Synchrony FinancialSYF
Synchrony Financial Fair Value Disclosure
FAIR VALUE MEASUREMENTS
_______________________(a) Between January 1, 2018 and December 31, 2025, cumulative upward and downward carrying value adjustments were $201 million and $(17) million, respectively.
For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies.
The following tables present our assets measured at fair value on a recurring basis. Liabilities measured at fair value on a recurring basis were not material for the periods presented.
Recurring Fair Value Measurements
At December 31, 2025 ($ in millions) | Level 1 | Level 2 | Level 3 | Total(a) | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| U.S. government and federal agency | $ | — | $ | 1,492 | $ | — | $ | 1,492 | |||||||||||||||
| State and municipal | — | — | 35 | 35 | |||||||||||||||||||
| Residential mortgage-backed | — | 297 | — | 297 | |||||||||||||||||||
| Asset-backed | — | 515 | — | 515 | |||||||||||||||||||
| Other | — | — | 9 | 9 | |||||||||||||||||||
Other(b) | 15 | — | 7 | 22 | |||||||||||||||||||
| Total | $ | 15 | $ | 2,304 | $ | 51 | $ | 2,370 | |||||||||||||||
At December 31, 2024 ($ in millions) | Level 1 | Level 2 | Level 3 | Total(a) | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| U.S. government and federal agency | $ | — | $ | 1,844 | $ | — | $ | 1,844 | |||||||||||||||
| State and municipal | — | — | 16 | 16 | |||||||||||||||||||
| Residential mortgage-backed | — | 289 | — | 289 | |||||||||||||||||||
| Asset-backed | — | 922 | — | 922 | |||||||||||||||||||
| Other | — | — | 8 | 8 | |||||||||||||||||||
Other(b) | 14 | — | 6 | 20 | |||||||||||||||||||
| Total | $ | 14 | $ | 3,055 | $ | 30 | $ | 3,099 | |||||||||||||||
_______________________
(a) For the years ended December 31, 2025 and 2024, there were no fair value measurements transferred between levels.
(b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Consolidated Statements of Financial Position.
Level 3 Fair Value Measurements
Our Level 3 recurring fair value measurements primarily relate to state and municipal and corporate debt instruments, which are valued using non-binding broker quotes or other third-party sources, and financial assets and liabilities for which we have elected the fair value option. For a description of our process to evaluate third-party pricing servicers, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies. Our state and municipal debt securities are classified as available-for-sale with changes in fair value included in Accumulated other comprehensive income in our Consolidated Statements of Financial Position.
The changes in our Level 3 assets and liabilities that are measured on a recurring basis for the years ended December 31, 2025 and 2024 were not material.
Financial Assets and Financial Liabilities Carried at Other Than Fair Value
| Carrying | Corresponding fair value amount | ||||||||||||||||||||||||||||
At December 31, 2025 ($ in millions) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Financial assets for which carrying values equal or approximate fair value(a): | |||||||||||||||||||||||||||||
Cash and equivalents | $ | 14,973 | $ | 14,973 | $ | 14,973 | $ | — | $ | — | |||||||||||||||||||
| Accrued interest receivable | $ | 27 | $ | 27 | $ | 27 | $ | — | $ | — | |||||||||||||||||||
Other assets(b) | $ | 44 | $ | 44 | $ | 44 | $ | — | $ | — | |||||||||||||||||||
| Financial assets carried at other than fair value: | |||||||||||||||||||||||||||||
Loan receivables, net(c) | $ | 93,364 | $ | 106,591 | $ | — | $ | — | $ | 106,591 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value(a): | |||||||||||||||||||||||||||||
Accrued interest payable | $ | 287 | $ | 287 | $ | 287 | $ | — | $ | — | |||||||||||||||||||
| Financial liabilities carried at other than fair value: | |||||||||||||||||||||||||||||
Deposits(d) | $ | 81,144 | $ | 81,374 | $ | — | $ | 81,374 | $ | — | |||||||||||||||||||
| Borrowings of consolidated securitization entities | $ | 8,415 | $ | 8,477 | $ | — | $ | 5,559 | $ | 2,918 | |||||||||||||||||||
Senior and subordinated unsecured notes | $ | 6,767 | $ | 6,870 | $ | — | $ | 6,870 | $ | — | |||||||||||||||||||
| Carrying | Corresponding fair value amount | ||||||||||||||||||||||||||||
At December 31, 2024 ($ in millions) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||||||||
Financial assets for which carrying values equal or approximate fair value(a): | |||||||||||||||||||||||||||||
Cash and equivalents | $ | 14,711 | $ | 14,711 | $ | 14,711 | $ | — | $ | — | |||||||||||||||||||
Accrued interest receivable | $ | 25 | $ | 25 | $ | 25 | $ | — | $ | — | |||||||||||||||||||
Other assets(b) | $ | 44 | $ | 44 | $ | 44 | $ | — | $ | — | |||||||||||||||||||
| Financial assets carried at other than fair value: | |||||||||||||||||||||||||||||
Loan receivables, net(c) | $ | 93,785 | $ | 106,632 | $ | — | $ | — | $ | 106,632 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value(a): | |||||||||||||||||||||||||||||
Accrued interest payable | $ | 339 | $ | 339 | $ | 339 | $ | — | $ | — | |||||||||||||||||||
| Financial liabilities carried at other than fair value: | |||||||||||||||||||||||||||||
Deposits(d) | $ | 82,062 | $ | 82,256 | $ | — | $ | 82,256 | $ | — | |||||||||||||||||||
| Borrowings of consolidated securitization entities | $ | 7,842 | $ | 7,871 | $ | — | $ | 4,950 | $ | 2,921 | |||||||||||||||||||
Senior and subordinated unsecured notes | $ | 7,620 | $ | 7,502 | $ | — | $ | 7,502 | $ | — | |||||||||||||||||||
_______________________
(a)Carrying value approximates fair value as the financial assets and liabilities are liquid in nature or have a short-term maturity.
(b)This balance relates to restricted cash and equivalents, which is included in Other assets in our Consolidated Statements of Financial Position.
(c)Excludes financial assets for which we have elected the fair value option. Under certain retail partner program agreements, the expected sales proceeds in the event of a sale of their credit card portfolio may be limited to the amounts owed by our customers, which may be less than the fair value indicated above.
(d)Includes demand deposits with no defined maturity.
Equity Securities Without Readily Determinable Fair Values
| At or for the year ended December 31 ($ in millions) | 2025 | 2024 | |||||||||
| Carrying Value | $ | 269 | $ | 270 | |||||||
Upward adjustments(a) | — | — | |||||||||
Downward adjustments(a) | (8) | (7) | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 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.