General Motors 2012 Annual Report Download - page 122

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Automotive Financing — GM Financial
The following table summarizes the current and non-current portion of debt (dollars in millions):
December 31, 2012 December 31, 2011
Short-term debt and current portion of long-term debt ................................... $ 3,770 $4,118
Long-term debt ................................................................. 7,108 4,420
Total GM Financial debt .......................................................... $10,878 $8,538
The following table summarizes the carrying amount and fair value of debt (dollars in millions):
Level
December 31, 2012 December 31, 2011
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Credit facilities
Medium-term note facility ................................................ 3 $ — $ — $ 294 $ 294
Syndicated warehouse facility ............................................. 2 — — 621 621
Lease warehouse facilities ................................................ 2 354 354 181 181
Bank funding facility .................................................... 3 — — 3 3
Total credit facilities .................................................... 354 354 1,099 1,099
Securitization notes payable
Securitization notes payable .............................................. 1 8,534 8,669 6,938 6,946
Private securitization 2012-PP1 ............................................ 3 490 502
Total securitization notes payable .......................................... 9,024 9,171 6,938 6,946
Senior notes .......................................................... 2 1,500 1,620 501 511
Total GM Financial debt ................................................. $10,878 $11,145 $8,538 $8,556
The carrying amounts of the syndicated warehouse facility and lease warehouse facilities are considered to be a reasonable estimate
of their fair values because these facilities have variable rates of interest and maturities of approximately one year. The fair values of
the bank funding facility, securitization notes payable and senior notes are based on quoted market prices, when available. If quoted
prices are not available the market value is estimated by discounting future net cash flows expected to be settled using a current risk-
adjusted rate.
The estimated fair value of the medium-term note facility is based on observable and unobservable inputs. Observable inputs are
used regarding an advance rate on the receivables to generate an estimated debt amount as well as the interest rate used to calculate
the series of estimated principal payments. Those series of principal and interest payments are discounted using an unobservable
interest rate based on the most recent securitization in order to estimate fair value which would approximate the market value.
GM Financial uses observable and unobservable inputs to estimate the fair value for the private securitization 2012-PP1.
Unobservable inputs are related to the structuring of the debt into various classes, which is based on public securitizations issued
during the same time frame. Observable inputs are used by obtaining active prices based on the securitization debt issued during the
same time frame. These observable inputs are then used to create expected market prices (unobservable inputs), which are then
applied to the debt classes in order to estimate fair value which would approximate market value.
General Motors Company 2012 ANNUAL REPORT 119