Automotive and GM Financial Debt



	December 31, 2017			December 31, 2016
Secured debt	$	204		$	108
Unsecured debt	12,579			9,742
Capital leases	719			710
Total automotive debt(a)	$	13,502		$	10,560

Fair value utilizing Level 1 inputs	$	13,202		$	9,515
Fair value utilizing Level 2 inputs	1,886			1,884
Fair value of automotive debt	$	15,088		$	11,399

Available under credit facility agreements	$	14,067		$	14,181
Interest rate range on outstanding debt(b)	0.0-21.8%			0.0-18.0%
Weighted-average interest rate on outstanding short-term debt(b)	4.7		%	10.7		%
Weighted-average interest rate on outstanding long-term debt(b)	5.2		%	5.2		%

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(a)	Includes net discount and debt issuance costs of $499 million and $491 million at December 31, 2017 and 2016.


(b)	Includes coupon rates on debt denominated in various foreign currencies and interest free loans and the impact of reclassification of $1.5 billion of senior unsecured notes from long-term to short-term in the year ended December 31, 2017.

The fair value of automotive debt measured utilizing Level 1 inputs was based on quoted prices in active markets for identical instruments that a market participant can access at the measurement date. The fair value of automotive debt measured utilizing Level 2 inputs was based on a discounted cash flow model using observable inputs. This model utilizes observable inputs such as contractual repayment terms and benchmark yield curves, plus a spread based on our senior unsecured notes that is intended to represent our nonperformance risk. We obtain the benchmark yield curves and yields on unsecured notes from independent sources that are widely used in the financial industry. At December 31, 2017 and December 31, 2016 the fair value of automotive debt exceeded its carrying amount due primarily to a decrease in bond yields compared to yields at the time of issuance.

In August 2017 we issued $3.0 billion in aggregate principal amount of senior unsecured notes with an initial weighted average interest rate of 4.5% and maturity dates ranging from 2020 to 2048. The indentures governing these notes contain terms and covenants customary of these types of securities including limitation on the amount of certain secured debt we may incur. The net proceeds from the issuance of these senior unsecured notes were used to repay the $3.0 billion drawn on our three-year unsecured revolving credit facility in the three months ended September 30, 2017 to fund the payments to PSA Group, or one or more pension funding vehicles, for the assumed net underfunded pension liabilities in connection with the sale of the Opel/Vauxhall Business as described in Note 3.



	December 31, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt	$	39,887	$	39,948	$	35,087	$	35,162
Unsecured debt	40,830		41,989		29,476		30,045
Total GM Financial debt	$	80,717	$	81,937	$	64,563	$	65,207

Fair value utilizing Level 2 inputs			$	79,623			$	62,951
Fair value utilizing Level 3 inputs			$	2,314			$	2,256

The fair value of GM Financial debt measured utilizing Level 2 inputs was based on quoted market prices for identical instruments and if unavailable, quoted market prices of similar instruments. For debt with original maturity or revolving period of 18 months or less par value is considered to be a reasonable estimate of fair value. The fair value of GM Financial 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 consists of revolving credit facilities and securitization notes payable. Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged Securitized Assets. Refer to Note 12 for additional information on GM Financial's involvement with VIEs. GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under certain secured credit facilities. The weighted-average interest rate on secured debt was 2.37% at December 31, 2017. The revolving credit facilities have maturity dates ranging from 2018 to 2023 and securitization notes payable have maturity dates ranging from 2019 to 2025. At the end of the revolving period, if not renewed, the debt of revolving credit facilities will amortize over a defined period. In the year ended December 31, 2017 we entered into new or renewed credit facilities with a total net additional borrowing capacity of $2.9 billion, which had substantially the same terms as existing debt and we issued $22.4 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 2.10% and maturity dates ranging from 2019 to 2025.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at December 31, 2017 are due beginning in 2018 through 2027 and have a weighted-average interest rate of 3.27%. In the year ended December 31, 2017 we issued $12.7 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 2.85% and maturity dates ranging from 2019 to 2027.

In January 2018 we issued $1.65 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 3.26% and maturity dates ranging from 2023 to 2028.

Each of the revolving credit facilities and the indentures governing GM Financial's notes contain terms and covenants including limitations on GM Financial's ability to incur certain liens.

The terms of advances on credit facilities and other unsecured debt have original maturities of up to four years. The weighted-average interest rate on credit facilities and other unsecured debt was 7.28% at December 31, 2017.



	Years Ended December 31,
	2017		2016		2015
Automotive interest expense	$	575	$	563	$	423
Automotive Financing - GM Financial interest expense	2,566		1,972		1,460
Total interest expense	$	3,141	$	2,535	$	1,883

The following table summarizes contractual maturities including capital leases at December 31, 2017:



	Automotive		Automotive Financing(a)		Total
2018	$	2,528	$	24,502	$	27,030
2019	154		18,489		18,643
2020	586		14,696		15,282
2021	59		7,802		7,861
2022	63		5,323		5,386
Thereafter	10,611		10,477		21,088
	$	14,001	$	81,289	$	95,290

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(a)	Secured debt, credit facilities and other unsecured debt are based on expected payoff date. Senior notes principal amounts are based on maturity.

At December 31, 2017 future interest payments on automotive capital lease obligations were $280 million. GM Financial had no capital lease obligations at December 31, 2017.

Compliance with Debt Covenants Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Some of GM Financial’s secured and unsecured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. Failure to meet certain of these requirements may result in a covenant violation or an event of default depending on the terms of the agreement. An event of default may allow lenders to declare amounts outstanding under these agreements immediately due and payable, to enforce their interests against collateral pledged under these agreements or restrict our ability or GM Financial's ability to obtain additional borrowings. No technical defaults or covenant violations existed at December 31, 2017.