Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The table below presents the gross amounts of fair value of our derivative instruments and the associated notional amounts:

	September 30, 2018						December 31, 2017
	Notional		Fair Value of Assets(a)		Fair Value of Liabilities(a)		Notional		Fair Value of Assets(a)		Fair Value of Liabilities(a)
Derivatives designated as hedges
Fair value hedges
Interest rate contracts	$	10,510	$	5	$	510	$	11,110	$	2	$	290
Cash flow hedges
Interest rate contracts	905		10		—		2,177		15		—
Foreign currency swaps	2,108		71		27		1,574		103		—
Derivatives not designated as hedges
Interest rate contracts	93,162		551		670		81,938		329		207
Foreign currency swaps	1,858		58		48		1,201		104		—
Total(b)	$	108,543	$	695	$	1,255	$	98,000	$	553	$	497

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(a) The gross amounts of the fair value of our assets and liabilities are included in other assets and other liabilities, respectively. Amounts accrued for interest payments in a net receivable position are included in other assets. Amounts accrued for interest payments in a net payable position are included in other liabilities. All our derivatives are categorized within Level 2 of the fair value hierarchy. The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

(b) We primarily enter into derivatives contracts through AmeriCredit Financial Services, Inc. (AFSI); however our SPEs may also be parties to derivative transactions. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At September 30, 2018 and December 31, 2017, the fair value of assets and liabilities available for offset was $459 million and $284 million. At September 30, 2018 and December 31, 2017, we held $55 million and $25 million and posted $718 million and $299 million of collateral available for netting.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

As of September 30, 2018, the following amounts were recorded in the condensed consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships:

	September 30, 2018
	Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)
Unsecured debt	$	15,363	$	735

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(a) Includes $178 million of adjustments remaining on hedged items for which hedge accounting has been discontinued.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Income

The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2018:

	Income (Losses) Recognized In Income
	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	Interest Expense(a)			Other Operating Expenses(b)			Interest Expense(a)			Other Operating Expenses(b)
Fair value hedges
Hedged items	$	68		$	—		$	345		$	—
Interest rate contracts	(73		)	—			(359		)	—
Cash flow hedges
Interest rate contracts	4			—			11			—
Foreign currency contracts	(14		)	(23		)	(36		)	(91		)
Derivatives not designated as hedges
Interest rate contracts	(7		)	—			(2		)	—
Foreign currency contracts	(15		)	(5		)	(35		)	(92		)
Total	$	(37	)	$	(28	)	$	(76	)	$	(183	)

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(a) Total interest expense was $838 million and $2.4 billion for the three and nine months ended September 30, 2018.

(b) Activity is offset by translation activity also recorded in other operating expenses related to foreign currency-denominated loans. Total other operating expense was $130 million and $433 million for the three and nine months ended September 30, 2018.

The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2017:

	Income (Losses) Recognized In Income
	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Fair value hedges
Interest rate contracts(a)(b)	$	9	$	38
Cash flow hedges
Interest rate contracts(a)	2		1
Foreign currency contracts(c)	44		99
Derivatives not designated as hedges
Interest rate contracts(a)	16		7
Foreign currency contracts(c)(d)	37		72
Total	$	108	$	217

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(a) Recognized in earnings as interest expense.

(b) Includes hedge ineffectiveness which reflects the net change in the fair value of interest rate contracts offset by the change in fair value of hedged debt attributable to the hedged risk.

(c) Recognized in earnings as other operating expenses and interest expense.

(d) Activity is partially offset by translation activity (included in other operating expenses) related to foreign currency-denominated loans.

	Gains (Losses) Recognized In Accumulated Other Comprehensive Loss
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Cash flow hedges
Interest rate contracts	$	—		$	—	$	5		$	1
Foreign currency contracts	(10		)	24		(50		)	45
Total	$	(10	)	$	24	$	(45	)	$	46

	(Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income(a)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Cash flow hedges
Interest rate contracts	$	(2	)	$	(1	)	$	(5	)	$	—
Foreign currency contracts	13			(26		)	69			(60		)
Total	$	11		$	(27	)	$	64		$	(60	)

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(a) All amounts reclassified from accumulated other comprehensive loss were recorded to interest expense.