General Motors 2014 Annual Report Download - page 98

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Automotive Financing — GM Financial
The following table summarizes the carrying amount and fair value of debt (dollars in millions):
December 31, 2014 December 31, 2013
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Secured debt ....................................................... $ 25,214 $ 25,228 $ 22,073 $ 22,170
Unsecured debt ..................................................... 12,217 12,479 6,973 7,078
Total GM Financial debt .............................................. $ 37,431 $ 37,707 $ 29,046 $ 29,248
The fair value of debt includes $32.8 billion and $23.0 billion measured utilizing Level 2 inputs and $4.9 billion and $6.2 billion
measured utilizing Level 3 inputs at December 31, 2014 and December 31, 2013. The fair value of debt measured utilizing Level 2
inputs was based on quoted market prices and if unavailable, quoted market prices of similar securities. For debt that has terms of one
year or less or has been priced within the last six months, the carrying amount or par value is considered to be a reasonable estimate of
fair value. The fair value of debt measured utilizing Level 3 inputs was based on the discounted future net cash flows expected to be
settled using current risk-adjusted rates.
Secured Debt
Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged finance
receivables and leases. Refer to Note 12 for additional information relating to GM Financial’s involvement with VIEs. Secured debt
consists of revolving credit facilities and securitization notes payable. Weighted-average interest rates are both fixed and variable,
ranging from 0.35% to 13.43% at December 31, 2014.
The revolving credit facilities are expected to be repaid over periods ranging up to five years. At the end of the revolving period, if
not renewed, the debt will amortize over a defined period. GM Financial is required to hold certain funds in restricted cash accounts to
provide additional collateral for borrowings under certain secured credit facilities. In the year ended December 31, 2014 GM Financial
entered into new or renewed credit facilities with a total additional borrowing capacity of $5.5 billion.
Securitization notes payable at December 31, 2014 are due beginning in 2016 through 2022. In the year ended December 31, 2014
GM Financial issued securitization notes payable of $10.7 billion with a weighted-average interest rate of 1.4% maturing on various
dates through 2022.
Unsecured Debt
Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at December 31, 2014
are due beginning in 2016 through 2023 and have interest rates that range from 1.875% to 6.75%. In May 2014 GM Financial issued
CAD 400 million of 3.25% senior notes which are due in May 2017. In July 2014 GM Financial issued $1.5 billion in aggregate
principal amount of senior notes comprising $700 million of 2.625% notes due in July 2017 and $800 million of 3.5% notes due in
July 2019. In September 2014 GM Financial issued $2.0 billion in aggregate principal amount of senior notes comprising $750
million of 3.0% notes due in September 2017 and $1.25 billion of 4.375% notes due in September 2021. In October 2014 GM
Financial issued Euro 500 million of 1.875% term notes which are due in October 2019. The notes are guaranteed by GM Financial’s
principal operating subsidiary.
In January 2015 GM Financial issued $2.25 billion in aggregate principal amount of senior notes comprising $1.0 billion of 3.15%
notes due in January 2020, $1.0 billion of 4.0% notes due in January 2025 and $250 million of floating rate notes due in January 2020.
Interest rates on the floating rate notes are equal to three-month LIBOR plus an applicable margin. The notes are guaranteed by GM
Financial’s principal operating subsidiary.
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