v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2024 annual consolidated financial statements within our 2024 Form 10-K. The following tables present our assets and liabilities measured at fair value on a recurring basis.
Recurring Fair Value Measurements
At June 30, 2025 ($ in millions)Level 1Level 2Level 3
Total(a)
Assets
Debt securities
U.S. government and federal agency $— $1,805 $— $1,805 
State and municipal— — 26 26 
Residential mortgage-backed— 283 — 283 
Asset-backed— 782 — 782 
Other— — 9 9 
Other(b)
14 — 3 17 
Total $14 $2,870 $38 $2,922 
Liabilities
Other(c)
$— $— $1 $1 
Total$— $— $1 $1 
At December 31, 2024 ($ in millions)Level 1Level 2Level 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 
Liabilities
Other(c)
$— $— $11 $11 
Total$— $— $11 $11 
_______________________
(a)    For the six months ended June 30, 2025 and 2024, there were no fair value measurements transferred between levels and changes in our Level 3 assets and liabilities were not material.
(b)    Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Condensed Consolidated Statements of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Condensed Consolidated Statements of Financial Position.
(c)    Other includes certain financial liabilities for which we have elected the fair value option. These liabilities are included in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position.
Level 3 Fair Value Measurements
Our Level 3 recurring fair value measurements primarily relate to state and municipal and corporate debt instruments, which are valued using non-binding broker quotes or other third-party sources, and financial assets and liabilities for which we have elected the fair value option. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2024 annual consolidated financial statements within our 2024 Form 10-K for a description of our process to evaluate third-party pricing servicers. Our state and municipal debt securities are classified as available-for-sale with changes in fair value included in Accumulated other comprehensive income.
Financial Assets and Financial Liabilities Carried at Other Than Fair Value
CarryingCorresponding fair value amount
At June 30, 2025 ($ in millions)valueTotalLevel 1Level 2Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)
$19,457 $19,457 $18,960 $497 $— 
Other assets(a)(b)
$722 $722 $722 $— $— 
Financial assets carried at other than fair value:
Loan receivables, net(c)
$89,400 $102,983 $— $— $102,983 
Financial Liabilities(d)
Financial liabilities carried at other than fair value:
Deposits(e)
$82,262 $82,372 $— $82,372 $— 
Borrowings of consolidated securitization entities$8,340 $8,395 $— $5,478 $2,917 
Senior and subordinated unsecured notes$7,669 $7,659 $— $7,659 $— 
CarryingCorresponding fair value amount
At December 31, 2024 ($ in millions)valueTotalLevel 1Level 2Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)
$14,711 $14,711 $14,711 $— $— 
Other assets(a)(b)
$44 $44 $44 $— $— 
Financial assets carried at other than fair value:
Loan receivables, net(c)
$93,785 $106,632 $— $— $106,632 
Financial Liabilities(d)
Financial liabilities carried at other than fair value:
Deposits(e)
$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)    For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments. Cash equivalent classified as Level 2 represent U.S. Government and Federal Agency debt securities with original maturities of three months or less or acquired within three months or less of their maturity.
(b)    This balance relates to restricted cash and equivalents, which is included in Other assets. Excludes accrued interest receivables of $32 million and $25 million at June 30, 2025 and December 31, 2024, respectively, for which carrying value approximates fair value.
(c)    Includes loan receivables held for sale and 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)Excludes accrued interest payable of $323 million and $339 million, included in Accrued expenses and other liabilities, in our Condensed Consolidated Statements of Financial Position at June 30, 2025 and December 31, 2024, respectively, for which carrying values approximate fair value.
(e)Includes demand deposits with no defined maturity.
Equity Securities Without Readily Determinable Fair Values
Three months endedSix months ended
At or for the periods ended June 30
($ in millions)
2025202420252024
Carrying value(a)
$275 $273 $275 $273 
Upward adjustments(b)
— — — — 
Downward adjustments(b)
— (2)— (2)
_______________________
(a)    Carrying value reflects cumulative purchases and sales in addition to upward and downward carrying value changes, and at December 31, 2024 was $270 million.
(b)    Between January 1, 2018 and June 30, 2025, cumulative upward and downward carrying value adjustments for equity securities held at June 30, 2025 were $201 million and $(9) million, respectively.