General Motors Financial Company, Inc. - FORM 10-Q

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EX-32.1 - EXHIBIT 32.1 OFFICERS' CERTIFICATIONS OF PERIODIC REPORT PURSUANT TO SECTION 906 - General Motors Financial Company, Inc.	gmfexhibit321q32016.htm
EX-31.1 - EXHIBIT 31.1 OFFICERS' CERTIFICATIONS OF PERIODIC REPORT PURSUANT TO SECTION 302 - General Motors Financial Company, Inc.	gmfexhibit311q32016.htm

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________

FORM 10-Q

(Mark One)



ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016



o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period ________________ to ________________

Commission file number 1-10667

______________________________________________

General Motors Financial Company, Inc.

(Exact name of registrant as specified in its charter)



State of Texas		75-2291093
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

801 Cherry Street, Suite 3500, Fort Worth, Texas 76102

(Address of principal executive offices, including Zip Code)

(817) 302-7000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes Q No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes Q No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	o	Accelerated filer	o	Non-accelerated filer	ý	Smaller Reporting Company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No Q

As of October 24, 2016, there were 505 shares of the registrant’s common stock, par value $1.00 per share, outstanding. All of the registrant’s common stock is owned by General Motors Holdings, LLC.

INDEX



		Page
PART I
Item 1.	Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income and Comprehensive Income	2
	Condensed Consolidated Statements of Cash Flows	3
	Notes to Condensed Consolidated Financial Statements	4
	Note 1. Summary of Significant Accounting Policies	4
	Note 2. Related Party Transactions	4
	Note 3. Finance Receivables	6
	Note 4. Leased Vehicles	9
	Note 5. Restricted Cash	9
	Note 6. Equity in Net Assets of Non-consolidated Affiliates	9
	Note 7. Debt	10
	Note 8. Variable Interest Entities	11
	Note 9. Derivative Financial Instruments and Hedging Activities	12
	Note 10. Commitments and Contingencies	13
	Note 11. Income Taxes	14
	Note 12. Segment Reporting	14
	Note 13. Accumulated Other Comprehensive Loss	16
	Note 14. Regulatory Capital	16
	Note 15. Guarantor Condensed Consolidating Financial Statements	16
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II		37
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 6.	Exhibits	38
	Signature	39

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

PART I

Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts) (Unaudited)



	September 30, 2016			December 31, 2015
ASSETS
Cash and cash equivalents	$	2,588		$	3,061
Finance receivables, net (Note 3; Note 8 VIEs)	41,132			36,781
Leased vehicles, net (Note 4; Note 8 VIEs)	31,775			20,172
Restricted cash (Note 5; Note 8 VIEs)	2,055			1,941
Goodwill	1,198			1,189
Equity in net assets of non-consolidated affiliates (Note 6)	940			986
Property and equipment, net of accumulated depreciation of $121 and $91	253			219
Deferred income taxes	310			231
Related party receivables (Note 2)	850			573
Other assets	1,010			751
Total assets	$	82,111		$	65,904
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Secured debt (Note 7; Note 8 VIEs)	$	35,237		$	30,689
Unsecured debt (Note 7)	33,526			23,657
Accounts payable and accrued expenses	1,419			1,218
Deferred income	2,226			1,454
Deferred income taxes	299			129
Related party payables (Note 2)	407			362
Other liabilities	379			343
Total liabilities	73,493			57,852
Commitments and contingencies (Note 10)
Shareholder's equity
Common stock, $1.00 par value per share, 1,000 shares authorized and 505 shares issued	—			—
Additional paid-in capital	6,495			6,484
Accumulated other comprehensive loss (Note 13)	(1,049		)	(1,104		)
Retained earnings	3,172			2,672
Total shareholder's equity	8,618			8,052
Total liabilities and shareholder's equity	$	82,111		$	65,904

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In millions) (Unaudited)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenue
Finance charge income	$	837		$	842		$	2,481		$	2,544
Leased vehicle income	1,590			797			4,164			1,827
Other income	72			68			221			205
Total revenue	2,499			1,707			6,866			4,576
Costs and expenses
Salaries and benefits	223			185			619			531
Other operating expenses	169			135			450			414
Total operating expenses	392			320			1,069			945
Leased vehicle expenses	1,202			629			3,163			1,423
Provision for loan losses	172			144			519			440
Interest expense	541			412			1,505			1,183
Total costs and expenses	2,307			1,505			6,256			3,991
Equity income (Note 6)	36			29			109			85
Income before income taxes	228			231			719			670
Income tax provision (Note 11)	81			52			219			155
Net income	147			179			500			515
Other comprehensive (loss) income, net of tax
Unrealized loss on cash flow hedges	(1		)	—			(5		)	—
Defined benefit plans	—			—			—			1
Foreign currency translation adjustment	(10		)	(282		)	60			(524		)
Other comprehensive (loss) income, net of tax	(11		)	(282		)	55			(523		)
Comprehensive income (loss)	$	136		$	(103	)	$	555		$	(8	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) (Unaudited)



	Nine Months Ended September 30,
	2016			2015
Net cash provided by operating activities	$	3,856		$	2,167
Cash flows from investing activities
Purchases of retail finance receivables, net	(13,252		)	(13,099		)
Principal collections and recoveries on retail finance receivables	9,904			8,718
Net funding of commercial finance receivables	(1,682		)	(179		)
Purchases of leased vehicles, net	(15,030		)	(11,258		)
Proceeds from termination of leased vehicles	1,801			662
Acquisition of international operations	—			(1,049		)
Disposition of equity interest	—			125
Purchases of property and equipment	(71		)	(64		)
Change in restricted cash	(123		)	(236		)
Other investing activities	(3		)	24
Net cash used in investing activities	(18,456		)	(16,356		)
Cash flows from financing activities
Net change in debt (original maturities less than three months)	497			539
Borrowings and issuance of secured debt	19,404			15,095
Payments on secured debt	(14,599		)	(10,903		)
Borrowings and issuance of unsecured debt	11,299			9,559
Payments on unsecured debt	(2,386		)	(1,195		)
Debt issuance costs	(119		)	(124		)
Net cash provided by financing activities	14,096			12,971
Net decrease in cash and cash equivalents	(504		)	(1,218		)
Effect of foreign exchange rate changes on cash and cash equivalents	31			(154		)
Cash and cash equivalents at beginning of period	3,061			2,974
Cash and cash equivalents at end of period	$	2,588		$	1,602

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Basis of Presentation The condensed consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain special-purpose financing entities utilized in secured financing transactions, which are considered variable interest entities ("VIEs"). All intercompany transactions and balances have been eliminated in consolidation.

The interim period consolidated financial statements, including the notes thereto, are condensed and do not include all disclosures required by generally accepted accounting principles ("GAAP") in the United States of America. These interim period condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that are included in our Annual Report on Form 10-K filed on February 3, 2016 ("Form 10-K"). Except as otherwise specified, dollar amounts presented within tables are stated in millions.

The condensed consolidated financial statements at September 30, 2016, and for the three and nine months ended September 30, 2016 and 2015, are unaudited and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for such interim periods. The results for interim periods are not necessarily indicative of results for a full year.

Segment Information We are the wholly-owned captive finance subsidiary of General Motors Company ("GM"). We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in two operating segments. The North America Segment includes our operations in the U.S. and Canada. The International Segment includes our operations in all other countries.

Recently Issued Accounting Standards Not Yet Adopted In February 2016 the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update 2016-02, “Leases” (ASU 2016-02), which requires the lessee to recognize most leases on the balance sheet thereby resulting in the recognition of lease assets and liabilities for those leases currently classified as operating leases. The accounting for lessors is largely unchanged. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently assessing the impact the adoption of ASU 2016-02 will have on our consolidated financial statements.

In June 2016 the FASB issued Accounting Standard Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires entities to use a current expected credit loss ("CECL") model which is a new impairment model based on expected losses rather than incurred losses. Under this model an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. The entity's estimate would consider relevant information about past events, current conditions, and reasonable and supportable forecasts, which will result in recognition of lifetime expected credit losses upon loan origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. We are currently assessing the impact the adoption of ASU 2016-13 will have on our consolidated financial statements.

Note 2. Related Party Transactions

We offer loan and lease finance products through GM-franchised dealers to customers purchasing new and certain used vehicles manufactured by GM and make commercial loans directly to GM-franchised dealers and their affiliates. We also offer commercial loans to dealers that are consolidated by GM and those balances are included in our finance receivables, net.

Under subvention programs, GM makes cash payments to us for offering incentivized rates and structures on retail loan and lease finance products. In addition, GM makes payments to us to cover certain interest payments on commercial loans. We also provide funding under lines of credit to GM, which are included in our net funding of commercial finance receivables on the condensed consolidated statements of cash flows.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

We have related party payables due to GM, primarily for commercial finance receivables originated but not yet funded. These payables typically settle within 30 days. The following tables present related party transactions:



Balance Sheet Data	September 30, 2016		December 31, 2015
Commercial finance receivables, net due from dealers consolidated by GM^(a)	$	338	$	229
Advances drawn on lines of credit due from GM^(b)	$	466	$	190
Subvention receivable^(c)	$	384	$	383
Commercial loan funding payable^(d)	$	399	$	351
Junior Subordinated Revolving Credit Facility^(e)	$	415	$	—



	Three Months Ended September 30,				Nine Months Ended September 30,
Income Statement Data	2016		2015		2016		2015
Interest subvention earned^(f)	$	119	$	89	$	331	$	252
Leased vehicle subvention earned^(g)	$	593	$	294	$	1,592	$	626

_________________


(a)	Included in finance receivables, net.


(b)	Included in related party receivables.


(c)	Included in related party receivables. We received subvention payments from GM of $1.0 billion and $1.2 billion for the three months ended September 30, 2016 and 2015 and $3.2 billion and $2.5 billion for the nine months ended September 30, 2016 and 2015.


(d)	Included in related party payables.


(e)	Included in unsecured debt.


(f)	Included in finance charge income.


(g)	Included as a reduction to leased vehicle expenses.

Under our support agreement with GM (the “Support Agreement”), if our earning assets leverage ratio at the end of any calendar quarter exceeds the applicable threshold set in the Support Agreement, we may require GM to provide funding sufficient to bring our earning assets leverage ratio to within the applicable threshold. In determining our earning assets leverage ratio (net earning assets divided by adjusted equity) under the Support Agreement, net earning assets means our finance receivables, net, plus leased vehicles, net, and adjusted equity means our equity, net of goodwill and inclusive of outstanding junior subordinated debt, as each may be adjusted for derivative accounting from time to time.

Additionally, the Support Agreement provides that GM will own all of our outstanding voting shares as long as we have any unsecured debt securities outstanding and that GM will use its commercially reasonable efforts to ensure that we will continue to be designated as a subsidiary borrower of up to $4.0 billion under GM’s corporate revolving credit facilities, which were amended in May 2016. These amendments increased GM's borrowing capacity on its corporate revolving credit facilities from $12.5 billion to $14.5 billion. We have the ability to borrow up to $1.0 billion under GM's three-year, $4.0 billion unsecured revolving credit facility and $3.0 billion under GM's five-year, $10.5 billion unsecured revolving credit facility, subject to available capacity. GM also agreed to certain provisions in the Support Agreement intended to ensure that we maintain adequate access to liquidity. Pursuant to these provisions, GM provided us with a $1.0 billion junior subordinated unsecured intercompany revolving credit facility (the "Junior Subordinated Revolving Credit Facility").

Since October 1, 2010, we have been included in GM's consolidated U.S. federal income tax returns. For taxable income we recognize in any period beginning on or after October 1, 2010, we are obligated to pay GM for our share of the consolidated U.S. federal and certain state tax liabilities. Amounts owed to GM for income taxes are accrued and recorded as a related party payable. At September 30, 2016 and December 31, 2015, there are no related party taxes payable to GM due to our taxable loss position.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 3. Finance Receivables



	September 30, 2016			December 31, 2015
Retail finance receivables
Retail finance receivables, collectively evaluated for impairment, net of fees^(a)	$	30,408		$	27,512
Retail finance receivables, individually evaluated for impairment, net of fees	1,838			1,612
Total retail finance receivables^(b)	32,246			29,124
Less: allowance for loan losses - collective	(566		)	(515		)
Less: allowance for loan losses - specific	(256		)	(220		)
Total retail finance receivables, net	31,424			28,389
Commercial finance receivables
Commercial finance receivables, collectively evaluated for impairment, net of fees	9,704			8,357
Commercial finance receivables, individually evaluated for impairment, net of fees	56			82
Total commercial finance receivables	9,760			8,439
Less: allowance for loan losses - collective	(46		)	(38		)
Less: allowance for loan losses - specific	(6		)	(9		)
Total commercial finance receivables, net	9,708			8,392
Total finance receivables, net	$	41,132		$	36,781
Fair value of finance receivables	$	41,530		$	36,937

________________

(a) Includes $1.3 billion and $1.1 billion of direct-financing leases at September 30, 2016 and December 31, 2015.

(b) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $200 million and $179 million at September 30, 2016 and December 31, 2015.

We estimate the fair value of retail finance receivables using observable and unobservable Level 3 inputs within a cash flow model. 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. The projected cash flows are then discounted to derive the fair value of the portfolio. Macroeconomic factors could affect the credit performance of the portfolio and, therefore, could potentially affect the assumptions used in our cash flow model. A substantial majority of our commercial finance receivables have variable interest rates and maturities of one year or less. Therefore, the carrying amount, a Level 2 input, is considered to be a reasonable estimate of fair value.



Retail Finance Receivables	Nine Months Ended September 30,
	2016			2015
Retail finance receivables beginning balance	$	29,124		$	25,623
Purchases of retail finance receivables	13,397			13,107
Principal collections and other	(9,479		)	(8,136		)
Charge-offs	(853		)	(710		)
Foreign currency translation	57			(1,897		)
Retail finance receivables ending balance	$	32,246		$	27,987



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Allowance for retail loan losses beginning balance	$	814		$	721		$	735		$	655
Provision for loan losses	170			141			515			437
Charge-offs	(294		)	(256		)	(853		)	(710		)
Recoveries	134			124			417			357
Foreign currency translation	(2		)	(12		)	8			(21		)
Allowance for retail loan losses ending balance	$	822		$	718		$	822		$	718

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Retail Credit Quality We use proprietary scoring systems in the underwriting process that measure the credit quality of the receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO score), and contract characteristics. We also consider other factors, such as employment history, financial stability and capacity to pay. At the time of loan origination, substantially all of our international customers have the equivalent of prime credit scores. In the North America Segment, while we historically focused on consumers with lower than prime credit scores, we have expanded our prime lending programs. A summary of the credit risk profile by FICO score band or equivalent scores, determined at origination, of the retail finance receivables in the North America Segment is as follows:



	September 30, 2016				December 31, 2015
	Amount		Percent		Amount		Percent
Prime - FICO Score 680 and greater	$	6,902	33.2	%	$	4,418	24.4	%
Near-prime - FICO Score 620 to 679	3,305		15.9		2,890		15.9
Sub-prime - FICO Score less than 620	10,559		50.9		10,840		59.7
Balance at end of period	$	20,766	100.0	%	$	18,148	100.0	%

In addition, we review the credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract.

The following is a consolidated summary of the contractual amounts of retail finance receivables, which is not significantly different than recorded investment, that are (i) more than 30 days delinquent, but not yet in repossession, and (ii) in repossession, but not yet charged off:



	September 30, 2016				September 30, 2015
	Total		Percent of Contractual Amount Due		Total		Percent of Contractual Amount Due
31 - 60 days	$	1,127	3.5	%	$	1,137	4.0	%
Greater than 60 days	503		1.5		454		1.6
Total finance receivables more than 30 days delinquent	1,630		5.0		1,591		5.6
In repossession	60		0.2		53		0.2
Total finance receivables more than 30 days delinquent or in repossession	$	1,690	5.2	%	$	1,644	5.8	%

The accrual of finance charge income has been suspended on $816 million and $778 million of retail finance receivables (based on contractual amount due) at September 30, 2016 and December 31, 2015.

Impaired Retail Finance Receivables - TDRs Retail finance receivables that become classified as troubled debt restructurings ("TDRs") are separately assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. Accounts that become classified as TDRs because of a payment deferral accrue interest at the contractual rate and an additional fee is collected (where permitted) at each time of deferral and recorded as a reduction of accrued interest. No interest or fees are forgiven on a payment deferral to a customer; therefore, there are no additional financial effects of deferred loans becoming classified as TDRs. Accounts in the U.S. in Chapter 13 bankruptcy would have already been placed on non-accrual; therefore, there are no additional financial effects from these loans becoming classified as TDRs. Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

At September 30, 2016 and December 31, 2015, the outstanding balance of retail finance receivables in the International Segment determined to be TDRs was insignificant; therefore, the following information is presented with regard to the TDRs in the North America Segment only. The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below:



	September 30, 2016			December 31, 2015
Outstanding recorded investment	$	1,837		$	1,612
Less: allowance for loan losses	(256		)	(220		)
Outstanding recorded investment, net of allowance	$	1,581		$	1,392
Unpaid principal balance	$	1,884		$	1,642

Additional information about loans classified as TDRs is presented below:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Average outstanding recorded investment	$	1,785	$	1,403	$	1,725	$	1,361
Finance charge income recognized	$	55	$	41	$	156	$	122
Number of loans classified as TDRs during the period	18,548		16,122		49,327		42,246
Recorded investment of loans classified as TDRs during the period	$	315	$	270	$	846	$	716

A redefault is when an account meets the requirements for evaluation under our charge-off policy. The unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months of being modified as a TDR was insignificant for the three and nine months ended September 30, 2016 and 2015.



Commercial Finance Receivables	Nine Months Ended September 30,
	2016			2015
Commercial finance receivables beginning balance	$	8,439		$	8,072
Net funding	1,411			292
Charge-offs	—			—
Foreign currency translation	(90		)	(519		)
Commercial finance receivables ending balance	$	9,760		$	7,845

Commercial Credit Quality We extend wholesale credit to dealers primarily in the form of approved lines of credit to purchase new vehicles as well as used vehicles. Each commercial lending request is evaluated, taking into consideration the borrower's financial condition and the underlying collateral for the loan. We use proprietary models to assign each dealer a risk rating. These models use historical performance data to identify key factors about a dealer that we consider significant in predicting a dealer's ability to meet its financial obligations. We also consider numerous other financial and qualitative factors including, but not limited to, capitalization and leverage, liquidity and cash flow, profitability and credit history.

We regularly review our models to confirm the continued business significance and statistical predictability of the factors and update the models to incorporate new factors or other information that improves statistical predictability. In addition, we verify the existence of the assets collateralizing the receivables by physical audits of vehicle inventories, which are performed with increased frequency for higher risk (i.e., Groups III, IV, V and VI) dealers. We perform a credit review of each dealer at least annually and adjust the dealer's risk rating, if necessary. Dealers in Group VI are subject to additional funding restrictions including suspension of lines of credit and liquidation of assets.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Performance of our commercial finance receivables is evaluated based on our internal dealer risk rating analysis, as payment for wholesale receivables is generally not required until the dealer has sold or leased the vehicle inventory. All receivables from the same dealer customer share the same risk rating. A summary of the credit risk profile by dealer risk rating of the commercial finance receivables is as follows:



			September 30, 2016				December 31, 2015
			Amount		Percent		Amount		Percent
Group I	-	Dealers with superior financial metrics	$	1,531	15.7	%	$	1,299	15.4	%
Group II	-	Dealers with strong financial metrics	3,026		31.0		2,648		31.4
Group III	-	Dealers with fair financial metrics	3,282		33.6		2,703		32.0
Group IV	-	Dealers with weak financial metrics	1,164		11.9		1,100		13.0
Group V	-	Dealers warranting special mention due to potential weaknesses	611		6.3		505		6.0
Group VI	-	Dealers with loans classified as substandard, doubtful or impaired	146		1.5		184		2.2
Ending balance			$	9,760	100.0	%	$	8,439	100.0	%

At September 30, 2016 and December 31, 2015 substantially all of our commercial finance receivables were current with respect to payment status and none were classified as TDRs. Activity in the allowance for commercial loan losses was insignificant for the three and nine months ended September 30, 2016 and 2015.

Note 4. Leased Vehicles



	September 30, 2016			December 31, 2015
Leased vehicles	$	44,147		$	27,587
Manufacturer incentives	(7,039		)	(4,582		)
	37,108			23,005
Less: accumulated depreciation	(5,333		)	(2,833		)
Leased vehicles, net	$	31,775		$	20,172

The following table summarizes minimum rental payments due to us as lessor under operating leases:



	Years Ending December 31,
	2016		2017		2018		2019		2020		Thereafter		Total
Minimum rental payments under operating leases	$	1,352	$	5,019	$	3,515	$	1,289	$	102	$	3	$	11,280

Note 5. Restricted Cash



	September 30, 2016		December 31, 2015
Revolving credit facilities	$	321	$	345
Securitization notes payable	1,682		1,531
Other	52		65
Total restricted cash	$	2,055	$	1,941

Most of the restricted cash is held in variable interest entities, as further discussed in Note 8 - "Variable Interest Entities." Restricted cash for securitization notes payable and revolving credit facilities includes collections from borrowers that have not yet been used for repayment of debt. In addition, this cash includes funds deposited in restricted cash accounts as collateral required to support securitization transactions or to provide additional collateral for borrowings under revolving credit facilities.

Note 6. Equity in Net Assets of Non-consolidated Affiliates

We use the equity method to account for our equity interest in SAIC-GMAC Automotive Finance Company Limited ("SAIC-GMAC"), a joint venture that conducts auto finance operations in China. The income of SAIC-GMAC is not consolidated into our financial statements; rather, our proportionate share of the earnings is reflected as equity income.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

We received cash dividends from SAIC-GMAC of $129 million in the nine months ended September 30, 2016. At September 30, 2016, we had undistributed earnings of $100 million related to SAIC-GMAC.

Note 7. Debt



	September 30, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt
Revolving credit facilities	$	7,947	$	7,944	$	7,548	$	7,494
Securitization notes payable	27,290		27,474		23,141		23,177
Total secured debt	$	35,237	$	35,418	$	30,689	$	30,671
Unsecured debt
Senior notes	$	27,199	$	28,053	$	18,973	$	19,045
Credit facilities	3,676		3,678		2,759		2,753
Retail customer deposits	1,929		1,936		1,260		1,262
Other unsecured debt	722		722		665		666
Total unsecured debt	$	33,526	$	34,389	$	23,657	$	23,726
Total Secured and Unsecured debt	$	68,763	$	69,807	$	54,346	$	54,397
Fair value utilizing Level 2 inputs			$	64,847			$	48,716
Fair value utilizing Level 3 inputs			$	4,960			$	5,681

The fair value of our 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 that has terms of one year or less or has been priced within the last six months, the carrying amount or par value is considered to be a reasonable estimate of fair value. The fair value of our 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 Most of the secured debt was issued by variable interest entities, as further discussed in Note 8 - "Variable Interest Entities." This debt is repayable only from proceeds related to the underlying pledged finance receivables and leasing related assets.

During the nine months ended September 30, 2016, we entered into new credit facilities or renewed credit facilities with a total additional net borrowing capacity of $3.1 billion, and we issued securitization notes payable of $11.8 billion.

Unsecured Debt In March 2016, our top-tier holding company issued $2.75 billion in senior notes comprised of $1.5 billion of 4.20% notes due in March 2021 and $1.25 billion of 5.25% notes due in March 2026. All of these notes are guaranteed solely by AmeriCredit Financial Services, Inc. ("AFSI").

In May 2016, our top-tier holding company issued $3.0 billion in senior notes comprised of $1.4 billion of 2.40% notes due in May 2019, $1.2 billion of 3.70% notes due in May 2023 and $400 million of floating rate notes due in May 2019. All of these notes are guaranteed solely by AFSI.

Also in May 2016, one of our European subsidiaries issued €500 million of 1.168% notes under our Euro medium term notes program. These notes are due in May 2020 and are guaranteed by our top-tier holding company and AFSI.

In July 2016, our top-tier holding company issued $2.0 billion of 3.20% senior notes due in July 2021. These notes are guaranteed solely by AFSI.

In September 2016, our top-tier holding company issued €750 million of 0.955% notes under our Euro medium term notes program. These notes are due in September 2023 and are guaranteed solely by AFSI.

Subsequent to September 30, 2016, our top-tier holding company issued $1.75 billion in senior notes comprised of $750 million of 2.35% notes due in October 2019, $750 million of 4.00% notes due in October 2026 and $250 million of floating rate notes due in October 2019. All of these notes are guaranteed solely by AFSI.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During 2015, we began accepting deposits from retail banking customers in Germany. Following is summarized information for our deposits at September 30, 2016 and December 31, 2015:



	September 30, 2016				December 31, 2015
	Outstanding Balance		Weighted Average Interest Rate		Outstanding Balance		Weighted Average Interest Rate
Overnight deposits	$	793	0.60	%	$	555	1.00	%
Term deposits -12 months	466		1.07	%	337		1.32	%
Term deposits - 24 months	277		1.29	%	123		1.44	%
Term deposits - 36 months	393		1.52	%	245		1.65	%
Total deposits	$	1,929	1.00	%	$	1,260	1.25	%

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. Certain of our secured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. Our unsecured senior notes contain covenants including limitations on our ability to incur certain liens. At September 30, 2016, we were in compliance with these debt covenants.

Note 8. Variable Interest Entities



Securitizations and credit facilities	September 30, 2016		December 31, 2015
Restricted cash	$	2,003	$	1,876
Finance receivables, net of fees	$	24,498	$	24,942
Lease related assets	$	18,243	$	11,684
Secured debt	$	34,217	$	29,386

These amounts are related to securitization and credit facilities held by consolidated VIEs. Our continuing involvement with these VIEs consists of servicing assets held by the entities and holding residual interests in the entities. We have determined that we are the primary beneficiary of each VIE because we hold both (i) the power to direct the activities of the VIEs that most significantly impact the VIEs' economic performance and (ii) the obligation to absorb losses from and the right to receive benefits of the VIEs that could potentially be significant to the VIEs. We are not required, and do not currently intend, to provide any additional financial support to these VIEs. Liabilities recognized as a result of consolidating these entities generally do not represent claims against us or our other subsidiaries and assets recognized generally are for the benefit of these entities operations and cannot be used to satisfy our or our subsidiaries obligations.

Other VIEs We consolidate certain operating entities that provide auto finance and financial services, which we do not control through a majority voting interest. We manage these entities and maintain a controlling financial interest in them and are exposed to the risks of ownership through contractual arrangements. The majority voting interests in these entities are indirectly wholly-owned by our parent, GM. The amounts presented below are stated prior to intercompany eliminations and include amounts related to securitizations and credit facilities held by consolidated VIEs. The following table summarizes the assets and liabilities of these VIEs:



	September 30, 2016		December 31, 2015
Assets^(a)	$	4,617	$	3,652
Liabilities^(b)	$	3,881	$	2,941

_________________


(a)	Comprised primarily of finance receivables, net of $3.6 billion and $3.2 billion at September 30, 2016 and December 31, 2015.


(b)	Comprised primarily of debt of $2.9 billion and $2.6 billion at September 30, 2016 and December 31, 2015.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table summarizes the revenue and net income of these VIEs:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Total revenue	$	51	$	41	$	159	$	122
Net income	$	4	$	6	$	20	$	25

Other transfers of finance receivables Under certain debt agreements, we transfer finance receivables to entities which we do not control through majority voting interest or through contractual arrangements. These transfers do not meet the criteria to be considered sales under U.S. GAAP; therefore, the finance receivables and the related debt are included in our consolidated financial statements, similar to the treatment of finance receivables and related debt of our consolidated VIEs. Any collections received on the transferred receivables are available only for the repayment of the related debt. At September 30, 2016 and December 31, 2015, $1.2 billion and $1.5 billion in finance receivables had been transferred in secured funding arrangements to third-party banks, to which $1.1 billion and $1.4 billion in secured debt was outstanding.

Note 9. Derivative Financial Instruments and Hedging Activities



		September 30, 2016				December 31, 2015
	Level	Notional		Fair Value		Notional		Fair Value
Derivatives designated as hedges
Assets
Fair value hedges
Interest rate swaps^(a)	2	$	3,450	$	58	$	—	$	—
Cash flow hedges
Interest rate swaps^(b)	3	889		1		—		—
Foreign currency swaps^(a)	2	702		1		—		—
Total assets^(c)		$	5,041	$	60	$	—	$	—
Liabilities
Fair value hedges
Interest rate swaps^(a)	2	$	3,500	$	20	$	1,000	$	6
Cash flow hedges
Interest rate swaps^(b)	3	1,870		3		—		—
Foreign currency swaps^(a)	2	140		1		—		—
Total liabilities^(d)		$	5,510	$	24	$	1,000	$	6
Derivatives not designated as hedges
Assets
Interest rate swaps^(b)	3	$	5,483	$	22	$	4,122	$	8
Interest rate options^(a)	2	8,734		8		6,327		19
Foreign currency swaps^(a)	2	1,371		71		1,460		48
Total assets^(c)		$	15,588	$	101	$	11,909	$	75
Liabilities
Interest rate swaps^(b)	3	$	7,670	$	29	$	8,041	$	24
Interest rate options^(a)	2	10,047		7		5,892		19
Total liabilities^(d)		$	17,717	$	36	$	13,933	$	43

_________________


(a)	The fair value 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.


(b)	The fair value was derived using the income approach based on a discounted cash flow model, in which expected cash flows are discounted using current risk-adjusted rates.


(c)	Included in other assets in the condensed consolidated balance sheets.


(d)	Included in other liabilities in the condensed consolidated balance sheets.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table presents information on the gains/(losses) on derivative instruments included in the condensed consolidated statements of income and comprehensive income:



	Income (Losses) Recognized In Income
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Fair value hedges
Interest rate contracts^(a)(b)	$	6		$	—		$	26		$	—
Cash flow hedges
Interest rate contracts^(a)	(2		)	—			(2		)	—
Foreign currency contracts	(1		)	—			(1		)	—
Derivatives not designated as hedges
Interest rate contracts^(a)	7			(13		)	(8		)	(12		)
Foreign currency derivatives^(c)	36			28			201			39
Total	$	46		$	15		$	216		$	27



	Gains Recognized In Accumulated Other Comprehensive Loss
	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016			2015
Cash flow hedges
Interest rate contracts^(a)	$	2	$	—	$	(2	)	$	—
Foreign currency contracts	—		—		—			—
Total	$	2	$	—	$	(2	)	$	—



	Gains Reclassified From Accumulated Other Comprehensive Loss Into Income
	Three Months Ended September 30,					Nine Months Ended September 30,
	2016			2015		2016			2015
Cash flow hedges
Interest rate contracts^(a)	$	1		$	—	$	1		$	—
Foreign currency contracts	(4		)	—		(4		)	—
Total	$	(3	)	$	—	$	(3	)	$	—

_________________


(a)	Recognized in earnings as interest expense.


(b)	Includes hedge ineffectiveness which reflects the net change in the fair value of interest rate contracts of $57 million and $19 million offset by the change in fair value of hedged debt attributable to the hedged risk of $54 million and $14 million for the three and nine months ended September 30, 2016.


(c)	Activity is substantially offset by translation activity (included in operating expenses) related to foreign currency-denominated loans.

The activity for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) was insignificant for the three and nine months ended September 30, 2016 and 2015.

Note 10. Commitments and Contingencies

Guarantees of Indebtedness The payments of principal and interest on senior notes issued by our top-tier holding company, our primary Canadian operating subsidiary and a European subsidiary are guaranteed by our primary U.S. operating subsidiary, AFSI. At September 30, 2016 and December 31, 2015, the par value of these senior notes was $27.3 billion and $19.1 billion. See Note 15 - "Guarantor Condensed Consolidating Financial Statements" for further discussion.

Legal Proceedings As a retail finance company, we are subject to various customer claims and litigation seeking damages and statutory penalties, based upon, among other things, usury, disclosure inaccuracies, wrongful repossession, violations of bankruptcy stay provisions, certificate of title disputes, fraud, breach of contract and discriminatory treatment of credit applicants. Some

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

litigation against us could take the form of class action complaints by customers and certain legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. We establish reserves for legal claims when payments associated with the claims become probable and the payments can be reasonably estimated. Given the inherent difficulty of predicting the outcome of litigation and regulatory matters, it is generally very difficult to predict what the eventual outcome will be, and when the matter will be resolved. The actual costs of resolving legal claims may be higher or lower than any amounts reserved for the claims. At September 30, 2016, we estimated our reasonably possible legal exposure for unfavorable outcomes of up to $96 million and have accrued $35 million.

In July 2014, we were served with a subpoena by the U.S. Department of Justice directing us to produce certain documents relating to our and our subsidiaries’ and affiliates’ origination and securitization of sub-prime automobile loans since 2007 in connection with an investigation by the U.S. Department of Justice in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Among other matters, the subpoena requests information relating to the underwriting criteria used to originate these automobile loans and the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile loans. We have subsequently been served with additional investigative subpoenas to produce documents from state attorneys general and other governmental offices relating to our retail auto loan business and securitization of auto loans. These investigations are ongoing and could in the future result in the imposition of damages, fines or civil or criminal claims and/or penalties. No assurance can be given that the ultimate outcome of the investigations or any resulting proceedings would not materially and adversely affect us or any of our subsidiaries and affiliates.

Other Administrative Tax Matters We accrue non-income tax liabilities for contingencies when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time.

In evaluating indirect tax matters, we take into consideration factors such as our historical experience with matters of similar nature, specific facts and circumstances, and the likelihood of prevailing. We reevaluate and update our accruals as matters progress over time. Where there is a reasonable possibility that losses exceeding amounts already recognized may be incurred, our estimate of the additional range of loss is up to $44 million.

Note 11. Income Taxes

For interim income tax reporting we estimate our annual effective tax rate and apply it to our year-to-date ordinary income. Tax jurisdictions with a projected or year-to-date loss for which a tax benefit cannot be realized are excluded from the annualized effective tax rate. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur.

In the three and nine months ended September 30, 2016, income tax expense of $81 million and $219 million primarily resulted from tax expense attributable to entities included in our effective rate calculation. In the three and nine months ended September 30, 2015, income tax expense of $52 million and $155 million primarily resulted from tax expense attributable to entities included in our effective tax rate calculation. The increase in tax expense is due primarily to differences in U.S. taxation on foreign earnings.

We are included in GM’s consolidated U.S. federal income tax return and for certain states’ income tax returns. Net operating losses and certain tax credits generated by us have been utilized by GM; however, income tax expense and deferred tax balances are presented in these financial statements as if we filed our own tax returns in each jurisdiction.

Note 12. Segment Reporting

We offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in two operating segments: the North America Segment (consisting of operations in the U.S. and Canada) and the International Segment (consisting of operations in all other countries). Our chief operating decision maker evaluates the operating results and performance of our business based on these operating segments. The management of each segment is responsible for executing our strategies.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

For segment reporting purposes only, interest expense related to the senior notes has been allocated based on targeted leverage for each segment. Interest expense in excess of the targeted overall leverage is reflected in the "Corporate" column below. In addition, the interest income on intercompany loans provided to the international operations is presented in the "Corporate" column as revenue. Key financial data for our operating segments were as follows:



	Three Months Ended September 30, 2016
	North America		International		Corporate		Eliminations		Total
Total revenue	$	2,092	$	407	$	—	$	—	$	2,499
Operating expenses	240		152		—		—		392
Leased vehicle expenses	1,194		8		—		—		1,202
Provision for loan losses	147		25		—		—		172
Interest expense	383		158		—		—		541
Equity income	—		36		—		—		36
Income before income taxes	$	128	$	100	$	—	$	—	$	228



	Three Months Ended September 30, 2015
	North America		International		Corporate			Eliminations			Total
Total revenue	$	1,302	$	405	$	2		$	(2	)	$	1,707
Operating expenses	185		135		—			—			320
Leased vehicle expenses	626		3		—			—			629
Provision for loan losses	106		38		—			—			144
Interest expense	214		175		25			(2		)	412
Equity income	—		29		—			—			29
Income (loss) before income taxes	$	171	$	83	$	(23	)	$	—		$	231



	Nine Months Ended September 30, 2016
	North America		International		Corporate			Eliminations		Total
Total revenue	$	5,666	$	1,200	$	(1	)	$	1	$	6,866
Operating expenses	656		413		—			—		1,069
Leased vehicle expenses	3,143		20		—			—		3,163
Provision for loan losses	449		70		—			—		519
Interest expense	1,025		479		—			1		1,505
Equity income	—		109		—			—		109
Income (loss) before income taxes	$	393	$	327	$	(1	)	$	—	$	719



	Nine Months Ended September 30, 2015
	North America		International		Corporate			Eliminations			Total
Total revenue	$	3,293	$	1,283	$	13		$	(13	)	$	4,576
Operating expenses	530		415		—			—			945
Leased vehicle expenses	1,416		7		—			—			1,423
Provision for loan losses	335		105		—			—			440
Interest expense	572		564		60			(13		)	1,183
Equity income	—		85		—			—			85
Income (loss) before income taxes	$	440	$	277	$	(47	)	$	—		$	670

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)



	September 30, 2016						December 31, 2015
	North America		International		Total		North America		International		Total
Finance receivables, net	$	25,366	$	15,766	$	41,132	$	21,558	$	15,223	$	36,781
Leased vehicles, net	$	31,570	$	205	$	31,775	$	20,086	$	86	$	20,172
Total assets	$	62,596	$	19,515	$	82,111	$	47,419	$	18,485	$	65,904

Note 13. Accumulated Other Comprehensive Loss



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Unrealized loss on cash flow hedge
Beginning balance	$	(4	)	$	—		$	—		$	—
Change in value of cash flow hedge, net of tax	(1		)	—			(5		)	—
Ending balance	(5		)	—			(5		)	—
Defined benefit plans
Beginning balance	(13		)	(10		)	(13		)	(11		)
Unrealized gain on subsidiary pension, net of tax	—			—			—			1
Ending balance	(13		)	(10		)	(13		)	(10		)
Foreign currency translation adjustment
Beginning balance	(1,021		)	(664		)	(1,091		)	(422		)
Translation (loss) income	(10		)	(282		)	60			(524		)
Ending balance	(1,031		)	(946		)	(1,031		)	(946		)
Total accumulated other comprehensive loss	$	(1,049	)	$	(956	)	$	(1,049	)	$	(956	)

Note 14. Regulatory Capital

We are required to comply with a wide variety of laws and regulations. Our International Segment includes the operations of certain stand-alone entities that operate in local markets as either banks or regulated finance companies that are subject to regulatory restrictions. These regulatory restrictions, among other things, require that these entities meet certain minimum capital requirements and may restrict dividend distributions and ownership of certain assets. We were in compliance with all regulatory capital requirements as most recently reported.

Total assets of our regulated international banks and finance companies were approximately $12.6 billion and $11.1 billion at September 30, 2016 and December 31, 2015.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 15. Guarantor Condensed Consolidating Financial Statements

The payment of principal and interest on senior notes issued by our top-tier holding company is currently guaranteed solely by AFSI (the "Guarantor") and none of our other subsidiaries (the "Non-Guarantor Subsidiaries"). The Guarantor is a 100% owned consolidated subsidiary and is unconditionally liable for the obligations represented by the senior notes. The Guarantor’s guarantee may be released only upon customary circumstances, the terms of which vary by issuance. Customary circumstances include the sale or disposition of all of the Guarantor’s assets or capital stock, the achievement of investment grade rating of the senior notes and legal or covenant defeasance.

The condensed consolidating financial statements present consolidating financial data for (i) General Motors Financial Company, Inc. (on a parent-only basis), (ii) the Guarantor, (iii) the combined Non-Guarantor Subsidiaries and (iv) the parent company and our subsidiaries on a consolidated basis at September 30, 2016 and December 31, 2015, and for the three and nine months ended September 30, 2016 and 2015 (after the elimination of intercompany balances and transactions).

Investments in subsidiaries are accounted for by the parent company using the equity method for purposes of this presentation. Results of operations of subsidiaries are therefore reflected in the parent company's investment accounts and earnings. The principal elimination entries set forth below eliminate investments in subsidiaries and intercompany balances and transactions.

We determined that a revision was required to correct the classification of certain intercompany amounts between General Motors Financial Company, Inc. and Guarantor and Non-Guarantor Subsidiaries that were previously being presented net within the change in the due from/due to affiliates line item in the condensed consolidating balance sheet in the financing activities section of the condensed consolidating statements of cash flows for the nine months ended September 30, 2015. As a result, correcting adjustments have been made from what was previously reported to (1) reclassify $6.1 billion of the net change in the due from affiliates for General Motors Financial Company, Inc. within the condensed consolidating statements of cash flows to the investing activities section; and (2) reclassify $3.9 billion of the net change in the due from affiliates for the Guarantor within the condensed consolidating statements of cash flows to the investing activities section. In addition, reclassifications have been made solely within the investing activities section of the condensed consolidating statements of cash flows to separately present cash flow activities related to repurchases by the Guarantor of receivables that had previously been transferred to Non-Guarantor Subsidiaries of $945 million. These adjustments had no effect on the condensed consolidated financial statements at or for the three and nine months ended September 30, 2015.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2016

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	1,692		$	896		$	—		$	2,588
Finance receivables, net	—			7,932			33,200			—			41,132
Leased vehicles, net	—			—			31,775			—			31,775
Restricted cash	—			19			2,036			—			2,055
Goodwill	1,095			—			103			—			1,198
Equity in net assets of non-consolidated affiliates	—			—			940			—			940
Property and equipment, net	—			127			126			—			253
Deferred income taxes	422			—			265			(377		)	310
Related party receivables	—			53			797			—			850
Other assets	18			311			850			(169		)	1,010
Due from affiliates	23,089			14,177			—			(37,266		)	—
Investment in affiliates	9,357			4,539			—			(13,896		)	—
Total assets	$	33,981		$	28,850		$	70,988		$	(51,708	)	$	82,111
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Secured debt	$	—		$	—		$	35,406		$	(169	)	$	35,237
Unsecured debt	25,085			—			8,441			—			33,526
Accounts payable and accrued expenses	201			289			929			—			1,419
Deferred income	—			—			2,226			—			2,226
Deferred income taxes	—			15			661			(377		)	299
Related party payables	—			—			407			—			407
Other liabilities	77			38			264			—			379
Due to affiliates	—			23,027			14,239			(37,266		)	—
Total liabilities	25,363			23,369			62,573			(37,812		)	73,493
Shareholder's equity
Common stock	—			—			698			(698		)	—
Additional paid-in capital	6,495			79			3,972			(4,051		)	6,495
Accumulated other comprehensive loss	(1,049		)	(147		)	(1,029		)	1,176			(1,049		)
Retained earnings	3,172			5,549			4,774			(10,323		)	3,172
Total shareholder's equity	8,618			5,481			8,415			(13,896		)	8,618
Total liabilities and shareholder's equity	$	33,981		$	28,850		$	70,988		$	(51,708	)	$	82,111

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	2,259		$	802		$	—		$	3,061
Finance receivables, net	—			4,808			31,973			—			36,781
Leased vehicles, net	—			—			20,172			—			20,172
Restricted cash	—			60			1,881			—			1,941
Goodwill	1,095			—			94			—			1,189
Equity in net assets of non-consolidated affiliates	—			—			986			—			986
Property and equipment, net	—			41			178			—			219
Deferred income taxes	212			—			179			(160		)	231
Related party receivables	—			27			546			—			573
Other assets	32			32			687			—			751
Due from affiliates	15,573			7,556			—			(23,129		)	—
Investment in affiliates	8,476			6,425			—			(14,901		)	—
Total assets	$	25,388		$	21,208		$	57,498		$	(38,190	)	$	65,904
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Secured debt	$	—		$	—		$	30,689		$	—		$	30,689
Unsecured debt	17,087			—			6,570			—			23,657
Accounts payable and accrued expenses	181			717			320			—			1,218
Deferred income	—			—			1,454			—			1,454
Deferred income taxes	—			289			—			(160		)	129
Related party payables	—			—			362			—			362
Other liabilities	68			34			241			—			343
Due to affiliates	—			15,495			7,634			(23,129		)	—
Total liabilities	17,336			16,535			47,270			(23,289		)	57,852
Shareholder's equity
Common stock	—			—			698			(698		)	—
Additional paid-in capital	6,484			79			6,490			(6,569		)	6,484
Accumulated other comprehensive loss	(1,104		)	(175		)	(1,095		)	1,270			(1,104		)
Retained earnings	2,672			4,769			4,135			(8,904		)	2,672
Total shareholder's equity	8,052			4,673			10,228			(14,901		)	8,052
Total liabilities and shareholder's equity	$	25,388		$	21,208		$	57,498		$	(38,190	)	$	65,904

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended September 30, 2016

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors		Eliminations			Consolidated
Revenue
Finance charge income	$	—		$	127		$	710	$	—		$	837
Leased vehicle income	—			—			1,590		—			1,590
Other income	—			213			30		(171		)	72
Total revenue	—			340			2,330		(171		)	2,499
Costs and expenses
Salaries and benefits	—			157			66		—			223
Other operating expenses	6			54			210		(101		)	169
Total operating expenses	6			211			276		(101		)	392
Leased vehicle expenses	—			—			1,202		—			1,202
Provision for loan losses	—			102			70		—			172
Interest expense	171			54			386		(70		)	541
Total costs and expenses	177			367			1,934		(171		)	2,307
Equity income	267			202			36		(469		)	36
Income before income taxes	90			175			432		(469		)	228
Income tax (benefit) provision	(57		)	(17		)	155		—			81
Net income	$	147		$	192		$	277	$	(469	)	$	147

Comprehensive income	$	136		$	183		$	270	$	(453	)	$	136

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended September 30, 2015

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor		Non- Guarantors			Eliminations			Consolidated
Revenue
Finance charge income	$	—		$	114	$	728		$	—		$	842
Leased vehicle income	—			—		797			—			797
Other income	2			137		33			(104		)	68
Total revenue	2			251		1,558			(104		)	1,707
Costs and expenses
Salaries and benefits	—			79		106			—			185
Other operating expenses	21			25		150			(61		)	135
Total operating expenses	21			104		256			(61		)	320
Leased vehicle expenses	—			—		629			—			629
Provision for loan losses	—			112		32			—			144
Interest expense	134			—		321			(43		)	412
Total costs and expenses	155			216		1,238			(104		)	1,505
Equity income	255			167		29			(422		)	29
Income before income taxes	102			202		349			(422		)	231
Income tax (benefit) provision	(77		)	15		114			—			52
Net income	$	179		$	187	$	235		$	(422	)	$	179

Comprehensive (loss) income	$	(103	)	$	141	$	(47	)	$	(94	)	$	(103	)

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Nine Months Ended September 30, 2016

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors		Eliminations			Consolidated
Revenue
Finance charge income	$	—		$	344		$	2,137	$	—		$	2,481
Leased vehicle income	—			—			4,164		—			4,164
Other income	(1		)	628			74		(480		)	221
Total revenue	(1		)	972			6,375		(480		)	6,866
Costs and expenses
Salaries and benefits	—			432			187		—			619
Other operating expenses	2			175			565		(292		)	450
Total operating expenses	2			607			752		(292		)	1,069
Leased vehicle expenses	—			—			3,163		—			3,163
Provision for loan losses	—			282			237		—			519
Interest expense	612			(67		)	1,148		(188		)	1,505
Total costs and expenses	614			822			5,300		(480		)	6,256
Equity income	858			538			109		(1,396		)	109
Income before income taxes	243			688			1,184		(1,396		)	719
Income tax (benefit) provision	(257		)	63			413		—			219
Net income	$	500		$	625		$	771	$	(1,396	)	$	500

Comprehensive income	$	555		$	653		$	837	$	(1,490	)	$	555

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Nine Months Ended September 30, 2015

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor		Non- Guarantors		Eliminations			Consolidated
Revenue
Finance charge income	$	—		$	294	$	2,250	$	—		$	2,544
Leased vehicle income	—			—		1,827		—			1,827
Other income	13			363		118		(289		)	205
Total revenue	13			657		4,195		(289		)	4,576
Costs and expenses
Salaries and benefits	—			245		286		—			531
Other operating expenses	56			95		453		(190		)	414
Total operating expenses	56			340		739		(190		)	945
Leased vehicle expenses	—			—		1,423		—			1,423
Provision for loan losses	—			302		138		—			440
Interest expense	342			1		939		(99		)	1,183
Total costs and expenses	398			643		3,239		(289		)	3,991
Equity income	716			452		85		(1,168		)	85
Income before income taxes	331			466		1,041		(1,168		)	670
Income tax (benefit) provision	(184		)	6		333		—			155
Net income	$	515		$	460	$	708	$	(1,168	)	$	515

Comprehensive (loss) income	$	(8	)	$	370	$	181	$	(551	)	$	(8	)

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2016

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(469	)	$	(379	)	$	4,704		$	—		$	3,856
Cash flows from investing activities
Purchases of retail finance receivables, net	—			(12,676		)	(12,891		)	12,315			(13,252		)
Principal collections and recoveries on retail finance receivables	—			1,274			8,630			—			9,904
Proceeds from transfer of retail finance receivables, net	—			8,232			4,083			(12,315		)	—
Net funding of commercial finance receivables	—			(335		)	(1,347		)	—			(1,682		)
Purchases of leased vehicles, net	—			—			(15,030		)	—			(15,030		)
Proceeds from termination of leased vehicles	—			—			1,801			—			1,801
Purchases of property and equipment	—			(50		)	(21		)	—			(71		)
Change in restricted cash	—			41			(164		)	—			(123		)
Other investing activities				(169		)	(3		)	169			(3		)
Net change in due from affiliates	(7,506		)	(6,621		)	—			14,127			—
Net change in investment in affiliates	24			2,473			—			(2,497		)	—
Net cash used in investing activities	(7,482		)	(7,831		)	(14,942		)	11,799			(18,456		)
Cash flows from financing activities
Net change in debt (original maturities less than three months)	1			—			496			—			497
Borrowings and issuance of secured debt	—			—			19,573			(169		)	19,404
Payments on secured debt	—			—			(14,599		)	—			(14,599		)
Borrowings and issuance of unsecured debt	8,987			—			2,312			—			11,299
Payments on unsecured debt	(1,000		)	—			(1,386		)	—			(2,386		)
Net capital contributions	—			—			(2,497		)	2,497			—
Debt issuance costs	(37		)	—			(82		)	—			(119		)
Net change in due to affiliates	—			7,643			6,484			(14,127		)	—
Net cash provided by financing activities	7,951			7,643			10,301			(11,799		)	14,096
Net increase (decrease) in cash and cash equivalents	—			(567		)	63			—			(504		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			31			—			31
Cash and cash equivalents at beginning of period	—			2,259			802			—			3,061
Cash and cash equivalents at end of period	$	—		$	1,692		$	896		$	—		$	2,588

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2015

(Unaudited)



	General Motors Financial Company, Inc.			Guarantor			Non- Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(184	)	$	314		$	2,037		$	—		$	2,167
Cash flows from investing activities
Purchases of retail finance receivables, net	—			(9,045		)	(11,938		)	7,884			(13,099		)
Principal collections and recoveries on retail finance receivables	—			414			8,304			—			8,718
Proceeds from transfer of retail finance receivables, net	—			6,939			945			(7,884		)	—
Net funding of commercial finance receivables	—			172			(351		)	—			(179		)
Purchases of leased vehicles, net	—			—			(11,258		)	—			(11,258		)
Proceeds from termination of leased vehicles	—			—			662			—			662
Acquisition of international operations	(513		)	(536		)	—			—			(1,049		)
Disposition of equity interest	—			125			—			—			125
Purchases of property and equipment	—			(22		)	(42		)	—			(64		)
Change in restricted cash	—			(20		)	(216		)	—			(236		)
Other investing activities	—			—			24			—			24
Net change in due from affiliates	(6,189		)	(3,973		)	—			10,162			—
Net change in investment in affiliates	(6		)	(2,644		)	—			2,650			—
Net cash used in investing activities	(6,708		)	(8,590		)	(13,870		)	12,812			(16,356		)
Cash flows from financing activities
Net change in debt (original maturities less than three months)	—			—			539			—			539
Borrowings and issuance of secured debt	—			—			15,095			—			15,095
Payments on secured debt	—			—			(10,903		)	—			(10,903		)
Borrowings and issuance of unsecured debt	6,939			—			2,620			—			9,559
Payments on unsecured debt	—			—			(1,195		)	—			(1,195		)
Net capital contributions	—			—			2,650			(2,650		)	—
Debt issuance costs	(47		)	—			(77		)	—			(124		)
Net change in due to affiliates	—			6,844			3,318			(10,162		)	—
Net cash provided by financing activities	6,892			6,844			12,047			(12,812		)	12,971
Net increase (decrease) in cash and cash equivalents	—			(1,432		)	214			—			(1,218		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(154		)	—			(154		)
Cash and cash equivalents at beginning of period	—			2,266			708			—			2,974
Cash and cash equivalents at end of period	$	—		$	834		$	768		$	—		$	1,602

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Basis of Presentation This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying condensed consolidated financial statements and the audited consolidated financial statements and notes thereto included in our 2015 Form 10-K.

Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements" section of this MD&A and the "Risk Factors" section of our 2015 Form 10-K for a discussion of these risks and uncertainties. Except as otherwise specified, dollar amounts presented within tables are stated in millions.

Retail Our automobile finance programs in the North America Segment include full credit spectrum lending and leasing offered through GM-franchised dealers under the "GM Financial" brand. We also offer a sub-prime lending product through non-GM franchised and select independent dealers under the "AmeriCredit" brand. Our sub-prime lending program is designed to serve customers who have limited access to automobile financing through banks and credit unions. Therefore, we generally charge higher rates than those charged by banks and credit unions and expect to sustain a higher level of credit losses than on prime lending. We finance new GM vehicles, moderately-priced new vehicles from other manufacturers, and later-model, low mileage used vehicles.

The retail lending and leasing programs in our International Segment focus on financing new GM vehicles and select used vehicles, predominantly for customers with prime credit scores. We also offer finance-related insurance products through third parties, such as credit life, gap and extended warranty coverage.

We have expanded our leasing and prime lending programs through GM-franchised dealerships in North America; therefore, leasing and prime lending have become a larger percentage of our originations and retail portfolio balance. We have been the exclusive subvented lease provider for GM in the U.S. since April 2015 and the exclusive subvented loan provider for GM in the U.S. since January 2016. We define prime lending as lending to customers with FICO scores or equivalents of 680 and greater, near-prime lending as lending to customers with FICO scores or equivalents of 620 to 679, and sub-prime lending as lending to customers with FICO scores or equivalents of less than 620. The following table presents our retail loan and lease originations in North America by FICO score band or equivalents:



	Nine Months Ended September 30,
	2016				2015
	Amount		Percentage		Amount		Percentage
Prime - FICO Score 680 and greater	$	19,330	69.6	%	$	14,278	62.5	%
Near-prime - FICO Score 620 to 679	3,606		13.0		3,580		15.7
Sub-prime - FICO Score less than 620	4,829		17.4		4,967		21.8
Total originations	$	27,765	100.0	%	$	22,825	100.0	%

The following table summarizes the number of vehicles, by type that are included in Note 4 - "Leased Vehicles" to the condensed consolidated financial statements, of which the North America Segment accounted for approximately 99% at September 30, 2016 and 2015:



	September 30, 2016			September 30, 2015
	Number	Percentage		Number	Percentage
Cars	407,236	33.4	%	234,435	35.1	%
Trucks	207,199	17.0		97,656	14.7
Crossovers	605,780	49.6		334,493	50.2
Total	1,220,215	100.0	%	666,584	100.0	%

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

The following table summarizes additional information for North America operating leases:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Operating leases originated ^(a)	160,147		170,164		516,016		404,016
Operating leases terminated ^(b)	36,511		15,786		94,294		41,710
Operating lease vehicles returned ^(c)	17,427		5,618		44,409		15,905
Return rate ^(d)	48	%	36	%	47	%	38	%

________________


(a)	Operating leases originated represents the number of operating leases we purchase during a given period. Since early 2015, operating leases originated increased due to the implementation of our exclusive subvention arrangement with GM.


(b)	Operating leases terminated represents the number of vehicles for which the lease has ended during a given period. Operating leases terminated increased due to the growth of the lease portfolio.


(c)	Operating lease vehicles returned represents the number of vehicles returned to us at the end of the lease term. Operating lease vehicles returned increased due to the growth of the lease portfolio.


(d)	Return rates are calculated as the number of operating leased vehicles returned divided by the number of operating leases terminated. Due to the age and size of our lease portfolio, the current return rates are lower than we expect them to become as our lease portfolio grows and matures.

Commercial Our commercial lending program is offered primarily to our GM-franchised dealer customers and their affiliates. Commercial lending products consist of floorplan financing, also known as wholesale or inventory financing, which is lending to finance vehicle inventory, as well as dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, and to purchase and/or finance dealership real estate. Other commercial products include primarily parts and accessories, dealer fleet financing and storage center financing.

We establish new and used vehicle inventory credit lines at the time of dealer account acquisition, subject to revision as part of subsequent credit reviews. The maximum availability on these credit lines is based upon a dealer’s monthly vehicle sales rate and financial strength at the time of account acquisition or periodic review, as applicable. At times, a dealer’s vehicle inventory needs may exceed its credit line availability for a number of reasons, such as seasonal factory build-out, planned marketing events, reductions in sales, or other business and seasonal factors. When a dealer's needs require that its outstanding balance be allowed to exceed the maximum availability under its credit line(s), we may accept a temporary overline situation, reallocate credit amounts among existing lines, temporarily or permanently increase the dealer's credit line(s), or suspend the dealer's credit lines(s). The action we take depends on communications with the dealer, analysis of the dealer's financial condition and the underlying cause of the need for the overline.

Financing We primarily finance our loan, lease and commercial originations through the use of our secured and unsecured credit facilities, through public and private securitization transactions where such markets are developed, through the issuance of unsecured debt in the public markets and by accepting deposits from retail banking customers in Germany. Generally, we seek to fund our operations through local sources of funding to minimize currency and country risk. We may issue debt globally in order to enhance investor diversification and support financing needs for North America. As such, the mix of funding sources varies from country to country, based on the characteristics of our earning assets and the relative development of the capital markets in each country.

RESULTS OF OPERATIONS

In our tabular presentation of the changes in results between financial periods, we provide the following information: (i) the amount of change excluding the impact of foreign currency translation (“FX”); (ii) the amount of the impact of foreign currency translation; and (iii) the total change. The amount of the impact of foreign currency translation was derived by translating current year results at the average of prior year exchange rates, and was driven by the appreciation of the U.S. Dollar against the currencies used by our foreign operations. We believe the amount of change excluding the foreign currency translation impact facilitates a better comparison of results. In our discussion below, we discuss changes in relevant items excluding any foreign currency translation impact.

In June 2016, the United Kingdom ("U.K.") completed its referendum on continued membership in the European Union and voted to leave. This result did not have a material impact on the results of operations for the three or nine months ended September 30, 2016; however, this result has adversely impacted the British Pound and the uncertainty has put strain on the U.K. automotive industry. If current post-referendum market conditions are sustained for an extended period of time, it could have an impact on the results of our operations, which we do not expect to be material for the remainder of 2016.

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

Three Months Ended September 30, 2016 compared to Three Months Ended September 30, 2015

Average Earning Assets:



	Three Months Ended September 30,
	2016						2015						2016 vs. 2015
	North America		International^(a)		Total		North America		International^(a)		Total		Change excluding FX			FX			Total change			%
Average retail finance receivables	$	20,088	$	11,425	$	31,513	$	16,435	$	11,396	$	27,831	$	4,261		$	(579	)	$	3,682		13.2	%
Average commercial finance receivables	5,005		4,424		9,429		3,475		4,258		7,733		1,982			(286		)	1,696			21.9	%
Average finance receivables	25,093		15,849		40,942		19,910		15,654		35,564		6,243			(865		)	5,378			15.1	%
Average leased vehicles, net	29,934		186		30,120		14,875		66		14,941		15,188			(9		)	15,179			101.6	%
Average earning assets	$	55,027	$	16,035	$	71,062	$	34,785	$	15,720	$	50,505	$	21,431		$	(874	)	$	20,557		40.7	%

Retail finance receivables purchased	$	3,360	$	1,698	$	5,058	$	3,155	$	1,586	$	4,741	$	442		$	(125	)	$	317		6.7	%
Average new retail loan size (in dollars)	$	29,030	$	11,442			$	27,744	$	11,488
Leased vehicles purchased	$	6,113	$	57	$	6,170	$	6,161	$	19	$	6,180	$	(10	)	$	—		$	(10	)	(0.2	)%
Average new lease size (in dollars)	$	38,171	$	21,915			$	36,206	$	19,939

_________________


(a)	Average balances for the International Segment are calculated using the monthly ending balances.

Average earning assets increased in the North America Segment as a result of the continued increase of our share of GM's business in that segment. The increase in average leased vehicles, net primarily resulted from our exclusive lease subvention arrangement in the U.S. with GM, which was implemented on a brand-by-brand basis between February and April 2015.

In the North America Segment, the average annual percentage rate for retail finance receivables purchased during the three months ended September 30, 2016 decreased to 6.2% from 6.7% during the prior period, and the average new retail loan size increased. These changes are due primarily to the expansion of our prime lending program and our exclusive loan subvention arrangement in the U.S. with GM, resulting in higher volumes of originations of loans for new vehicles, which typically are for higher amounts and have lower contractual rates due to the rate subvention support provided by GM.

Revenue:



	Three Months Ended September 30,
	2016									2015									2016 vs. 2015
	North America			International			Total			North America			International			Total			Change excluding FX			FX			Total change			%
Finance charge income
Retail finance receivables	$	459		$	269		$	728		$	463		$	281		$	744		$	(13	)	$	(3	)	$	(16	)	(2.2	)%
Commercial finance receivables	$	40		$	69		$	109		$	26		$	72		$	98		$	14		$	(3	)	$	11		11.2	%
Leased vehicle income	$	1,579		$	11		$	1,590		$	793		$	4		$	797		$	792		$	1		$	793		99.5	%
Other income	$	14		$	58		$	72		$	20		$	48		$	68		$	26		$	(22	)	$	4		5.9	%
Effective yield - retail finance receivables	9.1		%	9.4		%	9.2		%	11.2		%	9.8		%	10.6		%
Effective yield - commercial finance receivables	3.2		%	6.2		%	4.6		%	3.0		%	6.7		%	5.0		%

In the North America Segment, finance charge income on retail finance receivables remained flat for the three months ended September 30, 2016, compared to the three months ended September 30, 2015, as the growth in the portfolio was substantially

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GENERAL MOTORS FINANCIAL COMPANY, INC.

offset by a decrease in effective yield. The effective yield on our retail finance receivables decreased due primarily to a decrease in the average annual percentage rate on new originations as we have increased our prime lending. The effective yield represents finance charges and fees recorded in earnings during the period as a percentage of average retail finance receivables. The effective yield, as a percentage of average retail finance receivables, is higher than the contractual rates of our auto finance contracts primarily because the effective yield includes, in addition to the contractual rates and fees, the impact of rate subvention provided by GM.

The increase in leased vehicle income reflects the increase in the size of the leased asset portfolio.

Costs and Expenses:



	Three Months Ended September 30,
	2016									2015									2016 vs. 2015
	North America			International			Total			North America			International			Total			Change excluding FX		FX			Total change		%
Operating expenses	$	240		$	152		$	392		$	185		$	135		$	320		$	75	$	(3	)	$	72	22.5	%
Leased vehicle expenses	$	1,194		$	8		$	1,202		$	626		$	3		$	629		$	573	$	—		$	573	91.1	%
Provision for loan losses	$	147		$	25		$	172		$	106		$	38		$	144		$	27	$	1		$	28	19.4	%
Interest expense^(a)	$	383		$	158		$	541		$	243		$	169		$	412		$	127	$	2		$	129	31.3	%
Average debt outstanding	$	52,205		$	14,097		$	66,302		$	33,341		$	13,378		$	46,719		$	20,208	$	(625	)	$	19,583	41.9	%
Effective rate of interest on debt	2.9		%	4.5		%	3.2		%	2.9		%	5.0		%	3.5		%

(a) Amounts do not reflect allocation of senior note interest expense, and therefore may not agree with amounts presented in Note 12 - "Segment Reporting" in our condensed consolidated financial statements in this Form 10-Q.

Operating Expenses The increase in operating expenses relates to the growth in earning assets and investments to support the prime lending program and enhance lease origination and servicing capabilities in the North America Segment. Operating expenses as an annualized percentage of average earning assets were 2.2% and 2.5% for the three months ended September 30, 2016 and 2015.

Leased Vehicle Expenses Leased vehicle expenses, which are primarily comprised of depreciation of leased vehicles, increased due to the growth of the leased asset portfolio.

Provision for Loan Losses The provision for retail loan losses increased due primarily to the growth in the retail finance receivables portfolio. As an annualized percentage of average retail finance receivables, the provision for retail loan losses was 2.1% for the three months ended September 30, 2016 and 2015. The provision for commercial loan losses was insignificant for the three months ended September 30, 2016 and 2015.

Interest Expense Interest expense increased due primarily to an increase in the average debt outstanding resulting from growth in the loan and lease portfolios, partially offset by a decrease in the effective rate of interest on debt.

Taxes Our consolidated effective income tax rate was 42.2% and 25.7% of income before income taxes and equity income for the three months ended September 30, 2016 and 2015. The increase in the effective tax rate is due primarily to differences in U.S. taxation on foreign earnings.

Other Comprehensive Income:

Foreign Currency Translation Adjustment Foreign currency translation adjustments included in other comprehensive (loss) income were $(10) million and $(282) million for three months ended September 30, 2016 and 2015. Most of the international operations use functional currencies other than the U.S. Dollar. Translation adjustments result from changes in the values of our international currency-denominated assets and liabilities as the value of the U.S. Dollar changes in relation to international currencies.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Nine Months Ended September 30, 2016 compared to Nine Months Ended September 30, 2015

Average Earning Assets:



	Nine Months Ended September 30,
	2016						2015						2016 vs. 2015
	North America		International^(a)		Total		North America		International^(a)		Total		Change excluding FX		FX			Total change		%
Average retail finance receivables	$	19,266	$	11,262	$	30,528	$	15,084	$	11,650	$	26,734	$	4,792	$	(998	)	$	3,794	14.2	%
Average commercial finance receivables	4,565		4,502		9,067		3,312		4,358		7,670		1,761		(364		)	1,397		18.2	%
Average finance receivables	23,831		15,764		39,595		18,396		16,008		34,404		6,553		(1,362		)	5,191		15.1	%
Average leased vehicles, net	26,104		142		26,246		11,236		50		11,286		15,049		(89		)	14,960		132.6	%
Average earning assets	$	49,935	$	15,906	$	65,841	$	29,632	$	16,058	$	45,690	$	21,602	$	(1,451	)	$	20,151	44.1	%

Retail finance receivables purchased	$	8,485	$	4,912	$	13,397	$	8,070	$	5,037	$	13,107	$	769	$	(479	)	$	290	2.2	%
Average new retail loan size (in dollars)	$	27,783	$	11,537			$	25,874	$	12,129
Leased vehicles purchased	$	19,280	$	158	$	19,438	$	14,755	$	56	$	14,811	$	4,667	$	(40	)	$	4,627	31.2	%
Average new lease size (in dollars)	$	37,363	$	22,191			$	36,521	$	20,909

_________________


(a)	Average balances for the International Segment are calculated using the monthly ending balances.

Average earning assets increased in the North America Segment as a result of the continued increase of our share of GM's business in that segment. Average earning assets in the International Segment decreased solely due to the impact of foreign currency translation. The increase in average leased vehicles, net primarily resulted from our exclusive lease subvention arrangement in the U.S. with GM, which was implemented on a brand-by-brand basis between February and April 2015.

In the North America Segment, the average annual percentage rate for retail finance receivables purchased during the nine months ended September 30, 2016 decreased to 7.0% from 8.3% during the prior period, and the average new retail loan size increased. These changes are due primarily to the expansion of our prime lending program and our exclusive loan subvention arrangement in the U.S. with GM, resulting in higher volumes of originations of loans for new vehicles, which typically are for higher amounts and have lower contractual rates due to the rate subvention support provided by GM.

Revenue:



	Nine Months Ended September 30,
	2016									2015									2016 vs. 2015
	North America			International			Total			North America			International			Total			Change excluding FX		FX			Total change			%
Finance charge income
Retail finance receivables	$	1,362		$	798		$	2,160		$	1,345		$	899		$	2,244		$	9	$	(93	)	$	(84	)	(3.7	)%
Commercial finance receivables	$	108		$	213		$	321		$	74		$	226		$	300		$	39	$	(18	)	$	21		7.0	%
Leased vehicle income	$	4,138		$	26		$	4,164		$	1,818		$	9		$	1,827		$	2,355	$	(18	)	$	2,337		127.9	%
Other income	$	58		$	163		$	221		$	56		$	149		$	205		$	34	$	(18	)	$	16		7.8	%
Effective yield - retail finance receivables	9.4		%	9.5		%	9.5		%	11.9		%	10.3		%	11.2		%
Effective yield - commercial finance receivables	3.2		%	6.3		%	4.7		%	3.0		%	6.9		%	5.2		%

In the North America Segment, finance charge income on retail finance receivables increased slightly for the nine months ended September 30, 2016, compared to the nine months ended September 30, 2015, as the growth in the portfolio was substantially

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GENERAL MOTORS FINANCIAL COMPANY, INC.

In the International Segment, the effective yield on our retail finance receivables decreased primarily due to asset mix. Assets in higher-yield markets have decreased while assets in lower-yield markets have increased.

The increase in leased vehicle income reflects the increase in the size of the leased asset portfolio.

Costs and Expenses:



	Nine Months Ended September 30,
	2016									2015									2016 vs. 2015
	North America			International			Total			North America			International			Total			Change excluding FX		FX			Total change		%
Operating expenses	$	656		$	413		$	1,069		$	530		$	415		$	945		$	155	$	(31	)	$	124	13.1	%
Leased vehicle expenses	$	3,143		$	20		$	3,163		$	1,416		$	7		$	1,423		$	1,753	$	(13	)	$	1,740	122.3	%
Provision for loan losses	$	449		$	70		$	519		$	335		$	105		$	440		$	86	$	(7	)	$	79	18.0	%
Interest expense^(a)	$	1,025		$	480		$	1,505		$	645		$	538		$	1,183		$	382	$	(60	)	$	322	27.2	%
Average debt outstanding	$	47,812		$	13,988		$	61,800		$	28,548		$	13,509		$	42,057		$	20,888	$	(1,145	)	$	19,743	46.9	%
Effective rate of interest on debt	2.9		%	4.6		%	3.3		%	3.0		%	5.3		%	3.8		%

Operating Expenses The increase in operating expenses relates to the growth in earning assets and investments to support the prime lending program and enhance lease origination and servicing capabilities in the North America Segment. Operating expenses as an annualized percentage of average earning assets were 2.2% and 2.8% for the nine months ended September 30, 2016 and 2015.

Leased Vehicle Expenses Leased vehicle expenses, which are primarily comprised of depreciation of leased vehicles, increased due to the growth of the leased asset portfolio.

Provision for Loan Losses The provision for retail loan losses increased due primarily to the growth in the retail finance receivables portfolio. As an annualized percentage of average retail finance receivables, the provision for retail loan losses was 2.3% and 2.2% for the nine months ended September 30, 2016 and 2015. The provision for commercial loan losses was insignificant for the nine months ended September 30, 2016 and 2015.

Taxes Our consolidated effective income tax rate was 35.9% and 26.5% of income before income taxes and equity income for the nine months ended September 30, 2016 and 2015. The increase in the effective tax rate is due primarily to differences in U.S. taxation on foreign earnings.

Other Comprehensive Income:

Foreign Currency Translation Adjustment Foreign currency translation adjustments included in other comprehensive (loss) income were $60 million and $(524) million for nine months ended September 30, 2016 and 2015. Most of the international operations use functional currencies other than the U.S. Dollar. Translation adjustments result from changes in the values of our international currency-denominated assets and liabilities as the value of the U.S. Dollar changes in relation to international currencies.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

CREDIT QUALITY



Retail Finance Receivables	September 30, 2016									December 31, 2015
	North America			International			Total			North America			International			Total
Retail finance receivables, net of fees	$	20,766		$	11,480		$	32,246		$	18,148		$	10,976		$	29,124
Less: allowance for loan losses	(695		)	(127		)	(822		)	(618		)	(117		)	(735		)
Retail finance receivables, net	$	20,071		$	11,353		$	31,424		$	17,530		$	10,859		$	28,389
Number of outstanding contracts	1,058,901			1,610,720			2,669,621			955,094			1,563,831			2,518,925
Average amount of outstanding contracts (in dollars)^(a)	$	19,611		$	7,127		$	12,079		$	19,001		$	7,019		$	11,562
Allowance for loan losses as a percentage of retail finance receivables, net of fees	3.3		%	1.1		%	2.5		%	3.4		%	1.1		%	2.5		%

_________________


(a)	Average amount of outstanding contracts consists of retail finance receivables, net of fees, divided by number of outstanding contracts.

Delinquency The following is a summary of the contractual amounts of delinquent retail finance receivables, which is not materially different than recorded investment that are (i) more than 30 days delinquent, but not yet in repossession and (ii) in repossession, but not yet charged off:



	September 30, 2016								September 30, 2015
	North America		International		Total		Percent of Contractual Amount Due		North America		International		Total		Percent of Contractual Amount Due
31 - 60 days	$	1,016	$	111	$	1,127	3.5	%	$	1,039	$	98	$	1,137	4.0	%
Greater than 60 days	395		108		503		1.5		362		92		454		1.6
Total finance receivables more than 30 days delinquent	1,411		219		1,630		5.0		1,401		190		1,591		5.6
In repossession	52		8		60		0.2		47		6		53		0.2
Total finance receivables more than 30 days delinquent or in repossession	$	1,463	$	227	$	1,690	5.2	%	$	1,448	$	196	$	1,644	5.8	%

Deferrals In accordance with our policies and guidelines in the North America Segment, we, at times, offer payment deferrals to retail customers, whereby the borrower is allowed to move up to two delinquent payments to the end of the loan generally by paying a fee (approximately the interest portion of the payment deferred, except where state law provides for a lesser amount). Our policies and guidelines limit the number and frequency of deferments that may be granted. Additionally, we generally limit the granting of deferments on new accounts until a requisite number of payments have been received. Contracts receiving a payment deferral as an average quarterly percentage of average retail finance receivables outstanding were 5.1% and 5.9% for the three months ended September 30, 2016 and 2015 and 5.1% and 5.9% for the nine months ended September 30, 2016 and 2015. Deferrals in the International Segment are insignificant.

Troubled Debt Restructurings See Note 3 - "Finance Receivables" to our condensed consolidated financial statements in this Form 10-Q for further discussion of TDRs.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Net Charge-offs The following table presents charge-off data with respect to our retail finance receivables portfolio:



	Three Months Ended September 30,
	2016									2015
	North America			International			Total			North America			International			Total
Charge-offs	$	253		$	41		$	294		$	221		$	35		$	256
Less: recoveries	(118		)	(16		)	(134		)	(111		)	(13		)	(124		)
Net charge-offs	$	135		$	25		$	160		$	110		$	22		$	132
Net annualized charge-off percentage^(a)	2.7		%	0.9		%	2.0		%	2.7		%	0.8		%	1.9		%
Recovery percentage^(b)	52.3		%							56.2		%



	Nine Months Ended September 30,
	2016									2015
	North America			International			Total			North America			International			Total
Charge-offs	$	740		$	113		$	853		$	609		$	101		$	710
Less: recoveries	(378		)	(39		)	(417		)	(321		)	(36		)	(357		)
Net charge-offs	$	362		$	74		$	436		$	288		$	65		$	353
Net annualized charge-off percentage^(a)	2.5		%	0.9		%	1.9		%	2.6		%	0.7		%	1.8		%
Recovery percentage^(b)	53.8		%							57.5		%

_________________


(a)	Net annualized charge-off percentage is calculated as a percentage of average retail finance receivables.


(b)	Recovery percentage is a percentage of gross repossession charge-offs. Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.



Commercial Finance Receivables	September 30, 2016									December 31, 2015
	North America			International			Total			North America			International			Total
Commercial finance receivables, net of fees	$	5,328		$	4,432		$	9,760		$	4,051		$	4,388		$	8,439
Less: allowance for loan losses	(33		)	(19		)	(52		)	(23		)	(24		)	(47		)
Total commercial finance receivables, net	$	5,295		$	4,413		$	9,708		$	4,028		$	4,364		$	8,392
Number of dealers	745			2,143			2,888			656			2,139			2,795
Average carrying amount per dealer	$	7		$	2		$	3		$	6		$	2		$	3
Allowance for loan losses as a percentage of commercial finance receivables, net of fees	0.6		%	0.4		%	0.5		%	0.6		%	0.5		%	0.6		%

There were insignificant charge-offs of commercial finance receivables during the three and nine months ended September 30, 2016 and 2015. At September 30, 2016 and December 31, 2015, substantially all of our commercial finance receivables were current with respect to payment status and none were classified as TDRs.

Leased Vehicles At September 30, 2016 and 2015, 99.1% and 98.4% of our operating leases were current with respect to payment status.

LIQUIDITY AND CAPITAL RESOURCES

General Our primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, servicing fees, net distributions from secured debt facilities, including securitizations, secured and unsecured borrowings and collections and recoveries on finance receivables. Our primary uses of cash are purchases of retail finance receivables and leased vehicles, the funding of commercial finance receivables, repayment of secured and unsecured debt, funding credit enhancement requirements in connection with securitizations and secured debt facilities, operating expenses and interest costs.

In the North America Segment, our purchase and funding of retail and commercial finance receivables and leased vehicles are financed initially utilizing cash and borrowings on our secured credit facilities. Subsequently, our strategy is to obtain long-term financing for finance receivables and leased vehicles through securitization transactions and the issuance of unsecured debt.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

In the International Segment, our purchase and funding of finance receivables are typically financed with borrowings on secured and unsecured credit facilities. In certain countries where the debt capital and securitization markets are sufficiently developed, such as in Germany and the U.K., we obtain long-term financing through securitization transactions. In addition, we raise unsecured debt in the international capital markets through the issuance of notes under our Euro medium term note program and accept deposits from retail banking customers in Germany.

Cash Flow During the nine months ended September 30, 2016, net cash provided by operating activities increased due primarily to increased lease vehicle income resulting from growth in the leased vehicle portfolio, partially offset by increased interest expense and increased operating expenses.

During the nine months ended September 30, 2016, net cash used in investing activities increased compared to the nine months ended September 30, 2015 due to an increase in purchases of leased vehicles of $3.8 billion and an increase in net fundings of commercial finance receivables of $1.5 billion, partially offset by increased collections on retail finance receivables of $1.2 billion, an increase in proceeds received on terminated leases of $1.1 billion and $924 million used for the purchase of our equity interest in SAIC-GMAC in 2015.

During the nine months ended September 30, 2016, net cash provided by financing activities increased compared to the nine months ended September 30, 2015 due primarily to an increase in borrowings, net of repayments, of $1.1 billion.



Liquidity	September 30, 2016		December 31, 2015
Cash and cash equivalents^(a)	$	2,588	$	3,061
Borrowing capacity on unpledged eligible assets	11,586		9,697
Borrowing capacity on committed unsecured lines of credit	678		904
Borrowing capacity on the Junior Subordinated Revolving Credit Facility	585		1,000
Available liquidity	$	15,437	$	14,662

_________________


(a)	Includes $839 million and $756 million in unrestricted cash outside of the U.S. at September 30, 2016 and December 31, 2015. This cash is considered to be indefinitely invested based on specific plans for reinvestment of these earnings.

During the nine months ended September 30, 2016 available liquidity increased due primarily to additional capacity on new and renewed secured credit facilities, as well as increased borrowing capacity resulting from the issuance of unsecured debt and from increased retail deposits.

We have the ability to borrow up to $1.0 billion under GM's three-year, $4.0 billion unsecured revolving credit facility and $3.0 billion under GM's five-year, $10.5 billion unsecured revolving credit facility, subject to available capacity. Our borrowings under GM's facilities are limited by GM's ability to borrow the entire amount available under the facilities. Therefore, we may be able to borrow up to $4.0 billion in total or may be unable to borrow depending on GM's borrowing activity. If we do borrow under these facilities, we expect such borrowings would be short-term in nature and, except in extraordinary circumstances, would not be used to fund our operating activities in the ordinary course of business. Neither we, nor any of our subsidiaries, guarantee any obligations under these facilities and none of our assets secure these facilities. Liquidity available to us under the GM unsecured revolving credit facilities is not included in the table above. At September 30, 2016 we had no amounts borrowed under either of GM's unsecured revolving credit facilities.

Credit Facilities In the normal course of business, in addition to using our available cash, we utilize borrowings under our credit facilities, which may be secured and/or structured as securitizations, or may be unsecured, and we repay these borrowings as appropriate under our liquidity management strategy.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

At September 30, 2016, credit facilities consist of the following:



Facility Type	Facility Amount		Advances Outstanding
Revolving retail asset-secured facilities^(a)	$	20,906	$	7,093
Revolving commercial asset-secured facilities^(b)	4,332		854
Total secured	25,238		7,947
Unsecured committed facilities^(c)	1,512		834
Unsecured uncommitted facilities^(d)	2,427		2,427
Total unsecured	3,939		3,261
Junior Subordinated Revolving Credit Facility	1,000		415
Total	$	30,177	$	11,623

_________________


(a)	Includes committed and uncommitted revolving credit facilities backed by retail finance receivables and leases. The financial institutions providing the uncommitted facilities are not contractually obligated to advance funds under them. We had $565 million in unused borrowing capacity on these facilities at September 30, 2016.


(b)	Includes revolving credit facilities backed by loans to dealers for floorplan financing.


(c)	Does not include $4.0 billion in liquidity available to us under GM's unsecured revolving credit facilities.


(d)	The financial institutions providing the uncommitted facilities are not contractually obligated to advance funds under them. We had $1.0 billion in unused borrowing capacity on these facilities at September 30, 2016.

See Note 8 - "Debt" to our consolidated financial statements in our Form 10-K for further discussion of the terms of our revolving credit facilities.

Securitization Notes Payable We periodically finance our retail and commercial finance receivables and leases through public and private term securitization transactions, where the securitization markets are sufficiently developed. A summary of securitization notes payable is as follows:



Year of Transaction	Maturity Date^(a)			Original Note Issuance^(b)		Note Balance At September 30, 2016
2012	November 2019	-	May 2020	$	3,500	$	487
2013	July 2020	-	October 2021	$	5,655	1,231
2014	March 2019	-	September 2022	$	10,710	4,018
2015	July 2019	-	December 2023	$	14,348	9,966
2016	April 2018	-	June 2024	$	12,727	11,648
Total active securitizations						27,350
Debt issuance costs						(60		)
						$	27,290

_________________


(a)	Maturity dates represent legal final maturity of issued notes. The notes are expected to be paid based on amortization of the finance receivables and leases pledged.


(b)	At historical foreign currency exchange rates at the time of issuance.

Our securitizations utilize special purpose entities which are also VIEs that meet the requirements to be consolidated in our financial statements. See Note 8 - "Variable Interest Entities" to our condensed consolidated financial statements in this Form 10-Q for further discussion.

Senior Notes, Retail Customer Deposits and Other Unsecured Debt We periodically access the debt capital markets through the issuance of senior unsecured notes, predominantly from registered shelves in the U.S. and Europe. At September 30, 2016, the par value of our outstanding senior notes was $27.3 billion.

In the International Segment, particularly in Latin America, we issue other unsecured debt through commercial paper offerings and other non-bank funding sources. At September 30, 2016 we had $722 million of this type of unsecured debt outstanding. During 2015, we began accepting deposits from retail banking customers in Germany. At September 30, 2016, the outstanding balance of these deposits was $1.9 billion, of which 41% were overnight deposits.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Support Agreement In order to maintain our leverage ratio in line with the GM Support Agreement, we borrowed $415 million on the Junior Subordinated Revolving Credit Facility. We expect to repay this borrowing during the fourth quarter of 2016. At September 30, 2016, our earning assets leverage ratio was 9.3, and the applicable ratio was 9.5.

FORWARD-LOOKING STATEMENTS

This report contains several "forward-looking statements." Forward-looking statements are those that use words such as "believe," "expect," "intend," "plan," "may," "likely," "should," "estimate," "continue," "future" or "anticipate" and other comparable expressions. These words indicate future events and trends. Forward-looking statements are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated by us. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2015. It is advisable not to place undue reliance on our forward-looking statements. We undertake no obligation to, and do not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.

The following factors are among those that may cause actual results to differ materially from historical results or from the forward-looking statements:


•	changes in general economic and business conditions;


•	GM's ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly in the U.K. where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union;


•	interest rate and currency fluctuations;


•	our financial condition and liquidity, as well as future cash flows and earnings;


•	competition;


•	the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements;


•	the availability and cost of sources of financing;


•	the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate;


•	vehicle return rates and the residual value performance on vehicles we lease;


•	the viability of GM-franchised dealers that are commercial loan customers;


•	the prices at which used cars are sold in the wholesale auction markets; and


•	changes in business strategy, including expansion of product lines and credit risk appetite, and acquisitions.

If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in our exposure to interest rate risk since December 31, 2015. See Item 7A - "Quantitative and Qualitative Disclosures About Market Risk" in our 2015 Form 10-K.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and accumulated and communicated to our management, including our principal executive officer ("CEO") and principal financial officer ("CFO"), as appropriate to allow timely decisions regarding required disclosure.

Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Exchange Act) at September 30, 2016. Based on this evaluation, required by paragraph (b) of Rule 13a-15 and/or 15d-15, our CEO and CFO concluded that our disclosure controls and procedures were effective at September 30, 2016.

Changes in Internal Control Over Financial Reporting There were no changes made in our internal control over financial reporting during the three months ended September 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

PART II

Item 1. Legal Proceedings

See the discussion under Note 10 -"Commitments and Contingencies" to our condensed consolidated financial statements for information relating to certain legal proceedings.

Item 1A. Risk Factors

We face a number of significant risks and uncertainties in connection with our operations. Our business, results of operations and financial condition could be materially adversely affected by these risks factors. There have been no material changes to the risk factors disclosed in 2015 Form 10-K.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Item 6. Exhibits



31.1	Officers' Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002	Filed Herewith

32.1	Officers' Certifications of Periodic Report pursuant to Section 906 of Sarbanes-Oxley Act of 2002	Furnished with this Report

101.INS*	XBRL Instance Document	Filed Herewith

101.SCH*	XBRL Taxonomy Extension Schema Document	Filed Herewith

101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document	Filed Herewith

101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document	Filed Herewith

101.LAB*	XBRL Taxonomy Extension Label Linkbase Document	Filed Herewith

101.PRE*	XBRL Taxonomy Presentation Linkbase Document	Filed Herewith

__________


*	Submitted electronically with this Report in accordance with the provisions of Regulation S-T.

Instruments defining the rights of holders of certain issues of long-term debt of General Motors Financial Company, Inc. have not been filed as exhibits because the authorized principal amount of any one of such issues does not exceed 10% of the total assets of General Motors Financial Company, Inc. General Motors Financial Company, Inc. will furnish a copy of each such instrument to the SEC upon request.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



			General Motors Financial Company, Inc.
			(Registrant)

Date:	October 25, 2016	By:	/S/ CHRIS A. CHOATE
			(Signature)
			Chris A. Choate
			Executive Vice President and
			Chief Financial Officer

General Motors Financial Company, Inc. - FORM 10-Q - October 25, 2016

Attached files

General Motors Financial Company, Inc. Reports