GM Financial Receivables



	June 30, 2016									December 31, 2015
	Retail			Commercial			Total			Retail			Commercial			Total
Finance receivables	$	30,861		$	9,112		$	39,973		$	29,124		$	8,209		$	37,333
Less: allowance for loan losses	(814		)	(50		)	(864		)	(735		)	(47		)	(782		)
GM Financial receivables, net	$	30,047		$	9,062		$	39,109		$	28,389		$	8,162		$	36,551

Fair value of GM Financial receivables							$	39,510								$	36,707

GM Financial estimates the fair value of retail finance receivables using observable and unobservable inputs within a cash flow model, a Level 3 input. The inputs reflect assumptions regarding expected prepayments, deferrals, delinquencies, recoveries and charge-offs of the loans within the portfolio. The cash flow model produces an estimated amortization schedule of the finance receivables which is the basis for the calculation of the series of cash flows that derive the fair value of the portfolio. The series of cash flows is calculated and discounted using a weighted-average cost of capital or current interest rates. The weighted-average cost of capital uses unobservable debt and equity percentages, an unobservable cost of equity and an observable cost of debt based on companies with a similar credit rating and maturity profile as the portfolio. Macroeconomic factors could affect the credit performance of the portfolio and therefore could potentially affect the assumptions used in GM Financial's cash flow model. A substantial majority of GM Financial's commercial finance receivables have variable interest rates and maturities of one year or less. Therefore, the carrying amount is considered to be a reasonable estimate of fair value using Level 2 inputs.



	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Allowance for loan losses at beginning of period	$	843		$	728		$	782		$	695
Provision for loan losses	151			141			347			296
Charge-offs	(266		)	(220		)	(559		)	(454		)
Recoveries	133			109			283			233
Effect of foreign currency	3			2			11			(10		)
Allowance for loan losses at end of period	$	864		$	760		$	864		$	760

The activity for the allowance for commercial loan losses was insignificant in the three and six months ended June 30, 2016 and 2015.

Retail Finance Receivables GM Financial uses proprietary scoring systems in its underwriting process that measure the credit quality of retail finance receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO scores or its equivalent) and contract characteristics. In addition to GM Financial's proprietary scoring systems GM Financial considers other individual consumer factors such as employment history, financial stability and capacity to pay. Subsequent to origination GM Financial reviews the credit quality of retail receivables based on customer payment activity. Historically, at the time of loan origination substantially all of GM Financial's international consumers were considered to be prime credit quality. At June 30, 2016 and December 31, 2015, 55% and 60% of the retail finance receivables in North America were from consumers with sub-prime credit scores, which are defined as FICO scores or its equivalent of less than 620 at the time of loan origination.

An account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. At June 30, 2016 and December 31, 2015 the accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $758 million and $778 million. The following table summarizes the contractual amount of delinquent contracts, which was not significantly different than the recorded investment of the retail finance receivables:



	June 30, 2016				June 30, 2015
	Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
31-to-60 days delinquent	$	1,070	3.4	%	$	1,062	3.6	%
Greater-than-60 days delinquent	465		1.5	%	452		1.6	%
Total finance receivables more than 30 days delinquent	1,535		4.9	%	1,514		5.2	%
In repossession	51		0.2	%	46		0.2	%
Total finance receivables more than 30 days delinquent or in repossession	$	1,586	5.1	%	$	1,560	5.4	%

At June 30, 2016 and December 31, 2015 retail finance receivables classified as troubled debt restructurings and individually evaluated for impairment were $1.7 billion and $1.6 billion and the allowance for loan losses included $244 million and $220 million of specific allowances on these receivables.

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. A proprietary model is used to assign a risk rating to each dealer. A credit review of each dealer is performed at least annually, and if necessary, the dealer's risk rating is adjusted on the basis of the review. Dealers in Group VI are subject to additional restrictions on funding, up to suspension of lines of credit and liquidation of assets. At June 30, 2016 and December 31, 2015 the commercial finance receivables on non-accrual status were insignificant. The following table summarizes the credit risk profile by dealer grouping of commercial finance receivables:



	June 30, 2016		December 31, 2015
Group I – Dealers with superior financial metrics	$	1,274	$	1,298
Group II – Dealers with strong financial metrics	3,008		2,573
Group III – Dealers with fair financial metrics	2,903		2,597
Group IV – Dealers with weak financial metrics	1,140		1,058
Group V – Dealers warranting special mention due to potential weaknesses	596		501
Group VI – Dealers with loans classified as substandard, doubtful or impaired	191		182
	$	9,112	$	8,209