GM Financial Receivables and Transactions



	September 30, 2018									December 31, 2017
	Retail			Commercial			Total			Retail			Commercial			Total
Finance receivables, collectively evaluated for impairment, net of fees	$	35,442		$	10,601		$	46,043		$	30,486		$	9,935		$	40,421
Finance receivables, individually evaluated for impairment, net of fees	2,308			67			2,375			2,228			22			2,250
GM Financial receivables	37,750			10,668			48,418			32,714			9,957			42,671
Less: allowance for loan losses	(839		)	(61		)	(900		)	(889		)	(53		)	(942		)
GM Financial receivables, net	$	36,911		$	10,607		$	47,518		$	31,825		$	9,904		$	41,729

Fair value of GM Financial receivables utilizing Level 2 inputs							$	10,607								$	9,904
Fair value of GM Financial receivables utilizing Level 3 inputs							$	36,551								$	31,831



	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Allowance for loan losses at beginning of period	$	873		$	893		$	942		$	805
Provision for loan losses	180			204			444			573
Charge-offs	(285		)	(287		)	(878		)	(858		)
Recoveries	130			135			398			420
Effect of foreign currency	2			3			(6		)	8
Allowance for loan losses at end of period	$	900		$	948		$	900		$	948

The allowance for loan losses on retail and commercial finance receivables included a collective allowance of $575 million and $611 million and a specific allowance of $325 million and $331 million at September 30, 2018 and December 31, 2017.

Retail Finance Receivables We use proprietary scoring systems in the 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 score or its equivalent) and contract characteristics. We also consider other factors such as employment history, financial stability and capacity to pay. Subsequent to origination we review the credit quality of retail finance receivables based on customer payment activity. At September 30, 2018 and December 31, 2017, 27% and 33% of retail finance receivables were from consumers with sub-prime credit scores, which are defined as FICO or equivalent scores 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 the payment was contractually due. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $847 million and $778 million at September 30, 2018 and December 31, 2017. The following table summarizes the contractual amount of delinquent retail finance receivables, which is not significantly different than the recorded investment of the retail finance receivables:



	September 30, 2018				September 30, 2017
	Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
31-to-60 days delinquent	$	1,302	3.5	%	$	1,176	3.6	%
Greater-than-60 days delinquent	498		1.3	%	521		1.6	%
Total finance receivables more than 30 days delinquent	1,800		4.8	%	1,697		5.2	%
In repossession	53		0.1	%	55		0.2	%
Total finance receivables more than 30 days delinquent or in repossession	$	1,853	4.9	%	$	1,752	5.4	%

Retail finance receivables classified as troubled debt restructurings and individually evaluated for impairment were $2.3 billion and $2.2 billion and the allowance for loan losses included $317 million and $328 million of specific allowances on these receivables at September 30, 2018 and December 31, 2017.

Commercial Finance Receivables Our commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. Dealers in Group VI are subject to additional restrictions on funding, including suspension of lines of credit and liquidation of assets. The commercial finance receivables on non-accrual status were insignificant at September 30, 2018 and December 31, 2017. The following table summarizes the credit risk profile by dealer risk rating of the commercial finance receivables:



		September 30, 2018		December 31, 2017
Group I	– Dealers with superior financial metrics	$	2,077	$	1,915
Group II	– Dealers with strong financial metrics	3,905		3,465
Group III	– Dealers with fair financial metrics	3,197		3,239
Group IV	– Dealers with weak financial metrics	960		997
Group V	– Dealers warranting special mention due to elevated risks	422		260
Group VI	– Dealers with loans classified as substandard, doubtful or impaired	107		81
		$	10,668	$	9,957

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are shown in GM Financial's condensed consolidated balance sheets and statements of income. All balance sheet amounts in the table below are eliminated. Income statement amounts may not fully eliminate due to timing.



	September 30, 2018		December 31, 2017
Condensed Consolidated Balance Sheets
Commercial finance receivables, net due from GM consolidated dealers	$	437	$	355
Direct-financing lease receivables from GM subsidiaries	$	125	$	88
Subvention receivable(a)	$	735	$	306
Commercial loan funding payable	$	86	$	90



	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables	$	142	$	129	$	409	$	361
Leased vehicle subvention earned	$	827	$	786	$	2,438	$	2,246

__________


(a)	Cash paid by Automotive segments to GM Financial for subvention was $1.1 billion for the three months ended September 30, 2018 and 2017 and $2.8 billion and $3.3 billion for the nine months ended September 30, 2018 and 2017.

GM Financial’s Board of Directors declared a $375 million dividend on its common stock on October 26, 2018, which we received on October 30, 2018.