Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Feb. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-10667 | |
Entity Registrant Name | General Motors Financial Company, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-2291093 | |
Entity Address, Address Line One | 801 Cherry Street | |
Entity Address, Address Line Two | Suite 3500 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76102 | |
City Area Code | 817 | |
Local Phone Number | 302-7000 | |
Title of 12(b) Security | 5.250% Senior Notes due 2026 | |
Trading Symbol | GM/26 | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,050,000 | |
Documents Incorporated by Reference | NONE | |
Entity Public Float | $ 0 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0000804269 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 5,063 | $ 3,311 |
Finance receivables, net (Note 3; Note 8 VIEs) | 58,390 | 53,473 |
Goodwill (Note 5) | 1,173 | 1,185 |
Equity in net assets of non-consolidated affiliates (Note 6) | 1,581 | 1,455 |
Property and equipment, net of accumulated depreciation of $351 and $287 | 184 | 226 |
Deferred income taxes (Note 14) | 245 | 213 |
Related party receivables (Note 2) | 643 | 678 |
Other assets (Note 8 VIEs) | 6,727 | 6,621 |
Total assets | 113,825 | 109,217 |
Liabilities | ||
Secured debt (Note 7; Note 8 VIEs) | 39,982 | 39,959 |
Unsecured debt (Note 7) | 52,443 | 48,979 |
Accounts payable and accrued expenses | 2,359 | 1,953 |
Deferred income | 3,048 | 3,648 |
Deferred income taxes (Note 14) | 1,103 | 946 |
Related party payables (Note 2) | 269 | 82 |
Other liabilities | 1,023 | 924 |
Total liabilities | 100,227 | 96,491 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity (Note 11) | ||
Common stock, $0.0001 par value per share | 0 | 0 |
Preferred stock, $0.01 par value per share | 0 | 0 |
Additional paid-in capital | 8,642 | 8,101 |
Accumulated other comprehensive loss | (1,309) | (1,119) |
Retained earnings | 6,265 | 5,744 |
Total shareholders' equity | 13,598 | 12,726 |
Total liabilities and shareholders' equity | 113,825 | 109,217 |
Assets Leased to Others [Member] | ||
ASSETS | ||
Property and equipment, net of accumulated depreciation of $351 and $287 | $ 39,819 | $ 42,055 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Accumulated depreciation | $ 351 | $ 287 |
Common stock par value per share (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Finance charge income | $ 3,996 | $ 4,071 | $ 3,629 |
Leased vehicle income | 9,530 | 10,032 | 9,963 |
Other income | 305 | 451 | 424 |
Total revenue | 13,831 | 14,554 | 14,016 |
Costs and expenses | |||
Operating expenses | 1,490 | 1,564 | 1,522 |
Leased vehicle expenses | 5,882 | 6,685 | 6,917 |
Provision for loan losses (Note 3) | 881 | 726 | 642 |
Interest expense | 3,023 | 3,641 | 3,225 |
Total costs and expenses | 11,276 | 12,616 | 12,306 |
Equity income (Note 6) | 147 | 166 | 183 |
Income before income taxes | 2,702 | 2,104 | 1,893 |
Income tax provision (Note 14) | 693 | 537 | 323 |
Net income | 2,009 | 1,567 | 1,570 |
Less: cumulative dividends on preferred stock | 98 | 90 | 66 |
Net income attributable to common shareholder | $ 1,911 | $ 1,477 | $ 1,504 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,009 | $ 1,567 | $ 1,570 |
Other comprehensive income (loss), net of tax | |||
Unrealized loss on hedges, net of income tax benefit of $37, $19 and $5 | (108) | (58) | (7) |
Foreign currency translation adjustment | (82) | 5 | (291) |
Other comprehensive loss, net of tax | (190) | (53) | (298) |
Comprehensive income | $ 1,819 | $ 1,514 | $ 1,272 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Change in value of cash flow hedges, tax expense (benefit) | $ 37 | $ 19 | $ 5 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at beginning of period at Dec. 31, 2017 | $ 10,294 | $ 40 | $ 0 | $ 0 | $ 7,525 | $ (768) | $ 3,537 | |
Balance at beginning of period (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2017 | $ 40 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,570 | 1,570 | ||||||
Other comprehensive loss | (298) | (298) | ||||||
Stock based compensation | 41 | 41 | ||||||
Issuance of preferred stock (Note 11) | 492 | 492 | ||||||
Dividends paid (Note 11) | (434) | (434) | ||||||
Dividends declared on preferred stock (Note 11) | (46) | (46) | ||||||
Balance at end of period at Dec. 31, 2018 | 11,659 | 0 | 0 | 8,058 | (1,066) | 4,667 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,567 | 1,567 | ||||||
Other comprehensive loss | (53) | (53) | ||||||
Stock based compensation | 43 | 43 | ||||||
Dividends paid (Note 11) | (445) | (445) | ||||||
Dividends declared on preferred stock (Note 11) | (45) | (45) | ||||||
Balance at end of period at Dec. 31, 2019 | 12,726 | $ (643) | 0 | 0 | 8,101 | (1,119) | 5,744 | |
Balance at end of period (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | $ (643) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,009 | 2,009 | ||||||
Other comprehensive loss | (190) | (190) | ||||||
Stock based compensation | 49 | 49 | ||||||
Issuance of preferred stock (Note 11) | 492 | 492 | ||||||
Dividends paid (Note 11) | (845) | (845) | ||||||
Balance at end of period at Dec. 31, 2020 | $ 13,598 | $ 0 | $ 0 | $ 8,642 | $ (1,309) | $ 6,265 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 2,009 | $ 1,567 | $ 1,570 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 7,426 | 7,538 | 7,697 |
Accretion and amortization of loan and leasing fees | (1,953) | (1,953) | (2,018) |
Undistributed earnings of non-consolidated affiliates, net | (54) | (121) | (183) |
Provision for loan losses | 881 | 726 | 642 |
Deferred income taxes | 354 | 440 | 239 |
Stock-based compensation expense | 49 | 50 | 29 |
Gain on termination of leased vehicles | (1,325) | (652) | (641) |
Other operating activities | (58) | 53 | 166 |
Changes in assets and liabilities: | |||
Other assets | (88) | 259 | (401) |
Other liabilities | 503 | 157 | 273 |
Related party payables | 238 | 5 | (1) |
Net cash provided by operating activities | 7,982 | 8,069 | 7,372 |
Cash flows from investing activities | |||
Purchases of retail finance receivables, net | (30,215) | (25,341) | (26,315) |
Principal collections and recoveries on retail finance receivables | 19,936 | 22,889 | 17,357 |
Net collections (funding) of commercial finance receivables | 2,849 | 650 | (2,573) |
Purchases of leased vehicles, net | (15,233) | (16,404) | (16,736) |
Proceeds from termination of leased vehicles | 13,399 | 13,302 | 10,864 |
Purchases of property and equipment | (34) | (47) | (60) |
Acquisition of equity interest | 0 | (5) | (54) |
Other investing activities | 15 | 2 | 1 |
Net cash used in investing activities | (9,283) | (4,954) | (17,516) |
Cash flows from financing activities | |||
Net change in debt (original maturities less than three months) | 273 | (304) | 1,124 |
Borrowings and issuances of secured debt | 43,818 | 25,078 | 26,693 |
Payments on secured debt | (43,668) | (27,806) | (23,626) |
Borrowings and issuances of unsecured debt | 13,347 | 10,457 | 12,200 |
Payments on unsecured debt | (10,802) | (10,276) | (5,215) |
Debt issuance costs | (162) | (116) | (146) |
Proceeds from issuance of preferred stock | 492 | 0 | 492 |
Dividends paid | (890) | (491) | (434) |
Net cash provided by (used in) financing activities | 2,408 | (3,458) | 11,088 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,107 | (343) | 944 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (83) | 2 | (68) |
Cash, cash equivalents and restricted cash at beginning of period | 7,102 | 7,443 | 6,567 |
Cash, cash equivalents and restricted cash at end of period | 8,126 | 7,102 | 7,443 |
Supplemental Cash Flow Elements | |||
Total | $ 8,126 | $ 7,443 | $ 6,567 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies History and Operations We have been operating in the automobile finance business in the U.S. since September 1992 and have been a wholly-owned subsidiary of GM since October 2010. Basis of Presentation The consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain SPEs utilized in secured financing transactions, which are considered VIEs. All intercompany transactions and accounts have been eliminated in consolidation. Except as otherwise specified, dollar amounts presented within tables are stated in millions. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. Generally, the financial statements of entities that operate outside of the U.S. are measured using the local currency as the functional currency. All assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at period-end exchange rates and the results of operations and cash flows are determined using approximate weighted-average exchange rates for the period. Translation adjustments are related to the foreign subsidiaries using local currency as their functional currency and are reported as a separate component of accumulated other comprehensive income/loss. Foreign currency transaction gains or losses are recorded directly to the consolidated statements of income and comprehensive income, regardless of whether such amounts are realized or unrealized. We may enter into foreign currency derivatives to mitigate our exposure to changes in foreign currency exchange rates. Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with original maturities of 90 days or less. Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt Our commercial finance receivables are primarily comprised of floorplan financing, which are loans to dealers to finance vehicle inventory, also known as wholesale or inventory financing. In our experience, these loans are typically repaid within 90 days of when the credit is extended. Furthermore, we typically have the unilateral ability to call the loans and receive payment within 60 days of the call. Therefore, the presentation of the cash flows related to commercial finance receivables is reflected on the consolidated statements of cash flows as "Net collections (funding) of commercial finance receivables." We have debt agreements to finance our commercial lending activities. The terms of these financing agreements require that a borrowing base of eligible floorplan receivables, within certain concentration limits, must be maintained in sufficient amounts to support advances. When a dealer repays a floorplan receivable to us, either the amount advanced against such receivables must be repaid by us or the equivalent amount in new receivables must be added to the borrowing base. The term for repayment of advances under these agreements is when we receive repayment from the dealers, which is typically within 90 days of when the credit is extended. Therefore, the cash flows related to these debt agreements are reflected on the consolidated statements of cash flows as “Net change in debt (original maturities less than three months).” Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period (vintage) and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of his or her prior credit usage, structure of the loan and other information. The output of the scorecards rank-orders consumers from those that are least likely to default to those that are most likely to default. By further dividing the portfolio into pools based on internal credit scores, we are better able to distinguish expected credit performance for different credit risks. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses on our retail finance receivables portfolio. We use static pool modeling techniques to determine the allowance for loan losses expected over the remaining life of the receivables, which is supplemented by management judgment. We assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is reflective of losses that are expected to occur in the forecasted environment. Expected losses are estimated for groups of accounts aggregated by internal credit score and monthly vintage. Generally, the expected losses are projected based on historical loss experience over the last 10 years, more heavily weighted toward recent performance to result in an estimate that is more reflective of the current internal and external environments. We consider forecast economic conditions over a reasonable and supportable forecast period. We determine the expected remaining life of the finance receivables to be a reasonable and supportable forecast horizon, primarily due to the relatively short weighted average life of retail finance receivables. We determined the economic factors that have the largest impact on expected losses include unemployment rates, interest rate spreads, disposable personal income, and growth rates in gross domestic products. We use forecasts for our chosen factors provided by a leading economic research firm. We compare the forecasts to consensus forecasts to assess for reasonableness and may use one or more forecast scenarios provided by the research firm. Troubled debt restructurings (TDRs) are grouped separately for purposes of measuring the allowance. The allowance for TDRs uses static pool modeling techniques, similar to non-TDR retail finance receivables, to determine the expected loss amount. The expected cash flows of the receivables are then discounted at the original weighted average effective interest rate of the pool. Factors considered when estimating the TDR allowance are based on an evaluation of historical and current information, and may be supplemented by management judgment. While we expect certain of our finance receivables to become TDRs, there is typically no delay between the point at which we become aware that a receivable is expected to become a TDR and when the receivable actually qualifies as a TDR. Therefore, our TDR portfolio does not include any receivables that are expected to become TDRs. Since the onset of the COVID-19 pandemic, we offered payment deferrals (typically for 60 days) and in many cases waived our deferral policies and guidelines for customers impacted by the pandemic. Accounts that were in current standing at the time of the deferral and that have not received cumulative payment deferrals of more than 180 days are excluded from TDR classification. We believe these factors are relevant in estimating expected losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current and forecast economic environments. Assumptions regarding credit losses are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumptions increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. Commercial Finance Receivables and the Allowance for Loan Losses Our commercial lending offerings consist of floorplan financing as well as dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, and to purchase and/or finance dealership real estate. Commercial finance receivables are carried at amortized cost, net of allowance for loan losses and any amounts held under a cash management program. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses in the commercial finance receivables portfolio. We establish the allowance for loan losses based on historical loss experience, as well as the forecast for industry vehicle sales, which is the economic indicator that we believe has the largest impact on expected losses. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally developed risk rating system. Dealers' financial and operating metrics are regularly scored and further evaluated to derive a risk rating. Based on dealer risk ratings, we establish probability of default and loss given default, and also determine if any specific dealer loan requires additional reserves. Charge-off Policy Retail finance receivables are generally charged off in the month in which the account becomes 120 days contractually delinquent if we have not yet recorded a repossession charge-off. Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due. Impaired Finance Receivables - TDRs In evaluating whether a loan modification constitutes a TDR, our policy for retail loans is that (i) the modification must constitute a concession and (ii) the debtor must be experiencing financial difficulties. In accordance with our policies and guidelines, we, at times, offer payment deferrals to customers. Each deferral allows the consumer to move up to two delinquent monthly payments to the end of the loan generally by paying a fee (approximately the interest portion of the payment deferred, except where state law provides for a lesser amount). A loan that is deferred two or more times would be considered significantly delayed and therefore meets the definition of a concession. A loan currently in payment default as the result of being delinquent would also represent a debtor experiencing financial difficulties. Therefore, considering these two factors, we have determined that the second deferment granted by us on a retail loan will be considered a TDR and the loan impaired. Accounts in Chapter 13 bankruptcy that have an interest rate or principal adjustment as part of a confirmed bankruptcy plan will also be considered TDRs. Commercial receivables subject to forbearance, moratoriums, extension agreements, or other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral are classified as TDRs. We do not grant concessions on the principal balance of dealer loans. 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 nonaccrual; 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. Leased Vehicles As lessor, we have investments in leased vehicles recorded as operating leases. Leased vehicles consist of automobiles leased to retail customers and are carried at amortized cost less unearned manufacturer subvention payments, which are received up front. Depreciation expense is recorded on a straight-line basis over the term of the lease agreement to the estimated residual value. Manufacturer subvention is earned on a straight-line basis as a reduction to depreciation expense. Generally, the lessee may purchase the leased vehicle at the maturity of the lease by paying the purchase price stated in the lease agreement, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to a dealer by the lease's scheduled maturity date. Extensions may be granted to the lessee for up to six months. If the lessee extends the maturity date on their lease agreement, the lessee is responsible for additional monthly payments until the leased vehicle is returned or purchased. Since the lessee is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the value of the vehicle is lower than the residual value estimated at lease inception. We estimate the expected residual value based on third-party data that considers various data points and assumptions, including, but not limited to, recent auction values, the expected future volume of returning leased vehicles, used vehicle prices, manufacturer incentive programs and fuel prices. Changes in the expected residual value result in increased or decreased depreciation of the leased asset over the remaining term of the lease. Upon disposition, a gain or loss is recorded for any difference between the carrying amount of the lease and the proceeds from the disposition of the asset, including any insurance proceeds. Under the accounting for impairment or disposal of long-lived assets, vehicles on operating leases are evaluated by asset group for impairment. We aggregate leased vehicles into asset groups based on make, year and model. When asset group indicators of impairment exist and aggregate future cash flows from the operating lease, including the expected realizable fair value of the leased assets at the end of the lease, are less than the carrying amount of the lease asset group, an immediate impairment write-down is recognized if the difference is deemed not recoverable. Variable Interest Entities (VIEs) – Securitizations and Credit Facilities We finance a significant portion of our loan and lease origination volume through the use of our credit facilities and execution of securitization transactions, which both utilize Special Purpose Entities (SPEs). In our credit facilities, we transfer finance receivables and lease-related assets to SPEs. These subsidiaries, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of the assets. In our securitizations, we transfer finance receivables and lease-related assets to SPEs structured as securitization trusts (Trusts), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. Our continuing involvement with the credit facilities and Trusts consists of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under U.S. GAAP and are consolidated because we have: (i) power over the significant activities of the entities and (ii) an obligation to absorb losses and the right to receive benefits from the VIEs that could be significant to the VIEs. Accordingly, we are the primary beneficiary of the VIEs and the finance receivables, lease-related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. Refer to Note 3 , Note 7 and Note 8 for further information. We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables, lease-related assets and cash held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. We recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in securitization transactions, and record a provision for loan losses to recognize loan losses expected over the remaining life of the securitized assets. Cash pledged to support securitization transactions is deposited to a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less. Property and Equipment Property and equipment is carried at amortized cost. Depreciation is generally provided on a straight-line basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain or loss is included in operating expenses. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and improvements are capitalized. Goodwill Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that trigger a review. The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. Derivative Financial Instruments We recognize all of our derivative financial instruments as either assets or liabilities on our consolidated balance sheets at fair value. We do not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are generally expressed in notional principal or contract amounts that are much larger than the amounts potentially at risk for nonpayment by counterparties. Therefore, in the event of nonperformance by the counterparties, our credit exposure is limited to the uncollected interest and the market value related to the instruments that have become favorable to us, to the extent that market values are not collateralized. We maintain a policy of requiring that all derivative instruments be governed by an International Swaps and Derivatives Association Master Agreement. We enter into derivative instruments and establish risks limits with counterparties that we believe are creditworthy and generally settle on a net basis. In addition, management performs a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Interest Rate Swap Agreements We utilize interest rate swap agreements to convert certain floating rate exposures to fixed rate or certain fixed-rate exposures to floating rate in order to manage our interest rate exposure. Cash flows from derivatives used to manage interest rate risk are classified as operating activities. We designate certain pay-fixed, receive-floating interest rate swaps as cash flow hedges of variable rate debt. The risk being hedged is the risk of variability in interest payments attributable to changes in interest rates. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedge in accumulated other comprehensive income/loss. We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related hedge is also recorded in interest expense. Interest Rate Cap and Floor Agreements We may purchase interest rate cap and floor agreements to limit floating rate exposures in our credit facilities. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap or floor agreement in order to offset the premium paid to purchase the interest rate cap or floor agreement and thus retain the interest rate risk. Because the interest rate cap and floor agreements entered into by us or our SPEs do not qualify for hedge accounting, changes in the fair value of interest rate cap and floor agreements purchased by the SPEs and interest rate cap and floor agreements sold by us are recorded in interest expense. Foreign Currency Swap Agreements Our policy is to minimize exposure to changes in currency exchange rates. To meet funding objectives, we borrow in a variety of currencies. We face exposure to currency exchange rates when the currency of our earning assets differs from the currency of the debt funding those assets. When possible, we fund earning assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency swaps to convert our debt obligations to the local currency of the earning assets being financed. We designate certain pay-fixed, receive-fixed cross-currency swaps as cash flow hedges of foreign currency-denominated debt. The risk being hedged is the variability in the cash flows for the payments of both principal and interest attributable to changes in foreign currency exchange rates. If the hedge relationship is deemed to be highly effective, we record the effective portion of changes in the fair value of the swap in accumulated other comprehensive income/loss. When the hedged cash flows affect earnings via principal remeasurement or accrual of interest expense, we reclassify these amounts to operating expenses or interest expense. Any ineffective portion of a cash flow hedge is recorded to interest expense immediately. We designate certain pay-float, receive-float cross-currency swaps as fair value hedges of foreign currency-denominated debt. The risk being hedged is the foreign exchange risk associated with the remeasurement of the foreign currency-denominated debt. We assess effectiveness of these hedge relationships based on changes in fair value attributable only to changes in currency exchange rates. If the hedge relationship is deemed to be highly effective, we record changes in the fair value of the swap attributable to changes in currency exchange rates to operating expenses, changes in the fair value of the swap attributable to components excluded from the assessment of hedge effectiveness in accumulated other comprehensive income/loss, and reclassify interest accrual components to interest expense. Fair Value Financial instruments are considered Level 1 when quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Financial instruments are considered Level 2 when inputs other than quoted prices are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Financial instruments are considered Level 3 when their values are determined using price models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. Income Taxes We account for income taxes on a separate return basis using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion of or the entire deferred tax asset will not be realized. We record uncertain tax positions on the basis of a two-step process whereby: (i) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position; and (ii) for those tax positions that meet the more likely than not recognition, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax provision. Revenue Recognition Finance charge income earned on finance receivables is recognized using the effective interest method. Fees and commissions received (including incentive payments) and direct costs of originating loans are generally deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are fully charged off or paid in full. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received on nonaccrual loans are first applied to any fees due, then to any interest due and then any remaining amounts are applied to principal. Interest accrual generally resumes once an account has received payments bringing the delinquency status to less than 60 days past due or, for TDRs, when repayment is reasonably assured based on the modified terms of the loan. Accrual of finance charge income on commercial finance receivables is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt exists about the full collectability of contractually agreed upon principal and interest. Payments received on nonaccrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the account fully current and collection of contractual principal and interest is reasonably assured (including amounts previously charged off). Rental income earned on leased vehicles, which includes lease origination fees, net of lease origination costs, is recognized on a straight-line basis over the term of the lease agreement. Gains or losses realized upon disposition of off-lease vehicles, including any payments received from lessees upon lease termination, are included in leased vehicle expenses. Parent Company Stock-Based Compensation We measure and record compensation expense for parent company stock-based compensation awards based on the award's estimated fair value. We record compensation expense over the applicable vesting period of an award. Refer to Note 12 for further information. Recently Adopted Accounting Standards Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which requires entities to use a new impairment model based on current expected credit losses (CECL) rather than incurred losses. Estimated credit losses under CECL consider relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of finance receivables, resulting in recognition of lifetime expected credit losses upon origination of the related finance receivable. We adopted ASU 2016-13 on a modified retrospective basis on January 1, 2020 by recognizing an after-tax cumulative-effect adjustment to the opening balance of retained earnings of $643 million. The application of ASU 2016-13 increased our allowance for loan losses by $801 million. Refer to Note 3 for information on our finance receivables at December 31, 2020. Our accounting policies changed significantly with the adoption of CECL. Prior to January 1, 2020, the allowance for loan losses was based on incurred losses in accordance with accounting policies disclosed in Note 1 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. Effective July 1, 2020, we adopted ASU 2020-04 on a prospective basis. The adoption of, and future elections under, ASU 2020-04 are not expected to have a material impact on our consolidated financial statements as the standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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 interest payments on certain commercial loans. We periodically purchase finance receivables from other GM subsidiaries for vehicles sold to rental car companies and for vehicles sold to certain dealerships. During 2020, 2019 and 2018, we purchased $191 million, $851 million and $540 million of these receivables from GM, which are included in our finance receivables, net. 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 December 31, 2020 December 31, 2019 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 398 $ 478 Subvention receivable (b) $ 642 $ 676 Commercial loan funding payable (c) $ 23 $ 74 Taxes payable (c) $ 244 $ 4 Years Ended December 31, Income Statement Data 2020 2019 2018 Interest subvention earned on retail finance receivables (d) $ 638 $ 527 $ 487 Interest subvention earned on commercial finance receivables (d) $ 41 $ 61 $ 67 Leased vehicle subvention earned (e) $ 3,042 $ 3,273 $ 3,274 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $3.9 billion , $4.1 billion and $3.8 billion during 2020, 2019 and 2018. (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. We have access, subject to available capacity, to $14.5 billion of GM's unsecured revolving credit facilities consisting of a three-year, $4.0 billion facility, and a five-year, $10.5 billion facility. We also have exclusive access to GM's $2.0 billion GM Revolving 364-Day Credit Facility. In April 2020, GM renewed the $2.0 billion GM Revolving 364-Day Credit Facility for an additional 364-day term and extended $3.6 billion of the three-year, $4.0 billion facility for an additional year expiring in April 2022. The remaining portion will expire in April 2021, unless extended. At December 31, 2020 and 2019, we had no borrowings outstanding under any of the GM revolving credit facilities. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Finance Receivables | Finance Receivables December 31, 2020 December 31, 2019 Retail finance receivables Retail finance receivables, net of fees (a) $ 51,288 $ 42,268 Less: allowance for loan losses (1,915) (866) Total retail finance receivables, net 49,373 41,402 Commercial finance receivables Commercial finance receivables, net of fees (b) 9,080 12,149 Less: allowance for loan losses (63) (78) Total commercial finance receivables, net 9,017 12,071 Total finance receivables, net $ 58,390 $ 53,473 Fair value utilizing Level 2 inputs $ 9,017 $ 12,071 Fair value utilizing Level 3 inputs $ 51,645 $ 42,012 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs. (b) Net of dealer cash management balances of $1.4 billion and $1.2 billion at December 31, 2020 and 2019. Rollforward of Allowance for Retail Loan Losses A summary of the activity in the allowance for retail loan losses is as follows: Years Ended December 31, 2020 2019 2018 Allowance for retail loan losses beginning balance $ 866 $ 844 $ 889 Impact of adopting ASU 2016-13 ( Note 1 ) 801 — — Provision for loan losses 880 690 624 Charge-offs (1,149) (1,218) (1,196) Recoveries 537 548 536 Foreign currency translation (20) 2 (9) Allowance for retail loan losses ending balance $ 1,915 $ 866 $ 844 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. A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at December 31, 2020 is as follows: Year of Origination 2020 2019 2018 2017 2016 Prior Total Percent Prime - FICO Score 680 and greater $ 18,685 $ 7,033 $ 4,491 $ 1,917 $ 555 $ 119 $ 32,800 64.0 % Near-prime - FICO Score 620 to 679 3,695 2,097 1,232 603 225 83 7,935 15.4 Sub-prime - FICO Score less than 620 3,803 2,920 1,740 1,173 610 307 10,553 20.6 Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 % We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2020: Year of Origination 2020 2019 2018 2017 2016 Prior Total Percent 0 - 30 days $ 25,894 $ 11,591 $ 7,131 $ 3,454 $ 1,249 $ 421 $ 49,740 97.0 % 31 - 60 days 210 325 235 170 102 61 1,103 2.1 Greater than 60 days 72 123 90 64 37 26 412 0.8 Finance receivables more than 30 days delinquent 282 448 325 234 139 87 1,515 2.9 In repossession 7 11 7 5 2 1 33 0.1 Finance receivables more than 30 days delinquent or in repossession 289 459 332 239 141 88 1,548 3.0 Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 % The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $714 million and $875 million at December 31, 2020 and December 31, 2019. TDRs The outstanding amortized cost of retail finance receivables that are considered TDRs was $2.2 billion at December 31, 2020, including $301 million in nonaccrual loans. Additional TDR activity is presented below: Years Ended December 31, 2020 2019 2018 Number of loans classified as TDRs during the period 57,524 69,863 69,298 Outstanding amortized cost of loans classified as TDRs during the period $ 1,057 $ 1,269 $ 1,267 The unpaid principal balances, net of recoveries, of loans charged off during the reporting period within 12 months of being modified as a TDR were $28 million, $37 million and $38 million for 2020, 2019 and 2018. Commercial Credit Quality Our commercial finance receivables consist of dealer financings, primarily for dealer inventory purchases. Proprietary models are used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. Effective January 1, 2020, we updated our commercial risk model and our risk rating categories as follows: Dealer Risk Rating Description I Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments. II Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring. III Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected. IV Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable. Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at December 31, 2020: Year of Origination (a) Dealer Risk Rating Revolving 2020 2019 2018 2017 2016 Prior Total Percent I $ 7,210 $ 579 $ 179 $ 77 $ 110 $ 43 $ 19 $ 8,217 90.5 % II 508 2 18 11 15 18 34 606 6.7 III 203 — 8 29 2 11 — 253 2.8 IV — — — — — — 4 4 — Balance at end of period $ 7,921 $ 581 $ 205 $ 117 $ 127 $ 72 $ 57 $ 9,080 100.0 % ________________ (a) Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination. At December 31, 2020, substantially all of our commercial finance receivables were current with respect to payment status, and activity in the allowance for commercial loan losses was insignificant for 2020, 2019 and 2018. Commercial finance receivables on nonaccrual status were insignificant, and none were classified as TDRs at December 31, 2020. |
Leased Vehicles
Leased Vehicles | 12 Months Ended |
Dec. 31, 2020 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Leased Vehicles | Leased Vehicles December 31, 2020 December 31, 2019 Leased vehicles $ 58,915 $ 62,767 Manufacturer subvention (8,915) (9,731) Net capitalized cost 50,000 53,036 Less: accumulated depreciation (10,181) (10,981) Leased vehicles, net $ 39,819 $ 42,055 Depreciation expense related to leased vehicles, net was $7.2 billion, $7.3 billion and $7.5 billion in 2020, 2019, and 2018. The following table summarizes minimum rental payments due to us as lessor under operating leases at December 31, 2020: Years Ending December 31, 2021 2022 2023 2024 2025 Thereafter Total Lease payments under operating leases $ 6,142 $ 3,783 $ 1,441 $ 112 $ 2 $ — $ 11,480 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table summarizes the changes in the carrying amounts of goodwill by segment: Years Ended December 31, 2020 2019 2018 North America International Total North America International Total North America International Total Beginning balance $ 1,105 $ 80 $ 1,185 $ 1,105 $ 81 $ 1,186 $ 1,105 $ 92 $ 1,197 Foreign currency translation — (12) (12) — (1) (1) — (11) (11) Ending balance $ 1,105 $ 68 $ 1,173 $ 1,105 $ 80 $ 1,185 $ 1,105 $ 81 $ 1,186 The COVID-19 pandemic has caused material disruption to businesses, resulting in an economic slowdown. The economic and social uncertainty resulting from the COVID-19 pandemic indicated that it was more likely than not that a goodwill impairment existed at March 31, 2020 for our North America reporting unit. Therefore, at March 31, 2020, we performed an event-driven goodwill impairment test for our North America reporting unit and determined no goodwill impairment existed. The fair value of our North America reporting unit at March 31, 2020 was determined based on valuation techniques using the best available information, primarily discounted cash flow projections. We make significant assumptions and estimates about the extent and timing of future cash flows. There can be no assurance that anticipated financial results will be achieved. Under multiple scenarios, including fully weighting the downside cash flow scenario, the estimated fair value of our North America reporting unit at March 31, 2020 exceeded its carrying amount. We assessed the indicators of goodwill impairment as part of our annual impairment test, as of October 1, 2020, and through the date of the filing of this Annual Report, by performing a qualitative assessment of goodwill. In performing the qualitative assessment, the Company evaluated events and circumstances since the last impairment analysis, recent operating performance, changes in GM market capitalization, changes in the business climate, and company-specific factors. The results of the qualitative assessment indicated that it was more likely than not that the estimated fair value of each reporting unit exceeded its carrying amount as of the test date. |
Equity in Net Assets of Non-con
Equity in Net Assets of Non-consolidated Affiliates | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in Net Assets of Non-consolidated Affiliates | Equity in Net Assets of Non-consolidated Affiliates We use the equity method to account for our equity interest in joint ventures. The income of these joint ventures is not consolidated into our financial statements; rather, our proportionate share of the earnings is reflected as equity income. The following tables present certain aggregated financial data of our joint ventures: Summarized Balance Sheet Data December 31, 2020 December 31, 2019 Finance receivables, net $ 22,063 $ 18,358 Total assets $ 24,722 $ 19,594 Debt $ 18,236 $ 14,321 Total liabilities $ 21,177 $ 16,352 Years Ended December 31, Summarized Operating Data 2020 2019 2018 Finance charge income $ 1,447 $ 1,369 $ 1,246 Provision for loan losses $ 162 $ 47 $ 21 Income before income taxes $ 572 $ 630 $ 696 Net income $ 426 $ 473 $ 522 The following table summarizes our direct ownership interests in joint ventures: Joint Ventures December 31, 2020 December 31, 2019 SAIC-GMAC Automotive Finance Company Limited (SAIC–GMAC) 35 % 35 % SAIC-GMF Leasing Co. Ltd. 35 % 35 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 3,733 $ 3,735 $ 6,152 $ 6,160 Securitization notes payable 36,249 36,645 33,807 34,000 Total secured debt 39,982 40,380 39,959 40,160 Unsecured debt Senior notes 46,798 48,922 43,679 44,937 Credit facilities 1,535 1,531 1,936 1,936 Other unsecured debt 4,110 4,115 3,364 3,366 Total unsecured debt 52,443 54,568 48,979 50,239 Total secured and unsecured debt $ 92,425 $ 94,948 $ 88,938 $ 90,399 Fair value utilizing Level 2 inputs $ 92,922 $ 88,481 Fair value utilizing Level 3 inputs $ 2,026 $ 1,918 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 8 for further information. The weighted average interest rate on secured debt was 1.89% at December 31, 2020. Issuance costs on the secured debt of $85 million as of December 31, 2020 and $75 million as of December 31, 2019 are amortized to interest expense over the expected term of the secured debt. The terms of our revolving credit facilities provide for a revolving period and subsequent amortization period, and borrowings are expected to be repaid over periods ranging up to six years. During 2020, we renewed credit facilities with a total borrowing capacity of $21.1 billion. Securitization notes payable at December 31, 2020 are due beginning in 2021 and lasting through 2028. During 2020, we issued $24.6 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 1.17% and maturity dates ranging from 2021 to 2028. Unsecured Debt Senior Notes At December 31, 2020, we had $46.3 billion aggregate outstanding in senior notes that mature from 2021 through 2030 and have a weighted average interest rate of 3.25%. Issuance costs on senior notes of $106 million as of December 31, 2020 and $109 million as of December 31, 2019 are amortized to interest expense over the term of the notes. During 2020, we issued $9.2 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 2.93% and maturity dates ranging from 2023 through 2030. In January 2021, we issued $2.5 billion in senior notes with a weighted average interest rate of 1.69% and maturity dates ranging from 2026 through 2031. We also issued CAD $500 million in senior notes with an interest rate of 1.75% due in 2026. General Motors Financial Company, Inc. is the sole guarantor of its subsidiaries' unsecured debt obligations for which a guarantee is provided. Credit Facilities and Other Unsecured Debt We use unsecured credit facilities with banks as well as non-bank instruments as funding sources. Our credit facilities and other unsecured debt have maturities of up to four years. The weighted average interest rate on these credit facilities and other unsecured debt was 2.47% at December 31, 2020. Contractual Debt Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt obligations: Years Ending December 31, 2021 2022 2023 2024 2025 Thereafter Total Secured debt $ 21,040 $ 10,884 $ 5,493 $ 2,375 $ 256 $ — $ 40,048 Unsecured debt 14,702 8,428 9,774 5,433 6,353 7,277 51,967 Interest payments 2,072 1,359 970 605 350 443 5,799 $ 37,814 $ 20,671 $ 16,237 $ 8,413 $ 6,959 $ 7,720 $ 97,814 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Variable Interest Entities | Variable Interest Entities Securitizations and Credit Facilities The following table summarizes the assets and liabilities related to our consolidated VIEs: December 31, 2020 December 31, 2019 Restricted cash (a) $ 2,639 $ 2,643 Finance receivables, net of fees $ 32,575 $ 35,392 Lease related assets $ 16,322 $ 14,464 Secured debt $ 39,424 $ 39,771 _______________ (a) Included in other assets. Other transfers of finance receivables Under certain debt agreements, we transfer finance receivables to entities that we do not control through majority voting interest or through contractual arrangements. These transfers do not meet the criteria to be considered sales under U.S. GAAP; therefore, the finance receivables and the related debt are included in our consolidated financial statements, similar to the treatment of finance receivables and related debt of our consolidated VIEs. Any collections received on the transferred receivables are available only for the repayment of the related debt. At December 31, 2020 and December 31, 2019, $863 million and $226 million in finance receivables had been transferred in secured funding arrangements to third-party banks, relating to $622 million and $244 million in secured debt outstanding. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We are exposed to certain risks arising from both our business operations and economic conditions. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our assets and liabilities and by using derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our borrowings. Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates. We primarily finance our earning assets with debt in the same currency to minimize the impact to earnings from our exposure to fluctuations in exchange rates. When we use a different currency, these fluctuations may impact the value of our cash receipts and payments in terms of our functional currency. We enter into derivative financial instruments to protect the value or fix the amount of certain assets and liabilities in terms of the relevant functional currency. The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts: December 31, 2020 December 31, 2019 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 swaps $ 10,064 $ 463 $ 13 $ 9,458 $ 234 $ 23 Foreign currency swaps 1,958 128 9 1,796 22 71 Cash flow hedges Interest rate swaps 921 — 27 590 — 6 Foreign currency swaps 5,626 278 47 4,429 40 119 Derivatives not designated as hedges Interest rate contracts 110,997 954 576 92,400 340 300 Total (b) $ 129,566 $ 1,823 $ 672 $ 108,673 $ 636 $ 519 _________________ (a) The gross fair value amounts 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 derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At December 31, 2020 and 2019 , the fair value of assets and liabilities available for offset was $501 million and $302 million. At December 31, 2020 and 2019 , we held $728 million and $210 million of collateral from counterparties that is available for netting against our asset positions. At December 31, 2020 and 2019 , we posted $139 million and $89 million of collateral to counterparties that is available for netting against our liability positions. The following amounts were recorded in the consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships: Carrying Amount of Cumulative Amount of Fair Value (a) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Unsecured debt $ 23,315 $ 20,397 $ (739) $ (77) _________________ (a) Includes $200 million of unamortized gains and $69 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at December 31, 2020 and 2019. The table below presents the effect of our derivative financial instruments and related hedged items, as applicable, in the consolidated statements of income: Years Ended December 31, 2020 2019 2018 Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Fair value hedges Hedged items - interest rate swaps $ (500) $ — $ (569) $ — $ 83 $ — Interest rate swaps 250 — 355 — (102) — Hedged items - foreign currency swaps (c) — (161) — 33 — (17) Foreign currency swaps (31) 167 (59) (28) (5) 18 Cash flow hedges Interest rate swaps (14) — 5 — 14 — Hedged items - foreign currency swaps (c) — (457) — (3) — 114 Foreign currency swaps (108) 457 (87) 3 (49) (114) Derivatives not designated as hedges Interest rate contracts 237 — 142 — 26 — Foreign currency swaps — — — — (44) (142) Total (losses) income recognized $ (166) $ 6 $ (213) $ 5 $ (77) $ (141) _________________ (a) Total interest expense was $3.0 billion, $3.6 billion and $3.2 billion for 2020, 2019 and 2018. (b) Total operating expenses were $1.5 billion, $1.6 billion and $1.5 billion for 2020, 2019 and 2018. (c) Transaction activity recorded in operating expenses related to foreign currency-denominated loans. The tables below present the effect of our derivative financial instruments in the consolidated statements of comprehensive income: Gains (Losses) Recognized In Years Ended December 31, 2020 2019 2018 Fair value hedges Foreign currency swaps $ (19) $ (41) $ (3) Cash flow hedges Interest rate swaps (18) (6) 3 Foreign currency swaps 160 (113) (89) Total $ 123 $ (160) $ (89) (Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income (a)(b) Years Ended December 31, 2020 2019 2018 Fair value hedges Foreign currency swaps $ 20 $ 41 $ 3 Cash flow hedges Interest rate swaps 10 (3) (7) Foreign currency swaps (261) 64 86 Total $ (231) $ 102 $ 82 _________________ (a) All amounts reclassified from accumulated other comprehensive loss were recorded to operating expenses or interest expense. (b) During the next twelve months, we estimate $83 million in losses will be reclassified into pretax earnings from derivatives designated for hedge accounting. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases Our lease obligations consist primarily of real estate office space with terms up to 11 years. Certain leases contain escalation clauses and renewal options, and generally our leases have no residual value guarantees or material covenants. We exclude from our balance sheet leases with a term equal to one year or less, and do not separate non-lease components from our real estate leases. Rent expense under operating leases was $39 million and $38 million in 2020 and 2019. Prior to adoption of ASU 2016-02, rent expense under operating leases was $30 million in 2018. Variable lease costs were insignificant for 2020 and 2019. At December 31, 2020 and 2019, operating lease right-of-use assets, included in other assets, were $141 million and $137 million and operating lease liabilities, included in other liabilities, were $164 million and $158 million. Operating lease right-of-use assets obtained in exchange for lease obligations were $26 million and $36 million in 2020 and 2019. At December 31, 2020, our undiscounted future lease obligations related to operating leases having initial terms in excess of one year were $29 million, $27 million, $25 million, $24 million, $22 million, and $64 million for 2021, 2022, 2023, 2024, 2025 and thereafter, with imputed interest of $27 million at December 31, 2020. The weighted average discount rate was 4.2%, and the weighted average remaining lease term was 7.5 years at December 31, 2020. Payments for operating leases included in net cash provided by operating activities were $49 million and $51 million in 2020 and 2019. We have no lease agreements that have not yet commenced at December 31, 2020. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and retail finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions. The counterparties to our derivative financial instruments are various major financial institutions. Borrowers located in Texas accounted for 13.0% of the retail finance receivable portfolio at December 31, 2020. No other state or country accounted for more than 10% of the retail finance receivable portfolio. At December 31, 2020, substantially all of our commercial finance receivables represent loans to GM-franchised dealers and their affiliates. Guarantees of Indebtedness At December 31, 2020, we had no guarantees on any third-party indebtedness. 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 December 31, 2020, we estimated our reasonably possible legal exposure for unfavorable outcomes is approximately $63 million, and we have accrued $15 million. Other Administrative Tax Matters We accrue non-income tax liabilities for contingencies when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time. In evaluating indirect tax matters, we take into consideration factors such as our historical experience with matters of similar nature, specific facts and circumstances, and the likelihood of prevailing. We reevaluate and update our accruals as matters progress over time, where there is a reasonable possibility that losses exceeding amounts already recognized may be incurred. Our estimate of the additional range of loss is up to $11 million at December 31, 2020. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity December 31, 2020 December 31, 2019 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 In 2020, 2019 and 2018, our Board of Directors declared and paid dividends of $800 million, $400 million and $375 million on our common stock to General Motors Holdings LLC. December 31, 2020 December 31, 2019 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 500,000 500,000 Series C 500,000 — During 2020, we paid dividends of $58 million to holders of record of our Series A Preferred Stock, and $32 million to holders of record of our Series B Preferred Stock. During 2019, we paid dividends of $58 million to holders of record of our Series A Preferred Stock, and $33 million to holders of record of our Series B Preferred Stock. During 2018, we paid dividends of $59 million to holders of record of our Series A Preferred Stock. In September 2020, we issued 500,000 shares, par value $0.01 per share, of Series C Preferred Stock, at a liquidation preference of $1,000 per share, for net proceeds of approximately $492 million. Holders of Series C 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 C Preferred Stock accrue and are payable at a rate per annum equal to 5.700% from the date of issuance to, but excluding, September 30, 2030 (the First Reset Date). Thereafter, the dividend rate will be reset on the First Reset Date and on September 30th of every fifth year thereafter (the First Reset Date and each such date thereafter, a "Reset Date", and the period from, and including, a Reset Date to, but excluding, the following Reset Date, a "Reset Period"). From and including the First Reset Date, dividends on the Series C Preferred Stock will accrue and be payable at a rate per annum equal to the five-year U.S. Treasury Rate as of the second business day preceding the applicable Reset Date plus 4.997% for each Reset Period. Dividends will be payable semi-annually in arrears on March 30 and September 30 of each year, beginning on March 30, 2021. Dividends on the Series C 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 C Preferred Stock does not have a maturity date. We may, at our option, redeem the shares of the Series C Preferred Stock, in whole or in part, on any dividend payment date on or after the First Reset Date, at a price of $1,000 per share of Series C Preferred Stock plus all accumulated and unpaid dividends to, but excluding, the date of redemption. In September 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. The following table summarizes the significant components of accumulated other comprehensive loss: Years Ended December 31, 2020 2019 2018 Unrealized (loss) gain on hedges Beginning balance $ (49) $ 9 $ 16 Change in value of hedges, net of tax (108) (58) (7) Ending balance (157) (49) 9 Defined benefit plans Beginning balance 1 1 1 Unrealized gain (loss) on subsidiary pension, net of tax — — — Ending balance 1 1 1 Foreign currency translation adjustment Beginning balance (1,071) (1,076) (785) Translation (loss) gain (82) 5 (291) Ending balance (1,153) (1,071) (1,076) Total accumulated other comprehensive loss $ (1,309) $ (1,119) $ (1,066) |
Parent Company Stock-Based Comp
Parent Company Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Parent Stock-Based Compensation | Parent Company Stock-Based Compensation GM grants to certain employees and key executive officers Restricted Stock Units (RSUs), Performance-based Share Units (PSUs) and stock options. Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans, such as retirement, death or disability. RSU awards granted either cliff vest or ratably vest generally over a three-year service period, as defined in the terms for each award. PSU awards vest at the end of a three-year performance period based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. Stock options expire 10 years from the grant date. GM's performance-based stock options vest ratably over 55 months based on the performance of its common stock relative to that of a specified peer group. GM's service-based stock options vest ratably over 19 months to three years. The following table summarizes information about RSUs, PSUs and stock options granted to our employees and key executive officers under GM's stock-based compensation programs (shares in thousands): Year Ended December 31, 2020 Shares Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Outstanding at January 1, 2020 2,777 $ 30.26 1.3 Granted 1,188 $ 31.19 Settled (990) $ 28.72 Forfeited or expired (35) $ 42.18 Outstanding at December 31, 2020 (a) 2,940 $ 31.01 1.4 Unvested and expected to vest at December 31, 2020 1,750 $ 38.07 1.7 Vested and payable at December 31, 2020 1,083 $ 19.39 ________________ (a) Includes the target amount of PSUs. The assumptions used to estimate the fair value of the stock options issued during 2020, 2019 and 2018 are a dividend yield of 4.28%, 3.90% and 3.69%, expected volatility of 25%, 28% and 28%, a risk-free interest rate of 1.50%, 2.63% and 2.73%, and an expected option life of 6.00 years, 6.00 years and 5.98 years. The expected volatility is based on the average of the implied volatility of publicly traded options for GM's common stock. Total compensation expense related to the above awards was $49 million, $50 million and $29 million in 2020, 2019 and 2018. At December 31, 2020, total unrecognized compensation expense for nonvested equity awards granted was $31 million. This expense is expected to be recorded over a weighted-average period of one year. The total fair value of RSUs and PSUs vested was $21 million, $19 million and $21 million in 2020, 2019 and 2018. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit PlansWe have defined contribution retirement plans covering the majority of our employees. We recognized compensation expense related to these plans of $25 million in 2020 and 2019, and $22 million in 2018. Contributions to the plans were made in cash. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes income before income taxes and equity income: Years Ended December 31, 2020 2019 2018 U.S. income $ 2,280 $ 1,599 $ 1,421 Non-U.S. income 275 339 289 Income before income taxes and equity income $ 2,555 $ 1,938 $ 1,710 Income Tax Expense Years Ended December 31, 2020 2019 2018 Current income tax expense U.S. federal $ 129 $ — $ — U.S. state and local 143 16 1 Non-U.S. 67 81 83 Total current 339 97 84 Deferred income tax expense U.S. federal 299 330 133 U.S. state and local 5 71 75 Non-U.S. 50 39 31 Total deferred 354 440 239 Total income tax provision $ 693 $ 537 $ 323 We have foreign subsidiaries with cumulative undistributed earnings that are indefinitely reinvested. Accordingly, no provision for U.S. income tax has been provided, and the unrecognized deferred tax liability is insignificant. An estimate of the undistributed earnings is $373 million and $409 million at December 31, 2020 and 2019. A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Non-U.S. income taxed at other than the U.S. federal statutory rate 1.5 2.1 2.8 State and local income taxes 4.1 4.0 4.2 U.S. tax on non-U.S. earnings 0.4 1.1 0.2 Valuation allowance 0.3 0.5 0.4 Tax credits and incentives (0.2) (0.7) (6.2) U.S. federal tax reform impact — — (2.6) Other — (0.3) (0.9) Effective tax rate 27.1 % 27.7 % 18.9 % Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2020 and 2019 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the basis of such assets, liabilities and equity as measured by tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities: December 31, 2020 December 31, 2019 Deferred tax assets Net operating loss carryforward - U.S. (a) $ 15 $ 371 Net operating loss carryforward - non-U.S. (b) 150 178 Market value difference of loan portfolio 741 310 Accruals 86 115 Tax credits (c) 466 839 Other 282 185 Total deferred tax assets before valuation allowance 1,740 1,998 Less: valuation allowance (291) (279) Total deferred tax assets 1,449 1,719 Deferred tax liabilities Depreciable assets 2,038 2,177 Deferred acquisition costs 109 123 Other 160 152 Total deferred tax liabilities 2,307 2,452 Net deferred tax liability $ (858) $ (733) _________________ (a) Includes tax-effected operating losses of $15 million expiring through 2042 at December 31, 2020. (b) Includes tax-effected operating losses of $125 million expiring through 2040 and $25 million that may be carried forward indefinitely at December 31, 2020. (c) Includes tax credits of $466 million expiring through 2040 at December 31, 2020. We are included in GM’s consolidated U.S. federal income tax return and certain states’ income tax returns. Net operating losses and certain tax credits generated by us have been utilized by GM; however, income tax expense and deferred tax balances are presented in these financial statements as if we filed our own tax returns in each jurisdiction. As of December 31, 2020, we have $291 million in valuation allowances against deferred tax assets in U.S. jurisdictions. The increase in valuation allowance of $12 million is primarily due to an increase in foreign tax credits. Unrecognized Tax Benefits Years Ended December 31, 2020 2019 2018 Beginning balance $ 57 $ 50 $ 54 Additions to prior years' tax positions — 1 — Reductions to prior years' tax positions (1) — — Additions to current year tax positions 6 7 3 Changes in tax positions due to lapse of statutory limitations 3 (1) (5) Foreign currency translation (3) — (2) Ending balance $ 62 $ 57 $ 50 At December 31, 2020, 2019 and 2018, there were $40 million, $41 million and $37 million of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate. We recognize accrued interest and penalties associated with uncertain tax positions as a component of the income tax provision. Accrued interest and penalties are included within other liabilities on the consolidated balance sheets. At December 31, 2020 and 2019, we had liabilities of $57 million and $78 million for income tax-related interest and penalties. At December 31, 2020, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. Other Matters 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 December 31, 2020, we had $244 million in related party taxes payable for federal and state tax liabilities. At December 31, 2019, we had $4 million in related party taxes payable for state tax liabilities. The increase in federal tax liability is due to the full utilization of net operating loss carryforwards. Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2011 to 2020 with various tax jurisdictions. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and/or recognition of expenses, or the sustainability of income tax credits. Certain of our state and foreign tax returns are currently under examination in various jurisdictions. |
Supplemental Information for th
Supplemental Information for the Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information for the Consolidated Statements of Cash Flows | Supplemental Information for the Consolidated Statements of Cash Flows Cash payments for interest costs and income taxes consist of the following: Years Ended December 31, 2020 2019 2018 Interest costs (none capitalized) $ 2,947 $ 3,475 $ 2,941 Income taxes $ 97 $ 60 $ 68 Non-cash investing items consist of the following: Years Ended December 31, 2020 2019 2018 Subvention receivable from GM (a) $ 642 $ 676 $ 727 Commercial loan funding payable to GM (a) $ 23 $ 74 $ 61 _________________ (a) Refer to Note 2 for further information. |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | Segment Reporting and Geographic Information 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. Key operating data for our operating segments were as follows: Year Ended December 31, 2020 North America International Total Total revenue $ 12,851 $ 980 $ 13,831 Operating expenses 1,184 306 1,490 Leased vehicle expenses 5,834 48 5,882 Provision for loan losses 653 228 881 Interest expense 2,717 306 3,023 Equity income — 147 147 Income before income taxes $ 2,463 $ 239 $ 2,702 Year Ended December 31, 2019 North America International Total Total revenue $ 13,318 $ 1,236 $ 14,554 Operating expenses 1,172 392 1,564 Leased vehicle expenses 6,634 51 6,685 Provision for loan losses 569 157 726 Interest expense 3,171 470 3,641 Equity income — 166 166 Income before income taxes $ 1,772 $ 332 $ 2,104 Year Ended December 31, 2018 North America International Total Total revenue $ 12,771 $ 1,245 $ 14,016 Operating expenses 1,125 397 1,522 Leased vehicle expenses 6,879 38 6,917 Provision for loan losses 490 152 642 Interest expense 2,735 490 3,225 Equity income — 183 183 Income before income taxes $ 1,542 $ 351 $ 1,893 December 31, 2020 December 31, 2019 North International Total North International Total Finance receivables, net $ 53,332 $ 5,058 $ 58,390 $ 46,679 $ 6,794 $ 53,473 Leased vehicles, net $ 39,656 $ 163 $ 39,819 $ 41,881 $ 174 $ 42,055 Total assets $ 105,507 $ 8,318 $ 113,825 $ 99,453 $ 9,764 $ 109,217 The following table summarizes information concerning principal geographic areas: At and For the Years Ended December 31, 2020 2019 2018 Revenue Long-Lived Assets (a) Revenue Long-Lived Assets (a) Revenue Long-Lived Assets (a) U.S. $ 12,178 $ 36,773 $ 12,672 $ 39,509 $ 12,158 $ 41,320 Non-U.S. (b) 1,653 3,230 1,882 2,772 1,858 2,490 Total consolidated $ 13,831 $ 40,003 $ 14,554 $ 42,281 $ 14,016 $ 43,810 _________________ (a) Long-lived assets include $39.8 billion, $42.1 billion, and $43.6 billion of vehicles on operating leases at December 31, 2020, 2019 and 2018 . |
Regulatory Capital and Other Re
Regulatory Capital and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital and Other Regulatory Matters [Abstract] | |
Regulatory Capital and Other Regulatory Matters | Regulatory Capital and Other Regulatory MattersWe are required to comply with a wide variety of laws and regulations. Certain of our entities operate in international markets as either banks or regulated finance companies that are subject to regulatory restrictions. These regulatory restrictions, among other things, require that certain of these entities meet minimum capital requirements and may restrict dividend distributions and ownership of certain assets. We were in compliance with all regulatory capital requirements as most recently reported. Our most significant regulated international bank, located in Brazil, had a most recently reported capital ratio of 34.3% and the minimum capital requirement was 9.3%. Total assets of our regulated international banks and finance companies were approximately $6.2 billion and $7.8 billion at December 31, 2020 and 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
History and Operations | History and Operations We have been operating in the automobile finance business in the U.S. since September 1992 and have been a wholly-owned subsidiary of GM since October 2010. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain SPEs utilized in secured financing transactions, which are considered VIEs. All intercompany transactions and accounts have been eliminated in consolidation. Except as otherwise specified, dollar amounts presented within tables are stated in millions. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. |
Cash Equivalents | Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with original maturities of 90 days or less. |
Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt | Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt Our commercial finance receivables are primarily comprised of floorplan financing, which are loans to dealers to finance vehicle inventory, also known as wholesale or inventory financing. In our experience, these loans are typically repaid within 90 days of when the credit is extended. Furthermore, we typically have the unilateral ability to call the loans and receive payment within 60 days of the call. Therefore, the presentation of the cash flows related to commercial finance receivables is reflected on the consolidated statements of cash flows as "Net collections (funding) of commercial finance receivables." |
Retail Finance Receivables and the Allowance for Loan Losses | Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period (vintage) and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of his or her prior credit usage, structure of the loan and other information. The output of the scorecards rank-orders consumers from those that are least likely to default to those that are most likely to default. By further dividing the portfolio into pools based on internal credit scores, we are better able to distinguish expected credit performance for different credit risks. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses on our retail finance receivables portfolio. We use static pool modeling techniques to determine the allowance for loan losses expected over the remaining life of the receivables, which is supplemented by management judgment. We assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is reflective of losses that are expected to occur in the forecasted environment. Expected losses are estimated for groups of accounts aggregated by internal credit score and monthly vintage. Generally, the expected losses are projected based on historical loss experience over the last 10 years, more heavily weighted toward recent performance to result in an estimate that is more reflective of the current internal and external environments. We consider forecast economic conditions over a reasonable and supportable forecast period. We determine the expected remaining life of the finance receivables to be a reasonable and supportable forecast horizon, primarily due to the relatively short weighted average life of retail finance receivables. We determined the economic factors that have the largest impact on expected losses include unemployment rates, interest rate spreads, disposable personal income, and growth rates in gross domestic products. We use forecasts for our chosen factors provided by a leading economic research firm. We compare the forecasts to consensus forecasts to assess for reasonableness and may use one or more forecast scenarios provided by the research firm. Troubled debt restructurings (TDRs) are grouped separately for purposes of measuring the allowance. The allowance for TDRs uses static pool modeling techniques, similar to non-TDR retail finance receivables, to determine the expected loss amount. The expected cash flows of the receivables are then discounted at the original weighted average effective interest rate of the pool. Factors considered when estimating the TDR allowance are based on an evaluation of historical and current information, and may be supplemented by management judgment. While we expect certain of our finance receivables to become TDRs, there is typically no delay between the point at which we become aware that a receivable is expected to become a TDR and when the receivable actually qualifies as a TDR. Therefore, our TDR portfolio does not include any receivables that are expected to become TDRs. Since the onset of the COVID-19 pandemic, we offered payment deferrals (typically for 60 days) and in many cases waived our deferral policies and guidelines for customers impacted by the pandemic. Accounts that were in current standing at the time of the deferral and that have not received cumulative payment deferrals of more than 180 days are excluded from TDR classification. We believe these factors are relevant in estimating expected losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current and forecast economic environments. Assumptions regarding credit losses are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumptions increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. |
Commercial Finance Receivables and the Allowance for Loan Losses | Commercial Finance Receivables and the Allowance for Loan Losses Our commercial lending offerings consist of floorplan financing as well as dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, and to purchase and/or finance dealership real estate. Commercial finance receivables are carried at amortized cost, net of allowance for loan losses and any amounts held under a cash management program. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses in the commercial finance receivables portfolio. We establish the allowance for loan losses based on historical loss experience, as well as the forecast for industry vehicle sales, which is the economic indicator that we believe has the largest impact on expected losses. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally developed risk rating system. Dealers' financial and operating metrics are regularly scored and further evaluated to derive a risk rating. Based on dealer risk ratings, we establish probability of default and loss given default, and also determine if any specific dealer loan requires additional reserves. |
Charge-off Policy | Charge-off Policy Retail finance receivables are generally charged off in the month in which the account becomes 120 days contractually delinquent if we have not yet recorded a repossession charge-off. Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due. |
Impaired Finance Receivables - TDRs | Impaired Finance Receivables - TDRs In evaluating whether a loan modification constitutes a TDR, our policy for retail loans is that (i) the modification must constitute a concession and (ii) the debtor must be experiencing financial difficulties. In accordance with our policies and guidelines, we, at times, offer payment deferrals to customers. Each deferral allows the consumer to move up to two delinquent monthly payments to the end of the loan generally by paying a fee (approximately the interest portion of the payment deferred, except where state law provides for a lesser amount). A loan that is deferred two or more times would be considered significantly delayed and therefore meets the definition of a concession. A loan currently in payment default as the result of being delinquent would also represent a debtor experiencing financial difficulties. Therefore, considering these two factors, we have determined that the second deferment granted by us on a retail loan will be considered a TDR and the loan impaired. Accounts in Chapter 13 bankruptcy that have an interest rate or principal adjustment as part of a confirmed bankruptcy plan will also be considered TDRs. Commercial receivables subject to forbearance, moratoriums, extension agreements, or other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral are classified as TDRs. We do not grant concessions on the principal balance of dealer loans. |
Leased Vehicles | Leased Vehicles As lessor, we have investments in leased vehicles recorded as operating leases. Leased vehicles consist of automobiles leased to retail customers and are carried at amortized cost less unearned manufacturer subvention payments, which are received up front. Depreciation expense is recorded on a straight-line basis over the term of the lease agreement to the estimated residual value. Manufacturer subvention is earned on a straight-line basis as a reduction to depreciation expense. Generally, the lessee may purchase the leased vehicle at the maturity of the lease by paying the purchase price stated in the lease agreement, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to a dealer by the lease's scheduled maturity date. Extensions may be granted to the lessee for up to six months. If the lessee extends the maturity date on their lease agreement, the lessee is responsible for additional monthly payments until the leased vehicle is returned or purchased. Since the lessee is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the value of the vehicle is lower than the residual value estimated at lease inception. We estimate the expected residual value based on third-party data that considers various data points and assumptions, including, but not limited to, recent auction values, the expected future volume of returning leased vehicles, used vehicle prices, manufacturer incentive programs and fuel prices. Changes in the expected residual value result in increased or decreased depreciation of the leased asset over the remaining term of the lease. Upon disposition, a gain or loss is recorded for any difference between the carrying amount of the lease and the proceeds from the disposition of the asset, including any insurance proceeds. Under the accounting for impairment or disposal of long-lived assets, vehicles on operating leases are evaluated by asset group for impairment. We aggregate leased vehicles into asset groups based on make, year and model. When asset group indicators of impairment exist and aggregate future cash flows from the operating lease, including the expected realizable fair value of the leased assets at the end of the lease, are less than the carrying amount of the lease asset group, an immediate impairment write-down is recognized if the difference is deemed not recoverable. |
Variable Interest Entities - Securitizations and Credit Facilities | Variable Interest Entities (VIEs) – Securitizations and Credit Facilities We finance a significant portion of our loan and lease origination volume through the use of our credit facilities and execution of securitization transactions, which both utilize Special Purpose Entities (SPEs). In our credit facilities, we transfer finance receivables and lease-related assets to SPEs. These subsidiaries, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of the assets. In our securitizations, we transfer finance receivables and lease-related assets to SPEs structured as securitization trusts (Trusts), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. Our continuing involvement with the credit facilities and Trusts consists of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under U.S. GAAP and are consolidated because we have: (i) power over the significant activities of the entities and (ii) an obligation to absorb losses and the right to receive benefits from the VIEs that could be significant to the VIEs. Accordingly, we are the primary beneficiary of the VIEs and the finance receivables, lease-related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. Refer to Note 3 , Note 7 and Note 8 for further information. We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables, lease-related assets and cash held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. We recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in securitization transactions, and record a provision for loan losses to recognize loan losses expected over the remaining life of the securitized assets. Cash pledged to support securitization transactions is deposited to a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less. |
Property and Equipment | Property and Equipment Property and equipment is carried at amortized cost. Depreciation is generally provided on a straight-line basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain or loss is included in operating expenses. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and improvements are capitalized. |
Goodwill | Goodwill Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that trigger a review. The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. |
Derivative Financial Instruments | Derivative Financial Instruments We recognize all of our derivative financial instruments as either assets or liabilities on our consolidated balance sheets at fair value. We do not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are generally expressed in notional principal or contract amounts that are much larger than the amounts potentially at risk for nonpayment by counterparties. Therefore, in the event of nonperformance by the counterparties, our credit exposure is limited to the uncollected interest and the market value related to the instruments that have become favorable to us, to the extent that market values are not collateralized. We maintain a policy of requiring that all derivative instruments be governed by an International Swaps and Derivatives Association Master Agreement. We enter into derivative instruments and establish risks limits with counterparties that we believe are creditworthy and generally settle on a net basis. In addition, management performs a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Interest Rate Swap Agreements We utilize interest rate swap agreements to convert certain floating rate exposures to fixed rate or certain fixed-rate exposures to floating rate in order to manage our interest rate exposure. Cash flows from derivatives used to manage interest rate risk are classified as operating activities. We designate certain pay-fixed, receive-floating interest rate swaps as cash flow hedges of variable rate debt. The risk being hedged is the risk of variability in interest payments attributable to changes in interest rates. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedge in accumulated other comprehensive income/loss. We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related hedge is also recorded in interest expense. Interest Rate Cap and Floor Agreements We may purchase interest rate cap and floor agreements to limit floating rate exposures in our credit facilities. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap or floor agreement in order to offset the premium paid to purchase the interest rate cap or floor agreement and thus retain the interest rate risk. Because the interest rate cap and floor agreements entered into by us or our SPEs do not qualify for hedge accounting, changes in the fair value of interest rate cap and floor agreements purchased by the SPEs and interest rate cap and floor agreements sold by us are recorded in interest expense. Foreign Currency Swap Agreements Our policy is to minimize exposure to changes in currency exchange rates. To meet funding objectives, we borrow in a variety of currencies. We face exposure to currency exchange rates when the currency of our earning assets differs from the currency of the debt funding those assets. When possible, we fund earning assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency swaps to convert our debt obligations to the local currency of the earning assets being financed. We designate certain pay-fixed, receive-fixed cross-currency swaps as cash flow hedges of foreign currency-denominated debt. The risk being hedged is the variability in the cash flows for the payments of both principal and interest attributable to changes in foreign currency exchange rates. If the hedge relationship is deemed to be highly effective, we record the effective portion of changes in the fair value of the swap in accumulated other comprehensive income/loss. When the hedged cash flows affect earnings via principal remeasurement or accrual of interest expense, we reclassify these amounts to operating expenses or interest expense. Any ineffective portion of a cash flow hedge is recorded to interest expense immediately. We designate certain pay-float, receive-float cross-currency swaps as fair value hedges of foreign currency-denominated debt. The risk being hedged is the foreign exchange risk associated with the remeasurement of the foreign currency-denominated debt. We assess effectiveness of these hedge relationships based on changes in fair value attributable only to changes in currency exchange rates. If the hedge relationship is deemed to be highly effective, we record changes in the fair value of the swap attributable to changes in currency exchange rates to operating expenses, changes in the fair value of the swap attributable to components excluded from the assessment of hedge effectiveness in accumulated other comprehensive income/loss, and reclassify interest accrual components to interest expense. |
Fair Value | Fair Value Financial instruments are considered Level 1 when quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Financial instruments are considered Level 2 when inputs other than quoted prices are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
Income Taxes | Income Taxes We account for income taxes on a separate return basis using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion of or the entire deferred tax asset will not be realized. |
Revenue Recognition | Revenue Recognition Finance charge income earned on finance receivables is recognized using the effective interest method. Fees and commissions received (including incentive payments) and direct costs of originating loans are generally deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are fully charged off or paid in full. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received on nonaccrual loans are first applied to any fees due, then to any interest due and then any remaining amounts are applied to principal. Interest accrual generally resumes once an account has received payments bringing the delinquency status to less than 60 days past due or, for TDRs, when repayment is reasonably assured based on the modified terms of the loan. Accrual of finance charge income on commercial finance receivables is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt exists about the full collectability of contractually agreed upon principal and interest. Payments received on nonaccrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the account fully current and collection of contractual principal and interest is reasonably assured (including amounts previously charged off). Rental income earned on leased vehicles, which includes lease origination fees, net of lease origination costs, is recognized on a straight-line basis over the term of the lease agreement. Gains or losses realized upon disposition of off-lease vehicles, including any payments received from lessees upon lease termination, are included in leased vehicle expenses. |
Parent Company Stock-Based Compensation | Parent Company Stock-Based Compensation We measure and record compensation expense for parent company stock-based compensation awards based on the award's estimated fair value. We record compensation expense over the applicable vesting period of an award. Refer to Note 12 |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Effective January 1, 2020, we adopted Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which requires entities to use a new impairment model based on current expected credit losses (CECL) rather than incurred losses. Estimated credit losses under CECL consider relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of finance receivables, resulting in recognition of lifetime expected credit losses upon origination of the related finance receivable. We adopted ASU 2016-13 on a modified retrospective basis on January 1, 2020 by recognizing an after-tax cumulative-effect adjustment to the opening balance of retained earnings of $643 million. The application of ASU 2016-13 increased our allowance for loan losses by $801 million. Refer to Note 3 for information on our finance receivables at December 31, 2020. Our accounting policies changed significantly with the adoption of CECL. Prior to January 1, 2020, the allowance for loan losses was based on incurred losses in accordance with accounting policies disclosed in Note 1 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which provides optional expedients and exceptions for applying U.S. GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. Effective July 1, 2020, we adopted ASU 2020-04 on a prospective basis. The adoption of, and future elections under, ASU 2020-04 are not expected to have a material impact on our consolidated financial statements as the standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present related party transactions: Balance Sheet Data December 31, 2020 December 31, 2019 Commercial finance receivables, net due from dealers consolidated by GM (a) $ 398 $ 478 Subvention receivable (b) $ 642 $ 676 Commercial loan funding payable (c) $ 23 $ 74 Taxes payable (c) $ 244 $ 4 Years Ended December 31, Income Statement Data 2020 2019 2018 Interest subvention earned on retail finance receivables (d) $ 638 $ 527 $ 487 Interest subvention earned on commercial finance receivables (d) $ 41 $ 61 $ 67 Leased vehicle subvention earned (e) $ 3,042 $ 3,273 $ 3,274 _________________ (a) Included in finance receivables, net. (b) Included in related party receivables. We received subvention payments from GM of $3.9 billion , $4.1 billion and $3.8 billion during 2020, 2019 and 2018. (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) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Finance Receivables Portfolio | December 31, 2020 December 31, 2019 Retail finance receivables Retail finance receivables, net of fees (a) $ 51,288 $ 42,268 Less: allowance for loan losses (1,915) (866) Total retail finance receivables, net 49,373 41,402 Commercial finance receivables Commercial finance receivables, net of fees (b) 9,080 12,149 Less: allowance for loan losses (63) (78) Total commercial finance receivables, net 9,017 12,071 Total finance receivables, net $ 58,390 $ 53,473 Fair value utilizing Level 2 inputs $ 9,017 $ 12,071 Fair value utilizing Level 3 inputs $ 51,645 $ 42,012 ________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs. (b) Net of dealer cash management balances of $1.4 billion and $1.2 billion at December 31, 2020 and 2019. |
Allowance for Credit Losses on Financing Receivables | A summary of the activity in the allowance for retail loan losses is as follows: Years Ended December 31, 2020 2019 2018 Allowance for retail loan losses beginning balance $ 866 $ 844 $ 889 Impact of adopting ASU 2016-13 ( Note 1 ) 801 — — Provision for loan losses 880 690 624 Charge-offs (1,149) (1,218) (1,196) Recoveries 537 548 536 Foreign currency translation (20) 2 (9) Allowance for retail loan losses ending balance $ 1,915 $ 866 $ 844 |
Financing Receivable Credit Quality Indicators | A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at December 31, 2020 is as follows: Year of Origination 2020 2019 2018 2017 2016 Prior Total Percent Prime - FICO Score 680 and greater $ 18,685 $ 7,033 $ 4,491 $ 1,917 $ 555 $ 119 $ 32,800 64.0 % Near-prime - FICO Score 620 to 679 3,695 2,097 1,232 603 225 83 7,935 15.4 Sub-prime - FICO Score less than 620 3,803 2,920 1,740 1,173 610 307 10,553 20.6 Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 % Effective January 1, 2020, we updated our commercial risk model and our risk rating categories as follows: Dealer Risk Rating Description I Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments. II Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring. III Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected. IV Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable. Year of Origination (a) Dealer Risk Rating Revolving 2020 2019 2018 2017 2016 Prior Total Percent I $ 7,210 $ 579 $ 179 $ 77 $ 110 $ 43 $ 19 $ 8,217 90.5 % II 508 2 18 11 15 18 34 606 6.7 III 203 — 8 29 2 11 — 253 2.8 IV — — — — — — 4 4 — Balance at end of period $ 7,921 $ 581 $ 205 $ 117 $ 127 $ 72 $ 57 $ 9,080 100.0 % ________________ (a) Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination. |
Past Due Financing Receivables | The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2020: Year of Origination 2020 2019 2018 2017 2016 Prior Total Percent 0 - 30 days $ 25,894 $ 11,591 $ 7,131 $ 3,454 $ 1,249 $ 421 $ 49,740 97.0 % 31 - 60 days 210 325 235 170 102 61 1,103 2.1 Greater than 60 days 72 123 90 64 37 26 412 0.8 Finance receivables more than 30 days delinquent 282 448 325 234 139 87 1,515 2.9 In repossession 7 11 7 5 2 1 33 0.1 Finance receivables more than 30 days delinquent or in repossession 289 459 332 239 141 88 1,548 3.0 Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 % |
Troubled Debt Restructurings on Financing Receivables | Additional TDR activity is presented below: Years Ended December 31, 2020 2019 2018 Number of loans classified as TDRs during the period 57,524 69,863 69,298 Outstanding amortized cost of loans classified as TDRs during the period $ 1,057 $ 1,269 $ 1,267 |
Leased Vehicles (Tables)
Leased Vehicles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Summary of Leased Vehicles | December 31, 2020 December 31, 2019 Leased vehicles $ 58,915 $ 62,767 Manufacturer subvention (8,915) (9,731) Net capitalized cost 50,000 53,036 Less: accumulated depreciation (10,181) (10,981) Leased vehicles, net $ 39,819 $ 42,055 |
Schedule of Future Payments to be Received | The following table summarizes minimum rental payments due to us as lessor under operating leases at December 31, 2020: Years Ending December 31, 2021 2022 2023 2024 2025 Thereafter Total Lease payments under operating leases $ 6,142 $ 3,783 $ 1,441 $ 112 $ 2 $ — $ 11,480 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amounts of goodwill by segment: Years Ended December 31, 2020 2019 2018 North America International Total North America International Total North America International Total Beginning balance $ 1,105 $ 80 $ 1,185 $ 1,105 $ 81 $ 1,186 $ 1,105 $ 92 $ 1,197 Foreign currency translation — (12) (12) — (1) (1) — (11) (11) Ending balance $ 1,105 $ 68 $ 1,173 $ 1,105 $ 80 $ 1,185 $ 1,105 $ 81 $ 1,186 |
Equity in Net Assets of Non-c_2
Equity in Net Assets of Non-consolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information for our joint ventures | The following tables present certain aggregated financial data of our joint ventures: Summarized Balance Sheet Data December 31, 2020 December 31, 2019 Finance receivables, net $ 22,063 $ 18,358 Total assets $ 24,722 $ 19,594 Debt $ 18,236 $ 14,321 Total liabilities $ 21,177 $ 16,352 Years Ended December 31, Summarized Operating Data 2020 2019 2018 Finance charge income $ 1,447 $ 1,369 $ 1,246 Provision for loan losses $ 162 $ 47 $ 21 Income before income taxes $ 572 $ 630 $ 696 Net income $ 426 $ 473 $ 522 The following table summarizes our direct ownership interests in joint ventures: Joint Ventures December 31, 2020 December 31, 2019 SAIC-GMAC Automotive Finance Company Limited (SAIC–GMAC) 35 % 35 % SAIC-GMF Leasing Co. Ltd. 35 % 35 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Secured debt Revolving credit facilities $ 3,733 $ 3,735 $ 6,152 $ 6,160 Securitization notes payable 36,249 36,645 33,807 34,000 Total secured debt 39,982 40,380 39,959 40,160 Unsecured debt Senior notes 46,798 48,922 43,679 44,937 Credit facilities 1,535 1,531 1,936 1,936 Other unsecured debt 4,110 4,115 3,364 3,366 Total unsecured debt 52,443 54,568 48,979 50,239 Total secured and unsecured debt $ 92,425 $ 94,948 $ 88,938 $ 90,399 Fair value utilizing Level 2 inputs $ 92,922 $ 88,481 Fair value utilizing Level 3 inputs $ 2,026 $ 1,918 |
Schedule of Maturities of Long-term Debt | The following table presents the expected scheduled principal and interest payments under our contractual debt obligations: Years Ending December 31, 2021 2022 2023 2024 2025 Thereafter Total Secured debt $ 21,040 $ 10,884 $ 5,493 $ 2,375 $ 256 $ — $ 40,048 Unsecured debt 14,702 8,428 9,774 5,433 6,353 7,277 51,967 Interest payments 2,072 1,359 970 605 350 443 5,799 $ 37,814 $ 20,671 $ 16,237 $ 8,413 $ 6,959 $ 7,720 $ 97,814 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Securitization and Credit Facility VIE [Member] | |
Variable Interest Entity [Line Items] | |
Summary of Consolidated VIEs Assets and Liabilities | The following table summarizes the assets and liabilities related to our consolidated VIEs: December 31, 2020 December 31, 2019 Restricted cash (a) $ 2,639 $ 2,643 Finance receivables, net of fees $ 32,575 $ 35,392 Lease related assets $ 16,322 $ 14,464 Secured debt $ 39,424 $ 39,771 _______________ (a) Included in other assets. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts: December 31, 2020 December 31, 2019 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 swaps $ 10,064 $ 463 $ 13 $ 9,458 $ 234 $ 23 Foreign currency swaps 1,958 128 9 1,796 22 71 Cash flow hedges Interest rate swaps 921 — 27 590 — 6 Foreign currency swaps 5,626 278 47 4,429 40 119 Derivatives not designated as hedges Interest rate contracts 110,997 954 576 92,400 340 300 Total (b) $ 129,566 $ 1,823 $ 672 $ 108,673 $ 636 $ 519 _________________ (a) The gross fair value amounts 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 derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At December 31, 2020 and 2019 , the fair value of assets and liabilities available for offset was $501 million and $302 million. At December 31, 2020 and 2019 , we held $728 million and $210 million of collateral from counterparties that is available for netting against our asset positions. At December 31, 2020 and 2019 , we posted $139 million and $89 million of collateral to counterparties that is available for netting against our liability positions. |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following amounts were recorded in the consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships: Carrying Amount of Cumulative Amount of Fair Value (a) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Unsecured debt $ 23,315 $ 20,397 $ (739) $ (77) _________________ (a) Includes $200 million of unamortized gains and $69 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at December 31, 2020 and 2019. |
Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | The table below presents the effect of our derivative financial instruments and related hedged items, as applicable, in the consolidated statements of income: Years Ended December 31, 2020 2019 2018 Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Interest Expense (a) Operating Expenses (b) Fair value hedges Hedged items - interest rate swaps $ (500) $ — $ (569) $ — $ 83 $ — Interest rate swaps 250 — 355 — (102) — Hedged items - foreign currency swaps (c) — (161) — 33 — (17) Foreign currency swaps (31) 167 (59) (28) (5) 18 Cash flow hedges Interest rate swaps (14) — 5 — 14 — Hedged items - foreign currency swaps (c) — (457) — (3) — 114 Foreign currency swaps (108) 457 (87) 3 (49) (114) Derivatives not designated as hedges Interest rate contracts 237 — 142 — 26 — Foreign currency swaps — — — — (44) (142) Total (losses) income recognized $ (166) $ 6 $ (213) $ 5 $ (77) $ (141) _________________ (a) Total interest expense was $3.0 billion, $3.6 billion and $3.2 billion for 2020, 2019 and 2018. (b) Total operating expenses were $1.5 billion, $1.6 billion and $1.5 billion for 2020, 2019 and 2018. (c) Transaction activity recorded in operating expenses related to foreign currency-denominated loans. The tables below present the effect of our derivative financial instruments in the consolidated statements of comprehensive income: Gains (Losses) Recognized In Years Ended December 31, 2020 2019 2018 Fair value hedges Foreign currency swaps $ (19) $ (41) $ (3) Cash flow hedges Interest rate swaps (18) (6) 3 Foreign currency swaps 160 (113) (89) Total $ 123 $ (160) $ (89) (Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income (a)(b) Years Ended December 31, 2020 2019 2018 Fair value hedges Foreign currency swaps $ 20 $ 41 $ 3 Cash flow hedges Interest rate swaps 10 (3) (7) Foreign currency swaps (261) 64 86 Total $ (231) $ 102 $ 82 _________________ (a) All amounts reclassified from accumulated other comprehensive loss were recorded to operating expenses or interest expense. (b) During the next twelve months, we estimate $83 million in losses will be reclassified into pretax earnings from derivatives designated for hedge accounting. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Common and Preferred Stock | December 31, 2020 December 31, 2019 Common Stock Number of shares authorized 10,000,000 10,000,000 Number of shares issued and outstanding 5,050,000 5,050,000 December 31, 2020 December 31, 2019 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 500,000 500,000 Series C 500,000 — |
Changes in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the significant components of accumulated other comprehensive loss: Years Ended December 31, 2020 2019 2018 Unrealized (loss) gain on hedges Beginning balance $ (49) $ 9 $ 16 Change in value of hedges, net of tax (108) (58) (7) Ending balance (157) (49) 9 Defined benefit plans Beginning balance 1 1 1 Unrealized gain (loss) on subsidiary pension, net of tax — — — Ending balance 1 1 1 Foreign currency translation adjustment Beginning balance (1,071) (1,076) (785) Translation (loss) gain (82) 5 (291) Ending balance (1,153) (1,071) (1,076) Total accumulated other comprehensive loss $ (1,309) $ (1,119) $ (1,066) |
Parent Company Stock-Based Co_2
Parent Company Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes information about RSUs, PSUs and stock options granted to our employees and key executive officers under GM's stock-based compensation programs (shares in thousands): Year Ended December 31, 2020 Shares Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Outstanding at January 1, 2020 2,777 $ 30.26 1.3 Granted 1,188 $ 31.19 Settled (990) $ 28.72 Forfeited or expired (35) $ 42.18 Outstanding at December 31, 2020 (a) 2,940 $ 31.01 1.4 Unvested and expected to vest at December 31, 2020 1,750 $ 38.07 1.7 Vested and payable at December 31, 2020 1,083 $ 19.39 ________________ (a) Includes the target amount of PSUs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Income Taxes | The following table summarizes income before income taxes and equity income: Years Ended December 31, 2020 2019 2018 U.S. income $ 2,280 $ 1,599 $ 1,421 Non-U.S. income 275 339 289 Income before income taxes and equity income $ 2,555 $ 1,938 $ 1,710 |
Summary of Income Tax Expense (Benefit) | Income Tax Expense Years Ended December 31, 2020 2019 2018 Current income tax expense U.S. federal $ 129 $ — $ — U.S. state and local 143 16 1 Non-U.S. 67 81 83 Total current 339 97 84 Deferred income tax expense U.S. federal 299 330 133 U.S. state and local 5 71 75 Non-U.S. 50 39 31 Total deferred 354 440 239 Total income tax provision $ 693 $ 537 $ 323 |
Effective Income Tax Rate Reconciliation | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Non-U.S. income taxed at other than the U.S. federal statutory rate 1.5 2.1 2.8 State and local income taxes 4.1 4.0 4.2 U.S. tax on non-U.S. earnings 0.4 1.1 0.2 Valuation allowance 0.3 0.5 0.4 Tax credits and incentives (0.2) (0.7) (6.2) U.S. federal tax reform impact — — (2.6) Other — (0.3) (0.9) Effective tax rate 27.1 % 27.7 % 18.9 % |
Schedule of Deferred Tax Assets and Liabilities | The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities: December 31, 2020 December 31, 2019 Deferred tax assets Net operating loss carryforward - U.S. (a) $ 15 $ 371 Net operating loss carryforward - non-U.S. (b) 150 178 Market value difference of loan portfolio 741 310 Accruals 86 115 Tax credits (c) 466 839 Other 282 185 Total deferred tax assets before valuation allowance 1,740 1,998 Less: valuation allowance (291) (279) Total deferred tax assets 1,449 1,719 Deferred tax liabilities Depreciable assets 2,038 2,177 Deferred acquisition costs 109 123 Other 160 152 Total deferred tax liabilities 2,307 2,452 Net deferred tax liability $ (858) $ (733) _________________ (a) Includes tax-effected operating losses of $15 million expiring through 2042 at December 31, 2020. (b) Includes tax-effected operating losses of $125 million expiring through 2040 and $25 million that may be carried forward indefinitely at December 31, 2020. |
Summary of Unrecognized Tax Benefits Activity | Unrecognized Tax Benefits Years Ended December 31, 2020 2019 2018 Beginning balance $ 57 $ 50 $ 54 Additions to prior years' tax positions — 1 — Reductions to prior years' tax positions (1) — — Additions to current year tax positions 6 7 3 Changes in tax positions due to lapse of statutory limitations 3 (1) (5) Foreign currency translation (3) — (2) Ending balance $ 62 $ 57 $ 50 |
Supplemental Information for _2
Supplemental Information for the Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Payments for Interest Costs and Income Taxes | Cash payments for interest costs and income taxes consist of the following: Years Ended December 31, 2020 2019 2018 Interest costs (none capitalized) $ 2,947 $ 3,475 $ 2,941 Income taxes $ 97 $ 60 $ 68 |
Noncash Activity | Non-cash investing items consist of the following: Years Ended December 31, 2020 2019 2018 Subvention receivable from GM (a) $ 642 $ 676 $ 727 Commercial loan funding payable to GM (a) $ 23 $ 74 $ 61 _________________ (a) Refer to Note 2 for further information. |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Key operating data for our operating segments were as follows: Year Ended December 31, 2020 North America International Total Total revenue $ 12,851 $ 980 $ 13,831 Operating expenses 1,184 306 1,490 Leased vehicle expenses 5,834 48 5,882 Provision for loan losses 653 228 881 Interest expense 2,717 306 3,023 Equity income — 147 147 Income before income taxes $ 2,463 $ 239 $ 2,702 Year Ended December 31, 2019 North America International Total Total revenue $ 13,318 $ 1,236 $ 14,554 Operating expenses 1,172 392 1,564 Leased vehicle expenses 6,634 51 6,685 Provision for loan losses 569 157 726 Interest expense 3,171 470 3,641 Equity income — 166 166 Income before income taxes $ 1,772 $ 332 $ 2,104 Year Ended December 31, 2018 North America International Total Total revenue $ 12,771 $ 1,245 $ 14,016 Operating expenses 1,125 397 1,522 Leased vehicle expenses 6,879 38 6,917 Provision for loan losses 490 152 642 Interest expense 2,735 490 3,225 Equity income — 183 183 Income before income taxes $ 1,542 $ 351 $ 1,893 December 31, 2020 December 31, 2019 North International Total North International Total Finance receivables, net $ 53,332 $ 5,058 $ 58,390 $ 46,679 $ 6,794 $ 53,473 Leased vehicles, net $ 39,656 $ 163 $ 39,819 $ 41,881 $ 174 $ 42,055 Total assets $ 105,507 $ 8,318 $ 113,825 $ 99,453 $ 9,764 $ 109,217 |
Schedule of Operating Data by Geographical Areas | The following table summarizes information concerning principal geographic areas: At and For the Years Ended December 31, 2020 2019 2018 Revenue Long-Lived Assets (a) Revenue Long-Lived Assets (a) Revenue Long-Lived Assets (a) U.S. $ 12,178 $ 36,773 $ 12,672 $ 39,509 $ 12,158 $ 41,320 Non-U.S. (b) 1,653 3,230 1,882 2,772 1,858 2,490 Total consolidated $ 13,831 $ 40,003 $ 14,554 $ 42,281 $ 14,016 $ 43,810 _________________ (a) Long-lived assets include $39.8 billion, $42.1 billion, and $43.6 billion of vehicles on operating leases at December 31, 2020, 2019 and 2018 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Probable loss experience period | 10 years | |||
Extension term | 6 months | |||
Threshold period for resuming interest accrual on delinquent accounts | 60 days | |||
Total shareholders' equity | $ 13,598 | $ 12,726 | $ 11,659 | $ 10,294 |
Threshold for delinquent accounts | 90 days | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total shareholders' equity | (643) | 40 | ||
Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 1 year | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 30 years | |||
Retail Finance Receivables [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Contractually delinquent period | 120 days | |||
Number of delinquent payments that can be moved | payment | 2 | |||
Commercial Finance Receivables [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Typical repayment period | 90 days | |||
Contractually delinquent period | 360 days | |||
Commercial Finance Receivables [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Payment period after loan is called | 60 days | |||
Retained Earnings [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total shareholders' equity | $ 6,265 | 5,744 | $ 4,667 | 3,537 |
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total shareholders' equity | (643) | $ 40 | ||
Financing Receivable, Allowance for Credit Loss [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total shareholders' equity | $ 801 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Jan. 25, 2021 | Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party tax expense | $ 163,000,000 | ||||
GM [Member] | Purchase of Retail Finance Receivables [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases | $ 191,000,000 | $ 851,000,000 | $ 540,000,000 | ||
Junior Subordinated Revolving Credit Facility [Member] | General Motors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facilities - GM Related party facility | 1,000,000,000 | ||||
364-Day Revolving Credit Facility [Member] | General Motors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 2,000,000,000 | ||||
Line of Credit [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument term | 4 years | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | General Motors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 14,500,000,000 | ||||
Long-term line of credit | $ 0 | $ 0 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | General Motors [Member] | Three Year Revolving Credit Facility [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 4,000,000,000 | ||||
Debt instrument term | 3 years | 3 years | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | General Motors [Member] | Three Year Revolving Credit Facility Expiring April 2022 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 3,600,000,000 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | General Motors [Member] | Five Year Revolving Credit Facility [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument term | 5 years | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | General Motors [Member] | 364-Day Revolving Credit Facility [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 2,000,000,000 | ||||
Debt instrument term | 364 days | 364 days | |||
Line of Credit [Member] | Three Year Revolving Credit Facility [Member] | General Motors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 4,000,000,000 | ||||
Line of Credit [Member] | Five Year Revolving Credit Facility [Member] | General Motors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total borrowing capacity | $ 10,500,000,000 |
Related Party Transactions - Re
Related Party Transactions - Related Party Payables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commercial Finance Receivables [Member] | |||
Related Party Transaction [Line Items] | |||
Finance receivables, net | $ 9,017 | $ 12,071 | |
Retail Finance Receivables [Member] | |||
Related Party Transaction [Line Items] | |||
Finance receivables, net | 49,373 | 41,402 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Subvention receivable | 642 | 676 | |
Taxes payable | 244 | 4 | |
Leased vehicle subvention earned | 3,042 | 3,273 | $ 3,274 |
Affiliated Entity [Member] | Commercial Finance Receivables [Member] | |||
Related Party Transaction [Line Items] | |||
Finance receivables, net | 398 | 478 | |
Commercial loan funding payable | 23 | 74 | |
Interest subvention earned | 41 | 61 | 67 |
Affiliated Entity [Member] | Retail Finance Receivables [Member] | |||
Related Party Transaction [Line Items] | |||
Interest subvention earned | 638 | 527 | 487 |
GM [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 3,900 | $ 4,100 | $ 3,800 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) - Retail Finance Receivables [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrual of finance charge income | $ 714 | $ 875 | |
Nonaccrual loans | 301 | ||
Troubled debt restructurings | 2,200 | ||
TDR's - subsequent default | $ 28 | $ 37 | $ 38 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables, net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables, net | $ 58,390 | $ 53,473 | ||
Retail Finance Receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables | 51,288 | 42,268 | ||
Less: allowance for loan losses | (1,915) | (866) | $ (844) | $ (889) |
Finance receivables, net | 49,373 | 41,402 | ||
Commercial Finance Receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables | 9,080 | 12,149 | ||
Less: allowance for loan losses | (63) | (78) | ||
Finance receivables, net | 9,017 | 12,071 | ||
Dealer cash management balances | 1,400 | 1,200 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value utilizing inputs | 9,017 | 12,071 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value utilizing inputs | $ 51,645 | $ 42,012 |
Finance Receivables - Allowance
Finance Receivables - Allowance for Loan Losses (Details) - Retail Finance Receivables [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 866 | $ 844 | $ 889 |
Provision for loan losses | 880 | 690 | 624 |
Charge-offs | (1,149) | (1,218) | (1,196) |
Recoveries | 537 | 548 | 536 |
Foreign currency translation | 20 | (2) | (9) |
Balance at end of period | 1,915 | 866 | $ 844 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 801 | ||
Balance at end of period | $ 801 |
Finance Receivables - Credit Ri
Finance Receivables - Credit Risk Profile by FICO Score (Details) - Retail Finance Receivables [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 26,183 | |
2019 | 12,050 | |
2018 | 7,463 | |
2017 | 3,693 | |
2016 | 1,390 | |
Prior | 509 | |
Total | $ 51,288 | $ 42,268 |
Percent of portfolio | 100.00% | |
Prime - FICO Score 680 and greater [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 18,685 | |
2019 | 7,033 | |
2018 | 4,491 | |
2017 | 1,917 | |
2016 | 555 | |
Prior | 119 | |
Total | $ 32,800 | |
Percent of portfolio | 64.00% | |
Near-prime - FICO Score 620 to 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 3,695 | |
2019 | 2,097 | |
2018 | 1,232 | |
2017 | 603 | |
2016 | 225 | |
Prior | 83 | |
Total | $ 7,935 | |
Percent of portfolio | 15.40% | |
Sub-prime - FICO Score less than 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 3,803 | |
2019 | 2,920 | |
2018 | 1,740 | |
2017 | 1,173 | |
2016 | 610 | |
Prior | 307 | |
Total | $ 10,553 | |
Percent of portfolio | 20.60% |
Finance Receivables - Delinquen
Finance Receivables - Delinquency (Details) - Retail Finance Receivables [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 26,183 | |
2019 | 12,050 | |
2018 | 7,463 | |
2017 | 3,693 | |
2016 | 1,390 | |
Prior | 509 | |
Total | $ 51,288 | $ 42,268 |
Percent of portfolio | 100.00% | |
Total | 100.00% | |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 289 | |
2019 | 459 | |
2018 | 332 | |
2017 | 239 | |
2016 | 141 | |
Prior | 88 | |
Financing receivable past due | $ 1,548 | |
Financing receivable past due (percent) | 3.00% | |
Not Past Due [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 25,894 | |
2019 | 11,591 | |
2018 | 7,131 | |
2017 | 3,454 | |
2016 | 1,249 | |
Prior | 421 | |
Current, Total | $ 49,740 | |
Percent of portfolio | 97.00% | |
31 to 60 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 210 | |
2019 | 325 | |
2018 | 235 | |
2017 | 170 | |
2016 | 102 | |
Prior | 61 | |
Financing receivable past due | $ 1,103 | |
Financing receivable past due (percent) | 2.10% | |
Greater Than 60 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 72 | |
2019 | 123 | |
2018 | 90 | |
2017 | 64 | |
2016 | 37 | |
Prior | 26 | |
Financing receivable past due | $ 412 | |
Financing receivable past due (percent) | 0.80% | |
Financing Receivables, Greater than 30 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 282 | |
2019 | 448 | |
2018 | 325 | |
2017 | 234 | |
2016 | 139 | |
Prior | 87 | |
Financing receivable past due | $ 1,515 | |
Financing receivable past due (percent) | 2.90% | |
Financing Receivables, In Repossession [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 7 | |
2019 | 11 | |
2018 | 7 | |
2017 | 5 | |
2016 | 2 | |
Prior | 1 | |
Financing receivable past due | $ 33 | |
Financing receivable past due (percent) | 0.10% |
Finance Receivables - Troubled
Finance Receivables - Troubled Debt Restructurings (Details) - Retail Finance Receivables [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans classified as TDRs during the period | loan | 57,524 | 69,863 | 69,298 |
Outstanding amortized cost of loans classified as TDRs during the period | $ | $ 1,057 | $ 1,269 | $ 1,267 |
Finance Receivables - Credit _2
Finance Receivables - Credit Risk Profile by Dealer grouping of Commercial Finance Receivables (Details) - Commercial Finance Receivables [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 7,921 | |
2020 | 581 | |
2019 | 205 | |
2018 | 117 | |
2017 | 127 | |
2016 | 72 | |
Prior | 57 | |
Total | $ 9,080 | $ 12,149 |
Percent of portfolio | 100.00% | |
Floorplan Advances [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of revolving balance | 97.00% | |
I [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 7,210 | |
2020 | 579 | |
2019 | 179 | |
2018 | 77 | |
2017 | 110 | |
2016 | 43 | |
Prior | 19 | |
Total | $ 8,217 | |
Percent of portfolio | 90.50% | |
II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 508 | |
2020 | 2 | |
2019 | 18 | |
2018 | 11 | |
2017 | 15 | |
2016 | 18 | |
Prior | 34 | |
Total | $ 606 | |
Percent of portfolio | 6.70% | |
III [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 203 | |
2020 | 0 | |
2019 | 8 | |
2018 | 29 | |
2017 | 2 | |
2016 | 11 | |
Prior | 0 | |
Total | $ 253 | |
Percent of portfolio | 2.80% | |
IV [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving | $ 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 4 | |
Total | $ 4 | |
Percent of portfolio | 0.00% |
Leased Vehicles - Leased Vehicl
Leased Vehicles - Leased Vehicles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||
Less: accumulated depreciation | $ (351) | $ (287) | |
Leased vehicles, net | 184 | 226 | |
Assets Leased to Others [Member] | |||
Operating Leased Assets [Line Items] | |||
Leased vehicles | 58,915 | 62,767 | |
Manufacturer subvention | (8,915) | (9,731) | |
Net capitalized cost | 50,000 | 53,036 | |
Less: accumulated depreciation | (10,181) | (10,981) | |
Leased vehicles, net | 39,819 | 42,055 | |
Depreciation | $ 7,200 | $ 7,300 | $ 7,500 |
Leased Vehicles - Minimum renta
Leased Vehicles - Minimum rental payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2021 | $ 6,142 |
2022 | 3,783 |
2023 | 1,441 |
2024 | 112 |
2025 | 2 |
Thereafter | 0 |
Total | $ 11,480 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 1,185 | $ 1,186 | $ 1,197 |
Foreign currency translation | (12) | (1) | (11) |
Balance at end of period | 1,173 | 1,185 | 1,186 |
North America [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 1,105 | 1,105 | 1,105 |
Foreign currency translation | 0 | 0 | 0 |
Balance at end of period | 1,105 | 1,105 | 1,105 |
International [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 80 | 81 | 92 |
Foreign currency translation | (12) | (1) | (11) |
Balance at end of period | $ 68 | $ 80 | $ 81 |
Equity in Net Assets of Non-c_3
Equity in Net Assets of Non-consolidated Affiliates (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 113,825,000,000 | $ 109,217,000,000 | |
Total liabilities | 100,227,000,000 | 96,491,000,000 | |
Finance charge income | 3,996,000,000 | 4,071,000,000 | $ 3,629,000,000 |
Provision for loan losses (Note 3) | 881,000,000 | 726,000,000 | 642,000,000 |
Net income | 2,009,000,000 | 1,567,000,000 | 1,570,000,000 |
Undistributed earnings of foreign subsidiaries | 373,000,000 | 409,000,000 | |
Non-consolidated affiliates [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Finance receivables, net | 22,063,000,000 | 18,358,000,000 | |
Assets | 24,722,000,000 | 19,594,000,000 | |
Debt | 18,236,000,000 | 14,321,000,000 | |
Total liabilities | 21,177,000,000 | 16,352,000,000 | |
Finance charge income | 1,447,000,000 | 1,369,000,000 | 1,246,000,000 |
Provision for loan losses (Note 3) | 162,000,000 | 47,000,000 | 21,000,000 |
Income before income taxes | 572,000,000 | 630,000,000 | 696,000,000 |
Net income | 426,000,000 | 473,000,000 | 522,000,000 |
Undistributed earnings of foreign subsidiaries | $ 647,000,000 | $ 615,000,000 | |
SAIC-GMAC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 35.00% | 35.00% | |
Cash dividends received | $ 103,000,000 | $ 49,000,000 | $ 0 |
SAIC-GMF Leasing Co. LTD [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 35.00% | 35.00% | |
SAIC-GMAC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Dividends paid | $ 294,000,000 | $ 140,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2021CAD ($) | Dec. 31, 2019USD ($) | |
Revolving Credit Facilities [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Expiration period | 6 years | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (percent) | 3.25% | |||
Face amount of debt | $ 46,300,000,000 | |||
Senior Notes [Member] | Senior Notes with Maturity Dates from 2023 to 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (percent) | 2.93% | |||
Face amount of debt | $ 9,200,000,000 | |||
Senior Notes [Member] | Senior Notes Due with Maturity Dates from 2026 to 2031 [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 2,500,000,000 | |||
Interest rate (percent) | 1.69% | 1.69% | ||
Senior Notes [Member] | CAD Senior Notes Due 2026 [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 500,000,000 | |||
Interest rate (percent) | 1.75% | 1.75% | ||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (percent) | 2.47% | |||
Debt instrument term | 4 years | |||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance costs | $ 106,000,000 | $ 109,000,000 | ||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (percent) | 1.89% | |||
Issuance costs | $ 85,000,000 | $ 75,000,000 | ||
Secured Debt [Member] | Revolving Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Increase in credit facilities | $ 21,100,000,000 | |||
Secured Debt [Member] | Securitization Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (percent) | 1.17% | |||
Face amount of debt | $ 24,600,000,000 |
Debt - Short Term and Long Term
Debt - Short Term and Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short Term and Long Term Debt [Line Items] | ||
Secured debt | $ 39,982 | $ 39,959 |
Secured Debt, Fair Value Disclosure | 40,380 | 40,160 |
Unsecured debt | 52,443 | 48,979 |
Unsecured Debt, Fair Value Disclosure | 54,568 | 50,239 |
Total Debt | 92,425 | 88,938 |
Total secured and unsecured debt, Fair Value | 94,948 | 90,399 |
Fair Value, Inputs, Level 2 [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Total secured and unsecured debt, Fair Value | 92,922 | 88,481 |
Fair Value, Inputs, Level 3 [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Total secured and unsecured debt, Fair Value | 2,026 | 1,918 |
Revolving Credit Facility [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 3,733 | 6,152 |
Secured Debt, Fair Value Disclosure | 3,735 | 6,160 |
Unsecured debt | 1,535 | 1,936 |
Unsecured Debt, Fair Value Disclosure | 1,531 | 1,936 |
Securitization Notes Payable [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Secured debt | 36,249 | 33,807 |
Secured Debt, Fair Value Disclosure | 36,645 | 34,000 |
Senior Notes [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 46,798 | 43,679 |
Unsecured Debt, Fair Value Disclosure | 48,922 | 44,937 |
Other Unsecured Debt [Member] | ||
Short Term and Long Term Debt [Line Items] | ||
Unsecured debt | 4,110 | 3,364 |
Unsecured Debt, Fair Value Disclosure | $ 4,115 | $ 3,366 |
Debt - Repayments of Principal
Debt - Repayments of Principal and Interest (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total Debt | $ 92,425 | $ 88,938 |
Interest payments in 2021 | 2,072 | |
Interest payments in 2022 | 1,359 | |
Interest payments in 2023 | 970 | |
Interest payments in 2024 | 605 | |
Interest payments in 2025 | 350 | |
Interest payments thereafter | 443 | |
Interest payments | 5,799 | |
Total repayments in 2021 | 37,814 | |
Total repayments in 2022 | 20,671 | |
Total repayments in 2023 | 16,237 | |
Total repayments in 2024 | 8,413 | |
Total repayments in 2025 | 6,959 | |
Total repayments thereafter | 7,720 | |
Total repayments of principal and interest | 97,814 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of principal in 2021 | 21,040 | |
Repayments of principal in 2022 | 10,884 | |
Repayments of principal in 2023 | 5,493 | |
Repayments of principal in 2024 | 2,375 | |
Repayments of principal in 2025 | 256 | |
Repayments of principal thereafter | 0 | |
Total Debt | 40,048 | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of principal in 2021 | 14,702 | |
Repayments of principal in 2022 | 8,428 | |
Repayments of principal in 2023 | 9,774 | |
Repayments of principal in 2024 | 5,433 | |
Repayments of principal in 2025 | 6,353 | |
Repayments of principal thereafter | 7,277 | |
Total Debt | $ 51,967 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 3,063 | $ 3,791 |
Finance receivables, net of fees | 58,390 | 53,473 |
Leased vehicles, net | 184 | 226 |
Secured debt (Note 7; Note 8 VIEs) | 39,982 | 39,959 |
Securitization and Credit Facility VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 2,639 | 2,643 |
Finance receivables, net of fees | 32,575 | 35,392 |
Secured debt (Note 7; Note 8 VIEs) | 39,424 | 39,771 |
Transferred to secured funding arrangements | 863 | 226 |
Secured debt outstanding | 622 | 244 |
Assets Leased to Others [Member] | ||
Variable Interest Entity [Line Items] | ||
Leased vehicles, net | 39,819 | 42,055 |
Assets Leased to Others [Member] | Securitization and Credit Facility VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Leased vehicles, net | $ 16,322 | $ 14,464 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of assets (liabilities) available for offset | $ 501 | $ 302 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 129,566 | 108,673 |
Derivative asset, Fair value | 1,823 | 636 |
Collateral available for netting against liability positions | 139 | 89 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 672 | 519 |
Cash held for netting against asset positions | 728 | 210 |
Derivatives Designated as Hedges [Member] | Other Assets [Member] | Fair Value Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 10,064 | 9,458 |
Derivative asset, Fair value | 463 | 234 |
Derivatives Designated as Hedges [Member] | Other Assets [Member] | Fair Value Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 1,958 | 1,796 |
Derivative asset, Fair value | 128 | 22 |
Derivatives Designated as Hedges [Member] | Other Assets [Member] | Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 921 | 590 |
Derivative asset, Fair value | 0 | 0 |
Derivatives Designated as Hedges [Member] | Other Assets [Member] | Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 5,626 | 4,429 |
Derivative asset, Fair value | 278 | 40 |
Derivatives Designated as Hedges [Member] | Other Liabilities [Member] | Fair Value Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 13 | 23 |
Derivatives Designated as Hedges [Member] | Other Liabilities [Member] | Fair Value Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 9 | 71 |
Derivatives Designated as Hedges [Member] | Other Liabilities [Member] | Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 27 | 6 |
Derivatives Designated as Hedges [Member] | Other Liabilities [Member] | Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | 47 | 119 |
Derivatives not Designated as Hedges [Member] | Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Notional amount | 110,997 | 92,400 |
Derivative asset, Fair value | 954 | 340 |
Derivatives not Designated as Hedges [Member] | Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Fair value | $ 576 | $ 300 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Recognized in the Balance Sheet (Details) - Derivatives Designated as Hedges [Member] - Fair Value Hedging [Member] - Unsecured Debt [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of Hedged Items | $ 23,315 | $ 20,397 |
Cumulative Amount of Fair Value Hedging Adjustments | (739) | (77) |
Discontinued hedge cumulative amount of fair value hedging adjustments | $ 200 | $ 69 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Income (Losses) Recognized in Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Interest expense | $ 3,023 | $ 3,641 | $ 3,225 |
Operating expenses | 1,490 | 1,564 | 1,522 |
Operating Expenses [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total | 6 | 5 | (141) |
Operating Expenses [Member] | Derivatives Designated as Hedges [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | 0 | 0 | 0 |
Interest rate swaps and Foreign currency swaps | 0 | 0 | 0 |
Operating Expenses [Member] | Derivatives Designated as Hedges [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | (161) | 33 | (17) |
Interest rate swaps and Foreign currency swaps | 167 | (28) | 18 |
Operating Expenses [Member] | Derivatives Designated as Hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate swaps and Foreign currency swaps | 0 | 0 | 0 |
Operating Expenses [Member] | Derivatives Designated as Hedges [Member] | Cash Flow Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | (457) | (3) | 114 |
Interest rate swaps and Foreign currency swaps | 457 | 3 | (114) |
Operating Expenses [Member] | Derivatives not Designated as Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate contracts | 0 | 0 | 0 |
Foreign currency swaps | 0 | 0 | (142) |
Interest Expense [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total | (166) | (213) | (77) |
Interest Expense [Member] | Derivatives Designated as Hedges [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | (500) | (569) | 83 |
Interest rate swaps and Foreign currency swaps | 250 | 355 | (102) |
Interest Expense [Member] | Derivatives Designated as Hedges [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | 0 | 0 | 0 |
Interest rate swaps and Foreign currency swaps | (31) | (59) | (5) |
Interest Expense [Member] | Derivatives Designated as Hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate swaps and Foreign currency swaps | (14) | 5 | 14 |
Interest Expense [Member] | Derivatives Designated as Hedges [Member] | Cash Flow Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedged items | 0 | 0 | 0 |
Interest rate swaps and Foreign currency swaps | (108) | (87) | (49) |
Interest Expense [Member] | Derivatives not Designated as Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate contracts | 237 | 142 | 26 |
Foreign currency swaps | 0 | 0 | (44) |
Unrealized (Loss) Gain on Hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | (18) | (6) | 3 |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income | 10 | (3) | (7) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | (19) | (41) | (3) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income | 20 | 41 | 3 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Cash Flow Hedging [Member] | Foreign Currency Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | 160 | (113) | (89) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income | (261) | 64 | 86 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Derivatives Designated as Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gains reclassified from AOCI into income | 83 | ||
AOCI Attributable to Parent [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gains (Losses) Recognized In Accumulated Other Comprehensive Loss | 123 | (160) | (89) |
(Gains) Losses Reclassified From Accumulated Other Comprehensive Loss Into Income | $ (231) | $ 102 | $ 82 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Rent expense | $ 39 | $ 38 | |
Rent expense | $ 30 | ||
Operating lease right-of-use asset obtained in exchange for lease obligations | 26 | 36 | |
2021 | 29 | ||
2022 | 27 | ||
2023 | 25 | ||
2024 | 24 | ||
2025 | 22 | ||
Thereafter | 64 | ||
Imputed interest | 27 | ||
Payments for operating payments | $ 49 | 51 | |
Weighted-average discount rate | 4.20% | ||
Weighted average remaining lease term | 7 years 6 months | ||
Estimate of possible loss | $ 63 | ||
Loss contingency accrual | 15 | ||
Indirect tax contingency | 11 | ||
Other Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Operating lease liabilities | 164 | 158 | |
Other Assets [Member] | |||
Loss Contingencies [Line Items] | |||
Operating lease right-of-use asset | $ 141 | $ 137 | |
Retail Finance Receivable [Member] | Texas [Member] | Geographic Concentration Risk [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration risk (percent) | 13.00% | ||
Maximum [Member] | Administrative Offices And Other [Member] | |||
Loss Contingencies [Line Items] | |||
Term of contract | 11 years |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||
Common stock dividends declared and paid | $ 800 | $ 400 | $ 375 | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of preferred stock | $ 492 | $ 0 | 492 | ||
Fixed-to-Floating Rate Cumulative Preferred Stock, Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends paid | $ 58 | $ 58 | $ 59 | ||
Preferred stock shares issued | 1,000,000 | 1,000,000 | |||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends paid | $ 32 | $ 33 | |||
Preferred stock shares issued | 500,000 | 500,000 | 500,000 | ||
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] | LIBOR [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock floating rate | 3.436% | ||||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series C [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 | 5.70% | ||||
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series C [Member] | US Treasury Interest Rate [Member] | |||||
Class of Stock [Line Items] | |||||
Variable dividend payment rate | 4.997 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Common and Preferred Stock (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||
Common stock shares authorized | 10,000,000 | 10,000,000 | |
Common stock shares issued | 5,050,000 | 5,050,000 | |
Common stock shares outstanding | 5,050,000 | 5,050,000 | |
Preferred stock shares authorized | 250,000,000 | 250,000,000 | |
Preferred stock shares outstanding | 500,000 | 500,000 | |
Fixed-to-Floating Rate Cumulative Preferred Stock, Series A [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares issued | 1,000,000 | 1,000,000 | |
Preferred stock shares outstanding | 1,000,000 | 1,000,000 | |
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares issued | 500,000 | 500,000 | 500,000 |
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series C [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares issued | 500,000 | 0 | |
Preferred stock shares outstanding | 500,000 | 0 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at beginning of period | $ 12,726 | $ 11,659 | $ 10,294 |
Balance at end of period | 13,598 | 12,726 | 11,659 |
AOCI Attributable to Parent [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at beginning of period | (1,119) | (1,066) | (768) |
Balance at end of period | (1,309) | (1,119) | (1,066) |
Unrealized (Loss) Gain on Hedges [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at beginning of period | (49) | 9 | 16 |
Other comprehensive (loss) income, net of tax | (108) | (58) | (7) |
Balance at end of period | (157) | (49) | 9 |
Defined Benefit Plans [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at beginning of period | 1 | 1 | 1 |
Reclassification adjustment | 0 | 0 | 0 |
Balance at end of period | 1 | 1 | 1 |
Foreign Currency Translation Adjustment [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at beginning of period | (1,071) | (1,076) | (785) |
Other comprehensive (loss) income, net of tax | (82) | 5 | (291) |
Balance at end of period | $ (1,153) | $ (1,071) | $ (1,076) |
Parent Company Stock-Based Co_3
Parent Company Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense, net of tax | $ 49 | $ 50 | $ 29 |
Dividend yield | 4.28% | 3.90% | 3.69% |
Expected volatility rate | 25.00% | 28.00% | 28.00% |
Risk-free interest rate | 1.50% | 2.63% | 2.73% |
Expected option life | 6 years | 6 years | 5 years 11 months 23 days |
Granted (in shares) | 1,188 | ||
Unamortized compensation expense | $ 31 | ||
Unamortized compensation expense period for recognition | 1 year | ||
Total fair value of awards vested | $ 21 | $ 19 | $ 21 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 55 months | ||
Minimum [Member] | Service-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 19 months | ||
Maximum [Member] | Service-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Parent Company Stock-Based Co_4
Parent Company Stock-Based Compensation - RSUs, PSU's and Stock Options Granted Employees and Key Executive Officers Under Parent Company Stock Based Compensation Programs (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares outstanding | ||
Outstanding at beginning of period (in shares) | 2,777 | |
Granted (in shares) | 1,188 | |
Settled (in shares) | (990) | |
Forfeited or expired (in shares) | (35) | |
Outstanding at end of period (in shares) | 2,940 | 2,777 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 30.26 | |
Granted (in dollars per share) | 31.19 | |
Forfeited or expired (in dollars per share) | 28.72 | |
Settled (in dollars per share) | 42.18 | |
Outstanding at end of period (in dollars per share) | $ 31.01 | $ 30.26 |
Weighted-Average Remaining Contractual Term | ||
Units outstanding (in years) | 1 year 4 months 24 days | 1 year 3 months 18 days |
Units unvested and expected to vest at end of period (in years) | 1 year 8 months 12 days | |
Units unvested and expected to vest at end of period (in shares) | 1,750 | |
Units vested and payable at end of period (in shares) | 1,083 | |
Units unvested and expected to vest at end of period (in dollars per share) | $ 38.07 | |
Units vested and payable at end of period (in dollars per share) | $ 19.39 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Compensation expense | $ 25 | $ 25 | $ 22 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 373 | $ 409 | |
Valuation allowance | 291 | 279 | |
Increase (decrease) to valuation allowance | 12 | ||
Unrecognized tax benefits that would impact effective tax rate | 40 | 41 | $ 37 |
Penalties accrued | 57 | 78 | |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | 291 | ||
Affiliated Entity [Member] | |||
Income Taxes [Line Items] | |||
Related party taxes payable | $ 244 | $ 4 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. income | $ 2,280 | $ 1,599 | $ 1,421 |
Non-U.S. income | 275 | 339 | 289 |
Income before income taxes and equity income | $ 2,555 | $ 1,938 | $ 1,710 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense | |||
U.S. federal | $ 129 | $ 0 | $ 0 |
U.S. state and local | 143 | 16 | 1 |
Non-U.S. | 67 | 81 | 83 |
Total current | 339 | 97 | 84 |
Deferred income tax expense | |||
U.S. federal | 299 | 330 | 133 |
U.S. state and local | 5 | 71 | 75 |
Non-U.S. | 50 | 39 | 31 |
Total deferred | 354 | 440 | 239 |
Total income tax provision | $ 693 | $ 537 | $ 323 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate on Income Before Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Non-U.S. income taxed at other than the U.S. federal statutory rate | 1.50% | 2.10% | 2.80% |
State and local income taxes | 4.10% | 4.00% | 4.20% |
U.S. tax on non-U.S. earnings | 0.40% | 1.10% | 0.20% |
Valuation allowance | 0.30% | 0.50% | 0.40% |
Tax credits and incentives | (0.20%) | (0.70%) | (6.20%) |
U.S. federal tax reform impact | 0.00% | 0.00% | (2.60%) |
Other | 0.00% | (0.30%) | (0.90%) |
Effective tax rate | 27.10% | 27.70% | 18.90% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Net operating loss carryforward - US | $ 15 | $ 371 |
Net operating loss carryforward - Non-US | 150 | 178 |
Market value difference of loan portfolio | 741 | 310 |
Accruals | 86 | 115 |
Tax credits | 466 | 839 |
Other | 282 | 185 |
Total deferred tax assets before valuation allowance | 1,740 | 1,998 |
Less: valuation allowance | (291) | (279) |
Total deferred tax assets | 1,449 | 1,719 |
Deferred tax liabilities | ||
Depreciable assets | 2,038 | 2,177 |
Deferred acquisition costs | 109 | 123 |
Other | 160 | 152 |
Total deferred tax liabilities | 2,307 | 2,452 |
Net deferred tax liability | (858) | $ (733) |
Tax Year 2042 [Member] | ||
Deferred tax assets | ||
Net operating loss carryforward - US | 15 | |
Tax Year 2040 [Member] | ||
Deferred tax assets | ||
Net operating loss carryforward - Non-US | 125 | |
Tax credits | 466 | |
Expiring Indefinitely [Member] | ||
Deferred tax assets | ||
Net operating loss carryforward - Non-US | $ 25 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 57 | $ 50 | $ 54 |
Additions to prior years' tax positions | 0 | 1 | 0 |
Reductions to prior years' tax positions | (1) | 0 | 0 |
Additions to current year tax positions | 6 | 7 | 3 |
Changes in tax positions due to lapse of statutory limitations | 3 | ||
Changes in tax positions due to lapse of statutory limitations | (1) | (5) | |
Foreign currency translation | (3) | 0 | (2) |
Ending balance | $ 62 | $ 57 | $ 50 |
Supplemental Information for _3
Supplemental Information for the Consolidated Statements of Cash Flows - Cash Payments For Interest Costs And Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest costs (none capitalized) | $ 2,947 | $ 3,475 | $ 2,941 |
Income taxes | $ 97 | $ 60 | $ 68 |
Supplemental Information for _4
Supplemental Information for the Consolidated Statements of Cash Flows - Noncash Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Subvention receivable from GM | $ 642 | $ 676 | $ 727 |
Commercial loan funding payable to GM | $ 23 | $ 74 | $ 61 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information - Operations Reporting by Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 13,831 | $ 14,554 | $ 14,016 |
Operating expenses | 1,490 | 1,564 | 1,522 |
Leased vehicle expenses | 5,882 | 6,685 | 6,917 |
Provision for loan losses (Note 3) | 881 | 726 | 642 |
Interest expense | 3,023 | 3,641 | 3,225 |
Equity income | 147 | 166 | 183 |
Income before income taxes | 2,702 | 2,104 | 1,893 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 12,851 | 13,318 | 12,771 |
Operating expenses | 1,184 | 1,172 | 1,125 |
Leased vehicle expenses | 5,834 | 6,634 | 6,879 |
Provision for loan losses (Note 3) | 653 | 569 | 490 |
Interest expense | 2,717 | 3,171 | 2,735 |
Equity income | 0 | 0 | 0 |
Income before income taxes | 2,463 | 1,772 | 1,542 |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 980 | 1,236 | 1,245 |
Operating expenses | 306 | 392 | 397 |
Leased vehicle expenses | 48 | 51 | 38 |
Provision for loan losses (Note 3) | 228 | 157 | 152 |
Interest expense | 306 | 470 | 490 |
Equity income | 147 | 166 | 183 |
Income before income taxes | $ 239 | $ 332 | $ 351 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Information - Operations Reporting by Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total finance receivables, net | $ 58,390 | $ 53,473 |
Leased vehicles, net | 184 | 226 |
Total assets | 113,825 | 109,217 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total finance receivables, net | 53,332 | 46,679 |
Total assets | 105,507 | 99,453 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Total finance receivables, net | 5,058 | 6,794 |
Total assets | 8,318 | 9,764 |
Assets Leased to Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Leased vehicles, net | 39,819 | 42,055 |
Assets Leased to Others [Member] | North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Leased vehicles, net | 39,656 | 41,881 |
Assets Leased to Others [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
Leased vehicles, net | $ 163 | $ 174 |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 13,831 | $ 14,554 | $ 14,016 |
Long-Lived Assets | 40,003 | 42,281 | 43,810 |
Leased vehicles, net | 184 | 226 | |
Leased vehicles, net | 43,600 | ||
Assets Leased to Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Leased vehicles, net | 39,819 | 42,055 | |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 12,178 | 12,672 | 12,158 |
Long-Lived Assets | 36,773 | 39,509 | 41,320 |
Non-US [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,653 | 1,882 | 1,858 |
Long-Lived Assets | $ 3,230 | $ 2,772 | $ 2,490 |
Regulatory Capital and Other _2
Regulatory Capital and Other Regulatory Matters (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 113,825 | $ 109,217 |
Brazil [Member] | ||
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Capital ratio | 0.343 | |
International Regulated Bank And Finance Companies [Member] | ||
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Assets | $ 6,200 | $ 7,800 |
Minimum [Member] | Brazil [Member] | ||
Capital Requirements on Foreign Financial Institutions [Line Items] | ||
Capital requirement | 0.093 |