables held for investment financed with intercompany payable										0
Transfer of finance receivables to real estate owned									0	0	$ 0
Net unsettled investment security purchases									0	$ 0
Non-cash dividend of SFMC									$ 0

XML

Significant Transactions - OMH Acquisition of OneMain Financial Holding, LLC (Details) $ in Millions			12 Months Ended			26 Months Ended
	Nov. 15, 2015 USD ($)	Nov. 13, 2015 branch	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 USD ($)
Fair value of liabilities assumed:
Goodwill			$ 1,422	$ 1,422	$ 1,440	$ 1,422
Adjustments
Acquisition-related transaction and integration expenses			69	108	$ 62
OM Loans
Business Acquisition [Line Items]
Cash consideration	$ 4,478			4,455
Fair value of assets acquired:
Cash and cash equivalents	958			958
Investment securities	1,294			1,294
Personal loans	8,801			8,795
Intangibles	555			558
Other assets	247			244
Fair value of liabilities assumed:
Long-term debt	(7,725)			(7,725)
Unearned premium, insurance policy and claims reserves	(936)			(936)
Other liabilities	(156)			(155)
Goodwill	1,440			1,422
Adjustments
Cash consideration				(23)
Cash and cash equivalents				0
Investment securities				0
Personal loans				(6)
Intangibles				3
Other assets				(3)
Long-term debt				0
Unearned premium, insurance policy and claims reserves				0
Other liabilities				1
Business combination, provisional information, initial accounting incomplete, adjustment, impaired financing receivable				64
Business combination, provisional information, initial accounting incomplete, adjustment, performing financing receivable				$ 58
Business combination, recognized identifiable assets acquired and liabilities assumed, financing receivable, net	8,100
Business combination, recognized identifiable assets acquired and liabilities assumed, loans and leases receivable, gross, consumer, installment, durable goods, non-credit impaired	11,600
Business combination, recognized identifiable assets acquired and liabilities assumed, loans and leases receivable, gross, consumer, installment, durable goods, related allowance	$ 2,200
Acquisition-related transaction and integration expenses			$ 69			$ 239
Number of branches divested | branch		127
Number of states where branches were divested		11

XML

Significant Transactions - Lendmark Sale (Details) $ in Millions	Nov. 13, 2015	Nov. 12, 2015 USD ($) branch	May 13, 2016 extension	May 02, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)
Business Acquisition [Line Items]
Number of extensions | extension			2
Sale of Branches to Lendmark
Business Acquisition [Line Items]
Number of days to close sale of branches	120 days
Sale price				$ 624
Sale of Branches to Lendmark | Personal Loans
Business Acquisition [Line Items]
Loans receivable held for sale						$ 608
Unpaid principal balance of loans sold					$ 600
Sale of Branches to Lendmark | Maximum
Business Acquisition [Line Items]
Consideration from disposal of branches, threshold for certain limitations		$ 695
Lendmark Sale
Business Acquisition [Line Items]
Number of branch offices | branch		127
Loans purchased multiplier as of Lendmark Sale closing date		103.00%

XML

Significant Transactions - Springcastle Interests Sale (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on sale of SpringCastle interests		$ 167	$ 0	$ 167	$ 0
Springleaf Financial Holdings, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage			44.00%
Ownership percentage by initial stockholder	58.00%	58.00%
SpringCastle Interests Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage	47.00%	47.00%
Aggregate purchase price	$ 112	$ 112
Aggregate purchase price from sale of portfolio	101	101
Escrow advance receivable	$ 11	$ 11
Maximum number of years, the amount must be left in the escrow account	5 years
SpringCastle Interests Sale | NRZ Consumer LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage						30.00%
SpringCastle Interests Sale | Blackstone Buyers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage						23.00%

XML

Significant Transactions - Real Estate Loan Sales (Details) - Real Estate Sale - USD ($) $ in Millions	Dec. 19, 2016	Aug. 03, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	$ 58	$ 246
Loss on sale of loans (less than)	$ 1	$ 4

XML

Significant Transactions - SFC Medium-Term Note Issuances (Details) - USD ($)	Dec. 31, 2017	Dec. 08, 2017	May 30, 2017	May 15, 2017	Apr. 11, 2016
Senior debt | Senior Notes 6.125%
Debt Instrument [Line Items]
Interest rates (as a percent)			6.125%	6.125%
Issue Amount			$ 500,000,000	$ 500,000,000
Senior debt | Senior Notes 5.625%
Debt Instrument [Line Items]
Interest rates (as a percent)		5.625%
Issue Amount		$ 875,000,000
Guaranty Agreements | Springleaf Finance Corporation | Senior Note 8.25%, due 2020
Debt Instrument [Line Items]
Interest rates (as a percent)					8.25%
Issue Amount	$ 1,000,000,000				$ 1,000,000,000

XML

Summary of Significant Accounting Policies Basis of Presentation (Details)	Mar. 31, 2016
Corporate Joint Venture
Entity Information [Line Items]
Ownership percentage	47.00%

XML

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2017 deferment segment payment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of business segments | segment	2
Finance receivables past due period	60 days
Financing receivable, period which most repurchase requests occur	5 years
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
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off	180 days
Residential Portfolio Segment
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
Retail Sales Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off	180 days
Financing receivable, number of deferments allowed in twelve month period | deferment	2
Financing receivable, period for deferment allowance	12 months
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
Real Estate Loans Central
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, number of deferments allowed in twelve month period | deferment	1
Minimum | 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 | 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

XML

Summary of Significant Accounting Policies - Prior Period Revisions (Details) - USD ($) $ in Millions	3 Months Ended									12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses	$ 229	$ 242	$ 233	$ 243	$ 256	$ 261	$ 218	$ 194		$ 947	$ 929	$ 711
Decreased provision for income tax expense	$ (161)	$ (44)	$ (20)	$ (18)	$ 0	$ (16)	$ (20)	$ (91)		$ (243)	$ (127)	$ 122
Charge-off of Certain Bankrupt Accounts and Error in Calculation of Allowance of TDR Finance Receivables
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for finance receivable losses									$ 8
Decreased provision for income tax expense									$ 3

XML

Recent Accounting Pronouncements (Details) $ in Millions	Dec. 31, 2017 USD ($)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Operating leases, future minimum payments due	$ 167

XML

Finance Receivables - Narrative (Details)	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Personal loans of consolidated VIEs	$ 14,775,000,000	$ 13,531,000,000
Finance receivables held for sale	132,000,000	$ 153,000,000
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:
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
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off	180 days
Personal Loans | Consumer household goods or other items of personal property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of personal loans	2,300,000.0	2,200,000.0
Personal Loans | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term	3 years
Personal Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term	6 years
Real Estate Loans | Nonperforming:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off	90 days
Real Estate Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term	360 months
Retail Sales Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables period for write-off	180 days
Retail Sales Finance | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original term	60 months

XML

Finance Receivables - By Type (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	$ 16,307	$ 15,514
Unearned finance charges and points and fees	(1,725)	(2,061)
Accrued finance charges	211	151
Deferred origination costs	116	82
Net finance receivables	14,909	13,686
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	16,173	15,360
Unearned finance charges and points and fees	(1,724)	(2,061)
Accrued finance charges	210	150
Deferred origination costs	116	82
Net finance receivables	14,775	13,531
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	127	142
Unearned finance charges and points and fees		1
Accrued finance charges	1	1
Net finance receivables	128	144
Retail Sales Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross receivables	7	12
Unearned finance charges and points and fees	(1)	(1)
Net finance receivables	$ 6	$ 11

XML

Finance Receivables - Geographic Diversification (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 14,909	$ 13,686
Finance receivable | Geographic concentration
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 14,909	$ 13,686
Concentration (as a percent)	100.00%	100.00%
Finance receivable | Geographic concentration | Texas
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 1,300	$ 1,194
Concentration (as a percent)	9.00%	9.00%
Finance receivable | Geographic concentration | North Carolina
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 1,155	$ 1,112
Concentration (as a percent)	8.00%	8.00%
Finance receivable | Geographic concentration | Pennsylvania
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 882	$ 825
Concentration (as a percent)	6.00%	6.00%
Finance receivable | Geographic concentration | California
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 876	$ 806
Concentration (as a percent)	6.00%	6.00%
Finance receivable | Geographic concentration | Ohio
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 726	$ 660
Concentration (as a percent)	5.00%	5.00%
Finance receivable | Geographic concentration | Florida
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 674	$ 572
Concentration (as a percent)	5.00%	4.00%
Finance receivable | Geographic concentration | Illinois
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 667	$ 599
Concentration (as a percent)	4.00%	4.00%
Finance receivable | Geographic concentration | Virginia
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 641	$ 623
Concentration (as a percent)	4.00%	5.00%
Finance receivable | Geographic concentration | Georgia
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 618	$ 586
Concentration (as a percent)	4.00%	4.00%
Finance receivable | Geographic concentration | Indiana
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 608	$ 539
Concentration (as a percent)	4.00%	4.00%
Finance receivable | Geographic concentration | Tennessee
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 520	$ 465
Concentration (as a percent)	3.00%	3.00%
Finance receivable | Geographic concentration | Other
GEOGRAPHIC DIVERSIFICATION
Net finance receivables	$ 6,242	$ 5,705
Concentration (as a percent)	42.00%	42.00%

XML

Finance Receivables - By Type And By Days Delinquent (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Net finance receivables:
Net finance receivables	$ 14,909	$ 13,686
Personal Loans
Net finance receivables:
Net finance receivables	14,775	13,531
Real Estate Loans
Net finance receivables:
Net finance receivables	128	144
Retail Sales Finance
Net finance receivables:
Net finance receivables	6	11
Performing:
Net finance receivables:
Net finance receivables	14,554	13,306
Performing: | Current
Net finance receivables:
Net finance receivables	14,185	12,991
Performing: | 30-59 days past due
Net finance receivables:
Net finance receivables	210	182
Performing: | 60-89 days past due
Net finance receivables:
Net finance receivables	159	133
Performing: | Personal Loans
Net finance receivables:
Net finance receivables	14,439	13,180
Performing: | Personal Loans | Current
Net finance receivables:
Net finance receivables	14,081	12,878
Performing: | Personal Loans | 30-59 days past due
Net finance receivables:
Net finance receivables	202	173
Performing: | Personal Loans | 60-89 days past due
Net finance receivables:
Net finance receivables	156	129
Performing: | Real Estate Loans
Net finance receivables:
Net finance receivables	109	115
Performing: | Real Estate Loans | Current
Net finance receivables:
Net finance receivables	98	102
Performing: | Real Estate Loans | 30-59 days past due
Net finance receivables:
Net finance receivables	8	9
Performing: | Real Estate Loans | 60-89 days past due
Net finance receivables:
Net finance receivables	3	4
Performing: | Retail Sales Finance
Net finance receivables:
Net finance receivables	6	11
Performing: | Retail Sales Finance | Current
Net finance receivables:
Net finance receivables	6	11
Performing: | Retail Sales Finance | 30-59 days past due
Net finance receivables:
Net finance receivables	0	0
Performing: | Retail Sales Finance | 60-89 days past due
Net finance receivables:
Net finance receivables	0	0
Nonperforming:
Net finance receivables:
Net finance receivables	355	380
Nonperforming: | 90-179 days past due
Net finance receivables:
Net finance receivables	334	355
Nonperforming: | 180 days or more past due
Net finance receivables:
Net finance receivables	21	25
Nonperforming: | Personal Loans
Net finance receivables:
Net finance receivables	336	351
Nonperforming: | Personal Loans | 90-179 days past due
Net finance receivables:
Net finance receivables	330	347
Nonperforming: | Personal Loans | 180 days or more past due
Net finance receivables:
Net finance receivables	6	4
Nonperforming: | Real Estate Loans
Net finance receivables:
Net finance receivables	19	29
Nonperforming: | Real Estate Loans | 90-179 days past due
Net finance receivables:
Net finance receivables	4	8
Nonperforming: | Real Estate Loans | 180 days or more past due
Net finance receivables:
Net finance receivables	15	21
Nonperforming: | Retail Sales Finance
Net finance receivables:
Net finance receivables	0	0
Nonperforming: | Retail Sales Finance | 90-179 days past due
Net finance receivables:
Net finance receivables	0	0
Nonperforming: | Retail Sales Finance | 180 days or more past due
Net finance receivables:
Net finance receivables	$ 0	$ 0

XML

Finance Receivables - Purchased Credit Impaired Held For Investment And Held For Sale (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	$ 233	$ 394
Outstanding balance	337	551
Purchased credit impaired finance receivables	15	37
OM Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	176	324
Outstanding balance	243	444
Purchased credit impaired finance receivables	6	29
FA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount, net of allowance	57	70
Outstanding balance	94	107
Purchased credit impaired finance receivables	9	8
Carrying amount of finance receivables held for sale	44	54
Outstanding balance of finance receivables held for sale	$ 72	$ 83

XML

Finance Receivables - Changes In Accretable Yield For Purchased Credit Impaired (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	$ 119	$ 592	$ 506
Additions from OneMain Acquisition		166
Accretion	(39)	(92)	(100)
Other		23
Reclassifications to nonaccretable difference	20	12	20
Transfers due to finance receivables sold		(370)
Balance at end of period	100	119	592
OM Loans
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	59	151	0
Additions from OneMain Acquisition		166
Accretion	(34)	(69)	(15)
Other		23
Reclassifications to nonaccretable difference	22	0	0
Transfers due to finance receivables sold		0
Balance at end of period	47	59	151
SCP Loans
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	0	375	452
Additions from OneMain Acquisition		0
Accretion	0	(16)	(77)
Other		0
Reclassifications to nonaccretable difference	0	0	0
Transfers due to finance receivables sold		(359)
Balance at end of period	0	0	375
FA Loans
Changes in accretable yield for purchased credit impaired finance receivables
Balance at beginning of period	60	66	54
Additions from OneMain Acquisition		0
Accretion	(5)	(7)	(8)
Other		0
Reclassifications to nonaccretable difference	(2)	12	20
Transfers due to finance receivables sold		(11)
Balance at end of period	53	60	66
Accretion of purchased credit impairment FA loans held for sale	$ 4	$ 5	$ 6

XML

Finance Receivables - TDR Held For Investment And Held For Sale (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	$ 457	$ 284
TDR net finance receivables	457	286
Allowance for TDR finance receivable losses	146	80
Personal Loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	318	151
TDR net finance receivables	317	152
Allowance for TDR finance receivable losses	134	69
Real Estate Loans
Financing Receivable, Modifications [Line Items]
TDR gross finance receivables	139	133
TDR net finance receivables	140	134
Allowance for TDR finance receivable losses	12	11
TDR gross finance receivables, held for sale	90	89
TDR net finance receivables, held for sale	$ 91	$ 90

XML

Finance Receivables - TDR Recognized (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
TDR average net receivables	$ 370	$ 270	$ 245
TDR finance charges recognized	42	23	15
Personal Loans
Financing Receivable, Modifications [Line Items]
TDR average net receivables	230	95	35
TDR finance charges recognized	33	12	3
SCP Loans
Financing Receivable, Modifications [Line Items]
TDR average net receivables	0	0	12
TDR finance charges recognized	0	0	1
Real Estate Loans
Financing Receivable, Modifications [Line Items]
TDR average net receivables	140	175	198
TDR finance charges recognized	9	11	11
TDR average net receivables, held for sale	91	102	91
TDR finance charges recognized, held for sale	$ 6	$ 6	$ 5

XML

Finance Receivables - TDR New Volume (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) account	Dec. 31, 2016 USD ($) account	Dec. 31, 2015 USD ($) account
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	$ 342	$ 228	$ 75
Post-modification TDR net finance receivables:	$ 340	$ 224	$ 71
Number of TDR accounts | account	45,810	29,916	9,471
Rate reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	$ 266	$ 211	$ 54
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	74	13	17
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	326	211	47
Post-modification TDR net finance receivables:	$ 324	$ 206	$ 43
Number of TDR accounts | account	45,300	29,395	8,365
Personal Loans | Rate reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	$ 250	$ 194	$ 31
Personal Loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	74	12	12
SCP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	0	1	7
Post-modification TDR net finance receivables:	$ 0	$ 1	$ 6
Number of TDR accounts | account	0	157	721
SCP Loans | Rate reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	$ 0	$ 1	$ 6
SCP Loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	0	0	0
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification TDR net finance receivables	16	16	21
Post-modification TDR net finance receivables:	$ 16	$ 17	$ 22
Number of TDR accounts | account	510	364	385
Pre-modification TDR net finance receivables, held for sale	$ 6	$ 5	$ 6
Post-modification TDR net finance receivables, held for sale	$ 7	$ 5	$ 7
Number of TDR accounts, held for sale | account	232	122	113
Real Estate Loans | Rate reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	$ 16	$ 16	$ 17
Real Estate Loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-modification TDR net finance receivables:	$ 0	$ 1	$ 5

XML

Finance Receivables - Held For Investment And Held For Sale Modified As TDR (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) account	Dec. 31, 2016 USD ($) account	Dec. 31, 2015 USD ($) account
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables	$ 92,000,000	$ 27,000,000	$ 13,000,000
Number of TDR accounts | account	15,036	3,764	1,842
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables	$ 88,000,000	$ 24,000,000	$ 8,000,000
Number of TDR accounts | account	14,935	3,684	1,649
SCP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables	$ 0	$ 0	$ 2,000,000
Number of TDR accounts | account	0	19	147
TDR net finance receivables, threshold for disclosure	$ 1,000,000
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR net finance receivables	$ 4,000,000	$ 3,000,000	$ 3,000,000
Number of TDR accounts | account	101	61	46
TDR net finance receivables, held for sale	$ 2,000,000	$ 2,000,000	$ 1,000,000
Number of TDR accounts, held for sale | account	53	30	17

XML

Allowance for Finance Receivable Losses - Changes in Allowance for Finance Receivable Losses by Type (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period				$ 686				$ 589	$ 686	$ 589	$ 180
Provision for finance receivable losses	$ 229	$ 242	$ 233	243	$ 256	$ 261	$ 218	194	947	929	711
Charge-offs									(1,047)	(872)	(356)
Recoveries									106	74	55
Other										(34)	(1)
Balance at end of period	692				686				692	686	589
Personal Loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period				666				538	666	538	130
Provision for finance receivable losses									941	906	629
Charge-offs									(1,041)	(843)	(257)
Recoveries									102	65	37
Other										0	(1)
Balance at end of period	668				666				668	666	538
SCP Loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period				0				4	0	4	3
Provision for finance receivable losses									0	14	67
Charge-offs									0	(17)	(78)
Recoveries									0	3	12
Other										(4)	0
Balance at end of period	0				0				0	0	4
Real Estate Loans
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period				19				46	19	46	46
Provision for finance receivable losses									6	9	13
Charge-offs									(5)	(11)	(18)
Recoveries									3	5	5
Other										(30)	0
Balance at end of period	23				19				23	19	46
Retail Sales Finance
Changes in the allowance for finance receivable losses by finance receivable type
Balance at beginning of period				$ 1				$ 1	1	1	1
Provision for finance receivable losses									0	0	2
Charge-offs									(1)	(1)	(3)
Recoveries									1	1	1
Other										0	0
Balance at end of period	$ 1				$ 1				$ 1	$ 1	$ 1

XML

Allowance for Finance Receivable Losses - By Type And By Impairment Method (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for finance receivable losses:
Collectively evaluated for impairment	$ 531	$ 569
Purchased credit impaired finance receivables	15	37
TDR finance receivables	146	80
Allowance for finance receivable losses	692	686	$ 589	$ 180
Finance receivables:
Collectively evaluated for impairment	14,339	13,113
TDR finance receivables	366	196
Net finance receivables	$ 14,909	$ 13,686
Allowance for finance receivable losses as a percentage of finance receivables	4.64%	5.01%
Purchased credit impaired finance receivables
Finance receivables:
Net finance receivables	$ 204	$ 377
Personal Loans
Allowance for finance receivable losses:
Collectively evaluated for impairment	528	568
Purchased credit impaired finance receivables	6	29
TDR finance receivables	134	69
Allowance for finance receivable losses	668	666	538	130
Finance receivables:
Collectively evaluated for impairment	14,276	13,026
TDR finance receivables	317	152
Net finance receivables	$ 14,775	$ 13,531
Allowance for finance receivable losses as a percentage of finance receivables	4.52%	4.92%
Personal Loans | Purchased credit impaired finance receivables
Finance receivables:
Net finance receivables	$ 182	$ 353
Real Estate Loans
Allowance for finance receivable losses:
Collectively evaluated for impairment	2	0
Purchased credit impaired finance receivables	9	8
TDR finance receivables	12	11
Allowance for finance receivable losses	23	19	46	46
Finance receivables:
Collectively evaluated for impairment	57	76
TDR finance receivables	49	44
Net finance receivables	$ 128	$ 144
Allowance for finance receivable losses as a percentage of finance receivables	18.66%	13.31%
Real Estate Loans | Purchased credit impaired finance receivables
Finance receivables:
Net finance receivables	$ 22	$ 24
Retail Sales Finance
Allowance for finance receivable losses:
Collectively evaluated for impairment	1	1
Purchased credit impaired finance receivables	0	0
TDR finance receivables	0	0
Allowance for finance receivable losses	1	1	$ 1	$ 1
Finance receivables:
Collectively evaluated for impairment	6	11
TDR finance receivables	0	0
Net finance receivables	$ 6	$ 11
Allowance for finance receivable losses as a percentage of finance receivables	9.91%	4.42%
Retail Sales Finance | Purchased credit impaired finance receivables
Finance receivables:
Net finance receivables	$ 0	$ 0

XML

Finance Receivables Held for Sale - (Details) - USD ($) $ in Millions				1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2016	Jun. 30, 2016	May 02, 2016	Mar. 31, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables held for sale						$ 132	$ 153
Finance receivables transferred from held for investment to held for sale								$ 608
Net gain on sale of SpringCastle interests					$ 167	0	167	0
Finance receivable held for sale, carrying value			$ 602
Net gain on sales of personal and real estate loans and related trust assets			$ 22			$ 0	18	$ 0
SCP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables transferred from held for investment to held for sale				$ 1,600
Net gain on sale of SpringCastle interests				$ 167
Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables transferred from held for investment to held for sale	$ 50	$ 257
Real Estate Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Disposal group including discontinued operations carrying value							58		$ 250
Loss on loans sold							$ 1		$ 4

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Investment Securities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	$ 1,611	$ 1,666
Unrealized Gains	14	10
Unrealized Losses	(9)	(12)
Fair Value	1,616	1,664
Cost method investments	1	1
Bonds
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	1,574	1,631
Unrealized Gains	12	9
Unrealized Losses	(8)	(11)
Fair Value	1,578	1,629
U.S. government and government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	28	31
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	28	31
Obligations of states, municipalities, and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	135	145
Unrealized Gains	0	1
Unrealized Losses	0	(1)
Fair Value	135	145
Certificates of Deposit and Commercial Paper
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	60
Unrealized Gains	0
Unrealized Losses	0
Fair Value	60
Non-U.S. government and government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	126	119
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	125	118
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	941	1,024
Unrealized Gains	12	8
Unrealized Losses	(5)	(7)
Fair Value	948	1,025
RMBS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	100	101
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	99	100
CMBS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	88	109
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	87	108
CDO/ABS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	96	102
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	96	102
Preferred stocks
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	15	17
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	14	16
Common Stock
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	21	16
Unrealized Gains	2	1
Unrealized Losses	0	0
Fair Value	23	17
Other long-term investments
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	1	2
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	$ 1	$ 2

XML

Investment Securities - Fair Value and Unrealized Losses on AFS Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value
Less Than 12 Months	$ 697	$ 800
12 Months or Longer	225	29
Total	922	829
Unrealized Losses
Less Than 12 Months	(4)	(10)
12 Months or Longer	(5)	(2)
Total	(9)	(12)
Other-than-temporary impairment credit loss
Minimum disclosure of unrealized losses on certain available-for-sale securities	1	1
Bonds
Fair Value
Less Than 12 Months	690	792
12 Months or Longer	218	20
Total	908	812
Unrealized Losses
Less Than 12 Months	(4)	(10)
12 Months or Longer	(4)	(1)
Total	(8)	(11)
U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	21	18
12 Months or Longer	3	0
Total	24	18
Unrealized Losses
Less Than 12 Months		0
12 Months or Longer	0	0
Total	0	0
Obligations of states, municipalities, and political subdivisions
Fair Value
Less Than 12 Months	65	99
12 Months or Longer	20	2
Total	85	101
Unrealized Losses
Less Than 12 Months	0	(1)
12 Months or Longer	0	0
Total	0	(1)
Non-U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	89	55
12 Months or Longer	13	1
Total	102	56
Unrealized Losses
Less Than 12 Months	(1)	(1)
12 Months or Longer	0
Total	(1)	(1)
Corporate debt
Fair Value
Less Than 12 Months	387	416
12 Months or Longer	93	8
Total	480	424
Unrealized Losses
Less Than 12 Months	(3)	(6)
12 Months or Longer	(2)	(1)
Total	(5)	(7)
RMBS
Fair Value
Less Than 12 Months	40	74
12 Months or Longer	25	1
Total	65	75
Unrealized Losses
Less Than 12 Months	0	(1)
12 Months or Longer	(1)	0
Total	(1)	(1)
CMBS
Fair Value
Less Than 12 Months	40	66
12 Months or Longer	38	5
Total	78	71
Unrealized Losses
Less Than 12 Months	0	(1)
12 Months or Longer	(1)	0
Total	(1)	(1)
CDO/ABS
Fair Value
Less Than 12 Months	48	64
12 Months or Longer	26	3
Total	74	67
Unrealized Losses
Less Than 12 Months		0
12 Months or Longer	0	0
Total	0	0
Preferred stocks
Fair Value
Less Than 12 Months	3	6
12 Months or Longer	7	8
Total	10	14
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	(1)	(1)
Total	(1)	(1)
Common Stock
Fair Value
Less Than 12 Months	3	2
12 Months or Longer	0	1
Total	3	3
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	$ 0
Other long-term investments
Fair Value
Less Than 12 Months	1
12 Months or Longer	0
Total	1
Unrealized Losses
Less Than 12 Months	0
12 Months or Longer	0
Total	$ 0

XML

Investment Securities (Narrative) (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) investment	Dec. 31, 2016 USD ($) investment	Dec. 31, 2015 USD ($)
Debt Securities, Available-for-sale [Line Items]
Investment securities in an unrealized loss position | investment	1,369	1,331
Net impairment losses recognized in net income (loss)	$ 0	$ 0	$ 0
Available-for-sale securities	1,616,000,000	1,664,000,000
Net realized gains (losses) on trading and other securities sold or redeemed during the year	0	7,000,000	$ (3,000,000)
Deposits With Third Parties
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities	$ 537,000,000	$ 465,000,000

XML

Investment Securities - Proceeds of AFS Securities Sold or Redeemed (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities sold or redeemed
Proceeds from sales and redemptions	$ 508	$ 518	$ 429
Realized gains	15	16	15
Realized losses	(1)	(1)	(1)
Net realized gains	$ 14	$ 15	$ 14

XML

Investment Securities - Contractual Maturities of Fixed Maturity AFS Securities (Details) $ in Millions	Dec. 31, 2017 USD ($)
Fair Value
Due in 1 year or less	$ 224
Due after 1 year through 5 years	530
Due after 5 years through 10 years	335
Due after 10 years	207
Mortgage-backed, asset-backed, and collateralized securities	282
Total	1,578
Amortized Cost
Due in 1 year or less	225
Due after 1 year through 5 years	531
Due after 5 years through 10 years	334
Due after 10 years	200
Mortgage-backed, asset-backed, and collateralized securities	284
Total	$ 1,574

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Investment Securities - By Types (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	$ 74	$ 93
Total	80	99
Non-U.S. government and government sponsored entities
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	1	1
Corporate debt
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	68	85
RMBS
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	1	1
CMBS
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	0	1
CDO/ABS
Schedule of Held-to-maturity Securities [Line Items]
Total bonds	4	5
Preferred stocks
Schedule of Held-to-maturity Securities [Line Items]
Preferred stock	$ 6	$ 6

XML

Investment Securities - Realized Gain (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Mark-to-market gains (losses) on trading and other securities held at year end	$ (1)	$ 1	$ 0
Net realized gains (losses) on trading and other securities sold or redeemed during the year	0	7	(3)
Total	$ (1)	$ 8	$ (3)

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Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Balance at beginning of period	$ 1,422	$ 1,440
Adjustments to purchase price allocation	0	(18)
Balance at end of period	$ 1,422	$ 1,422

XML

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 633	$ 633
Accumulated Amortization	(194)	(142)
Net Other Intangible Assets	439	491
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	223	223
Accumulated Amortization	(92)	(58)
Net Other Intangible Assets	131	165
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	220	220
Accumulated Amortization	0	0
Net Other Intangible Assets	220	220
VOBA
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	141	141
Accumulated Amortization	(90)	(74)
Net Other Intangible Assets	51	67
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	37	37
Accumulated Amortization	0	0
Net Other Intangible Assets	37	37
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12	12
Accumulated Amortization	(12)	(10)
Net Other Intangible Assets	$ 0	$ 2

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 52	$ 70	$ 16

XML

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Estimated Aggregate Amortization Expense
2018	$ 42
2019	39
2020	38
2021	32
2022	$ 3

XML

Other Assets Components of Other Assets Table (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other Assets [Abstract]
Deferred tax assets	$ 139	$ 180
Ceded insurance reserves	95	102
Prepaid expenses and deferred charges	89	89
Fixed assets, net	67	128
Other investments	29	52
current tax receivables	13	20
Cost basis investments	11	11
Receivables from parent and affiliates	4	76
Other	34	32
Other Assets	$ 481	$ 690

XML

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other Assets [Abstract]
Accumulated depreciation on fixed assets	$ 120	$ 247

XML

Transactions with Affiliates (Details)	Mar. 31, 2016
Corporate Joint Venture
Related Party Transaction [Line Items]
Ownership percentage	47.00%

XML

Related Party Transactions (Details)			12 Months Ended
	Apr. 10, 2017 USD ($)	Apr. 05, 2017 USD ($)	Dec. 31, 2017 USD ($) building	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)
Related Party Transaction [Line Items]
Note receivable from parent			$ 391,000,000	$ 285,000,000
Decrease in total equity			38,000,000
Finance charges			$ 3,174,000,000	3,022,000,000	$ 1,850,000,000
Independence Demand Note
Related Party Transaction [Line Items]
Interest rates (as a percent)			5.87%
OM Loans
Related Party Transaction [Line Items]
Servicing fees				0
Finance charges				0
OneMain Consumer Loan, Inc.
Related Party Transaction [Line Items]
Loan processing fee per underwritten approved application			$ 35
Loan processing fee			56,000,000	17,000,000
Insurance Claims | OneMain Insurance Subsidiaries
Related Party Transaction [Line Items]
Accounts receivable from related parties				0
Intercompany Agreements | Affiliated companies | Springleaf Consumer Loan, Inc. (SCLI) [Member]
Related Party Transaction [Line Items]
Aggregate purchase price			2,000,000			$ 4,000,000	$ 89,000,000
Unpaid principal balance of loans sold			2,000,000			$ 4,000,000		$ 89,000,000
Home and Auto Membership Plan Fees | OneMain Insurance Subsidiaries
Related Party Transaction [Line Items]
Accounts payable to related parties			2,000,000	0
Loan Purchase and Sale Agreements | Affiliated companies | OneMain Consumer Loan, Inc.
Related Party Transaction [Line Items]
Service fee expenses			2,000,000	3,000,000
Independence Demand Note | Independence Demand Note
Related Party Transaction [Line Items]
Note receivable from parent				2,900,000,000
OMFH revolving demand note, OneMain Acquisition closing | OneMain Financial Holdings, Inc. | OneMain Financial Holdings, Inc.
Related Party Transaction [Line Items]
Payable due to affiliates				0
SFI | Affiliated companies
Related Party Transaction [Line Items]
Note receivable from parent			391,000,000	285,000,000
Interest revenue on note receivable			$ 23,000,000	19,000,000	15,000,000
Capital contributions received to satisfy interest payments				10,000,000
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]
Service fee expenses			$ 460,000,000	243,000,000	224,000,000
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			$ 1,000,000	6,000,000	6,000,000
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			$ 1,000,000	$ 4,000,000	4,000,000
OM Loans | Affiliated companies
Related Party Transaction [Line Items]
Capital contributions received to satisfy interest payments					$ 1,100,000,000
Springleaf Finance Management Corporation | Affiliated companies
Related Party Transaction [Line Items]
Payable due to affiliates			$ 1,000,000
Decrease in total equity	$ 38,000,000
Decrease in total assets	$ 65,000,000

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Long-term Debt - Carrying Value and Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Carrying Value	$ 15,050	$ 13,959
Fair Value	15,625	14,498
Senior debt
Debt Instrument [Line Items]
Carrying Value	14,878	13,787
Fair Value	15,436	14,340
Junior Subordinated Debt
Debt Instrument [Line Items]
Carrying Value	172	172
Fair Value	$ 189	$ 158

XML

Long-term Debt - Weighted Average Interest Rates (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Weighted average interest rates during period	5.74%	5.67%	6.65%
Current Weighted Average Interest Rate	5.57%	5.88%
Senior debt
Debt Instrument [Line Items]
Weighted average interest rates during period	5.73%	5.60%	6.56%
Current Weighted Average Interest Rate	5.56%	5.80%
Junior Subordinated Debt
Debt Instrument [Line Items]
Weighted average interest rates during period	6.41%	12.26%	12.26%
Current Weighted Average Interest Rate	6.37%	12.26%

XML

Long-term Debt - Principal Maturities By Type (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Jan. 15, 2017	Dec. 31, 2016	Jan. 31, 2007
Debt Instrument [Line Items]
2018	$ 700,000,000
2019	696,000,000
2020	1,299,000,000
2021	1,446,000,000
2022	1,000,000,000
2023-2067	1,525,000,000
Securitizations	8,711,000,000
Total principal maturities	15,377,000,000
Carrying Value	15,050,000,000		$ 13,959,000,000
Debt issuance costs	(54,000,000)
Junior Subordinated Debt
Debt Instrument [Line Items]
Carrying Value	$ 172,000,000		172,000,000
Junior Subordinated Debenture | Junior Subordinated Debt
Debt Instrument [Line Items]
Interest rates (as a percent)		6.00%
Total principal maturities				$ 350,000,000
Debt instrument, interest rate, effective percentage	3.11%
Senior debt | Securitizations
Debt Instrument [Line Items]
2018	$ 0
2019	0
2020	0
2021	0
2022	0
2023-2067	0
Securitizations	8,711,000,000
Total principal maturities	8,711,000,000
Carrying Value	8,688,000,000
Debt issuance costs	(24,000,000)
Senior debt | Medium Term Notes
Debt Instrument [Line Items]
2018	700,000,000
2019	696,000,000
2020	1,299,000,000
2021	1,446,000,000
2022	1,000,000,000
2023-2067	1,175,000,000
Securitizations	0
Total principal maturities	6,316,000,000
Carrying Value	6,190,000,000
Debt issuance costs	(30,000,000)
Senior debt | Revolving Credit Facility | Other assets
Debt Instrument [Line Items]
Debt issuance costs, excluded from direct deduction from long term debt	$ 20,000,000
Junior Subordinated Debt
Debt Instrument [Line Items]
Interest rates (as a percent)	3.11%
2018	$ 0
2019	0
2020	0
2021	0
2022	0
2023-2067	350,000,000
Securitizations	0
Total principal maturities	350,000,000
Carrying Value	172,000,000
Debt issuance costs	$ 0
Minimum | Senior debt | Securitizations
Debt Instrument [Line Items]
Interest rates (as a percent)	2.04%
Minimum | Senior debt | Medium Term Notes
Debt Instrument [Line Items]
Interest rates (as a percent)	5.25%
Maximum | Senior debt | Securitizations
Debt Instrument [Line Items]
Interest rates (as a percent)	6.94%
Maximum | Senior debt | Medium Term Notes
Debt Instrument [Line Items]
Interest rates (as a percent)	8.25%
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Consolidated VIEs
Debt Instrument [Line Items]
Carrying Value	$ 8,700,000,000		$ 8,200,000,000
Amount outstanding under securitization transaction	$ 0

XML

Long-term Debt - Narrative (Details)		1 Months Ended	12 Months Ended
	Jan. 08, 2018	Jan. 31, 2007 USD ($)	Dec. 31, 2017 USD ($) agreement	Sep. 30, 2016	Dec. 08, 2017 USD ($)	May 30, 2017 USD ($)	May 15, 2017 USD ($)	Jan. 15, 2017	Dec. 31, 2016 USD ($)	Apr. 11, 2016 USD ($)	Dec. 03, 2014	Dec. 30, 2013
Principal maturities of long-term debt by type of debt
Carrying Value			$ 15,050,000,000						$ 13,959,000,000
Number of debt agreements with specific financial targets or ratios | agreement			0
Long-term debt, gross			$ 15,377,000,000
SPRINGLEAF FINANCE CORPORATION
Principal maturities of long-term debt by type of debt
Carrying Value			4,824,000,000						4,162,000,000
Long-term debt, gross			5,175,000,000
Senior debt
Principal maturities of long-term debt by type of debt
Carrying Value			14,878,000,000						13,787,000,000
Long-term debt, gross			1,500,000,000
Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Carrying Value			1,600,000,000
Senior Note 8.25%, due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)										8.25%
Senior Notes 5.25 Percent Due 2019 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)											5.25%
Senior Notes Issued in May 2013
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)											5.25%
Carrying Value			700,000,000
8.250% Senior Notes due 2023 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)												8.25%
7.750% Senior Notes due 2021 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)												7.75%
6.00% Senior Notes due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)												6.00%
Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Carrying Value			172,000,000						$ 172,000,000
Trailing period used to calculate fixed charge ratio				12 months
Junior Subordinated Debt | Minimum
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
Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)										8.25%
Issue Amount			1,000,000,000							$ 1,000,000,000
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Long-term debt, gross			$ 875,000,000
Senior Notes 5.625% | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)					5.625%
Issue Amount					$ 875,000,000
Debt instrument, repurchase amount					$ 557,000,000
Senior Notes 5.625% | Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)			5.625%
Medium Term Notes | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)					6.90%
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Long-term debt, gross			$ 1,000,000,000
Senior Notes 6.125% | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)						6.125%	6.125%
Issue Amount						$ 500,000,000	$ 500,000,000
Senior Notes 6.125% | Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)			6.125%
OMFH 6.75 % Notes | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)			6.75%
OMFH 7.25 % Notes | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)			7.25%
OMFH Notes 2019 | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)					6.75%
Issue Amount					$ 700,000,000
Senior Notes due 2017 | Senior debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)						6.90%
Debt instrument, repurchase amount						$ 466,000,000
Junior Subordinated Debenture | Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Interest rates (as a percent)								6.00%
Long-term debt, gross		$ 350,000,000
Term of debt		60 years
Debt instrument, interest rate, effective percentage			3.11%
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior Subordinated Debt
Principal maturities of long-term debt by type of debt
Debt instrument, basis spread on variable rate			1.75%
Beneficial Owners of Debt | Senior Notes due 2017 | Springleaf Finance Corporation | Senior Notes due 2017
Principal maturities of long-term debt by type of debt
Debt instrument, repurchase amount										$ 600,000,000
Subsequent Event | OMFH Notes 2019 | Senior debt
Principal maturities of long-term debt by type of debt
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	103.375%

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Variable Interest Entities Schedule of Variable Interest Entities (Details) - Consolidated VIEs - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	$ 4	$ 3
Finance receivables: | Personal Loans
Variable Interest Entity [Line Items]
Assets	9,769	9,509
Allowance for finance receivable losses
Variable Interest Entity [Line Items]
Assets	465	501
Restricted cash and restricted cash equivalents
Variable Interest Entity [Line Items]
Assets	482	552
Other assets
Variable Interest Entity [Line Items]
Assets	20	14
Long-term debt
Variable Interest Entity [Line Items]
Liabilities	8,688	8,240
Other liabilities
Variable Interest Entity [Line Items]
Liabilities	$ 15	$ 16

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Variable Interest Entities Securitized Borrowings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 11, 2017	Nov. 20, 2017	Sep. 06, 2017	Jun. 28, 2017	Feb. 15, 2017	Feb. 01, 2017	Dec. 31, 2016	Dec. 14, 2016	Jul. 25, 2016	Jul. 19, 2016	Jun. 07, 2016	May 17, 2016	Mar. 23, 2016	Feb. 10, 2016
Debt Instrument [Line Items]
Carrying Value	$ 15,050,000,000							$ 13,959,000,000
Current Weighted Average Interest Rate	5.57%							5.88%
Consolidated VIEs
Debt Instrument [Line Items]
Carrying Value	$ 8,700,000,000							$ 8,200,000,000
Consumer Securitizations: | Consolidated VIEs
Debt Instrument [Line Items]
Carrying Value	7,680,000,000
Consumer Securitizations: | Consolidated VIEs | SLFT 2015-A
Debt Instrument [Line Items]
Issue Amount	1,163,000,000
Carrying Value	$ 1,163,000,000
Current Weighted Average Interest Rate	3.47%
Original Revolving Period	3 years
Consumer Securitizations: | Consolidated VIEs | SLFT 2015-B
Debt Instrument [Line Items]
Issue Amount	$ 314,000,000
Carrying Value	$ 314,000,000
Current Weighted Average Interest Rate	3.78%
Original Revolving Period	5 years
Consumer Securitizations: | Consolidated VIEs | SLFT 2016-A
Debt Instrument [Line Items]
Issue Amount	$ 532,000,000
Carrying Value	$ 500,000,000
Current Weighted Average Interest Rate	3.10%
Original Revolving Period	2 years
Principal balance retained									$ 32,000,000
Consumer Securitizations: | Consolidated VIEs | SLFT 2017-A
Debt Instrument [Line Items]
Issue Amount	$ 652,000,000
Carrying Value	$ 619,000,000
Current Weighted Average Interest Rate	2.98%
Original Revolving Period	3 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2014-2
Debt Instrument [Line Items]
Issue Amount	$ 1,185,000,000
Carrying Value	$ 320,000,000
Current Weighted Average Interest Rate	4.16%
Original Revolving Period	2 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-1
Debt Instrument [Line Items]
Issue Amount	$ 1,229,000,000
Carrying Value	$ 1,229,000,000
Current Weighted Average Interest Rate	3.74%
Original Revolving Period	3 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-2
Debt Instrument [Line Items]
Issue Amount	$ 1,250,000,000
Carrying Value	$ 750,000,000
Current Weighted Average Interest Rate	3.40%
Original Revolving Period	2 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-3
Debt Instrument [Line Items]
Issue Amount	$ 293,000,000
Carrying Value	$ 293,000,000
Current Weighted Average Interest Rate	4.21%
Original Revolving Period	5 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-1
Debt Instrument [Line Items]
Issue Amount	$ 500,000,000
Carrying Value	$ 459,000,000
Current Weighted Average Interest Rate	4.01%
Original Revolving Period	3 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-2
Debt Instrument [Line Items]
Issue Amount	$ 890,000,000
Carrying Value	$ 816,000,000
Current Weighted Average Interest Rate	4.50%
Original Revolving Period	2 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-3
Debt Instrument [Line Items]
Issue Amount	$ 350,000,000
Carrying Value	$ 317,000,000
Current Weighted Average Interest Rate	4.33%
Original Revolving Period	5 years
Consumer Securitizations: | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Issue Amount	$ 947,000,000
Carrying Value	$ 900,000,000
Current Weighted Average Interest Rate	2.66%
Original Revolving Period	2 years
Consumer Securitizations: | Consolidated VIEs | SLFT 2014 A
Debt Instrument [Line Items]
Carrying Value						$ 221,000,000
Debt instrument, redemption price						188,000,000
Consumer Securitizations: | Consolidated VIEs | SLFT 2014-1
Debt Instrument [Line Items]
Carrying Value			$ 81,000,000
Debt instrument, redemption price			$ 81,000,000
Auto Securitization: | Consolidated VIEs
Debt Instrument [Line Items]
Carrying Value	$ 1,031,000,000
Auto Securitization: | Consolidated VIEs | ODART 2016-1
Debt Instrument [Line Items]
Issue Amount	754,000,000
Carrying Value	$ 188,000,000
Current Weighted Average Interest Rate	2.91%
Auto Securitization: | Consolidated VIEs | ODART 2017-1
Debt Instrument [Line Items]
Issue Amount	$ 300,000,000
Carrying Value	$ 268,000,000
Current Weighted Average Interest Rate	2.61%
Original Revolving Period	1 year
Auto Securitization: | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Issue Amount	$ 605,000,000
Carrying Value	$ 575,000,000
Current Weighted Average Interest Rate	2.63%
Original Revolving Period	1 year
Total secured structured financings | Consolidated VIEs
Debt Instrument [Line Items]
Carrying Value	$ 8,711,000,000
Class A Notes | Consolidated VIEs | SLFT 2017-A
Debt Instrument [Line Items]
Principal balance retained					$ 26,000,000
Class A Notes | Consolidated VIEs | ODART 2017-1
Debt Instrument [Line Items]
Principal balance retained							$ 11,000,000
Class A Notes | Consolidated VIEs | ODART 2017-2
Debt Instrument [Line Items]
Principal balance retained							11,000,000
Class A Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Principal balance retained		$ 19,000,000
Class B Notes | Consolidated VIEs | SLFT 2017-A
Debt Instrument [Line Items]
Principal balance retained					2,000,000
Class B Notes | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Principal balance retained				$ 3,000,000
Class B Notes | Consolidated VIEs | ODART 2017-1
Debt Instrument [Line Items]
Principal balance retained							1,000,000
Class B Notes | Consolidated VIEs | ODART 2017-2
Debt Instrument [Line Items]
Principal balance retained							1,000,000
Class B Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Principal balance retained		4,000,000
Class C Notes | Consolidated VIEs | SLFT 2017-A
Debt Instrument [Line Items]
Principal balance retained					2,000,000
Class C Notes | Consolidated VIEs | OMFIT 2016-1
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction													$ 45,000,000
Class C Notes | Consolidated VIEs | OMFIT 2016-2
Debt Instrument [Line Items]
Amount of notes sold under private securitization transaction										$ 83,000,000
Class C Notes | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Principal balance retained				3,000,000
Class C Notes | Consolidated VIEs | ODART 2017-2
Debt Instrument [Line Items]
Principal balance retained							1,000,000
Class C Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Principal balance retained		3,000,000
Class D Notes | Consolidated VIEs | SLFT 2017-A
Debt Instrument [Line Items]
Principal balance retained					$ 3,000,000
Class D Notes | Consolidated VIEs | OMFIT 2016-3
Debt Instrument [Line Items]
Principal balance retained												$ 33,000,000
Class D Notes | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Principal balance retained				5,000,000
Class D Notes | Consolidated VIEs | ODART 2016-1
Debt Instrument [Line Items]
Principal balance retained											$ 54,000,000
Class D Notes | Consolidated VIEs | ODART 2017-2
Debt Instrument [Line Items]
Principal balance retained							1,000,000
Class D Notes | Consolidated VIEs | Twenty First Street
Debt Instrument [Line Items]
Debt instrument, redemption price						$ 33,000,000
Class D Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Principal balance retained		2,000,000
Class C and Class D Notes | Consolidated VIEs | OMFIT 2016-1
Debt Instrument [Line Items]
Principal balance retained															$ 86,000,000
Class C and Class D Notes | Consolidated VIEs | OMFIT 2016-2
Debt Instrument [Line Items]
Principal balance retained														$ 157,000,000
Class A-1 Notes | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Principal balance retained				30,000,000
Class A-2 Notes | Consolidated VIEs | OMFIT 2017-1
Debt Instrument [Line Items]
Principal balance retained				$ 6,000,000
Class E Notes | Consolidated VIEs | ODART 2017-2
Debt Instrument [Line Items]
Principal balance retained							$ 18,000,000
Class E Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member]
Debt Instrument [Line Items]
Principal balance retained		$ 2,000,000
Minimum | Consumer Securitizations: | Consolidated VIEs
Debt Instrument [Line Items]
Original Revolving Period	1 year
Maximum | Consumer Securitizations: | Consolidated VIEs
Debt Instrument [Line Items]
Original Revolving Period	5 years

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Variable Interest Entities Revolving Conduit Facilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Carrying Value	$ 15,050,000,000	$ 13,959,000,000
Consolidated VIEs
Debt Instrument [Line Items]
Note Maximum Balance	5,050,000,000
Amount outstanding under securitization transaction	0
Carrying Value	8,700,000,000	$ 8,200,000,000
First Avenue Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	250,000,000
Carrying Value	0
Seine River Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	500,000,000
Amount outstanding under securitization transaction	0
OneMain Financial B6 Warehouse Trust [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	600,000,000
Carrying Value	0
Rocky River Funding LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	250,000,000
Amount outstanding under securitization transaction	0
Financial Funding VII LSA [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	650,000,000
Amount outstanding under securitization transaction	0
Thur River Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	350,000,000
Amount outstanding under securitization transaction	0
OneMain Financial Funding IX LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	600,000,000
Amount outstanding under securitization transaction	0
Mystic River Funding | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	850,000,000
Amount outstanding under securitization transaction	0
Fourth Avenue Auto Funding [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	250,000,000
Amount outstanding under securitization transaction	0
OneMain Financial Auto Funding I, LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities
Debt Instrument [Line Items]
Note Maximum Balance	750,000,000
Amount outstanding under securitization transaction	$ 0

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Variable Interest Entities Narrative (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Interest expense	$ 204,000,000	$ 207,000,000	$ 203,000,000	$ 202,000,000	$ 201,000,000	$ 215,000,000	$ 214,000,000	$ 226,000,000	$ 816,000,000	$ 856,000,000	$ 715,000,000
Consolidated VIEs
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Interest expense									$ 323,000,000	$ 341,000,000	$ 216,000,000
Consumer Securitizations: | Minimum | Consolidated VIEs
Variable Interest Entities
Original Revolving Period									1 year
Consumer Securitizations: | Maximum | Consolidated VIEs
Variable Interest Entities
Original Revolving Period									5 years
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts
Line Of Credit Facility, Amount Of Principal Payment Required During Revolving Period									$ 0

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Insurance (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Insurance claims and policyholder liabilities
Claim reserves	$ 154	$ 158	$ 177	$ 70
Unearned insurance premium and claim reserves	590	586
Insurance claims and policyholder liabilities	737	757
Total	1,327	1,343
Insurance claims and policyholder liabilities assumed from other insurers	325	333
Ceded insurance reserves	95	102
Non-finance receivable
Insurance claims and policyholder liabilities
Unearned premium reserves	81	86
Claim reserves	61	60
Benefit reserves	375	388
Insurance claims and policyholder liabilities	517	534
Non-affiliated insurance companies
Insurance claims and policyholder liabilities
Ceded insurance reserves	95	102
Payable to OMH | Finance receivable
Insurance claims and policyholder liabilities
Unearned premium reserves	515	508
Claim reserves	75	78
Unearned insurance premium and claim reserves	590	586
Third-Party Beneficiaries | Finance receivable
Insurance claims and policyholder liabilities
Unearned premium reserves	99	98
Claim reserves	18	20
Benefit reserves	103	105
Insurance claims and policyholder liabilities	$ 220	$ 223

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Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable
Balance at beginning of period	$ 158	$ 177	$ 70
Plus reinsurance recoverables	(26)	(26)	(22)
Net balance at beginning of period	132	151	48
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition	0	0	104
Additions for losses and loss adjustment expenses incurred to:
Current year	188	203	83
Prior years	5	(20)	5
Total	193	183	88
Reductions for losses and loss adjustment expenses paid related to:
Current year	(115)	(124)	(63)
Prior years	(78)	(78)	(26)
Total	(193)	(202)	(89)
Foreign currency translation adjustment	(1)	0	0
Net balance at end of period	131	132	151
Plus reinsurance recoverables	23	26	26
Balance at end of period	$ 154	$ 158	$ 177

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Insurance - Incurred and Cumulative Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Millions	Dec. 31, 2017 USD ($) claim	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Liability for Claims and Claims Adjustment Expense [Line Items]
Liabilities for claims and claim adjustment expenses, net of reinsurance	$ 112	$ 116	$ 130
Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	655
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	565
All outstanding liabilities before 2013, net of reinsurance	0
Liabilities for claims and claim adjustment expenses, net of reinsurance	90	96	105
2013 | Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	124	124	125	$ 127	$ 140
Incurred-but- not-reported Liabilities	$ 0
Cumulative Number of Reported Claims | claim	50,295
Cumulative Frequency	2.70%
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	$ 124	121	115	105	$ 68
2014 | Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	131	130	132	145
Incurred-but- not-reported Liabilities	$ 3
Cumulative Number of Reported Claims | claim	51,776
Cumulative Frequency	2.70%
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	$ 128	121	110	$ 71
2015 | Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	129	129	138
Incurred-but- not-reported Liabilities	$ 8
Cumulative Number of Reported Claims | claim	52,505
Cumulative Frequency	2.80%
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	$ 121	109	$ 71
2016 | Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	135	138
Incurred-but- not-reported Liabilities	$ 20
Cumulative Number of Reported Claims | claim	51,558
Cumulative Frequency	2.80%
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	$ 115	$ 75
2017 | Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	136
Incurred-but- not-reported Liabilities	$ 59
Cumulative Number of Reported Claims | claim	39,329
Cumulative Frequency	2.20%
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance	$ 77

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Insurance - Reconciliations of Net Incurred And Paid Claims Development to the Liability for Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Liability for Claims and Claims Adjustment Expense [Line Items]
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:	$ 112	$ 116	$ 130
Insurance lines other than short-duration	22	20	25
Total gross liability for unpaid claims and claim adjustment expense	154	158	177	$ 70
Credit insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:	90	96	105
Other short-duration insurance lines
Liability for Claims and Claims Adjustment Expense [Line Items]
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance:	22	20	25
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments	$ 20	$ 22	$ 22

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Insurance - Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Details) - Credit insurance	Dec. 31, 2017
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year One	55.40%
Year Two	29.40%
Year Three	8.90%
Year Four	4.80%
Year Five	2.50%

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Insurance - Statutory Net Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Yosemite | Yosemite
Statutory net income (loss) and statutory capital and surplus
Statutory net income (loss)	$ 19	$ 11	$ 15
Statutory capital and surplus	42	63
Triton | Yosemite
Statutory net income (loss) and statutory capital and surplus
Statutory net income (loss)	31	14	3
Statutory capital and surplus	170	139
Merit | Merit
Statutory net income (loss) and statutory capital and surplus
Statutory net income (loss)	37	20	(1)
Statutory capital and surplus	79	133
AHL | Merit
Statutory net income (loss) and statutory capital and surplus
Statutory net income (loss)	34	71	$ 11
Statutory capital and surplus	$ 130	$ 215

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Insurance - Dividend Restrictions (Details) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Insurance
Statutory accounting practice, period that the ordinary dividends can be paid without prior approval		12 months
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 extraordinary dividend distribution without prior approval from regulatory agency, percent		10.00%
Yosemite
Insurance
Dividends paid with approval of regulatory agency		$ 125	$ 63	$ 100
OneMain | American Health and Life and Triton Insurance Companies
Insurance
Dividends paid with approval of regulatory agency	$ 68	$ 111	$ 105

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Other Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Payables to parent and affiliates	$ 189	$ 39
Accrued expenses and other liabilities	79	93
Accrued interest on debt	58	61
Salary and benefit liabilities	31	45
Insurance liabilities	12	14
Loan principal warranty reserve	8	14
Retirement plans	5	31
Other	28	43
Total	$ 410	$ 340

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Capital Stock (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017 item $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Capital stock
Number of classes of authorized capital stock | item	2
Par value and shares authorized
Special shares, par value (in USD per share) | $ / shares	$ 0
Common stock, par value (in USD per share) | $ / shares	$ 0.50	$ 0.50
Special shares authorized (in shares)	25,000,000
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Shares issued and outstanding
Special stock, shares issued (in shares)	0	0
Special stock, shares outstanding (in shares)	0	0
Common stock, shares issued (in shares)	10,160,021	10,160,021
Common stock, shares outstanding (in shares)	10,160,021	10,160,021
SFI
Capital stock
Capital contributions received to satisfy hybrid debt semi-annual interest payments | $		$ 10

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	$ 3,273	$ 2,908	$ 1,977
Other comprehensive income before reclassifications	21	41	(28)
Reclassification adjustments from accumulated other comprehensive loss	(9)	(14)	(8)
Balance at end of period	3,402	3,273	2,908
Unrealized Gains (Losses) Available-for-Sale Securities
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	(1)	(14)	12
Other comprehensive income before reclassifications	14	23	(18)
Reclassification adjustments from accumulated other comprehensive loss	(9)	(10)	(8)
Balance at end of period	4	(1)	(14)
Retirement Plan Liabilities Adjustments
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	(4)	(19)	(13)
Other comprehensive income before reclassifications	3	15	(6)
Reclassification adjustments from accumulated other comprehensive loss	0	0	0
Balance at end of period	(1)	(4)	(19)
Foreign Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	(1)	0	4
Other comprehensive income before reclassifications	4	3	(4)
Reclassification adjustments from accumulated other comprehensive loss	0	(4)	0
Balance at end of period	3	(1)	0
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Balance at beginning of period	(6)	(33)	3
Balance at end of period	$ 6	$ (6)	$ (33)

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Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification adjustments from accumulated other comprehensive income (loss)
Reclassification from accumulated other comprehensive income (loss), net of taxes	$ 9	$ 14	$ 8
Unrealized Gains (Losses) Available-for-Sale Securities
Reclassification adjustments from accumulated other comprehensive income (loss)
Reclassification from accumulated other comprehensive income (loss), before taxes	14	15	12
Income tax effect	5	5	4
Reclassification from accumulated other comprehensive income (loss), net of taxes	9	10	8
Foreign Currency Translation Adjustments
Reclassification adjustments from accumulated other comprehensive income (loss)
Reclassification from accumulated other comprehensive income (loss), net of taxes	$ 0	$ 4	$ 0

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income (loss) before income tax expense (benefit) - U.S. operations									$ 380	$ 380	$ (208)
Income before income tax expense - foreign operations									15	17	12
Income (loss) before income tax expense (benefit)	$ 177	$ 105	$ 67	$ 46	$ 38	$ 46	$ 49	$ 264	395	397	(196)
Current:
Federal									190	210	80
Foreign									2	1	1
State									8	21	5
Total current									200	232	86
Deferred:
Federal									34	(92)	(192)
Foreign									0	5	0
State									9	(18)	(16)
Total deferred									43	(105)	(208)
Provision for (benefit from) income taxes	161	$ 44	$ 20	18	0	$ 16	$ 20	91	243	127	(122)
Foreign income tax expense, threshold for disclosure									$ 1	$ 1	$ 1
Reconciliation of the statutory federal income tax rate to the effective tax rate
Statutory federal income tax rate									35.00%	35.00%	35.00%
Impact of Tax Act									21.69%	0.00%	0.00%
State income taxes, net of federal									2.63%	0.48%	7.62%
Return to provision adjustment									0.81%	0.26%	0.89%
Excess tax benefit on share-based compensation									0.33%	(0.18%)	0.00%
Non-controlling interests									0.00%	(2.49%)	22.87%
Tax impact of United Kingdom subsidiary liquidation									0.00%	(0.54%)	0.00%
Nondeductible compensation									0.00%	0.00%	(2.78%)
Other, net									1.09%	(0.66%)	(1.14%)
Effective income tax rate									61.55%	31.87%	62.46%
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation
Balance at beginning of year				$ 16				$ 15	$ 16	$ 15	$ 4
Increases in tax positions for current years									1	2	10
Lapse in statute of limitations									(2)	(1)	0
Increases in tax positions for prior years									0	0	4
Decreases in tax positions for prior years									0	0	(2)
Settlements with tax authorities									0	0	(1)
Balance at end of year	$ 15				$ 16				$ 15	$ 16	$ 15

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Allowance for loan losses	$ 146	$ 246
State taxes, net of federal	65	58
Mark-to-market	55	55
Pension/employee benefits	5	19
Acquisition costs	6	6
Federal and foreign net operating losses and tax attributes	5	4
Insurance reserves	3	0
Legal and warranty reserve	2	6
Other intangibles	2	1
Other	9	9
Total	298	404
Deferred tax liabilities:
Debt fair value adjustment	44	90
Goodwill	41	37
Deferred loan fees	14	12
Discount - debt exchange	11	16
Deferred insurance commissions	2	2
Impact of tax accounting method change	0	38
Insurance Reserves	0	2
Other	5	1
Total	117	198
Net deferred tax assets before valuation allowance	181	206
Valuation allowance	(44)	(29)
Net deferred tax assets	$ 137	$ 177

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Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income taxes
Undistributed earnings of foreign subsidiaries	$ 0
Variances from the statutory federal income tax rate, noncontrolling interest income (loss)	0.00%	(2.49%)	22.87%
Impact of Tax Act	21.69%	0.00%	0.00%
Tax Cuts and Jobs of 2017, income tax expense	$ 81,000,000
State operating loss carryforward	704,000,000	$ 750,000,000
Valuation allowance	44,000,000	29,000,000
State
Income taxes
Valuation allowance	$ 44,000,000	$ 29,000,000

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Lease Commitments, Rent Expense, and Contingent Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases
2018	$ 52
2019	40
2020	30
2021	20
2022	11
2023 and thereafter	14
Total	167
Rent expense	$ 77	$ 80	$ 36

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Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) request	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Loss Contingencies [Line Items]
Number of material recourse requests with loss exposure | request	0
Finance Receivables Reserve for Sales Recourse Obligations [Roll Forward]
Balance at beginning of period	$ 13	$ 15	$ 24
Recourse losses	(1)	0	(2)
Provision for recourse obligations, net of recoveries	(4)	(2)	(7)
Balance at end of period	8	$ 13	$ 15
Real Estate Loans
Loss Contingencies [Line Items]
Reserve for sale recourse obligations related to finance receivables sold	$ 8

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Benefit Plans (Details) - Pension Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Springleaf Financial Services Retirement Plan, Springleaf Financial Services Excess Retirement Income Plan, and Supplemental Executive Retirement Income Plan
Benefit Plans
Projected net pension obligation		$ 25,000
CommoLoco Retirement Plan
Benefit Plans
Projected net pension obligation	$ (5,000)	$ 6,000
Minimum age for eligibility to participate in plan	21 years
Requisite continuous service period for eligibility to participate in plan	1 year
Fair value of plan assets	$ 12,000
Projected benefit obligation	$ 17,000

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Share-Based Compensation - Narrative (Details) - USD ($)			12 Months Ended
	May 25, 2016	Oct. 16, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SHARE-BASED COMPENSATION
Performance Targets Probability Of Occurring					100.00%
Employee service share-based compensation, tax benefit from exercise of stock options			$ 2,000,000	$ 3,000,000	$ 1,000,000
Service-Based Awards [Member]
SHARE-BASED COMPENSATION
Weighted average grant date fair value (in USD per share)			$ 27.85	$ 26.14	$ 47.44
Fair value of vested shares			$ 18,000,000	$ 10,000,000	$ 7,000,000
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)			$ 27.85
Granted (in shares)			407,184
Vested (in shares)			575,322
Share-based compensation expense			$ 5,000,000	$ 8,000,000	$ 2,000,000
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)			$ 24.98	$ 34.45
Granted (in shares)			90,072	0
Fair value of vested shares			$ 2,000,000	$ 4,000,000
Vested (in shares)			92,000		0
Incentive Units
SHARE-BASED COMPENSATION
Share-based compensation expense			$ 0	$ 0	$ 15,000,000
Omnibus Incentive Plan
SHARE-BASED COMPENSATION
Number of shares of common stock authorized (in shares)			13,199,096
Number of shares subject to outstanding equity awards (in shares)			1,411,236
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%
Non-Employee Directors | Omnibus Incentive Plan
Share-Based Compensation Plan and Restricted Stock Units and Awards
Maximum cash and equity-based awards to non-employee directors per calendar year	$ 500,000
Minimum
SHARE-BASED COMPENSATION
Vesting period of award with rights			2 years
OM Loans
SHARE-BASED COMPENSATION
Share-based compensation expense					$ 6,000,000

XML

Share-Based Compensation - Service-based Activity (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Weighted Average Grant Date Fair Value
Vested (in USD per share)	$ 24.78
Restricted Stock Units
Number of Shares
Unvested shares at beginning of period (in shares) | shares	1,382,920
Granted (in shares) | shares	407,184
Vested (in shares) | shares	(575,322)
Forfeited (in shares) | shares	(73,172)
Unvested shares at end of period (in shares) | shares	1,141,610
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in USD per share)	$ 35.86
Granted (in USD per share)	27.85
Vested (in USD per share)	31.86
Forfeited (in USD per share)	38.10
Weighted average grant date fair value, end of period (in USD per share)	$ 34.87
Weighted Average Remaining Term (in Years)	1 year 10 months 28 days

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Share-Based Compensation - Performance Based Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted Average Grant Date Fair Value
Vested (in USD per share)	$ 24.78
Performance Shares
Number of Shares
Unvested shares at beginning of period (in shares)	407,948
Granted (in shares)	90,072	0
Vested (in shares)	(92,000)		0
Forfeited (in shares)	(136,394)
Unvested shares at end of period (in shares)	269,626	407,948
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in USD per share)	$ 25.94
Granted (in USD per share)	24.98	$ 34.45
Forfeited (in USD per share)	25.70
Weighted average grant date fair value, end of period (in USD per share)	$ 26.14	$ 25.94
Weighted Average Remaining Term (in Years)	3 years 9 months 11 days

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Segment Information (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Information about segments as well as reconciliations to consolidated financial statement amounts
Number of operating segments | segment									2
Interest income	$ 853	$ 806	$ 772	$ 756	$ 766	$ 767	$ 739	$ 824	$ 3,187	$ 3,096	$ 1,910
Interest expense	204	207	203	202	201	215	214	226	816	856	715
Provision for finance receivable losses	229	242	233	243	256	261	218	194	947	929	711
Net interest income after provision for finance receivable losses									1,424	1,311	484
Net gain on sale of SpringCastle interests								167	0	167	0
Other revenues									540	587	275
Acquisition-related transaction and integration expenses									69	108	62
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									1,500	1,560	893
Income (loss) before income tax expense (benefit)	177	$ 105	$ 67	$ 46	38	$ 46	$ 49	$ 264	395	397	(196)
Income before provision for income taxes attributable to non-controlling interests										28	127
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										369	(323)
Assets (c)	$ 19,645				18,340				$ 19,645	18,340	21,396
Consumer and Insurance
Information about segments as well as reconciliations to consolidated financial statement amounts
Number of states in which entity operates	44								44
Operating Segments | Consumer and Insurance
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income									$ 3,296	3,314	1,470
Interest expense									765	738	242
Provision for finance receivable losses									955	908	346
Net interest income after provision for finance receivable losses									1,576	1,668	882
Net gain on sale of SpringCastle interests										0
Other revenues									549	609	274
Acquisition-related transaction and integration expenses									66	100	16
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									1,458	1,461	768
Income (loss) before income tax expense (benefit)									601	716	372
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										716	372
Assets (c)	$ 16,793				15,783				16,793	15,783	15,875
Operating Segments | Acquisitions and Servicing
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income									0	102	455
Interest expense									0	20	87
Provision for finance receivable losses									0	14	68
Net interest income after provision for finance receivable losses									0	68	300
Net gain on sale of SpringCastle interests										167
Other revenues									0	0	5
Acquisition-related transaction and integration expenses									0	1	1
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									2	16	61
Income (loss) before income tax expense (benefit)									(2)	218	243
Income before provision for income taxes attributable to non-controlling interests										28	127
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation										190	116
Assets (c)	0				0				0	0	1,784
Other
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income									23	51	76
Interest expense									21	43	268
Provision for finance receivable losses									7	6	(1)
Net interest income after provision for finance receivable losses									(5)	2	(191)
Net gain on sale of SpringCastle interests										0
Other revenues									23	(16)	19
Acquisition-related transaction and integration expenses									6	27	48
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									11	29	50
Income (loss) before income tax expense (benefit)									1	(70)	(270)
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										(70)	(270)
Assets (c)	680				590				680	590	1,415
Eliminations
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income									0	0	0
Interest expense									0	0	(5)
Provision for finance receivable losses									0	0	0
Net interest income after provision for finance receivable losses									0	0	5
Net gain on sale of SpringCastle interests										0
Other revenues									0	0	(5)
Acquisition-related transaction and integration expenses									0	0	0
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									0	0	0
Income (loss) before income tax expense (benefit)									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	0
Assets (c)	0				0				0	0	0
Segment to GAAP Adjustment
Information about segments as well as reconciliations to consolidated financial statement amounts
Interest income									(132)	(371)	(91)
Interest expense									30	55	123
Provision for finance receivable losses									(15)	1	298
Net interest income after provision for finance receivable losses									(147)	(427)	(512)
Net gain on sale of SpringCastle interests										0
Other revenues									(32)	(6)	(18)
Acquisition-related transaction and integration expenses									(3)	(20)	(3)
Noninterest Expense Excluding Business Combination, Acquisition Related Costs									29	54	14
Income (loss) before income tax expense (benefit)									(205)	(467)	(541)
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										(467)	(541)
Assets (c)	$ 2,172				$ 1,967				$ 2,172	$ 1,967	$ 2,322

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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
Consumer and Insurance
Segment Reporting Information [Line Items]
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent		$ 208
Other Segments
Segment Reporting Information [Line Items]
Unsecured debt allocation percent	100.00%		100.00%
Other
Segment Reporting Information [Line Items]
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent		$ (208)
Total Average Unsecured Debt Allocation | Consumer and Insurance
Segment Reporting Information [Line Items]
Unsecured debt allocation percent			83.00%

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Fair Value Measurements - Fair Value and Carrying Values of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Investment securities	$ 1,697	$ 1,764
Note receivable from parent	391	285
Restricted cash and restricted cash equivalents	498	568	$ 676
Liabilities
Long-term debt	15,050	13,959
Total Fair Value
Assets
Cash equivalents in securities	958	553
Investment securities	1,697	1,764
Net finance receivables, less allowance for finance receivable losses	15,607	13,857
Finance receivables held for sale	139	159
Note receivable from parent	391	285
Restricted cash and restricted cash equivalents	498	568
Other assets	16	111
Liabilities
Long-term debt	15,625	14,498
Other liabilities	189	39
Total Carrying Value
Assets
Cash equivalents in securities	958	553
Investment securities	1,697	1,764
Net finance receivables, less allowance for finance receivable losses	14,217	13,000
Finance receivables held for sale	132	153
Note receivable from parent	391	285
Restricted cash and restricted cash equivalents	498	568
Other assets	16	113
Liabilities
Long-term debt	15,050	13,959
Other liabilities	189	39
Level 1
Assets
Cash equivalents in securities	904	480
Investment securities	36	31
Net finance receivables, less allowance for finance receivable losses	0	0
Finance receivables held for sale	0	0
Note receivable from parent	0	0
Restricted cash and restricted cash equivalents	498	568
Other assets	0	0
Liabilities
Long-term debt	0	0
Other liabilities	0	0
Level 2
Assets
Cash equivalents in securities	54	73
Investment securities	1,654	1,724
Net finance receivables, less allowance for finance receivable losses	0	0
Finance receivables held for sale	0	0
Note receivable from parent	391	285
Restricted cash and restricted cash equivalents	0	0
Other assets	4	77
Liabilities
Long-term debt	15,625	14,498
Other liabilities	189	39
Level 3
Assets
Cash equivalents in securities	0	0
Investment securities	7	9
Net finance receivables, less allowance for finance receivable losses	15,607	13,857
Finance receivables held for sale	139	159
Note receivable from parent	0	0
Restricted cash and restricted cash equivalents	0	0
Other assets	12	34
Liabilities
Long-term debt	0	0
Other liabilities	$ 0	$ 0

XML

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets
Available-for-sale securities	$ 1,616	$ 1,664
Total investment securities	1,697	1,764
Estimate of Fair Value Measurement
Assets
Cash equivalents in securities	958	553
Total investment securities	1,697	1,764
Investment securities:
Assets
Available-for-sale securities	1,578	1,629
U.S. government and government sponsored entities
Assets
Available-for-sale securities	28	31
Obligations of states, municipalities, and political subdivisions
Assets
Available-for-sale securities	135	145
Corporate debt
Assets
Available-for-sale securities	948	1,025
RMBS
Assets
Available-for-sale securities	99	100
CMBS
Assets
Available-for-sale securities	87	108
CDO/ABS
Assets
Available-for-sale securities	96	102
Preferred stocks
Assets
Available-for-sale securities	14	16
Preferred stock	6	6
Other long-term investments
Assets
Available-for-sale securities	1	2
Common stocks
Assets
Available-for-sale securities	23	17
Common stocks | Not Carried at Fair Value
Assets
Available-for-sale securities	1	1
Level 1
Assets
Cash equivalents in securities	904	480
Total investment securities	36	31
Level 2
Assets
Cash equivalents in securities	54	73
Total investment securities	1,654	1,724
Level 3
Assets
Cash equivalents in securities	0	0
Total investment securities	7	9
Recurring basis
Assets
Other securities	80	99
Recurring basis | Estimate of Fair Value Measurement
Assets
Cash equivalents in mutual funds	688	286
Cash equivalents in securities		73
Available-for-sale securities	1,616	1,664
Other securities		93
Total investment securities	1,696	1,763
Restricted cash in mutual funds	484	553
Total	2,922	2,675
Recurring basis | Investment securities: | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	1,578	1,629
Other securities	74
Recurring basis | U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	28	31
Recurring basis | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	135	145
Recurring basis | Non-U.S. government and government sponsored entities
Assets
Other securities		1
Recurring basis | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	60	118
Other securities	1
Recurring basis | Corporate debt | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	948	1,025
Other securities	68	85
Recurring basis | RMBS
Assets
Other securities		1
Recurring basis | RMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	99	100
Other securities	1
Recurring basis | CMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	87	108
Other securities	0	1
Recurring basis | CDO/ABS
Assets
Other securities		5
Recurring basis | CDO/ABS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	96	102
Other securities	4
Recurring basis | Preferred stocks
Assets
Preferred stock	6	6
Recurring basis | Preferred stocks | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	14	16
Recurring basis | Other long-term investments | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	1	2
Recurring basis | Common stocks
Assets
Available-for-sale securities	23	17
Recurring basis | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement
Assets
Cash equivalents in securities	54
Recurring basis | Cash Equivalents [Member]
Assets
Available-for-sale securities	125
Recurring basis | Level 1
Assets
Other securities	6	6
Recurring basis | Level 1 | Estimate of Fair Value Measurement
Assets
Cash equivalents in mutual funds	688	286
Cash equivalents in securities		0
Available-for-sale securities	30	25
Other securities		0
Total investment securities	36	31
Restricted cash in mutual funds	484	553
Total	1,208	870
Recurring basis | Level 1 | Investment securities:
Assets
Other securities	0
Recurring basis | Level 1 | Investment securities: | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities
Assets
Other securities	0	0
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Corporate debt
Assets
Other securities	0
Recurring basis | Level 1 | Corporate debt | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Other securities		0
Recurring basis | Level 1 | RMBS
Assets
Other securities	0	0
Recurring basis | Level 1 | RMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | CMBS
Assets
Other securities	0
Recurring basis | Level 1 | CMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Other securities		0
Recurring basis | Level 1 | CDO/ABS
Assets
Other securities	0	0
Recurring basis | Level 1 | CDO/ABS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Preferred stocks
Assets
Preferred stock	6	6
Recurring basis | Level 1 | Preferred stocks | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	7	8
Recurring basis | Level 1 | Other long-term investments | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 1 | Common stocks
Assets
Available-for-sale securities	23	17
Recurring basis | Level 1 | Certificates of Deposit and Commercial Paper
Assets
Available-for-sale securities	0
Recurring basis | Level 1 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement
Assets
Cash equivalents in securities	0
Recurring basis | Level 2
Assets
Other securities	72	91
Recurring basis | Level 2 | Estimate of Fair Value Measurement
Assets
Cash equivalents in mutual funds	0	0
Cash equivalents in securities		73
Available-for-sale securities	1,582	1,633
Other securities		91
Total investment securities	1,654	1,724
Restricted cash in mutual funds	0	0
Total	1,708	1,797
Recurring basis | Level 2 | Investment securities:
Assets
Other securities	72
Recurring basis | Level 2 | Investment securities: | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	1,575	1,625
Recurring basis | Level 2 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	28	31
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	135	145
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities
Assets
Other securities	1	1
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	60	118
Recurring basis | Level 2 | Corporate debt
Assets
Other securities	66
Recurring basis | Level 2 | Corporate debt | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	946	1,025
Other securities		83
Recurring basis | Level 2 | RMBS
Assets
Other securities	1	1
Recurring basis | Level 2 | RMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	99	100
Recurring basis | Level 2 | CMBS
Assets
Other securities	0
Recurring basis | Level 2 | CMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	87	108
Other securities		1
Recurring basis | Level 2 | CDO/ABS
Assets
Other securities	4	5
Recurring basis | Level 2 | CDO/ABS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	95	98
Recurring basis | Level 2 | Preferred stocks
Assets
Preferred stock	0	0
Recurring basis | Level 2 | Preferred stocks | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	7	8
Recurring basis | Level 2 | Other long-term investments | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 2 | Common stocks
Assets
Available-for-sale securities	0	0
Recurring basis | Level 2 | Certificates of Deposit and Commercial Paper
Assets
Available-for-sale securities	125
Recurring basis | Level 2 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement
Assets
Cash equivalents in securities	54
Recurring basis | Level 3
Assets
Other securities	2	2
Recurring basis | Level 3 | Estimate of Fair Value Measurement
Assets
Cash equivalents in mutual funds	0	0
Cash equivalents in securities		0
Available-for-sale securities	4	6
Other securities		2
Total investment securities	6	8
Restricted cash in mutual funds	0	0
Total	6	8
Recurring basis | Level 3 | Investment securities:
Assets
Other securities	2
Recurring basis | Level 3 | Investment securities: | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	3	4
Recurring basis | Level 3 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities
Assets
Other securities	0	0
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | Corporate debt
Assets
Other securities	2
Recurring basis | Level 3 | Corporate debt | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	2	0
Other securities		2
Recurring basis | Level 3 | RMBS
Assets
Other securities	0	0
Recurring basis | Level 3 | RMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | CMBS
Assets
Other securities	0
Recurring basis | Level 3 | CMBS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Other securities		0
Recurring basis | Level 3 | CDO/ABS
Assets
Other securities	0	0
Recurring basis | Level 3 | CDO/ABS | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	1	4
Recurring basis | Level 3 | Preferred stocks
Assets
Preferred stock	0	0
Recurring basis | Level 3 | Preferred stocks | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	0	0
Recurring basis | Level 3 | Other long-term investments | Estimate of Fair Value Measurement
Assets
Available-for-sale securities	1	2
Recurring basis | Level 3 | Common stocks
Assets
Available-for-sale securities	0	$ 0
Recurring basis | Level 3 | Certificates of Deposit and Commercial Paper
Assets
Available-for-sale securities	0
Recurring basis | Level 3 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement
Assets
Cash equivalents in securities	$ 0

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Fair Value Measurements - Fair Value Measured on Non-Recurring Basis (Details 5) - Non-recurring basis - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets measured at fair value on a non-recurring basis
Assets at fair value		$ 164
Impairment Charges		6
Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	$ 6	5
Impairment Charges	3	2
Finance receivables held for sale
Assets measured at fair value on a non-recurring basis
Assets at fair value		159
Impairment Charges		4
Level 1
Assets measured at fair value on a non-recurring basis
Assets at fair value		0
Level 1 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 1 | Finance receivables held for sale
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
Level 2 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	0	0
Level 2 | Finance receivables held for sale
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		164
Level 3 | Real estate owned
Assets measured at fair value on a non-recurring basis
Assets at fair value	$ 6	5
Level 3 | Finance receivables held for sale
Assets measured at fair value on a non-recurring basis
Assets at fair value		$ 159

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Fair Value Measurements - Narrative (Details)	Dec. 31, 2017 USD ($)
Fair Value Measurements [Abstract]
Debt carried at fair value	$ 0

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Subsequent Events (Details) - USD ($)			3 Months Ended	12 Months Ended
	Jun. 25, 2018	Jan. 08, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 08, 2017
Subsequent Event [Line Items]
Net loss on repurchases and repayments of debt				$ (29,000,000)	$ (17,000,000)	$ 0
Senior debt | OMFH Notes 2019
Subsequent Event [Line Items]
Issue Amount							$ 700,000,000
Interest rates (as a percent)							6.75%
Subsequent Event | Senior debt | OMFH Notes 2019
Subsequent Event [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed		103.375%
Net loss on repurchases and repayments of debt			$ (1,000,000)
Subsequent Event | Apollo-Värde Group | OM Loans
Subsequent Event [Line Items]
Sale of stock, number of shares issued in transaction	54,937,500
Sale of stock, percentage of ownership after transaction	40.60%

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Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 853	$ 806	$ 772	$ 756	$ 766	$ 767	$ 739	$ 824	$ 3,187	$ 3,096	$ 1,910
Interest expense	204	207	203	202	201	215	214	226	816	856	715
Provision for finance receivable losses	229	242	233	243	256	261	218	194	947	929	711
Other revenues	139	149	117	135	138	151	158	307	540	754	275
Total other expenses	382	401	386	400	409	396	416	447	1,569	1,668	955
Income (loss) before income tax expense (benefit)	177	105	67	46	38	46	49	264	395	397	(196)
Income tax expense (benefit)	161	44	20	18	0	16	20	91	243	127	(122)
Net income (loss)	$ 16	$ 61	$ 47	$ 28	38	30	29	173	152	270	(74)
Net income attributable to non-controlling interests					0	0	0	28	0	28	127
Net income (loss) attributable to Springleaf Finance Corporation					$ 38	$ 30	$ 29	$ 145	$ 152	$ 242	$ (201)

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Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 958	$ 553	$ 893
Notes receivable from parent and affiliates	391	285
Restricted cash and restricted cash equivalents	498	568	676
Other assets	481	690
Total assets	19,645	18,340	21,396
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016)	15,050	13,959
Deferred and accrued taxes	46	11
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	410	340
Total liabilities	16,243	15,067
Shareholder’s equity	3,402	3,273	2,908	$ 1,977
Total liabilities and shareholder’s equity	19,645	18,340
SPRINGLEAF FINANCE CORPORATION
Assets
Cash and cash equivalents	148	96	178
Investment in subsidiaries	7,062	7,107
Notes receivable from parent and affiliates	2,334	1,992
Restricted cash and restricted cash equivalents	9	5	$ 3
Other assets	159	188
Total assets	9,712	9,388
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016)	4,824	4,162
Intercompany note payable	436	409
Deferred and accrued taxes	46	164
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016)	1,004	1,380
Total liabilities	6,310	6,115
Shareholder’s equity	3,402	3,273
Total liabilities and shareholder’s equity	$ 9,712	$ 9,388

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Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Statements of Operations and Comprehensive Loss
Interest income on notes receivable from parent									$ 23	$ 19	$ 15
Interest expense	$ 204	$ 207	$ 203	$ 202	$ 201	$ 215	$ 214	$ 226	816	856	715
Net interest income									2,371	2,240	1,195
Investment									73	86	50
Other revenues	139	149	117	135	138	151	158	307	540	754	275
Other expenses	382	401	386	400	409	396	416	447	1,569	1,668	955
Income tax expense (benefit)	161	44	20	18	0	16	20	91	243	127	(122)
Net income (loss)	$ 16	$ 61	$ 47	$ 28	$ 38	$ 30	$ 29	$ 173	152	270	(74)
Comprehensive income (loss)									164	297	(110)
SPRINGLEAF FINANCE CORPORATION
Condensed Statements of Operations and Comprehensive Loss
Interest income on notes receivable from parent									131	104	56
Interest expense									430	459	502
Net interest income									(299)	(355)	(446)
Investment									2	1	13
Other revenues									(26)	(14)	0
Other revenues									6	4	0
Total other revenues									(18)	(9)	13
Other expenses									41	9	1
Income (loss) before income tax expense (benefit)									(358)	(373)	(434)
Income tax expense (benefit)									(118)	(138)	(160)
Equity in undistributed net income (loss) from subsidiaries									392	477	73
Net income (loss)									152	242	(201)
Other comprehensive income (loss), net of tax									12	27	(36)
Comprehensive income (loss)									$ 164	$ 269	$ (237)

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- Condensed Statements of Cash Flows(Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 12, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Statements of Cash Flows
Net cash provided by operating activities		$ 1,647	$ 1,158	$ 764
Cash flows from investing activities
Proceeds from repayments of principal on intercompany note to parent		249	401	189
Special capital contribution		0	23	0
Net cash provided by (used for) investing activities		(2,280)	63	(2,254)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		5,427	6,660	3,028
Repayments of long-term debt		(4,447)	(8,320)	(1,960)
Proceeds from intercompany note payable		0	0
Repayments on intercompany note payable		0
Capital contributions from parent		0	10	1,100
Net cash provided by (used for) financing activities		968	(1,669)	2,092
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		335	(448)	602
Cash and cash equivalents at beginning of period		553	893
Cash and cash equivalents		958	553	893
Condensed Financial Information [Abstract]
Cash and cash equivalents		553	893	893	$ 958	$ 553	$ 893
Restricted cash and restricted cash equivalents					498	568	676
Total cash and cash equivalents and restricted cash and restricted cash equivalents					1,456	1,121	1,569	$ 967
SPRINGLEAF FINANCE CORPORATION
Condensed Statements of Cash Flows
Net cash provided by operating activities		(601)	557	173
Cash flows from investing activities
Cash advances on notes receivable with parent and affiliates		4,322	5,827	2,256
Proceeds from repayments of principal on intercompany note to parent		3,980	4,683	2,968
Distributions from subsidiaries		413	499	326
Special capital contribution		0	0	(3,393)
Sale of available-for-sale securities		0	10	2,306
Net cash provided by (used for) investing activities		71	(635)	(49)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of commissions		1,861	995	0
Repayments of long-term debt		(1,302)	(1,020)	(798)
Proceeds from intercompany note payable		27	24	392
Repayments on intercompany note payable		0	(1)	(7)
Net cash provided by (used for) financing activities		586	(2)	(413)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents		56	(80)	(289)
Cash and cash equivalents at beginning of period		96	178
Cash and cash equivalents		148	96	178
Condensed Financial Information [Abstract]
Cash and cash equivalents		96	178	178	148	96	178
Restricted cash and restricted cash equivalents					9	5	3
Total cash and cash equivalents and restricted cash and restricted cash equivalents					$ 157	$ 101	$ 181	$ 470
Supplemental non-cash activities
Noncash or Part Noncash Acquisition, Net Nonmonetary Assets Acquired (Liabilities Assumed)		$ 0	$ 0	$ 1,100
Springfield Financial Cash Services, Inc | Independence
Cash flows from investing activities
Cash advances on notes receivable with parent and affiliates	$ 3,400

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Schedule I - Condensed Financial Information of Registrant - Related Party Transactions (Details) - USD ($) $ in Millions		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2015
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	$ 391	$ 391	$ 285
Note payable to parent and affiliates	0	0	0
Income taxes receivable	13	13	20
Payables to parent and affiliates	189	189	39
Affiliated companies
Related Party Transaction [Line Items]
Income taxes receivable	140	140	187
SFI | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	391	391	285
OneMain General Services Corporation | Affiliated companies
Related Party Transaction [Line Items]
Payables to parent and affiliates	1,000	1,000	1,400
OneMain Demand Note | OneMain Financial Holdings, Inc.
Related Party Transaction [Line Items]
Revolving demand note, maximum commitment	1,600	$ 1,600
Notes Payable, Other Payables | Springleaf Acquisition Corporation | Affiliated companies
Related Party Transaction [Line Items]
Issue Amount				$ 374
Debt instrument, maximum amount outstanding during period	500
Debt instrument, basis spread on variable rate		0.25%
Note payable to parent and affiliates	436	$ 436	409
Interest expense, debt		27	24
SPRINGLEAF FINANCE CORPORATION
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	2,334	2,334	1,992
SPRINGLEAF FINANCE CORPORATION | SFI | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	390	390	285
SPRINGLEAF FINANCE CORPORATION | OneMain Financial Holdings, Inc. | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	1,214	1,214	530
SPRINGLEAF FINANCE CORPORATION | Springfield Financial Cash Services, Inc | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	539	539	950
SPRINGLEAF FINANCE CORPORATION | Securitizations | Affiliated companies
Related Party Transaction [Line Items]
Notes receivable from parent and affiliates	$ 191	$ 191	$ 227

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Schedule I - Condensed Financial Information of Registrant - Long-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 08, 2017	May 30, 2017	May 15, 2017	Dec. 31, 2016
Principal maturities of long-term debt
2018	$ 700
2019	696
2020	1,299
2021	1,446
2022	1,000
2023-2067	1,525
Total principal maturities	15,377
Carrying Value	15,050				$ 13,959
Senior debt
Principal maturities of long-term debt
Total principal maturities	1,500
Carrying Value	14,878				13,787
SPRINGLEAF FINANCE CORPORATION
Principal maturities of long-term debt
2018	0
2019	700
2020	1,300
2021	650
2022	1,000
2023-2067	1,525
Total principal maturities	5,175
Carrying Value	4,824				$ 4,162
SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt
Principal maturities of long-term debt
Carrying Value	1,600
Senior Notes 5.625% | Senior debt
Guarantee agreements
Interest rates (as a percent)		5.625%
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt
Total principal maturities	$ 875
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt
Guarantee agreements
Interest rates (as a percent)	5.625%
Senior Notes 6.125% | Senior debt
Guarantee agreements
Interest rates (as a percent)			6.125%	6.125%
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Principal maturities of long-term debt
Total principal maturities	$ 1,000
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt
Guarantee agreements
Interest rates (as a percent)	6.125%
Senior Notes 5.25 Percent Due 2019 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Guarantee agreements
Interest rates (as a percent)	5.25%
Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements
Guarantee agreements
Interest rates (as a percent)	8.25%