Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

Debt

Automotive The following table presents debt in our automotive operations:

	December 31, 2019			December 31, 2018
Secured debt	$	167		$	143
Unsecured debt	13,909			13,292
Finance lease liabilities	310			528
Total automotive debt(a)	$	14,386		$	13,963
Fair value utilizing Level 1 inputs	$	13,628		$	11,693
Fair value utilizing Level 2 inputs	2,300			1,838
Fair value of automotive debt	$	15,928		$	13,531
Available under credit facility agreements	$	17,285		$	14,167
Weighted-average interest rate on outstanding short-term debt(b)	4.9		%	6.6		%
Weighted-average interest rate on outstanding long-term debt(b)	5.4		%	5.2		%

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(a) Includes net discount and debt issuance costs of $540 million and $499 million at December 31, 2019 and 2018.

(b) Includes coupon rates on debt denominated in various foreign currencies and interest free loans.

Finance lease assets in Property, net were $327 million at December 31, 2019. Finance lease costs were $170 million in the year ended December 31, 2019. Finance lease right of use assets obtained in exchange for lease obligations were $196 million in the year ended December 31, 2019. Undiscounted future lease obligations related to finance leases are $129 million for the year 2020, $156 million in aggregate for the years 2021 to 2024 and $354 million thereafter, with imputed interest of $329 million at December 31, 2019. The weighted-average discount rate on finance leases was 10.9% and the weighted-average remaining lease term was 13.7 years at December 31, 2019. Payments for finance leases included in Net cash provided by (used in) financing activities were $183 million at December 31, 2019.

In January 2019 we executed a new three-year committed unsecured revolving credit facility with an initial borrowing capacity of $3.0 billion, reducing to $2.0 billion in July 2020. The facility provides additional financial flexibility and was used in 2019 to fund transformation activities announced in November 2018 for $700 million, which we repaid in full in 2019. In April 2019 we renewed our 364-day $2.0 billion credit facility for an additional 364-day term. This facility has been allocated for exclusive use by GM Financial since April 2018.

GM Financial The following table presents debt of GM Financial:

	December 31, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt	$	39,959	$	40,160	$	42,835	$	42,835
Unsecured debt	48,979		50,239		48,153		47,556
Total GM Financial debt	$	88,938	$	90,399	$	90,988	$	90,391
Fair value utilizing Level 2 inputs			$	88,481			$	88,305
Fair value utilizing Level 3 inputs			$	1,918			$	2,086

Secured debt consists of revolving credit facilities and securitization notes payable. Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged Securitized Assets. Refer to Note 11 for additional information on GM Financial's involvement with VIEs. GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under certain secured credit facilities. The weighted-average interest rate on secured debt was 2.95% at December 31, 2019. The revolving credit facilities have maturity dates ranging from 2020 to 2025 and securitization notes payable have maturity dates ranging from 2020 to 2027. At the end of the revolving period, if not renewed, the debt of revolving credit facilities will amortize over a defined period. In the year ended December 31, 2019 GM Financial entered into new or renewed credit facilities with a total net additional borrowing capacity of $225 million, which had substantially the same terms as existing debt and GM Financial issued $16.2 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 2.75% and maturity dates ranging from 2022 to 2027.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at December 31, 2019 are due beginning in 2020 through 2029 and have a weighted-average interest rate of 3.42%. In the year ended December 31, 2019 GM Financial issued $6.9 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 3.63% and maturity dates ranging from 2021 to 2029.

In January 2020 GM Financial issued $1.25 billion in senior notes with an interest rate of 2.90% due in 2025.

Each of the revolving credit facilities and the indentures governing GM Financial's notes contain terms and covenants including limitations on GM Financial's ability to incur certain liens.

Unsecured credit facilities and other unsecured debt have original maturities of up to four years. The weighted-average interest rate on these credit facilities and other unsecured debt was 4.73% at December 31, 2019.

	Years Ended December 31,
	2019		2018		2017
Automotive interest expense	$	782	$	655	$	575
Automotive Financing - GM Financial interest expense	3,641		3,225		2,566
Total interest expense	$	4,423	$	3,880	$	3,141

The following table summarizes contractual maturities including finance leases at December 31, 2019:

	Automotive		Automotive Financing(a)		Total
2020	$	1,912	$	35,587	$	37,499
2021	535		20,690		21,225
2022	70		11,763		11,833
2023	1,546		7,038		8,584
2024	48		5,795		5,843
Thereafter	10,807		8,160		18,967
	$	14,918	$	89,033	$	103,951

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(a) Secured debt, credit facilities and other unsecured debt are based on expected payoff date. Senior notes principal amounts are based on maturity.

Compliance with Debt Covenants Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Certain of GM Financial’s secured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. GM Financial’s unsecured debt obligations contain covenants including limitations on GM Financial's ability to incur certain liens. Failure to meet certain of these requirements may result in a covenant violation or an event of default depending on the terms of the agreement. An event of default may allow lenders to declare amounts outstanding under these agreements immediately due and payable, to enforce their interests against collateral pledged under these agreements or restrict our ability or GM Financial's ability to obtain additional borrowings. No technical defaults or covenant violations existed at December 31, 2019.