Derivative Financial Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Automotive The following table presents the notional amounts of derivative financial instruments in our automotive operations:



	Fair Value Level	June 30, 2019		December 31, 2018
Derivatives not designated as hedges(a)
Foreign currency	2	$	4,327	$	2,710
Commodity	2	761		658
PSA warrants(b)	2	45		45
Total derivative financial instruments		$	5,133	$	3,413

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(a)	The fair value of these derivative instruments at June 30, 2019 and December 31, 2018 and the gains/losses included in our condensed consolidated income statements for the three and six months ended June 30, 2019 and 2018 were insignificant, unless otherwise noted.


(b)	The fair value of the PSA warrants located in Other assets was $994 million and $827 million at June 30, 2019 and December 31, 2018. We recorded gains in Interest income and other non-operating income, net of $32 million and $27 million in the three months ended June 30, 2019 and 2018 and $171 million and $153 million in the six months ended June 30, 2019 and 2018.

We estimate the fair value of the PSA warrants using a Black-Scholes formula. The significant inputs to the model include the PSA stock price and the estimated dividend yield. We are entitled to receive any dividends declared by PSA through the conversion date upon exercise of the warrants.

GM Financial The following table presents the notional amounts of GM Financial's derivative financial instruments:



	Fair Value Level	June 30, 2019		December 31, 2018
Derivatives designated as hedges(a)
Fair value hedges – interest rate swaps(b)	2	$	13,046	$	9,533
Fair value hedges – foreign currency swaps(b)	2	1,822		1,829
Cash flow hedges
Interest rate swaps	2	504		768
Foreign currency swaps	2	3,317		2,075
Derivatives not designated as hedges(a)
Interest rate contracts(c)	2	88,912		99,666
Total derivative financial instruments(d)		$	107,601	$	113,871

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(a)

The fair value of these derivative instruments at June 30, 2019 and December 31, 2018 and the gains/losses included in our condensed consolidated income statements and statements of comprehensive income for the three and six months ended June 30, 2019 and 2018 were insignificant, unless otherwise noted. Amounts accrued for interest payments in a net receivable position are included in Other assets. Amounts accrued for interest payments in a net payable position are included in Other liabilities.


(b)	The fair value of these derivative instruments located in Other assets was $390 million and insignificant at June 30, 2019 and December 31, 2018. The fair value of these derivative instruments located in Other liabilities was insignificant and $291 million at June 30, 2019 and December 31, 2018.


(c)	The fair value of these derivative instruments located in Other assets was $240 million and $372 million at June 30, 2019 and December 31, 2018. The fair value of these derivative instruments located in Other liabilities was $378 million and $520 million at June 30, 2019 and December 31, 2018.


(d)	We held insignificant amounts and posted insignificant amounts and $451 million of collateral available for netting at June 30, 2019 and December 31, 2018.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the condensed consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:



	June 30, 2019					December 31, 2018
	Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)			Carrying Amount of Hedged Items		Cumulative Amount of Fair Value Hedging Adjustments(a)
GM Financial long-term debt	$	20,545	$	(57	)	$	17,923	$	459

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(a)

Includes $208 million and $247 million of adjustments remaining on hedged items for which hedge accounting has been discontinued at June 30, 2019 and December 31, 2018.