Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Carrying and Estimated Fair Value

The following table summarizes the carrying values and estimated fair value of our financial instruments at June 30, 2013 and December 31, 2012.

	June 30, 2013
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Cash	$	261	$	261	$	261	$	—	$	—
Interest bearing deposits with banks	434		434		—		434		—
Securities purchased under agreements to resell	5,342		5,342		—		5,342		—
Real estate secured receivables(1):
First lien	23,090		20,035		—		—		20,035
Second lien	2,843		1,504		—		—		1,504
Total real estate secured receivables	25,933		21,539		—		—		21,539
Receivables held for sale	4,991		4,991		—		—		4,991
Due from affiliates	20		20		—		20		—
Derivative financial assets	—		—		—		—		—
Financial liabilities:
Due to affiliates carried at fair value	478		478		—		478		—
Due to affiliates not carried at fair value	7,772		7,772		—		7,772		—
Long-term debt carried at fair value	9,495		9,495		—		9,495		—
Long-term debt not carried at fair value	15,783		16,122		—		13,667		2,455
Derivative financial liabilities	3		3		—		3		—

	December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Cash	$	197	$	197	$	197	$	—	$	—
Interest bearing deposits with banks	1,371		1,371		—		1,371		—
Securities purchased under agreements to resell	2,160		2,160		—		2,160		—
Securities	80		80		80		—		—
Real estate secured receivables(1):
First lien	26,218		19,586		—		—		19,586
Second lien	3,066		1,113		—		—		1,113
Total real estate secured receivables	29,284		20,699		—		—		20,699
Receivables held for sale	6,203		6,203		—		—		6,203
Due from affiliates	105		105		—		105		—
Derivative financial assets	—		—		—		—		—
Financial liabilities:
Due to affiliates carried at fair value	514		514		—		514		—
Due to affiliates not carried at fair value	8,575		8,654		—		8,654		—
Long-term debt carried at fair value	9,725		9,725		—		9,725		—
Long-term debt not carried at fair value	18,701		19,172		—		16,537		2,635
Derivative financial liabilities	22		22		—		22		—

⁽¹⁾  The carrying amount of consumer receivables presented in the table above reflects the amortized cost of the receivable, including any accrued interest, less credit loss reserves as well as any charge-offs recorded in accordance with our existing charge-off policies.

Assets and Liabilities Recorded at Fair Value ona Recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting(1)			Total of Assets (Liabilities) Measured at Fair Value
	(in millions)
June 30, 2013
Derivative financial assets:
Interest rate swaps	$	—	$	391		$	—	$	—		$	391
Currency swaps	—		741			—		—			741
Derivative netting	—		—			—		(1,132		)	(1,132		)
Total derivative financial assets	—		1,132			—		(1,132		)	—
Total assets	$	—	$	1,132		$	—	$	(1,132	)	$	—
Due to affiliates carried at fair value	$	—	$	(478	)	$	—	$	—		$	(478	)
Long-term debt carried at fair value	—		(9,495		)	—		—			(9,495		)
Derivative related liabilities:
Interest rate swaps	—		(466		)	—		—			(466		)
Currency swaps	—		(96		)	—		—			(96		)
Derivative netting	—		—			—		559			559
Total derivative related liabilities	—		(562		)	—		559			(3		)
Total liabilities	$	—	$	(10,535	)	$	—	$	559		$	(9,976	)
December 31, 2012
Derivative financial assets:
Interest rate swaps	$	—	$	524		$	—	$	—		$	524
Currency swaps	—		1,159			—		—			1,159
Derivative netting	—		—			—		(1,683		)	(1,683		)
Total derivative financial assets	—		1,683			—		(1,683		)	—
Available-for-sale securities:
Money market funds	80		—			—		—			80
Total available-for-sale securities	80		—			—		—			80
Total assets	$	80	$	1,683		$	—	$	(1,683	)	$	80
Due to affiliates carried at fair value	$	—	$	(514	)	$	—	$	—		$	(514	)
Long-term debt carried at fair value	—		(9,725		)	—		—			(9,725		)
Derivative related liabilities:
Interest rate swaps	—		(1,585		)	—		—			(1,585		)
Currency swaps	—		(45		)	—		—			(45		)
Derivative netting	—		—			—		1,608			1,608
Total derivative related liabilities	—		(1,630		)	—		1,608			(22		)
Total liabilities	$	—	$	(11,869	)	$	—	$	1,608		$	(10,261	)

⁽¹⁾  Represents counterparty and swap collateral netting which allow the offsetting of amounts relating to certain contracts when certain conditions are met.

Assets and Liabilities Recorded at Fair Value on Non-recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2013 and 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

	Non-Recurring Fair Value Measurements as of June 30, 2013								Total Gains (Losses) for the Three Months Ended June 30, 2013			Total Gains (Losses) for the Six Months Ended June 30, 2013
	Level 1		Level 2		Level 3		Total
	(in millions)
Receivables held for sale:
Real estate secured	$	—	$	—	$	4,991	$	4,991	$	372		$	908
Personal non-credit card	—		—		—		—		—			(82		)
Total receivables held for sale	—		—		4,991		4,991		372			826
Real estate owned(1)	—		333		—		333		(18		)	(35		)
Total assets at fair value on a non-recurring basis	$	—	$	333	$	4,991	$	5,324	$	354		$	791

	Non-Recurring Fair Value Measurements as of June 30, 2012								Total Gains (Losses) for the Three Months Ended June 30, 2012			Total Gains (Losses) for the Six Months Ended June 30, 2012
	Level 1		Level 2		Level 3		Total
	(in millions)
Receivables held for sale:
Real estate secured	$	—	$	—	$	3,287	$	3,287	$	(1,349	)	$	(1,349	)
Personal non-credit card	—		—		3,469		3,469		(310		)	(310		)
Total receivables held for sale	—		—		6,756		6,756		(1,659		)	(1,659		)
Real estate owned(1)	—		253		—		253		(27		)	(53		)
Total assets at fair value on a non-recurring basis	$	—	$	253	$	6,756	$	7,009	$	(1,686	)	$	(1,712	)

⁽¹⁾  Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value of the underlying asset unadjusted for transaction costs.

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents quantitative information about non-recurring fair value measurements of assets and liabilities classified as Level 3 in the fair value hierarchy as of June 30, 2013 and December 31, 2012:

	Fair Value						Range of Inputs
Financial Instrument Type	June 30, 2013		December 31, 2012		Valuation Technique	Significant Unobservable Inputs	June 30, 2013				December 31, 2012
	(in millions)
Receivables held for sale carried at fair value:
Real estate secured	$	4,991	$	3,022	Third party appraisal valuation based on	Collateral loss severity rates(1)	0	%	-	98%	0	%	-	92	%
					estimated loss severities, including collateral values, cash flows and	Expenses incurred through collateral disposition	5	%	-	10%	5	%	-	10	%
					market discount rate	Market discount rate	4	%	-	8%	10	%	-	15%
Personal non-credit card(2)	—		3,181		Third party valuation based on estimated loss rates, cash	Loss rate	—		-	—	13	%	-	19%
					flows and market discount rate	Market discount rate	—		-	—	10	%	-	15%

⁽¹⁾  The majority of the real estate secured receivables held for sale consider collateral value, among other items, in determining fair value. Collateral values are based on the most recently available broker's price opinion and the collateral loss severity rate averaged 31 percent and 37 percent at June 30, 2013 and December 31, 2012, respectively.

⁽²⁾  Our personal non-credit card portfolio held for sale was classified as Level 3 at December 31, 2012. This portfolio of receivables was sold on April 1, 2013 as previously discussed.