Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.5.0.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities
As of June 30, 2016  
     Fair Value      Carrying
Value
     Level  
     (dollars in millions)         

Assets

        

Financing receivables

   $ 875       $ 804         Level 3   

Financing receivables held-for-sale

     42         42         Level 3   

Investments available-for-sale(1)

     48         48         Level 3   

Liabilities

        

Credit facility

   $ 246       $ 246         Level 3   

Nonrecourse debt(2)

     668         638         Level 3   

Derivative liabilities

     7         7         Level 2   

 

(1) The amortized cost of our investments available-for-sale as of June 30, 2016, was $48 million.
(2) Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs.

 

     As of December 31, 2015  
     Fair Value      Carrying
Value
     Level  
     (dollars in millions)         

Assets

        

Financing receivables

   $ 806       $ 784         Level 3   

Financing receivables held-for-sale

     61         60         Level 3   

Investments available-for-sale(1)

     29         29         Level 3   

Liabilities

        

Credit facility

   $ 247       $ 247         Level 3   

Nonrecourse debt(2)

     690         680         Level 3   

Derivative liabilities

     1         1         Level 2   

 

(1) The amortized cost of our investments available-for-sale as of December 31, 2015, was $31 million.
(2) Fair value and carrying value of nonrecourse debt 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 June 30,
     For the six months
ended June 30,
 
     2016      2015      2016      2015  
     (dollars in millions)  

Balance, beginning of period

   $ 37       $ 23       $ 29       $ 27   

Purchases of investments available-for-sale

     10         15         32         20   

Payments on investments available-for-sale

     —           (1      (1      (8

Sale of investments available-for-sale

     —           (9      (14      (11

Gains on investments available-for-sale recorded in earnings

     —           1         1         1   

Gains (losses) on investments available-for-sale recorded in OCI(1)

     1         (1      1         (1
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, end of period

   $ 48       $ 28       $ 48       $ 28   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) As of June 30, 2016, approximately $10 million of investment grade rated debt that we held for more than 12 months was in an unrealized loss position due to interest rate movements. As of June 30, 2016, we held no other securities in an unrealized loss position.
Schedule of Cash Deposits Subject to Credit Risk

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

 

     June 30, 2016      December 31,
2015
 
     (dollars in millions)  

Cash deposits

   $ 19       $ 43   

Restricted cash deposits (included in Other assets)

     25         36   
  

 

 

    

 

 

 

Total cash deposits

   $ 44       $ 79   
  

 

 

    

 

 

 

Amount of cash deposits in excess of amounts federally insured

   $ 40       $ 75