Discontinued Operations

On March 5, 2017, General Motors Holdings LLC, a wholly-owned subsidiary of GM and our parent, entered into a Master Agreement (the Agreement) with Peugeot S.A. Pursuant to the Agreement, Peugeot S.A. will acquire, together with a financial partner, certain of our European financial subsidiaries and branches (collectively, our European Operations), as well as GM’s Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business and, together with our European Operations, GM's European Business). The transfer of the Opel/Vauxhall Business is expected to close in the second half of 2017, subject to the receipt of necessary regulatory approvals and satisfaction of other closing conditions, and the transfer of our European Operations is expected to close as soon as practicable after the receipt of the necessary antitrust, financial and other regulatory approvals and satisfaction of other closing conditions, which may be after the transfer of the Opel/Vauxhall Business, but not before. The transfer of our European Operations will not occur unless the transfer of the Opel/Vauxhall Business occurs.

The net consideration to be paid for our European Operations will be 0.8 times their book value at closing. Based on exchange rates at June 30, 2017, we estimate the net consideration will be approximately $1 billion, and we expect to recognize a disposal loss of up to $700 million, subject to foreign currency fluctuations. The purchase price is subject to certain adjustments as provided in the Agreement. During the three months ended June 30, 2017, we recognized a portion of the disposal loss of $336 million, in accordance with ASC 360 - "Property, Plant and Equipment." We expect to recognize the remainder of the disposal loss at the closing of the transaction.

The following table summarizes the assets and liabilities held for sale:



	June 30, 2017		December 31, 2016
ASSETS
Cash and cash equivalents	$	288	$	386
Finance receivables, net	10,696		9,715
Related party receivables	190		163
Other assets	515		687
Total assets held for sale	$	11,689	$	10,951
LIABILITIES
Secured debt	$	4,733	$	4,183
Unsecured debt	5,278		5,130
Related party payables	138		80
Other liabilities	323		300
Total liabilities held for sale	$	10,472	$	9,693

The following table summarizes the results of operations for the discontinued operations:



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Total revenue	$	143		$	154	$	274		$	298
Interest expense	23			41		46			82
Other expenses	79			60		156			131
Total costs and expenses	102			101		202			213
Income from discontinued operations before income taxes	41			53		72			85
Loss on sale of discontinued operations before income taxes	336			—		336			—
(Loss) income from discontinued operations before income taxes	(295		)	53		(264		)	85
Income tax (benefit) provision	(87		)	7		(79		)	13
(Loss) income from discontinued operations, net of tax	$	(208	)	$	46	$	(185	)	$	72