Q | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 75-2291093 | |
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | o | Accelerated filer | o | Non-accelerated filer | ý | Smaller Reporting Company | o |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
Item 1. | CONDENSED FINANCIAL STATEMENTS |
June 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 1,757 | $ | 1,289 | |||
Finance receivables, net | 22,945 | 10,998 | |||||
Restricted cash | 1,426 | 744 | |||||
Property and equipment, net | 121 | 52 | |||||
Leased vehicles, net | 2,655 | 1,703 | |||||
Deferred income taxes | 120 | 107 | |||||
Goodwill | 1,158 | 1,108 | |||||
Related party receivables | 105 | 66 | |||||
Other assets | 298 | 130 | |||||
Total assets | $ | 30,585 | $ | 16,197 | |||
Liabilities and Shareholder's Equity | |||||||
Liabilities: | |||||||
Secured debt | $ | 17,548 | $ | 9,378 | |||
Unsecured debt | 5,238 | 1,500 | |||||
Accounts payable and accrued expenses | 492 | 217 | |||||
Deferred income | 123 | 70 | |||||
Taxes payable | 124 | 93 | |||||
Related party taxes payable | 644 | 559 | |||||
Other liabilities | 135 | 1 | |||||
Related party payable | 379 | ||||||
Total liabilities | 24,683 | 11,818 | |||||
Commitments and contingencies (Note 10) | |||||||
Shareholder's equity: | |||||||
Common stock, $0.01 par value per share, 1,000 shares authorized and 502 issued | |||||||
Additional paid-in capital | 4,763 | 3,459 | |||||
Accumulated other comprehensive loss | (68 | ) | (3 | ) | |||
Retained earnings | 1,207 | 923 | |||||
Total shareholder's equity | 5,902 | 4,379 | |||||
Total liabilities and shareholder's equity | $ | 30,585 | $ | 16,197 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | ||||||||||||||||
Finance charge income | $ | 647 | $ | 404 | $ | 1,062 | $ | 762 | ||||||||
Leased vehicle income | 136 | 66 | 243 | 119 | ||||||||||||
Other income | 53 | 17 | 71 | 37 | ||||||||||||
836 | 487 | 1,376 | 918 | |||||||||||||
Costs and expenses | ||||||||||||||||
Salaries and benefits | 116 | 71 | 190 | 144 | ||||||||||||
Other operating expenses | 75 | 22 | 109 | 47 | ||||||||||||
Total operating expenses | 191 | 93 | 299 | 191 | ||||||||||||
Leased vehicle expenses | 101 | 51 | 181 | 92 | ||||||||||||
Provision for loan losses | 100 | 62 | 194 | 110 | ||||||||||||
Interest expense | 164 | 64 | 246 | 127 | ||||||||||||
Acquisition and integration expenses | 16 | 22 | ||||||||||||||
572 | 270 | 942 | 520 | |||||||||||||
Income before income taxes | 264 | 217 | 434 | 398 | ||||||||||||
Income tax provision | 86 | 80 | 150 | 149 | ||||||||||||
Net income | 178 | 137 | 284 | 249 | ||||||||||||
Other comprehensive loss | ||||||||||||||||
Unrealized losses on cash flow hedges | (2 | ) | (3 | ) | ||||||||||||
Foreign currency translation adjustment | (59 | ) | (5 | ) | (65 | ) | (1 | ) | ||||||||
Income tax benefit | 1 | |||||||||||||||
Other comprehensive loss, net | (59 | ) | (7 | ) | (65 | ) | (3 | ) | ||||||||
Comprehensive income | $ | 119 | $ | 130 | $ | 219 | $ | 246 |
Six Months Ended | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
Net cash provided by operating activities | $ | 701 | $ | 582 | |||
Cash flows from investing activities: | |||||||
Purchases of consumer finance receivables, net | (3,812 | ) | (2,870 | ) | |||
Principal collections and recoveries on consumer finance receivables | 3,054 | 2,040 | |||||
Funding of commercial finance receivables, net | (8,405 | ) | (173 | ) | |||
Collections of commercial finance receivables | 8,023 | 46 | |||||
Purchases of leased vehicles, net | (1,176 | ) | (621 | ) | |||
Proceeds from termination of leased vehicles | 84 | 18 | |||||
Acquisition of international operations, net of cash on hand | (2,107 | ) | |||||
Purchases of property and equipment | (4 | ) | (6 | ) | |||
Change in restricted cash | (158 | ) | 235 | ||||
Change in other assets | (2 | ) | 18 | ||||
Net cash used in investing activities | (4,503 | ) | (1,313 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings and issuance of secured debt | 9,085 | 5,063 | |||||
Payments on secured debt | (7,007 | ) | (3,929 | ) | |||
Borrowings and issuance of unsecured debt | 3,022 | ||||||
Payments on unsecured debt | (633 | ) | |||||
Repayment of debt to Ally Financial | (1,416 | ) | |||||
Capital contribution from parent | 1,300 | ||||||
Debt issuance costs | (63 | ) | (23 | ) | |||
Net cash provided by financing activities | 4,288 | 1,111 | |||||
Net increase in cash and cash equivalents | 486 | 380 | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | (18 | ) | |||||
Cash and cash equivalents at beginning of period | 1,289 | 572 | |||||
Cash and cash equivalents at end of period | $ | 1,757 | $ | 952 |
Note 1. | Summary of Significant Accounting Policies |
Acquired International Operations | |||
Cash | $ | 440 | |
Restricted cash | 525 | ||
Finance receivables | 10,981 | ||
Other assets, including identifiable intangible assets | 254 | ||
Secured and unsecured debt | (8,910 | ) | |
Other liabilities | (722 | ) | |
Identifiable net assets acquired | 2,568 | ||
Goodwill resulting from the acquisition | 50 | ||
Aggregate consideration | $ | 2,618 |
Consumer | Commercial | ||||||
Contractually required payments receivable: | $ | 6,026 | $ | 4,067 | |||
Cash flows not expected to be collected: | 98 | 18 | |||||
Fair value: | 5,422 | 3,990 |
International Operations Amounts Included in Results for Three and Six Months Ended | Supplemental Pro Forma - Combined | ||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2013 | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||
Total revenue | $ | 248 | $ | 854 | $ | 746 | $ | 1,634 | $ | 1,456 | |||||||||
Net income | 54 | 184 | 223 | 324 | 374 |
Note 3. | Goodwill |
Six Months Ended | Year Ended | ||||||||||||||
June 30, 2013 | December 31, 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Balance at beginning of period | $ | 1,108 | $ | 1,108 | $ | 1,108 | |||||||||
International operations acquisition(a) | $ | 50 | 50 | ||||||||||||
Balance at end of period | $ | 1,108 | $ | 50 | $ | 1,158 | $ | 1,108 |
(a) | See Note 2 - "Acquisition of Ally Financial Inc. International Operations" for additional information. |
Note 4. | Finance Receivables |
June 30, 2013 | December 31, 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Consumer | |||||||||||||||
Pre-acquisition consumer finance receivables - outstanding balance | $ | 1,432 | $ | 1,305 | $ | 2,737 | $ | 2,162 | |||||||
Pre-acquisition consumer finance receivables - carrying value | $ | 1,279 | $ | 1,272 | $ | 2,551 | $ | 1,958 | |||||||
Post-acquisition consumer finance receivables, net of fees | 9,947 | 5,933 | 15,880 | 8,831 | |||||||||||
11,226 | 7,205 | 18,431 | 10,789 | ||||||||||||
Less: allowance for loan losses | (415 | ) | (8 | ) | (423 | ) | (345 | ) | |||||||
Total consumer finance receivables, net | 10,811 | 7,197 | 18,008 | 10,444 | |||||||||||
Commercial | |||||||||||||||
Post-acquisition commercial finance receivables, collectively evaluated for impairment, net of fees | 1,165 | 3,792 | 4,957 | 560 | |||||||||||
Post-acquisition commercial finance receivables, individually evaluated for impairment, net of fees | 4 | 4 | |||||||||||||
Less: allowance for loan losses - collective | (10 | ) | (12 | ) | (22 | ) | (6 | ) | |||||||
Less: allowance for loan losses - specific | (2 | ) | (2 | ) | |||||||||||
Total commercial finance receivables, net | 1,157 | 3,780 | 4,937 | 554 | |||||||||||
Total finance receivables, net | $ | 11,968 | $ | 10,977 | $ | 22,945 | $ | 10,998 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period | $ | 1,759 | $ | 1,759 | $ | 3,675 | |||||||||
Pre-acquisition consumer finance receivables - carrying value, beginning of period | $ | 1,580 | $ | 1,580 | $ | 3,358 | |||||||||
International operations acquisition | $ | 1,569 | 1,569 | ||||||||||||
Principal collections and other | (292 | ) | (264 | ) | (556 | ) | (509 | ) | |||||||
Change in carrying value adjustment | (9 | ) | 8 | (1 | ) | (37 | ) | ||||||||
Foreign currency translation | (41 | ) | (41 | ) | |||||||||||
Balance at end of period | $ | 1,279 | $ | 1,272 | $ | 2,551 | $ | 2,812 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period | $ | 2,162 | $ | 2,162 | $ | 4,366 | |||||||||
Pre-acquisition consumer finance receivables - carrying value, beginning of period | $ | 1,958 | $ | 1,958 | $ | 4,027 | |||||||||
International operations acquisition | $ | 1,569 | 1,569 | ||||||||||||
Principal collections and other | (641 | ) | (264 | ) | (905 | ) | (1,096 | ) | |||||||
Change in carrying value adjustment | (38 | ) | 8 | (30 | ) | (119 | ) | ||||||||
Foreign currency translation | (41 | ) | (41 | ) | |||||||||||
Balance at end of period | $ | 1,279 | $ | 1,272 | $ | 2,551 | $ | 2,812 |
Contractually required payments receivable: | $ | 1,956 | ||
Cash flows expected to be collected: | $ | 1,818 | ||
Fair value: | $ | 1,569 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Balance at beginning of period | $ | 371 | $ | 371 | $ | 768 | |||||||||
International operations acquisition | $ | 249 | 249 | ||||||||||||
Accretion of accretable yield | (79 | ) | (53 | ) | (132 | ) | (143 | ) | |||||||
Transfer from non-accretable difference | 6 | 6 | 3 | ||||||||||||
Foreign currency translation | (12 | ) | (12 | ) | |||||||||||
Balance at end of period | $ | 298 | $ | 184 | $ | 482 | $ | 628 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Balance at beginning of period | $ | 404 | $ | 404 | $ | 737 | |||||||||
International operations acquisition | $ | 249 | 249 | ||||||||||||
Accretion of accretable yield | (160 | ) | (53 | ) | (213 | ) | (279 | ) | |||||||
Transfer from non-accretable difference | 54 | 54 | 170 | ||||||||||||
Foreign currency translation | (12 | ) | (12 | ) | |||||||||||
Balance at end of period | $ | 298 | $ | 184 | $ | 482 | $ | 628 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Post-acquisition consumer finance receivables, net of fees - beginning of period | $ | 9,432 | $ | 9,432 | $ | 6,326 | |||||||||
International operations acquisition | $ | 5,422 | 5,422 | ||||||||||||
Loans purchased | 1,351 | 1,117 | 2,468 | 1,489 | |||||||||||
Charge-offs | (116 | ) | (116 | ) | (53 | ) | |||||||||
Principal collections and other | (720 | ) | (594 | ) | (1,314 | ) | (422 | ) | |||||||
Foreign currency translation | (12 | ) | (12 | ) | |||||||||||
Balance at end of period | $ | 9,947 | $ | 5,933 | $ | 15,880 | $ | 7,340 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Post-acquisition consumer finance receivables, net of fees - beginning of period | $ | 8,831 | $ | 8,831 | $ | 5,314 | |||||||||
International operations acquisition | $ | 5,422 | 5,422 | ||||||||||||
Loans purchased | 2,710 | 1,117 | 3,827 | 2,885 | |||||||||||
Charge-offs | (248 | ) | (248 | ) | (104 | ) | |||||||||
Principal collections and other | (1,346 | ) | (594 | ) | (1,940 | ) | (755 | ) | |||||||
Foreign currency translation | (12 | ) | (12 | ) | |||||||||||
Balance at end of period | $ | 9,947 | $ | 5,933 | $ | 15,880 | $ | 7,340 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Balance at beginning of period | $ | 382 | $ | 382 | $ | 208 | |||||||||
Provision for loan losses | 80 | $ | 8 | 88 | 62 | ||||||||||
Charge-offs | (116 | ) | (116 | ) | (53 | ) | |||||||||
Recoveries | 69 | 69 | 32 | ||||||||||||
Balance at end of period | $ | 415 | $ | 8 | $ | 423 | $ | 249 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Balance at beginning of period | $ | 345 | $ | 345 | $ | 179 | |||||||||
Provision for loan losses | 169 | $ | 8 | 177 | 110 | ||||||||||
Charge-offs | (248 | ) | (248 | ) | (104 | ) | |||||||||
Recoveries | 149 | 149 | 64 | ||||||||||||
Balance at end of period | $ | 415 | $ | 8 | $ | 423 | $ | 249 |
June 30, 2013 | Percent | December 31, 2012 | Percent | ||||||||||
FICO Score less than 540 | $ | 3,338 | 29.3 | % | $ | 3,011 | 27.4 | % | |||||
FICO Score 540 to 599 | 5,301 | 46.6 | 5,014 | 45.6 | |||||||||
FICO Score 600 to 659 | 2,397 | 21.1 | 2,513 | 22.9 | |||||||||
FICO Score 660 and greater | 343 | 3.0 | 455 | 4.1 | |||||||||
Balance at end of period(a) | $ | 11,379 | 100.0 | % | $ | 10,993 | 100.0 | % |
(a) | Balance at the end of the period is the sum of pre-acquisition consumer finance receivables-outstanding balance and post-acquisition consumer finance receivables, net of fees for the North American segment. |
June 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
North America | International | Total | Percent of Contractual Amount Due | North America | Percent of Contractual Amount Due | ||||||||||||||||
31 - 60 days | $ | 601 | $ | 44 | $ | 645 | 3.4 | % | $ | 428 | 4.1 | % | |||||||||
Greater - than 60 days | 208 | 45 | 253 | 1.4 | 158 | 1.5 | |||||||||||||||
809 | 89 | 898 | 4.8 | 586 | 5.6 | ||||||||||||||||
In repossession | 31 | 4 | 35 | 0.2 | 25 | 0.3 | |||||||||||||||
$ | 840 | $ | 93 | $ | 933 | 5.0 | % | $ | 611 | 5.9 | % |
June 30, 2013 | December 31, 2012 | ||||||
Outstanding recorded investment | $ | 471 | $ | 228 | |||
Less: allowance for loan losses | (71 | ) | (32 | ) | |||
Outstanding recorded investment, net of allowance | $ | 400 | $ | 196 | |||
Unpaid principal balance | $ | 479 | $ | 232 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Average recorded investment | $ | 403 | $ | 53 | $ | 345 | $ | 51 | |||||||
Interest income recognized | 15 | 1 | 25 | 1 |
June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Number of Accounts | Amount | Number of Accounts | Amount | ||||||||||
Three months ended June 30 | 8,966 | $ | 164 | 2,060 | $ | 39 | |||||||
Six months ended June 30 | 15,948 | 290 | 2,709 | 52 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Post-acquisition commercial finance receivables, net of fees - beginning of period | $ | 883 | $ | 883 | |||||||||||
International operations acquisition | $ | 3,990 | 3,990 | ||||||||||||
Loans funded | 1,334 | 6,024 | 7,358 | $ | 174 | ||||||||||
Principal collections and other | (1,048 | ) | (6,199 | ) | (7,247 | ) | (46 | ) | |||||||
Foreign currency translation | (23 | ) | (23 | ) | |||||||||||
Balance at end of period | $ | 1,169 | $ | 3,792 | $ | 4,961 | $ | 128 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Post-acquisition commercial finance receivables, net of fees - beginning of period | $ | 560 | $ | 560 | |||||||||||
International operations acquisition | $ | 3,990 | 3,990 | ||||||||||||
Loans funded | 2,374 | 6,024 | 8,398 | $ | 174 | ||||||||||
Principal collections and other | (1,765 | ) | (6,199 | ) | (7,964 | ) | (46 | ) | |||||||
Foreign currency translation | (23 | ) | (23 | ) | |||||||||||
Balance at end of period | $ | 1,169 | $ | 3,792 | $ | 4,961 | $ | 128 |
Three Months Ended | |||||||||||
June 30, 2013 | |||||||||||
North America | International | Total | |||||||||
Balance at beginning of period | $ | 11 | $ | 11 | |||||||
Provision for loan losses | 1 | $ | 11 | 12 | |||||||
Recoveries | 1 | 1 | |||||||||
Balance at end of period | $ | 12 | $ | 12 | $ | 24 |
Six Months Ended | |||||||||||
June 30, 2013 | |||||||||||
North America | International | Total | |||||||||
Balance at beginning of period | $ | 6 | $ | 6 | |||||||
Provision for loan losses | 6 | $ | 11 | 17 | |||||||
Recoveries | 1 | 1 | |||||||||
Balance at end of period | $ | 12 | $ | 12 | $ | 24 |
June 30, 2013 | December 31, 2012 | ||||||
Group I | $ | 287 | $ | 99 | |||
Group II | 972 | 278 | |||||
Group III | 2,257 | 171 | |||||
Group IV | 928 | 12 | |||||
Group V | 513 | ||||||
Group VI | 4 | ||||||
$ | 4,961 | $ | 560 |
Note 5. | Leased Vehicles |
June 30, 2013 | December 31, 2012 | ||||||
Leased vehicles | $ | 3,579 | $ | 2,283 | |||
Manufacturer incentives | (498 | ) | (307 | ) | |||
3,081 | 1,976 | ||||||
Less: accumulated depreciation | (426 | ) | (273 | ) | |||
Leased vehicles, net | $ | 2,655 | $ | 1,703 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 2,444 | $ | 1,210 | $ | 1,976 | $ | 887 | |||||||
International operations acquisition | 9 | 9 | |||||||||||||
Leased vehicles purchased | 834 | 394 | 1,454 | 778 | |||||||||||
Leased vehicles returned - end of term | (54 | ) | (12 | ) | (106 | ) | (26 | ) | |||||||
Leased vehicles returned - default | (5 | ) | (1 | ) | (9 | ) | (2 | ) | |||||||
Manufacturer incentives | (115 | ) | (55 | ) | (197 | ) | (107 | ) | |||||||
Foreign currency translation | (32 | ) | (9 | ) | (46 | ) | (3 | ) | |||||||
Balance at end of period | $ | 3,081 | $ | 1,527 | $ | 3,081 | $ | 1,527 |
Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 | Fiscal 2017 | Fiscal 2018 | ||||||||||||||||||
Minimum rental payments under operating leases | $ | 303 | $ | 461 | $ | 342 | $ | 118 | $ | 11 | $ | 1 |
Note 6. | Debt |
June 30, 2013 | December 31, 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Secured | |||||||||||||||
Revolving credit facilities | $ | 1,095 | $ | 4,357 | $ | 5,452 | $ | 354 | |||||||
Securitization notes payable | 10,047 | 2,049 | 12,096 | 9,024 | |||||||||||
Total secured | 11,142 | 6,406 | 17,548 | 9,378 | |||||||||||
Unsecured | |||||||||||||||
Bank lines and credit facilities | 1,238 | 1,238 | |||||||||||||
Senior notes | 4,000 | 4,000 | 1,500 | ||||||||||||
Total unsecured | $ | 4,000 | $ | 1,238 | $ | 5,238 | $ | 1,500 |
Years Ending December 31, | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||
Secured debt | $ | 5,808 | $ | 4,933 | $ | 3,518 | $ | 2,173 | $ | 1,016 | $ | 146 | $ | 17,594 | ||||||||||||||
Unsecured debt | 819 | 253 | 139 | 1,027 | 1,000 | 2,000 | 5,238 | |||||||||||||||||||||
Interest | 277 | 387 | 277 | 198 | 134 | 195 | 1,468 | |||||||||||||||||||||
$ | 6,904 | $ | 5,573 | $ | 3,934 | $ | 3,398 | $ | 2,150 | $ | 2,341 | $ | 24,300 |
Note 7. | Variable Interest Entities |
June 30, 2013 | December 31, 2012 | ||||||
Restricted cash | $ | 1,397 | $ | 744 | |||
VIE securitized assets | 20,227 | 10,442 | |||||
VIE liabilities | 17,071 | 9,378 |
Note 8. | Derivative Financial Instruments |
June 30, 2013 | |||||||
Notional | Fair Value(a) | ||||||
Assets | |||||||
Interest rate swaps | $ | 2,313 | $ | 7 | |||
Interest rate caps | 2,419 | 7 | |||||
Foreign exchange swaps(b) | 2,002 | 17 | |||||
Total assets(c) | $ | 6,734 | $ | 31 | |||
Liabilities | |||||||
Interest rate swaps | $ | 2,502 | $ | 20 | |||
Interest rate caps | 2,266 | 7 | |||||
Foreign exchange swaps(b) | 1,500 | 3 | |||||
Total liabilities(d) | $ | 6,268 | $ | 30 |
(a) | See Note 9 - "Fair Values of Assets and Liabilities" for further discussion of fair value disclosure related to the derivatives. |
(b) | The foreign exchange swaps relate to (i) an intercompany loan denominated in foreign currencies (notional balances on the intercompany loan of 748 million Euro (€), 331 million Pound (£) and 190 million Swedish krona (SEK) have been translated to USD) and (ii) a cross currency swap for an international operations securitization. |
(c) | Included in Other Assets on the Consolidated Balance Sheets. |
(d) | Included in Other Liabilities on the Consolidated Balance Sheets. |
Three Months Ended | Six Months Ended | ||||||
June 30, 2013 | |||||||
Gain (loss) recognized in interest expense | |||||||
Interest rate contracts | $ | (3 | ) | $ | (3 | ) | |
Gain (loss) recognized in operating expenses | |||||||
Foreign exchange swaps | (12 | ) | (12 | ) |
Note 9. | Fair Values of Assets and Liabilities |
June 30, 2013 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Assets/ Liabilities At Fair Value | ||||||||||||
Assets | |||||||||||||||
Money market funds(i)(a) | $ | 1,831 | $ | 1,831 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Interest rate swaps(iii) | $ | 7 | 7 | ||||||||||||
Interest rate caps(i) | $ | 7 | 7 | ||||||||||||
Foreign exchange swaps(i) | 17 | 17 | |||||||||||||
Total assets | $ | 1,831 | $ | 24 | $ | 7 | $ | 1,862 | |||||||
Liabilities | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Interest rate swaps(iii) | $ | 20 | $ | 20 | |||||||||||
Interest rate caps(i) | $ | 7 | 7 | ||||||||||||
Foreign exchange swaps(i) | 3 | 3 | |||||||||||||
Total liabilities | $ | $ | 10 | $ | 20 | $ | 30 |
(a) | Excludes cash in banks of $1.4 billion. |
December 31, 2012 | |||||||
Fair Value Measurements Using | |||||||
Level 1 | |||||||
Quoted Prices In Active Markets For Identical Assets | Assets / Liabilities At Fair Value | ||||||
Assets | |||||||
Money market funds(i)(a) | $ | 1,830 | $ | 1,830 |
(a) | Excludes cash in banks of $228 million. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2013 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Balance at beginning of period | |||||||||||||||
Total realized and unrealized gains | |||||||||||||||
Included in earnings | $ | 2 | $ | (4 | ) | $ | 2 | $ | (4 | ) | |||||
Purchases | 7 | (18 | ) | 7 | (18 | ) | |||||||||
Settlements | (2 | ) | 2 | (2 | ) | 2 | |||||||||
Balance at end of period | $ | 7 | $ | (20 | ) | $ | 7 | $ | (20 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2012 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Balance at beginning of period | $ | 2 | $ | (2 | ) | $ | 2 | $ | (6 | ) | |||||
Settlements | (2 | ) | 2 | (2 | ) | 6 | |||||||||
Balance at end of period | $ | $ | $ | $ |
Note 10. | Commitments and Contingencies |
Note 11. | Income Taxes |
Note 12. | Fair Value of Financial Instruments |
June 30, 2013 | December 31, 2012 | |||||||||||||||||||
Level | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | (a) | 1 | $ | 1,757 | $ | 1,757 | $ | 1,289 | $ | 1,289 | ||||||||||
Finance receivables, net | (b) | 3 | 22,945 | 23,085 | 10,998 | 11,313 | ||||||||||||||
Restricted cash - secured debt | (a) | 1 | 1,398 | 1,398 | 729 | 729 | ||||||||||||||
Restricted cash - unsecured debt | (a) | 1 | 28 | 28 | 15 | 15 | ||||||||||||||
Restricted cash - other | (a) | 1 | 32 | 32 | 24 | 24 | ||||||||||||||
Interest rate swap agreements | (c) | 3 | 7 | 7 | ||||||||||||||||
Interest rate cap agreements purchased | (c) | 2 | 7 | 7 | ||||||||||||||||
Foreign exchange swap agreements | (c) | 2 | 17 | 17 | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Secured debt | (d) | 2 | 17,548 | 17,605 | — | 9,378 | — | 9,526 | ||||||||||||
Unsecured debt | (e) | 2 | 5,238 | 5,232 | 1,500 | 1,620 | ||||||||||||||
Interest rate swap agreements | (c) | 3 | 20 | 20 | ||||||||||||||||
Interest rate cap agreements sold | (c) | 2 | 7 | 7 | ||||||||||||||||
Foreign exchange swap agreements | (c) | 2 | 3 | 3 |
(a) | The carrying value of cash and cash equivalents and restricted cash is considered to be a reasonable estimate of fair value since these investments bear interest at market rates and have maturities of less than 90 days. |
(b) | The fair value of the consumer finance receivables in North America is estimated based upon forecasted cash flows on the receivables discounted using a pre-tax weighted average cost of capital. The fair value of the consumer finance receivables in the international operations is estimated based on forecasted cash flows on the receivables discounted using current origination rates for similar type loans. Substantially all commercial finance receivables either have variable interest rates and maturities of one year or less, or were acquired or funded within the last six months. Therefore, the carrying value is considered to be a reasonable estimate of fair value. |
(c) | The fair values of the interest rate cap and swap agreements and foreign exchange swap agreements are based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates. |
(d) | Secured debt is comprised of revolving credit facilities, publicly issued secured debt, and privately issued secured debt. For revolving credit facilities with variable rates of interest and maturities of one year or less, carrying value is considered to be a reasonable estimate of fair value. The fair value of the publicly and privately issued secured term debt is based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated by discounting future net cash flows expected to be paid using current risk-adjusted rates. |
(e) | The fair value of unsecured debt is based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated by discounting future net cash flows expected to be paid using current risk-adjusted rates. |
Note 13. | Segment Reporting |
Three Months Ended June 30, 2013 | |||||||||||||||
North America Segment | International Segment | Corporate | Total | ||||||||||||
Total revenue | $ | 588 | $ | 248 | $ | 836 | |||||||||
Operating expenses, including leased vehicle expenses | 203 | 89 | 292 | ||||||||||||
Provision for credit losses | 81 | 19 | 100 | ||||||||||||
Interest expense | 91 | 81 | $ | (8 | ) | 164 | |||||||||
Acquisition and integration expenses | 16 | 16 | |||||||||||||
Income before income taxes | $ | 213 | $ | 43 | $ | 8 | $ | 264 |
Six Months Ended June 30, 2013 | |||||||||||||||
North America Segment | International Segment | Corporate | Total | ||||||||||||
Total revenue | $ | 1,128 | $ | 248 | $ | 1,376 | |||||||||
Operating expenses, including leased vehicle expenses | 391 | 89 | 480 | ||||||||||||
Provision for credit losses | 175 | 19 | 194 | ||||||||||||
Interest expense | 173 | 81 | $ | (8 | ) | 246 | |||||||||
Acquisition and integration expenses | 22 | 22 | |||||||||||||
Income before income taxes | $ | 389 | $ | 37 | $ | 8 | $ | 434 |
June 30, 2013 | |||||||||||||
North America Segment | International Segment | Corporate | Total | ||||||||||
Finance receivables, net | $ | 11,968 | $ | 10,977 | $ | 22,945 | |||||||
Total assets | $ | 18,096 | $ | 12,489 | $ | 30,585 |
Note 14. | Accumulated Other Comprehensive Loss |
Six Months Ended | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
Unrealized gains on cash flow hedges: | |||||||
Balance at beginning of period | $ | $ | 2 | ||||
Reclassification into earnings, in interest expense, net of taxes | (2 | ) | |||||
Balance at end of period | |||||||
Foreign currency translation adjustment: | |||||||
Balance at beginning of period | (3 | ) | (9 | ) | |||
Translation loss | (65 | ) | (1 | ) | |||
Balance at end of period | (68 | ) | (10 | ) | |||
Total accumulated other comprehensive loss | $ | (68 | ) | $ | (10 | ) |
Note 15. | Guarantor Consolidating Financial Statements |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 1,053 | $ | 704 | $ | 1,757 | |||||||||||||
Finance receivables, net | 687 | 22,258 | 22,945 | ||||||||||||||||
Restricted cash | 1,426 | 1,426 | |||||||||||||||||
Property and equipment, net | 4 | 117 | 121 | ||||||||||||||||
Leased vehicles, net | 2,655 | 2,655 | |||||||||||||||||
Deferred income taxes | $ | 29 | (125 | ) | 216 | 120 | |||||||||||||
Goodwill | 1,095 | 63 | 1,158 | ||||||||||||||||
Related party receivables | 39 | 66 | 105 | ||||||||||||||||
Other assets | 47 | 32 | 219 | 298 | |||||||||||||||
Due from affiliates | 4,241 | 863 | (5,104 | ) | |||||||||||||||
Investment in affiliates | 6,156 | 2,602 | (8,758 | ) | |||||||||||||||
Total assets | $ | 11,607 | $ | 5,116 | $ | 27,724 | $ | (13,862 | ) | $ | 30,585 | ||||||||
Liabilities and Shareholder's Equity | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Secured debt | $ | 17,548 | $ | 17,548 | |||||||||||||||
Unsecured debt | $ | 4,000 | 1,238 | 5,238 | |||||||||||||||
Accounts payable and accrued expenses | 113 | $ | 110 | 269 | 492 | ||||||||||||||
Deferred income | 123 | 123 | |||||||||||||||||
Taxes payable | 78 | 46 | 124 | ||||||||||||||||
Related party taxes payable | 644 | 644 | |||||||||||||||||
Other liabilities | 12 | 123 | 135 | ||||||||||||||||
Related party payable | 7 | 372 | 379 | ||||||||||||||||
Due to affiliates | 863 | 1,498 | 2,743 | (5,104 | ) | ||||||||||||||
Total liabilities | 5,705 | 1,620 | 22,462 | (5,104 | ) | 24,683 | |||||||||||||
Shareholder's equity: | |||||||||||||||||||
Common stock | 801 | (801 | ) | ||||||||||||||||
Additional paid-in capital | 4,763 | 79 | 2,632 | (2,711 | ) | 4,763 | |||||||||||||
Accumulated other comprehensive loss | (68 | ) | (4 | ) | (48 | ) | 52 | (68 | ) | ||||||||||
Retained earnings | 1,207 | 3,421 | 1,877 | (5,298 | ) | 1,207 | |||||||||||||
Total shareholder's equity | 5,902 | 3,496 | 5,262 | (8,758 | ) | 5,902 | |||||||||||||
Total liabilities and shareholder's equity | $ | 11,607 | $ | 5,116 | $ | 27,724 | $ | (13,862 | ) | $ | 30,585 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 1,252 | $ | 37 | $ | 1,289 | |||||||||||||
Finance receivables, net | 1,558 | 9,440 | 10,998 | ||||||||||||||||
Restricted cash | 744 | 744 | |||||||||||||||||
Property and equipment, net | 4 | 48 | 52 | ||||||||||||||||
Leased vehicles, net | 1,703 | 1,703 | |||||||||||||||||
Deferred income taxes | $ | 39 | (28 | ) | 96 | 107 | |||||||||||||
Goodwill | 1,095 | 13 | 1,108 | ||||||||||||||||
Related party receivables | 66 | 66 | |||||||||||||||||
Other assets | 14 | 18 | 98 | 130 | |||||||||||||||
Due from affiliates | 2,063 | $ | (2,063 | ) | |||||||||||||||
Investment in affiliates | 3,274 | 2,193 | (5,467 | ) | |||||||||||||||
Total assets | $ | 6,551 | $ | 4,997 | $ | 12,179 | $ | (7,530 | ) | $ | 16,197 | ||||||||
Liabilities and Shareholder's Equity | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Secured debt | $ | 9,378 | $ | 9,378 | |||||||||||||||
Unsecured debt | $ | 1,500 | 1,500 | ||||||||||||||||
Accounts payable and accrued expenses | 22 | $ | 90 | 105 | 217 | ||||||||||||||
Deferred income | 70 | 70 | |||||||||||||||||
Taxes payable | 91 | 4 | (2 | ) | 93 | ||||||||||||||
Related party taxes payable | 559 | 559 | |||||||||||||||||
Other liabilities | 1 | 1 | |||||||||||||||||
Due to affiliates | 1,669 | 394 | $ | (2,063 | ) | ||||||||||||||
Total liabilities | 2,172 | 1,763 | 9,946 | (2,063 | ) | 11,818 | |||||||||||||
Shareholder's equity: | |||||||||||||||||||
Common stock | 570 | (570 | ) | ||||||||||||||||
Additional paid-in capital | 3,459 | 79 | 123 | (202 | ) | 3,459 | |||||||||||||
Accumulated other comprehensive (loss) income | (3 | ) | (11 | ) | 13 | (2 | ) | (3 | ) | ||||||||||
Retained earnings | 923 | 3,166 | 1,527 | (4,693 | ) | 923 | |||||||||||||
Total shareholder's equity | 4,379 | 3,234 | 2,233 | (5,467 | ) | 4,379 | |||||||||||||
Total liabilities and shareholder's equity | $ | 6,551 | $ | 4,997 | $ | 12,179 | $ | (7,530 | ) | $ | 16,197 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | |||||||||||||||||||
Finance charge income | $ | 30 | $ | 617 | $ | 647 | |||||||||||||
Leased vehicle income | 136 | 136 | |||||||||||||||||
Other income | $ | 35 | 83 | 81 | $ | (146 | ) | 53 | |||||||||||
Equity in income of affiliates | 187 | 158 | (345 | ) | |||||||||||||||
222 | 271 | 834 | (491 | ) | 836 | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Salaries and benefits | 54 | 62 | 116 | ||||||||||||||||
Other operating expenses | (5 | ) | (24 | ) | 104 | 75 | |||||||||||||
Total operating expenses | (5 | ) | 30 | 166 | 191 | ||||||||||||||
Leased vehicle expenses | 101 | 101 | |||||||||||||||||
Provision for loan losses | 60 | 40 | 100 | ||||||||||||||||
Interest expense | 50 | 54 | 206 | (146 | ) | 164 | |||||||||||||
Acquisition and integration expenses | 16 | 16 | |||||||||||||||||
45 | 144 | 529 | (146 | ) | 572 | ||||||||||||||
Income before income taxes | 177 | 127 | 305 | (345 | ) | 264 | |||||||||||||
Income tax (benefit) provision | (1 | ) | (13 | ) | 100 | 86 | |||||||||||||
Net income | $ | 178 | $ | 140 | $ | 205 | $ | (345 | ) | $ | 178 | ||||||||
Comprehensive income | $ | 119 | $ | 146 | $ | 150 | $ | (296 | ) | $ | 119 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
Revenue | ||||||||||||||||||||
Finance charge income | $ | 34 | $ | 370 | $ | 404 | ||||||||||||||
Leased vehicle income | 66 | 66 | ||||||||||||||||||
Other income | $ | 11 | 47 | 66 | $ | (107 | ) | 17 | ||||||||||||
Equity in income of affiliates | 141 | 170 | (311 | ) | ||||||||||||||||
152 | 251 | 502 | (418 | ) | 487 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Salaries and benefits | 48 | 23 | 71 | |||||||||||||||||
Other operating expenses | 4 | (33 | ) | 51 | 22 | |||||||||||||||
Total operating expenses | 4 | 15 | 74 | 93 | ||||||||||||||||
Leased vehicle expenses | 51 | 51 | ||||||||||||||||||
Provision for loan losses | 68 | (6 | ) | 62 | ||||||||||||||||
Interest expense | 14 | 42 | 115 | (107 | ) | 64 | ||||||||||||||
18 | 125 | 234 | — | (107 | ) | 270 | ||||||||||||||
Income before income taxes | 134 | 126 | 268 | (311 | ) | 217 | ||||||||||||||
Income tax (benefit) provision | (3 | ) | (14 | ) | 97 | 80 | ||||||||||||||
Net income | $ | 137 | $ | 140 | $ | 171 | $ | (311 | ) | $ | 137 | |||||||||
Comprehensive income | $ | 130 | $ | 140 | $ | 155 | $ | (295 | ) | $ | 130 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | |||||||||||||||||||
Finance charge income | $ | 69 | $ | 993 | $ | 1,062 | |||||||||||||
Leased vehicle income | 243 | 243 | |||||||||||||||||
Other income | $ | 49 | 124 | 128 | $ | (230 | ) | 71 | |||||||||||
Equity in income of affiliates | 300 | 304 | (604 | ) | |||||||||||||||
349 | 497 | 1,364 | (834 | ) | 1,376 | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Salaries and benefits | 102 | 88 | 190 | ||||||||||||||||
Other operating expenses | (2 | ) | (49 | ) | 160 | 109 | |||||||||||||
Total operating expenses | (2 | ) | 53 | 248 | 299 | ||||||||||||||
Leased vehicle expenses | 181 | 181 | |||||||||||||||||
Provision for loan losses | 127 | 67 | 194 | ||||||||||||||||
Interest expense | 71 | 89 | 316 | (230 | ) | 246 | |||||||||||||
Acquisition and integration expenses | 22 | 22 | |||||||||||||||||
69 | 269 | 834 | (230 | ) | 942 | ||||||||||||||
Income before income taxes | 280 | 228 | 530 | (604 | ) | 434 | |||||||||||||
Income tax (benefit) provision | (4 | ) | (27 | ) | 181 | 150 | |||||||||||||
Net income | $ | 284 | $ | 255 | $ | 349 | $ | (604 | ) | $ | 284 | ||||||||
Comprehensive income | $ | 219 | $ | 262 | $ | 288 | $ | (550 | ) | $ | 219 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | |||||||||||||||||||
Finance charge income | $ | 69 | $ | 693 | $ | 762 | |||||||||||||
Leased vehicle income | 119 | 119 | |||||||||||||||||
Other income | $ | 22 | 110 | 155 | $ | (250 | ) | 37 | |||||||||||
Equity in income of affiliates | 259 | 319 | (578 | ) | |||||||||||||||
281 | 498 | 967 | (828 | ) | 918 | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Salaries and benefits | 97 | 47 | 144 | ||||||||||||||||
Other operating expenses | 8 | (57 | ) | 96 | 47 | ||||||||||||||
Total operating expenses | 8 | 40 | 143 | 191 | |||||||||||||||
Leased vehicle expenses | 92 | 92 | |||||||||||||||||
Provision for loan losses | 128 | (18 | ) | 110 | |||||||||||||||
Interest expense | 29 | 100 | 248 | (250 | ) | 127 | |||||||||||||
37 | 268 | 465 | (250 | ) | 520 | ||||||||||||||
Income before income taxes | 244 | 230 | 502 | (578 | ) | 398 | |||||||||||||
Income tax (benefit) provision | (5 | ) | (28 | ) | 182 | 149 | |||||||||||||
Net income | $ | 249 | $ | 258 | $ | 320 | $ | (578 | ) | $ | 249 | ||||||||
Comprehensive income | $ | 246 | $ | 258 | $ | 317 | $ | (575 | ) | $ | 246 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by operating activities | $ | 86 | $ | 184 | $ | 431 | $ | 701 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of consumer finance receivables, net | (2,695 | ) | (4,222 | ) | $ | 3,105 | (3,812 | ) | |||||||||||
Principal collections and recoveries on consumer finance receivables | 1 | 3,053 | 3,054 | ||||||||||||||||
Proceeds from sale of consumer finance receivables, net | 3,105 | (3,105 | ) | ||||||||||||||||
Funding of commercial finance receivables, net | (2,065 | ) | (7,807 | ) | 1,467 | (8,405 | ) | ||||||||||||
Collections of commercial finance receivables | 985 | 7,038 | 8,023 | ||||||||||||||||
Proceeds from sale of commercial finance receivables, net | 1,467 | (1,467 | ) | ||||||||||||||||
Purchases of leased vehicles, net | (1,176 | ) | (1,176 | ) | |||||||||||||||
Proceeds from termination of leased vehicles | 84 | 84 | |||||||||||||||||
Acquisition of international operations, net of cash on hand | (2,547 | ) | (863 | ) | 440 | 863 | (2,107 | ) | |||||||||||
Purchases of property and equipment | (4 | ) | (4 | ) | |||||||||||||||
Change in restricted cash | (158 | ) | (158 | ) | |||||||||||||||
Change in other assets | (10 | ) | 8 | (2 | ) | ||||||||||||||
Net change in investment in affiliates | (29 | ) | (97 | ) | 126 | ||||||||||||||
Net cash (used in) provided by investing activities | (2,576 | ) | (172 | ) | (2,744 | ) | 989 | (4,503 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings and issuance of secured debt | 1,100 | 7,985 | 9,085 | ||||||||||||||||
Payments on secured debt | (1,100 | ) | (5,907 | ) | (7,007 | ) | |||||||||||||
Borrowings on unsecured debt | 2,500 | 522 | 3,022 | ||||||||||||||||
Payments on unsecured debt | (633 | ) | (633 | ) | |||||||||||||||
Repayment of debt to Ally Financial | (1,416 | ) | (1,416 | ) | |||||||||||||||
Capital contribution from parent | 1,300 | 1,300 | |||||||||||||||||
Debt issuance costs | (29 | ) | (34 | ) | (63 | ) | |||||||||||||
Net capital contribution to subsidiaries | 130 | (130 | ) | ||||||||||||||||
Net change in (due from) due to affiliates | (1,281 | ) | (211 | ) | 2,354 | (862 | ) | ||||||||||||
Net cash (used in) provided by financing activities | 2,490 | (211 | ) | 3,001 | (992 | ) | 4,288 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (199 | ) | 688 | (3 | ) | 486 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (21 | ) | 3 | (18 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 1,252 | 37 | 1,289 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | 1,053 | $ | 704 | $ | $ | 1,757 |
General Motors Financial Company, Inc. | Guarantor | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by operating activities | $ | 94 | $ | 98 | $ | 390 | $ | 582 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of consumer finance receivables, net | (2,870 | ) | (2,748 | ) | $ | 2,748 | (2,870 | ) | |||||||||||
Principal collections and recoveries on consumer finance receivables | 2,040 | 2,040 | |||||||||||||||||
Proceeds from sale of consumer finance receivables, net | 2,748 | (2,748 | ) | ||||||||||||||||
Funding of commercial finance receivables, net | (173 | ) | (173 | ) | |||||||||||||||
Collections of commercial finance receivables | 46 | 46 | |||||||||||||||||
Purchases of leased vehicles, net | (621 | ) | (621 | ) | |||||||||||||||
Proceeds from termination of leased vehicles | 18 | 18 | |||||||||||||||||
Purchases of property and equipment | (1 | ) | (5 | ) | (6 | ) | |||||||||||||
Change in restricted cash | 235 | 235 | |||||||||||||||||
Change in other assets | (7 | ) | 29 | (4 | ) | 18 | |||||||||||||
Net change in investment in affiliates | 2,210 | (2,210 | ) | ||||||||||||||||
Net cash (used in) provided by investing activities | (7 | ) | 1,989 | (1,085 | ) | (2,210 | ) | (1,313 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings and issuance of secured debt | 5,063 | 5,063 | |||||||||||||||||
Payments on secured debt | (3,929 | ) | (3,929 | ) | |||||||||||||||
Debt issuance costs | (23 | ) | (23 | ) | |||||||||||||||
Net capital contribution to subsidiaries | (2,210 | ) | 2,210 | ||||||||||||||||
Net change in (due from) due to affiliates | (87 | ) | (1,694 | ) | 1,781 | ||||||||||||||
Net cash (used in) provided by financing activities | (87 | ) | (1,694 | ) | 682 | 2,210 | 1,111 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 393 | (13 | ) | 380 | |||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 500 | 72 | 572 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | 893 | $ | 59 | $ | $ | 952 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Average consumer finance receivables | $ | 11,323 | $ | 6,957 | $ | 18,280 | $ | 10,238 | $ | 1,085 | 10.6 | % | |||||||||
Average commercial finance receivables | 1,059 | 3,515 | 4,574 | 56 | 1,003 | n.m. | |||||||||||||||
Average finance receivables | 12,382 | 10,472 | 22,854 | 10,294 | 2,088 | 20.3 | % | ||||||||||||||
Average leased vehicles, net | 2,410 | 7 | 2,417 | 1,231 | 1,179 | 95.8 | |||||||||||||||
Average earning assets | $ | 14,792 | $ | 10,479 | $ | 25,271 | $ | 11,525 | $ | 3,267 | 28.3 | % |
Three Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Finance charge income: | |||||||||||||||||||||
Consumer finance receivables | $ | 426 | $ | 143 | $ | 569 | $ | 403 | $ | 23 | 5.7 | % | |||||||||
Commercial finance receivables | 9 | 69 | 78 | 1 | 8 | n.m. | |||||||||||||||
Leased vehicle income | 134 | 2 | 136 | 66 | 68 | 103.0 | |||||||||||||||
Other income | 18 | 35 | 53 | 17 | 1 | 5.9 | % |
Three Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Operating expenses(a) | $ | 109 | $ | 82 | $ | 191 | $ | 93 | $ | 16 | 17.2 | % | |||||||||
Leased vehicle expenses | 99 | 2 | 101 | 51 | 48 | 94.1 | |||||||||||||||
Provision for loan losses | 81 | 19 | 100 | 62 | 19 | 30.6 | |||||||||||||||
Interest expense(a) | 104 | 60 | 164 | 64 | 40 | 62.5 | |||||||||||||||
Acquisition and integration expenses | 16 | 16 |
Six Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Average consumer finance receivables | $ | 11,200 | $ | 3,615 | $ | 14,815 | $ | 10,030 | $ | 1,170 | 11.7 | % | |||||||||
Average commercial finance receivables | 882 | 1,725 | 2,607 | 32 | 850 | n.m. | |||||||||||||||
Average finance receivables | 12,082 | 5,340 | 17,422 | 10,062 | 2,020 | 20.1 | % | ||||||||||||||
Average leased vehicles, net | 2,150 | 4 | 2,154 | 1,100 | 1,050 | 95.5 | % | ||||||||||||||
Average earning assets | $ | 14,232 | $ | 5,344 | $ | 19,576 | $ | 11,162 | $ | 3,070 | 27.5 | % |
Six Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Finance charge income | |||||||||||||||||||||
Consumer finance receivables | $ | 835 | $ | 143 | $ | 978 | $ | 761 | $ | 74 | 9.7 | % | |||||||||
Commercial finance receivables | 15 | 69 | 84 | 1 | 14 | n.m. | |||||||||||||||
Lease vehicle income | 241 | 2 | 243 | 119 | 122 | 102.5 | |||||||||||||||
Other income | 36 | 35 | 71 | 37 | (1 | ) | (2.7 | ) |
Six Months Ended | |||||||||||||||||||||
June 30, | 2013 vs. 2012 Change | ||||||||||||||||||||
2013 | 2012 | Amount | % | ||||||||||||||||||
North America | International | Total | North America | North America | |||||||||||||||||
Operating expenses(a) | $ | 217 | $ | 82 | $ | 299 | $ | 191 | $ | 26 | 13.6 | % | |||||||||
Leased vehicle expenses | 179 | 2 | 181 | 92 | 87 | 94.6 | |||||||||||||||
Provision for loan losses | 175 | 19 | 194 | 110 | 65 | 59.1 | |||||||||||||||
Interest expense(a) | 186 | 60 | 246 | 127 | 59 | 46.5 | |||||||||||||||
Acquisition and integration expense | 22 | 22 |
June 30, 2013 | December 31, 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Pre-acquisition consumer finance receivables - outstanding balance | $ | 1,432 | $ | 1,305 | $ | 2,737 | $ | 2,162 | |||||||
Pre-acquisition consumer finance receivables - carrying value | $ | 1,279 | $ | 1,272 | $ | 2,551 | $ | 1,958 | |||||||
Post-acquisition consumer finance receivables, net of fees | 9,947 | 5,933 | 15,880 | 8,831 | |||||||||||
11,226 | 7,205 | 18,431 | 10,789 | ||||||||||||
Less: allowance for loan losses | (415 | ) | (8 | ) | (423 | ) | (345 | ) | |||||||
Total consumer finance receivables, net | $ | 10,811 | $ | 7,197 | $ | 18,008 | $ | 10,444 | |||||||
Number of outstanding contracts | 736,422 | 694,158 | 1,430,580 | 740,814 | |||||||||||
Average amount of outstanding contract (in dollars)(a) | $ | 15,452 | $ | 10,427 | $ | 13,014 | $ | 14,839 | |||||||
Allowance for loan losses as a percentage of post-acquisition consumer finance receivables, net of fees | 4.2 | % | 0.1 | % | 2.7 | % | 3.9 | % |
(a) | Average amount of outstanding contract consists of pre-acquisition consumer finance receivables - outstanding balance and post-acquisition consumer finance receivables, net of fees, divided by number of outstanding contracts. |
June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
North America | Percent of Contractual Amount Due | International | Total | Percent of Contractual Amount Due | North America | Percent of Contractual Amount Due | ||||||||||||||||||
31 - 60 days | $ | 601 | 5.3 | % | $ | 44 | $ | 645 | 3.4 | % | $ | 428 | 4.1 | % | ||||||||||
Greater - than 60 days | 208 | 1.8 | 45 | 253 | 1.4 | 158 | 1.5 | |||||||||||||||||
809 | 7.1 | 89 | 898 | 4.8 | 586 | 5.6 | ||||||||||||||||||
In repossession | 31 | 0.3 | 4 | 35 | 0.2 | 25 | 0.3 | |||||||||||||||||
$ | 840 | 7.4 | % | $ | 93 | $ | 933 | 5.0 | % | $ | 611 | 5.9 | % |
June 30, 2013 | December 31, 2012 | ||||
Never deferred | 76.6 | % | 77.8 | % | |
Deferred: | |||||
1-2 times | 19.7 | 18.1 | |||
3-4 times | 3.7 | 4.1 | |||
Total deferred | 23.4 | 22.2 | |||
Total | 100.0 | % | 100.0 | % |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America(a) | International | Total | North America(a) | ||||||||||||
Charge-offs | $ | 116 | $ | 116 | $ | 53 | |||||||||
Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio | 36 | $ | 5 | 41 | 65 | ||||||||||
Total credit losses | $ | 152 | $ | 5 | $ | 157 | $ | 118 |
(a) | Total credit losses on the North American portfolio is comprised of the sum of repossession credit losses and mandatory credit losses. |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America(a) | International | Total | North America(a) | ||||||||||||
Charge-offs | $ | 248 | $ | 248 | $ | 104 | |||||||||
Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio | 89 | $ | 5 | 94 | 168 | ||||||||||
Total credit losses | $ | 337 | $ | 5 | $ | 342 | $ | 272 |
(a) | Total credit losses on the North American portfolio is comprised of the sum of repossession credit losses and mandatory credit losses. |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International(a) | Total | North America | ||||||||||||
Repossession credit losses | $ | 151 | $ | 5 | $ | 156 | $ | 119 | |||||||
Less: recoveries | (94 | ) | (94 | ) | $ | (80 | ) | ||||||||
Mandatory credit losses(b) | 1 | 1 | $ | (1 | ) | ||||||||||
Net credit losses | $ | 58 | $ | 5 | $ | 63 | $ | 38 | |||||||
Net annualized credit losses as a percentage of average consumer finance receivables(c): | 2.1 | % | 0.3 | % | 1.4 | % | 1.5 | % | |||||||
Recoveries as a percentage of gross repossession credit losses: | 62.2 | % | 67.7 | % |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
North America | International(a) | Total | North America | ||||||||||||
Repossession credit losses | $ | 339 | $ | 5 | $ | 344 | $ | 278 | |||||||
Less: recoveries | (208 | ) | (208 | ) | (174 | ) | |||||||||
Mandatory credit losses(b) | (2 | ) | (2 | ) | (6 | ) | |||||||||
Net credit losses | $ | 129 | $ | 5 | $ | 134 | $ | 98 | |||||||
Net annualized credit losses as a percentage of average consumer finance receivables(c): | 2.3 | % | 0.3 | % | 1.8 | % | 2.0 | % | |||||||
Recoveries as a percentage of gross repossession credit losses: | 61.2 | % | 62.6 | % |
(a) | International operations net credit losses included in repossession credit losses represent the write-down of receivables to net realizable value, net of any recovery payments received. |
(b) | Mandatory credit losses represent accounts 120 days delinquent in the post-acquisition portfolio that are charged off in full, with no recovery amounts realized at time of charge-off, net of any subsequent recoveries as well as the net write-down of consumer finance receivables in repossession to the net realizable value of the repossessed vehicle when the repossessed vehicle is legally available for sale. |
(c) | Average consumer finance receivables are defined as the average daily receivable balance excluding the carrying value adjustment. |
June 30, 2013 | December 31, 2012 | ||||||||||||||
North America | International | Total | North America | ||||||||||||
Commercial finance receivables, net of fees | $ | 1,169 | $ | 3,792 | $ | 4,961 | $ | 560 | |||||||
Less: allowance for loan losses | (12 | ) | (12 | ) | (24 | ) | (6 | ) | |||||||
Total commercial finance receivables, net | $ | 1,157 | $ | 3,780 | $ | 4,937 | $ | 554 | |||||||
Number of dealers | 208 | 2,443 | 2,651 | 101 | |||||||||||
Average carrying amount per dealer | $ | 6 | $ | 2 | $ | 2 | $ | 5 |
June 30, 2013 | December 31, 2012 | ||||||
Cash and cash equivalents | $ | 1,757 | $ | 1,289 | |||
Borrowing capacity on unpledged eligible assets | 1,648 | 1,349 | |||||
Borrowing capacity on committed unsecured lines of credit | 76 | ||||||
Borrowing capacity on GM Related Party Credit Facility | 600 | 300 | |||||
$ | 4,081 | $ | 2,938 |
Facility Type | Facility Amount | Advances Outstanding | ||||||
Revolving consumer asset secured facilities(a) | $ | 8,279 | $ | 2,991 | ||||
Revolving commercial asset secured facilities(b) | 3,290 | 2,483 | ||||||
Total secured | 11,569 | 5,474 | ||||||
Unsecured committed facilities | 205 | 129 | ||||||
Unsecured uncommitted facilities(c) | 1,109 | |||||||
Total unsecured | 205 | 1,238 | ||||||
GM Related Party Credit Facility | 600 | |||||||
$ | 12,374 | $ | 6,712 |
(a) | Includes revolving credit facilities backed by consumer finance receivables and leases. |
(b) | Includes revolving credit facilities backed by loans to dealers, primarily for floorplan financing. |
(c) | The financial institutions providing the uncommitted facilities are not contractually obligated to advance funds under them; therefore, we do not include available capacity on these facilities in our liquidity. We had $367 million in unused borrowing capacity on these facilities as of June 30, 2013. |
Year of Transaction | Maturity Date (a) | Original Issuance Amounts | Note Balance At June 30, 2013 | |||||||||||||
2007 | June 2018 | $ | 70 | $ | 72 | |||||||||||
2009 | January 2016 | - | July 2017 | 227 | - | $ | 725 | 110 | ||||||||
2010 | July 2017 | - | October 2018 | 200 | - | 850 | 901 | |||||||||
2011 | July 2018 | - | December 2019 | 520 | - | 1,000 | 2,342 | |||||||||
2012 | June 2019 | - | July 2020 | 800 | - | 1,300 | 5,147 | |||||||||
2013 | July 2020 | - | December 2020 | 690 | - | 1,100 | 3,548 | |||||||||
Total active securitizations | 12,120 | |||||||||||||||
Acquisition accounting premium | (24 | ) | ||||||||||||||
$ | 12,096 |
(a) | Maturity dates represent legal final maturity of issued notes. The notes are expected to be paid based on amortization of the finance receivables pledged. |
• | our ability to close the acquisition of the remaining portions of Ally Financial's international operations and integrate the international operations into our business successfully; |
• | GM's ability to sell new vehicles in the markets we serve in North America, Europe and Latin America that we finance; |
• | the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | multiple foreign regulatory requirements that are subject to change; |
• | difficulty in establishing, staffing and managing foreign operations; |
• | differing labor regulations; |
• | consequences from changes in tax laws; |
• | restrictions on the ability to repatriate profits or transfer cash into or out of foreign countries and the tax consequences of such repatriations and transfers; and |
• | devaluations in currencies. |
Item 6. | Exhibits |
31.1 | Officers' Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | Filed Herewith | ||
32.1 | Officers' Certifications of Periodic Report pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | Furnished with this Report | ||
101.INS* | XBRL Instance Document | Furnished with this Report | ||
101.SCH* | XBRL Taxonomy Extension Schema Document | Furnished with this Report | ||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | Furnished with this Report | ||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | Furnished with this Report | ||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | Furnished with this Report | ||
101.PRE* | XBRL Taxonomy Presentation Linkbase Document | Furnished with this Report |
* | Submitted electronically with this Report. |
General Motors Financial Company, Inc. | |||||
(Registrant) | |||||
Date: | July 30, 2013 | By: | /S/ CHRIS A. CHOATE | ||
(Signature) | |||||
Chris A. Choate | |||||
Executive Vice President, | |||||
Chief Financial Officer and Treasurer |
(1) | I have reviewed the Quarterly Report on Form 10-Q of General Motors Financial Company, Inc. (the "Company") for the six months ended June 30, 2013 (this “report”); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
(4) | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
(5) | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
/s/ Daniel E. Berce | ||
Daniel E. Berce | ||
President and Chief Executive Officer |
(1) | I have reviewed the Quarterly Report on Form 10-Q of General Motors Financial Company, Inc. (the "Company") for the six months ended June 30, 2013 (this “report”); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
(4) | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
(5) | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
/s/ Chris A. Choate | ||
Chris A. Choate | ||
Executive Vice President, Chief | ||
Financial Officer and Treasurer |
(1) | The Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Daniel E. Berce | ||
Daniel E. Berce | ||
President and Chief Executive Officer |
(1) | The Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Chris A. Choate | ||
Chris A. Choate | ||
Executive Vice President, Chief | ||
Financial Officer and Treasurer |
(1) | The Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DANIEL E. BERCE | ||
Daniel E. Berce | ||
President and Chief Executive Officer | ||
(1) | The Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ CHRIS A. CHOATE | ||
Chris A. Choate | ||
Executive Vice President, Chief | ||
Financial Officer and Treasurer |
(1) | I have reviewed the Quarterly Report on Form 10-Q of General Motors Financial Company, Inc. (the "Company") for the six months ended June 30, 2013 (this "report"); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
(4) | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's forth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
(5) | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
/s/ DANIEL E. BERCE | ||
Daniel E. Berce | ||
President and Chief Executive Officer |
(1) | I have reviewed the Quarterly Report on Form 10-Q of General Motors Financial Company, Inc. (the "Company") for the six months ended June 30, 2013 (this "report"); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
(4) | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's forth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
(5) | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
/s/ CHRIS A. CHOATE | ||
Chris A. Choate | ||
Executive Vice President, Chief | ||
Financial Officer and Treasurer |
Fair Value Of Financial Instruments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instruments | See Note 12 - "Fair Values of Assets and Liabilities" to the consolidated financial statements in our Form 10-K for further discussion of valuation techniques and fair value measurement levels. The fair value of our foreign exchange swaps use observable quoted prices for inputs and are considered Level 2 financial instruments. Assets and liabilities itemized below were measured at fair value on a recurring basis, using either the market approach (i), the cost approach (ii) or the income approach (iii) (in millions):
The fair value of interest rate caps and swap asset and liabilities at December 31, 2012 was insignificant. The tables below present a reconciliation for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions):
Fair values are based on estimates using present value or other valuation techniques in cases where quoted market prices are not available. Those techniques are significantly affected by the assumptions used, including the discount rate and the estimated timing and amount of future cash flows. Therefore, the estimates of fair value may differ substantially from amounts that ultimately may be realized or paid at settlement or maturity of the financial instruments and those differences may be material. Disclosures about fair value of financial instruments exclude certain financial instruments and all non-financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of our company. Estimated fair values, carrying values and various methods and assumptions used in valuing our financial instruments are set forth below (dollars in millions):
There were no transfers of recurring fair values between levels. The fair value of our consumer finance receivables is based on observable and unobservable inputs within a cash flow model. Those unobservable inputs reflect assumptions regarding expected prepayments, deferrals, delinquencies, recoveries and charge-offs of the loans within the portfolio. The cash flow model produces an estimated amortization schedule of the finance receivables which is the basis for the calculation of the series of cash flows that derive the fair value of the portfolio. The series of cash flows is calculated and discounted using a weighted average cost of capital using unobservable debt and equity percentages, an unobservable cost of equity and an observable cost of debt based on companies with a similar credit rating and maturity profile as our portfolio. Macroeconomic factors could affect the credit performance of our portfolio and therefore could potentially impact the assumptions used in our cash flow model. |
Leased Vehicles Leased Vehicles (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Operating Leased Assets [Line Items] | ||
Amount Servicing For Third-Party (Leases) | $ 429 | $ 625 |
Leased Vehicles
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leased Vehicles | Our operating lease program is offered primarily in North America. As of June 30, 2013, the amount of leased vehicles accounted for as operating leases in our international operations is insignificant; therefore, the following information regarding our leased vehicles is presented on a consolidated basis. Following is a summary of our leased vehicles (in millions):
A summary of the changes in our leased vehicles is as follows (in millions):
As of June 30, 2013 and December 31, 2012, our Canadian subsidiary was servicing $429 million and $625 million of leased vehicles for a third party. The following table summarizes minimum rental payments due to us as lessor under operating leases (in millions):
|
Finance Receivables Finance Receivables (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses - Commercial Loans [Table Text Block] | A summary of the activity in the allowance for commercial loan losses is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators for Commercial Lending [Table Text Block] | A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Impaired Finance Receivables [Table Text Block] | The following table provides information related to the credit-impaired consumer finance receivables acquired with the international operations on the applicable acquisition dates (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables Summary - Post Acquisition Receivables [Table Text Block] | Following is a summary of activity in our post-acquisition consumer finance receivables portfolio (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables Summary - Post-acquisition - Commercial [Table Text Block] | Following is a summary of activity in our post-acquisition commercial finance receivables portfolio (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance receivables, net [Table Text Block] | inance receivables portfolio consists of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables Summary [Table Text Block] | Following is a summary of activity in our pre-acquisition consumer finance receivables portfolio (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretable Yield [Table Text Block] | A summary of the activity in the accretable yield on the pre-acquisition consumer finance receivables portfolios is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | A summary of the activity in the allowance for consumer loan losses is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | A consumer account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. Consumer finance receivables are collateralized by vehicle titles and we have the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. The following is a summary of the contractual amounts of consumer finance receivables, which is not materially different than recorded investment, that are (i) more than 30 days delinquent, not yet in repossession, and (ii) in repossession, but not yet charged off (dollars in millions):
|
Commitments And Contingencies (Details) (USD $)
In Billions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Loss Contingencies [Line Items] | ||
Debt Instrument, Face Amount | $ 4.0 | $ 1.5 |
Leased Vehicles Minimum rental payments (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Jun. 30, 2013
|
|
Fiscal 2013 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | $ 303 |
Fiscal 2014 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 461 |
Fiscal 2015 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 342 |
Fiscal 2016 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 118 |
Fiscal 2017 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 11 |
Fiscal 2018 [Member]
|
|
Minimum Lease Payments [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | $ 1 |
Segments (Notes)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Reporting We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in reporting segments based on geographic regions: the North America Segment (consisting of operations in the United States and Canada) and the International Segment (consisting of operations in all other countries). Our chief operating decision maker evaluates the operating results and performance of our business based on these reporting segments. The management of each segment is responsible for executing our strategies. All inter-segment balances and transactions have been eliminated in consolidation. Key operating data for our reporting segments were as follows (in millions):
|
Debt Debt (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Line of Credit Facility [Line Items] | |||
Amortization of Purchase Accounting Premium | $ 8 | $ 19 | |
Deferred Finance Costs, Net | 46 | 31 | |
Accretion of Discount | 5 | ||
Purchase Price Premium, Unamortized | 2 | ||
Acquisition Accounting Discount - Secured Debt | 48 | ||
Unsecured Debt | 5,238 | 1,500 | |
North America [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Unsecured Debt | 4,000 | 1,500 | |
International [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Original Weighted-Average Interest Rate - Minimum | 0.90% | ||
Original Weighted-Average Interest Rate - Maximum | 6.30% | ||
Unsecured Debt | 1,238 | ||
Secured Debt [Member] | North America [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Original Weighted-Average Interest Rate - Minimum | 0.90% | 0.90% | |
Original Weighted-Average Interest Rate - Maximum | 5.70% | 13.40% | |
Unsecured Debt [Member] | International [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Original Weighted-Average Interest Rate - Minimum | 0.00% | ||
Original Weighted-Average Interest Rate - Maximum | 9.00% | ||
2013 Senior Notes [Member] | North America [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Original Weighted-Average Interest Rate - Minimum | 2.75% | ||
Original Weighted-Average Interest Rate - Maximum | 4.25% | ||
Senior Notes | 2,500 | ||
Senior Notes [Member] | North America [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Original Weighted-Average Interest Rate - Minimum | 2.75% | ||
Original Weighted-Average Interest Rate - Maximum | 6.75% | ||
Senior Notes [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Senior Notes | 4,000 | ||
Senior Notes [Member] | North America [Member]
|
|||
Line of Credit Facility [Line Items] | |||
Unsecured Debt | 4,000 | ||
Senior Notes | $ 4,000 | $ 1,500 |
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Summary of Significant Accounting Policies [Line Items] | |||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 2,500,000,000 | ||
Business Acquisition, Contingent Consideration, at Fair Value | 65,000,000 | ||
Intercompany Subvention Receivable | 105,000,000 | 21,000,000 | |
Intercompany Receivable - Commercial Lending | 57,000,000 | 46,000,000 | |
Intercompany Receivables - Wholesale financing | 570,000,000 | ||
Intercompany Receivable - Commercial Receivables | 379,000,000 | ||
Repayment of acquisition related debt | 1,416,000,000 | ||
Line of Credit Facilities - GM Related Party Facility | 600,000,000 | ||
Foreign Exchange Contract [Member] | Derivative Financial Instruments, Liabilities [Member]
|
|||
Summary of Significant Accounting Policies [Line Items] | |||
Notional Amount of Interest Rate Derivatives | $ 1,500,000,000 |
Leased Vehicles (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASED VEHICLES, net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leased Vehicles, Net [Table Text Block] | eased vehicles is presented on a consolidated basis. Following is a summary of our leased vehicles (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leased Vehicles Summary [Table Text Block] | A summary of the changes in our leased vehicles is as follows (in millions):
|
Finance Receivables Amounts Entering TDR Status (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):
Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. Additional information about loans classified as TDRs is presented below (in millions):
The following table provides information on the recorded investment of consumer loans at the time they became classified as TDRs (dollars in millions):
A redefault is when an account meets the requirements for evaluation under our charge-off policy (See Note 1 - "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in our 2012 Annual Report on Form 10-K for additional information). The unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months or less of being modified as a TDR were $5 million and $10 million for the three and six months ended June 30, 2013. |
Finance Receivables Finance Receivables Summary (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | $ 22,945 | $ 22,945 | $ 10,998 | |||||
Financing Receivable, Gross | 11,379 | 11,379 | 10,993 | |||||
North America [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | 11,968 | 11,968 | 10,998 | |||||
International [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | 10,977 | 10,977 | ||||||
Commercial Loan [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | 3,990 | 3,990 | ||||||
Principal Collection and Recoveries on Receivables | (7,247) | (7,964) | ||||||
Post-Acquisition Finance Receivables, Carrying Value | 883 | 560 | ||||||
Finance Receivables Purchased | 7,358 | 8,398 | ||||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | (23) | (23) | ||||||
Loans and Leases Receivable, Net Reported Amount | 4,961 | 4,961 | ||||||
Financing Receivable, Gross | 4,961 | 4,961 | 560 | |||||
Commercial Loan [Member] | North America [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | ||||||||
Principal Collection and Recoveries on Receivables | (1,048) | (46) | (1,765) | (46) | ||||
Post-Acquisition Finance Receivables, Carrying Value | 883 | 560 | ||||||
Finance Receivables Purchased | 1,334 | 174 | 2,374 | 174 | ||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | ||||||||
Loans and Leases Receivable, Net Reported Amount | 1,169 | 128 | 1,169 | 128 | ||||
Commercial Loan [Member] | International [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | 3,990 | 3,990 | ||||||
Principal Collection and Recoveries on Receivables | (6,199) | (6,199) | ||||||
Post-Acquisition Finance Receivables, Carrying Value | ||||||||
Finance Receivables Purchased | 6,024 | 6,024 | ||||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | (23) | (23) | ||||||
Loans and Leases Receivable, Net Reported Amount | 3,792 | 3,792 | ||||||
Consumer Loan [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | 15,880 | 15,880 | ||||||
Consumer Loan [Member] | North America [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | 9,947 | 7,340 | 9,947 | 7,340 | ||||
Consumer Loan [Member] | International [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Net Reported Amount | 5,933 | 5,933 | ||||||
Consumer Loan [Member] | Pre-Acquisition Portfolio [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,759 | 2,162 | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 1,580 | 1,958 | ||||||
Business Combination, Acquired Receivables, Fair Value | 1,569 | 1,569 | ||||||
Principal Collection and Recoveries on Receivables | (556) | (905) | ||||||
Change in Carrying Value Adjustment | (1) | (30) | ||||||
Foreign Currency Translation - Finance Receivables | (41) | (41) | ||||||
Financing Receivable, Gross | 2,551 | 2,551 | ||||||
Consumer Loan [Member] | Pre-Acquisition Portfolio [Member] | North America [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,759 | 2,162 | 3,675 | 4,366 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 1,580 | 1,958 | 3,358 | 4,027 | ||||
Business Combination, Acquired Receivables, Fair Value | ||||||||
Principal Collection and Recoveries on Receivables | (292) | (509) | (641) | (1,096) | ||||
Change in Carrying Value Adjustment | (9) | (37) | (38) | (119) | ||||
Foreign Currency Translation - Finance Receivables | ||||||||
Financing Receivable, Gross | 1,279 | 2,812 | 1,279 | 2,812 | ||||
Consumer Loan [Member] | Pre-Acquisition Portfolio [Member] | International [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | 1,569 | 1,569 | ||||||
Principal Collection and Recoveries on Receivables | (264) | (264) | ||||||
Change in Carrying Value Adjustment | 8 | 8 | ||||||
Foreign Currency Translation - Finance Receivables | (41) | (41) | ||||||
Financing Receivable, Gross | 1,272 | 1,272 | ||||||
Consumer Loan [Member] | Post-Acquisition Portfolio [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | 5,422 | 5,422 | ||||||
Principal Collection and Recoveries on Receivables | (1,314) | (1,940) | ||||||
Post-Acquisition Finance Receivables, Carrying Value | 9,432 | 8,831 | ||||||
Finance Receivables Purchased | 2,468 | 3,827 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | (116) | (248) | ||||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | (12) | (12) | ||||||
Consumer Loan [Member] | Post-Acquisition Portfolio [Member] | North America [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | ||||||||
Principal Collection and Recoveries on Receivables | (720) | (422) | (1,346) | (755) | ||||
Post-Acquisition Finance Receivables, Carrying Value | 9,432 | 8,831 | 6,326 | 5,314 | ||||
Finance Receivables Purchased | 1,351 | 1,489 | 2,710 | 2,885 | ||||
Financing Receivable, Allowance for Credit Losses, Write-downs | (116) | (53) | (248) | (104) | ||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | ||||||||
Consumer Loan [Member] | Post-Acquisition Portfolio [Member] | International [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business Combination, Acquired Receivables, Fair Value | 5,422 | 5,422 | ||||||
Principal Collection and Recoveries on Receivables | (594) | (594) | ||||||
Post-Acquisition Finance Receivables, Carrying Value | ||||||||
Finance Receivables Purchased | 1,117 | 1,117 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | ||||||||
Finance Receivables - Post Acquisition - Foreign Currency Translation | $ (12) | $ (12) |
Segments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key operating data for our reporting segments were as follows (in millions):
|
Acquisition of Businesses Purchase Price Allocation (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Restricted Cash and Cash Equivalents | $ 1,397,000 | $ 744,000 |
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 50,000,000 | |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 2,600,000,000 | |
Ally FInancial [Member]
|
||
Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents | 440,000,000 | |
Restricted Cash and Cash Equivalents | 525,000,000 | |
Business Combination, Acquired Receivables, Fair Value | 10,981,000,000 | |
Business Acquisition, Purchase Price Allocation, Other Noncurrent Assets | 254,000,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 8,910,000,000 | |
Business Acquisition, Purchase Price Allocation, Other Noncurrent Liabilities | 722,000,000 | |
Identifiable net assets acquired | 2,568,000,000 | |
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 50,000,000 | |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 2,618,000,000 |
Finance Receivables Credit Quality (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
Rate
|
Dec. 31, 2012
Rate
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Receivables Credit Indicator, Percentage | 100.00% | 100.00% |
Financing Receivable, Gross | $ 11,379 | $ 10,993 |
Notes, Loans and Financing Receivable, Net | 22,945 | 10,998 |
FICO Scores Less Than 540 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Receivables, Carrying Value | 3,338 | 3,011 |
Finance Receivables Credit Indicator, Percentage | 29.30% | 27.40% |
FICO score 540 to 599 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Receivables, Carrying Value | 5,301 | 5,014 |
Finance Receivables Credit Indicator, Percentage | 46.60% | 45.60% |
FICO score 600 to 659 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Receivables, Carrying Value | 2,397 | 2,513 |
Finance Receivables Credit Indicator, Percentage | 21.10% | 22.90% |
FICO score 660 and greater [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Receivables, Carrying Value | 343 | 455 |
Finance Receivables Credit Indicator, Percentage | 3.00% | 4.10% |
Commercial Loan [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 4,961 | 560 |
Commercial Loan [Member] | Group 1 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 287 | 99 |
Commercial Loan [Member] | Group 2 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 972 | 278 |
Commercial Loan [Member] | Group 3 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 2,257 | 171 |
Commercial Loan [Member] | Group 4 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 928 | 12 |
Commercial Loan [Member] | Group 5 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 513 | |
Commercial Loan [Member] | Group 6 [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | $ 4 |
Fair Values Of Assets And Liabilities Fair Value Measured On Recurring Basis (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values Of Assets And Liabilities [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
|
Fair Values Of Assets And Liabilities Fair Value of Assets and Liabilities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount Exluded From Money Market Funds | $ 1,400 | $ 228 |
Guarantor Consolidating Financial Statements Current Period Guarantor Balance Sheet (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Guarantor [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 1,757,000,000 | $ 1,289,000,000 | $ 952,000,000 | $ 572,000,000 |
Notes, Loans and Financing Receivable, Net | 22,945,000,000 | 10,998,000,000 | ||
Restricted Cash and Investments | 1,426,000,000 | 744,000,000 | ||
Restricted Cash and Cash Equivalents | 1,397,000 | 744,000 | ||
Property, Plant and Equipment, Net | 121,000,000 | 52,000,000 | ||
Property Subject to or Available for Operating Lease, Net | 2,655,000,000 | 1,703,000,000 | ||
Deferred Tax Assets, Net | 120,000,000 | 107,000,000 | ||
Goodwill | 1,158,000,000 | 1,108,000,000 | ||
Intercompany Receivable | 105,000,000 | 66,000,000 | ||
Other Assets | 298,000,000 | 130,000,000 | ||
Assets | 30,585,000,000 | 16,197,000,000 | ||
Line of Credit Facility, Amount Outstanding | 17,548,000,000 | 9,378,000,000 | ||
Securitized Debt Obligation Liability | 5,238,000,000 | 1,500,000,000 | ||
Accounts Payable And Accrued Expenses | 492,000,000 | 217,000,000 | ||
Deferred Revenue | 123,000,000 | 70,000,000 | ||
Taxes Payable | 124,000,000 | 93,000,000 | ||
Intercompany Taxes Payable | 644,000,000 | 559,000,000 | ||
Derivative Liabilities | 135,000,000 | 1,000,000 | ||
Accounts Payable, Related Parties | 379,000,000 | |||
Due to Affiliate | ||||
Liabilities | 24,683,000,000 | 11,818,000,000 | ||
Additional Paid in Capital, Common Stock | 4,763,000,000 | 3,459,000,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (68,000,000) | (3,000,000) | ||
Retained Earnings (Accumulated Deficit) | 1,207,000,000 | 923,000,000 | ||
Stockholders' Equity Attributable to Parent | 5,902,000,000 | 4,379,000,000 | ||
Liabilities and Equity | 30,585,000,000 | 16,197,000,000 | ||
Parent Company [Member]
|
||||
Guarantor [Line Items] | ||||
Property, Plant and Equipment, Net | ||||
Deferred Tax Assets, Net | 29,000,000 | 39,000,000 | ||
Goodwill | 1,095,000,000 | 1,095,000,000 | ||
Intercompany Receivable | 39,000,000 | 66,000,000 | ||
Other Assets | 47,000,000 | 14,000,000 | ||
Due from Affiliates | 4,241,000,000 | 2,063,000,000 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 6,156,000,000 | 3,274,000,000 | ||
Assets | 11,607,000,000 | 6,551,000,000 | ||
Securitized Debt Obligation Liability | 4,000,000,000 | 1,500,000,000 | ||
Accounts Payable And Accrued Expenses | 113,000,000 | 22,000,000 | ||
Taxes Payable | 78,000,000 | 91,000,000 | ||
Intercompany Taxes Payable | 644,000,000 | 559,000,000 | ||
Accounts Payable, Related Parties | 7,000,000 | |||
Due to Affiliate | 863,000,000 | |||
Liabilities | 5,705,000,000 | 2,172,000,000 | ||
Additional Paid in Capital, Common Stock | 4,763,000,000 | 3,459,000,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (68,000,000) | (3,000,000) | ||
Retained Earnings (Accumulated Deficit) | 1,207,000,000 | 923,000,000 | ||
Stockholders' Equity Attributable to Parent | 5,902,000,000 | 4,379,000,000 | ||
Liabilities and Equity | 11,607,000,000 | 6,551,000,000 | ||
Guarantor Subsidiaries [Member]
|
||||
Guarantor [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 1,053,000,000 | 1,252,000,000 | 893,000,000 | 500,000,000 |
Notes, Loans and Financing Receivable, Net | 687,000,000 | 1,558,000,000 | ||
Property, Plant and Equipment, Net | 4,000,000 | 4,000,000 | ||
Deferred Tax Assets, Net | (125,000,000) | (28,000,000) | ||
Intercompany Receivable | ||||
Other Assets | 32,000,000 | 18,000,000 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 2,602,000,000 | 2,193,000,000 | ||
Assets | 5,116,000,000 | 4,997,000,000 | ||
Accounts Payable And Accrued Expenses | 110,000,000 | 90,000,000 | ||
Taxes Payable | 4,000,000 | |||
Intercompany Taxes Payable | ||||
Derivative Liabilities | 12,000,000 | |||
Accounts Payable, Related Parties | ||||
Due to Affiliate | 1,498,000,000 | 1,669,000,000 | ||
Liabilities | 1,620,000,000 | 1,763,000,000 | ||
Additional Paid in Capital, Common Stock | 79,000,000 | 79,000,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,000,000) | (11,000,000) | ||
Retained Earnings (Accumulated Deficit) | 3,421,000,000 | 3,166,000,000 | ||
Stockholders' Equity Attributable to Parent | 3,496,000,000 | 3,234,000,000 | ||
Liabilities and Equity | 5,116,000,000 | 4,997,000,000 | ||
Non-Guarantor Subsidiaries [Member]
|
||||
Guarantor [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 704,000,000 | 37,000,000 | 59,000,000 | 72,000,000 |
Notes, Loans and Financing Receivable, Net | 22,258,000,000 | 9,440,000,000 | ||
Restricted Cash and Investments | 1,426,000,000 | 744,000,000 | ||
Property, Plant and Equipment, Net | 117,000,000 | 48,000,000 | ||
Property Subject to or Available for Operating Lease, Net | 2,655,000,000 | 1,703,000,000 | ||
Deferred Tax Assets, Net | 216,000,000 | 96,000,000 | ||
Goodwill | 63,000,000 | 13,000,000 | ||
Intercompany Receivable | 66,000,000 | |||
Other Assets | 219,000,000 | 98,000,000 | ||
Due from Affiliates | ||||
Assets | 27,724,000,000 | 12,179,000,000 | ||
Line of Credit Facility, Amount Outstanding | 17,548,000,000 | 9,378,000,000 | ||
Securitized Debt Obligation Liability | 1,238,000,000 | |||
Accounts Payable And Accrued Expenses | 269,000,000 | 105,000,000 | ||
Deferred Revenue | 123,000,000 | 70,000,000 | ||
Taxes Payable | 46,000,000 | (2,000,000) | ||
Intercompany Taxes Payable | ||||
Derivative Liabilities | 123,000,000 | 1,000,000 | ||
Accounts Payable, Related Parties | 372,000,000 | |||
Due to Affiliate | 2,743,000,000 | 394,000,000 | ||
Liabilities | 22,462,000,000 | 9,946,000,000 | ||
Common Stock, Value, Issued | 801,000,000 | 570,000,000 | ||
Additional Paid in Capital, Common Stock | 2,632,000,000 | 123,000,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (48,000,000) | 13,000,000 | ||
Retained Earnings (Accumulated Deficit) | 1,877,000,000 | 1,527,000,000 | ||
Stockholders' Equity Attributable to Parent | 5,262,000,000 | 2,233,000,000 | ||
Liabilities and Equity | 27,724,000,000 | 12,179,000,000 | ||
Consolidation, Eliminations [Member]
|
||||
Guarantor [Line Items] | ||||
Intercompany Receivable | ||||
Due from Affiliates | (5,104,000,000) | (2,063,000,000) | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | (8,758,000,000) | (5,467,000,000) | ||
Assets | (13,862,000,000) | (7,530,000,000) | ||
Securitized Debt Obligation Liability | ||||
Accounts Payable And Accrued Expenses | ||||
Due to Affiliate | (5,104,000,000) | (2,063,000,000) | ||
Liabilities | (5,104,000,000) | (2,063,000,000) | ||
Common Stock, Value, Issued | (801,000,000) | (570,000,000) | ||
Additional Paid in Capital, Common Stock | (2,711,000,000) | (202,000,000) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 52,000,000 | (2,000,000) | ||
Retained Earnings (Accumulated Deficit) | (5,298,000,000) | (4,693,000,000) | ||
Stockholders' Equity Attributable to Parent | (8,758,000,000) | (5,467,000,000) | ||
Liabilities and Equity | $ (13,862,000,000) | $ (7,530,000,000) |
Derivative Financial Instruments And Hedging Activities Derivatives Income (Losses) Recognized in Income (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (4) | |
Interest Rate Contract [Member]
|
||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (3) | (3) |
Foreign Exchange Contract [Member]
|
||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (12) | $ (12) |
Goodwill (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
North America [Member]
|
Dec. 31, 2012
North America [Member]
|
Dec. 31, 2011
North America [Member]
|
Jun. 30, 2013
International [Member]
|
|
Goodwill [Line Items] | ||||||
Goodwill | $ 1,158 | $ 1,108 | $ 1,108 | $ 1,108 | $ 1,108 | $ 50 |
Goodwill, Acquired During Period | $ 50 | $ 50 |
Fair Value Of Financial Instruments (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes, Loans and Financing Receivable, Net | $ 22,945,000,000 | $ 10,998,000,000 |
Restricted Cash and Investments | 1,426,000,000 | 744,000,000 |
Restricted Cash and Cash Equivalents | 1,397,000 | 744,000 |
Restricted Cash - Derivative Collateral | 14,000,000 | 4,000,000 |
Interest Rate Swap Agreements - Assets | 7,000,000 | |
Interest Rate Cap Agreements Purchased | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Purchased | 17,000,000 | |
Interest Rate Swap Agreements - Liabilities | 20,000,000 | |
Interest Rate Cap Agreements - Sold | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Sold | 3,000,000 | |
Secured Debt | 17,548,000,000 | 9,378,000,000 |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,757,000,000 | 1,289,000,000 |
Notes, Loans and Financing Receivable, Net | 22,945,000,000 | 10,998,000,000 |
Restricted Cash and Investments | 1,398,000,000 | 729,000,000 |
Restricted Cash and Cash Equivalents | 28,000,000 | 15,000,000 |
Restricted Cash - Derivative Collateral | 32,000,000 | 24,000,000 |
Interest Rate Swap Agreements - Assets | 7,000,000 | |
Interest Rate Cap Agreements Purchased | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Purchased | 17,000,000 | |
Interest Rate Swap Agreements - Liabilities | 20,000,000 | |
Interest Rate Cap Agreements - Sold | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Sold | 3,000,000 | |
Secured Debt | 17,548,000,000 | 9,378,000,000 |
Senior Notes | 5,238,000,000 | 1,500,000,000 |
Portion at Fair Value, Fair Value Disclosure [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,757,000,000 | 1,289,000,000 |
Notes, Loans and Financing Receivable, Net | 23,085,000,000 | 11,313,000,000 |
Restricted Cash and Investments | 1,398,000,000 | 729,000,000 |
Restricted Cash and Cash Equivalents | 28,000,000 | 15,000,000 |
Restricted Cash - Derivative Collateral | 32,000,000 | 24,000,000 |
Interest Rate Swap Agreements - Assets | 7,000,000 | |
Interest Rate Cap Agreements Purchased | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Purchased | 17,000,000 | |
Interest Rate Swap Agreements - Liabilities | 20,000,000 | |
Interest Rate Cap Agreements - Sold | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Sold | 3,000,000 | |
Secured Debt | 17,605,000,000 | 9,526,000,000 |
Senior Notes | 5,232,000,000 | 1,620,000,000 |
Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Cap Agreements Purchased | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Purchased | 17,000,000 | |
Interest Rate Cap Agreements - Sold | 7,000,000 | |
Investment Foreign Currency, Contract, Amount Sold | 3,000,000 | |
Fair Value, Inputs, Level 3 [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Agreements - Assets | 7,000,000 | |
Interest Rate Swap Agreements - Liabilities | $ 20,000,000 |
Finance Receivables Troubled Debt Restructurings - Outstanding Balance (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):
Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. Additional information about loans classified as TDRs is presented below (in millions):
The following table provides information on the recorded investment of consumer loans at the time they became classified as TDRs (dollars in millions):
A redefault is when an account meets the requirements for evaluation under our charge-off policy (See Note 1 - "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in our 2012 Annual Report on Form 10-K for additional information). The unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months or less of being modified as a TDR were $5 million and $10 million for the three and six months ended June 30, 2013. |
Summary Of Significant Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Basis of Presentation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries, including certain special-purpose financing entities utilized in secured financing transactions, which are considered variable interest entities ("VIEs"). All intercompany transactions and accounts have been eliminated in consolidation. The interim period consolidated financial statements, including the notes thereto, are condensed and do not include all disclosures required by generally accepted accounting principles ("GAAP") in the United States of America. These interim period financial statements should be read in conjunction with our consolidated financial statements that are included in the Annual Report on Form 10-K filed on February 15, 2013. The consolidated financial statements as of June 30, 2013, and for the three and six months ended June 30, 2013 and 2012, are unaudited and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for such interim periods. The results for interim periods are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP in the United States of America requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and costs and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include, among other things, the determination of the allowance for loan losses on finance receivables, estimated recovery value on leased vehicles, goodwill, income taxes and the expected cash flows on pre-acquisition consumer finance receivables. In addition, certain assumptions and judgments were used in the estimated fair value recorded for the international operations acquisition. See Note 2 - "Acquisition of Ally Financial Inc. International Operations" for further discussion. Generally, the financial statements of entities that operate outside of the United States are measured using the local currency as the functional currency. All assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at period end exchange rates and the results of operations and cash flows are determined using approximate weighted average exchange rates for the period. Translation adjustments are related to the foreign subsidiaries using local currency as their functional currency and are reported as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains or losses are recorded directly to the Consolidated Statements of Income and Comprehensive Income, regardless of whether such amounts are realized or unrealized. We may elect to enter into foreign currency derivatives to mitigate our exposure to changes in foreign exchange rates. See Note 8 - "Derivative Financial Instruments" for further discussion. Prior year amounts for leased vehicle income have been reclassified to conform to the current year presentation. Leased vehicle income is now presented separately on the consolidated statements of income and comprehensive income. It was previously incorrectly included in other income. Due to the financial statement impact of the international operations acquisition, the presentation convention has been changed from "thousands" to "millions" to simplify the review and analysis of our financial information. Some prior period amounts may not round under the new convention in a manner consistent with our previous presentation. In addition, we changed the presentation of debt on the consolidated balance sheets to better classify the debt facilities acquired with the international operations. Debt was previously presented in the following captions: credit facilities, securitization notes payable and senior notes, which were the only types of debt we held. The characteristics of the debt acquired with the international operations are more varied; therefore we simplified the presentation of our debt as secured and unsecured. Finance Receivables Our finance receivables are reported in two portfolios: pre-acquisition and post-acquisition. The pre-acquisition finance receivables are composed of (i) finance receivables originated in North America prior to the October 1, 2010 merger with General Motors Company (“GM”), all of which were considered to have had deterioration in credit quality, and (ii) finance receivables that were considered to have had deterioration in credit quality that were acquired with the international operations. The pre-acquisition portfolio will decrease over time with the amortization of the acquired receivables. The post-acquisition finance receivables are composed of (i) finance receivables originated in North America since the merger with GM, (ii) finance receivables originated in the international operations since the applicable acquisition dates and (iii) finance receivables that were considered to have had no deterioration in credit quality that were acquired with the international operations. The post-acquisition portfolio is expected to grow over time as we originate new receivables. Pre-Acquisition Finance Receivables Following the merger with GM and the acquisition of the international operations, we further divided the pre-acquisition finance receivables into multiple pools based on common risk characteristics. Through acquisition accounting adjustments, the allowance for loan losses that existed at the merger and the acquisition dates was eliminated and the receivables were adjusted to fair value. The pre-acquisition finance receivables were acquired at a discount, which contains two components: a non-accretable difference and an accretable yield. A non-accretable difference is the excess of contractually required payments (undiscounted amount of all uncollected contractual principal and interest payments, both past due and scheduled for the future) over the amount of cash flows, considering the impact of defaults and prepayments, expected to be collected. An accretable yield is the excess of the cash flows, considering the impact of defaults and prepayments, expected to be collected over the initial investment in the loans, which at the acquisition date was fair value. The accretable yield is recorded as finance charge income over the life of the acquired receivables. Any deterioration in the performance of the pre-acquisition finance receivables from their expected performance will result in an incremental provision for loan losses. Improvements in the performance of the pre-acquisition finance receivables which results in a significant increase in actual or expected cash flows will result first in the reversal of any incremental related allowance for loan losses and then in a transfer of the excess from the non-accretable difference to accretable yield, which will be recorded as finance charge income over the remaining life of the receivables. Once a pool of loans is assembled, the integrity of the pool is maintained. A loan is removed from a pool only if it is sold (other than to a consolidated VIE), paid in full, or written off. Our policy is to remove a loan individually from a pool based on comparing any amount received upon disposition of the loan or underlying collateral with the contractual amount remaining due. The excess of the contractual amount remaining due over the amount received upon its disposition is absorbed by the non-accretable difference. This removal method assumes that the amount received approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no reduction in the amount of non-accretable difference for the pool because there is no difference between the amount received and the contractual amount of the loan. Post-Acquisition Finance Receivables and Allowance for Loan Losses Finance receivables originated in North America since our October 1, 2010 merger with GM and in the international operations since the applicable acquisition dates are carried at amortized cost, net of allowance for loan losses. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable credit losses inherent in our finance receivables. The allowance for loan losses on consumer finance receivables is established systematically based on the determination of the amount of probable credit losses inherent in the finance receivables as of the balance sheet date. We review charge-off experience factors, delinquency reports, historical collection rates, estimates of the value of the underlying collateral, economic trends, such as unemployment rates, and other information in order to make the necessary judgments as to the probable credit losses. We also use historical charge-off experience to determine the loss confirmation period, which is defined as the time between when an event, such as delinquency status, giving rise to a probable credit loss occurs with respect to a specific account and when such account is charged off. This loss confirmation period is applied to the forecasted probable credit losses to determine the amount of losses inherent in finance receivables at the balance sheet date. Assumptions regarding credit losses and loss confirmation periods are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumption or loss confirmation period increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. For the finance receivables acquired with the international operations that were considered to have no deterioration in credit quality, the existing allowance for loan losses was eliminated and the receivables were adjusted to fair value. The purchase discount will accrete to income over the life of the receivables, based on the interest method. Provisions for loan losses are charged to operations in amounts equal to net credit losses for the period. Any deterioration in the performance of the acquired receivables will result in an incremental provision for loan losses. Geographic Scope of Operations and Segment Information We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We report our business segments based on geographic regions: North America ("North America Segment") and International ("International Segment"). The North America Segment includes our operations in the United States and Canada. The International Segment includes our operations in all other countries. For additional financial information regarding our operations by business segments and operations by geographic regions, see Note 13 - "Segment Reporting". Related Party Transactions We offer loan and lease finance products through GM-franchised dealers to consumers purchasing new and certain used vehicles manufactured by GM and make commercial loans directly to GM-franchised dealers. GM makes cash payments to us for offering incentivized rates and structures on loan and lease finance products and makes payments to us to cover certain interest payments on commercial loans under subvention programs. At June 30, 2013 and December 31, 2012, we had intercompany receivables from GM in the amount of $105 million and $21 million under various programs. In addition, we had $57 million and $46 million due at June 30, 2013 and December 31, 2012, in outstanding loans to dealers that are consolidated by GM, in connection with our commercial lending program. Our international operations also provide financing to certain GM subsidiaries through factoring and other wholesale financing arrangements. As of June 30, 2013, $570 million was outstanding under such arrangements, and is included in commercial finance receivables. At June 30, 2013, we also have $379 million of related party payables due to GM, primarily for commercial finance receivables originated but not yet funded. These payables typically settle within 30 days. We have a $600 million line of credit with GM ("GM Related Party Credit Facility"). There were no advances outstanding under the GM Related Party Credit Facility at June 30, 2013 and December 31, 2012. Recent Accounting Pronouncements In February 2013, ASU ("2013-02"), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, was issued effective for annual and interim reporting periods beginning after December 15, 2012. The adoption of 2013-02 improves the reporting of reclassifications out of accumulated other comprehensive income. We adopted this ASU effective January 1, 2013, and the adoption did not have an impact on our consolidated financial position, results of operations and cash flows. |
Goodwill (Notes)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Disclosure [Text Block] | Goodwill The following table summarizes the changes in the carrying amounts of Goodwill (in millions):
|
Debt
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | Debt Debt consists of the following (in millions):
Secured Debt Secured debt consists of securitization notes payable and other asset-secured credit facilities. The revolving secured debt facilities have revolving periods ranging from one to three years. At the end of the revolving period, if the facilities are not renewed, the debt will amortize over periods ranging from one to five years. Most of the secured debt was issued by variable interest entities, as further discussed in Note 7 - "Variable Interest Entities." These notes are repayable only from proceeds related to the underlying pledged finance receivables and leases. In connection with our merger with GM, we recorded an acquisition accounting premium that is being amortized to interest expense over the expected term of the securitization notes payable outstanding at the merger date. Amortization for the six months ended June 30, 2013 and 2012 was $8 million and $19 million. At June 30, 2013, unamortized acquisition accounting premium of $2 million is included in secured debt. In connection with our acquisition of the international operations, we recorded an acquisition accounting discount that will accrete against interest expense over the expected term of the secured credit facilities outstanding at the applicable acquisition date. Accretion for the three and six months ended June 30, 2013 was $5 million. At June 30, 2013, remaining acquisition accounting discount of $48 million is included in secured debt. Interest rates on the secured debt in North America are primarily fixed, ranging from 0.9% to 5.7% at June 30, 2013 and 0.9% to 13.4% at June 30, 2012. Interest rates on the secured debt in the international operations are primarily floating, ranging from 0.9% to 6.3% at June 30, 2013. Issuance costs on the secured debt of $46 million as of June 30, 2013 and $31 million as of December 31, 2012 are included in other assets on the consolidated balance sheets, and are amortized to interest expense over the expected term of the secured debt. Unsecured Debt Unsecured debt consists primarily of bank lines, which were assumed in the acquisition of the international operations, and senior unsecured notes. The tenor of our unsecured bank lines ranges up to three years. If not renewed, any balance outstanding under these bank lines is either immediately due in full or else will amortize over a defined period. Interest rates on unsecured bank lines ranged from 0.0% to 9.0% at June 30, 2013. In May 2013, we issued $2.5 billion in aggregate principal amount of senior notes at rates ranging from 2.75% to 4.25%, and due between November 2016 and November 2023. Proceeds from the senior notes were used for the acquisition and funding support of the international operations, and are also used to support our overall growth. At June 30, 2013 we had $4.0 billion of senior notes that mature from 2016 through 2023 and have interest rates that range from 2.75% to 6.75%. All of our senior notes may be redeemed, at our option, in whole or in part, at any time before maturity at the redemption prices as set forth in the indentures that govern the senior notes plus accrued and unpaid interest and liquidated damages, if any, to the redemption date. In addition, if a change of control occurs, as that term is defined in the indentures that govern the senior notes, prior to the Company being rated “investment grade” by at least two of three listed rating agencies, the holders of senior notes will have the right, subject to certain conditions, to require the Company to repurchase their senior notes at a purchase price equal to 101% of the aggregate principal amount of senior notes repurchased plus accrued and unpaid interest and liquidated damages, if any, as of the date of repurchase. The senior notes are guaranteed solely by AmeriCredit Financial Services, Inc. ("AFSI"); none of our other subsidiaries are guarantors of the notes. See Note 15 - "Guarantor Consolidating Financial Statements" for further discussion. The indentures that govern the senior notes provide for customary events of default, including nonpayment, failure to comply with covenants or other agreements in the indentures, if any subsidiary guarantee shall cease to be in full force and effect or any guarantor shall deny or disaffirm its obligations under its subsidiary guarantee, and certain events of bankruptcy or insolvency. If any event of default occurs and is continuing with respect to a series of senior notes, the trustee or the holders of at least 25% in principal amount of the then outstanding senior notes of such series may declare all of the senior notes of such series to be due and payable immediately. The following table presents the expected scheduled principal and interest payments under our contractual debt obligations (in millions):
As of June 30, 2013, we were in compliance with all covenants in our secured and unsecured debt. |
Guarantor Consolidating Financial Statements Guarantor Income Statements (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Guarantor [Line Items] | ||||
Financial Services Revenue | $ 647 | $ 404 | $ 1,062 | $ 762 |
Operating Leases, Income Statement, Lease Revenue | 136 | 66 | 243 | 119 |
Other Income | 53 | 17 | 71 | 37 |
Equity In Income Of Affiliates | ||||
Revenues | 836 | 487 | 1,376 | 918 |
Salaries, Wages and Officers' Compensation | 116 | 71 | 190 | 144 |
Other Cost and Expense, Operating | 75 | 22 | 109 | 47 |
Operating Expenses | 191 | 93 | 299 | 191 |
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | 101 | 51 | 181 | 92 |
Provision for Loan and Lease Losses | 100 | 62 | 194 | 110 |
Interest Expense | 164 | 64 | 246 | 127 |
Acquisition Costs, Period Cost | 16 | 22 | ||
Costs and Expenses | 572 | 270 | 942 | 520 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 264 | 217 | 434 | 398 |
Income Tax Expense (Benefit) | 86 | 80 | 150 | 149 |
Net Income (Loss) Attributable to Parent | 178 | 137 | 284 | 249 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 119 | 130 | 219 | 246 |
Parent Company [Member]
|
||||
Guarantor [Line Items] | ||||
Other Income | 35 | 11 | 49 | 22 |
Equity In Income Of Affiliates | 187 | 141 | 300 | 259 |
Revenues | 222 | 152 | 349 | 281 |
Salaries, Wages and Officers' Compensation | ||||
Other Cost and Expense, Operating | (5) | 4 | (2) | 8 |
Operating Expenses | (5) | 4 | (2) | 8 |
Interest Expense | 50 | 14 | 71 | 29 |
Costs and Expenses | 45 | 18 | 69 | 37 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 177 | 134 | 280 | 244 |
Income Tax Expense (Benefit) | (1) | (3) | (4) | (5) |
Net Income (Loss) Attributable to Parent | 178 | 137 | 284 | 249 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 119 | 130 | 219 | 246 |
Guarantor Subsidiaries [Member]
|
||||
Guarantor [Line Items] | ||||
Financial Services Revenue | 30 | 34 | 69 | 69 |
Other Income | 83 | 47 | 124 | 110 |
Equity In Income Of Affiliates | 158 | 170 | 304 | 319 |
Revenues | 271 | 251 | 497 | 498 |
Salaries, Wages and Officers' Compensation | 54 | 48 | 102 | 97 |
Other Cost and Expense, Operating | (24) | (33) | (49) | (57) |
Operating Expenses | 30 | 15 | 53 | 40 |
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | ||||
Provision for Loan and Lease Losses | 60 | 68 | 127 | 128 |
Interest Expense | 54 | 42 | 89 | 100 |
Costs and Expenses | 144 | 125 | 269 | 268 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 127 | 126 | 228 | 230 |
Income Tax Expense (Benefit) | (13) | (14) | (27) | (28) |
Net Income (Loss) Attributable to Parent | 140 | 140 | 255 | 258 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 146 | 140 | 262 | 258 |
Non-Guarantor Subsidiaries [Member]
|
||||
Guarantor [Line Items] | ||||
Financial Services Revenue | 617 | 370 | 993 | 693 |
Operating Leases, Income Statement, Lease Revenue | 136 | 66 | 243 | 119 |
Other Income | 81 | 66 | 128 | 155 |
Revenues | 834 | 502 | 1,364 | 967 |
Salaries, Wages and Officers' Compensation | 62 | 23 | 88 | 47 |
Other Cost and Expense, Operating | 104 | 51 | 160 | 96 |
Operating Expenses | 166 | 74 | 248 | 143 |
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | 101 | 51 | 181 | 92 |
Provision for Loan and Lease Losses | 40 | (6) | 67 | (18) |
Interest Expense | 206 | 115 | 316 | 248 |
Acquisition Costs, Period Cost | 16 | 22 | ||
Costs and Expenses | 529 | 234 | 834 | 465 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 305 | 268 | 530 | 502 |
Income Tax Expense (Benefit) | 100 | 97 | 181 | 182 |
Net Income (Loss) Attributable to Parent | 205 | 171 | 349 | 320 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 150 | 155 | 288 | 317 |
Consolidation, Eliminations [Member]
|
||||
Guarantor [Line Items] | ||||
Other Income | (146) | (107) | (230) | (250) |
Equity In Income Of Affiliates | (345) | (311) | (604) | (578) |
Revenues | (491) | (418) | (834) | (828) |
Operating Expenses | ||||
Interest Expense | (146) | (107) | (230) | (250) |
Costs and Expenses | (146) | (107) | (230) | (250) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (345) | (311) | (604) | (578) |
Net Income (Loss) Attributable to Parent | (345) | (311) | (604) | (578) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (296) | $ (295) | $ (550) | $ (575) |
Finance Receivables
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivables [Text Block] | Finance Receivables Below is information about finance receivables that have been divided into two portfolios: pre-acquisition and post-acquisition. see Note 1 - "Summary of Significant Accounting Policies." The total finance receivables portfolio consists of the following (in millions):
Consumer Finance Receivables Pre-acquisition Consumer Finance Receivables Following is a summary of activity in our pre-acquisition consumer finance receivables portfolio (in millions):
The following table provides information related to the credit-impaired consumer finance receivables acquired with the international operations on the applicable acquisition dates (in millions):
We review our pre-acquisition portfolio for differences between contractual cash flows and the cash flows expected to be collected to determine if the difference is attributable, at least in part, to credit quality. During the six months ended June 30, 2013 and 2012, as a result of improvements in the credit performance of the pre-acquisition portfolio in North America, expected cash flows increased by $54 million and $170 million, respectively. We transferred the amount of excess cash flows from the non-accretable difference to accretable yield. This excess will be amortized through finance charge income over the remaining life of the portfolio. There was no transfer of excess cash flows from the non-accretable difference related to the international operations pre-acquisition portfolio during the three and six months ended June 30, 2013. A summary of the activity in the accretable yield on the pre-acquisition consumer finance receivables portfolios is as follows (in millions):
Post-acquisition Consumer Finance Receivables Consumer finance contracts are purchased by us from auto dealers without recourse, and accordingly, the dealer has no liability to us if the consumer defaults on the contract. Depending upon the contract structure and consumer credit attributes, we may pay dealers a participation fee or we may charge dealers a non-refundable acquisition fee when purchasing individual finance contracts. We also have subvention programs with GM and other new vehicle manufacturers, under which the manufacturers provide us cash payments in order for us to offer lower interest rates on consumer finance contracts we purchase. We record the amortization of participation fees and subvention and accretion of acquisition fees to finance charge income using the effective interest method. Following is a summary of activity in our post-acquisition consumer finance receivables portfolio (in millions):
A summary of the activity in the allowance for consumer loan losses is as follows (in millions):
Consumer Credit Quality We use proprietary scoring systems in the underwriting process that measure the credit quality of the receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO score), and contract characteristics. In addition to our proprietary scoring system, we consider other individual consumer factors, such as employment history, financial stability, and capacity to pay. At the time of loan origination, substantially all of our international consumers have prime credit ratings. In North America, however, our consumer finance receivables are predominantly sub-prime. A summary of the credit risk profile by FICO score band, determined at origination, of the consumer finance receivables in North America is as follows (dollars in millions):
_________________
We review the credit quality of our consumer finance receivables based on consumer payment activity. A consumer account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. Consumer finance receivables are collateralized by vehicle titles and we have the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. The following is a summary of the contractual amounts of consumer finance receivables, which is not materially different than recorded investment, that are (i) more than 30 days delinquent, not yet in repossession, and (ii) in repossession, but not yet charged off (dollars in millions):
The accrual of finance charge income has been suspended on $472 million and $503 million of consumer finance receivables (based on contractual amount due) as of June 30, 2013 and December 31, 2012, respectively. Impaired Finance Receivables - Troubled Debt Restructurings ("TDRs") Consumer finance receivables that become classified as TDRs are separately assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. The financial effects of the accounts that become classified as TDRs result in an impairment charge recorded as part of the provision for loan losses. Accounts that become classified as TDRs because of a payment deferral still accrue interest at the contractual rate and an additional fee is collected (where permitted) at each time of deferral and recorded as a reduction of accrued interest. No interest or fees are forgiven on a payment deferral to a customer and therefore, there are no additional financial effects of deferred loans becoming classified as TDRs. Accounts in Chapter 13 bankruptcy would have already been placed on non-accrual; therefore, there are no additional financial effects from these loans becoming classified as TDRs. As of June 30, 2013, the outstanding balance of international operations consumer finance receivables determined to be TDRs was insignificant; therefore, the following information is presented with regard to the TDRs in North America only. The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):
Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. Additional information about loans classified as TDRs is presented below (in millions):
The following table provides information on the recorded investment of consumer loans at the time they became classified as TDRs (dollars in millions):
A redefault is when an account meets the requirements for evaluation under our charge-off policy (See Note 1 - "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in our 2012 Annual Report on Form 10-K for additional information). The unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months or less of being modified as a TDR were $5 million and $10 million for the three and six months ended June 30, 2013. Commercial Finance Receivables Following is a summary of activity in our post-acquisition commercial finance receivables portfolio (in millions):
A summary of the activity in the allowance for commercial loan losses is as follows (in millions):
Commercial Credit Quality We extend wholesale credit to dealers primarily in the form of approved lines of credit to purchase new GM vehicles as well as used vehicles. Each commercial lending request is evaluated, taking into consideration the borrower's financial condition and the underlying collateral for the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical performance data to identify key factors about a dealer that we consider significant in predicting a dealer's ability to meet its financial obligations. We also consider numerous other financial and qualitative factors including capitalization and leverage, liquidity and cash flow, profitability and credit history. We regularly review our model to confirm the continued business significance and statistical predictability of the factors and update the model to incorporate new factors or other information that improves its statistical predictability. In addition, we verify the existence of the assets collateralizing the receivables by physical audits of vehicle inventories, which are performed with increased frequency for higher risk (i.e., Group III and Group IV) dealers. We perform a credit review of each dealer at least annually and adjust the dealer's risk rating, if necessary. Dealers are assigned to six groups according to their risk rating as follows: •Group I - Dealers with strong to superior financial metrics •Group II - Dealers with fair to favorable financial metrics •Group III - Dealers with marginal to weak financial metrics •Group IV - Dealers with poor financial metrics •Group V - Dealers warranting special mention due to potential weaknesses •Group VI - Dealers with loans classified as impaired The credit lines for Group VI dealers are suspended, and no further funding is extended to these dealers. Performance of our commercial finance receivables is evaluated based on our internal dealer risk rating analysis, as payment for wholesale receivables is generally not required until the dealer has sold the vehicle inventory. Wholesale and dealer loan receivables with the same dealer customer share the same risk rating. A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions):
At June 30, 2013 99.6% of our commercial finance receivables were current with respect to payment status. Impaired Commercial Finance Receivables We consider a loan impaired when based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The amount of impairment is based on expected proceeds, including the estimated amount of future cash flows and/or the fair value of underlying collateral, compared to the recorded investment of the loan. A specific allowance for losses is established in the amount of any measured impairment. Commercial finance receivables classified as TDRs are assessed for impairment and included in our allowance for credit losses based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. For receivables where foreclosure is probable, the fair value of the collateral is used to estimate the specific impairment. At June 30, 2013 and December 31, 2012, there were no outstanding commercial finance receivables classified as TDRs. |
Acquisition of Businesses Contractually Required Payments Receivable (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | $ 1,956 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | 1,569 |
Consumer Loan [Member]
|
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | 6,026 |
Cash Flows Not Expected To Be Collected, Acquisition | 98 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | 5,422 |
Commercial Loan [Member]
|
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | 4,067 |
Cash Flows Not Expected To Be Collected, Acquisition | 18 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 3,990 |
Debt Debt (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CREDIT FACILITIES SUMMARY [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term and Long Term Debt [Table Text Block] |
|
Fair Values Of Assets And Liabilities Fair Value Level 3 Rollforward (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The tables below present a reconciliation for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The tables below present a reconciliation for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions):
|
Disclosure of AOCI (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | $ 0 | $ 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (68) | (3) | ||
Successor [Member]
|
||||
Unrealized Gains (Losses) On Cash Flow Hedges | 2 | |||
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (2) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (68) | (10) | (3) | (9) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (65) | (1) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (68) | $ (10) |
Guarantor Consolidating Financial Statements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Consolidating Financial Statements [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Condensed Consolidated Financial Statements [Table Text Block] | GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING BALANCE SHEET June 30, 2013 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING BALANCE SHEET December 31, 2012 (in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2013 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2012 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2013 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2012 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2013 (unaudited, in millions)
GENERAL MOTORS FINANCIAL COMPANY, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2012 (unaudited, in millions)
|
Segments (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Segment Reporting Information [Line Items] | |||||
Loans and Leases Receivable, Net Reported Amount | $ 22,945 | $ 22,945 | $ 10,998 | ||
Revenues | 836 | 487 | 1,376 | 918 | |
Operating Expenses | 292 | 480 | |||
Interest Expense | 164 | 64 | 246 | 127 | |
Business Combination, Acquisition Related Costs | 16 | 22 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 264 | 434 | |||
Assets | 30,585 | 30,585 | 16,197 | ||
North America [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Loans and Leases Receivable, Net Reported Amount | 11,968 | 11,968 | 10,998 | ||
Revenues | 588 | 1,128 | |||
Operating Expenses | 203 | 391 | |||
Interest Expense | 91 | 173 | |||
Financing Receivable, Allowance for Credit Losses, Provisions | 81 | 175 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 213 | 389 | |||
Assets | 18,096 | 18,096 | |||
International [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Loans and Leases Receivable, Net Reported Amount | 10,977 | 10,977 | |||
Revenues | 248 | 248 | |||
Operating Expenses | 89 | 89 | |||
Interest Expense | 81 | 81 | |||
Financing Receivable, Allowance for Credit Losses, Provisions | 19 | 19 | |||
Business Combination, Acquisition Related Costs | 16 | 22 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 43 | 37 | |||
Assets | 12,489 | 12,489 | |||
Corporate [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Interest Expense | (8) | (8) | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 8 | $ 8 |
Leased Vehicles Leased Vehicles Summary (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Leased Vehicles Summary [Line Items] | ||||
Leases Acquired - Acquisition | $ 9 | $ 9 | ||
Leased Vehicles Accounted For Operating Leases Net Of Manufacturing Incentives | 1,976 | |||
Leased Vehicles Accounted For Operating Leases Net Of Manufacturing Incentives | 3,081 | 3,081 | ||
Successor [Member]
|
||||
Leased Vehicles Summary [Line Items] | ||||
Leased Vehicles Accounted For Operating Leases Net Of Manufacturing Incentives | 2,444 | 1,210 | 1,976 | 887 |
Leased Vehicles Purchased | 1,454 | 394 | 834 | 778 |
Leased Vehicles Returned (End of Term) | (106) | (12) | (54) | (26) |
Leased Vehicles Returned (Default) | (9) | (1) | (5) | (2) |
Manufacturing Incentives | (197) | (55) | (115) | (107) |
Foreign Currency Translation On Leases | (46) | (9) | (32) | (3) |
Leased Vehicles Accounted For Operating Leases Net Of Manufacturing Incentives | $ 3,081 | $ 1,527 | $ 3,081 | $ 1,527 |