General Motors 2014 Annual Report Download - page 61

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
Fixed interest rate receivables purchased by GM Financial are pledged to secure borrowings under its credit facilities. Amounts
borrowed under these credit facilities bear interest at variable rates that are subject to frequent adjustments to reflect prevailing market
interest rates. To protect the interest rate spread within each credit facility, GM Financial is contractually required to enter into interest
rate cap agreements in connection with borrowings under its credit facilities.
In GM Financial’s securitization transactions it can transfer fixed rate finance receivables to securitization trusts that, in turn, sell
either fixed rate or floating rate securities to investors. Derivative financial instruments, such as interest rate swaps and caps, are used
to manage the gross interest rate spread on the floating rate transactions.
GM Financial had interest rate swaps and caps in asset positions with notional amounts of $3.8 billion and $3.8 billion and interest
rate swaps and caps in liability positions with notional amounts of $7.4 billion and $5.5 billion at December 31, 2014 and 2013. The
fair value of these derivative financial instruments was insignificant.
The following table summarizes GM Financial’s interest rate sensitive assets and liabilities, excluding derivatives, by year of
expected maturity and the fair value of those assets and liabilities at December 31, 2014 (dollars in millions):
2015 2016 2017 2018 2019 Thereafter Fair Value
Assets
Consumer finance receivables
Principal amounts ...................... $ 10,440 $ 7,336 $ 4,551 $ 2,308 $ 968 $ 382 $ 25,541
Weighted-average annual percentage rate .... 10.26% 10.45% 10.56% 10.82% 11.04% 11.21%
Commercial finance receivables
Principal amounts ...................... $ 7,333 $ 79 $ 69 $ 87 $ 76 $ 51 $ 7,565
Weighted-average annual percentage rate .... 6.17% 4.63% 4.41% 4.36% 4.38% 4.67%
Liabilities
Secured Debt:
Credit facilities
Principal amounts .................... $ 4,532 $ 1,593 $ 757 $ 141 $ 17 $ — $ 6,991
Weighted-average interest rate .......... 4.36% 5.92% 6.34% 8.63% 8.87% —%
Securitization notes
Principal amounts .................... $ 7,348 $ 5,703 $ 3,596 $ 1,190 $ 354 $ — $ 18,237
Weighted-average interest rate .......... 1.94% 1.86% 2.04% 2.50% 3.06% —%
Unsecured Debt:
Senior notes
Principal amounts .................... $ — $ 1,000 $ 2,795 $ 1,250 $ 1,405 $ 2,000 $ 8,707
Weighted-average interest rate .......... —% 2.75% 3.56% 4.65% 2.80% 4.33%
Credit facilities and other unsecured debt
Principal amounts .................... $ 2,611 $ 881 $ 107 $ 85 $ 84 $ — $ 3,772
Weighted-average interest rate .......... 10.33% 9.70% 5.64% 5.14% 5.14% —%
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