SANTANDER CONSUMER USA HOLDINGS INC., 10-K filed on 2/28/2018
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Feb. 15, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
Santander Consumer USA Holdings Inc. 
 
 
Entity Central Index Key
0001580608 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Amendment Flag
false 
 
 
Entity Public Float
 
 
$ 1.4 
Entity Common Stock, Shares Outstanding
 
360,608,237 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2017
Dec. 31, 2016
Assets
 
 
Cash and cash equivalents — $106,295 and $98,536 held at affiliates, respectively
$ 527,805,000 
$ 160,180,000 
Finance receivables held for sale, net
2,210,421,000 
2,123,415,000 
Finance receivables held for investment, net
22,427,769,000 
23,481,001,000 
Restricted cash
2,553,902,000 
2,757,299,000 
Accrued interest receivable
326,640,000 
373,274,000 
Leased vehicles, net
10,160,327,000 
8,564,628,000 
Furniture and equipment, net of accumulated depreciation of $55,525 and $47,365, respectively
69,609,000 
67,509,000 
Federal, state and other income taxes receivable
95,060,000 
87,352,000 
Related party taxes receivable
467,000 
1,087,000 
Goodwill
74,056,000 
74,056,000 
Intangible assets, net of amortization of $36,616 and $33,652, respectively
29,734,000 
32,623,000 
Due from affiliates
33,270,000 
31,270,000 
Other assets
913,244,000 
785,410,000 
Total assets
39,422,304,000 
38,539,104,000 
Liabilities:
 
 
Notes payable — credit facilities
4,848,316,000 
6,739,817,000 
Notes payable — secured structured financings
22,557,895,000 
21,608,889,000 
Notes payable — related party
3,754,223,000 
2,975,000,000 
Accrued interest payable
38,529,000 
33,346,000 
Accounts payable and accrued expenses
429,531,000 
379,021,000 
Deferred tax liabilities, net
897,121,000 
1,278,064,000 
Due to affiliates
82,382,000 
50,620,000 
Other liabilities
333,806,000 
235,728,000 
Total liabilities
32,941,803,000 
33,300,485,000 
Commitments and contingencies (Notes 6 and 11)
   
   
Equity:
 
 
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 360,779,465 and 359,002,145 shares issued and 360,527,463 and 358,907,550 shares outstanding, respectively
3,605,000 
3,589,000 
Additional paid-in capital
1,681,558,000 
1,657,611,000 
Accumulated other comprehensive income, net
44,262,000 
28,259,000 
Retained earnings
4,751,076,000 
3,549,160,000 
Total stockholders’ equity
6,480,501,000 
5,238,619,000 
Total liabilities and equity
39,422,304,000 
38,539,104,000 
Variable Interest Entities
 
 
Assets
 
 
Finance receivables held for sale, net
1,106,393,000 
1,012,277,000 
Finance receivables held for investment, net
21,715,365,000 
22,919,312,000 
Restricted cash
1,995,557,000 
2,087,177,000 
Leased vehicles, net
10,160,327,000 
8,564,628,000 
Other assets
733,123,000 
686,253,000 
Total assets
35,710,765,000 
35,269,647,000 
Liabilities:
 
 
Notes payable
28,467,942,000 
31,659,203,000 
Other liabilities
197,969,000 
91,234,000 
Total liabilities
$ 28,665,911,000 
$ 31,750,437,000 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Cash and cash equivalents held at affiliates
$ 106,295 
$ 98,536 
Restricted cash held for affiliates
2,529 
11,629 
Accumulated depreciation
55,525 
47,365 
Amortization
$ 36,616 
$ 33,652 
Common stock, par value (in usd per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
1,100,000,000 
1,100,000,000 
Common stock, shares issued
360,779,465 
359,002,145 
Common stock, shares outstanding
360,527,463 
358,907,550 
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Interest on finance receivables and loans
$ 4,755,678 
$ 5,026,790 
$ 5,031,829 
Leased vehicle income
1,788,457 
1,487,671 
1,037,793 
Other finance and interest income
19,885 
15,135 
18,162 
Total finance and other interest income
6,564,020 
6,529,596 
6,087,784 
Interest expense — Including $148,345, $119,277, and $162,353 to affiliates, respectively
947,734 
807,484 
628,791 
Leased vehicle expense
1,298,513 
995,459 
726,420 
Net finance and other interest income
4,317,773 
4,726,653 
4,732,573 
Provision for credit losses
2,254,361 
2,468,200 
2,785,871 
Net finance and other interest income after provision for credit losses
2,063,412 
2,258,453 
1,946,702 
Profit sharing
29,568 
47,816 
57,484 
Net finance and other interest income after provision for credit losses and profit sharing
2,033,844 
2,210,637 
1,889,218 
Investment gains (losses), net — Including $22,900, $346, and ($5,654) from affiliates, respectively
(366,439)
(444,759)
(95,214)
Servicing fee income — Including $24,529, $16,733, and $16,453 from affiliates, respectively
118,341 
156,134 
131,113 
Fees, commissions, and other — Including $900, $900, and $9,331 from affiliates, respectively
349,204 
382,171 
385,744 
Total other income
101,106 
93,546 
421,643 
Compensation expense
581,017 
498,224 
434,041 
Repossession expense
275,704 
293,355 
241,522 
Other operating costs — Including $5,253, $2,480, and $9,195 to affiliates, respectively
454,715 
351,893 
345,686 
Total operating expenses
1,311,436 
1,143,472 
1,021,249 
Income before income taxes
823,514 
1,160,711 
1,289,612 
Income tax expense (benefit)
(364,092)
394,245 
465,572 
Net income
1,187,606 
766,466 
824,040 
Net income
1,187,606 
766,466 
824,040 
Other comprehensive income (loss):
 
 
 
Change in unrealized gains (losses) on cash flow hedges, net of tax of $270, $15,647, and $872, respectively
16,003 
26,134 
(1,428)
Comprehensive income
$ 1,203,609 
$ 792,600 
$ 822,612 
Net income per common share (basic) (in usd per share)
$ 3.30 
$ 2.14 
$ 2.32 
Net income per common share (diluted) (in usd per share)
$ 3.30 
$ 2.13 
$ 2.31 
Dividends paid per common share (in usd per share)
$ 0.03 
$ 0 
$ 0 
Weighted average common shares (basic)
359,614,000 
358,281,000 
355,103,000 
Weighted average common shares (diluted)
360,292,330 
359,078,337 
356,163,000 
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Interest expense to affiliates
$ 147,034 
$ 119,277 
$ 162,353 
Investment gains (losses), net from affiliates
(22,900)
346 
(5,654)
Servicing fee income to affiliates
24,529 
16,733 
16,453 
Fees, commissions and other from affiliates
1,055 
900 
9,331 
Other operating costs to affiliates
4,458 
2,480 
9,195 
Change in unrealized gains (losses) on chase flow hedges, tax
$ 270 
$ 15,647 
$ 872 
CONSOLIDATED STATEMENTS OF EQUITY (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss), net
Retained Earnings
Beginning balance at Dec. 31, 2014
$ 3,526,216 
$ 3,490 
$ 1,560,519 
$ 3,553 
$ 1,958,654 
Beginning balance, shares at Dec. 31, 2014
 
348,978,000 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Stock issued in connection with employee incentive compensation plans, shares
 
8,985,000 
 
 
 
Stock issued in connection with employee incentive compensation plans
74,228 
89 
74,139 
 
 
Purchase of treasury stock, shares
 
(17,000)
 
 
 
Purchase of treasury stock
(267)
 
(267)
 
 
Stock-based compensation
10,686 
 
10,686 
 
 
Tax sharing with affiliate
(926)
 
(926)
 
 
Net income
824,040 
 
 
 
824,040 
Other comprehensive income (loss), net of taxes
(1,428)
 
 
(1,428)
 
Ending balance at Dec. 31, 2015
4,432,549 
3,579 
1,644,151 
2,125 
2,782,694 
Ending balance, shares at Dec. 31, 2015
 
357,946,000 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Cumulative-effect adjustment upon adoption of ASU 2016-09 (Note 1)
26,552 
 
1,439 
 
25,113 
Stock issued in connection with employee incentive compensation plans, shares
 
988,000 
 
 
 
Stock issued in connection with employee incentive compensation plans
5,707 
10 
5,697 
 
 
Purchase of treasury stock, shares
 
(26,000)
 
 
 
Purchase of treasury stock
(350)
 
(350)
 
 
Stock-based compensation
9,537 
 
9,537 
 
 
Tax sharing with affiliate
(1,424)
 
(1,424)
 
 
Net income
766,466 
 
 
 
766,466 
Other comprehensive income (loss), net of taxes
26,134 
 
 
26,134 
 
Ending balance at Dec. 31, 2016
5,238,619 
3,589 
1,657,611 
28,259 
3,549,160 
Ending balance, shares at Dec. 31, 2016
358,907,550 
358,908,000 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Stock issued in connection with employee incentive compensation plans, shares
 
1,776,000 
 
 
 
Stock issued in connection with employee incentive compensation plans
9,104 
18 
9,086 
 
 
Purchase of treasury stock, shares
 
(157,000)
 
 
 
Purchase of treasury stock
(3,770)
(2)
(3,768)
 
 
Stock-based compensation
18,494 
 
18,494 
 
 
Tax sharing with affiliate
(1,304)
 
(1,304)
 
 
Dividends paid
(10,803)
 
 
 
(10,803)
Net income
1,187,606 
 
 
 
1,187,606 
Other comprehensive income (loss), net of taxes
16,003 
 
 
16,003 
 
Ending balance at Dec. 31, 2017
$ 6,480,501 
$ 3,605 
$ 1,681,558 
$ 44,262 
$ 4,751,076 
Ending balance, shares at Dec. 31, 2017
360,527,463 
360,527,000 
 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:
 
 
 
Net income
$ 1,187,606 
$ 766,466 
$ 824,040 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Derivative mark to market
(8,723)
169 
(1,650)
Provision for credit losses
2,254,361 
2,468,200 
2,785,871 
Depreciation and amortization
1,403,653 
1,094,774 
821,782 
Accretion of discount
(246,038)
(355,961)
(362,573)
Originations and purchases of receivables held for sale
(3,624,718)
(4,019,155)
(5,472,995)
Proceeds from sales of and repayments on receivables originated as held for sale
3,099,258 
3,905,622 
4,662,778 
Change in revolving unsecured consumer loans
(329,167)
(317,506)
(107,947)
Investment losses, net
366,439 
444,759 
95,214 
Stock-based compensation
18,494 
9,537 
10,686 
Deferred tax expense (benefit)
(355,789)
379,753 
427,283 
Changes in assets and liabilities:
 
 
 
Accrued interest receivable
23,925 
5,358 
(93,089)
Accounts receivable
(16,196)
5,315 
(8,587)
Federal income tax and other taxes
(7,262)
175,075 
233,313 
Other assets
(88,537)
(55,765)
(20,628)
Accrued interest payable
2,767 
9,559 
4,204 
Other liabilities
50,700 
(58,944)
59,736 
Due to/from affiliates
35,832 
15,861 
52,268 
Net cash provided by operating activities
3,766,605 
4,473,117 
3,909,706 
Cash flows from investing activities:
 
 
 
Originations of and disbursements on finance receivables held for investment
(10,659,617)
(12,333,767)
(16,910,010)
Purchases of portfolios of finance receivables held for investment
(292,891)
(568,009)
0 
Collections on finance receivables held for investment
10,186,369 
10,295,849 
10,178,209 
Proceeds from sale of loans originated as held for investment
135,577 
823,877 
2,187,328 
Leased vehicles purchased
(6,007,775)
(5,596,639)
(5,149,481)
Manufacturer incentives received
888,532 
1,210,779 
979,183 
Proceeds from sale of leased vehicles
2,274,238 
1,548,186 
1,931,957 
Change in revolving personal loans
(18,761)
(93,194)
(438,785)
Purchases of furniture and equipment
(16,556)
(23,290)
(18,798)
Proceeds from sales of furniture and equipment
722 
1,844 
511 
Change in restricted cash
309,029 
(525,433)
(466,497)
Other investing activities
(7,179)
(8,017)
(8,829)
Net cash used in investing activities
(3,208,312)
(5,267,814)
(7,715,212)
Cash flows from financing activities:
 
 
 
Proceeds from notes payable related to secured structured financings — net of debt issuance costs
14,625,565 
13,756,342 
15,232,692 
Payments on notes payable related to secured structured financings
(13,700,149)
(12,941,849)
(11,113,459)
Proceeds from unsecured notes payable
7,065,000 
4,491,153 
6,150,000 
Payments on unsecured notes payable
(4,885,577)
(4,076,571)
(7,390,631)
Proceeds from notes payable
19,678,467 
25,256,469 
27,379,570 
Payments on notes payable
(22,978,275)
(25,557,686)
(26,554,425)
Proceeds from stock option exercises, gross
15,104 
8,126 
87,762 
Repurchase of stock - employee tax withholding
0 
0 
(267)
Dividends paid
(10,803)
0 
0 
Net cash provided by (used in) financing activities
(190,668)
935,984 
3,791,242 
Net increase (decrease) in cash and cash equivalents
367,625 
141,287 
(14,264)
Cash — Beginning of year
160,180 
18,893 
33,157 
Cash — End of year
$ 527,805 
$ 160,180 
$ 18,893 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices

Santander Consumer USA Holdings Inc., a Delaware corporation (together with its subsidiaries, SC or the Company), is the holding company for Santander Consumer USA Inc., an Illinois corporation (SC Illinois), and its subsidiaries, a specialized consumer finance company focused on vehicle finance and third-party servicing. The Company’s primary business is the indirect origination and securitization of retail installment contracts principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers.
In conjunction with a ten-year private label financing agreement (the Chrysler Agreement) with Fiat Chrysler Automobiles US LLC (FCA) that became effective May 1, 2013, the Company offers a full spectrum of auto financing products and services to FCA customers and dealers under the Chrysler Capital brand. These products and services include consumer retail installment contracts and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. Retail installment contracts and vehicle leases entered into with FCA customers, as part of the Chrysler Agreement, represent a significant concentration of those portfolios and there is a risk that the Chrysler Agreement could be terminated prior to its expiration date. Termination of the Chrysler Agreement could result in a decrease in the amount of new retail installment contracts and vehicle leases entered into with FCA customers.
The Company also originates vehicle loans through a web-based direct lending program, purchases vehicle retail installment contracts from other lenders, and services automobile and recreational and marine vehicle portfolios for other lenders. Additionally, the Company has other relationships through which it provides personal loans, private-label revolving lines and other consumer finance products.
As of December 31, 2017, the Company was owned approximately 68.1% by Santander Holdings USA, Inc. (SHUSA), a subsidiary of Banco Santander, S.A. (Santander) and approximately 31.9% by other shareholders.
Basis of Presentation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered variable interest entities (VIEs). The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements, and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, fair value, impairment, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time.
Business Segment Information
The Company has one reportable segment: Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles, and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations.
Accounting Policies

Finance Receivables
Finance receivables are comprised of retail installment contracts individually acquired, purchased receivables, receivables from dealer, personal loans, and capital lease receivables. Finance receivables are classified as either held for sale or held for investment, depending on the Company’s intent and ability to hold the underlying contract for the foreseeable future or until maturity or payoff. Most of the Company’s retail installment contracts held for investment are pledged under its warehouse facilities or securitization transactions.
Retail Installment Contracts
Retail installment contracts consist largely of nonprime automobile finance receivables, which are acquired individually from dealers at a nonrefundable discount from the contractual principal amount. Retail installment contracts also include receivables originated through a direct lending program and loan portfolios purchased from other lenders. Retail installment contracts acquired individually or originated directly are primarily classified as held for investment and carried at amortized cost, net of allowance for credit losses.
The Company has elected the fair value option for certain non-performing loans acquired through the exercise of a clean-up call. Accordingly, changes in the fair value of these finance receivables, which are based upon fair value estimates (Note 15), are reported in investment gains (losses), net, in the consolidated statements of income and comprehensive income.
Interest is accrued when earned in accordance with the terms of the retail installment contract. The accrual of interest is discontinued and reversed once a retail installment contract becomes more than 60 days past due, and is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. For loans on nonaccrual status, interest income is recognized on a cash basis, however the Company continues to assess the recognition of cash received on those loans in order to identify whether certain of those loans should also be placed on a cost recovery basis. For TDR loans on nonaccrual status, the accrual of interest is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. However, for TDR loans placed on cost recovery basis, the Company returns to accrual when a sustained period of repayment performance has been achieved (typically defined as six months), which were insignificant as of December 31, 2017.
Beginning January 1, 2017, based on observed TDR performance, the Company places certain additional TDRs on nonaccrual status when the Company believes repayment under the revised terms is not reasonably assured and at the latest, when the account becomes past due more than 60 days. The Company believes repayment under the revised terms is not reasonably assured for a retail installment contract that is already on nonaccrual (i.e., more than 60 days past due) and has received a modification or deferment that qualifies for a TDR event. In addition, any TDR that subsequently receives a third deferral is placed on nonaccrual status. Further, the Company has determined that certain of these loans should also be placed on a cost recovery basis.
The Company noted some deterioration in the performance of recent originations, particularly those loans originated in 2015, and addressed those trends with the introduction of more disciplined underwriting standards in late 2016. Based on this disciplined underwriting (among other things), the servicing practices for retail installment contracts originated after January 1, 2017 changed, such that there is an increase in the minimum payment requirements. Although these changes impact the measurement of customer delinquencies, the Company does not believe they have a significant impact on the amount or timing of the recognition of credit losses and allowance for loan losses. With respect to receivables originated by the Company through its “Chrysler Capital” channel, the required minimum payment is 90% of the scheduled payment. With respect to receivables originated by the Company or acquired by the Company from an unaffiliated third-party originator on or after January 1, 2017, the required minimum payment is 90% of the scheduled payment, whereas previous to January 1, 2017 the required minimum payment was 50% of the scheduled payment. The payment following the partial payment must be a full payment, or the account will move into delinquency status at that time. Payments generally are applied to interest first, then principal, then fees, regardless of a contract's accrual status.
The amortization of discounts, subvention payments from manufacturers, and other origination costs on retail installment contracts held for investment acquired individually, or through a direct lending program, are recognized as adjustments to the yield of the related contract using the effective interest method. The Company estimates future principal prepayments specific to pools of homogenous loans which are based on the vintage, credit quality at origination and term of the loan. Prepayments in our portfolio are sensitive to credit quality, with higher credit quality loans generally experiencing higher voluntary prepayment rates than lower credit quality loans. The impact of defaults is not considered in the prepayment rate; the prepayment rate only considers voluntary prepayments. The resulting prepayment rate specific to each pool is based on historical experience, and is used as an input in the calculation of the constant effective yield. Our estimated weighted average prepayment rates ranged from 6.1% to10.4% as of December 31, 2017, and 6.0% to 10.5% as of December 31, 2016.

Purchased Receivables Portfolios 
Receivables portfolios purchased from other lenders or pursuant to a repurchased obligation that are purchased at amounts less than the principal amount of those receivables, resulting in a discount to par, are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, if the discount was attributable, at least in part, to the expectation that not all contractual cash flows will be received from borrowers, which did not exist at the origination of the loans. The excess of the estimated undiscounted principal, interest, and other cash flows expected to be collected over the initial investment in the acquired loans, or accretable yield, is accreted to interest income over the expected life of the loans using the effective interest rate method.
The nonaccretable difference is the excess between the contractually required payments and the amount of cash flows, considering the impact of prepayments, expected to be collected. The nonaccretable difference is not accreted into income.
Any deterioration in the performance of the purchased portfolios results in an incremental impairment. Improvements in performance of the purchased pools that significantly increase actual or expected cash flows result in first a reversal of previously recorded impairment and then in a transfer of the excess from nonaccretable difference to accretable yield, which will be recorded as finance income over the remaining life of the receivables.
Personal Loans, Net
Personal loans, net, primarily consist of both revolving and amortizing term finance receivables acquired individually under terms of the Company’s agreements with certain third parties who originate and continue to service the loans. Personal loans also include private-label revolving lines of credit originated through the Company’s relationship with a point-of-sale lending technology company. Certain of the revolving receivables were acquired at a discount.
Interest is accrued when earned in accordance with the terms of the contract. The accrual of interest on amortizing term receivables is discontinued and reversed once a receivable becomes past due more than 60 days, and is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. The accrual of interest on revolving personal loans continues until the receivable becomes 180 days past due, at which point the principal amount and interest are charged off. The amortization of discounts is recognized on a straight-line basis over the estimated period over which the receivables held for investment, are expected to be outstanding.
Receivables from Dealers
Receivables from dealers include floorplan loans provided to dealerships to finance new and used vehicles for their inventory. Receivables from dealers also include real estate loans and working capital revolving lines of credit. Interest on these loans is accrued when earned in accordance with the agreement with the dealer.
Finance Receivables Held for Sale, Net
Finance receivables, which may include any of the receivables described above, that the Company does not have the intent and ability to hold for the foreseeable future or until maturity or payoff, including those previously designated as held for investment and subsequently identified for sale, are classified as held for sale, at origination or at the time a decision to sell is made. Finance receivables designated as held for sale are carried at the lower of cost or market, as determined on an aggregate basis. Cost, or recorded investment, includes deferred net origination fees and costs, premium or discounts, accrued interest, manufacturer subvention (if any) and any direct write-down of the investment. When loans are transferred from held for investment, if the recorded investment of a loan exceeds its market value at the time of initial designation as held for sale, the Company will recognize a direct write-down of the excess of the recorded investment over market as a charge-off against the credit loss allowance. Subsequent to the initial measurement of retail installment contracts and personal loans held for sale, market declines in the recorded investment, whether due to credit or market risk, are recorded through investment gains (losses), net of lower of cost or market adjustments.
Provision for Credit Losses
Provisions for credit losses are charged to operations in amounts sufficient to support the credit loss allowance in accordance with the Company's estimate. The Company estimates an allowance on individually acquired retail installment contracts and personal loans held for investment not classified as TDRs at a level considered adequate to cover expected net credit losses inherent in the recorded investment of that portfolio. Probable losses are estimated based on contractual delinquency status and historical loss experience, in addition to the Company’s judgment of estimates of the value of the underlying collateral, changes in the used vehicle value index, delinquency status, historical collection rates and other information in order to make the necessary judgments as to probable loan losses. For loans classified as TDRs, impairment is generally measured based on the present value of expected future cash flows discounted at the original effective interest rate. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. Provisions for credit losses are also charged to operations for impairment on TDRs.
Retail installment contracts acquired individually are charged off against the allowance in the month in which the account becomes greater than 120 days contractually delinquent if the Company has not repossessed the related vehicle. The Company charges off accounts in repossession when the automobile is repossessed and legally available for disposition. A net charge-off represents the difference between the estimated sales proceeds and the Company's recorded investment in the related contract. Costs to sell the vehicle are presented in repossession expense. Accounts in repossession that have been charged off and are pending liquidation are removed from retail installment contracts and the related repossessed automobiles are included in other assets in the Company’s consolidated balance sheets.
Term and revolving personal loans are charged off against the allowance in the month in which the accounts become 120 days and 180 days contractually delinquent, respectively.
In addition to maintaining a general allowance based on risk ratings, receivables from dealers are evaluated individually for impairment with allowances established for receivables determined to be individually impaired. Receivables from dealers are charged off against these allowances at the time that the credit is considered uncollectable and of such little value that it does not warrant consideration as an active asset.
Troubled Debt Restructurings
A modification of finance receivable terms is considered a troubled debt restructuring (TDR) if the Company grants a concession it would not otherwise have considered to a borrower for economic or legal reasons related to the debtor's financial difficulties. The Company considers TDRs to include all individually acquired retail installment contracts or personal revolving loans that have been modified at least once, deferred for a period of 90 days or more, or deferred at least twice. Additionally, restructurings through bankruptcy proceedings are deemed to be TDRs. The purchased receivables portfolio, operating and capital leases, and loans held for sale are excluded from the scope of the applicable guidance, and none of the Company's personal term loans or dealer loans have been modified or deferred.
For TDRs, impairment is generally measured based on the difference between the recorded investment of the loan and the present value of the expected future cash flows of the loan. The loan may also be measured for impairment based on the fair value of the underlying collateral less costs to sell for loans that are collateral dependent. TDRs are evaluated for impairment individually or in aggregate for those loans with similar risk characteristics.
Leased Vehicles, Net
Most vehicles for which the Company is the lessor are classified as operating leases, as they do not meet the accounting requirements to be classified as a capital lease. The net capitalized cost of each lease is recorded as an asset and depreciated on a straight-line basis over the contractual term of the lease to the expected residual value. The expected residual value and, accordingly, the monthly depreciation expense may change throughout the term of the lease. The Company estimates expected residual values using independent data sources and internal statistical models that take into consideration economic conditions, current auction results, the Company’s remarketing abilities, and manufacturer vehicle and marketing programs. Over the life of the lease, the Company evaluates the adequacy of the estimate of the residual value and may make adjustments to the depreciation rates to the extent the expected value of the vehicle at lease termination changes.
Lease payments due from customers are recorded as income until and unless a customer becomes more than 60 days delinquent, at which time the accrual of revenue is discontinued and reversed. The accrual is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. Subvention payments from the manufacturer, down payments from the customer, and initial direct costs incurred in connection with originating the lease are treated as a reduction to the cost basis of the underlying lease asset and are amortized on a straight-line basis over the contractual term of the lease. The amortization of manufacturer subvention payments is reflected as a reduction to depreciation expense over the life of the contract.
The Company periodically evaluates its investment in operating leases for impairment if circumstances, such as a systemic and material decline in used vehicle values, indicates that an impairment may exist. These circumstances could include, for example, shocks to oil and gas prices (which may have a pronounced impact on certain models of vehicles) or pervasive manufacturer defects (which may systemically affect the value of a particular vehicle brand or model). Impairment is determined to exist if fair value of the leased asset is less than carrying value and it is determined that the net carrying value is not recoverable. The net carrying value of a leased asset is not recoverable if it exceeds the sum of the undiscounted expected future cash flows expected to result from the lease payments and the estimated residual value upon eventual disposition. If our operating lease assets are considered to be impaired, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value as estimated by discounted cash flows. No impairment was recognized in 2017, 2016, or 2015.
Capital Lease Receivables, net
Leases classified as capital leases are accounted for as direct financing leases. Minimum lease payments plus the estimated residual value of the leased vehicle are recorded as the gross investment. The difference between the gross investment and the cost of the leased vehicle is recorded as unearned income. Direct financing leases are reported at the aggregate of gross investments, net of unearned income and allowance for lease losses. Income for direct financing leases is recognized using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease.
Fees, commissions, and other
Fees, commissions, and other primarily include late fees, miscellaneous, and other income, and are generally recorded when there is no doubt as to the collectability of the related receivable.
Repossessed Vehicles and Repossession Expense
Repossessed vehicles represent vehicles the Company has repossessed due to the borrowers’ default on the payment terms of the retail installment contracts, loans or leases. The Company generally begins repossession activity once a customer has reached 60 days past due. The customer has an opportunity to redeem the repossessed vehicle by paying all outstanding balances, including finance charges and fees. Any vehicles not redeemed are sold at auction. The Company records the vehicles currently in its inventory at the lower of cost or estimated fair value, net of estimated costs to sell (See Notes 9 and 15).
Repossession expense includes the costs to repossess and sell vehicles obtained due to borrower default. These costs include transportation, storage, rekeying, condition reports, legal fees, the fees paid to repossession agents and auction fees.
Sales of Finance Receivables and Leases 
The Company transfers retail installment contracts into newly formed Trusts, which then issue one or more classes of notes payable backed by the retail installment contracts.
The Company’s continuing involvement with the credit facilities and Trusts are in the form of servicing loans held by the special purpose entities (SPEs) and, generally, through holding a residual interest in the SPE. These transactions are structured without recourse. The Trusts are considered VIEs under U.S. GAAP and are consolidated when the Company has: (a) power over the significant activities of the entity and (b) an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE.
The Company has power over the significant activities of those Trusts as servicer of the financial assets held in the Trust. Servicing fees are not considered significant variable interests in the Trusts; however, when the Company also retains a residual interest in the Trust, either in the form of a debt security or equity interest, the Company has an obligation to absorb losses or the right to receive benefits that are potentially significant to the SPE. Accordingly, these Trusts are consolidated within the consolidated financial statements, and the associated retail installment contracts, borrowings under credit facilities and securitization notes payable remain on the consolidated balance sheets. Securitizations involving Trusts in which the Company does not retain a residual interest or any other debt or equity interests are treated as sales of the associated retail installment contracts.
While these Trusts are included in the consolidated financial statements, these Trusts are separate legal entities; thus, the finance receivables and other assets sold to these Trusts are legally owned by these Trusts, are available only to satisfy the notes payable related to the securitized retail installment contracts, and are not available to the Company's creditors or other subsidiaries.
The Company also sells retail installment contracts and leases to VIEs or directly to third parties, which the Company may determine meet sale accounting treatment in accordance with the applicable guidance. Due to the nature, purpose, and activity of these transactions, the Company either does not hold potentially significant variable interests or is not the primary beneficiary as a result of the Company's limited further involvement with the financial assets. The transferred financial assets are removed from the Company's consolidated balance sheets at the time the sale is completed. The Company generally remains the servicer of the financial assets and receives servicing fees. The Company also recognizes a gain or loss for the difference between the fair value, as measured based on sales proceeds plus (or minus) the value of any servicing asset (or liability) retained and carrying value of the assets sold.
Cash and Cash Equivalents 
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has maintained balances in various operating and money market accounts in excess of federally insured limits.
Restricted Cash
Cash deposited to support securitization transactions, lockbox collections, and the related required reserve accounts is recorded in the Company’s consolidated balance sheet as restricted cash. Excess cash flows generated by the securitization trusts are added to the restricted cash reserve account, creating additional over-collateralization until the contractual securitization requirement has been reached. Once the targeted reserve requirement is satisfied, additional excess cash flows generated by the Trusts are released to the Company as distributions from the Trusts. Lockbox collections are added to restricted cash and released when transferred to the appropriate warehouse facility or Trust.
The Company has several limited guarantees with Santander that provide explicit performance guarantees on certain servicer obligations related to the Company’s warehouse facilities and certain securitizations. As a result of those guarantees, the Company was permitted to commingle funds received on contracts that have been included in the securitizations and certain warehouse facilities, and retain and remit cash to the respective collection accounts once a month prior to the distribution dates.
Income Taxes
Income tax expense consists of income taxes currently payable and deferred income taxes computed using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. The deferred tax asset is subject to reduction by a valuation allowance in certain circumstances. This valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be realized based on a review of available evidence. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
The Company records the benefit of uncertain tax positions in the consolidated financial statements when such positions (1) meet a more-likely-than-not threshold, (2) are settled through negotiation or litigation, or (3) the statute of limitations for the taxing authority to examine the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more-likely-than-not recognition threshold is no longer satisfied.
Furniture and Equipment 
Furniture and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the improvements. Depreciation and amortization on furniture and equipment for the years ended December 31, 2017, 2016, and 2015 totaled $17,682, $16,357, and $16,111, respectively. Expenditures for major renewals and betterments are capitalized. Repairs and maintenance expenditures are charged to operations as incurred.
Goodwill and Intangibles
Goodwill represents the excess of consideration paid over fair value of net assets acquired in business combinations. Intangibles represent intangible assets purchased or acquired through business combinations, including trade names and software development costs. Intangibles are amortized over their estimated useful lives. The Company tests goodwill for impairment annually in accordance with the provisions of ASC 350, Intangibles-Goodwill and Other.
Derivative Financial Instruments
Derivative financial instruments are recognized as either assets or liabilities in the consolidated balance sheets at fair value. The accounting for changes in the fair value of each derivative financial instrument depends on whether it has been designated and qualifies as a hedge for accounting purposes, as well as the type of hedging relationship identified. The Company does not use derivative instruments for trading or speculative purposes.
Interest Rate Swap Agreements — The Company uses interest rate swaps to hedge the variability of cash flows on securities issued by securitization Trusts and borrowings under the Company’s warehouse facilities. Certain interest rate swap agreements are designated and qualify as cash flow hedges, and are highly effective in reducing exposure to interest rate risk from both an accounting and an economic perspective.
At hedge inception and at least quarterly, the interest rate swap agreements designated as accounting hedges are assessed to determine their effectiveness in offsetting changes in the cash flows of the hedged items and whether those interest rate swap agreements may be expected to remain highly effective in future periods.
The Company uses the hypothetical derivative method to assess hedge effectiveness of cash flow hedges on a prospective and retrospective basis. At December 31, 2017, all of the Company’s interest rate swap agreements designated as cash flow hedges are deemed to be effective hedges for accounting purposes. The Company uses the hypothetical derivative method to measure the amount of ineffectiveness and a net earnings impact occurs when the cumulative change in the value of a derivative, as adjusted, differs from the cumulative change in value of the perfect hypothetical derivative. The excess change in value (the ineffectiveness) is recognized in interest expense on the consolidated statements of income and comprehensive income.
The effective portion of the changes in the fair value of the interest rate swaps qualifying as cash flow hedges is included as a component of other comprehensive loss, net of estimated income taxes, as an unrealized gain or loss on cash flow hedges. These unrealized gains or losses are recognized as adjustments to income over the same period in which cash flows from the related hedged item affect earnings. The Company discontinues hedge accounting prospectively when it is determined that an interest rate swap agreement has ceased to be effective as an accounting hedge or if the underlying hedged cash flow is no longer probable of occurring.
The Company has also entered into interest rate swap agreements related to its securitization trusts and warehouse facilities that are not designated as hedges. These agreements are intended to reduce the risk of interest rate fluctuations. For the interest rate swap agreements not designated as hedges, any gains or losses are included in the Company’s earnings as a component of operating expense.
Interest Rate Cap Agreements — The Company purchases interest rate cap agreements to limit floating rate exposures on securities issued in credit facilities. As part of the interest rate risk management strategy, and when economically feasible, the Company may simultaneously sell a corresponding written option to offset the premium paid to purchase the interest rate cap agreement and thus retain the interest rate risk. Because these instruments entered into directly by the Company or through SPEs are not designated for hedge accounting, changes in the fair value of interest rate cap agreements purchased by the SPEs and written option sold by the Company are recorded in operating expenses on the consolidated statements of income and comprehensive income.
Warrants — The Company is the holder of a warrant that gives it the right, if certain vesting conditions are satisfied, to purchase additional shares in a company in which it has a cost method investment. This warrant would allow the Company to increase its ownership to approximately 22% in the investee company.
Stock-Based Compensation
The Company measures the compensation cost of stock-based awards using the estimated fair value of those awards on the grant date, and recognizes the cost as expense over the vesting period of the awards (see Note 16).
Earnings per Share
Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised. It is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock grants. Because the Company has issued participating securities in the form of unvested restricted stock that has dividend rights, the Company applies the two-class method when computing earnings per share.
Recently Adopted Accounting Standards
The Company adopted the following Financial Accounting Standards Board (FASB) Accounting Standards Updates (ASUs):
•
ASU 2016-09, Compensation - Stock Compensation (Topic 718). This new guidance simplifies certain aspects related to income taxes, the Statement of Cash Flows (SCF), and forfeitures when accounting for share-based payment transactions. ASU 2016-09 eliminates the requirement to recognize excess tax benefits in APIC pools, and instead requires companies to record all excess tax benefits and deficiencies at settlement, vesting or expiration in the income statement as provision for income taxes. At adoption of ASU 2016-09 on January 1, 2017, the cumulative-effect for previously unrecognized excess tax benefits totaled $26,552 net of tax, and was recognized, as an increase, through an adjustment in beginning retained earnings. The Company recorded excess tax deficiency, net of tax of $796 in the provision for income taxes rather than as a decrease to additional paid-in capital for the year ended December 31, 2017, on a prospective basis. All excess tax benefits along with other income tax cash flows are now being classified as operating activities rather than financing activities in the SCF on a prospective basis.
In addition, the Company changed its accounting policy on forfeitures from previously recognizing forfeitures based on estimating the number of awards expected to be forfeited to electing to recognize forfeiture of awards as they occur to simplify the accounting for forfeitures. This resulted in a cumulative adjustment, as a decrease to, beginning retained earnings of $1,439.
•
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The guidance provides that a goodwill impairment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The same one-step impairment test will be applied to goodwill at all reporting units. The Company early adopted this ASU as of October 1, 2017. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows.
The adoption of the following ASUs did not have material impact on the Company's financial position, results of operations or cash flows.
•
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.
•
ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments.
•
ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323).
•
ASU 2016-17, Consolidation (Topic 810), Interest Held Through Related Parties That Are Under Common Control.
Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU, as amended, requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 606. The amended standard is effective for the Company for the annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. It should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption.

Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), this ASU will not have a material impact on the elements of its Consolidated Statements of Income most closely associated with leases and financial instruments (such as interest income, interest expense and investment gain and losses) as well as other revenue streams that are not material in nature. The Company will adopt this ASU in the first quarter of 2018 using a modified retrospective approach with a cumulative-effect adjustment to opening retained earnings. The Company does not anticipate having any adjustments to the opening retained earnings as of January 1, 2018. The Company is also in the process of developing additional quantitative and qualitative disclosures that are required for 2018 SEC filings.

In February 2016, the FASB issued ASU 2016-02, Leases, which will, among other impacts, change the criteria under which leases are identified and accounted for as on- or off-balance sheet. The guidance will be effective for the fiscal year beginning after December 15, 2018, including interim periods within that year. Once effective, the new guidance must be applied for all periods presented. The Company is in the process of reviewing its existing property and equipment lease contracts as well as service contracts that may include embedded lease. Upon adoption, the Company will gross up its balance sheet by the present value of future minimum lease payments for these operating leases. The Company does not intend to early adopt this ASU.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in material changes to the Company’s credit and capital reserves.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash     (A consensus of the FASB Emerging Issues Task Force), which requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown on the statement of cash flows and that the statement of cash flows explain changes in restricted cash during the period. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, however, adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments will not impact financial results, but will result in a change in the presentation of restricted cash and restricted cash equivalents within the statement of cash flows. The Company currently plans to adopt these amendments on January 1, 2018, and expect to use the retrospective approach as required.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The new guidance amends the hedge accounting model to enable entities to more accurately reflect their risk management activities in the financial statements. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line in which the earnings effect of the hedged item is reported. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to early adopt this standard in 2018 and does not expect to have a material impact on opening balance of retained earnings for cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The Company has $6,100 stranded income tax benefits as of December 31, 2017. The Company has decided to not early adopt this ASU in 2017.

In addition to those described in detail above, the Company is also in the process of evaluating the following ASUs and does not expect them to have a material impact on the Company's business, financial position, results of operations or disclosures:
•
ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
•
ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.
•
ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory.
•
ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.
•
ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
•
ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force)
•
ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
•
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
•
ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting.
•
ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.
Finance Receivables
Finance Receivables
Finance Receivables
Held For Investment
Finance receivables held for investment, net is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Retail installment contracts acquired individually (a)
$
22,362,509

 
$
23,219,724

Purchased receivables
27,839

 
158,264

Receivables from dealers
15,623

 
68,707

Personal loans
4,459

 
12,272

Capital lease receivables (Note 3)
17,339

 
22,034

Finance receivables held for investment, net

$
22,427,769

 
$
23,481,001


(a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of December 31, 2017 and December 31, 2016, $22,124 and $24,495 of loans were recorded at fair value (Note 15).

The Company's held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
Retail Installment Contracts Acquired Individually
 
Receivables from
Dealers
 
Personal Loans
 
Non- TDR
 
TDR
 
 
Unpaid principal balance
$
19,681,394

 
$
6,261,894

 
$
15,787

 
$
6,887

Credit loss allowance - specific
—

 
(1,731,320
)
 
—

 
(2,565
)
Credit loss allowance - collective
(1,529,815
)
 
—

 
(164
)
 
—

Discount
(309,191
)
 
(74,832
)
 
—

 
(1
)
Capitalized origination costs and fees
58,638

 
5,741

6

—

 
138

Net carrying balance
$
17,901,026

 
$
4,461,483

 
$
15,623

 
$
4,459

 
 
December 31, 2016
 
Retail Installment Contracts Acquired Individually
 
Receivables from
Dealers
 
Personal Loans (a)
 
Non-TDR
 
TDR
 
 
Unpaid principal balance
$
21,528,406

 
$
5,599,567

 
$
69,431

 
$
19,361

Credit loss allowance - specific
—

 
(1,611,295
)
 
—

 
—

Credit loss allowance - collective
(1,799,760
)
 
—

 
(724
)
 
—

Discount
(467,757
)
 
(91,359
)
 
—

 
(7,721
)
Capitalized origination costs and fees
56,704

 
5,218

 
—

 
632

Net carrying balance
$
19,317,593

 
$
3,902,131

 
$
68,707

 
$
12,272


(a) As of December 31, 2016, there were lower of cost or market adjustments of $7,521 included in the discount on personal loans.



Retail installment contracts
Retail installment contracts are collateralized by vehicle titles, and the Company has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. Most of the Company’s retail installment contracts held for investment are pledged against warehouse facilities or securitization bonds (Note 6). Most of the borrowers on the Company’s retail installment contracts are retail consumers; however, $641,003 and $848,918 of the unpaid principal balance represented fleet contracts with commercial borrowers as of December 31, 2017 and 2016, respectively.
During the years ended December 31, 2017 and 2016, the Company originated $6,713,239 and $8,050,653, respectively, in Chrysler Capital loans which represented 47% and 49%, respectively, of the Company's total retail installment contract originations. Additionally, during the years ended December 31, 2017 and 2016, the Company originated $5,987,648 and $5,584,149, respectively, in Chrysler Capital leases. As of December 31, 2017 and 2016, the Company's auto retail installment contract portfolio consisted of $8,234,653 and $7,365,444, respectively, of Chrysler loans which represents 37% and 32%, respectively, of the Company's auto retail installment contract portfolio. Retail installment contracts and vehicle leases entered into with FCA customers, as part of the Chrysler Agreement, represent a significant concentration of those portfolios and there is a risk that the Chrysler Agreement could be terminated prior to its expiration date. Termination of the Chrysler Agreement could result in a decrease in the amount of new retail installment contracts and vehicle leases entered into with FCA customers.
As of December 31, 2017, borrowers on the Company’s retail installment contracts held for investment are located in Texas (16%), Florida (12%), California (9%), Georgia (6%) and other states each individually representing less than 5% of the Company’s total.
Purchased receivables

Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Outstanding balance
$
43,474

 
$
231,360

Outstanding recorded investment, net of impairment
28,069

 
159,451


During the year ended December 31, 2017, the Company sold receivables previously acquired with deteriorated credit quality to SBNA (Note 12). Carrying value of the receivables at the date of sale was $99,301. No such sales occurred during the years ended December 31, 2016 and 2015.

Changes in accretable yield on the Company’s purchased receivables portfolios for the periods indicated is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Balance — beginning of year
$
107,041

 
$
178,582

 
$
268,927

Accretion of accretable yield
(30,129
)
 
(69,701
)
 
(91,157
)
Disposals/transfers
(62,183
)
 
—

 
—

Reclassifications from (to) nonaccretable difference (a)
4,735

 
(1,840
)
 
812

Balance — end of year
$
19,464

 
$
107,041

 
$
178,582


(a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows.
During the years ended December 31, 2017, 2016, and 2015, the Company did not acquire any vehicle loan portfolios for which it was probable at acquisition that not all contractually required payments would be collected. However, during the years ended December 31, 2017, 2016, and 2015, and the Company recognized certain retail installment loans with an unpaid principal balance of $290,613 and $466,050, and $95,596, respectively, which were previously held by non-consolidated securitization Trusts, under optional clean-up calls (Note 7). Following the initial recognition of these loans at fair value, the performing loans in the portfolio will be carried at amortized cost, net of allowance for credit losses. The Company elected the fair value option for all non-performing loans acquired (more than 60 days delinquent as of the re-recognition date), for which it was probable that not all contractually required payments would be collected (Note 15).
Receivable from Dealers
The receivables from dealers held for investment all arose from the Chrysler Agreement. As of December 31, 2017, borrowers on these dealer receivables are located in Virginia (62%), New York (27%), Missouri (10%) and Wisconsin (1.0%). The Company previously held a term loan with a third-party vehicle dealer and lender that operates in multiple states. The loan allowed committed borrowings of $50,000 at December 31, 2016. During the year ended December 31, 2017, the unpaid principal balance of the facility of $50,000 along with accrued interest was repaid.

Personal Loans

At September 30, 2016, the Company determined that its intent to sell certain personal revolving loans had changed and now expects to hold these loans through their maturity. The Company recorded a lower of cost or market adjustment through investment gains (losses), net, immediately prior to transferring the loans to finance receivables held for investment at their new recorded investment. The carrying value of these loans was $4,459 and $11,733 at December 31, 2017 and 2016, respectively.

Held For Sale
The carrying value of the Company's finance receivables held for sale was comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Retail installment contracts acquired individually
$
1,148,332

 
$
1,045,815

Personal loans
1,062,089

 
1,077,600

Total assets held for sale
$
2,210,421

 
$
2,123,415


Sales of retail installment contracts to third parties and proceeds from sales of charged-off assets for the years ended December 31, 2017, 2016, and 2015 were as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Sales of retail installment contracts to third parties
$
260,568

 
$
3,694,019

 
$
7,862,520

Proceeds from sales of charged-off assets
93,619

 
64,847

 
122,436



The Company retains servicing of retail installment contracts sold to third parties. Total contracts sold to unrelated third parties and serviced as of December 31, 2017 and 2016 were as follows:
 
December 31, 2017
 
December 31, 2016
Serviced balance of retail installment contracts and leases sold to third parties
$
5,771,085

 
$
10,116,788

Leases
Leases
Leases

The Company has both operating and capital leases, which are separately accounted for and recorded on the Company's consolidated balance sheets. Operating leases are reported as leased vehicles, net, while capital leases are included in finance receivables held for investment, net.
Operating Leases
Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of December 31, 2017 and 2016:
 
December 31,
2017
 
December 31,
2016
Leased vehicles
$
14,285,769

 
$
11,939,295

Less: accumulated depreciation
(3,110,167
)
 
(2,326,342
)
Depreciated net capitalized cost
11,175,602

 
9,612,953

Manufacturer subvention payments, net of accretion
(1,042,477
)
 
(1,066,531
)
Origination fees and other costs
27,202

 
18,206

Net book value
$
10,160,327

 
$
8,564,628


Historically, the Company executed bulk sales of Chrysler Capital leases to a third party. The Company has retained servicing on the sold leases. During the years ended December 31, 2016 and 2017, the Company did not execute any bulk sales of leases originated under the Chrysler Capital program.

The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of December 31, 2017:
2018
$
1,650,271

2019
1,034,470

2020
374,598

2021
12,317

Thereafter
—

Total
$
3,071,656

Capital Leases
Certain leases originated by the Company are accounted for as capital leases, as the contractual residual values are nominal amounts. Capital lease receivables, net consisted of the following as of December 31, 2017 and 2016:
 
December 31,
2017
 
December 31,
2016
Gross investment in capital leases
$
27,234

 
$
39,417

Origination fees and other
124

 
150

Less unearned income
(4,377
)
 
(7,545
)
   Net investment in capital leases before allowance
22,981

 
32,022

Less: allowance for lease losses
(5,642
)
 
(9,988
)
   Net investment in capital leases
$
17,339

 
$
22,034



The following summarizes the future minimum lease payments due to the Company as lessor under capital leases as of December 31, 2017:
2018
$
11,050

2019
6,809

2020
4,417

2021
2,960

Thereafter
1,998

Total
$
27,234

Credit Loss Allowance and Credit Quality
Credit Loss Allowance and Credit Quality
Credit Loss Allowance and Credit Quality

Credit Loss Allowance
The Company estimates the allowance for credit losses on individually acquired retail installment contracts and personal loans held for investment not classified as TDRs based on delinquency status, historical loss experience, estimated values of underlying collateral, when applicable, and various economic factors. In developing the allowance, the Company utilizes a loss emergence period assumption, a loss given default assumption applied to recorded investment, and a probability of default assumption based on a loss forecasting model. The loss emergence period assumption represents the average length of time between when a loss event is first estimated to have occurred and when the account is charged off. The recorded investment represents unpaid principal balance adjusted for unaccreted net discounts, subvention from manufacturers, and origination costs. Under this approach, the resulting allowance represents the expected net losses of recorded investment inherent in the portfolio.
The Company uses a transition based Markov model for estimating the allowance for credit losses on individually acquired retail installment contracts. This model utilizes the recently observed loan transition rates from various loan statuses to forecast future losses.
For loans classified as TDRs, impairment is generally measured based on the present value of expected future cash flows discounted at the original effective interest rate. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. The amount of the allowance is equal to the difference between the loan’s impaired value and the recorded investment.
The Company maintains a general credit loss allowance for receivables from dealers based on risk ratings, and individually evaluates loans for specific impairment as necessary. As of December 31, 2017 and 2016, the credit loss allowance for receivables from dealers is comprised entirely of general allowances as none of these receivables have been determined to be individually impaired.
The activity in the credit loss allowance for individually acquired loans for the years ended December 31, 2017, 2016, and 2015 were as follows:
 
Year Ended December 31, 2017
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
 
Personal Loans
Balance — beginning of year
$
3,411,055

 
$
724

 
$
—

Provision for credit losses
2,244,182

 
(560
)
 
10,691

Charge-offs (a)
(4,796,216
)
 
—

 
(8,945
)
Recoveries
2,402,114

 
—

 
819

Balance — end of year
$
3,261,135

 
$
164

 
$
2,565

(a) For the year ended December 31, 2017, charge-offs for retail installment contracts acquired individually includes approximately $75 million for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. No such charge-offs were recorded for the years ended December 31, 2016 and December 31, 2015.
 
Year Ended December 31, 2016
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
Balance — beginning of year
$
3,197,414

 
$
916

Provision for credit losses
2,471,490

 
201

Charge-offs
(4,723,649
)
 
(393
)
Recoveries
2,465,800

 
—

Balance — end of year
$
3,411,055

 
$
724


 
Year Ended December 31, 2015
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
 
Personal Loans
Balance — beginning of year
$
2,586,685

 
$
674

 
$
348,660

Provision for credit losses
2,433,617

 
242

 
324,634

Charge-offs (a)
(3,897,480
)
 
—

 
(695,918
)
Recoveries
2,101,709

 
—

 
22,624

Impact of loans transferred to held for sale
(27,117
)
 
—

 
—

Balance — end of year
$
3,197,414

 
$
916

 
$
—


(a) Charge-offs of retail installment contracts acquired individually and personal loans include lower of cost or market adjustments of $73,388 and $377,598, respectively, which were charged off against the credit loss allowance.

The Company estimates lease losses on the capital lease receivable portfolio based on delinquency status and loss experience to date, as well as various economic factors. The activity in the lease loss allowance for capital leases for the years ended December 31, 2017, 2016, and 2015 was as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Balance — beginning of year
$
9,988

 
$
19,878

 
$
9,589

Provision for credit losses
48

 
(506
)
 
41,196

Charge-offs
(11,069
)
 
(33,476
)
 
(64,209
)
Recoveries
6,675

 
24,092

 
33,302

Balance — end of year
$
5,642

 
$
9,988

 
$
19,878


There was no impairment activity noted for purchased receivable portfolio for the years ended December 31, 2017 and December 31, 2016.
Delinquencies
Retail installment contracts and personal amortizing term loans are classified as non-performing (or nonaccrual) when they are greater than 60 days past due as to contractual principal or interest payments. See discussion of TDR under the "Troubled Debt Restructurings" section below. Dealer receivables are classified as non-performing when they are greater than 90 days past due. At the time a loan is placed in non-performing (nonaccrual) status, previously accrued and uncollected interest is reversed against interest income. If an account is returned to a performing (accrual) status, the Company returns to accruing interest on the contract.
The Company considers an account delinquent when an obligor fails to pay the required minimum portion of the scheduled payment by the due date. With respect to receivables originated by the Company through its “Chrysler Capital” channel, the required minimum payment is 90% of the scheduled payment. With respect to receivables originated by the Company or acquired by the Company from an unaffiliated third-party originator on or after January 1, 2017, the required minimum payment is 90% of the scheduled payment, whereas previous to January 1, 2017 the required minimum payment was 50% of the scheduled payment. In each case, the period of delinquency is based on the number of days payments are contractually past due.
The accrual of interest on revolving personal loans continues until the loan is charged off. The unpaid principal balance on revolving personal loans 90 days past due and still accruing totaled $130,034 and $129,974 as of December 31, 2017 and 2016, respectively.
A summary of delinquencies as of December 31, 2017 and 2016 is as follows:
 
December 31, 2017
 
Retail Installment Contracts Held for Investment
 
Loans
Acquired
Individually
 
Purchased
Receivables
Portfolios
 
Total
Principal, 30-59 days past due
$
2,822,686

 
$
4,992

 
$
2,827,678

Delinquent principal over 59 days (a)
1,541,728

 
2,855

 
1,544,583

Total delinquent principal
$
4,364,414

 
$
7,847

 
$
4,372,261

 
December 31, 2016
 
Retail Installment Contracts Held for Investment
 
Loans
Acquired
Individually
 
Purchased
Receivables
Portfolios
 
Total
Principal, 30-59 days past due
$
2,911,800

 
$
13,703

 
$
2,925,503

Delinquent principal over 59 days (a)
1,520,105

 
6,638

 
1,526,743

Total delinquent principal
$
4,431,905

 
$
20,341

 
$
4,452,246

(a) Interest is accrued until 60 days past due in accordance with the Company's accounting policy for retail installment contracts. The Company's delinquency ratio continues to be calculated using the end of period delinquent principal over 60 days. Refer to Part II, Item 6 " Selected Financial Data" for details on delinquent principal over 60 days and related delinquency ratios.
Within the total delinquent principal above, retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
 
 
Dollars (in thousands)
 
Percent (a)
 
Dollars (in thousands)
 
Percent (a)
 
Non-TDR
$
666,926

 
2.6
%
 
$
721,150


2.6
%
 
TDR (b)
1,390,373

 
5.4
%
 
665,068


2.4
%
 
Total nonaccrual principal
$
2,057,299

 
7.9
%
 
$
1,386,218

 
5.1
%
 
    
(a) Percent of unpaid principal balance of total retail installment contracts acquired individually held for investment.
(b) Refer to "Troubled Debt Restructurings" section below for discussion around significant increase in nonaccrual loans

The balances in the above tables reflect total unpaid principal balance rather than recorded investment before allowance.

As of December 31, 2017 and 2016, there were no receivables from dealers that were 30 days or more delinquent. As of December 31, 2017 and 2016, there were $1,701 and $33,886, respectively, of retail installment contracts held for sale that were 30 days or more delinquent.
Credit Quality Indicators
FICO® Distribution - A summary of the credit risk profile of the Company's consumer loans by FICO® distribution, determined at origination, as of December 31, 2017 and 2016 was as follows:
FICO® Band
 
December 31, 2017 (b)
 
December 31, 2016 (b)
Commercial (a)
 
2.5%
 
3.1%
No-FICOs
 
11.2%
 
12.2%
<540
 
21.8%
 
22.1%
540-599
 
32.0%
 
31.4%
600-639
 
17.4%
 
17.4%
>640
 
15.1%
 
13.8%

(a)
No FICO score is obtained on loans to commercial borrowers.
(b)
Percentages are based on unpaid principal balance

Commercial Lending Credit Quality Indicators — The credit quality of receivables from dealers, which are considered commercial loans, is summarized according to standard regulatory classifications as follows:
Pass — Asset is well-protected by the current net worth and paying capacity of the obligor or guarantors, if any, or by the fair value less costs to sell any underlying collateral in a timely manner.
Special Mention — Asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for an asset at some future date. Special Mention assets are not adversely classified.
Substandard — Asset is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. A well-defined weakness or weaknesses exist that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected.
Doubtful — Exhibits the inherent weaknesses of a substandard credit. Additional characteristics exist that make collection or liquidation in full highly questionable and improbable, on the basis of currently known facts, conditions and values. Possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the credit, an estimated loss cannot yet be determined.
Loss — Credit is considered uncollectable and of such little value that it does not warrant consideration as an active asset. There may be some recovery or salvage value, but there is doubt as to whether, how much or when the recovery would occur.
The Company's risk department performs a commercial analysis and classifies certain loans over an internal threshold based on the classifications above. Fleet loan credit quality indicators for retail installment contracts held for
investment with commercial borrowers as of December 31, 2017 and 2016 were as follows:
     
 
December 31,
2017
 
December 31,
2016
Pass
$
12,276

 
$
17,585

Special Mention
5,324

 
2,790

Substandard
715

 
1,488

Doubtful
—

 
—

Loss
—

 
—

Total (Unpaid principal balance)

$
18,315

 
$
21,863

Commercial loan credit quality indicators for receivables from dealers held for investment as of December 31, 2017 and 2016 were as follows: 
 
December 31,
2017
 
December 31,
2016
Pass
$
14,130

 
$
67,681

Special Mention
1,657

 
—

Substandard
—

 
1,750

Doubtful
—

 
—

Loss
—

 
—

Total (Unpaid principal balance)

$
15,787

 
$
69,431


Troubled Debt Restructurings
In certain circumstances, the Company modifies the terms of its finance receivables to troubled borrowers. Modifications may include a reduction in interest rate, an extension of the maturity date, rescheduling of future cash flows, or a combination thereof. A modification of finance receivable terms is considered a TDR if the Company grants a concession to a borrower for economic or legal reasons related to the debtor’s financial difficulties that would not otherwise have been considered. Management considers TDRs to include all individually acquired retail installment contracts that have been modified at least once, deferred for a period of 90 days or more, or deferred at least twice. Additionally, restructurings through bankruptcy proceedings are deemed to be TDRs. The purchased receivables portfolio, operating and capital leases, and loans held for sale, including personal loans, are excluded from the scope of the applicable guidance. The Company's TDR balance as of December 31, 2017 and 2016 primarily consisted of loans that had been deferred or modified to receive a temporary reduction in monthly payment. As of December 31, 2017 and 2016, there were no receivables from dealers classified as a TDR.
For loans not classified as TDRs, the Company generally estimates an appropriate allowance for credit losses based on delinquency status, the Company’s historical loss experience, estimated values of underlying collateral, and various economic factors. Once a loan has been classified as a TDR, it is generally assessed for impairment based on the present value of expected future cash flows discounted at the loan's original effective interest rate considering all available evidence. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell.
A loan that has been classified as a TDR remains so until the loan is liquidated through payoff or charge-off. TDRs are placed on nonaccrual status when the Company believes repayment under the revised terms is not reasonably assured and at the latest, when the account becomes past due more than 60 days. For loans on nonaccrual status, interest income is recognized on a cash basis, however the Company continues to assess the recognition of cash received on those loans in order to identify whether certain of those loans should also be placed on a cost recovery basis. For TDR loans on nonaccrual status, the accrual of interest is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. However, for TDR loans placed on cost recovery basis, the Company returns to accrual when a sustained period of repayment performance has been achieved (typically defined as six months). The impact to interest income of TDR loans that were on cost recovery which moved back to accrual, was insignificant as of December 31, 2017.
While the Company's nonaccrual designation remains consistent at more than 60 days past due, SC continuously assesses TDR collection performance. The recognition of interest income on impaired loans (such as TDR loans) is based on an expectation of whether the contractually due interest income is reasonably assured of collection. Prior to January 1, 2017, the collection performance of TDR loans supported classifying TDRs as nonaccrual only when past due more than 60 days, regardless of delinquency status at the time of the TDR event. However, the Company noted emerging trends related to recent TDR vintage performance that caused the Company to review whether collection of interest income was reasonably assured for certain TDRs. Accordingly, beginning January 1, 2017, based on observed TDR performance, the Company places certain additional TDRs on nonaccrual status when the Company believes repayment under the revised terms is not reasonably assured and at the latest, when the account becomes past due more than 60 days. The Company believes repayment under the revised terms is not reasonably assured for a retail installment contract that is already on nonaccrual (i.e., more than 60 days past due) and has received a modification or deferment that qualifies for a TDR event. In addition, any TDR that subsequently receives a third deferral is placed on nonaccrual status. Further, the Company has determined that certain of these loans should also be placed on a cost recovery basis. If the portfolio of TDRs with these characteristics continues to grow, this change would affect the magnitude of interest income to be recognized in the future.
TDR loans are generally measured based on the present value of expected cash flows. The recognition of interest income on TDR loans reflects management’s best estimate of the amount that is reasonably assured of collection and is consistent with the estimate of future cash flows used in the impairment measurement. Any accrued but unpaid interest is fully reserved for through the recognition of additional impairment on the recorded investment, if not expected to be collected.
As of December 31, 2017, the Company had $1,390,373 of TDRs on nonaccrual status. These loans included $790,461 of TDRs for which repayment was not reasonably assured. Accordingly, these loans were placed on nonaccrual status and followed cost recovery basis. The Company applied $56,740 of interest received, on these loans, towards principal (as compared to interest income), in accordance with cost recovery method.
The table below presents the Company’s loans modified in TDRs as of December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
 
Retail Installment Contracts
Outstanding recorded investment (a)
$
6,261,432

 
$
5,637,792

Impairment
(1,731,320
)
 
(1,611,295
)
Outstanding recorded investment, net of impairment
$
4,530,112

 
$
4,026,497


(a) As of December 31, 2017, the outstanding recorded investment excludes $64.7 million of collateral-dependent bankruptcy TDRs that has been written down by $29.2 million to fair value less cost to sell.
A summary of the Company’s delinquent TDRs at December 31, 2017 and 2016, is as follows:
 
December 31, 2017
 
December 31, 2016
 
Retail Installment Contracts (a)
Principal, 30-59 days past due
$
1,332,239

 
$
1,253,848

Delinquent principal over 59 days
818,938

 
736,691

Total delinquent TDR principal
$
2,151,177

 
$
1,990,539


(a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance.

As of December 31, 2017, the Company had $1,390,373 of TDRs on nonaccrual status, of which $790,461 of TDRs followed cost recovery basis. The remaining nonaccrual TDR loans follow cash basis of accounting. Out of the total TDRs on cost recovery basis, $652,679 of TDRs were less than 60 days past due. As of December 31, 2016, the Company had $665,068 of TDRs on nonaccrual status, none of which followed cost recovery basis.
Average recorded investment and income recognized on TDR loans are as follows:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Average outstanding recorded investment in TDRs
$
6,002,715

 
$
5,079,782

 
$
4,361,962

 
$
17,150

Interest income recognized
946,606

 
802,048

 
716,054

 
2,220


The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the years ended December 31, 2017, 2016, and 2015:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Outstanding recorded investment before TDR
$
3,547,456

 
$
3,394,308

 
$
3,417,884

 
$
15,418

Outstanding recorded investment after TDR
$
3,541,968

 
$
3,419,990

 
$
3,445,103

 
$
15,340

Number of contracts (not in thousands)
204,775

 
191,385

 
198,325

 
12,501


A TDR is considered to have subsequently defaulted upon charge off, which for retail installment contracts is at the earlier of the date of repossession or 120 days past due and for revolving personal loans is generally the month in which the receivable becomes 180 days past due. Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted for the years ended December 31, 2017, 2016, and 2015 are summarized in the following table:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Recorded investment in TDRs that subsequently defaulted (a)
$
820,765

 
$
788,933

 
$
788,297

 
$
5,346

Number of contracts (not in thousands)
46,600

 
44,972

 
45,840

 
4,919


(a) For TDR modifications and TDR modifications that subsequently default, while the allowance methodology remains unchanged, transition rates of the TDR loans are adjusted to reflect the respective risks.
Goodwill and Intangibles
Goodwill and Intangibles
Goodwill and Intangibles

The Company has identified one operating segment which is also the reporting unit, Consumer Finance. Management tests goodwill for impairment annually and in interim, if an event or circumstance occurs that would “more likely than not” reduce the fair value of the reporting unit to an amount below its carrying value. The Company determines if impairment exists by estimating the fair value of the Consumer Finance reporting unit using the market capitalization method at the measurement date and comparing it to the carrying value. If the fair value is greater than the carrying value, then no goodwill impairment has occurred. The Company completed its test of goodwill for impairment during the fourth quarter of 2017 and concluded that goodwill was not impaired. The carrying amount of goodwill for the years ended December 31, 2017, 2016, and 2015, was unchanged at $74,056. For each of the years ended December 31, 2017, 2016, and 2015, goodwill amortization of $5,463, was deductible for tax purposes.

The components of intangible assets at December 31, 2017 and 2016 were as follows:
 
December 31, 2017
 
Useful Life
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Value
Amortized intangible assets:
 
 
 
 
 
 
 
Customer relationships
10 years
 
$
12,400

 
$
(11,883
)
 
$
517

Software and technology
3 years
 
33,603

 
(20,286
)
 
13,317

Trademarks
3 - 15 years
 
20,347

 
(4,447
)
 
15,900

Total
 
 
$
66,350

 
$
(36,616
)
 
$
29,734

 
December 31, 2016
 
Useful Life
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Value
Amortized intangible assets:
 
 
 
 
 
 
 
Customer relationships
10 years
 
$
12,400

 
$
(10,643
)
 
$
1,757

Software and technology
3 years
 
33,528

 
(19,762
)
 
13,766

Trademarks
3 - 15 years
 
20,347

 
(3,247
)
 
17,100

Total
 
 
$
66,275

 
$
(33,652
)
 
$
32,623


Effective April 1, 2016, the Company changed its estimate of the useful life of its trademark intangible to better reflect the estimated periods during which the asset is expected to generate cash flows. The estimated remaining useful life of the intangible asset that previously was considered indefinite was reduced to 15 years. The effect of this change in estimate was to increase amortization expense by $900 for the period ended December 31, 2016.
The Company recognized impairment on intangible assets of zero, zero, and $3,500 during the years ended December 31, 2017, 2016, and 2015, respectively. Amortization expense on the assets was $9,240, $8,411, and $6,742 for the years ended December 31, 2017, 2016, and 2015, respectively. Estimated future amortization expense is as follows:
2018
$
8,400

2019
5,746

2020
3,288

2021
1,200

2022 and thereafter
11,100

Total
$
29,734


The weighted average remaining useful life for the Company's amortizing intangible assets was 8.1 years, 8.5 years, and 2.9 years at December 31, 2017, 2016, and 2015, respectively.
Debt
Debt
Debt
Revolving Credit Facilities
The following table presents information regarding credit facilities as of December 31, 2017 and 2016:
 
December 31, 2017
 
Maturity Date(s)
 
Utilized Balance
 
Committed Amount
 
Effective Rate
 
Assets Pledged
 
Restricted Cash Pledged
Facilities with third parties:
 
 
 
 
 
 
 
 
 
 
 
Warehouse line (a)
January 2018
 
$
336,484

 
$
500,000

 
2.87%
 
$
473,208

 
$
—

Warehouse line
Various (b)
 
339,145

 
1,250,000

 
2.53%
 
461,353

 
12,645

Warehouse line (c)
August 2019
 
2,044,843

 
3,900,000

 
2.96%
 
2,929,890

 
53,639

Warehouse line
December 2018
 
—

 
300,000

 
1.49%
 
—

 
—

Warehouse line
October 2019
 
226,577

 
1,800,000

 
4.95%
 
311,336

 
6,772

Repurchase facility (e)
Various (d)
 
325,775

 
325,775

 
3.24%

—


13,842

Repurchase facility (e)
April 2018
 
202,311

 
202,311

 
2.67%
 
—

 
—

Repurchase facility (e)
March 2018
 
147,500

 
147,500

 
3.91%
 
—

 
—

Repurchase facility (e)
March 2018
 
68,897

 
68,897

 
3.04%
 
—

 
—

Warehouse line
November 2019
 
403,999

 
1,000,000

 
2.66%
 
546,782

 
14,729

Warehouse line
October 2019
 
81,865

 
400,000

 
4.09%
 
114,021

 
3,057

Warehouse line
November 2019
 
435,220

 
500,000

 
1.92%
 
521,365

 
16,866

Warehouse line
October 2018
 
235,700

 
300,000

 
2.84%
 
289,634

 
10,474

Total facilities with third parties
 
 
4,848,316

 
10,694,483

 
 
 
5,647,589

 
132,024

Lines of credit with Santander and related subsidiaries (f):
 
 
 
 
 
 
 
 
 
 
 
Line of credit
December 2018
 
—

 
1,000,000

 
3.09%
 
—

 
—

Promissory Note
December 2021
 
250,000

 
250,000

 
3.70%
 
—

 
—

Promissory Note
December 2022
 
250,000

 
250,000

 
3.95%
 
—

 
—

Promissory Note
March 2019
 
300,000

 
300,000

 
2.67%
 
—

 
—

Promissory Note
October 2020
 
400,000

 
400,000

 
3.10%
 
—

 
—

Promissory Note
May 2020
 
500,000

 
500,000

 
3.49%
 
—

 
—

Promissory Note (g)
March 2022
 
650,000

 
650,000

 
4.20%
 
—

 
—

Promissory Note
August 2021
 
650,000

 
650,000

 
3.44%
 
—

 
—

Line of credit
December 2018
 
750,000

 
750,000

 
1.33%
 
—

 
—

Line of credit
March 2019
 
—

 
3,000,000

 
3.94%
 
—

 
—

Total facilities with Santander and related subsidiaries
 
 
3,750,000

 
7,750,000

 
 
 
—

 
—

Total revolving credit facilities
 
 
$
8,598,316

 
$
18,444,483

 
 
 
$
5,647,589

 
$
132,024


(a)
The maturity of this warehouse line was extended to August 2019.
(b)
Half of the outstanding balance on this facility matures in March 2018 and remaining balance matures in March 2019.
(c)
This line is held exclusively for financing of Chrysler Capital leases.
(d)
The maturity of this repurchase facility ranges from February 2018 to July 2018
(e)
The repurchase facilities are collateralized by securitization notes payable retained by the Company. These facilities have rolling maturities of up to one year.
(f)
These lines are also collateralized by securitization notes payable and residuals retained by the Company. As of December 31, 2017 and December 31, 2016, $3,000,000 and $1,316,568, respectively, of the aggregate outstanding balances on these facilities were unsecured.
(g)
During the year, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This was later terminated and the fair value hedge adjustment was $4.2 million, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt.
 
December 31, 2016
 
Maturity Date(s)
 
Utilized Balance
 
Committed Amount
 
Effective Rate
 
Assets Pledged
 
Restricted Cash Pledged
Facilities with third parties:

 
 
 
 
 
 
 
 
 
 
 
Warehouse line
January 2018
 
$
153,784

 
$
500,000

 
3.17%
 
$
213,578

 
$
—

Warehouse line
Various
 
462,085

 
1,250,000

 
2.52%
 
653,014

 
14,916

Warehouse line
August 2018
 
534,220

 
780,000

 
1.98%
 
608,025

 
24,520

Warehouse line
August 2018
 
3,119,943

 
3,120,000

 
1.91%
 
4,700,774

 
70,991

Warehouse line
October 2018
 
702,377

 
1,800,000

 
2.51%
 
994,684

 
23,378

Repurchase facility
December 2017
 
507,800

 
507,800

 
2.83%
 
—

 
22,613

Repurchase facility
April 2017
 
235,509

 
235,509

 
2.04%
 
—

 
—

Warehouse line
November 2018
 
578,999

 
1,000,000

 
1.56%
 
850,758

 
17,642

Warehouse line
October 2018
 
202,000

 
400,000

 
2.22%
 
290,867

 
5,435

Warehouse line
November 2018
 
—

 
500,000

 
2.07%
 
—

 
—

Warehouse line
October 2017
 
243,100

 
300,000

 
2.38%
 
295,045

 
9,235

Total facilities with third parties

 
6,739,817

 
10,393,309

 

 
8,606,745

 
188,730

Lines of credit with Santander and related subsidiaries:
 
 


 


 
 
 


 


Line of credit
December 2017
 
500,000

 
500,000

 
3.04%
 
—

 
—

Line of credit
December 2018
 
175,000

 
500,000

 
3.87%
 
—

 
—

Line of credit
December 2017
 
1,000,000

 
1,000,000

 
2.86%
 
—

 
—

Line of credit
December 2018
 
1,000,000

 
1,000,000

 
2.88%
 
—

 
—

Line of credit
March 2017
 
300,000

 
300,000

 
2.25%
 
—

 
—

Line of credit
March 2019
 
—

 
3,000,000

 
3.74%
 
—

 
—

Total facilities with Santander and related subsidiaries
 
 
2,975,000

 
6,300,000

 
 
 
—

 
—

Total revolving credit facilities
 
 
$
9,714,817

 
$
16,693,309

 
 
 
$
8,606,745

 
$
188,730


Facilities with Third Parties
The warehouse lines and repurchase facility are fully collateralized by a designated portion of the Company’s retail installment contracts (Note 2), leased vehicles (Note 3), securitization notes payables and residuals retained by the Company.
Facilities with Santander and Related Subsidiaries
Lines of Credit
Through SHUSA, Santander provides the Company with $3,000,000 of committed revolving credit that can be drawn on an unsecured basis. Through its New York branch, Santander provides the Company with $1,750,000 of long-term committed revolving credit facilities. The $1,750,000 of longer-term committed revolving credit facilities is composed of a $1,000,000 facility which permits unsecured borrowing but is generally collateralized by retained residuals and $750,000 facility which is securitized by Prime retail installment loans.  Both facilities have current maturity dates of December 31, 2018.
Promissory Notes
Through SHUSA, Santander provides the Company with $3,000,000 of promissory notes. Santander Consumer ABS Funding 2, LLC (a subsidiary of the Company) established a committed facility of $300 million with SHUSA on March 6, 2014. This facility matured on March 6, 2017 and was replaced on the same day with a $300 million term promissory note executed by SC Illinois as the borrower and SHUSA as the lender. Interest accrues on this note at a rate equal to three-month LIBOR plus 1.35%. The note has a maturity date of March 6, 2019.
In addition, SC Illinois as borrower executed the following promissory notes with SHUSA during 2017;
•a $500 million term promissory note on May 11, 2017. Interest accrues on this note at the rate of 3.49%. The note has a maturity date of May 11, 2020.
•a $650 million term promissory note on March 31, 2017. Interest accrues on this note at the rate of 4.20%. The note has a maturity date of March 31, 2022.
•a $650 million term promissory note on August 3, 2017. Interest accrues on this note at the rate of 3.44%. The note has a maturity date of August 3, 2021.
•a $250 million term promissory note on December 19, 2017. Interest accrues on this note at the rate of 3.95%. The note has a maturity date of December 2022.
•a $250 million term promissory note on December 19, 2017. Interest accrues on this note at the rate of 3.70%. The note has a maturity date of December 2021.
•a $400 million term promissory note on October 10, 2017. Interest accrues on this note at the rate of 3.10%. The note has a maturity date of October 2020.
Secured Structured Financings
 
The following table presents information regarding secured structured financings as of December 31, 2017 and 2016:
 
December 31, 2017
 
Estimated Maturity Date(s)
 
Balance
 
Initial Note Amounts Issued
 
Initial Weighted Average Interest Rate
 
Collateral (b)
 
Restricted Cash
2013 Securitizations
January 2019 - March 2021
 
$
418,806

 
$
4,239,700

 
0.89%-1.59%
 
$
544,948

 
$
125,696

2014 Securitizations
February 2020 - April 2022
 
1,150,422

 
6,391,020

 
 1.16%-1.72%
 
1,362,814

 
210,937

2015 Securitizations
September 2019 - January 2023
 
2,484,051

 
9,171,332

 
 1.33%-2.29%
 
3,465,671

 
366,062

2016 Securitizations
April 2022 - March 2024
 
3,596,822

 
7,462,790

 
 1.63%-2.80%
 
4,798,807

 
344,899

2017 Securitizations
April 2023 - September 2024
 
7,343,157

 
9,535,800

 
 2.01%-2.52%
 
9,701,381

 
422,865

Public securitizations (a)
 
 
14,993,258

 
36,800,642

 
 
 
19,873,621

 
1,470,459

2011 Private issuance
September 2028
 
281,946

 
1,700,000

 
1.46%
 
398,051

 
20,356

2013 Private issuances
August 2021 - September 2024
 
2,292,279

 
2,044,054

 
1.28%-1.38%
 
3,719,148

 
155,066

2014 Private issuances
March 2018 - November 2021
 
117,730

 
1,538,087

 
1.05%-1.40%
 
231,997

 
9,552

2015 Private issuances
November 2018 - September 2021
 
2,009,627

 
2,305,062

 
0.88%-4.09%
 
988,247

 
55,451

2016 Private issuances
May 2020 - September 2024
 
1,489,464

 
3,050,000

 
1.55%-2.86%
 
2,147,988

 
89,460

2017 Private issuances
April 2021 - September 2021
 
1,373,591

 
1,641,079

 
1.85%-2.27%
 
1,747,227

 
47,415

Privately issued amortizing notes
 
 
7,564,637

 
12,278,282

 
 
 
9,232,658

 
377,300

Total secured structured financings
 
 
$
22,557,895

 
$
49,078,924

 
 
 
$
29,106,279

 
$
1,847,759


(a)Securitizations executed under Rule 144A of the Securities Act are included within this balance.
(b)Secured structured financings may be collateralized by the Company's collateral overages of other issuances.

 
December 31, 2016
 
Estimated Maturity Date(s)
 
Balance
 
Initial Note Amounts Issued
 
Initial Weighted Average Interest Rate
 
Collateral
 
Restricted Cash
2012 Securitizations
September 2018
 
$
197,470

 
$
2,525,540

 
0.92%-1.23%
 
$
312,710

 
$
73,733

2013 Securitizations
January 2019 - January 2021
 
1,172,904

 
6,689,700

 
0.89%-1.59%
 
1,484,014

 
222,187

2014 Securitizations
February 2020 - January 2021
 
1,858,600

 
6,391,020

 
1.16%-1.72%
 
2,360,939

 
250,806

2015 Securitizations
September 2019 - January 2023
 
4,326,292

 
9,317,032

 
1.33%-2.29%
 
5,743,884

 
468,787

2016 Securitizations
April 2022 - March 2024
 
5,881,216

 
7,462,790

 
1.63%-2.46%
 
7,572,977

 
408,086

Public securitizations
 
 
13,436,482

 
32,386,082

 
 
 
17,474,524

 
1,423,599

2010 Private issuance
June 2017
 
113,157

 
516,000

 
1.29%
 
213,235

 
6,270

2011 Private issuance
December 2018
 
342,369

 
1,700,000

 
1.46%
 
617,945

 
31,425

2013 Private issuances
September 2018-September 2020
 
2,375,964

 
2,693,754

 
1.13%-1.38%
 
4,122,963

 
164,740

2014 Private issuances
March 2018 - December 2021
 
643,428

 
3,271,175

 
1.05%-1.40%
 
1,129,506

 
68,072

2015 Private issuances
December 2016 - July 2019
 
2,185,166

 
2,855,062

 
 0.88%-2.81%
 
2,384,661

 
140,269

2016 Private issuances
May 2020 - September 2024
 
2,512,323

 
3,050,000

 
 1.55%-2.86%
 
3,553,577

 
90,092

Privately issued amortizing notes
 
 
8,172,407

 
14,085,991

 
 
 
12,021,887

 
500,868

Total secured structured financings
 
 
$
21,608,889

 
$
46,472,073

 
 
 
$
29,496,411

 
$
1,924,467


Notes Payable — Secured Structured Financings
The principal and interest on secured structured financings are paid using the cash flows from the underlying retail installment contracts, loans and leases, which serve as collateral for the notes. Accordingly, the timing of the principal payments on these notes is dependent on the payments received on the underlying retail installment contracts, which back the notes. The final contractual maturity and weighted average interest rate (net of interest income earned on retained bonds) by year on these notes at December 31, 2017, were as follows:
2018, 0.44%
$
226,046

2019, 1.74%
2,327,186

2020, 2.15%
4,445,272

2021, 2.70%
8,118,119

2022, 3.21%
3,286,548

Thereafter, 3.19%
4,205,379

 
$
22,608,550

Less: unamortized costs
(50,655
)
Notes payable - secured structured financings
$
22,557,895



The Company’s secured structured financings consist of both public, SEC-registered securitizations, as well as private securitizations under Rule 144A of the Securities Act and privately issued amortizing notes. The Company also executes private securitizations under Rule 144A of the Securities Act and periodically issues private term amortizing notes, which are structured similarly to securitizations but are acquired by banks and conduits. The Company’s securitizations and private issuances are collateralized by vehicle retail installment contracts and loans or leases. As of December 31, 2017 and 2016, the Company had private issuances of notes backed by vehicle leases totaling $3,710,377 and $3,862,274, respectively.

Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using a method that approximates the effective interest method and are classified as a discount to the related recorded debt balance. Amortized debt issuance costs were $34,510, $27,111, and $23,338 for the years ended December 31, 2017, 2016, and 2015, respectively. For securitizations, the term takes into consideration the expected execution of the contractual call option, if applicable. Amortization of premium or accretion of discount on acquired notes payable is also included in interest expense using a method that approximates the effective interest method over the estimated remaining life of the acquired notes. Total interest expense on secured structured financings for the years ended December 31, 2017, 2016, and 2015 was $554,663, $420,153, and $291,247, respectively.
Variable Interest Entities
Variable Interest Entities
Variable Interest Entities
The Company transfers retail installment contracts and leased vehicles into newly formed Trusts that then issue one or more classes of notes payable backed by the collateral. The Company’s continuing involvement with these Trusts is in the form of servicing the assets and, generally, through holding residual interests in the Trusts. Generally, these transactions are structured without recourse. The Trusts are considered VIEs under U.S. GAAP and, when the Company holds the residual interest, are consolidated because the Company has: (a) power over the significant activities of each entity as servicer of its financial assets and (b) through the residual interest and in some cases debt securities held by the Company, an obligation to absorb losses or the right to receive benefits from each VIE that are potentially significant to the VIE. When the Company does not retain any debt or equity interests in its securitizations or subsequently sells such interests it records these transactions as sales of the associated retail installment contracts.
The collateral, borrowings under credit facilities and securitization notes payable of the Company's consolidated VIEs remain on the consolidated balance sheets. The Company recognizes finance charges, fee income, and provision for credit losses on the retail installment contracts, and leased vehicles and interest expense on the debt. All of the Trusts are separate legal entities and the collateral and other assets held by these subsidiaries are legally owned by them and are not available to other creditors.
Revolving credit facilities generally also utilize entities that are considered VIEs which are included on the consolidated balance sheets.

The Company also uses a titling trust to originate and hold its leased vehicles and the associated leases, in order to facilitate the pledging of leases to financing facilities or the sale of leases to other parties without incurring the costs and administrative burden of retitling the leased vehicles. This titling trust is considered a VIE.
On-balance sheet variable interest entities
The Company retains servicing for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in fees, commissions and other income. As of December 31, 2017 and 2016, the Company was servicing $26,250,482 and $27,802,971, respectively, of gross retail installment contracts that have been transferred to consolidated Trusts. The remainder of the Company’s retail installment contracts remain unpledged.

A summary of the cash flows received from consolidated securitization trusts for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Assets securitized
$
18,442,793

 
$
15,828,921

 
$
18,516,641

 
 
 
 
 
 
Net proceeds from new securitizations (a)
$
14,126,211

 
$
13,319,530

 
$
15,232,692

Net proceeds from sale of retained bonds
499,354

 
436,812

 
—

Cash received for servicing fees (b)
866,210

 
787,778

 
700,156

Net distributions from Trusts (b)
2,613,032

 
1,748,013

 
1,960,418

Total cash received from Trusts
$
18,104,807

 
$
16,292,133

 
$
17,893,266

(a)
Includes additional advances on existing securitizations.
(b)
These amounts are not reflected in the accompanying consolidated statements of cash flows because the cash flows are between the VIEs and other entities included in the consolidation.
Off-balance sheet variable interest entities
The Company has completed sales to VIEs that met sale accounting treatment in accordance with the applicable guidance. Due to the nature, purpose, and activity of the transactions, the Company determined for consolidation purposes that it either does not hold potentially significant variable interests or is not the primary beneficiary as a result of the Company's limited further involvement with the financial assets. For such transactions, the transferred financial assets are removed from the Company's consolidated balance sheets. In certain situations, the Company remains the servicer of the financial assets and receives servicing fees that represent adequate compensation. The Company also recognizes a gain or loss for the difference between the cash proceeds and carrying value of the assets sold.
During the years ended December 31, 2017, 2016, and 2015 the Company sold $2,583,341, $886,288, and $1,557,099, respectively, of gross retail installment contracts to VIEs in off-balance sheet securitizations for a gain (loss) of $(13,026), $(10,511), and $59,983, respectively, recorded in investment gains (losses), net, in the accompanying consolidated statements of income. Beginning in 2017, the transactions are executed under the Company's securitization platforms with Santander. Santander, as a majority owned affiliate, will hold eligible vertical interest in the Notes and Certificates of not less than 5% to comply with the Dodd-Frank Act risk retention rules.
As of December 31, 2017 and 2016, the Company was servicing $3,428,248 and $2,741,101, respectively, of gross retail installment contracts that have been sold in these and other off-balance sheet securitizations and were subject to an optional clean-up call. The portfolio was comprised as follows:
 
Year ended December 31,
 
2017
 
2016
SPAIN
$
2,024,016

 
$
—

Total serviced for related parties
2,024,016

 
—

Chrysler Capital securitizations
1,404,232

 
2,472,756

Other third parties
—

 
268,345

Total serviced for third parties
1,404,232

 
2,741,101

Total serviced for others portfolio
$
3,428,248

 
$
2,741,101


Other than repurchases of sold assets due to standard representations and warranties, the Company has no exposure to loss as a result of its involvement with these VIEs.
A summary of the cash flows received from these off-balance sheet securitization trusts for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Receivables securitized (a)
$
2,583,341

 
$
904,108

 
$
1,557,099

 
 
 
 
 
 
Net proceeds from new securitizations
$
2,588,227

 
$
876,592

 
$
1,578,320

Cash received for servicing fees
35,682

 
47,804

 
23,848

Total cash received from securitization trusts
$
2,623,909

 
$
924,396

 
$
1,602,168


(a)
Represents the unpaid principal balance at the time of original securitization.

During the year ended December 31, 2015, the Company settled transactions to sell residual interests in certain Trusts and certain retained bonds in those Trusts to an unrelated third party. The Company received cash proceeds of $661,675 for the year ended December 31, 2015 related to the sale of these residual interests and retained bonds.

Each of these Trusts was previously determined to be a VIE. Prior to the sale of these residual interests, the associated Trusts were consolidated by the Company because the Company held a variable interest in each VIE and had determined that it was the primary beneficiary of the VIEs. The Company will continue to service the loans of these Trusts and may reacquire certain retail installment loans from the Trusts through the exercise of an optional clean-up call, as permitted through the respective servicing agreements. Although the Company will continue to service the loans in the associated Trusts and, therefore, will have the power to direct the activities that most significantly impact the economic performance of the trust, the Company concluded that it was no longer the primary beneficiary of the Trusts upon the sale of the Company's residual interests. As a result, the Company deconsolidated the assets and liabilities of the corresponding trusts upon their sale.

Upon settlement of these transactions, the Company derecognized $1,919,171 in assets and $1,183,792 in notes payable and other liabilities of the trust. For the year ended December 31, 2015 the sale of these interests resulted in a net decrease to provision for credit losses of $112,804, after giving effect to lower of cost or market adjustments of $73,388.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
The Company manages its exposure to changing interest rates using derivative financial instruments. In certain circumstances, the Company is required to hedge its interest rate risk on its secured structured financings and the borrowings under its revolving credit facilities. The Company uses both interest rate swaps and interest rate caps to satisfy these requirements and to hedge the variability of cash flows on securities issued by securitization Trusts and borrowings under the Company's warehouse facilities. Certain of the Company’s interest rate swap agreements are designated as cash flow hedges for accounting purposes. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI), to the extent that the hedge relationships are effective, and amounts are reclassified from AOCI to earnings as the forecasted transactions impact earnings. Ineffectiveness, if any, associated with changes in the fair value of derivatives designated as cash flow hedges is recorded currently in earnings.
The Company’s remaining interest rate swap agreements, as well as its interest rate cap agreements, the corresponding options written to offset the interest rate cap agreements, total return swaps and a total return settlement agreement were not designated as hedges for accounting purposes. Changes in the fair value and settlements of derivative instruments not designated as hedges for accounting purposes are reflected in earnings as a component of interest expense.
The underlying notional amounts and aggregate fair values of these agreements at December 31, 2017 and 2016, were as follows:
 
 
December 31, 2017
 
Notional
 
Fair Value
 
Asset
 
Liability
Interest rate swap agreements designated as cash flow hedges
$
4,926,900

 
$
45,986

 
$
45,986

 
$
—

Interest rate swap agreements not designated as hedges
1,736,400

 
9,596

 
9,596

 
—

Interest rate cap agreements
10,906,081

 
103,721

 
135,830

 
(32,109
)
Options for interest rate cap agreements
10,906,081

 
(103,659
)
 
32,165

 
(135,824
)

 
December 31, 2016
 
Notional
 
Fair Value
 
Asset
 
Liability
Interest rate swap agreements designated as cash flow hedges
$
7,854,700

 
$
44,618

 
$
45,551

 
$
(933
)
Interest rate swap agreements not designated as hedges
1,019,900

 
1,939

 
2,076

 
(137
)
Interest rate cap agreements
9,463,935

 
76,269

 
76,269

 
—

Options for interest rate cap agreements
9,463,935

 
(76,281
)
 
—

 
(76,281
)
Total return settlement
658,471

 
(30,618
)
 
—

 
(30,618
)

During the second quarter of 2017, the Company entered into an interest rate swap to hedge the interest rate risk on a certain fixed rate debt. This derivative was designated as a fair value hedge at inception and was accounted for by recording the change in the fair value of the derivative instrument and the related hedged item attributable to interest rate risk on the Consolidated Balance Sheets, with the corresponding income or expense recorded in the Consolidated Statements of Operations. During the third quarter of 2017, the Company terminated the interest rate swap.

The Company purchased a loan portfolio for which it was obligated to make purchase price holdback payments and total return settlement payments that were considered to be derivatives, collectively referred to herein as “total return settlement,” and accordingly were marked to fair value each reporting period. The Company was obligated to make purchase price holdback payments on a periodic basis to a third-party originator of loans that the Company has purchased, when losses are lower than originally expected. The Company also was obligated to make total return settlement payments to this third-party originator in 2016 and 2017 if returns on the purchased loans are greater than originally expected. All purchase price holdback payments and all total return settlement payments due in 2016 and 2017 have been made and as of December 31, 2017, the derivative instrument has been settled.

The Company is the holder of a warrant that gives it the right, if certain vesting conditions are satisfied, to purchase additional shares in a company in which it has a cost method investment. This warrant was issued in 2012 and is carried at its estimated fair value of zero at December 31, 2017 and 2016.

The aggregate fair value of the interest rate swap agreements was included on the Company’s consolidated balance sheets in other assets and other liabilities, as appropriate. The interest rate cap agreements were included in other assets and the related options in other liabilities on the Company’s consolidated balance sheets. The fair value of the total return swap was included in other liabilities on the Company's consolidated balance sheets. See Note 15 for additional disclosure of fair value and balance sheet location of the Company's derivative financial instruments.
The Company enters into legally enforceable master netting agreements that reduce risk by permitting netting of transactions, such as derivatives and collateral posting, with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in ISDA master agreements. The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable master netting (ISDA) agreement. Collateral that is received or pledged for these transactions is disclosed within the “Gross amounts not offset in the Consolidated Balance Sheet” section of the tables below. Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of December 31, 2017 and 2016:
 
Gross Amounts Not Offset in the
Consolidated Balance Sheet
 
Assets Presented
in the
Consolidated
Balance Sheet
 
Cash
Collateral
Received (a)
 
Net
Amount
December 31, 2017
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
8,621

 
$
(3,461
)
 
$
5,160

Interest rate swaps - third party
46,961

 
(448
)
 
46,513

Interest rate caps - Santander & affiliates
18,201

 
(12,240
)
 
5,961

Interest rate caps - third party
149,794

 
(55,835
)
 
93,959

Total derivatives subject to a master netting arrangement or similar arrangement
223,577

 
(71,984
)
 
151,593

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative assets
$
223,577

 
$
(71,984
)
 
$
151,593

Total financial assets
$
223,577

 
$
(71,984
)
 
$
151,593

 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
5,372

 
$
—

 
$
5,372

Interest rate swaps - third party
42,254

 
(22,100
)
 
20,154

Interest rate caps - Santander & affiliates
7,593

 
—

 
7,593

Interest rate caps - third party
68,676

 
—

 
68,676

Total derivatives subject to a master netting arrangement or similar arrangement
123,895

 
(22,100
)
 
101,795

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative assets
$
123,895

 
$
(22,100
)
 
$
101,795

Total financial assets
$
123,895

 
$
(22,100
)
 
$
101,795


(a) Cash collateral received is reported in Other liabilities or Due to affiliate, as applicable, in the consolidated balance sheet.
 
Gross Amounts Not Offset in the
Consolidated Balance Sheet
 
Liabilities Presented
in the
Consolidated
Balance Sheet
 
Cash
Collateral
Pledged (a)
 
Net
Amount
December 31, 2017
 
 
 
 
 
Back to back - Santander & affiliates
18,201

 
(18,201
)
 
—

Back to back - third party
149,732

 
(133,540
)
 
16,192

Total derivatives subject to a master netting arrangement or similar arrangement
167,933

 
(151,741
)
 
16,192

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative liabilities
$
167,933

 
$
(151,741
)
 
$
16,192

Total financial liabilities
$
167,933

 
$
(151,741
)
 
$
16,192

 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
546

 
$
(546
)
 
$
—

Interest rate swaps - third party
524

 
(524
)
 
—

Back to back - Santander & affiliates
7,593

 
(7,593
)
 
—

Back to back - third party
68,688

 
(68,688
)
 
—

Total derivatives subject to a master netting arrangement or similar arrangement
77,351

 
(77,351
)
 
—

Total return settlement
30,618

 
—

 
30,618

Total derivatives not subject to a master netting arrangement or similar arrangement
30,618

 
—

 
30,618

Total derivative liabilities
$
107,969

 
$
(77,351
)
 
$
30,618

Total financial liabilities
$
107,969

 
$
(77,351
)
 
$
30,618


(a) Cash collateral pledged is reported in Other assets or Due from affiliate, as applicable, in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of cash pledged as collateral exceeds the associated financial liability, as such, the actual amount of cash collateral pledged that is reported in Other assets or Due from affiliates may be greater than the amount shown in the table above.
The gross amount reclassified from accumulated other comprehensive income to net income, are included as components of interest expense. The Company’s derivative instruments had effects on its consolidated statements of income and comprehensive income for the years ended December 31, 2017, 2016, and 2015 as follows:
 
December 31, 2017
 
Recognized in
Earnings
 
Gross Gains Recognized in Accumulated Other Comprehensive Income
 
Gross amount Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
112

 
$
22,333

 
$
6,060

 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in operating expense
$
(6,835
)
 
 
 
 
 
December 31, 2016
 
Recognized in
Earnings
 
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income
 
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
1,131

 
$
(2,118
)
 
$
(43,898
)
 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in operating expenses
$
(1,593
)
 
 
 
 
 
December 31, 2015
 
Recognized in
Earnings
 
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income
 
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
223

 
$
(53,160
)
 
$
(50,860
)
 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in interest expense
$
(11,880
)
 
 
 
 
Gains (losses) recognized in operating expenses
$
(10,973
)
 
 
 
 


The ineffectiveness related to the interest rate swap agreements designated as cash flow hedges was insignificant for the years ended December 31, 2017, 2016, and 2015. The Company estimates that approximately $16,798 of unrealized losses included in accumulated other comprehensive income will be reclassified to interest expense within the next twelve months.
Other Assets
Other Assets
Other Assets
Other assets at December 31, 2017 and December 31, 2016, were as follows:
 
December 31,
2017
 
December 31,
2016
Upfront fee (a)
$
80,000

 
$
95,000

Vehicles (b)
293,546

 
257,382

Manufacturer subvention payments receivable (a)
83,910

 
161,447

Accounts receivable
38,583

 
22,480

Prepaids
40,830

 
46,177

Derivative assets at fair value (c)
196,755

 
110,930

Derivative-third party collateral
149,805

 
75,089

Other
29,815

 
16,905

Total
$
913,244

 
$
785,410

 
(a)
These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the agreement. The fee is being amortized into finance and other interest income over a ten-year term. As the preferred financing provider for FCA, the Company is entitled to subvention payments on loans and leases with below-market customer payments.
(b)
Includes vehicles obtained through repossession as well as vehicles obtained due to lease terminations.
(c)
Derivative assets at fair value represent the gross amount of derivatives presented in the consolidated financial statements. Refer to Note 8 to these Consolidated Financial Statements for the detail of these amounts.
Income Taxes
Income Taxes
Income Taxes
The components of the provision for income taxes for the years ended December 31, 2017, 2016, and 2015, were as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Income before income taxes:
 
 
 
 
 
Domestic
$
717,496

 
$
942,436

 
$
1,289,612

Foreign
106,018

 
218,275

 
—

Total
$
823,514

 
$
1,160,711

 
$
1,289,612

Current income tax expense (benefit):
 
 

 
 
Federal
$
(6,140
)
 
$
2,481

 
$
33,798

State
(6,436
)
 
3,273

 
4,491

Foreign
4,273

 
8,738

 
—

Total current income tax expense (benefit)
$
(8,303
)
 
$
14,492

 
$
38,289

Deferred income tax expense (benefit):
 
 
 
 
 
Federal
(386,703
)
 
343,816

 
387,686

State
30,953

 
35,944

 
39,597

Foreign
(39
)
 
(7
)
 
—

Total deferred income tax expense (benefit)
(355,789
)
 
379,753

 
427,283

Total income tax expense (benefit)
$
(364,092
)
 
$
394,245

 
$
465,572


In December 2015, the Company formed a wholly-owned foreign subsidiary that is licensed in Puerto Rico as an IFE ("International Financial Entity") under the Government approved Act Number 273. This classification results in the granting of a tax decree securing a 4% fixed income tax rate and a number of non income tax benefits for an initial period of fifteen (15) years.

The Company provides U.S. income taxes on earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside of the United States. The Company has historically provided deferred taxes under ASC 740-30-25, formerly APB 23, for the presumed repatriation to the United States earnings from the Company’s Puerto Rican subsidiary, SCI. In June 2017, the Company asserted that undistributed net earnings of SCI would be indefinitely reinvested outside the United States. This change in assertion was primarily driven by the Company's future United States cash projections and the Company’s intent to indefinitely reinvest the earnings outside of the United States. The Company had $156.7 million of undistributed net earnings and a $52.8 million unrecorded deferred tax liability at September 30, 2017.

During the three months ended December 31, 2017, the Company changed its assertion to reflect a change in management’s strategic objective to no longer permanently reinvest the earnings. Under ASC 740-30 (formerly APB 23), unremitted earnings that are no longer permanently invested would become subject to deferred income taxes under United States law. As a result of this change, the Company recognized $55.7 million of additional income tax expense during the three months ended December 31, 2017 to record the applicable U.S. deferred income tax liability.

As of December 31, 2017 and 2016, the Company has no earnings which are considered indefinitely reinvested.
The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rates for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Federal statutory rate
35.0
 %
 
35.0
%
 
35.0
%
State and local income taxes — net of federal income tax benefit
2.3

 
2.5

 
2.3

Valuation allowance
—

 
(2.2
)
 
(0.2
)
Electric vehicle credit
(2.9
)
 
(2.3
)
 
(1.8
)
Tax reform - deferred impact
(82.3
)
 
—

 
—

Tax reform - transition tax
3.1

 
—

 
—

Other
0.6

 
1.0

 
0.8

Effective income tax rate
(44.2
)%
 
34.0
%
 
36.1
%

On December 22, 2017, H.R.1, known as the "Tax Cuts and Jobs Act," was signed into law. The Tax Cuts and Jobs Act permanently lowered the corporate tax rate from the previous rate of 35 percent to 21 percent, effective for tax years beginning January 1, 2018. As a result of the reduction of the corporate tax rate, U.S. GAAP require companies to revalue their deferred tax assets and liabilities with resulting tax effects accounted for in the reporting period of enactment. The Company recorded a one-time $677,509 benefit primarily due to the revaluation of its U.S. deferred tax liabilities at the lower 21% U.S. federal corporate income tax rate. The Tax Cuts and Jobs Act also created a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of U.S. subsidiaries. The Company recorded a $25,143 expense related to its Puerto Rican subsidiary, SCI.

Due to the complexities involved in accounting for the enactment of the Tax Cuts and Jobs Act, SEC Staff Accounting Bulletin (SAB) 118 clarifies accounting for income taxes under ASC Topic 740, Income Taxes (ASC 740), if information is not yet available or complete and provides for up to a one-year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or buckets) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the Tax Cuts and Jobs Act being enacted.

The Company has obtained and analyzed all currently available information to record the effect of the change in tax law. However, should the Internal Revenue Service (IRS) issue further guidance or interpretation of relevant aspects of the new tax law, we may adjust these amounts.
The Tax Cuts and Jobs Act also requires a U.S. shareholder of a controlled foreign corporation (CFC) to include in income, as a deemed dividend, the global intangible low-taxed income (GILTI) of the CFC. This provision is effective for taxable years of foreign corporations beginning after December 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. The Company has elected to treat taxes due on future U.S. inclusions in taxable income under the GILTI provision as a current period expense when incurred.
The Company is a party to a tax sharing agreement requiring that the unitary state tax liability among affiliates included in unitary state tax returns be allocated using the hypothetical separate company tax calculation method. Under the hypothetical separate company method, the Company recorded a deemed contribution from affiliates in the amount of $1,304, which is included in additional paid-in capital section in the accompanying consolidated balance sheets. At December 31, 2017 and 2016, the Company had a net receivable from affiliates under the tax sharing agreement of $467 and $1,087, respectively, which was included in Related party taxes receivable in the consolidated balance sheet.
The tax effects of temporary differences between the financial reporting and income tax basis of assets and liabilities at December 31, 2017 and 2016, are as follows:
 
December 31,
2017
 
December 31,
2016
Deferred tax assets:
 
 

Debt issuance costs
$
4,181

 
$
5,001

Receivables
512,177

 
474,366

Net operating loss carryforwards
356,030

 
603,136

Equity-based compensation
14,258

 
23,042

Credit carryforwards
163,140

 
127,933

Other
32,264

 
34,257

Total gross deferred tax assets
1,082,050

 
1,267,735

Deferred tax liabilities:
 
 
 
Capitalized origination costs
(4,229
)
 
(10,804
)
Goodwill
(11,278
)
 
(15,375
)
Leased vehicles
(1,942,273
)
 
(2,421,114
)
Furniture and equipment
(7,201
)
 
(9,638
)
Derivatives
(9,966
)
 
(17,635
)
Unremitted foreign earnings
—

 
(67,720
)
Other
(925
)
 
(1,012
)
Total gross deferred tax liabilities
(1,975,872
)
 
(2,543,298
)
Valuation allowance
(3,299
)
 
(2,501
)
Net deferred tax asset (liability)
$
(897,121
)
 
$
(1,278,064
)


At December 31, 2017 and 2016, the Company’s largest deferred tax liability was leased vehicles of $1,942,273 and $2,421,114, respectively. The decrease in this liability is primarily due to the enactment of the Tax Cuts and Jobs Act of 2017.
The Company has a like-kind exchange program for the leased auto portfolio. Pursuant to the program, the Company disposes of vehicles and acquires replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, the Company exchanges through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing SC to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes, and a decrease in cash taxes in periods when the Company is not in a net operating loss (NOL) position. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. The Tax Cuts and Jobs Act permanently eliminated the ability to exchange personal property after January 1, 2018 which will result in the like-kind exchange program being discontinued in 2018.
The Company began generating qualified plug-in electric vehicle credits in 2013; the credit carryforwards will begin expiring in 2034.
At adoption of ASU 2016-09 on January 1, 2017, the cumulative-effect for previously unrecognized excess tax benefits totaled $26,552 net of tax, and was recognized, as an increase, through an adjustment in beginning retained earnings. The Company recorded excess tax deficiency, net of tax of $796 in the provision for income taxes rather than as a decrease to additional paid-in capital for the year ended December 31, 2017, on a prospective basis. Therefore, the prior period presented has not been adjusted.
    
At December 31, 2017, the Company has federal net operating loss carryforwards of $1,561,870, which may be offset against future taxable income. If not utilized in future years, these will expire in varying amounts through 2037. The Company has state net operating loss carryforwards of $432,877, which may be used against future taxable income. If not utilized in future years, these will expire in varying amounts through 2037.
As of December 31, 2017, the Company had recorded a valuation allowance for state tax net operating loss carryforwards for which it does not have a tax-planning strategy in place. A rollforward of the valuation allowance for the years ended December 31, 2017, 2016, and 2015 is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Valuation allowance, beginning of year
$
2,501

 
$
30,489

 
$
32,901

Provision (release)
798

 
(27,988
)
 
(2,412
)
Valuation allowance, end of year
$
3,299

 
$
2,501

 
$
30,489


A reconciliation of the beginning and ending balances of gross unrecognized tax benefits for each of the years ended December 31, 2017, 2016, and 2015 is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Gross unrecognized tax benefits balance, January 1
$
16,736

 
$
225

 
$
166

Additions for tax positions taken in the current year
—

 
16,606

 
—

Additions for tax positions of prior years
473

 
—

 
70

Reductions for tax positions of prior years
(589
)
 
(34
)
 
(11
)
Reductions as a result of a lapse of the applicable statute of limitations
(1,874
)
 
—

 
—

Settlements
—

 
(61
)
 
—

Gross unrecognized tax benefits balance, December 31
$
14,746

 
$
16,736

 
$
225



At December 31, 2017, 2016, and 2015, there were $14,615, $16,606 and $95, respectively, of net unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. Accrued interest and penalties associated with uncertain tax positions are recognized as a component of the income tax provision. Accrued interest and penalties of $653, $1,551, and $85 are included with the related tax liability line in the accompanying consolidated balance sheets as of December 31, 2017, 2016, 2015, respectively.
At December 31, 2017, the Company believes that it is reasonably possible that a portion of the balance of the gross unrecognized tax benefits could decrease to zero in the next twelve months due to ongoing activities with various taxing jurisdictions that the Company expects may give rise to settlements or the expiration of statute of limitations. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law, and new authoritative rulings.
The Company is subject to examination by federal and state taxing authorities. Periods subsequent to December 31, 2010 are open for audit by the IRS. The SHUSA consolidated return, of which the Company is a part through December 31, 2011, is currently under IRS examination for 2011. The Company's separate returns for 2012, 2013, and 2014 are also under IRS examination. Periods subsequent to December 31, 2008, are open for audit by various state taxing authorities.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies

The following table summarizes liabilities recorded for commitments and contingencies as of December 31, 2017 and 2016, all of which are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets:
Agreement or Legal Matter
 
Commitment or Contingency
 
December 31, 2017
 
December 31, 2016
Chrysler Agreement
 
Revenue-sharing and gain-sharing payments
 
$
6,580

 
$
10,134

Agreement with Bank of America
 
Servicer performance fee
 
8,072

 
9,797

Agreement with CBP
 
Loss-sharing payments
 
5,625

 
4,563

Other Contingencies
 
Consumer arrangements
 
6,326

 
—

Legal and regulatory proceedings
 
Aggregate legal and regulatory liabilities
 
108,800

 
39,200







Following is a description of the agreements and legal matters pursuant to which the liabilities in the preceding table were recorded.

Chrysler Agreement
Under terms of the Chrysler Agreement, the Company must make revenue sharing payments to FCA and also must make gain-sharing payments to FCA when residual gains on leased vehicles exceed a specified threshold. The Company had accrued $6,580 and $10,134 at December 31, 2017 and 2016, respectively, related to these obligations.
The Chrysler Agreement requires, among other things, that SC bears the risk of loss on loans originated pursuant to the agreement, but also that FCA shares in any residual gains and losses from consumer leases. The agreement also requires that SC maintains at least $5.0 billion in funding available for dealer inventory financing and $4.5 billion of financing dedicated to FCA retail financing. In turn, FCA must provide designated minimum threshold percentages of its subvention business to the Company. The Chrysler Agreement is subject to early termination in certain circumstances, including the failure by either party to comply with certain of their ongoing obligations under the Chrysler Agreement. These obligations include the Company's meeting specified escalating penetration rates for the first five years of the agreement. The Company has not met these penetration rates at December 31, 2017. If the Chrysler Agreement were to terminate, there could be a materially adverse impact to the Company's financial condition and results of operations.

Agreement with Bank of America
Until January 31, 2017, the Company had a flow agreement with Bank of America whereby the Company was committed to sell up to a specified amount of eligible loans to the bank each month. On July 27, 2016, the Company and Bank of America amended the flow agreement to reduce the maximum commitment to sell eligible loans each month to $300,000. On October 27, 2016, Bank of America notified the Company that it was terminating the flow agreement effective January 31, 2017, and accordingly, the flow agreement is terminated. The Company retains servicing on all sold loans and may receive or pay a servicer performance payment based on an agreed-upon formula if performance on the sold loans is better or worse, respectively, than expected performance at time of sale. Servicer performance payments are due six years from the cut-off date of each loan sale. The Company had accrued $8,072 and $9,797 at December 31, 2017 and 2016, respectively, related to this obligation.
Agreement with CBP
Until May 1, 2017, the Company sold loans to CBP under terms of a flow agreement and predecessor sale agreements. Under the flow agreement, as amended, CBP's committed purchases of Chrysler Capital prime loans were a maximum of $200,000 and a minimum of $50,000 per quarter. The Company retained servicing on the sold loans and will owe CBP a loss-sharing payment capped at 0.5% of the original pool balance if losses exceed a specified threshold, established on a pool-by-pool basis. Loss-sharing payments are due the month in which net losses exceed the established threshold of each loan sale. The Company had accrued $5,625 and $4,563 at December 31, 2017 and 2016, respectively, related to the loss-sharing obligation.
Other Contingencies
The Company is or may be subject to potential liability under various other contingent exposures. The Company had accrued $6,326 and zero at December 31, 2017 and 2016, respectively, for other miscellaneous contingencies.
Legal and regulatory proceedings

Periodically, the Company is party to, or otherwise involved in, various lawsuits and other legal proceedings that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of any such lawsuit, regulatory matter and legal proceeding, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matter. Further, it is reasonably possible that actual outcomes or losses may differ materially from the Company's current assessments and estimates and any adverse resolution of any of these matters against it could materially and adversely affect the Company's business, financial condition and results of operation.

In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation, regulatory matters and other legal proceedings when those matters present material loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation, regulatory matter or other legal proceeding develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a material loss contingency that is probable and estimable. If a determination is made during a given quarter that a material loss contingency is probable and estimable, an accrued liability is established during such quarter with respect to such loss contingency. The Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established.
 
As of December 31, 2017, the Company has accrued aggregate legal and regulatory liabilities of $108,800. Further, the Company believes that the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for legal and regulatory proceedings is up to $207,000 as of December 31, 2017. Set forth below are descriptions of the material lawsuits, regulatory matters and other legal proceedings to which the Company is subject.

Securities Class Action and Shareholder Derivative Lawsuits

•Deka Lawsuit: We are a defendant in a purported securities class action lawsuit (the Deka Lawsuit) in the United States District Court, Northern District of Texas, captioned Deka Investment GmbH et al. v. Santander Consumer USA Holdings Inc. et al., No. 3:15-cv-2129-K. The Deka Lawsuit, which was filed in August 26, 2014, was brought against the Company, certain of its current and former directors and executive officers and certain institutions that served as underwriters in the Company’s IPO on behalf of a class consisting of those who purchased or otherwise acquired our securities between January 23, 2014 and June 12, 2014. The complaint alleges, among other things, that our IPO registration statement and prospectus and certain subsequent public disclosures violated federal securities laws by containing misleading statements concerning the Company’s ability to pay dividends and the adequacy of the Company’s compliance systems and oversight. On December 18, 2015, the Company and the individual defendants moved to dismiss the lawsuit, which was denied. On December 2, 2016, the plaintiffs moved to certify the proposed classes. On July 11, 2017, the court entered an order staying the Deka Lawsuit pending the resolution of the appeal of a class certification order in In re Cobalt Int’l Energy, Inc. Sec. Litig., No. H-14-3428, 2017 U.S. Dist. LEXIS 91938 (S.D. Tex. June 15, 2017).

•Feldman Lawsuit: On October 15, 2015, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Feldman v. Jason A. Kulas, et al., C.A. No. 11614 (the Feldman Lawsuit). The Feldman Lawsuit names as defendants current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the current and former director defendants breached their fiduciary duties in connection with overseeing the Company’s nonprime vehicle lending practices, resulting in harm to the Company. The complaint seeks unspecified damages and equitable relief. On December 29, 2015, the Feldman Lawsuit was stayed pending the resolution of the Deka Lawsuit.

•Parmelee Lawsuit: We are a defendant in two purported securities class actions lawsuits that were filed in March and April 2016 in the United States District Court, Northern District of Texas. The lawsuits were consolidated and are now captioned Parmelee v. Santander Consumer USA Holdings Inc. et al., No. 3:16-cv-783. The lawsuits were filed against the Company and certain of its current and former directors and executive officers on behalf of a class consisting of all those who purchased or otherwise acquired our securities between February 3, 2015 and March 15, 2016. The complaint alleges that the Company violated federal securities laws by making false or misleading statements, as well as failing to disclose material adverse facts, in its periodic reports filed under the Exchange Act and certain other public disclosures, in connection with, among other things, the Company’s change in its methodology for estimating its allowance for credit losses and correction of such allowance for prior periods. On March 14, 2017, the Company filed a motion to dismiss the lawsuit. On January 3, 2018, the court granted the Company’s motion as to defendant Ismail Dawood (the Company’s former Chief Financial Officer) and denied the motion as to all other defendants.

•Jackie888 Lawsuit: On September 27, 2016, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Jackie888, Inc. v. Jason Kulas, et al., C.A. # 12775 (the Jackie888 Lawsuit). The Jackie888 Lawsuit names as defendants current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the defendants breached their fiduciary duties in connection with the Company’s accounting practices and controls. The complaint seeks unspecified damages and equitable relief. On April 13, 2017, the Jackie888 Lawsuit was stayed pending the resolution of the Deka Lawsuit.

Consumer Lending Cases

The Company is also party to various lawsuits pending in federal and state courts alleging violations of state and federal consumer lending laws, including, without limitation, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Truth in Lending Act, wrongful repossession laws, usury laws and laws related to unfair and deceptive acts or practices. In general, these cases seek damages and equitable and/or other relief.

Regulatory Proceedings

The Company is party to, or is periodically otherwise involved in, reviews, investigations, examinations and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the FRBB, the CFPB, the DOJ, the SEC, the FTC and various state regulatory and enforcement agencies.

Currently, such matters include, but are not limited to, the following:

•
We received a civil subpoena from the DOJ, under FIRREA, requesting the production of documents and communications that, among other things, relate to the underwriting and securitization of nonprime vehicle loans, and also from the SEC requesting the production of documents and communications that, among other things, relate to the underwriting and securitization of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the subpoenas and has otherwise cooperated with the DOJ and SEC with respect to these matters.

•
In October 2014, May 2015, July 2015 and February 2017, the Company received subpoenas and/or Civil Investigative Demands (CIDs) from the Attorneys General of California, Illinois, Oregon, New Jersey, Maryland and Washington under the authority of each state's consumer protection statutes. The Company has been informed that these states will serve as an executive committee on behalf of a group of 30 state Attorneys General. The subpoenas and/or CIDs from the executive committee states contain broad requests for information and the production of documents related to the Company’s underwriting, securitization, servicing and collection of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the Attorneys General with respect to this matter.

•
In July 2015, the CFPB notified the Company that it had referred to the DOJ certain alleged violations by the Company of the ECOA regarding statistical disparities in markups charged by vehicle dealers to protected groups on loans originated by those dealers and purchased by the Company and the treatment of certain types of income in the Company’s underwriting process. In September 2015, the DOJ notified the Company that it has initiated, based on the referral from the CFPB, an investigation under the ECOA of the Company’s pricing of vehicle loans. The Company has resolved the investigation pursuant to a confidential agreement with the CFPB.

•
In February 2016, the CFPB issued a supervisory letter relating to its investigation of the Company’s compliance systems, Board and senior management oversight, consumer complaint handling, marketing of GAP coverage and loan deferral disclosure practices. The Company subsequently received a series of CIDs from the CFPB requesting information and testimony regarding the Company’s marketing of GAP coverage and loan deferral disclosure practices. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the CFPB with respect to this matter.

•
In August 2017, we received a CID from the CFPB. The stated purpose of the CID is to determine whether the Company has complied with the Fair Credit Reporting Act and related regulations. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the CFPB with respect to this matter.

These matters are ongoing and could in the future result in the imposition of damages, fines or other penalties. No assurance can be given that the ultimate outcome of these matters or any resulting proceedings would not materially and adversely affect the Company’s business, financial condition and results of operations.

•2017 Written Agreement with the Federal Reserve
On March 21, 2017, the Company and SHUSA entered into a written agreement (the 2017 Written Agreement) with the FRBB. Under the terms of the 2017 Written Agreement, the Company is required to enhance its compliance risk management program, board oversight of risk management and senior management oversight of risk management, and SHUSA is required to enhance its oversight of SC’s management and operations.

•Mississippi Attorney General Lawsuit

On January 10, 2017, the Attorney General of Mississippi filed a lawsuit against the Company in the Chancery Court of the First Judicial District of Hinds County, Mississippi, captioned State of Mississippi ex rel. Jim Hood, Attorney General of the State of Mississippi v. Santander Consumer USA Inc., C.A. # G-2017-28. The complaint alleges that the Company engaged in unfair and deceptive business practices to induce Mississippi consumers to apply for loans that they could not afford. The complaint asserts claims under the Mississippi Consumer Protection Act (the MCPA) and seeks unspecified civil penalties, equitable relief and other relief. On March 31, 2017, the Company filed motions to dismiss the lawsuit and subsequently filed a motion to stay the lawsuit pending the resolution of an interlocutory appeal relating to the MCPA before the Mississippi Supreme Court in Purdue Pharma, L.P., et al. v. State, No. 2017-IA- 00300-SCT. On September 25, 2017, the court granted the motion to stay and ordered a stay of all proceedings, excluding discovery and final briefing on motions to dismiss.

•SCRA Consent Order

In February 2015, the Company entered into a consent order with the DOJ, approved by the United States District Court for the Northern District of Texas, that resolves the DOJ’s claims against the Company that certain of its repossession and collection activities during the period of time between January 2008 and February 2013 violated the SCRA. The consent order requires the Company to pay a civil fine in the amount of $55, as well as at least $9,360 to affected servicemembers consisting of $10 per servicemember plus compensation for any lost equity (with interest) for each repossession by the Company, and $5 per servicemember for each instance where the Company sought to collect repossession-related fees on accounts where a repossession was conducted by a prior account holder. The consent order also provides for monitoring by the DOJ for the Company’s SCRA compliance for a period of five years and requires the Company to undertake certain additional remedial measures.
Agreements

The Company is party to agreements with Bluestem whereby the Company is committed to purchase certain new advances on personal revolving financings receivables, along with existing balances on accounts with new advances, originated by Bluestem for an initial term ending in April 2020 and renewable through April 2022 at Bluestem's option. As of December 31, 2017, the total unused credit available to customers was $3.9 billion. In 2017, the Company purchased $1.2 billion of receivables, out of the $4.0 billion unused credit available to customers as of December 31, 2016. In addition, the Company purchased $263,831 of receivables related to newly opened customer accounts in 2017. Each customer account generated under the agreements generally is approved with a credit limit higher than the amount of the initial purchase, with each subsequent purchase automatically approved as long as it does not cause the account to exceed its limit and the customer is in good standing. As of December 31, 2017 and 2016, the Company was obligated to purchase $11,539 and $12,634, respectively, in receivables that had been originated by Bluestem but not yet purchased by the Company. The Company also is required to make a profit-sharing payment to Bluestem each month if performance exceeds a specified return threshold. During the year ended December 31, 2015, the Company and Bluestem executed an amendment that, among other provisions, increased the profit-sharing percentage retained by the Company, gives the retailer the right to repurchase up to 9.99% of the existing portfolio at any time during the term of the agreement, and, provided that repurchase right is exercised, gives Bluestem the right to retain up to 20% of new accounts subsequently originated.
Under terms of an application transfer agreement with Nissan, the Company has the first opportunity to review for its own portfolio any credit applications turned down by the Nissan's captive finance company. The agreement does not require the Company to originate any loans, but for each loan originated the Company will pay the Nissan a referral fee.
The Company also has agreements with SBNA to service recreational and marine vehicle portfolios. These agreements call for a periodic retroactive adjustment, based on cumulative return performance, of the servicing fee rate to inception of the contract. Adjustments for the years ended December 31, 2017 and 2016 totaled a net adjustment of zero and net upward adjustment of $836, respectively.

In connection with the sale of retail installment contracts through securitizations and other sales, the Company has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require the Company to repurchase loans previously sold to on- or off-balance sheet Trusts or other third parties. As of December 31, 2017, there were no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for the Company's asset-backed securities or other sales. In the opinion of management, the potential exposure of other recourse obligations related to the Company’s retail installment contract sales agreements is not expected to have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows.
Santander has provided guarantees on the covenants, agreements, and obligations of the Company under the governing documents of its warehouse lines and privately issued amortizing notes. These guarantees are limited to the obligations of the Company as servicer.
The Company provided SBNA with the first right to review and approve consumer vehicle lease applications, subject to volume constraints, under terms of a flow agreement that was terminated on May 9, 2015. The Company has indemnified SBNA for potential credit and residual losses on $48,226 of leases that had been originated by SBNA under this program but were subsequently determined not to meet SBNA’s underwriting requirements. This indemnification agreement is supported by an equal amount of cash collateral posted by the Company in an SBNA bank account. The collateral account balance is included in restricted cash in the Company's consolidated balance sheets. As of December 31, 2017, the balance in the collateral account is $18. In January 2015, the Company additionally agreed to indemnify SBNA for residual losses, up to a cap, on certain leases originated under the flow agreement between September 24, 2014 and May 9, 2015 for which SBNA and the Company had differing residual value expectations at lease inception. As of December 31, 2017 and 2016, the Company had a recorded liability of $2,206 and $2,691, respectively, related to the residual losses covered under the agreement.
On March 31, 2015, the Company executed a forward flow asset sale agreement with a third party under terms of which the Company committed to sell charged off loan receivables in bankruptcy status on a quarterly basis until sales total at least $200,000 in proceeds. On June 29, 2015, the Company and the third party executed an amendment to the forward flow asset sale agreement, which increased the committed sales of charged off loan receivables in bankruptcy status to $275,000. On September 30, 2015, the Company and the third party executed a second amendment to the forward flow asset sale agreement, which required sales to occur quarterly. On November 13, 2015, the Company and the third party executed a third amendment to the forward flow asset sale agreement, which increased the committed sales of charged off loan receivables in bankruptcy status to $350,000. However, any sale more than $275,000 is subject to a market price check. As of December 31, 2017 and 2016, the remaining aggregate commitment was $98,858 and $166,167, respectively.

Leases

The Company has entered into various operating leases, primarily for office space and computer equipment. Lease expense incurred totaled $10,901, $11,328 and $8,965 for the years ended December 31, 2017, 2016, and 2015, respectively. The remaining obligations under lease commitments at December 31, 2017 are as follows:

2018
$
12,642

2019
12,771

2020
13,032

2021
12,907

2022
12,282

Thereafter
44,663

Total
$
108,297

Related-Party Transactions
Related-Party Transactions
Related-Party Transactions

Related-party transactions not otherwise disclosed in these footnotes to the consolidated financial statements include the following:
Interest expense, including unused fees, for affiliate debt facilities for the years ended December 31, 2017, 2016, and 2015 was as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Line of credit agreement with Santander - New York Branch (Note 6)
$
51,735

 
$
69,877

 
$
96,753

Debt facilities with SHUSA (Note 6)
90,988

 
24,050

 
5,299


Accrued interest for affiliate debt facilities at December 31, 2017 and 2016, were comprised as follows:
 
December 31, 2017
 
December 31, 2016
Line of credit agreement with Santander - New York Branch (Note 6)
$
1,435

 
$
6,297

Debt facilities with SHUSA (Note 6)
18,670

 
1,737



In August 2015, under a new agreement with Santander, the Company agreed to begin incurring a fee of 12.5 basis points (per annum) on certain warehouse facilities, as they renew, for which Santander provides a guarantee of the Company's servicing obligations. The Company recognized guarantee fee expense of $5,979 and $6,402 for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, the Company had $7,598 and $1,620 of fees payable to Santander under this arrangement.
Derivatives
The Company has derivative financial instruments with Santander and affiliates with outstanding notional amounts of $3,734,400 and $7,259,400 at December 31, 2017 and 2016, respectively (Note 8). The Company had a collateral overage on derivative liabilities with Santander and affiliates of $1,622 and $15,092 at December 31, 2017 and 2016, respectively. Interest and mark-to-market adjustments on these agreements includes amounts totaling $1,333, $16,078, and $58,019 for the years ended December 31, 2017, 2016, and 2015, respectively.
Originations
The Company is required to permit SBNA a first right to review and assess Chrysler Capital dealer lending opportunities, and SBNA is required to pay the Company a relationship management fee based upon the performance and yields of Chrysler Capital dealer loans held by SBNA. On April 15, 2016, the relationship management fee was replaced with an origination fee and annual renewal fee for each loan. The Company recognized zero, $419 and $6,976 of relationship management fee income for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017 and 2016, the Company had relationship management fees receivable from SBNA of zero. The Company recognized $1,660 and $3,314 of origination fee income for the years ended December 31, 2017 and 2016, respectively, and $1,476 and $610 of renewal fee income for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, the Company had origination and renewal fees receivable from SBNA of $369 and $552. These agreements also transferred the servicing of all Chrysler Capital receivables from dealers, including receivables held by SBNA and by SC, from SC to SBNA. Servicing fee expense under this new agreement totaled $97, $110 and $253 for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017 and 2016, the Company had $9 and $21, respectively, of servicing fees payable to SBNA. The Company may provide advance funding for dealer loans originated by SBNA, which is reimbursed to the Company by SBNA. The Company had no outstanding receivable from SBNA as of December 31, 2017 or 2016 for such advances.
Under the agreement with SBNA, the Company may originate retail consumer loans in connection with sales of vehicles that are collateral held against floorplan loans by SBNA. Upon origination, the Company remits payment to SBNA, who settles the transaction with the dealer. The Company owed SBNA $4,481 and $2,761 related to such originations as of December 31, 2017 and 2016, respectively.
The Company received a $9,000 referral fee in connection with the original arrangement and was amortizing the fee into income over the ten-year term of the agreement. The remaining balance of the referral fee SBNA paid to the Company in connection with the original sourcing and servicing agreement is considered a referral fee in connection with the new agreements and will continue to be amortized into income through the July 1, 2022 termination date of the new agreements. As of December 31, 2017 and 2016, the unamortized fee balance was $4,950 and $5,850, respectively. The Company recognized $900, $900, and $900 of income related to the referral fee for the years ended December 31, 2017, 2016, and 2015, respectively.
The Company also has agreements with SBNA to service auto retail installment contracts and recreational and marine vehicle portfolios. Servicing fee income recognized under these agreements totaled $3,381, $5,154, and $2,500 for the years ended December 31, 2017, 2016, and 2015, respectively. Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of December 31, 2017 and 2016 is as follows:
 
December 31,
2017
 
December 31,
2016
Total serviced portfolio
$
400,788

 
$
531,117

Cash collections due to owner
11,870

 
21,427

Servicing fees receivable
839

 
1,123



During the year ended December 31, 2017, the Company sold certain receivables previously acquired with deteriorated credit quality to SBNA. These loans were sold with a gain of $35,927 recognized in investment losses, net in the consolidated statements of income. The Company will continue to perform the servicing of these assets and has recorded $548 of servicing fee income from SBNA during the period ended December 31, 2017. There were no such sales of receivables previously acquired with deteriorated credit quality to SBNA during 2016 and 2015.

Other information on the serviced receivables for SBNA as of December 31, 2017 is as follows:
 
December 31,
2017
Total serviced portfolio
$
121,431

Cash collections due to owner
436

Servicing fees receivable
104



Beginning in 2016, the Company agreed to pay SBNA a market rate-based fee expense for payments made at SBNA retail branch locations for accounts originated/serviced by the Company and the costs associated with modifying the Advanced Teller platform to the payments. The Company incurred $225 and $473 for these services during the years ended December 31, 2017 and 2016, respectively.

Beginning in 2018, the Company has agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from Chrysler dealers. In addition, the Company has agreed to perform the servicing for any loans originated on SBNA’s behalf.
Flow Agreements
Until May 9, 2015, the Company was party to a flow agreement with SBNA whereby SBNA had the first right to review and approve Chrysler Capital consumer vehicle lease applications. The Company could review any applications declined by SBNA for the Company’s own portfolio. The Company received an origination fee on all leases originated under this agreement and continues to service these vehicles leases. Pursuant to the Chrysler Agreement, the Company pays FCA on behalf of SBNA for residual gains and losses on the flowed leases. Origination fee income recognized under the agreement totaled zero, zero and $8,431 for the years ended December 31, 2017, 2016 and 2015, respectively. Servicing fee income recognized on leases serviced for SBNA totaled $4,894, $7,707 and $6,977 for the years ended December 31, 2017, 2016 and 2015, respectively.
Other information on the consumer vehicle lease portfolio serviced for SBNA as of December 31, 2017 and 2016 is as follows:
 
December 31,
2017
 
December 31,
2016
Total serviced portfolio
$
321,629

 
$
1,297,317

Cash collections due to owner
—

 
78

Origination and servicing fees receivable
2,067

 
926

Revenue share reimbursement receivable
1,548

 
612


On June 30, 2014, the Company entered into an indemnification agreement with SBNA whereby the Company indemnifies SBNA for any credit or residual losses on a pool of $48,226 in leases originated under the flow agreement. The covered leases are non-conforming units because they did not meet SBNA’s credit criteria at origination. At the time of the agreement, the Company established a $48,226 collateral account with SBNA in restricted cash that will be released over time to SBNA, in the case of losses, and the Company, in the case of payments and sale proceeds. As of December 31, 2017 and 2016, the balance in the collateral account was $18 and $11,329, respectively. For the years ended December 31, 2017, 2016, and 2015, the Company recognized indemnification expense of $272, zero, and 3,142, respectively.

Also, in January 2015, the Company agreed to indemnify SBNA for residual losses, up to a cap, on certain leases originated under the Company's prior flow agreement with SBNA between September 24, 2014 and May 9, 2015 for which SBNA and the Company had differing residual value expectations at lease inception. At the time of the agreement, the Company established a collateral account held by SBNA to cover the expected losses, as of December 31, 2017 and 2016, the balance in the collateral account was $2,210 and $2,706, respectively. As of December 31, 2017 and 2016, the Company had a recorded liability of $2,206 and $2,691 respectively, related to the residual losses covered under the agreement.
On September 16, 2014, the Company sold $18,227 of receivables from dealers to SBNA, resulting in a gain of $347. The Company was entitled to additional proceeds on this sale totaling $694 if certain conditions, including continued existence and performance of the sold loans, are met at the first and second anniversaries of the sale. At the first and second anniversary dates of the sale, which occurred during the years ended December 31, 2015 and 2016, respectively, the Company received $347 and $347, respectively, in additional proceeds related to the sale due to the satisfaction of conditions specified at the time of the sale.
Securitizations
On March 29, 2017, the Company entered into a Master Securities Purchase Agreement (MSPA) with Santander, whereby the Company has the option to sell a contractually determined amount of eligible prime loans to Santander, through the SPAIN securitization platform, for a term ending in December 2018. The Company will provide servicing on all loans originated under the MSPA. As of December 31, 2017, the Company sold $1,236,331 of loans at fair value under this MSPA. Under a separate securities purchase agreement, the Company sold $1,347,010 of prime loans at fair value to Santander during the year ended December 31, 2017. A total loss of $13,026 was recognized for the year ended December 31, 2017, which is included in investment losses, net in the consolidated statements of income. Servicing fee income recognized totaled $12,346 for the year ended December 31, 2017. The Company had $12,961 of collections due to Santander as of December 31, 2017.
Employment Agreements
On July 2, 2015, the Company announced the departure of Thomas G. Dundon from his roles as Chairman of the Board and CEO of the Company, effective as of the close of business on July 2, 2015. In connection with his departure, and subject to the terms and conditions of his Employment Agreement, including Mr. Dundon's execution of a release of claims against the Company, Mr. Dundon became entitled to receive certain payments and benefits under his Employment Agreement.
Mr. Dundon also entered into a separation agreement (the Separation Agreement) with the Company providing Mr. Dundon with certain other payments and benefits. Mr. Dundon, the Company, DDFS LLC (an affiliate of Mr. Dundon), SHUSA and Santander also entered into a Second Amendment to the Shareholders Agreement (the Second Amendment). Pursuant to the Second Amendment, the parties agreed that the price per share to be paid in the event that a call or put option was exercised under the Shareholders Agreement with respect to the shares of Company Common Stock owned by DDFS LLC would be $26.83.
Pursuant to the Separation Agreement, SHUSA was deemed to have delivered as of July 3, 2015 an irrevocable notice to exercise a call option under the Shareholders Agreement with respect to all 34,598,506 shares of the Company's Common Stock owned by DDFS LLC, subject to the receipt of required bank regulatory approvals and any other approvals required by law (the Call Transaction). The parties to the Separation Agreement agreed that interest would accrue on the call price, commencing after October 15, 2015 (the Call End Date). In addition, pursuant to the Separation Agreement, DDFS LLC and Santander entered into an amendment to the Amended and Restated Loan Agreement, dated as of July 16, 2014, between DDFS LLC and Santander (the Loan Agreement). The Loan Agreement provided for a $300,000 revolving loan which, as of the maturity date, had a $290,000 unpaid principal balance.
In the amendment to the Loan Agreement, among other things, the parties agreed that the outstanding balance under the Loan Agreement would become due and payable upon the consummation of the Call Transaction and that the amount otherwise payable to DDFS LLC pursuant the Call Transaction would be reduced by the amount outstanding under the Loan Agreement, including principal, interest and fees, and further that any net cash proceeds received by DDFS LLC on account of sales of Company Common Stock after the Call End Date would be applied to the outstanding balance under the Loan Agreement.

On August 31, 2016, Mr. Dundon, DDFS LLC, the Company, Santander and SHUSA entered into a Second Amendment to the Separation Agreement, and Mr. Dundon, DDFS LLC, Santander and SHUSA entered into a Third Amendment to the Shareholders Agreement, whereby the price per share to be paid to DDFS LLC in connection with the Call Transaction was reduced from $26.83 to $26.17.

On November 15, 2017, Mr. Dundon entered into a Settlement Agreement with Santander, SHUSA, SC, SC Illinois, and DDFS LLC (the Settlement Agreement) pursuant to which Mr. Dundon received cash payments from the Company totaling $66,115, of which $52,799 was paid in satisfaction of Mr. Dundon’s previous exercise of certain stock options that was the subject of the Separation Agreement (see Note 16). The $66,115 cash payment is recorded as compensation expense in the Company’s consolidated statement of income and comprehensive income. The Settlement Agreement also modifies the terms of certain equity-based awards previously granted to Mr. Dundon. In addition, pursuant to the Settlement Agreement, the parties agreed to consummate the Call Transaction. The Call Transaction was consummated on November 15, 2017, pursuant to which Santander purchased the 34,598,506 shares of the Company's Common Stock owned by DDFS LLC for an aggregate price of $941,945, representing the aggregate of the previously agreed price per share of the Company's Common Stock of $26.17, as set forth in the Third Amendment, interest accruing after the Call End Date. The net proceeds to DDFS LLC from the Call Transaction were reduced by all amounts outstanding and/or accrued under the Loan Agreement, including principal, interest (including default interest), and fees, through the closing of the Call Transaction, which totaled $294,501.
CEO compensation
On August 28, 2017, the Board of Directors of the Company announced that Scott Powell would succeed Jason Kulas as President and CEO, effective immediately. During the year 2017, the Company paid $795 to Mr. Powell as its share of compensation expense based on time allocation between the Company and SHUSA.

Other related-party transactions
As of December 31, 2017, Mr. Kulas and Mr. Dundon, both being former members of the Board and CEOs of the Company, along with a Santander employee who was a member of the SC Board until the second quarter of 2015, each had a minority equity investment in a property in which the Company leases approximately 373,000 square feet as its corporate headquarters. During the years ended December 31, 2017, 2016, and 2015, the Company recorded $4,970, $4,945 and $4,612, respectively, in lease expenses on this property. The Company subleases approximately 13,000 square feet of its corporate office space to SBNA. For the years ended December 31, 2017, 2016, and 2015, the Company recorded $163, $161 and $204, respectively, in sublease revenue on this property. Future minimum lease payments over the remainder of the 9-year term of the lease, which extends through 2026, total $62,381.
The Company's wholly-owned subsidiary, Santander Consumer International Puerto Rico, LLC (SCI), opened deposit accounts with Banco Santander Puerto Rico, an affiliated entity. As of December 31, 2017 and 2016, SCI had cash of $106,596 and $98,836, respectively, on deposit with Banco Santander Puerto Rico.
During 2015, Santander Investment Securities Inc. (SIS), an affiliated entity, purchased a portion of the Class B notes of SDART 2013-3, a consolidated securitization Trust, with a principal balance of $725. As of December 31, 2017 and 2016, the unpaid note balance of the Class B notes owned by SIS was zero and zero, respectively. In addition, SIS purchased an investment of $2,000 in the Class A3 notes of CCART 2013-A, a securitization Trust formed by the Company in 2013. Although CCART 2013-A is not a consolidated entity of the Company, the Company continues to service the assets of the associated trust. SIS also serves as co-manager on certain of the Company’s securitizations. Amounts paid to SIS as co-manager for the years ended December 31, 2017, 2016, and 2015 totaled $1,359, $1,149, and $550, respectively, and are included in debt issuance costs in the accompanying consolidated financial statements.
Produban Servicios Informaticos Generales S.L., a Santander affiliate, is under contract with the Company to provide professional services, telecommunications, and internal and/or external applications. Expenses incurred, which are included as a component of other operating costs in the accompanying consolidated statements of income, totaled zero, $93, and $161 for the years ended December 31, 2017, 2016, and 2015, respectively.
The Company is party to a Master Service Agreement (MSA) with a company in which it has a cost method investment and holds a warrant to increase its ownership if certain vesting conditions are satisfied. The MSA enables SC to review point-of-sale credit applications of retail store customers. Under terms of the MSA, the Company originated personal revolving loans of zero, zero, and $23,504 during the years ended December 31, 2017, 2016, and 2015, respectively. During the year ended December 31, 2015, the Company fully impaired its cost method investment in this entity and recorded a loss of $6,000 in investment gains (losses), net in the accompanying consolidated statement of income and comprehensive income. Effective August 17, 2016, the Company ceased funding new originations from all of the retailers for which it reviews credit applications under this MSA.

Beginning in 2017, the Company and SBNA entered into a Credit Card Agreement (Card Agreement) whereby SBNA will provide credit card services for travel and related business expenses and for vendor payments. This service is at zero cost but generate rebates based on purchases made. As at December 31, 2017, the activities associated with the program were insignificant.

Effective April 1, 2017, the Company contracted Aquanima, a Santander affiliate, to provide procurement services. Expenses incurred totaled $637 for the year ended December 31, 2017.

The Company partners with SHUSA to place Cyber Liability Insurance in which participating national entities share $150 million aggregate limits. The Company repays SHUSA for the Company’s equitably allocated portion of insurance premiums and fees. Expenses incurred totaled $312 and $294 for the year ended December 31, 2017 and December 31, 2016, respectively.
Supplemental Cash Flow Information
Supplemental Cash Flow Information
Supplemental Cash Flow Information

Supplemental cash flow information for the year ended December 31, 2017 and December 31, 2016, was as follows:

For the Year Ended December 31,

2017
 
2016
 
2015
Cash paid (received) during the year for:
 
 

 

     Interest
$
942,551

 
$
796,682

 
$
635,558

     Income taxes
1,856

 
(180,323
)
 
(190,663
)
Noncash investing and financing transactions:
 
 

 

Transfer of revolving credit facilities to secured structured financings
495,991

 
146,864

 
193,180

Transfer of personal loans to held for sale
—

 
—

 
1,883,251



During the year ended December 31, 2015, the Company deconsolidated certain Trusts from the consolidated balance sheet following the sale of its retained interests in the respective Trusts (Note 7). Upon deconsolidation, the Company derecognized $1,919,171 in assets, including $170,144 in restricted cash, and $1,183,792 in notes payable and other liabilities of the Trusts.
Computation of Basic and Diluted Earnings per Common Share
Computation of Basic and Diluted Earnings per Common Share
Computation of Basic and Diluted Earnings per Common Share

Earnings per common share (EPS) is computed using the two-class method required for participating securities. Restricted stock awards are considered to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of a declaration of a dividend on the Company’s common shares.
 
The calculation of earnings per share excludes 367,880, 1,387,656, and 926,242 employee stock options and 626,551, 1,106,187, and zero RSUs for the years ended December 31, 2017, 2016, and 2015, respectively, as the effect of those securities would be anti-dilutive. The following table represents EPS numbers for the years ended December 31, 2017, 2016 and 2015:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Earnings per common share
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
1,187,606

 
$
766,466

 
$
824,040

Weighted average number of common shares outstanding before restricted participating shares (in thousands)
359,614

 
358,032

 
354,636

Weighted average number of participating restricted common shares outstanding (in thousands)
—

 
249

 
467

Weighted average number of common shares outstanding (in thousands)
359,614

 
358,281

 
355,103

Earnings per common share
$
3.30

 
$
2.14

 
$
2.32

 
 
 
 
 
 
Earnings per common share - assuming dilution
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
1,187,606

 
$
766,466

 
$
824,040

Weighted average number of common shares outstanding (in thousands)
359,614

 
358,281

 
355,103

Effect of employee stock-based awards (in thousands)
678

 
797

 
1,060

Weighted average number of common shares outstanding - assuming dilution (in thousands)
360,292

 
359,078

 
356,163

Earnings per common share - assuming dilution
$
3.30

 
$
2.13

 
$
2.31

Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments

Fair value measurement requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that can be accessed as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3 inputs are those that are unobservable for the asset or liability and are used to measure fair value to the extent relevant observable inputs are not available.
Financial Instruments Disclosed, But Not Carried, At Fair Value
The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2017 and December 31, 2016, and the level within the fair value hierarchy:
 
December 31, 2017
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (a)
$
527,805

 
$
527,805

 
$
527,805

 
$
—

 
$
—

Finance receivables held for investment, net (b)
22,284,068

 
24,340,739

 
—

 
—

 
24,340,739

Restricted cash (a)
2,553,902

 
2,553,902

 
2,553,902

 
—

 
—

Total
$
25,365,775

 
$
27,422,446

 
$
3,081,707

 
$
—

 
$
24,340,739

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable — credit facilities (c)
$
4,848,316

 
$
4,848,316

 
$
—

 
$
—

 
$
4,848,316

Notes payable — secured structured financings (d)
22,557,895

 
22,688,381

 
—

 
12,275,408

 
10,412,973

Notes payable — related party (e)
3,754,223

 
3,754,223

 
—

 
—

 
3,754,223

Total
$
31,160,434

 
$
31,290,920

 
$
—

 
$
12,275,408

 
$
19,015,512

 
December 31, 2016
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (a)
$
160,180

 
$
160,180

 
$
160,180

 
$
—

 
$
—

Finance receivables held for investment, net (b)
23,456,506

 
24,630,599

 


 


 
24,630,599

Restricted cash (a)
2,757,299

 
2,757,299

 
2,757,299

 
—

 
—

Total
$
26,373,985

 
$
27,548,078

 
$
2,917,479

 
$
—

 
$
24,630,599

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable — credit facilities (c)
$
6,739,817

 
$
6,739,817

 
$
—

 
$
—

 
$
6,739,817

Notes payable — secured structured financings (d)
21,608,889

 
21,712,691

 
—

 
13,530,045

 
8,182,646

Notes payable — related party (e)
2,975,000

 
2,975,000

 
—

 
—

 
2,975,000

Total
$
31,323,706

 
$
31,427,508

 
$
—

 
$
13,530,045

 
$
17,897,463



(a)
Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates.
(b)
Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. The estimated fair value for the underlying financial instruments are determined as follows:
•
Retail installment contracts held for investment, net — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations.
•
Receivables from dealers held for investment and Capital lease receivables, net — Receivables from dealers held for investment and capital lease receivables are carried at amortized cost, net of credit loss allowance and gross investments, net of unearned income and allowance for lease losses, respectively. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements.
(c)
Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company.
(d)
Notes payable — secured structured financings — The estimated fair value of notes payable related to public securitizations is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of discounted cash flow analysis and market observable spreads for similar liabilities in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs.
(e)
Notes payable — related party — The carrying amount of notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company.
Financial Instruments Measured At Fair Value On A Recurring Basis
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016, and are categorized using the fair value hierarchy:
 
Fair Value Measurements at December 31, 2017
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other assets — trading interest rate caps (a)
$
129,718

 
$
—

 
$
129,718

 
$
—

Due from affiliates — trading interest rate caps (a)
6,112

 
—

 
6,112

 
—

Other assets — cash flow hedging interest rate swaps (a)
39,036

 
—

 
39,036

 
—

Due from affiliates — cash flow hedging interest rate swaps (a)
6,950

 
—

 
6,950

 
—

Other assets — trading interest rate swaps (a)
7,925

 
—

 
7,925

 
—

Due from affiliates — trading interest rate swaps (a)
1,671

 
—

 
1,671

 
—

Other assets — trading options for interest rate caps (a)

20,075

 
—

 
20,075

 
—

Due from affiliates — trading options for interest rate caps (a)
12,090

 
—

 
12,090

 
—

Other liabilities — trading options for interest rate caps (a)
129,712

 
—

 
129,712

 
—

Due to affiliates — trading options for interest rate caps (a)
6,112

 
—

 
6,112

 
—

Other liabilities — trading interest rate caps (a)
20,019

 
—

 
20,019

 
—

Due to affiliates — trading interest rate caps (a)
12,090

 
—

 
12,090

 
—

Retail installment contracts acquired individually (c)
22,124

 
—

 
—

 
22,124


 
Fair Value Measurements at December 31, 2016
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other assets — trading interest rate caps (a)
$
68,676

 
$
—

 
$
68,676

 
$
—

Due from affiliates — trading interest rate caps (a)
7,593

 
—

 
7,593

 
—

Other assets — cash flow hedging interest rate swaps (a)
41,471

 
—

 
41,471

 
—

Due from affiliates — cash flow hedging interest rate swaps (a)
4,080

 
—

 
4,080

 
—

Other assets — trading interest rate swaps (a)
783

 
—

 
783

 
—

Due from affiliates — trading interest rate swaps (a)
1,292

 
—

 
1,292

 
—

Other liabilities — trading options for interest rate caps (a)
68,688

 
—

 
68,688

 
—

Due to affiliates — trading options for interest rate caps (a)
7,593

 
—

 
7,593

 
—

Other liabilities — cash flow hedging interest rate swaps (a)
482

 
—

 
482

 
—

Due to affiliates — cash flow hedging interest rate swaps (a)
451

 
—

 
451

 
—

Other liabilities — trading interest rate swaps (a)
42

 
—

 
42

 
—

Due to affiliates — trading interest rate swaps (a)
95

 
—

 
95

 
—

Other liabilities — total return settlement (a,b)
30,618

 
—

 
—

 
30,618

Retail installment contracts acquired individually (c)
24,495

 
—

 
—

 
24,495



(a)
The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 8).
(b)
The significant unobservable inputs for total return settlement derivative contracts used in the fair value measurement of the Company's liabilities are discount percentages, which are based on comparable financial instruments.
(c)
For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the consolidated statement of income.
The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 for the years ended December 31, 2017, 2016 and 2015:
 
Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
Fair value, beginning of year
$
24,495

 
$
6,770

 
$
—

Additions / issuances
21,672

 
36,623

 
6,770

Net collection activities
(28,598
)
 
(18,850
)
 
—

Loans sold
—

 
(48
)
 
—

Gains recognized in earnings
4,555

 
—

 
—

Fair value, end of year
$
22,124

 
$
24,495

 
$
6,770


The following table presents the changes in the total return settlement balance, which is classified as Level 3, for the years ended December 31, 2017, 2016, and 2015:
 
Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
Fair value, beginning of year
$
30,618

 
$
53,432

 
$
48,893

Losses recognized in earnings
505

 
4,365

 
10,973

Settlements
(31,123
)
 
(27,179
)
 
(6,434
)
Fair value, end of year
$
—

 
$
30,618

 
$
53,432


The Company did not have any transfers between Levels 1 and 2 during the years ended December 31, 2017, 2016, and 2015. There were no amounts transferred into or out of Level 3 during the years ended December 31, 2017, 2016, and 2015.
Financial Instruments Measured At Fair Value On A Nonrecurring Basis
The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at December 31, 2017 and 2016, and are categorized using the fair value hierarchy:
 
Fair Value Measurements at December 31, 2017
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Lower of cost or fair value expense for the year ended December 31, 2017
Other assets — vehicles (a)
$
293,546

 
$
—

 
$
293,546

 
$
—

 
$
—

Personal loans held for sale (b)
1,062,089

 
—

 
—

 
1,062,089

 
374,374

Retail installment contracts held for sale (c)
1,148,332

 
—

 
—

 
1,148,332


11,686

Auto loans impaired due to bankruptcy (d)
121,578

 
—

 
121,578

 
—

 
75,194

 
 
Fair Value Measurements at December 31, 2016
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Lower of cost or fair value expense for the year ended December 31, 2016
Other assets — vehicles (a)
$
257,382

 
$
—

 
$
257,382

 
$
—

 
$
—

Personal loans held for sale (b)
1,077,600

 
—

 
—

 
1,077,600

 
414,703

Retail installment contracts held for sale (c)
1,045,815

 
—

 
—

 
1,045,815

 
8,913

(a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices.
(b) Represents the portion of the portfolio specifically impaired as of period-end. The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period.
(c) The estimated fair value is calculated based on a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns.
(d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices.
Quantitative Information about Level 3 Fair Value Measurements
The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2017:
Financial Instruments
 
Fair Value at December 31, 2017
 
Valuation Technique
 
Unobservable Inputs
 
Range
Financial Assets:
Retail installment contracts held for investment
 
$22,124
 
Discounted Cash Flow
 
Discount Rate
 
8% - 10%
Default Rate
 
15% - 20%
Prepayment Rate
 
6% - 8%
 
 
 
Loss Severity Rate
 
50% - 60%
Personal loans held for sale
 
$1,062,089
 
Lower of Market or Income Approach
 
Market Approach
 
 
 
 
 
Market Participant View
 
70% - 80%
 
 
 
Income Approach
 
 
 
 
 
Discount Rate
 
15% - 20%
 
 
 
Default Rate
 
30% - 40%
 
 
 
Net Principal Payment Rate
 
50% - 70%
 
 
 
Loss Severity Rate
 
90% - 95%
Retail installment contracts held for sale
 
$1,148,332
 
Discounted Cash Flow
 
Discount Rate
 
3% - 6%
Default Rate
 
3% - 4%
Prepayment Rate
 
15% - 20%
 
 
 
Loss Severity Rate
 
50% - 60%
The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2016:
Financial Instruments
 
Fair Value at December 31, 2016
 
Valuation Technique
 
Unobservable Inputs
 
Range
Financial Assets:
Retail installment contracts held for investment
 
$24,495
 
Discounted Cash Flow
 
Discount Rate
 
8% - 10%
Default Rate
 
15% - 20%
Prepayment Rate
 
6% - 8%
 
 
 
Loss Severity Rate
 
50% - 60%
Personal loans held for sale

 
$1,077,600
 
Lower of Market or Income Approach

 
Market Approach
 
 
 
 
 
Market Participant View

 
70% - 80%

 
 
 
Income Approach
 
 
 
 
 
Discount Rate
 
15% - 20%
 
 
 
Default Rate

 
30% - 40%
 
 
 
Net Principal Payment Rate

 
50% - 70%
 
 
 
Loss Severity Rate

 
90% - 95%
Retail installment contracts held for sale
 
$1,045,815
 
Discounted Cash Flow
 
Discount Rate
 
3% - 6%
Default Rate
 
3% - 4%
Prepayment Rate
 
15% - 20%
 
 
 
Loss Severity Rate
 
50% - 60%
Total return settlement
 
$30,618
 
Discounted Cash Flow
 
Discount Rate
 
6.4%
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
SC Compensation Plans — Prior to its expiration on January 31, 2015, the Company granted stock options to certain executives, other employees, and independent directors under the 2011 Management Equity Plan (the MEP). It enabled the Company to make stock awards up to a total of approximately 29 million common shares. No further awards will be made under this plan. In December 2013, the Board established the Omnibus Incentive Plan (the Omnibus Plan), which was amended and restated as of June 2016. The Omnibus Plan enables the Company to grant awards of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units (RSUs), and other awards that may be settled in or based upon the value of the Company's common stock up to a total of 5,192,641 common shares.
Stock options granted have an exercise price based on the fair market value of the Company’s common stock on the grant date. The stock options expire after ten years and include both time vesting options and performance vesting options. The fair value of the stock options is amortized into income over the vesting period as time and performance vesting conditions are met. Under the Management Shareholders Agreement entered into by certain employees, no shares obtained through exercise of stock options under the MEP could be transferred until the later of December 31, 2016, and the Company’s execution of an IPO (the later date of which is referred to as the Lapse Date). Until the Lapse Date, if an employee were to leave the Company, the Company would have the right to repurchase any or all of the stock obtained by the employee through option exercise. If the employee were terminated for cause (as defined in the MEP) or voluntarily left the Company without good reason (as defined in the Plan), in each case, prior to the Lapse Date the repurchase price would be the lower of the strike price or fair market value at the date of repurchase. If the employee were terminated without cause or voluntarily left the Company with good reason, in each case, prior to the Lapse Date the repurchase price is the fair market value at the date of repurchase. Management believes the Company’s repurchase right caused the IPO event to constitute an implicit vesting condition and therefore did not record any stock compensation expense until the date of the IPO.
On December 28, 2013, the Board approved certain changes to the MEP and the Management Shareholders Agreement, including acceleration of vesting for certain employees, removal of transfer restrictions for shares underlying a portion of the options outstanding under the Plan, and addition of transfer restrictions for shares underlying another portion of the outstanding options. All of the changes were contingent on, and effective upon, the Company’s execution of an IPO and, as such, became effective upon pricing of the IPO on January 22, 2014. Also, on December 28, 2013, the Company granted 583,890 shares of restricted stock to certain executives under terms of the Omnibus Plan. Compensation expense related to this restricted stock is recognized over a five-year vesting period, with $5,457, $725, and $8,851 recorded for the years ended December 31, 2017, 2016, and 2015, respectively.
Also, in connection with the IPO, the Company granted additional stock options under the MEP to certain executives, other employees, and an independent director with an estimated compensation cost of $10,216, which is being recognized over the awards' vesting period of five years for the employees and three years for the director. Additional stock option grants have been made to employees under the Omnibus Plan during the year ended December 31, 2016. The estimated compensation cost associated with these additional grants was $727 and will be recognized over the vesting periods of the awards.
A summary of the Company’s stock options and related activity as of and for the year ended December 31, 2017 is as follows:
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic
Value
Options outstanding at January 1, 2017
4,295,830

 
$
12.70

 
5.6
 
$
12,982

Exercised
(1,435,606
)
 
9.51

 

 
8,047

Expired
(470,276
)
 
20.28

 

 


Forfeited
(694,940
)
 
14.94

 

 

Options outstanding at December 31, 2017
1,695,008

 
$
12.39

 
4.7
 
$
12,058

Options exercisable at December 31, 2017
1,455,170

 
$
10.91

 
4.3
 
$
11,851

Options expected to vest at December 31, 2017
239,838

 
$
21.35

 
6.7
 



In connection with compensation restrictions imposed on certain executive officers and other employees by the European Central Bank under the Capital Requirements Directive IV (CRD IV) prudential rules, which require a portion of such officers' and employees' variable compensation to be paid in the form of equity, the Company granted RSUs in February and April 2015. Pursuant to the applicable award agreements under the Omnibus Plan, a portion of the RSUs vested immediately upon grant, and a portion will vest annually over the first three anniversaries of the grant date. In June 2015, as part of a separate grant under the Omnibus Incentive Plan, the Company granted certain officers RSUs that vest over a three-year period, with vesting dependent on Santander performance over that time. After vesting, stock obtained by employees and officers through RSUs must be held for one year. In October 2015, the Company granted, under the Omnibus Plan, certain directors RSUs that vest upon the earlier of the first anniversary of the grant date or the first annual meeting following the grant date. In December 2015, the Company granted a new officer RSUs that will vest in equal portions on each of the first three anniversaries of the grant date.
In February, June and November 2016, the Company granted certain new employees RSUs that will vest annually over a three-year period. In March, April and November 2016, RSUs that vest annually over a three-year period were granted to certain officers and employees as retention awards. The RSUs granted as retention awards to officers and employees whose variable compensation is subject to the provisions of CRD IV must be held for one year after vesting. In accordance with the provisions of CRD IV, in April 2016, the Company granted RSUs to certain officers and employees, a portion of which vested immediately upon grant and a portion that vest annually over a three-year period, and all of which must be held for one year after vesting. In November 2016, the Company granted certain officers RSUs that vest over a three-year period, with vesting dependent on Santander performance over that time and which must be held for one year after vesting. In November and December 2016, the Company granted certain directors RSUs that vest upon the earlier of the first anniversary of the grant date or the first annual meeting following the grant date. All RSU grants during the year ended December 31, 2016 were made under the Omnibus Plan.
In March, May, August, and October 2017, the Company granted to certain employees subject to CRD IV, RSUs that vest annually over three-year periods. In March 2017, the company granted RSUs to certain officers and employees in connection with the 2016 annual bonus. For the RSUs granted to officers and employees subject to CRD IV, except for the CEO, 60% of the RSUs vested immediately upon grant and 40% of the RSUs will vest ratably over three-year periods, all of which must be held for one year after vesting. For the RSUs granted to the CEO, half of the RSUs vested immediately upon grant and half of the RSUs will vest ratably over a five-year period, subject to the achievement of certain performance conditions. For employees not subject to the CRD IV, the RSUs will vest annually over three-year periods. In June 2017, the Company granted certain directors RSUs that vest upon the earlier of the first anniversary of the grant date or the first annual meeting following the grant date. All RSU grants during the year ended December 31, 2017 were made under the Omnibus Plan.
On November 15, 2017, Mr. Dundon (former Chairman of the Board and CEO of the Company), the Company, SC Illinois, SHUSA, Santander and DDFS LLC (an affiliate of Mr. Dundon), entered into the Settlement Agreement that, among other things, amended the terms of a prior settlement agreement entered into between the parties in connection with Mr. Dundon’s departure from the Company. Pursuant to the Settlement Agreement, among other things, Mr. Dundon received payments from the Company totaling $66,115, of which $52,799 was paid in satisfaction of Mr. Dundon’s previous exercise of certain stock options that was the subject of the Separation Agreement entered into by Mr. Dundon in connection with his departure from the Company. The Settlement Agreement also modifies the terms of certain equity-based awards previously granted to Mr. Dundon.
A summary of the status and changes of the Company's nonvested stock options as of and for the year ended December 31, 2017, is presented below:
 
Shares
 
Weighted Average Grant Date Fair Value
Non-vested at January 1, 2017
1,151,067

 
$
7.02

Granted
—

 
—

Vested
(216,289
)
 
7.66

Forfeited or expired
(694,940
)
 
6.73

Non-vested at December 31, 2017
239,838

 
$
7.29


At December 31, 2017, total unrecognized compensation expense for nonvested stock options was $1,198, which is expected to be recognized over a weighted average period of 2.2 years.
There were no stock options granted to employees in 2017. The following summarizes the assumptions used for estimating the fair value of stock options granted to employees for the years ended December 31, 2016, and 2015.
 
For the Year Ended December 31,
 
2016
 
2015
Assumption
 
 
 
Risk-free interest rate
1.79%
 
1.64% - 1.97%
Expected life (in years)
6.5
 
6.0 - 6.5
Expected volatility
33%
 
32% - 48%
Dividend yield
3.69%
 
1.6% - 2.7%
Weighted average grant date fair value
$3.14
 
$6.92 - $9.67

Defined Contribution Plan— The Company sponsors a defined contribution plan offered to qualifying employees. Employees participating in the plan may contribute up to 75% of their base salary, subject to federal limitations on absolute amounts contributed. The Company will match up to 6% of their base salary, with matching contributions of 100% of employee contributions. The total amount contributed by the Company in 2017, 2016, and 2015, was $12,370, $11,805, and $9,498, respectively.
Shareholders' Equity
Shareholders' Equity
Shareholders' Equity
Treasury Stock
The Company had 252,002 and 94,595 shares of treasury stock outstanding with a cost of $5,370 and $1,600 as of December 31, 2017 and 2016, respectively. Prior to the IPO, the Company repurchased 3,154 shares as a result of an employee leaving the company. Additionally, as of December 31, 2017 and 2016, 248,848 and 91,441 shares were withheld to cover income taxes related to stock issued in connection with employee incentive compensation plans respectively, including 157,407 and 25,590 shares withheld during the years ended December 31, 2017 and 2016, respectively. The value of the treasury stock is immaterial and included within additional paid-in-capital.
Accumulated Other Comprehensive Income (Loss)
A summary of changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2017, 2016, and 2015 is as follows:
 
Unrealized gains (losses) on cash flow hedges
Balance - January 1, 2015
$
3,553

Other comprehensive income (loss) before reclassifications (gross)
(34,182
)
Amounts (gross) reclassified out of accumulated other comprehensive income
32,754

Balance - December 31, 2015
2,125

Other comprehensive income (loss) before reclassifications (gross)
(1,324
)
Amounts (gross) reclassified out of accumulated other comprehensive income
27,458

Balance - December 31, 2016
28,259

Other comprehensive income (loss) before reclassifications (gross)
21,962

Amounts (gross) reclassified out of accumulated other comprehensive income
(5,959
)
Balance - December 31, 2017
$
44,262



Amounts (gross) reclassified out of accumulated other comprehensive income (loss) consist of the following:
 
Year Ended December 31, 2017
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
Reclassification
Amount reclassified
 
Income statement line item
 
Amount reclassified
 
Income statement line item
 
Amount reclassified
 
Income statement line item

 
 
 
 
 
 
 
 
 
 
 
Cash flow hedges
$
(6,060
)
 
Interest Expense
 
$
43,898

 
Interest Expense
 
$
50,860

 
Interest Expense
Tax expense (benefit)
101

 
 
 
(16,440
)
 
 
 
(18,106
)
 
 
Net of tax
$
(5,959
)
 
 
 
$
27,458

 
 
 
$
32,754

 
 

Dividends
The Company made a dividend payment in 2017 and in February 2018 and, subject to Board approval, plan to pay a dividend in the second quarter of 2018.
Investment Gains (Losses), Net
Investment Gains (Losses), Net
Investment Gains (Losses), Net
When the Company sells retail installment contracts acquired individually, personal loans or leases to unrelated third parties or to VIEs and determines that such sale meets the applicable criteria for sale accounting, the Company recognizes a gain or loss for the difference between the cash proceeds and carrying value of the assets sold. The gain or loss is recorded in investment gains (losses), net. Lower of cost or market adjustments on the recorded investment of finance receivables held for sale are also recorded in investment gains (losses), net.
Investment gains (losses), net was comprised of the following for the years ended December 31, 2017, 2016, and 2015:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Gain (loss) on sale of loans and leases
$
17,554

 
$
(11,549
)
 
$
155,408

Lower of cost or market adjustments
(386,060
)
 
(423,616
)
 
(236,396
)
Other gains / (losses and impairments)
2,067

 
(9,594
)
 
(14,226
)
 
$
(366,439
)
 
$
(444,759
)
 
$
(95,214
)


The lower of cost or market adjustments for the year ended December 31, 2017 included $451,672 in customer default activity and net favorable adjustments of $65,612 related to net changes in the unpaid principal balance on the personal lending portfolio, most of which has been classified as held for sale since September 30, 2015. The lower of cost or market adjustments for the year ended December 31, 2016 included $429,106 in customer default activity and net favorable adjustments of $14,403 related to net changes in the unpaid principal balance on the personal lending portfolio, most of which has been classified as held for sale since September 30, 2015. The key driver to continued write-downs due to customer default activity, is the lower of cost or market adjustment recorded for each new originated loan, based on forecasted lifetime loss.
Correction of Errors
Corrections of Errors
Correction of Errors

On October 27, 2016, the Company filed an amended Annual Report on Form 10-K/A for the year ended December 31, 2015 in which the Company restated its audited financial statements for the year ended December 31, 2015 to correct certain errors which are reflected herein, the most significant of which were as follows:
•
The methodology for estimating the credit loss allowance for individually acquired retail installment contracts held for investment and the identification of the population of loans that should be classified and disclosed as TDRs.

•
The effective rate used to discount expected cash flows to determine TDR impairment.

•
The classification of subvention payments within the income statement related to leased vehicles.

•
The application of the retrospective effective interest method for accreting discounts, subvention payments from manufacturers, and other origination costs (collectively "discount") on individually acquired retail installment contracts held for investment.

•
The consideration of net unaccreted discounts when estimating the allowance for credit losses for the non-TDR portfolio of individually acquired retail installment loans held for investment.

•
The recognition of and disclosure of severance and stock compensation expenses, a deferred tax asset, and a liability for certain benefits payable to the former CEO.
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited)
The following is a summary of quarterly financial results:
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year Ended December 31, 2017
 
 
 
 
 
 
 
Total finance and other interest income
$
1,631,244

 
$
1,666,721

 
$
1,649,376

 
$
1,616,679

Net finance and other interest income
1,113,984

 
1,135,126

 
1,059,121

 
1,009,542

Provision for credit losses
635,013

 
520,555

 
536,447

 
562,346

Income (loss) before income taxes
221,428

 
348,108

 
277,773

 
(23,795
)
Net income (loss)
143,427

 
264,675

 
199,388

 
580,116

Net income (loss) per common share (basic)
$
0.40

 
$
0.74

 
$
0.55

 
$
1.61

Net income (loss) per common share (diluted)
$
0.40

 
$
0.74

 
$
0.55

 
$
1.61

 
 
 
 
 
 
 
 
Allowance for credit losses
$
3,453,075

 
$
3,458,410

 
$
3,380,763

 
$
3,269,506

Finance receivables held for investment, net
23,444,625

 
23,634,914

 
22,667,203

 
22,427,769

Total assets
39,061,940

 
39,507,482

 
38,765,557

 
39,422,304

Total equity
5,418,998

 
5,678,733

 
5,885,234

 
6,480,501

 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Total finance and other interest income
$
1,619,899

 
$
1,643,989

 
$
1,638,525

 
$
1,627,183

Net finance and other interest income
1,213,804

 
1,202,255

 
1,178,620

 
1,131,974

Provision for credit losses
660,170

 
511,921

 
610,398

 
685,711

Income before income taxes
328,942

 
437,563

 
304,020

 
90,186

Net income
208,299

 
283,345

 
213,547

 
61,275

Net income per common share (basic)
$
0.58

 
$
0.79

 
$
0.60

 
$
0.17

Net income per common share (diluted)
$
0.58

 
$
0.79

 
$
0.59

 
$
0.17

 
 
 
 
 
 
 
 
Allowance for credit losses
$
3,337,490

 
$
3,436,325

 
$
3,412,977

 
$
3,421,767

Finance receivables held for investment, net
23,961,903

 
23,477,426

 
23,686,391

 
23,481,001

Total assets
37,768,959

 
38,490,611

 
38,771,636

 
38,539,104

Total equity
4,604,739

 
4,876,712

 
5,117,657

 
5,238,619

Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices (Policies)
Basis of Presentation 
Basis of Presentation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered variable interest entities (VIEs). The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications 
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements, and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, fair value, impairment, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time.
Business Segment Information 
Business Segment Information
The Company has one reportable segment: Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles, and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations.
Finance Receivables 
Finance Receivables
Finance receivables are comprised of retail installment contracts individually acquired, purchased receivables, receivables from dealer, personal loans, and capital lease receivables. Finance receivables are classified as either held for sale or held for investment, depending on the Company’s intent and ability to hold the underlying contract for the foreseeable future or until maturity or payoff. Most of the Company’s retail installment contracts held for investment are pledged under its warehouse facilities or securitization transactions.
Retail Installment Contracts, Personal Loans, Net and Receivables from Dealers 
Retail Installment Contracts
Retail installment contracts consist largely of nonprime automobile finance receivables, which are acquired individually from dealers at a nonrefundable discount from the contractual principal amount. Retail installment contracts also include receivables originated through a direct lending program and loan portfolios purchased from other lenders. Retail installment contracts acquired individually or originated directly are primarily classified as held for investment and carried at amortized cost, net of allowance for credit losses.
The Company has elected the fair value option for certain non-performing loans acquired through the exercise of a clean-up call. Accordingly, changes in the fair value of these finance receivables, which are based upon fair value estimates (Note 15), are reported in investment gains (losses), net, in the consolidated statements of income and comprehensive income.
Interest is accrued when earned in accordance with the terms of the retail installment contract. The accrual of interest is discontinued and reversed once a retail installment contract becomes more than 60 days past due, and is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. For loans on nonaccrual status, interest income is recognized on a cash basis, however the Company continues to assess the recognition of cash received on those loans in order to identify whether certain of those loans should also be placed on a cost recovery basis. For TDR loans on nonaccrual status, the accrual of interest is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. However, for TDR loans placed on cost recovery basis, the Company returns to accrual when a sustained period of repayment performance has been achieved (typically defined as six months), which were insignificant as of December 31, 2017.
Beginning January 1, 2017, based on observed TDR performance, the Company places certain additional TDRs on nonaccrual status when the Company believes repayment under the revised terms is not reasonably assured and at the latest, when the account becomes past due more than 60 days. The Company believes repayment under the revised terms is not reasonably assured for a retail installment contract that is already on nonaccrual (i.e., more than 60 days past due) and has received a modification or deferment that qualifies for a TDR event. In addition, any TDR that subsequently receives a third deferral is placed on nonaccrual status. Further, the Company has determined that certain of these loans should also be placed on a cost recovery basis.
The Company noted some deterioration in the performance of recent originations, particularly those loans originated in 2015, and addressed those trends with the introduction of more disciplined underwriting standards in late 2016. Based on this disciplined underwriting (among other things), the servicing practices for retail installment contracts originated after January 1, 2017 changed, such that there is an increase in the minimum payment requirements. Although these changes impact the measurement of customer delinquencies, the Company does not believe they have a significant impact on the amount or timing of the recognition of credit losses and allowance for loan losses. With respect to receivables originated by the Company through its “Chrysler Capital” channel, the required minimum payment is 90% of the scheduled payment. With respect to receivables originated by the Company or acquired by the Company from an unaffiliated third-party originator on or after January 1, 2017, the required minimum payment is 90% of the scheduled payment, whereas previous to January 1, 2017 the required minimum payment was 50% of the scheduled payment. The payment following the partial payment must be a full payment, or the account will move into delinquency status at that time. Payments generally are applied to interest first, then principal, then fees, regardless of a contract's accrual status.
The amortization of discounts, subvention payments from manufacturers, and other origination costs on retail installment contracts held for investment acquired individually, or through a direct lending program, are recognized as adjustments to the yield of the related contract using the effective interest method.
Personal Loans, Net
Personal loans, net, primarily consist of both revolving and amortizing term finance receivables acquired individually under terms of the Company’s agreements with certain third parties who originate and continue to service the loans. Personal loans also include private-label revolving lines of credit originated through the Company’s relationship with a point-of-sale lending technology company. Certain of the revolving receivables were acquired at a discount.
Interest is accrued when earned in accordance with the terms of the contract. The accrual of interest on amortizing term receivables is discontinued and reversed once a receivable becomes past due more than 60 days, and is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. The accrual of interest on revolving personal loans continues until the receivable becomes 180 days past due, at which point the principal amount and interest are charged off. The amortization of discounts is recognized on a straight-line basis over the estimated period over which the receivables held for investment, are expected to be outstanding.
Receivables from Dealers
Receivables from dealers include floorplan loans provided to dealerships to finance new and used vehicles for their inventory. Receivables from dealers also include real estate loans and working capital revolving lines of credit. Interest on these loans is accrued when earned in accordance with the agreement with the dealer.
Purchased Receivables Portfolios 
Purchased Receivables Portfolios 
Receivables portfolios purchased from other lenders or pursuant to a repurchased obligation that are purchased at amounts less than the principal amount of those receivables, resulting in a discount to par, are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, if the discount was attributable, at least in part, to the expectation that not all contractual cash flows will be received from borrowers, which did not exist at the origination of the loans. The excess of the estimated undiscounted principal, interest, and other cash flows expected to be collected over the initial investment in the acquired loans, or accretable yield, is accreted to interest income over the expected life of the loans using the effective interest rate method.
The nonaccretable difference is the excess between the contractually required payments and the amount of cash flows, considering the impact of prepayments, expected to be collected. The nonaccretable difference is not accreted into income.
Any deterioration in the performance of the purchased portfolios results in an incremental impairment. Improvements in performance of the purchased pools that significantly increase actual or expected cash flows result in first a reversal of previously recorded impairment and then in a transfer of the excess from nonaccretable difference to accretable yield, which will be recorded as finance income over the remaining life of the receivables.
Finance Receivables Held for Sale, Net 
Finance Receivables Held for Sale, Net
Finance receivables, which may include any of the receivables described above, that the Company does not have the intent and ability to hold for the foreseeable future or until maturity or payoff, including those previously designated as held for investment and subsequently identified for sale, are classified as held for sale, at origination or at the time a decision to sell is made. Finance receivables designated as held for sale are carried at the lower of cost or market, as determined on an aggregate basis. Cost, or recorded investment, includes deferred net origination fees and costs, premium or discounts, accrued interest, manufacturer subvention (if any) and any direct write-down of the investment. When loans are transferred from held for investment, if the recorded investment of a loan exceeds its market value at the time of initial designation as held for sale, the Company will recognize a direct write-down of the excess of the recorded investment over market as a charge-off against the credit loss allowance. Subsequent to the initial measurement of retail installment contracts and personal loans held for sale, market declines in the recorded investment, whether due to credit or market risk, are recorded through investment gains (losses), net of lower of cost or market adjustments.
Provision for Credit Losses 
Provision for Credit Losses
Provisions for credit losses are charged to operations in amounts sufficient to support the credit loss allowance in accordance with the Company's estimate. The Company estimates an allowance on individually acquired retail installment contracts and personal loans held for investment not classified as TDRs at a level considered adequate to cover expected net credit losses inherent in the recorded investment of that portfolio. Probable losses are estimated based on contractual delinquency status and historical loss experience, in addition to the Company’s judgment of estimates of the value of the underlying collateral, changes in the used vehicle value index, delinquency status, historical collection rates and other information in order to make the necessary judgments as to probable loan losses. For loans classified as TDRs, impairment is generally measured based on the present value of expected future cash flows discounted at the original effective interest rate. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. Provisions for credit losses are also charged to operations for impairment on TDRs.
Retail installment contracts acquired individually are charged off against the allowance in the month in which the account becomes greater than 120 days contractually delinquent if the Company has not repossessed the related vehicle. The Company charges off accounts in repossession when the automobile is repossessed and legally available for disposition. A net charge-off represents the difference between the estimated sales proceeds and the Company's recorded investment in the related contract. Costs to sell the vehicle are presented in repossession expense. Accounts in repossession that have been charged off and are pending liquidation are removed from retail installment contracts and the related repossessed automobiles are included in other assets in the Company’s consolidated balance sheets.
Term and revolving personal loans are charged off against the allowance in the month in which the accounts become 120 days and 180 days contractually delinquent, respectively.
In addition to maintaining a general allowance based on risk ratings, receivables from dealers are evaluated individually for impairment with allowances established for receivables determined to be individually impaired. Receivables from dealers are charged off against these allowances at the time that the credit is considered uncollectable and of such little value that it does not warrant consideration as an active asset.
Troubled Debt Restructurings 
Troubled Debt Restructurings
A modification of finance receivable terms is considered a troubled debt restructuring (TDR) if the Company grants a concession it would not otherwise have considered to a borrower for economic or legal reasons related to the debtor's financial difficulties. The Company considers TDRs to include all individually acquired retail installment contracts or personal revolving loans that have been modified at least once, deferred for a period of 90 days or more, or deferred at least twice. Additionally, restructurings through bankruptcy proceedings are deemed to be TDRs. The purchased receivables portfolio, operating and capital leases, and loans held for sale are excluded from the scope of the applicable guidance, and none of the Company's personal term loans or dealer loans have been modified or deferred.
For TDRs, impairment is generally measured based on the difference between the recorded investment of the loan and the present value of the expected future cash flows of the loan. The loan may also be measured for impairment based on the fair value of the underlying collateral less costs to sell for loans that are collateral dependent. TDRs are evaluated for impairment individually or in aggregate for those loans with similar risk characteristics.
Leased Vehicles, Net and Capital Lease Receivables, net 
Leased Vehicles, Net
Most vehicles for which the Company is the lessor are classified as operating leases, as they do not meet the accounting requirements to be classified as a capital lease. The net capitalized cost of each lease is recorded as an asset and depreciated on a straight-line basis over the contractual term of the lease to the expected residual value. The expected residual value and, accordingly, the monthly depreciation expense may change throughout the term of the lease. The Company estimates expected residual values using independent data sources and internal statistical models that take into consideration economic conditions, current auction results, the Company’s remarketing abilities, and manufacturer vehicle and marketing programs. Over the life of the lease, the Company evaluates the adequacy of the estimate of the residual value and may make adjustments to the depreciation rates to the extent the expected value of the vehicle at lease termination changes.
Lease payments due from customers are recorded as income until and unless a customer becomes more than 60 days delinquent, at which time the accrual of revenue is discontinued and reversed. The accrual is resumed and reinstated if a delinquent account subsequently becomes 60 days or less past due. Subvention payments from the manufacturer, down payments from the customer, and initial direct costs incurred in connection with originating the lease are treated as a reduction to the cost basis of the underlying lease asset and are amortized on a straight-line basis over the contractual term of the lease. The amortization of manufacturer subvention payments is reflected as a reduction to depreciation expense over the life of the contract.
The Company periodically evaluates its investment in operating leases for impairment if circumstances, such as a systemic and material decline in used vehicle values, indicates that an impairment may exist. These circumstances could include, for example, shocks to oil and gas prices (which may have a pronounced impact on certain models of vehicles) or pervasive manufacturer defects (which may systemically affect the value of a particular vehicle brand or model). Impairment is determined to exist if fair value of the leased asset is less than carrying value and it is determined that the net carrying value is not recoverable. The net carrying value of a leased asset is not recoverable if it exceeds the sum of the undiscounted expected future cash flows expected to result from the lease payments and the estimated residual value upon eventual disposition. If our operating lease assets are considered to be impaired, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value as estimated by discounted cash flows. No impairment was recognized in 2017, 2016, or 2015.
Capital Lease Receivables, net
Leases classified as capital leases are accounted for as direct financing leases. Minimum lease payments plus the estimated residual value of the leased vehicle are recorded as the gross investment. The difference between the gross investment and the cost of the leased vehicle is recorded as unearned income. Direct financing leases are reported at the aggregate of gross investments, net of unearned income and allowance for lease losses. Income for direct financing leases is recognized using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease.
Fees, commissions, and other 
Fees, commissions, and other
Fees, commissions, and other primarily include late fees, miscellaneous, and other income, and are generally recorded when there is no doubt as to the collectability of the related receivable.
Repossessed Vehicles and Repossession Expense 
Repossessed Vehicles and Repossession Expense
Repossessed vehicles represent vehicles the Company has repossessed due to the borrowers’ default on the payment terms of the retail installment contracts, loans or leases. The Company generally begins repossession activity once a customer has reached 60 days past due. The customer has an opportunity to redeem the repossessed vehicle by paying all outstanding balances, including finance charges and fees. Any vehicles not redeemed are sold at auction. The Company records the vehicles currently in its inventory at the lower of cost or estimated fair value, net of estimated costs to sell (See Notes 9 and 15).
Repossession expense includes the costs to repossess and sell vehicles obtained due to borrower default. These costs include transportation, storage, rekeying, condition reports, legal fees, the fees paid to repossession agents and auction fees.
Sales of Finance Receivables and Leases 
Sales of Finance Receivables and Leases 
The Company transfers retail installment contracts into newly formed Trusts, which then issue one or more classes of notes payable backed by the retail installment contracts.
The Company’s continuing involvement with the credit facilities and Trusts are in the form of servicing loans held by the special purpose entities (SPEs) and, generally, through holding a residual interest in the SPE. These transactions are structured without recourse. The Trusts are considered VIEs under U.S. GAAP and are consolidated when the Company has: (a) power over the significant activities of the entity and (b) an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE.
The Company has power over the significant activities of those Trusts as servicer of the financial assets held in the Trust. Servicing fees are not considered significant variable interests in the Trusts; however, when the Company also retains a residual interest in the Trust, either in the form of a debt security or equity interest, the Company has an obligation to absorb losses or the right to receive benefits that are potentially significant to the SPE. Accordingly, these Trusts are consolidated within the consolidated financial statements, and the associated retail installment contracts, borrowings under credit facilities and securitization notes payable remain on the consolidated balance sheets. Securitizations involving Trusts in which the Company does not retain a residual interest or any other debt or equity interests are treated as sales of the associated retail installment contracts.
While these Trusts are included in the consolidated financial statements, these Trusts are separate legal entities; thus, the finance receivables and other assets sold to these Trusts are legally owned by these Trusts, are available only to satisfy the notes payable related to the securitized retail installment contracts, and are not available to the Company's creditors or other subsidiaries.
The Company also sells retail installment contracts and leases to VIEs or directly to third parties, which the Company may determine meet sale accounting treatment in accordance with the applicable guidance. Due to the nature, purpose, and activity of these transactions, the Company either does not hold potentially significant variable interests or is not the primary beneficiary as a result of the Company's limited further involvement with the financial assets. The transferred financial assets are removed from the Company's consolidated balance sheets at the time the sale is completed. The Company generally remains the servicer of the financial assets and receives servicing fees. The Company also recognizes a gain or loss for the difference between the fair value, as measured based on sales proceeds plus (or minus) the value of any servicing asset (or liability) retained and carrying value of the assets sold.
Cash and Cash Equivalents 
Cash and Cash Equivalents 
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has maintained balances in various operating and money market accounts in excess of federally insured limits.
Restricted Cash 
Restricted Cash
Cash deposited to support securitization transactions, lockbox collections, and the related required reserve accounts is recorded in the Company’s consolidated balance sheet as restricted cash. Excess cash flows generated by the securitization trusts are added to the restricted cash reserve account, creating additional over-collateralization until the contractual securitization requirement has been reached. Once the targeted reserve requirement is satisfied, additional excess cash flows generated by the Trusts are released to the Company as distributions from the Trusts. Lockbox collections are added to restricted cash and released when transferred to the appropriate warehouse facility or Trust.
The Company has several limited guarantees with Santander that provide explicit performance guarantees on certain servicer obligations related to the Company’s warehouse facilities and certain securitizations. As a result of those guarantees, the Company was permitted to commingle funds received on contracts that have been included in the securitizations and certain warehouse facilities, and retain and remit cash to the respective collection accounts once a month prior to the distribution dates.
Income Taxes 
Income Taxes
Income tax expense consists of income taxes currently payable and deferred income taxes computed using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. The deferred tax asset is subject to reduction by a valuation allowance in certain circumstances. This valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be realized based on a review of available evidence. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
The Company records the benefit of uncertain tax positions in the consolidated financial statements when such positions (1) meet a more-likely-than-not threshold, (2) are settled through negotiation or litigation, or (3) the statute of limitations for the taxing authority to examine the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more-likely-than-not recognition threshold is no longer satisfied.
Furniture and Equipment 
Furniture and Equipment 
Furniture and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the improvements. Depreciation and amortization on furniture and equipment for the years ended December 31, 2017, 2016, and 2015 totaled $17,682, $16,357, and $16,111, respectively. Expenditures for major renewals and betterments are capitalized. Repairs and maintenance expenditures are charged to operations as incurred.
Goodwill and Intangibles 
Goodwill and Intangibles
Goodwill represents the excess of consideration paid over fair value of net assets acquired in business combinations. Intangibles represent intangible assets purchased or acquired through business combinations, including trade names and software development costs. Intangibles are amortized over their estimated useful lives. The Company tests goodwill for impairment annually in accordance with the provisions of ASC 350, Intangibles-Goodwill and Other.
Derivative Financial Instruments 
Derivative Financial Instruments
Derivative financial instruments are recognized as either assets or liabilities in the consolidated balance sheets at fair value. The accounting for changes in the fair value of each derivative financial instrument depends on whether it has been designated and qualifies as a hedge for accounting purposes, as well as the type of hedging relationship identified. The Company does not use derivative instruments for trading or speculative purposes.
Interest Rate Swap Agreements — The Company uses interest rate swaps to hedge the variability of cash flows on securities issued by securitization Trusts and borrowings under the Company’s warehouse facilities. Certain interest rate swap agreements are designated and qualify as cash flow hedges, and are highly effective in reducing exposure to interest rate risk from both an accounting and an economic perspective.
At hedge inception and at least quarterly, the interest rate swap agreements designated as accounting hedges are assessed to determine their effectiveness in offsetting changes in the cash flows of the hedged items and whether those interest rate swap agreements may be expected to remain highly effective in future periods.
The Company uses the hypothetical derivative method to assess hedge effectiveness of cash flow hedges on a prospective and retrospective basis. At December 31, 2017, all of the Company’s interest rate swap agreements designated as cash flow hedges are deemed to be effective hedges for accounting purposes. The Company uses the hypothetical derivative method to measure the amount of ineffectiveness and a net earnings impact occurs when the cumulative change in the value of a derivative, as adjusted, differs from the cumulative change in value of the perfect hypothetical derivative. The excess change in value (the ineffectiveness) is recognized in interest expense on the consolidated statements of income and comprehensive income.
The effective portion of the changes in the fair value of the interest rate swaps qualifying as cash flow hedges is included as a component of other comprehensive loss, net of estimated income taxes, as an unrealized gain or loss on cash flow hedges. These unrealized gains or losses are recognized as adjustments to income over the same period in which cash flows from the related hedged item affect earnings. The Company discontinues hedge accounting prospectively when it is determined that an interest rate swap agreement has ceased to be effective as an accounting hedge or if the underlying hedged cash flow is no longer probable of occurring.
The Company has also entered into interest rate swap agreements related to its securitization trusts and warehouse facilities that are not designated as hedges. These agreements are intended to reduce the risk of interest rate fluctuations. For the interest rate swap agreements not designated as hedges, any gains or losses are included in the Company’s earnings as a component of operating expense.
Interest Rate Cap Agreements — The Company purchases interest rate cap agreements to limit floating rate exposures on securities issued in credit facilities. As part of the interest rate risk management strategy, and when economically feasible, the Company may simultaneously sell a corresponding written option to offset the premium paid to purchase the interest rate cap agreement and thus retain the interest rate risk. Because these instruments entered into directly by the Company or through SPEs are not designated for hedge accounting, changes in the fair value of interest rate cap agreements purchased by the SPEs and written option sold by the Company are recorded in operating expenses on the consolidated statements of income and comprehensive income.
Warrants — The Company is the holder of a warrant that gives it the right, if certain vesting conditions are satisfied, to purchase additional shares in a company in which it has a cost method investment. This warrant would allow the Company to increase its ownership to approximately 22% in the investee company.
Stock-Based Compensation 
Stock-Based Compensation
The Company measures the compensation cost of stock-based awards using the estimated fair value of those awards on the grant date, and recognizes the cost as expense over the vesting period of the awards (see Note 16).
Earnings per Share 
Earnings per Share
Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised. It is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock grants. Because the Company has issued participating securities in the form of unvested restricted stock that has dividend rights, the Company applies the two-class method when computing earnings per share.
Recently Adopted Accounting Standards and Recent Accounting Pronouncements 
Recently Adopted Accounting Standards
The Company adopted the following Financial Accounting Standards Board (FASB) Accounting Standards Updates (ASUs):
•
ASU 2016-09, Compensation - Stock Compensation (Topic 718). This new guidance simplifies certain aspects related to income taxes, the Statement of Cash Flows (SCF), and forfeitures when accounting for share-based payment transactions. ASU 2016-09 eliminates the requirement to recognize excess tax benefits in APIC pools, and instead requires companies to record all excess tax benefits and deficiencies at settlement, vesting or expiration in the income statement as provision for income taxes. At adoption of ASU 2016-09 on January 1, 2017, the cumulative-effect for previously unrecognized excess tax benefits totaled $26,552 net of tax, and was recognized, as an increase, through an adjustment in beginning retained earnings. The Company recorded excess tax deficiency, net of tax of $796 in the provision for income taxes rather than as a decrease to additional paid-in capital for the year ended December 31, 2017, on a prospective basis. All excess tax benefits along with other income tax cash flows are now being classified as operating activities rather than financing activities in the SCF on a prospective basis.
In addition, the Company changed its accounting policy on forfeitures from previously recognizing forfeitures based on estimating the number of awards expected to be forfeited to electing to recognize forfeiture of awards as they occur to simplify the accounting for forfeitures. This resulted in a cumulative adjustment, as a decrease to, beginning retained earnings of $1,439.
•
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The guidance provides that a goodwill impairment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The same one-step impairment test will be applied to goodwill at all reporting units. The Company early adopted this ASU as of October 1, 2017. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows.
The adoption of the following ASUs did not have material impact on the Company's financial position, results of operations or cash flows.
•
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.
•
ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments.
•
ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323).
•
ASU 2016-17, Consolidation (Topic 810), Interest Held Through Related Parties That Are Under Common Control.
Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU, as amended, requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 606. The amended standard is effective for the Company for the annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. It should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption.

Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), this ASU will not have a material impact on the elements of its Consolidated Statements of Income most closely associated with leases and financial instruments (such as interest income, interest expense and investment gain and losses) as well as other revenue streams that are not material in nature. The Company will adopt this ASU in the first quarter of 2018 using a modified retrospective approach with a cumulative-effect adjustment to opening retained earnings. The Company does not anticipate having any adjustments to the opening retained earnings as of January 1, 2018. The Company is also in the process of developing additional quantitative and qualitative disclosures that are required for 2018 SEC filings.

In February 2016, the FASB issued ASU 2016-02, Leases, which will, among other impacts, change the criteria under which leases are identified and accounted for as on- or off-balance sheet. The guidance will be effective for the fiscal year beginning after December 15, 2018, including interim periods within that year. Once effective, the new guidance must be applied for all periods presented. The Company is in the process of reviewing its existing property and equipment lease contracts as well as service contracts that may include embedded lease. Upon adoption, the Company will gross up its balance sheet by the present value of future minimum lease payments for these operating leases. The Company does not intend to early adopt this ASU.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in material changes to the Company’s credit and capital reserves.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash     (A consensus of the FASB Emerging Issues Task Force), which requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown on the statement of cash flows and that the statement of cash flows explain changes in restricted cash during the period. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, however, adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments will not impact financial results, but will result in a change in the presentation of restricted cash and restricted cash equivalents within the statement of cash flows. The Company currently plans to adopt these amendments on January 1, 2018, and expect to use the retrospective approach as required.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The new guidance amends the hedge accounting model to enable entities to more accurately reflect their risk management activities in the financial statements. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line in which the earnings effect of the hedged item is reported. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to early adopt this standard in 2018 and does not expect to have a material impact on opening balance of retained earnings for cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The Company has $6,100 stranded income tax benefits as of December 31, 2017. The Company has decided to not early adopt this ASU in 2017.

In addition to those described in detail above, the Company is also in the process of evaluating the following ASUs and does not expect them to have a material impact on the Company's business, financial position, results of operations or disclosures:
•
ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
•
ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.
•
ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory.
•
ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.
•
ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
•
ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force)
•
ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
•
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
•
ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting.
•
ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.
Finance Receivables (Tables)
Summary of Finance Receivables Held for Investment 
Finance receivables held for investment, net is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Retail installment contracts acquired individually (a)
$
22,362,509

 
$
23,219,724

Purchased receivables
27,839

 
158,264

Receivables from dealers
15,623

 
68,707

Personal loans
4,459

 
12,272

Capital lease receivables (Note 3)
17,339

 
22,034

Finance receivables held for investment, net

$
22,427,769

 
$
23,481,001


(a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of December 31, 2017 and December 31, 2016, $22,124 and $24,495 of loans were recorded at fair value (Note 15).

The Company's held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
Retail Installment Contracts Acquired Individually
 
Receivables from
Dealers
 
Personal Loans
 
Non- TDR
 
TDR
 
 
Unpaid principal balance
$
19,681,394

 
$
6,261,894

 
$
15,787

 
$
6,887

Credit loss allowance - specific
—

 
(1,731,320
)
 
—

 
(2,565
)
Credit loss allowance - collective
(1,529,815
)
 
—

 
(164
)
 
—

Discount
(309,191
)
 
(74,832
)
 
—

 
(1
)
Capitalized origination costs and fees
58,638

 
5,741

6

—

 
138

Net carrying balance
$
17,901,026

 
$
4,461,483

 
$
15,623

 
$
4,459

 
 
December 31, 2016
 
Retail Installment Contracts Acquired Individually
 
Receivables from
Dealers
 
Personal Loans (a)
 
Non-TDR
 
TDR
 
 
Unpaid principal balance
$
21,528,406

 
$
5,599,567

 
$
69,431

 
$
19,361

Credit loss allowance - specific
—

 
(1,611,295
)
 
—

 
—

Credit loss allowance - collective
(1,799,760
)
 
—

 
(724
)
 
—

Discount
(467,757
)
 
(91,359
)
 
—

 
(7,721
)
Capitalized origination costs and fees
56,704

 
5,218

 
—

 
632

Net carrying balance
$
19,317,593

 
$
3,902,131

 
$
68,707

 
$
12,272


(a) As of December 31, 2016, there were lower of cost or market adjustments of $7,521 included in the discount on personal loans.
Schedule of Finance Receivables, Deteriorated Credit Quality 
Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Outstanding balance
$
43,474

 
$
231,360

Outstanding recorded investment, net of impairment
28,069

 
159,451

Changes in Accretable Yield on Purchased Receivables Portfolios 
Changes in accretable yield on the Company’s purchased receivables portfolios for the periods indicated is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Balance — beginning of year
$
107,041

 
$
178,582

 
$
268,927

Accretion of accretable yield
(30,129
)
 
(69,701
)
 
(91,157
)
Disposals/transfers
(62,183
)
 
—

 
—

Reclassifications from (to) nonaccretable difference (a)
4,735

 
(1,840
)
 
812

Balance — end of year
$
19,464

 
$
107,041

 
$
178,582


(a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows.
Schedule of Financing Receivables Held-For-Sale, Carrying Values 
The carrying value of the Company's finance receivables held for sale was comprised of the following at December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
Retail installment contracts acquired individually
$
1,148,332

 
$
1,045,815

Personal loans
1,062,089

 
1,077,600

Total assets held for sale
$
2,210,421

 
$
2,123,415

Schedule of Sales of Retail Installment Contracts and Charged-off Assets 
Sales of retail installment contracts to third parties and proceeds from sales of charged-off assets for the years ended December 31, 2017, 2016, and 2015 were as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Sales of retail installment contracts to third parties
$
260,568

 
$
3,694,019

 
$
7,862,520

Proceeds from sales of charged-off assets
93,619

 
64,847

 
122,436

Servicing of Retail Installment Contracts 
The Company retains servicing of retail installment contracts sold to third parties. Total contracts sold to unrelated third parties and serviced as of December 31, 2017 and 2016 were as follows:
 
December 31, 2017
 
December 31, 2016
Serviced balance of retail installment contracts and leases sold to third parties
$
5,771,085

 
$
10,116,788

Leases (Tables)
Summary of Leased Vehicles 
Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of December 31, 2017 and 2016:
 
December 31,
2017
 
December 31,
2016
Leased vehicles
$
14,285,769

 
$
11,939,295

Less: accumulated depreciation
(3,110,167
)
 
(2,326,342
)
Depreciated net capitalized cost
11,175,602

 
9,612,953

Manufacturer subvention payments, net of accretion
(1,042,477
)
 
(1,066,531
)
Origination fees and other costs
27,202

 
18,206

Net book value
$
10,160,327

 
$
8,564,628


Minimum Rental Payments Due to Lessor under Operating Leases 
The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of December 31, 2017:
2018
$
1,650,271

2019
1,034,470

2020
374,598

2021
12,317

Thereafter
—

Total
$
3,071,656

Schedule of Capital Lease Receivable 
Capital lease receivables, net consisted of the following as of December 31, 2017 and 2016:
 
December 31,
2017
 
December 31,
2016
Gross investment in capital leases
$
27,234

 
$
39,417

Origination fees and other
124

 
150

Less unearned income
(4,377
)
 
(7,545
)
   Net investment in capital leases before allowance
22,981

 
32,022

Less: allowance for lease losses
(5,642
)
 
(9,988
)
   Net investment in capital leases
$
17,339

 
$
22,034

Schedule of Future Minimum Lease Payments Receivable for Capital Leases 
The following summarizes the future minimum lease payments due to the Company as lessor under capital leases as of December 31, 2017:
2018
$
11,050

2019
6,809

2020
4,417

2021
2,960

Thereafter
1,998

Total
$
27,234

Credit Loss Allowance and Credit Quality (Tables)
Summary of Activity in Credit Loss Allowance 
The activity in the credit loss allowance for individually acquired loans for the years ended December 31, 2017, 2016, and 2015 were as follows:
 
Year Ended December 31, 2017
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
 
Personal Loans
Balance — beginning of year
$
3,411,055

 
$
724

 
$
—

Provision for credit losses
2,244,182

 
(560
)
 
10,691

Charge-offs (a)
(4,796,216
)
 
—

 
(8,945
)
Recoveries
2,402,114

 
—

 
819

Balance — end of year
$
3,261,135

 
$
164

 
$
2,565

(a) For the year ended December 31, 2017, charge-offs for retail installment contracts acquired individually includes approximately $75 million for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. No such charge-offs were recorded for the years ended December 31, 2016 and December 31, 2015.
 
Year Ended December 31, 2016
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
Balance — beginning of year
$
3,197,414

 
$
916

Provision for credit losses
2,471,490

 
201

Charge-offs
(4,723,649
)
 
(393
)
Recoveries
2,465,800

 
—

Balance — end of year
$
3,411,055

 
$
724


 
Year Ended December 31, 2015
 
Retail Installment
Contracts
Acquired
Individually
 
Receivables
from Dealers
 
Personal Loans
Balance — beginning of year
$
2,586,685

 
$
674

 
$
348,660

Provision for credit losses
2,433,617

 
242

 
324,634

Charge-offs (a)
(3,897,480
)
 
—

 
(695,918
)
Recoveries
2,101,709

 
—

 
22,624

Impact of loans transferred to held for sale
(27,117
)
 
—

 
—

Balance — end of year
$
3,197,414

 
$
916

 
$
—


(a) Charge-offs of retail installment contracts acquired individually and personal loans include lower of cost or market adjustments of $73,388 and $377,598, respectively, which were charged off against the credit loss allowance.

The activity in the lease loss allowance for capital leases for the years ended December 31, 2017, 2016, and 2015 was as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Balance — beginning of year
$
9,988

 
$
19,878

 
$
9,589

Provision for credit losses
48

 
(506
)
 
41,196

Charge-offs
(11,069
)
 
(33,476
)
 
(64,209
)
Recoveries
6,675

 
24,092

 
33,302

Balance — end of year
$
5,642

 
$
9,988

 
$
19,878

Summary of Delinquencies 
A summary of delinquencies as of December 31, 2017 and 2016 is as follows:
 
December 31, 2017
 
Retail Installment Contracts Held for Investment
 
Loans
Acquired
Individually
 
Purchased
Receivables
Portfolios
 
Total
Principal, 30-59 days past due
$
2,822,686

 
$
4,992

 
$
2,827,678

Delinquent principal over 59 days (a)
1,541,728

 
2,855

 
1,544,583

Total delinquent principal
$
4,364,414

 
$
7,847

 
$
4,372,261

 
December 31, 2016
 
Retail Installment Contracts Held for Investment
 
Loans
Acquired
Individually
 
Purchased
Receivables
Portfolios
 
Total
Principal, 30-59 days past due
$
2,911,800

 
$
13,703

 
$
2,925,503

Delinquent principal over 59 days (a)
1,520,105

 
6,638

 
1,526,743

Total delinquent principal
$
4,431,905

 
$
20,341

 
$
4,452,246

(a) Interest is accrued until 60 days past due in accordance with the Company's accounting policy for retail installment contracts. The Company's delinquency ratio continues to be calculated using the end of period delinquent principal over 60 days. Refer to Part II, Item 6 " Selected Financial Data" for details on delinquent principal over 60 days and related delinquency ratios.
Summary of Retail Installment Contracts Held for Investment on Nonaccrual Status 
retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
 
 
Dollars (in thousands)
 
Percent (a)
 
Dollars (in thousands)
 
Percent (a)
 
Non-TDR
$
666,926

 
2.6
%
 
$
721,150


2.6
%
 
TDR (b)
1,390,373

 
5.4
%
 
665,068


2.4
%
 
Total nonaccrual principal
$
2,057,299

 
7.9
%
 
$
1,386,218

 
5.1
%
 
    
(a) Percent of unpaid principal balance of total retail installment contracts acquired individually held for investment.
(b) Refer to "Troubled Debt Restructurings" section below for discussion around significant increase in nonaccrual loans

Summary of Credit Risk Profile 
FICO® Distribution - A summary of the credit risk profile of the Company's consumer loans by FICO® distribution, determined at origination, as of December 31, 2017 and 2016 was as follows:
FICO® Band
 
December 31, 2017 (b)
 
December 31, 2016 (b)
Commercial (a)
 
2.5%
 
3.1%
No-FICOs
 
11.2%
 
12.2%
<540
 
21.8%
 
22.1%
540-599
 
32.0%
 
31.4%
600-639
 
17.4%
 
17.4%
>640
 
15.1%
 
13.8%

(a)
No FICO score is obtained on loans to commercial borrowers.
(b)
Percentages are based on unpaid principal balance

Loan Credit Quality Indicators for Receivables Held for Investment 
Fleet loan credit quality indicators for retail installment contracts held for
investment with commercial borrowers as of December 31, 2017 and 2016 were as follows:
     
 
December 31,
2017
 
December 31,
2016
Pass
$
12,276

 
$
17,585

Special Mention
5,324

 
2,790

Substandard
715

 
1,488

Doubtful
—

 
—

Loss
—

 
—

Total (Unpaid principal balance)

$
18,315

 
$
21,863

Commercial loan credit quality indicators for receivables from dealers held for investment as of December 31, 2017 and 2016 were as follows: 
 
December 31,
2017
 
December 31,
2016
Pass
$
14,130

 
$
67,681

Special Mention
1,657

 
—

Substandard
—

 
1,750

Doubtful
—

 
—

Loss
—

 
—

Total (Unpaid principal balance)

$
15,787

 
$
69,431

Summary of Company's TDRs 
The table below presents the Company’s loans modified in TDRs as of December 31, 2017 and 2016:
 
December 31, 2017
 
December 31, 2016
 
Retail Installment Contracts
Outstanding recorded investment (a)
$
6,261,432

 
$
5,637,792

Impairment
(1,731,320
)
 
(1,611,295
)
Outstanding recorded investment, net of impairment
$
4,530,112

 
$
4,026,497


(a) As of December 31, 2017, the outstanding recorded investment excludes $64.7 million of collateral-dependent bankruptcy TDRs that has been written down by $29.2 million to fair value less cost to sell.
Summary of Delinquent TDRs 
A summary of the Company’s delinquent TDRs at December 31, 2017 and 2016, is as follows:
 
December 31, 2017
 
December 31, 2016
 
Retail Installment Contracts (a)
Principal, 30-59 days past due
$
1,332,239

 
$
1,253,848

Delinquent principal over 59 days
818,938

 
736,691

Total delinquent TDR principal
$
2,151,177

 
$
1,990,539


(a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance.
Average Recorded Investment and Income Recognized on TDR Loans 
Average recorded investment and income recognized on TDR loans are as follows:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Average outstanding recorded investment in TDRs
$
6,002,715

 
$
5,079,782

 
$
4,361,962

 
$
17,150

Interest income recognized
946,606

 
802,048

 
716,054

 
2,220

Summary of Financial Effects of TDRs 
The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the years ended December 31, 2017, 2016, and 2015:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Outstanding recorded investment before TDR
$
3,547,456

 
$
3,394,308

 
$
3,417,884

 
$
15,418

Outstanding recorded investment after TDR
$
3,541,968

 
$
3,419,990

 
$
3,445,103

 
$
15,340

Number of contracts (not in thousands)
204,775

 
191,385

 
198,325

 
12,501

Summary of Defaults in Loan Modifications Accounted as TDRs 
Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted for the years ended December 31, 2017, 2016, and 2015 are summarized in the following table:
 
For the Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Retail Installment Contracts
 
Personal Loans
Recorded investment in TDRs that subsequently defaulted (a)
$
820,765

 
$
788,933

 
$
788,297

 
$
5,346

Number of contracts (not in thousands)
46,600

 
44,972

 
45,840

 
4,919


(a) For TDR modifications and TDR modifications that subsequently default, while the allowance methodology remains unchanged, transition rates of the TDR loans are adjusted to reflect the respective risks.
Goodwill and Intangibles (Tables)
Schedule of Finite-Lived Intangible Assets 
The components of intangible assets at December 31, 2017 and 2016 were as follows:
 
December 31, 2017
 
Useful Life
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Value
Amortized intangible assets:
 
 
 
 
 
 
 
Customer relationships
10 years
 
$
12,400

 
$
(11,883
)
 
$
517

Software and technology
3 years
 
33,603

 
(20,286
)
 
13,317

Trademarks
3 - 15 years
 
20,347

 
(4,447
)
 
15,900

Total
 
 
$
66,350

 
$
(36,616
)
 
$
29,734

 
December 31, 2016
 
Useful Life
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Value
Amortized intangible assets:
 
 
 
 
 
 
 
Customer relationships
10 years
 
$
12,400

 
$
(10,643
)
 
$
1,757

Software and technology
3 years
 
33,528

 
(19,762
)
 
13,766

Trademarks
3 - 15 years
 
20,347

 
(3,247
)
 
17,100

Total
 
 
$
66,275

 
$
(33,652
)
 
$
32,623


Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
Estimated future amortization expense is as follows:
2018
$
8,400

2019
5,746

2020
3,288

2021
1,200

2022 and thereafter
11,100

Total
$
29,734

Debt (Tables)
Schedule of Credit Facilities 
The following table presents information regarding credit facilities as of December 31, 2017 and 2016:
 
December 31, 2017
 
Maturity Date(s)
 
Utilized Balance
 
Committed Amount
 
Effective Rate
 
Assets Pledged
 
Restricted Cash Pledged
Facilities with third parties:
 
 
 
 
 
 
 
 
 
 
 
Warehouse line (a)
January 2018
 
$
336,484

 
$
500,000

 
2.87%
 
$
473,208

 
$
—

Warehouse line
Various (b)
 
339,145

 
1,250,000

 
2.53%
 
461,353

 
12,645

Warehouse line (c)
August 2019
 
2,044,843

 
3,900,000

 
2.96%
 
2,929,890

 
53,639

Warehouse line
December 2018
 
—

 
300,000

 
1.49%
 
—

 
—

Warehouse line
October 2019
 
226,577

 
1,800,000

 
4.95%
 
311,336

 
6,772

Repurchase facility (e)
Various (d)
 
325,775

 
325,775

 
3.24%

—


13,842

Repurchase facility (e)
April 2018
 
202,311

 
202,311

 
2.67%
 
—

 
—

Repurchase facility (e)
March 2018
 
147,500

 
147,500

 
3.91%
 
—

 
—

Repurchase facility (e)
March 2018
 
68,897

 
68,897

 
3.04%
 
—

 
—

Warehouse line
November 2019
 
403,999

 
1,000,000

 
2.66%
 
546,782

 
14,729

Warehouse line
October 2019
 
81,865

 
400,000

 
4.09%
 
114,021

 
3,057

Warehouse line
November 2019
 
435,220

 
500,000

 
1.92%
 
521,365

 
16,866

Warehouse line
October 2018
 
235,700

 
300,000

 
2.84%
 
289,634

 
10,474

Total facilities with third parties
 
 
4,848,316

 
10,694,483

 
 
 
5,647,589

 
132,024

Lines of credit with Santander and related subsidiaries (f):
 
 
 
 
 
 
 
 
 
 
 
Line of credit
December 2018
 
—

 
1,000,000

 
3.09%
 
—

 
—

Promissory Note
December 2021
 
250,000

 
250,000

 
3.70%
 
—

 
—

Promissory Note
December 2022
 
250,000

 
250,000

 
3.95%
 
—

 
—

Promissory Note
March 2019
 
300,000

 
300,000

 
2.67%
 
—

 
—

Promissory Note
October 2020
 
400,000

 
400,000

 
3.10%
 
—

 
—

Promissory Note
May 2020
 
500,000

 
500,000

 
3.49%
 
—

 
—

Promissory Note (g)
March 2022
 
650,000

 
650,000

 
4.20%
 
—

 
—

Promissory Note
August 2021
 
650,000

 
650,000

 
3.44%
 
—

 
—

Line of credit
December 2018
 
750,000

 
750,000

 
1.33%
 
—

 
—

Line of credit
March 2019
 
—

 
3,000,000

 
3.94%
 
—

 
—

Total facilities with Santander and related subsidiaries
 
 
3,750,000

 
7,750,000

 
 
 
—

 
—

Total revolving credit facilities
 
 
$
8,598,316

 
$
18,444,483

 
 
 
$
5,647,589

 
$
132,024


(a)
The maturity of this warehouse line was extended to August 2019.
(b)
Half of the outstanding balance on this facility matures in March 2018 and remaining balance matures in March 2019.
(c)
This line is held exclusively for financing of Chrysler Capital leases.
(d)
The maturity of this repurchase facility ranges from February 2018 to July 2018
(e)
The repurchase facilities are collateralized by securitization notes payable retained by the Company. These facilities have rolling maturities of up to one year.
(f)
These lines are also collateralized by securitization notes payable and residuals retained by the Company. As of December 31, 2017 and December 31, 2016, $3,000,000 and $1,316,568, respectively, of the aggregate outstanding balances on these facilities were unsecured.
(g)
During the year, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This was later terminated and the fair value hedge adjustment was $4.2 million, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt.
 
December 31, 2016
 
Maturity Date(s)
 
Utilized Balance
 
Committed Amount
 
Effective Rate
 
Assets Pledged
 
Restricted Cash Pledged
Facilities with third parties:

 
 
 
 
 
 
 
 
 
 
 
Warehouse line
January 2018
 
$
153,784

 
$
500,000

 
3.17%
 
$
213,578

 
$
—

Warehouse line
Various
 
462,085

 
1,250,000

 
2.52%
 
653,014

 
14,916

Warehouse line
August 2018
 
534,220

 
780,000

 
1.98%
 
608,025

 
24,520

Warehouse line
August 2018
 
3,119,943

 
3,120,000

 
1.91%
 
4,700,774

 
70,991

Warehouse line
October 2018
 
702,377

 
1,800,000

 
2.51%
 
994,684

 
23,378

Repurchase facility
December 2017
 
507,800

 
507,800

 
2.83%
 
—

 
22,613

Repurchase facility
April 2017
 
235,509

 
235,509

 
2.04%
 
—

 
—

Warehouse line
November 2018
 
578,999

 
1,000,000

 
1.56%
 
850,758

 
17,642

Warehouse line
October 2018
 
202,000

 
400,000

 
2.22%
 
290,867

 
5,435

Warehouse line
November 2018
 
—

 
500,000

 
2.07%
 
—

 
—

Warehouse line
October 2017
 
243,100

 
300,000

 
2.38%
 
295,045

 
9,235

Total facilities with third parties

 
6,739,817

 
10,393,309

 

 
8,606,745

 
188,730

Lines of credit with Santander and related subsidiaries:
 
 


 


 
 
 


 


Line of credit
December 2017
 
500,000

 
500,000

 
3.04%
 
—

 
—

Line of credit
December 2018
 
175,000

 
500,000

 
3.87%
 
—

 
—

Line of credit
December 2017
 
1,000,000

 
1,000,000

 
2.86%
 
—

 
—

Line of credit
December 2018
 
1,000,000

 
1,000,000

 
2.88%
 
—

 
—

Line of credit
March 2017
 
300,000

 
300,000

 
2.25%
 
—

 
—

Line of credit
March 2019
 
—

 
3,000,000

 
3.74%
 
—

 
—

Total facilities with Santander and related subsidiaries
 
 
2,975,000

 
6,300,000

 
 
 
—

 
—

Total revolving credit facilities
 
 
$
9,714,817

 
$
16,693,309

 
 
 
$
8,606,745

 
$
188,730


Summary of Secured Structured Financings 
The following table presents information regarding secured structured financings as of December 31, 2017 and 2016:
 
December 31, 2017
 
Estimated Maturity Date(s)
 
Balance
 
Initial Note Amounts Issued
 
Initial Weighted Average Interest Rate
 
Collateral (b)
 
Restricted Cash
2013 Securitizations
January 2019 - March 2021
 
$
418,806

 
$
4,239,700

 
0.89%-1.59%
 
$
544,948

 
$
125,696

2014 Securitizations
February 2020 - April 2022
 
1,150,422

 
6,391,020

 
 1.16%-1.72%
 
1,362,814

 
210,937

2015 Securitizations
September 2019 - January 2023
 
2,484,051

 
9,171,332

 
 1.33%-2.29%
 
3,465,671

 
366,062

2016 Securitizations
April 2022 - March 2024
 
3,596,822

 
7,462,790

 
 1.63%-2.80%
 
4,798,807

 
344,899

2017 Securitizations
April 2023 - September 2024
 
7,343,157

 
9,535,800

 
 2.01%-2.52%
 
9,701,381

 
422,865

Public securitizations (a)
 
 
14,993,258

 
36,800,642

 
 
 
19,873,621

 
1,470,459

2011 Private issuance
September 2028
 
281,946

 
1,700,000

 
1.46%
 
398,051

 
20,356

2013 Private issuances
August 2021 - September 2024
 
2,292,279

 
2,044,054

 
1.28%-1.38%
 
3,719,148

 
155,066

2014 Private issuances
March 2018 - November 2021
 
117,730

 
1,538,087

 
1.05%-1.40%
 
231,997

 
9,552

2015 Private issuances
November 2018 - September 2021
 
2,009,627

 
2,305,062

 
0.88%-4.09%
 
988,247

 
55,451

2016 Private issuances
May 2020 - September 2024
 
1,489,464

 
3,050,000

 
1.55%-2.86%
 
2,147,988

 
89,460

2017 Private issuances
April 2021 - September 2021
 
1,373,591

 
1,641,079

 
1.85%-2.27%
 
1,747,227

 
47,415

Privately issued amortizing notes
 
 
7,564,637

 
12,278,282

 
 
 
9,232,658

 
377,300

Total secured structured financings
 
 
$
22,557,895

 
$
49,078,924

 
 
 
$
29,106,279

 
$
1,847,759


(a)Securitizations executed under Rule 144A of the Securities Act are included within this balance.
(b)Secured structured financings may be collateralized by the Company's collateral overages of other issuances.

 
December 31, 2016
 
Estimated Maturity Date(s)
 
Balance
 
Initial Note Amounts Issued
 
Initial Weighted Average Interest Rate
 
Collateral
 
Restricted Cash
2012 Securitizations
September 2018
 
$
197,470

 
$
2,525,540

 
0.92%-1.23%
 
$
312,710

 
$
73,733

2013 Securitizations
January 2019 - January 2021
 
1,172,904

 
6,689,700

 
0.89%-1.59%
 
1,484,014

 
222,187

2014 Securitizations
February 2020 - January 2021
 
1,858,600

 
6,391,020

 
1.16%-1.72%
 
2,360,939

 
250,806

2015 Securitizations
September 2019 - January 2023
 
4,326,292

 
9,317,032

 
1.33%-2.29%
 
5,743,884

 
468,787

2016 Securitizations
April 2022 - March 2024
 
5,881,216

 
7,462,790

 
1.63%-2.46%
 
7,572,977

 
408,086

Public securitizations
 
 
13,436,482

 
32,386,082

 
 
 
17,474,524

 
1,423,599

2010 Private issuance
June 2017
 
113,157

 
516,000

 
1.29%
 
213,235

 
6,270

2011 Private issuance
December 2018
 
342,369

 
1,700,000

 
1.46%
 
617,945

 
31,425

2013 Private issuances
September 2018-September 2020
 
2,375,964

 
2,693,754

 
1.13%-1.38%
 
4,122,963

 
164,740

2014 Private issuances
March 2018 - December 2021
 
643,428

 
3,271,175

 
1.05%-1.40%
 
1,129,506

 
68,072

2015 Private issuances
December 2016 - July 2019
 
2,185,166

 
2,855,062

 
 0.88%-2.81%
 
2,384,661

 
140,269

2016 Private issuances
May 2020 - September 2024
 
2,512,323

 
3,050,000

 
 1.55%-2.86%
 
3,553,577

 
90,092

Privately issued amortizing notes
 
 
8,172,407

 
14,085,991

 
 
 
12,021,887

 
500,868

Total secured structured financings
 
 
$
21,608,889

 
$
46,472,073

 
 
 
$
29,496,411

 
$
1,924,467


Schedule of Maturities of Long-term Debt 
The final contractual maturity and weighted average interest rate (net of interest income earned on retained bonds) by year on these notes at December 31, 2017, were as follows:
2018, 0.44%
$
226,046

2019, 1.74%
2,327,186

2020, 2.15%
4,445,272

2021, 2.70%
8,118,119

2022, 3.21%
3,286,548

Thereafter, 3.19%
4,205,379

 
$
22,608,550

Less: unamortized costs
(50,655
)
Notes payable - secured structured financings
$
22,557,895

Variable Interest Entities (Tables)
Summary of Cash Flows Received from Securitization Trusts 
A summary of the cash flows received from these off-balance sheet securitization trusts for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Receivables securitized (a)
$
2,583,341

 
$
904,108

 
$
1,557,099

 
 
 
 
 
 
Net proceeds from new securitizations
$
2,588,227

 
$
876,592

 
$
1,578,320

Cash received for servicing fees
35,682

 
47,804

 
23,848

Total cash received from securitization trusts
$
2,623,909

 
$
924,396

 
$
1,602,168


(a)
Represents the unpaid principal balance at the time of original securitization.

A summary of the cash flows received from consolidated securitization trusts for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Assets securitized
$
18,442,793

 
$
15,828,921

 
$
18,516,641

 
 
 
 
 
 
Net proceeds from new securitizations (a)
$
14,126,211

 
$
13,319,530

 
$
15,232,692

Net proceeds from sale of retained bonds
499,354

 
436,812

 
—

Cash received for servicing fees (b)
866,210

 
787,778

 
700,156

Net distributions from Trusts (b)
2,613,032

 
1,748,013

 
1,960,418

Total cash received from Trusts
$
18,104,807

 
$
16,292,133

 
$
17,893,266

(a)
Includes additional advances on existing securitizations.
(b)
These amounts are not reflected in the accompanying consolidated statements of cash flows because the cash flows are between the VIEs and other entities included in the consolidation.
Off-balance Sheet Variable Interest Entities Portfolio 
The portfolio was comprised as follows:
 
Year ended December 31,
 
2017
 
2016
SPAIN
$
2,024,016

 
$
—

Total serviced for related parties
2,024,016

 
—

Chrysler Capital securitizations
1,404,232

 
2,472,756

Other third parties
—

 
268,345

Total serviced for third parties
1,404,232

 
2,741,101

Total serviced for others portfolio
$
3,428,248

 
$
2,741,101

Derivative Financial Instruments (Tables)
Summary of Underlying Notional Amounts and Aggregate Fair Values 
The underlying notional amounts and aggregate fair values of these agreements at December 31, 2017 and 2016, were as follows:
 
 
December 31, 2017
 
Notional
 
Fair Value
 
Asset
 
Liability
Interest rate swap agreements designated as cash flow hedges
$
4,926,900

 
$
45,986

 
$
45,986

 
$
—

Interest rate swap agreements not designated as hedges
1,736,400

 
9,596

 
9,596

 
—

Interest rate cap agreements
10,906,081

 
103,721

 
135,830

 
(32,109
)
Options for interest rate cap agreements
10,906,081

 
(103,659
)
 
32,165

 
(135,824
)

 
December 31, 2016
 
Notional
 
Fair Value
 
Asset
 
Liability
Interest rate swap agreements designated as cash flow hedges
$
7,854,700

 
$
44,618

 
$
45,551

 
$
(933
)
Interest rate swap agreements not designated as hedges
1,019,900

 
1,939

 
2,076

 
(137
)
Interest rate cap agreements
9,463,935

 
76,269

 
76,269

 
—

Options for interest rate cap agreements
9,463,935

 
(76,281
)
 
—

 
(76,281
)
Total return settlement
658,471

 
(30,618
)
 
—

 
(30,618
)
Schedule of Offsetting Assets 
Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of December 31, 2017 and 2016:
 
Gross Amounts Not Offset in the
Consolidated Balance Sheet
 
Assets Presented
in the
Consolidated
Balance Sheet
 
Cash
Collateral
Received (a)
 
Net
Amount
December 31, 2017
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
8,621

 
$
(3,461
)
 
$
5,160

Interest rate swaps - third party
46,961

 
(448
)
 
46,513

Interest rate caps - Santander & affiliates
18,201

 
(12,240
)
 
5,961

Interest rate caps - third party
149,794

 
(55,835
)
 
93,959

Total derivatives subject to a master netting arrangement or similar arrangement
223,577

 
(71,984
)
 
151,593

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative assets
$
223,577

 
$
(71,984
)
 
$
151,593

Total financial assets
$
223,577

 
$
(71,984
)
 
$
151,593

 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
5,372

 
$
—

 
$
5,372

Interest rate swaps - third party
42,254

 
(22,100
)
 
20,154

Interest rate caps - Santander & affiliates
7,593

 
—

 
7,593

Interest rate caps - third party
68,676

 
—

 
68,676

Total derivatives subject to a master netting arrangement or similar arrangement
123,895

 
(22,100
)
 
101,795

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative assets
$
123,895

 
$
(22,100
)
 
$
101,795

Total financial assets
$
123,895

 
$
(22,100
)
 
$
101,795


(a) Cash collateral received is reported in Other liabilities or Due to affiliate, as applicable, in the consolidated balance sheet.
Schedule of Offsetting Liabilities 
 
Gross Amounts Not Offset in the
Consolidated Balance Sheet
 
Liabilities Presented
in the
Consolidated
Balance Sheet
 
Cash
Collateral
Pledged (a)
 
Net
Amount
December 31, 2017
 
 
 
 
 
Back to back - Santander & affiliates
18,201

 
(18,201
)
 
—

Back to back - third party
149,732

 
(133,540
)
 
16,192

Total derivatives subject to a master netting arrangement or similar arrangement
167,933

 
(151,741
)
 
16,192

Total derivatives not subject to a master netting arrangement or similar arrangement
—

 
—

 
—

Total derivative liabilities
$
167,933

 
$
(151,741
)
 
$
16,192

Total financial liabilities
$
167,933

 
$
(151,741
)
 
$
16,192

 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Interest rate swaps - Santander & affiliates
$
546

 
$
(546
)
 
$
—

Interest rate swaps - third party
524

 
(524
)
 
—

Back to back - Santander & affiliates
7,593

 
(7,593
)
 
—

Back to back - third party
68,688

 
(68,688
)
 
—

Total derivatives subject to a master netting arrangement or similar arrangement
77,351

 
(77,351
)
 
—

Total return settlement
30,618

 
—

 
30,618

Total derivatives not subject to a master netting arrangement or similar arrangement
30,618

 
—

 
30,618

Total derivative liabilities
$
107,969

 
$
(77,351
)
 
$
30,618

Total financial liabilities
$
107,969

 
$
(77,351
)
 
$
30,618


(a) Cash collateral pledged is reported in Other assets or Due from affiliate, as applicable, in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of cash pledged as collateral exceeds the associated financial liability, as such, the actual amount of cash collateral pledged that is reported in Other assets or Due from affiliates may be greater than the amount shown in the table above.
Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income 
The Company’s derivative instruments had effects on its consolidated statements of income and comprehensive income for the years ended December 31, 2017, 2016, and 2015 as follows:
 
December 31, 2017
 
Recognized in
Earnings
 
Gross Gains Recognized in Accumulated Other Comprehensive Income
 
Gross amount Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
112

 
$
22,333

 
$
6,060

 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in operating expense
$
(6,835
)
 
 
 
 
 
December 31, 2016
 
Recognized in
Earnings
 
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income
 
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
1,131

 
$
(2,118
)
 
$
(43,898
)
 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in operating expenses
$
(1,593
)
 
 
 
 
 
December 31, 2015
 
Recognized in
Earnings
 
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income
 
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income To Interest Expense
Interest rate swap agreements designated as cash flow hedges
$
223

 
$
(53,160
)
 
$
(50,860
)
 
 
 
 
 
 
Derivative instruments not designated as hedges:
 
 
 
 
 
Gains (losses) recognized in interest expense
$
(11,880
)
 
 
 
 
Gains (losses) recognized in operating expenses
$
(10,973
)
 
 
 
 
Other Assets (Tables)
Schedule of Other Assets
Other assets at December 31, 2017 and December 31, 2016, were as follows:
 
December 31,
2017
 
December 31,
2016
Upfront fee (a)
$
80,000

 
$
95,000

Vehicles (b)
293,546

 
257,382

Manufacturer subvention payments receivable (a)
83,910

 
161,447

Accounts receivable
38,583

 
22,480

Prepaids
40,830

 
46,177

Derivative assets at fair value (c)
196,755

 
110,930

Derivative-third party collateral
149,805

 
75,089

Other
29,815

 
16,905

Total
$
913,244

 
$
785,410

 
(a)
These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the agreement. The fee is being amortized into finance and other interest income over a ten-year term. As the preferred financing provider for FCA, the Company is entitled to subvention payments on loans and leases with below-market customer payments.
(b)
Includes vehicles obtained through repossession as well as vehicles obtained due to lease terminations.
(c)
Derivative assets at fair value represent the gross amount of derivatives presented in the consolidated financial statements. Refer to Note 8 to these Consolidated Financial Statements for the detail of these amounts.
Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) 
The components of the provision for income taxes for the years ended December 31, 2017, 2016, and 2015, were as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Income before income taxes:
 
 
 
 
 
Domestic
$
717,496

 
$
942,436

 
$
1,289,612

Foreign
106,018

 
218,275

 
—

Total
$
823,514

 
$
1,160,711

 
$
1,289,612

Current income tax expense (benefit):
 
 

 
 
Federal
$
(6,140
)
 
$
2,481

 
$
33,798

State
(6,436
)
 
3,273

 
4,491

Foreign
4,273

 
8,738

 
—

Total current income tax expense (benefit)
$
(8,303
)
 
$
14,492

 
$
38,289

Deferred income tax expense (benefit):
 
 
 
 
 
Federal
(386,703
)
 
343,816

 
387,686

State
30,953

 
35,944

 
39,597

Foreign
(39
)
 
(7
)
 
—

Total deferred income tax expense (benefit)
(355,789
)
 
379,753

 
427,283

Total income tax expense (benefit)
$
(364,092
)
 
$
394,245

 
$
465,572

Schedule of Effective Income Tax Rate Reconciliation 
The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rates for the years ended December 31, 2017, 2016, and 2015, is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Federal statutory rate
35.0
 %
 
35.0
%
 
35.0
%
State and local income taxes — net of federal income tax benefit
2.3

 
2.5

 
2.3

Valuation allowance
—

 
(2.2
)
 
(0.2
)
Electric vehicle credit
(2.9
)
 
(2.3
)
 
(1.8
)
Tax reform - deferred impact
(82.3
)
 
—

 
—

Tax reform - transition tax
3.1

 
—

 
—

Other
0.6

 
1.0

 
0.8

Effective income tax rate
(44.2
)%
 
34.0
%
 
36.1
%
Schedule of Deferred Tax Assets and Liabilities 
The tax effects of temporary differences between the financial reporting and income tax basis of assets and liabilities at December 31, 2017 and 2016, are as follows:
 
December 31,
2017
 
December 31,
2016
Deferred tax assets:
 
 

Debt issuance costs
$
4,181

 
$
5,001

Receivables
512,177

 
474,366

Net operating loss carryforwards
356,030

 
603,136

Equity-based compensation
14,258

 
23,042

Credit carryforwards
163,140

 
127,933

Other
32,264

 
34,257

Total gross deferred tax assets
1,082,050

 
1,267,735

Deferred tax liabilities:
 
 
 
Capitalized origination costs
(4,229
)
 
(10,804
)
Goodwill
(11,278
)
 
(15,375
)
Leased vehicles
(1,942,273
)
 
(2,421,114
)
Furniture and equipment
(7,201
)
 
(9,638
)
Derivatives
(9,966
)
 
(17,635
)
Unremitted foreign earnings
—

 
(67,720
)
Other
(925
)
 
(1,012
)
Total gross deferred tax liabilities
(1,975,872
)
 
(2,543,298
)
Valuation allowance
(3,299
)
 
(2,501
)
Net deferred tax asset (liability)
$
(897,121
)
 
$
(1,278,064
)
Summary of Valuation Allowance 
A rollforward of the valuation allowance for the years ended December 31, 2017, 2016, and 2015 is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Valuation allowance, beginning of year
$
2,501

 
$
30,489

 
$
32,901

Provision (release)
798

 
(27,988
)
 
(2,412
)
Valuation allowance, end of year
$
3,299

 
$
2,501

 
$
30,489

Reconciliation of Gross Unrecognized Tax Benefits 
A reconciliation of the beginning and ending balances of gross unrecognized tax benefits for each of the years ended December 31, 2017, 2016, and 2015 is as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Gross unrecognized tax benefits balance, January 1
$
16,736

 
$
225

 
$
166

Additions for tax positions taken in the current year
—

 
16,606

 
—

Additions for tax positions of prior years
473

 
—

 
70

Reductions for tax positions of prior years
(589
)
 
(34
)
 
(11
)
Reductions as a result of a lapse of the applicable statute of limitations
(1,874
)
 
—

 
—

Settlements
—

 
(61
)
 
—

Gross unrecognized tax benefits balance, December 31
$
14,746

 
$
16,736

 
$
225

Commitments and Contingencies (Tables)
Summary of Liabilities for Commitments and Contingencies 
The following table summarizes liabilities recorded for commitments and contingencies as of December 31, 2017 and 2016, all of which are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets:
Agreement or Legal Matter
 
Commitment or Contingency
 
December 31, 2017
 
December 31, 2016
Chrysler Agreement
 
Revenue-sharing and gain-sharing payments
 
$
6,580

 
$
10,134

Agreement with Bank of America
 
Servicer performance fee
 
8,072

 
9,797

Agreement with CBP
 
Loss-sharing payments
 
5,625

 
4,563

Other Contingencies
 
Consumer arrangements
 
6,326

 
—

Legal and regulatory proceedings
 
Aggregate legal and regulatory liabilities
 
108,800

 
39,200

Schedule of Future Minimum Rental Payments for Operating Leases 
The remaining obligations under lease commitments at December 31, 2017 are as follows:

2018
$
12,642

2019
12,771

2020
13,032

2021
12,907

2022
12,282

Thereafter
44,663

Total
$
108,297

Related-Party Transactions (Tables)
Schedule of Related Party Transactions
Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of December 31, 2017 and 2016 is as follows:
 
December 31,
2017
 
December 31,
2016
Total serviced portfolio
$
400,788

 
$
531,117

Cash collections due to owner
11,870

 
21,427

Servicing fees receivable
839

 
1,123

Other information on the serviced receivables for SBNA as of December 31, 2017 is as follows:
 
December 31,
2017
Total serviced portfolio
$
121,431

Cash collections due to owner
436

Servicing fees receivable
104

Other information on the consumer vehicle lease portfolio serviced for SBNA as of December 31, 2017 and 2016 is as follows:
 
December 31,
2017
 
December 31,
2016
Total serviced portfolio
$
321,629

 
$
1,297,317

Cash collections due to owner
—

 
78

Origination and servicing fees receivable
2,067

 
926

Revenue share reimbursement receivable
1,548

 
612

Interest expense, including unused fees, for affiliate debt facilities for the years ended December 31, 2017, 2016, and 2015 was as follows:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Line of credit agreement with Santander - New York Branch (Note 6)
$
51,735

 
$
69,877

 
$
96,753

Debt facilities with SHUSA (Note 6)
90,988

 
24,050

 
5,299


Accrued interest for affiliate debt facilities at December 31, 2017 and 2016, were comprised as follows:
 
December 31, 2017
 
December 31, 2016
Line of credit agreement with Santander - New York Branch (Note 6)
$
1,435

 
$
6,297

Debt facilities with SHUSA (Note 6)
18,670

 
1,737

Supplemental Cash Flow Information (Tables)
Schedule of Cash Flow, Supplemental Disclosures
Supplemental cash flow information for the year ended December 31, 2017 and December 31, 2016, was as follows:

For the Year Ended December 31,

2017
 
2016
 
2015
Cash paid (received) during the year for:
 
 

 

     Interest
$
942,551

 
$
796,682

 
$
635,558

     Income taxes
1,856

 
(180,323
)
 
(190,663
)
Noncash investing and financing transactions:
 
 

 

Transfer of revolving credit facilities to secured structured financings
495,991

 
146,864

 
193,180

Transfer of personal loans to held for sale
—

 
—

 
1,883,251

Computation of Basic and Diluted Earnings per Common Share (Tables)
Schedule of Computation of Basic and Diluted Earnings per Common Share
The following table represents EPS numbers for the years ended December 31, 2017, 2016 and 2015:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Earnings per common share
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
1,187,606

 
$
766,466

 
$
824,040

Weighted average number of common shares outstanding before restricted participating shares (in thousands)
359,614

 
358,032

 
354,636

Weighted average number of participating restricted common shares outstanding (in thousands)
—

 
249

 
467

Weighted average number of common shares outstanding (in thousands)
359,614

 
358,281

 
355,103

Earnings per common share
$
3.30

 
$
2.14

 
$
2.32

 
 
 
 
 
 
Earnings per common share - assuming dilution
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
1,187,606

 
$
766,466

 
$
824,040

Weighted average number of common shares outstanding (in thousands)
359,614

 
358,281

 
355,103

Effect of employee stock-based awards (in thousands)
678

 
797

 
1,060

Weighted average number of common shares outstanding - assuming dilution (in thousands)
360,292

 
359,078

 
356,163

Earnings per common share - assuming dilution
$
3.30

 
$
2.13

 
$
2.31

Fair Value of Financial Instruments (Tables)
Summary of Fair Value Estimates, Methods and Assumptions 
The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at December 31, 2017 and December 31, 2016, and the level within the fair value hierarchy:
 
December 31, 2017
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (a)
$
527,805

 
$
527,805

 
$
527,805

 
$
—

 
$
—

Finance receivables held for investment, net (b)
22,284,068

 
24,340,739

 
—

 
—

 
24,340,739

Restricted cash (a)
2,553,902

 
2,553,902

 
2,553,902

 
—

 
—

Total
$
25,365,775

 
$
27,422,446

 
$
3,081,707

 
$
—

 
$
24,340,739

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable — credit facilities (c)
$
4,848,316

 
$
4,848,316

 
$
—

 
$
—

 
$
4,848,316

Notes payable — secured structured financings (d)
22,557,895

 
22,688,381

 
—

 
12,275,408

 
10,412,973

Notes payable — related party (e)
3,754,223

 
3,754,223

 
—

 
—

 
3,754,223

Total
$
31,160,434

 
$
31,290,920

 
$
—

 
$
12,275,408

 
$
19,015,512

 
December 31, 2016
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (a)
$
160,180

 
$
160,180

 
$
160,180

 
$
—

 
$
—

Finance receivables held for investment, net (b)
23,456,506

 
24,630,599

 


 


 
24,630,599

Restricted cash (a)
2,757,299

 
2,757,299

 
2,757,299

 
—

 
—

Total
$
26,373,985

 
$
27,548,078

 
$
2,917,479

 
$
—

 
$
24,630,599

Liabilities:
 
 
 
 
 
 
 
 
 
Notes payable — credit facilities (c)
$
6,739,817

 
$
6,739,817

 
$
—

 
$
—

 
$
6,739,817

Notes payable — secured structured financings (d)
21,608,889

 
21,712,691

 
—

 
13,530,045

 
8,182,646

Notes payable — related party (e)
2,975,000

 
2,975,000

 
—

 
—

 
2,975,000

Total
$
31,323,706

 
$
31,427,508

 
$
—

 
$
13,530,045

 
$
17,897,463



(a)
Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates.
(b)
Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. The estimated fair value for the underlying financial instruments are determined as follows:
•
Retail installment contracts held for investment, net — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations.
•
Receivables from dealers held for investment and Capital lease receivables, net — Receivables from dealers held for investment and capital lease receivables are carried at amortized cost, net of credit loss allowance and gross investments, net of unearned income and allowance for lease losses, respectively. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements.
(c)
Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company.
(d)
Notes payable — secured structured financings — The estimated fair value of notes payable related to public securitizations is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of discounted cash flow analysis and market observable spreads for similar liabilities in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs.
(e)
Notes payable — related party — The carrying amount of notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company.
Assets and Liabilities Measured at Fair Value on a Recurring Basis 
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016, and are categorized using the fair value hierarchy:
 
Fair Value Measurements at December 31, 2017
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other assets — trading interest rate caps (a)
$
129,718

 
$
—

 
$
129,718

 
$
—

Due from affiliates — trading interest rate caps (a)
6,112

 
—

 
6,112

 
—

Other assets — cash flow hedging interest rate swaps (a)
39,036

 
—

 
39,036

 
—

Due from affiliates — cash flow hedging interest rate swaps (a)
6,950

 
—

 
6,950

 
—

Other assets — trading interest rate swaps (a)
7,925

 
—

 
7,925

 
—

Due from affiliates — trading interest rate swaps (a)
1,671

 
—

 
1,671

 
—

Other assets — trading options for interest rate caps (a)

20,075

 
—

 
20,075

 
—

Due from affiliates — trading options for interest rate caps (a)
12,090

 
—

 
12,090

 
—

Other liabilities — trading options for interest rate caps (a)
129,712

 
—

 
129,712

 
—

Due to affiliates — trading options for interest rate caps (a)
6,112

 
—

 
6,112

 
—

Other liabilities — trading interest rate caps (a)
20,019

 
—

 
20,019

 
—

Due to affiliates — trading interest rate caps (a)
12,090

 
—

 
12,090

 
—

Retail installment contracts acquired individually (c)
22,124

 
—

 
—

 
22,124


 
Fair Value Measurements at December 31, 2016
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other assets — trading interest rate caps (a)
$
68,676

 
$
—

 
$
68,676

 
$
—

Due from affiliates — trading interest rate caps (a)
7,593

 
—

 
7,593

 
—

Other assets — cash flow hedging interest rate swaps (a)
41,471

 
—

 
41,471

 
—

Due from affiliates — cash flow hedging interest rate swaps (a)
4,080

 
—

 
4,080

 
—

Other assets — trading interest rate swaps (a)
783

 
—

 
783

 
—

Due from affiliates — trading interest rate swaps (a)
1,292

 
—

 
1,292

 
—

Other liabilities — trading options for interest rate caps (a)
68,688

 
—

 
68,688

 
—

Due to affiliates — trading options for interest rate caps (a)
7,593

 
—

 
7,593

 
—

Other liabilities — cash flow hedging interest rate swaps (a)
482

 
—

 
482

 
—

Due to affiliates — cash flow hedging interest rate swaps (a)
451

 
—

 
451

 
—

Other liabilities — trading interest rate swaps (a)
42

 
—

 
42

 
—

Due to affiliates — trading interest rate swaps (a)
95

 
—

 
95

 
—

Other liabilities — total return settlement (a,b)
30,618

 
—

 
—

 
30,618

Retail installment contracts acquired individually (c)
24,495

 
—

 
—

 
24,495



(a)
The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 8).
(b)
The significant unobservable inputs for total return settlement derivative contracts used in the fair value measurement of the Company's liabilities are discount percentages, which are based on comparable financial instruments.
(c)
For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the consolidated statement of income.
Changes in Level 3 Balances, Assets 
The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 for the years ended December 31, 2017, 2016 and 2015:
 
Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
Fair value, beginning of year
$
24,495

 
$
6,770

 
$
—

Additions / issuances
21,672

 
36,623

 
6,770

Net collection activities
(28,598
)
 
(18,850
)
 
—

Loans sold
—

 
(48
)
 
—

Gains recognized in earnings
4,555

 
—

 
—

Fair value, end of year
$
22,124

 
$
24,495

 
$
6,770

Change in Level 3 Balances, Liabilities 
The following table presents the changes in the total return settlement balance, which is classified as Level 3, for the years ended December 31, 2017, 2016, and 2015:
 
Year Ended
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
Fair value, beginning of year
$
30,618

 
$
53,432

 
$
48,893

Losses recognized in earnings
505

 
4,365

 
10,973

Settlements
(31,123
)
 
(27,179
)
 
(6,434
)
Fair value, end of year
$
—

 
$
30,618

 
$
53,432

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis 
The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at December 31, 2017 and 2016, and are categorized using the fair value hierarchy:
 
Fair Value Measurements at December 31, 2017
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Lower of cost or fair value expense for the year ended December 31, 2017
Other assets — vehicles (a)
$
293,546

 
$
—

 
$
293,546

 
$
—

 
$
—

Personal loans held for sale (b)
1,062,089

 
—

 
—

 
1,062,089

 
374,374

Retail installment contracts held for sale (c)
1,148,332

 
—

 
—

 
1,148,332


11,686

Auto loans impaired due to bankruptcy (d)
121,578

 
—

 
121,578

 
—

 
75,194

 
 
Fair Value Measurements at December 31, 2016
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Lower of cost or fair value expense for the year ended December 31, 2016
Other assets — vehicles (a)
$
257,382

 
$
—

 
$
257,382

 
$
—

 
$
—

Personal loans held for sale (b)
1,077,600

 
—

 
—

 
1,077,600

 
414,703

Retail installment contracts held for sale (c)
1,045,815

 
—

 
—

 
1,045,815

 
8,913

(a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices.
(b) Represents the portion of the portfolio specifically impaired as of period-end. The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period.
(c) The estimated fair value is calculated based on a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns.
(d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices.
Quantitative Information About Significant Unobservable Inputs for Assets Measured at Fair Value 
The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2017:
Financial Instruments
 
Fair Value at December 31, 2017
 
Valuation Technique
 
Unobservable Inputs
 
Range
Financial Assets:
Retail installment contracts held for investment
 
$22,124
 
Discounted Cash Flow
 
Discount Rate
 
8% - 10%
Default Rate
 
15% - 20%
Prepayment Rate
 
6% - 8%
 
 
 
Loss Severity Rate
 
50% - 60%
Personal loans held for sale
 
$1,062,089
 
Lower of Market or Income Approach
 
Market Approach
 
 
 
 
 
Market Participant View
 
70% - 80%
 
 
 
Income Approach
 
 
 
 
 
Discount Rate
 
15% - 20%
 
 
 
Default Rate
 
30% - 40%
 
 
 
Net Principal Payment Rate
 
50% - 70%
 
 
 
Loss Severity Rate
 
90% - 95%
Retail installment contracts held for sale
 
$1,148,332
 
Discounted Cash Flow
 
Discount Rate
 
3% - 6%
Default Rate
 
3% - 4%
Prepayment Rate
 
15% - 20%
 
 
 
Loss Severity Rate
 
50% - 60%
The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2016:
Financial Instruments
 
Fair Value at December 31, 2016
 
Valuation Technique
 
Unobservable Inputs
 
Range
Financial Assets:
Retail installment contracts held for investment
 
$24,495
 
Discounted Cash Flow
 
Discount Rate
 
8% - 10%
Default Rate
 
15% - 20%
Prepayment Rate
 
6% - 8%
 
 
 
Loss Severity Rate
 
50% - 60%
Personal loans held for sale

 
$1,077,600
 
Lower of Market or Income Approach

 
Market Approach
 
 
 
 
 
Market Participant View

 
70% - 80%

 
 
 
Income Approach
 
 
 
 
 
Discount Rate
 
15% - 20%
 
 
 
Default Rate

 
30% - 40%
 
 
 
Net Principal Payment Rate

 
50% - 70%
 
 
 
Loss Severity Rate

 
90% - 95%
Retail installment contracts held for sale
 
$1,045,815
 
Discounted Cash Flow
 
Discount Rate
 
3% - 6%
Default Rate
 
3% - 4%
Prepayment Rate
 
15% - 20%
 
 
 
Loss Severity Rate
 
50% - 60%
Total return settlement
 
$30,618
 
Discounted Cash Flow
 
Discount Rate
 
6.4%
Employee Benefit Plans (Tables)
Summary of Stock Options and Related Activity 
A summary of the status and changes of the Company's nonvested stock options as of and for the year ended December 31, 2017, is presented below:
 
Shares
 
Weighted Average Grant Date Fair Value
Non-vested at January 1, 2017
1,151,067

 
$
7.02

Granted
—

 
—

Vested
(216,289
)
 
7.66

Forfeited or expired
(694,940
)
 
6.73

Non-vested at December 31, 2017
239,838

 
$
7.29

A summary of the Company’s stock options and related activity as of and for the year ended December 31, 2017 is as follows:
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic
Value
Options outstanding at January 1, 2017
4,295,830

 
$
12.70

 
5.6
 
$
12,982

Exercised
(1,435,606
)
 
9.51

 

 
8,047

Expired
(470,276
)
 
20.28

 

 


Forfeited
(694,940
)
 
14.94

 

 

Options outstanding at December 31, 2017
1,695,008

 
$
12.39

 
4.7
 
$
12,058

Options exercisable at December 31, 2017
1,455,170

 
$
10.91

 
4.3
 
$
11,851

Options expected to vest at December 31, 2017
239,838

 
$
21.35

 
6.7
 


Summary of the Assumptions Used to Estimate the Fair Value of Stock Options 
The following summarizes the assumptions used for estimating the fair value of stock options granted to employees for the years ended December 31, 2016, and 2015.
 
For the Year Ended December 31,
 
2016
 
2015
Assumption
 
 
 
Risk-free interest rate
1.79%
 
1.64% - 1.97%
Expected life (in years)
6.5
 
6.0 - 6.5
Expected volatility
33%
 
32% - 48%
Dividend yield
3.69%
 
1.6% - 2.7%
Weighted average grant date fair value
$3.14
 
$6.92 - $9.67
Shareholders' Equity (Tables)
Summary of Changes in Accumulated Other Comprehensive Income (Loss) 
A summary of changes in accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2017, 2016, and 2015 is as follows:
 
Unrealized gains (losses) on cash flow hedges
Balance - January 1, 2015
$
3,553

Other comprehensive income (loss) before reclassifications (gross)
(34,182
)
Amounts (gross) reclassified out of accumulated other comprehensive income
32,754

Balance - December 31, 2015
2,125

Other comprehensive income (loss) before reclassifications (gross)
(1,324
)
Amounts (gross) reclassified out of accumulated other comprehensive income
27,458

Balance - December 31, 2016
28,259

Other comprehensive income (loss) before reclassifications (gross)
21,962

Amounts (gross) reclassified out of accumulated other comprehensive income
(5,959
)
Balance - December 31, 2017
$
44,262

Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) 
Amounts (gross) reclassified out of accumulated other comprehensive income (loss) consist of the following:
 
Year Ended December 31, 2017
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
Reclassification
Amount reclassified
 
Income statement line item
 
Amount reclassified
 
Income statement line item
 
Amount reclassified
 
Income statement line item

 
 
 
 
 
 
 
 
 
 
 
Cash flow hedges
$
(6,060
)
 
Interest Expense
 
$
43,898

 
Interest Expense
 
$
50,860

 
Interest Expense
Tax expense (benefit)
101

 
 
 
(16,440
)
 
 
 
(18,106
)
 
 
Net of tax
$
(5,959
)
 
 
 
$
27,458

 
 
 
$
32,754

 
 
Investment Gains (Losses), Net (Tables)
Summary of Investment Gains (Losses), Net
Investment gains (losses), net was comprised of the following for the years ended December 31, 2017, 2016, and 2015:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Gain (loss) on sale of loans and leases
$
17,554

 
$
(11,549
)
 
$
155,408

Lower of cost or market adjustments
(386,060
)
 
(423,616
)
 
(236,396
)
Other gains / (losses and impairments)
2,067

 
(9,594
)
 
(14,226
)
 
$
(366,439
)
 
$
(444,759
)
 
$
(95,214
)
Quarterly Financial Data (unaudited) (Tables)
Schedule of Quarterly Financial Results
The following is a summary of quarterly financial results:
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year Ended December 31, 2017
 
 
 
 
 
 
 
Total finance and other interest income
$
1,631,244

 
$
1,666,721

 
$
1,649,376

 
$
1,616,679

Net finance and other interest income
1,113,984

 
1,135,126

 
1,059,121

 
1,009,542

Provision for credit losses
635,013

 
520,555

 
536,447

 
562,346

Income (loss) before income taxes
221,428

 
348,108

 
277,773

 
(23,795
)
Net income (loss)
143,427

 
264,675

 
199,388

 
580,116

Net income (loss) per common share (basic)
$
0.40

 
$
0.74

 
$
0.55

 
$
1.61

Net income (loss) per common share (diluted)
$
0.40

 
$
0.74

 
$
0.55

 
$
1.61

 
 
 
 
 
 
 
 
Allowance for credit losses
$
3,453,075

 
$
3,458,410

 
$
3,380,763

 
$
3,269,506

Finance receivables held for investment, net
23,444,625

 
23,634,914

 
22,667,203

 
22,427,769

Total assets
39,061,940

 
39,507,482

 
38,765,557

 
39,422,304

Total equity
5,418,998

 
5,678,733

 
5,885,234

 
6,480,501

 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Total finance and other interest income
$
1,619,899

 
$
1,643,989

 
$
1,638,525

 
$
1,627,183

Net finance and other interest income
1,213,804

 
1,202,255

 
1,178,620

 
1,131,974

Provision for credit losses
660,170

 
511,921

 
610,398

 
685,711

Income before income taxes
328,942

 
437,563

 
304,020

 
90,186

Net income
208,299

 
283,345

 
213,547

 
61,275

Net income per common share (basic)
$
0.58

 
$
0.79

 
$
0.60

 
$
0.17

Net income per common share (diluted)
$
0.58

 
$
0.79

 
$
0.59

 
$
0.17

 
 
 
 
 
 
 
 
Allowance for credit losses
$
3,337,490

 
$
3,436,325

 
$
3,412,977

 
$
3,421,767

Finance receivables held for investment, net
23,961,903

 
23,477,426

 
23,686,391

 
23,481,001

Total assets
37,768,959

 
38,490,611

 
38,771,636

 
38,539,104

Total equity
4,604,739

 
4,876,712

 
5,117,657

 
5,238,619

Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Narrative (Details)
12 Months Ended
Dec. 31, 2017
SHUSA
 
Basis Of Presentation And Significant Accounting Policies [Line Items]
 
Ownership percentage held by third parties
68.10% 
Other Shareholders
 
Basis Of Presentation And Significant Accounting Policies [Line Items]
 
Ownership percentage held by third parties
31.90% 
Chrysler Group
 
Basis Of Presentation And Significant Accounting Policies [Line Items]
 
Financing contract term
10 years 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Business Segment Information (Details)
12 Months Ended
Dec. 31, 2017
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of reportable segments
1 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Retail Installment Contracts (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Loans and Leases Receivable Disclosure [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
60 days 
Chrysler Capital Securitization
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
 
90.00% 
Third Party
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
90.00% 
50.00% 
Retail Installment Contracts
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
 
Threshold period of repayment performance for TDRs to return to accrual status
6 months 
 
Retail Installment Contracts |
Minimum
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Weighted average prepayment rate
6.10% 
6.00% 
Retail Installment Contracts |
Maximum
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Weighted average prepayment rate
10.40% 
10.50% 
Retail Installment Contracts |
Chrysler Capital Securitization
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
 
90.00% 
Retail Installment Contracts |
Third Party
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
90.00% 
50.00% 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Personal Loans, Net (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Loans and Leases Receivable Disclosure [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
60 days 
Revolving Unsecured Consumer Loans, Net
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
 
Amortizing Unsecured Consumer Loans, Net
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
180 days 
 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Provision for Credit Losses (Details)
12 Months Ended
Dec. 31, 2017
Retail Installment Contracts
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
Period for loans to become contractually delinquent
120 days 
Term Unsecured Consumer Loans
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
Period for loans to become contractually delinquent
120 days 
Revolving Unsecured Consumer Loans, Net
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
Period for loans to become contractually delinquent
180 days 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Troubled Debt Restructurings (Details)
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
TDRs, deferral period (or more)
90 days 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Leased Vehicles, Net (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Lease, period to be considered delinquent
60 days 
 
 
Operating lease impairment
$ 0 
$ 0 
$ 0 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Repossessed Vehicles and Repossession Expense (Details)
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Inventory repossession period
60 days 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Furniture and Equipment (Details) (Furniture and Equipment, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment [Line Items]
 
 
 
Depreciation and amortization
$ 17,682 
$ 16,357 
$ 16,111 
Minimum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Furniture and equipment, useful life
3 years 
 
 
Maximum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Furniture and equipment, useful life
10 years 
 
 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Derivative Financial Instruments (Details)
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Increase in ownership in the invested company
22.00% 
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Recently Adopted Accounting Standards (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Cumulative-effect adjustment upon adoption
 
$ 26,552 
Excess tax benefits, net of tax
796 
 
Retained Earnings
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Cumulative-effect adjustment upon adoption
 
25,113 
Accounting Standards Update 2016-09, Excess Tax Benefit Component |
Retained Earnings
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Cumulative-effect adjustment upon adoption
 
26,552 
Accounting Standards Update 2016-09, Forfeiture Rate Component |
Retained Earnings
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Cumulative-effect adjustment upon adoption
 
$ (1,439)
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Recent Accounting Pronouncements (Details) (ASU 2018-02, Pro Forma, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
ASU 2018-02 |
Pro Forma
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Stranded income tax benefits
$ 6,100 
Finance Receivables - Finance Receivables Held for Investment, Net (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
Purchased receivables
$ 27,839 
 
 
 
$ 158,264 
 
 
 
Capital lease receivables (Note 3)
17,339 
 
 
 
22,034 
 
 
 
Finance receivables held for investment, net
22,427,769 
22,667,203 
23,634,914 
23,444,625 
23,481,001 
23,686,391 
23,477,426 
23,961,903 
Retail installment contracts acquired individually at fair value
22,124 
 
 
 
24,495 
 
 
 
Retail installment contracts acquired individually
 
 
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
Retail installment contracts held for investment, net
22,362,509 
 
 
 
23,219,724 
 
 
 
Receivables from dealers
 
 
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
Retail installment contracts held for investment, net
15,623 
 
 
 
68,707 
 
 
 
Personal Loans
 
 
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
Retail installment contracts held for investment, net
$ 4,459 
 
 
 
$ 12,272 
 
 
 
Finance Receivables - Held for Investment Portfolio (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Retail Installment Contracts Acquired Individually
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
$ 22,362,509 
$ 23,219,724 
Retail Installment Contracts Acquired Individually |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
17,901,026 
19,317,593 
Retail Installment Contracts Acquired Individually |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
4,461,483 
3,902,131 
Retail Installment Contracts Acquired Individually |
Unpaid principal balance |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
19,681,394 
21,528,406 
Retail Installment Contracts Acquired Individually |
Unpaid principal balance |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
6,261,894 
5,599,567 
Retail Installment Contracts Acquired Individually |
Credit loss allowance - specific |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
0 
0 
Retail Installment Contracts Acquired Individually |
Credit loss allowance - specific |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(1,731,320)
(1,611,295)
Retail Installment Contracts Acquired Individually |
Credit loss allowance - collective |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(1,529,815)
(1,799,760)
Retail Installment Contracts Acquired Individually |
Credit loss allowance - collective |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
0 
0 
Retail Installment Contracts Acquired Individually |
Discount |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(309,191)
(467,757)
Retail Installment Contracts Acquired Individually |
Discount |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(74,832)
(91,359)
Retail Installment Contracts Acquired Individually |
Capitalized origination costs and fees |
Non- TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
58,638 
56,704 
Retail Installment Contracts Acquired Individually |
Capitalized origination costs and fees |
TDR
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
5,741 
5,218 
Receivables from Dealers
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
15,623 
68,707 
Receivables from Dealers |
Unpaid principal balance
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
15,787 
69,431 
Receivables from Dealers |
Credit loss allowance - specific
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(164)
0 
Receivables from Dealers |
Credit loss allowance - collective
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
 
(724)
Receivables from Dealers |
Discount
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
0 
0 
Receivables from Dealers |
Capitalized origination costs and fees
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
0 
0 
Personal Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
4,459 
12,272 
Lower of cost or market adjustments
 
7,521 
Personal Loans |
Unpaid principal balance
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
6,887 
19,361 
Personal Loans |
Credit loss allowance - specific
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(2,565)
0 
Personal Loans |
Credit loss allowance - collective
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
0 
0 
Personal Loans |
Discount
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
(1)
(7,721)
Personal Loans |
Capitalized origination costs and fees
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Retail installment contracts held for investment, net
$ 138 
$ 632 
Finance Receivables - Retail Installment Contracts, Narrative (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Loan originations
$ 292,891 
$ 568,009 
$ 0 
Texas
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Retail installment contracts held for investment
16.00% 
 
 
Florida
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Retail installment contracts held for investment
12.00% 
 
 
California
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Retail installment contracts held for investment
9.00% 
 
 
Georgia
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Retail installment contracts held for investment
6.00% 
 
 
Other States (less than 5%)
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Retail installment contracts held for investment
5.00% 
 
 
Chrysler Capital Loans
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Loan originations
6,713,239 
8,050,653 
 
Chrysler Capital Loans |
Retail Installment Contracts |
Automobile Loan
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Financing receivable
8,234,653 
7,365,444 
 
Chrysler Capital Loans |
Credit Concentration Risk |
Accounts Receivable
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Percentage of loan origination
47.00% 
49.00% 
 
Chrysler Capital Leases
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Loan originations
5,987,648 
5,584,149 
 
Chrysler Capital Leases |
Credit Concentration Risk |
Accounts Receivable |
Automobile Loan
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Percentage of loan origination
37.00% 
32.00% 
 
Fleet Contract Receivables
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Impaired receivable, unpaid principal balance
641,003 
848,918 
 
Financing receivable
$ 18,315 
$ 21,863 
 
Finance Receivables - Finance Receivables Held for Investment with Deteriorated Credit Quality (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Receivables [Abstract]
 
 
Outstanding balance
$ 43,474 
$ 231,360 
Outstanding recorded investment, net of impairment
$ 28,069 
$ 159,451 
Finance Receivables - Purchased Receivables, Narrative (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Financing receivable, nonperforming loans, period for classification
60 days 
 
 
Retail Installment Contracts Portfolio
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Financing receivable, nonperforming loans, period for classification
60 days 
 
 
Retail Installment Contracts Portfolio |
Unpaid Principal Balance
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Unpaid principal balance of loans recognized
$ 290,613 
$ 466,050 
$ 95,596 
Receivables Acquired with Deteriorated Credit Quality
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Financing receivable
$ 99,301 
 
 
Finance Receivables - Changes in Accretable Yield on Purchased Receivables Portfolios (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
 
 
 
Balance — beginning of year
$ 107,041 
$ 178,582 
$ 268,927 
Accretion of accretable yield
(30,129)
(69,701)
(91,157)
Disposals/transfers
(62,183)
0 
0 
Reclassifications from nonaccretable difference
4,735 
(1,840)
812 
Balance — end of year
$ 19,464 
$ 107,041 
$ 178,582 
Finance Receivables - Receivable from Dealers, Narrative (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Committed amount
$ 3,000,000,000 
 
Notes payable — credit facilities
4,848,316,000 
6,739,817,000 
Receivables from Dealers
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Committed amount
 
50,000,000 
Notes payable — credit facilities
$ 50,000,000 
 
Virginia
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Percentage of remaining receivable from dealers held for investment
62.00% 
 
New York
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Percentage of remaining receivable from dealers held for investment
27.00% 
 
Missouri
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Percentage of remaining receivable from dealers held for investment
10.00% 
 
Wisconsin
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Percentage of remaining receivable from dealers held for investment
1.00% 
 
Finance Receivables - Personal Loans, Narrative (Details) (Consumer Portfolio Segment, Personal Loans, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Consumer Portfolio Segment |
Personal Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing receivable
$ 4,459 
$ 11,733 
Finance Receivables - Carrying Value of Financing Receivables Held For Sale (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total assets held for sale
$ 2,210,421 
$ 2,123,415 
Retail installment contracts acquired individually
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total assets held for sale
1,148,332 
1,045,815 
Personal loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total assets held for sale
$ 1,062,089 
$ 1,077,600 
Finance Receivables - Sales of Retail Installment Contracts and Charged-off Assets (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
 
Sales of retail installment contracts to third parties
$ 260,568 
$ 3,694,019 
$ 7,862,520 
Proceeds from sales of charged-off assets
$ 93,619 
$ 64,847 
$ 122,436 
Finance Receivables - Servicing of Retail Installment Contracts (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Receivables [Abstract]
 
 
Serviced balance of retail installment contracts and leases sold to third parties
$ 5,771,085 
$ 10,116,788 
Leases - Summary of Leased Vehicles (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Leases [Abstract]
 
 
Leased vehicles
$ 14,285,769 
$ 11,939,295 
Less: accumulated depreciation
(3,110,167)
(2,326,342)
Depreciated net capitalized cost
11,175,602 
9,612,953 
Manufacturer subvention payments, net of accretion
(1,042,477)
(1,066,531)
Origination fees and other costs
27,202 
18,206 
Depreciated net capitalized cost
$ 10,160,327 
$ 8,564,628 
Leases - Future Minimum Rental Payments Due to Lessor under Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Operating Leases, Future Minimum Payments Receivable [Abstract]
 
2018
$ 1,650,271 
2019
1,034,470 
2020
374,598 
2021
12,317 
Thereafter
0 
Total
$ 3,071,656 
Leases - Summary of Capital Lease Receivables (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Leases [Abstract]
 
 
Gross investment in capital leases
$ 27,234 
$ 39,417 
Origination fees and other
124 
150 
Less unearned income
(4,377)
(7,545)
Net investment in capital leases before allowance
22,981 
32,022 
Less: allowance for lease losses
(5,642)
(9,988)
Net investment in capital leases
$ 17,339 
$ 22,034 
Leases - Future Minimum Rental Receivable under Capital Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Capital Leases, Future Minimum Payments Receivable [Abstract]
 
2018
$ 11,050 
2019
6,809 
2020
4,417 
2021
2,960 
Thereafter
1,998 
Total
$ 27,234 
Credit Loss Allowance and Credit Quality - Activity in Credit Loss Allowance (Details) (USD $)
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
Retail Installment Contracts Acquired Individually
Dec. 31, 2016
Retail Installment Contracts Acquired Individually
Dec. 31, 2015
Retail Installment Contracts Acquired Individually
Dec. 31, 2017
Receivables from Dealers
Dec. 31, 2016
Receivables from Dealers
Dec. 31, 2015
Receivables from Dealers
Dec. 31, 2017
Personal Loans
Dec. 31, 2015
Personal Loans
Dec. 31, 2017
Capital Leases
Dec. 31, 2016
Capital Leases
Dec. 31, 2015
Capital Leases
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance — beginning of year
$ 3,269,506,000 
$ 3,380,763,000 
$ 3,458,410,000 
$ 3,453,075,000 
$ 3,421,767,000 
$ 3,412,977,000 
$ 3,436,325,000 
$ 3,337,490,000 
$ 3,411,055,000 
$ 3,197,414,000 
$ 2,586,685,000 
$ 724,000 
$ 916,000 
$ 674,000 
$ 0 
$ 348,660,000 
$ 9,988,000 
$ 19,878,000 
$ 9,589,000 
Provision for credit losses
 
 
 
 
 
 
 
 
2,244,182,000 
2,471,490,000 
2,433,617,000 
(560,000)
201,000 
242,000 
10,691,000 
324,634,000 
48,000 
(506,000)
41,196,000 
Charge-offs
 
 
 
 
 
 
 
 
(4,796,216,000)
(4,723,649,000)
(3,897,480,000)
0 
(393,000)
0 
(8,945,000)
(695,918,000)
(11,069,000)
(33,476,000)
(64,209,000)
Recoveries
 
 
 
 
 
 
 
 
2,402,114,000 
2,465,800,000 
2,101,709,000 
0 
0 
0 
819,000 
22,624,000 
6,675,000 
24,092,000 
33,302,000 
Impact of loans transferred to held for sale
 
 
 
 
 
 
 
 
 
 
(27,117,000)
 
 
0 
 
0 
 
 
 
Balance — end of year
3,269,506,000 
3,380,763,000 
3,458,410,000 
3,453,075,000 
3,421,767,000 
3,412,977,000 
3,436,325,000 
3,337,490,000 
3,261,135,000 
3,411,055,000 
3,197,414,000 
164,000 
724,000 
916,000 
2,565,000 
0 
5,642,000 
9,988,000 
19,878,000 
Write-down of loans for which a bankruptcy notice was received
 
 
 
 
 
 
 
 
75,000,000 
0 
0 
 
 
 
 
 
 
 
 
Lower of cost or market adjustments
 
 
 
 
 
 
 
 
 
 
$ 73,388,000 
 
 
 
 
$ 377,598,000 
 
 
 
Credit Loss Allowance and Credit Quality - Delinquencies, Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Financing receivable, nonperforming loans, period for classification
60 days 
 
Chrysler Capital Securitization
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
 
90.00% 
Third Party
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Loan origination, required minimum payment, percentage of scheduled payment
90.00% 
50.00% 
Receivables From Dealers
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Financing receivable, nonperforming loans, period for classification
90 days 
 
Financing receivable, recorded investment, past due
$ 0 
$ 0 
Personal Loans |
Consumer Portfolio Segment |
Unfunded Loan Commitment |
Unpaid Principal Balance
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Financing receivable, recorded investment, 90 days past due and still accruing
130,034,000 
129,974,000 
Retail installment contracts held for sale
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Financing receivable, recorded investment, past due
$ 1,701,000 
$ 33,886,000 
Credit Loss Allowance and Credit Quality - Summary of Delinquencies (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Principal, 30-59 days past due
$ 2,827,678 
$ 2,925,503 
Delinquent principal over 59 days
1,544,583 
1,526,743 
Total delinquent principal
4,372,261 
4,452,246 
Loans Acquired Individually
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Principal, 30-59 days past due
2,822,686 
2,911,800 
Delinquent principal over 59 days
1,541,728 
1,520,105 
Total delinquent principal
4,364,414 
4,431,905 
Purchased Receivables Portfolios
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Principal, 30-59 days past due
4,992 
13,703 
Delinquent principal over 59 days
2,855 
6,638 
Total delinquent principal
$ 7,847 
$ 20,341 
Credit Loss Allowance and Credit Quality - Nonaccrual Status (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
TDR
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total nonaccrual principal
$ 1,390,373 
$ 665,068 
Retail Installment Contracts Acquired Individually, Held For Investment
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total nonaccrual principal
2,057,299 
1,386,218 
Percent
7.90% 
5.10% 
Retail Installment Contracts Acquired Individually, Held For Investment |
Non- TDR
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total nonaccrual principal
666,926 
721,150 
Percent
2.60% 
2.60% 
Retail Installment Contracts Acquired Individually, Held For Investment |
TDR
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total nonaccrual principal
$ 1,390,373 
$ 665,068 
Percent
5.40% 
2.40% 
Credit Loss Allowance and Credit Quality - Credit Risk Profile (Details) (Retail Installment Contracts Held for Investment)
Dec. 31, 2017
Dec. 31, 2016
Commercial Portfolio Segment |
No FICO Score
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
2.50% 
3.10% 
Consumer Portfolio Segment |
No FICO Score
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
11.20% 
12.20% 
Consumer Portfolio Segment |
FICO Band Less Than 540
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
21.80% 
22.10% 
Consumer Portfolio Segment |
FICO Band 540-599
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
32.00% 
31.40% 
Consumer Portfolio Segment |
FICO Band 600-639
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
17.40% 
17.40% 
Consumer Portfolio Segment |
FICO Band Greater Than 640
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Finance receivable, percentage of total
15.10% 
13.80% 
Credit Loss Allowance and Credit Quality - Commercial Loan Credit Quality Indicators for Receivables from Dealers Held for Investment (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fleet Contract Receivables
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
$ 18,315 
$ 21,863 
Fleet Contract Receivables |
Pass
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
12,276 
17,585 
Fleet Contract Receivables |
Special Mention
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
5,324 
2,790 
Fleet Contract Receivables |
Substandard
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
715 
1,488 
Fleet Contract Receivables |
Doubtful
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
0 
0 
Fleet Contract Receivables |
Loss
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
0 
0 
Receivables from Dealers Held for Investments
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
15,787 
69,431 
Receivables from Dealers Held for Investments |
Pass
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
14,130 
67,681 
Receivables from Dealers Held for Investments |
Special Mention
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
1,657 
0 
Receivables from Dealers Held for Investments |
Substandard
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
0 
1,750 
Receivables from Dealers Held for Investments |
Doubtful
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
0 
0 
Receivables from Dealers Held for Investments |
Loss
 
 
Financing Receivable Recorded Investment [Line Items]
 
 
Financing receivable
$ 0 
$ 0 
Credit Loss Allowance and Credit Quality - Troubled Debt Restructurings, Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Modifications [Line Items]
 
 
TDRs, deferral period (or more)
90 days 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
60 days 
TDRs, number of days past due
60 days 
 
Loans classified as TDRs that were placed on nonaccrual status
$ 790,461,000 
 
Interest received applied on TDRs on nonaccrual status
56,740,000 
 
TDR
 
 
Financing Receivable, Modifications [Line Items]
 
 
Nonaccrual status loans
1,390,373,000 
665,068,000 
Nonaccrual status loans which followed cost recovery method
790,461,000 
0 
TDR |
TDRs Less Than 60 Days Past Due
 
 
Financing Receivable, Modifications [Line Items]
 
 
Loans classified as TDRs that were placed on nonaccrual status
652,679,000 
 
Retail Installment Contracts
 
 
Financing Receivable, Modifications [Line Items]
 
 
Threshold period past due for nonaccrual state of financing receivables
60 days 
 
Retail Installment Contracts Acquired Individually
 
 
Financing Receivable, Modifications [Line Items]
 
 
TDRs, deferral period (or more)
90 days 
 
Receivables From Dealers
 
 
Financing Receivable, Modifications [Line Items]
 
 
Total TDR principal
$ 0 
$ 0 
Retail Installment Contracts
 
 
Financing Receivable, Modifications [Line Items]
 
 
TDRs, number of days past due considered subsequently defaulted
120 days 
 
Personal Loans
 
 
Financing Receivable, Modifications [Line Items]
 
 
TDRs, number of days past due considered subsequently defaulted
180 days 
 
Credit Loss Allowance and Credit Quality - Loans Modified in TDRs (Details) (Retail Installment Contracts, USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Collateral Dependent
Financing Receivable, Modifications [Line Items]
 
 
 
Outstanding recorded investment
$ 6,261,432,000 
$ 5,637,792,000 
$ 64,700,000 
Impairment
(1,731,320,000)
(1,611,295,000)
 
Outstanding recorded investment, net of impairment
4,530,112,000 
4,026,497,000 
 
TDR write down
 
 
$ 29,200,000 
Credit Loss Allowance and Credit Quality - Delinquent TDRs (Details) (Retail Installment Contracts, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Retail Installment Contracts
 
 
Troubled Debt Restructuring Debtor Current Period [Line Items]
 
 
Principal, 31-60 days past due
$ 1,332,239 
$ 1,253,848 
Delinquent principal over 60 days
818,938 
736,691 
Total delinquent TDR principal
$ 2,151,177 
$ 1,990,539 
Credit Loss Allowance and Credit Quality - Average Recorded Investment and Income Recognized on TDR Loans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Retail Installment Contracts
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Average outstanding recorded investment in TDRs
$ 6,002,715 
$ 5,079,782 
$ 4,361,962 
Interest income recognized
946,606 
802,048 
716,054 
Personal Loans
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Average outstanding recorded investment in TDRs
 
 
17,150 
Interest income recognized
 
 
$ 2,220 
Credit Loss Allowance and Credit Quality - Financial Effects of TDRs (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
contract
Dec. 31, 2016
contract
Dec. 31, 2015
contract
Retail Installment Contracts
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Outstanding recorded investment before TDR
$ 3,547,456 
$ 3,394,308 
$ 3,417,884 
Outstanding recorded investment after TDR
3,541,968 
3,419,990 
3,445,103 
Number of contracts
204,775 
191,385 
198,325 
Personal Loans
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Outstanding recorded investment before TDR
 
 
15,418 
Outstanding recorded investment after TDR
 
 
$ 15,340 
Number of contracts
 
 
12,501 
Credit Loss Allowance and Credit Quality - Defaults in Loan Modifications Accounted as TDRs (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
contract
Dec. 31, 2016
contract
Dec. 31, 2015
contract
Retail Installment Contracts
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Recorded investment in TDRs that subsequently defaulted
$ 820,765 
$ 788,933 
$ 788,297 
Number of contracts
46,600 
44,972 
45,840 
Personal Loans
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
Recorded investment in TDRs that subsequently defaulted
 
 
$ 5,346 
Number of contracts
 
 
4,919 
Goodwill and Intangibles - Narrative (Details) (USD $)
12 Months Ended 9 Months Ended
Dec. 31, 2017
segment
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Intangible Assets, Amortization Period
Dec. 31, 2016
Trademarks
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
 
Number of operating segments
1 
 
 
 
 
Number of reportable segments
1 
 
 
 
 
Goodwill
$ 74,056,000 
$ 74,056,000 
$ 74,056,000 
 
 
Goodwill amortization deductible for tax purposes
5,463,000 
5,463,000 
5,463,000 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Useful life
 
 
 
 
15 years 
Amortization expense
9,240,000 
8,411,000 
6,742,000 
900,000 
 
Impairment of intangible assets
$ 0 
$ 0 
$ 3,500,000 
 
 
Weighted average useful life of amortizing intangible assets
8 years 1 month 6 days 
8 years 6 months 
2 years 10 months 24 days 
 
 
Goodwill and Intangibles - Components of Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Customer relationships
Dec. 31, 2016
Customer relationships
Dec. 31, 2017
Software and technology
Dec. 31, 2016
Software and technology
Dec. 31, 2016
Trademarks
Dec. 31, 2017
Trademarks
Dec. 31, 2017
Trademarks
Minimum
Dec. 31, 2016
Trademarks
Minimum
Dec. 31, 2017
Trademarks
Maximum
Dec. 31, 2016
Trademarks
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Useful Life
 
 
10 years 
10 years 
3 years 
3 years 
15 years 
 
3 years 
3 years 
15 years 
15 years 
Gross Carrying Amount
$ 66,350 
$ 66,275 
$ 12,400 
$ 12,400 
$ 33,603 
$ 33,528 
$ 20,347 
$ 20,347 
 
 
 
 
Accumulated Amortization
(36,616)
(33,652)
(11,883)
(10,643)
(20,286)
(19,762)
(3,247)
(4,447)
 
 
 
 
Net Carrying Value
$ 29,734 
$ 32,623 
$ 517 
$ 1,757 
$ 13,317 
$ 13,766 
$ 17,100 
$ 15,900 
 
 
 
 
Goodwill and Intangibles - Schedule of Estimated Future Amortization Expense (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2018
$ 8,400 
 
2019
5,746 
 
2020
3,288 
 
2021
1,200 
 
2022 and thereafter
11,100 
 
Net Carrying Value
$ 29,734 
$ 32,623 
Debt - Schedule of Credit Facilities (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Line of Credit Facility [Line Items]
 
 
Utilized Balance
$ 4,848,316,000 
$ 6,739,817,000 
Committed Amount
3,000,000,000 
 
Unsecured Debt
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
3,000,000,000 
1,316,568,000 
Total revolving credit facilities
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
8,598,316,000 
9,714,817,000 
Committed Amount
18,444,483,000 
16,693,309,000 
Assets Pledged
5,647,589,000 
8,606,745,000 
Restricted Cash Pledged
132,024,000 
188,730,000 
Total facilities with third parties
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
4,848,316,000 
6,739,817,000 
Committed Amount
10,694,483,000 
10,393,309,000 
Assets Pledged
5,647,589,000 
8,606,745,000 
Restricted Cash Pledged
132,024,000 
188,730,000 
Warehouse line, due January 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
336,484,000 
153,784,000 
Committed Amount
500,000,000 
500,000,000 
Effective Rate
2.87% 
3.17% 
Assets Pledged
473,208,000 
213,578,000 
Restricted Cash Pledged
0 
0 
Warehouse line, due Various
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
339,145,000 
462,085,000 
Committed Amount
1,250,000,000 
1,250,000,000 
Effective Rate
2.53% 
2.52% 
Assets Pledged
461,353,000 
653,014,000 
Restricted Cash Pledged
12,645,000 
14,916,000 
Warehouse line, due August 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
2,044,843,000 
 
Committed Amount
3,900,000,000 
 
Effective Rate
2.96% 
 
Assets Pledged
2,929,890,000 
 
Restricted Cash Pledged
53,639,000 
 
Warehouse line due December 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
0 
 
Committed Amount
300,000,000 
 
Effective Rate
1.49% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Warehouse line due October 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
226,577,000 
 
Committed Amount
1,800,000,000 
 
Effective Rate
4.95% 
 
Assets Pledged
311,336,000 
 
Restricted Cash Pledged
6,772,000 
 
Warehouse line, due August 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
534,220,000 
Committed Amount
 
780,000,000 
Effective Rate
 
1.98% 
Assets Pledged
 
608,025,000 
Restricted Cash Pledged
 
24,520,000 
Warehouse line, due August 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
3,119,943,000 
Committed Amount
 
3,120,000,000 
Effective Rate
 
1.91% 
Assets Pledged
 
4,700,774,000 
Restricted Cash Pledged
 
70,991,000 
Warehouse line, due October 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
702,377,000 
Committed Amount
 
1,800,000,000 
Effective Rate
 
2.51% 
Assets Pledged
 
994,684,000 
Restricted Cash Pledged
 
23,378,000 
Repurchase facility, due on Various
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
325,775,000 
 
Committed Amount
325,775,000 
 
Effective Rate
3.24% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
13,842,000 
 
Repurchase facility, due April 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
202,311,000 
 
Committed Amount
202,311,000 
 
Effective Rate
2.67% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Repurchase facility, due March 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
147,500,000 
 
Committed Amount
147,500,000 
 
Effective Rate
3.91% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Repurchase facility, due March 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
68,897,000 
 
Committed Amount
68,897,000 
 
Effective Rate
3.04% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Repurchase facility, due December 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
507,800,000 
Committed Amount
 
507,800,000 
Effective Rate
 
2.83% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
22,613,000 
Repurchase facility, due April 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
235,509,000 
Committed Amount
 
235,509,000 
Effective Rate
 
2.04% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Debt term
1 year 
 
Warehouse line, due November 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
403,999,000 
 
Committed Amount
1,000,000,000 
 
Effective Rate
2.66% 
 
Assets Pledged
546,782,000 
 
Restricted Cash Pledged
14,729,000 
 
Warehouse line, due October 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
81,865,000 
 
Committed Amount
400,000,000 
 
Effective Rate
4.09% 
 
Assets Pledged
114,021,000 
 
Restricted Cash Pledged
3,057,000 
 
Warehouse line, due November 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
435,220,000 
 
Committed Amount
500,000,000 
 
Effective Rate
1.92% 
 
Assets Pledged
521,365,000 
 
Restricted Cash Pledged
16,866,000 
 
Warehouse line, due November 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
578,999,000 
Committed Amount
 
1,000,000,000 
Effective Rate
 
1.56% 
Assets Pledged
 
850,758,000 
Restricted Cash Pledged
 
17,642,000 
Warehouse line, due October 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
235,700,000 
202,000,000 
Committed Amount
300,000,000 
400,000,000 
Effective Rate
2.84% 
2.22% 
Assets Pledged
289,634,000 
290,867,000 
Restricted Cash Pledged
10,474,000 
5,435,000 
Warehouse line, due November 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
0 
Committed Amount
 
500,000,000 
Effective Rate
 
2.07% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Warehouse line, due October 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
243,100,000 
Committed Amount
 
300,000,000 
Effective Rate
 
2.38% 
Assets Pledged
 
295,045,000 
Restricted Cash Pledged
 
9,235,000 
Total facilities with Santander and related subsidiaries
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
3,750,000,000 
2,975,000,000 
Committed Amount
7,750,000,000 
6,300,000,000 
Assets Pledged
0 
0 
Restricted Cash Pledged
0 
0 
Line of credit, due December 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
500,000,000 
Committed Amount
 
500,000,000 
Effective Rate
 
3.04% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Line of credit, due December 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
0 
175,000,000 
Committed Amount
1,000,000,000 
500,000,000 
Effective Rate
3.09% 
3.87% 
Assets Pledged
0 
0 
Restricted Cash Pledged
0 
0 
Promissory Note, due December 2021
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
250,000,000 
 
Committed Amount
250,000,000 
 
Effective Rate
3.70% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Promissory Note, due December 2022
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
250,000,000 
 
Committed Amount
250,000,000 
 
Effective Rate
3.95% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Promissory Note, due March 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
300,000,000 
 
Committed Amount
300,000,000 
 
Effective Rate
2.67% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Promissory Note, due October 2020
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
400,000,000 
 
Committed Amount
400,000,000 
 
Effective Rate
3.10% 
 
Assets Pledged
0 
 
Restricted Cash Pledged
0 
 
Promissory Note, due May 2020
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
500,000,000 
 
Committed Amount
500,000,000 
 
Effective Rate
3.49% 
 
Promissory Note, due March 2022
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
650,000,000 
 
Committed Amount
650,000,000 
 
Effective Rate
4.20% 
 
Fair value hedge adjustment
4,200,000 
 
Promissory Note, due August 2021
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
650,000,000 
 
Committed Amount
650,000,000 
 
Effective Rate
3.44% 
 
Line of credit, due December 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
1,000,000,000 
Committed Amount
 
1,000,000,000 
Effective Rate
 
2.86% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Line of credit, due December 2018
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
750,000,000 
1,000,000,000 
Committed Amount
750,000,000 
1,000,000,000 
Effective Rate
1.33% 
2.88% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Line of credit, due March 2017
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
 
300,000,000 
Committed Amount
 
300,000,000 
Effective Rate
 
2.25% 
Assets Pledged
 
0 
Restricted Cash Pledged
 
0 
Line of credit, due March 2019
 
 
Line of Credit Facility [Line Items]
 
 
Utilized Balance
0 
0 
Committed Amount
3,000,000,000 
3,000,000,000 
Effective Rate
3.94% 
3.74% 
Assets Pledged
0 
0 
Restricted Cash Pledged
$ 0 
$ 0 
Debt - Lines of Credit, Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Mar. 6, 2014
Santander Consumer ABS Funding 2, LLC
Dec. 31, 2017
Revolving credit facilities
Dec. 31, 2016
Revolving credit facilities
Mar. 6, 2017
Promissory Note
Santander Consumer ABS Funding 2, LLC
Dec. 31, 2017
Promissory Note
Santander Consumer ABS Funding 2, LLC
Three-month LIBOR
Dec. 31, 2017
Total facilities with Santander and related subsidiaries
Dec. 31, 2017
Total facilities with Santander and related subsidiaries
Secured Debt
Revolving credit facilities
Dec. 31, 2017
Total facilities with Santander and related subsidiaries
Retained residuals
Dec. 31, 2017
Total facilities with Santander and related subsidiaries
Prime retail installment loans
May 11, 2017
Promissory Note, due May 2020
Promissory Note
SC Illinois
Mar. 31, 2017
Promissory Note, due March 2022
Promissory Note
SC Illinois
Aug. 3, 2017
Promissory Note, due August 2021
Promissory Note
SC Illinois
Dec. 19, 2017
Promissory Note, due December 2022
Promissory Note
SC Illinois
Dec. 19, 2017
Promissory Note, due December 2021
Promissory Note
SC Illinois
Oct. 10, 2017
Promissory Note, due October 2020
Promissory Note
SC Illinois
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Committed amount
$ 3,000,000,000 
$ 300,000,000 
$ 18,444,483,000 
$ 16,693,309,000 
 
 
$ 1,750,000,000 
$ 3,000,000,000 
$ 1,000,000,000 
$ 750,000,000 
 
 
 
 
 
 
Long-term debt, principal
 
 
 
 
$ 300,000,000 
 
 
 
 
 
$ 500,000,000 
$ 650,000,000 
$ 650,000,000 
$ 250,000,000 
$ 250,000,000 
$ 400,000,000 
Basis spread on variable rate (as a percent)
 
 
 
 
 
1.35% 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
3.49% 
4.20% 
3.44% 
3.95% 
3.70% 
3.10% 
Debt - Summary of Secured Structured Financings (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Balance
$ 22,557,895,000 
$ 21,608,889,000 
Secured Structured Financings
 
 
Debt Instrument [Line Items]
 
 
Balance
22,557,895,000 
21,608,889,000 
Initial Note Amounts Issued
49,078,924,000 
46,472,073,000 
Collateral
29,106,279,000 
29,496,411,000 
Restricted Cash
1,847,759,000 
1,924,467,000 
Secured Structured Financings |
Public securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
14,993,258,000 
13,436,482,000 
Initial Note Amounts Issued
36,800,642,000 
32,386,082,000 
Collateral
19,873,621,000 
17,474,524,000 
Restricted Cash
1,470,459,000 
1,423,599,000 
Secured Structured Financings |
2012 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
 
197,470,000 
Initial Note Amounts Issued
 
2,525,540,000 
Collateral
 
312,710,000 
Restricted Cash
 
73,733,000 
Secured Structured Financings |
2012 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
 
0.92% 
Secured Structured Financings |
2012 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
 
1.23% 
Secured Structured Financings |
2013 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
418,806,000 
1,172,904,000 
Initial Note Amounts Issued
4,239,700,000 
6,689,700,000 
Collateral
544,948,000 
1,484,014,000 
Restricted Cash
125,696,000 
222,187,000 
Secured Structured Financings |
2013 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
0.89% 
0.89% 
Secured Structured Financings |
2013 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.59% 
1.59% 
Secured Structured Financings |
2014 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
1,150,422,000 
1,858,600,000 
Initial Note Amounts Issued
6,391,020,000 
6,391,020,000 
Collateral
1,362,814,000 
2,360,939,000 
Restricted Cash
210,937,000 
250,806,000 
Secured Structured Financings |
2014 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.16% 
1.16% 
Secured Structured Financings |
2014 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.72% 
1.72% 
Secured Structured Financings |
2015 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
2,484,051,000 
4,326,292,000 
Initial Note Amounts Issued
9,171,332,000 
9,317,032,000 
Collateral
3,465,671,000 
5,743,884,000 
Restricted Cash
366,062,000 
468,787,000 
Secured Structured Financings |
2015 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.33% 
1.33% 
Secured Structured Financings |
2015 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.29% 
2.29% 
Secured Structured Financings |
2016 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
3,596,822,000 
5,881,216,000 
Initial Note Amounts Issued
7,462,790,000 
7,462,790,000 
Collateral
4,798,807,000 
7,572,977,000 
Restricted Cash
344,899,000 
408,086,000 
Secured Structured Financings |
2016 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.63% 
1.63% 
Secured Structured Financings |
2016 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.80% 
2.46% 
Secured Structured Financings |
2017 Securitizations
 
 
Debt Instrument [Line Items]
 
 
Balance
7,343,157,000 
 
Initial Note Amounts Issued
9,535,800,000 
 
Collateral
9,701,381,000 
 
Restricted Cash
422,865,000 
 
Secured Structured Financings |
2017 Securitizations |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.01% 
 
Secured Structured Financings |
2017 Securitizations |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.52% 
 
Secured Structured Financings |
Privately issued amortizing notes
 
 
Debt Instrument [Line Items]
 
 
Balance
7,564,637,000 
8,172,407,000 
Initial Note Amounts Issued
12,278,282,000 
14,085,991,000 
Collateral
9,232,658,000 
12,021,887,000 
Restricted Cash
377,300,000 
500,868,000 
Secured Structured Financings |
2010 Private issuance
 
 
Debt Instrument [Line Items]
 
 
Balance
 
113,157,000 
Initial Note Amounts Issued
 
516,000,000 
Initial Weighted Average Interest Rate
 
1.29% 
Collateral
 
213,235,000 
Restricted Cash
 
6,270,000 
Secured Structured Financings |
2011 Private issuance
 
 
Debt Instrument [Line Items]
 
 
Balance
281,946,000 
342,369,000 
Initial Note Amounts Issued
1,700,000,000 
1,700,000,000 
Initial Weighted Average Interest Rate
1.46% 
1.46% 
Collateral
398,051,000 
617,945,000 
Restricted Cash
20,356,000 
31,425,000 
Secured Structured Financings |
2013 Private issuances
 
 
Debt Instrument [Line Items]
 
 
Balance
2,292,279,000 
2,375,964,000 
Initial Note Amounts Issued
2,044,054,000 
2,693,754,000 
Collateral
3,719,148,000 
4,122,963,000 
Restricted Cash
155,066,000 
164,740,000 
Secured Structured Financings |
2013 Private issuances |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.28% 
1.13% 
Secured Structured Financings |
2013 Private issuances |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.38% 
1.38% 
Secured Structured Financings |
2014 Private issuances
 
 
Debt Instrument [Line Items]
 
 
Balance
117,730,000 
643,428,000 
Initial Note Amounts Issued
1,538,087,000 
3,271,175,000 
Collateral
231,997,000 
1,129,506,000 
Restricted Cash
9,552,000 
68,072,000 
Secured Structured Financings |
2014 Private issuances |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.05% 
1.05% 
Secured Structured Financings |
2014 Private issuances |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.40% 
1.40% 
Secured Structured Financings |
2015 Private issuances
 
 
Debt Instrument [Line Items]
 
 
Balance
2,009,627,000 
2,185,166,000 
Initial Note Amounts Issued
2,305,062,000 
2,855,062,000 
Collateral
988,247,000 
2,384,661,000 
Restricted Cash
55,451,000 
140,269,000 
Secured Structured Financings |
2015 Private issuances |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
0.88% 
0.88% 
Secured Structured Financings |
2015 Private issuances |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
4.09% 
2.81% 
Secured Structured Financings |
2016 Private issuances
 
 
Debt Instrument [Line Items]
 
 
Balance
1,489,464,000 
2,512,323,000 
Initial Note Amounts Issued
3,050,000,000 
3,050,000,000 
Collateral
2,147,988,000 
3,553,577,000 
Restricted Cash
89,460,000 
90,092,000 
Secured Structured Financings |
2016 Private issuances |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.55% 
1.55% 
Secured Structured Financings |
2016 Private issuances |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.86% 
2.86% 
Secured Structured Financings |
2017 Private issuances
 
 
Debt Instrument [Line Items]
 
 
Balance
1,373,591,000 
 
Initial Note Amounts Issued
1,641,079,000 
 
Collateral
1,747,227,000 
 
Restricted Cash
$ 47,415,000 
 
Secured Structured Financings |
2017 Private issuances |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
1.85% 
 
Secured Structured Financings |
2017 Private issuances |
Maximum
 
 
Debt Instrument [Line Items]
 
 
Initial Weighted Average Interest Rate
2.27% 
 
Debt - Contractual Maturities and Weighted Average Interest Rate (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Notes payable - secured structured financings
$ 22,557,895 
$ 21,608,889 
Notes Payable - Secured Structured Financings
 
 
Debt Instrument [Line Items]
 
 
2018, 0.44%
226,046 
 
2019, 1.74%
2,327,186 
 
2020, 2.15%
4,445,272 
 
2021, 2.70%
8,118,119 
 
2022, 3.21%
3,286,548 
 
Thereafter, 3.19%
4,205,379 
 
Notes payable - secured structured financings, gross
22,608,550 
 
Less: unamortized costs
(50,655)
 
Notes payable - secured structured financings
$ 22,557,895 
 
2018, weighted average interest rate
0.44% 
 
2019, weighted average interest rate
1.74% 
 
2020, weighted average interest rate
2.15% 
 
2021, weighted average interest rate
2.70% 
 
2022, weighted average interest rate
3.21% 
 
Thereafter, weighted average interest rate
3.19% 
 
Debt - Notes Payable - Secured Structured Financings (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]
 
 
 
Private issuance notes secured with vehicle lease
$ 3,710,377 
$ 3,862,274 
 
Amortized debt issuance costs
34,510 
27,111 
23,338 
Interest expense on secured structured financing
$ 554,663 
$ 420,153 
$ 291,247 
Variable Interest Entities - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
 
 
 
Total serviced for others portfolio
$ 26,250,482,000 
$ 27,802,971,000 
 
Cash proceeds from sale of residual interest
 
 
661,675,000 
Derecognized assets
 
 
1,919,171,000 
Derecognized notes payable and other liabilities
 
 
1,183,792,000 
Decrease in provision for credit losses
 
 
112,804,000 
Decrease in provision for credit losses, lower of cost or market adjustment
 
 
73,388,000 
VIE, Not Primary Beneficiary
 
 
 
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
 
 
 
Total serviced for others portfolio
3,428,248,000 
2,741,101,000 
 
Sale of receivables securitized
2,583,341,000 
886,288,000 
1,557,099,000 
Gain on retail installment contracts
(13,026,000)
(10,511,000)
59,983,000 
Maximum exposure to loss, involvement with the VIE
$ 0 
 
 
Variable Interest Entities - Cash Flows Received from Securitization Trusts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
 
 
 
Assets securitized
$ 18,442,793 
$ 15,828,921 
$ 18,516,641 
Net proceeds from new securitizations
14,126,211 
13,319,530 
15,232,692 
Net proceeds from sale of retained bonds
499,354 
436,812 
0 
Cash received for servicing fees
866,210 
787,778 
700,156 
Net distributions from Trusts
2,613,032 
1,748,013 
1,960,418 
Total cash received from Trusts
18,104,807 
16,292,133 
17,893,266 
VIE, Not Primary Beneficiary
 
 
 
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
 
 
 
Assets securitized
2,583,341 
904,108 
1,557,099 
Net proceeds from new securitizations
2,588,227 
876,592 
1,578,320 
Cash received for servicing fees
35,682 
47,804 
23,848 
Total cash received from Trusts
$ 2,623,909 
$ 924,396 
$ 1,602,168 
Variable Interest Entities - Off-balance Sheet Variable Interest Entities Portfolio (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
$ 26,250,482 
$ 27,802,971 
VIE, Not Primary Beneficiary
 
 
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
3,428,248 
2,741,101 
VIE, Not Primary Beneficiary |
Chrysler Capital securitizations
 
 
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
1,404,232 
2,472,756 
VIE, Not Primary Beneficiary |
Other third parties
 
 
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
0 
268,345 
VIE, Not Primary Beneficiary |
Third parties
 
 
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
1,404,232 
2,741,101 
VIE, Not Primary Beneficiary |
Santander
 
 
Variable Interest Entity [Line Items]
 
 
Total serviced for others portfolio
$ 2,024,016 
$ 0 
Derivative Financial Instruments - Underlying Notional Amounts and Aggregate Fair Values (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Derivative [Line Items]
 
 
Asset
$ 223,577,000 
$ 123,895,000 
Liability
(167,933,000)
(107,969,000)
Interest rate swap agreements |
Designated as cash flow hedges |
Cash flow hedging
 
 
Derivative [Line Items]
 
 
Notional
4,926,900,000 
7,854,700,000 
Fair Value
45,986,000 
44,618,000 
Asset
45,986,000 
45,551,000 
Liability
0 
(933,000)
Interest rate swap agreements |
Not designated as hedges
 
 
Derivative [Line Items]
 
 
Notional
1,736,400,000 
1,019,900,000 
Fair Value
9,596,000 
1,939,000 
Asset
9,596,000 
2,076,000 
Liability
0 
(137,000)
Interest rate cap agreements
 
 
Derivative [Line Items]
 
 
Notional
10,906,081,000 
9,463,935,000 
Fair Value
103,721,000 
76,269,000 
Asset
135,830,000 
76,269,000 
Liability
(32,109,000)
0 
Options for interest rate cap agreements
 
 
Derivative [Line Items]
 
 
Notional
10,906,081,000 
9,463,935,000 
Fair Value
(103,659,000)
(76,281,000)
Asset
32,165,000 
0 
Liability
(135,824,000)
(76,281,000)
Total return settlement
 
 
Derivative [Line Items]
 
 
Notional
 
658,471,000 
Fair Value
 
(30,618,000)
Asset
 
0 
Liability
 
$ (30,618,000)
Derivative Financial Instruments - Narrative (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Unrealized losses to be reclassified to interest expense within the next twelve months
$ 16,798,000 
 
Warrant
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Estimated fair value
$ 0 
$ 0 
Derivative Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Assets Presented in the Consolidated Balance Sheet
$ 223,577 
$ 123,895 
Asset
223,577 
123,895 
Assets Presented in the Consolidated Balance Sheet, Total financial assets
223,577 
123,895 
Total derivatives not subject to a master netting arrangement or similar arrangement
0 
0 
Cash Collateral Received
(71,984)
(22,100)
Cash Collateral Received, Total financial assets
(71,984)
(22,100)
Net Amount
151,593 
101,795 
Net Amount, Total financial assets
151,593 
101,795 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet
167,933 
77,351 
Liabilities Presented in the Consolidated Balance Sheet, Total derivatives not subject to a master netting arrangement or similar arrangement
0 
30,618 
Liabilities Presented in the Consolidated Balance Sheet, Total derivative liabilities
167,933 
107,969 
Liabilities Presented in the Consolidated Balance Sheet, Total financial liabilities
167,933 
107,969 
Cash Collateral Pledged
(151,741)
(77,351)
Cash Collateral Pledged, Total derivatives not subject to a master netting arrangement or similar arrangement
0 
0 
Cash Collateral Pledged, Total derivative liabilities
(151,741)
(77,351)
Cash Collateral Pledged, Total financial liabilities
(151,741)
(77,351)
Net Amount
16,192 
0 
Net Amount, Total derivatives not subject to a master netting arrangement or similar arrangement
0 
30,618 
Net Amount, Total derivative liabilities
16,192 
30,618 
Net Amount, Total financial liabilities
16,192 
30,618 
Interest Rate Caps
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Asset
135,830 
76,269 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet, Total derivative liabilities
32,109 
0 
Total return settlement
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Asset
 
0 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet, Total derivatives not subject to a master netting arrangement or similar arrangement
 
30,618 
Liabilities Presented in the Consolidated Balance Sheet, Total derivative liabilities
 
30,618 
Cash Collateral Pledged, Total derivatives not subject to a master netting arrangement or similar arrangement
 
0 
Net Amount, Total derivatives not subject to a master netting arrangement or similar arrangement
 
30,618 
Santander and Affiliates |
Interest Rate Swaps
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Assets Presented in the Consolidated Balance Sheet
8,621 
5,372 
Cash Collateral Received
(3,461)
0 
Net Amount
5,160 
5,372 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet
 
546 
Cash Collateral Pledged
 
(546)
Net Amount
 
0 
Santander and Affiliates |
Interest Rate Caps
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Assets Presented in the Consolidated Balance Sheet
18,201 
7,593 
Cash Collateral Received
(12,240)
0 
Net Amount
5,961 
7,593 
Santander and Affiliates |
Back to Back
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet
18,201 
7,593 
Cash Collateral Pledged
(18,201)
(7,593)
Net Amount
0 
0 
Third Party |
Interest Rate Swaps
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Assets Presented in the Consolidated Balance Sheet
46,961 
42,254 
Cash Collateral Received
(448)
(22,100)
Net Amount
46,513 
20,154 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet
 
524 
Cash Collateral Pledged
 
(524)
Net Amount
 
0 
Third Party |
Interest Rate Caps
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Assets Presented in the Consolidated Balance Sheet
149,794 
68,676 
Cash Collateral Received
(55,835)
0 
Net Amount
93,959 
68,676 
Third Party |
Back to Back
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheet
 
 
Liabilities Presented in the Consolidated Balance Sheet
149,732 
68,688 
Cash Collateral Pledged
(133,540)
(68,688)
Net Amount
$ 16,192 
$ 0 
Derivative Financial Instruments - Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Details) (Interest Rate Swaps, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Designated as Cash Flow Hedges
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Recognized in Earnings
$ 112 
$ 1,131 
$ 223 
Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income
22,333 
(2,118)
(53,160)
Gross amount Reclassified From Accumulated Other Comprehensive Income To Interest Expense
6,060 
(43,898)
(50,860)
Not Designated As Hedges |
Interest Expense
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Recognized in Earnings
 
 
(11,880)
Not Designated As Hedges |
Operating Expense
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Recognized in Earnings
$ (6,835)
$ (1,593)
$ (10,973)
Other Assets (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended
May 31, 2013
Dec. 31, 2017
Dec. 31, 2016
Other Assets [Line Items]
 
 
 
Other assets
 
$ 913,244 
$ 785,410 
Upfront fee
150,000 
 
 
Finance and other interest income amortization period
10 years 
 
 
Upfront fee
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
80,000 
95,000 
Vehicles
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
293,546 
257,382 
Manufacturer subvention payments receivable
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
83,910 
161,447 
Accounts receivable
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
38,583 
22,480 
Prepaids
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
40,830 
46,177 
Derivative assets at fair value
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
196,755 
110,930 
Derivative-third party collateral
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
149,805 
75,089 
Other
 
 
 
Other Assets [Line Items]
 
 
 
Other assets
 
$ 29,815 
$ 16,905 
Income Taxes - Components of the Provision for Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
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 before income taxes:
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
 
 
 
 
 
 
$ 717,496 
$ 942,436 
$ 1,289,612 
Foreign
 
 
 
 
 
 
 
 
106,018 
218,275 
0 
Income before income taxes
(23,795)
277,773 
348,108 
221,428 
90,186 
304,020 
437,563 
328,942 
823,514 
1,160,711 
1,289,612 
Current income tax expense (benefit):
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
(6,140)
2,481 
33,798 
State
 
 
 
 
 
 
 
 
(6,436)
3,273 
4,491 
Foreign
 
 
 
 
 
 
 
 
4,273 
8,738 
0 
Total current income tax expense (benefit)
 
 
 
 
 
 
 
 
(8,303)
14,492 
38,289 
Deferred income tax expense (benefit):
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
(386,703)
343,816 
387,686 
State
 
 
 
 
 
 
 
 
30,953 
35,944 
39,597 
Foreign
 
 
 
 
 
 
 
 
(39)
(7)
0 
Total deferred income tax expense (benefit)
 
 
 
 
 
 
 
 
(355,789)
379,753 
427,283 
Total income tax expense (benefit)
 
 
 
 
 
 
 
 
$ (364,092)
$ 394,245 
$ 465,572 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Earnings indefinitely reinvested outside of the US
$ 0 
$ 0 
$ 0 
 
$ 156,700,000 
Unrecorded deferred tax liability
 
 
 
 
52,800,000 
Additional income tax expense to record applicable U.S. deferred income tax liability
55,700,000 
 
 
 
 
One-time benefit due to revaluation of U.S. deferred liabilities
 
677,509,000 
 
 
 
One-time mandatory tax expense on previously deferred foreign earnings of SCI
 
25,143,000 
 
 
 
Tax sharing with affiliate
 
(1,304,000)
(1,424,000)
(926,000)
 
Related party taxes receivable
467,000 
467,000 
1,087,000 
 
 
Deferred tax liability, leased vehicles
1,942,273,000 
1,942,273,000 
2,421,114,000 
 
 
Cumulative-effect adjustment upon adoption
 
 
26,552,000 
 
 
Excess tax benefits, net of tax
 
796,000 
 
 
 
Unrecognized tax benefits that would impact effective tax rate
14,615,000 
14,615,000 
16,606,000 
95,000 
 
Accrued interest and penalties, tax liability
653,000 
653,000 
1,551,000 
85,000 
 
Gross unrecognized tax benefits
0 
0 
 
 
 
Federal
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Net operating loss carryforwards
1,561,870,000 
1,561,870,000 
 
 
 
State
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Net operating loss carryforwards
432,877,000 
432,877,000 
 
 
 
Additional Paid-In Capital
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Tax sharing with affiliate
 
(1,304,000)
(1,424,000)
(926,000)
 
Cumulative-effect adjustment upon adoption
 
 
1,439,000 
 
 
Retained Earnings
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Cumulative-effect adjustment upon adoption
 
 
25,113,000 
 
 
Retained Earnings |
Accounting Standards Update 2016-09, Excess Tax Benefit Component
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Cumulative-effect adjustment upon adoption
 
 
26,552,000 
 
 
Tax Sharing Agreement
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Related party taxes receivable
$ 467,000 
$ 467,000 
$ 1,087,000 
 
 
Income Taxes - Reconciliation of the Income Tax Rate (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Federal statutory rate
35.00% 
35.00% 
35.00% 
State and local income taxes — net of federal income tax benefit
2.30% 
2.50% 
2.30% 
Valuation allowance
0.00% 
(2.20%)
(0.20%)
Electric vehicle credit
(2.90%)
(2.30%)
(1.80%)
Tax reform - deferred impact
(82.30%)
0.00% 
0.00% 
Tax reform - transition tax
3.10% 
0.00% 
0.00% 
Other
0.60% 
1.00% 
0.80% 
Effective income tax rate
(44.20%)
34.00% 
36.10% 
Income Taxes - Income Tax Basis of Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets:
 
 
 
 
Debt issuance costs
$ 4,181 
$ 5,001 
 
 
Receivables
512,177 
474,366 
 
 
Net operating loss carryforwards
356,030 
603,136 
 
 
Equity-based compensation
14,258 
23,042 
 
 
Credit carryforwards
163,140 
127,933 
 
 
Other
32,264 
34,257 
 
 
Total gross deferred tax assets
1,082,050 
1,267,735 
 
 
Deferred tax liabilities:
 
 
 
 
Capitalized origination costs
(4,229)
(10,804)
 
 
Goodwill
(11,278)
(15,375)
 
 
Leased vehicles
(1,942,273)
(2,421,114)
 
 
Furniture and equipment
(7,201)
(9,638)
 
 
Derivatives
(9,966)
(17,635)
 
 
Unremitted foreign earnings
0 
(67,720)
 
 
Other
(925)
(1,012)
 
 
Total gross deferred tax liabilities
(1,975,872)
(2,543,298)
 
 
Valuation allowance
(3,299)
(2,501)
(30,489)
(32,901)
Net deferred tax liability
$ (897,121)
$ (1,278,064)
 
 
Income Taxes - Valuation Allowance (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Valuation Allowance [Roll Forward]
 
 
 
Valuation allowance, beginning of year
$ 2,501 
$ 30,489 
$ 32,901 
Provision (release)
798 
(27,988)
(2,412)
Valuation allowance, end of year
$ 3,299 
$ 2,501 
$ 30,489 
Income Taxes - Gross Unrecognized Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Gross unrecognized tax benefits balance, beginning of period
$ 16,736 
$ 225 
$ 166 
Additions for tax positions taken in the current year
0 
16,606 
0 
Additions for tax positions of prior years
473 
0 
70 
Reductions for tax positions of prior years
(589)
(34)
(11)
Reductions as a result of a lapse of the applicable statute of limitations
(1,874)
0 
0 
Settlements
0 
(61)
0 
Gross unrecognized tax benefits balance, end of period
$ 14,746 
$ 16,736 
$ 225 
Commitments and Contingencies - Liabilities for Commitments and Contingencies (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Consumer arrangements
 
 
Loss Contingencies [Line Items]
 
 
Contingencies
$ 6,326,000 
$ 0 
Legal and regulatory proceedings
 
 
Loss Contingencies [Line Items]
 
 
Contingencies
108,800,000 
39,200,000 
Revenue-sharing and gain-sharing payments |
Chrysler
 
 
Loss Contingencies [Line Items]
 
 
Commitments
6,580,000 
10,134,000 
Servicer performance fee |
Bank of America
 
 
Loss Contingencies [Line Items]
 
 
Commitments
8,072,000 
9,797,000 
Loss-sharing payments |
CBP
 
 
Loss Contingencies [Line Items]
 
 
Commitments
$ 5,625,000 
$ 4,563,000 
Commitments and Contingencies - Chrysler Agreement (Details) (Chrysler, USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Minimum
Dec. 31, 2017
Revenue-sharing and gain-sharing payments
Dec. 31, 2016
Revenue-sharing and gain-sharing payments
Other Commitments [Line Items]
 
 
 
 
Amount accrued for the payments
 
 
$ 6,580,000 
$ 10,134,000 
Funding available for dealer inventory financing
 
5,000,000,000 
 
 
Funding available for FCA retail financing
$ 4,500,000,000 
 
 
 
Meeting specified escalating penetration rates, period
5 years 
 
 
 
Commitments and Contingencies - Agreement with Bank of America (Details) (Bank of America, USD $)
0 Months Ended
Jan. 31, 2017
Jul. 27, 2016
Dec. 31, 2017
Servicer performance fee
Dec. 31, 2016
Servicer performance fee
Other Commitments [Line Items]
 
 
 
 
Commitment to sell loans
 
$ 300,000,000 
 
 
Servicer performance payments due, period
6 years 
 
 
 
Commitments
 
 
$ 8,072,000 
$ 9,797,000 
Commitments and Contingencies - Agreement with CBP (Details) (CBP, USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Loss-sharing payments
Dec. 31, 2016
Loss-sharing payments
May 1, 2017
Chrysler
Other Commitments [Line Items]
 
 
 
 
Maximum purchase amount committed
 
 
 
$ 200,000,000 
Minimum purchase amount committed
 
 
 
50,000,000 
Loans servicing, loss-sharing payment percentage
0.50% 
 
 
 
Commitments
 
$ 5,625,000 
$ 4,563,000 
 
Commitments and Contingencies - Other Contingencies (Details) (Consumer arrangements, USD $)
Dec. 31, 2017
Dec. 31, 2016
Consumer arrangements
 
 
Loss Contingencies [Line Items]
 
 
Accrual for miscellaneous contingencies
$ 6,326,000 
$ 0 
Commitments and Contingencies - Legal and Regulatory Proceedings (Details) (USD $)
1 Months Ended 1 Months Ended
Feb. 28, 2015
Violation of SCRA
Dec. 31, 2017
Aggregate Legal and Regulatory Liabilities
Dec. 31, 2016
Aggregate Legal and Regulatory Liabilities
Feb. 28, 2015
Civil Fine
Violation of SCRA
Feb. 28, 2015
Civil Fine to Affected Service Members
Violation of SCRA
Minimum
Feb. 28, 2015
Lost Equity for Each Repossession by SCUSA
Violation of SCRA
Feb. 28, 2015
SCUSA Sought to Collect Repossession-related Fees
Violation of SCRA
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
Contingencies
 
$ 108,800,000 
$ 39,200,000 
 
 
 
 
Maximum possible loss
 
207,000,000 
 
 
 
 
 
Civil fine, amount
 
 
 
$ 55,000 
$ 9,360,000 
$ 10,000 
$ 5,000 
SCRA compliance monitoring period
5 years 
 
 
 
 
 
 
Commitments and Contingencies - Agreements (Details) (USD $)
0 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jun. 29, 2015
Dec. 31, 2017
Dec. 31, 2016
Nov. 13, 2015
Jun. 29, 2015
Mar. 31, 2015
Dec. 31, 2017
SBNA
Dec. 31, 2016
SBNA
Jun. 30, 2014
SBNA
Dec. 31, 2017
Bluestem
Purchase New Advances on Personal Revolving Finance Receivable
Dec. 31, 2016
Bluestem
Purchase New Advances on Personal Revolving Finance Receivable
Dec. 31, 2017
Bluestem
Purchase of Receivables Related to New Opened Customer Accounts
Other Commitments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Commitments
 
 
 
 
 
 
 
 
 
$ 3,900,000,000 
$ 4,000,000,000 
 
Purchases of receivables
 
 
 
 
 
 
 
 
 
1,200,000,000 
 
263,831,000 
Purchase obligation
 
11,539,000 
12,634,000 
 
 
 
 
 
 
 
 
 
Purchase commitment, repurchase rate (up to)
 
9.99% 
 
 
 
 
 
 
 
 
 
 
Retainer rate (up to) upon exercise of repurchase right
 
20.00% 
 
 
 
 
 
 
 
 
 
 
Servicing fees adjustment
 
0 
836,000 
 
 
 
 
 
 
 
 
 
Repurchase requests outstanding
 
0 
 
 
 
 
 
 
 
 
 
 
Indemnification of leases
 
 
 
 
 
 
48,226,000 
 
 
 
 
 
Credit loss indemnification of leases
 
 
 
 
 
 
18,000 
11,329,000 
48,226,000 
 
 
 
Indemnification liability
 
 
 
 
 
 
2,206,000 
2,691,000 
 
 
 
 
Commitment to sell charged off loan receivables in bankruptcy sale
 
 
 
350,000,000 
275,000,000 
200,000,000 
 
 
 
 
 
 
Sales subject to market price check (over)
275,000,000 
 
 
 
 
 
 
 
 
 
 
 
Remaining aggregate commitment to sell charged off loan receivables
 
$ 98,858,000 
$ 166,167,000 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies - Leases (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Lease expense
$ 10,901 
$ 11,328 
$ 8,965 
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
2018
12,642 
 
 
2019
12,771 
 
 
2020
13,032 
 
 
2021
12,907 
 
 
2022
12,282 
 
 
Thereafter
44,663 
 
 
Total remaining obligations
$ 108,297 
 
 
Related-Party Transactions - Interest Expense and Accrued Interest (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Santander
 
 
 
Related Party Transaction [Line Items]
 
 
 
Interest expense for affiliate lines/letters of credit
$ 51,735 
$ 69,877 
$ 96,753 
Accrued interest for affiliate lines/letters of credit
1,435 
6,297 
 
SHUSA
 
 
 
Related Party Transaction [Line Items]
 
 
 
Interest expense for affiliate lines/letters of credit
90,988 
24,050 
5,299 
Accrued interest for affiliate lines/letters of credit
$ 18,670 
$ 1,737 
 
Related-Party Transactions - Credit Facilities, Narrative (Details) (Santander, USD $)
In Thousands, unless otherwise specified
1 Months Ended 12 Months Ended
Aug. 31, 2015
Dec. 31, 2017
Dec. 31, 2016
Santander
 
 
 
Related Party Transaction [Line Items]
 
 
 
Guarantee fee, basis spread (as a percent)
0.125% 
 
 
Guarantee fee expense
 
$ 5,979 
$ 6,402 
Guarantee fee payable
 
$ 7,598 
$ 1,620 
Related-Party Transactions - Derivatives, Narrative (Details) (Santander and Affiliates, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Santander and Affiliates
 
 
 
Related Party Transaction [Line Items]
 
 
 
Outstanding notional amount
$ 3,734,400 
$ 7,259,400 
 
Collateral overage on derivative liabilities
1,622 
15,092 
 
Derivative instrument interest expenses
$ 1,333 
$ 16,078 
$ 58,019 
Related-Party Transactions - Originations, Narrative (Details) (SBNA, USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Related Party Transaction [Line Items]
 
 
 
Loans and Leases Receivable, Related Parties
$ 0 
$ 0 
 
Referral fee
9,000,000 
 
 
Referral fee, amortization period
10 years 
 
 
Unamortized fee balance
4,950,000 
5,850,000 
 
Income related to referral fee
900,000 
900,000 
900,000 
Servicing fee income on receivables sold
4,894,000 
7,707,000 
6,977,000 
Receivables Acquired with Deteriorated Credit Quality
 
 
 
Related Party Transaction [Line Items]
 
 
 
Servicing fee expense
548,000 
 
 
Gain from sale of receivables acquired with deteriorated credit quality
35,927,000 
 
 
Dealer Loan Portfolio
 
 
 
Related Party Transaction [Line Items]
 
 
 
Relationship management fees income
0 
419,000 
6,976,000 
Relationship management fees receivable
0 
0 
 
Due from related parties
369,000 
552,000 
 
Servicing fee expense
97,000 
110,000 
253,000 
Servicing fees payable
9,000 
21,000 
 
Origination Fee Income
 
 
 
Related Party Transaction [Line Items]
 
 
 
Revenue from related parties
1,660,000 
3,314,000 
 
Renewal Fee Income
 
 
 
Related Party Transaction [Line Items]
 
 
 
Revenue from related parties
1,476,000 
610,000 
 
Loan Origination on Sales of Floorplan Inventory
 
 
 
Related Party Transaction [Line Items]
 
 
 
Due to related parties
4,481,000 
2,761,000 
 
Serviced Auto Loan and Retail Installment
 
 
 
Related Party Transaction [Line Items]
 
 
 
Servicing fee income on receivables sold
3,381,000 
5,154,000 
2,500,000 
Fee for Payments Made at Retail Branch Locations
 
 
 
Related Party Transaction [Line Items]
 
 
 
Expenses from transaction with related party
$ 225,000 
$ 473,000 
 
Related-Party Transactions - Information on Serviced Auto Loan and Retail Installment Contract Portfolio (Details) (SBNA, Serviced Auto Loan and Retail Installment, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
SBNA |
Serviced Auto Loan and Retail Installment
 
 
Related Party Transaction [Line Items]
 
 
Total serviced portfolio
$ 400,788 
$ 531,117 
Cash collections due to owner
11,870 
21,427 
Servicing fees receivable
$ 839 
$ 1,123 
Related-Party Transactions - Information on Serviced Receivables for SBNA (Details) (SBNA, Serviced Receivables, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
SBNA |
Serviced Receivables
 
Related Party Transaction [Line Items]
 
Total serviced portfolio
$ 121,431 
Cash collections due to owner
436 
Servicing fees receivable
$ 104 
Related-Party Transactions - Flow Agreements, Narrative (Details) (SBNA, USD $)
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Jun. 30, 2014
Sep. 16, 2014
Receivables From Dealers
Sep. 16, 2014
Consumer Portfolio Segment
Unfunded Loan Commitment
Receivables From Dealers
Sale of Receivables
Sep. 16, 2014
Consumer Portfolio Segment
Lease Loans
Receivables From Dealers
Dec. 31, 2016
Consumer Portfolio Segment
Lease Loans
Receivables From Dealers
Dec. 31, 2015
Consumer Portfolio Segment
Lease Loans
Receivables From Dealers
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
Lease origination income
$ 0 
$ 0 
$ 8,431,000 
 
 
 
 
 
 
Servicing fee income on receivables sold
4,894,000 
7,707,000 
6,977,000 
 
 
 
 
 
 
Credit loss indemnification of leases
18,000 
11,329,000 
 
48,226,000 
 
 
 
 
 
Indemnification expense
272,000 
0 
3,142,000 
 
 
 
 
 
 
Balance of collateral on lease origination
2,210,000 
2,706,000 
 
 
 
 
 
 
 
Indemnification liability
2,206,000 
2,691,000 
 
 
 
 
 
 
 
Financing receivable, sales
 
 
 
 
 
18,227,000 
 
 
 
Servicing receivable, net purchase price
 
 
 
 
347,000 
 
 
 
 
Contingent proceeds from sale of finance receivables
 
 
 
 
 
 
$ 694,000 
$ 347,000 
$ 347,000 
Related-Party Transactions - Information on Consumer Vehicle Lease Portfolio (Details) (SBNA, Consumer Vehicle Lease, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
SBNA |
Consumer Vehicle Lease
 
 
Related Party Transaction [Line Items]
 
 
Total serviced portfolio
$ 321,629 
$ 1,297,317 
Cash collections due to owner
0 
78 
Origination and servicing fees receivable
2,067 
926 
Revenue share reimbursement receivable
$ 1,548 
$ 612 
Related-Party Transactions - Securitizations, Narrative (Details) (USD $)
In Thousands, unless otherwise specified
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
Santander
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
Loans at fair value
$ 22,427,769 
$ 22,667,203 
$ 23,634,914 
$ 23,444,625 
$ 23,481,001 
$ 23,686,391 
$ 23,477,426 
$ 23,961,903 
$ 1,236,331 
Sale of loans securitized
 
 
 
 
 
 
 
 
1,347,010 
Loss from sale of securitized loans
 
 
 
 
 
 
 
 
13,026 
Servicing fee income
 
 
 
 
 
 
 
 
12,346 
Due to related parties
 
 
 
 
 
 
 
 
$ 12,961 
Related-Party Transactions - Employment Agreements (Details) (USD $)
0 Months Ended 0 Months Ended
Dec. 31, 2017
Aug. 31, 2016
Shareholders Agreement
Affiliated Entity
DDFS LLC
Jul. 2, 2015
Shareholders Agreement
Affiliated Entity
DDFS LLC
Nov. 15, 2017
Call Transaction
Affiliated Entity
DDFS LLC
Nov. 15, 2017
Call Transaction
Affiliated Entity
DDFS LLC
SHUSA
Jul. 2, 2015
Call Transaction
Affiliated Entity
DDFS LLC
SHUSA
Jul. 16, 2014
Loan Agreement
Affiliated Entity
DDFS LLC
SHUSA
Nov. 15, 2017
Settlement Agreement
Chairman and CEO
Nov. 15, 2017
Separation Agreement
Chairman and CEO
Stock Options
Nov. 15, 2017
Purchase of Common Stock
Affiliated Entity
DDFS LLC
Santander
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
Average stock price (in usd per share)
 
$ 26.17 
$ 26.83 
 
 
 
 
 
 
 
Number of shares exercisable by call option
 
 
 
 
34,598,506 
34,598,506 
 
 
 
 
Loan amount
$ 3,000,000,000 
 
 
 
 
 
$ 300,000,000 
 
 
 
Notes payable
 
 
 
 
 
 
290,000,000 
 
 
 
Payment of equity-based awards
 
 
 
 
 
 
 
66,115,000 
52,799,000 
 
Aggregate price of shares purchased
 
 
 
 
 
 
 
 
 
941,945,000 
Net proceeds from the call transaction
 
 
 
$ 294,501,000 
 
 
 
 
 
 
Related-Party Transactions - CEO Compensation (Details) (President and CEO, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
President and CEO
 
Related Party Transaction [Line Items]
 
Compensation expense paid
$ 795 
Related-Party Transactions - Other Related-Party Transactions (Details) (USD $)
12 Months Ended
Dec. 31, 2017
sqft
Dec. 31, 2016
Dec. 31, 2015
Related Party Transaction [Line Items]
 
 
 
Future minimum payment of lease
$ 108,297,000 
 
 
Restricted cash
2,553,902,000 
2,757,299,000 
 
Gain (Loss) on Investments
 
 
 
Related Party Transaction [Line Items]
 
 
 
Cost-method investments, impairment
 
 
6,000,000 
Chairman and CEO, President and CFO and Board Member
 
 
 
Related Party Transaction [Line Items]
 
 
 
Area of leased property (in square foot)
373,000 
 
 
Payments for rent
4,970,000 
4,945,000 
4,612,000 
Lease term
9 years 
 
 
Future minimum payment of lease
62,381,000 
 
 
SBNA |
Sublease of Corporate Office Space
 
 
 
Related Party Transaction [Line Items]
 
 
 
Corporate office space (in sq ft)
13,000 
 
 
Sublease revenue
163,000 
161,000 
204,000 
SCI |
Banco Santander Puerto Rico |
Demand Deposits
 
 
 
Related Party Transaction [Line Items]
 
 
 
Restricted cash
106,596,000 
98,836,000 
 
Affiliated Entity |
SIS |
Secured Debt |
SDART 2013-3 Trust, Class B Notes
 
 
 
Related Party Transaction [Line Items]
 
 
 
Long-term debt, principal
 
 
725,000 
Notes payable
0 
0 
 
Affiliated Entity |
SIS |
Secured Debt |
CCART 2013-A Trust, Class A3 Notes
 
 
 
Related Party Transaction [Line Items]
 
 
 
Long-term debt, principal
2,000,000 
 
 
Affiliated Entity |
SHUSA
 
 
 
Related Party Transaction [Line Items]
 
 
 
Expenses from transaction with related party
312,000 
294,000 
 
Cyber liability insurance, coverage limit
150,000,000 
 
 
Affiliated Entity |
Fees Paid for Co-Management of Certain Securitizations |
SIS
 
 
 
Related Party Transaction [Line Items]
 
 
 
Expenses from transaction with related party
1,359,000 
1,149,000 
550,000 
Produban Servicios Informaticos Generales S.L
 
 
 
Related Party Transaction [Line Items]
 
 
 
Expenses included as component of other operating costs
0 
93,000 
161,000 
Cost Method Investment
 
 
 
Related Party Transaction [Line Items]
 
 
 
Personal revolving loans
0 
0 
23,504,000 
Santander |
Procurement Services
 
 
 
Related Party Transaction [Line Items]
 
 
 
Expenses from transaction with related party
$ 637,000 
 
 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash paid (received) during the year for:
 
 
 
Interest
$ 942,551 
$ 796,682 
$ 635,558 
Income taxes
1,856 
(180,323)
(190,663)
Noncash investing and financing transactions:
 
 
 
Transfer of revolving credit facilities to secured structured financings
495,991 
146,864 
193,180 
Transfer of personal loans to held for sale
0 
0 
1,883,251 
Derecognized assets
 
 
1,919,171 
Derecognized assets, restricted cash
 
 
170,144 
Derecognized notes payable and other liabilities
 
 
$ 1,183,792 
Computation of Basic and Diluted Earnings per Common Share - Narrative (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Stock Options
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Awards excluded from computation of earnings per share (in shares)
367,880 
1,387,656 
926,242 
RSUs
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Awards excluded from computation of earnings per share (in shares)
626,551 
1,106,187 
0 
Computation of Basic and Diluted Earnings per Common Share - Summary of Computation of Basic and Diluted Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
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
Earnings per common share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$ 580,116 
$ 199,388 
$ 264,675 
$ 143,427 
$ 61,275 
$ 213,547 
$ 283,345 
$ 208,299 
$ 1,187,606 
$ 766,466 
$ 824,040 
Weighted average number of common shares outstanding before restricted participating shares (in shares)
 
 
 
 
 
 
 
 
359,614,000 
358,032,000 
354,636,000 
Weighted average number of participating restricted common shares outstanding (in shares)
 
 
 
 
 
 
 
 
0 
249,000 
467,000 
Weighted average number of common shares outstanding (in shares)
 
 
 
 
 
 
 
 
359,614,000 
358,281,000 
355,103,000 
Earnings per common share (in usd per share)
$ 1.61 
$ 0.55 
$ 0.74 
$ 0.40 
$ 0.17 
$ 0.60 
$ 0.79 
$ 0.58 
$ 3.30 
$ 2.14 
$ 2.32 
Earnings per common share - assuming dilution
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$ 580,116 
$ 199,388 
$ 264,675 
$ 143,427 
$ 61,275 
$ 213,547 
$ 283,345 
$ 208,299 
$ 1,187,606 
$ 766,466 
$ 824,040 
Weighted average number of common shares outstanding (in shares)
 
 
 
 
 
 
 
 
359,614,000 
358,281,000 
355,103,000 
Effect of employee stock-based awards (in shares)
 
 
 
 
 
 
 
 
678,000 
797,000 
1,060,000 
Weighted average number of common shares outstanding - assuming dilution (in shares)
 
 
 
 
 
 
 
 
360,292,330 
359,078,337 
356,163,000 
Earnings per common share - assuming dilution (in usd per share)
$ 1.61 
$ 0.55 
$ 0.74 
$ 0.40 
$ 0.17 
$ 0.59 
$ 0.79 
$ 0.58 
$ 3.30 
$ 2.13 
$ 2.31 
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Level 1
 
 
Assets:
 
 
Cash and cash equivalents
$ 527,805 
$ 160,180 
Finance receivables held for investment, net
0 
   
Restricted cash
2,553,902 
2,757,299 
Total
3,081,707 
2,917,479 
Liabilities:
 
 
Notes payable — credit facilities
0 
0 
Notes payable — secured structured financings
0 
0 
Notes payable — related party
0 
0 
Total
0 
0 
Level 2
 
 
Assets:
 
 
Cash and cash equivalents
0 
0 
Finance receivables held for investment, net
0 
   
Restricted cash
0 
0 
Total
0 
0 
Liabilities:
 
 
Notes payable — credit facilities
0 
0 
Notes payable — secured structured financings
12,275,408 
13,530,045 
Notes payable — related party
0 
0 
Total
12,275,408 
13,530,045 
Level 3
 
 
Assets:
 
 
Cash and cash equivalents
0 
0 
Finance receivables held for investment, net
24,340,739 
24,630,599 
Restricted cash
0 
0 
Total
24,340,739 
24,630,599 
Liabilities:
 
 
Notes payable — credit facilities
4,848,316 
6,739,817 
Notes payable — secured structured financings
10,412,973 
8,182,646 
Notes payable — related party
3,754,223 
2,975,000 
Total
19,015,512 
17,897,463 
Carrying Value
 
 
Assets:
 
 
Cash and cash equivalents
527,805 
160,180 
Finance receivables held for investment, net
22,284,068 
23,456,506 
Restricted cash
2,553,902 
2,757,299 
Total
25,365,775 
26,373,985 
Liabilities:
 
 
Notes payable — credit facilities
4,848,316 
6,739,817 
Notes payable — secured structured financings
22,557,895 
21,608,889 
Notes payable — related party
3,754,223 
2,975,000 
Total
31,160,434 
31,323,706 
Estimated Fair Value
 
 
Assets:
 
 
Cash and cash equivalents
527,805 
160,180 
Finance receivables held for investment, net
24,340,739 
24,630,599 
Restricted cash
2,553,902 
2,757,299 
Total
27,422,446 
27,548,078 
Liabilities:
 
 
Notes payable — credit facilities
4,848,316 
6,739,817 
Notes payable — secured structured financings
22,688,381 
21,712,691 
Notes payable — related party
3,754,223 
2,975,000 
Total
$ 31,290,920 
$ 31,427,508 
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Retail installment contracts acquired individually
$ 22,124 
$ 24,495 
Recurring
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Retail installment contracts acquired individually
22,124 
24,495 
Recurring |
Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
129,718 
68,676 
Due from affiliates
6,112 
7,593 
Other liabilities
20,019 
68,688 
Due to affiliates
12,090 
7,593 
Recurring |
Interest Rate Swaps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
7,925 
783 
Due from affiliates
1,671 
1,292 
Other liabilities
 
42 
Due to affiliates
 
95 
Recurring |
Interest Rate Swaps |
Cash Flow Hedging
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
39,036 
41,471 
Due from affiliates
6,950 
4,080 
Other liabilities
 
482 
Due to affiliates
 
451 
Recurring |
Trading Options for Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
20,075 
 
Due from affiliates
12,090 
 
Other liabilities
129,712 
 
Due to affiliates
6,112 
 
Recurring |
Total return settlement
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other liabilities
 
30,618 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Retail installment contracts acquired individually
0 
0 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
0 
0 
Due to affiliates
0 
0 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Interest Rate Swaps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
 
0 
Due to affiliates
 
0 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Interest Rate Swaps |
Cash Flow Hedging
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
 
0 
Due to affiliates
 
0 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Trading Options for Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
 
Due from affiliates
0 
 
Other liabilities
0 
 
Due to affiliates
0 
 
Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Total return settlement
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other liabilities
 
0 
Recurring |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Retail installment contracts acquired individually
0 
0 
Recurring |
Significant Other Observable Inputs (Level 2) |
Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
129,718 
68,676 
Due from affiliates
6,112 
7,593 
Other liabilities
20,019 
68,688 
Due to affiliates
12,090 
7,593 
Recurring |
Significant Other Observable Inputs (Level 2) |
Interest Rate Swaps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
7,925 
783 
Due from affiliates
1,671 
1,292 
Other liabilities
 
42 
Due to affiliates
 
95 
Recurring |
Significant Other Observable Inputs (Level 2) |
Interest Rate Swaps |
Cash Flow Hedging
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
39,036 
41,471 
Due from affiliates
6,950 
4,080 
Other liabilities
 
482 
Due to affiliates
 
451 
Recurring |
Significant Other Observable Inputs (Level 2) |
Trading Options for Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
20,075 
 
Due from affiliates
12,090 
 
Other liabilities
129,712 
 
Due to affiliates
6,112 
 
Recurring |
Significant Other Observable Inputs (Level 2) |
Total return settlement
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other liabilities
 
0 
Recurring |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Retail installment contracts acquired individually
22,124 
24,495 
Recurring |
Significant Unobservable Inputs (Level 3) |
Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
0 
0 
Due to affiliates
0 
0 
Recurring |
Significant Unobservable Inputs (Level 3) |
Interest Rate Swaps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
 
0 
Due to affiliates
 
0 
Recurring |
Significant Unobservable Inputs (Level 3) |
Interest Rate Swaps |
Cash Flow Hedging
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
0 
Due from affiliates
0 
0 
Other liabilities
 
0 
Due to affiliates
 
0 
Recurring |
Significant Unobservable Inputs (Level 3) |
Trading Options for Interest Rate Caps
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other assets
0 
 
Due from affiliates
0 
 
Other liabilities
0 
 
Due to affiliates
0 
 
Recurring |
Significant Unobservable Inputs (Level 3) |
Total return settlement
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Other liabilities
 
$ 30,618 
Fair Value of Financial Instruments - Change in Level 3 Balances (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Derivative Financial Instruments, Liabilities |
Total Return Settlement
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
Fair value, beginning of year
$ 30,618 
$ 53,432 
$ 48,893 
Losses recognized in earnings
505 
4,365 
10,973 
Settlements
(31,123)
(27,179)
(6,434)
Fair value, end of year
0 
30,618 
53,432 
Retail Installment Contracts
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
Fair value, beginning of year
24,495 
6,770 
0 
Additions / issuances
21,672 
36,623 
6,770 
Net collection activities
(28,598)
(18,850)
0 
Loans sold
0 
(48)
0 
Gains recognized in earnings
4,555 
0 
0 
Fair value, end of year
$ 22,124 
$ 24,495 
$ 6,770 
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Vehicles
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
$ 293,546 
$ 257,382 
Lower of cost or fair value expense
0 
0 
Vehicles |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Vehicles |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
293,546 
257,382 
Vehicles |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Personal loans held for sale
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
1,062,089 
1,077,600 
Lower of cost or fair value expense
374,374 
414,703 
Personal loans held for sale |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Personal loans held for sale |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Personal loans held for sale |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
1,062,089 
1,077,600 
Retail installment contracts held for sale
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
1,148,332 
1,045,815 
Lower of cost or fair value expense
12 
9 
Retail installment contracts held for sale |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Retail installment contracts held for sale |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
0 
Retail installment contracts held for sale |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
1,148,332 
1,046 
Auto loans impaired due to bankruptcy
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
121,578 
 
Lower of cost or fair value expense
75 
 
Auto loans impaired due to bankruptcy |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
0 
 
Auto loans impaired due to bankruptcy |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
121,578 
 
Auto loans impaired due to bankruptcy |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value, nonrecurring
$ 0 
 
Fair Value of Financial Instruments - Quantitative Information for Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Retail installment contracts held for investment |
Discounted Cash Flow
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Fair Value
$ 22,124 
$ 24,495 
Retail installment contracts held for investment |
Discounted Cash Flow |
Minimum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
8.00% 
8.00% 
Default Rate
15.00% 
15.00% 
Prepayment Rate
6.00% 
6.00% 
Loss Severity Rate
50.00% 
50.00% 
Retail installment contracts held for investment |
Discounted Cash Flow |
Maximum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
10.00% 
10.00% 
Default Rate
20.00% 
20.00% 
Prepayment Rate
8.00% 
8.00% 
Loss Severity Rate
60.00% 
60.00% 
Personal loans held for sale |
Lower of Market or Income Approach
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Fair Value
1,062,089 
1,077,600 
Personal loans held for sale |
Market Approach |
Minimum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Market Participant View (as a percent)
70.00% 
70.00% 
Personal loans held for sale |
Market Approach |
Maximum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Market Participant View (as a percent)
80.00% 
80.00% 
Personal loans held for sale |
Income Approach |
Minimum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
15.00% 
15.00% 
Default Rate
30.00% 
30.00% 
Net Principal Payment Rate
50.00% 
50.00% 
Loss Severity Rate
90.00% 
90.00% 
Personal loans held for sale |
Income Approach |
Maximum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
20.00% 
20.00% 
Default Rate
40.00% 
40.00% 
Net Principal Payment Rate
70.00% 
70.00% 
Loss Severity Rate
95.00% 
95.00% 
Retail installment contracts held for sale |
Discounted Cash Flow
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Fair Value
1,148,332 
1,045,815 
Retail installment contracts held for sale |
Discounted Cash Flow |
Minimum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
3.00% 
3.00% 
Default Rate
3.00% 
3.00% 
Prepayment Rate
15.00% 
15.00% 
Loss Severity Rate
50.00% 
50.00% 
Retail installment contracts held for sale |
Discounted Cash Flow |
Maximum
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Discount Rate
6.00% 
6.00% 
Default Rate
4.00% 
4.00% 
Prepayment Rate
20.00% 
20.00% 
Loss Severity Rate
60.00% 
60.00% 
Total return settlement |
Discounted Cash Flow
 
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
Fair Value
 
$ 30,618 
Discount Rate
 
6.40% 
Employee Benefit Plans - Narrative (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 8 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Jan. 23, 2014
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Stock Options
Jan. 23, 2014
Employees
Dec. 31, 2016
Employees
Oct. 31, 2017
Employees
RSUs
Jan. 23, 2014
Director
Mar. 31, 2017
Certain Officers and Employees
RSUs
Mar. 31, 2017
Certain Officers and Employees
RSUs
Vested Immediately
Mar. 31, 2017
Certain Officers and Employees
RSUs
Vest Ratably
Nov. 15, 2017
Chairman and CEO
Settlement Agreement
Mar. 31, 2017
Chairman and CEO
RSUs
Vest Ratably
Nov. 15, 2017
Chairman and CEO
Stock Options
Separation Agreement
Dec. 31, 2014
Management Equity Plan
Dec. 31, 2017
Omnibus Incentive Plan
Dec. 31, 2016
Omnibus Incentive Plan
Dec. 31, 2015
Omnibus Incentive Plan
Dec. 31, 2013
Omnibus Incentive Plan
Dec. 28, 2013
Omnibus Incentive Plan
Jun. 30, 2015
Omnibus Incentive Plan
RSUs
Dec. 31, 2017
Omnibus Incentive Plan
RSUs
Dec. 31, 2017
Omnibus Incentive Plan
Employees
RSUs
Nov. 30, 2016
Omnibus Incentive Plan
Certain Officers
RSUs
Apr. 30, 2016
Omnibus Incentive Plan
Certain Officers
RSUs
Dec. 31, 2015
Omnibus Incentive Plan
Certain Officers
RSUs
Jun. 30, 2015
Omnibus Incentive Plan
Certain Officers
RSUs
Dec. 31, 2017
Omnibus Incentive Plan
Certain Officers and Employees
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock awards available for grant (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29,000,000 
 
 
 
 
583,890 
 
 
 
 
 
 
 
 
Common stock issued (in shares)
 
360,779,465 
359,002,145 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,192,641 
 
 
 
 
 
 
 
 
 
Expiration period
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock vesting period
 
 
 
 
5 years 
 
3 years 
3 years 
 
 
3 years 
 
5 years 
 
 
5 years 
 
 
 
 
 
3 years 
3 years 
3 years 
3 years 
3 years 
3 years 
3 years 
Employee benefits and share-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5,457 
$ 725 
$ 8,851 
 
 
 
 
 
 
 
 
 
 
Fair value of options granted in period
10,216 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized, stock options
 
1,198 
 
 
 
727 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award holding period
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
1 year 
1 year 
 
 
1 year 
Award vesting percentage
 
 
 
 
 
 
 
 
 
60.00% 
40.00% 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment of equity-based awards
 
 
 
 
 
 
 
 
 
 
 
$ 66,115 
 
$ 52,799 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized, period for recognition
 
 
 
2 years 2 months 12 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of options granted (in shares)
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans - Summary of Stock Options and Related Activity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Shares
 
 
Options outstanding, Beginning balance (in shares)
4,295,830 
 
Exercised (in shares)
(1,435,606)
 
Expired (in shares)
(470,276)
 
Forfeited (in shares)
(694,940)
 
Options outstanding, Ending balance (in shares)
1,695,008 
4,295,830 
Options exercisable (in shares)
1,455,170 
 
Options expected to vest (in shares)
239,838 
 
Weighted Average Exercise Price
 
 
Options outstanding, Weighted average exercise price, Beginning balance (in usd per share)
$ 12.70 
 
Exercised (in usd per share)
$ 9.51 
 
Expired (in usd per share)
$ 20.28 
 
Forfeited (in usd per share)
$ 14.94 
 
Options outstanding, Weighted average exercise price, Ending balance (in usd per share)
$ 12.39 
$ 12.70 
Options exercisable, Weighted average exercise price (in usd per share)
$ 10.91 
 
Options expected to vest, Weighted average exercise price (in usd per share)
$ 21.35 
 
Weighted Average Remaining Contractual Term (Years)
 
 
Options outstanding, Weighted average remaining contractual term
4 years 8 months 12 days 
5 years 7 months 6 days 
Options exercisable, Weighted average remaining contractual term
4 years 3 months 18 days 
 
Options expected to vest, Weighted average remaining contractual term
6 years 8 months 12 days 
 
Aggregate Intrinsic Value
 
 
Options outstanding, Aggregate intrinsic value, Beginning balance
$ 12,982 
 
Options exercised, Aggregate intrinsic value
8,047 
 
Options outstanding, Aggregate intrinsic value, Ending balance
12,058 
12,982 
Options exercisable, Aggregate intrinsic value
$ 11,851 
 
Employee Benefit Plans - Changes in Nonvested Shares (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Shares
 
 
Non-vested at beginning of period (in shares)
1,151,067 
 
Granted (in shares)
0 
 
Vested (in shares)
(216,289)
 
Forfeited (in shares)
(694,940)
 
Non-vested at end of period (in shares)
239,838 
1,151,067 
Weighted Average Grant Date Fair Value
 
 
Non-vested at beginning of period (in usd per share)
$ 7.02 
 
Granted (in usd per share)
$ 0.00 
$ 3.14 
Vested (in usd per share)
$ 7.66 
 
Forfeited (in usd per share)
$ 6.73 
 
Non-vested at end of period (in usd per share)
$ 7.29 
$ 7.02 
Employee Benefit Plans - Fair Value Assumptions (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk-free interest rate
 
1.79% 
 
Risk-free interest rate, minimum
 
 
1.64% 
Risk-free interest rate, maximum
 
 
1.97% 
Expected life (in years)
 
6 years 6 months 
 
Expected volatility (as a percent)
 
33.00% 
 
Expected volatility, minimum (as a percent)
 
 
32.00% 
Expected volatility, maximum (as a percent)
 
 
48.00% 
Dividend yield (as a percent)
 
3.69% 
 
Weighted average grant date fair value (in usd per share)
$ 0.00 
$ 3.14 
 
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected life (in years)
 
 
6 years 
Dividend yield (as a percent)
 
 
1.60% 
Weighted average grant date fair value (in usd per share)
 
 
$ 6.92 
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected life (in years)
 
 
6 years 6 months 
Dividend yield (as a percent)
 
 
2.70% 
Weighted average grant date fair value (in usd per share)
 
 
$ 9.67 
Employee Benefit Plans - Defined Contribution Plan (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Maximum annual contributions per employee, percent (up to)
75.00% 
 
 
Employer matching contribution, percent of employees' gross pay (up to)
6.00% 
 
 
Employer matching contribution, percent of match
100.00% 
 
 
Total amount contributed
$ 12,370 
$ 11,805 
$ 9,498 
Shareholders' Equity - Treasury Stock (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended 35 Months Ended 47 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2013
Dec. 31, 2016
Dec. 31, 2017
Equity [Abstract]
 
 
 
 
 
Stock withheld (in shares)
252,002 
94,595 
 
94,595 
252,002 
Treasury stock cost
$ 5,370 
$ 1,600 
 
$ 1,600 
$ 5,370 
Number of shares repurchased
 
 
3,154 
 
 
Shares withheld to cover income taxes related to stock issued
157,407 
25,590 
 
91,441 
248,848 
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
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, 2015
Dec. 31, 2014
Dec. 31, 2017
Unrealized gains (losses) on cash flow hedges
Dec. 31, 2016
Unrealized gains (losses) on cash flow hedges
Dec. 31, 2015
Unrealized gains (losses) on cash flow hedges
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 6,480,501 
$ 5,885,234 
$ 5,678,733 
$ 5,418,998 
$ 5,238,619 
$ 5,117,657 
$ 4,876,712 
$ 4,604,739 
$ 4,432,549 
$ 3,526,216 
$ 28,259 
$ 2,125 
$ 3,553 
Other comprehensive income (loss) before reclassifications (gross)
 
 
 
 
 
 
 
 
 
 
21,962 
(1,324)
(34,182)
Amounts (gross) reclassified out of accumulated other comprehensive income
 
 
 
 
 
 
 
 
 
 
(5,959)
27,458 
32,754 
Ending balance
$ 6,480,501 
$ 5,885,234 
$ 5,678,733 
$ 5,418,998 
$ 5,238,619 
$ 5,117,657 
$ 4,876,712 
$ 4,604,739 
$ 4,432,549 
$ 3,526,216 
$ 44,262 
$ 28,259 
$ 2,125 
Shareholders' Equity - Reclassification of Amounts out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
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
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
 
$ 947,734 
$ 807,484 
$ 628,791 
Tax expense (benefit)
 
 
 
 
 
 
 
 
(364,092)
394,245 
465,572 
Net income
(580,116)
(199,388)
(264,675)
(143,427)
(61,275)
(213,547)
(283,345)
(208,299)
(1,187,606)
(766,466)
(824,040)
Reclassification out of Accumulated Other Comprehensive Income |
Unrealized Gains (Losses) on Cash Flow Hedges
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
 
(6,060)
43,898 
50,860 
Tax expense (benefit)
 
 
 
 
 
 
 
 
101 
(16,440)
(18,106)
Net income
 
 
 
 
 
 
 
 
$ (5,959)
$ 27,458 
$ 32,754 
Investment Gains (Losses), Net - Components of Investment Gains (Losses), Net (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
 
Gain (loss) on sale of loans and leases
$ 17,554 
$ (11,549)
$ 155,408 
Lower of cost or market adjustments
(386,060)
(423,616)
(236,396)
Other gains / (losses and impairments)
2,067 
(9,594)
(14,226)
Investment gains (losses), net
$ (366,439)
$ (444,759)
$ (95,214)
Investment Gains (Losses), Net - Narrative (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Lower of cost or market adjustment, customer default activity
$ 452 
$ 429,106 
Lower of cost or market, net favorable adjustments
$ 66 
$ 14,403 
Quarterly Financial Data (unaudited) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
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, 2014
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Total finance and other interest income
$ 1,616,679 
$ 1,649,376 
$ 1,666,721 
$ 1,631,244 
$ 1,627,183 
$ 1,638,525 
$ 1,643,989 
$ 1,619,899 
$ 6,564,020 
$ 6,529,596 
$ 6,087,784 
 
Net finance and other interest income
1,009,542 
1,059,121 
1,135,126 
1,113,984 
1,131,974 
1,178,620 
1,202,255 
1,213,804 
4,317,773 
4,726,653 
4,732,573 
 
Provision for credit losses
562,346 
536,447 
520,555 
635,013 
685,711 
610,398 
511,921 
660,170 
2,254,361 
2,468,200 
2,785,871 
 
Income (loss) before income taxes
(23,795)
277,773 
348,108 
221,428 
90,186 
304,020 
437,563 
328,942 
823,514 
1,160,711 
1,289,612 
 
Net income
580,116 
199,388 
264,675 
143,427 
61,275 
213,547 
283,345 
208,299 
1,187,606 
766,466 
824,040 
 
Net income (loss) per common share (basic) (in usd per share)
$ 1.61 
$ 0.55 
$ 0.74 
$ 0.40 
$ 0.17 
$ 0.60 
$ 0.79 
$ 0.58 
$ 3.30 
$ 2.14 
$ 2.32 
 
Net income (loss) per common share (diluted) (in usd per share)
$ 1.61 
$ 0.55 
$ 0.74 
$ 0.40 
$ 0.17 
$ 0.59 
$ 0.79 
$ 0.58 
$ 3.30 
$ 2.13 
$ 2.31 
 
Allowance for credit losses
3,269,506 
3,380,763 
3,458,410 
3,453,075 
3,421,767 
3,412,977 
3,436,325 
3,337,490 
3,269,506 
3,421,767 
 
 
Finance receivables held for investment, net
22,427,769 
22,667,203 
23,634,914 
23,444,625 
23,481,001 
23,686,391 
23,477,426 
23,961,903 
22,427,769 
23,481,001 
 
 
Total assets
39,422,304 
38,765,557 
39,507,482 
39,061,940 
38,539,104 
38,771,636 
38,490,611 
37,768,959 
39,422,304 
38,539,104 
 
 
Total equity
$ 6,480,501 
$ 5,885,234 
$ 5,678,733 
$ 5,418,998 
$ 5,238,619 
$ 5,117,657 
$ 4,876,712 
$ 4,604,739 
$ 6,480,501 
$ 5,238,619 
$ 4,432,549 
$ 3,526,216