General Motors 2014 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2014 General Motors annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 7. Equipment on Operating Leases, net
Automotive
Equipment on operating leases, net is composed of vehicle sales to daily rental car companies with a guaranteed repurchase
obligation. The following tables summarize information related to Equipment on operating leases, net (dollars in millions):
December 31, 2014 December 31, 2013
Equipment on operating leases ..................................................... $ 3,822 $ 2,605
Less: accumulated depreciation .................................................... (258) (207)
Equipment on operating leases, net .................................................. $ 3,564 $ 2,398
Years Ended December 31,
2014 2013 2012
Depreciation expense ............................................................... $ 507 $ 218 $ 227
Impairment charges ................................................................. $ 155 $ 168 $ 181
Automotive Financing — GM Financial
GM Financial originates leases in the U.S. and Canada that are recorded as operating leases. A Canadian subsidiary of GM
Financial originates and sells leases to a third-party with servicing retained. The following table summarizes GM Financial equipment
on operating leases, net (dollars in millions):
December 31, 2014 December 31, 2013
GM Financial equipment on operating leases .......................................... $ 8,268 $ 4,025
Less: accumulated depreciation .................................................... (1,208) (642)
GM Financial equipment on operating leases, net ...................................... $ 7,060 $ 3,383
Depreciation expense related to GM Financial equipment on operating leases, net was $868 million, $450 million and $205 million
in the years ended December 31, 2014, 2013 and 2012.
The following table summarizes minimum rental payments due to GM Financial as lessor under operating leases (dollars in
millions):
2015 2016 2017 2018 2019
Minimum rental receipts under operating leases ...................... $ 1,241 $ 1,019 $ 597 $ 98 $ 5
Note 8. Equity in Net Assets of Nonconsolidated Affiliates
Nonconsolidated affiliates are entities in which an equity ownership interest is maintained and for which the equity method of
accounting is used due to the ability to exert significant influence over decisions relating to their operating and financial affairs.
86