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Receivables Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables Held-for-sale [Abstract]  
Summary of Receivables Held for Sale
Receivables held for sale which are carried at the lower of amortized cost or fair value consisted of the following:
 
December 31, 2013
 
December 31, 2012
 
(in millions)
First lien real estate secured
$
2,047

 
$
3,022

Personal non-credit card
—

 
3,181

Total receivables held for sale
$
2,047

 
$
6,203
Summary of Activity in Receivables Held for Sale

The following table summarizes the activity in receivables held for sale during 2013 and 2012:
 
Real Estate Secured
 
Personal Non-Credit Card
 
Total
 
(in millions)
Year Ended December 31, 2013:
 
 
 
 
 
Receivables held for sale at beginning of period
$
3,022

 
$
3,181

 
$
6,203

Receivable sales:
 
 
 
 
 
First lien real estate secured
(3,127
)
 
—

 
(3,127
)
Personal non-credit card receivables
—

 
(2,947
)
 
(2,947
)
Lower of amortized cost or fair value adjustment on receivables held for sale
830

 
(82
)
 
748

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(711
)
 
—

 
(711
)
Change in receivable balance, including collections
(97
)
 
(152
)
 
(249
)
Transfer of first lien real estate secured into held for sale at the lower of amortized cost or fair value(1)
2,130

 
—

 
2,130

Receivables held for sale at end of period(2)
$
2,047

 
$
—

 
$
2,047

 
 
 
 
 
 
Year Ended December 31, 2012:
 
 
 
 
 
Receivables held for sale at beginning of period
$
—

 
$
—

 
$
—

Lower of amortized cost or fair value adjustment on receivables held for sale
(3
)
 
21

 
18

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(264
)
 
—

 
(264
)
Change in receivable balance, including collections
2

 
(309
)
 
(307
)
Transfer of receivables into held for sale at the lower of amortized cost or fair value(1)
3,287

 
3,469

 
6,756

Receivables held for sale at end of period(2)
$
3,022

 
$
3,181

 
$
6,203

 
(1) 
The lower of amortized cost or fair value adjustment on receivables transferred into held for sale during 2013 and 2012 totaled $212 million and $1,659 million, respectively, including the credit component recorded in the provision for credit losses for the personal non-credit card receivables transferred to held for sale during 2012.
(2) 
Net of a valuation allowance of $329 million and $1,452 million at December 31, 2013 and December 31, 2012, respectively. The following table provides a rollforward of our valuation allowance for 2013 and 2012:
Allowance for Credit Losses on Financing Receivables
The following table provides a rollforward of our valuation allowance for 2013 and 2012:
Year Ended December 31,
2013
 
2012
 
(in millions)
Balance at beginning of period
$
1,452

 
$
—

Initial valuation allowance for receivables transferred to held for sale during the period
212

 
1,529

Release of valuation allowance resulting from improvements in fair value
(748
)
 
—

Change in of valuation allowance for collections, loans sold, charged-off, transferred to REO or short sale
(587
)
 
(77
)
Balance at end of period
$
329

 
$
1,452
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment
The following table summarizes the components of the lower of amortized cost or fair value adjustment recorded in provision for credit losses and other revenues during 2013 and 2012:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
(Income)/Expense:
 
 
 
 
 
 
 
Year Ended December 31, 2013:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
212

 
$
—

 
$
—

 
$
212

Subsequent to initial transfer to held for sale(1)
(686
)
 
(40
)
 
(22
)
 
(748
)
Total recorded through other revenues
(474
)
 
(40
)
 
(22
)
 
(536
)
Lower of amortized cost or fair value adjustment
$
(474
)
 
$
(40
)
 
$
(22
)
 
$
(536
)
Year Ended December 31, 2012:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Provision for credit losses
$
112

 
$
—

 
$
—

 
$
112

Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
1,547

 
—

 
—

 
1,547

Subsequent to initial transfer to held for sale
52

 
(50
)
 
(20
)
 
(18
)
Total recorded through other revenues
1,599

 
(50
)
 
(20
)
 
1,529

Lower of amortized cost or fair value adjustment
$
1,711

 
$
(50
)
 
$
(20
)
 
$
1,641

 

(1) 
For 2013, the fair value of the lower of amortized cost or fair value adjustment reflects an increase in the relative fair value of $768 million related to real estate secured receivables held for sale and an additional charge of $82 million related to personal non-credit card receivables prior to the sale of this portfolio on April 1, 2013.