Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | acf | |
Entity Registrant Name | General Motors Financial Company, Inc. | |
Entity Central Index Key | 804,269 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 5,050,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 4,546 | $ 4,265 |
Finance receivables, net (Note 3; Note 7 VIEs) | 48,080 | 42,172 |
Leased vehicles, net (Note 4; Note 7 VIEs) | 44,128 | 42,882 |
Goodwill | 1,187 | 1,197 |
Equity in net assets of non-consolidated affiliates (Note 5) | 1,308 | 1,187 |
Related party receivables (Note 2) | 738 | 309 |
Other assets (Note 7 VIEs) | 5,594 | 5,003 |
Total assets | 105,581 | 97,015 |
Liabilities | ||
Secured debt (Note 6; Note 7 VIEs) | 39,722 | 39,887 |
Unsecured debt (Note 6) | 46,655 | 40,830 |
Deferred income | 3,583 | 3,221 |
Related party payables (Note 2) | 89 | 92 |
Other liabilities | 3,680 | 2,691 |
Total liabilities | 93,729 | 86,721 |
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 | 8,052 | 7,525 |
Accumulated other comprehensive loss | (970) | (768) |
Retained earnings | 4,770 | 3,537 |
Total shareholders' equity | 11,852 | 10,294 |
Total liabilities and shareholders' equity | $ 105,581 | $ 97,015 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Finance charge income | $ 917 | $ 837 | $ 2,667 | $ 2,401 |
Leased vehicle income | 2,501 | 2,244 | 7,445 | 6,282 |
Other income | 100 | 80 | 305 | 216 |
Total revenue | 3,518 | 3,161 | 10,417 | 8,899 |
Costs and expenses | ||||
Salaries and benefits | 239 | 224 | 683 | 621 |
Other operating expenses | 130 | 122 | 433 | 388 |
Total operating expenses | 369 | 346 | 1,116 | 1,009 |
Leased vehicle expenses | 1,677 | 1,670 | 5,148 | 4,648 |
Provision for loan losses (Note 3) | 180 | 204 | 444 | 573 |
Interest expense | 838 | 672 | 2,373 | 1,903 |
Total costs and expenses | 3,064 | 2,892 | 9,081 | 8,133 |
Equity income (Note 5) | 44 | 41 | 141 | 129 |
Income from continuing operations before income taxes | 498 | 310 | 1,477 | 895 |
Income tax provision (Note 11) | 57 | 124 | 225 | 260 |
Income from continuing operations | 441 | 186 | 1,252 | 635 |
Income (loss) from discontinued operations, net of tax (Note 12) | 0 | 16 | 0 | (169) |
Net income | 441 | 202 | 1,252 | 466 |
Net income attributable to common shareholder | $ 426 | $ 200 | $ 1,208 | $ 464 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 441 | $ 202 | $ 1,252 | $ 466 |
Other comprehensive (loss) income, net of tax (Note 10) | ||||
Unrealized gain (loss) on cash flow hedges, net of income tax (expense) benefit of $(2), $2, $(1) and $10 | 1 | (3) | 19 | (14) |
Defined benefit plans, net of income tax | 0 | 0 | 0 | (1) |
Foreign currency translation adjustment, net of income tax benefit (expense) of $0, $(21), $1 and $(30) | (35) | 120 | (221) | 318 |
Other comprehensive (loss) income, net of tax | (34) | 117 | (202) | 303 |
Comprehensive income | $ 407 | $ 319 | $ 1,050 | $ 769 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Change in value of cash flow hedges, tax expense (benefit) | $ 2 | $ (2) | $ 1 | $ (10) |
Translation income (loss), tax | $ 0 | $ 21 | $ (1) | $ 30 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net cash provided by operating activities - continuing operations | $ 5,308 | $ 4,795 |
Net cash provided by operating activities - discontinued operations | 0 | 243 |
Net cash provided by operating activities | 5,308 | 5,038 |
Cash flows from investing activities | ||
Purchases of retail finance receivables, net | (17,794) | (15,267) |
Principal collections and recoveries on retail finance receivables | 12,010 | 9,410 |
Net funding of commercial finance receivables | (886) | (1,557) |
Purchases of leased vehicles, net | (13,051) | (14,809) |
Proceeds from termination of leased vehicles | 8,094 | 4,649 |
Other investing activities | (100) | (65) |
Net cash used in investing activities - continuing operations | (11,727) | (17,639) |
Net cash used in investing activities - discontinued operations | 0 | (468) |
Net cash used in investing activities | (11,727) | (18,107) |
Cash flows from financing activities | ||
Net change in debt (original maturities less than three months) | 1,563 | (305) |
Borrowings and issuances of secured debt | 18,541 | 26,731 |
Payments on secured debt | (18,710) | (20,905) |
Borrowings and issuances of unsecured debt | 9,552 | 12,626 |
Payments on unsecured debt | (4,423) | (4,375) |
Debt issuance costs | (118) | (131) |
Proceeds from issuance of preferred stock | 492 | 985 |
Dividends paid | (59) | 0 |
Net cash provided by financing activities - continuing operations | 6,838 | 14,626 |
Net cash provided by financing activities - discontinued operations | 0 | 63 |
Net cash provided by financing activities | 6,838 | 14,689 |
Net increase in cash, cash equivalents and restricted cash | 419 | 1,620 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (56) | 112 |
Cash, cash equivalents and restricted cash at beginning of period | 6,567 | 5,302 |
Cash, cash equivalents and restricted cash at end of period | 6,930 | 7,034 |
Supplemental Cash Flow Elements [Abstract] | ||
Total | 6,567 | 5,302 |
Continuing Operations [Member] | ||
Cash flows from financing activities | ||
Cash, cash equivalents and restricted cash at end of period | 6,930 | 6,469 |
Supplemental Cash Flow Elements [Abstract] | ||
Total | 6,930 | 6,469 |
Discontinued Operations [Member] | ||
Cash flows from financing activities | ||
Cash, cash equivalents and restricted cash at end of period | 0 | 565 |
Supplemental Cash Flow Elements [Abstract] | ||
Total | $ 0 | $ 565 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The condensed 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. On October 31, 2017, we completed the sale of certain of our European subsidiaries and branches (collectively, our European Operations) to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. (BNP Paribas). Our European Operations are presented as discontinued operations in our condensed consolidated financial statements for the three and nine months ended September 30, 2017. Refer to Note 12 for additional details regarding our disposal of these operations. Unless otherwise indicated, information in these notes to the condensed consolidated financial statements relates to our continuing operations. The condensed 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 that are included in our Annual Report on Form 10–K for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (SEC) on February 6, 2018 (2017 Form 10–K). Except as otherwise specified, dollar amounts presented within tables are stated in millions. The condensed consolidated financial statements at September 30, 2018 , and for the three and nine months ended September 30, 2018 and 2017 , 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, 2017 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. Recently Adopted Accounting Standards Effective January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers” as amended, as incorporated into Accounting Standards Codification (ASC) 606, on a modified retrospective basis by recognizing a cumulative effect adjustment of $33 million as an increase to the opening balance of retained earnings. Under the new standard, commission revenue and expenses related to certain retail finance receivables that were previously recognized as earned or incurred ratably over the term of the related receivables will now be recognized in full at the origination of the receivables. Effective January 1, 2018, we adopted ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". ASU 2018-02 provides the option to reclassify stranded tax effects related to the U.S. Tax Cuts and Jobs Act of 2017 (the Tax Act) in accumulated other comprehensive income to retained earnings. The cumulative effect of the adjustments to the opening balance of retained earnings for the adopted standard was insignificant. Effective January 1, 2018, we adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities", on a modified retrospective basis, which is intended to facilitate financial reporting that more closely reflects risk management activities and simplifies the application of hedge accounting. Changes to the new guidance include expanded disclosures regarding the types of risk management strategies eligible for hedge accounting, simplifying the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured, and changing the presentation and disclosure requirements for hedge accounting activities. The cumulative effect of the adjustments to the opening balance of retained earnings for the adopted standard was insignificant. The following change to our derivative accounting policy became effective upon adoption of ASU 2017-12: Certain interest rate swap and foreign currency swap agreements have been designated as cash flow hedges. The risk being hedged is the foreign currency and interest rate risk related to forecasted transactions. If the contract has been designated as a cash flow hedge, the change in the fair value of the cash flow hedge is deferred in accumulated other comprehensive loss and is recognized in interest, operating and other expenses along with the earnings effect of the hedged item when the hedged item affects earnings. Changes in the fair value of amounts excluded from the assessment of effectiveness are recorded currently in earnings and are presented in the same income statement line as the earnings effect of the hedged item. Accounting Standards Not Yet Adopted In February 2016 the Financial Accounting Standards Board issued ASU 2016-02, "Leases", which requires us, as the lessee, to recognize most leases on the balance sheet, thereby resulting in the recognition of the right to use assets and lease obligations for those leases currently classified as operating leases. The accounting for leases where we are the lessor remains largely unchanged. We are continuing to assess the impact of ASU 2016-02 and refine our processes to permit adoption on January 1, 2019. We plan to elect the optional transition method as well as the package of practical expedients upon adoption. We expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our minimum commitments under noncancelable operating leases are not significantly different than those disclosed in our 2017 Form 10-K. In June 2016 the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a new impairment model based on current expected credit losses (CECL) rather than incurred losses. We plan to adopt on January 1, 2020 on a modified retrospective basis, which will result in an increase to our allowance for credit losses and a decrease to retained earnings as of the adoption date. We are completing a cross-functional implementation project to adjust our risk forecasting models, assumption review processes, corporate governance controls and accounting and financial reporting for our implementation of this standard. Estimated credit losses under CECL will consider relevant information about past events, current conditions and reasonable and supportable forecasts, resulting in recognition of lifetime expected credit losses upon loan origination. We expect that our allowance for credit losses will increase under CECL, though the amount of the increase is heavily dependent on the volume, credit mix and seasoning of our loan portfolio outstanding at the time of the adoption. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
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 our 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 certain interest payments on commercial loans. The balance in subvention receivable increased from December 31, 2017 due to a re-timing of cash payments from GM. We purchase certain program vehicles from GM subsidiaries. We simultaneously lease these vehicles to those subsidiaries for use primarily in their ride-sharing arrangements. We account for these leases as direct-financing leases, which are included in our finance receivables, net. We periodically purchase finance receivables from other GM subsidiaries for vehicles sold to rental car companies and for vehicles sold to certain dealerships. During the nine months ended September 30, 2018 , we purchased $371 million of these receivables from GM. We have related party payables due to GM, primarily for commercial finance receivables originated but not yet funded. The following tables present related party transactions: Balance Sheet Data September 30, 2018 December 31, 2017 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 437 $ 355 Direct-financing lease receivables from GM subsidiaries (a) $ 125 $ 88 Subvention receivable (b) $ 735 $ 306 Commercial loan funding payable (c) $ 86 $ 90 Three Months Ended September 30, Nine Months Ended September 30, Income Statement Data 2018 2017 2018 2017 Interest subvention earned on retail finance receivables (d) $ 125 $ 115 $ 359 $ 319 Interest subvention earned on commercial finance receivables (d) $ 17 $ 14 $ 50 $ 42 Leased vehicle subvention earned (e) $ 827 $ 786 $ 2,438 $ 2,246 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $ 1.1 billion for both the three months ended September 30, 2018 and 2017 , and $2.8 billion and $3.3 billion for the nine months ended September 30, 2018 and 2017 . (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 that 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 (the Junior Subordinated Revolving Credit Facility), and GM agrees to use commercially reasonable efforts to ensure that we will continue to be designated as a subsidiary borrower under GM's corporate revolving credit facilities. On April 18, 2018, GM amended and restated its revolving credit facilities, consisting of a three -year, $4.0 billion facility and a five -year, $10.5 billion facility, and added a 364 -day, $2.0 billion facility (the GM Revolving 364 -Day Credit Facility). Also on April 18, 2018, we and GM amended the Support Agreement to, among other things, allow for irrevocable and exclusive access by us of no less than $2.0 billion of the GM Revolving 364 -Day Credit Facility to support our liquidity. At September 30, 2018 , we had no amounts borrowed under these facilities. 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 these tax liabilities. Amounts owed to GM for income taxes are accrued and recorded as a related party payable. At September 30, 2018 and December 31, 2017 , there are no related party taxes payable to GM. On October 26, 2018, our Board of Directors declared a $375 million dividend on our common stock, which was paid to General Motors Holdings LLC on October 30, 2018. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Finance Receivables | Finance Receivables September 30, 2018 December 31, 2017 Retail finance receivables Retail finance receivables, collectively evaluated for impairment, net of fees $ 35,567 $ 30,574 Retail finance receivables, individually evaluated for impairment, net of fees 2,308 2,228 Total retail finance receivables, net of fees (a) 37,875 32,802 Less: allowance for loan losses - collective (522 ) (561 ) Less: allowance for loan losses - specific (317 ) (328 ) Total retail finance receivables, net 37,036 31,913 Commercial finance receivables Commercial finance receivables, collectively evaluated for impairment, net of fees 11,038 10,290 Commercial finance receivables, individually evaluated for impairment, net of fees 67 22 Total commercial finance receivables, net of fees 11,105 10,312 Less: allowance for loan losses - collective (53 ) (50 ) Less: allowance for loan losses - specific (8 ) (3 ) Total commercial finance receivables, net 11,044 10,259 Total finance receivables, net $ 48,080 $ 42,172 Fair value utilizing Level 2 inputs $ 11,044 10,259 Fair value utilizing Level 3 inputs $ 36,676 $ 31,919 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs o f $104 million and $228 million at September 30, 2018 and December 31, 2017 . Retail Finance Receivables Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Allowance for retail loan losses beginning balance $ 815 $ 844 $ 889 $ 765 Provision for loan losses 176 204 434 563 Charge-offs (285 ) (286 ) (878 ) (856 ) Recoveries 130 135 398 420 Foreign currency translation 3 2 (4 ) 7 Allowance for retail loan losses ending balance $ 839 $ 899 $ 839 $ 899 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. We use proprietary scoring systems in the underwriting process that measure the credit quality of the receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO score or its equivalent), and contract characteristics. We also consider other factors, such as employment history, financial stability and capacity to pay. A summary of the credit risk profile by FICO or equivalent scores, determined at origination, of the retail finance receivables is as follows: September 30, 2018 December 31, 2017 Amount Percent Amount Percent Prime - FICO Score 680 and greater $ 21,765 57.5 % $ 16,892 51.5 % Near-prime - FICO Score 620 to 679 5,879 15.5 5,226 15.9 Sub-prime - FICO Score less than 620 10,231 27.0 10,684 32.6 Balance at end of period $ 37,875 100.0 % $ 32,802 100.0 % In addition, we review the 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 such 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 is a consolidated summary of the contractual amounts of delinquent retail finance receivables, which is not significantly different than the recorded investment for such receivables. September 30, 2018 September 30, 2017 Amount Percent of Contractual Amount Due Amount Percent of Contractual Amount Due 31 - 60 days $ 1,302 3.4 % $ 1,176 3.6 % Greater than 60 days 498 1.3 521 1.6 Total finance receivables more than 30 days delinquent 1,800 4.7 1,697 5.2 In repossession 53 0.2 55 0.2 Total finance receivables more than 30 days delinquent or in repossession $ 1,853 4.9 % $ 1,752 5.4 % At September 30, 2018 and December 31, 2017 , the accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $847 million and $778 million . Impaired Retail Finance Receivables - TDRs Retail finance receivables that become classified as troubled debt restructurings (TDRs) are separately assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. Accounts that become classified as TDRs because of a payment deferral accrue interest at the contractual rate and an additional fee is collected (where permitted) at each time of deferral and recorded as a reduction of accrued interest. No interest or fees are forgiven on a payment deferral to a customer; therefore, there are no additional financial effects of deferred loans becoming classified as TDRs. Accounts in the U.S. in Chapter 13 bankruptcy would have already been placed on non-accrual; therefore, there are no additional financial effects from these loans becoming classified as TDRs. Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below: September 30, 2018 December 31, 2017 Outstanding recorded investment $ 2,308 $ 2,228 Less: allowance for loan losses (317 ) (328 ) Outstanding recorded investment, net of allowance $ 1,991 $ 1,900 Unpaid principal balance $ 2,341 $ 2,266 Additional information about loans classified as TDRs is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Average outstanding recorded investment $ 2,293 $ 2,091 $ 2,268 $ 2,045 Finance charge income recognized $ 59 $ 56 $ 185 $ 173 Number of loans classified as TDRs during the period 17,924 23,015 51,020 56,853 Recorded investment of loans classified as TDRs during the period $ 319 $ 407 $ 932 $ 997 The unpaid principal balances, net of recoveries, of loans that were charged off during the reporting period and were within 12 months of being modified as a TDR were insignificant for the three and nine months ended September 30, 2018 and 2017 . Commercial Finance Receivables Commercial Credit Quality Our commercial finance receivables consist of dealer financings, primarily for 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. Dealers in Group VI are subject to additional restrictions on funding, including suspension of lines of credit and liquidation of assets. The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: September 30, 2018 December 31, 2017 Amount Percent Amount Percent Group I - Dealers with superior financial metrics $ 2,109 19.0 % $ 1,915 18.6 % Group II - Dealers with strong financial metrics 3,989 35.9 3,584 34.7 Group III - Dealers with fair financial metrics 3,413 30.7 3,424 33.2 Group IV - Dealers with weak financial metrics 1,021 9.2 1,048 10.2 Group V - Dealers warranting special mention due to elevated risks 466 4.2 260 2.5 Group VI - Dealers with loans classified as substandard, doubtful or impaired 107 1.0 81 0.8 Balance at end of period $ 11,105 100.0 % $ 10,312 100.0 % At September 30, 2018 and December 31, 2017 , substantially all of our commercial finance receivables were current with respect to payment status. Commercial finance receivables on non-accrual status were insignificant, and none were classified as TDRs. Activity in the allowance for commercial loan losses was insignificant for the three and nine months ended September 30, 2018 and 2017 . |
Leased Vehicles
Leased Vehicles | 9 Months Ended |
Sep. 30, 2018 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Leased Vehicles | Leased Vehicles September 30, 2018 December 31, 2017 Leased vehicles $ 65,233 $ 62,203 Manufacturer subvention (9,952 ) (9,468 ) 55,281 52,735 Less: accumulated depreciation (11,153 ) (9,853 ) Leased vehicles, net $ 44,128 $ 42,882 The following table summarizes minimum rental payments due to us as lessor under operating leases at September 30, 2018 : Years Ending December 31, 2018 2019 2020 2021 2022 Thereafter Total Minimum rental payments under operating leases $ 1,882 $ 6,260 $ 3,570 $ 1,077 $ 97 $ 6 $ 12,892 |
Equity in Net Assets of Non-con
Equity in Net Assets of Non-consolidated Affiliate | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Equity in Net Assets of Non-consolidated Affiliate | 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. On August 9, 2018, we made a $51 million capital investment representing a 35% equity interest in the newly-formed joint venture SAIC-GMF Leasing Co. Ltd., which was established to conduct auto leasing operations in China. We hold a 35% equity interest in SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC), which conducts auto finance operations in China. The following table presents summarized operating data related to SAIC-GMAC. This data represents that of the entire entity and not our proportionate share: Three Months Ended September 30, Nine Months Ended September 30, Summarized Operating Data 2018 2017 2018 2017 Finance charge income $ 305 $ 261 $ 927 $ 775 Provision for loan losses $ 4 $ 2 $ 13 $ (9 ) Interest expense $ 127 $ 83 $ 383 $ 241 Income before income taxes $ 168 $ 157 $ 537 $ 490 Net income $ 126 $ 118 $ 403 $ 368 During the nine months ended September 30, 2018 and 2017 , there were no dividends received from SAIC-GMAC. At September 30, 2018 and December 31, 2017 , we had undistributed earnings of $456 million and $315 million related to SAIC-GMAC. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 2,327 $ 2,331 $ 4,694 $ 4,713 Securitization notes payable 37,395 37,348 35,193 35,235 Total secured debt 39,722 39,679 39,887 39,948 Unsecured debt Senior notes 41,004 41,417 36,820 37,969 Credit facilities 2,118 2,114 2,368 2,375 Other unsecured debt 3,533 3,531 1,642 1,645 Total unsecured debt 46,655 47,062 40,830 41,989 Total secured and unsecured debt $ 86,377 $ 86,741 $ 80,717 $ 81,937 Fair value utilizing Level 2 inputs $ 84,693 $ 79,623 Fair value utilizing Level 3 inputs $ 2,048 $ 2,314 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 discussion. During the nine months ended September 30, 2018 , we entered into new credit facilities or renewed credit facilities with a total net additional borrowing capacity of $345 million , and we issued $16.3 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 2.89% and legal final maturity dates ranging from 2022 to 2026 . Unsecured Debt During the nine months ended September 30, 2018 , we issued $7.2 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 3.17% and maturity dates ranging from 2020 to 2028 . During the nine months ended September 30, 2018, we launched an unsecured commercial paper notes program in the U.S. At September 30, 2018, the principal amount outstanding of our commercial paper in the U.S. was $1.5 billion . 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 September 30, 2018 , we were in compliance with these debt covenants. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Securitizations and Credit Facilities The following table summarizes the assets and liabilities related to our consolidated VIEs: September 30, 2018 December 31, 2017 Restricted cash (a) $ 2,220 $ 2,267 Finance receivables, net of fees $ 29,920 $ 28,364 Lease related assets $ 21,252 $ 22,222 Secured debt $ 39,478 $ 39,328 _______________ (a) Included in other assets. These amounts are related to securitization and credit facilities held by consolidated VIEs. Our continuing involvement with these VIEs consists of servicing assets held by the entities and holding residual interests in the entities. We have determined that we are the primary beneficiary of each VIE because we hold both (i) the power to direct the activities of the VIEs that most significantly impact the VIEs' economic performance and (ii) the obligation to absorb losses from and the right to receive benefits of the VIEs that could potentially be significant to the VIEs. We are not required, and do not currently intend, to provide any additional financial support to these VIEs. Liabilities recognized as a result of consolidating these entities generally do not represent claims against us or our other subsidiaries and assets recognized generally are for the benefit of these entities' operations and cannot be used to satisfy our or our other subsidiaries' obligations. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
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, liquidity, and credit risk primarily by managing the amount, sources, and duration of our assets and liabilities and the use of 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 amounts of fair value of our derivative instruments and the associated notional amounts: September 30, 2018 December 31, 2017 Notional Fair Value of Assets (a) Fair Value of Liabilities (a) Notional Fair Value of Assets (a) Fair Value of Liabilities (a) Derivatives designated as hedges Fair value hedges Interest rate contracts $ 10,510 $ 5 $ 510 $ 11,110 $ 2 $ 290 Cash flow hedges Interest rate contracts 905 10 — 2,177 15 — Foreign currency swaps 2,108 71 27 1,574 103 — Derivatives not designated as hedges Interest rate contracts 93,162 551 670 81,938 329 207 Foreign currency swaps 1,858 58 48 1,201 104 — Total (b) $ 108,543 $ 695 $ 1,255 $ 98,000 $ 553 $ 497 _________________ (a) The gross amounts of the fair value of our assets and liabilities are included in other assets and other liabilities, respectively. Amounts accrued for interest payments in a net receivable position are included in other assets. Amounts accrued for interest payments in a net payable position are included in other liabilities. All our derivatives are categorized within Level 2 of the fair value hierarchy. The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves. (b) We primarily enter into derivatives contracts through AmeriCredit Financial Services, Inc. (AFSI); however our SPEs may also be parties to derivative transactions. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At September 30, 2018 and December 31, 2017 , the fair value of assets and liabilities available for offset was $459 million and $284 million . At September 30, 2018 and December 31, 2017 , we held $55 million and $25 million and posted $718 million and $299 million of collateral available for netting. As of September 30, 2018 , the following amounts were recorded in the condensed consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships: September 30, 2018 Carrying Amount of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments (a) Unsecured debt $ 15,363 $ 735 _________________ (a) Includes $178 million of adjustments remaining on hedged items for which hedge accounting has been discontinued. The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2018 : Income (Losses) Recognized In Income Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Interest Expense (a) Other Operating Expenses (b) Interest Expense (a) Other Operating Expenses (b) Fair value hedges Hedged items $ 68 $ — $ 345 $ — Interest rate contracts (73 ) — (359 ) — Cash flow hedges Interest rate contracts 4 — 11 — Foreign currency contracts (14 ) (23 ) (36 ) (91 ) Derivatives not designated as hedges Interest rate contracts (7 ) — (2 ) — Foreign currency contracts (15 ) (5 ) (35 ) (92 ) Total $ (37 ) $ (28 ) $ (76 ) $ (183 ) _________________ (a) Total interest expense was $838 million and $2.4 billion for the three and nine months ended September 30, 2018 . (b) Activity is offset by translation activity also recorded in other operating expenses related to foreign currency-denominated loans. Total other operating expense was $130 million and $433 million for the three and nine months ended September 30, 2018 . The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2017 : Income (Losses) Recognized In Income Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Fair value hedges Interest rate contracts (a)(b) $ 9 $ 38 Cash flow hedges Interest rate contracts (a) 2 1 Foreign currency contracts (c) 44 99 Derivatives not designated as hedges Interest rate contracts (a) 16 7 Foreign currency contracts (c)(d) 37 72 Total $ 108 $ 217 _________________ (a) Recognized in earnings as interest expense. (b) Includes hedge ineffectiveness which reflects the net change in the fair value of interest rate contracts offset by the change in fair value of hedged debt attributable to the hedged risk. (c) Recognized in earnings as other operating expenses and interest expense. (d) Activity is partially offset by translation activity (included in other operating expenses) related to foreign currency-denominated loans. Gains (Losses) Recognized In Accumulated Other Comprehensive Loss Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash flow hedges Interest rate contracts $ — $ — $ 5 $ 1 Foreign currency contracts (10 ) 24 (50 ) 45 Total $ (10 ) $ 24 $ (45 ) $ 46 (Gains) Losses Reclassified From (a) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash flow hedges Interest rate contracts $ (2 ) $ (1 ) $ (5 ) $ — Foreign currency contracts 13 (26 ) 69 (60 ) Total $ 11 $ (27 ) $ 64 $ (60 ) _________________ (a) All amounts reclassified from accumulated other comprehensive loss were recorded to interest expense. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees of Indebtedness At September 30, 2018 and December 31, 2017 , we guaranteed approximately $1.2 billion and $2.0 billion in aggregate principal amount of Euro Medium Term Notes issued by General Motors Financial International B.V., our former subsidiary, pursuant to our Euro Medium Term Note Programme. Subject to the terms and conditions of a letter agreement with BNP Paribas in connection with the sale of certain of our European Operations, BNP Paribas will reimburse us for any amount that we may pay under any such guarantees. 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. We identify below the material proceedings in connection with which we believe a material loss is reasonably possible or probable. 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 September 30, 2018 , we estimated our reasonably possible legal exposure for unfavorable outcomes is up to $70 million , and have accrued $17 million . In 2014 and 2015, we were served with investigative subpoenas from various state attorneys general and other governmental offices to produce documents and data relating to our automobile loan and lease business and securitization of loans and leases. We believe that we have cooperated fully with all reasonable requests for information. We are currently unable to estimate any reasonably possible loss or range of loss that may result from these investigations. 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 $13 million as of September 30, 2018 . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders' Equity September 30, 2018 December 31, 2017 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 On October 26, 2018, our Board of Directors declared a $375 million dividend on our common stock, which was paid to General Motors Holdings LLC on October 30, 2018. September 30, 2018 December 31, 2017 Preferred Stock Number of shares authorized 250,000,000 250,000,000 Number of shares issued and outstanding Series A 1,000,000 1,000,000 Series B 500,000 — On September 24, 2018 , we issued 500,000 shares, par value $0.01 per share, of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B (Series B Preferred Stock), at a liquidation preference of $1,000 per share, for net proceeds of approximately $492 million . Holders of Series B Preferred Stock are entitled to receive cash dividend payments when, as and if declared by our Board of Directors (or a duly authorized committee of our Board of Directors). Dividends on the Series B Preferred Stock accrue and are payable from September 24, 2018 to, but excluding, September 30, 2028 at a rate of 6.500% per annum, payable semi-annually in arrears on March 30 and September 30 of each year, beginning on March 30, 2019. From and including September 30, 2028, holders of the Series B Preferred Stock will be entitled to receive cash dividend payments at a floating rate equal to the then-applicable three-month U.S. Dollar LIBOR plus a spread of 3.436% per annum, payable quarterly in arrears, on March 30, June 30, September 30 and December 30 of each year. Dividends on the Series B Preferred Stock are cumulative whether or not we have earnings, there are funds legally available for the payment of the dividends or the dividends are authorized or declared. The Series B Preferred Stock does not have a maturity date. We may, at our option, redeem the shares of Series B Preferred Stock, in whole or in part, at any time on or after September 30, 2028, at a price of $1,000 per share of Series B Preferred Stock plus all accumulated and unpaid dividends to, but excluding, the date of redemption. During the nine months ended September 30, 2018, we paid $59 million of dividends to holders of record of our 5.750% Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock). On October 26, 2018, prior to the declaration of our common stock dividend, our Board of Directors declared a dividend of $28.75 per share, $29 million in the aggregate, on our Series A Preferred Stock, payable on March 30, 2019 to holders of record as of March 15, 2019 and declared a dividend of $33.58 per share, $17 million in the aggregate, on our Series B Preferred Stock, payable on March 30, 2019 to holders of record as of March 15, 2019. Accordingly, $46 million have been set aside for the payment of these dividends. The following table summarizes the significant components of accumulated other comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Unrealized gain on cash flow hedges Beginning balance $ 34 $ 6 $ 16 $ 17 Change in value of cash flow hedges, net of tax 1 (3 ) 19 (14 ) Ending balance 35 3 35 3 Defined benefit plans Beginning balance 1 (21 ) 1 (20 ) Unrealized gain (loss) on subsidiary pension, net of tax — — — (1 ) Ending balance 1 (21 ) 1 (21 ) Foreign currency translation adjustment Beginning balance (971 ) (1,037 ) (785 ) (1,235 ) Translation (loss) gain, net of tax (35 ) 120 (221 ) 318 Ending balance (1,006 ) (917 ) (1,006 ) (917 ) Total accumulated other comprehensive loss $ (970 ) $ (935 ) $ (970 ) $ (935 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim income tax reporting we estimate our annual effective tax rate and apply it to our year-to-date ordinary income. Tax jurisdictions with a projected or year-to-date loss for which a tax benefit cannot be realized are excluded from the annualized effective tax rate. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. During the three and nine months ended September 30, 2018 , income tax expense of $57 million and $225 million primarily resulted from tax expense attributable to entities included in our effective tax rate calculation. During the three and nine months ended September 30, 2017 , income tax expense of $124 million and $260 million primarily resulted from tax expense attributable to entities included in our effective tax rate calculation. We are included in GM’s consolidated U.S. federal income tax return and for 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 these financial statements as if we filed our own tax returns in each jurisdiction. On December 22, 2017, the Tax Act was signed into law. The Tax Act changed many aspects of U.S. corporate income taxation, including the reduction of the corporate income tax rate from 35% to 21%, implementation of a territorial tax system and imposition of a tax on deemed repatriated earnings of foreign subsidiaries. At December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Tax Act; however, we made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. In the three months ended September 30, 2018, we filed our 2017 U.S. federal income tax return and updated our 2017 estimated tax benefit from $240 million to $286 million , primarily related to the remeasurement of transition tax as a result of proposed regulations issued in August 2018 and associated impacts to our deferred tax asset carryforwards. We will continue to assess our provision for income taxes as future guidance is issued, but do not currently anticipate significant revisions will be necessary. Any such revisions will be treated in accordance with the measurement period guidance outlined in Staff Accounting Bulletin No. 118. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On October 31, 2017, we completed the sale of certain of our European Operations to Banque PSA Finance S.A. and BNP Paribas. Refer to Note 2 - "Discontinued Operations" to our consolidated financial statements in our 2017 Form 10-K for further discussion of the terms of the agreement. The following table summarizes the results of operations of the European Operations: Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Total revenue $ 148 $ 422 Interest expense 24 70 Other expenses 75 231 Total costs and expenses 99 301 Income from discontinued operations before income taxes 49 121 Loss on sale of discontinued operations before income taxes 38 374 Income (loss) from discontinued operations before income taxes 11 (253 ) Income tax benefit (5 ) (84 ) Income (loss) from discontinued operations, net of tax $ 16 $ (169 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
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. As discussed in Note 1 , our European Operations are presented as discontinued operations and are excluded from our segment results for the three and nine months ended September 30, 2017 . These operations were previously included in our International Segment. Key operating data for our operating segments were as follows: Three Months Ended September 30, 2018 North International Total Total revenue $ 3,217 $ 301 $ 3,518 Operating expenses 273 96 369 Leased vehicle expenses 1,668 9 1,677 Provision for loan losses 146 34 180 Interest expense 715 123 838 Equity income — 44 44 Income from continuing operations before income taxes $ 415 $ 83 $ 498 Three Months Ended September 30, 2017 North International Total Total revenue $ 2,868 $ 293 $ 3,161 Operating expenses 265 81 346 Leased vehicle expenses 1,662 8 1,670 Provision for loan losses 177 27 204 Interest expense 536 136 672 Equity income — 41 41 Income from continuing operations before income taxes $ 228 $ 82 $ 310 Nine Months Ended September 30, 2018 North International Total Total revenue $ 9,482 $ 935 $ 10,417 Operating expenses 820 296 1,116 Leased vehicle expenses 5,121 27 5,148 Provision for loan losses 333 111 444 Interest expense 1,997 376 2,373 Equity income — 141 141 Income from continuing operations before income taxes $ 1,211 $ 266 $ 1,477 Nine Months Ended September 30, 2017 North International Total Total revenue $ 8,042 $ 857 $ 8,899 Operating expenses 766 243 1,009 Leased vehicle expenses 4,631 17 4,648 Provision for loan losses 497 76 573 Interest expense 1,488 415 1,903 Equity income — 129 129 Income from continuing operations before income taxes $ 660 $ 235 $ 895 September 30, 2018 December 31, 2017 North International Total North International Total Finance receivables, net $ 41,477 $ 6,603 $ 48,080 $ 35,436 $ 6,736 $ 42,172 Leased vehicles, net $ 43,965 $ 163 $ 44,128 $ 42,753 $ 129 $ 42,882 Total assets $ 96,252 $ 9,329 $ 105,581 $ 87,618 $ 9,397 $ 97,015 |
Regulatory Capital and Other Re
Regulatory Capital and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital and Other Regulatory Matters [Abstract] | |
Regulatory Capital and Other Regulatory Matters | Regulatory Capital and Other Regulatory Matters We 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 $7.5 billion and $7.8 billion at September 30, 2018 and December 31, 2017 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed 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. On October 31, 2017, we completed the sale of certain of our European subsidiaries and branches (collectively, our European Operations) to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. (BNP Paribas). Our European Operations are presented as discontinued operations in our condensed consolidated financial statements for the three and nine months ended September 30, 2017. Refer to Note 12 for additional details regarding our disposal of these operations. Unless otherwise indicated, information in these notes to the condensed consolidated financial statements relates to our continuing operations. The condensed 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 that are included in our Annual Report on Form 10–K for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (SEC) on February 6, 2018 (2017 Form 10–K). Except as otherwise specified, dollar amounts presented within tables are stated in millions. The condensed consolidated financial statements at September 30, 2018 , and for the three and nine months ended September 30, 2018 and 2017 , 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, 2017 was derived from audited annual financial statements. |
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. |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Effective January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers” as amended, as incorporated into Accounting Standards Codification (ASC) 606, on a modified retrospective basis by recognizing a cumulative effect adjustment of $33 million as an increase to the opening balance of retained earnings. Under the new standard, commission revenue and expenses related to certain retail finance receivables that were previously recognized as earned or incurred ratably over the term of the related receivables will now be recognized in full at the origination of the receivables. Effective January 1, 2018, we adopted ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". ASU 2018-02 provides the option to reclassify stranded tax effects related to the U.S. Tax Cuts and Jobs Act of 2017 (the Tax Act) in accumulated other comprehensive income to retained earnings. The cumulative effect of the adjustments to the opening balance of retained earnings for the adopted standard was insignificant. Effective January 1, 2018, we adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities", on a modified retrospective basis, which is intended to facilitate financial reporting that more closely reflects risk management activities and simplifies the application of hedge accounting. Changes to the new guidance include expanded disclosures regarding the types of risk management strategies eligible for hedge accounting, simplifying the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured, and changing the presentation and disclosure requirements for hedge accounting activities. The cumulative effect of the adjustments to the opening balance of retained earnings for the adopted standard was insignificant. The following change to our derivative accounting policy became effective upon adoption of ASU 2017-12: Certain interest rate swap and foreign currency swap agreements have been designated as cash flow hedges. The risk being hedged is the foreign currency and interest rate risk related to forecasted transactions. If the contract has been designated as a cash flow hedge, the change in the fair value of the cash flow hedge is deferred in accumulated other comprehensive loss and is recognized in interest, operating and other expenses along with the earnings effect of the hedged item when the hedged item affects earnings. Changes in the fair value of amounts excluded from the assessment of effectiveness are recorded currently in earnings and are presented in the same income statement line as the earnings effect of the hedged item. Accounting Standards Not Yet Adopted In February 2016 the Financial Accounting Standards Board issued ASU 2016-02, "Leases", which requires us, as the lessee, to recognize most leases on the balance sheet, thereby resulting in the recognition of the right to use assets and lease obligations for those leases currently classified as operating leases. The accounting for leases where we are the lessor remains largely unchanged. We are continuing to assess the impact of ASU 2016-02 and refine our processes to permit adoption on January 1, 2019. We plan to elect the optional transition method as well as the package of practical expedients upon adoption. We expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our minimum commitments under noncancelable operating leases are not significantly different than those disclosed in our 2017 Form 10-K. In June 2016 the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a new impairment model based on current expected credit losses (CECL) rather than incurred losses. We plan to adopt on January 1, 2020 on a modified retrospective basis, which will result in an increase to our allowance for credit losses and a decrease to retained earnings as of the adoption date. We are completing a cross-functional implementation project to adjust our risk forecasting models, assumption review processes, corporate governance controls and accounting and financial reporting for our implementation of this standard. Estimated credit losses under CECL will consider relevant information about past events, current conditions and reasonable and supportable forecasts, resulting in recognition of lifetime expected credit losses upon loan origination. We expect that our allowance for credit losses will increase under CECL, though the amount of the increase is heavily dependent on the volume, credit mix and seasoning of our loan portfolio outstanding at the time of the adoption. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present related party transactions: Balance Sheet Data September 30, 2018 December 31, 2017 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 437 $ 355 Direct-financing lease receivables from GM subsidiaries (a) $ 125 $ 88 Subvention receivable (b) $ 735 $ 306 Commercial loan funding payable (c) $ 86 $ 90 Three Months Ended September 30, Nine Months Ended September 30, Income Statement Data 2018 2017 2018 2017 Interest subvention earned on retail finance receivables (d) $ 125 $ 115 $ 359 $ 319 Interest subvention earned on commercial finance receivables (d) $ 17 $ 14 $ 50 $ 42 Leased vehicle subvention earned (e) $ 827 $ 786 $ 2,438 $ 2,246 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $ 1.1 billion for both the three months ended September 30, 2018 and 2017 , and $2.8 billion and $3.3 billion for the nine months ended September 30, 2018 and 2017 . (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) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Finance Receivables, Net | September 30, 2018 December 31, 2017 Retail finance receivables Retail finance receivables, collectively evaluated for impairment, net of fees $ 35,567 $ 30,574 Retail finance receivables, individually evaluated for impairment, net of fees 2,308 2,228 Total retail finance receivables, net of fees (a) 37,875 32,802 Less: allowance for loan losses - collective (522 ) (561 ) Less: allowance for loan losses - specific (317 ) (328 ) Total retail finance receivables, net 37,036 31,913 Commercial finance receivables Commercial finance receivables, collectively evaluated for impairment, net of fees 11,038 10,290 Commercial finance receivables, individually evaluated for impairment, net of fees 67 22 Total commercial finance receivables, net of fees 11,105 10,312 Less: allowance for loan losses - collective (53 ) (50 ) Less: allowance for loan losses - specific (8 ) (3 ) Total commercial finance receivables, net 11,044 10,259 Total finance receivables, net $ 48,080 $ 42,172 Fair value utilizing Level 2 inputs $ 11,044 10,259 Fair value utilizing Level 3 inputs $ 36,676 $ 31,919 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs o f $104 million and $228 million at September 30, 2018 and December 31, 2017 . |
Allowance for Credit Losses on Financing Receivables | Retail Finance Receivables Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Allowance for retail loan losses beginning balance $ 815 $ 844 $ 889 $ 765 Provision for loan losses 176 204 434 563 Charge-offs (285 ) (286 ) (878 ) (856 ) Recoveries 130 135 398 420 Foreign currency translation 3 2 (4 ) 7 Allowance for retail loan losses ending balance $ 839 $ 899 $ 839 $ 899 |
Financing Receivable Credit Quality Indicators | A summary of the credit risk profile by FICO or equivalent scores, determined at origination, of the retail finance receivables is as follows: September 30, 2018 December 31, 2017 Amount Percent Amount Percent Prime - FICO Score 680 and greater $ 21,765 57.5 % $ 16,892 51.5 % Near-prime - FICO Score 620 to 679 5,879 15.5 5,226 15.9 Sub-prime - FICO Score less than 620 10,231 27.0 10,684 32.6 Balance at end of period $ 37,875 100.0 % $ 32,802 100.0 % |
Past Due Financing Receivables | The following is a consolidated summary of the contractual amounts of delinquent retail finance receivables, which is not significantly different than the recorded investment for such receivables. September 30, 2018 September 30, 2017 Amount Percent of Contractual Amount Due Amount Percent of Contractual Amount Due 31 - 60 days $ 1,302 3.4 % $ 1,176 3.6 % Greater than 60 days 498 1.3 521 1.6 Total finance receivables more than 30 days delinquent 1,800 4.7 1,697 5.2 In repossession 53 0.2 55 0.2 Total finance receivables more than 30 days delinquent or in repossession $ 1,853 4.9 % $ 1,752 5.4 % |
Troubled Debt Restructurings on Financing Receivables | The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below: September 30, 2018 December 31, 2017 Outstanding recorded investment $ 2,308 $ 2,228 Less: allowance for loan losses (317 ) (328 ) Outstanding recorded investment, net of allowance $ 1,991 $ 1,900 Unpaid principal balance $ 2,341 $ 2,266 Additional information about loans classified as TDRs is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Average outstanding recorded investment $ 2,293 $ 2,091 $ 2,268 $ 2,045 Finance charge income recognized $ 59 $ 56 $ 185 $ 173 Number of loans classified as TDRs during the period 17,924 23,015 51,020 56,853 Recorded investment of loans classified as TDRs during the period $ 319 $ 407 $ 932 $ 997 |
Financing Receivable Credit Quality Indicators for Commercial Lending | The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: September 30, 2018 December 31, 2017 Amount Percent Amount Percent Group I - Dealers with superior financial metrics $ 2,109 19.0 % $ 1,915 18.6 % Group II - Dealers with strong financial metrics 3,989 35.9 3,584 34.7 Group III - Dealers with fair financial metrics 3,413 30.7 3,424 33.2 Group IV - Dealers with weak financial metrics 1,021 9.2 1,048 10.2 Group V - Dealers warranting special mention due to elevated risks 466 4.2 260 2.5 Group VI - Dealers with loans classified as substandard, doubtful or impaired 107 1.0 81 0.8 Balance at end of period $ 11,105 100.0 % $ 10,312 100.0 % |
Leased Vehicles (Tables)
Leased Vehicles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Summary of Leased Vehicles | September 30, 2018 December 31, 2017 Leased vehicles $ 65,233 $ 62,203 Manufacturer subvention (9,952 ) (9,468 ) 55,281 52,735 Less: accumulated depreciation (11,153 ) (9,853 ) Leased vehicles, net $ 44,128 $ 42,882 |
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 September 30, 2018 : Years Ending December 31, 2018 2019 2020 2021 2022 Thereafter Total Minimum rental payments under operating leases $ 1,882 $ 6,260 $ 3,570 $ 1,077 $ 97 $ 6 $ 12,892 |
Equity in Net Assets of Non-c_2
Equity in Net Assets of Non-consolidated Affiliate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Summarized Financial Data of Nonconsolidated Affiliates | Three Months Ended September 30, Nine Months Ended September 30, Summarized Operating Data 2018 2017 2018 2017 Finance charge income $ 305 $ 261 $ 927 $ 775 Provision for loan losses $ 4 $ 2 $ 13 $ (9 ) Interest expense $ 127 $ 83 $ 383 $ 241 Income before income taxes $ 168 $ 157 $ 537 $ 490 Net income $ 126 $ 118 $ 403 $ 368 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 2,327 $ 2,331 $ 4,694 $ 4,713 Securitization notes payable 37,395 37,348 35,193 35,235 Total secured debt 39,722 39,679 39,887 39,948 Unsecured debt Senior notes 41,004 41,417 36,820 37,969 Credit facilities 2,118 2,114 2,368 2,375 Other unsecured debt 3,533 3,531 1,642 1,645 Total unsecured debt 46,655 47,062 40,830 41,989 Total secured and unsecured debt $ 86,377 $ 86,741 $ 80,717 $ 81,937 Fair value utilizing Level 2 inputs $ 84,693 $ 79,623 Fair value utilizing Level 3 inputs $ 2,048 $ 2,314 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securitization and Credit Facility VIEs [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The following table summarizes the assets and liabilities related to our consolidated VIEs: September 30, 2018 December 31, 2017 Restricted cash (a) $ 2,220 $ 2,267 Finance receivables, net of fees $ 29,920 $ 28,364 Lease related assets $ 21,252 $ 22,222 Secured debt $ 39,478 $ 39,328 _______________ (a) Included in other assets. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The table below presents the gross amounts of fair value of our derivative instruments and the associated notional amounts: September 30, 2018 December 31, 2017 Notional Fair Value of Assets (a) Fair Value of Liabilities (a) Notional Fair Value of Assets (a) Fair Value of Liabilities (a) Derivatives designated as hedges Fair value hedges Interest rate contracts $ 10,510 $ 5 $ 510 $ 11,110 $ 2 $ 290 Cash flow hedges Interest rate contracts 905 10 — 2,177 15 — Foreign currency swaps 2,108 71 27 1,574 103 — Derivatives not designated as hedges Interest rate contracts 93,162 551 670 81,938 329 207 Foreign currency swaps 1,858 58 48 1,201 104 — Total (b) $ 108,543 $ 695 $ 1,255 $ 98,000 $ 553 $ 497 _________________ (a) The gross amounts of the fair value of our assets and liabilities are included in other assets and other liabilities, respectively. Amounts accrued for interest payments in a net receivable position are included in other assets. Amounts accrued for interest payments in a net payable position are included in other liabilities. All our derivatives are categorized within Level 2 of the fair value hierarchy. The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves. (b) We primarily enter into derivatives contracts through AmeriCredit Financial Services, Inc. (AFSI); however our SPEs may also be parties to derivative transactions. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At September 30, 2018 and December 31, 2017 , the fair value of assets and liabilities available for offset was $459 million and $284 million . At September 30, 2018 and December 31, 2017 , we held $55 million and $25 million and posted $718 million and $299 million of collateral available for netting. |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | As of September 30, 2018 , the following amounts were recorded in the condensed consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships: September 30, 2018 Carrying Amount of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments (a) Unsecured debt $ 15,363 $ 735 _________________ (a) Includes $178 million of adjustments remaining on hedged items for which hedge accounting has been discontinued. |
Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2018 : Income (Losses) Recognized In Income Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Interest Expense (a) Other Operating Expenses (b) Interest Expense (a) Other Operating Expenses (b) Fair value hedges Hedged items $ 68 $ — $ 345 $ — Interest rate contracts (73 ) — (359 ) — Cash flow hedges Interest rate contracts 4 — 11 — Foreign currency contracts (14 ) (23 ) (36 ) (91 ) Derivatives not designated as hedges Interest rate contracts (7 ) — (2 ) — Foreign currency contracts (15 ) (5 ) (35 ) (92 ) Total $ (37 ) $ (28 ) $ (76 ) $ (183 ) _________________ (a) Total interest expense was $838 million and $2.4 billion for the three and nine months ended September 30, 2018 . (b) Activity is offset by translation activity also recorded in other operating expenses related to foreign currency-denominated loans. Total other operating expense was $130 million and $433 million for the three and nine months ended September 30, 2018 . The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income for the three and nine months ended September 30, 2017 : Income (Losses) Recognized In Income Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Fair value hedges Interest rate contracts (a)(b) $ 9 $ 38 Cash flow hedges Interest rate contracts (a) 2 1 Foreign currency contracts (c) 44 99 Derivatives not designated as hedges Interest rate contracts (a) 16 7 Foreign currency contracts (c)(d) 37 72 Total $ 108 $ 217 _________________ (a) Recognized in earnings as interest expense. (b) Includes hedge ineffectiveness which reflects the net change in the fair value of interest rate contracts offset by the change in fair value of hedged debt attributable to the hedged risk. (c) Recognized in earnings as other operating expenses and interest expense. (d) Activity is partially offset by translation activity (included in other operating expenses) related to foreign currency-denominated loans. Gains (Losses) Recognized In Accumulated Other Comprehensive Loss Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash flow hedges Interest rate contracts $ — $ — $ 5 $ 1 Foreign currency contracts (10 ) 24 (50 ) 45 Total $ (10 ) $ 24 $ (45 ) $ 46 (Gains) Losses Reclassified From (a) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash flow hedges Interest rate contracts $ (2 ) $ (1 ) $ (5 ) $ — Foreign currency contracts 13 (26 ) 69 (60 ) Total $ 11 $ (27 ) $ 64 $ (60 ) _________________ (a) All amounts reclassified from accumulated other comprehensive loss were recorded to interest expense. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Common and Preferred Stock | September 30, 2018 December 31, 2017 Preferred Stock Number of shares authorized 250,000,000 250,000,000 Number of shares issued and outstanding Series A 1,000,000 1,000,000 Series B 500,000 — September 30, 2018 December 31, 2017 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the significant components of accumulated other comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Unrealized gain on cash flow hedges Beginning balance $ 34 $ 6 $ 16 $ 17 Change in value of cash flow hedges, net of tax 1 (3 ) 19 (14 ) Ending balance 35 3 35 3 Defined benefit plans Beginning balance 1 (21 ) 1 (20 ) Unrealized gain (loss) on subsidiary pension, net of tax — — — (1 ) Ending balance 1 (21 ) 1 (21 ) Foreign currency translation adjustment Beginning balance (971 ) (1,037 ) (785 ) (1,235 ) Translation (loss) gain, net of tax (35 ) 120 (221 ) 318 Ending balance (1,006 ) (917 ) (1,006 ) (917 ) Total accumulated other comprehensive loss $ (970 ) $ (935 ) $ (970 ) $ (935 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the results of operations of the European Operations: Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Total revenue $ 148 $ 422 Interest expense 24 70 Other expenses 75 231 Total costs and expenses 99 301 Income from discontinued operations before income taxes 49 121 Loss on sale of discontinued operations before income taxes 38 374 Income (loss) from discontinued operations before income taxes 11 (253 ) Income tax benefit (5 ) (84 ) Income (loss) from discontinued operations, net of tax $ 16 $ (169 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | These operations were previously included in our International Segment. Key operating data for our operating segments were as follows: Three Months Ended September 30, 2018 North International Total Total revenue $ 3,217 $ 301 $ 3,518 Operating expenses 273 96 369 Leased vehicle expenses 1,668 9 1,677 Provision for loan losses 146 34 180 Interest expense 715 123 838 Equity income — 44 44 Income from continuing operations before income taxes $ 415 $ 83 $ 498 Three Months Ended September 30, 2017 North International Total Total revenue $ 2,868 $ 293 $ 3,161 Operating expenses 265 81 346 Leased vehicle expenses 1,662 8 1,670 Provision for loan losses 177 27 204 Interest expense 536 136 672 Equity income — 41 41 Income from continuing operations before income taxes $ 228 $ 82 $ 310 Nine Months Ended September 30, 2018 North International Total Total revenue $ 9,482 $ 935 $ 10,417 Operating expenses 820 296 1,116 Leased vehicle expenses 5,121 27 5,148 Provision for loan losses 333 111 444 Interest expense 1,997 376 2,373 Equity income — 141 141 Income from continuing operations before income taxes $ 1,211 $ 266 $ 1,477 Nine Months Ended September 30, 2017 North International Total Total revenue $ 8,042 $ 857 $ 8,899 Operating expenses 766 243 1,009 Leased vehicle expenses 4,631 17 4,648 Provision for loan losses 497 76 573 Interest expense 1,488 415 1,903 Equity income — 129 129 Income from continuing operations before income taxes $ 660 $ 235 $ 895 September 30, 2018 December 31, 2017 North International Total North International Total Finance receivables, net $ 41,477 $ 6,603 $ 48,080 $ 35,436 $ 6,736 $ 42,172 Leased vehicles, net $ 43,965 $ 163 $ 44,128 $ 42,753 $ 129 $ 42,882 Total assets $ 96,252 $ 9,329 $ 105,581 $ 87,618 $ 9,397 $ 97,015 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018segment | Jan. 01, 2018USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 2 | |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ | $ 33 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Subvention receivable | $ 735 | $ 735 | $ 306 | ||
Leased vehicle subvention earned | 827 | $ 786 | 2,438 | $ 2,246 | |
Affiliated Entity [Member] | Retail Finance Receivables [Member] | |||||
Related Party Transaction [Line Items] | |||||
Finance receivables, net due | 125 | 125 | 88 | ||
Interest subvention earned | 125 | 115 | 359 | 319 | |
Affiliated Entity [Member] | Commercial Finance Receivables [Member] | |||||
Related Party Transaction [Line Items] | |||||
Finance receivables, net due | 437 | 437 | 355 | ||
Commercial loan funding payable | 86 | 86 | $ 90 | ||
Interest subvention earned | 17 | 14 | 50 | 42 | |
Parent Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 1,100 | $ 1,100 | $ 2,800 | $ 3,300 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Apr. 18, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Tax expense due to related party | $ 0 | $ 0 | |
Junior Subordinated Revolving Credit Facility [Member] | |||
Related Party Transaction [Line Items] | |||
Line of credit facilities - GM Related party facility | 1,000,000,000 | ||
Line of Credit [Member] | Three Year Revolving Credit Facility [Member] | General Motors [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument term | 3 years | ||
Maximum borrowing capacity | $ 4,000,000,000 | ||
Line of Credit [Member] | Five Year Revolving Credit Facility [Member] | General Motors [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument term | 5 years | ||
Maximum borrowing capacity | $ 10,500,000,000 | ||
Line of Credit [Member] | Three Hundred and Sixty-Four Day Revolving Credit Facilities [Member] | General Motors [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument term | 364 days | ||
Maximum borrowing capacity | $ 2,000,000,000 | ||
Purchase of Retail Finance Receivables [Member] | Parent Company [Member] | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 371,000,000 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Retail Finance Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrual of finance charge income | $ 847 | $ 778 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables, net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 48,080 | $ 42,172 |
Level 2 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value utilizing inputs | 11,044 | 10,259 |
Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value utilizing inputs | 36,676 | 31,919 |
Commercial Finance Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total finance receivables | 11,105 | 10,312 |
Automobile Loan [Member] | Retail Finance Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment, net of fees | 35,567 | 30,574 |
Individually evaluated for impairment, net of fees | 2,308 | 2,228 |
Total finance receivables | 37,875 | 32,802 |
Less: allowance for loan losses - collective | (522) | (561) |
Less: allowance for loan losses - specific | (317) | (328) |
Total finance receivables, net | 37,036 | 31,913 |
Deferred income | 104 | 228 |
Automobile Loan [Member] | Commercial Finance Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment, net of fees | 11,038 | 10,290 |
Individually evaluated for impairment, net of fees | 67 | 22 |
Total finance receivables | 11,105 | 10,312 |
Less: allowance for loan losses - collective | (53) | (50) |
Less: allowance for loan losses - specific | (8) | (3) |
Total finance receivables, net | $ 11,044 | $ 10,259 |
Finance Receivables - Allowance
Finance Receivables - Allowance for Loan Losses (Details) - Retail Finance Receivables [Member] - Automobile Loan [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for retail loan losses beginning balance | $ 815 | $ 844 | $ 889 | $ 765 |
Provision for loan losses | 176 | 204 | 434 | 563 |
Charge-offs | (285) | (286) | (878) | (856) |
Recoveries | 130 | 135 | 398 | 420 |
Foreign currency translation | 3 | 2 | (4) | 7 |
Allowance for retail loan losses ending balance | $ 839 | $ 899 | $ 839 | $ 899 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality (Details) - Automobile Loan [Member] - Retail Finance Receivables [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Finance receivables, net of fees | $ 37,875 | $ 32,802 |
Finance receivables credit indicator, Percent | 100.00% | 100.00% |
Prime - FICO Score 680 and greater [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance receivables, net of fees | $ 21,765 | $ 16,892 |
Finance receivables credit indicator, Percent | 57.50% | 51.50% |
Near-prime - FICO Score 620 to 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance receivables, net of fees | $ 5,879 | $ 5,226 |
Finance receivables credit indicator, Percent | 15.50% | 15.90% |
Sub-prime - FICO Score less than 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance receivables, net of fees | $ 10,231 | $ 10,684 |
Finance receivables credit indicator, Percent | 27.00% | 32.60% |
Finance Receivables - Delinquen
Finance Receivables - Delinquency (Details) - Retail Finance Receivables [Member] - Automobile Loan [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
In repossession | $ 53 | $ 55 |
In repossession (percent) | 0.20% | 0.20% |
Total finance receivables more than 30 days delinquent or in repossession | $ 1,853 | $ 1,752 |
Total finance receivables more than 30 days delinquent or in repossession (percent) | 4.90% | 5.40% |
31 to 60 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable past due | $ 1,302 | $ 1,176 |
Financing receivable past due (percent) | 3.40% | 3.60% |
Greater Than 60 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable past due | $ 498 | $ 521 |
Financing receivable past due (percent) | 1.30% | 1.60% |
Thirty or More Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable past due | $ 1,800 | $ 1,697 |
Financing receivable past due (percent) | 4.70% | 5.20% |
Finance Receivables - Troubled
Finance Receivables - Troubled Debt Restructurings (Details) - Retail Finance Receivables [Member] - Automobile Loan [Member] $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding recorded investment | $ 2,308 | $ 2,308 | $ 2,228 | ||
Less: allowance for loan losses | (317) | (317) | (328) | ||
Outstanding recorded investment, net of allowance | 1,991 | 1,991 | 1,900 | ||
Unpaid principal balance | 2,341 | 2,341 | $ 2,266 | ||
Average outstanding recorded investment | 2,293 | $ 2,091 | 2,268 | $ 2,045 | |
Finance charge income recognized | $ 59 | $ 56 | $ 185 | $ 173 | |
Number of loans classified as TDRs during the period | loan | 17,924 | 23,015 | 51,020 | 56,853 | |
Recorded investment of loans classified as TDRs during the period | $ 319 | $ 407 | $ 932 | $ 997 |
Finance Receivables - Credit Ri
Finance Receivables - Credit Risk Profile by Dealer grouping of Commercial Finance Receivables (Details) - Commercial Finance Receivables [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 11,105 | $ 10,312 |
Percent of portfolio | 100.00% | 100.00% |
Group I [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 2,109 | $ 1,915 |
Percent of portfolio | 19.00% | 18.60% |
Group II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 3,989 | $ 3,584 |
Percent of portfolio | 35.90% | 34.70% |
Group III [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 3,413 | $ 3,424 |
Percent of portfolio | 30.70% | 33.20% |
Group IV [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 1,021 | $ 1,048 |
Percent of portfolio | 9.20% | 10.20% |
Group V [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 466 | $ 260 |
Percent of portfolio | 4.20% | 2.50% |
Group VI [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 107 | $ 81 |
Percent of portfolio | 1.00% | 0.80% |
Leased Vehicles - Summary of Le
Leased Vehicles - Summary of Leased Vehicles (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property Subject to or Available for Operating Lease, Net [Abstract] | ||
Leased vehicles | $ 65,233 | $ 62,203 |
Manufacturer subvention | (9,952) | (9,468) |
Leased vehicles accounted for operating leases net of manufacturing incentives | 55,281 | 52,735 |
Less: accumulated depreciation | (11,153) | (9,853) |
Leased vehicles, net | $ 44,128 | $ 42,882 |
Leased Vehicles - Minimum Renta
Leased Vehicles - Minimum Rental Payments (Details) $ in Millions | Sep. 30, 2018USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 1,882 |
2,019 | 6,260 |
2,020 | 3,570 |
2,021 | 1,077 |
2,022 | 97 |
Thereafter | 6 |
Total | $ 12,892 |
Equity in Net Assets of Non-c_3
Equity in Net Assets of Non-consolidated Affiliate (Details) - USD ($) | Aug. 09, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||||||
Net income | $ 44,000,000 | $ 41,000,000 | $ 141,000,000 | $ 129,000,000 | ||
SAIC-GMF [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership interest (percent) | 35.00% | |||||
Capital investment | $ 51,000,000 | |||||
SAIC-GMAC [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Finance charge income | 305,000,000 | 261,000,000 | 927,000,000 | 775,000,000 | ||
Provision for loan losses | 4,000,000 | 2,000,000 | 13,000,000 | (9,000,000) | ||
Interest expense | 127,000,000 | 83,000,000 | 383,000,000 | 241,000,000 | ||
Income before income taxes | 168,000,000 | 157,000,000 | 537,000,000 | 490,000,000 | ||
Net income | $ 126,000,000 | $ 118,000,000 | $ 403,000,000 | 368,000,000 | ||
Ownership interest (percent) | 35.00% | 35.00% | ||||
Cash dividends received | $ 0 | $ 0 | ||||
Undistributed earnings | $ 456,000,000 | $ 456,000,000 | $ 315,000,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Short Term and Long Term Debt [Line Items] | ||
Secured debt | $ 39,722 | $ 39,887 |
Unsecured debt | 46,655 | 40,830 |
Total secured and unsecured debt | 86,377 | 80,717 |
Secured debt fair value | 39,679 | 39,948 |
Unsecured debt fair value | 47,062 | 41,989 |
Fair value of Secured and Unsecured debt | 86,741 | 81,937 |
Level 2 [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Fair value of Secured and Unsecured debt | 84,693 | 79,623 |
Level 3 [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Fair value of Secured and Unsecured debt | 2,048 | 2,314 |
Revolving Credit Facility [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 2,327 | 4,694 |
Unsecured debt | 2,118 | 2,368 |
Secured debt fair value | 2,331 | 4,713 |
Unsecured debt fair value | 2,114 | 2,375 |
Securitization Notes Payable [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 37,395 | 35,193 |
Secured debt fair value | 37,348 | 35,235 |
Senior Notes [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 41,004 | 36,820 |
Unsecured debt fair value | 41,417 | 37,969 |
Other Unsecured Debt [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 3,533 | 1,642 |
Unsecured debt fair value | $ 3,531 | $ 1,645 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Secured Debt [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Increase to borrowing capacity | $ 345 |
Secured Debt [Member] | Securitization Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 16,300 |
Weighted average interest rate | 2.89% |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Increase in Senior Notes during the period | $ 7,200 |
Unsecured Debt [Member] | Commercial Paper [Member] | |
Debt Instrument [Line Items] | |
Principal amount outstanding | $ 1,500 |
Parent Company [Member] | Senior Notes [Member] | Fixed Rate Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Weighted average interest rate | 3.17% |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIE's (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Finance receivables, net of fees | $ 48,080 | $ 42,172 |
Lease related assets | 44,128 | 42,882 |
Securitization and Credit Facility VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 2,220 | 2,267 |
Finance receivables, net of fees | 29,920 | 28,364 |
Lease related assets | 21,252 | 22,222 |
Secured debt | $ 39,478 | $ 39,328 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | $ 10,510 | $ 11,110 |
Derivative asset, Fair value | 5 | 2 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Other Liabilities [Member] | Interest Rate Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 510 | 290 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 905 | 2,177 |
Derivative asset, Fair value | 10 | 15 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | Foreign Currency Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 2,108 | 1,574 |
Derivative asset, Fair value | 71 | 103 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | Foreign Currency Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 27 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets (liabilities) available for offset | 459 | 284 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 108,543 | 98,000 |
Derivative asset, Fair value | 695 | 553 |
Collateral available for netting | 718 | 299 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 93,162 | 81,938 |
Derivative asset, Fair value | 551 | 329 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | Foreign Currency Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 1,858 | 1,201 |
Derivative asset, Fair value | 58 | 104 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 1,255 | 497 |
Cash held | 55 | 25 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 670 | 207 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Foreign Currency Swaps [Member] | Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | $ 48 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Derivatives Recognized in the Balance Sheet (Details) - Designated as Hedging Instrument [Member] - Fair Value Hedging [Member] - Unsecured Debt [Member] $ in Millions | Sep. 30, 2018USD ($) |
Derivatives, Fair Value [Line Items] | |
Carrying Amount of Hedged Items | $ 15,363 |
Cumulative Amount of Fair Value Hedging Adjustments | 735 |
Discontinued hedge cumulative amount of fair value hedging adjustments | $ 178 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Derivatives Income (Losses) Recognized in Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivatives, Fair Value [Line Items] | ||||
Total | $ 108 | $ 217 | ||
Interest expense | $ 838 | 672 | $ 2,373 | 1,903 |
Other operating expenses | 130 | 122 | 433 | 388 |
Cash Flow Hedging [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | (10) | 24 | (45) | 46 |
Gains (Losses) Reclassified From Accumulated Other Comprehensive Loss Into Income | 11 | (27) | 64 | (60) |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | 0 | 0 | 5 | 1 |
Gains (Losses) Reclassified From Accumulated Other Comprehensive Loss Into Income | (2) | (1) | (5) | 0 |
Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | (10) | 24 | (50) | 45 |
Gains (Losses) Reclassified From Accumulated Other Comprehensive Loss Into Income | 13 | (26) | 69 | (60) |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | 9 | 38 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | 2 | 1 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | 44 | 99 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts | 16 | 7 | ||
Foreign currency derivatives | $ 37 | $ 72 | ||
Other Operating Income (Expense) [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Total | (28) | (183) | ||
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged items | 0 | 0 | ||
Interest rate contracts and Foreign currency contracts | 0 | 0 | ||
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | 0 | 0 | ||
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | (23) | (91) | ||
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts | 0 | 0 | ||
Foreign currency derivatives | (5) | (92) | ||
Interest Expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Total | (37) | (76) | ||
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged items | 68 | 345 | ||
Interest rate contracts and Foreign currency contracts | (73) | (359) | ||
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | 4 | 11 | ||
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts and Foreign currency contracts | (14) | (36) | ||
Interest Expense [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate contracts | (7) | (2) | ||
Foreign currency derivatives | $ (15) | $ (35) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Commitment and Contingencies [Line Items] | ||
Estimate of possible loss | $ 70 | |
Loss accrual | 17 | |
Indirect tax contingency | 13 | |
Parent Company [Member] | Euro Medium Term Notes [Member] | Senior Notes [Member] | ||
Commitment and Contingencies [Line Items] | ||
Debt instrument, face amount | $ 1,200 | $ 2,000 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 26, 2018 | Sep. 24, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of preferred stock | $ 492 | $ 985 | |||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock dividends declared | $ 375 | ||||
Preferred Stock [Member] | Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Amount set aside to pay dividends | $ 46 | ||||
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock shares issued | 1,000,000 | ||||
Preferred stock dividend rate | 5.75% | ||||
Preferred stock dividends paid | $ 59 | ||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock dividends declared (in dollars per share) | $ 28.75 | ||||
Preferred stock dividends declared | $ 29 | ||||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock shares issued | 500,000 | 0 | |||
Preferred stock par value (in dollars per share) | $ 0.01 | ||||
Liquidation preference (in dollars per share) | $ 1,000 | ||||
Proceeds from issuance of preferred stock | $ 492 | ||||
Preferred stock dividend rate | 6.50% | ||||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock dividends declared (in dollars per share) | $ 33.58 | ||||
Preferred stock dividends declared | $ 17 | ||||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | LIBOR [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock floating rate | 3.436% |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Common and Preferred Stock (Details) - shares | Sep. 30, 2018 | Sep. 24, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Common stock shares authorized | 10,000,000 | ||
Common stock shares issued | 5,050,000 | ||
Common stock shares outstanding | 5,050,000 | 5,050,000 | |
Preferred stock shares authorized | 250,000,000 | ||
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares issued | 1,000,000 | ||
Preferred stock shares outstanding | 1,000,000 | 1,000,000 | |
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares issued | 500,000 | 0 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ 10,294 | |||
Other comprehensive (loss) income, net of tax | $ (34) | $ 117 | (202) | $ 303 |
Ending balance | 11,852 | 11,852 | ||
AOCI Attributable to Parent [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Ending balance | (970) | (935) | (970) | (935) |
Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 34 | 6 | 16 | 17 |
Other comprehensive (loss) income, net of tax | 1 | (3) | 19 | (14) |
Ending balance | 35 | 3 | 35 | 3 |
Defined Benefit Plans [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 1 | (21) | 1 | (20) |
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | (1) |
Ending balance | 1 | (21) | 1 | (21) |
Foreign Currency Translation Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (971) | (1,037) | (785) | (1,235) |
Other comprehensive (loss) income, net of tax | (35) | 120 | (221) | 318 |
Ending balance | $ (1,006) | $ (917) | $ (1,006) | $ (917) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (benefit) provision | $ 57,000 | $ 124,000 | $ 225,000 | $ 260,000 | |
Estimated tax expense related to tax reform legislation | $ 240,000 | ||||
Tax expense related to tax reform legislation | $ 286,000 |
Discontinued Operations - Finan
Discontinued Operations - Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 16 | $ 0 | $ (169) |
Discontinued Operations, Held-for-sale [Member] | General Motors Holdings LLC [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenue | 148 | 422 | ||
Interest expense | 24 | 70 | ||
Other expenses | 75 | 231 | ||
Total costs and expenses | 99 | 301 | ||
Income from discontinued operations before income taxes | 49 | 121 | ||
Loss on sale of discontinued operations before income taxes | 38 | 374 | ||
Income (loss) from discontinued operations before income taxes | 11 | (253) | ||
Income tax benefit | (5) | (84) | ||
Income (loss) from discontinued operations, net of tax | $ 16 | $ (169) |
Segment Reporting - Operations
Segment Reporting - Operations Reporting by Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,518 | $ 3,161 | $ 10,417 | $ 8,899 |
Operating expenses | 369 | 346 | 1,116 | 1,009 |
Leased vehicle expenses | 1,677 | 1,670 | 5,148 | 4,648 |
Provision for loan losses | 180 | 204 | 444 | 573 |
Interest expense | 838 | 672 | 2,373 | 1,903 |
Equity income | 44 | 41 | 141 | 129 |
Income from continuing operations before income taxes | 498 | 310 | 1,477 | 895 |
Operating Segments [Member] | North America Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,217 | 2,868 | 9,482 | 8,042 |
Operating expenses | 273 | 265 | 820 | 766 |
Leased vehicle expenses | 1,668 | 1,662 | 5,121 | 4,631 |
Provision for loan losses | 146 | 177 | 333 | 497 |
Interest expense | 715 | 536 | 1,997 | 1,488 |
Equity income | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 415 | 228 | 1,211 | 660 |
Operating Segments [Member] | International Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 301 | 293 | 935 | 857 |
Operating expenses | 96 | 81 | 296 | 243 |
Leased vehicle expenses | 9 | 8 | 27 | 17 |
Provision for loan losses | 34 | 27 | 111 | 76 |
Interest expense | 123 | 136 | 376 | 415 |
Equity income | 44 | 41 | 141 | 129 |
Income from continuing operations before income taxes | $ 83 | $ 82 | $ 266 | $ 235 |
Segment Reporting - Operation_2
Segment Reporting - Operations Reporting by Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Finance receivables, net | $ 48,080 | $ 42,172 |
Leased vehicles, net | 44,128 | 42,882 |
Total assets | 105,581 | 97,015 |
North America Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Finance receivables, net | 41,477 | 35,436 |
Leased vehicles, net | 43,965 | 42,753 |
Total assets | 96,252 | 87,618 |
International Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Finance receivables, net | 6,603 | 6,736 |
Leased vehicles, net | 163 | 129 |
Total assets | $ 9,329 | $ 9,397 |
Regulatory Capital and Other _2
Regulatory Capital and Other Regulatory Matters (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 105,581 | $ 97,015 |
International Regulated Bank And Finance Companies [Member] | ||
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 7,500 | $ 7,800 |
Uncategorized Items - acf-20180
Label | Element | Value |
Continuing Operations [Member] | ||
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,384,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 4,546,000,000 |