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Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

Debt

Automotive The following table presents debt in our automotive operations:

			September 30, 2020												December 31, 2019
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Secured debt			$	191					$	190					$	167					$	165
Unsecured debt			28,194						30,961						13,909						15,247
Finance lease liabilities			359						383						310						516
Total automotive debt(a)			$	28,744					$	31,534					$	14,386					$	15,928
Fair value utilizing Level 1 inputs									$	18,294											$	13,628
Fair value utilizing Level 2 inputs									$	13,240											$	2,300
Available under credit facility agreements(b)									$	7,585											$	17,285
Weighted-average interest rate on outstanding short-term debt(c)									3.4		%										4.9		%
Weighted-average interest rate on outstanding long-term debt(c)									3.9		%										5.4		%

__________

(a)Includes net discount and debt issuance costs of $512 million and $540 million at September 30, 2020 and December 31, 2019.

(b)Excludes our 364-day, $2.0 billion facility designated for exclusive use by GM Financial.

(c)Includes coupon rates on debt denominated in various foreign currencies and interest free loans.

Unsecured debt primarily consists of revolving credit facilities and senior notes. In March 2020, we borrowed: (1) $3.4 billion against our three-year, $4.0 billion facility; (2) $2.0 billion against our three-year, $3.0 billion facility, which reduced to $2.0 billion in May 2020 (three-year, $2.0 billion transformation facility); and (3) $10.5 billion against our five-year, $10.5 billion facility, with maturity dates ranging from 2021 to 2023. In September 2020, we repaid $3.2 billion of the three-year, $4.0 billion facility and repaid in full the three-year, $2.0 billion transformation facility. In October 2020, we repaid $3.9 billion of our five-year, $10.5 billion facility.

In April 2020, we renewed our 364-day, $2.0 billion facility designated for exclusive use by GM Financial for an additional 364-day term and extended $3.6 billion of the three-year, $4.0 billion facility for an additional year expiring in April 2022. The remaining portion will expire in April 2021, unless extended. As part of the extension of the three-year, $4.0 billion facility, we have agreed not to execute any share repurchases until we no longer have outstanding borrowings under the revolving credit facilities, except for the three-year, $2.0 billion transformation facility. In addition, we are restricted from paying dividends on our common shares if outstanding borrowings under the revolving credit facilities exceed $5.0 billion, with the exception of the three-year, $2.0 billion transformation facility.

In May 2020, we issued $4.0 billion in aggregate principal amount of senior unsecured notes with a weighted average interest rate of 6.11% and maturity dates ranging from 2023 to 2027. The notes are governed by a sixth supplemental indenture and the same base indenture that governs our existing notes, which contains terms and covenants customary for these types of securities, including a limitation on the amount of certain secured debt we may incur. The net proceeds from the issuance of these senior unsecured notes provide additional financial flexibility and will be used for general corporate purposes. In May 2020, we also entered into a new unsecured 364-day, $2.0 billion revolving credit facility as an additional source of available liquidity. In August 2020, we repaid $500 million of our floating rate senior unsecured debt upon maturity.

GM Financial The following table presents debt of GM Financial:

			September 30, 2020												December 31, 2019
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Secured debt			$	35,671					$	36,108					$	39,959					$	40,160
Unsecured debt			53,151						54,226						48,979						50,239
Total GM Financial debt			$	88,822					$	90,334					$	88,938					$	90,399
Fair value utilizing Level 2 inputs									$	88,768											$	88,481
Fair value utilizing Level 3 inputs									$	1,566											$	1,918

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 assets. Refer to Note 10 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 2.22% at September 30, 2020. The revolving credit facilities have maturity dates ranging from 2020 to 2026 and securitization notes payable have maturity dates ranging from 2021 to 2028. At the end of the revolving period, if not renewed, the debt of revolving credit facilities will amortize over a defined period. In the nine months ended September 30, 2020, GM Financial renewed revolving credit facilities with total borrowing capacity of $17.3 billion and issued $16.6 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 1.33% and maturity dates ranging from 2021 to 2028.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at September 30, 2020 have maturity dates ranging from 2020 to 2030 and have a weighted-average interest rate of 3.27%. In the nine months ended September 30, 2020, GM Financial issued $8.4 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 3.08% and maturity dates ranging from 2023 to 2030.

Unsecured credit facilities and other unsecured debt have original maturities of up to four years. The weighted-average interest rate on these credit facilities and other unsecured debt was 2.46% at September 30, 2020.

Contractual Maturities The following table summarizes contractual maturities including finance leases at September 30, 2020:

			Automotive						Automotive Financing						Total
2020 (October 1, 2020 to December 31, 2020)			$	526					$	10,569					$	11,095
2021			1,783						27,835						29,618
2022			113						17,198						17,311
2023(a)			13,002						12,255						25,257
2024			71						6,966						7,037
2025			2,558						6,307						8,865
Thereafter			11,203						7,233						18,436
			$	29,256					$	88,363					$	117,619

__________

(a)$3.9 billion of the Automotive amount shown has been repaid on our five-year, $10.5 billion facility in October 2020.

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- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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