What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-02-10 compared with 2022-02-11 · 265 added, 249 removed, 1629 unchanged (24% of the section changed)

29 unchanged sentences

Leases and Contingencies

Retirement Benefit Plan s

Retirement Benefit Plans

Share-Based Compensation

37 unchanged sentences

Management estimates the allowance for finance receivable losses for personal loans collectively evaluated for impairment primarily on historical loss experience using a cumulative loss model applied to the Company’s finance receivable portfolios.

Management also considers forecasted macroeconomic conditions within the Company’s reasonable and supportable forecast period, which incorporated the ongoing impacts of COVID-19 on the U.S.

economy and the overall unemployment rate.

Management also considers forecasted macroeconomic conditions within the Company’s reasonable and supportable forecast period, which incorporated the overall unemployment rate.

The principal considerations for our determination that performing procedures relating to the allowance for finance receivable losses for personal loans collectively evaluated for impairment – forecasted macroeconomic conditions is a critical audit matter are (i) the significant judgment by management in determining adjustments to the results of the cumulative loss model to reflect forecasted macroeconomic conditions, which led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to management’s determination of the impact of forecasted macroeconomic conditions, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

33 unchanged sentences

Management also considers forecasted macroeconomic conditions within the Company’s reasonable and supportable forecast period, which incorporated the ongoing impacts of COVID-19 on the U.S.

economy and the overall unemployment rate.

Management also considers forecasted macroeconomic conditions within the Company’s reasonable and supportable forecast period, which incorporated the overall unemployment rate.

13 unchanged sentences

Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $ 1.7 billion and $ 1.9 billion in 2022, respectively, and $ 1.9 billion and $ 1.8 billion in 2021, respectively)

Net finance receivables (includes loans of consolidated VIEs of $ 8.8 billion in 2021 and 2020)

Net finance receivables (includes loans of consolidated VIEs of $ 10.4 billion in 2022 and $ 8.8 billion in 2021)

19,986 19,212

Unearned insurance premium and claim reserves ( 749 ) ( 761 )

Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ 910 million in 2021 and $ 1.1 billion in 2020)

Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ 1.1 billion in 2022 and $ 910 million in 2021)

( 2,311 ) ( 2,095 )

17 unchanged sentences

Additional paid-in capital 1,689 1,672

Accumulated other comprehensive income 61 94

Accumulated other comprehensive income (loss) ( 119 ) 61

Retained earnings 2,125 1,727

Treasury stock, at cost;

6,712,923 shares at December 31, 2021 and no shares at December 31, 2020, respectively

13,813,476 and 6,712,923 shares at December 31, 2022 and December 31, 2021, respectively

( 667 ) ( 368 )

Total shareholders’ equity 3,029 3,093

14 unchanged sentences

Investment 61 65 75

Gain on sales of finance receivables 63 47 —

Net loss on repurchases and repayments of debt ( 27 ) ( 78 ) ( 39 )

26 unchanged sentences

Foreign currency translation adjustments ( 10 ) 1 2

Other 22 11 —

Income tax effect:

5 unchanged sentences

Reclassification adjustments included in net income, net of tax:

Net realized gains (losses) on available-for-sale securities, net of tax ( 1 ) ( 1 ) 1

Net realized losses on available-for-sale securities, net of tax ( 1 ) ( 1 ) ( 1 )

Reclassification adjustments included in net income, net of tax ( 1 ) ( 1 ) ( 1 )

15 unchanged sentences

Common stock repurchased — — — — ( 303 ) ( 303 )

Treasury stock issued — — — ( 2 ) 4 2

Share-based compensation expense, net of forfeitures

7 unchanged sentences

Balance, December 31, 2022 $ 1 $ 1,689 $ ( 119 ) $ 2,125 $ ( 667 ) $ 3,029

Balance, January 1, 2020 (pre-adoption) $ 1 $ 1,689 $ 44 $ 2,596 $ — $ 4,330

Net impact of adoption of ASU 2016-13 (b)

— — — ( 828 ) — ( 828 )

Balance, January 1, 2020 (post-adoption) 1 1,689 44 1,768 — 3,502

Common stock repurchased (c)

Balance, January 1, 2021 $ 1 $ 1,655 $ 94 $ 1,691 $ — $ 3,441

Common stock repurchased

— — — — ( 368 ) ( 368 )

3 unchanged sentences

— ( 6 ) — — — ( 6 )

Other comprehensive income — — 50 — — 50

Other comprehensive loss — — ( 33 ) — — ( 33 )

Cash dividends (a)

— — — ( 1,278 ) — ( 1,278 )

Net income — — — 1,314 — 1,314

Balance, December 31, 2021 $ 1 $ 1,672 $ 61 $ 1,727 $ ( 368 ) $ 3,093

Balance, January 1, 2019 $ 1 $ 1,681 $ ( 34 ) $ 2,151 $ — $ 3,799

Balance, January 1, 2020 (pre-adoption) $ 1 $ 1,689 $ 44 $ 2,596 $ — $ 4,330

Net impact of adoption of ASU 2016-13 (b)

— — — ( 828 ) — ( 828 )

Balance, January 1, 2020 (post-adoption) 1 1,689 44 1,768 — 3,502

Common stock repurchased (c) — ( 45 ) — — — $ ( 45 )

Share-based compensation expense, net of forfeitures

3 unchanged sentences

Other comprehensive income — — 50 — — 50

— — 78 — — 78

Cash dividends (a) — — — ( 807 ) — ( 807 )

— — — 855 — 855

Net income — — — 730 — 730

Balance, December 31, 2020 $ 1 $ 1,655 $ 94 $ 1,691 $ — $ 3,441

31 unchanged sentences

Cash flows from financing activities

Proceeds from issuance of long-term debt, net of issuance costs 3,759 7,279 5,895

Repayment of long-term debt ( 3,921 ) ( 6,792 ) ( 3,961 )

Proceeds from issuance and borrowings of long-term debt, net of issuance costs 5,618 3,759 7,279

Repayments and repurchases of long-term debt ( 5,149 ) ( 3,921 ) ( 6,792 )

Cash dividends ( 480 ) ( 1,274 ) ( 806 )

Common stock repurchased ( 303 ) ( 368 ) ( 45 )

Treasury stock issued 2 — —

Withholding tax on share-based compensation ( 14 ) ( 6 ) ( 6 )

Net cash provided by (used for) financing activities ( 1,810 ) ( 370 ) 1,521

Net cash used for financing activities ( 326 ) ( 1,810 ) ( 370 )

Net change in cash and cash equivalents and restricted cash and restricted cash equivalents ( 58 ) ( 1,706 ) 1,091

1 unchanged sentence

Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 959 $ 1,017 $ 2,723

ONEMAIN HOLDINGS, INC.

AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

(dollars in millions)

Years Ended December 31, 2022 2021 2020

Supplemental cash flow information

5 unchanged sentences

Cash paid for amounts included in the measurement of operating lease liabilities ( 58 ) ( 58 ) ( 57 )

ONEMAIN HOLDINGS, INC.

AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

(dollars in millions)

Years Ended December 31, 2021 2020 2019

Supplemental non-cash activities

Right-of-use assets obtained in exchange for operating lease obligations $ 66 $ 43 $ 47

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions.

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Consolidated Financial Statements.

5 unchanged sentences

Net finance receivables (includes loans of consolidated VIEs of $ 8.8 billion in 2021 and 2020)

Net finance receivables (includes loans of consolidated VIEs of $ 10.4 billion in 2022 and $ 8.8 billion in 2021)

19,986 19,212

Unearned insurance premium and claim reserves ( 749 ) ( 761 )

Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ 910 million in 2021 and $ 1.1 billion in 2020)

Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ 1.1 billion in 2022 and $ 910 million in 2021)

( 2,311 ) ( 2,095 )

19 unchanged sentences

Additional paid-in capital 1,933 1,916

Accumulated other comprehensive income 61 94

Accumulated other comprehensive income (loss) ( 119 ) 61

Retained earnings 1,199 1,078

14 unchanged sentences

Investment 61 65 75

Gain on sales of finance receivables 63 47 —

Net loss on repurchases and repayments of debt ( 27 ) ( 78 ) ( 39 )

19 unchanged sentences

Foreign currency translation adjustments ( 10 ) 1 2

Other 22 11 —

Income tax effect:

5 unchanged sentences

Reclassification adjustments included in net income, net of tax:

Net realized gains (losses) on available-for-sale securities, net of tax ( 1 ) ( 1 ) 1

Net realized losses on available-for-sale securities, net of tax ( 1 ) ( 1 ) ( 1 )

Reclassification adjustments included in net income, net of tax ( 1 ) ( 1 ) ( 1 )

10 unchanged sentences

Income (Loss) Retained

Earnings Total Shareholders’ Equity

Earnings Total Shareholder’s Equity

Balance, January 1, 2022 $ 5 $ 1,916 $ 61 $ 1,078 $ 3,060

5 unchanged sentences

Balance, December 31, 2022 $ 5 $ 1,933 $ ( 119 ) $ 1,199 $ 3,018

Balance, January 1, 2020 (pre-adoption) $ 5 $ 1,888 $ 44 $ 2,388 $ 4,325

Net impact of adoption of ASU 2016-13 * — — — ( 828 ) ( 828 )

Balance, January 1, 2020 (post-adoption) 5 1,888 44 1,560 3,497

Balance, January 1, 2021 $ 5 $ 1,899 $ 94 $ 1,442 $ 3,440

Share-based compensation expense, net of forfeitures — 23 — — 23

Withholding tax on shared-based compensation — ( 6 ) — — ( 6 )

Other comprehensive income — — 50 — 50

Other comprehensive loss — — ( 33 ) — ( 33 )

Cash dividends — — — ( 1,678 ) ( 1,678 )

1 unchanged sentence

Balance, December 31, 2021 $ 5 $ 1,916 $ 61 $ 1,078 $ 3,060

Balance, January 1, 2019 $ 5 $ 2,110 $ ( 34 ) $ 1,940 $ 4,021

Merger of SFI with OMFC — ( 408 ) — — ( 408 )

Cash contribution from OMH — 144 — — 144

Contribution of SCHC to OMFC from SFI — 34 — — 34

Balance, January 1, 2020 (pre-adoption) $ 5 $ 1,888 $ 44 $ 2,388 $ 4,325

Net impact of adoption of ASU 2016-13 *

— — — ( 828 ) ( 828 )

Balance, January 1, 2020 (post-adoption) 5 1,888 44 1,560 3,497

Share-based compensation expense, net of forfeitures — 17 — — 17

Withholding tax on shared-based compensation — ( 5 ) — — ( 5 )

Withholding tax on share-based compensation — ( 6 ) — — ( 6 )

Other comprehensive income — — 50 — 50

31 unchanged sentences

Cash flows from financing activities

Proceeds from issuance of long-term debt, net of issuance costs 3,759 7,279 5,895

Repayment of long-term debt ( 3,921 ) ( 6,792 ) ( 3,961 )

Cash contribution of SCLH — — 12

Cash contribution from OMH — — 144

Proceeds from issuance and borrowings of long-term debt, net of issuance costs 5,618 3,759 7,279

Repayments and repurchases of long-term debt ( 5,149 ) ( 3,921 ) ( 6,792 )

Cash dividends ( 759 ) ( 1,677 ) ( 846 )

Payments on intercompany notes payable — — ( 170 )

Withholding tax on share-based compensation ( 14 ) ( 6 ) ( 6 )

Net cash provided by (used for) financing activities ( 1,845 ) ( 365 ) 1,507

Net cash used for financing activities ( 304 ) ( 1,845 ) ( 365 )

Net change in cash and cash equivalents and restricted cash and restricted cash equivalents ( 35 ) ( 1,737 ) 1,091

14 unchanged sentences

Right-of-use assets obtained in exchange for operating lease obligations $ 66 $ 43 $ 47

Non-cash merger of SFI with OMFC — — ( 408 )

Non-cash contribution of SCLH — — 22

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions.

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Consolidated Financial Statements.

12 unchanged sentences

We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America ("GAAP").

The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

The statements include the accounts of OMH, its wholly owned subsidiarie s , and variable interest entities ("VIEs") in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions.

14 unchanged sentences

We carry finance receivables at amortized cost which includes accrued finance charges, net unamortized deferred origination costs and unamortized fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables.

We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities.

We include the cash flows from finance receivables held for investment in our consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities.

We may finance certain insurance products offered to our customers as part of finance receivables.

In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

Finance Receivable Revenue Recognition

We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income.

We recognize finance charges as revenue on the accrual basis using the interest method, which we report in Interest income in our consolidated statements of operations.

We defer and amortize the costs to originate certain finance receivables and the revenue from nonrefundable fees, along with any premiums or discounts, as an adjustment to finance charge income using the interest method.

2 unchanged sentences

We reverse finance charge amounts previously accrue d upon suspension of accrual of finance charges.

For credit cards, we continue to accrue finance charges and fees until charge-off when seven payments (approximately 180 days) become contractually past due and reverse finance charges and fees previously accrued.

For credit cards, we continue to accrue finance charges and fees until charge-off when seven payments (approximately 180 days) become contractually past due, at which point we reverse finance charges and fees previously accrued.

For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges.

4 unchanged sentences

Troubled Debt Restructured Finance Receivables

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement.

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy.

When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that receivable as a TDR finance receivable.

1 unchanged sentence

We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the effective interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment.

We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification.

When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment:

reduce interest rate, extend the term, defer or forgive past due interest, or forgive principal.

Additionally, as part of the modification, we may require trial payments.

If the account is delinquent at the time of modification, the account is generally brought current for delinquency reporting.

Additionally, as part of the modification, we may require qualifying payments and then the accounts are generally brought current for delinquency reporting.

Account modifications that are deemed to be a TDR finance receivable are measured for impairment.

27 unchanged sentences

We subject all renewals to the same credit risk underwriting process as we would a new application for credit.

For our personal loans, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account.

We also may extend this offer to customers when they are experiencing higher than normal personal expenses or to a delinquent customer who is experiencing a temporary financial problem.

The account must be current after granting the deferment.

To evaluate whether a borrower’s financial difficulties are temporary, we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current.

If, following this analysis, we believe a borrower’s financial difficulties are not temporary, we will not grant deferment, and the loans may continue to age until they are charged off.

We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies.

Additionally, for borrowers that do not meet the qualifications of a deferment, we may also offer a re-age, settlement, or a loan modification.

We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses.

The allowance for finance receivable losses related to our TDR finance receivables represents specific reserves based on an analysis of the present value of expected future cash flows.

We also establish reserves for TDR finance receivables, which are included in Allowance for finance receivable losses in our consolidated balance sheets.

The allowance for finance receivable losses related to our TDR finance receivables represent loan-specific reserves based on an analysis of the present value of expected future cash flows.

We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool.

8 unchanged sentences

At the time we initially recognize intangible assets, a determination is made with regard to each asset’s useful life.

We have determined that each of our intangible assets have indefinite lives with the exception of value of business acquired (“VOBA”), which has a finite useful life.

We have determined that each of our remaining intangible assets have indefinite lives with the exception of value of business acquired (“VOBA”), which has a finite useful life.

We amortize our finite useful life intangible assets in a manner that reflects the pattern of economic benefit used.

2 unchanged sentences

Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value.

For indefinite-lived intangible assets, we review for impairment at least annually and whenever events occur or circumstances change that would indicate the assets are more likely than not to be impaired.

For indefinite-lived intangible assets, we review for impairment at least annually and whenever events or changes in circumstances indicate the assets are more likely than not to be impaired.

We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test.

1 unchanged sentence

The fair value is determined in accordance with our fair value measurement policy.

If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate.

If the carrying value exceeds the estimated fair value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate.

All our leases are classified as operating leases, and we are the lessee or sublessor in all our lease arrangements.

At inception of an arrangement, we determine if a lease exists.

At lease commencement date, we recognize right-of-use assets and lease liabilities measured at the present value of lease payments over the lease term.

At lease commencement date, we recognize a right-of-use asset and a lease liability measured at the present value of lease payments over the lease term.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

5 unchanged sentences

We have elected the practical expedient to treat both the lease component and non-lease component for our leased office space portfolio as a single lease component.

Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in “Other operating expenses” in our consolidated statement of operations.

Operating lease costs for lease payments are recognized on a straight-line basis over the lease term and are included in Other operating expenses in our consolidated statements of operations.

In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases as variable lease payments.

The lease right-of-use assets are included in “ Other assets ” and the lease liabilities are included in “ Other liabilities ” in our consolidated balance sheet.

The lease right-of-use assets are included in Other assets and the lease liabilities are included in Other liabilities in our consolidated balance sheets.

Insurance Premiums

1 unchanged sentence

Short-duration contracts primarily consist of credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies.

We defer single premium credit insurance premiums from affiliates in unearned premium reserves, which we include as a reduction to net finance receivables.

We defer single premium credit insurance premiums from affiliates in unearned premium reserves, which we include as a reduction to Net finance receivables in our consolidated balance sheets.

We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance, and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies.

1 unchanged sentence

We recognize revenue on long-duration contracts when due from policyholders.

Long-duration contracts include term life, accidental death and dismemberment, and disability income protection.

Long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection.

For single premium long-duration contracts, a liability is accrued, which represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized.

The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations.

We recognize commissions on optional products as other revenue when earned.

The effects of changes in such estimated future policy benefit reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations.

We recognize commissions on optional products as Other revenues - other in our consolidated statements of operations when earned.

We may finance certain insurance products offered to our customers as part of finance receivables.

In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in net finance receivables in the consolidated balance sheets.

The insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows.

In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in Net finance receivables in our consolidated balance sheets.

The insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in our consolidated statements of cash flows.

Policy and Claim Reserves

4 unchanged sentences

Since reserves are based on estimates, the ultimate liability may be more or less than such reserves.

The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed.

The effects of changes in such estimated reserves are classified in Insurance policy benefits and claims in our consolidated statements of operations in the period in which the estimates are changed.

We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders.

We base annuity reserves on assumptions as to investment yields and mortality.

Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities.

Ceded insurance reserves are included in Other assets in our consolidated balance sheets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities.

Insurance Policy Acquisition Costs

We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes).

We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured.

We include deferred policy acquisition costs in Other assets in our consolidated balance sheets and amortize these costs over the terms of the related policies, whether directly written or reinsured.

Investment Securities

3 unchanged sentences

We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity.

We record interest receivable on investment securities in other assets.

We record interest receivable on investment securities in Other assets in our consolidated balance sheets.

Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value.

9 unchanged sentences

• we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security).

If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize the impairment as a direct write-down in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date.

If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize the impairment as a direct write-down in Other revenues - investment in our consolidated statements of operation equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date.

Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period.

12 unchanged sentences

We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss.

Interest receivables on our investment securities are excluded from the amortized cost and fair value and are recorded in “Other assets.” We have elected not to measure an allowance on interest receivables due to our policy to reverse interest receivable at the time collectability is uncertain.

The reversal of interest receivable is recorded in investment revenue.

Interest receivables on our investment securities are excluded from the amortized cost and fair value and are recorded in Other assets in our consolidated balance sheets.

We have elected not to measure an allowance on interest receivables due to our policy to reverse interest receivable at the time collectability is uncertain.

The reversal of interest receivable is recorded in Other revenues - investment in our consolidated statements of operations.

Investment Revenue Recognition

5 unchanged sentences

If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly.

We record the adjustment, along with all investment securities revenue, in investment revenues.

We specifically identify realized gains and losses on investment securities and include them in investment revenues.

We record the adjustment, along with all investment securities revenue, in Other revenues - investment in our consolidated statements of operations.

We specifically identify realized gains and losses on investment securities and include them in Other revenues - investment in our consolidated statements of operations.

Variable Interest Entities

11 unchanged sentences

Restricted Cash and Cash Equivalents

We include funds to be used for future debt payments and collateral relating to our securitization and conduit transactions, insurance regulatory deposits and reinsurance trusts with third parties, in each case , in restricted cash and cash equivalents.

We include funds to be used for future debt payments and collateral relating to our secured debt, insurance regulatory deposits, and reinsurance trusts with third parties, in each case, in restricted cash and cash equivalents.

Long-term Debt

2 unchanged sentences

With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security.

Accretion of discounts and premiums are recorded to interest expense.

Accretion of discounts and premiums are recorded to Interest expense in our consolidated statements of operations.

We recognize income taxes using the asset and liability method.

7 unchanged sentences

We have funded and unfunded noncontributory defined pension plans.

We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plan, in other assets or other liabilities, depending on the funded status at the end of each reporting period.

We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plan, in Other assets or Other liabilities in our consolidated balance sheets, depending on the funded status at the end of each reporting period.

We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss.

Many of our employees are participants in our 401(k) Plan.

Our contributions to the plan are charged to salaries and benefits within operating expenses.

Our contributions to the plan are charged to Salaries and benefits in our consolidated statements of operations.

Share-based Compensation Plans

We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest.

The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised.

The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to Salaries and benefits in our consolidated statements of operations in the period estimates are revised.

For service-based awards subject to graded vesting, expense is recognized under the straight-line method.

10 unchanged sentences

In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities.

We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the marketplace used to measure the fair values.

We measure and classify assets and liabilities in our consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the marketplace used to measure the fair values.

In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access.

21 unchanged sentences

and enhanced disclosures.

Upon adoption, our cash flow assumptions used to measure the liability for future policy benefits will be updated at least annually.

Upon adoption, our assumptions used to measure the liability for future policy benefits will be updated at least annually.

The guidance requires the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income.

The amendments in this ASU become effective for the Company beginning January 1, 2023.

The Company’s cross-functional implementation team continues to make progress in line with the established project plan to ensure we comply with all the amendments in this ASU at the time of adoption.

We will utilize an actuarial software solution to meet the new accounting and disclosure requirements, and we continue to refine the development of the actuarial model and assumptions.

After the model has been subject to a parallel testing phase in 2022, the Company will provide further disclosure regarding the estimated impact of the adoption of the ASU on our consolidated financial statements.

The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method.

This ASU requires a transition date of January 1, 2021 and will result in recasting prior periods.

Our long-duration contracts include term and whole life, accidental death and dismemberment, and disability income protection.

The adoption of this ASU resulted in an increase to insurance claims and policyholder liabilities of $ 97 million, $ 71 million, and $ 18 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively, and a reduction to accumulated other comprehensive income, net of tax, of $ 75 million, $ 56 million, and $ 8 million as of January 1, 2021, December 31, 2021, and December 31, 2022, respectively.

The impact to retained earnings was immaterial as of January 1, 2021, December 31, 2021, and December 31, 2022.

Financial Instruments

In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses:

Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables.

The amendments in this ASU become effective for the Company beginning January 1, 2023 and we will adopt using the modified retrospective transition method.

The adoption of this ASU will not have a material impact on the consolidated financial statements.

We do not believe that any other accounting pronouncements issued, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted.

Finance Receivables

At December 31, 2021, our finance receivables consisted of personal loans and credit cards.

Personal loans are non-revolving, with a fixed rate, fixed terms generally between three and six years , and are secured by automobiles, other titled collateral, or are unsecured.

Our finance receivables consist of personal loans and credit cards.

Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years , and are secured by automobiles, other titled collateral, or are unsecured.

During the third quarter of 2021, we began offering credit cards.

3 unchanged sentences

December 31, 2022

Gross finance receivables (a) $ 18,944 $ 24 $ 18,968

Gross finance receivables * $ 19,615 $ 107 $ 19,722

Unearned fees

3 unchanged sentences

Total $ 19,879 $ 107 $ 19,986

December 31, 2020 (b)

Gross finance receivables (a) $ 17,860 $ — $ 17,860

December 31, 2021

Gross finance receivables * $ 18,944 $ 24 $ 18,968

Unearned fees

3 unchanged sentences

Total $ 19,187 $ 25 $ 19,212

(a) Gross finance receivables equal the unpaid principal balance of our personal loans and credit cards.

For precompute loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges.

(b) There were no credit cards at December 31, 2020 as the product offering began in 2021.

* Personal loan gross finance receivables equal the unpaid principal balance.

For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges.

Credit card gross finance receivables equal the principal balance and billed interest and fees.

GEOGRAPHIC DIVERSIFICATION

5 unchanged sentences

Texas $ 1,954 10 % $ 1,812 9 %

California 1,289 7 1,196 7

Florida 1,446 7 1,255 7

California 1,391 7 1,289 7

Pennsylvania 1,249 6 1,199 6

3 unchanged sentences

Illinois 777 4 765 4

Indiana 728 4 728 4

New York 749 4 681 4

Virginia 665 3 666 4

Indiana 726 4 728 4

Other 8,722 43 8,611 44

Total personal loans $ 19,879 100 % $ 19,187 100 %

Credit Cards (b):

Credit Cards:

California $ 26 24 % $ 7 28 %

1 unchanged sentence

Florida 8 8 2 7

Washington 5 5 1 5

Arizona 4 4 1 4

Pennsylvania 4 4 1 4

Other 45 41 9 38

1 unchanged sentence

(a) December 31, 2021 concentrations of net finance receivables are presented in the order of December 31, 2022 state concentrations.

(b) There were no credit cards at December 31, 2020 as the product offering began in 2021.

WHOLE LOAN SALE TRANSACTIONS

As of December 31, 2021, we have whole loan sale flow agreements with third parties, with remaining terms ranging between one to two years , in which we agreed to sell a combined total of $ 180 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest.

As of December 31, 2022, we have whole loan sale flow agreements with third parties, with remaining terms of up to one year , in which we agreed to sell a combined total of $ 180 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest.

These unsecured personal loans are derecognized from our balance sheet at the time of sale.

We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements.

The gain on sales and servicing fees are recorded in other revenue.

Our first sale was executed in the first quarter of 2021.

During 2021, we sold $ 505 million of gross finance receivables and the gain on the sales was $ 47 million.

The gain on sales and servicing fees are recorded in Other revenues - other in our consolidated statements of operations.

We sold $ 720 million and $ 505 million of gross finance receivables during the years ended December 31, 2022 and 2021, respectively.

The gain on the sales were $ 63 million and $ 47 million during the years ended December 31, 2022 and 2021, respectively.

CREDIT QUALITY INDICATOR

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We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio.

When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and collection of these accounts is handled by our centralized operations.

At 90 days or more contractually past due, we consider our personal loans to be nonperforming and stop accruing finance charges.

We reverse finance charges previously accrued.

When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and collection of these accounts is managed by our centralized operations.

We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued.

For our personal loans, we reversed net accrued finance charges of $ 126 million and $ 77 million during the years ended December 31, 2022 and 2021, respectively.

1 unchanged sentence

All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.

We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due and reverse finance charges and fees previously accrued.

For credit cards, there were no net accrued finance charges and fees reversed for the year ended December 31, 2021.

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent, our key credit quality indicator:

We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued.

For credit cards, net accrued finance charges and fees reversed for the years ended December 31, 2022 and 2021 were immaterial.

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions) 2022 2021 2020 2019 2018 Prior Total

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Total $ 10,976 $ 4,192 $ 2,812 $ 872 $ 212 $ 123 $ 19,187

The following is a summary of credit cards by number of days delinquent, our key credit quality indicator:

The following is a summary of credit cards by number of days delinquent:

(dollars in millions)

December 31, 2022 2021

30-59 days past due

1 unchanged sentence

90+ days past due

There were no credit cards converted to term loans for the year ended December 31, 2021.

There were no credit cards that were converted to term loans at December 31, 2022 or December 31, 2021.

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES

1 unchanged sentence

(dollars in millions)

December 31, 2022 2021

TDR gross finance receivables $ 898 $ 646

2 unchanged sentences

* TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.

There were no credit cards classified as TDR finance receivables for the year ended December 31, 2021.

There were no credit cards classified as TDR finance receivables at December 31, 2022 or December 31, 2021.

Information regarding the new volume of the TDR finance receivables were as follows:

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Number of TDR accounts 88,901 55,229 66,484

* “Other” modifications primarily consist of potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms.

* “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.

Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:

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We do not anticipate that all of our customers will access their entire available line at any given point in time.

The unused credit card lines totaled $ 54 million at December 31, 2021.

The unused credit card lines totaled $ 81 million at December 31, 2022 and $ 54 million at December 31, 2021.

Allowance for Finance Receivable Losses

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We estimate and record an allowance for finance receivable losses to cover the estimated lifetime expected credit losses on our finance receivables, pursuant to the adoption of ASU 2016-13 on January 1, 2020.

Prior to the adoption of ASU 2016-13, we estimated and recorded an allowance for finance receivable losses to cover estimated incurred losses on our finance receivables.

Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.

See Note 2 for additional information regarding our policy for allowance for finance receivable losses.

Our current methodology to estimate expected credit losses used the most recent macroeconomic forecasts, which incorporated the ongoing impacts of the global outbreak of a novel strain of coronavirus (“COVID-19”) on the U.S.

economy and the overall unemployment rate.

We also considered inflationary pressures, supply chain concerns, and businesses’ ability to remain open.

Our forecast leveraged economic projections from industry leading forecast providers.

See Note 2 for additional information regarding our accounting policies for allowance for finance receivable losses.

Our current methodology to estimate expected credit losses used the most recent macroeconomic forecasts, which incorporated the overall unemployment rate.

Our unemployment outlook leveraged economic projections from various industry leading forecast providers.

We also considered inflationary pressures, consumer confidence levels, and continued interest rate increases negatively impacting the economic outlook.

At December 31, 2022, our economic forecast used a reasonable and supportable period of 12 months.

The decrease in our allowance for finance receivable losses for the year ended December 31, 2021 was largely due an improved outlook for unemployment and macroeconomic conditions, partially offset by growth in our loan portfolio.

The increase in our allowance for finance receivable losses for the year ended December 31, 2022 was primarily due to the weakened macroeconomic environment and growth in our loan portfolio.

We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.

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Balance at end of period $ 2,290 $ 21 $ 2,311

Year Ended December 31, 2020 (a)

Year Ended December 31, 2021

Balance at beginning of period $ 2,269 $ — $ 2,269

Impact of adoption of ASU 2016-13 (b) 1,118 — 1,118

Provision for finance receivable losses 588 5 593

4 unchanged sentences

Balance at beginning of period $ 829 $ — $ 829

Impact of adoption of ASU 2016-13 (b) 1,118 — 1,118

Provision for finance receivable losses 1,319 — 1,319

2 unchanged sentences

Balance at end of period $ 2,269 $ — $ 2,269

(a) There were no credit cards for the years ended December 31, 2020 and 2019 as the product offering began in 2021.

(a) There were no credit cards for the year ended December 31, 2020 as the product offering began in 2021.

(b) As a result of the adoption of ASU 2016-13 on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses.

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11.52 % 19.12 % 11.56 %

December 31, 2020 (a)

December 31, 2021

Allowance for finance receivable losses:

9 unchanged sentences

10.89 % 19.91 % 10.90 %

(a) There were no credit cards for the year ended December 31, 2020 as the product offering began in 2021.

Investment Securities

8 unchanged sentences

Obligations of states, municipalities, and political subdivisions

74 — ( 8 ) 66

Commercial paper

government and government sponsored entities

150 — ( 8 ) 142

Corporate debt

3 unchanged sentences

38 — ( 3 ) 35

95 — ( 9 ) 86

Total $ 1,897 $ 1 $ ( 169 ) $ 1,729

12 unchanged sentences

Total $ 1,842 $ 73 $ ( 8 ) $ 1,907

* There was no material allowance for credit losses related to our investment securities as of December 31, 2021 and there was no allowance for credit losses as of December 31, 2020.

Interest receivables reported in “Other assets” totaled $ 13 million and $ 12 million as of December 31, 2021 and 2020, respectively.

There were no material amounts reversed from investment revenue for available-for-sale securities for the year ended December 31, 2021 and no amounts reversed from investment revenue for available-for-sale securities for the year ended December 31, 2020.

* The allowance for credit losses related to our investment securities as of December 31, 2022 and December 31, 2021 were immaterial.

Interest receivables reported in Other assets in our consolidated balance sheets totaled $ 14 million as of December 31, 2022 and $ 13 million as of December 31, 2021, respectively.

There were no material amounts reversed from investment revenue for available-for-sale securities for the years ended December 31, 2022 and 2021.

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:

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December 31, 2021

government and government sponsored entities

$ 6 $ — $ — $ — $ 6 $ —

Obligations of states, municipalities, and political subdivisions

3 unchanged sentences

government and government sponsored entities

19 — 5 — 24 —

Corporate debt 208 ( 3 ) 38 ( 2 ) 246 ( 5 )

Mortgage-backed, asset-backed, and collateralized:

RMBS 81 ( 1 ) 15 ( 1 ) 96 ( 2 )

CMBS 7 — — — 7 —

1 unchanged sentence

Total $ 418 $ ( 5 ) $ 61 $ ( 3 ) $ 479 $ ( 8 )

On a lot basis, we had 570 and 148 investment securities in an unrealized loss position at December 31, 2021 and 2020, respectively.

On a lot basis, we had 2,280 and 570 investment securities in an unrealized loss position at December 31, 2022 and December 31, 2021, respectively.

We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase.

4 unchanged sentences

Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the years ended December 31, 2022 and 2021.

Prior to the adoption of ASU 2016-13, other-than-temporary impairment losses, primarily on corporate debt, in investment revenues were immaterial during 2019.

There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities during 2019.

The proceeds of available-for-sale securities sold or redeemed totaled $ 278 million, $ 250 million and $ 259 million during 2022, 2021, and 2020, respectively.

The net realized gains and losses were immaterial during 2021, 2020, and 2019.

The net realized gains and losses were immaterial during the years ended December 31, 2022, 2021 and 2020.

Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2022 were as follows:

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We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.

The fair value of securities on deposit with third parties totaled $ 587 million and $ 604 million at December 31, 2021 and 2020, respectively.

The fair value of securities on deposit with third parties totaled $ 532 million and $ 587 million at December 31, 2022 and December 31, 2021, respectively.

OTHER SECURITIES

The fair value of other securities by type was as follows:

(dollars in millions)

December 31, 2021 2020

(dollars in millions) December 31, 2022 December 31, 2021

Fixed maturity other securities:

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Stocks included have a history of stable or increasing dividend payments.

Net unrealized gains and losses on other securities held were immaterial at December 31, 2021, 2020, and 2019.

Net unrealized losses on other securities held were $ 9 million for the year ended December 31, 2022 and immaterial for the years ended December 31, 2021 and 2020.

Net realized gains and losses on other securities sold or redeemed were immaterial during 2022, 2021, and 2020.

9 unchanged sentences

Trade names $ 220 $ — $ 220

105 ( 77 ) 28

Licenses 25 — 25

Customer relationships 223 ( 223 ) —

Other 13 ( 12 ) 1

105 ( 90 ) 15

Total $ 351 $ ( 90 ) $ 261

22 unchanged sentences

Total 4.99 5.37 5.68 5.12 5.03

Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2021 were as follows:

(dollars in millions) Securitizations Revolving

Principal maturities of long-term debt by type of debt at December 31, 2022 were as follows:

(dollars in millions) Securitizations Private Secured Term Funding Revolving

Facilities Unsecured

Notes (a) Junior

Notes (a) (e) Junior

Debt (a) Total

8 unchanged sentences

2028-2067 — — — 2,933 350 3,283

Securitizations (c) 7,432 — — — 7,432

Revolving conduit facilities (c) — 600 — — 600

Secured (c) 9,003 350 50 — — 9,403

Total principal maturities $ 9,003 $ 350 $ 50 $ 8,806 $ 350 $ 18,559

4 unchanged sentences

(b) The interest rates shown are the range of contractual rates in effect at December 31, 2022.

(c) Securitizations and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date.

See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities.

(d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $ 29 million at December 31, 2021 and are reported in “Other assets.”

(c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date.

See Note 9 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities.

(d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $ 31 million at December 31, 2022 and are reported in Other assets in our consolidated balance sheets.

(e) During the year ended December 31, 2022, we repurchased, in the open market, portions of our Unsecured Notes in the amount of $ 269 million.

In connection with these repurchases, we recognized a net gain of $ 2 million in Net loss on repurchases and repayments of debt in our consolidated statements of operations.

2022 DEBT ISSUANCES AND REDEMPTIONS

Redemption of 8.875 % Senior Notes Due 2025

On December 9, 2020, OMFC issued a notice of full redemption of its 7.75 % Senior Notes due 2021.

On January 8, 2021, OMFC paid a net aggregate amount of $ 681 million, inclusive of accrued interest and premiums, to complete the redemption.

In connection with the redemption, we recognized $ 47 million of net loss on repurchases and repayments of debt during the year ended December 31, 2021.

Social Bond Offering - Issuance of 3.50 % Senior Notes Due 2027

OMFC issued its inaugural social bond offering on June 22, 2021 for a total of $ 750 million aggregate principal amount of 3.50 % Senior Notes due 2027 (the “Social Bond”) under the Base Indenture, as supplemented by the Twelfth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.

Issuance of 3.875 % Senior Notes Due 2028

On August 11, 2021, OMFC issued a total of $ 600 million aggregate principal amount of 3.875 % Senior Notes due 2028 (the “ 3.875 % Senior Notes due 2028”) under the Base Indenture, as supplemented by the Thirteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.

Redemption of 6.125 % Senior Notes Due 2022

On November 10, 2021, OMFC issued a notice of full redemption of its 6.125 % Senior Notes due 2022.

On December 10, 2021, OMFC paid a net aggregate amount of $ 1.0 billion, inclusive of accrued interest and premiums, to complete the redemption.

In connection with the redemption, we recognized $ 23 million of net loss on repurchases and repayments of debt during the year ended December 31, 2021.

On April 26, 2022, OMFC issued a notice to fully redeem its 8.875 % Senior Notes due 2025.

On June 1, 2022, OMFC paid a net aggregate amount of $ 637 million, inclusive of accrued interest and premiums, to complete the redemption.

In connection with the redemption, we recognized $ 26 million of net loss on repurchases and repayments of debt during the second quarter of 2022.

UNSECURED CORPORATE REVOLVER

On October 25, 2021, OMFC entered into an unsecured corporate revolver with a total maximum borrowing capacity of $ 1.0 billion.

The corporate revolver has a five-year term during which draws and repayments may occur.

On June 15, 2022, OMFC increased the total maximum borrowing capacity of its unsecured corporate revolver to $ 1.25 billion.

The corporate revolver has a five-year term beginning October 25, 2021, during which draws and repayments may occur.

Any outstanding principal balance is due and payable on October 25, 2026.

12 unchanged sentences

The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by OMFC.

OMFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017.

OMFC can redeem the Junior Subordinated Debenture at par.

On December 30, 2013, OMH entered into a guaranty agreement whereby it agreed to fully and unconditionally guarantee, on a junior subordinated basis, the payment of principal, premium (if any), and interest on the Junior Subordinated Debenture.

The interest rate on the remaining principal balance of the Junior Subordinated Debenture consists of a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75 %, or 5.83 % as of December 31, 2022.

On December 30, 2013, OMH entered into a guaranty agreement whereby it agreed to fully and unconditionally guarantee, on a junior subordinated basis, the payment of principle of, premium (if any), and interest on the Junior Subordinated Debenture.

ICE Benchmark Administration and the Financial Conduct Authority have announced that the publication of the most commonly used USD LIBOR settings will cease to be provided or cease to be representative after June 30, 2023.

We expect the Junior Subordinated Debenture to transition from a LIBOR-based interest rate to a SOFR-based interest rate in accordance with the statutory framework provided by the Adjustable Interest Rate (LIBOR) Act, enacted in March 2022, and the rules adopted in December 2022 by the Board of Governors of the Federal Reserve System.

Pursuant to the terms of the Junior Subordinated Debenture, OMFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated Debenture (and not make dividend payments) unless OMFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated Debenture.

A mandatory trigger event occurs if OMFC’s (i) tangible equity to tangible managed assets is less than 5.5 % or (ii) average fixed charge ratio is not more than 1.10 x for the trailing four quarters.

Based upon OMFC’s financial results for the 12 months ended December 31, 2021, a mandatory trigger event did not occur with respect to the interest payment due in January of 2022, as OMFC was in compliance with both required ratios discussed above.

Based upon OMFC’s financial results for the year ended December 31, 2022, a mandatory trigger event did not occur with respect to the interest payment due in January of 2023, as OMFC was in compliance with both required ratios discussed above.

Variable Interest Entities

CONSOLIDATED VIES

As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and revolving conduit transactions.

We have determined that OMFC or OneMain Financial Holdings, LLC (“OMFH”) is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings.

10 unchanged sentences

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit.

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows:

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:

(dollars in millions)

11 unchanged sentences

The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes.

PRIVATE SECURED TERM FUNDING

At December 31, 2022, an aggregate amount of $ 350 million was outstanding under the private secured term funding collateralized by our personal loans.

No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period, at the expiration of which the outstanding principal amount is due and payable.

REVOLVING CONDUIT FACILITIES

1 unchanged sentence

Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period.

Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to nine years as of December 31, 2021.

Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of December 31, 2022.

Amounts drawn on these facilities are collateralized by our personal loans.

At December 31, 2021, an aggregate amount of $ 600 million was drawn under these facilities and the remaining borrowing capacity was $ 5.4 billion.

At December 31, 2022, $ 50 million was drawn under these facilities and the remaining borrowing capacity was $ 6.1 billion.

Our insurance business is conducted through our wholly owned insurance subsidiaries, American Health and Life Insurance Company (“AHL”) and Triton Insurance Company (“Triton”).

1 unchanged sentence

Triton is a property and casualty insurance company licensed in 50 states, the District of Columbia, and Canada to write credit involuntary unemployment, credit disability, and collateral protection insurance.

As part of our continuing integration efforts in connection with the OneMain Acquisition, we sold all of the issued and outstanding shares of our former insurance subsidiary, Merit Life Insurance Co.

(“Merit”) during the 2019 period.

INSURANCE RESERVES

10 unchanged sentences

Total $ 1,351 $ 1,382

(a) Reported as a contra-asset to net finance receivables.

(b) Reported in insurance claims and policyholder liabilities.

(a) Reported in Unearned insurance premium and clam reserves in our consolidated balance sheets.

(b) Reported in Insurance claims and policyholder liabilities in our consolidated balance sheets.

Our insurance subsidiaries enter into reinsurance agreements with other insurers.

19 unchanged sentences

Balance at end of period $ 105 $ 118 $ 148

* At December 31, 2022, $ 11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims.

At December 31, 2021, $ 18 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit disability and unemployment claims.

At December 31, 2020, $ 11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of term life, credit life, and credit disability.

At December 31, 2019, $ 15 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable developments of credit life, disability, and unemployment claims.

At December 31, 2020, $ 11 million reflected a redundancy in the prior years’ net reserves, primarily due to net favorable developments of credit life, credit disability, and term life claims.

Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2022, were as follows:

62 unchanged sentences

Our insurance subsidiaries are subject to domiciliary state regulations that limit their ability to pay dividends.

Our previously owned life insurance subsidiary, Merit, was domiciled in Indiana and redomesticated to Texas on January 28, 2019.

AHL and Triton are domiciled in Texas.

State law restricts the amounts that our insurance subsidiaries may pay as dividends without prior notice to the state of domicile DOI.

The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of:

The maximum amount of dividends, referred to as “ordinary dividends,” for a Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of:

(i) 10 % of policyholders’ surplus as of the prior year-end or (ii) the statutory net gain from operations as of the prior year-end.

7 unchanged sentences

Years Ended December 31, 2022 2021 2020

Property and casualty:

Triton $ 50 $ — $ —

Life and health:

AHL $ — $ 50 $ 48

Extraordinary dividends paid were as follows:

(dollars in millions)

Years Ended December 31, 2021 2020 2019

Merit $ — $ — $ 140

No extraordinary dividends were paid during 2022, 2021, or 2020.

Capital Stock and Earnings Per Share (OMH Only)

5 unchanged sentences

OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series.

The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.

The OMH Board of Directors (the “Board”) and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.

Par value and shares authorized at December 31, 2022 were as follows:

8 unchanged sentences

Common shares repurchased* ( 7,181,023 ) ( 6,712,923 ) ( 2,031,698 )

Treasury stock issued 80,470 — —

Balance at end of period 121,042,125 127,809,640 134,341,724

* During the year ended December 31, 2021, the common stock repurchased was held in treasury.

* During the years ended December 31, 2022 and 2021, the common stock repurchased was held in treasury.

During the year ended December 31, 2020, the common stock repurchased was retired.

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Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method.

The potentially dilutive shares represent outstanding unvested restricted stock units (“RSUs”) and restricted stock awards (“RSAs”).

The potentially dilutive shares represent outstanding unvested restricted stock units (“RSUs”).

Accumulated Other Comprehensive Income (Loss)

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Balance at beginning of period $ 41 $ 3 $ — $ 44

Other comprehensive income before reclassifications 68 6 3 — 77

Other comprehensive income (loss) before reclassifications

51 ( 2 ) 2 — 51

Reclassification adjustments from accumulated other comprehensive income

( 1 ) — — — ( 1 )

Balance at end of period $ 91 $ 1 $ 2 $ — $ 94

(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the year ended December 31, 2021.

There were no amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the years ended December 31, 2020 and 2019.

(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the years ended December 31, 2022 and 2021.

(b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges.

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Virgin Islands.

OMH's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows:

Years Ended December 31, 2021 2020 2019

Statutory federal income tax rate 21.00 % 21.00 % 21.00 %

State income taxes, net of federal 3.27 3.52 3.49

Change in valuation allowance 0.24 0.08 ( 2.07 )

Nondeductible compensation 0.50 0.25 0.13

Other, net ( 0.45 ) 0.48 ( 0.39 )

Effective income tax rate 24.56 % 25.33 % 22.16 %

OMFC's reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows:

OMH's and OMFC’s reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows:

Years Ended December 31, 2022 2021 2020

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Effective income tax rate 24.51 % 24.56 % 25.33 %

The lower effective income tax rate in 2022 as compared to 2021 is primarily due to lower state tax expense.

The lower effective income tax rate in 2021 as compared to 2020 is primarily due to recording the benefit of tax credits and lower state tax expense.

The higher effective income tax rate in 2020 as compared to 2019 is primarily due to the release of the valuation allowance against certain state deferred taxes in 2019.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows:

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Balance at beginning of year $ 8 $ 10 $ 12

Increases in tax positions for current years 2 2 2

Increases in tax positions for prior years 2 — 2

Lapse in statute of limitations ( 3 ) ( 2 ) ( 4 )

Increases in tax positions for prior years 1 2 —

Increases in tax positions for current years — 2 2

Settlements with tax authorities — ( 4 ) —

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Net operating losses and tax credits 35 32

Fair value of equity and securities investments 29 —

Capitalized research and experimental costs 29 —

Insurance reserves 24 34

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The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets.

The decrease in net deferred tax assets of $ 66 million was primarily due to the tax effect of the decrease in the allowance for finance receivable losses and the tax amortization of goodwill.

The increase in net deferred tax assets of $ 113 million was primarily due to the tax effect of the increase in the allowance for finance receivable losses, the capitalization of research and experimental costs, and the fair value of investment securities.

At December 31, 2022, we had state net operating loss carryforwards of $ 480 million compared to $ 375 million at December 31, 2021.

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The total valuation allowance was established based on management’s determination that the deferred tax assets are more likely than not to not be realized.

During 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Consolidated Appropriations Act of 2021 (the “CAA”) were signed into law.

During 2021, the American Rescue Plan Act of 2021 (the “ARPA”) was signed into law.

Among other things, the provisions of these laws relate to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, and technical corrections to tax depreciation methods for qualified improvement property.

Based on our review, we have determined the CARES Act, the CAA, and the ARPA will not have a material impact on our consolidated financial statements.

We will continue to monitor legislative developments related to the COVID-19 pandemic, along with other tax legislative and regulatory developments.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law.

The IRA includes a 15% Corporate Alternative Minimum Tax (“Corporate AMT”) for tax years beginning after December 31, 2022.

We do not expect the Corporate AMT to have a material impact on our consolidated financial statements.

Additionally, the IRA imposes a 1% excise tax on net repurchases of stock by certain publicly traded corporations.

The excise tax is imposed on the value of the net stock repurchased or treated as repurchased.

The new law will apply to stock repurchases occurring after December 31, 2022.

Leases and Contingencies

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Imputed interest ( 18 )

Weighted Average Remaining Lease Term 3.71 years

Weighted Average Remaining Lease Term 3.71

Weighted Average Discount Rate 3.24 %

Operating lease cost and variable lease cost, which are recorded in other operating expenses, were as follows:

Operating lease cost and variable lease cost, which are recorded in Other operating expenses in our consolidated statements of operations, were as follows:

(dollars in millions)

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For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole.

In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C.

§§ 5531, 5536.

The staff’s investigation is focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase.

We are cooperating with the CFPB in this matter and expect ongoing interactions.

Although the Company believes it has not violated the Consumer Financial Protection Act, we are unable to estimate how long this investigation will continue, whether and in what manner the CFPB may commence legal action, or what the ultimate outcome of this matter will be.

Should the CFPB opt to commence legal proceedings, it may seek civil monetary penalties, restitution, injunctive relief, or other damages.

The Company does not currently believe that the outcome of this matter will have a material adverse effect on our business, financial condition, or results of operations.

Retirement Benefit Plans

DEFINED CONTRIBUTION PLAN

The Company sponsors a voluntary defined contribution plan to eligible employees of the Company.

The Company sponsors various retirement benefit plans to eligible employees of the Company.

DEFINED CONTRIBUTION PLANS

OneMain 401(k) Plan

The OneMain 401(k) Plan (the “401(k) Plan”) provided for a 100 % Company matching on the first 4 % of the salary reduction contributions of the employees for 2021, 2020, and 2019.

The OneMain 401(k) Plan (the “401(k) Plan”) provided for a 100 % Company matching on the first 4 % of the salary reduction contributions of the U.S.

employees for 2022, 2021, and 2020.

The salaries and benefits expense associated with this plan was $ 19 million in 2022, $ 17 million in 2021, and $ 18 million in 2020.

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The Company did not make any discretionary profit sharing contributions to the 401(k) Plan in 2022, 2021, or 2020.

OneMain Nonqualified Deferred Compensation Plan

The OneMain Holdings, Inc.

Nonqualified Deferred Compensation Plan (the “NQDC Plan”) was approved by the committee of the Board which oversees OMH’s compensation programs (the “Compensation Committee”) in October 2021 and provides certain eligible employees with the option to defer receipt of some or all of their annual cash incentives and some of their base salaries earned on or after January 1, 2022.

Employer contributions are not permitted under the NQDC Plan and employee contributions will be fully vested at all times.

Distributions of participant accounts will be made following a participant’s separation of service, death, disability, unforeseeable emergency or as of a future payment date specified by the participant.

The NQDC Plan assets and related obligation was immaterial as of December 31, 2022.

Investment income or loss earned by the NQDC Plan is recorded as Other revenues - other in our consolidated statements of operations.

The investment income or loss also represents an increase or decrease in the future payout to the participants with an offset recorded as Salaries and benefits in our consolidated statements of operations.

The net effect of investment income or loss and the related salaries and benefits expense or benefit has no impact on our net income.

DEFINED BENEFIT PLANS

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The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation.

(dollars in millions) Pension

(dollars in millions)

At or for the Years Ended December 31, 2022 2021 2020

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Funded status, end of period $ 3 $ 9 $ 4

Other assets (other liabilities) recognized in the consolidated balance sheet

Net plan assets recognized in our consolidated balance sheets (b)

Pretax net gain (loss) recognized in accumulated other comprehensive income (loss)

$ ( 10 ) $ 2 $ 3

Pretax net gain recognized in accumulated other comprehensive income (loss)

(a) For the years ended December 31, 2022, 2021, and 2020, the actuarial gains or losses were primarily due to year-over-year fluctuations in discount rates used to calculate the present value of benefit obligations for the defined benefit plans.

Adoption of updated mortality assumptions had additional impacts on calculation of gains or losses as did the implementation of refined plan demographic assumptions at December 31, 2019.

(b) Includes three underfunded benefit plans, for which the aggregate projected benefit obligation and accumulated benefit obligation exceeded the related plan assets by $ 13 million, $ 14 million, and $ 13 million at December 31, 2021, 2020, and 2019, respectively.

Adoption of updated mortality assumptions had additional impacts on calculation of gains or losses.

(b) Includes one overfunded benefit plan with net plan assets recognized in Other assets in our consolidated balance sheets of $ 14 million, $ 22 million, and $ 18 million at December 31, 2022, 2021, and 2020, respectively and three underfunded benefit plans, with net projected benefit obligations recognized in Other liabilities in our consolidated balance sheets of $ 11 million, $ 13 million, and $ 14 million at December 31, 2022, 2021, and 2020, respectively.

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans:

(dollars in millions) Pension

(dollars in millions)

Years Ended December 31, 2022 2021 2020

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Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:

Net actuarial loss (gain) 1 2 ( 7 )

Total recognized in other comprehensive income or loss

Net actuarial loss 12 1 2

Total recognized in other comprehensive income

Total recognized in net periodic benefit cost and other comprehensive income

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The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2022 are as follows:

(dollars in millions) Pension

(dollars in millions) Expected Future Benefit Payments

FAIR VALUE MEASUREMENTS — PLAN ASSETS

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Total investments at fair value $ 383

(a) Includes index mutual funds that primarily track several indices, including S&P 500 and S&P 600, in addition to other actively managed accounts, comprised of investments in small cap and large cap companies.

(b) Includes investment mutual funds in companies in emerging and developed markets.

(a) Includes mutual funds that track common market indexes such as the S&P 500 as well as other indexes comprised of investments in small and large cap companies.

(b) Includes mutual funds that track common market indexes comprised of investments in companies in emerging and developed markets.

government issued bonds, U.S.

government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade.

(d) Includes mutual funds and collective investment trusts invested in securities or debt obligations that have a rating below investment grade.

(e) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy.

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The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10 % of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year.

The Omnibus Plan allows for issuance of stock options, RSUs, RSAs, stock appreciation rights, and other stock-based awards and cash awards.

The Omnibus Plan allows for issuance of stock options, RSUs, restricted stock awards, stock appreciation rights, and other stock-based awards and cash awards.

Total share-based compensation expense, net of forfeitures, for all equity-based awards totaled $ 29 million, $ 22 million, and $ 15 million during 2022, 2021, and 2020, respectively.

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These awards are subject to the achievement of performance goals during either a cumulative three-year period or up to a seven year period.

The awards are considered earned after the attainment of the performance goal, which can occur during or after the performance period when results have been evaluated and approved by the committee of the OMH Board of Directors, which oversees OMH's compensation programs (the "Compensation Committee"), and vest according to their certain terms and conditions.

The awards are considered earned after the attainment of the performance goal, which can occur during or after the performance period when results have been evaluated and approved by the Compensation Committee, and vest according to their certain terms and conditions.

The fair value for performance-based awards is typically based on the closing market price of OMH's stock on the date of the award.

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The weighted average grant date fair value of performance-based awards issued in 2022, 2021, and 2020 was $ 50.34 , $ 40.62 , and $ 42.86 , respectively.

The total fair value of performance-based awards that vested was immaterial during 2021, 2020, and 2019.

The total fair value of performance-based awards that vested was $ 7 million during 2022, and immaterial during 2021, and 2020.

The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2022:

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Granted 120,353 50.34

Vested ( 157,948 ) 31.27

Forfeited ( 19,350 ) 45.12

Unvested at December 31, 2022 917,746 41.77 1.77

OTHER STOCK-BASED PLANS

Cash-settled Stock-based Awards

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The grant date fair value of the cash-settled stock-based awards was zero because the satisfaction of the required event-based performance conditions was not considered probable as of the grant dates.

No vesting conditions were satisfied during 2022 related to these awards.

During 2021, the vesting conditions related to a portion of the cash-settled stock-based awards were satisfied and we recognized $ 54 million in salaries and benefits expense.

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The unvested cash-settled stock-based awards are liability-classified and expense is recognized over the requisite service period, which is the period of time the remaining vesting conditions are expected to be satisfied.

As a result, we recognized additional salaries and benefits expense during 2021, which was immaterial.

Additional salaries and benefits expense related to unvested cash-settled stock-based awards was immaterial during 2022 and 2021.

Employee Stock Purchase Plan

The OneMain Employee Stock Purchase Plan (“ESP Plan”) provides certain eligible employees the opportunity to purchase shares of common stock at a discount.

The ESP Plan qualifies as an employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended, and as such is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended.

The Board and stockholders of OMH approved and authorized 1,000,000 shares for issuance under the ESP Plan and became effective January 1, 2022.

The Company issued 80,470 shares of treasury stock associated with the ESP Plan in 2022.

The Company’s expense associated with the ESP Plan in 2022 is immaterial and is recorded in Salaries and benefits on our consolidated statements of operations.

Segment Information

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• Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis;

• Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis leveraging historical TDR receivables and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables, prior to the adoption of ASU 2016-13 on January 1, 2020, and reestablishes the net charge-offs on a historical cost basis;

• Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio;

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Provision for finance receivable losses

1,399 — 3 1,402

Net interest income after provision for finance receivable losses

9 unchanged sentences

Provision for finance receivable losses

1,313 — 6 1,319

Net interest income after provision for finance receivable losses

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Assets $ 20,376 $ 57 $ 2,038 $ 22,471

* Other revenues in Other include the gain on the February 2019 Real Estate Loan Sale, as well as the impairment adjustments on the remaining loans in held for sale in 2019.

Fair Value Measurements

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Restricted cash equivalents in mutual funds 445 — — 445

Restricted cash equivalents in securities — 11 — 11

Total $ 573 $ 1,772 $ 5 $ 2,350

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Obligations of states, municipalities, and political subdivisions

Certificates of deposit and commercial paper

Commercial paper

government and government sponsored entities — 155 — 155

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Other securities

government and government sponsored entities — 1 — 1

Corporate debt — 9 — 9

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Cash and Cash Equivalents

Cash equivalents in mutual funds include positions in money market funds with weighted average maturity of less than 90 days.

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 of less than 90 days at purchase.

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.

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At December 31, 2022, we had no debt carried at fair value under the fair value option.

We estimate the fair values associated with variable rate revolving lines of credit to be equal to par.

We estimate the fair values associated with variable rate secured term funding and revolving lines of credit to be equal to par.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data