Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.7.0.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities
     As of March 31, 2017  
     Fair
Value
     Carrying
Value
     Level  
     (dollars in millions)  

Assets

        

Financing receivables

   $ 994      $ 1,013        Level 3  

Investments(1)

     125        125        Level 3  

Securitization residual assets

     22        22        Level 3  

Derivative assets

     1        1        Level 2  

Liabilities

        

Credit facilities

   $ 406      $ 406        Level 3  

Nonrecourse notes(2)

     816        808        Level 3  

 

(1) The amortized cost of our investments as of March 31, 2017, was $128 million.
(2) Fair value and carrying value of nonrecourse notes excludes unamortized debt issuance costs.

 

     As of December 31, 2016  
     Fair
Value
     Carrying
Value
     Level  
     (dollars in millions)  

Assets

     

Financing receivables

   $ 1,017      $ 1,042        Level 3  

Investments(1)

     58        58        Level 3  

Securitization residual assets

     19        19        Level 3  

Derivative assets

     1        1        Level 2  

Liabilities

        

Credit facility

   $ 283      $ 283        Level 3  

Nonrecourse notes(2)

     718        709        Level 3  

 

(1) The amortized cost of our investments as of December 31, 2016, was $61 million.
(2) Fair value and carrying value of nonrecourse notes excludes unamortized debt issuance costs.
Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities

The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis:

 

     For the three months
ended March 31,
 
     2017      2016  
     (dollars in millions)  

Balance, beginning of period

   $ 58      $ 29  

Purchases of investments

     66        21  

Sale of investments

     —          (14

Gains on investments recorded in earnings

     —          1  

Gains (losses) on investments recorded in OCI(1)

     1        —    
  

 

 

    

 

 

 

Balance, end of period

   $ 125      $ 37  
  

 

 

    

 

 

 

 

(1) As of March 31, 2017, approximately $11 million of investment grade rated debt that we held for more than 12 months was in an unrealized loss position of approximately $1 million due to interest rate movements. We have the intent and ability to hold this investment until a recovery of fair value. As of March 31, 2017, we held no other securities in an unrealized loss position for over 12 months
Schedule of Cash Deposits Subject to Credit Risk

We had cash deposits that are subject to credit risk as shown below:

 

     March 31,
2017
     December 31,
2016
 
     (dollars in millions)  

Cash deposits

   $ 16      $ 29  

Restricted cash deposits (included in Other assets)

     67        30  
  

 

 

    

 

 

 

Total cash deposits

   $ 83      $ 59  
  

 

 

    

 

 

 

Amount of cash deposits in excess of amounts federally insured

   $ 80      $ 57