OneMain Holdings, Inc.OMF
OneMain Holdings, Inc. Fair Value Disclosure
19. Fair Value Measurements | ||
The fair value of a financial instrument is the expected amount that would be received if an asset were to be sold or the expected amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange, traded over-the-counter, or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 2 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements.
The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
| Fair Value Measurements Using | Total Fair Value | Total Carrying Value | ||||||||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 860 | $ | 54 | $ | — | $ | 914 | $ | 914 | ||||||||||||||||||||||
| Investment securities | 57 | 1,530 | 3 | 1,590 | 1,590 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 24,440 | 24,440 | 21,968 | |||||||||||||||||||||||||||
| Restricted cash and restricted cash equivalents | 699 | — | — | 699 | 699 | |||||||||||||||||||||||||||
Other assets * | — | — | 31 | 31 | 18 | |||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Long-term debt | $ | — | $ | 23,204 | $ | — | $ | 23,204 | $ | 22,694 | ||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 453 | $ | 5 | $ | — | $ | 458 | $ | 458 | ||||||||||||||||||||||
| Investment securities | 54 | 1,550 | 3 | 1,607 | 1,607 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 22,904 | 22,904 | 20,849 | |||||||||||||||||||||||||||
| Restricted cash and restricted cash equivalents | 677 | 7 | — | 684 | 684 | |||||||||||||||||||||||||||
Other assets * | — | — | 36 | 36 | 23 | |||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Long-term debt | $ | — | $ | 21,531 | $ | — | $ | 21,531 | $ | 21,438 | ||||||||||||||||||||||
*Other assets at December 31, 2025 and December 31, 2024 primarily consists of finance receivables held for sale.
FAIR VALUE MEASUREMENTS — RECURRING BASIS
The following tables present information about our assets measured at fair value on a recurring basis and indicate the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:
| Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash equivalents in mutual funds | $ | 48 | $ | — | $ | — | $ | 48 | ||||||||||||||||||
| Cash equivalents in securities | — | 53 | — | 53 | ||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Available-for-sale securities | ||||||||||||||||||||||||||
| U.S. government and government sponsored entities | — | 13 | — | 13 | ||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 56 | — | 56 | ||||||||||||||||||||||
| Non-U.S. government and government sponsored entities | — | 157 | — | 157 | ||||||||||||||||||||||
| Corporate debt | 6 | 1,022 | 2 | 1,030 | ||||||||||||||||||||||
| RMBS | — | 190 | — | 190 | ||||||||||||||||||||||
| CMBS | — | 22 | — | 22 | ||||||||||||||||||||||
| CDO/ABS | — | 64 | — | 64 | ||||||||||||||||||||||
| Total available-for-sale securities | 6 | 1,524 | 2 | 1,532 | ||||||||||||||||||||||
| Other securities | ||||||||||||||||||||||||||
| Bonds: | ||||||||||||||||||||||||||
| Corporate debt | — | 3 | — | 3 | ||||||||||||||||||||||
| CDO/ABS | — | 3 | — | 3 | ||||||||||||||||||||||
| Total bonds | — | 6 | — | 6 | ||||||||||||||||||||||
| Preferred stock | 12 | — | — | 12 | ||||||||||||||||||||||
| Common stock | 39 | — | 1 | 40 | ||||||||||||||||||||||
| Total other securities | 51 | 6 | 1 | 58 | ||||||||||||||||||||||
| Total investment securities | 57 | 1,530 | 3 | 1,590 | ||||||||||||||||||||||
| Restricted cash equivalents in mutual funds | 620 | — | — | 620 | ||||||||||||||||||||||
| Total | $ | 725 | $ | 1,583 | $ | 3 | $ | 2,311 | ||||||||||||||||||
| Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash equivalents in mutual funds | $ | 55 | $ | — | $ | — | $ | 55 | ||||||||||||||||||
| Cash equivalents in securities | — | 5 | — | 5 | ||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Available-for-sale securities | ||||||||||||||||||||||||||
| U.S. government and government sponsored entities | — | 12 | — | 12 | ||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 61 | — | 61 | ||||||||||||||||||||||
Commercial paper | — | 9 | — | 9 | ||||||||||||||||||||||
| Non-U.S. government and government sponsored entities | — | 155 | — | 155 | ||||||||||||||||||||||
| Corporate debt | 6 | 1,014 | 1 | 1,021 | ||||||||||||||||||||||
| RMBS | — | 184 | — | 184 | ||||||||||||||||||||||
| CMBS | — | 27 | — | 27 | ||||||||||||||||||||||
| CDO/ABS | — | 70 | — | 70 | ||||||||||||||||||||||
| Total available-for-sale securities | 6 | 1,532 | 1 | 1,539 | ||||||||||||||||||||||
| Other securities | ||||||||||||||||||||||||||
| Bonds: | ||||||||||||||||||||||||||
| Corporate debt | — | 4 | — | 4 | ||||||||||||||||||||||
| CDO/ABS | — | 14 | — | 14 | ||||||||||||||||||||||
| Total bonds | — | 18 | — | 18 | ||||||||||||||||||||||
| Preferred stock | 13 | — | — | 13 | ||||||||||||||||||||||
| Common stock | 35 | — | 2 | 37 | ||||||||||||||||||||||
| Total other securities | 48 | 18 | 2 | 68 | ||||||||||||||||||||||
| Total investment securities | 54 | 1,550 | 3 | 1,607 | ||||||||||||||||||||||
| Restricted cash equivalents in mutual funds | 672 | — | — | 672 | ||||||||||||||||||||||
| Restricted cash equivalents in securities | — | 7 | — | 7 | ||||||||||||||||||||||
| Total | $ | 781 | $ | 1,562 | $ | 3 | $ | 2,346 | ||||||||||||||||||
Due to the insignificant activity within the Level 3 assets during the years ended December 31, 2025 and 2024, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.
FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS
We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the years ended December 31, 2025 and 2024.
FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS
We use the following methods and assumptions to estimate fair value.
Cash and Cash Equivalents
Cash equivalents in mutual funds include positions in money market funds with weighted average maturity within three months. Money market funds are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are categorized as Level 1 within the fair value table.
Cash equivalents in securities includes highly liquid investments with a maturity within three months of purchase. The carrying amount of these cash equivalents approximates fair value due to the short time between the purchase and expected maturity of these securities. Cash equivalents in securities are categorized as Level 2 within the fair value table.
Restricted Cash and Restricted Cash Equivalents
The carrying amount of restricted cash and restricted cash equivalents approximates fair value.
Investment Securities
We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or other securities and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets.
We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.
The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value.
Finance Receivables
The fair value of net finance receivables, less allowance for finance receivable losses, is primarily determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values.
Long-term Debt
We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at the market-observable implicit-credit spread rates at each balance sheet date.
We estimate the fair values associated with the variable rate private secured term funding facility, revolving conduit facilities, and credit card revolving VFN facilities to be equal to par.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.