Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-10667 | |
Entity Registrant Name | General Motors Financial Company, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-2291093 | |
Entity Address, Address Line One | 801 Cherry Street | |
Entity Address, Address Line Two | Suite 3500 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76102 | |
City Area Code | 817 | |
Local Phone Number | 302-7000 | |
Title of 12(b) Security | 5.250% Senior Notes due 2026 | |
Trading Symbol | GM/26 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,050,000 | |
Entity Central Index Key | 0000804269 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 4,483 | $ 3,948 |
Finance receivables, net of allowance for loan losses $1,928 and $1,886 (Note 3; Note 7 VIEs) | 64,970 | 62,979 |
Leased vehicles, net (Note 4; Note 7 VIEs) | 36,581 | 37,929 |
Goodwill | 1,176 | 1,169 |
Equity in net assets of non-consolidated affiliates (Note 5) | 1,779 | 1,717 |
Related party receivables (Note 2) | 397 | 301 |
Other assets (Note 7 VIEs) | 6,799 | 5,743 |
Total assets | 116,186 | 113,786 |
Liabilities | ||
Secured debt (Note 6; Note 7 VIEs) | 37,362 | 39,338 |
Unsecured debt (Note 6) | 55,552 | 53,223 |
Deferred income | 2,451 | 2,551 |
Related party payables (Note 2) | 243 | 313 |
Other liabilities | 5,575 | 4,567 |
Total liabilities | 101,182 | 99,992 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity (Note 10) | ||
Common stock, $0.0001 par value per share | 0 | 0 |
Preferred stock, $0.01 par value per share | 0 | 0 |
Additional paid-in capital | 8,701 | 8,692 |
Accumulated other comprehensive income (loss) | (1,034) | (1,273) |
Retained earnings | 7,337 | 6,375 |
Total shareholders' equity | 15,004 | 13,794 |
Total liabilities and shareholders' equity | $ 116,186 | $ 113,786 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 1,928 | $ 1,886 |
Common stock par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Finance charge income | $ 1,010 | $ 1,016 |
Leased vehicle income | 2,066 | 2,321 |
Other income | 80 | 70 |
Total revenue | 3,156 | 3,407 |
Costs and expenses | ||
Operating expenses | 372 | 411 |
Leased vehicle expenses | 855 | 1,244 |
Provision for loan losses (Note 3) | 122 | (26) |
Interest expense | 577 | 650 |
Total costs and expenses | 1,926 | 2,279 |
Equity income (Note 5) | 54 | 54 |
Income before income taxes | 1,284 | 1,182 |
Income tax provision (Note 11) | 322 | 304 |
Net income | 962 | 878 |
Less: cumulative dividends on preferred stock | 30 | 30 |
Net income attributable to common shareholder | $ 932 | $ 848 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 962 | $ 878 |
Other comprehensive income (loss), net of tax (Note 10) | ||
Unrealized gain (loss) on hedges, net of income tax benefit (expense) of $(31), $(17) | 95 | 49 |
Foreign currency translation adjustment | 144 | (72) |
Other comprehensive income (loss), net of tax | 238 | (23) |
Comprehensive income (loss) | $ 1,200 | $ 855 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Change in value of cash flow hedges, tax (expense) benefit | $ (31) | $ (17) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2020 | $ 13,598 | $ 0 | $ 0 | $ 8,642 | $ (1,309) | $ 6,265 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 878 | 878 | ||||
Other comprehensive income (loss) | (23) | (23) | ||||
Stock-based compensation | 8 | 8 | ||||
Dividends paid (Note 10) | (661) | (661) | ||||
Balance at end of period at Mar. 31, 2021 | 13,800 | 0 | 0 | 8,650 | (1,332) | 6,482 |
Balance at beginning of period at Dec. 31, 2021 | 13,794 | 0 | 0 | 8,692 | (1,273) | 6,375 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 962 | 962 | ||||
Other comprehensive income (loss) | 238 | 238 | ||||
Stock-based compensation | 10 | 10 | ||||
Balance at end of period at Mar. 31, 2022 | $ 15,004 | $ 0 | $ 0 | $ 8,701 | $ (1,034) | $ 7,337 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 962 | $ 878 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,275 | 1,715 |
Accretion and amortization of loan and leasing fees | (292) | (410) |
Undistributed earnings of non-consolidated affiliates, net | (54) | (54) |
Provision for loan losses | 122 | (26) |
Deferred income taxes | 306 | 216 |
Stock-based compensation expense | 10 | 8 |
Gain on termination of leased vehicles | (369) | (416) |
Other operating activities | (101) | 23 |
Changes in assets and liabilities: | ||
Other assets | (381) | 48 |
Other liabilities | (144) | (361) |
Related party payables | (85) | (96) |
Net cash provided by operating activities | 1,248 | 1,525 |
Cash flows from investing activities | ||
Purchases of retail finance receivables, net | (8,144) | (8,245) |
Principal collections and recoveries on retail finance receivables | 6,904 | 5,749 |
Net collections (funding) of commercial finance receivables | (541) | 2,079 |
Purchases of leased vehicles, net | (2,990) | (6,066) |
Proceeds from termination of leased vehicles | 3,732 | 4,919 |
Other investing activities | (10) | (17) |
Net cash used in investing activities | (1,048) | (1,581) |
Cash flows from financing activities | ||
Net change in debt (original maturities less than three months) | 712 | 1,547 |
Borrowings and issuances of secured debt | 6,332 | 8,720 |
Payments on secured debt | (8,367) | (8,663) |
Borrowings and issuances of unsecured debt | 4,352 | 4,385 |
Payments on unsecured debt | (2,416) | (3,879) |
Debt issuance costs | (37) | (46) |
Dividends paid | (59) | (661) |
Net cash provided by financing activities | 517 | 1,403 |
Net increase in cash, cash equivalents and restricted cash | 717 | 1,347 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 53 | (50) |
Cash, cash equivalents and restricted cash at beginning of period | 7,183 | 8,126 |
Cash, cash equivalents and restricted cash at end of period | 7,953 | 9,423 |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | 4,483 | |
Restricted cash included in other assets | 3,470 | |
Total | $ 7,953 | $ 9,423 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain special purpose entities (SPEs) utilized in secured financing transactions, which are considered variable interest entities (VIEs). All intercompany transactions and accounts have been eliminated in consolidation. The consolidated financial statements, including the notes thereto, are condensed and do not include all disclosures required by generally accepted accounting principles (GAAP) in the U.S. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission on February 2, 2022 (2021 Form 10-K). Except as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding. The condensed consolidated financial statements at March 31, 2022, and for the three months ended March 31, 2022 and 2021, are unaudited and, in management’s opinion, include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations. The results for interim periods are not necessarily indicative of results for a full year. The condensed consolidated balance sheet at December 31, 2021 was derived from audited annual financial statements. Segment Information We are the wholly-owned captive finance subsidiary of General Motors Company (GM). We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in two operating segments: North America (the North America Segment) and International (the International Segment). Our North America Segment includes operations in the U.S. and Canada. Our International Segment includes operations in Brazil, Chile, Colombia, Mexico and Peru, as well as our equity investments in joint ventures in China. Accounting Standards Not Yet Adopted In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." We adopted ASU 2016-13 on January 1, 2020. ASU 2022-02 enhances disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, ASU 2022-02 amends the guidance on vintage disclosures to require entities to disclose current-period gross write-offs by year of origination. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We offer loan and lease finance products through GM-franchised dealers to customers purchasing new vehicles manufactured by GM and certain used vehicles and make commercial loans directly to GM-franchised dealers and their affiliates. We also offer commercial loans to dealers that are consolidated by GM and those balances are included in finance receivables, net. Under subvention programs, GM makes cash payments to us for offering incentivized rates and structures on retail loan and lease finance products. In addition, GM makes cash payments to us to cover interest payments on certain commercial loans we make to GM-franchised dealers. We are included in GM's consolidated U.S. federal income tax returns and certain U.S. state returns, and we are obligated to pay GM for our share of tax liabilities. During the three months ended March 31, 2022, we made payments of $89 million to GM for state and federal income taxes related to the years 2021 and 2020. Amounts owed to GM for income taxes are accrued and recorded as a related party payable. In addition, amounts due to GM for commercial finance receivables originated but not yet funded are recorded as a related party payable. The following tables present related party transactions: Balance Sheet Data March 31, 2022 December 31, 2021 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 122 $ 163 Subvention receivable (b) $ 357 $ 282 Commercial loan funding payable (c) $ 41 $ 26 Taxes payable (c) $ 194 $ 282 Three Months Ended March 31, Income Statement Data 2022 2021 Interest subvention earned on retail finance receivables (d) $ 210 $ 179 Interest subvention earned on commercial finance receivables (d) $ 10 $ 9 Leased vehicle subvention earned (e) $ 547 $ 721 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $439 million and $1.0 billion for the three months ended March 31, 2022 and 2021. (c) Included in related party payables. (d) Included in finance charge income. (e) Included as a reduction to leased vehicle expenses. Under the support agreement with GM (the Support Agreement), if our earning assets leverage ratio at the end of any calendar quarter exceeds the applicable threshold set in the Support Agreement, we may require GM to provide funding sufficient to bring our earning assets leverage ratio to within the applicable threshold. In determining our earning assets leverage ratio (net earning assets divided by adjusted equity) under the Support Agreement, net earning assets means our finance receivables, net, plus leased vehicles, net, and adjusted equity means our equity, net of goodwill and inclusive of outstanding junior subordinated debt, as each may be adjusted for derivative accounting from time to time. Additionally, the Support Agreement provides that GM will own all of our outstanding voting shares as long as we have any unsecured debt securities outstanding. GM also agrees to certain provisions in the Support Agreement intended to ensure we maintain adequate access to liquidity. Pursuant to these provisions, GM provides us with a $1.0 billion junior subordinated unsecured intercompany revolving credit facility, and GM will use commercially reasonable efforts to ensure we will continue to be designated as a subsidiary borrower under GM's corporate revolving credit facilities. We have access, subject to available capacity, to $15.5 billion of GM's unsecured revolving credit facilities consisting of a three-year, $4.3 billion facility and a five-year, $11.2 billion facility. We also have exclusive access to GM's $2.0 billion 364-day revolving credit facility (GM Revolving 364-day Credit Facility). At March 31, 2022 and December 31, 2021, we had no borrowings outstanding under any of the GM revolving credit facilities. In April 2022, GM renewed the GM Revolving 364-Day Credit Facility, which now matures on April 4, 2023. Cruise is the GM global segment responsible for the development and commercialization of autonomous vehicle technology. We have a multi-year credit agreement with Cruise whereby we may provide advances to Cruise up to an aggregate of $5.0 billion, over time, through 2024, to fund the purchase of autonomous vehicles from GM. At March 31, 2022 and December 31, 2021, Cruise had no borrowings outstanding under the credit agreement. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Finance Receivables | Finance Receivables March 31, 2022 December 31, 2021 Retail finance receivables Retail finance receivables, net of fees (a) $ 59,503 $ 58,093 Less: allowance for loan losses (1,884) (1,839) Total retail finance receivables, net 57,618 56,254 Commercial finance receivables Commercial finance receivables, net of fees (b) 7,395 6,772 Less: allowance for loan losses (44) (47) Total commercial finance receivables, net 7,352 6,725 Total finance receivables, net $ 64,970 $ 62,979 Fair value utilizing Level 2 inputs $ 7,352 $ 6,725 Fair value utilizing Level 3 inputs $ 57,774 $ 57,613 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs. (b) Net of dealer cash management balances of $1.2 billion and $1.0 billion at March 31, 2022 and December 31, 2021. Rollforward of Allowance for Retail Loan Losses A summary of the activity in the allowance for retail loan losses is as follows: Three Months Ended March 31, 2022 2021 Allowance for retail loan losses beginning balance $ 1,839 $ 1,915 Provision for loan losses 126 (13) Charge-offs (275) (253) Recoveries 177 149 Foreign currency translation 18 (14) Allowance for retail loan losses ending balance $ 1,884 $ 1,784 Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at March 31, 2022 and December 31, 2021: Year of Origination March 31, 2022 2022 2021 2020 2019 2018 Prior Total Percent Prime - FICO Score 680 and greater $ 6,019 $ 17,792 $ 11,121 $ 3,540 $ 1,912 $ 655 $ 41,039 69.0 % Near-prime - FICO Score 620 to 679 856 3,569 2,153 1,089 553 274 8,494 14.3 Sub-prime - FICO Score less than 620 929 3,720 2,258 1,563 831 669 9,970 16.8 Retail finance receivables, net of fees $ 7,804 $ 25,081 $ 15,531 $ 6,192 $ 3,296 $ 1,599 $ 59,503 100.0 % Year of Origination December 31, 2021 2021 2020 2019 2018 2017 Prior Total Percent Prime - FICO Score 680 and greater $ 19,729 $ 12,408 $ 4,078 $ 2,298 $ 763 $ 143 $ 39,419 67.9 % Near-prime - FICO Score 620 to 679 3,856 2,388 1,229 648 274 84 8,479 14.6 Sub-prime - FICO Score less than 620 4,053 2,528 1,777 972 570 295 10,195 17.5 Retail finance receivables, net of fees $ 27,638 $ 17,324 $ 7,084 $ 3,918 $ 1,607 $ 522 $ 58,093 100.0 % We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at March 31, 2022 and December 31, 2021, as well as summary totals for March 31, 2021: Year of Origination March 31, 2022 March 31, 2021 2022 2021 2020 2019 2018 Prior Total Percent Total Percent 0 - 30 days $ 7,788 $ 24,672 $ 15,197 $ 5,934 $ 3,139 $ 1,448 $ 58,179 97.8 % $ 52,367 98.1 % 31 - 60 days 15 298 246 192 119 113 983 1.7 741 1.4 Greater than 60 days — 95 79 59 34 34 302 0.5 257 0.5 Finance receivables more than 30 days delinquent 15 393 325 251 153 148 1,285 2.2 998 1.9 In repossession — 16 9 7 3 3 39 0.1 32 — Finance receivables more than 30 days delinquent or in repossession 15 409 334 258 157 150 1,324 2.2 1,030 1.9 Retail finance receivables, net of fees $ 7,804 $ 25,081 $ 15,531 $ 6,192 $ 3,296 $ 1,599 $ 59,503 100.0 % $ 53,397 100.0 % Year of Origination December 31, 2021 2021 2020 2019 2018 2017 Prior Total Percent 0 - 30 days $ 27,270 $ 16,945 $ 6,772 $ 3,721 $ 1,478 $ 440 $ 56,626 97.5 % 31 - 60 days 273 276 230 147 97 60 1,083 1.8 Greater than 60 days 83 93 76 46 30 21 349 0.6 Finance receivables more than 30 days delinquent 356 369 306 193 127 81 1,432 2.4 In repossession 12 10 6 4 2 1 35 0.1 Finance receivables more than 30 days delinquent or in repossession 368 379 312 197 129 82 1,467 2.5 Retail finance receivables, net of fees $ 27,638 $ 17,324 $ 7,084 $ 3,918 $ 1,607 $ 522 $ 58,093 100.0 % The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $527 million and $602 million at March 31, 2022 and December 31, 2021. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Impaired Retail Finance Receivables - TDRs The outstanding amortized cost of retail finance receivables that are considered TDRs was $1.9 billion, including $183 million in nonaccrual loans at March 31, 2022, and $1.9 billion, including $219 million in nonaccrual loans at December 31, 2021. For definition and additional information on TDRs, see Note 1 in our 2021 Form 10-K. Additional TDR activity is presented below: Three Months Ended March 31, 2022 2021 Number of loans classified as TDRs during the period 11,848 11,376 Outstanding amortized cost of loans classified as TDRs during the period $ 238 $ 234 The unpaid principal balances, net of recoveries, of loans charged off during the reporting period and were within 12 months of being modified as a TDR were insignificant for the three months ended March 31, 2022 and 2021. Commercial Credit Quality Our commercial finance receivables consist of dealer financings, primarily for dealer inventory purchases. Proprietary models are used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. Our commercial risk model and risk rating categories are as follows: Dealer Risk Rating Description I Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments. II Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring. III Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected. IV Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable. Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at March 31, 2022 and December 31, 2021: Year of Origination March 31, 2022 Dealer Risk Rating Revolving 2022 2021 2020 2019 2018 Prior Total Percent I $ 5,898 $ 129 $ 417 $ 416 $ 113 $ 51 $ 56 $ 7,081 95.7 % II 209 — 7 16 13 — 10 254 3.4 III 58 — — — 1 — 1 60 0.8 IV — — — — — — — — — Balance at end of period $ 6,165 $ 129 $ 424 $ 432 $ 126 $ 52 $ 67 $ 7,395 100.0 % Year of Origination December 31, 2021 Dealer Risk Rating Revolving 2021 2020 2019 2018 2017 Prior Total Percent I $ 5,296 $ 433 $ 426 $ 131 $ 57 $ 50 $ 10 $ 6,403 94.6 % II 213 5 16 12 1 10 — 257 3.8 III 81 8 15 2 — 2 4 112 1.6 IV — — — — — — — — — Balance at end of period $ 5,590 $ 446 $ 457 $ 145 $ 58 $ 62 $ 14 $ 6,772 100.0 % Floorplan advances comprise 94% of the total revolving balances at March 31, 2022 and December 31, 2021. Dealer term loans are presented by year of origination. |
Leased Vehicles
Leased Vehicles | 3 Months Ended |
Mar. 31, 2022 | |
Lessor Disclosure [Abstract] | |
Leased Vehicles | Leased Vehicles March 31, 2022 December 31, 2021 Leased vehicles $ 52,401 $ 54,821 Manufacturer subvention (6,732) (7,398) Net capitalized cost 45,669 47,423 Less: accumulated depreciation (9,088) (9,494) Leased vehicles, net $ 36,581 $ 37,929 Depreciation expense related to leased vehicles, net was $1.2 billion and $1.7 billion for the three months ended March 31, 2022 and 2021. The following table summarizes minimum rental payments due to us as lessor under operating leases at March 31, 2022: Years Ending December 31, 2022 2023 2024 2025 2026 Thereafter Total Lease payments under operating leases $ 4,167 $ 3,790 $ 1,546 $ 213 $ 4 $ — $ 9,721 |
Equity in Net Assets of Non-con
Equity in Net Assets of Non-consolidated Affiliates | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Equity in Net Assets of Non-consolidated Affiliates | Equity in Net Assets of Non-consolidated Affiliates We use the equity method to account for our equity interest in joint ventures . The income of these joint ventures is not consolidated into our financial statements; rather, our proportionate share of the earnings is reflected as equity income. There have been no ownership changes in our joint ventures since December 31, 2021. The following table presents certain aggregated operating data of our joint ventures: Three Months Ended March 31, Summarized Operating Data 2022 2021 Finance charge income $ 451 $ 430 Income before income taxes $ 206 $ 203 Net income $ 154 $ 153 At March 31, 2022 and December 31, 2021, we had undistributed earnings of $794 million and $740 million related to our non-consolidated affiliates. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 1,552 $ 1,551 $ 3,497 $ 3,495 Securitization notes payable 35,809 35,450 35,841 35,906 Total secured debt 37,362 37,002 39,338 39,401 Unsecured debt Senior notes 47,371 46,485 45,386 46,539 Credit facilities 1,213 1,190 1,229 1,211 Other unsecured debt 6,968 6,972 6,608 6,607 Total unsecured debt 55,552 54,648 53,223 54,357 Total secured and unsecured debt $ 92,913 $ 91,649 $ 92,561 $ 93,758 Fair value utilizing Level 2 inputs $ 89,810 $ 92,250 Fair value utilizing Level 3 inputs $ 1,839 $ 1,508 Secured Debt Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged assets. Refer to Note 7 for further information. During the three months ended March 31, 2022, we renewed credit facilities with a total borrowing capacity of $1.9 billion, and we issued $5.2 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 1.74% and maturity dates ranging from 2023 to 2029. Unsecured Debt During the three months ended March 31, 2022, we issued $3.7 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 2.40% and maturity dates ranging from 2024 to 2032. General Motors Financial Company, Inc. is the sole guarantor of its subsidiaries' unsecured debt obligations for which a guarantee is provided. Compliance with Debt Covenants Several of our revolving credit facilities require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Certain of our secured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. Our unsecured debt obligations contain covenants including limitations on our ability to incur certain liens. At March 31, 2022, we were in compliance with these debt covenants. |
Variable Interest Entities and
Variable Interest Entities and Other Transfers of Finance Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Other Transfers of Finance Receivables | Variable Interest Entities and Other Transfers of Finance Receivables Securitizations and Credit Facilities The following table summarizes the assets and liabilities related to our consolidated VIEs: March 31, 2022 December 31, 2021 Restricted cash (a) $ 2,952 $ 2,740 Finance receivables, net of fees $ 30,387 $ 31,940 Lease related assets $ 16,148 $ 16,143 Secured debt $ 37,288 $ 39,277 _______________ (a) Included in other assets. We use SPEs that are considered VIEs to issue variable funding notes to third-party, bank-sponsored warehouse facilities or asset-backed securities to investors in securitization transactions. The debt issued by these VIEs is backed by finance receivables and leasing-related assets transferred to the VIEs. We determined that we are the primary beneficiary of the VIEs because our servicing responsibilities give us the power to direct the activities that most significantly impact the performance of the VIEs and our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant. The respective assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities that we provide as the servicer. We are not required, and do not currently intend, to provide any additional financial support to these VIEs. While these subsidiaries are included in our condensed consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables, lease-related assets and cash held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. Other Transfers of Finance Receivables Under certain debt agreements, we transfer finance receivables to entities that we do not control through majority voting interest or through contractual arrangements. These transfers do not meet the criteria to be considered sales under GAAP; therefore, the finance receivables and the related debt are included in our condensed consolidated financial statements, similar to the treatment of finance receivables and related debt of our consolidated VIEs. Any collections received on the transferred receivables are available only for the repayment of the related debt. At March 31, 2022 and December 31, 2021, $167 million and $500 million in finance receivables had been transferred in secured funding arrangements to third-party banks, relating to $139 million and $125 million in secured debt outstanding. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We are exposed to certain risks arising from both our business operations and economic conditions. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our assets and liabilities and by using derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our borrowings. Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates. We primarily finance our earning assets with debt in the same currency to minimize the impact to earnings from our exposure to fluctuations in exchange rates. When we use a different currency, these fluctuations may impact the value of our cash receipts and payments in terms of our functional currency. We enter into derivative financial instruments to protect the value or fix the amount of certain assets and liabilities in terms of the relevant functional currency. The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts: March 31, 2022 December 31, 2021 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Derivatives designated as hedges Fair value hedges Interest rate swaps $ 19,310 $ 11 $ 345 $ 15,058 $ 74 $ 88 Foreign currency swaps — — — 682 — 59 Cash flow hedges Interest rate swaps 709 17 4 611 12 4 Foreign currency swaps 7,945 79 221 7,419 85 201 Derivatives not designated as hedges Interest rate contracts 108,709 1,245 797 110,053 846 339 Foreign currency contracts — — — 148 — — Total $ 136,674 $ 1,353 $ 1,368 $ 133,971 $ 1,017 $ 691 The gross amounts of the fair value of our derivative instruments that are classified as assets or liabilities are included in other assets or 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. We primarily enter into derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At March 31, 2022 and December 31, 2021, the fair value of derivative instruments that are classified as assets or liabilities available for offset was $778 million and $505 million. At March 31, 2022 and December 31, 2021, we held $323 million and $376 million of collateral from counterparties that was available for netting against our asset positions. At March 31, 2022 and December 31, 2021, we posted $432 million and $45 million of collateral to counterparties that was available for netting against our liability positions. 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: Carrying Amount of Cumulative Amount of Fair Value (a) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Unsecured debt $ 26,157 $ 24,964 $ 153 $ (226) _________________ (a) Includes $196 million and $246 million of unamortized gains remaining on hedged items for which hedge accounting has been discontinued at March 31, 2022 and December 31, 2021. The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income: Three Months Ended March 31, 2022 2021 Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Fair value hedges Hedged items - interest rate swaps $ 376 $ — $ 352 $ — Interest rate swaps (340) — (335) — Hedged items - foreign currency swaps (c) — 23 — 77 Foreign currency swaps (2) (24) (5) (76) Cash flow hedges Interest rate swaps 2 — (5) — Hedged items - foreign currency swaps (c) — 160 — 190 Foreign currency swaps (38) (160) (30) (190) Derivatives not designated as hedges Interest rate contracts — — 20 — Total income (losses) recognized $ (2) $ — $ (3) $ 1 _________________ (a) Total interest expense was $577 million and $650 million for the three months ended March 31, 2022 and 2021. (b) Total operating expenses were $372 million and $411 million for the three months ended March 31, 2022 and 2021. (c) Transaction activity recorded in operating expenses related to foreign currency-denominated loans. The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss): Gains (Losses) Recognized In Three Months Ended March 31, 2022 2021 Fair value hedges Foreign currency swaps $ (2) $ (3) Cash flow hedges Interest rate swaps 4 5 Foreign currency swaps (57) (125) Total $ (55) $ (123) (Gains) Losses Reclassified From Accumulated Other Three Months Ended March 31, 2022 2021 Fair value hedges Foreign currency swaps $ 2 $ 3 Cash flow hedges Interest rate swaps (1) 3 Foreign currency swaps 149 166 Total $ 150 $ 172 All amounts reclassified from accumulated other comprehensive income (loss) were recorded to interest expense. During the next 12 months, we estimate an insignificant amount in losses will be reclassified into pre-tax earnings from derivatives designated for hedge accounting. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are subject to various pending and potential legal and regulatory proceedings in the ordinary course of business, including litigation, arbitration, claims, investigations, examinations, subpoenas and enforcement proceedings. Some litigation against us could take the form of class actions. The outcome of these proceedings is inherently uncertain, and thus we cannot confidently predict how or when proceedings will be resolved. An adverse outcome in one or more of these proceedings could result in substantial damages, settlements, fines, penalties, diminished income or reputational harm. In accordance with the current accounting standards for loss contingencies, we establish reserves for legal matters when it is probable that a loss associated with the matter has been incurred and the amount of the loss can be reasonably estimated. The actual costs of resolving legal matters may be higher or lower than any amounts reserved for these matters. At March 31, 2022, we estimated our reasonably possible legal exposure for unfavorable outcomes is approximately $259 million, and we have accrued $146 million. Other Administrative Tax Matters We accrue non-income tax liabilities for contingencies when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time. In evaluating indirect tax matters, we take into consideration factors such as our historical experience with matters of similar nature, specific facts and circumstances, and the likelihood of prevailing. We reevaluate and update our accruals as matters progress over time, where there is a reasonable possibility that losses exceeding amounts already recognized may be incurred. Our estimate of the additional range of loss is up to $68 million at March 31, 2022. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders' Equity March 31, 2022 December 31, 2021 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 During the three months ended March 31, 2021, our Board of Directors declared and paid dividends of $600 million on our common stock to General Motors Holdings LLC. March 31, 2022 December 31, 2021 Preferred Stock Number of shares authorized 250,000,000 250,000,000 Number of shares issued and outstanding Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, 1,000,000 1,000,000 Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, 500,000 500,000 Fixed-Rate Reset Cumulative Perpetual Preferred Stock, 500,000 500,000 During the three months ended March 31, 2022, we paid dividends of $29 million to holders of record of our Series A Preferred Stock, $16 million to holders of record of our Series B Preferred Stock, and $14 million to holders of record of our Series C Preferred Stock. During the three months ended March 31, 2021, we paid dividends of $29 million to holders of record of our Series A Preferred Stock, $16 million to holders of record of our Series B Preferred Stock, and $16 million to holders of record of our Series C Preferred Stock. The following table summarizes the significant components of accumulated other comprehensive income (loss): Three Months Ended March 31, 2022 2021 Unrealized gain (loss) on hedges Beginning balance $ (77) $ (157) Change in value of hedges, net of tax 95 49 Ending balance 19 (108) Defined benefit plans Beginning balance 1 1 Unrealized gain (loss) on subsidiary pension, net of tax — — Ending balance — 1 Foreign currency translation adjustment Beginning balance (1,197) (1,153) Translation gain (loss), net of tax 144 (72) Ending balance (1,053) (1,225) Total accumulated other comprehensive income (loss) $ (1,034) $ (1,332) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are included in GM’s consolidated U.S. federal income tax return and certain states’ income tax returns. Net operating losses and certain tax credits generated by us have been utilized by GM; however, income tax expense and deferred tax balances are presented in our financial statements as if we filed our own tax returns in each jurisdiction. Refer to Note 2 for further information on related party taxes payable. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our chief operating decision maker evaluates the operating results and performance of our business based on our North America and International Segments. The management of each segment is responsible for executing our strategies. The following tables summarize key operating data for our operating segments: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 North International Total North International Total Total revenue $ 2,930 $ 226 $ 3,156 $ 3,171 $ 236 $ 3,407 Operating expenses 303 69 372 339 72 411 Leased vehicle expenses 842 13 855 1,231 13 1,244 Provision for loan losses 98 24 122 (44) 18 (26) Interest expense 507 70 577 592 58 650 Equity income — 54 54 — 54 54 Income before income taxes $ 1,179 $ 105 $ 1,284 $ 1,053 $ 129 $ 1,182 March 31, 2022 December 31, 2021 North International Total North International Total Finance receivables, net $ 60,492 $ 4,478 $ 64,970 $ 58,883 $ 4,096 $ 62,979 Leased vehicles, net $ 36,380 $ 201 $ 36,581 $ 37,741 $ 188 $ 37,929 Total assets $ 108,551 $ 7,635 $ 116,186 $ 106,572 $ 7,214 $ 113,786 |
Regulatory Capital and Other Re
Regulatory Capital and Other Regulatory Matters | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital and Other Regulatory Matters [Abstract] | |
Regulatory Capital and Other Regulatory Matters | Regulatory Capital and Other Regulatory MattersWe are required to comply with a wide variety of laws and regulations. Certain of our entities operate in international markets as either banks or regulated finance companies that are subject to regulatory restrictions. These regulatory restrictions, among other things, require that certain of these entities meet minimum capital requirements and may restrict dividend distributions and ownership of certain assets. We were in compliance with all regulatory capital requirements as most recently reported. Total assets of our regulated international banks and finance companies were approximately $5.4 billion and $5.1 billion at March 31, 2022 and December 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain special purpose entities (SPEs) utilized in secured financing transactions, which are considered variable interest entities (VIEs). All intercompany transactions and accounts have been eliminated in consolidation. The consolidated financial statements, including the notes thereto, are condensed and do not include all disclosures required by generally accepted accounting principles (GAAP) in the U.S. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission on February 2, 2022 (2021 Form 10-K). Except as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding. |
Segment Information | Segment Information We are the wholly-owned captive finance subsidiary of General Motors Company (GM). We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in two operating segments: North America (the North America Segment) and International (the International Segment). Our North America Segment includes operations in the U.S. and Canada. Our International Segment includes operations in Brazil, Chile, Colombia, Mexico and Peru, as well as our equity investments in joint ventures in China. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." We adopted ASU 2016-13 on January 1, 2020. ASU 2022-02 enhances disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, ASU 2022-02 amends the guidance on vintage disclosures to require entities to disclose current-period gross write-offs by year of origination. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present related party transactions: Balance Sheet Data March 31, 2022 December 31, 2021 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 122 $ 163 Subvention receivable (b) $ 357 $ 282 Commercial loan funding payable (c) $ 41 $ 26 Taxes payable (c) $ 194 $ 282 Three Months Ended March 31, Income Statement Data 2022 2021 Interest subvention earned on retail finance receivables (d) $ 210 $ 179 Interest subvention earned on commercial finance receivables (d) $ 10 $ 9 Leased vehicle subvention earned (e) $ 547 $ 721 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $439 million and $1.0 billion for the three months ended March 31, 2022 and 2021. (c) Included in related party payables. (d) Included in finance charge income. (e) Included as a reduction to leased vehicle expenses. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Finance Receivables, Net | March 31, 2022 December 31, 2021 Retail finance receivables Retail finance receivables, net of fees (a) $ 59,503 $ 58,093 Less: allowance for loan losses (1,884) (1,839) Total retail finance receivables, net 57,618 56,254 Commercial finance receivables Commercial finance receivables, net of fees (b) 7,395 6,772 Less: allowance for loan losses (44) (47) Total commercial finance receivables, net 7,352 6,725 Total finance receivables, net $ 64,970 $ 62,979 Fair value utilizing Level 2 inputs $ 7,352 $ 6,725 Fair value utilizing Level 3 inputs $ 57,774 $ 57,613 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs. (b) Net of dealer cash management balances of $1.2 billion and $1.0 billion at March 31, 2022 and December 31, 2021. |
Allowance for Credit Losses on Financing Receivables | A summary of the activity in the allowance for retail loan losses is as follows: Three Months Ended March 31, 2022 2021 Allowance for retail loan losses beginning balance $ 1,839 $ 1,915 Provision for loan losses 126 (13) Charge-offs (275) (253) Recoveries 177 149 Foreign currency translation 18 (14) Allowance for retail loan losses ending balance $ 1,884 $ 1,784 |
Financing Receivable Credit Quality Indicators | The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at March 31, 2022 and December 31, 2021: Year of Origination March 31, 2022 2022 2021 2020 2019 2018 Prior Total Percent Prime - FICO Score 680 and greater $ 6,019 $ 17,792 $ 11,121 $ 3,540 $ 1,912 $ 655 $ 41,039 69.0 % Near-prime - FICO Score 620 to 679 856 3,569 2,153 1,089 553 274 8,494 14.3 Sub-prime - FICO Score less than 620 929 3,720 2,258 1,563 831 669 9,970 16.8 Retail finance receivables, net of fees $ 7,804 $ 25,081 $ 15,531 $ 6,192 $ 3,296 $ 1,599 $ 59,503 100.0 % Year of Origination December 31, 2021 2021 2020 2019 2018 2017 Prior Total Percent Prime - FICO Score 680 and greater $ 19,729 $ 12,408 $ 4,078 $ 2,298 $ 763 $ 143 $ 39,419 67.9 % Near-prime - FICO Score 620 to 679 3,856 2,388 1,229 648 274 84 8,479 14.6 Sub-prime - FICO Score less than 620 4,053 2,528 1,777 972 570 295 10,195 17.5 Retail finance receivables, net of fees $ 27,638 $ 17,324 $ 7,084 $ 3,918 $ 1,607 $ 522 $ 58,093 100.0 % Our commercial risk model and risk rating categories are as follows: Dealer Risk Rating Description I Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments. II Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring. III Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected. IV Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable. Year of Origination March 31, 2022 Dealer Risk Rating Revolving 2022 2021 2020 2019 2018 Prior Total Percent I $ 5,898 $ 129 $ 417 $ 416 $ 113 $ 51 $ 56 $ 7,081 95.7 % II 209 — 7 16 13 — 10 254 3.4 III 58 — — — 1 — 1 60 0.8 IV — — — — — — — — — Balance at end of period $ 6,165 $ 129 $ 424 $ 432 $ 126 $ 52 $ 67 $ 7,395 100.0 % Year of Origination December 31, 2021 Dealer Risk Rating Revolving 2021 2020 2019 2018 2017 Prior Total Percent I $ 5,296 $ 433 $ 426 $ 131 $ 57 $ 50 $ 10 $ 6,403 94.6 % II 213 5 16 12 1 10 — 257 3.8 III 81 8 15 2 — 2 4 112 1.6 IV — — — — — — — — — Balance at end of period $ 5,590 $ 446 $ 457 $ 145 $ 58 $ 62 $ 14 $ 6,772 100.0 % Floorplan advances comprise 94% of the total revolving balances at March 31, 2022 and December 31, 2021. Dealer term loans are presented by year of origination. |
Past Due Financing Receivables | The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at March 31, 2022 and December 31, 2021, as well as summary totals for March 31, 2021: Year of Origination March 31, 2022 March 31, 2021 2022 2021 2020 2019 2018 Prior Total Percent Total Percent 0 - 30 days $ 7,788 $ 24,672 $ 15,197 $ 5,934 $ 3,139 $ 1,448 $ 58,179 97.8 % $ 52,367 98.1 % 31 - 60 days 15 298 246 192 119 113 983 1.7 741 1.4 Greater than 60 days — 95 79 59 34 34 302 0.5 257 0.5 Finance receivables more than 30 days delinquent 15 393 325 251 153 148 1,285 2.2 998 1.9 In repossession — 16 9 7 3 3 39 0.1 32 — Finance receivables more than 30 days delinquent or in repossession 15 409 334 258 157 150 1,324 2.2 1,030 1.9 Retail finance receivables, net of fees $ 7,804 $ 25,081 $ 15,531 $ 6,192 $ 3,296 $ 1,599 $ 59,503 100.0 % $ 53,397 100.0 % Year of Origination December 31, 2021 2021 2020 2019 2018 2017 Prior Total Percent 0 - 30 days $ 27,270 $ 16,945 $ 6,772 $ 3,721 $ 1,478 $ 440 $ 56,626 97.5 % 31 - 60 days 273 276 230 147 97 60 1,083 1.8 Greater than 60 days 83 93 76 46 30 21 349 0.6 Finance receivables more than 30 days delinquent 356 369 306 193 127 81 1,432 2.4 In repossession 12 10 6 4 2 1 35 0.1 Finance receivables more than 30 days delinquent or in repossession 368 379 312 197 129 82 1,467 2.5 Retail finance receivables, net of fees $ 27,638 $ 17,324 $ 7,084 $ 3,918 $ 1,607 $ 522 $ 58,093 100.0 % |
Troubled Debt Restructurings on Financing Receivables | Additional TDR activity is presented below: Three Months Ended March 31, 2022 2021 Number of loans classified as TDRs during the period 11,848 11,376 Outstanding amortized cost of loans classified as TDRs during the period $ 238 $ 234 |
Leased Vehicles (Tables)
Leased Vehicles (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Lessor Disclosure [Abstract] | |
Summary of Leased Vehicles | March 31, 2022 December 31, 2021 Leased vehicles $ 52,401 $ 54,821 Manufacturer subvention (6,732) (7,398) Net capitalized cost 45,669 47,423 Less: accumulated depreciation (9,088) (9,494) Leased vehicles, net $ 36,581 $ 37,929 |
Schedule of Future Minimum Rental Payments Receivable For Operating Leases | The following table summarizes minimum rental payments due to us as lessor under operating leases at March 31, 2022: Years Ending December 31, 2022 2023 2024 2025 2026 Thereafter Total Lease payments under operating leases $ 4,167 $ 3,790 $ 1,546 $ 213 $ 4 $ — $ 9,721 |
Equity in Net Assets of Non-c_2
Equity in Net Assets of Non-consolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Summarized Financial Data of Nonconsolidated Affiliates | The following table presents certain aggregated operating data of our joint ventures: Three Months Ended March 31, Summarized Operating Data 2022 2021 Finance charge income $ 451 $ 430 Income before income taxes $ 206 $ 203 Net income $ 154 $ 153 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 1,552 $ 1,551 $ 3,497 $ 3,495 Securitization notes payable 35,809 35,450 35,841 35,906 Total secured debt 37,362 37,002 39,338 39,401 Unsecured debt Senior notes 47,371 46,485 45,386 46,539 Credit facilities 1,213 1,190 1,229 1,211 Other unsecured debt 6,968 6,972 6,608 6,607 Total unsecured debt 55,552 54,648 53,223 54,357 Total secured and unsecured debt $ 92,913 $ 91,649 $ 92,561 $ 93,758 Fair value utilizing Level 2 inputs $ 89,810 $ 92,250 Fair value utilizing Level 3 inputs $ 1,839 $ 1,508 |
Variable Interest Entities an_2
Variable Interest Entities and Other Transfers of Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Securitization and Credit Facility VIEs | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The following table summarizes the assets and liabilities related to our consolidated VIEs: March 31, 2022 December 31, 2021 Restricted cash (a) $ 2,952 $ 2,740 Finance receivables, net of fees $ 30,387 $ 31,940 Lease related assets $ 16,148 $ 16,143 Secured debt $ 37,288 $ 39,277 _______________ (a) Included in other assets. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts: March 31, 2022 December 31, 2021 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Derivatives designated as hedges Fair value hedges Interest rate swaps $ 19,310 $ 11 $ 345 $ 15,058 $ 74 $ 88 Foreign currency swaps — — — 682 — 59 Cash flow hedges Interest rate swaps 709 17 4 611 12 4 Foreign currency swaps 7,945 79 221 7,419 85 201 Derivatives not designated as hedges Interest rate contracts 108,709 1,245 797 110,053 846 339 Foreign currency contracts — — — 148 — — Total $ 136,674 $ 1,353 $ 1,368 $ 133,971 $ 1,017 $ 691 The gross amounts of the fair value of our derivative instruments that are classified as assets or liabilities are included in other assets or 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. We primarily enter into derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At March 31, 2022 and December 31, 2021, the fair value of derivative instruments that are classified as assets or liabilities available for offset was $778 million and $505 million. At March 31, 2022 and December 31, 2021, we held $323 million and $376 million of collateral from counterparties that was available for netting against our asset positions. At March 31, 2022 and December 31, 2021, we posted $432 million and $45 million of collateral to counterparties that was available for netting against our liability positions. |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | 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: Carrying Amount of Cumulative Amount of Fair Value (a) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Unsecured debt $ 26,157 $ 24,964 $ 153 $ (226) _________________ (a) Includes $196 million and $246 million of unamortized gains remaining on hedged items for which hedge accounting has been discontinued at March 31, 2022 and December 31, 2021. |
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: Three Months Ended March 31, 2022 2021 Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Fair value hedges Hedged items - interest rate swaps $ 376 $ — $ 352 $ — Interest rate swaps (340) — (335) — Hedged items - foreign currency swaps (c) — 23 — 77 Foreign currency swaps (2) (24) (5) (76) Cash flow hedges Interest rate swaps 2 — (5) — Hedged items - foreign currency swaps (c) — 160 — 190 Foreign currency swaps (38) (160) (30) (190) Derivatives not designated as hedges Interest rate contracts — — 20 — Total income (losses) recognized $ (2) $ — $ (3) $ 1 _________________ (a) Total interest expense was $577 million and $650 million for the three months ended March 31, 2022 and 2021. (b) Total operating expenses were $372 million and $411 million for the three months ended March 31, 2022 and 2021. (c) Transaction activity recorded in operating expenses related to foreign currency-denominated loans. The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss): Gains (Losses) Recognized In Three Months Ended March 31, 2022 2021 Fair value hedges Foreign currency swaps $ (2) $ (3) Cash flow hedges Interest rate swaps 4 5 Foreign currency swaps (57) (125) Total $ (55) $ (123) (Gains) Losses Reclassified From Accumulated Other Three Months Ended March 31, 2022 2021 Fair value hedges Foreign currency swaps $ 2 $ 3 Cash flow hedges Interest rate swaps (1) 3 Foreign currency swaps 149 166 Total $ 150 $ 172 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Common and Preferred Stock | March 31, 2022 December 31, 2021 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 During the three months ended March 31, 2021, our Board of Directors declared and paid dividends of $600 million on our common stock to General Motors Holdings LLC. March 31, 2022 December 31, 2021 Preferred Stock Number of shares authorized 250,000,000 250,000,000 Number of shares issued and outstanding Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, 1,000,000 1,000,000 Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, 500,000 500,000 Fixed-Rate Reset Cumulative Perpetual Preferred Stock, 500,000 500,000 |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the significant components of accumulated other comprehensive income (loss): Three Months Ended March 31, 2022 2021 Unrealized gain (loss) on hedges Beginning balance $ (77) $ (157) Change in value of hedges, net of tax 95 49 Ending balance 19 (108) Defined benefit plans Beginning balance 1 1 Unrealized gain (loss) on subsidiary pension, net of tax — — Ending balance — 1 Foreign currency translation adjustment Beginning balance (1,197) (1,153) Translation gain (loss), net of tax 144 (72) Ending balance (1,053) (1,225) Total accumulated other comprehensive income (loss) $ (1,034) $ (1,332) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize key operating data for our operating segments: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 North International Total North International Total Total revenue $ 2,930 $ 226 $ 3,156 $ 3,171 $ 236 $ 3,407 Operating expenses 303 69 372 339 72 411 Leased vehicle expenses 842 13 855 1,231 13 1,244 Provision for loan losses 98 24 122 (44) 18 (26) Interest expense 507 70 577 592 58 650 Equity income — 54 54 — 54 54 Income before income taxes $ 1,179 $ 105 $ 1,284 $ 1,053 $ 129 $ 1,182 March 31, 2022 December 31, 2021 North International Total North International Total Finance receivables, net $ 60,492 $ 4,478 $ 64,970 $ 58,883 $ 4,096 $ 62,979 Leased vehicles, net $ 36,380 $ 201 $ 36,581 $ 37,741 $ 188 $ 37,929 Total assets $ 108,551 $ 7,635 $ 116,186 $ 106,572 $ 7,214 $ 113,786 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
Related Party Transactions - Tr
Related Party Transactions - Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Commercial finance receivables, net due from dealers consolidated by GM(a) | $ 64,970 | $ 62,979 | |
Commercial Finance Receivables | |||
Related Party Transaction [Line Items] | |||
Commercial finance receivables, net due from dealers consolidated by GM(a) | 7,352 | 6,725 | |
Retail Finance Receivables | |||
Related Party Transaction [Line Items] | |||
Commercial finance receivables, net due from dealers consolidated by GM(a) | 57,618 | 56,254 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Subvention receivable | 357 | 282 | |
Leased vehicle subvention earned | 547 | $ 721 | |
Affiliated Entity | Commercial Finance Receivables | |||
Related Party Transaction [Line Items] | |||
Commercial finance receivables, net due from dealers consolidated by GM(a) | 122 | 163 | |
Commercial loan funding payable | 41 | 26 | |
Taxes payable | 194 | $ 282 | |
Interest subvention earned | 10 | 9 | |
Affiliated Entity | Retail Finance Receivables | |||
Related Party Transaction [Line Items] | |||
Interest subvention earned | 210 | 179 | |
GM | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 439 | $ 1,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Apr. 26, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Related party tax payment | $ 89,000,000 | ||
Junior Subordinated Revolving Credit Facility | General Motors | |||
Related Party Transaction [Line Items] | |||
Line of credit facilities - GM Related party facility | 1,000,000,000 | ||
Revolving Credit Facility | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | 1,900,000,000 | ||
Line of Credit | Revolving Credit Facility | General Motors | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | 15,500,000,000 | ||
Line of Credit | Revolving Credit Facility | Cruise | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | 5,000,000,000 | ||
Long-term line of credit | 0 | $ 0 | |
Line of Credit | Revolving Credit Facility | Three Year Revolving Credit Facility Expiring April 2024 | General Motors | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 4,300,000,000 | ||
Debt instrument term | 3 years | ||
Line of Credit | Revolving Credit Facility | Five Year Revolving Credit Facility | General Motors | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 11,200,000,000 | ||
Debt instrument term | 5 years | ||
Line of Credit | Revolving Credit Facility | Three Hundred and Sixty-Four Day Revolving Credit Facilities | General Motors | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 2,000,000,000 | ||
Debt instrument term | 364 days | ||
Line of Credit | Revolving Credit Facility | Three Hundred and Sixty-Four Day Revolving Credit Facilities | General Motors | Subsequent Event | |||
Related Party Transaction [Line Items] | |||
Debt instrument term | 364 days |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Retail Finance Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 527 | $ 602 |
Troubled debt restructurings | 1,900 | 1,900 |
Troubled debt restructurings | 183 | 219 |
Commercial Finance Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Troubled debt restructurings | $ 0 | $ 0 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables, net (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: allowance for loan losses | $ (1,928) | $ (1,886) | ||
Total finance receivables, net | 64,970 | 62,979 | ||
Level 2 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value utilizing inputs | 7,352 | 6,725 | ||
Level 3 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value utilizing inputs | 57,774 | 57,613 | ||
Retail Finance Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables, net of fees | 59,503 | 58,093 | $ 53,397 | |
Less: allowance for loan losses | (1,884) | (1,839) | $ (1,784) | $ (1,915) |
Total finance receivables, net | 57,618 | 56,254 | ||
Commercial Finance Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables, net of fees | 7,395 | 6,772 | ||
Less: allowance for loan losses | (44) | (47) | ||
Total finance receivables, net | 7,352 | 6,725 | ||
Dealer cash management balances | $ 1,200 | $ 1,000 |
Finance Receivables - Allowance
Finance Receivables - Allowance for Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for retail loan losses beginning balance | $ 1,886 | |
Provision for loan losses | 122 | $ (26) |
Allowance for retail loan losses ending balance | 1,928 | |
Retail Finance Receivables | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for retail loan losses beginning balance | 1,839 | 1,915 |
Provision for loan losses | 126 | (13) |
Charge-offs | (275) | (253) |
Recoveries | 177 | 149 |
Foreign currency translation | 18 | (14) |
Allowance for retail loan losses ending balance | $ 1,884 | $ 1,784 |
Finance Receivables - Credit Ri
Finance Receivables - Credit Risk Profile by FICO Score (Details) - Retail Finance Receivables - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2022 | $ 7,804 | $ 27,638 | |
2021 | 25,081 | 17,324 | |
2020 | 15,531 | 7,084 | |
2019 | 6,192 | 3,918 | |
2018 | 3,296 | 1,607 | |
Prior | 1,599 | 522 | |
Total | $ 59,503 | $ 58,093 | $ 53,397 |
Percent of portfolio | 100.00% | 100.00% | |
Prime - FICO Score 680 and greater | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2022 | $ 6,019 | $ 19,729 | |
2021 | 17,792 | 12,408 | |
2020 | 11,121 | 4,078 | |
2019 | 3,540 | 2,298 | |
2018 | 1,912 | 763 | |
Prior | 655 | 143 | |
Total | $ 41,039 | $ 39,419 | |
Percent of portfolio | 69.00% | 67.90% | |
Near-prime - FICO Score 620 to 679 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2022 | $ 856 | $ 3,856 | |
2021 | 3,569 | 2,388 | |
2020 | 2,153 | 1,229 | |
2019 | 1,089 | 648 | |
2018 | 553 | 274 | |
Prior | 274 | 84 | |
Total | $ 8,494 | $ 8,479 | |
Percent of portfolio | 14.30% | 14.60% | |
Sub-prime - FICO Score less than 620 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2022 | $ 929 | $ 4,053 | |
2021 | 3,720 | 2,528 | |
2020 | 2,258 | 1,777 | |
2019 | 1,563 | 972 | |
2018 | 831 | 570 | |
Prior | 669 | 295 | |
Total | $ 9,970 | $ 10,195 | |
Percent of portfolio | 16.80% | 17.50% |
Finance Receivables - Delinquen
Finance Receivables - Delinquency (Details) - Retail Finance Receivables - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 7,804 | $ 27,638 | |
2021 | 25,081 | 17,324 | |
2020 | 15,531 | 7,084 | |
2019 | 6,192 | 3,918 | |
2018 | 3,296 | 1,607 | |
Prior | 1,599 | 522 | |
Total | $ 59,503 | $ 58,093 | $ 53,397 |
Financing receivable not past due (percentage) | 100.00% | 100.00% | 100.00% |
Performing Financial Instruments | 0 - 30 days | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 7,788 | $ 27,270 | |
2021 | 24,672 | 16,945 | |
2020 | 15,197 | 6,772 | |
2019 | 5,934 | 3,721 | |
2018 | 3,139 | 1,478 | |
Prior | 1,448 | 440 | |
Total | $ 58,179 | $ 56,626 | $ 52,367 |
Financing receivable not past due (percentage) | 97.80% | 97.50% | 98.10% |
Nonperforming Financial Instruments | 31 - 60 days | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 15 | $ 273 | |
2021 | 298 | 276 | |
2020 | 246 | 230 | |
2019 | 192 | 147 | |
2018 | 119 | 97 | |
Prior | 113 | 60 | |
Total | $ 983 | $ 1,083 | $ 741 |
Financing receivable not past due (percentage) | 1.70% | 1.80% | 1.40% |
Nonperforming Financial Instruments | Greater than 60 days | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 0 | $ 83 | |
2021 | 95 | 93 | |
2020 | 79 | 76 | |
2019 | 59 | 46 | |
2018 | 34 | 30 | |
Prior | 34 | 21 | |
Total | $ 302 | $ 349 | $ 257 |
Financing receivable not past due (percentage) | 0.50% | 0.60% | 0.50% |
Nonperforming Financial Instruments | Finance receivables more than 30 days delinquent | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 15 | $ 356 | |
2021 | 393 | 369 | |
2020 | 325 | 306 | |
2019 | 251 | 193 | |
2018 | 153 | 127 | |
Prior | 148 | 81 | |
Total | $ 1,285 | $ 1,432 | $ 998 |
Financing receivable not past due (percentage) | 2.20% | 2.40% | 1.90% |
Nonperforming Financial Instruments | In repossession | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 0 | $ 12 | |
2021 | 16 | 10 | |
2020 | 9 | 6 | |
2019 | 7 | 4 | |
2018 | 3 | 2 | |
Prior | 3 | 1 | |
Total | $ 39 | $ 35 | $ 32 |
Financing receivable not past due (percentage) | 0.10% | 0.10% | 0.00% |
Nonperforming Financial Instruments | Finance receivables more than 30 days delinquent or in repossession | |||
Financing Receivable, Past Due [Line Items] | |||
2022 | $ 15 | $ 368 | |
2021 | 409 | 379 | |
2020 | 334 | 312 | |
2019 | 258 | 197 | |
2018 | 157 | 129 | |
Prior | 150 | 82 | |
Total | $ 1,324 | $ 1,467 | $ 1,030 |
Financing receivable not past due (percentage) | 2.20% | 2.50% | 1.90% |
Finance Receivables - Troubled
Finance Receivables - Troubled Debt Restructurings (Details) - Retail Finance Receivables $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans classified as TDRs during the period | loan | 11,848 | 11,376 |
Outstanding amortized cost of loans classified as TDRs during the period | $ | $ 238 | $ 234 |
Finance Receivables - Credit _2
Finance Receivables - Credit Risk Profile by Dealer (Details) - Commercial Finance Receivables - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 6,165 | $ 5,590 |
2022 | 129 | 446 |
2021 | 424 | 457 |
2020 | 432 | 145 |
2019 | 126 | 58 |
2018 | 52 | 62 |
Prior | 67 | 14 |
Total | $ 7,395 | $ 6,772 |
Percent of portfolio | 100.00% | 100.00% |
Floorplan Advances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of revolving balance | 94.00% | 94.00% |
Group I - Performing accounts with strong to acceptable financial metrics | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 5,898 | $ 5,296 |
2022 | 129 | 433 |
2021 | 417 | 426 |
2020 | 416 | 131 |
2019 | 113 | 57 |
2018 | 51 | 50 |
Prior | 56 | 10 |
Total | $ 7,081 | $ 6,403 |
Percent of portfolio | 95.70% | 94.60% |
Group II - Performing accounts experiencing potential weakness in financial metrics | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 209 | $ 213 |
2022 | 0 | 5 |
2021 | 7 | 16 |
2020 | 16 | 12 |
2019 | 13 | 1 |
2018 | 0 | 10 |
Prior | 10 | 0 |
Total | $ 254 | $ 257 |
Percent of portfolio | 3.40% | 3.80% |
Group III - Non-Performing accounts with inadequate paying capacity for current obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 58 | $ 81 |
2022 | 0 | 8 |
2021 | 0 | 15 |
2020 | 0 | 2 |
2019 | 1 | 0 |
2018 | 0 | 2 |
Prior | 1 | 4 |
Total | $ 60 | $ 112 |
Percent of portfolio | 0.80% | 1.60% |
Group IV - Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 0 | $ 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Total | $ 0 | $ 0 |
Percent of portfolio | 0.00% | 0.00% |
Leased Vehicles - Summary of Le
Leased Vehicles - Summary of Leased Vehicles (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Lessor Disclosure [Abstract] | |||
Leased vehicles | $ 52,401 | $ 54,821 | |
Manufacturer subvention | (6,732) | (7,398) | |
Net capitalized cost | 45,669 | 47,423 | |
Less: accumulated depreciation | (9,088) | (9,494) | |
Leased vehicles, net | 36,581 | $ 37,929 | |
Depreciation expense | $ 1,200 | $ 1,700 |
Leased Vehicles - Minimum Renta
Leased Vehicles - Minimum Rental Payments (Details) $ in Millions | Mar. 31, 2022USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2022 | $ 4,167 |
2023 | 3,790 |
2024 | 1,546 |
2025 | 213 |
2026 | 4 |
Thereafter | 0 |
Total | $ 9,721 |
Equity in Net Assets of Non-c_3
Equity in Net Assets of Non-consolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Noncontrolling Interest [Line Items] | |||
Finance charge income | $ 1,010 | $ 1,016 | |
Income before income taxes | 1,284 | 1,182 | |
Net income | 54 | 54 | |
Joint Ventures | |||
Noncontrolling Interest [Line Items] | |||
Finance charge income | 451 | 430 | |
Income before income taxes | 206 | 203 | |
Net income | 154 | $ 153 | |
Undistributed earnings | $ 794 | $ 740 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 31, 2022USD ($) |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Renewed borrowing capacity | $ 1,900,000,000 |
Secured Debt | Securitization Notes Payable with Maturity Dates from 2023 to 2029 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 5,200,000,000 |
Weighted average interest rate | 1.74% |
Unsecured Senior Notes | Senior Notes with Maturity Dates from 2024 to 2032 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 3,700,000,000 |
Weighted average interest rate | 2.40% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Short Term and Long Term Debt [Line Items] | ||
Secured debt | $ 37,362 | $ 39,338 |
Unsecured debt | 55,552 | 53,223 |
Total secured and unsecured debt | 92,913 | 92,561 |
Secured debt fair value | 37,002 | 39,401 |
Unsecured debt fair value | 54,648 | 54,357 |
Fair value of Secured and Unsecured debt | 91,649 | 93,758 |
Level 2 | ||
Short Term and Long Term Debt [Line Items] | ||
Fair value of Secured and Unsecured debt | 89,810 | 92,250 |
Level 3 | ||
Short Term and Long Term Debt [Line Items] | ||
Fair value of Secured and Unsecured debt | 1,839 | 1,508 |
Revolving Credit Facility | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 1,552 | 3,497 |
Unsecured debt | 1,213 | 1,229 |
Secured debt fair value | 1,551 | 3,495 |
Unsecured debt fair value | 1,190 | 1,211 |
Securitization Notes Payable | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 35,809 | 35,841 |
Secured debt fair value | 35,450 | 35,906 |
Senior Notes | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 47,371 | 45,386 |
Unsecured debt fair value | 46,485 | 46,539 |
Other Unsecured Debt | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 6,968 | 6,608 |
Unsecured debt fair value | $ 6,972 | $ 6,607 |
Variable Interest Entities an_3
Variable Interest Entities and Other Transfers of Finance Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 3,470 | |
Finance receivables, net of fees | 64,970 | $ 62,979 |
Lease related assets | 36,581 | 37,929 |
Secured debt | 37,362 | 39,338 |
Securitization and Credit Facility VIEs | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 2,952 | 2,740 |
Finance receivables, net of fees | 30,387 | 31,940 |
Lease related assets | 16,148 | 16,143 |
Secured debt | 37,288 | 39,277 |
Transferred to secured funding arrangements | 167 | 500 |
Secured debt outstanding | $ 139 | $ 125 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair value of assets (liabilities) available for offset | $ 778 | $ 505 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 136,674 | 133,971 |
Fair Value of Assets | 1,353 | 1,017 |
Collateral available for netting against liability positions | 432 | 45 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 1,368 | 691 |
Collateral held for netting against asset positions | 323 | 376 |
Designated as Hedging Instrument | Fair Value Hedging | Other Assets | Interest Rate Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 19,310 | 15,058 |
Fair Value of Assets | 11 | 74 |
Designated as Hedging Instrument | Fair Value Hedging | Other Assets | Foreign Currency Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 0 | 682 |
Fair Value of Assets | 0 | 0 |
Designated as Hedging Instrument | Fair Value Hedging | Other Liabilities | Interest Rate Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 345 | 88 |
Designated as Hedging Instrument | Fair Value Hedging | Other Liabilities | Foreign Currency Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 0 | 59 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Assets | Interest Rate Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 709 | 611 |
Fair Value of Assets | 17 | 12 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Assets | Foreign Currency Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 7,945 | 7,419 |
Fair Value of Assets | 79 | 85 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Liabilities | Interest Rate Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 4 | 4 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Liabilities | Foreign Currency Swaps | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 221 | 201 |
Not Designated as Hedging Instrument | Other Assets | Interest Rate Contracts | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 108,709 | 110,053 |
Fair Value of Assets | 1,245 | 846 |
Not Designated as Hedging Instrument | Other Assets | Foreign Currency Contract | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 0 | 148 |
Fair Value of Assets | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Interest Rate Contracts | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 797 | 339 |
Not Designated as Hedging Instrument | Other Liabilities | Foreign Currency Contract | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Balance Sheet (Details) - Designated as Hedging Instrument - Fair Value Hedging - Unsecured Debt - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of Hedged Items | $ 26,157 | $ 24,964 |
Cumulative Amount of Fair Value Hedging Adjustments | 153 | (226) |
Discontinued hedge cumulative amount of fair value hedging adjustments | $ 196 | $ 246 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Income (Losses) Recognized in Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Interest expense | $ 577 | $ 650 |
Operating expenses | 372 | 411 |
AOCI Attributable to Parent | ||
Derivatives, Fair Value [Line Items] | ||
Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss) | (55) | (123) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income | 150 | 172 |
Fair Value Hedging | Foreign currency translation adjustment | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss) | (2) | (3) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income | 2 | 3 |
Cash Flow Hedging | Foreign currency translation adjustment | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss) | (57) | (125) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income | 149 | 166 |
Cash Flow Hedging | Unrealized gain (loss) on hedges | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss) | 4 | 5 |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income | (1) | 3 |
Interest Expense | ||
Derivatives, Fair Value [Line Items] | ||
Total income (losses) recognized | (2) | (3) |
Operating Expense | ||
Derivatives, Fair Value [Line Items] | ||
Total income (losses) recognized | 0 | 1 |
Designated as Hedging Instrument | Interest Expense | Fair Value Hedging | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 376 | 352 |
Interest rate swaps and Foreign currency swaps | (340) | (335) |
Designated as Hedging Instrument | Interest Expense | Fair Value Hedging | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 0 | 0 |
Interest rate swaps and Foreign currency swaps | (2) | (5) |
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps and Foreign currency swaps | 2 | (5) |
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 0 | 0 |
Interest rate swaps and Foreign currency swaps | (38) | (30) |
Designated as Hedging Instrument | Operating Expense | Fair Value Hedging | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 0 | 0 |
Interest rate swaps and Foreign currency swaps | 0 | 0 |
Designated as Hedging Instrument | Operating Expense | Fair Value Hedging | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 23 | 77 |
Interest rate swaps and Foreign currency swaps | (24) | (76) |
Designated as Hedging Instrument | Operating Expense | Cash Flow Hedging | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps and Foreign currency swaps | 0 | 0 |
Designated as Hedging Instrument | Operating Expense | Cash Flow Hedging | Foreign Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Hedged items | 160 | 190 |
Interest rate swaps and Foreign currency swaps | (160) | (190) |
Not Designated as Hedging Instrument | Interest Expense | Interest Rate Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts | 0 | 20 |
Not Designated as Hedging Instrument | Operating Expense | Interest Rate Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of possible loss | $ 259 |
Loss accrual | 146 |
Indirect tax contingency | $ 68 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Stock [Line Items] | ||
Common stock dividends declared and paid | $ 600 | |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock dividends declared and paid | $ 29 | 29 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock dividends declared and paid | 16 | 16 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock dividends declared and paid | $ 14 | $ 16 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Common and Preferred Stock (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Common stock shares authorized | 10,000,000 | 10,000,000 |
Common stock shares issued | 5,050,000 | 5,050,000 |
Common stock shares outstanding | 5,050,000 | 5,050,000 |
Preferred stock shares authorized | 250,000,000 | 250,000,000 |
Fixed-to-Floating Rate Cumulative Preferred Stock Series A | ||
Class of Stock [Line Items] | ||
Preferred stock shares issued | 1,000,000 | 1,000,000 |
Preferred stock shares outstanding | 1,000,000 | 1,000,000 |
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B | ||
Class of Stock [Line Items] | ||
Preferred stock shares issued | 500,000 | 500,000 |
Preferred stock shares outstanding | 500,000 | 500,000 |
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series C | ||
Class of Stock [Line Items] | ||
Preferred stock shares issued | 500,000 | 500,000 |
Preferred stock shares outstanding | 500,000 | 500,000 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | $ 13,794 | $ 13,598 |
Balance at end of period | 15,004 | 13,800 |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | (1,273) | (1,309) |
Balance at end of period | (1,034) | (1,332) |
Unrealized gain (loss) on hedges | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | (77) | (157) |
Other comprehensive income (loss), net of tax | 95 | 49 |
Balance at end of period | 19 | (108) |
Defined benefit plans | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | 1 | 1 |
Other comprehensive income (loss), net of tax | 0 | 0 |
Balance at end of period | 0 | 1 |
Foreign currency translation adjustment | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | (1,197) | (1,153) |
Other comprehensive income (loss), net of tax | 144 | (72) |
Balance at end of period | $ (1,053) | $ (1,225) |
Segment Reporting - Revenue (De
Segment Reporting - Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 3,156 | $ 3,407 |
Operating expenses | 372 | 411 |
Leased vehicle expenses | 855 | 1,244 |
Provision for loan losses | 122 | (26) |
Interest expense | 577 | 650 |
Equity income | 54 | 54 |
Income before income taxes | 1,284 | 1,182 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,930 | 3,171 |
Operating expenses | 303 | 339 |
Leased vehicle expenses | 842 | 1,231 |
Provision for loan losses | 98 | (44) |
Interest expense | 507 | 592 |
Equity income | 0 | 0 |
Income before income taxes | 1,179 | 1,053 |
International Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 226 | 236 |
Operating expenses | 69 | 72 |
Leased vehicle expenses | 13 | 13 |
Provision for loan losses | 24 | 18 |
Interest expense | 70 | 58 |
Equity income | 54 | 54 |
Income before income taxes | $ 105 | $ 129 |
Segment Reporting - Assets (Det
Segment Reporting - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Finance receivables, net of fees | $ 64,970 | $ 62,979 |
Leased vehicles, net (Note 4; Note 7 VIEs) | 36,581 | 37,929 |
Total assets | 116,186 | 113,786 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Finance receivables, net of fees | 60,492 | 58,883 |
Leased vehicles, net (Note 4; Note 7 VIEs) | 36,380 | 37,741 |
Total assets | 108,551 | 106,572 |
International Segment | ||
Segment Reporting Information [Line Items] | ||
Finance receivables, net of fees | 4,478 | 4,096 |
Leased vehicles, net (Note 4; Note 7 VIEs) | 201 | 188 |
Total assets | $ 7,635 | $ 7,214 |
Regulatory Capital and Other _2
Regulatory Capital and Other Regulatory Matters (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 116,186 | $ 113,786 |
International Regulated Bank And Finance Companies | ||
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 5,400 | $ 5,100 |