Bolsa Mexicana de Valores SAB de CV Dirección - GM Financial

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Bolsa Mexicana de Valores S.A.B. de C.V. Dirección General de Vigilancia y Desarrollo de Mercado Paseo de la Reforma No. 225 Planta Baja Col. Cuauhté moc 06500 Ciudad de México, México

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Reporte Anual que se presenta conforme a las Disposiciones de Carácter General Aplicables a las Emisoras de Valores y Otros Participantes del Mercado de Valores, correspondientes al ejercicio fiscal terminado el 31 de diciembre de 2016 ______________________________________________________________________________________

Nombre del Emisor: GM Financial de México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada.

Domicilio: Ave. Eugenio Garza Lagüera N°933, Planta Baja, Colonia Valle Oriente, C.P. 66269, San Pedro Garza García, Nuevo León. Clave de Cotización: GMFIN GM Financial de México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regula da, mantiene un Progra ma de Certificados Bursátiles de Corto y Largo con Carácter Revolvente, autorizado por la Co misión Nacional Bancaria y de Valores mediante oficio 153/106060/2016 de fecha 27 de octubre de 2016, hasta por un monto de $7,000’000,000.00 (Siete mil millones de pesos 00/100 M.N.) o su equivalente en unidades de inversión, con inscripción en el Registro Nacional de Valores número 2680-4.19-2016-001. La inscripción en el Registro Nacional de Valores no implica certificación sobre la bondad de los valores, la solvencia del Emisor o sobre la exactitud o veracidad de la información contenida en este Reporte Anual, ni convalida los actos que, en su caso, hubieren sido realizados en contravención de las Leyes.

Información referente a los Certificados Bursátiles v igentes en circulación emitidos por GM Financial de México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada: Clave de Pizarra GMFIN 04416

GMFIN 04516 GMFIN 04616

Tipo de Valor Certificados Bursáti les de Corto Plazo Certificados Bursáti les de Corto Plazo Certificados Bursáti les de Corto Plazo

Monto Emitido (M.N.)

Número de Certificados Bursáti les

Fecha de Emisión

Fecha de Vencimiento

Plazo (días)

$500,000,000.00

5,000,000

24 de noviembre de 2016

12 de enero de 2017

49

$230,000,000.00

2,300,000

01 de diciembre de 2016

19 de enero de 2017

49

$450,000,000.00

4,500,000

08 de diciembre de 2016

26 de enero de 2017

49

Características comunes de las emisiones de Corto Plazo: FORMA DE CÁLCULO DE LOS INTERESES A partir de su Fecha de Emisión, y en tanto no sean amortizados, los Certificados Bursátiles devengarán un interés bruto anual fijo sobre su valor nominal, que el Rep rese ntante Común calculará 2 Días Hábiles previos al inicio del Período de Inte reses, para lo cual el Representante Común deberá considerar una tasa de interés bruto anual de [•] % (la “Tasa de Interés Bruto Anual”), la cual se mantendrá fija durante la vigencia de la Emisión. El interés que devengarán los Certificados Bursátiles se computará a partir de su Fecha de Emisión o al inicio de cada Período de Intereses, según sea el caso y los cálculos para determinar la tasa y el monto de los intereses a pagar deberán comprender los días naturales efectivamente transcurridos hasta la fecha de pago de intereses, o, en caso de que dicha fecha no sea un Día Hábil, el Día Hábil inmediato siguiente. Los cálculos se efectuarán cerrándose a centésimas. Para determinar el monto de intereses pagaderos de los Certificados Bursátiles, se utilizará la siguiente fórmula:

æ TB ö I = VN ç ´ NDE ÷ è 36, 000 ø En donde: I VN TB NDE

= = = =

Interés bruto de la Emisión. Valor no minal total de los Certificados Bursátiles en circulación. Tasa de Interés Bruto Anual. Número de días efectivamente transcurridos de la Emisión.

El Representante Común, dará a conocer por escrito a la CNBV y a Indeval (o a través de los medios que determinen) con por lo menos 2 Días Hábiles de anticipación a la Fecha de Vencimiento, el importe de los intereses a pagar y la Tasa de Interés Bruto Anual aplicable respecto de los Certificados Bursátiles. Asimismo, dará a conocer a la BMV a través del SEDI (o el medio que esta determine), el importe de intereses a pagar y la Tasa de Interés Bruto Anual aplicable respecto de los Certificados Bursátiles con por lo menos 2 Días Hábiles de anticipación a la fecha de pago.

Los Certificados Bursátiles dejarán de devengar intereses a partir de la fecha señalada para su pago, siempre que el Emisor hubiere constituido el depósito del importe de la amortización y, en su caso, de los intereses correspondientes, en las oficinas de Indeval, a más tardar a las 11:00 a.m. de ese día. En los términos del artículo 282 de la Ley del Mercado de Valores, el Emisor determina que el título no lleve cupones adheridos, haciendo las veces de éstos, para todos los efectos legales, las constancias que expida Indeval. PERIODICIDAD EN EL PAGO DE INTERESES Los intereses que devenguen los Certificados Bursátiles se liquidarán al vencimiento (el “Período de Intereses”), o, si fuera inhábil, el siguiente Día Hábil, durante la vigencia de la Emisión, contra la entrega de las constancias que Indeval haya expedido LUGAR Y FORMA DE PAGO DE INTERESES Y PRINCIPAL El principal y los intereses ordinarios devengados por los Certificados Bursátiles se pagarán mediante transferencia electrónica de fondos el día de su vencimiento y en cada una de las fechas de pago de interés, respectivamente, en las oficinas de Indeval, ubicadas en Avenida Paseo de la Reforma número 255, 3er piso, Col. Cuauhtémoc, C.P. 06500, México, contra la entrega de las constancias, o el presente título, según corresponda, y al efecto expedidas por dicha depositaria. Indeval distribuirá estos fondos, a través de transferencia electrónica, a los intermediarios correspondientes. AMORTIZACIÓN Los Certificados Bursátiles serán amortizados a su valor nominal mediante transferencia electrónica, en la Fecha de Vencimiento, o si fuere inhábil, el Día Hábil siguiente. AMORTIZACIÓN ANTICIPADA TOTAL El Emisor tendrá el derecho de pagar anticipadamente los Certificados Bursátiles en cualquier momento durante la emisión, en cuyo caso, pagará a los Tenedores una Prima sobre el valor no minal de los Certificados Bursátiles, la cual será equivalente a [ ] % (la “prima”). Para tales efectos, el Emisor publicará, con cuando menos 6 Días Hábiles de anticipación a la fecha en que pretenda amortizar anticipadamente los Certificados Bursátiles, el aviso respectivo en la sección “Empresas Emisoras” en el apartado “Eventos Relevantes” a través de EMISNET. Dicho aviso contendrá, como mínimo, la fecha en que se hará el pago anticipado y el importe de la prima a pagar. Adicionalmente, el Emisor entregará este aviso por escrito, con la misma anticipación, al Representante Común, a la CNBV, a Indeval y a la BMV, a través de los medios que esta última determine, incluido el EMISNET. GARANTÍAS La Garantía GMF Los Certificados Bursátiles cuentan con una garantía irrevocable e incondicional otorgada por General Motors Financial Company, Inc. (el “Garante GMF”), la cual estará a disposición de los Tenedores (la “Garantía GMF”) a través del Representante Común. La Garantía GMF se ha otorgado mediante un documento lla mado guarantee, el cual está regido por la ley del Estado de Nueva York, E.U.A., sin tomar en cuenta los principios de conflicto de

leyes de dicho estado. Las Cortes del Estado de Nueva York y la Corte de Distrito ubicada en el Municipio de Manhattan, en la Ciudad de Nueva York tendrán jurisdicción para resolver cualquier acción o procedimiento legal que surja en relación con la Garantía GMF y de conformidad con lo anterior, cualquier procedimiento debe presentarse únicamente ante dichas cortes. Ante el incumplimiento en el pago de principal o intereses al amparo de los Certificados Bursátiles por parte del Emisor, el procedimiento para la ejecución de la Garantía GMF en contra del Garante GMF deberá realizarse en la vía judicial, mediante la presentación por parte del Representante Común de una demanda ante un tribunal co mpetente, el cual puede ser cualquier tribunal local o federal ubicado en el distrito de Manhattan en la Ciudad de Nueva York, Estados Unidos de América. En caso de que no haya ocurrido el “Termination Date” conforme a la garantía irrevocable otorgada por AmeriCredit Financial Services, Inc. La Garantía AmeriCredit Antes de que ocurra la “Fecha de Terminación” ("Termination Date") (según dicho término se define en la Garantía AmeriCredit y se describe en el suplemento) los Certificados Bursátiles cuentan con una garantía otorgada por AmeriCredit Financial Services, Inc. (“AmeriCredit”), a la que nos referimos en este título como la “Garantía AmeriCredit”, misma que estará a disposición de los Tenedores a través del Representante Común. La Garantía AmeriCredit se encuentra sujeta a las disposiciones de terminación automática descritas en la Garantía AmeriCredit. AmeriCredit ha otorgado la Garantía AmeriCredit mediante un documento llamado guarantee, el cual estará regido por la ley del Estado de Nueva York, E.U.A., sin tomar en cuenta los principios de conflicto de leyes de dicho estado. Las Cortes del Estado de Nueva York y la Corte de Distrito ubicada en el Municipio de Manhattan, en la Ciudad de Nueva York tendrán jurisdicción para resolver cualquier acción o procedimiento legal que surja en relación con la Garantía AmeriCredit y de conformidad con lo anterior, cualquier procedimiento debe presentarse únicamente ante dichas cortes. Ante el incumplimiento en el pago de principal o intereses al amparo de los Certificados Bursátiles por parte del Emisor, cualquier procedimiento para la ejecución de la Garantía AmeriCredit en contra de AmeriCredit deberá realizarse en la vía judicial, mediante la presentación por parte del Representante Común de una demanda ante un tribunal competente, el cual puede ser cualquier tribunal local o federal ubicado en el distrito de Manhattan en la Ciudad de Nueva York , Estados Unidos de América. La Garantía AmeriCredit se dará por terminada de forma automática e incondicional de conformidad con las disposiciones contenidas en la sección “TERMINATION” de la misma, las cuales disponen los supuestos en que AmeriCredit quedará liberada de forma permanente de todas sus obligaciones bajo la Garantía AmeriCredit en relación con los Certificados Bursátiles. Dicha sección “TERMINATION” dispone, entre otros, que las obligaciones del Garante AmeriCredit se darán por terminadas automáticamente, y dicho Garante AmeriCredit quedará liberado de forma permanente de todas sus obligaciones bajo dicha Garantía AmeriCredit en relación con los Certificados Bursátiles amparados por este título, a partir de la fecha en que ocurra cualquiera de los siguientes eventos, los cuales podrán ocurrir antes de la Fec ha de Vencimiento que se establece en el presente título: (a)

un Evento de Terminación de Garantía (Guarantee Termination Event, según se define en la Garantía AmeriCredit); o

(b)

una venta u otra enajenación de todos o sustancialmente todos los activos del Garante (Guarantor, según se define en la Garantía AmeriCredit), mediante fusión, consolidación o por algún otro medio, o una venta u otra enajenación de todo el capital social del Garante (Guarantor, según se define en la Garantía AmeriCredit), en cada caso, que resulte en que Garante (Guarantor, según se define en la Garantía AmeriCredit) deje de ser una Subsidiaria Restringida

(Restricted Subsidiary, según se define en la Garantía AmeriCredit) del Garante GMF. CALIFICACIONES Calificación Otorgada por Fitch México S.A. de C.V. Calificación en escala nacional de corto plazo en F1+ (mex). Indica las más sólida capacidad de cumplimiento oportuno de los compro misos financieros respecto de otras empresas domésticas. Bajo la escala de calificaciones domésticas de Fitch México, esta categoría se asigna a aquellas empresas con la mejor calidad crediticia respecto de otras en el país. Cuando las características de la empresa son particularmente sólidas, se agrega un signo “+” a la categoría. Calificación Otorgada por Standard & Poor’s S.A. de C.V. Calificación en escala nacional –CaVal- de corto plazo en mxA-1+. La categoría más alta en la escala nacional de Standard & Poor’s para México. La capacidad del emisor para cumplir sus compromisos sobre la obligación, es fuerte en comparación con otros emisores en el mercado nacional. Dentro de esta categoría, agregaremos un signo de (+) a la calificación de algunas obligaciones para indicar la capacidad del e misor para cumplir sus compro misos financieros sobre dichas obligaciones es extremadame nte fuerte, en comparación con otros emisores en el mercado nacional. REPRESENTANTE COMÚN Monex Casa de Bolsa S.A. de C.V., Monex Grupo Financiero. DEPOSITARIO S.D. INDEVAL Institución para el Depósito de Valores S.A. de C.V. RÉGIMEN FISCAL La tasa de retención aplicable a los intereses pagados se encuentra sujeta a: (i) para las personas físicas y personas morales residentes en México a lo previsto en los artículos 8, 54, 133 y 135 de la Ley del Impuesto Sobre la Renta (“LISR”) vigente y el artículo 21 de la Ley de Ingresos de la Federación para el ejercicio fiscal de 2016, así como la Resolución Miscelánea Fiscal vigente; y (ii) para personas físicas y morales residentes en el extranjero, a lo previsto en los artículos 153, 166 y demás aplicables de la LISR vigente. Para efectos del impuesto al valor agregado, el régimen fiscal está contenido en los artículos 1, 14, 15, fracción X, inciso i), 16, primer párrafo, 24, fracción V y 25, fracción III de la Ley del Impuesto al Valor Agregado. El régimen fiscal vigente podrá modificarse a lo largo de la vigencia del Programa, particularmente lo dispuesto por el artículo 21 de la Ley de Ingresos de la Federación para el ejercicio fiscal de 2016 y la Resolución Miscelánea Fiscal, los cuales tienen una vigencia temporal. Por el hecho de adquirir Certificados Bursátiles emitidos al amparo del Programa, el Tenedor declara y garantiza que no es una “Persona de los Estados Unidos de América” (diferente al sujeto exento descrito en la sección 6049 (b)(4) del “Internal Revenue Code” y sus regulaciones) y que no está actuando para o a beneficio de una “Persona de los Estados Unidos de América” (diferente al sujeto exento descrito en la sección 6049 (b)(4) del “Internal Revenue Code” y sus regulaciones).

CONTENIDO I.

INFORMACIÓN GENERAL 1) Glosario de términos y definiciones 2) Resumen Ejecutivo 2.1. Nuestro Negocio 3) Factores de Riesgo 3.1. Relacionados con nuestra empresa y sus actividades 3.2. Relacionados con los Certificados Bursátiles 3.3. Relacionados con México 3.4. Relacionados con los Garantes 3.5. Relacionados con las declaraciones respecto al futuro 4) Otros Valores 5) Cambios significativos a los derechos de los Valores inscritos en el Registro Nacional de Valores 6) Destino de los fondos 7) Documentos de Carácter Público

II. EL EMISOR 1) Historia y Desarrollo de la Compañía 1.1. Datos Generales 1.2. Evolución de la Compañía 2) Descripción del negocio 2.1. Actividad Principal 2.2. Canales de Distribución 2.3. Patentes, Licencias, Marcas y otros Contratos 2.4. Principales Clientes 2.5. Legislación Aplicable y Situación Tributaria 2.6. Recursos Humanos 2.7. Desempeño Ambiental 2.8. Información del Mercado 2.9. Estructura Corporativa 2.10. Descripción de los Principales Activos 2.11. Procesos Judiciales, Administrativos o Arbitrales 2.12. Acciones representativas del capital 2.13. Dividendos III. INFORMACIÓN FINANCIERA 1) 2) 3) 4)

Información Financiera Seleccionada Información Financiera por Línea de Negocio y Zona Geográfica Informe de Créditos Relevantes Comentarios y Análisis de la Administración Sobre los Resultados de Operación y Situación Financiera del Emisor 4.1. Resultados de Operación 4.2. Situación Financiera, Liquidez y Recursos de Capital 4.3. Control Interno 5) Estimaciones, Provisiones o Reservas Contables Críticas

IV. ADMINISTRACIÓN 1) Auditores Externos 2) Operaciones con personas relacionadas y conflictos de interés 3) Administradores y accionistas 3.1. Consejo de Administración 3.2. Directivos y Funcionarios Relevantes 3.3. Principales Accionistas 4) Estatutos sociales y otros convenios

V. PERSONAS RESPONSABLES

VI. ANEXOS ·

Carta de Independencia y Carta Consentimiento de Auditores Externos México

·

Carta de Independencia y Carta Consentimiento de Auditores Externos E.U.A.

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Estados Financieros auditados del Emisor para los años concluidos el 31 de diciembre de 2016, 2015 y 2014

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Informe del Comisario

·

Estados Financieros auditados consolidados del Garante para los años concluidos el 31 de diciembre de 2016, 2015 y 2014. (En caso de que surjan discrepancias entre las versiones en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento y sus traducciones al español, las versiones originales en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento deberán prevalecer)

·

·

Diferencias entre los principios de contabilidad generalmente aceptados en Estados Unidos (US GAAP) y los criterios contables utilizados por la CNBV Formulario 8-K Fecha del Reporte 5 de Marzo de 2017 (En caso de que surjan discrepancias entre las versiones en inglés

del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento y sus traducciones al español, las versiones originales en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento deberán prevalecer)

I. INFORMACIÓN GENERAL 1.

Glosario de Términos y Definiciones

Los términos que se utilizan en este reporte anual con mayúscula inicial y que se relacionan a continuación, tendrán los significados siguientes, que serán igualmente aplicables a las formas singular o plural de dichos términos: “AMDA” significa, la Asociación Mexicana de Distribuidores de Automotores. “AmeriCredit” o “AFSI” significa, AmeriCredit Financial Services, Inc. “AMIA” significa, la Asociación Mexicana de la Industria Automotriz A.C. “Auditores Externos” significa, de forma conjunta Galaz, Yamazaki, Ruiz y Urquiza, S.C., miembro de Deloitte Touche Tohmatsu Limited, respecto del Emisor, y Deloitte & Touche LLP respecto del Garante GMF. “Aviso” significa, el aviso de colocación, el aviso de oferta pública o el aviso de convocatoria pública a subasta, según resulte aplicable para cada caso, el cual será publicado la página de Internet de la BMV (EMISNET), en los cuales se detallarán los resultados y/o principales características de cada emisión de Certificados Bursátiles realizada al amparo del Programa. “BMV” significa, la Bolsa Mexicana de Valores, S.A.B. de C.V. “Certificados Bursátiles” significa, los títulos de crédito denominados certificados bursátiles, de corto o largo plazo, que pueden ser emitidos por el Emisor al amparo del Progra ma. “Certificados Bursátiles de Corto Plazo” significa, los Certificados Bursátiles que se emitan con un pla zo mínimo de 1 día y un pla zo máximo de 365 días. “Certificados Bursátiles de Largo Plazo” significa, los Certificados Bursátiles que se emitan con un pla zo mínimo de 1 año y un plazo máximo de 30 años. “Cetes” significa, los Certificados de la Tesorería de la Federación. “CNBV” significa, la Comisión Nacional Bancaria y de Valores. “Compradores” significa, las personas físicas y morales que adquieren vehículos automotores de la marca General Motors, y de otras marcas, a través de los Distribuidores. “Código” significa, el Código de Ingresos Internos de Estados Unidos de 1986 (U.S. Internal Renevue Code of 1986). “Convocatoria” significa, el aviso publicado en la página de internet de la BMV (EMISNET), conforme al cual se invita a inversionistas potenciales a participar en el proceso de subasta de Certificados Bursátiles y en el que se detallan las principales características de dichos Certificados Bursátiles. “Día Hábil” significa cualquier día, que no sea sábado, domingo o día feriado por ley, en el que las instituciones de banca múltiple deban ma ntener sus oficinas abiertas para celebrar operaciones con el público, conforme al calendario que publique periódicamente la CNBV. “Distribuidor” significa cualquier sociedad, entidad u otra persona residente en México que se dedique, de forma habitual y profesional, al negocio de compra y venta de vehículos de cualquier

fabricante, ensamblador o distribuidor en el curso ordinario de su negocio, incluyendo a fabricantes, ensambladores, distribuidores y clientes finales, y que tengan una relación comercial con GMF México. “Emisión de Corto Plazo” significa, cualquier emisión al amparo del Programa con un pla zo mínimo de 1 día y un plazo máximo de 365 días. “Emisión de Largo Plazo” significa, cualquier emisión al amparo del Programa con un pla zo mínimo de 1 año y un plazo máximo de 30 años. “Emisor”, la “Compañía”, o “GMF México” significa, GM Financial de México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada. “Estados Unidos” o “E.U.A.” significa, los Estados Unidos de América. “Garante GMF” significa, General Motors Financial Company, Inc., una sociedad constituida conforme a las leyes del Estado de Texas, Estados Unidos. “Garante Subsidiario” significa, en su caso, la sociedad que otorgue una Garantía Subsidiaria. “Garantes” significa, el Garante GMF, AmeriCredit y, en su caso, cualesquier Garantes Subsidiarios. “Garantía AmeriCredit” o “Garantía AFSI” significa, la garantía otorgada por AmeriCredit respecto de los Certificados Bursátiles, según la misma sea modificada o adicionada de tiempo en tiempo. “Garantía GMF” significa, la garantía irrevocable e incondicional otorgada por el Garante GMF. “Garantía Subsidiaria” significa, en su caso, la garantía otorgada por un Garante Subsidiario. “Garantías” significa, la Garantía GMF, la Garantía AmeriCredit, y cualquier Garantía Subsidiaria. “General Motors” o “GM” significa, General Motors Company. “Grupo” s ignifica, el Garante GMF junto con sus subsidiarias. “Indeval” significa, la S.D. Indeval, Institución para el Depósito de Valores, S.A. de C.V. “INPC” significa, el Índice Nacional de Precios al Consumidor que publique periódicamente el Instituto Nacional de Estadística y Geografía en el Diario Oficial de la Federación o cualquier índice que lo suceda. “Intermediarios Colocadores” significa, conjunta mente, Scotia Inverlat Casa de Bolsa, S.A. de C.V., Grupo Financiero Scotiabank Inverlat y Acciones y Valores Banamex, S.A. de C.V., Casa de Bolsa, Integrante del Grupo Financiero Banamex. “Jato Dynamics” significa, el proveedor global de inteligencia de negocios del sector automotriz, cuya información puede consultarse en la siguiente dirección de internet: www.jato.com. “LGOAAC” significa, la Ley General de Organizaciones y Actividades Auxiliares del Crédito. “LGTOC” significa, la Ley General de Títulos y Operaciones de Crédito. “México” significa, los Estados Unidos Mexicanos.

“Monto Total Autorizado del Programa” significa, $7,000,000,000.00 M.N. pesos o su equivalente en UDIs, el cual tiene carácter de revolvente. “NIF” significa, las Normas de Información Financiera Mexicanas que reconozca y sean emitidas por el Consejo Mexicano de Normas de Información Financiera, A.C. “Oficial de Cumplimiento”, es el funcionario designado por el Consejo de Administración de GM Financial, responsable de vigilar la adecuada implementación y funcionamiento del Sistema de Prevención de Operaciones con Recursos de Procedencia Ilícita y Financiamiento del Terrorismo al interior de GM Financial. “PIB” significa, Producto Interno Bruto de México. “Plan Piso” significa el programa de financiamiento mediante el cual el Emisor otorga financiamientos al mayoreo a los Distribuidores para que dichos Distribuidores adquieran vehículos nuevos y usados de cualquier marca, incluyendo la marca General Motors, así como para capital de trabajo. “Programa” o “Programa Revolvente” significa, el Programa Revolvente de Certificados Bursátiles, al amparo del cual el Emisor podrá emitir Certificados Bursátiles de Corto Plazo y/o Certificados Bursátiles de Largo Plazo, autorizado por la CNBV mediante oficio No. 153/106060/2016, de fecha 27 de octubre de 2016. “Representante Común” significa, Monex Casa de Bolsa S.A. de C.V., Monex Grupo Financiero, o cualquier otra entidad que sea designada como tal para cualquier emisión y que se señale en el Aviso o en el Suplemento correspondiente, según sea el caso. “Reporte Anual” significa el presente Reporte Anual del Programa de Certificados Bursátiles de Corto y Largo Plazo con Carácter Revolvente, por el periodo terminado al 31 de diciembre de 2016 del Emisor, preparado de conformidad con las Disposiciones de Carácter General Aplicables a las Emisoras de Valores y Otros Participantes del Mercado de Valores de la CNBV. “RNV” significa, el Registro Nacional de Valores. "Regulation S del Securities Act of 1993" significa, la Regulation S del Securities Act. “SEC” significa, la Securities and Exchange Commission, de los Estados Unidos de América. "Securities Act of 1933" significa, la ley que regula la oferta inicial de valores en los mercados en los Estados Unidos de América, que en conjunto con la Securities and Exchange Act of 1934, que regula el mercado secundario de valores, y la Investment Company Act of 1940, que regula las sociedades de inversión, son el equivalente a la Ley del Mercado de Valores de México. “SHCP” significa, la Secretaría de Hacienda y Crédito Público. “Sofom” o “Sofomes” significan, sociedades financieras de objeto múltiple. “Sofom ER” significa, una sociedad financiera de objeto múltiple, entidad regulada. “Suplemento” significa, cualquier suple mento al Programa que se prepare con relación a, y que contenga las características correspondientes a, una Emisión de Largo Plazo al amparo del Programa. “Tenedores” significan, los tenedores de los Certificados Bursátiles.

“TIIE” significa, la Tasa de Interés Interbancaria de Equilibrio que publique periódicamente el Banco de México en el Diario Oficial de la Federación o cualquier tasa que la suceda o sustituya. “UDIs” significa, las Unidades de Inversión cuyo valor en pesos se publica por el Banco de México en el Diario Oficial de la Federación.

2.

Resumen Ejecutivo

A continuación se incluye un resumen de la información general contenida en el presente reporte anual respecto a GMF México. Este resumen presenta una perspectiva general acerca del mismo, sin embargo dicho resumen no incluye toda la información relevante que debe tomarse en cuenta para que los inversionistas interesados puedan tomar una decisión de inversión con respecto a los Certificados Bursátiles. Se le recomienda al público inversionista leer cuidadosamente y en todo su contenido este Reporte Anual y, en particular, la información presentada en la sección "3. Factores de Riesgo", la que deberá ser leída de manera minuciosa por los potenciales inversionistas con el fin de tomar conciencia de los posibles eventos que pudieran afectar al Emisor y a los Certificados Bursátiles, así como a los demás riesgos de la emisión. 2.1.

Nuestro Negocio

Somos una sociedad anónima de capital variable, sociedad financiera de objeto múltiple, entidad regulada, cuya actividad primordial consiste en otorgar financiamiento para la adquisición de autos nuevos y usados de la marca General Motors, tanto a Distribuidores como al público en general. Somos una subsidiaria indirecta de General Motors, una de las empresas automotrices con mayor número de ventas de vehículos a nivel mundial. General Motors, sus subsidiarias y socios producen y comercializan una amplia gama de vehículos en más de 120 países. El 1 de octubre de 2010, General Motors Holdings LLC, una sociedad de responsabilidad limitada constituida en el estado de Delaware y subsidiaria, en su totalidad, de Ge neral Motors, completó la adquisición de AmeriCredit Corp., por USD$3,500 millones de dólares. Después de dicha adquisición, el nombre de AmeriCredit Corp., fue cambiado a General Motors Financial Company, Inc. Al 31 de diciembre de 2016, presentamos un crecimiento de aproximadamente 50.2% en nuestra cartera total de crédito comparado con el año anterior al 31 de diciembre de 2015. El índice de morosidad para el mismo periodo comparable paso de aproximadamente 0.88% al 31 de diciembre de 2015 a 1.00% al 31 de diciembre de 2016. En 2014 y 2015, tuvimos una utilidad neta equivalente a aproximadamente $729 millones de pesos y $753 millones de pesos respectivamente, mientras que durante el 2016, presentamos una utilidad neta de aproximadamente $1,063 millones de pesos. Al 31 de diciembre de 2016, nuestros activos totales ascendieron a aproximadamente $61,017 millones de pesos, mientras que nuestros pasivos totales representaban aproximada mente $53,035 millones de pesos, con un capital contable igual a aproximadamente $7,982 millones de pesos. Nuestra cartera de crédito vencida se integra de créditos de consumo y comerciales en moneda nacional con pagos periódicos parciales de principal e intereses que presentan 90 o más días vencidos. Al 31 de diciembre de 2016, la cartera vencida representaba aproximadamente el 1.00% de la cartera total, dividida con una cartera de consumo y cartera comercial por aproximadamente $472.5 millones de pesos y aproximadamente $64.5 millones de pesos respectivamente.

El objetivo general del Garante GMF es proporcionar apoyo para la venta de vehículos de la marca GM mientras logra retornos apropiados y ajustados al riesgo. Nuestra estrategia está basada en el objetivo general del Garante GMF. Nuestras operaciones se concentran principalmente en los siguientes segmentos: I. Crédito de Consumo. Otorgamos financiamiento a personas morales y físicas que quieran adquirir unidades nuevas o usadas de la marca General Motors o de otras marcas, mediante un esquema variado de alternativas de financiamiento que buscan cubrir todos los segmentos de mercado. II. Crédito Comercial. En esta área de negocio se encuentran todos los financiamientos que otorgamos a través del Plan Piso y de préstamos de capital de trabajo a los Distribuidores. Con el financiamiento de Plan Piso, brindamos la oportunidad a los Distribuidores de adquirir unidades nuevas de las plantas armadoras y unidades usadas de terceros con el objeto de poder llevar a cabo su posterior comercialización, promoción y distribución. 3.

Factores de Riesgo

Al considerar la adquisición de los Certificados Bursátiles, los potenciales inversionistas deben tomar en consideración, examinar y evaluar cuidadosamente toda la información contenida en este Reporte Anua l y, en especial, los factores de riesgo que se mencionan a continuación. De materializarse los riesgos descritos a continuación, nuestros negocios, resultados operativos, situación financiera y perspectivas de negocio podrían verse afectadas, así como nuestra capacidad para pagar los Certificados Bursátiles y reducir el precio o la liquide z de los mismos. Además, cabe la posibilidad que nuestros negocios, resultados operativos, situación financiera y perspectivas de negocio se vean afectadas por otros riesgos que al momento desconocemos o que actualmente no consideramos significativos. Cualesquier riesgos adicionales a los que los Certificados Bursátiles de Largo Plazo, en su caso, estén expuestos, serán descritos en el Suplemento correspondiente. Los riesgos descritos a continuación pretenden destacar aquellos que son específicos de nuestra empresa, pero que de ninguna manera deben considerarse como los únicos riesgos que el público inversionista pudiera llegar a enfrentar. Estos riesgos e incertidumbres, incluyendo aquellos que en lo general afecten a la industria en la que operamos, o aquellos riesgos que consideramos, al momento, no son importantes, también pueden llegar a afectar nuestros negocios, resultados operativos, situación financiera y perspectivas de negocio. 3.1. Relacionados con nuestra empresa y sus actividades Nuestros ingresos dependen de la venta de vehículos automotores por parte de General Motors en México El monto promedio financiado en cada crédito otorgado por nuestra empresa a los consumidores finales, para la adquisición de vehículos automotores, al 31 de diciembre de 2016, es de aproximadamente $188,000.00. Al cierre de 2016, la participación del financiamiento del Emisor representaba aproximada mente el 56.3% de las ventas de General Motors en México. La participación acumulada de General Motors en el mercado automotriz mexicano fue de aproximadamente 18.8% al 31 de diciembre de 2016 (308,624 vehículos automotores vendidos) en comparación con 18.5% al 31 de diciembre de 2015, (256,150 vehículos automotores vendidos). Cualquier disminución significativa en las ventas de General Motors en México podría tener un efecto materialmente adverso en nuestro crecimiento, posición financiera, liquidez o en nuestros resultados operativos.

No podemos asegurar que el mercado automotriz global o la porción de GM de dicho mercado no sufrirá desaceleraciones en el futuro y cualquier impacto negativo podría, a su vez, tener un efecto material adverso en nuestra posición financiera, liquidez o en nuestros resultados operativos. Dependemos de la situación financiera de los Distribuidores de GM. La rentabilidad del Grupo depende de la situación financiera de los Distribuidores de la marca GM y de su cartera de préstamos comerciales, incluyendo los niveles de inventario que tienen los Distribuidores en respuesta a la demanda de financiamiento de nuevos vehículos de GM y vehículos usados, y el nivel de endeudamiento al mayoreo requerido por los Distribuidores para las adquisiciones de inventarios, proyectos de construcción a las instalaciones de los Distribuidores y capital de trabajo. Nuestro negocio podría verse afectado negativamente si, durante los períodos de desaceleración económica o recesión, los Distribuidores reducen los préstamos para la compra de inventario o para otros fines, o no pueden vender o liquidar los inventarios de vehículos y pagar sus préstamos al mayoreo, de bienes raíces u otros préstamos al Grupo. La disminución en la dema nda de créditos al consumo para vehículos de GM también puede afectar negativamente a la situación financiera global de los Distribuidores de la marca GM, posiblemente aumentando la morosidad y las tasas de pérdida neta de nuestra cartera de préstamos comerciales e impactando negativamente a nuestra capacidad de crecer y, en última instancia, nuestra situación financiera, liquidez y resultados de las operaciones. Los niveles de nuestros pasivos y el incumplimiento con los mismos podrían afectar nuestras operaciones y resultados Al 31 de diciembre de 2016, contábamos con pasivos derivados de líneas de crédito revolvente, certificados bursátiles de corto plazo, certificados bursátiles estructurados y monetización de cartera de créditos por un mo nto total de $39,929 millones de pesos, de los cuales están distribuidos el 48% en deuda sin garantías y el 52% en deuda garantizada. Al 31 de diciembre de 2016, nuestros pasivos derivados de líneas de crédito revolvente representaban aproximadamente 5.0 veces nuestro capital contable. De darse circunstancias económicas desfavorables que afectaren nuestro negocio, podríamos no tener la capacidad de pagar dichos pasivos al vencimiento. Aun cuando, conforme a nuestras políticas internas, mantenemos dicha situación de correspondencia entre pasivos y activos, el prepago de ciertos activos, o el caso en el que la tasa de financiamiento de nuestros pasivos fuese superior a la tasa de rendimiento de nuestros activos, podría resultar en un impacto negativo en nuestros ingresos por financiamiento, y en consecuencia tener un efecto material adverso en nuestra posición financiera, liquidez o el resultado operativo. Si el pla zo de nuestros activos fuere superior al de los pasivos correspondientes, y dicho pasivo no pudiere ser refinanciado o no pudiere refinanciarse a tasas convenientes, lo anterior podría provocar un efecto material adverso en la liquidez de la empresa, su condición financiera o nuestros resultados operativos. Los niveles de apalancamiento de la Compañía y la naturaleza de sus pasivos podrían resultar en una afectación a su situación financiera y su capacidad de pagar los Certificados Bursátiles. Dependencia de personal clave y fuerza laboral La ejecución de nuestras estrategias y la capacidad para lograr nuestras metas de crecimiento dependen, en gran me dida, de nuestra capacidad de reclutar, seleccionar, capacitar y mantener ciertos funcionarios clave así como su fuerza laboral. No podemos garantizar la permanencia de dichos funcionarios en nuestra empresa, ni que los mismos serán remplazados por funcionarios con las mismas características, sin embargo nuestras operaciones aún podrían verse adversamente afectadas.

Contamos con diversas medidas de administración, entre las cuales, se encuentra la asignación de recursos humanos a partir de la estrategia de crecimiento de nuestra empresa, identificación de talento directivo y técnico, estructura de sucesión, la aplicación del mapeo de procesos y la redacción de manuales detallados para la transmisión del conocimiento, ejecución del sistema de evaluación de desempeño, tutorías y seguimiento, evaluación y gestión del clima organizacional, así como el diseño y desarrollo de un plan de formación para los empleados de la empresa. Nuestra situación financiera podría variar de forma drástica teniendo como resultado un posible concurso mercantil La información financiera que se adjunta al presente Reporte Anual demuestra que nuestra situación financiera es positiva, y no consideramos que puedan actualizarse los supuestos señalados en la Ley de Concursos Mercantiles. No obstante lo anterior, en caso de presentarse una modificación drástica en las condiciones económicas de los mercados financieros y de capitales mundiales y en relación con los factores de riesgo establecidos en la presente sección, como cualquier otra persona moral en México, podríamos encontrarnos en alguno de los supuestos establecidos en los artículos 9 y 10 de la Ley de Concursos Mercantiles y/o ser declarados en concurso mercantil por alguna autoridad judicial en México. Cambios en la legislación y regulación aplicable podrían afectar nuestras operaciones y resultados Somos sujetos a ciertas leyes y regulaciones aplicables a nuestro negocio, las cuales podrían ser, modificadas o derogadas en cualquier momento y las autoridades gubernamentales que aplican dichas leyes y regulaciones podrían interpretarlas de forma particular o tomar medidas regulatorias que pudieran dañar nuestro negocio, incrementar la competencia, incrementar nuestros costos de operación, disminuir nuestros ingresos, limitar nuestra capacidad para aumentar operaciones, o de cualquier otra manera afectar de manera adversa nuestro negocio. Las medidas que, en caso de ser necesario, implementemos para la recuperación de créditos podrían resultar insuficientes o ineficientes y afectar nuestras operaciones y resultados Experime ntamos niveles de cartera vencida al 31 de diciembre de 2016 equivalentes a: $537.0 millones de pesos que se comparan con los $315.9 millones de pesos al 31 de diciembre de 2015. La diferencia obedece principalmente a un aumento en el volumen de contratos generados, cuyo nivel de morosidad estable se ha mantenido estable. De conformidad con las disposiciones legales aplicables, clasificamos una cuenta como vencida si no se recibe pago alguno en relación con dicha cuenta dentro de los 90 días posteriores a la fecha de pago. No obstante la cartera vencida medida como porcentaje de la cartera total se ha incrementado ligerame nte al cierre del 2016 comparado con la misma fecha del ejercicio de 2015 (1.00% contra 0.88%, respectivamente), no pode mos asegurar que las medidas implementadas para la recuperación de créditos vencidos o que se implementen en un futuro sean eficientes o suficientes y resulten en una disminución permanente o continua en los niveles de la cartera vencida. Estamos sujetos a cambios en las condiciones económicas generales que están más allá de nuestro control. Durante los periodos de recesión o desaceleración económica, los incumplimientos, recuperaciones y pérdidas, generalmente se incrementan. Estos periodos también pueden verse acompañados por altas tasas de desempleo, ba ja demanda de automóviles y declive en el valor de los mismos, que al servir como garantía de créditos pendientes de pago, debilitan la cobertura de las garantías e incrementan la cantidad de las pérdidas en caso de que ocurra algún incumplimiento. Adicionalmente, los precios más altos de la gasolina, el declive en los precios de los valores que cotizan en bolsa, precios inestables de inmuebles, el crecimiento de las tasas de desempleo, la disponibilidad del crédito al consumo o cualesquier otros factores que impacten la confianza del consumidor o el ingreso disponible podrían incrementar la frecuencia de pérdidas y disminuir la de manda de los consumidores de

automóviles, así como debilitar los valores de garantía de ciertos tipos de automóviles. Cualquier periodo sostenido de aume nto en incumplimientos, reposesiones o pérdidas o incrementos en los costos de servicio podría afectar de manera adversa nuestra posición financiera, liquidez, resultados operativos y nuestra capacidad de participar en bursatilizaciones y líneas de crédito en el futuro. La totalidad de nuestros ingresos y actividades provienen del sector automotriz, una disminución generalizada de ventas en dicho sector podría afectar nuestras operaciones y resultados A pesar de la recuperación y crecimiento del sector automotriz en años recientes, históricamente el mercado automotriz ha sido uno de los sectores mayormente afectados por las crisis económicas, tanto a nivel nacional, como internacional. En caso de presentarse una recesión, u otra perturbación económica, una baja en el índice de confianza por parte del consumidor de bienes de consumo duradero o la saturación de la capacidad de endeudamiento, se podría observar una caída en el volumen de ventas, misma que podría reducir el número de financiamientos. Tomando en c onsideración que nuestros activos consisten primordialmente en el otorgamiento de créditos para la adquisición de vehículos automotores, la disminución en las ventas del sector automotriz podría afectar nuestro crecimiento, posición financiera, liquidez o nuestros resultados operativos. Para más detalles al respecto ver la sección “IV. Información Financiera” del presente Reporte Anual. Un aumento en la competencia en el sector podría afectar nuestras operaciones y resultados La mayoría de las ventas de vehículos automotores al menudeo en México se llevan a cabo a través de uno de los siguientes tres medios: (i) al contado, (ii) a través de financiamiento, o (iii) a través de sistemas de autofinanciamiento. En el área de financiamiento de ventas al menudeo participan tanto empresas afiliadas a las armadoras de vehículos automotores, tales como NR Finance México, S.A. de C.V., SOFOM, E.R., Daimler Financial Services México, S. de R.L. de C.V., Volkswagen Leasing, S.A. de C.V., entre otras, así como instituciones de banca múltiple, tales como Banco Nacional de México, S.A. Institución de Banca Múltiple, Grupo Financiero Banamex, BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, Scotiabank Inverlat, S.A., Institución de Banca Múltiple, Grupo Financiero Scotiabank Inverlat y HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, entre otros. De conformidad con lo establecido por la AMIA y la AMDA, El financiamiento bancario de vehículos ha decrecido en el último año. En total, Al 31 de diciembre de 2016, GM Financial de México ha colocado 177,427 financiamientos para adquisición de vehículos nuevos, lo cual representó aproximadamente el 17.0% de las ventas financiadas. El aumento en la participación de los bancos comerciales o de las empresas de autofinanciamiento resulta en mayor competencia para nuestra empresa y la condición financiera, la liquidez y los resultados operativos de la misma puede verse afectada material y adversamente. Los recursos para financiar nuestra cartera de créditos podrían no resultar suficientes Obtenemos recursos para financiar nuestra cartera de créditos a través de créditos bancarios, emisiones bursátiles a corto plazo con carácter revolvente, y a través de la bursatilización de activos. Las condiciones de mercado han causado que muchos bancos e inversionistas institucionales disminuyan, y en algunos casos, dejen de prestar dinero incluso a instituciones

financieras. La situación económica actual ha afectado y pudiera continuar afectando nuestras opciones para continuar financiando y financiarnos en términos favorables, o para financiarnos por completo. Si las condiciones actuales de los mercados y la volatilidad continúan o empeoran, nos veremos en la necesidad de buscar liquidez a través de líneas de crédito adicionales. Sin embargo, bajo las condiciones extremas de los mercados, no se puede asegurar que el fondeo adicional se obtenga bajo los términos acordados para el actual o que el fondeo disponible sea suficiente para cubrir nuestras necesidades de operación. En virtud de lo anterior, los servicios financieros que prestamos podrían verse afectados negativamente por la dificultad de adquirir financiamiento adicional en los mercados de capitales a largo y mediano pla zo. Estas consecuencias negativas podrían resultar en un efecto material adverso en las operaciones de nuestro negocio y en los resultados de la operación del mismo, incluyendo más elevados costos de capital, la disminución de financiamiento a través de sus servicios financieros y la imposibilidad de seguir financiando la adquisición de vehículos a los consumidores. Para más detalles ver la sección “I. Información General – 2. Resumen Ejecutivo – 2.2. Información Financiera Seleccionada” del presente Reporte Anual. El cambio climático y la disminución de demanda asociada a productos que con emisiones significativas de gases de efecto invernadero, así como el incremento en la demanda de otros productos con menor cantidad de emisiones podría afectar a nuestro negocio No podemos asegurar que el mercado automotriz global o la porción de GM en México, no sufrirá desaceleraciones en el futuro relacionadas al cambio climático y la disminución de la de manda asociada a productos con emisiones significativas de gases de efecto invernadero, así como el incremento en la demanda de otros productos con menor cantidad de e misiones, lo cual en caso de darse podría tener un efecto adverso en nuestra posición financiera, liquidez o en nuestros resultados operativos. La Emisora ha afectado un porcentaje de su cartera crediticia a ciertos contratos de fideicomiso He mos afectado un porcentaje de nuestra cartera al patrimonio de ciertos fideicomisos. Derivado de lo anterior, dicho porcentaje forma parte del patrimonio de dichos fideicomisos y los recursos derivados del mismo no pueden ser utilizados por la Emisora para el pago de sus obligaciones. 3.2. Relacionados con los Certificados Bursátiles Los Tenedores de los Certificados Bursátiles no tendrán prelación alguna en caso de concurso mercantil de nuestra empresa Los Tenedores serán considerados, en cuanto a su preferencia, en igualda d de circunstancias con todos nuestros demás acreedores no garantizados. Conforme a la Ley de Concursos Mercantiles, en caso de declaración de concurso mercantil o quiebra de la empresa, ciertos créditos en contra de la masa, incluyendo los créditos en favor de los trabajadores, los créditos en favor de acreedores singularmente privilegiados, los créditos con garantías reales, los créditos fiscales y los créditos a favor de acreedores con privilegio especial, tendrán preferencia sobre los créditos a favor de nuestros otros acreedores, incluyendo los créditos resultantes de los Certificados. Asimismo, en caso de declaración de concurso mercantil o quiebra de la empresa, de existir créditos con garantía real éstos tendrán preferencia (incluso con respecto a los Tenedores) hasta por el producto derivado de la ejecución de los bienes otorgados en garantía.

La Ley de Concursos Mercantiles establece que para determinar la cuantía de las obligaciones pendientes de pago a partir de que se dicte la sentencia de declaración de concurso mercantil, si dichas obligaciones se encuentran denominadas en pesos deberán convertirse a UDIs (tomando en consideración el valor de la UDI en la fecha de declaración del concurso mercantil), y si las mismas se encuentran denominadas en UDIs, dichas obligaciones se mantendrán denominadas en dichas unidades. Asimismo, nuestras obligaciones denominadas en pesos o UDIs, cesarán de devengar intereses a partir de la fecha de declaración del concurso mercantil. Falta de liquidez de los Certificados Bursátiles Es posible que los Certificados Bursátiles no cuenten con un mercado secundario una vez que sean emitidos, y dicho mercado podría no desarrollarse. En caso de que un mercado se desarrolle, puede que el mismo no cuente con suficiente liquidez. Por lo tanto, los inversionistas podrían no tener la posibilidad de vender sus Certificados Bursátiles de forma sencilla o a precios que les otorguen un rendimiento comparable con inversiones similares que hayan desarrollado un mercado secundario. Este es el caso particular de los Certificados Bursátiles que se encuentran sujetos a tasas de interés, riesgos cambiarios o de mercado, se encuentran diseñados para objetivos o estrategias de inversión específicas, o se han estructurado para cumplir con los requisitos de inversión de una categoría limitada de inversionistas. Este tipo de Certificados Bursátiles generalmente tendrían un mercado secundario más limitado y una volatilidad en el precio mayor que valores de deuda convencionales. La falta de liquide z podría tener un efecto severamente adverso en el valor de mercado de los Certificados Bursátiles. Adicionalmente, los Tenedores deben tomar en cuenta las condiciones adversas del mercado global de crédito, que han permanecido en los años recientes, en las cuales ha existido una falta de liquidez general en el mercado secundario para instrumentos similares a los Certificados Bursátiles. Si dichas condiciones adversas del mercado global de crédito volvieran a ocurrir, cualquier falta de liquide z consecuente podría resultar en una pérdida para los Tenedores respecto de los Certificados Bursátiles en ventas secundarias aunque no exista un declive en el desempeño de los activos del Emisor. En el caso que los Certificados Bursátiles prevean la posibilidad de ser amortizados anticipadamente o de darse por vencidos anticipadamente, y efectivamente lo sean, los Tenedores podrán no encontrar una inversión equivalente El Programa contempla que cada emisión que se realice al amparo del mismo tendrá sus propias características. En el caso que así se señale en el título que ampare dicha emisión, una emisión podrá contemplar la posibilidad de ser amortizada anticipadamente y podrá también conte mplar causas de vencimiento anticipado. En el supuesto en que una emisión efectivamente sea amortizada anticipadamente voluntariamente o como resultado de una causa de vencimiento anticipada, los Tenedores que reciban el pago de sus Certificados Bursátiles podrán no encontrar alternativas de inversión con las mismas características que los Certificados Bursátiles (incluyendo tasas de interés y pla zo). La calificación crediticia de los Certificados Bursátiles podría cambiar o ser retirada en cualquier momento Las calificaciones crediticias otorgadas por las agencias calificadoras a los Certificados Bursátiles estarán sujetas a revisión (ya sea a la baja o a la alza) por distintas circunstancias relacionadas con nuestra empresa, el Garante GMF, México, su economía, u otros temas que en la opinión de las agencias calificadoras respectivas pueda tener incidencia sobre la posibilidad de pago de los mismos. Una disminución en la calificación crediticia podría afectar el crecimiento de la Compañía, la condición financiera o los resultados operativos de nuestra empresa, así como nuestra capacidad para pagar los Certificados Bursátiles. Si las agencias calificadoras que haya emitido un dictamen respecto de la calidad crediticia de los Certificados Bursátiles reducen o retiran la calificación otorgada a los mismos, es probable que el mercado secundario de dichos

Certificados Bursátiles se reducirá o se extinguirá. Los inversionistas deberán considerar cuidadosamente cualquier consideración que se señale en las calificaciones correspondientes, las cuales se adjuntarán como un anexo a los Suple mentos correspondientes. Las calificaciones crediticias pueden no reflejar el impacto potencial de todos los riesgos relacionados con la estructura, el mercado, los factores de riesgo adicionales descritos anteriormente, y otros factores que pueden afectar el valor de los Certificados Bursátiles. Una calificación crediticia no constituye una recomendación para comprar, vender o poseer valores y puede ser sujeta a revisiones, suspensiones o cancelaciones por la agencia calificadora que la ha otorgado, en cualquier momento. 3.3. Relacionados con México Las condiciones económicas adversas en México pueden afectar negativamente nuestro desempeño financiero Somos una sociedad constituida en México, todos nuestros activos y operaciones están localizados en México y el desempeño de nuestro negocio podría verse afectado por el desempeño de la economía mexicana. La crisis crediticia global de 2008 y la consecuente recesión económica tuvo consecuencias materialmente adversas sobre la economía mexicana, que en 2009 se contrajo aproximadamente 6.3% del PIB. La economía mexicana actualmente se encuentra recuperándose, con un crecimiento del PIB de aproximadamente 1.1% en 2013, aproximadamente 2.2% en el 2014, aproximadamente 2.6% en 2015 y aproximada mente 2.1% en 2016. No pode mos asegurar que esta recuperación continuará durante el 2017, que se alcanzarán tasas similares a las tasas históricas recientes o que una disminución o recesión económica no ocurrirá en el futuro. Adicionalmente, en el pasado, México ha experimentado periodos prolongados de crisis económicas, causados por factores internos y externos sobre los cuales no tenemos control alguno. Estos periodos se han caracterizado por inestabilidad del tipo de cambio, inflación alta, altas tasas de interés, contracción económica, reducción de inversión extranjera, reducción de la liquidez del sector bancario, alto nivel de desempleo. Una disminución en la tasa de crecimiento de la economía mexicana podría resultar en una menor demanda de financiamiento para la adquisición de vehículos automotores o podría tener un impacto en la capacidad de los acreditados para pagar el saldo de sus créditos. No podemos asegurar que las condiciones económicas de México no vayan a empeorar, o que dichas condiciones no tendrán un efecto material adverso en nuestra condición financiera y resultados de operación o en el valor de mercado o liquidez de los Certificados Bursátiles. Acontecimientos políticos y sociales en México podrán afectar adversamente nuestro negocio Actualmente ningún partido cuenta con una mayoría absoluta en alguna de las cámaras del Congreso de la Unión. La ausencia de una mayoría clara y los conflictos entre los poderes legislativo y ejecutivo podrían resultar en un estancamiento y bloqueos en la implementación oportuna de las reformas estructurales y su legislación secundaria, lo cual podría tener un efecto materialmente adverso sobre la economía mexicana o algunos de sus sectores productivos. No podemos asegurar que los acontecimientos políticos en México no tengan un efecto material adverso sobre nuestro negocio, condición financiera o resultados de operación. En los últimos años, México ha experimentado un incremento en el crimen orga nizado y narcotráfico. Este incremento en el crimen ha tenido un impacto material adverso sobre la actividad económica de México en general. Inestabilidad social en México o acontecimientos sociales o políticos adversos en o afectando a México podrían igualmente impactarnos, así como a nuestra habilidad para llevar a cabo negocios, ofrecer nuestros servicios y obtener financiamiento, y el valor de mercado y liquidez de los Certificados Bursátiles. No podemos

asegurar que los niveles de criminalidad en México, sobre los cuales no tenemos control alguno, no se incrementarán y no resultarán en más efectos materiales adversos sobre la economía mexicana o sobre nuestro negocio, condición financiera o resultados de operación. Enrique Peña Nieto, miembro del Partido Revolucionario Institucional (PRI), fue electo Presidente de México en julio de 2012 y tomó posesión el 1 de diciembre de 2012. Este cambio dio lugar a reformas legislativas y reglamentarias y en las políticas gubernamentales en materias claves tales como hacendaria, energética, financiera y de telecomunicaciones. El efecto a largo plazo de dichas reformas es aún incierto, sin embargo, existe el riesgo de dichas reformas generen cierta incertidumbre con respecto a la economía, o un aumento en la volatilidad de los mercados de capitales y/o el precio de los valores. Aunque los efectos de las reformas o cambios impulsados por la administración de Enrique Peña Nieto, aún son inciertas, las mismas podrían impactar negativamente al Emisor en aspectos laborales, fiscales, de financiamiento, de regulación ambiental, entre otros, los cuales pueden tener un impacto significativamente adverso en los resultados de operación. No podemos prever el alcance del impacto de las reformas promulgadas o bien si el Congreso de la Unión considerará modificar demás leyes existentes que afecten los resultados del Emisor. El gobierno mexicano ha ejercido y continúa ejerciendo una influencia significativa sobre la economía mexicana. Cambios en las políticas de gobierno mexicanas podrían tener un efecto materialmente adverso en nuestros resultados de la operación y condición financiera El gobierno federal mexicano ha ejercido una influencia significativa sobre la economía mexicana. Por lo tanto, las acciones y políticas gubernamentales relacionadas con la economía, empresas con participación estatal, organismos públicos descentralizados, empresas paraestatales y entidades financieras controladas, fondeadas o influenciadas por el gobierno, podrían tener un efecto significativo sobre entidades del sector privado en general y sobre nosotros en particular, así como sobre condiciones de mercado, precios y rendimientos relacionados con valores de emisores mexicanos. En el pasado, el gobierno mexicano ha intervenido en la economía local y ocasionalmente lleva a cabo cambios significativos en las políticas y regulaciones, lo cual podrá continuar haciendo en el futuro. Dichas acciones para controlar la inflación y otras regulaciones y políticas han implicado, entre otras medidas, el incremento de tasas de interés, cambios en la política fiscal, cambios en políticas afectando ciertos sectores de la economía, incluyendo la industria de la vivienda, control de precios, devaluaciones de moneda, controles de capital, límites sobre importaciones y otras acciones. Nuestro negocio, condición financiera y resultados de operación, podrán verse adversamente afectados por los cambios en las políticas de gobierno o regulaciones que involucren o afecten nuestros activos, nuestra administración, nuestras operaciones, nuestra capacidad para incrementar nuestro portafolio y crecimiento, y nuestro régimen fiscal. No podemos asegurar que un cambio en las políticas gubernamentales del gobierno mexicano, incluyendo las políticas de crédito y las políticas relacionadas con organismos públicos descentralizados, no tendrá un efecto material adverso en nuestro negocio, condición financiera y resultados de operación, así como en el valor de mercado de nuestros Certificados Bursátiles. La inflación en México, así como ciertas medidas gubernamentales adoptadas para controlarla, podrían tener un efecto material adverso sobre nuestro desempeño financiero Históricamente, México ha experimentado altos niveles de inflación. Aunque no ha existido volatilidad significativa en las tasas de interés en México durante años recientes, la tasa anual de inflación publicada por el Banco de México, alcanzo 6.5% el 2008, de conformidad con lo establecido por la Comisión Nacional de Salarios Mínimos, la tasa de inflación fue de 4.1% en 2014 , 2.1% en 2015 y 3.4% en 2016, con un crecimiento en salario mínimo en medición anual de 3.9% en 2014, 4.2% en 2015 y 9.6% en 2016. Si México experimenta altos niveles de

inflación como ha sucedido en el pasado, estos podrán afectar de manera adversa nuestras operaciones y desempeño financiero, así como el valor absoluto de nuestros rendimientos. Un incremento sustancial en las tasas de inflación podría afectar materialmente las condiciones macroeconómicas y el desempleo masivo que pudiere detonarse por dicha situación llevaría a una crisis económica que podría afectar significativamente la solvencia de los acreditados y los niveles de incumplimiento de los créditos que conforman nuestro portafolio. Altas tasas de interés en México podrían incrementar nuestros costos de financiamiento Como me ncionamos en el párrafo anterior, históricamente, México ha experimentado altas tasas de interés tanto nominales como reales. En respuesta a la recesión y estancamiento económico de México durante el 2009, el Banco de México bajó la tasa de referencia mexicana (CETES) a 4.5% en un esfuerzo para, entre otras cosas, fomentar los financiamientos y estimular la economía. Adicionalmente, en octubre de 2013, el Banco de México, redujo la tasa antes mencionada a 3.5%. En junio de 2014, Banco de México redujo la tasa de referencia a 3.0%. Al 31 de diciembre de 2016 el nivel de tasa de referencia observado fue de 5.7%. En el mediano y largo pla zo es posible que el Banco de México incremente su tasa de interés de referencia. En concordancia, si incurrimos en deuda denominada en pesos en el futuro, podría ser con tasas de interés altas, lo cual podría tener un efecto adverso sobre nuestro desempeño financiero, resultados de operación y nuestra capacidad para realizar distribuciones respecto de nuestros Certificados Bursátiles y su valor de mercado. Durante 2014, la TIIE de 28 días varió de un mínimo de 3.27% a un máximo de 3.82%. En el 2014, la tasa promedio de la TIIE de 28 días fue de 3.51%. Al 31 de diciembre del 2015, la tasa promedio de la TIIE de 28 días fue de 3.32%, alcanzando un nivel máximo de 3.55% y un mínimo de 3.28%. Durante el año 2016, la tasa promedio de la TIIE de 28 días fue de 4.47%, alcanzando un nivel máximo de 6.11% y un mínimo de 3.55%. El incremento o disminución de las tasas de interés tiene un efecto directo en nuestros resultados operativos. El alza de las tasas de interés incrementa nuestro costo de fondeo. Asimismo, cualquier incremento en dichas tasas podría incrementar indirectamente los niveles de morosidad de nuestros clientes. Acontecimientos en otros países podrían afectar adversamente la economía mexicana, el valor de mercado de nuestros Certificados Bursátiles y nuestro desempeño financiero La economía mexicana y el valor de mercado de las compa ñías mexicanas podrían ser, en cierto grado, afectados por las condiciones económicas y de mercados globales, y en otros países y socios comerciales significativos, particularmente los Estados Unidos. Aunque las condiciones económicas en otros países podrían variar de manera sustancial en relación con las condiciones económicas de México, las reacciones de los inversionistas ante acontecimientos en otros países podrían tener un efecto material adverso sobre el valor de mercado de valores de emisores mexicanos o sobre activos mexicanos. Por ejemplo, históricamente, el precio de los valores mexicanos de deuda y capital se vio materialmente afectado debido a acontecimientos en Rusia, Asia, Brasil y la Unión Europea. La crisis financiera global resultó de 2008 en fluctuaciones significativas en los mercados financieros y economía mexicanos. Específicamente, las condiciones económicas en México están estrechamente relacionadas con las de los Estados Unidos como resultado del Tratado de Libre Comercio de América del Norte o TLCAN, y un incremento en la actividad económica entre los dos países. Condiciones económicas adversas en los Estados Unidos, o la terminación o renegociación del TLCAN u otros eventos relacionados, podrían tener un efecto material adverso sobre la economía mexicana. Adicionalmente, la crisis fiscal en la Eurozona podrá afectar tanto la economía global como la mexicana. No podemos asegurar que eventos en México y en otros países, no producirán un efecto material adverso sobre nuestro desempeño financiero, ganancias operativas o capacidad económica.

Después de cuatro años de relativa estabilidad, de conformidad con las estimaciones del Banco Mundial, los precios del petróleo se han desplo mado desde junio de 2014, sin embargo la importación de petróleo debería beneficiarse de los bajos precios del petróleo ya que un detrimento en dichos precios incrementa los ingresos domésticos y corporativos de manera similar a los recortes fiscales. El desarrollo de los precios del petróleo también podría aumentar la volatilidad de los mercados financieros y de divisas y afectar los flujos de capital. Estas variaciones en los precios del petróleo podrían afectar las condiciones económicas de México y, por lo tanto, afectar nuestro negocio, condición financiera y resultados de operaciones. En 2015 se esperaba que, China, la segunda economía más grande del mundo creciera a un ritmo de 6 por ciento anual, de acuerdo con lo establecido por Rockwell Global Capital, lo cual es mucho más lento que el anticipado en comparación con su crecimiento de dos dígitos hace algunos años. Este detrimento en el crecimiento económico Chino ha colapsado los mercados financieros internacionales con base en un sinnúmero de incertidumbres, anticipando una desaceleración global en respuesta a las debilidades de la economía y mercados financieros de China. Lo anterior podría afectar las condiciones económicas de México y, por lo tanto, afectar nuestro negocio, condición financiera y resultados de operaciones. Cambios en el régimen fiscal de México podrían tener un efecto material adverso sobre nuestra empresa, los Certificados Bursátiles o nuestras operaciones No podemos garantizar que el régimen fiscal vigente en México al momento de las emisiones se mantendrá sin modificaciones durante el transcurso de la vigencia del Programa o de las emisiones que se lleven a cabo al amparo del mismo, ni que los cambios en la política fiscal que lleven a cabo las autoridades federales o locales no afectarán de forma materialmente adversa nuestro negocio, condición financiera y resultados de operaciones. La legislación fiscal está sujeta a cambios constantes y no podemos asegurar si las autoridades federales o locales propondrán y aprobarán reformas a la misma que podrían tener un efecto materialmente adverso y significativo en nuestro negocio, resultados de operaciones o condición financiera futura, así como afectar en forma adversa el régimen fiscal que nos resulta aplicable o a las emisiones correspondientes. Por lo tanto, no podemos asegurar que la regulación fiscal, sobre la cual no tenemos control alguno, no tendrá un impacto negativo en nuestra posición financiera o nuestros resultados de operaciones o que perjudique su capacidad económica. Así mismo, no podemos garantizar que el régimen fiscal aplicable a los pagos que deban hacerse bajo los Certificados Bursátiles no sufrirá modificaciones en el futuro que pudiesen afectar negativamente el tratamiento fiscal de los intereses generados por los Certificados Bursátiles. En caso de que esto ocurriera, podrían aplicar tasas de retención respecto de los pagos a ser efectuados a los Tenedores que fueran mayores a las señaladas en este Reporte Anual por lo que las ganancias esperadas por los inversionistas bajo los Certificados Bursátiles podrían verse reducidas en virtud de un incremento en las tasas de retención aplicables a dichos valores. Los impuestos mexicanos y las reformas hacendarias podrían tener un efecto materialmente adverso sobre nuestro desempeño financiero Las autoridades gubernamentales en México pueden imponer o suspender una serie de impuestos. No podemos asegurar que las autoridades gubernamentales en México no impondrán nuevos impuestos, incrementen los mismos o cambien la interpretación de la ley respecto de nuestra industria financiera y automotriz en el futuro. La imposición de nuevas contribuciones, el incremento de impuestos relacionados con la industria automotriz o de financiamiento, o el cambio en la interpretación de la ley fiscal podría tener un efecto materialmente adverso sobre nuestro negocio, condición financiera y resultados de la operación, así como en el valor de mercado y liquide z de los Certificados Bursátiles.

3.4. Relacionados con los Garantes La legislación aplicable a las Garantías y a su ejecución es la legislación aplicable al estado de Nueva York, E.U.A., sin tomar en cuenta los principios de conflicto de leyes de dicho estado, por lo que cualquier acción o ejecución relacionada con la misma deberá ejercerse en los tribunales ubicados en el distrito de Manhattan, en la Ciudad de Nueva York. Las Garantías que han otorgado los Garantes se constituirán mediante instrumentos denominados Guarantees, los cuales estarán regidos por las leyes del Estado de Nueva York, E.U.A sin tomar en cuenta los principios de conflicto de leyes de dicho estado. Conforme a dichas Garantías, los Garantes se someten a la jurisdicción de los tribunales ubicados en el distrito de Manhattan, en la Ciudad de Nueva York, E.U.A.; por consiguiente, cualquier procedimiento legal relacionado con la ejecución de dichas Garantías deberá iniciarse ante dichos tribunales y siguiendo las normas sustantivas y procesales del Estado de Nueva York, E.U.A. En el supuesto que los Garantes no realicen los pagos que les sean requeridos conforme a los términos de las Garantías, los Tenedores podrán demandar el pago respectivo ejerciendo las acciones aplicables bajo las leyes del Estado de Nueva York, E.U.A sin tomar en cuenta los principios de conflicto de leyes de dicho estado, ante los tribunales ubicados en el distrito de Manhattan, en la Ciudad de Nueva York, E.U.A. Los Garantes son sociedades constituidas en los Estados Unidos de América y la mayoría de sus activos se encuentran ubicados fuera de México. Las operaciones de cada Garante se encuentran sujetas a diversos riesgos propios de los mercados en los que operan, los cuales podrían afectar su liquidez, situación financiera o resultados de operación y, en consecuencia, afectar su capacidad para pagar cualquier reclamación derivada de la Garantía que corresponda. De igual manera, en caso de insolvencia o quiebra de uno o ambos Garantes, las reclamaciones de los Tenedores conforme a las Garantías estarán sujetas a la preferencia que establezcan las leyes del Estado de Nueva York, E.U.A sin tomar en cuenta los principios de conflicto de leyes de dicho estado. Los Estados Financieros del Garante GMF no están elaborados conforme a las NIF Los estados financieros del Garante GMF están preparados conforme a los principios de contabilidad generalmente aceptados en los Estados Unidos de América, los cuales difieren de las NIF. Los estados financieros de AmeriCredit están consolidados en los estados financieros del Garante GMF por lo que no se presentan ni publican de forma individual, sino incorporados a los de Garante GMF. La rentabilidad y condición financiera de los Garantes depende de las operaciones de General Motors Una porción importante del negocio financiero de los Garantes y, sustancialmente todas sus actividades de crédito comercial consisten en el otorgamiento de financiamientos asociados a la venta y arrendamiento financiero de vehículos de la marca General Motors y en su relación con los distribuidores de vehículos General Motors. Si ocurrieran cambios significativos en la liquidez de General Motors y su posición y acceso a los mercados de capital, en la producción o ventas de los vehículos de la marca General Motors a consumidores minoristas, en la calidad o valor de reventa de los vehículos de la marca General Motors, o en otros factores que afecten a General Motors o a sus productos, dichos cambios podrían afectar materialmente a la rentabilidad, condición financiera y acceso al mercado de capitales de los Garantes. Adicionalmente, General

Motors patrocina programas de financiamiento con tasas preferentes disponibles a través de los Garantes. Al amparo de dichos programas General Motors entrega intereses u otros pagos de soporte a los Garantes. Estos programas incrementan el volumen de financiamiento de los Garantes y la proporción de ventas de vehículos financiados de la marca General Motors. En caso de que en el futuro General Motors adoptara estrategias de mercado que restaran importancia a dichos programas en beneficio de otros incentivos, el nivel de financiamiento de los Garantes podría reducirse. No hay garantía alguna de que el mercado global a utomotriz o la porción de General Motors de dicho mercado no sufrirá detrimentos en el futuro, y cualquier impacto negativo podría resultar en un efecto material adverso en nuestra posición financiera, liquidez y resultados operativos. General Motors no funge como garante de los Certificados Bursátiles y podría tener intereses que entren en conflicto con aquellos de los Tenedores General Motors no funge como garante de, ni se encuentra obligado de forma alguna respecto de, los Certificados Bursátiles emitidos por la Compañía. Los Certificados Bursátiles se encuentran garantizados únicamente en los términos descritos en el presente Reporte Anual. 3.5. Relacionados con las declaraciones respecto al futuro El presente Reporte Anual contiene ciertas declaraciones respecto al futuro. Estas declaraciones incluyen, de manera enunciativa pero no limitativa: (i) declaraciones en cuanto a nuestra situación financiera y resultados de operación; (ii) declaraciones en cuanto a nuestros planes, objetivos o metas, incluyendo declaraciones en cuanto a nuestras actividades; y (iii) declaraciones en cuanto a las presunciones subyacentes en que se basan dichas declaraciones. Las declaraciones respecto al futuro contienen palabras tales como “pretende”, “prevé”, “considera”, “estima”, “espera”, “pronostica”, “planea”, “predice”, “busca”, “podría”, “debería”, “posible”, “lineamiento” y otros vocablos similares, ya sea en primera o tercera persona, sin embargo, no son los únicos términos utilizados para identificar dichas declaraciones. Por su propia naturaleza, las declaraciones respecto al futuro conllevan riesgos e incertidumbres de carácter tanto general como específico y existe el riesgo de que no se cumpla n las predicciones, los pronósticos, las proyecciones y las demás declaraciones respecto al futuro. Se advierte a los inversionistas que hay muchos factores importantes que pueden ocasionar que los resultados reales difieran sustancialmente de los expresados en los planes, objetivos, expectativas, estimaciones y afirmaciones tanto expresas como implícitas contenidas en las declaraciones con respecto al futuro, incluyendo los siguientes:

· la competencia en la industria y los mercados en lo que se desenvuelve la empresa; · la disponibilidad y costo de fuentes de financiamiento; · el desempeño de los mercados financieros y nuestra capacidad para renegociar nuestras obligaciones financieras en la medida necesaria;

· las restricciones cambiarias y las transferencias de fondos al extranjero; · nuestra capacidad para imple mentar nuestras estrategias corporativas; · la falla de nuestros sistemas de tecnología de la información, incluyendo los sistemas de datos y comunicaciones;

· las fluctuaciones en los tipos de cambio, las tasas de interés o el índice de inflación, y

· el efecto de los cambios en las políticas contables, la pro mulgación de nuevas leyes, la intervención de las autoridades guberna mentales o la política fiscal.

gubernamentales,

la

emisión

de

órdenes

De concretarse alguno o varios de estos factores o incertidumbres, o de resultar incorrectas las presunciones subyacentes, los resultados reales podrían diferir sustancialme nte de los deseados, previstos, esperados, proyectados o pronosticados en este Reporte Anual. Los posibles inversionistas deben leer las secciones tituladas “I. Información General – 2. Resumen Ejecutivo”, “I. Información General – 3. Factores de Riesgo”, y “IV. Información Financiera – 4. Comentarios y Análisis de la Administración sobre los Resultados de Operación y Situación Financiera del Emisor” del presente Reporte Anual para entender los factores que pueden afectar nuestro desempeño futuro y los mercados en los que operamos. Dados los riesgos y las incertidumbres y presunciones antes descritas, es posible que los hechos descritos en las declaraciones respecto al futuro no ocurran. No asumimos obligación alguna de actualizar o modificar las declaraciones respecto al futuro contenidas en este Reporte Anual en caso de que obtengamos nueva información o en respuesta a hechos o acontecimientos futuros. De tiempo en tiempo surgen factores adicionales que afectan nuestras operaciones y no podemos predecir la totalidad de dichos factores ni evaluar su impacto en nuestras actividades o la medida en que un determinado factor o conjunto de factores puede ocasionar que los resultados reales difieran sustancialmente de los expresados en las declaraciones respecto al futuro. Aun cuando consideramos que los planes y las intenciones y expectativas reflejadas en las declaraciones respecto al futuro son razonables, no pode mos garantizar que lograremos llevarlos a cabo. Además, los inversionistas no deben interpretar las declaraciones relativas a las tendencias o actividades previas como una garantía de que dichas tendencias o actividades continuarán a futuro. Todas las declaraciones a futuro, ya sean escritas, verbales o en formato electrónico, imputables al Emisor o sus representantes, están expresamente sujetas a esta advertencia. 4.

Otros Valores

El 16 de noviembre de 2012, la CNBV mediante oficio 153/9240/2012 autorizó al Emisor un programa revolvente de certificados bursátiles de corto plazo por un monto de $6,000’000,000.00 (el “Primer Programa de Corto Plazo del Emisor”). El 5 de noviembre de 2014, la CNBV mediante oficio 153/107557/2014 autorizó al Emisor un programa revolvente de certificados bursátiles de corto plazo por un monto de $6,000’000,000.00 (el “Segundo Programa de Corto Plazo del Emisor”, junto con el Primer Programa de Corto Plazo del Emisor, el “Programa de Corto Plazo del Emisor”). El 27 de octubre de 2016, la CNBV mediante oficio 153/106060/2016 autorizó al Emisor un Programa de Certificados Bursátiles de Corto y Largo Plazo con Carácter Revolvente por un monto de hasta $7,000’000,000.00 (siete mil millones de pesos 00/100 M.N.) o su equivalente en unidades de inversión. Tenemos colocados, al 31 de diciembre de 2016, un total de 11,800,000 certificados bursátiles de corto plazo emitidos al amparo del Progra ma de Corto Plazo del Emisor por un monto total en circulación de $1,180,000,000.00. A continuación se presenta el detalle de los certificados bursátiles de corto plazo vigentes al 31 de diciembre de 2016:

Clave de Pizarra GMFIN 04416 GMFIN 04516

GMFIN 04616

Tipo de Valor Certificados Bursáti les de Corto Plazo Certificados Bursáti les de Corto Plazo Certificados Bursáti les de Corto Plazo

Monto Emitido (M.N.)

Número de Certificados Bursáti les

Fecha de Emisión

Fecha de Vencimiento

Plazo (días)

$500,000,000.00

5,000,000

24 de noviembre de 2016

12 de enero de 2017

49

$230,000,000.00

2,300,000

01 de diciembre de 2016

19 de enero de 2017

49

$450,000,000.00

4,500,000

08 de diciembre de 2016

26 de enero de 2017

49

5. Cambios significativos a los derechos de Valores inscritos en el registro Nacional de Valores No hay cambios significativos a los derechos de los valores inscritos en el RNV. 6.

Destino de los Fondos

El destino específico de los recursos se dará a conocer en el Suple mento o Aviso que corresponda a cada una de las emisiones, según sea aplicable, el cual podrá ser para, entre otros, el financiamiento de operaciones de créditos comerciales y/o créditos al consumo, mediante distintos esquemas tales como Plan Piso, planes de flotillas, préstamos de capital y líneas revolventes para capital de trabajo, financiamiento de menudeo para adquisición de vehículos nuevos o usados, arrendamiento y otros fines corporativos. 7.

Documentos de Carácter Público

Toda la información contenida en el presente Reporte Anual y cualquiera de sus anexos y que se presenta como parte de la solicitud de inscripción de los Certificados Bursátiles en el RNV, podrá ser consultada por los inversionistas en las oficinas del Emisor o en su página de internet www.gmfinancial.mx, o bien a través de la BMV y la CNBV, en sus oficinas, o en sus páginas de Internet www.bmv.com.mx y www.cnbv.com.mx, respectivamente. El presente Reporte Anual incluye cierta información del Garante GMF basada en la información presentada por el Garante GMF ante la SEC. A solicitud del inversionista se otorgarán copias de este documento. Para este propósito los inversionistas deben dirigirse a GM Financial de México, S.A. de C.V. Sociedad Financiera de Objeto Múltiple, Entidad Regula da, con dirección en Ave. Eugenio Garza Lagüera N°933, Planta Baja, Colonia Valle Oriente, San Pedro Garza García, Nuevo León, C.P. 66269, teléfono +52 81 8399 9700, en atención a Victor Manuel Lamadrid León, o a través del correo electrónico:[email protected]

II. EL EMISOR 1) Historia y Desarrollo de la Compañía 1.1 Datos Generales Nuestra denominación social es: GM Financial de México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada, y nos ostentamos comercialmente como “GM Financial”. Nuestras oficinas centrales se encuentran ubicadas en Ave. Eugenio Garza Lagüera N°933, Planta Baja, Colonia Valle Oriente, San Pedro Garza García, Nuevo León, C.P. 66269 y su teléfono es +52 (01) 81 8399 9700. Somos una subsidiaria de General Motors Financial Compa ny, Inc., quien tiene directamente el 0.10% de nuestra Compañía, e indirectamente el 99.90%, a través de su subsidiaria GM Financial Mexico Holdings LLC. General Motors Financial Company, Inc. es propiedad en un 100% de General Motors, a través de su subsidiaria General Motors Holdings LLC. General Motors es una marca que representa uno de los fabricantes de vehículos más grande del mundo, el cual fue fundado en 1908 en el Estado de New Jersey en los Estados Unidos. Actualmente, tiene presencia en aproximada mente 120 países y además de la fabricación, ensamble y comercialización de autos y camiones realiza negocios en otros sectores como transmisiones y comercialización de partes y accesorios automotrices. 1.2 Evolución de la Compañía A continuación se presenta una gráfica que muestra los principales acontecimientos de la Compañía en México: Inicio de operaciones en Mexico

Acuerdo

con

ABACO

Reestructuración

y

1er.

Grupo Financiero, creando

centralización

de

pública en México de

ABA

operaciones

en

Plan

Motriz,

operaciones

expande

en

México

Monterrey, N.L.

Piso,

programa

aprovechando el TLC de

General Motors Financial adquiere Ally Credit

bursatilización

el fue

nombrado FAMA

Norteamérica

1931

1940

1995

1999

2001

2006

2010

2013

20 14-2016

General Motors compra a

Grupo

Inicio del Financiamiento

Abaco Grupo Financiero el

adquiere el 51% de

pública de menudeo en

denominación a GM Financial

de operaciones de Plan

51% del capital social de Aba

GMAC Inc. brazo

México. Agosto 2010,

de México S.A. de C.V.

Pisoen México

Motriz

financiero de General

GMAC

SOFOM,E.N.R.

Motors Company

cambia su nombre a

y

cambia

la

denominación de ésta última a

Cerberus

2008 1er.

bursatilización

Mexicana

GMAC Mexicana, S.A. de

Ally Credit, S.A. de

C.V., SOFOL Filial

C.V., SOFOL Filial (“Ally Credit”)

Enero

2014,

cambió

de

Abril 2015, cambió a GM Financial de México S.A. de C.V.

SOFOM ,

Entidad

Regulada

Iniciamos operaciones en 1931 en la Ciudad de México. Desde ese entonces a la fecha, hemos brindado servicios de soporte y asesoría financiera. Como entidad legal, GMF México se constituyó en la Ciudad de México bajo la denominación de GMAC Mexicana, S.A. de C.V.,

Sociedad Financiera de Objeto Limitado Filial, el 17 de agosto de 1995, con duración indefinida, según consta en la escritura pública 1003, otorgada ante la fe del Lic. Francisco I. Hugues Velez, titular de la notaria 212 del Distrito Federal. En 2010 nos convertimos en Ally Credit, S.A. de C.V., Sociedad Financiera de Objeto Limitado Filial, y seguimos afianzando nuestra posición en el mercado. A partir del 15 de enero de 2014 cambia mos nuestra denominación a GM Financial de México, Sociedad Financiera de Objeto Múltiple, Entidad No Regulada, la financiera automotriz de General Motors Financial Services, Inc. en México. Desde abril de 2015 somos una sociedad anónima de capital variable, SOFOM, Entidad Regula da cuya actividad primordial consiste en proporcionar servicios y recursos financieros a los Distribuidores y sus clientes para la adquisición de vehículos, principalmente, de la marca General Motors. Buscamos satisfacer las necesidades de financiamiento automotriz de nuestros clientes a través de asesoría y atención personalizada, una actitud cercana y amable, y la generación de valor agregado para garantizar la calidad en nuestro servicio. Somos una empresa de servicios financieros que se desempeña en e l sector automotriz de México, financiamos vehículos y ofrecemos al consumidor mexicano un servicio de calidad y diversas opciones de crédito para adquirirlos. Nuestro equipo de administración aporta amplia experiencia, y conocimiento de la industria de financiamiento de automóviles para cubrir las necesidades de nuestros clientes. Contamos con líneas de crédito para la compra de vehículos de servicio particular o público, para personas físicas o morales. Asimismo, nuestro portafolio de planes y productos de valor agregado per mite a los clientes encontrar una opción en el mercado para adquirir su vehículo. Mediante resoluciones adoptadas por la asamblea general extraordinaria de accionistas del 21 de abril de 2015 y con efectos a partir del 27 de abril de 2015, se resolvió adoptar la modalidad de sociedad financiera de objeto múltiple, entidad regulada y en consecuencia se reformaron ciertos artículos de nuestros estatutos sociales. Lo anterior, en cumplimiento con la Ley del Mercado de Valores, y de conformidad con lo dispuesto por los artículos 87-b y 87-d, fracción V, de la Ley General de Organizaciones y Actividades Auxiliares del Crédito, las cuales indican que al ser una emisora de valores de deuda inscritos en el Registro Nacional de Valores calificamos como una entidad regulada.

2) Descripción del Negocio

2.1. Actividad Principal Tenemos como actividad principal el proveer de servicios y recursos financieros a los Distribuidores y sus clientes, para la adquisición y arrendamiento de vehículos principalmente de la marca General Motors. Las áreas de negocio de GMF México pueden separarse básicamente en dos: crédito comercial y crédito de consumo. Crédito Comercial También denomina da como área de crédito de mayoreo, en esta área de negocio se encuentran todos los financiamientos que se otorgan a través del Plan Piso y de préstamos de capital de trabajo. Con el Plan Piso, GMF México brinda la oportunidad a los Distribuidores de adquirir unidades nuevas de las plantas armadoras con el objeto de poder llevar a cabo su posterior comercialización, promoción y distribución.

La siguiente tabla muestra un resume n de los principales productos financieros para crédito comercial ofrecidos por nuestra empresa.

Productos Financieros Plan Piso: Permite a los distribuidores adquirir inventario de vehículos nuevos y seminuevos Préstamos de Capital: Permite a los distribuidores contar con recursos para remodelaciones, ampliaciones, compra de equipo, entre otros Plan Flotillas: Este financiamiento tiene como objetivo clientes que realizan operaciones mayores a USD $250,000 Para el financiamiento de unidades bajo este esquema existen los siguientes programas: ·

Vehículos nuevos:

A través de este programa, los Distribuidores pueden adquirir de la planta armadora autos y camiones nuevos mediante el uso de líneas de crédito revolventes otorgadas por GMF México revisables cada 6 meses o cada año. Dichas líneas de crédito generan intereses pagaderos mensualmente. El capital que se adeude a GMF México como resultado del financiamiento de una unidad deberá ser pagado en un periodo máximo de 48 horas después de que la unidad haya sido entregada al consumidor final; esto es una vez que el Distribuidor ha vendido el vehículo. ·

Vehículos seminuevos:

Con este plan el Distribuidor tiene la posibilidad de adquirir vehículos usados de cualquier marca que no tengan más de 6 años de antigüedad incluyendo el año en curso, los cuales deberán estar en buenas condiciones. Estas unidades pueden ser revisadas por un representante de GMF México. ·

Plan pagos diferidos:

Bajo este programa los Distribuidores que tengan firmado el convenio de plan de pagos diferidos pueden satisfacer necesidades de consumidores finales cuyas características de operación de mandan flotillas de vehículos. Los Distribuidores cuentan con un periodo adicional para liquidar la unidad a GMF México una vez que ha sido entregada al consumidor final, de acuerdo a las condiciones de pago del cliente. ·

Préstamos de capital:

Para apoyar a los Distribuidores, GMF México puede otorgar préstamos simples o revolventes para capital de trabajo, mismos que son utilizados con frecuencia para la remodelación de instalaciones y adquisición de nuevos inmuebles. Los Distribuidores al 31 de diciembre de 2016, sumaban un total de 170.

A continuación se muestran los 10 Distribuidores de la marca General Motors que presentan el mayor saldo insoluto de financiamiento comercial contratado con nuestra empresa al 31 de diciembre de 2016. Distribuidores GM de México

Posición

Saldo en Millones de Pes os

1 2

$383 $374

3 4

$297

5 6

$239 $238

7

$215

8

$209

9 10

$185 $181

$271

Crédito de Consumo En el área de crédito de consumo o crédito de menudeo, otorgamos financiamiento y/o arrendamiento a personas morales o físicas que quieran adquirir unidades nuevas o usadas de GM de México o de otras marcas, mediante un esquema variado de alternativas que buscan cubrir todos los segmentos de mercado. En relación con este tipo de crédito, existen 2 esquemas de financiamiento que son: ·

Contratos Con Recurso: bajo este esquema el Distribuidor funge como aval en caso de incumplimiento del pago del crédito.

·

Contratos Sin Recurso: bajo este esquema GMF México asume todo el riesgo crediticio de la operación correspondiente, pudiendo o no exigir que la misma sea garantizada por medio de un aval.

La siguiente tabla contiene un resumen de los principales productos financieros, para crédito de consumo, que ofrecemos:

Productos Financieros Plan Tradicional: Financiamiento hecho a la medida del cliente, tomando en cuenta sus necesidades Planes Especiales: Para líneas y modelos particulares de vehículos, con diferentes opciones en la inversión inicial y atractivas tasas como 0% de interés Plan Accesible: Enfocado en personas que por su actividad económica no le permiten demostrar sus ingresos de forma tradicional. GM Financial de México realiza un estudio socioeconómico para conocer mejor al cliente Planes Seminuevos: Permite adquirir vehículos con antigüedad de hasta 6 años al modelo actual, con atractivas mensualidades y tasas fijas Plan Flotillas: Este financiamiento tiene como objetivo clientes que realizan operaciones menores a USD $250,000 RightLease: Este producto ofrece arrendamiento operativo principalmente al canal de lujo como Cadillac, Buick y GMC

Nuestra cartera de crédito de consumo se encuentra distribuida de la siguiente forma:

Vehículos Financiados de crédito de consumo 1%

99%

Unidades Nuevas

Unidades Usadas

Fuente: GMF México.

Nuestro negocio depende substancialmente de las ventas de General Motors en México. La siguiente gráfica muestra la participación en el mercado de vehículos vendidos en México por las diferentes marcas durante el 2015 y 2016. Industria Automotriz Mexicana y Participación de Mercado 8.3% 8.4%

Otros KIA Hyundai Mazda Honda Toyota Ford Chrysler

3.5% 0.8% 2.2% 1.9% 3.3 % 4.1% 5.5% 5.5% 6.4 % 6.1% 6.2% 6.5% 6.3% 7.4% 15.0% 15.8%

Volkswagen

18.8% 18.5%

General Motors

24.5% 25.1%

Nissan 2016

Fuente: AMIA

2015

Nuestro negocio se encuentra ligado primordialmente al desempeño de las ventas de General Motors en México. La siguiente gráfica muestra el número de vehículos vendidos por los Distribuidores por los años 2014, 2015 y 2016. Unidades General Motors Vendidas y su Porcentaje de Participación en el Mercado

350 18.6%

18.5%

18.8%

20.0%

300 17.5%

250 200

15.0% 309

150 100

217

256 12.5%

50 0

10.0% 2014

2015

Unidades Vendidas (miles)

2016 % Participación Mercado

Fuente: JATO Dynamics

Políticas de crédito y procedimientos de autorización

Procedimientos de Aprobación de Crédito Comercial Contamos con un área especializada que analiza las solicitudes de créditos para las operaciones de mayoreo, al amparo del Plan Piso. Previo a la aprobación de líneas de crédito para operaciones al mayoreo, recabamos la información financiera y operativa del Distribuidor que, conforme a los procedimientos de crédito, nos permita llegar a una determinación objetiva para otorgarles o no un préstamo. Nuestro análisis incluye la revisión de la situación financiera y documentación legal de cada Distribuidor solicitante. Con dicho análisis, determinamos el nivel de riesgo y las garantías aplicables. Generalme nte, cada cuenta por cobrar generada por el financiamiento al Distribuidor es garantizada por todos los vehículos propiedad de dicho Distribuidor que fueron objeto de financiamiento, y en algunos casos, por otros bienes y garantías que el Distribuidor extiende a favor de nuestra empresa. Una vez realizado el aná lisis, preparamos una recomendación escrita, ya sea aprobando o rechazando la solicitud de crédito. Dependiendo del monto de la línea de crédito solicitada y del perfil financiero del Distribuidor, en algunos casos transmitimos nuestra recomendación a nuestra oficina ejecutiva para confirmar la aprobación o rechazo. Una vez que se aprueba la línea de crédito se documenta en un contrato de crédito, el cual permite disposiciones de las líneas revolventes, siempre y cuando el Distribuidor cumpla con nuestras políticas de crédito y con los términos y condiciones fijados en el contrato respectivo.

Las líneas de crédito otorgadas típicamente se mantienen vigentes por un periodo de un año. Procedimiento de Documentación Los créditos comerciales conocidos como Plan Piso se otorgan al amparo de contratos de apertura de crédito en cuenta corriente con garantía prendaria, donde se establecen los términos y condiciones para disponer del crédito, los plazos de pago, las tasas de interés, así como otras características de los mismos. Generalmente, se incluye como fiador y/o aval al principal accionista del Distribuidor tanto en el contrato de apertura de crédito como en el pagaré correspondiente. Mediante el contrato de apertura de crédito, adquirimos una garantía prendaría sin transmisión de posesión sobre los vehículos que el Distribuidor adquiere a través de dicho financiamiento. En algunos casos, podemos requerir garantías adicionales como cartas de crédito, bienes inmuebles, propiedad del Distribuidor o de algún tercero. También ofrecemos préstamos de capital y líneas revolventes para capital de trabajo, para lo cual solicitamos garantías reales con las que se pueda sustentar dicho préstamo. Nuestras operaciones de crédito comercial exigen garantías sujetas a la legislación mexicana en vigor y los documentos respectivos se protocolizan e inscriben en los registros públicos correspondientes. En los créditos comerciales se establece la obligación a cargo del Distribuidor de adquirir y mantener seguros de daños sobre los vehículos en exhibición, al igual sobre las garantías respectivas, sean éstas prendarías o hipotecarias. Procedimiento de aprobación Crédito de Consumo El procedimiento para la aprobación de una solicitud de crédito o arrenda miento automotriz y la compra del contrato de crédito o arrenda miento otorgado por nuestra empresa inicia en el momento en el que el consumidor final acude a un Distribuidor para la compra de un vehículo a través de un financiamiento o arrendamiento. El cliente solicita al Distribuidor una cotización para el financiamiento o arrendamiento automotriz, en su caso, de acuerdo a sus necesidades. Si dicha cotización cubre las necesidades del cliente, el Distribuidor le entrega una solicitud de crédito o arrendamiento y una lista de requisitos con los que debe cumplir para ser sujeto de crédito o arrendamiento automotriz, en su caso. El cliente entrega el formato de solicitud de crédito o arrendamiento y los documentos solicitados. La información del cliente es capturada a través de un sistema que utiliza el Distribuidor, el cual es proveído por nuestra empresa, y la información es transmitida a nuestros sistemas. Una vez ingresada y transmitida la información de la solicitud de crédito o arrendamiento, en su caso, nuestro sistema, de manera automática, procesa la información y hace una conexión con nuestro proveedor de información crediticia, obteniendo la información del cliente correspondiente, enviándonos los resultados sobre la capacidad crediticia del cliente, de conformidad con un conjunto de variables designadas por el área de riesgo y un conjunto de alertas, tanto de perfil de fraude como de lavado de dinero. Al terminar dichas evaluaciones automáticas, nuestro sistema genera un número de referencia, el cual funciona como identificador de dicha solicitud. Nuestros analistas de crédito, quienes tienen conocimiento y experiencia necesarios para realizar el análisis de crédito, cuentan con niveles y límites de autorización definidos para la toma de decisiones respecto del otorgamiento del crédito o arrenda miento correspondiente. Nuestros analistas comienza n realizando una serie de validaciones dentro de las cuales se encuentran, calificación crediticia, experiencia de crédito con la compañía, tipo de unidad, plan, plazo, pago mensual, datos generales del cliente, historial crediticio, arraigo tanto en su domicilio particular como del empleo.

Nuestros analistas de crédito proceden a calcular la capacidad de pago del cliente, a efecto de dar una respuesta al Distribuidor, con base en los tiempos establecidos. Los tipos de respuesta que pueden ser otorgadas al distribuidor son las siguientes: 1. Aprobada. Para las solicitudes que fueron aceptadas de acuerdo a las condiciones originales y considerando los procedimientos descritos anteriormente. 2. Calificada. Para las solicitudes que están sujetas a cumplir con algún requerimiento adicional o bien ajustarse a condiciones establecidas por cada analista, para que se pueda otorgar el crédito (entre otras, solicitar un aval, inversión inicial mayor, mensualidades máximas o documentos adicionales). 3. Activa. Para las solicitudes, en las que no es posible otorgar una respuesta por no tener la información completa, la misma sea incorrecta o se encuentre en revisión. 4. Rechazada. Para las solicitudes que de acuerdo a sus características, no cumplen con los criterios y políticas necesarios para el otorgamiento del crédito, (por ejemplo, historial irregular en el buró de crédito, ingresos insuficientes, historial no satisfactorio, entre otros). Una vez tomada la decisión de crédito o arrendamiento, la misma es informada al Distribuidor a través de nuestro sistema, para que pueda proceder a la firma del contrato o solicitar al cliente que cumpla con algún otro requerimiento que fuese solicitado por el analista de crédito. En el supuesto que el cliente desea realizar cambios en las condiciones del crédito o arrendamiento, el Distribuidor volverá enviar la solicitud para que esta sea analizada nuevamente por el equipo de análisis.

2.2. Canales de Distribución Nuestro principal canal de distribución está conformado por (1) los Distribuidores y (2) distribuidores de marcas distintas a General Motors que tengan celebrado el contrato de plan piso y global menudeo. Al amparo de este último se otorgaran aperturas de crédito simple para la adquisición de bienes de consumo duradero en favor de terceros. Es directamente en estos canales de distribución donde se publicitan y promueven los servicios y la asistencia financiera de nuestra empresa; asimismo, en conjunto con General Motors se realizan campañas de promoción en México, logrando de esta forma sinergias entre estas empresas. Tenemos contacto con nuestros clientes a través de nuestra oficina central; además contamos con varios representantes de ventas que dan servicio y asesoría a distintas zonas en el país. De igual manera, para la labor de cobranza judicial y extrajudicial existen diferentes zonas distribuidas estratégicamente a lo largo del país. Adicional a esto, contamos con un número telefónico sin costo, con cobertura nacional, y con un centro de servicio y de atención al cliente que atiende y canaliza necesidades, sugerencias y quejas de nuestros clientes, así como un centro de asistencia a través de correo electrónico. Contamos con presencia en todos los estados de la República Mexicana a través de la red de Distribuidores y principalmente con una mayor presencia en las zonas de la Ciudad de México y Área metropolitana con una participación de 27.2%, en el Noreste del 19.8%, y en el Occidente y Centro en conjunto del 23.2%. Al 31 de diciembre de 2016, comparado con información al cierre de 2015 y 2014 nuestra distribución de la cartera crediticia por zona geográfica es la siguiente:

Zona

Porcenta je de carte ra tota l 2016 2015

2014

DF y Área Metropolitana

27.2%

30. 1%

29.5%

Noreste

19.8%

19. 2%

18.9%

Oc cidente Centro

12.2% 11.0%

10. 8% 10. 7%

10.8% 10.6%

Sur

9. 3%

9.1%

9. 5%

Oriente

8. 6%

8.9%

9. 4%

Noroeste Sureste

7. 1% 4. 9%

6.3% 4.9%

5. 8% 5. 5%

100%

100%

100%

La distribución de zonas geográficas del país se integra como sigue: ZONAS

DF y Area Metropoli ta na

Distrito Federal

Aguascalientes

Estado de México

Guanajuato Centro

San Luis Potosí Querétaro

Yucatán Su reste

Zacatecas

Quintana Roo Campeche Puebla Morelos Tamaulipas

No reste

Sur

Guerrero

Nuevo León

Oax aca

Coahuila

Chiapas

Chihuahua

Hidalgo Sonora No roeste

Tabasco

Baja California

Tlax cala

Baja California Sur

Veracruz

Durango

Sinaloa Jalis co Occid ente

Orie nte

Nayarit Colima Mic hoac án

2.3. Patentes, Licencias, Marcas y otros Contratos No existen patentes, licencias, marcas, franquicias, contratos industriales o comerciales o de servicios financieros que consideremos relevantes para el desarrollo de nuestros negocios. Los derechos de uso de las marcas que utilizamos en el giro ordinario de nuestros negocios derivan (i) del otorgamiento de licencias a nuestro favor por parte, directa o indirecta, de General Motors; o (ii) de la titularidad de los derechos de uso de las marcas de nuestra propiedad. 2.4. Principales Clientes Por la naturaleza de las operaciones de crédito de menudeo no existe un cliente que en lo individual represente una concentración relevante de nuestros ingresos. En relación con los créditos de mayoreo, ningún Distribuidor ostenta más del 2% de participación en la cartera vigente a diciembre de 2016, 2015 y 2014, respectivamente. A continuación se muestran los saldos de 10 Distribuidores que presentan el mayor saldo insoluto de financiamiento comercial contratado con nosotros, al 31 de diciembre 2016: Distribuidores GM de México Posición 1 2

Saldo en Millones de Pesos $383 $374

3 4 5 6

$297 $271 $239 $238

7 8 9 10

$215 $209 $185 $181

2.5. Legislación Aplicable y Situación Tributaria Marco Regulatorio Derivado de la Calidad y Actividades de Nuestra Empresa De manera general, somos una entidad sujeta a la legislación aplicable a las sociedades mercantiles en México, como lo es la Ley General de Sociedades Mercantiles. Además, en nuestro carácter de Sociedad Financiera de Objeto Múltiple, Entidad Regulada, nos encontramos sujetos a las disposiciones aplicables de la Ley General de Organizaciones y Actividades Auxiliares del Crédito, la Ley para la Transparencia y el Ordena miento de los Servicios Financieros y la Ley de Protección y Defensa al Usuario de Servicios Financieros y la Ley Federal de Protección al Consumidor. Igualme nte, nos resultan aplicables diversas regulaciones en materia de (i) calificación de cartera crediticia y constitución de estimaciones preventivas por riesgo crediticio, (ii) la revelación y presentación de información financiera y auditores externos, (iii) contabilidad y (iv) la prevención de operaciones con recursos de probable procedencia ilícita,

emitidas por la CNBV. En cuanto a nuestras actividades comerciales, la Ley General de Títulos y Operaciones de Crédito también nos resulta aplicable. Finalmente; en lo referente a la colocación de instrumentos inscritos en el RNV, somos sujetos a las disposiciones de la Ley del Mercado de Valores. Supervisión Como Sociedad Financiera de Objeto Múltiple, Entidad Regulada, nos encontramos supervisados principalmente por la Co misión Nacional Bancaria y de Valores, la Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros, Banco de México y Procuraduría Federal del Consumidor. De conformidad con lo establecido en las Disposiciones de carácter general a que se refieren los artículos 115 de la Ley de Instituciones de Crédito en relación con el 87-D de la Ley General de Organizaciones y Actividades Auxiliares del Crédito y 95-Bis de este último ordena miento, aplicables a las sociedades financieras de objeto múltiple, estamos obligados, entre otras cosas, a: ·

Desarrollar políticas de conocimiento de cliente de conformidad con las disposiciones antes mencionadas;

·

Notificar a la Comisión Nacional Bancaria y de Valores de operaciones inusuales, operaciones relevantes y operaciones internas preocupantes, de manera regular;

·

Contar con estructuras internas como un Oficial de Cumplimiento y un comité de comunicación y control para atender temas en materia de anti-lavado.

·

Resguardar documentos relevantes por un periodo de al menos 10 años;y

·

Remitir a la Comisión anualmente el informe de Auditoría en materia de PLD.

Régimen Aplicable a las Sociedades Financieras de Objeto Múltiple, Entidades Reguladas El 10 de enero de 2014 fue publicado en el Diario Oficial de la Federación el “Decreto por el que se reforman, adicionan y derogan diversas disposiciones en materia financiera y se expide la Ley para Regular las Agrupaciones Financieras”, mediante el cual se reformaron, entre otras, diversas disposiciones del Capítulo II del Título Quinto de la Ley General de Organizaciones y Actividades Auxiliares del Crédito (LGOAAC) aplicables a las Sociedades Financieras de Objeto Múltiple Reguladas y No Reguladas conforme a las cuales se consideran como SOFOM E.R. a aquellas sociedades financieras de objeto múltiple que: (i) emitan directamente valores de deuda a su cargo, inscritos en el Registro Nacional de Valores conforme a la Ley del Mercado de Valores, (ii) emitan dichos valores a través de un fideicomiso del que forme parte como fideicomitente, cedente, administrador del patrimonio fideicomitido, o bien se constituya como garante o avalista de dichos valores o (iii) cuando el cumplimiento de las obligaciones en relación con los títulos que se emitan al a mparo del fideicomiso respectivo dependan total o parcialmente de dicha SOFOM. GMF México es actualmente emisora de valores de deuda inscritos en el Registro Nacional de Valores; razón por la cual, el día 21 de abril de 2015 sus accionistas celebraron una Asamblea General Extraordinaria mediante la cual se adoptó el carácter de Sociedad Financiera de Objeto Múltiple, Entidad Regulada, o SOFOM E.R. reformando así sus Estatutos Sociales, de conformidad con lo dispuesto por los Artículos 87-B y 87-D Fracción V de la LGOAAC.

A ra zón de lo anterior, la empresa ha dado cumplimiento a cada uno de los requisitos establecidos en el artículo 87- B de la LGOAAC, de entre los que se destacan: I.

Contemplar expresamente como objeto social principal la realización habitual y profesional de una o más de las actividades de otorgamiento de crédito, arrendamiento financiero o factoraje financiero; y

II. Agregar a la denominación social la expresión "sociedad financiera de objeto múltiple" o su acrónimo "SOFOM", seguido de las palabras "entidad regulada" o su abreviatura "E.R." Así mismo, todas aquellas operaciones de crédito, arrendamiento financiero, arrendamiento puro, y factoraje financiero que llegue a celebrar la Empresa, así como en las demás actividades que los Estatutos y la ley expresamente la faculte se señalará expresamente que no se requiere autorización de la Secretaría de Hacienda y Crédito Público para operar. Situación Tributaria De conformidad con lo establecido por la Ley del Impuesto al Valor Agregado y sujeto al cumplimiento de ciertos requisitos, los intereses recibidos o pagados por una sociedad financiera de objeto múltiple están exentos del impuesto al valor agregado. Igualmente, respecto de lo establecido por la Ley del Impuesto Sobre la Renta, los intereses pagados por una sociedad financiera de objeto múltiple a un residente en el extranjero para efectos fiscales están sujetos a una tasa de retención del 4.9% y ciertas reglas de capitalización delgada no les resultan aplicables a dicho tipo de sociedades financieras. No recibimos beneficios de subsidio fiscal alguno, ni nos encontramos sujetos al pago de impuestos especiales. Actualmente, no estamos sujetos a auditorías o procedimientos por parte de las autoridades fiscales y no contamos con pérdidas fiscales pendientes de amortizar. 2.6. Recursos Humanos Tenemos celebrado un contrato de prestación de servicios especializados con Servicios GMAC, S.A. de C.V. (una sociedad afiliada a GMF México), por medio del cual nos provee de servicios administrativos. Al 31 de diciembre de 2016, Servicios GMAC, S.A. de C.V. contaba con 364 empleados, de los cuales, aproximadamente el 10% está contratado bajo un esquema de empleo temporal. Al 31 de diciembre de 2016, ningún empleado de Servicios GMAC, S.A. de C.V. se encuentra sindicalizado. 2.7. Desempeño Ambiental Por la naturale za de nuestras operaciones, no estamos obligados a cumplir con regulación de carácter ambiental. Consideramos que las actividades primordiales para el desarrollo y correcto funcionamiento de nuestro negocio, no representan un riesgo ambiental considerable. 2.8. Información del Mercado El mercado nacional de financiamiento automotriz está integrado principalmente por las subsidiarias financieras de las casas automotrices como Ford Credit de México, NR Finance México, Daimler Chrysler Financial Services, VW Financial Services, Toyota Financial Services, BMW Financial Services de México y algunas instituciones bancarias como Bancomer,

Scotiabank Inverlat, HSBC, Banorte y Bana mex. En el área de crédito comercial hemos celebrado contratos de crédito con todos los Distribuidores de la red General Motors a diciembre de 2016. Para ventas al menudeo la participación de mercado se encuentra distribuida entre empresas financieras filiales de las empresas armadoras, bancos, y de otros organismos que ofrecen alternativas de adquisición de vehículos mediante el sistema de subastas. Entre las ventajas competitivas de GMF México destacan: ·

Se ofrece una gama de planes y de programas de financiamiento que buscan cubrir diferentes nichos de mercado.

·

El contar con tasas y esquemas de pago competitivos.

·

Se ofrecen planes para personas físicas que no puedan comprobar ingresos de la manera tradicional.

·

Más de 80 años de experiencia en crédito automotriz.

·

Tecnología de punta y vanguardia en sus sistemas de información.

·

Capacitación y asesoría continúa a los Distribuidores.

·

La relación entre GMF México y sus clientes es ganar-ganar: Los Distribuidores aumentan sus ventas gracias a los atractivos planes de financiamiento y tienen acceso a recursos financieros para la comercialización de sus productos.

·

Profundo conocimiento del mercado de financiamiento de vehículos, lo cual posiciona a GMF México como una de las compañías líderes en su ramo.

·

Equipo gerencial con amplia experiencia en el negocio que se desarrolla en GMF México.

·

Estructura operativa moderna e integrada, lo cual le permite operar en forma ágil, rápida y segura.

·

Procesos sólidos que cubren adecuadamente las tareas de atención al cliente y cobranza.

·

Las estadísticas de cartera vencida y morosa, tanto del mercado comercial como de consumo presentan un nivel de desempeño adecuado, en comparación con el resto de la industria.

La información contenida en la presente sección ha sido obtenida de la Asociación Mexicana de la Industria Automotriz, A.C., JATO Dyna mics Limited, General Motors Company y datos de la misma Compañía. Al financiar primordialmente la venta de autos de la marca de General Motors, nuestro desempeño se encuentra ligado al comportamiento del mercado automotriz en México, de igual manera, el crecimiento de nuestras operaciones depende, en gran medida, del crecimiento de las ventas de General Motors en México. La tabla que se presenta a continuación muestra el desempe ño de las ventas de autos de la marca General Motors en México, en comparación con las ventas de los demás participantes del sector automotriz en México en los años 2016 y 2015.

2016 Ventas

Otros

Fuente: Jato Dynamics

2015

Variaciones

% Part.

Ventas

% Part.

Crecimiento % Part.

403,286

24.5

348,942

25.1

15.6

-0.6

308,624

18.8

256,150

18.5

20.5

0.3

247,368

15.0

218,616

15.8

13.2

-0.7

104,955

6.4

84,779

6.1

23.8

0.3

103,907

6.3

103,052

7.4

0.8

-1.1

101,640

6.2

89,594

6.5

13.4

-0.3

90,168

5.5

75,928

5.5

18.8

0.0

58,112

3.5

11,021

0.8

427.3

2.7

54,855

3.3

57,394

4.1

-4.4

-0.8

36,287

2.2

26,251

1.9

38.2

0.3

136,696

8.3

116,200

8.4

17.6

-0.1

1,645,898

100

1,387,927

100

18.6

Industria del Financiamiento Automotriz en México La gráfica que se presenta a continuación muestra la participación de GMF México en la industria del financiamiento automotriz durante el año de 2016. Participación en el mercado de financiamiento

CF Credit 5%

Scotiabank 4%

Bano rte 4%

Otras Captivas 3% Otras Inst. Financ ieras 4%

Otros Bancos 4% F ord Credit 4% KIA 3%

GMF 17%

Toyota FS 6% BBVA Bancomer 11% NR Finance Mexico 22% VW Cred it 13%

Fuente: JATO Dynamics

El total de las ventas automotrices financiadas por nuestra empresa representan alrededor del 17% del mercado durante el 2016. La gráfica que se presenta a continuación muestra la participación de GMF México dentro de las ventas financiadas de General Motors en México durante el año de 2016 y 2015. Participación de GMF México vs Ventas Financiadas GM

2016 In Credit 0% Scotiabank 2% BBVA Bancomer 6% Banorte 4%

Autofin 0% Suauto 4% Otros 2%

2015 In Credit 3% Scotiabank 3% Otros 1% Autofin 5% BB VA Bancomer 8% Banorte 9%

GMF 81%

GMF 72%

La siguiente gráfica muestra el incremento de 95% en el volumen de menudeo contratado al cierre del 31 de diciembre de 2016 respecto del 31 de diciembre de 2015. Dicho incremento es atribuido a mayor volumen de ventas por parte de General Motors y mayor coordinación con General Motors y la red de Distribuidores.

Volumen Contratado – Consumo

95% $5,389

$5,680

$7,736

$9,368

$10,501

$224

$1 ,1000

$157 $ ,9000

$106 $ ,7000

$105

$84

$10,276 $9,211

$ ,5000

$7,631 $ ,3000

$5,596 $5,284

$ ,1000

4T '15

1T '16 Nuevo GM

2T '16

3T '16

Usado y No GM

4T '16

2.9. Estructura Corporativ a

2.10. Descripción de los Principales Activos Por la naturaleza de GMF México nuestro activo más importante es nuestra cartera de crédito. La cual está representada por créditos comerciales y de consumo en moneda nacional. El monto de la cartera de crédito al 31 de diciembre de 2016, asciende a $53,635 millones de pesos. Derivado de las operaciones de financiamiento de GMF México existen activos restringidos dentro del rubro de cartera de crédito por un monto que asciende a $29,486 millones de pesos al 31 de diciembre de 2016, cuyos detalles se encuentran en las notas de los Estados Financieros. La cartera vigente de GMF México al 31 de diciembre de 2016, 2015 y 2014, es la siguiente : Dis tribución de la cartera: Distribución de la cartera de crédito ( Cifras en miles de pesos) 31 de Dici embre 31 de Di ciembre 2016 2015

31 de Diciembre 2014

Cartera Vigente Comercial Consumo Total Vigente

19,463,307 33,634,660 53,097,967

15,270,559 20,120,336 35,390,895

11,445,604 14,667,052 26,112,656

Cartera Vencida Comercial Consumo Total Vencida

64,524 472,517 537,041

48,177 267,757 315,934

47,623 223,569 271,192

53,635,008

35,706,829

26,383,848

Total Cartera

Calificación de la Cartera:

Calificación de la Cartera de Crédito (Cifras en miles de pesos) 31 de Diciembre 31 de Diciembre 2016 2015

31 de Diciembre 2014

Calificación de Cartera Riesgo A Riesgo B Riesgo C Riesgo D Riesgo E

49,651,106 2,319,811 615,905 445,610 602,576

33,907,884 928,339 197,640 347,100 325,866

24,743,890 943,993 215,456 228,090 252,420

Total Cartera

53,635,008

35,706,829

26,383,848

Sin perjuicio de lo establecido en el párrafo anterior, hemos aportado, en calidad de fideicomitentes, cierto porcentaje de nuestra cartera a efecto de celebrar los siguientes contratos de fideicomiso: (i) Contrato de Fideicomiso Maestro Irrevocable número F/804, celebrado el 24 de septiembre de 2008 entre el Emisor, en su carácter de fideicomitente, Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario, en su carácter de fiduciario, y Monex Casa de Bolsa, S.A. de C.V., Monex Grupo Financiero, como representante común de los tenedores. En términos generales, en virtud de dicho fideicomiso se implementó un mecanismo para bursatilizar ciertas cuentas por cobrar aportadas al patrimonio de dicho Fideicomiso F/804 por el Emisor. (ii) Contrato de Fideicomiso Irrevocable número F/00251, celebrado el 14 de octubre de 2005 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y CIBanco, S.A., Institución de Banca Múltiple (antes The Bank of New York Mellon, S.A., Institución de Banca Múltiple), como fiduciario. En términos generales, en virtud del Fideicomiso F/00251 se estableció un mecanismo para (i) el financiamiento de ciertos créditos cedidos por el Emisor al patrimonio de dicho fideicomiso, y (ii) la emisión del pagaré pagadero a la orden del fideicomisario en primer lugar, solamente con los recursos del patrimonio del mismo. (iii) Contrato de Fideicomiso Irrevocable número F/242896, celebrado el 31 de agosto de 2007 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria, como fiduciario. Dicho fideicomiso fue modificado en virtud de un convenio de sustitución fiduciaria, de fecha 6 de febrero de 2013 en el cual HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria fue sustituido por Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario como fiduciario del mismo y dicho a fideicomiso le fue reasignado como número de identificación, el F/1380. En virtud de dicho fideicomiso se estableció un mecanismo para que el fideicomisario en primer lugar pudiera invertir en pagarés emitidos por el fiduciario mediante (i) la cesión y aportación de créditos cedidos por el Emisor al patrimonio de dicho fideicomiso, así como de todos los derechos y obligaciones previstos en los contratos de intercambio de tasas de interés, en su caso, por parte del fideicomitente al fiduciario de conformidad con ciertos contratos de cesión correspondientes, y (ii) el fondeo por parte del fideicomisario en primer lugar y la emisión por parte del fiduciario

del pagaré pagadero a la orden del fideicomisario en primer lugar, con recurso limitado únicamente al patrimonio del fideicomiso aquí descrito. (iv) Contrato de Fideicomiso Irrevocable número F/2965, celebrado el 31 de marzo de 2016 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y Banco Monex, S.A., Institución de Banca Múltiple, Monex Grupo Financiero, como fiduciario. En términos generales, en virtud del fideicomiso aquí descrito se imple mentó un mecanismo para proporcionar financiamiento al Emisor y que la misma adquiera ciertos créditos por parte del fideicomisario en primer lugar, en los términos establecidos en dicho fideicomiso. Manifestamos que los fideicomisos anteriormente enlistados no se encuentran consolidados a los activos totales de la Emisora. Salvo por la cartera aportada al patrimo nio de los fideicomisos descritos anteriormente, manifestamos que no existe cartera adicional que pueda calificar como restringida en el patrimonio de la Emisora. 2.11. Procesos Judiciales, Administrativos o Arbitrales Al 31 de diciembre de 2016, el Emisor no cuenta con litigios cuyo beneficio o contingencia, en lo individual, alcance una suma igual o superior al 10% de nuestros activos. Consideramos poco probable que en el futuro existan procesos judiciales, administrativos o arbitrales, distintos de aquellos que for man parte del curso ordinario de nuestro negocio. Sin embargo, dicha situación podría manifestarse. 2.12. Acciones representativas del capital Contamos con un capital social mínimo fijo, sin derecho a retiro, de $50,000,000.00, representado por 1,000 acciones ordinarias, nominativas, sin expresión de valor nominal, clase I, totalmente suscritas y pagadas. La parte variable de nuestro capital social es ilimitada y, en su caso, estará representada por acciones nominativas, sin expresión de valor nominal, clase II, cuyas características serán determinadas en su oportunidad por la asamblea general de accionistas que apruebe su emisión. A la fecha del presente Reporte Anual, no hemos emitido acciones representativas de la parte variable de nuestro capital social. Nuestro capital social no ha sufrido aumentos o disminuciones en los últimos tres ejercicios sociales. La última modificación al capital social tuvo lugar mediante resoluciones adoptadas por los accionistas fuera de asamblea, el 22 de diciembre de 2008, donde se aprobó aumentar la parte mínima fija del capital social en $8,000,000.00 . 2.13. Dividendos El 23 de junio de 2015 la asamblea general ordinaria de accionistas aprobó el pago de un dividendo a favor de nuestros accionistas por $600 millones de pesos con cargo a la cuenta de utilidades pendientes de distribuir, que incluye, entre otros, los resultados que arrojaron nuestros estados financieros al 31 de diciembre de 2014, los cuales fueron aprobados en la asamblea general anual ordinaria de accionistas del 17 de abril de 2015. El dividendo se pagó a razón de $600,000.00 por cada acción representativa de nuestro capital social. Dicho pago no disminuyó nuestro capital social, ni la reserva legal que debe mos mantener en términos de nuestros estatutos sociales y la legislación aplicable.

El 23 de mayo de 2014 la asamblea general ordinaria de accionistas aprobó el pago de un dividendo a favor de nuestros accionistas por $1,000 millones de pesos con cargo a la cuenta de utilidades pendientes de distribuir, que incluye, entre otros, los resultados que arrojaron nuestros estados financieros al 31 de diciembre de 2013, aprobados en asamblea general anual ordinaria de accionistas del 25 de abril de 2014. El dividendo se pagó a razón de $1,000,000.00 pesos por cada acción representativa de nuestro capital social. El 19 de diciembre de 2012 la asamblea general ordinaria de accionistas aprobó el pa go de un dividendo a favor de nuestros accionistas por $2,500 millones de pesos con cargo a la cuenta de utilidades pendientes de distribuir, que incluye, entre otros, los resultados que arrojaron nuestros estados financieros al 31 de diciembre de 2011, aprobados en asamblea general anual ordinaria de accionistas del 30 de abril de 2012. El dividendo se pagó a razón de $2,500,000.00 pesos por cada acción representativa de nuestro capital. La asamblea de accionistas no ha definido una política relativa al pago de dividendos, sin embargo, los accionistas pueden resolver el pago de dividendos mediante la celebración de una asamblea de accionistas.

III. INFORMACIÓN FINANCIERA 1.

Información Financiera Seleccionada

GM FINANCIAL DE MÉXICO, S .A. DE C.V. SOFOM ER Balance General (Montos en pesos) 31 de Diciembre de 2014

2015

2016

Activo Disponibilidades

1,178,666,805

1,488,176,556

Inversiones en Valores Deudores por reporto

0 1,504,079,638

0 0 1,541,614,669 2, 405,629,552

1,908,163,853

Derivados con fines de negociación Cartera de Crédito Vigente

7,475,804 9,839,172 331,896,558 26,112,655,937 35,390,894,945 53,097,967,596

Cartera de Crédito Vencida Tot al Cartera de Crédito

271,191,761 315,934,320 537,040,657 26,383,847,698 35,706,829,265 53,635,008,253

Esimación Preventiva para Riesgos Crediticios Cartera de Crédito (Neto)

(509,776,510) (714,125,945) (1, 174,130,256) 25,874,071,188 34,992,703,320 52,460,877,997

Otras Cuent as por Cobrar Bienes adjudicados Inmuebles, Mobiliario y Equipo (Neto) Inversiones Permanentes Impuestos y PTU diferidos Otros A ctivos Total Activo

87,974,066 0 55,535,080

284,256,262 99,642 147,039,121

464,030,686 57,000 1,282,682,736

0

0

0

245,873,212 371,398,759 867,165,998 637,435,450 759,838,205 1,296,497,565 29,591,111,243 39,594,965,706 61,017,001,945

Pa sivo Pasivos Bursátiles Prést amos Bancarios y Otros Organismos Derivados con fines de negociación Otras Cuent as por Pagar Créditos Diferidos y Cobros ant icipados Total Pasivo

1,102,495,167 1,403,429,319 1,186,142,500 16,710,087,091 24,626,858,328 38,742,882,032 24,937,866 4,345,697,341

4,469,539 0 5,659,305,846 10,215,827,542

642,483,120 981,990,957 2,890,064,696 22,825,700,585 32,676,053,989 53,034,916,770

Ca pital Contabl e Capital Contribuido Capital Social Capital Ganado

85,986,339

85,986,339

85,986,339

Reservas de Capital Resultados de ejercicios anteriores

25,915,938 5,925,011,252

25,915,938 6,053,679,207

25,915,938 6,807,311,281

Insuficie ncia en la Actualización Resultado neto Total Capita l Contable

728,497,129 6,765,410,658

753,330, 233 1,062,871,617 6,918,911,717 7,982,085,175

Total Pasivo y Capital Conta ble

29,591,111,243 39,594,965,706 61,017,001,945

GM FINANCIAL DE MÉXICO, S.A . DE C.V . SOFOM ER Estado de Resultados (Montos en pesos)

2014

31 de Diciembre de 2015

2016

Ingresos y Gastos Financie ros Ingresos por Intereses Gastos por Intereses Resultado por posición monetar ia neto (marg en financi ero)

2,669,384,121 3,374,638,657 4,913,256,7 63 818,706,817 1,025,669,757 1,925,48 9,286 0 0 0

Ma rge n Financiero

1,850,677,304 2,348,968,900 2,987,767,4 77

Esimación Preventiva para Riesgos Credi ticios Ma rge n Financiero Ajusta do por Riesgos Créditicios

Comisiones y tarifas cobradas Comisiones y tarifas pagadas Resultado por In termediación Resultado por a rrendamiento operativo Otros ingresos (egresos) de la ope ración Gastos de Administración

Re sulta do de l a Ope rac ión Participación en el resultado de subsidiar ias no consolidadas y asocia das

326,465,717

481,891,1 55

851 ,005,008

1,524,211,587 1,867,077,745 2,136,762,4 69

418,470,028 414,487,823 1,817,527 1,320,809 98,734,200 723,652,442 (617,797,701)

425,780,5 86 521 ,318,639 548,660,7 41 761 ,992,214 757,5 31 322 ,155,981 10,043,747 75 ,507,740 90,006,694 124 ,438,909 818,119,8 97 1,027,185,579 (840,192,080) (745,75 6,524)

906,413,886 1,026,885,665 1,391,00 5,945 0

0

0

Re sultado a nte s de Impuesto a la Utilida d

906,413,886 1,026,885,665 1,391,00 5,945

Impuestos a la utili dad causados Impuestos a la utili dad diferidos (ne tos)

170,997,809 6,919,948 177,917,757

Re sultado a ntes de ope racione s discontinua da s

728,496,129

Operaciones discontinuadas Re sulta do Neto

0 728,496,129

399,080,9 79 (125,525,547) 273,555,4 32

823 ,901,566 (495,767,2 38) 328 ,134,328

753,330,2 33 1,062,871,617 0

0

753,330,2 33 1,062,871,617

2.

Información Financiera por Línea de Negocio y Zona Geográfica

No contamos con información financiera específica por línea de negocio o zona geográfica, ni contamos con ventas de exportación. Sin perjuicio de lo anterior, a efecto de ilustrar la diversificación geográfica y por línea de negocio y de nuestra empresa, a continuación se presentan tablas que muestran, la distribución de nuestra cartera crediticia vigente, organizada por producto y por estado dentro de México, por los periodos terminados el 31 de diciembre de 2016, 2015 y 2014.

% Cartera Total por Estado

DISTRITO FEDERAL

31 de Diciembre 2016 14.4%

31 de Diciembre 2015 17.6%

31 de Diciembre 2014 16.3%

ESTADO DE MEXICO

12.9%

12.6%

13.2%

NUEVO LEON

7.7%

7.3%

6.9%

JALISCO

5.9%

5.5%

5.5%

VERACRUZ

5.1%

5.1%

5.2%

COAHUILA

4.8%

4.7%

4.8%

GUANA JUATO

4.7%

4.7%

4.8%

PUEBLA

4.3%

4.1%

4.5%

CHIHUAHUA

3.7%

3.6%

3.7%

TAMAULIPAS

3.5%

3.6%

3.5%

SINA LOA

3.4%

2.6%

2.6%

QUERE TARO

2.8%

2.8%

2.9%

SONORA YUCATAN

2.6% 2.2%

2.5% 2.4%

2.3% 2.7%

BAJA CALIFORNIA

2.5%

2.0%

1.7%

CHIA PAS

2.0%

2.1%

2.0%

MICHOACAN

2.0%

1.8%

1.9%

SAN LUIS POTOSI

1.9%

1.9%

1.7%

TABASCO

1.7%

2.1%

2.5%

QUINTANA ROO

1.7%

1.2%

1.4%

CAMPECHE DURANGO

1.0% 1.0%

1.3% 1.1%

1.4% 1.0%

HIDA LGO

1.1%

1.1%

1.1%

MORELOS

1.0%

1.1%

1.1%

GUERRERO

1.0%

1.0%

0.9%

OAXACA

1.0%

0.9%

1.0%

AGUAS CALIENTES

1.0%

0.8%

0.7%

BAJA CALIFORNIA SUR

0.8%

0.7%

0.7%

TLAXCALA

0.7%

0.6%

0.6%

ZACATECAS

0.6%

0.6%

0.5%

COLIMA

0.5%

0.4%

0.4%

NAYARIT

0.4%

0.4%

0.4%

Total

100%

100%

100%

Estado

Ingreso acumulado por linea de negocio (Cifras en miles de pesos) 31 de 31 de Diciembre Diciembre 2016 2015 Ingreso por intereses Ingreso 4,913,257 3,374,639 Gasto (1,925,489) (1,025,670) Margen Financiero 2,987,768 2,348,969 Ingreso por arrendamiento operativo Ingreso 226,647 Depreciación (151,139) Margen Financiero 75,508 Total Margen Financiero

3.

3,063,276

31 de Diciembre 2014 2,669,384 (818,707) 1,850,677

30,107 (20,063) 10,044

3,640 (2,319) 1,321

2,359,013

1,851,998

Informe de Créditos Relevantes

Financiamos nuestras operaciones, principalmente, a través de líneas de crédito quirografarias contratadas con bancos, nacionales y extranjeros, así como mediante emisiones de certificados bursátiles de deuda de corto plazo y bursatilizaciones de activos de financiamiento comercial y créditos intercompañías.

Distribución de la Deuda al 31 de diciembre de 2016 y 2015

Diciembre 2016

Diciembre 2015

33% 52%

45%

62% 5% 3%

Prestamos bancarios

Fuente: GMF México

Papel comercial

Deuda con garantía

Millon es

A continuación se presenta un gráfico con la clasificación de la deuda y el porcentaje de utilización por tipo al 31 de diciembre de 2016:

$60

$50

70%

$40

$30

$20

99%

96% $10

17% $Bursátil

Bancaria

Deuda

Deuda con Garantía

Total

Total de la línea

Fuente: GMF México

Al 31 de diciembre de 2016, contábamos con líneas de crédito bancarias no comprometidas aprobadas por un monto total de $18,600 millones de pesos. Al 31 de diciembre de 2016, habíamos utilizado un 95.7% del total de las líneas de crédito bancarias otorgadas en nuestro favor, representando a dicha fecha un saldo total insoluto de $17,795 millo nes de pesos. Al 31 de diciembre de 2016, la Compañía cuenta con una línea de crédito intercompañías hasta por un mo nto total de $10 mil millones de pesos, de los cuales han sido dispuestos $3,631 millones de pesos. Nuestros créditos bancarios devengan intereses a tasas fijas y variables, según sea el caso. Tratándose de las tasas variables, generalmente toman como base la Tasa de Interés Interbancaria de Equilibrio. A la fecha del presente Reporte Anual estamos al corriente en la totalidad de los pagos de principal e intereses y obligaciones contratadas al amparo de los créditos mencionados con anterioridad y aquellos otros créditos o pasivos que se muestran en nuestro balance general. A continuación se presenta una tabla con la clasificación de la deuda y el porcentaje de utilización por tipo:

Informe de Créditos Rel evantes al 31 de dicie mbre de 2016

Préstamos con colateral, garantizado con activos crediticios Préstamos con instituciones de banca de desarrollo

a l 31 de di ciem bre de 2015 (cifras en m il es de pe sos)

al 31 de dicie mbre de 2014

20, 883,963

52%

16,053,436

62%

12, 370,867

69%

2,508,283

6%

2, 505, 767

10%

2,505,719

14%

15, 350,636 1,186,143

38% 3%

6, 067, 656 1, 403,429

23% 5%

1,833,501 1,102,495

10% 6%

Total de Créditos Revol ventes 39,929,025

100%

26,030,287

100%

17, 812,582

100%

Préstamos Bancarios Pasivos Bursátiles

Distr ibución de Créditos Re levantes por pl azo al 31 de dicie mbre de 2016

a l 30 de di ciem bre de 2015

al 31 de dicie mbre de 2014

(cifras en m il es de pe sos) 25, 080,247 14, 848,778

63% 37%

16,391,682 9, 638, 605

63% 37%

10, 142,849 7,669,733

57% 43%

Total de Créditos Revol ventes 39,929,025

100%

26,030,287

100%

17, 812,582

100%

Deuda de Corto Plazo Deuda a Largo Plazo

Los créditos que a la fecha hemos contratado, incluyen ciertas obligaciones de hacer y no hacer. A la fecha del presente Reporte Anual, nos encontramos al corriente de las mismas, incluyendo las obligaciones de pago de capital e intereses adeudados, conforme a dichos créditos. Sin embargo, cualquier incumplimiento, por nuestra parte, de las obligaciones antes mencionadas, podría derivar en la actualización de las causas de vencimiento anticipado establecidas en los contratos que documentan los créditos que hemos contratado. A continuación, presentamos un resumen de las principales obligaciones de hacer y no hacer contenidas en los créditos vigentes que he mos contratado, y que documentan nuestra deuda bancaria al 31 de diciembre de 2016. Deuda Bancaria Obligaciones de Hacer: ·

Cumplir con todos los requerimientos de presentación o divulgación de información a que estemos obligados, en términos de la Ley del Mercado de Valores, las Disposiciones y las demás leyes aplicables.

·

Subsanar, en un término de 15 Días Hábiles cualquier error o inexactitud de la información financiera y de cualquier otra naturaleza que le sea requerida por la CNBV y/o la BMV.

·

Entregar copia de la información financiera auditada a los acreditantes respectivos dentro de los 6 meses posteriores al cierre del ejercicio fiscal.

·

Mantener la Compañía debidamente organiza da y constituida bajo las leyes mexicanas.

·

Mantenernos al corriente en las fechas correspondientes todos los vencimientos relacionados al pago de capital e intereses.

Obligaciones de No Hacer: ·

No cambiar de giro preponderante de nuestro negocio.

·

No efectuar operaciones fuera del curso normal de nuestro negocio.

·

No llevar a cabo cambios en la estructura accionaria que deriven en una pérdida de control o comprometan la existencia de nuestra Compañía.

Certificados Bursátiles de Corto Plazo Además de las obligaciones de hacer y no hacer descritas en la sección anterior, en relación con el financiamiento que a la fecha hemos contratado a través de créditos bancarios, a continuación se describen las obligaciones a nuestro cargo respecto de nuestras emisiones de certificados bursátiles de corto plazo: Obligaciones de Hacer ·

(a) Utilizar los recursos derivados de emisiones de corto plazo para los fines estipulados en los títulos correspondientes; (b) mantener la inscripción de dichos certificados bursátiles de corto plazo en el RNV y en el listado de valores de la BMV; y (c) entregar al representante común de los tenedores de dichos certificados bursátiles de corto plazo, cualquier información que le solicite referente o relacionada con la emisión, incluyendo información financiera de nuestra empresa.

·

Proporcionar a los intermediarios colocadores involucrados en dichas emisiones, cualquier información que soliciten respecto de dichos certificados bursátiles de corto plazo.

Obligaciones de No Hacer ·

No efectuar operaciones fuera del curso normal de nuestro negocio.

Causas de Vencimiento Anticipado de los Certificados Bursátiles de Corto Plazo Los certificados bursátiles de corto plazo, se podrán dar por vencidos anticipadamente para ser amortizados a su valor nominal en los siguientes casos: (i) si nuestra empresa fuere declarada en quiebra, insolvencia, concurso mercantil o procedimiento similar o si admitiere por escrito su incapacidad para pagar sus deudas a su vencimiento; o (ii) si la inscripción de los certificados bursátiles de corto plazo en el RNV que ma ntiene la CNBV fuere cancelada. 4. Comentarios y Análisis de la Administración Sobre los Resultados de Operación y Situación Financiera del Emisor El siguiente análisis debe leerse en conjunto con los Estados Financieros y las notas a los mismos que se incluyen en este Reporte Anual. A menos que se indique lo contrario, toda la información financiera incluida en este Reporte Anual está expresada en pesos. La información financiera incluida en este Reporte Anual está preparada de conformidad con los lineamientos establecidos en las “Disposiciones de Carácter General Aplicables a los Almacenes Generales de Depósito, Casas de Cambio, Uniones de Crédito y Sociedades Financieras de Objeto Múltiple Reguladas” emitidas el 19 de enero de 2009 y de acuerdo con el criterio contable A-1 de la CNBV. Este Reporte Anual contiene declaraciones con respecto al futuro que reflejan los planes, estimaciones y opiniones del Emisor y conllevan riesgos, incertidumbres y presunciones. Los

resultados reales pueden llegar a diferir sustancialmente de los descritos en las declaraciones con respecto al futuro. Los factores que pueden ocasionar dichas diferencias o contribuir a las mismas incluyen, de manera enunciativa pero no limitativa, los descritos a continuación y en otras secciones de este Reporte Anual, incluyendo especialmente la sección “I. Información General – 3. Factores de Riesgo”. Además del resto de la información contenida en este Reporte Anual, los inversionistas deben evaluar cuidadosamente el siguiente análisis y la información incluida en la sección “I. Información General – 3. Factores de Riesgo” antes de invertir en los Certificados Bursátiles. 4.1. Resultados de Operación Periodo finalizado el 31 de diciembre de 2016, comparado con el periodo finalizado el 31 de diciembre 2015. Ingresos por intereses Los rendimientos generados por financiamientos otorgados a mayoreo y menudeo, se describen y analizan a continuación: Conceptos Ingresos por intereses c omercial Ingresos por intereses al consumo Otros in gresos por intereses Ingresos por interese s

Periodos 31-dic-15 31-dic-16 $787 $2,361 $227 $3,375

$943 $3,648 $322 $4,913

Variaciones Dec 15 / Dec 16 $156 $1,287 $95 $1,538

19.82% 54.51% 41.85% 45.57%

El aumento del 45.57% en 2016 en relación al ejercicio 2015 se debe principalmente a que los ingresos por intereses al consumo tuvieron un aumento del 54.51% en gran medida por el incremento de volumen de unidades promedio durante el 2016. Gastos por intereses Los gastos por intereses por préstamos de bancos y de otros organismos, se comparan y analiza n a continuación: Conceptos

Periodos 31-dic-15 31-dic-16

Variaciones Dec 15 / Dec 16

Gastos por intereses

$1,026

$1,925

$899

87.62%

Gastos por intereses

$1,026

$1,925

$899

87.62%

Los gastos por intereses mostraron un incremento neto del 87.62% en 2016 con respecto al ejercicio del 2015. Esto se debe principalmente al incremento del balance de la deuda con respecto al mismo periodo de 2015 para soportar el crecimiento de activos, principalmente de crédito al consumo. Resultado por posición monetaria El resultado por posición monetaria representa el efecto de la inflación, medido en términos de la UDI, sobre el neto de activos y pasivos monetarios al inicio de cada mes. La pérdida se genera por tener más activos que pasivos. A partir de 2008 la NIF B-10 de los efectos de la inflación en la información financiera, establece que ante el cambio de un entorno económico inflacionario a uno no inflacionario, no deben reconocerse los efectos de la inflación del periodo.

Margen Financiero El margen financiero en términos nominales presenta una incremento neto del 27.20%, derivado principalmente de un incremento de los ingresos por intereses de $1,538 millones de pesos combinado con un incremento en los gastos por intereses de $899 millones de pesos. Conceptos Ingresos por Intereses Gastos por Intereses Margen Financiero

Periodos 31-dic-15 31-dic-16 $3,375 $4,913 $1,026 $1,925 $2,349 $2,988

Variaciones Dec 15 / Dec 16 $1,538 45.57% $899 87.62% $639 27.20%

Estimación Preventiva para Riesgos Crediticios La estimación preventiva se compara a continuación: Conceptos

Periodos 31-dic-15 31-dic-16

Variación Dec 15 / Dec 16

Reserva para Ries gos Crediticios

$482

$851

$369

76.56%

Reserva para Riesgos Crediticios

$482

$851

$369

76.56%

La estimación preventiva para riesgos crediticios presenta un incremento neto del 76.56% de los cuales $350 millones de pesos corresponden a un incremento en reserva de la cartera de consumo con respecto al año anterior, un decremento en la reserva de cartera comercial de $94 millones de pesos con respecto al año anterior y un incremento en castigos de cartera de consumo en $113 millones de pesos con respecto al año anterior. A continuación se muestran los resultados de la calificación de la cartera crediticia al cierre de diciembre 2016:

CALIFICACIÓN DE LA CARTERA CREDITICIA AL 31 DE DICIEMBRE DE 2016 IMPORTE CARTERA CREDITICA EXCEPTUAD A CALIFICADA

$

RESERVAS PREVENTIVAS NECES ARIAS CARTERA CO MERCIAL

CARTERA DE CONSUMO

C ARTERA HIPOTECARIA DE VIVIENDA

$

$

$

TOTAL RES ERVAS PREVENTIVAS

-

Riesgo A

49,651

Riesgo B

2,321

26

51

0

77

Riesgo C

616

5

47

0

52

Riesgo D

446

49

72

0

121

Riesgo E

603

-

388

0

388

TOTAL

$

53,637

$

123

203

$

413

971

-

$

-

$

536

$

1,174

$

1,174

$

-

M enos: RES ERVAS CONSTITUIDAS EXCES O

Comisiones y tarifas Las comisiones y tarifas se describen y comparan a continuación: Conceptos Comisiones y Tarifas cobradas Comisiones y Tarifas Pagadas Comisiones y tarifas netas

Periodos 31-dic-15 31-dic-16 $426 $549 ($123)

$521 $762 ($241)

Variaciones Dec 15 / Dec 16 $95 $213 ($118)

22.30% 38.80% 95.93%

Las comisiones cobradas presentan incremento de 22.30% en el ejercicio de 2016 con respecto al 2015. En tanto las comisiones pagadas tuvieron un incremento al cuarto trimestre de 2016 de $213 millones de pesos respecto al 2015 lo cual representa un 38.80%, esto debido al incremento en la cartera de consumo. Gastos de Administración La integración y análisis de los gastos de administración se muestran a continuación: Conceptos Remuneraciones Honorarios Rentas Gastos de Promoción Impuestos y derechos diversos Otros gastos Depreciación Gastos de administración

Periodos 31-dic-15 31-dic-16 $250 $249 $14 $16 $12 $262 $15 $818

$279 $388 $15 $19 $33 $279 $14 $1,027

Variación Dec 15 / Dec 16 $29 $139 $1 $3 $21 $17 ($1) $209

11.60% 55.82% 7.14% 18.75% 100.00% 6.49% -6.67% 25.55%

Los gastos de administración reflejan un incremento de 25.55% en el año 2016 en relación con el año 2015, este aumento es atribuido principalmente a mayor cargo corporativo e incremento en remuneraciones. Impuestos Causados y Diferidos La comparación y análisis de los impuestos causados se muestran en la siguiente tabla: Conceptos Impuesto Causado Impuesto Diferido Impuestos

Periodos 31-dic-15 31-dic-16 $399 ($126) $273

$824 ($496) $328

Variación Dec 15 / Dec 16 $425 ($370) $55

106.52% 293.65% 20.15%

El impuesto a la utilidad causado se determina mediante la aplicación de la legislación fiscal vigente sobre los ingresos gravables y deducciones autorizadas del ejercicio. El impuesto anual determinado se presenta como un pasivo a corto plazo neto de los anticipos efectuados durante el año, o como un activo en el caso de que los anticipos sean superiores al impuesto anual determinado. El impuesto a la utilidad diferido se determina aplicando el método de activos y pasivos. Bajo este método, a todas las diferencias que surgen entre los valores contables y fiscales de los activos y pasivos, se les aplica la tasa del impuesto sobre la renta (ISR), vigente a la fecha de los estados financieros, o bien, aquellas tasas aprobadas a esa fecha y que estarán vigentes al momento en que se estima que los activos y pasivos por impuesto a la utilidad diferido se recuperarán o se liquidarán. La Compañía evalúa periódicamente la recuperabilidad de los activos por impuesto diferido, creando en su caso, una estimación sobre aquellos montos en los que no existe una alta probabilidad de recuperación. El impuesto causado y diferido es reconocido como un gasto en los resultados del ejercicio, excepto cuando haya surgido de una transacción o suceso que se reconoce fuera del resultado del ejercicio como otro resultado integral o una partida reconocida directamente en el capital contable. 4.2 Situación Financiera, Liquidez y Recursos de Capital (Cifras en millones de pesos) Los principales requerimientos de liquidez y recursos de capital de GM Financial de México son para el otorgamiento de créditos para la adquisición de vehículos y otros productos a la red de Concesionarios de GMM y a otros distribuidores de otras armadoras que tengan firmado un contrato de Plan Piso con GM Financial de México, así como a cualquier persona física o moral que desee adquirir un automóvil nuevo o usado. Las fuentes de liquide z de GM Financial de México, además de las inherentes al negocio, están conformadas por líneas de crédito revolventes con bancos con presencia en el territorio nacional, tanto mexicanos como extranjeros, a corto y largo pla zo, Certificados Bursátiles de Corto Plazo, Certificados Bursátiles estructurados bajo un fideicomiso, así como la monetización de una parte de la cartera de crédito: a.

De corto plazo

Préstamos quirografarios con instituciones de banca múltiple, algunos de los cuales, pueden estar garantizados total e incondicionalmente por la Tenedora, los cuales devengan intereses a tasas de mercado

$15,295

basadas en la Tasa de Interés Interbancaria de Equilibrio (TIIE) a 28 o 91 días. Emisiones de Certificados Bursátiles de Corto Plazo Intereses devengados por pagar

1,180 165 16,640

Más porción circulante del pasivo a largo pla zo

8,440 $25,080

b.

De largo plazo

Préstamos no garantizados con instituciones de banca de desarrollo, los cuales devengan intereses a una tasa basada en la Tasa de Interés Interbancaria de Equilibrio (TIIE) a 28 días más 185 puntos base. Al cierre del periodo, las tasas de interés promedio devengada fue del 7.45%.

2,500

Préstamo con colateral, garantizado con activos crediticios, el cual devenga intereses a una tasa basada en la TIIE a 28 días más un prome dio de 129 puntos base. Al cierre del periodo la tasa de interés prome dio que devengó este préstamo fue del 6.72%.

3,500

Préstamo con colateral, garantizado con activos crediticios, el cual devenga intereses a una tasa basada en la TIIE a 28 días más 95 puntos base. Al cierre del periodo, la tasa que devengó este préstamo fue del 6.49%

8,497

Préstamo garantizado con activos crediticios, el cual devenga intereses a una tasa basada en la TIIE a 28 días más 90 puntos base. Al cierre del periodo, la tasa que devengó este préstamo fue del 6.73%.

5,995

Préstamo garantizado con activos crediticios, el cual al cierre del periodo, la tasa que devengó fue del 6.42%

2,796

Pasivo a largo plazo Menos - Porción circulante

23,288 8,440 $14,848

El valor contable de los préstamos bancarios de corto plazo a cargo de la Compañía se aproxima a su valor razonable, y no se tienen intenciones de pagarlos anticipadamente. En relación a algunos préstamos de largo plazo con colateral, la Compañía puede estar obligada a mantener saldos de efectivo en garantía de estas operaciones. Dicho efectivo genera intereses a favor de

la Compa ñía a una tasa de interés de mercado. Al cierre del periodo, dicho efectivo restringido generó ingresos por $51 millo nes de pesos los cuales se incluyen en el rubro Otros ingresos de la operación. c.

Los vencimientos de la porción a largo plazo de este pasivo al 31 de diciembre de 2016, son: 2018 2019 2020 2021 2022

5,880 7,174 1,695 94 5 $14,848

Se han contratado instrumentos financieros derivados para cubrir los riesgos de tasa de interés de algunos de estos préstamos. Al cierre del periodo la Compañía mantiene una capacidad disponible, aun no dispuesta, tanto en sus líneas de crédito revolvente como para monetización de cartera, por un monto de $1,016. Al cierre del periodo, hemos aportado, en calidad de fideicomitentes, cierto porcentaje de nuestra cartera a efecto de celebrar los siguientes contratos de fideicomiso: (i) Contrato de Fideicomiso Maestro Irrevocable número F/804, celebrado el 24 de septiembre de 2008 entre el Emisor, en su carácter de fideicomitente, Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario, en su carácter de fiduciario, y Monex Casa de Bolsa, S.A. de C.V., Monex Grupo Financiero, como representante común de los tenedores. En términos generales, en virtud de dicho fideicomiso se imple mentó un mecanismo para bursatilizar ciertas cuentas por cobrar aportadas al patrimonio de dicho Fideicomiso F/804 por el Emisor. (ii) Contrato de Fideicomiso Irrevocable número F/00251, celebrado el 14 de octubre de 2005 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y CIBanco, S.A., Institución de Banca Múltiple (antes The Bank of New York Mellon, S.A., Institución de Banca Múltiple), como fiduciario. En términos generales, en virtud del Fideicomiso F/00251 se estableció un mecanismo para (i) el financiamiento de ciertos créditos cedidos por el Emisor al patrimonio de dicho fideicomiso, y (ii) la emisión del pagaré pagadero a la orden del fideicomisario en primer lugar, solamente con los recursos del patrimonio del mismo. (iii) Contrato de Fideicomiso Irrevocable número F/242896, celebrado el 31 de agosto de 2007 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria, como fiduciario. Dicho fideicomiso fue modificado en virtud de un convenio de sustitución fiduciaria, de fecha 6 de febrero de 2013 en el cual HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria fue sustituido por Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario como fiduciario del mismo y dicho a fideicomiso le fue reasignado como número de identificación, el F/1380. En virtud de dicho fideicomiso se estableció un mecanismo para que el fideicomisario en primer lugar pudiera invertir en pagarés emitidos por el fiduciario mediante (i) la cesión y aportación de créditos cedidos por el Emisor al patrimonio de dicho fideicomiso, así como de todos los derechos y obligaciones previstos en los contratos de intercambio de tasas de interés, en su caso, por parte del fideicomitente al fiduciario de conformidad con ciertos contratos de cesión correspondientes, y (ii) el

fondeo por parte del fideicomisario en primer lugar y la emisión por parte del fiduciario del pagaré pagadero a la orden del fideicomisario en primer lugar, con recurso limitado únicamente al patrimonio del fideicomiso aquí descrito. (iv) Contrato de Fideicomiso Irrevocable número F/2965, celebrado el 31 de marzo de 2016 entre el Emisor, en su carácter de fideicomitente y fideicomisario en segundo lugar, y Banco Monex, S.A., Institución de Banca Múltiple, Monex Grupo Financiero, como fiduciario. En términos generales, en virtud del fideicomiso aquí descrito se imple mentó un mecanismo para proporcionar financiamiento al Emisor y que la misma adquiera ciertos créditos por parte del fideicomisario en primer lugar, en los términos establecidos en dicho fideicomiso. Manifestamos que para los fideicomisos anteriormente enlistados no es aplicable la consolidación a los activos totales de la Emisora en virtud de que los mismos se mantuvieron dentro de los Estados Financieros de la compañía.

4.3.

Control Interno

A nivel mundial, las políticas del Garante GMF y los controles internos de cada departamento están diseñados para asegurar el cumplimiento de las regulaciones aplicables en cada país en donde opera. GMF México cuenta con un departamento de control interno, el cual tiene a su cargo vigilar, a través de pruebas aleatorias, el buen funcionamiento de nuestros procesos operativos, y la elaboración de estados financieros, con el fin de obtener una certeza razonable en cua nto al ambiente de control que prevalece en la misma. Por otro lado, contamos con los procedimientos y manuales que describen la autoridad, responsabilidad, y métodos para supervisar y dar cumplimiento a las políticas y procedimientos, incluyendo la función de auditoría interna. Finalmente, nuestro departamento de auditoría interna realiza determina das pruebas a los controles designados para el cumplimiento por parte del Garante con la Ley Sarbanes Oxley cada año. .

5.

Estimaciones, Provisiones o Reservas Contables Críticas

Mantenemos una estimación para riesgos crediticios, la cual a juicio de nuestro equipo de administración, es suficiente para cubrir cualquier pérdida que pudiera surgir tanto de los préstamos incluidos en nuestra cartera de créditos, como de otros riesgos crediticios. A continuación se establece la metodología para determinar esta estimación. Reserva de cartera consumo – Las reservas de la cartera de consumo no revolvente, se determinan evaluando la proba bilidad de incumplimiento, la severidad de la pérdida y la exposición al incumplimiento, crédito por crédito, considerando los datos históricos de dicha cartera. Reserva de cartera comercial – La reserva de la cartera comercial se determina con base al artículo 110 de la Circular Única de Bancos. Hasta 2013, para calificar la cartera comercial y reconocer la reserva respectiva, se utilizaba la metodología establecida en las Disposiciones de carácter general aplicables a las instituciones de crédito, Capítulo V “Calificación de Cartera Crediticia”, Artículo 110, de la Sección Tercera, “De la Cartera Crediticia Comercial”, que consideraba la situación financiera, el entorno económico, la fuente e historial de pago, la calidad de la información y las garantías de nuestra empresa. Dicha calificación se realizaba individualmente excepto por los créditos a cargo de un mismo deudor cuyo saldo era menor a un importe equivalente a 4,000,000 de UDIS, los cuales eran evaluados de forma paramétrica atendiendo a los meses transcurridos a partir del primer incumplimiento y asignando porcentajes de reserva diferentes según se tratara de cartera reestructurada o no reestructurada. El 24 de junio de 2013, la CNBV emitió modificaciones a las disposiciones en materia de calificación de cartera crediticia comercial aplicables al ejercicio 2014, adicionando los anexos 21 y 22 al artículo 110 de la Circular Única de Bancos, los cuales señalan que para la determinación de la calificación de cartera, se debe de considerar la probabilidad de incumplimiento, severidad de la pérdida y exposición al incumplimiento, considerando lo señalado más adelante en esta sección. Las reservas de la cartera comercial se determinan mediante la evaluación del puntaje crediticio total para créditos a cargo de personas morales y personas físicas con actividad empresarial, haciendo la separación de aquellos con ingresos netos o ventas netas anuales menores al equivalente en moneda nacional a 14 millones de UDIs de conformidad con los anexos mencionados. Las cifras para la calificación y constitución de las reservas preventivas, son las correspondientes al día último del mes a que se refiere el balance general al 31 de diciembre de 2016. Para la calificación de la cartera crediticia, utilizamos la metodología establecida por la CNBV. El porcentaje requerido de estimación preventiva para la cartera, se determina en función del grado de riesgo asignado, como se muestra a continuación:

Grado de Riesgo Cartera de Consumo Cartera Comercial A-1 0 a 2.0 0 a 0.9 A-2 2.01 a 3.0 0.901 a 1.5 B-1 3.01 a 4.0 1.501 a 2.0 B-2 B-3 C-1

4.01 a 5.0 5.01 a 6.0 6.01 a 8.0

2.001 a 2.5 2.501 a 5.0 5.001 a 10.0

C-2 D E

8.01 a 15.0 15.01 a 35.0 35.01 a 100.00

10.001 a 15.5 15.501 a 45.0 > 45.0

Los intereses devengados no cobrados, considerados como cartera vencida, se reservan en su totalidad al momento del traspaso a dicha cartera. Los créditos calificados como irrecuperables se cancelan contra la estimación preventiva cuando se determina la imposibilidad práctica de recuperación. Adicionalmente, por los créditos comerciales que se encuentren en cartera vencida y reservados en su totalidad, nuestro equipo de administración evalúa periódicamente si éstos deben ser aplicados contra la estimación preventiva. Cualquier recuperación derivada de los créditos previamente castigados, se reconoce en los resultados del ejercicio. El monto de la estimación preventiva para riesgos crediticios cargada a resultados de nuestra empresa cerró en $851 millones de pesos para 2016 y $481 millo nes de pesos para 2015. Al 31 de diciembre de 2014 finalizó en $326 millones de pesos. Dichos incrementos se debieron al crecimiento de los activos durante dichos periodos. Los instrumentos financieros que potencialmente nos exponen al riesgo de crédito, consisten en cuentas por cobrar a clientes. Para reducir el riesgo de crédito, realiza mos evaluaciones en forma periódica respecto a la situación financiera de sus clientes y les requiere garantías específicas. Consideramos que nuestra concentración de riesgos de crédito es mínima dado el gran número de clientes y su dispersión geográfica. Adicionalmente, consideramos que nuestro riesgo de crédito potencial está adecuadamente cubierto con la estimación preventiva para riesgos crediticios que hemos constituido para tal fin. IV. Administración 1.

Auditores Externos

Nuestros estados financieros por los ejercicios terminados al 31 de diciembre de 2016, 2015 y 2014 fueron auditados por Galaz, Ya mazaki, Ruiz y Urquiza, S.C., mie mbro de Deloitte Touche Tohmatsu Limited. Durante los períodos antes mencionados, cada dictamen de nuestros auditores fue emitido sin salvedades. General Motors Financial Company, Inc. designa anualmente a sus auditores externos, con el objeto de que auditen nuestros estados financieros y emitan su correspondiente dictamen. Durante el 2016, 2015 y 2014, Galaz, Yamazaki, Ruiz y Urquiza, S.C., miembro de Deloitte Touche Tohmatsu Limited proporcionó servicios al Emisor, en adición a los de auditoría, principalmente en revisiones de procedimientos previamente convenidos respecto a cuentas elegibles y cuentas por cobrar fideicomitidas bajo el contrato de fideicomiso irrevocable No F/804, los cuales estimamos no afectan su independencia como nuestros auditores externos.

2.

Operaciones con personas relacionadas y conflictos de interés

Somos una subsidiaria indirecta de General Motors. General Motors directamente o a través de su subsidiaria en México, produce o importa todas las unidades de las marcas General Motors vendidas en México. Aun cuando consideramos que General Motors en ningún mo mento ha comprometido los resultados de sus subsidiarias financieras (incluyendo a nuestra Compañía) en beneficio de su negocio automotor, no podemos asegurar que en el futuro nuestros resultados no se verán afectados por una decisión de negocios tomada por General Motors. Nuestras operaciones de financiamiento bajo la modalidad de créditos comerciales se realizan principalmente con Distribuidores para la venta y distribución de unidades de las marcas General Motors en México. Como es mencionado en el presente Reporte Anual, otorgamos financiamiento a los Distribuidores para la adquisición de unidades, realizar remode laciones, ampliaciones, compra de e quipo, entre otros. Consideramos que dichos financiamientos son otorgados en términos, condiciones y conforme a la práctica de la industria en la que operamos. En este sentido no sacrificamos utilidad para incentivar la venta de vehículos de las marcas General Motors. Actualmente recibimos servicios de recursos humanos de parte Servicios GMAC, S.A. de C.V., que es una subsidiaria indirecta del Garante GMF. Dichos s ervicios son recibidos al amparo de un contrato de prestación de servicios especializados celebrado entre Servicios GMAC, S.A. de C.V. y nuestra empresa. Entre los servicios de recursos humanos prestados se incluyen los relacionados a soporte para las áreas administrativas, dirección, técnicas y operativas de nuestra empresa. Es importante destacar que todas las operaciones anteriormente descritas se llevaron a cabo en condiciones de mercado conforme a la práctica de la industria. En los estados financieros que se adjuntan al presente Reporte Anual, se describen los saldos que se han generado como resultado de las operaciones descritas con anterioridad. A continuación se muestran los saldos con partes relacionadas por los últimos tres ejercicios terminados al 31 de diciembre de 2016, 2015 y 2014.

Saldo con partes relacionadas (Cifras en miles de pesos)

Cuentas por cobrar: General Motors de México, S. de R.L. de C.V.

Cuentas por pagar: General Motors de México, S. de R.L. de C.V. General Motors Financial Company Inc. GM Financial International B.V. Servicios GMAC S.A. de C.V.

31 de Diciembre 2016

31 de Diciembre 2015

31 de Diciembre 2014

354,096 354,096

229,441 229,441

20,955 20,955

5,754,238 (18) 3,639,609 100,297 9,494,126

5,040,337 4,246 100,194 5,144,777

4,116,246 24,977 4,141,223

3.

Administradores y accionistas

3.1.

Consejo de Administración.

De conformidad con nuestros estatutos sociales, los miembros del Consejo de Administración son elegidos por la Asamblea Ordinaria de Accionistas de la empresa, la cual debe celebrarse por lo menos una vez al año, dentro de los 4 meses siguientes a la clausura de cada ejercicio social. Los miembros del Consejo de Administración (i) durarán en su cargo por tiempo determinado, y no cesarán en el desempeño de sus funciones mientras no tomen posesión de sus cargos quienes hayan de sustituirlos; (ii) pueden ser o no accionistas de la Compañía; y (iii) pueden ser reelectos. El presidente del Consejo de Administración es el señor Frederick George Livingood. Cada miembro actual del Consejo de Administración y su respectivo suplente fue ratificado en su cargo mediante asamblea general ordinaria de accionistas de fecha 27 de junio de 2016. El Consejo de Administración es asistido por comisiones y por funcionarios ejecutivos, los cuales administran el día a día de nuestro negocio. No contamos con un código de conducta aplicable al consejo de administración y directivos relevantes en particular. El código de conducta aplica por igual a todos los empleados contratados por Servicios GMAC, S.A. de C.V. El Consejo de Administración tiene la representación legal del Emisor y está investido de las siguientes facultades: ·

Poder general para pleitos y cobranzas, otorgado, en términos de nuestros estatutos vigentes con todas las facultades generales y las especiales que requieran clausula especial de acuerdo con lo previsto por los artículos 2,554, párrafo primero, y 2,587 del Código Civil Federal y los artículos correlativos de los códigos civiles de las demás entidades federativas de México;

·

Poder general para actos de administración, para administrar bienes de acuerdo con lo establecido en el párrafo segundo del artículo 2554 del Código Civil Federal y sus correlativos de los códigos civiles para las distintas entidades federativas de México;

·

Poder para actos de administración en asuntos laborales, para los efectos de los artículos 692, 786, 876 y siguientes, así como 878 y demás aplicables de la Ley Federal del Traba jo;

·

Poder General para Actos de Dominio, de acuerdo con lo establecido en el párrafo tercero del artículo 2554 del código civil federal y sus correlativos de los códigos civiles para las distintas entidades federativas de México;

·

Poder general cambiario, para aceptar, otorgar, girar, avalar, emitir, librar, endosar, ceder y suscribir toda clase de títulos de crédito en los términos de los artículos 9 y 85 de Ley General de Títulos y Operaciones de Crédito; incluyendo sin limitación, el abrir y cerrar cuentas bancarias a nombre del Emisor, girar en contra de ellas, efectuar transferencias electrónicas de fondos respecto a las mismas, y designar personas que giren en contra de las mismas cuentas bancarias;

·

Designar y remover al Director General a los delegados fiduciarios; al auditor externo del Emisor y al secretario y secretario suplente del propio Consejo de Administración, así como señalarles sus facultades y remuneraciones;

·

Convocar a Asambleas de Accionistas y para ejecutar sus resoluciones;

·

Conferir poderes generales o especiales en los términos de los incisos que anteceden, con o sin facultades de sustitución, así como para revocar los poderes que otorgare.

En general, el Consejo de Administración, conforme a nuestros estatutos vigentes, tiene facultades suficientes para llevar a cabo todos los actos autorizados conforme a los mismos o que sean consecuencia de aquellos. Al 31 de diciembre de 2016 nuestro Consejo de Administración se encontraba integrado de la siguiente forma: Nombre Miembros propietarios: Frederick George Livingood Fernando Ricardo Rodrígue z Treviño Christiaan Salvador Glastra Tejeda Age u Monteiro de Almeida Junior Alberto Díaz Leal Mendez

Cargo

Presidente Consejero Consejero Consejero Consejero

Suplentes: Miguel Darío Plazas Vega Roberto Salgado Razo Armando Valdés Hernández Julio César Villarreal Villarreal Liliana Ibarra Baca

Consejero suplente Consejero suplente Consejero suplente Consejero suplente Consejero suplente

El domicilio legal de cada uno de dichos consejeros es Ave. Eugenio Garza Lagüera N°933, Planta Baja, Colonia Valle Oriente, San Pedro Garza García, Nuevo León, C.P. 66269. El domicilio legal de cada uno de dichos consejeros es Ave. Eugenio Garza Lagüera N°933, Planta Baja, Colonia Valle Oriente, San Pedro Garza García, Nuevo León, C.P. 66269. A continuación se presentan breves descripciones biográficas de los consejeros: Frederick George Livingood. Se desempe ña actualmente como Director General de GMF México, Colombia, Chile y Perú, cargo que desempeña desde el pasado 1º de agosto de 2016. El Señor Livingood forma parte de la familia GMF desde el año de 1982, ocupando diversos puestos directivos en México, Latinoamérica y Europa. Su asignación previa fué como Vicepresidente Ejecutivo y Director de Operaciones en SAIC-GMAC, empresa conjunta en China. Es egresado de la Universidad Estatal de Salisbury con el grado de Licenciado en Administración de Empresas. Fernando Ricardo Rodríguez Treviño. Se desempeña actualmente como Director de Operaciones de nuestra empresa, estando a cargo de las áreas de crédito comercial y crédito de consumo desde enero de 2014. El señor Rodríguez ingresó a nuestra empresa en el año de 1996 y ha ocupado distintos puestos directivos en México, Brasil y Estados Unidos. Cuenta con el título de Contador Público y estudios de Maestría en Dirección Internacional, en el Instituto Tecnológico Autóno mo de México.

Christiaan Salvador Glastra Tejeda. Se desempeña como Director de Finanzas de nuestra empresa, cargo que ha desempeñado desde 2010. El señor Glastra cuenta con 20 años de experiencia en la industria de financiamiento automotriz trabajando para diversas marcas y ocupando distintos puestos en México, Estados Unidos y Europa. Cuenta con el grado de Licenciado en Contaduría Pública, otorgado por la Universidad Iberoamericana. Ageu Monteiro de Almeida Junior. Se desempeña actualmente como Director de Operaciones de nuestra empresa, cargo que ha desempeñado desde 2013, estando a cargo de las áreas de Cobranza y Servicio al Cliente. Adicionalmente, dentro de sus responsabilidades se encuentran los procesos operacionales para otros países de Latinoamérica. El señor Ageu forma parte de nuestro equipo desde el año de 1989, ocupando diversos puestos directivos en Brasil y México. Cuenta con post-grado en Administración de la Calidad e n Servicios, otorgado por la universidad Fundação Getulio Vargas de Brasil. Alberto Díaz Leal Méndez. Actualmente se desempeña como Director de Riesgo Consumo en nuestra empresa desde marzo del 2016. El señor Díaz Leal comenzó a traba jar para GM Financial en el año de 2012. Inicialmente ocupó el puesto de Senior Risk Policy Manager y después, en el área de Operaciones estuvo a cargo de Cobranza y Adquisiciones para Alemania, Suiza y Austria. Trabajó en el departamento de Riesgo de Citibank en España y Alemania durante aproximada mente 5 años. Cuenta con el título de Licenciado en Negocios Internacionales por la Universidad ESEI en Barcelona, España y realizó una maestría en Finanzas en la Universidad de Nottingham Business School en el Reino Unido. 3.2.

Directiv os y Funcionarios Relevantes

La siguiente tabla contiene una lista de nombres, puestos y años de servicio de nuestros principales directores y funcionarios: Nombre Frederick George Livingood Christiaan Salvador Glastra Tejeda Erick Cárdenas González Víctor Manuel Lamadrid León Armando Valdés Hernández Jorge Alberto Arnaud Sánchez Ana Paula Díaz Infante Casar Age u Monteiro de Almeida Junior Fernando R. Rodríguez Treviño Miguel D. Plazas Vega Liliana Ibarra Baca

Cargo Director General Director de Finanzas Director Jurídico Director de Tesorería Director de Contraloría Director de Sistemas Directora de RH Director de Operaciones Director de Operaciones Director de Ventas Directora de Control Interno

A continuación encontrarán una breve descripción biográfica de nuestros directivos y funcionarios, en el entendido que, las biografías de Frederick George Livingood, Christiaan Salvador Glastra Tejeda, Alberto Díaz Leal Mende z, Ageu Monteiro de Almeida Junior y Fernando Ricardo Rodríguez Treviño se describen en el apartado anterior: Erick Cárdenas González. Director Jurídico de nuestra empresa, en la cual labora desde el año 2015. Es Secretario del Consejo de Administración de la misma, sin pertenecer al mismo. Cuenta con el grado de Maestría en Derecho Comercial y Corporativo, otorgado por la Universidad de Londres.

Víctor Manuel Lamadrid León. Se desempeña actualmente como Director de Tesorería, siendo responsable del Fondeo y Liquidez de la Compañía desde Diciembre de 2008. El señor Lamadrid cuenta con 19 años de experiencia en la industria de financiamiento automotriz, ocupando diversos puestos directivos en otras empresas antes de unirse a nuestro equipo. Cuenta con el título de Licenciado en Administración y estudios de MBA en la Universidad de Oviedo, España. Armando Valdés Hernández. Se desempeña actualmente como Director de Contraloría. El Sr. Valdés ingresó a nuestra empresa en el 2011 y cuenta con 23 años de experiencia en la industria de financiamiento automotriz, ocupando diversos puestos similares en otras empresas antes de unirse a nuestro equipo. Cuenta con el título de Licenciado en Contaduría y estudios de post grado en Auditoria Financiera Operacional en la Universidad de México. Jorge Alberto Arnaud Sánchez. Se desempeña como Director de Sistemas de nuestra empresa. Ha trabajado para esta Compañía desde el año de 1991, ocupando diferentes puestos en el área de sistemas. Cuenta con el título de Ingeniero en Sistemas Computacionales por el ITESM. Ana Paula Díaz Infante Casar. Directora de Recursos Humanos, en nuestra empresa, desde hace 4 años. Ha trabajado para esta Compañía desde el año de 2011. Cuenta con 13 años de experiencia en el departamento de Recursos Huma nos, en donde ha desempeñado diversos roles en empresas de distintos giros. Cuenta con el título de Licenciado en Psicología en la Universidad Iberoamericana. Liliana Ibarra Baca. Se desempeña actualmente como Directora de Control Interno desde el año de 2015. Trabajó anteriormente en la Co mpañía por 12 años en las áreas de crédito comercial, crédito de consumo y en el centro de análisis de crédito, además de contar con experiencia en el sector bancario en el área de riesgo. Cuenta con el título de Contador Público, otorgado por el Instituto Tecnológico y de Estudios Superiores de Monterrey. Miguel Darío Plazas Vega. Se desempeña actualmente como Director de Ventas y Mercadotecnia de la Compañía, cargo que ocupa desde 2015, previamente se desempeñó como director de crédito de consumo. El señor Plazas es parte de nuestro equipo desde el año de 2001, con experiencia en diferentes áreas de la Compañía en México y Colombia. Cuenta con el grado de Licenciado en Administración de Empresas, otorgado por la Universidad Pontificia Javeriana.

A continuación, se presenta un diagrama describiendo las posiciones de nuestros directivos y funcionarios, dentro de la empresa:

Director General

Director de Legal

Director de Finanzas

Director de Sistemas

Director de Contraloría

Director de Recursos Humanos

Director de Tesorería

Director de Control Interno

Director de Operaciones

Director de Operaciones LAO & Servicio al Cliente

Director de Ventas y Mercadotecnia

Direc tor de Crédito Consumo

Director de Centro de Servicio LAO

Direc tor de Crédito Comercial

Director de Cobranza y Servic io al Cliente

Director de Riesgos Director de Auditoría Interna

Relaciones familiares entre Miembros del Consejo de Administración No existe parentesco por consanguinidad o afinidad hasta cuarto grado o civil, incluyendo a sus cónyuges, concubinas o concubinarios, entre los miembros del Consejo de Administración y directivos relevantes de la empresa.

3.3.

Principales Accionistas

A la fecha del presente Reporte Anual, el 100% de nuestras acciones pertenecen, indirectamente a General Motors Financial Company, Inc. Estructura Accionaria La siguiente tabla contiene cierta información sobre la estructura accionaria del Emisor al 31 de diciembre de 2016. Accionista GM Financial Mexico Holdings, LLC General Motors Financial Company, Inc. TOTAL

Número de Acciones 999 1 1,000

Porcentaje 99.90% 00.10% 100.00%

4.

Estatutos sociales y otros convenios

A continuación se incluye un resumen de nuestras cláusulas estatutarias más relevantes: Objeto Social. La sociedad, en su carácter de Sociedad Financiera de Objeto Múltiple, Entidad Regula da tiene por objeto social principal la realización habitual y profesional de operaciones de crédito, arrendamiento financiero, arrendamiento puro y factoraje financiero y en consecuencia podrá realizar todas las operaciones y prestar todos los servicios propios para el otorgamiento, administración y ejecución de toda clase de operaciones de crédito, arrendamiento financiero, arrendamiento puro y factoraje financiero en cualquiera de sus modalidades, y la administración de cualquier tipo de cartera crediticia, así como emitir valores de deuda a su cargo debidamente inscritos en el Registro Nacional de Valores en términos de la Ley de Mercado de Valores, y del artículo 87-B de la Ley General de Organizaciones y Actividades Auxiliares de Crédito. Duración. La duración de la sociedad es indefinida. Capital Social y Acciones. El capital de la sociedad es variable. El capital mínimo fijo sin derecho a retiro es de $50’000,000.00 M.N., representado por 1,000 acciones ordinarias, no minativas, sin expresión de valor nominal, Clase I, totalmente suscritas y pagadas. La parte variable del Capital Social será ilimitada y estará representada por acciones nominativas, sin expresión de valor nominal, Clase II, cuyas características determine en su oportunidad la Asamblea General de Accionistas que apruebe su emisión. Órganos de Administración. La dirección y administración de la sociedad están confiadas a un Consejo de Administración y a un Director General en sus respectivas esteras de competencia. El Consejo de Administración estará integrado por el número impar de mie mbros que determine la Asamblea General Ordinaria de Accionistas. Dicha Asamblea de Accionistas podrá designar un suplente por cada miembro propietario. Los miembros suplentes sólo podrán suplir a su respectivo miembro propietario. En caso de no existir nombra miento por la Asamblea de Accionistas, el Consejo de Administración, en su primera Sesión celebrada inmediatamente después de la de Accionistas, no mbrara de entre sus miembros un Presidente. El Consejo de Administración también podrá no mbrar a un Secretario y a su respectivo suplente, quienes no requieren ser miembros del Consejo de Administración; asimismo no mbrara a las personas que ocupen los demás cargos establecidos para el mejor funcionamiento de la Sociedad. Los miembros del Consejo de Administración no requieren ser Accionistas, podrán ser reelectos y recibirán las remuneraciones que determine la Asamblea Ordinaria de Accionistas. El nombramiento de los Consejeros y del Director General deberá recaer en personas de reconocida calidad moral, que cuenten con conocimiento en materia administrativa o financiera. En ningún caso podrán ocupar los cargos de Consejeros o Director General: I. Las personas sentenciadas por delitos patrimoniales, las inhabilitadas para ejercer el comercio o para desempeñar un empleo, cargo o comisión en el servicio público, o en el sistema financiero mexicano; II. Los quebrados y concursados que no hayan sido rehabilitados, y III. Quienes realicen funciones de regulación, inspección o vigilancia de las sociedades financieras.

Designación, Duración, Remuneración y Garantía. Los mie mbros de l Consejo de Administración duraran en su cargo por tiempo determinado, y no cesaran en el desempeño de sus funciones mientras no tomen posesión de sus cargos quienes hayan de sustituirlos y recibirán las remuneraciones que determine la Asamblea Ordinaria de Accionistas. Los consejeros no requerirán caucionar su fiel desempeño salvo que la Asamblea Ordinaria de Accionistas establezca lo contrario. Presidencia. El Presidente del Consejo de Administración presidirá las Asambleas de Accionistas, así como las Sesiones del Consejo de Administración y llevara a cabo las resoluciones de las Asambleas de Accionistas y de las Sesiones del Consejo sin necesidad de un nombramiento o resolución especial. El Presidente del Consejo de Administración tendrá voto de calidad en caso de empate de votos en las Sesiones de dicho Consejo. Comisarios. La vigilancia de la Sociedad estará encomendada a uno o más Comisarios, según lo determine la Asa mblea Ordinaria de Accionistas, quienes podrán tener suplentes. Los Comisarios podrán o no ser accionistas. Podrán ser reelectos y desempe ñarán sus cargos hasta que las personas designadas para substituirlos tomen posesión de los mismos, y no requerirán caucionar su fiel desempeño salvo que la Asamblea Ordinaria de Accionistas establezca otra cosa. Disolución y Liquidación. La Sociedad se disolverá en cualquiera de los casos especificados en el artículo 229 de la Ley General de Sociedades Mercantiles. Una vez disuelta la Sociedad se pondrá en liquidación. La liquidación se encomendara a uno o más liquidadores designados por la Asamblea General Extraordinaria de Accionistas. Si la Asamblea no hiciere la designación correspondiente, la hará un Juez de lo Civil o de Distrito del Domicilio Social de la Sociedad a solicitud de cualquier Accionista. La Asamblea de Accionistas que designe al liquida dor, le fijara un plazo para el ejercicio de su cargo, así como la retribución que, en su caso, habrá de corresponderle. No existen mecanismos en virtud de los cuales se limiten los derechos corporativos que confieren las acciones. La Compañía no ha celebrado contrato o convenio alguno cuyos efectos sean los de retrasar, prevenir, diferir o hacer más oneroso cualquier cambio de control en la Compañía. Asimismo, no existe fideicomiso o mecanismo alguno que establezca una limitante a los derechos corporativos que confieren las acciones que representan el capital social de la Compañía.

The undersigned declares that the consolidated financial statements of General Motors Financial Company, Inc. (GMF) that are included in GMF’s 2016 annual report on Form 10-K, as filed with the Securities and Exchange Commission on February 7, 2017 (the 2016 Annual Report), a copy of which is included under section VI. Annexes of the annual report of GM Financial de México, S.A. de C.V. SOFOM E.R. (the Issuer) filed with the Mexican Stock Exchange, S.A.B. of C.V. on April 28, 2017 (Annual Report), were audited in accordance with the standards of the Public Company Accounting Oversight Board (United States) (the PCAOB Standards). The undersigned also declares that the consolidated financial statements of GMF that are included in GMF’s 2015 annual report on Form 10-K, as filed with the SEC on February 3, 2016 (the 2015 Annual Report), a copy of which is included under section VI. Annexes of this Annual Report, were audited in accordance with the PCAOB Standards. However, the 2015 Annual Report has not been updated to reflect changes in GMF’s accounting and disclosures which were made in 2016 and which affect the presentation of the financial information provided in the 2015 Annual Report, and the Report of Independent Registered Public Accounting Firm included in the 2015 Annual Report has been superseded by the Report of Independent Registered Public Accounting Firm included in the 2016 Annual Report. Therefore, the 2015 Annual Report should be read in conjunction with the 2016 Annual Report. In addition, the Report of Independent Registered Public Accounting Firm included in the 2015 Annual Report has been superseded by an audit report that does not cover GMF’s 2014 consolidated balance sheet or GMF’s 2013 consolidated financial statements. The undersigned also declares that we have read an English version of the Annual Report and, based on such reading and within the scope of the audits performed, nothing has come to our attention that caused us to believe that there are material errors or inconsistencies in the information presented therein that has been derived from the audited consolidated financial statements of GMF referred to above, except as it may relate to the changes in GMF’s accounting and disclosures as discussed in the preceding paragraph. Furthermore, we were not engaged to perform, and we did not perform, additional procedures for the purpose of expressing an opinion or any other form of assurance, and we do not express an opinion or any other form of assurance, on any other information contained in the Annual Report.

Fort Worth, Texas April 28, 2017

VI.

Anexos

·

Carta de Independencia y Carta Consentimiento de Auditores Externos México

·

Carta de Independencia y Carta Consentimiento de Auditores Externos E.U.A.

·

Estados Financieros auditados del Emisor para los años concluidos el 31 de diciembre de 2016, 2015 y 2014

·

Informe del Comisario

·

Estados Financieros auditados consolidados del Garante para los años concluidos el 31 de diciembre de 2016, 2015 y 2014. (En caso de que surjan discrepancias entre las versiones en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento y sus traducciones al español, las versiones originales en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento deberán prevalecer)

·

·

Diferencias entre los principios de contabilidad generalmente aceptados en Estados Unidos (US GAAP) y los criterios contables utilizados por la CNBV Formulario 8-K Fecha del Reporte 5 de Marzo de 2017 (En caso de que surjan discrepancias entre las versiones en inglés

del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento y sus traducciones al español, las versiones originales en inglés del Reporte Anual de 2016 y 2015, así como de la Leyenda, la Carta Consentimiento y la Carta de Independencia incluida en este documento deberán prevalecer)

Board of Directors General Motors Financial Company, Inc. 801 Cherry St. Suite 3500 Fort Worth, TX 76102 We agree to the inclusion in the Annual Report of GM Financial de México, S.A. de C.V. SOFOM E.R. (the Issuer) filed with the Mexican Stock Exchange, S.A.B. of C.V. on April 28, 2017 (the Annual Report), of our report dated February 7, 2017, on our audit of the consolidated financial statements of General Motors Financial Company, Inc. (GMF) that are included in GMF’s 2016 annual report on Form 10-K, as filed with the Securities and Exchange Commission on February 7, 2017, a copy of which is included under section VI. Annexes of the Annual Report. The undersigned also declares that we have read an English version of the Annual Report and, based on such reading and within the scope of the audits performed, nothing has come to our attention that caused us to believe that there are material errors or inconsistencies in the information presented therein that has been derived from the audited consolidated financial statements of GMF referred to above.

Fort Worth, Texas April 28, 2017

Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________

FORM 10-K (Mark One)

ý

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 OR

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)

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) Securities registered pursuant to Section 12(b) of the Act: Title of each class

Name of each Exchange on which registered

5.250% Senior Notes due 2026 New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None (Title of each class)

______________________________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No ý 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 ý No ¨ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K. ý 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 x Smaller Reporting Company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No ý As of February 6, 2017, 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. DOCUMENTS INCORPORATED BY REFERENCE NONE The registrant is a wholly-owned subsidiary of General Motors Company and meets the conditions set forth in General Instructions (I)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with a reduced disclosure format as permitted by Instruction I(2).

INDEX Page

Forward-Looking Statements

1 PART I

Item 1. Item 1A. Item 2. Item 3. Item 4. Item 5. Item 6. Item 7. Item 7A. Item 8.

Item 9. Item 9A.

Business Risk Factors Properties Legal Proceedings Mine Safety Disclosures

1 7 12 12 12

PART II Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Consolidated Balance Sheets Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Shareholder's Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Note 2. Related Party Transactions Note 3. Acquisition of Equity Interest Note 4. Finance Receivables Note 5. Leased Vehicles Note 6. Goodwill Note 7. Equity in Net Assets of Non-consolidated Affiliates Note 8. Debt Note 9. Variable Interest Entities Note 10. Derivative Financial Instruments and Hedging Activities Note 11. Commitments and Contingencies Note 12. Parent Company Stock-Based Compensation Note 13. Employee Benefit Plans Note 14. Income Taxes Note 15. Supplemental Cash Flow Information Note 16. Segment Reporting and Geographic Information Note 17. Accumulated Other Comprehensive Loss Note 18. Regulatory Capital and Other Regulatory Matters Note 19. Quarterly Financial Data (unaudited) Note 20. Guarantor Consolidating Financial Statements Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures

12 12 12 22 27 27 28 29 30 31 31 36 37 38 41 42 42 43 45 46 48 49 50 50 52 53 54 54 55 55 64 64

Item 10. Item 11. Item 12. Item 13. Item 14. Item 15.

PART III Directors and Executives Officers and Corporate Governance Executive and Director Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationships, Related Transactions and Director Independence Principal Accounting Fees and Services PART IV Exhibits and Financial Statement Schedules Signatures Index to Exhibits

64 64 64 64 64 65 66 67

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Forward-Looking Statements This Form 10-K 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 this Annual Report on Form 10-K for the year ended December 31, 2016. 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: • General Motors Company's ("GM") ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly the United Kingdom where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union; • the viability of GM-franchised dealers that are commercial loan customers; • the availability and cost of sources of financing; • the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; • the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; • the prices at which used cars are sold in the wholesale auction markets; • vehicle return rates and the residual value performance on vehicles we lease; • interest rate and currency exchange rate fluctuations; • competition; • our ability to manage risks related to security breaches and other disruptions to our networks and systems; • changes in general economic and business conditions; and • changes in business strategy, including expansion of product lines and credit risk appetite, acquisitions and divestitures. 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. PART I Item 1. Business General General Motors Financial Company, Inc. (sometimes referred to as "we," "us," "our," the "Company," or "GM Financial"), the wholly-owned captive finance subsidiary of GM, is a global provider of automobile finance solutions. We were acquired by GM in October 2010 to provide captive financing capabilities in support of GM’s U.S. and Canadian markets. In 2013, we expanded the markets we serve by acquiring Ally Financial Inc.'s ("Ally Financial") auto finance operations in Europe and Latin America. In January 2015, we completed the acquisition of an equity interest in SAIC-GMAC Automotive Finance Company Limited (“SAIC-GMAC”), a joint venture that conducts auto finance operations in China, from Ally Financial. Our global footprint now covers over 85% of GM’s worldwide market, and we provide auto finance solutions around the world. Except as otherwise specified, amounts presented within the tables are stated in millions. 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: North America ("the North America Segment") and international ("the International Segment"). The North America Segment includes our operations in the U.S. and Canada. The International Segment includes our operations in all other countries. North America Segment Our North America Segment includes operations in the U.S. and Canada. We have been operating in the automobile finance business in the U.S. since September 1992. Our retail automobile finance programs include prime and sub-prime lending and full credit spectrum 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. We therefore generally charge higher rates than those charged by banks and credit unions and expect to sustain 1

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. a higher level of credit losses than on prime lending. Our commercial lending programs are offered primarily to our GM-franchised dealer customers and their affiliates. International Segment Our International Segment includes operations in the United Kingdom (U.K), Germany, Mexico and Brazil, as well as other countries across Europe and Latin America and in China through our joint venture relationship with SAIC-GMAC. The international operations were originally a part of General Motors Acceptance Corporation, the former captive finance subsidiary of GM. Due to this longstanding relationship, the international operations have substantial business related to GM and its dealer network. 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 and/or car-related insurance products through third parties, such as payment protection insurance, gap, extended warranty, and motor insurance. Refer to Note 16 to our consolidated financial statements for more information relating to our operating segments. Retail Finance In our retail finance business, use of the term "loan" refers to retail installment contracts we purchase from automobile dealers or other vehicle financing products. Marketing As an indirect auto finance provider, we focus our marketing activities on automobile dealers. We primarily pursue franchised dealerships with new and used car operations; however, we also conduct business with a limited number of independent dealerships. We generally finance new GM vehicles, moderately-priced new vehicles from other manufacturers, and later-model, low-mileage used vehicles. In both segments, we maintain non-exclusive relationships with the dealers and actively monitor our dealer relationships with the objective of maximizing the volume of retail financing applications received from dealerships with whom we do business that meet our underwriting standards and profitability objectives. Due to the non-exclusive nature of our relationships with dealers, the dealers retain discretion to determine whether to obtain financing from us or from another source for a customer seeking to make a vehicle purchase. Subvention Programs GM offers subvention programs, under which GM provides us cash payments in order for us to be able to provide for lower payments on finance and lease contracts we purchase from GM's dealership network, making credit more affordable to customers purchasing vehicles manufactured by GM. Origination Data Our business strategy is to help GM sell vehicles while earning an appropriate risk-adjusted return. This includes increasing new GM automobile sales by offering a broad spectrum of competitive financing programs. Our increasing linkage with GM in our North America Segment is evidenced by the percentage of loans and leases we originate for new GM vehicles, which increased to 88% of our total retail originations volume in 2016, up from 84% in 2015 and 65% in 2014. The following table sets forth the retail loan and lease origination levels for the North America and International Segments: Years Ended December 31, 2016 North America New GM

$

Other Total

32,150

International(a) $

4,510 $

36,660

2015

5,916

Total $

855 $

6,771

North America

38,066

$

5,365 $

43,431

26,178

International(a) $

5,700

4,874 $

31,052

2014 Total $

984 $

6,684

North America

31,878

$

5,858 $

37,736

8,380

International $

4,560 $

12,940

7,261

Total $

15,641

$

21,254

1,053 $

8,314

5,613

________________ (a) Originations trends in the International Segment were negatively impacted by foreign currency translation. Underwriting We utilize proprietary credit scoring systems to support our credit approval process. The credit scoring systems were developed through statistical analysis of customer demographics, credit bureau attributes and portfolio databases and are tailored to each country where we conduct business. Credit scoring is used to differentiate credit applications and to statistically rank-order credit risk in terms of expected default rates, which enables us to evaluate credit applications for approval, contract pricing and structure. In addition to our proprietary credit scoring systems, we utilize other underwriting guidelines. These underwriting guidelines are comprised of numerous evaluation criteria, including, but not limited to: (i) identification and assessment of the applicant's willingness and capacity to repay the loan or lease, including consideration of credit history and performance on past and existing obligations; (ii) credit bureau data; (iii) collateral identification and valuation; (iv) payment structure and debt ratios; (v) insurance information; (vi) employment, income and residency verifications, as considered appropriate; and (vii) in certain cases, the creditworthiness of a co-obligor. These underwriting guidelines, and the minimum credit risk profiles of applicants we will approve 2

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. as rank-ordered by our credit scorecards, are subject to change from time to time based on economic, competitive and capital market conditions as well as our overall origination strategies. Servicing Our business strategy includes increasing the loyalty and retention of GM customers through our customer service activities. Our servicing activities include collecting and processing customer payments, responding to customer inquiries, initiating contact with customers who are delinquent, maintaining our security interest in financed vehicles, monitoring physical damage insurance coverage of financed vehicles, arranging for the repossession of financed vehicles, liquidation of collateral and pursuit of deficiencies when appropriate. Operating Leases Most of our operating leases are closed-end leases; therefore, we assume the residual risk on the leased vehicle. The lessee may purchase the leased vehicle at lease end by paying the purchase price stated in the lease contract, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to the dealer by the lease's scheduled lease maturity date. Extensions may be granted to the lessee for up to six months. If the lessee extends the maturity date on their lease contract, the lessee is responsible for additional monthly payments until the leased vehicle is returned or purchased. A lessee may terminate a lease prior to the original scheduled lease maturity date. In order to terminate the lease prior to the scheduled lease maturity date, the lessee must pay the lesser of (i) all remaining monthly payments due under the lease, plus any charges for excess mileage, wear and use or (ii) the amount by which the carrying value of the lease exceeds the net sale proceeds received when the leased vehicle is sold. We seek to maximize net sales proceeds on returned leased vehicles. Net sales proceeds equal gross proceeds less fees and costs for reconditioning and transporting the leased vehicles. We sell returned leased vehicles through our exclusive online channel, which is available to the dealer receiving the returned vehicle and other GM dealerships prior to broader dealer access and, if necessary, by disposition through our nationwide wholesale auction partners. We have expanded our leasing and prime lending programs through GM-franchised dealerships in the U.S.; 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 the North America Segment by FICO score band or equivalents: Years ended December 31, 2016 Amount

Prime Near-prime Sub-prime

$

Total originations

$

25,801

2015 Percentage

Amount

70.4%

$

19,978

2014 Percentage 64.3%

Amount $

Percentage

5,060

39.1% 14.7

4,671

12.7

4,628

14.9

1,904

6,188

16.9

6,446

20.8

5,976

46.2

36,660

100.0%

31,052

100.0%

12,940

100.0%

$

$

The following table summarizes the number of vehicles included in leased vehicles, net by vehicle type at December 31, 2016 and 2015 (in thousands): December 31, 2016

Cars Trucks Crossovers Total 3

2015

430 224 681

271 121 401

1,335

793

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. The following table summarizes additional information for operating leases (in thousands): Years ended December 31, 2016

2015

Operating leases originated (a) 680 553 Operating leases terminated (b) 138 62 Operating lease vehicles returned (c) 69 25 Return rate(d) 50% 41% ________________ (a) Operating leases originated represents the number of operating leases we purchased during a given period. (b) Operating leases terminated represents the number of vehicles for which the lease has ended during a given period. (c) Operating lease vehicles returned represents the number of vehicles returned to us for remarketing at the end of the lease term. (d) Return rates are calculated as the number of operating leases returned divided by the number of operating leases terminated.

2014

178 30 12 39%

Operating leases originated has increased due to our exclusive subvention arrangement with GM, which was implemented during 2015. Operating leases terminated and operating lease vehicles returned increased due to the growth of the lease portfolio. Due to the current age and size of our lease portfolio, the current return rate is lower than we expect it to be in future periods as our lease portfolio grows and matures. Commercial Finance Commercial lending products include 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 financing for parts and accessories, dealer fleets and storage centers. Floorplan Financing We support the financing of new and used vehicle inventory primarily for our GM-franchised dealerships and their affiliates before sale or lease to the retail customer. Financing is provided through lines of credit extended to individual dealerships. In general, each floorplan line is secured by all financed vehicles and by other dealership assets and, when available, the continuing personal guarantee of the dealership's owners. Under certain circumstances, such as repossession of dealership inventory, GM and other manufacturers may be obligated by applicable law, or under agreements with us, to reassign or to repurchase new vehicle inventory within certain mileage and model year parameters, further minimizing our risk. The amount we advance to a dealership for new vehicles purchased through the manufacturer is equal to 100% of the wholesale invoice price of new vehicles, which includes destination and other miscellaneous charges, and a price rebate, known as a holdback, from the manufacturer to the dealer in varying amounts stated as a percentage of the invoice price. We advance the loan proceeds directly to the manufacturer. To support a dealership's used car inventory needs, we advance funds to the dealership or auction to purchase used vehicles for inventory based on the appropriate wholesale book value for the region in which the dealer is located. Floorplan lending is typically structured to yield interest at a floating rate indexed to an appropriate benchmark rate. The rate for a particular dealership is based on, among other things, the dealership's creditworthiness, the amount of the credit line, the dealer's risk rating and whether or not the dealership is in default. Interest on floorplan loans is generally payable monthly. GM offers floorplan interest subvention, under which GM makes payments to us to cover certain periods of interest on certain floorplan loans. Dealer Loans We also make loans to finance parts and accessories as well as improvements to dealership facilities, to provide working capital and to purchase and finance dealership real estate. These loans are typically secured by mortgages or deeds of trust on dealership land and buildings, security interests in other dealership assets and often the continuing personal guarantees from the owners of the dealerships and/or the real estate, as applicable. Dealer loans are structured to yield interest at fixed or floating rates, which are indexed to an appropriate benchmark rate. Interest on dealer loans is generally payable monthly. Underwriting Each dealership is assigned a risk rating based on various factors, including, but not limited to, capital sufficiency, operating performance, financial outlook and credit and payment history, if available. The risk rating affects loan pricing and guides management of the account. We monitor the level of borrowing under each dealership's account daily. When a dealer's outstanding balance exceeds the availability on any given credit line with that dealership, we may reallocate balances across existing lines, temporarily suspend the granting of additional credit, increase the dealer's credit line or take other actions following an evaluation and analysis of the dealer's financial condition and the cause of the excess or overline. Under the terms of the credit agreement with the dealership, we may call the floorplan loans due and payable and receive payment typically within 60 days of the call. 4

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Servicing Commercial loan servicing activities include dealership customer service, account maintenance, exception processing, credit line monitoring and adjustment and insurance monitoring. In the North America Segment, our commercial lending servicing operations are centrally located, while in our International Segment, they are conducted primarily in-country, usually located within retail lending and servicing centers. Upon the sale or lease of a financed vehicle, the dealer must repay the advance on the vehicle according to the repayment terms. These repayment terms may vary based on the dealer's risk rating. As a result, funds advanced may be repaid in a short time period, depending on the length of time the dealer holds the vehicle until its sale. We periodically inspect and verify that the financed vehicles are on the dealership lot and available for sale. The timing of the verifications varies and no advance notice is given to the dealer. Among other things, verifications are intended to determine dealer compliance with its credit agreement as to repayment terms and to determine the status of our collateral. Sources of Financing We primarily finance our loan, lease and commercial origination volume 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, although we may issue debt globally in order to enhance funding source diversification and support financing needs for the U.S. 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. Our operations in the U.S., Canada, Latin America and China are generally funded locally. Our European operations obtain most of their funding from local sources and also borrow funds from affiliated companies. We actively monitor the capital markets and seek to optimize our mix of funding sources to minimize our cost of funds. Secured Credit Facilities Some loans and leases are funded using secured credit facilities with participating banks providing financing either directly or through institutionally-managed conduits. Under these funding agreements, we transfer financial assets to special purpose finance subsidiaries. These subsidiaries, in turn, issue notes to the bank participants or agents, collateralized by such financial assets. The bank participants or agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of financial assets. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the assets held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. Advances under our funding agreements bear interest at commercial paper, London Interbank Offered Rates ("LIBOR"), Canadian Dollar Offered Rate ("CDOR"), Euro Interbank Offered Rate ("EURIBOR"), The Interbank Equilibrium Interest Rate ("TIIE") or prime rates plus a credit spread and specified fees, depending upon the source of funds provided by the bank participants or agents. In certain markets in the International Segment, we also finance loans through the sale of receivables to banks under a full recourse arrangement. Unsecured Credit Facilities The International Segment uses unsecured bank credit facilities as a source of funding. Both committed and uncommitted credit facilities are utilized. The financial institutions providing the uncommitted facilities are not obligated to advance funds under them. Securitizations We also fund loans and leases through public and private securitization transactions. Proceeds from securitizations are used primarily to fund initial cash credit enhancement requirements in the securitization and to pay down borrowings under our credit facilities, thereby increasing availability thereunder for further originations. In our securitizations, we transfer loans or lease-related assets to securitization trusts ("Trusts"), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. When we transfer loans or lease-related assets to a Trust, we make certain representations and warranties regarding the loans and lease-related assets. These representations and warranties pertain to specific aspects of the loans or leases, including the origination of the loans or leases, the obligors of the loans or leases, the accuracy and legality of the records, schedules containing information regarding the loans or leases, the financed vehicles securing the loans or leases, the security interests in the loans or leases, specific characteristics of the loans or leases, and certain matters regarding our servicing of the loans or leases, but do not pertain to the underlying performance of the loans or leases. Upon the breach of one of these representations or warranties (subject to any applicable cure period) that materially and adversely affects the noteholders' interest in any loan or lease, we are obligated to repurchase the loan or lease from the Trust. Historically, repurchases due to a breach of a representation or warranty have been insignificant. We utilize senior-subordinated securitization structures which involve the public and private sale of subordinated asset-backed securities to provide credit enhancement for the senior, or highest rated, asset-backed securities. The level of credit enhancement in future senior-subordinated securitizations will depend, in part, on the net interest margin, collateral characteristics and credit performance trends of the assets transferred, as well as our credit trends and overall auto finance industry credit trends. Credit enhancement levels may also be impacted by our financial condition, the economic environment and our ability to sell lower-rated subordinated bonds at rates we consider acceptable. 5

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. The credit enhancement requirements in our securitization transactions may include restricted cash accounts that are generally established with an initial deposit and may subsequently be funded through excess cash flows from securitized assets. An additional form of credit enhancement is provided in the form of overcollateralization, whereby the value of the loans or lease-related assets transferred to the Trusts is greater than the amount due on asset-backed securities issued by the Trusts. In the International Segment, our securitization transactions may contain portfolio performance ratios which could increase the minimum credit enhancement levels. In the North America Segment, our securitization transactions typically do not contain these performance ratios. Senior Notes, Retail Customer Deposits and Other Unsecured Debt We also access the capital markets in the North America and International Segments through the issuance of senior unsecured notes in the public markets. In Germany, we accept deposits from retail banking customers. In Latin America, we issue, to a limited extent, other unsecured debt through commercial paper offerings and other non-bank funding instruments. GM also provides us with financial resources through a $1.0 billion unsecured intercompany revolving credit facility (the "Junior Subordinated Revolving Credit Facility"). Trade Names We and GM have obtained federal trademark protection for the "AmeriCredit," "GM Financial" and "GMAC" names and the logos that incorporate those names. Certain other names, logos and phrases we use in our business operations have also been trademarked. The trademarks that GM and we hold are very important to our identity and recognition in the marketplace. Regulation Our operations are subject to regulation, supervision and licensing by governmental authorities under various national, state and local laws and regulations. North America Segment In the U.S., we are subject to extensive federal regulation, including the Truth in Lending Act, the Equal Credit Opportunity Act and the Fair Credit Reporting Act. Additionally, we are subject to the Gramm-Leach-Bliley Act, which requires us to maintain the privacy of certain consumer data in our possession and to periodically communicate with consumers on privacy matters, and the Servicemembers Civil Relief Act, which has limitations on the interest rate charged to customers who have subsequently entered military service, and provides other protections such as early lease termination and restrictions on repossession. The primary federal agency responsible for ensuring compliance with these consumer protection laws is the Consumer Financial Protection Bureau (“CFPB”). The CFPB has broad rule-making, examination and enforcement authority over non-bank automobile finance companies such as us. On August 31, 2015, we became subject to supervision and examination by the CFPB as a “larger participant” in the automobile finance market. In most states and other jurisdictions in which we operate, a consumer credit regulatory agency regulates and enforces laws relating to sales finance companies and consumer lenders or lessors like us. These laws and regulations generally provide for licensing as a sales finance company or consumer lender or lessor, limitations on the amount, duration and charges, including interest rates, requirements as to the form and content of finance contracts and other documentation, and restrictions on collection practices and creditors' rights. In certain jurisdictions, we are subject to periodic examination by regulatory authorities. In Canada, we are subject to both federal and provincial laws and regulations, including the Interest Act, the Consumer Protection Acts and Cost of Credit Disclosure regulations. Additionally, we are subject to certain provincial Consumer Reporting Acts and the Personal Information Protection and Electronic Documents Act, as well as provincial counterparts, which regulates how we can collect, use, and/or disclose consumers' personal information. International Segment In certain countries in the International Segment, we operate in local markets as either banks or regulated finance companies and are subject to legal and regulatory restrictions which vary country to country and which may change from time to time. The regulatory restrictions, among other things, may require that the regulated entities meet certain minimum capital requirements, may restrict dividend distributions and ownership of certain assets, and may require certain disclosures to prospective purchasers and lessees and restrict certain practices related to the servicing of consumer accounts. Competition The automobile finance market is highly fragmented and is served by a variety of financial entities, including the captive finance affiliates of other major automotive manufacturers, banks, thrifts, credit unions, leasing companies and independent finance companies. Many of these competitors have substantial financial resources, highly competitive funding costs and significant scale and efficiency. Capital inflows from investors to support the growth of new entrants in the automobile finance market, as well as growth initiatives from more established market participants has resulted in generally increasing competitive conditions. While we have a competitive advantage when GM-sponsored subvention programs are offered exclusively through us to targeted GM dealers and their customers, when no subvention programs are offered our competitors can often provide financing on terms more favorable to customers or dealers than we may offer. Many of these competitors also have long standing relationships with 6

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. automobile dealerships and may offer the dealerships or their customers other products and services, which we may not currently provide. Employees A t December 31, 2016, we employed 9,000 people, excluding SAIC-GMAC employees. We participate in mandatory national collective bargaining agreements where they are required, and maintain satisfactory working relationships with works councils and trade union representatives where they exist. As of February 7, 2017, the names and ages of our executive officers and their positions with GM Financial are as follows: Name (Age)

Daniel E. Berce (63) Kyle R. Birch (56) Mark F. Bole (53) Steven P. Bowman (49) Chris A. Choate (54) Connie Coffey (45) Michael S. Kanarios (46)

Susan B. Sheffield (50)

Present GMF Position (Effective Date)

President and Chief Executive Officer (2005) Executive Vice President and Chief Operating Officer - North America (2013) President, International Operations (2013) Executive Vice President and Chief Credit and Risk Officer (2005) Executive Vice President and Chief Financial Officer (2005) Executive Vice President, Corporate Controller and Chief Accounting Officer (2014) Executive Vice President and Chief Operating Officer, International Operations (2015)

Executive Vice President and Treasurer (2014)

Position Held During the Past Five Years if other than present GMF position (Effective Date)

Executive Vice President of Dealer Services (2003) Executive Vice President, International Operations for Ally Financial Inc. (2005)

Executive Vice President, Corporate Controller (2012); and Senior Vice President, Accounting and Reporting (2002) Executive Vice President and Chief Financial Officer, International Operations (2013), Vice President and Chief Financial Officer, International Dealer Finance, Ally Financial Inc. (2008) Executive Vice President, Corporate Finance (2008)

Available Information We make available free of charge through our website, www.gmfinancial.com, our public securitization information and all materials that we file electronically with the SEC, including our reports on Form 10-K, Form 10-Q, Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practical after filing or furnishing such material with or to the SEC. We encourage the public to visit our website, as we frequently update and post new information about our company on our website and it is possible that this information could be deemed to be material information. Our website and information included or linked to our website are not part of this Form 10K. The public may read and copy any materials we file with or furnish to the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet website, www.sec.gov, which contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. Item 1A. Risk Factors The profitability and financial condition of our operations are dependent upon the operations of our parent, GM. A material portion of our retail finance business, and substantially all our commercial lending activities, consist of financing associated with the sale and lease of new GM vehicles and our relationship with GM-franchised dealerships. If there were significant changes in GM's liquidity and capital position and access to the capital markets, the production or sales of GM vehicles to retail customers, the quality or resale value of GM vehicles, GM's operations that may require restructuring or rationalization actions, or other factors impacting GM or its products, such changes could significantly affect our profitability, financial condition, and access to the capital markets. In addition, GM sponsors special-rate financing programs available through us. Under these programs, GM makes interest supplements or other support payments to us. These programs increase our financing volume and our share of financed GM vehicle sales. If GM were to adopt marketing strategies in the future that de-emphasized such programs in favor of other incentives, our financing volume could be reduced. There is no assurance that the global automotive market or GM's share of that market will not suffer downturns in the future, and any negative impact could in turn have a material adverse effect on our financial position, liquidity and results of operations. 7

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. We depend on the financial condition of GM dealers. Our profitability is dependent on the financial condition of the GM-franchised dealerships in our commercial lending portfolio, including the levels of inventory dealers carry in response to retail demand for new GM vehicles and used vehicles, and the level of wholesale borrowing required by dealers for inventory acquisitions, construction projects to dealership facilities and working capital. Our business may be negatively affected if, during periods of economic slowdown or recession, dealers reduce borrowing for inventory purchases or for other purposes, or are unable to sell or otherwise liquidate vehicle inventories and repay their wholesale, real estate and other loans to us. Decreased retail demand for GM vehicles can also adversely impact the overall financial condition of GM-franchised dealerships, possibly increasing defaults and net loss rates in our commercial lending portfolio and adversely impacting our ability to grow and, ultimately, our financial condition, liquidity and results of operations. Our ability to continue to fund our business and service our debt is dependent on a number of financing sources and requires a significant amount of cash. We depend on various financing sources, including secured financings, securitization programs and unsecured debt issuances, to finance our loan and lease originations and commercial lending business. Additionally, our ability to make payments on or to refinance our indebtedness depends on our access to the capital markets in the future and our ability to generate cash. Our access to financing sources depends upon our financial position, general market conditions, availability of bank liquidity and the bank regulatory environment, our compliance with covenants imposed under our financing agreements, the credit quality of the collateral we can pledge to support secured financings, and other factors. Changes in GM's and our credit ratings may also impact our access to and cost of financing. There can be no assurance that funding will be available to us through these financing sources or, if available, that the funding will be on acceptable terms. If these financing sources are not available to us on a regular basis for any reason, or we are not otherwise able to generate significant amounts of cash, then we would not have sufficient funds and would be required to revise the scale of the business, including the possible reduction or discontinuation of origination activities, which would have a material adverse effect on our financial position, liquidity and results of operations. In addition, certain of our revolving credit facilities contain various covenants. If an event of default occurs under these agreements, the lenders could elect to declare all amounts outstanding under these agreements to be immediately due and payable, enforce their interests against collateral pledged under these agreements or restrict our ability to obtain additional borrowings under these facilities. Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under existing indebtedness. We currently have a substantial amount of outstanding indebtedness. In addition, we have guaranteed a substantial amount of indebtedness incurred by operating subsidiaries in our International Segment and Canada. Additionally, we have entered into intercompany loan agreements with several of our subsidiaries in Europe and Latin America, providing these companies with access to liquidity to support originations and other activities. Our ability to make payments of principal and interest on, or to refinance, our indebtedness will depend on our future operating performance, and our ability to enter into additional credit facilities and securitization transactions as well as other debt financings, which, to a certain extent, are subject to economic, financial, competitive, regulatory, capital markets and other factors beyond our control. If we are unable to generate sufficient cash flows in the future to service our debt, we may be required to refinance all or a portion of our existing debt or to obtain additional financing. There can be no assurance that any refinancing will be possible or that any additional financing could be obtained on acceptable terms. The inability to service or refinance our existing debt or to obtain additional financing would have a material adverse effect on our financial position, liquidity and results of operations. The degree to which we are leveraged creates risks, including: • we may be unable to satisfy our obligations under our outstanding indebtedness; • we may find it more difficult to fund future credit enhancement requirements, operating costs, tax payments, capital expenditures or general corporate expenditures; • we may have to dedicate a substantial portion of our cash resources to payments on our outstanding indebtedness, thereby reducing the funds available for operations and future business opportunities; and • we may be vulnerable to adverse general economic, capital markets and industry conditions. Our credit facilities may require us to comply with certain financial ratios and covenants, including minimum asset quality maintenance requirements. These restrictions may interfere with our ability to obtain financing or to engage in other necessary or desirable business activities. If we cannot comply with the requirements in our credit facilities, then our lenders may increase our borrowing costs, remove us as servicer or declare the outstanding debt immediately due and payable. If our debt payments were accelerated, any assets pledged to secure these facilities might not be sufficient to fully repay the debt. These lenders may foreclose upon their collateral, 8

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. including the restricted cash in these credit facilities. These events may also result in a default under our senior note indentures. We may not be able to obtain a waiver of these provisions or refinance our debt, if needed. In such case, our financial condition, liquidity and results of operations would materially suffer. Defaults and prepayments on loans and leases purchased or originated by us could adversely affect our operations. Our financial condition, liquidity and results of operations depend, to a material extent, on the performance of loans and leases in our portfolio. Obligors under contracts acquired or originated by us, including dealer obligors in our commercial lending portfolio, may default during the term of their loan or lease. Generally, we bear the full risk of losses resulting from defaults. In the event of a default, the collateral value of the financed vehicle or, in the case of a commercial obligor, the value of the inventory and other commercial assets we finance usually does not cover the outstanding amount due to us, including the costs of recovery and asset disposition. The amounts owed to us by any given dealership or dealership group in our commercial lending portfolio can be significant. The amount of potential loss resulting from the default of a dealer in our commercial lending portfolio can, therefore, be material even after liquidating the dealer's inventory and other assets to offset the defaulted obligation. Additionally, because the receivables in our commercial lending portfolio may include complex arrangements including guarantees, inter-creditor agreements, mortgages and other liens, our ability to recover and dispose of the underlying inventory and other collateral may be time-consuming and expensive, thereby increasing our potential loss. We maintain an allowance for loan losses on our finance receivables which reflects management's estimates of inherent losses for these receivables. If the allowance is inadequate, we would recognize the losses in excess of that allowance as an expense and results of operations would be adversely affected. A material adjustment to our allowance for loan losses and the corresponding decrease in earnings could limit our ability to enter into future securitizations and other financings, thus impairing our ability to finance our business. An increase in defaults would reduce the cash flows generated by us, and distributions of cash to us from our secured debt facilities would be delayed and the ultimate amount of cash distributable to us would be less, which would have an adverse effect on our liquidity. Customer prepayments and dealer repayments on commercial obligations, which are generally revolving in nature, affect the amount of finance charge income we receive over the life of the loans. If prepayment levels increase for any reason and we are not able to replace the prepaid receivables with newlyoriginated loans, we will receive less finance charge income and our results of operations may be adversely affected. A substantial portion of our origination and servicing activities in the North America Segment have historically involved sub-prime automobile receivables. Sub-prime borrowers are associated with higher-than-average delinquency and default rates. The actual rates of delinquencies, defaults, repossessions and losses with respect to those borrowers could also be more dramatically affected by a general economic downturn. While we believe that we effectively manage these risks with our proprietary credit scoring system, risk-based pricing and other underwriting policies, and our servicing and collection methods, no assurance can be given that our methods will be effective in the future. In the event that we underestimate the default risk or underprice contracts that we purchase, our financial position, liquidity and results of operations would be adversely affected. Our operations are subject to regulation, supervision and licensing under various federal, state and local laws and regulations. As an entity operating in the financial services sector, we are required to comply with a wide variety of laws and regulations that may be costly to adhere to and may affect both our operating results and our ability to service our earning assets. Compliance with these laws and regulations requires that we maintain forms, processes, procedures, controls and the infrastructure to support these requirements and these laws and regulations often create operational constraints both on our ability to implement servicing procedures and on pricing. Laws in the financial services industry are designed primarily for the protection of consumers. The failure to comply with these laws could result in significant statutory civil and criminal penalties for us, monetary damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand and valued customer relationships. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") is extensive and significant legislation that, among other things, strengthens the regulatory oversight of securities and capital markets activities by the SEC and increases the regulation of the securitization markets in the U.S. The various requirements of the Dodd-Frank Act may substantially impact the origination, servicing and securitization program of our subsidiaries. The Dodd-Frank Act also created the CFPB, a federal agency that has extensive rulemaking and enforcement authority. The CFPB has indicated an intention to review the actions of indirect auto finance companies such as us with regard to pricing activities 9

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. and issued a bulletin to such lenders on how to limit fair lending risk under the Equal Credit Opportunity Act. We are subject to supervision and examination by the CFPB as a “larger participant” in the automobile finance market. Supervisory and examination powers over nonbank lenders such as us allow the agency to conduct comprehensive and rigorous on-site examinations that could result in enforcement actions, fines, and mandated process, procedure or product-related changes or consumer refunds if violations of law or unfair lending practices are found, which could have a material adverse effect on our financial condition and results of operations. 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. Our profitability is dependent upon retail demand for automobiles and related automobile financing and the ability of customers to repay loans and leases, and our business may be negatively affected during times of low automobile sales, fluctuating wholesale prices and lease residual values, rising interest rates, volatility in currency exchange rates and high unemployment. General We are subject to changes in general economic conditions that are beyond our control. During periods of economic slowdown or recession, delinquencies, defaults, repossessions and losses generally increase. These periods also may be accompanied by increased unemployment rates, decreased demand for automobiles and declining values of automobiles securing outstanding loans and leases, which weakens collateral coverage and increases the amount of a loss in the event of default. Additionally, higher gasoline prices, declining stock market values, unstable real estate values, increasing unemployment levels, general availability of consumer credit and other factors that impact consumer confidence or disposable income could increase loss frequency and decrease demand for automobiles as well as weaken collateral values on certain types of automobiles. In addition, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in our revenue. While we seek to manage these risks through the underwriting criteria and collection methods we employ, no assurance can be given that these criteria or methods will afford adequate protection against these risks. Any sustained period of increased delinquencies, defaults, repossessions or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operations and our ability to enter into future securitizations and credit facilities. Wholesale Auction Values We sell repossessed automobiles at wholesale auction markets located throughout the countries where we have operations. Auction proceeds from the sale of repossessed vehicles and other recoveries are usually not sufficient to cover the outstanding balance of the contract, and the resulting deficiency is charged off. We also sell automobiles returned to us at the end of lease terms. Decreased auction proceeds resulting from the depressed prices at which used automobiles may be sold during periods of economic slowdown or low retail demand will result in higher losses for us. Furthermore, depressed wholesale prices for used automobiles may result from significant liquidations of rental or fleet inventories, financial difficulties of new vehicle manufacturers, discontinuance of vehicle brands and models and increased volume of trade-ins due to promotional programs offered by new vehicle manufacturers. Additionally, higher gasoline prices may decrease the wholesale auction values of certain types of vehicles. Leased Vehicle Residual Values and Return Rates We project expected residual values and return volumes of the vehicles we lease. At the inception of a lease, we determine the amount of lease payments we charge our lease customer based, in part, on our estimated residual value. Actual proceeds realized by us upon the sale of a returned leased vehicle at lease termination may be lower than the amount projected, which reduces the profitability of the lease transaction to us. Among the factors that can affect the value of returned lease vehicles are the volume of vehicles returned, economic conditions and the quality or perceived quality, safety or reliability of the vehicles. Actual return volumes may be higher than expected and can be influenced by contractual lease-end values relative to then-existing market values, marketing programs for new vehicles and general economic conditions. All of these, alone or in combination, have the potential to adversely affect the profitability of our lease program and financial results. Interest Rates Our profitability may be directly affected by the level of and fluctuations in interest rates, which affect the gross interest rate spread we earn on our portfolio. As the level of interest rates change, our net interest margin on new originations 10

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. either increases or decreases since the rates charged on our loans and leases are generally fixed rates and are limited by market and competitive conditions, restricting our opportunity to pass on increased interest costs to the customer. Foreign Currency Exchange Rates We are exposed to the effects of changes in foreign currency exchange rates and availability of currencies. Changes in currency exchange rates cannot always be predicted or hedged. As a result, unfavorable changes in exchange rates could have an adverse effect on our financial condition, liquidity and results of operations. Labor Market Conditions Competition to hire and retain personnel possessing the skills and experience required by us could contribute to an increase in our employee turnover rate. High turnover or an inability to attract and retain qualified personnel could have an adverse effect on our delinquency, default and net loss rates, our ability to grow and, ultimately, our financial condition, liquidity and results of operations. We do not control the operations of SAIC-GMAC, and we are subject to the risks of operating in China. We do not control the operations of SAIC-GMAC, as it is a joint venture, and we do not have a majority interest in the joint venture. In the joint venture, we share ownership and management with other parties who may not have the same goals, strategies, priorities, or resources as we do and may compete with us outside the joint venture. Joint ventures are intended to be operated for the equal benefit of all co-owners, rather than for our exclusive benefit. Operating a business as a joint venture often requires additional organizational formalities, as well as time-consuming procedures for sharing information and making decisions. We are required to pay more attention to our relationship with our co-owners as well as with the joint venture, and if a co-owner changes or relationships deteriorate, our success in the joint venture may be materially adversely affected. The benefits from a successful joint venture are shared among the co-owners, and as such, we do not receive the full benefits from a successful joint venture. As a result of having limited control over the actions of the joint venture, we may be unable to prevent misconduct or other violations of applicable laws. Moreover, the joint venture may not follow the same requirements regarding internal controls and internal control over financial reporting that we follow. To the extent another party makes decisions that negatively impact the joint venture or internal control issues arise within the joint venture, we may have to take responsive or other actions or we may be subject to penalties, fines or other related actions for these activities that could have a material adverse impact on our business, financial condition and results of operations. In addition, we are subject to the risks of operating in China. The automotive finance market in China is highly competitive and subject to significant governmental regulation. As the Chinese market continues to develop, we anticipate that additional competitors, both international and domestic, will seek to enter the Chinese market and that existing market participants will act aggressively to increase their market share. Increased competition may result in reduced margins and our inability to gain or hold market share. In addition, business in China is sensitive to economic and market conditions that drive sales volume in China. If SAIC-GMAC is unable to maintain its position in the Chinese market or if vehicle sales in China decrease or do not continue to increase, our business and financial results could be materially adversely affected. A security breach or a cyber-attack could adversely affect our business. A security breach or cyber-attack of our computer systems could interrupt or damage our operations or harm our reputation. Risks of security breaches and cyber-attacks may increase in the future as we increase our web-based product offerings, such as online payment options, and expand our internal usage of web-based products and applications. If third parties or our employees are able to penetrate our network security or otherwise misappropriate our customers' personal information or contract information, or if we give third parties or our employees improper access to our customers' personal information or contract information, we could be subject to liability. This liability could include identity theft or other similar fraud-related claims. This liability could also include claims for other misuses or losses of personal information, including for unauthorized marketing purposes. Other liabilities could include claims alleging misrepresentation of our privacy and data security practices. We could also be subject to regulatory action in certain jurisdictions, particularly in North America and Europe. We rely on encryption and authentication technology licensed from third parties to provide the security and authentication necessary to effect secure online transmission of confidential consumer information. Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments may result in a compromise or breach of the algorithms that we use to protect sensitive customer transaction data. A party who is able to circumvent our security measures could misappropriate proprietary information or cause interruptions in our operations. We may be required to expend capital and other resources to protect against such security breaches or cyber-attacks or to alleviate problems caused by such breaches or attacks and our insurance coverage may not be adequate to cover all the costs related to such breaches or attacks. Our security measures are designed to protect against security breaches and cyber-attacks, but our failure to prevent such security breaches and cyber-attacks could subject us to liability, decrease our profitability and damage our reputation. Our operations outside the U.S. expose us to additional risks. The international operations are subject to many of the same risks as our U.S. operations. In addition to those risks, the international operations, including the operations of SAIC-GMAC, are subject to certain additional risks, such as the following: 11

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. • • • • • • • • •

economic downturns in foreign countries or geographic regions where we have significant operations, such as Europe, Brazil and China; multiple foreign regulatory requirements that are subject to change; difficulty in establishing, staffing and managing foreign operations; differing labor regulations; consequences from changes in tax laws; restrictions on the ability to repatriate profits or transfer cash into or out of foreign countries and the tax consequences of such repatriations and transfers; fluctuations in foreign currencies; political and economic instability, natural calamities, war, and terrorism; and compliance with laws and regulations applicable to international operations, including anti-corruption laws such as the Foreign Corrupt Practices Act and international trade and economic sanctions laws.

The effects of these risks may, individually or in the aggregate, adversely affect our business. Item 2. Properties Our executive offices are located in Fort Worth, Texas. We operate credit centers, collections and customer service centers and administrative offices in leased facilities in North America, Europe and Latin America. SAIC-GMAC operates in offices located in China. Item 3. Legal Proceedings Refer to Note 11 to our consolidated financial statements for information relating to legal proceedings. Item 4. Mine Safety Disclosure Not applicable. PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities All of our issued and outstanding equity securities are owned by a single holder, GM, and there is not an established public trading market for our common stock. We have never paid cash dividends on our common stock. We presently intend to retain future earnings, if any, for use in the operation of the business and do not anticipate paying any cash dividends in the foreseeable future; provided, however, that we may reexamine this policy with our sole shareholder at any time. Item 6. Selected Financial Data Omitted in accordance with General Instruction I to Form 10-K. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations This MD&A should be read in conjunction with the accompanying consolidated financial statements. Critical Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates, due to inherent uncertainties in making estimates, and those differences may be material. Refer to Note 1 to our consolidated financial statements for our significant accounting policies related to our critical accounting estimates. The accounting estimates that we believe are the most critical to understanding and evaluating our reported financial results include the following: Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans which are carried at amortized cost, net of allowance for loan losses. These loans are divided 12

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. among pools based on common risk characteristics, such as internal credit score, origination period, delinquent status and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of their prior credit usage, structure of the loan and other information. The output of the scorecards rank-order consumers from those that are most likely to pay to those that are least likely to pay. By further dividing the portfolio into pools based on internal credit scores we are better able to distinguish expected credit performance for different credit risks. These pools are collectively evaluated for impairment based on a statistical calculation, which is supplemented by management judgment. The allowance is aggregated for each of the pools. We use a combination of forecasting methodologies to determine the allowance for loan losses, including roll rate modeling and static pool modeling techniques. A roll rate model is generally used to project near term losses and static pool models are generally used to project losses over the remaining life. Probable losses are estimated for groups of accounts aggregated by past-due status and origination month. Generally, up to the last 10 years of loss experience is evaluated. Recent performance is more heavily weighted when determining the allowance to result in an estimate that is more reflective of the current internal and external environments. Factors that are considered when estimating the allowance include historical delinquency migration to loss, probability of default ("PD") and loss given default ("LGD"). PD and LGD are specifically estimated for each monthly vintage (i.e., group of originations) in cases where vintage models are used. PD is estimated based on expectations that are aligned with internal credit scores. LGD is projected based on historical trends experienced over the last 10 years, weighted toward more recent performance in order to consider recent market supply and demand factors that impact wholesale used vehicle pricing. While forecasted probable losses are quantitatively derived, we assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is more reflective of losses that are expected to occur in the current environment. We also use historical charge-off experience to determine a loss confirmation period ("LCP"). The LCP is a key assumption within our models and represents the average amount of time between when a loss event first occurs to when the receivable is charged-off. This LCP is the basis of our allowance and is applied to the forecasted probable credit losses to determine the amount of losses we believe exist at the balance sheet date. We believe these factors are relevant in estimating incurred losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current economic environment. Assumptions regarding credit losses and LCPs are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumption or LCPs increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. Finance receivables that are considered impaired, including troubled debt restructurings ("TDRs"), are individually evaluated for impairment. In assessing the risk of individually impaired loans such as TDRs, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. We believe that the allowance for loan losses on retail finance receivables is adequate to cover probable losses inherent in our retail finance receivables; however, because the allowance for loan losses is based on estimates, there can be no assurance that the ultimate charge-off amount will not exceed such estimates or that our credit loss assumptions will not increase. A 10% and 20% increase in cumulative charge-offs after recoveries on the portfolio over the LCP would increase the allowance for loan losses at December 31, 2016 by $79 million and $159 million. Commercial Finance Receivables and Allowance for Loan Losses Commercial finance receivables are carried at amortized cost, net of allowance for loan losses. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable credit losses inherent in the commercial finance receivables. For the International Segment, we established the allowance for loan losses based on historical loss experience. Since we began offering commercial lending in the North America Segment in 2012, we performed an analysis of the experience of comparable commercial lenders in order to estimate probable credit losses inherent in our portfolio. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally-developed risk rating system. Based upon our risk ratings, we also determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is segregated for separate monitoring. 13

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. We believe that the allowance for loan losses for commercial finance receivables is adequate to cover probable losses inherent in our portfolio; however, because the allowance for loan losses is based on estimates, there can be no assurance that the ultimate charge-off amount will not exceed such estimates or that our credit loss assumptions will not increase. A 10% and 20% increase in cumulative charge-offs on the commercial finance receivable portfolio over the LCP would increase the allowance for loan losses at December 31, 2016 by $5 million and $10 million. Expected losses on our commercial loans are lower than expected losses on our retail loans because commercial loans are secured not only by the financed vehicles, but also other dealership assets and often the continuing personal guarantee of the dealers' owners. In addition, automotive manufacturers are typically obligated to repurchase new vehicle inventory within certain mileage and model year parameters set by applicable state law in the event that we repossess the dealership’s inventory, thus potentially reducing any loss due to dealer default. Residual Value of Leased Vehicles We have investments in leased vehicles recorded as operating leases. Each leased asset in our portfolio represents a vehicle that we own and have leased to a customer. At the time we purchase a lease, we establish an expected residual value for the vehicle at the end of the lease term, which typically ranges from two to five years. The customer is obligated to make payments during the term of the lease for the difference between the purchase price and the contract residual value plus a money factor. However, since the customer is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle at the end of the lease term and the value of the vehicle is lower than the residual value estimated at contract inception. At December 31, 2016, the estimated residual value of our leased vehicles at the end of the lease term was $23.6 billion. Depreciation reduces the carrying value of each leased asset in our operating lease portfolio over time from its original acquisition value to its expected residual value at the end of the lease term. We periodically perform a review of the adequacy of the depreciation rates. If we believe that the expected residual values for our leased assets have changed, we revise the depreciation rate to ensure that our net investment in operating leases will be adjusted to reflect our revised estimate of the expected residual value at the end of the lease term. Such adjustments to the depreciation rate would result in a change in the depreciation expense on the leased assets, which is recorded prospectively on a straight-line basis. The effect of a 1% change in our assumption regarding residual values would increase or decrease depreciation expense on the operating lease portfolio over the remaining term of the leases as follows: Impact to Depreciation Expense

Cars Trucks Crossovers

$

53 52 131

Total

$

236

In addition to estimating the residual value at lease termination, we also evaluate the carrying value of the operating lease assets, check for indicators of impairment and test for impairment to the extent necessary in accordance with applicable accounting standards. A leased asset is considered impaired if impairment indicators exist and the undiscounted expected future cash flows (including the expected residual value) are lower than the carrying value of the asset. We believe no impairment indicators existed during 2016, 2015 or 2014. Goodwill The excess of the purchase price of the merger with GM over the fair value of the net assets acquired was recorded as goodwill, and was attributed to the North America reporting unit, which was our only reporting unit at that time. With the acquisition of the international operations, we added two additional reporting units: Latin America and Europe. The excess of the purchase price of the acquisition of the international operations over the fair value of the net assets acquired was all attributed to the Latin America reporting unit. We performed our annual goodwill impairment testing as of October 1, 2016 for each reporting unit. For the North America reporting unit, which represents 92% of our goodwill balance, we determined the fair value with consideration to valuations under the income approach, weighted 75%, and the market approach, weighted 25%. The income approach evaluates the cash flow of the reporting unit over a specified time, discounted at an appropriate market rate to arrive at an indication of the most probable selling price. Factors contributing to the determination of the reporting unit's operating performance were historical performance and management's estimates of future performance. The market approach considers trading prices of securities issued by comparable companies as multiples of historical earnings and forecast earnings. The results of the first step of the impairment test indicated that the fair value exceeded the carrying value; therefore, it was not necessary to perform the second step analysis. 14

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. If actual market conditions are less favorable than those we and the industry have projected, or if events occur or circumstances change that would reduce the fair value of our goodwill below the amount reflected in the balance sheet, we may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. Income Taxes We account for income taxes on a separate return basis using an asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between financial statements' carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. We are subject to income tax in the U.S. and various other state and foreign jurisdictions. Since October 1, 2010, we have been included in GM's consolidated U.S. federal income tax returns. As referred to in Note 14 - "Income Taxes," we have a tax sharing agreement with GM for our U.S. operations. In the ordinary course of business, there may be transactions, calculations, structures and filing positions where the ultimate tax outcome is uncertain. At any point in time, multiple tax years are subject to audit by various taxing jurisdictions and we record liabilities for estimated tax results based on the requirements of the accounting for uncertainty in income taxes. Management believes that the estimates it records are reasonable. However, due to expiring statutes of limitations, audits, settlements, changes in tax law or new authoritative rulings, no assurance can be given that the final outcome of these matters will be comparable to what was reflected in the historical income tax provisions and accruals. We may need to adjust our accrued tax assets or liabilities if actual results differ from estimated results or if we adjust the assumptions used in the computation of the estimated tax results in the future. These adjustments could materially impact the effective tax rate, earnings, accrued tax balances and cash. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted is based on an evaluation of possible sources of taxable income and also considers all available positive and negative evidence factors. Our accounting for deferred tax consequences represents our best estimate of future events. Changes in our current estimates, due to unanticipated market conditions or events, could have a material effect on our ability to utilize deferred tax assets.

15

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. 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 is derived by translating current year results at the average of prior year exchange rates, and is driven by the change in 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. Average balances are calculated using daily balances, where available. Otherwise average balances are calculated using monthly ending balances. 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 year ended December 31, 2016; however, this result has adversely impacted the British Pound and the uncertainty has put strain on the U.K. automotive industry. While we anticipate the impacts of Brexit to continue through 2017, we do not expect such impacts to have a material impact on our results of operations. Year Ended December 31, 2016 compared to Year Ended December 31, 2015 Average Earning Assets Years Ended December 31, 2016 North America Average retail finance receivables

$

Average commercial finance receivables Average finance receivables Average leased vehicles, net

2015 Total

North America

11,233

$ 31,016

$ 15,688

4,934

4,484

9,418

24,717

15,717

40,434

19,783

International $

International $

Total

11,509

$ 27,197

$

4,732

3,465

4,364

7,829

1,926

19,153

15,873

35,026

6,658

Total change

FX $

(913)

$

%

3,819

14.0%

(337)

1,589

20.3%

(1,250)

5,408

15.4%

161

27,948

13,033

57

13,090

14,932

(74)

14,858

113.5%

$

52,504

$

15,878

$ 68,382

$ 32,186

$

15,930

$ 48,116

$

21,590

$ (1,324)

$ 20,266

42.1%

Retail finance receivables purchased $

11,509

$

6,545

$ 18,054

$ 10,931

$

6,606

$ 17,537

$

1,129

$

(612)

$

517

2.9%

Average new retail loan size (in dollars)

$ 26,523

$

11,861

$ 20,121

$

78

$ 20,199

$

5,233

$

(55)

$

5,178

25.6%

$ 36,627

$

20,449

Average earning assets

27,787

2016 vs. 2015 Change excluding FX

$

28,226

$

11,407

Leased vehicles purchased $

25,151

$

226

Average new lease size (in dollars) $

37,540

$

21,978

$ 25,377

Average finance receivables increased in the North America Segment as a result of the continued increase of our share of GM's business in that segment. Average finance receivables 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 2016 decreased to 7.0% from 8.0% 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. 16

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Revenue Years Ended December 31, 2016 North America

2015

International

North America

Total

2016 vs. 2015

International

Change excluding FX

Total

Total change

FX

%

Finance charge income Retail finance receivables $ Commercial finance receivables

1,826

$

1,063

$

2,889

$

1,803

$

1,174

$

156

$

284

$

440

$

103

$

301

Leased vehicle income

$

5,886

$

39

$

5,925

$

2,794

$

13

Other income

$

80

$

224

$

304

$

77

$

189

$ 2,977

$

$

3

$ (91)

$

(88)

(3.0)%

404

$

63

$ (27)

$

36

8.9 %

$ 2,807

$

3,137

$ (19)

$

3,118

111.1 %

$

$

73

$ (35)

$

38

14.3 %

266

Effective yield - retail finance receivables

9.2%

9.5%

9.3%

11.5%

10.2%

11.0%

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 2016, compared to 2015, as the growth in the portfolio was substantially 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 Years Ended December 31, 2016 North America Operating expenses

2015

International

$

891

$

Leased vehicle expenses $

4,499

Provision for loan losses $

566

$

1,490

$

735

$

$

30

$

4,529

$

2,190

$

103

$

669

$

466

$

2,108

$

$

1,481

$

627

Average debt outstanding

$ 50,216

$

13,944

2.9%

International

599

Interest expense(a)

Effective rate of interest on debt

North America

Total

4.5%

$ 64,160 3.3%

2016 vs. 2015 Change excluding FX

Total

Total change

FX

%

558

$

1,293

$

229

$

(32)

$

197

15.2%

$

10

$

2,200

$

2,342

$

(13)

$

2,329

105.9%

$

158

$

624

$

52

$

(7)

$

45

7.2%

921

$

695

$

1,616

$

544

$

(52)

$

492

30.4%

$ 31,130

$

13,489

$ 44,619

$

20,562

$

(1,021)

$ 19,541

43.8%

3.0%

5.2%

3.6%

_________________ (a) Amounts do not reflect allocation of senior note interest expense, and therefore do not agree with amounts presented in Note 16 - "Segment Reporting and Geographic Information" in our consolidated financial statements in this Form 10-K. 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 a percentage of average earning assets decreased to 2.2% for 2016 from 2.7% for 2015, primarily due to efficiency gains achieved through higher earning asset levels. 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 a percentage of average retail finance receivables, the provision for retail loan losses was 2.1% and 2.3% for 2016 and 2015. The provision for commercial loan losses was insignificant for 2016 and 2015. 17

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. 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 20.9% and 26.5% of income before income taxes and equity income for 2016 and 2015. The decrease in the effective tax rate is due primarily to the recognition of currency losses arising from the ownership realignment of certain wholly-owned foreign subsidiaries and an increase in certain U.S. federal tax credits. Other Comprehensive Loss Foreign Currency Translation Adjustment Foreign currency translation adjustments included in other comprehensive loss were $144 million and $669 million for 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. Credit Quality Retail Finance Receivables

December 31, 2016 North America

December 31, 2015

International

Total

North America

International

Total

Retail finance receivables, net of fees Less: allowance for loan losses

$

21,786 (666)

$

11,124 (127)

$

32,910 (793)

$

18,148 (618)

$

10,976 (117)

$

29,124 (735)

Retail finance receivables, net

$

21,120

$

10,997

$

32,117

$

17,530

$

10,859

$

28,389

1,097,207 1,611,276 2,708,483 955,094 1,563,831 2,518,925 Number of outstanding contracts Average amount of outstanding contracts $ 19,856 $ 6,904 $ 12,151 $ 19,001 $ 7,019 $ 11,562 (in dollars)(a) Allowance for loan losses as a percentage 3.1% 1.1% 2.4% 3.4% 1.1% 2.5% of retail finance receivables, net of fees _________________ (a) Average amount of outstanding contracts consists of retail finance receivables, net of fees, divided by number of outstanding contracts. The decrease in the average amount of outstanding contracts in the International Segment is due primarily to changes in foreign currency exchange rates. At December 31, 2016, the allowance for loan losses for the North America Segment as a percentage of retail finance receivables, net of fees, decreased from the level at December 31, 2015 consistent with the improved credit mix in our portfolio resulting from our expansion of prime lending. Delinquency The following is a summary of the contractual amounts of delinquent retail finance receivables, which is not materially different than the recorded investment, that are (i) more than 30 days delinquent, but not yet in repossession, and (ii) in repossession, but not yet charged off: December 31, 2016 North America

31 - 60 days Greater than 60 days Total finance receivables more than 30 days delinquent In repossession Total finance receivables more than 30 days delinquent or in repossession

$

1,150 432

International

$

1,582 43

$

1,625

$

Total

85 110

$ 1,235 542

195 8

1,777 51

203

$ 1,828

December 31, 2015 Percent of Contractual Amount Due

3.7% 1.7

North America

$

5.4 0.1

5.5% 18

1,150 389

International

$

1,539 42

$

1,581

$

Total

87 92

$ 1,237 481

179 4

1,718 46

183

$ 1,764

Percent of Contractual Amount Due

4.2% 1.6

5.8 0.2

6.0%

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Deferrals In accordance with our policies and guidelines in the North America Segment, we, at times, offer payment deferrals to retail consumers, 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 2016 and 2015. Deferrals in the International Segment are insignificant. Troubled Debt Restructurings Refer to Note 4 - "Finance Receivables" to our consolidated financial statements for further discussion of TDRs. Net Charge-offs The following table presents charge-off data with respect to our retail finance receivables portfolio: Years Ended December 31, 2016 North America

Charge-offs Less: recoveries

$

1,019 (508)

2015

International

$

152 (51)

North America

Total

$

1,171 (559)

$

2014

International

859 (439)

$

North America

Total

137 (47)

$ 996 (486)

$

776 (417)

International

$

138 (53)

Total

$

914 (470)

$ 511 $ 101 $ 612 $ 420 $ 90 $ 510 $ 359 $ 85 $ 444 Net charge-offs Net charge-off percentage(a) 2.6% 0.9% 2.0% 2.7% 0.8% 1.9% 2.9% 0.7% 1.8% Recovery percentage(b) 52.7% 56.4% 57.3% _________________ (a) Net 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

December 31, 2016 North America

December 31, 2015

International

Total

North America

International

Total

Commercial finance receivables, net of fees

$

$

4,596 (20)

$

11,123 (50)

$

4,051 (23)

$

4,388 (24)

$

Less: allowance for loan losses Total commercial finance receivables, net

6,527 (30)

8,439 (47)

$

6,497

$

4,576

$

11,073

$

4,028

$

4,364

$

8,392

Number of dealers Average carrying amount per dealer Allowance for loan losses as a percentage of commercial finance receivables, net of fees

792 $

8 0.5%

2,150 $

2 0.4%

2,942 $

4 0.4%

656 $

6 0.6%

2,139 $

2 0.5%

2,795 $

3 0.6%

There were insignificant charge-offs of commercial finance receivables during 2016, 2015, and 2014. At December 31, 2016 and 2015, substantially all of our commercial finance receivables were current with respect to payment status and none were classified as TDRs. Leased Vehicles At December 31, 2016 and 2015, 98.8% and 98.7% 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. 19

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. 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. 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 longterm 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 2016, net cash provided by operating activities increased compared to 2015 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 2016, net cash used in investing activities increased compared to 2015 due to an increase in purchases of leased vehicles of $4.3 billion and an increase in net fundings of commercial finance receivables of $2.0 billion, partially offset by increased collections on retail finance receivables of $1.4 billion, and an increase in proceeds received on terminated leases of $1.5 billion. Additionally, $924 million of net cash was used for the purchase of our equity interest in SAIC-GMAC in 2015. During 2016, net cash provided by financing activities increased compared to 2015 due primarily to an increase in borrowings, net of repayments, of $767 million offset by a $649 million capital contribution received from GM in 2015. Liquidity Cash and cash equivalents(a)

$

$

Borrowing capacity on unpledged eligible assets Borrowing capacity on committed unsecured lines of credit Borrowing capacity on the Junior Subordinated Revolving Credit Facility Available liquidity

3,201 9,506 445 1,000

3,061 9,697 904 1,000

$

14,152

$

14,662

December 31, 2016

December 31, 2015

_________________ (a) Includes $839 million and $756 million in unrestricted cash outside of the U.S. at December 31, 2016 and 2015. This cash is considered to be indefinitely invested based on specific plans for reinvestment of these earnings. During 2016 available liquidity decreased due primarily to increased credit facility utilization due to asset growth. We have the ability to borrow up to $1.0 billion under GM's three-year, $4.0 billion unsecured revolving credit facility and up to $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 December 31, 2016, we had no amounts borrowed under either of GM's unsecured revolving credit facilities. Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Rating (“Fitch”), Moody’s Investor Service (“Moody’s”) and Standard & Poor’s (“S&P”). The credit ratings assigned to us from all the credit rating agencies are closely associated with their opinions on GM. The following table summarizes our credit ratings at February 1, 2017: DBRS Limited Fitch Moody’s S&P

Company Rating

Bond Rating

Outlook

BBB BBBBaa3 BBB

BBB BBBBaa3 BBB

Stable Positive Stable Stable

Ratings actions taken by each of the credit rating agencies from January 1, 2016 through February 1, 2017 were as follows: (i) DBRS Limited upgraded our company rating and bond rating to BBB from BBB(low) and revised their outlook to Stable from Positive in March 2016; (ii) Fitch revised their outlook to Positive from Stable in June 2016; (iii) Moody’s revised their outlook to Positive from Stable in February 2016, and upgraded our company rating and bond rating to Baa3 from Ba1 and revised their 20

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. outlook to Stable in January 2017; and (iv) S&P revised their outlook to Positive from Stable in April 2016, and upgraded our company and bond rating to BBB from BBB- and revised their outlook to Stable in January 2017. 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. At December 31, 2016, credit facilities consist of the following: Facility Type

Facility Amount

Revolving retail asset-secured facilities(a) Revolving commercial asset-secured facilities(b)

$

Advances Outstanding

21,473 4,305

Total secured Unsecured committed facilities(c) Unsecured uncommitted facilities(d) Total unsecured Junior Subordinated Revolving Credit Facility

$

8,981 836

25,778

9,817

1,431 2,368

986 2,368

3,799

3,354

1,000



$ 30,577 $ 13,171 Total _________________ (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 $329 million in advances outstanding and $633 million in unused borrowing capacity on these facilities at December 31, 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 December 31, 2016. Refer to Note 8 - "Debt" to our consolidated financial statements 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

2012 2013 2014 2015 2016

Maturity Date (a)

February 2020 - May 2020 July 2020 - October 2021 April 2019 - September 2022 July 2019 - December 2023 April 2018 - November 2024

Total active securitizations Debt issuance costs

Note Balance At December 31, 2016

Original Note Issuance (b)

$ $ $ $ $

2,300 5,655 10,005 14,348 17,786

291 1,054 3,370 9,056 15,745 $

29,516 (63)

$

29,453

_________________ (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 variable interest entities ("VIEs") that meet the requirements to be consolidated in our financial statements. See Note 9 - "Variable Interest Entities" to our consolidated financial statements 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 December 31, 2016, the par value of our outstanding senior notes was $29.0 billion. 21

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. We issue other unsecured debt through commercial paper offerings and other non-bank funding sources primarily in the International Segment. At December 31, 2016, we had $780 million of this type of unsecured debt outstanding. During 2015, we began accepting deposits from retail banking customers in Germany. At December 31, 2016, the outstanding balance of these deposits was $1.9 billion, of which 42% were overnight deposits. Support Agreement In September 2016, in order to maintain our leverage ratio in line with the applicable ratio set in the GM Support Agreement, we borrowed $415 million on the Junior Subordinated Revolving Credit Facility. We repaid this borrowing plus interest during the fourth quarter of 2016. At December 31, 2016, our earning assets leverage ratio was 10.4 and the applicable ratio was 11.5. Refer to Note 2 - "Related Party Transactions" to our consolidated financial statements for more information. Contractual Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt and lease obligations: Years Ending December 31, 2017

Operating leases Secured debt Unsecured debt Interest payments(a)

2018

2019

2020

2021

Thereafter

Total

$

38 21,268 7,328 1,624

$

45 11,573 4,167 1,204

$

41 4,880 6,351 799

$

37 1,264 4,650 573

$

35 348 4,750 376

$

161 — 7,791 793

$

357 39,333 35,037 5,369

$

30,258

$

16,989

$

12,071

$

6,524

$

5,509

$

8,745

$

80,096

_________________ (a) Interest payments were determined using the interest rate in effect at December 31, 2016 for floating rate debt and the contractual rates for fixed rate debt. Interest payments on floating rate tranches of the securitization notes payable were converted to a fixed rate based on the floating rate plus any expected hedge payments. At December 31, 2016, we had liabilities associated with uncertain tax positions of $142 million, including penalties and interest. The table above does not include these liabilities since it is impracticable to estimate the future cash flows associated with these amounts. Under our tax sharing arrangement with GM, we are responsible for our tax liabilities as if we filed separate returns. As of December 31, 2016, we have no accrued liability to GM. Refer to Note 14 - "Income Taxes" to our consolidated financial statements for more information. Item 7A. Quantitative and Qualitative Disclosure About Market Risk Overview We are exposed to a variety of risks in the normal course of our business. Our financial condition depends on the extent to which we effectively identify, assess, monitor and manage these risks. The principal types of risk to our business include: • Market risk - the possibility that changes in interest and currency exchange rates will adversely affect our cash flow and economic value; • Counterparty risk - the possibility that a counterparty may default on a derivative contract or cash deposit or will fail to meet its lending commitments to us; • Credit risk - the possibility of loss from a customer's failure to make payments according to contract terms; • Residual risk - the possibility that the actual proceeds we receive at lease termination will be lower than our projections or return volumes will be higher than our projections; • Liquidity risk - the possibility that we may be unable to meet all of our current and future obligations in a timely manner; and • Operating risk - the possibility of errors relating to transaction processing and systems, actions that could result in compliance deficiencies with regulatory standards or contractual obligations and the possibility of fraud by our employees or outside persons. We manage each of these types of risk in the context of its contribution to our overall global risks. We make business decisions on a risk-adjusted basis and price our services consistent with these risks. A discussion of market risk (including interest and currency rate risk), counterparty risk, and operating risk follows. Market Risk We seek to minimize volatility in our earnings from changes in interest rates and foreign currency exchange rates. Our strategies to manage market risk are approved by our International and North America Asset Liability Committees (“ALCO”). 22

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. In 2015, we expanded our ALCO to incorporate more asset liability management strategies as the composition of sources of debt evolved to support growth in our earning assets. Our Corporate Treasury group is responsible for the development of our interest rate and liquidity management policies as presented to the ALCO. Interest Rate Risk We depend on accessing the capital markets to fund asset originations. We are exposed to interest rate risks as our financial assets and liabilities have different behavioral characteristics that may impact our financial performance. These differences may include tenor, yield, re-pricing timing, and prepayment expectations. Our assets are primarily comprised of fixed-rate retail installment loans and operating lease contracts under which customers typically make equal monthly payments over the life of the contracts. Our commercial finance receivables are primarily originated to finance new and used vehicles held in dealers’ inventory and generally require dealers to pay a floating rate of interest. These balances expand and contract with car sales and are revolving in nature. Our debt includes long-term unsecured debt and securitization notes payable. Our senior note unsecured debt issuances have tenors of up to ten years. The majority of these debt instruments are fixed-rate and pay equal interest payments over the life of the debt and a single principal payment at maturity. Our securitization notes payable are primarily fixed-rate and amortize as the underlying assets pay down. We manage interest rate risk with the objective of optimizing earnings performance while avoiding excessive financial risks and market-related earnings volatility. We measure and monitor interest rate risk primarily through key risk metrics such as duration gap, economic value of equity sensitivity and net interest income sensitivity. When appropriate, we use derivatives to manage interest rate risk; however, we do not engage in any speculative trading in derivatives. Swap Agreements We utilize interest rate swap agreements to convert certain floating rate exposures to fixed rate or certain fixed-rate exposures to floating rate in order to manage our interest rate exposure within levels established by the ALCO. Management monitors our hedging activities to ensure that the value of derivative financial instruments, their correlation to the contracts being hedged and the amounts being hedged continue to provide effective protection against interest rate risk. However, there can be no assurance that our strategies will be effective in minimizing interest rate risk or that increases in interest rates will not have an adverse effect on our profitability.

23

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. The following table provides information about our interest rate-sensitive financial instruments by expected maturity date as of December 31, 2016: 2017

2018

2019

2020

2021

Thereafter

Fair Value

Assets Retail finance receivables Principal amounts

$

Weighted-average annual percentage rate

12,978

$

8.26%

9,169

$

8.17%

5,866

$

8.10%

3,189

$

8.05%

1,425

$

8.28%

559

$

32,067

$

11,073

$

67

$

9,812

$

29,545

$

29,182

$

3,354

$

1,902

$

782

$

315

10.51%

Commercial finance receivables Principal amounts

$

Weighted-average annual percentage rate

10,754

$

5.07%

116

$

4.13%

115

$

4.13%

107

$

4.17%

161

$

4.20%

144 4.16%

Interest rate swaps Notional amounts

$

2,626

$

5,891

$

2,830

$

851

$

10

$

1

Average pay rate

1.27%

1.27%

1.18%

1.11%

4.38%

3.05%

Average receive rate

1.49%

1.77%

1.72%

1.67%

5.85%

3.86%

Liabilities Secured debt Revolving credit facilities Principal amounts

$

Weighted-average interest rate

8,582

$

2.60%

873

$

5.56%

314

$

5.78%

41

$

9.48%

7

$

8.65%

— —%

Securitization notes payable Principal amounts

$

Weighted-average interest rate

12,686

$

1.94%

10,700

$

2.10%

4,566

$

2.38%

1,223

$

2.85%

341

$

2.80%

— —%

Unsecured debt Senior notes Principal amounts

$

Weighted-average interest rate

2,854

$

3.48%

3,086

$

3.08%

5,877

$

2.65%

4,650

$

3.02%

4,750

$

3.83%

7,791 3.81%

Credit facilities Principal amounts

$

Weighted-average interest rate

2,633

$

7.59%

433

$

6.42%

288

$

3.08%



$

—%



$

—%

— —%

Retail customer deposits Principal amounts

$

Weighted-average interest rate

1,342

$

1.21%

400

$

1.39%

153

$

1.17%



$

—%



$

—%

— —%

Other unsecured debt Principal amounts

$

Weighted-average interest rate

499

$

12.52%

248

$

13.22%

33

$

11.18%



$

—%



$

—%

— —%

Interest rate swaps Notional amounts

$

1,299

$

5,410

$

2,219

$

1,631

$

3,558

$

3,200

Average pay rate

2.45%

3.25%

4.03%

4.62%

3.83%

5.63%

Average receive rate

2.37%

2.90%

3.40%

3.68%

3.42%

4.58%

The impact of the discount rate, prepayment and credit loss assumptions is consistent with assumptions applied to interest rate sensitive assets and liabilities reported at December 31, 2015. Finance receivables, both retail and commercial, are estimated to be realized by us in future periods using discount rate, prepayment and credit loss assumptions similar to our historical experience. Notional amounts on interest rate swap agreements are based on contractual terms. Revolving credit facilities and securitization notes payable amounts have been classified based on expected payoff. Senior notes, credit facilities, retail customer deposits and other unsecured debt principal amounts have been classified based on maturity. Interest rates are primarily fixed on retail finance receivables and floating on commercial finance receivables. Interest rates on securitization notes payable and unsecured senior notes are primarily fixed. Interest rates are primarily floating on credit facilities, deposits and other unsecured debt. The notional amounts of interest rate swap agreements, which are used to calculate the contractual payments to be exchanged under the contracts, represent average amounts that will be outstanding for each of the years included in the table. Notional amounts do not represent amounts exchanged by parties and, thus, are not a measure of our exposure to loss through our use of these agreements. 24

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Foreign Currency Exchange Rate Risk We primarily finance receivables and lease assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency derivatives to minimize any impact to earnings. Exchange rate movements can impact our net investment in foreign subsidiaries, which impacts our tangible equity through other comprehensive income/loss. The following table summarizes the amounts of foreign currency translation and transaction and remeasurement losses: Years Ended December 31, 2016

2015

2014

Foreign currency translation losses recorded in accumulated other comprehensive loss

$

144

$

669

$

430

Losses resulting from foreign currency transactions and remeasurement recorded in earnings Gains resulting from foreign currency exchange swaps recorded in earnings

$

167 (154)

$

58 (42)

$

170 (163)

Net losses resulting from foreign currency exchange recorded in earnings

$

13

$

16

$

7

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. The foreign currency translation losses in 2016 were primarily due to decreases in the values of the British Pound and the Euro in relation to the U.S. Dollar. The foreign currency translation losses in 2015 were due primarily to decreases in the values of the Brazilian Real, the Canadian Dollar and the Euro in relation to the U.S Dollar. Counterparty Risk Counterparty risk relates to the financial loss we could incur if an obligor or counterparty to a transaction is unable to meet its financial obligations. Typical sources of exposure include balances maintained in bank accounts, investments, and derivative contracts. Investments are typically securities representing high quality monetary instruments which are easily accessible and derivative contracts are used for managing interest rate and foreign currency exchange rate risk. We, together with GM, establish exposure limits for each counterparty to minimize risk and provide counterparty diversification. We maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement. We enter into arrangements with individual counterparties that we believe are creditworthy and generally settle on a net basis. In addition, we perform a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Operating Risk We operate in many locations and rely on the abilities of our employees and computer systems to process a large number of transactions. Improper employee actions, improper operation of systems, or unforeseen business interruptions could result in financial loss, regulatory action and damage to our reputation, and breach of contractual obligations. To address this risk, we maintain internal control processes that identify transaction authorization requirements, safeguard assets from misuse or theft, protect the reliability of financial and other data, and minimize the impact of a business interruption on our customers. We also maintain system controls to maintain the accuracy of information about our operations. These controls are designed to manage operating risk throughout our operation.

25

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of General Motors Financial Company, Inc.: We have audited the accompanying consolidated balance sheets of General Motors Financial Company, Inc. and subsidiaries (the "Company") as of December 31, 2016 and 2015, and the related consolidated statements of income and comprehensive income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2016. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of General Motors Financial Company, Inc. and subsidiaries at December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Fort Worth, Texas February 7, 2017 26

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Item 8. Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (dollars in millions) December 31, 2016

December 31, 2015

ASSETS Cash and cash equivalents Finance receivables, net (Note 4; Note 9 VIEs) Leased vehicles, net (Note 5; Note 9 VIEs) Goodwill (Note 6) Equity in net assets of non-consolidated affiliates (Note 7) Property and equipment, net of accumulated depreciation of $127 and $91 Deferred income taxes (Note 14) Related party receivables (Note 2) Other assets (Note 9 VIEs) Total assets

$

3,201 43,190 34,526 1,196 944 279 274 510 3,645

$

3,061 36,781 20,172 1,189 986 219 231 573 2,692

$

87,765

$

65,904

$

39,270 34,606 1,474 2,365 220 400 737

$

30,689 23,657 1,218 1,454 129 362 343

LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Secured debt (Note 8; Note 9 VIEs) Unsecured debt (Note 8) Accounts payable and accrued expenses Deferred income Deferred income taxes (Note 14) Related party payables (Note 2) Other liabilities Total liabilities Commitments and contingencies (Note 11) Shareholder's equity Common stock, $1.00 par value per share, 1,000 shares authorized and 505 shares issued Additional paid-in capital Accumulated other comprehensive loss (Note 17) Retained earnings Total shareholder's equity Total liabilities and shareholder's equity

57,852

— 6,505 (1,238) 3,426

— 6,484 (1,104) 2,672

8,693 $

The accompanying notes are an integral part of these consolidated financial statements. 27

79,072

87,765

8,052 $

65,904

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in millions) Years Ended December 31, 2016

2015

2014

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

3,329 5,925 304

$

3,381 2,807 266

$

3,475 1,090 289

9,558

6,454

4,854

853 637

726 567

614 548

1,490 4,529 669 2,108

1,293 2,200 624 1,616

1,162 847 604 1,426

8,796

5,733

4,039

151 913 159

116 837 191

— 815 278

754

646

537

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income (Note 7) Income before income taxes Income tax provision (Note 14) Net income Other comprehensive loss, net of tax Unrealized gain on cash flow hedges, net of income tax expense of $11 Defined benefit plans, net of income tax benefit of $3, $1 and $5 Foreign currency translation adjustment, net of income tax expense (benefit) of $17, $(1) and $(1) Other comprehensive loss, net of tax Comprehensive income (loss)

$

17 (7)

— (2)

— (14)

(144)

(669)

(430)

(134)

(671)

620

$

The accompanying notes are an integral part of these consolidated financial statements. 28

(25)

(444) $

93

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (dollars in millions) Years Ended December 31, 2016

2015

2014

Common stock shares Balance at the beginning of period Common stock issued Balance at the end of period

505 —

505 —

502 3

505

505

505

Common stock amount Balance at the beginning of period Common stock issued Balance at the end of period

$

— —

$

— —

$

— —

$



$



$



Balance at the beginning of period $ Stock-based compensation expense Capital contributions from related party Differences between tax payments due under consolidated return and separate return basis Balance at the end of period $

6,484 21 —

$

5,799 35 649

$

4,785 18 996

6,505

$

6,484

$

5,799

$

(1,104) (134)

$

(433) (671)

$

11 (444)

$

(1,238)

$

(1,104)

$

(433)

$

2,672 754

$

2,026 646

$

1,489 537

$

3,426

$

2,672

$

2,026

Additional paid-in capital



1



Accumulated other comprehensive loss Balance at the beginning of period Other comprehensive loss, net of tax Balance at the end of period Retained earnings Balance at the beginning of period Net income Balance at the end of period

The accompanying notes are an integral part of these consolidated financial statements. 29

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years Ended December 31, 2016

2015

2014

Cash flows from operating activities Net income

$

754

$

646

$

537

Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization

4,839

Accretion and amortization of loan and leasing fees

2,403

992

(1,172)

(609)

(363)

Amortization of carrying value adjustment

(29)

(149)

(234)

Undistributed earnings of non-consolidated affiliates, net

(22)

(116)

Provision for loan losses

669

624

604

Deferred income taxes

42

132

(83)

Stock-based compensation expense

25

36

19

1

(37)

182

Other operating activities



Changes in assets and liabilities, net of assets and liabilities acquired: Other assets Accounts payable and accrued expenses

(443)

(375)

(85)

214

282

133

Taxes payable

(2)

(20)

(63)

Related party taxes payable



(636)

(7)

5

(13)

Related party payables Net cash provided by operating activities

5

4,881

2,168

1,637

Cash flows from investing activities Purchases of retail finance receivables, net

(17,796)

(17,517)

(14,749)

Principal collections and recoveries on retail finance receivables

13,172

11,726

10,860

Net funding of commercial finance receivables

(2,981)

(1,017)

(1,898)

(19,612)

(15,337)

(4,882)

2,557

1,096

533

(1,049)

(46)

Purchases of leased vehicles, net Proceeds from termination of leased vehicles Acquisition of international operations



Disposition of equity interest



Purchases of property and equipment

(107)

Other investing activities

125



(90)

(52)

(7)

Net cash used in investing activities

30

(24,774)

(2)

(22,033)

(10,236)

Cash flows from financing activities Net change in debt (original maturities less than three months) Borrowings and issuance of secured debt Payments on secured debt

780

1,147

470

29,421

22,385

21,080 (16,890)

(20,266)

(15,178)

Borrowings and issuance of unsecured debt

13,282

12,977

7,174

Payments on unsecured debt

(2,837)

(1,709)

(1,889)

Borrowings on related party line of credit Payments on related party line of credit Capital contributions

418



(418)





649

996

(155)

(127)



Debt issuance costs

(146)

Other





1



20,234

20,117

10,814

Net increase in cash, cash equivalents and restricted cash

341

252

2,215

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

(41)

(295)

Net cash provided by financing activities

Cash, cash equivalents and restricted cash at beginning of period Cash, cash equivalents and restricted cash at end of period

5,002 $

(201)

5,045

5,302

$

3,031

5,002

$

5,045

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet: December 31, 2016 Cash and cash equivalents

$

Restricted cash included in other assets

3,201

December 31, 2015 $

2,101

Total cash, cash equivalents and restricted cash as presented in the consolidated statements of cash flows

$

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

5,302

3,061 1,941

$

5,002

30

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies History and Operations We were formed on August 1, 1986 and have been a wholly-owned subsidiary of GM since October 2010. We acquired Ally Financial's auto finance and financial services operations in Europe and Latin America in 2013. Additionally, on January 2, 2015, we acquired an equity interest in SAIC-GMAC, a joint venture that conducts business in China, from Ally Financial. Basis of Presentation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries, including certain special-purpose financing entities utilized in secured financing transactions, which are considered VIEs. All intercompany transactions and accounts have been eliminated in consolidation. Except as otherwise specified, dollar amounts presented within tables are stated in millions. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include, among other things, the determination of the allowance for loan losses on finance receivables, estimated residual value of leased vehicles, goodwill and income taxes. Generally, the financial statements of entities that operate outside of the U.S. are measured using the local currency as the functional currency. All assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at period-end exchange rates and the results of operations and cash flows are determined using approximate weighted-average exchange rates for the period. Translation adjustments are related to the foreign subsidiaries using local currency as their functional currency and are reported as a separate component of accumulated other comprehensive income/loss. Foreign currency transaction gains or losses are recorded directly to the consolidated statements of income and comprehensive income, regardless of whether such amounts are realized or unrealized. We may enter into foreign currency derivatives to mitigate our exposure to changes in foreign currency exchange rates. Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt Our commercial finance receivables are primarily comprised of floorplan financing, which are loans to dealers to finance vehicle inventory, also known as wholesale or inventory financing. In our experience, these loans are typically repaid in less than 90 days of when the credit is extended. Furthermore, we typically have the unilateral ability to call the loans and receive payment within 60 days of the call. Therefore, the presentation of the cash flows related to commercial finance receivables are reflected on the consolidated statements of cash flows as "Net funding of commercial finance receivables." We have revolving debt agreements to finance our commercial lending activities. The revolving period of these agreements ranges from 6 to 24 months; however, the terms of these financing agreements require that a borrowing base of eligible floorplan receivables, within certain concentration limits, must be maintained in sufficient amounts to support advances. When a dealer repays a floorplan receivable to us, either the amount advanced against such receivables must be repaid by us or else the equivalent amount in new receivables must be added to the borrowing base. Despite the revolving term exceeding 90 days, the actual term for repayment of advances under these agreements is when we receive repayment from the dealers, which is typically within 90 days of when the credit is extended. Therefore, the cash flows related to these revolving debt agreements are reflected on the consolidated statements of cash flows as “Net change in debt (original maturities less than three months).” Cash Equivalents Cash equivalents are defined as short-term, highly liquid securities with original maturities of 90 days or less. Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans which are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period, delinquent status and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of their prior credit usage, structure of the loan and other information. The output of the scorecards rank-order consumers from those that are most likely to pay to those that are least likely to pay. By further dividing the portfolio into pools based on internal credit scores we are better able to distinguish expected credit performance for different credit risks. These pools are collectively evaluated for impairment based on a statistical calculation, which is supplemented by management judgment. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable losses inherent in our finance receivables. 31

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We use a combination of forecasting methodologies to determine the allowance for loan losses, including roll rate modeling and static pool modeling techniques. A roll rate model is generally used to project near term losses and static pool models are generally used to project losses over the remaining life. Probable losses are estimated for groups of accounts aggregated by past-due status and origination month. Generally, loss experience over the last 10 years is evaluated. Recent performance is more heavily weighted when determining the allowance to result in an estimate that is more reflective of the current internal and external environments. Factors that are considered when estimating the allowance include historical delinquency migration to loss, probability of default ("PD") and loss given default ("LGD"). PD and LGD are specifically estimated for each monthly vintage (i.e., group of originations) in cases where vintage models are used. PD is estimated based on expectations that are aligned with internal credit scores. LGD is projected based on historical trends experienced over the last 10 years, weighted toward more recent performance in order to consider recent market supply and demand factors that impact wholesale used vehicle pricing. While forecasted probable losses are quantitatively derived, we assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is more reflective of losses that are expected to occur in the current environment. We also use historical charge-off experience to determine a loss confirmation period ("LCP"). The LCP is a key assumption within our models and represents the average amount of time between when a loss event first occurs to when the receivable is charged-off. This LCP is the basis of our allowance and is applied to the forecasted probable credit losses to determine the amount of losses we believe exist at the balance sheet date. We believe these factors are relevant in estimating incurred losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current economic environment. Assumptions regarding credit losses and LCPs are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumption or LCP increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. Finance receivables that are considered impaired, including troubled debt restructurings ("TDRs") are individually evaluated for impairment. In assessing the risk of individually impaired loans such as TDRs, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Commercial Finance Receivables and the Allowance for Loan Losses Our commercial lending offerings consist of floorplan financing 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. Commercial finance receivables are carried at amortized cost, net of allowance for loan losses. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable credit losses inherent in the commercial finance receivables. For the International Segment, we established the allowance for loan losses based on historical loss experience. Since we began offering commercial lending in the North America Segment in 2012, we have performed an analysis of the experience of comparable commercial lenders in order to estimate probable credit losses inherent in our portfolio. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally-developed risk rating system. Based upon our risk ratings, we also determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is segregated for separate monitoring. Charge-off Policy Our policy is to charge off a retail account in the month in which the account becomes 120 days contractually delinquent if we have not yet recorded a repossession charge-off. In the North America Segment, we charge off accounts in repossession when the automobile is repossessed and legally available for disposition. In the International Segment, we charge off accounts when the repossession process is started. Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due. 32

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Troubled Debt Restructurings In evaluating whether a loan modification constitutes a TDR, our policy for retail loans is that both of the following must exist: (i) the modification constitutes a concession; and (ii) the debtor is experiencing financial difficulties. In accordance with our policies and guidelines, we, at times, offer payment deferrals to customers. Each deferral allows the consumer to move up to two delinquent monthly 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). A loan that is deferred two or more times would be considered significantly delayed and therefore meets the definition of a concession. A loan currently in payment default as the result of being delinquent would also represent a debtor experiencing financial difficulties. Therefore, considering these two factors, we have determined that the second deferment granted by us on a retail loan will be considered a TDR and the loan impaired. Accounts in Chapter 13 bankruptcy that have an interest rate or principal adjustment as part of a confirmed bankruptcy plan would also be considered TDRs. Retail finance receivables that become classified as TDRs are separately assessed for impairment. A specific allowance is estimated based on the present value of expected cash flows of the receivable discounted at the loan's original effective interest rate. Commercial receivables subject to forbearance, moratoriums, extension agreements, or other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral are classified as TDRs. We do not grant concessions on the principal balance of dealer loans. Variable Interest Entities – Securitizations and Credit Facilities We finance our loan and lease origination volume through the use of our credit facilities and execution of securitization transactions, which both utilize special purpose entities ("SPEs"). In our credit facilities, we transfer finance receivables or lease-related assets to special purpose finance subsidiaries. These subsidiaries, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of the assets. In our securitizations, we transfer finance receivables or lease-related assets to SPEs structured as securitization trusts ("Trusts"), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. Our continuing involvement with the credit facilities and Trusts consist of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under U.S. GAAP and are consolidated because we have: (i) power over the significant activities of the entities and (ii) an obligation to absorb losses or the right to receive benefits from the VIEs which could be significant to the VIEs. Accordingly, we are the primary beneficiary of the VIEs and the finance receivables, leasing related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. Refer to Note 4 - "Finance Receivables," Note 8 - "Debt" and Note 9 - "Variable Interest Entities" to our consolidated financial statements for further information. We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables and other assets held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. We recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in securitization transactions, and record a provision for loan losses to recognize probable loan losses inherent in the securitized assets. Cash pledged to support securitization transactions is deposited to a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less. Property and Equipment Property and equipment additions are carried at amortized cost. Depreciation is generally provided on a straight-line basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain or loss is included in operations. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and improvements are capitalized. Leased Vehicles Leased vehicles consist of automobiles leased to customers and are carried at amortized cost less manufacturer subvention payments, which are received up front. Depreciation expense is recorded on a straight-line basis over the term of the lease agreement. Manufacturer subvention is recognized on a straight-line basis as a reduction to depreciation expense. Leased vehicles are depreciated to the estimated residual value at the end of the lease term. Under the accounting for impairment or disposal of long-lived assets, residual values of operating leases are evaluated individually for impairment when indicators of impairment exist. When indicators of impairment exist and aggregate future cash flows from the operating lease, including the expected realizable fair value of the leased asset at the end of the lease, are less than the book value of the lease, an immediate impairment 33

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) write-down is recognized if the difference is deemed not recoverable. Otherwise, reductions in the expected residual value result in additional depreciation of the leased asset over the remaining term of the lease. Upon disposition, a gain or loss is recorded for any difference between the net book value of the lease and the proceeds from the disposition of the asset, including any insurance proceeds. Goodwill The excess of the purchase price of the merger with GM over the fair value of the net assets acquired was recorded as goodwill, and was attributed to the North America reporting unit, which was our only reporting unit at that time. With the acquisition of the international operations, we added two additional reporting units: Latin America and Europe. The excess of the purchase price of the acquisition of the international operations over the fair value of the net assets acquired was all attributed to the Latin America reporting unit. We performed our annual goodwill impairment testing as of October 1, 2016 for each reporting unit. For the North America reporting unit, which represents 92% of our goodwill balance, we determined the fair value with consideration to valuations under the income approach, weighted 75%, and the market approach, weighted 25%. The income approach evaluates the cash flow of the reporting unit over a specified time, discounted at an appropriate market rate to arrive at an indication of the most probable selling price. Factors contributing to the determination of the reporting unit's operating performance were historical performance and management's estimates of future performance. The market approach considers trading prices of securities issued by comparable companies as multiples of historical earnings and forecast earnings. The results of the first step of the impairment test indicated that the fair value exceeded the carrying value; therefore, it was not necessary to perform the second step analysis. If actual market conditions are less favorable than those we and the industry have projected, or if events occur or circumstances change that would reduce the fair value of our goodwill below the amount reflected in the balance sheet, we may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. Derivative Financial Instruments We recognize all of our derivative financial instruments as either assets or liabilities on our consolidated balance sheets at fair value. We do not use derivative financial instruments for trading or speculative purposes. Interest Rate Swap Agreements We utilize interest rate swap agreements to convert certain floating rate exposures to fixed rate or certain fixed-rate exposures to floating rate in order to manage our interest rate exposure. Cash flows from derivatives used to manage interest rate risk are classified as operating activities. We designate certain pay-fixed, receive-floating interest rate swaps as cash flow hedges of variable rate debt. The risk being hedged is the risk of variability in interest payments attributable to changes in interest rates. If the hedge relationship is deemed to be highly effective, we record the effective portion of changes in the fair value of the hedge in accumulated other comprehensive income/loss. When the hedged cash flows affect earnings, we reclassify these amounts to interest expense. Any ineffective portion of a cash flow hedge is recorded to interest expense immediately. We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related derivative (excluding accrued interest) is also recorded in interest expense. Interest Rate Cap and Floor Agreements We may purchase interest rate cap and floor agreements to limit floating rate exposures in our credit facilities. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap or floor agreement in order to offset the premium paid to purchase the interest rate cap or floor agreement and thus retain the interest rate risk. Because the interest rate cap and floor agreements entered into by us or our special purpose finance subsidiaries do not qualify for hedge accounting, changes in the fair value of interest rate cap and floor agreements purchased by the special purpose finance subsidiaries and interest rate cap and floor agreements sold by us are recorded in interest expense. Interest rate risk management contracts are generally expressed in notional principal or contract amounts that are much larger than the amounts potentially at risk for nonpayment by counterparties. Therefore, in the event of nonperformance by the counterparties, our credit exposure is limited to the uncollected interest and the market value related to the contracts that have become favorable to us. We manage the credit risk of such contracts by using highly rated counterparties, establishing risk limits and monitoring the credit ratings of the counterparties. We maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement. We enter into arrangements with individual counterparties that we believe are creditworthy and 34

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) generally settle on a net basis. In addition, we perform a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Foreign Currency Swaps Our policy is to minimize exposure to changes in currency exchange rates. To meet funding objectives, we borrow in a variety of currencies. We face exposure to currency exchange rates when the currency of our earning assets differs from the currency of the debt funding those assets. When possible, we fund earning assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency swaps to convert our debt obligations to the local currency of the earning assets. We designate certain cross-currency swaps as cash flow hedges of foreign currency-denominated debt. The risk being hedged is the variability in the cash flows for the payments of both principal and interest attributable to changes in foreign currency exchange rates. If the hedge relationship is deemed to be highly effective, we record the effective portion of changes in the fair value of the swap in accumulated other comprehensive income/loss. When the hedged cash flows affect earnings via principal remeasurement or accrual of interest expense, we reclassify these amounts to other operating expenses or interest expense. Any ineffective portion of a cash flow hedge is recorded to interest expense immediately. Fair Value Financial instruments are considered Level 1 when quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Financial instruments are considered Level 2 when inputs other than quoted prices are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Financial instruments are considered Level 3 when their values are determined using price models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. Income Taxes We account for income taxes on a separate return basis using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be realized. We record uncertain tax positions on the basis of a two-step process whereby: (i) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position; and (ii) for those tax positions that meet the more likely than not recognition, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax provision (benefit). Revenue Recognition Finance charge income related to retail finance receivables is recognized using the effective interest method. Fees and commissions received and direct costs of originating loans are generally deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are sold, charged off or paid in full. Accrual of finance charge income is suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received on non-accrual loans are first applied to any fees due, then to any interest due and, finally, any remaining amounts received are recorded to principal. Interest accrual resumes once an account has received payments bringing the delinquency status to less than 60 days past due or, for TDRs, when repayment is reasonably assured based on the modified terms of the loan. Finance charge income related to commercial finance receivables is recognized using the effective interest method. Accrual of finance charge income is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt about the full collectability of contractually agreed upon principal and interest exist. Payments received on non-accrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the delinquency status fully current and collection of contractual principal and interest is reasonably expected (including amounts previously charged off). Operating lease rental income for leased vehicles is recognized on a straight-line basis over the lease term. Net deferred origination fees or costs are amortized on a straight-line basis over the term of the lease agreement. 35

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Parent Company Stock-Based Compensation We measure and record compensation expense for parent company stock-based compensation awards based on the award's estimated fair value. We record compensation expense over the applicable vesting period of an award. Refer to Note 12 - "Parent Company Stock-Based Compensation" to our consolidated financial statements for further information. Recently Adopted Accounting Standards In November 2016 the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update 201618, "Statement of Cash Flows (Topic 230): Restricted Cash" (ASU 2016-18), which clarifies the presentation of restricted cash and restricted cash equivalents in the statements of cash flows. Under ASU 2016-18 restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the statements of cash flows. We adopted ASU 2016-18 during the three months ended December 31, 2016 on a retrospective basis. As a result net cash provided by operating activities decreased by $271 million in 2015 and increased by an insignificant amount in 2014. Net cash used in investing activities decreased by $264 million and $232 million in 2015 and 2014 and beginning-of-period cash, cash equivalents and restricted cash increased by $1.9 billion, $2.1 billion and $2.0 billion as of December 31, 2016, 2015 and 2014. Recently Issued Accounting Standards Not Yet Adopted In May 2014 the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which requires us to recognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or service and requires expanded disclosures. ASU 2014-09 is effective for annual reporting periods beginning on or after December 15, 2017 with early adoption permitted for reporting periods beginning on or after December 15, 2016. The adoption of ASU 2014-09 will not have a significant impact on our consolidated financial statements. In February 2016 the FASB issued ASU 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. While we are currently assessing the impact ASU 2016-02 will have on our consolidated financial statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our current minimum commitments under noncancelable operating leases are disclosed in Note 11. In June 2016 the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which requires entities to use a new impairment model based on expected losses. Under this new model an entity would recognize an impairment allowance equal to its current estimate of credit losses on financial assets measured at amortized cost. ASU 2016-13 is effective for us beginning January 1, 2020 with early adoption permitted January 1, 2019. Credit losses under the new model will consider relevant information about past events, current conditions and reasonable and supportable forecasts, resulting in recognition of lifetime expected credit losses upon loan origination as compared to our current accounting that recognizes credit losses as incurred. Adoption of ASU 2016-13 will increase the allowance for credit losses with the cumulative effect upon adoption resulting in a negative adjustment to retained earnings. We are currently evaluating new processes to calculate credit losses in accordance with ASU 2016-13 that, once completed, will determine the impact on our consolidated financial statements which at the date of adoption will increase the allowance for credit losses with a resulting negative adjustment to retained earnings. 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 consolidated statements of cash flows. During 2016, we advanced $456 million under a new line of credit to GM subsidiary Adam Opel AG, which was repaid with interest during 2016. 36

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO 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 Commercial finance receivables, net due from dealers consolidated by GM (a) Advances drawn on lines of credit due from GM (b) Subvention receivable(c) Commercial loan funding payable(d)

December 31, 2016

Income Statement Data

December 31, 2015

$

401

$

229

$

137

$

190

$

373

$

383

$

389

$

351

Years Ended December 31, 2016

2015

2014

Interest subvention earned on retail finance receivables and leases(e) $ 443 $ 313 $ 248 Interest subvention earned on commercial finance receivables(e) $ 169 $ 175 $ 195 Leased vehicle subvention earned (f) $ 2,238 $ 1,001 $ 311 _________________ (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 $4.4 billion, $3.6 billion and $1.2 billion during 2016, 2015 and 2014. (d) Included in related party payables. (e) Included in finance charge income. (f) 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"). In September 2016, we borrowed $415 million on the Junior Revolving Credit Facility, which we repaid with interest in December 2016. 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 December 31, 2016 and December 31, 2015, there are no related party taxes payable to GM due to our taxable loss position. Note 3. Acquisition of Equity Interest On January 2, 2015, we completed the acquisition of Ally Financial's 40% equity interest in SAIC-GMAC. The aggregate purchase price was $1.0 billion. Also on January 2, 2015, we sold a 5% equity interest in SAIC-GMAC to SAIC FC, a current shareholder of SAIC-GMAC, for proceeds of $125 million. As a result of these transactions, we own a 35% equity interest in SAIC-GMAC. We account for our ownership interest in SAIC-GMAC using the equity method of accounting. The difference between the carrying amount of our investment and our share of the underlying net assets of SAIC-GMAC at the time of acquisition was $371 million, which was primarily related to goodwill. We determined the acquisition date fair values of the identifiable assets acquired and liabilities assumed in accordance with ASC 805, "Business Combinations" ("ASC 805"). 37

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income resulting from the equity investment in SAIC-GMAC is included in our results beginning January 2, 2015. Equity income from SAIC-GMAC recorded during 2016 and 2015 was $151 million and $116 million. If the acquisition had occurred on January 1, 2014, our unaudited pro forma net income for 2014 would have increased by $107 million to $644 million. Note 4. Finance Receivables December 31, 2016

Retail finance receivables Retail finance receivables, collectively evaluated for impairment, net of fees(a) Retail finance receivables, individually evaluated for impairment, net of fees Total retail finance receivables(b)

$

30,989 1,921

Less: allowance for loan losses - collective Less: allowance for loan losses - specific Total retail finance receivables, net Commercial finance receivables Commercial finance receivables, collectively evaluated for impairment, net of fees Commercial finance receivables, individually evaluated for impairment, net of fees Total commercial finance receivables Less: allowance for loan losses - collective Less: allowance for loan losses - specific Total commercial finance receivables, net

December 31, 2015

$

27,512 1,612

32,910 (517) (276)

29,124 (515) (220)

32,117

28,389

11,053 70

8,357 82

11,123 (43) (7)

8,439 (38) (9)

11,073

Total finance receivables, net

$

43,190

8,392 $

36,781

Fair value of finance receivables $ 43,140 $ 36,937 ________________ (a) Includes $1.3 billion and $1.1 billion of direct-financing leases at December 31, 2016 and 2015. (b) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $191 million and $179 million at December 31, 2016 and 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

Years ended December 31, 2016

2015

2014

Retail finance receivables beginning balance

$

$

25,623 17,537 (10,968) (996) (2,072)

$

Purchases of retail finance receivables Principal collections and other Charge-offs Foreign currency translation Retail finance receivables ending balance

29,124 18,054 (12,633) (1,171) (464)

23,130 15,085 (10,234) (914) (1,444)

$

32,910

$

29,124

$

25,623

38

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) A summary of the activity in the allowance for retail loan losses is as follows: Years ended December 31, 2016

Allowance for retail loan losses beginning balance

$

Provision for loan losses Charge-offs Recoveries Foreign currency translation $

Allowance for retail loan losses ending balance

2015

735 666 (1,171) 559 4 793

2014

$

655 612 (996) 486 (22)

$

497 613 (914) 470 (11)

$

735

$

655

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 Segment 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: December 31, 2016 Amount

December 31, 2015

Percent

Amount

Percent

Prime - FICO Score 680 and greater

$

Near-prime - FICO Score 620 to 679 Sub-prime - FICO Score less than 620 Balance at end of period

7,923 3,468 10,395

36.4% $ 15.9% 47.7%

4,418 2,890 10,840

24.4% 15.9% 59.7%

$

21,786

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 delinquent retail finance receivables, which is not significantly different than the recorded investment for such receivables. December 31, 2016 Amount

31 - 60 days Greater than 60 days Total finance receivables more than 30 days delinquent In repossession Total finance receivables more than 30 days delinquent or in repossession

$

$

December 31, 2015

Percent of Contractual Amount Due

1,235 542

3.7% 1.7

1,777 51

5.4 0.1

1,828

5.5%

Amount

$

$

Percent of Contractual Amount Due

1,237 481

4.2% 1.6

1,718 46

5.8 0.2

1,764

6.0%

At December 31, 2016 and 2015, the accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $807 million and $778 million. 39

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 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. At December 31, 2016 and 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: December 31, 2016

December 31, 2015

Outstanding recorded investment Less: allowance for loan losses

$

1,920 (276)

$

1,612 (220)

Outstanding recorded investment, net of allowance Unpaid principal balance

$

1,644

$

1,392

$

1,967

$

1,642

Additional information about loans classified as TDRs is presented below: Years Ended December 31, 2016

Average outstanding recorded investment Finance charge income recognized Number of loans classified as TDRs during the period Recorded investment of loans classified as TDRs during the period

$ $

2015

1,766 205 66,926 1,148

$

$ $

2014

1,455 164 58,012 982

$

$ $

996 123 49,490 794

$

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 were $26 million, $20 million and $25 million for 2016, 2015 and 2014. Commercial Finance Receivables

Years Ended December 31, 2016

Commercial finance receivables beginning balance

$

Net funding Charge-offs Foreign currency translation Commercial finance receivables ending balance

$

2015

8,439 3,017 (2) (331) 11,123

2014

$

8,072 984 (3) (614)

$

6,700 1,889 — (517)

$

8,439

$

8,072

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 dealers (i.e., Groups III, IV, V and VI). We perform a credit review of each dealer at least 40

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 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. 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: December 31, 2016 Amount

Group I

- Dealers with superior financial metrics

$

December 31, 2015

Percent

Amount

Percent

1,596

14.3% $

1,299

15.4%

Group II - Dealers with strong financial metrics

3,445

31.0

2,648

31.4

Group III - Dealers with fair financial metrics

4,039

36.3

2,703

32.0

Group IV - Dealers with weak financial metrics

1,231

11.1

1,100

13.0

642

5.8

505

6.0

Group V - Dealers warranting special mention due to potential weaknesses Group VI - Dealers with loans classified as substandard, doubtful or impaired Balance at end of period

170 $

1.5

11,123

184

100.0% $

2.2

8,439

100.0%

At December 31, 2016 and 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 2016, 2015 and 2014. Note 5. Leased Vehicles December 31, 2016

Leased vehicles

$

48,581 (7,706)

Manufacturer subvention

December 31, 2015

$

27,587 (4,582)

40,875 (6,349)

Less: accumulated depreciation Leased vehicles, net

$

34,526

23,005 (2,833) $

20,172

A summary of the changes in our leased vehicles is as follows: Years Ended December 31, 2016

2015

2014

Balance at beginning of period Leased vehicles purchased Terminated leases Leased vehicles returned - default Manufacturer subvention Foreign currency translation

$

23,005 25,377 (4,095) (358) (3,111) 57

$

8,268 20,199 (1,785) (120) (3,169) (388)

$

4,025 6,169 (878) (58) (844) (146)

Balance at end of period

$

40,875

$

23,005

$

8,268

The following table summarizes minimum rental payments due to us as lessor under operating leases: Years Ending December 31, 2017

Minimum rental payments under operating leases

$

2018

5,649

$ 41

4,176

2019

$

1,869

2020

$

180

2021

$

Total

4

$

11,878

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 6. Goodwill The following table summarizes the changes in the carrying amounts of goodwill by segment: Years Ended December 31, 2016 North America

Beginning balance Acquisition Foreign currency translation Ending balance

$ 1,105 —

Total

$ 1,189 —

$ 1,106 —

International

$

84 —

7

7

$

91

$ 1,196

— $ 1,105

2015 North America

International

$

(1) $ 1,105

2014

138 —

Total

North America

$ 1,244 —

$ 1,108 —

(54) $

84

(55) $ 1,189

International

132 6

$

138

(2) $ 1,106

Total

$

$ 1,240 6



(2) $ 1,244

Note 7. 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. We received cash dividends from SAIC-GMAC of $129 million in 2016. There were no cash dividends received in 2015. At December 31, 2016 and 2015, we had undistributed earnings of $142 million and $121 million related to SAIC-GMAC. The following tables present summarized financial data of SAIC-GMAC: Summarized Balance Sheet Data (a): Finance receivables, net

December 31, 2016

$ $ $ $

Total assets Debt Total liabilities

December 31, 2015

10,408 11,089 6,681 9,330

$ $ $ $

9,617 9,802 5,789 7,973

Years Ended December 31,

Summarized Operating Data (a):

2016

Finance charge income Provision for loan losses Interest expense Income before income taxes Net income _________________ (a) This data represents that of the entire entity and not our 35% proportionate share. 42

$ $ $ $ $

2015

940 18 257 570 428

$ $ $ $ $

971 45 338 463 347

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 8. Debt December 31, 2016 Carrying Amount

December 31, 2015

Fair Value

Carrying Amount

Fair Value

Secured debt Revolving credit facilities Securitization notes payable

$

9,817 29,453

$

9,812 29,545

$

7,548 23,141

$

7,494 23,177

Total secured debt

$

39,270

$

39,357

$

30,689

$

30,671

$

28,577 3,354 1,895 780

$

29,182 3,354 1,902 782

$

18,973 2,759 1,260 665

$

19,045 2,753 1,262 666

$

34,606

$

35,220

$

23,657

$

23,726

$

73,876

$

74,577

$

54,346

$

54,397

$ $

69,990 4,587

$ $

48,716 5,681

Unsecured debt Senior notes Credit facilities Retail customer deposits Other unsecured debt Total unsecured debt Total Secured and Unsecured debt Fair value utilizing Level 2 inputs Fair value utilizing Level 3 inputs

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 9 - "Variable Interest Entities." This debt is repayable only from proceeds related to the underlying pledged assets. The weighted average interest rate on secured debt was 2.09% at December 31, 2016. Issuance costs on the secured debt of $89 million as of December 31, 2016 and $76 million as of December 31, 2015 are amortized to interest expense over the expected term of the secured debt. The terms of our revolving credit facilities provide for a revolving period and subsequent amortization period, and are expected to be repaid over periods ranging up to six years. During 2016, we entered into new credit facilities or renewed credit facilities with a total net additional borrowing capacity of $4.0 billion. Securitization notes payable at December 31, 2016 are due beginning in 2018 through 2024. During 2016, we issued securitization notes payable of $16.9 billion with a weighted-average interest rate of 1.7%. Unsecured Debt Senior Notes At December 31, 2016, we had $29.0 billion par value outstanding in senior notes that mature from 2017 through 2026 and have a weighted average interest rate of 3.33%. Issuance costs on senior notes of $115 million as of December 31, 2016 and $107 million as of December 31, 2015 are amortized to interest expense over the term of the notes. During 2016, our top-tier holding company issued $10.3 billion in senior notes comprised of $9.6 billion of fixed rate notes with a weighted average coupon of 3.38% and $650 million in floating rate notes. These notes mature beginning in May 2019 through October 2026. All of these notes are guaranteed by AmeriCredit Financial Services, Inc. ("AFSI"). 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 November 2016, one of our European subsidiaries issued €100 million in floating rate notes under our Euro medium term notes program. These notes are due in December 2017 and are guaranteed by our top-tier holding company and AFSI. 43

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Subsequent to December 31, 2016, our top-tier holding company issued $2.5 billion in senior notes comprised of $1.25 billion of 3.45% notes due in January 2022, $750 million of 4.35% notes due in January 2027 and $500 million of floating rate notes due in January 2022. All of these notes are guaranteed solely by AFSI. Senior notes issued by our top-tier holding company are guaranteed solely by AFSI; none of our other subsidiaries are guarantors of our senior notes. Refer to Note 20 - "Guarantor Consolidating Financial Statements" to our consolidated financial statements for further discussion. Credit Facilities and Other Unsecured Debt We use unsecured credit facilities with banks as well as non-bank instruments as funding sources, primarily in the International Segment. During 2016, we increased net borrowing capacity on unsecured committed credit facilities by $22 million. The terms of advances under our unsecured credit facilities are determined and agreed to by us and the lender on the borrowing date for each advance and can have maturities up to five years. The weighted average interest rate on credit facilities and other unsecured debt was 7.50% at December 31, 2016. Retail Customer Deposits During 2015, we began accepting deposits from retail banking customers in Germany. Following is summarized information for our deposits at December 31, 2016 and 2015: December 31, 2016

December 31, 2015

Weighted Average Interest Rate

Outstanding Balance

Outstanding Balance

Weighted Average Interest Rate

Overnight deposits Term deposits -12 months Term deposits - 24 months Term deposits - 36 months

$

799 423 281 392

0.50% 0.93% 1.26% 1.48%

$

555 337 123 245

1.00% 1.32% 1.44% 1.65%

Total deposits

$

1,895

0.91%

$

1,260

1.25%

Contractual Debt Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt obligations: Years Ending December 31, 2017

Secured debt Unsecured debt Interest payments

2018

2019

2020

2021

Thereafter

Total

$

21,268 7,328 1,624

$

11,573 4,167 1,204

$

4,880 6,351 799

$

1,264 4,650 573

$

348 4,750 376

$

— 7,791 793

$

39,333 35,037 5,369

$

30,220

$

16,944

$

12,030

$

6,487

$

5,474

$

8,584

$

79,739

Compliance with Debt Covenants Several of 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 December 31, 2016, we were in compliance with these debt covenants. 44

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 9. Variable Interest Entities Securitizations and credit facilities The following table summarizes the assets and liabilities related to our consolidated VIEs: December 31, 2016

Restricted cash (a) Finance receivables, net of fees Lease related assets Secured debt _______________ (a) Included in other assets in the consolidated balance sheets.

$ $ $ $

2015

2,067 29,661 19,341 38,244

$ $ $ $

1,876 24,942 11,684 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: December 31, 2016

2015

Assets(a)

$ 4,251 Liabilities(b) $ 3,559 _______________ (a) Comprised primarily of finance receivables, net of $3.5 billion and $3.2 billion at December 31, 2016 and 2015. (b) Comprised primarily of debt of $3.0 billion and $2.6 billion at December 31, 2016 and 2015.

$ $

3,652 2,941

The following table summarizes the revenue and net income of these VIEs: Years Ended December 31, 2016

Total revenue Net income

$ $

2015

210 29

$ $

2014

191 29

$ $

192 28

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 December 31, 2016 and 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. 45

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 10. Derivative Financial Instruments and Hedging Activities Derivative financial instruments consist of the following: December 31, 2016 Level

Derivatives designated as hedges Assets Fair value hedges Interest rate swaps Cash flow hedges Interest rate swaps Foreign currency swaps

Notional

2

$

2,3 2

Liabilities Fair value hedges Interest rate swaps Cash flow hedges Interest rate swaps Foreign currency swaps

2

2,3 2 2

Foreign currency swaps

2,3 2 2



$

12 —

Fair Value



$

— —

— — —

3,542

$

12

$



$



$

7,700

$

276

$

1,000

$

6

1,280 791

Total assets(a) Liabilities Interest rate swaps Interest rate caps and floors

$

Notional

$

2,3 2

Total liabilities(b) Derivatives not designated as hedges Assets Interest rate swaps Interest rate caps and floors Foreign currency swaps

— 3,542 —

Total assets(a)

December 31, 2015

Fair Value

3 33

— —

— —

$

9,771

$

312

$

1,000

$

6

$

8,667 10,469 1,576

$

55 26 78

$

4,122 6,327 1,460

$

8 19 48

$

20,712

$

159

$

11,909

$

75

$

8,337 12,146

$

36 26

$

8,041 5,892

$

24 19

119

2





$ 20,602 $ 64 $ 13,933 $ 43 Total liabilities(b) _________________ (a) Included in other assets in the consolidated balance sheets. (b) Included in other liabilities in the consolidated balance sheets. Amounts accrued for interest payments in a net receivable position are included in other assets in the consolidated balance sheets. The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves. The fair value for Level 3 instruments 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. The activity for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) was insignificant for 2016, 2015 and 2014. 46

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table presents information on the gains (losses) on derivative instruments included in the consolidated statements of income and comprehensive income: Income (Losses) Recognized In Income Years Ended December 31, 2016

Fair value hedges Interest rate contracts(a)(b) Cash flow hedges Interest rate contracts(a) Foreign currency contracts(c) Derivatives not designated as hedges Interest rate contracts(a) Foreign currency derivatives(c)(d) Total

$

2015

(7)

$

1

(4) 39 14 109 $

151

2014

$

$



— —

— —

(15) 42

(51) 163

28

$

112

Gains (Losses) Recognized In Accumulated Other Comprehensive Loss Years Ended December 31, 2016

2015

2014

Cash flow hedges Interest rate contracts Foreign currency contracts

$

4 (20)

$

— —

$

— —

Total

$

(16)

$



$



Gains Reclassified From Accumulated Other Comprehensive Loss Into Income Years Ended December 31, 2016

Cash flow hedges Interest rate contracts Foreign currency contracts

$

2015

2 31

$

2014

— —

$

— —

$ 33 $ — $ — Total _________________ (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 $322 million offset by the change in fair value of hedged debt attributable to the hedged risk of $287 million. (c) Recognized in earnings as other operating expenses and interest expense. (d) Activity is offset by translation activity (included in other operating expenses) related to foreign currency-denominated loans. 47

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 11. Commitments and Contingencies Leases We lease space for our operating facilities and administrative offices under leases with terms up to 10 years with renewal options. Certain leases contain lease escalation clauses for real estate taxes and other operating expenses and renewal option clauses calling for increased rents. A summary of lease expense and operating lease commitments are as follows: Years Ended December 31, 2016

Lease expense

$

2015

30

2014

$

28

$

28

Years Ending December 31, 2017

Operating lease commitments

$

2018

38

$

2019

45

$

2020

41

$

2021

37

$

Thereafter

35

$

161

Total

$

357

Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and retail finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions. The counterparties to our derivative financial instruments are various major financial institutions. Retail finance receivables in the North America Segment represent contracts with customers residing throughout the U.S. and Canada, with borrowers located in Texas accounting for 16.0% of the portfolio as of December 31, 2016. No other state accounted for more than 10% of retail finance receivables. Retail finance receivables in the International Segment represent contracts with customers residing throughout Europe and Latin America. Borrowers located in the U.K., Germany, Brazil and Mexico accounted for 25.3%, 20.6%, 20.1%, and 16.4% of the international retail finance receivables as of December 31, 2016. No other country accounted for more than 10% of retail finance receivables. At December 31, 2016, substantially all of our commercial finance receivables represent loans to GM-franchised dealerships and their affiliates. 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 December 31, 2016, the par value of our senior notes was $29.0 billion. Refer to Note 20 - "Guarantor Consolidating Financial Statements" to our consolidated financial statement in this Form 10-K 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 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 December 31, 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. 48

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 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 $35 million. Note 12. Parent Company Stock-Based Compensation GM grants to certain employees and key executive officers Restricted Stock Units (“RSUs”), Performance-based Share Units (“PSUs”) and stock options. Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans, such as retirement, death or disability. RSU awards granted either cliff vest or ratably vest generally over a three-year service period, as defined in the terms for each award. PSU awards generally vest at the end of a three-year performance period based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. The following table summarizes information about RSU, PSUs and stock options granted to our employees and key executive officers under GM's stockbased compensation programs (units in thousands): Year Ended December 31, 2016 Weighted-Average Grant Date Fair Value

Shares

Weighted-Average Remaining Contractual Term (years)

Units outstanding at January 1, 2016 Granted Settled Forfeited or expired

2,302 1,057 (501) (31)

$ $ $ $

34.61 31.50 34.95 33.93

1.3

Units outstanding at December 31, 2016

2,827

$

32.89

1.1

Units unvested and expected to vest at December 31, 2016 Units vested and payable at December 31, 2016

1,926 821

$ $

33.05 32.51

1.1

The following table summarizes compensation expense recorded for stock-based incentive plans: Years Ended December 31, 2016

2015

2014

Compensation expense Income tax benefit

$

48 19

$

36 13

$

19 8

Compensation expense, net of tax

$

29

$

23

$

11

At December 31, 2016, total unrecognized compensation expense for nonvested equity awards granted was $42 million. This expense is expected to be recorded over a weighted-average period of 1.1 years. The total fair value of RSUs and PSUs vested in 2016, 2015, and 2014 was $16 million, $13 million and $9 million. In 2016, 2015, and 2014, total payments for 49,000, 254,000 and 359,000 RSUs settled in cash under stock incentive plans were $2 million, $9 million and $13 million. 49

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 13. Employee Benefit Plans We have defined contribution retirement plans covering substantially all employees in the North America Segment as well as in Brazil and the U.K. We recognized $20 million, $17 million and $12 million in compensation expense for 2016, 2015, and 2014 related to these plans. Contributions to the plans were made in cash. Certain employees in the International Segment are eligible to participate in plans that provide for pension payments upon retirement based on factors such as length of service and salary. The associated liability was $118 million and $109 million at December 31, 2016 and 2015. We recognized $6 million in net periodic pension expense in each of 2016, 2015, and 2014. Note 14. Income Taxes The following table summarizes income before income taxes and equity income: Years Ended December 31, 2016

U.S. income

2014

336 426

$

362 359

$

481 334

$

762

$

721

$

815

Non-U.S. income Income before income taxes and equity income

2015

$

Income Tax Expense

Years Ended December 31, 2016

2015

2014

Current income tax expense U.S. federal U.S. state and local Non-U.S. Total current

$

(1) — 118

$

13 (5) 51

$

284 14 63

117

59

361

20 13 9

95 6 31

(87) (5) 9

Deferred income tax expense U.S. federal U.S. state and local Non-U.S. Total deferred

42 $

Total income tax provision

159

132 $

191

(83) $

278

Provisions are made for estimated U.S. and non-U.S. income taxes, less available tax credits and deductions, which may be incurred on the remittance of our basis differences in investments in foreign subsidiaries not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $5 million and $21 million at December 31, 2016 and 2015. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable. The following table summarizes a reconciliation of income tax expense (benefit) compared with the amounts at the U.S. federal statutory income tax rate: Years Ended December 31, 2016

U.S. statutory tax rate Non-U.S. income taxed at other than 35% State and local income taxes U.S. tax on non-U.S. earnings Valuation allowance Tax credits and incentives Other Effective tax rate 50

2015

2014

35.0 % (2.6) 2.0 (10.7) 7.4 (9.9) (0.3)

35.0 % (3.2) 0.9 (3.2) 7.1 (6.6) (3.5)

35.0 % (2.2) 1.2 7.2 (4.9) (0.8) (1.5)

20.9 %

26.5 %

34.0 %

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2016 and 2015 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the basis of such assets, liabilities and equity as measured by tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities: December 31, 2016

December 31, 2015

Deferred tax assets Net operating loss carryforward - U.S.(a) Net operating loss carryforward - Non-U.S.(b) Market value difference of loan portfolio Accruals Tax Credits(c) Other

$

1,049 202 105 135 388 113

Total deferred tax assets before valuation allowance Less: valuation allowance Total deferred tax assets

$

409 189 166 107 131 113

1,992 (166)

1,115 (104)

1,826

1,011

1,470 183 119

645 116 148

Deferred tax liabilities Depreciable assets Deferred acquisition costs Other Total deferred tax liabilities

1,772

Net deferred tax asset

$

54

909 $

102

_________________ (a) Includes tax-effected operating losses of $1.0 billion expiring through 2037 at December 31, 2016. (b) Includes tax-effected operating losses of $105 million expiring through 2037 and $97 million that may be carried forward indefinitely at December 31, 2016. (c) Includes tax credits of $388 million expiring through 2037 at December 31, 2016. We are included in GM’s consolidated U.S. federal income tax return and 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. As of December 31, 2016, we have $22 million in valuation allowances against deferred tax assets in non-U.S. jurisdictions and $144 million in valuation allowances against deferred tax assets in U.S. jurisdictions. The increase in our valuation allowance of $62 million is primarily related to 2016 U.S. foreign tax credits of $91 million that we do not expect to utilize within the carryforward period partially offset by the release of a $19 million valuation allowance on deferred tax assets in Italy. During 2016 we concluded it was more likely than not that our future earnings in Italy will be sufficient to realize the deferred tax asset so a full valuation allowance is no longer needed. Accordingly we reversed the Italy valuation allowance and recorded an income tax benefit. Uncertain Tax Positions

Years Ended December 31, 2016

Beginning balance Additions to prior years' tax positions Reductions to prior years' tax positions Additions to current year tax positions Reductions in tax positions due to lapse of statutory limitations Settlements Foreign currency translation Ending balance

2015

2014

$

61 4 (6) 2 (5) — 3

$

95 — (7) 1 (16) (2) (10)

$

130 1 (12) 7 (6) (20) (5)

$

59

$

61

$

95

At December 31, 2016, 2015, and 2014, there were $38 million, $35 million and $71 million of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate. 51

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We recognize accrued interest and penalties associated with uncertain tax positions as a component of the income tax provision. Accrued interest and penalties are included within the related tax liability line on the consolidated balance sheets. During 2014, we recorded income tax related interest benefit and penalties of $12 million. The amounts recorded in 2015 and 2016 were insignificant. At December 31, 2016 and 2015 we had liabilities of $83 million and $75 million for income tax-related interest and penalties. At December 31, 2016, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. Periodically, we make deposits to taxing jurisdictions which reduce our unrecognized tax benefit balance, but are not reflected in the reconciliation above. The amounts of deposits that reduce our unrecognized tax benefit liability in the consolidated balance sheets were $15 million and $12 million at December 31, 2016 and 2015. Other Matters 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. Under our tax sharing arrangement with GM, payments related to our U.S. operations for the tax years 2010 through 2014 were deferred for four years from their original due date. During 2015, the outstanding balance was converted to and treated as a capital contribution. At December 31, 2016 and 2015, there were no related party taxes payable due to GM due to our taxable loss position. Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2010 to 2016 with various tax jurisdictions. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and/or recognition of expenses, or the sustainability of income tax credits. Certain of our state and foreign tax returns are currently under examination in various jurisdictions. Note 15. Supplemental Cash Flow Information Cash payments for interest costs and income taxes consist of the following: Years Ended December 31, 2016

Interest costs (none capitalized)

$ $

Income taxes

2015

1,857 120

$ $

2014

1,295 84

$ $

1,120 127

Non-cash investing items consist of the following: Years Ended December 31, 2016

Subvention receivable from GM

$ $

Commercial loan funding payable to GM 52

2015

373 389

$ $

2014

383 351

$ $

189 427

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 16. Segment Reporting and Geographic Information 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 and the International Segment. The North America Segment includes our operations in the U.S. and Canada. The International Segment includes our 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. 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 operating data for our operating segments were as follows: Year Ended December 31, 2016 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses Leased vehicle expenses Provision for loan losses Interest expense Equity income

$

7,948 891 4,499 566 1,481 —

$

1,610 599 30 103 626 151

$

(1) — — — — —

$

1 — — — 1 —

$

9,558 1,490 4,529 669 2,108 151

Income (loss) before income taxes

$

511

$

403

$

(1)

$



$

913

Year Ended December 31, 2015 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses Leased vehicle expenses Provision for loan losses Interest expense Equity income

$

4,777 735 2,190 466 833 —

$

1,677 558 10 158 722 116

$

13 — — — 74 —

$

(13) — — — (13) —

$

6,454 1,293 2,200 624 1,616 116

Income (loss) before income taxes

$

553

$

345

$

(61)

$



$

837

Year Ended December 31, 2014 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses Leased vehicle expenses Provision for loan losses Interest expense

$

2,909 542 843 472 459

$

1,945 620 4 132 954

$

56 — — — 69

$

(56) — — — (56)

$

4,854 1,162 847 604 1,426

Income (loss) before income taxes

$

593

$

235

$

(13)

$



$

815

December 31, 2016 North America

Finance receivables, net Leased vehicles, net Total assets

$ $ $

27,617 34,284 68,656

December 31, 2015

International

$ $ $

15,573 242 19,109 53

North America

Total

$ $ $

43,190 34,526 87,765

$ $ $

21,558 20,086 47,419

International

$ $ $

15,223 86 18,485

Total

$ $ $

36,781 20,172 65,904

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Geographic Information

At and For the Years Ended December 31, 2016 Revenue

U.S. Canada Brazil Other countries(b)

$

7,440 508 652 958

2015

Long-Lived Assets(a)

$

32,506 1,982 3 314

Revenue

$

2014

Long-Lived Assets(a)

4,324 453 757 920

$

18,501 1,731 3 156

Revenue

$

Long-Lived Assets(a)

2,552 357 964 981

$

5,477 1,635 4 116

$ 9,558 $ 34,805 $ 6,454 $ 20,391 $ 4,854 $ 7,232 Total consolidated _________________ (a) Long-lived assets includes $34.5 billion, $20.2 billion and $7.1 billion of vehicles on operating leases at December 31, 2016, 2015, and 2014. (b) No individual country represents more than 10% of our total revenue or long-lived assets. Note 17. Accumulated Other Comprehensive Loss Years Ended December 31, 2016

2015

2014

Unrealized gain on cash flow hedges Beginning balance Change in value of cash flow hedges, net of tax Ending balance

$

— 17

$

— —

$

— —

17





(13) (7)

(11) (2)

3 (14)

(20)

(13)

(11)

(1,091) (144)

(422) (669)

8 (430)

Defined benefit plans Beginning balance Unrealized loss on subsidiary pension, net of tax Ending balance Foreign currency translation adjustment Beginning balance Translation loss, net of tax Ending balance

(1,235)

Total accumulated other comprehensive loss

$

(1,238)

(1,091) $

(1,104)

(422) $

(433)

Note 18. Regulatory Capital and Other Regulatory Matters We are required to comply with a wide variety of laws and regulations. The International Segment includes the operations of certain stand-alone entities that operate in local markets as either banks or regulated finance companies and 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. The following table lists the most recently reported minimum statutory capital requirements and the actual statutory capital for our significant regulated international banks by country: Minimum Capital Requirement

Germany Brazil

8.6% 11.0%

Actual Capital

17.2% 16.9%

Total assets of our regulated international banks and finance companies were approximately $12.6 billion and $11.1 billion at December 31, 2016 and 2015. 54

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 19. Quarterly Financial Data (unaudited) The following tables summarize supplementary quarterly financial information: First Quarter

Second Quarter

Third Quarter

Fourth Quarter

2016 Total revenue Income before income taxes Net income

$ $ $

2,075 225 164

$ $ $

2,292 266 189

$ $ $

2,499 228 147

$ $ $

2,692 194 254

2015 Total revenue Income before income taxes Net income

$ $ $

1,354 214 150

$ $ $

1,515 225 186

$ $ $

1,707 231 179

$ $ $

1,878 167 131

Note 20. Guarantor 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 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 December 31, 2016 and December 31, 2015 and for the years ended December 31, 2016, 2015, and 2014 (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.

55

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING BALANCE SHEET December 31, 2016 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

ASSETS Cash and cash equivalents

$

Finance receivables, net Leased vehicles, net



$

2,284

$

917

$



$

3,201



4,969

38,221



43,190





34,526



34,526

1,095



101



1,196

Equity in net assets of non-consolidated affiliates





944



944

Property and equipment, net



152

127



279

502

89

274

(591)

274



25

485



4

643

3,167

(169)

3,645

24,548

16,065



(40,613)



8,986

6,445



(15,431)

Goodwill

Deferred income taxes Related party receivables Other assets Due from affiliates Investment in affiliates Total assets

$

510



35,135

$

30,672

$

78,762

$

(56,804)

$

87,765



$



$

39,439

$

(169)

$

39,270

LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Secured debt

$

Unsecured debt

26,076



8,530



34,606

302

273

899



1,474

Deferred income





2,365



2,365

Deferred income taxes





811

(591)

220

Related party payables

1



399



400

Other liabilities

63

417

257



737

Due to affiliates



24,437

16,176

(40,613)



26,442

25,127

68,876

(41,373)

79,072





698

(698)



6,505

79

5,345

(5,424)

6,505

(161)

Accounts payable and accrued expenses

Total liabilities Shareholder's equity Common stock Additional paid-in capital Accumulated other comprehensive loss

(1,223)

1,384

(1,238)

Retained earnings

3,426

5,627

5,066

(10,693)

3,426

Total shareholder's equity

8,693

5,545

9,886

(15,431)

Total liabilities and shareholder's equity

(1,238)

$

35,135

56

$

30,672

$

78,762

$

(56,804)

8,693 $

87,765

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING BALANCE SHEET December 31, 2015 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

ASSETS Cash and cash equivalents

$

Finance receivables, net Leased vehicles, net



$

2,259

$

802

$



$

3,061



4,808

31,973



36,781





20,172



20,172

1,095



94



1,189

Equity in net assets of non-consolidated affiliates





986



986

Property and equipment, net



41

178



219

212



179

(160)

231

Related party receivables



27

546



573

Other assets

32

92

2,568



2,692

15,573

7,556



(23,129)

8,476

6,425



(14,901)

Goodwill

Deferred income taxes

Due from affiliates Investment in affiliates Total assets

$

25,388

$

21,208

$

57,498

$



$



$

30,689

$

(38,190)

— — $

65,904

$

30,689

LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Secured debt

$

Unsecured debt



17,087



6,570



23,657

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)



17,336

16,535

47,270

(23,289)

57,852





698

(698)



6,484

79

6,490

(6,569)

6,484

(175)

Accounts payable and accrued expenses

Total liabilities Shareholder's equity Common stock Additional paid-in capital Accumulated other comprehensive loss

(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)

Total liabilities and shareholder's equity

(1,104)

$

25,388

57

$

21,208

$

57,498

$

(38,190)

8,052 $

65,904

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2016 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— (1)

432 — 883

— (675)

3,329 5,925 304

(1)

1,315

8,919

(675)

9,558

— 2

597 200

256 837

— (402)

853 637

2 — — 557

797 — 378 296

1,093 4,529 291 1,528

(402) — — (273)

1,490 4,529 669 2,108

559 994

1,471 771

7,441 151

(675) (1,765)

8,796 151

1,629 568

(1,765) —

913 159



$

$

2,897 5,925 97

$



$

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income Income before income taxes

434 (320)

615 (89)

Income tax (benefit) provision Net income

$

754

$

704

$

1,061

$

(1,765)

$

754

Comprehensive income

$

620

$

718

$

933

$

(1,651)

$

620

58

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2015 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— 13

403 — 505

13

908

5,924

(391)

6,454

— 64

332 105

394 649

— (251)

726 567

64 — — 488

437 — 398 18

1,043 2,200 226 1,250

(251) — — (140)

1,293 2,200 624 1,616

552 941

853 579

4,719 116

(391) (1,520)

5,733 116

402 (244)

634 25

1,321 410

(1,520) —

837 191



$

$

2,978 2,807 139

$

— — (391)

$

3,381 2,807 266

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income Income before income taxes Income tax (benefit) provision Net income

$

646

$

609

$

911

$

(1,520)

$

646

Comprehensive (loss) income

$

(25)

$

498

$

225

$

(723)

$

(25)

59

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2014 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— — 68

$

194 — 432

68

626

— 159

249 (17)

159 — — 232

$

3,281 1,090 178

$

— — (389)

$

3,475 1,090 289

4,549

(389)

4,854

365 657

— (251)

614 548

232 — 334 23

1,022 847 270 1,309

(251) — — (138)

1,162 847 604 1,426

391 757

589 523

3,448 —

(389) (1,280)

4,039 —

434 (103)

560 12

1,101 369

(1,280) —

815 278

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income Income before income taxes Income tax (benefit) provision Net income

$

537

$

548

$

732

$

(1,280)

$

537

Comprehensive income

$

93

$

491

$

298

$

(789)

$

93

60

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Cash flows from operating activities Net income

$

754

$

704

$

1,061

$

(1,765)

$

754

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

37

26

4,776



4,839

Accretion and amortization of loan and leasing fees



17

(1,189)



(1,172) (29)

Amortization of carrying value adjustment



Undistributed earnings of non-consolidated affiliates, net

(994)

Provision for loan losses



Deferred income taxes

(313)

Stock-based compensation expense

(26)



(22)

1,765

378

291



669

(390)

(22)

745



42



1



25

(299)

289

11



1

18

(347)

(114)



(443)

117

(438)

535



214

24

Other operating activities

(3) (771)

Changes in assets and liabilities: Other assets Accounts payable and accrued expenses Taxes payable

(1)



(1)



Related party payables





5



5

6,073



4,881

Net cash (used in) provided by operating activities

(657)

(535)

(2)

Cash flows from investing activities Purchases of retail finance receivables, net



(15,847)

(20,080)

Principal collections and recoveries on retail finance receivables



1,542

11,630

Proceeds from transfer of retail finance receivables, net



13,897

4,234

Net funding of commercial finance receivables



Purchases of leased vehicles, net



Proceeds from termination of leased vehicles



Purchases of property and equipment



(82)

(25)



Other investing activities



(169)

(7)

169

Net change in due from affiliates

(191)

(8,966)

Net change in investment in affiliates

13,172

(18,131)





(2,981)



(19,612)



(19,612)



2,557



2,557



787

(8,627)

(17,796)



(2,790)

(8,508)

339

Net cash used in investing activities

18,131

(7)

17,474



(8,571)

(107) —

(1,126)

(24,093)



16,517

(24,774)

Cash flows from financing activities Net change in debt (original maturities less than three months) Borrowings and issuance of secured debt Payments on secured debt

8



772





29,590



780

(169)

29,421





(20,266)



(20,266)

Borrowings and issuance of unsecured debt

10,320



2,962



13,282

Payments on unsecured debt

(1,000)



(1,837)



(2,837)

Borrowings on related party line of credit Payments on related party line of credit Net capital contributions Debt issuance costs Net change in due to affiliates Net cash provided by financing activities

418







418

(418)







(418)





(1,126)

1,126

(44)



(102)





9,071

8,403

(17,474)



9,284

9,071

18,396

(16,517)

20,234

Net increase in cash, cash equivalents and restricted cash



Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash





Cash, cash equivalents and restricted cash at beginning of period



2,319

Cash, cash equivalents and restricted cash at end of period

$

— (146)



(35)

$

2,284

376



(41)



2,683 $

3,018

341 (41)

— $



The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidating balance sheet:

5,002 $

5,302

General Motors Financial Company, Inc. Cash and cash equivalents

$



Restricted cash included in other assets Total cash, cash equivalents and restricted cash as presented in the consolidating statements of cash flows

$

— $



61

NonGuarantors

Guarantor 2,284

$

— $

2,284

917

Eliminations $

2,101 $

3,018



Consolidated $

— $



3,201 2,101

$

5,302

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Cash flows from operating activities Net income

$

646

$

609

$

911

$

(1,520)

$

646

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

28

3

Accretion and amortization of loan and leasing fees



25

(634)



(609)

Amortization of carrying value adjustment



(14)

(135)



(149)

(579)

(116)

1,520

(116)

398

226



624

(189)

2

319



132

Stock-based compensation expense

33



3



36

Other operating activities

32

(5)

(64)



(37)

Undistributed earnings of non-consolidated affiliates, net

(941)

Provision for loan losses



Deferred income taxes

2,372



2,403

Changes in assets and liabilities: Other assets

(3)

25

(397)



(375)

531

(349)



282

(12)

1

(9)



(20)

(636)







(636)

(14)



Accounts payable and accrued expenses

100

Taxes payable Related party taxes payable Related party payables

1

Net cash (used in) provided by operating activities



(941)

996

2,113

(13)



2,168

Cash flows from investing activities Purchases of retail finance receivables, net



Principal collections and recoveries on retail finance receivables



755

10,971

Proceeds from transfer of retail finance receivables, net



10,428

3,033

Net funding of commercial finance receivables



6

(1,023)



(1,017)

Purchases of leased vehicles, net





(15,337)



(15,337)

Proceeds from termination of leased vehicles





1,096



1,096





(1,049)

Acquisition of international operations

(13,997)

(513)

(16,981)

(536)

13,461

(17,517)



11,726

(13,461)



Disposition of equity interest



125





125

Purchases of property and equipment



(21)

(69)



(90)

Other investing activities





30



30 —

Net change in due from affiliates Net change in investment in affiliates Net cash used in investing activities

(8,819)

(5,593)



14,412

(6)

(1,893)



1,899

(9,338)

(10,726)

(18,280)



16,311

(22,033)

Cash flows from financing activities Net change in debt (original maturities less than three months)





1,147



1,147

Borrowings and issuance of secured debt





22,385



22,385

Payments on secured debt





(15,178)



(15,178)

9,687



3,290



12,977





(1,709)



(1,709)

Net capital contributions

649



1,899

Debt issuance costs

(58)



Borrowings and issuance of unsecured debt Payments on unsecured debt

Other Net change in due to affiliates Net cash provided by financing activities

(1,899)

(97)

1





9,766

4,646

(14,412)





(16,311)

20,117

10,279

9,766

16,383



36

216



Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash





(295)



Cash, cash equivalents and restricted cash at beginning of period



2,283

$

(155)



Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at end of period

649





$

2,319

2,762 $

2,683

1

252 (295)

— $



The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidating balance sheet:

5,045 $

5,002

General Motors Financial Company, Inc. Cash and cash equivalents

$



Restricted cash included in other assets Total cash, cash equivalents and restricted cash as presented in the consolidating statements of cash flows

$

— $



62

NonGuarantors

Guarantor 2,259

$

60 $

2,319

802

Eliminations $

1,881 $

2,683



Consolidated $

— $



3,061 1,941

$

5,002

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Cash flows from operating activities Net income

$

537

$

548

$

732

$

(1,280)

$

537

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

14

2

976



992

Accretion and amortization of loan and leasing fees



4

(367)



(363)

(4)

(230)



(234)

Amortization of carrying value adjustment



Undistributed earnings of non-consolidated affiliates, net

(757)

Provision for loan losses Deferred income taxes Stock-based compensation expense Other operating activities

(523)



1,280





334

270



604

(211)



(83)

1

127

18



1



19

137

(2)

47



182

Changes in assets and liabilities, net of assets and liabilities acquired: Other assets

(18)

(14)

(53)



(85)

Accounts payable and accrued expenses

36

(25)

122



133

Taxes payable

(3)



(60)



(63)

Related party taxes payable

(7)







(7)

Related party payable





5



5

447

1,232



1,637

Net cash (used in) provided by operating activities

(42)

Cash flows from investing activities Purchases of retail finance receivables, net



(8,220)

Principal collections and recoveries on retail finance receivables



(99)

Proceeds from transfer of retail finance receivables, net



Net funding of commercial finance receivables



Purchases of leased vehicles, net





Proceeds from termination of leased vehicles





533



533

Acquisition of international operations

(46)







(46)

Purchases of property and equipment



(20)

(32)



(52)

Other investing activities





(2)



(400)

3,992

Net change in due from affiliates Net change in investment in affiliates

(443)

(357)

(27) (2,568)

(14,749)



1,423

(128)

(3,552)

7,792

10,959

6,369

(3,149)

Net cash used in investing activities

(14,321)

10,860

(7,792)



(1,770)



(1,898)

(4,882)



(4,882)



(2) —

384

(8,492)



4,376

(10,236)

Cash flows from financing activities Net change in debt (original maturities less than three months)





470



470

Borrowings and issuance of secured debt





21,080



21,080 (16,890)

Payments on secured debt





(16,890)



3,500



3,674



7,174





(1,889)



(1,889)

Net capital contribution

996



382

Debt issuance costs

(39)



(88)

(863)

3,989

866

(3,992)



(4,374)

10,814

Borrowings and issuance of unsecured debt Payments on unsecured debt

Net change in due to affiliates Net cash provided by financing activities

3,594

3,989

7,605

Net increase in cash, cash equivalents and restricted cash



1,868

345

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash





Cash, cash equivalents and restricted cash at beginning of period



415

Cash, cash equivalents and restricted cash at end of period

$



63

$

2,283

(382)

(199) 2,762

(127)

2

2,215

(2)

2,616 $

996



(201)

— $



3,031 $

5,045

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure We had no disagreements on accounting or financial disclosure matters with our independent accountants to report under this Item 9. Item 9A. 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 specified time periods 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 December 31, 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 December 31, 2016. Management's Report On Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. GAAP. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, misstatements due to error or fraud may not be prevented or detected on a timely basis. Our management performed an assessment of the effectiveness of our internal control over financial reporting at December 31, 2016, utilizing the criteria discussed in the “Internal Control - Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. The objective of this assessment was to determine whether our internal control over financial reporting was effective at December 31, 2016. Based on management's assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2016. Changes in Internal Control Over Financial Reporting There were no changes made to our internal control over financial reporting during the quarter ended December 31, 2016, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting. PART III Items 10, 11, 12 and 13 Omitted in accordance with General Instruction I to Form 10-K. Item 14. Principal Accounting Fees and Services Years Ended December 31, 2016

2015

2014

(in millions)

Deloitte & Touche LLP Audit Fees(a)

$

7

$

10

Audit Related Fees(b)

$

3

Total Fees

6

$

6

$

11

3 $

9

5

_________________ (a) Audit Fees include the annual financial statement audit (including quarterly reviews, subsidiary audits and other procedures required to be performed by the independent registered public accounting firm to be able to form an opinion on our consolidated financial statements). (b) Audit-Related Fees are assurance and related services that are reasonably related to the performance of the audit or review of our financial statements or that are traditionally performed by the independent registered public accounting firm. Audit-Related Fees include, among other things, agreed-upon procedures and other services pertaining to our securitization program and other warehouse credit facility reviews; the attestations required by the requirements of Regulation AB; and accounting consultations related to accounting, financial reporting or disclosure matters not classified as "Audit Fees." 64

Table of Contents Fees for tax services including tax compliance and related advice were $130,000, $178,000 and $168,000 for 2016, 2015, and 2014. As a wholly-owned subsidiary of General Motors Company, audit and non-audit services provided by our independent auditor are subject to General Motors Company's Audit Committee pre-approval policies and procedures. The Audit Committee pre-approved all services provided by, and all fees of, our independent auditor. PART IV Item 15. Exhibits and Financial Statement Schedules (1)

The following Consolidated Financial Statements as set forth in Item 8 of this report are filed herein.

Consolidated Financial Statements Consolidated Balance Sheets as of December 31, 2016 and 2015. Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2016, 2015, and 2014. Consolidated Statements of Shareholder's Equity for the years ended December 31, 2016, 2015, and 2014. Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015, and 2014. Notes to Consolidated Financial Statements (2) All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are either not required under the related instructions, are inapplicable, or the required information is included elsewhere in the Consolidated Financial Statements and incorporated herein by reference. (3) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Index to Exhibits. 65

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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, on February 7, 2017. GENERAL MOTORS FINANCIAL COMPANY, INC. BY:

/s/ DANIEL E. B ERCE Daniel E. Berce President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Signature

/s/ DANIEL E. B ERCE

Title

Date

Director, President and Chief Executive Officer (Principal Executive Officer)

February 7, 2017

Executive Vice President and Chief Financial Officer

February 7, 2017

Executive Vice President and Chief Accounting Officer (Principal Accounting Officer)

February 7, 2017

Director

February 7, 2017

Director

February 7, 2017

Daniel E. Berce

/s/ C HRIS A. C HOATE Chris A. Choate

/s/ C ONNIE C OFFEY Connie Coffey

/s/ DANIEL AMMANN Daniel Ammann

/s/ C HARLES K. STEVENS III Charles K. Stevens III

66

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. INDEX TO EXHIBITS The following documents are filed as a part of this report. Those exhibits previously filed and incorporated herein by reference are identified by the exhibit numbers used in the report with which they were filed. Exhibit No.

Description

2.1

Agreement and Plan of Merger, dated July 21, 2010, among General Motors Holdings LLC, Goalie Texas Holdco Inc. and AmeriCredit Corp., incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed on July 26, 2010.

Incorporated by Reference

3.1

Amended and Restated Certificate of Formation of General Motors Financial Company, Inc. (formerly known as AmeriCredit Corp.), incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K, filed on October 1, 2010.

Incorporated by Reference

3.2

Certificate of Amendment to the Amended and Restated Certificate of Formation of General Motors Financial Incorporated by Company, Inc., incorporated herein by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q for the quarter Reference ended June 30, 2016, filed with the Securities and Exchange Commission.

3.3

Second Amended and Restated Bylaws of General Motors Financial Company, Inc., incorporated herein by reference to Exhibit 3.2 of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission.

Incorporated by Reference

4.1

Certificate of Merger merging Goalie Texas Holdco Inc. with and into AmeriCredit Corp., incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on October 1, 2010.

Incorporated by Reference

4.2

Indenture, dated June 1, 2011, between General Motors Financial Company, Inc. and Deutsche Bank Trust Company Americas, concerning GM Financial's $500 million 6.75% Senior Notes due 2018, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on June 3, 2011.

Incorporated by Reference

4.3

Indenture, dated August 16, 2012, between General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., the guarantor, and Wells Fargo Bank, N.A., as trustee, concerning GM Financial's $1 billion 4.75% Senior Noted due 2017, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on August 16, 2012

Incorporated by Reference

4.4

Indenture, dated May 14, 2013, between General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., the guarantor, and Wells Fargo Bank, N.A., as trustee, concerning GM Financial's $1 billion 2.75% Senior Noted due 2016, $750 million 3.25% Senior Notes due 2018 and $750 million 4.25% Senior Notes due 2013, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on May 14, 2013.

Incorporated by Reference

4.5

Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

4.5.1

First Supplemental Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.625% Senior Notes due 2017, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

4.5.2

Second Supplemental Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.500% Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

4.5.3

Third Supplemental Indenture, dated September 25, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.000% Senior Notes due 2017, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on September 25, 2014.

Incorporated by Reference

67

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Exhibit No.

Description

4.5.3.1

First Amendment to Third Supplemental Indenture, dated October 17, 2014, incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q, filed on October 23, 2014.

Incorporated by Reference

4.5.4

Fourth Supplemental Indenture, dated September 25, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.375% Senior Notes due 2021, incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on September 25, 2014.

Incorporated by Reference

4.5.4.1

First Amendment to Fourth Supplemental Indenture, dated October 17, 2014, incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, filed on October 23, 2014.

Incorporated by Reference

4.6

Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.1

First Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the Floating Rate Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.2

Second Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., Incorporated by AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with Reference respect to the 3.150% Senior Notes due 2020, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on January 13, 2015.

4.6.3

Third Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.000% Senior Notes due 2025, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on January 13, 2015.

4.6.4

Fourth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., Incorporated by AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with Reference respect to the Floating Rate Senior Notes due 2018, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on April 13, 2015.

4.6.5

Fifth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.400% Senior Notes due 2018, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on April 13, 2015.

Incorporated by Reference

4.6.6

Sixth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.450% Senior Notes due 2022, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on April 13, 2015.

Incorporated by Reference

4.6.7

Seventh Supplemental Indenture, dated July 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.200% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on July 13, 2015.

Incorporated by Reference

4.6.8

Eighth Supplemental Indenture, dated July 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.300% Senior Notes due 2025, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on July 13, 2015.

Incorporated by Reference

68

Incorporated by Reference

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Exhibit No.

Description

4.7

Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on October 13, 2015.

Incorporated by Reference

4.7.1

First Supplemental Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.100% Senior Notes due 2019, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on October 13, 2015.

Incorporated by Reference

4.7.2

Second Supplemental Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., Incorporated by AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with Reference respect to the Floating Rate Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on October 13, 2015.

4.7.3

Third Supplemental Indenture, dated November 24, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.700% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on November 24, 2015.

Incorporated by Reference

4.7.4

Fourth Supplemental Indenture, dated March 1, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.200% Senior Notes due 2021, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on March 1, 2016.

Incorporated by Reference

4.7.5

Fifth Supplemental Indenture, dated March 1, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 5.250% Senior Notes due 2026, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on March 1, 2016.

Incorporated by Reference

4.7.6

Sixth Supplemental Indenture, dated May 9, 2016, by and among General Motors Financial Company, Inc., Incorporated by AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with Reference respect to the Floating Rate Senior Notes due 2019, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on May 9, 2016.

4.7.7

Seventh Supplemental Indenture, dated May 9, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.400% Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on May 9, 2016.

Incorporated by Reference

4.7.8

Eighth Supplemental Indenture, dated May 9, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.700% Senior Notes due 2023, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on May 9, 2016.

Incorporated by Reference

4.7.9

Ninth Supplemental Indenture, dated July 5, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.200% Senior Notes due 2021, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on July 5, 2016.

Incorporated by Reference

4.7.10

Tenth Supplemental Indenture, dated October 6, 2016, by and among General Motors Financial Company, Inc., Incorporated by AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with Reference respect to the Floating Rate Senior Notes due 2019, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on October 6, 2016. 69

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Exhibit No.

Description

4.7.11

Eleventh Supplemental Indenture, dated October 6, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.350% Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on October 6, 2016.

Incorporated by Reference

4.7.12

Twelfth Supplemental Indenture, dated October 6, 2016, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.000% Senior Notes due 2026, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on October 6, 2016.

Incorporated by Reference

10.1

Sale and Servicing Agreement, dated as of February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.1 to the Current Report on Form 8-K, filed on March 2, 2010.

Incorporated by Reference

10.1.1

Indenture, dated February 26, 2010, among AmeriCredit Syndicated warehouse Trust, Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.2 to the Current Report on Form 8-K, filed on March 2, 2010.

Incorporated by Reference

10.1.2

Note Purchase Agreement, dated February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.3 to the Current Report on Form 8-K, filed on March 2, 2010.

Incorporated by Reference

10.1.3

First Supplemental Indenture, dated August 20, 2010, between AmeriCredit Syndicated Warehouse Trust and Wells Fargo Bank, N A, incorporated herein by reference to Exhibit 10.11.3 to the Annual Report on Form 10-K, filed on August 27, 2010.

Incorporated by Reference

10.1.4

Amendment No. 1, dated August 20, 2010, to Sale and Servicing Agreement, dated February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated herein by reference to Exhibit 10.11.4 to the Annual Report on Form 10-K, filed on August 27, 2010.

Incorporated by Reference

10.1.5

Omnibus Amendment to the Sale and Servicing Agreement, the Indenture and Note Purchase Agreement, dated February 17, 2011, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG, New York Branch, and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on February 22, 2011.

Incorporated by Reference

10.1.6

Fourth Omnibus Amendment to the Sale and Servicing Agreement, the Indenture, the Custodian Agreement and Incorporated by the Note Purchase Agreement, dated May 10, 2012, among AmeriCredit Syndicated Warehouse Trust, as Issuer, Reference AmeriCredit Funding Corp. XI, as a Seller, AmeriCredit Financial Services, Inc., as a Seller and as Servicer, Deutsche Bank AG, New York Branch, as Administrative Agent, Wells Fargo Bank, National Association, as Trustee, Backup Servicer and Trust Collateral Agent, the Purchasers that are party to the Note Purchase Agreement and the Agents that are party to the Note Purchase Agreement, , incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on May 11, 2012.

10.2

2011-A Servicing Supplement, dated January 31, 2011, among ACAR Leasing Ltd., AmeriCredit Financial services, Inc., APGO Trust and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on February 4, 2011.

Incorporated by Reference

10.2.1

Indenture, dated January 31, 2011, among GMF Leasing Warehouse Trust, Wells Fargo Bank, National Association, AmeriCredit Financial services, Inc., Deutsche Bank AG, New York Branch, and JPMorgan Chase Bank, N.A., incorporated herein by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed on February 4, 2011.

Incorporated by Reference

70

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Exhibit No.

Description

Incorporated by Reference

10.2.2

Second Omnibus Amendment to the Credit and Security Agreement, the 2011-A Exchange Note Supplement, the Indenture, the Note Purchase Agreement, the Amended and Restated Servicing Agreement and the 2011-A Servicing Supplement, dated January 30, 2012, by and among GMF Leasing Warehouse Trust, as Issuer, AmeriCredit Financial Services, Inc., ACAR Leasing Ltd., as Titling Trust, GMF Leasing LLC, as Seller, APGO Trust, as Settlor, Deutsche Bank AG, New York Branch, as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the DB Purchaser Group, JPMorgan Chase Bank, N.A., as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the JPM Purchaser Group, and Wells Fargo Bank, National Association, as Administrative Agent (under the 2011-A Exchange Note Supplement and the Credit and Security Agreement), Collateral Agent, Indenture Trustee and 2011-A Exchange Noteholder, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on February 3, 2012.

10.2.3

Third Omnibus Amendment to the Credit and Security Agreement, the 2011-A Exchange Note Supplement, the Incorporated by Indenture, the Note Purchase Agreement and the 2011-A Servicing Supplement, dated January 25, 2013, by and Reference among GMF Leasing Warehouse Trust, as Issuer, AmeriCredit Financial Services, Inc., ACAR Leasing Ltd., as Titling Trust, GMF Leasing LLC, as Seller, APGO Trust, as Settlor, Deutsche Bank AG, New York Branch, as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the DB Purchaser Group, JPMorgan Chase Bank, N.A., as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the JPM Purchaser Group, and Wells Fargo Bank, National Association, as Administrative Agent (under the 2011-A Exchange Note Supplement), Collateral Agent, Indenture Trustee and 2011-A Exchange Noteholder, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on January 31, 2013.

10.3

2011-A Servicing Supplement, dated July 15, 2011, among GM Financial Canada Leasing Ltd., FinanciaLinx Corporation, GMF Canada Leasing Trust, Deutsche Bank AG, Canada Branch, and BMO Nesbitt Burns Inc., incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.1

Series 2011-A Indenture Supplement, dated July 15, 2011, among ComputerShare Trust Company of Canada, BNY trust Company of Canada, Deutsche Bank AG, Canada Branch and BMO Nesbitt Burns Inc., incorporated herein by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.2

Note Purchase Agreement, dated July 15, 2011, among GMF Canada Leasing Trust, FinanciaLinx Corporation, GM Financial Canada Leasing Ltd., Deutsche Bank AG, Canada Branch, BMO Nesbitt Burns Inc. and BNY Trust Company of Canada, incorporated herein by reference to Exhibit 99.3 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.3

First Omnibus Amendment to the 2011-A Borrower Note Supplement, the Note Purchase Agreement, the Servicing Agreement and the 2011-A Servicing Supplement, dated as of July 13, 2012, by and among Computershare Trust Company of Canada in its capacity as trustee of GMF Canada Leasing Trust, as Issuer, GM Financial Canada Leasing Ltd., as Borrower, FinanciaLinx Corporation, individually and in its capacity as Servicer, Deutsche Bank AG, Canada Branch, as an Administrative Agent, BMO Nesbitt Burns Inc., as an Administrative Agent, BNY Trust Company of Canada, as Indenture Trustee, the Purchasers identified on the signature pages thereto, AmeriCredit Financial Services, Inc., as Performance Guarantor, and the Agents identified on the signature pages thereto, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8K, filed on July 19, 2012.

Incorporated by Reference

10.4

Second Amended and Restated Three Year Revolving Credit Agreement, dated as of May 26, 2016, among General Motors Company, General Motors Financial Company, Inc., GM Europe Treasury Company AB, General Motors do Brasil Ltda., the other subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Banco do Brasil S.A., as administrative agent for the Brazilian lenders, and Citibank, N.A., as syndication agent incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on June 2, 2016.

Incorporated by Reference

10.5

Purchase and Sale Agreement, dated as of November 21, 2012, among Ally Financial Inc., General Motors Financial Company, Inc. and General Motors Company, incorporated herein by reference to Exhibit 10.10 to the Annual Report on Form 10-K, filed on February 15, 2013.

Incorporated by Reference

71

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. Exhibit No.

Description

10.6

Share Transfer Agreement, dated as of November 21, 2012, between Ally Financial Inc. and General Motors Financial Company, Inc., incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, filed on May 2, 2013.

Incorporated by Reference

10.7

Share and Interest Purchase Agreement, dated as of December 19, 2013, between General Motors Financial Company, Inc. and GM Europe Service GmbH, incorporated herein by reference to Exhibit 10.12 to the Annual Report on Form 10-K, filed on February 6, 2014.

Incorporated by Reference

10.8

Support Agreement, dated as of September 4, 2014, between General Motors Company and General Motors Financial Company, Inc., incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on September 4, 2014.

Incorporated by Reference

10.9

Second Amended and Restated Five Year Revolving Credit Agreement, dated as of May 26, 2016, among General Motors Company, General Motors Financial Company, Inc., General Motors do Brasil Ltda., the other subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Banco do Brasil S.A., as administrative agent for the Brazilian lenders, and Citibank, N.A., as syndication agent, incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K, filed on June 2, 2016.

Incorporated by Reference

12.1

Computation of Ratio of Earnings to Fixed Charges

Filed Herewith

23.1

Consent of Independent Registered Public Accounting Firm

Filed Herewith

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

Filed Herewith

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

Filed Herewith

72

Exhibit 12.1 GENERAL MOTORS FINANCIAL COMPANY, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (dollars in millions) Years Ended December 31, 2016

2015

2014

2013

2012

COMPUTATION OF EARNINGS: Income before income taxes and equity income

$

Fixed charges

891

$

2,118

721

$

1,609

815

$

1,402

883

$

744

724

319

$

3,009

$

2,330

$

2,217

$

1,607

$

1,063

$

2,108

$

1,600

$

1,393

$

717

$

315

$

319

COMPUTATION OF FIXED CHARGES: Fixed charges:(a) Interest expense(b) Implicit interest in rent

10 $

RATIO OF EARNINGS TO FIXED CHARGES

2,118 1.4X

9 $

1,609 1.4X

9 $

1,402 1.6X

7 $

724 2.2X

4

3.3X

_________________ (a) For purposes of such computation, the term "fixed charges" represents interest expense, including amortization of debt issuance costs, and a portion of rentals representative of an implicit interest factor for such rentals. (b) For 2015, 2014, 2013, and 2012 interest expense excludes $(16) million, $(33) million, $(4) million and $32 million of purchase accounting adjustments.

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in Registration Statement No. 333-206678 on Form S-3 of our report dated February 7, 2017, relating to the consolidated financial statements of General Motors Financial Company, Inc. and subsidiaries appearing in this Annual Report on Form 10-K of General Motors Financial Company, Inc. for the year ended December 31, 2016. /s/Deloitte & Touche LLP Fort Worth, Texas February 7, 2017

Exhibit 31.1 GENERAL MOTORS FINANCIAL COMPANY, INC.

CERTIFICATIONS I, Daniel E. Berce, certify that: (1) (2) (3) (4)

(5)

I have reviewed the Annual Report on Form 10-K of General Motors Financial Company, Inc. (the "Company") for the year ended December 31, 2016 (this "report"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize, and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Dated: February 7, 2017 /s/ Daniel E. Berce Daniel E. Berce President and Chief Executive Officer

Exhibit 31.1 GENERAL MOTORS FINANCIAL COMPANY, INC. I, Chris A. Choate, certify that: (1) (2) (3) (4)

(5)

I have reviewed the Annual Report on Form 10-K of General Motors Financial Company, Inc. (the "Company") for the year ended December 31, 2016 (this "report"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Dated: February 7, 2017 /s/ Chris A. Choate Chris A. Choate Executive Vice President and Chief Financial Officer

Exhibit 32.1 GENERAL MOTORS FINANCIAL COMPANY, INC. CERTIFICATION OF PERIODIC REPORT PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT OF 2002 I, Daniel E. Berce, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that: (1) (2)

The Annual Report on Form 10-K of the Company for the year ended December 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 7, 2017 /s/ Daniel E. Berce Daniel E. Berce President and Chief Executive Officer

Exhibit 32.1 GENERAL MOTORS FINANCIAL COMPANY, INC. CERTIFICATION OF PERIODIC REPORT PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT OF 2002 I, Chris A. Choate, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that: (1) (2)

The Annual Report on Form 10-K of the Company for the year ended December 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 7, 2017 /s/ Chris A. Choate Chris A. Choate Executive Vice President and Chief Financial Officer

Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________

FORM 10-K (Mark One)

ý

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2015 OR

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)

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) Securities registered pursuant to Section 12(b) of the Act: None (Title of each class) Securities registered pursuant to Section 12(g) of the Act: None (Title of each class)

______________________________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No ý 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 ý No ¨ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K. ý 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 x Smaller Reporting Company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No ý As of February 2, 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. DOCUMENTS INCORPORATED BY REFERENCE NONE The registrant meets the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and is therefore filing this form on the reduced disclosure format.

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. INDEX TO FORM 10-K Page

Forward-Looking Statements and Industry Data

1

PART I Item 1. Item 1A. Item 2. Item 3. Item 4. Item 5. Item 6. Item 7. Item 7A. Item 8.

Item 9. Item 9A.

Business Risk Factors Properties Legal Proceedings Mine Safety Disclosures

2 7 13 13 13

PART II Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Consolidated Balance Sheets Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Shareholder's Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Note 2. Acquisition of Ally Financial International Operations Note 3. Finance Receivables Note 4. Leased Vehicles Note 5. Restricted Cash Note 6. Goodwill Note 7. Equity in Net Assets of Non-consolidated Affiliates Note 8. Debt Note 9. Variable Interest Entities Note 10. Derivative Financial Instruments and Hedging Activities Note 11. Commitments and Contingencies Note 12. Parent Company Stock-Based Compensation Note 13. Employee Benefit Plans Note 14. Income Taxes Note 15. Supplemental Cash Flow Information Note 16. Fair Values of Financial Instruments Note 17. Segment Reporting and Geographic Information Note 18. Accumulated Other Comprehensive (Loss) Income Note 19. Regulatory Capital and Other Regulatory Matters Note 20. Quarterly Financial Data (unaudited) Note 21. Guarantor Consolidating Financial Statements Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures

13 14 14 30 36 36 37 38 39 40 40 47 48 52 53 53 53 54 56 57 58 59 60 60 63 63 65 66 66 67 67 76 76

Table of Contents

Item 10. Item 11. Item 12. Item 13. Item 14. Item 15.

PART III Directors and Executives Officers and Corporate Governance Executive and Director Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationships, Related Transactions and Director Independence Principal Accounting Fees and Services PART IV Exhibits and Financial Statement Schedules Signatures Index to Exhibits

77 77 77 77 77 78 79 80

Table of Contents FORWARD-LOOKING STATEMENTS This Form 10-K 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 this 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; • General Motors Company's ("GM") ability to sell new vehicles that we finance in the markets we serve in North America, Europe, Latin America and China; • 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. INDUSTRY DATA In this Form 10-K, we rely on and refer to information regarding the automobile finance industry from market research reports, analyst reports and other publicly available information.

1

Table of Contents PART I ITEM 1. BUSINESS General General Motors Financial Company, Inc. (sometimes referred to as "we," "us," "our," the "Company,"or "GM Financial"), the wholly-owned captive finance subsidiary of GM, is a global provider of automobile finance solutions. We were acquired by GM in October 2010 to provide captive financing capabilities in support of GM’s U.S. and Canadian markets. In 2013, we expanded the markets we serve by acquiring Ally Financial Inc.'s ("Ally Financial") auto finance operations in Europe and Latin America. On January 2, 2015, we completed the acquisition of an equity interest in SAIC-GMAC Automotive Finance Company Limited (“SAIC-GMAC”), a joint venture that conducts auto finance operations in China, from Ally Financial. Our global footprint now covers over 85% of GM’s worldwide market, and we provide auto finance solutions around the world. North America Segment Our North America Segment includes operations in the U.S. and Canada. We have been operating in the automobile finance business in the U.S. since September 1992. Our retail automobile finance programs include prime and sub-prime lending and full credit spectrum leasing offered through GMfranchised 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. We therefore 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. Our commercial lending programs are offered primarily for GM-franchised dealers. International Segment Our International Segment includes operations in Europe and Latin America. European countries include Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom ("U.K."). Latin American countries include Brazil, Chile, Colombia, Mexico and Peru. The international operations have extensive histories in their respective regions of operation and broad global capabilities, having operated in Europe for over 90 years, Mexico and Brazil for over 70 years, and Chile and Colombia for over 30 years. The international operations were originally a part of General Motors Acceptance Corporation, the former captive finance subsidiary of GM. Due to this longstanding relationship, the international operations have substantial business related to GM and its dealer network. Additionally, we support GM auto sales in China through our joint venture relationship with SAIC-GMAC. Retail Finance In our retail finance business, use of the term "loan" refers to retail installment contracts we purchase from automobile dealers or other vehicle financing products. Marketing. As an indirect auto finance provider, we focus our marketing activities on automobile dealers. We primarily pursue franchised dealerships with new and used car operations; however, we also conduct business with a limited number of independent dealerships. We generally finance new GM vehicles, moderately-priced new vehicles from other manufacturers, and later-model, low-mileage used vehicles. In both segments, we maintain non-exclusive relationships with the dealers and actively monitor our dealer relationships with the objective of maximizing the volume of retail financing applications received from dealerships with whom we do business that meet our underwriting standards and profitability objectives. Due to the non-exclusive nature of our relationships with dealers, the dealers retain discretion to determine whether to obtain financing from us or from another source for a customer seeking to make a vehicle purchase. Subvention Programs. GM offers subvention programs, under which GM provides us cash payments in order for us to be able to provide lower payments on finance and lease contracts we purchase from GM's dealership network, making credit more affordable to customers purchasing vehicles manufactured by GM. Origination Data. Our business strategy is to help GM sell vehicles while earning an appropriate risk-adjusted return. This includes increasing new GM automobile sales by offering a broad spectrum of competitive financing programs. Our increasing linkage with GM in North America is evidenced by the percentage of loans and leases we originate for new GM vehicles, which increased to 84% of our total retail originations volume in 2015, up from 65% in 2014.

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Table of Contents The following table sets forth the retail loan and lease origination levels for the North America and International Segments (in millions): Years Ended December 31, 2015 North America

New GM Other

$

26,178 4,874

2014

International(a)

$

5,700 984

Total

$

31,878 5,858

North America

$

8,380 4,560

International(a)

Total

$

7,261 1,053

$

15,641 5,613

$ 31,052 $ 6,684 $ 37,736 $ 12,940 $ Total ________________ (a). Originations in the International Segment decreased due to the impact of foreign currency translation.

8,314

$

21,254

Underwriting. We utilize proprietary credit scoring systems to support our credit approval process. The credit scoring systems were developed through statistical analysis of customer demographics, credit bureau attributes and portfolio databases and are tailored to each country where we conduct business. Credit scoring is used to differentiate credit applications and to statistically rank-order credit risk in terms of expected default rates, which enables us to evaluate credit applications for approval, contract pricing and structure. In addition to our proprietary credit scoring systems, we utilize other underwriting guidelines. These underwriting guidelines are comprised of numerous evaluation criteria, including, but not limited to: (i) identification and assessment of the applicant's willingness and capacity to repay the loan or lease, including consideration of credit history and performance on past and existing obligations; (ii) credit bureau data; (iii) collateral identification and valuation; (iv) payment structure and debt ratios; (v) insurance information; (vi) employment, income and residency verifications, as considered appropriate; and (vii) in certain cases, the creditworthiness of a co-obligor. These underwriting guidelines, and the minimum credit risk profiles of applicants we will approve as rank-ordered by our credit scorecards, are subject to change from time to time based on economic, competitive and capital market conditions as well as our overall origination strategies. Servicing. Our business strategy includes increasing the loyalty and retention of GM customers through our customer service activities. Our servicing activities include collecting and processing customer payments, responding to customer inquiries, initiating contact with customers who are delinquent, maintaining our security interest in financed vehicles, monitoring physical damage insurance coverage of financed vehicles, and arranging for the repossession of financed vehicles, liquidation of collateral and pursuit of deficiencies when appropriate. Operating Leases. Most of our operating leases are closed-end leases; therefore, we assume the residual risk on the leased vehicle. The lessee may purchase the leased vehicle at lease end by paying the purchase price stated in the lease contract, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to the dealer by the lease's current scheduled lease end date. Extensions may be granted to the lessee for up to six months. If the lessee extends the maturity date on their lease contract, the lessee is responsible for additional monthly payments until the leased vehicle is returned or purchased. A lessee may terminate a lease prior to the original scheduled lease maturity date. In order to terminate the lease prior to the scheduled lease maturity date, the lessee must pay the lesser of (i) all remaining monthly payments due under the lease, plus any charges for excess mileage, wear and use or (ii) the amount by which the carrying value of the lease exceeds the net sale proceeds received when the leased vehicle is sold. We seek to maximize net sale proceeds on returned leased vehicles. Net sales proceeds equal gross auction proceeds less auction fees and costs for reconditioning and transporting the leased vehicles. We sell returned leased vehicles through our exclusive online channel, which is available to the dealer receiving the returned vehicle and other GM dealerships prior to broader dealer access and, if necessary, by disposition through our nationwide wholesale auction partners. Commercial Finance Overview. Our commercial lending products are offered primarily to GM-franchised dealers and their affiliates. These 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 parts and accessories and storage center financing. 3

Table of Contents Floorplan Financing. We support the financing of new and used vehicle inventory primarily for GM-franchised dealerships and their affiliates before sale or lease to the retail customer. Financing is provided through lines of credit extended to individual dealerships. In general, each floorplan line is secured by all financed vehicles and by other dealership assets and, when available, the continuing personal guarantee of the dealership's owners. Under certain circumstances, such as repossession of dealership inventory, GM and other manufacturers may be obligated by applicable law, or under agreements with us, to reassign or to repurchase new vehicle inventory within certain mileage and model year parameters, further minimizing our risk. The amount we advance to a dealership for new vehicles purchased through the manufacturer is equal to 100% of the wholesale invoice price of new vehicles, which includes destination and other miscellaneous charges, and a price rebate, known as a holdback, from the manufacturer to the dealer in varying amounts stated as a percentage of the invoice price. We advance the loan proceeds directly to the manufacturer. To support a dealership's used car inventory needs, we advance funds to the dealership or auction to purchase used vehicles for inventory based on the appropriate wholesale book value for the region in which the dealer is located. Floorplan lending is typically structured to yield interest at a floating rate indexed to an appropriate benchmark rate. The rate for a particular dealership is based on, among other things, the dealership's creditworthiness, the amount of the credit line, the dealer's risk rating and whether or not the dealership is in default. Interest on floorplan loans is generally payable monthly. Dealer Loans. We also make loans to finance parts and accessories as well as improvements to dealership facilities, to provide working capital and to purchase and finance dealership real estate. These loans are typically secured by mortgages or deeds of trust on dealership land and buildings, security interests in other dealership assets and often the continuing personal guarantees from the owners of the dealerships and/or the real estate, as applicable. Dealer loans are structured to yield interest at fixed or floating rates, which are indexed to an appropriate benchmark rate. Interest on dealer loans is generally payable monthly. Underwriting. Each dealership is assigned a risk rating based on various factors, including, but not limited to, capital sufficiency, operating performance, financial outlook and credit and payment history, if available. The risk rating affects loan pricing and guides management of the account. We monitor the level of borrowing under each dealership's account daily. When a dealer's outstanding balance exceeds the availability on any given credit line with that dealership, we may reallocate balances across existing lines, temporarily suspend the granting of additional credit, increase the dealer's credit line or take other actions following an evaluation and analysis of the dealer's financial condition and the cause of the excess or overline. Under the terms of the credit agreement with the dealership, we may call the floorplan loans due and payable and receive payment typically within 60 days of the call. Servicing. Commercial loan servicing activities include dealership customer service, account maintenance, exception processing, credit line monitoring and adjustment and insurance monitoring. In the North America Segment, our commercial lending servicing operations are centrally located, while in our International Segment, they are conducted primarily in-country, usually located within the retail lending and servicing centers. Upon the sale or lease of a financed vehicle, the dealer must repay the advance on the vehicle according to the repayment terms. These repayment terms may vary based on the dealer's risk rating. As a result, funds advanced may be repaid in a short time period, depending on the length of time the dealer holds the vehicle until its sale. We periodically inspect and verify that the financed vehicles are on the dealership lot and available for sale. The timing of the verifications varies and no advance notice is given to the dealer. Among other things, verifications are intended to determine dealer compliance with its credit agreement as to repayment terms and to determine the status of our collateral. Sources of Financing We primarily finance our loan, lease and commercial origination volume 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. We seek to fund our operations through local sources of funding to minimize currency and country risk, but may obtain financing outside local markets as necessary to meet funding requirements and diversify funding sources. 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. Our U.S., Canadian and Latin American operations are funded locally. Our European operations obtain most of their funding from local sources and also borrow funds from affiliated companies. We actively monitor the capital markets and seek to optimize our mix of funding sources to minimize our cost of funds. Secured Credit Facilities. Some loans and leases are funded using secured credit facilities with participating banks providing financing either directly or through institutionally-managed commercial paper conduits. Under these funding agreements, we transfer financial assets to special purpose finance subsidiaries. These subsidiaries, in turn, issue notes to the bank participants or agents, collateralized by such financial assets. The bank participants or agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of financial assets. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and 4

Table of Contents the assets held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. Advances under our funding agreements bear interest at commercial paper, London Interbank Offered Rates ("LIBOR"), Canadian Dollar Offered Rate ("CDOR"), Euro Interbank Offered Rate ("EURIBOR") or prime rates plus a credit spread and specified fees, depending upon the source of funds provided by the bank participants or agents. In certain markets in the International Segment, we also finance loans through the sale of receivables to banks under a full recourse arrangement. Unsecured Credit Facilities. The International Segment uses unsecured bank credit facilities as a source of funding. Both committed and uncommitted credit facilities are utilized. The financial institutions providing the uncommitted facilities are not obligated to advance funds under them. Securitizations. We also fund loans and leases through public and private securitization transactions. Proceeds from securitizations are primarily used to fund initial cash credit enhancement requirements in the securitization and to pay down borrowings under our credit facilities, thereby increasing availability thereunder for further originations. In our securitizations, we transfer loans or lease-related assets to securitization trusts ("Trusts"), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. When we transfer loans or lease-related assets to a Trust, we make certain representations and warranties regarding the loans and lease-related assets. These representations and warranties pertain to specific aspects of the loans or leases, including the origination of the loans or leases, the obligors of the loans or leases, the accuracy and legality of the records, schedules containing information regarding the loans or leases, the financed vehicles securing the loans or leases, the security interests in the loans or leases, specific characteristics of the loans or leases, and certain matters regarding our servicing of the loans or leases, but do not pertain to the underlying performance of the loans or leases. Upon the breach of one of these representations or warranties (subject to any applicable cure period) that materially and adversely affects the noteholders' interest in any loan or lease, we are obligated to repurchase the loan or lease from the Trust. Historically, repurchases due to a breach of a representation or warranty have been insignificant. We utilize senior subordinated securitization structures which involve the public and private sale of subordinated asset-backed securities to provide credit enhancement for the senior, or highest rated, asset-backed securities. The level of credit enhancement in future senior subordinated securitizations will depend, in part, on the net interest margin, collateral characteristics and credit performance trends of the assets transferred, as well as our credit trends and overall auto finance industry credit trends. Credit enhancement levels may also be impacted by our financial condition, the economic environment and our ability to sell lower-rated subordinated bonds at rates we consider acceptable. The credit enhancement requirements in our securitization transactions may include restricted cash accounts that are generally established with an initial deposit and may subsequently be funded through excess cash flows from securitized assets. An additional form of credit enhancement is provided in the form of overcollateralization, whereby the value of the loans or lease-related assets transferred to the Trusts is greater than the amount due on asset-backed securities issued by the Trusts. In the International Segment, our securitization transactions typically contain portfolio performance ratios which could increase the minimum credit enhancement levels. In the North America Segment, our securitization transactions typically do not contain these performance ratios. Senior Notes, Retail Customer Deposits and Other Unsecured Debt. We also access the capital markets in the North America and International Segments through the issuance of senior unsecured notes in the public markets. In Germany, we accept deposits from retail banking customers. In Latin America, we issue, to a limited extent, other unsecured debt through commercial paper offerings and other non-bank funding instruments. GM also provides us with financial resources through a $1.0 billion unsecured intercompany revolving credit facility (the "Junior Subordinated Revolving Credit Facility"). Trade Names We and GM have obtained federal trademark protection for the "AmeriCredit," "GM Financial" and "GMAC" names and the logos that incorporate those names. Certain other names, logos and phrases we use in our business operations have also been trademarked. Regulation Our operations are subject to regulation, supervision and licensing by governmental authorities under various national, state and local laws and regulations. North America Segment In the U.S., we are subject to extensive federal regulation, including the Truth in Lending Act, the Equal Credit Opportunity 5

Table of Contents Act and the Fair Credit Reporting Act. Additionally, we are subject to the Gramm-Leach-Bliley Act, which requires us to maintain the privacy of certain consumer data in our possession and to periodically communicate with consumers on privacy matters, and the Servicemembers Civil Relief Act, which has limitations on the interest rate charged to customers who have subsequently entered military service, and provides other protections such as early lease termination and restrictions on repossession. The primary federal agency responsible for ensuring compliance with these consumer protection laws is the Consumer Financial Protection Bureau (“CFPB”). The CFPB has broad rule-making, examination and enforcement authority over non-bank automobile finance companies such as us. On August 31, 2015, we became subject to supervision and examination by the CFPB as a “larger participant” in the automobile finance market. In most states and other jurisdictions in which we operate, a consumer credit regulatory agency regulates and enforces laws relating to sales finance companies and consumer lenders or lessors like us. These laws and regulations generally provide for licensing as a sales finance company or consumer lender or lessor, limitations on the amount, duration and charges, including interest rates, requirements as to the form and content of finance contracts and other documentation, and restrictions on collection practices and creditors' rights. In certain jurisdictions, we are subject to periodic examination by regulatory authorities. In Canada, we are subject to both federal and provincial laws and regulations, including the Interest Act, the Consumer Protection Acts and Cost of Credit Disclosure regulations. Additionally, we are subject to certain provincial Consumer Reporting Acts and the Personal Information Protection and Electronic Documents Act, as well as provincial counterparts, which regulates how we can collect, use, and/or disclose consumer’s personal information. International Segment In certain countries in the International Segment, we operate in local markets as either banks or regulated finance companies and are subject to legal and regulatory restrictions which vary country to country and which may change from time to time. The regulatory restrictions, among other things, may require that the regulated entities meet certain minimum capital requirements, may restrict dividend distributions and ownership of certain assets, and may require certain disclosures to prospective purchasers and lessees and restrict certain practices related to the servicing of consumer accounts. Competition The automobile finance market is highly fragmented and is served by a variety of financial entities, including the captive finance affiliates of other major automotive manufacturers, banks, thrifts, credit unions, leasing companies and independent finance companies. Many of these competitors have substantial financial resources, highly competitive funding costs and significant scale and efficiency. Capital inflows from investors to support the growth of new entrants in the automobile finance market, as well as growth initiatives from more established market participants has resulted in generally increasing competitive conditions. While we have a competitive advantage when GM-sponsored subvention programs are offered through us to targeted GM dealers and their customers, our competitors often provide financing on terms more favorable to customers or dealers than we may offer. Many of these competitors also have long standing relationships with automobile dealerships and may offer the dealerships or their customers other products and services, which we may not currently provide. Employees At December 31, 2015, we employed 6,267 people in the U.S. and Canada and 1,916 in other countries. In the U.S. and Canada, none of our employees are a part of a collective bargaining agreement, and our relationships with employees are satisfactory. Internationally, we participate in mandatory national collective bargaining agreements where required and maintain satisfactory working relationships with works councils and trade union representatives where they exist. Relationships with employees in general are good. 6

Table of Contents As of February 3, 2016, the names and ages of our executive officers and their positions with GM Financial are as follows: Name (Age)

Daniel E. Berce (62) Kyle R. Birch (55) Mark F. Bole (52) Steven P. Bowman (48) Chris A. Choate (53)

Connie Coffey (44) Michael S. Kanarios (45)

Susan B. Sheffield (49)

Present GMF Position (Effective Date)

President and Chief Executive Officer (2005) Executive Vice President and Chief Operating Officer - North America (2013) President, International Operations (2013)

Position Held During the Past Five Years if other than present GMF position (Effective Date)

Executive Vice President of Dealer Services (2003) Executive Vice President, International Operations for Ally Financial Inc. (2005)

Executive Vice President and Chief Credit and Risk Officer (2005) Executive Vice President and Chief Financial Officer (2005) Executive Vice President, Corporate Controller and Chief Accounting Officer (2014) Executive Vice President and Chief Operating Officer, International Operations (2015)

Executive Vice President and Treasurer (2014)

Executive Vice President, Corporate Controller (2012); and Senior Vice President, Accounting and Reporting (2002) Executive Vice President and Chief Financial Officer, International Operations (2013), Vice President and Chief Financial Officer, International Dealer Finance, Ally Financial Inc. (2008) Executive Vice President, Corporate Finance (2008)

Available Information We make available free of charge through our website, www.gmfinancial.com, our public securitization information and all materials that we file electronically with the SEC, including our reports on Form 10-K, Form 10-Q, Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practical after filing or furnishing such material with or to the SEC. The public may read and copy any materials we file with or furnish to the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet website, www.sec.gov, which contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. ITEM 1A.

RISK FACTORS

The profitability and financial condition of our operations are dependent upon the operations of our parent, GM. A material portion of our retail finance business, and substantially all our commercial lending activities, consist of financing associated with the sale and lease of new GM vehicles and our relationship with GM-franchised dealerships. If there were significant changes in GM's liquidity and capital position and access to the capital markets, the production or sales of GM vehicles to retail customers, the quality or resale value of GM vehicles, or other factors impacting GM or its products, such changes could significantly affect our profitability, financial condition, and access to the capital markets. In addition, GM sponsors special-rate financing programs available through us. Under these programs, GM makes interest supplements or other support payments to us. These programs increase our financing volume and our share of financed GM vehicle sales. If GM were to adopt marketing strategies in the future that de-emphasized such programs in favor of other incentives, our financing volume could be reduced. There is no assurance that the global automotive market or GM's share of that market will not suffer downturns in the future, and any negative impact could in turn have a material adverse effect on our financial position, liquidity and results of operations. We depend on the financial condition of GM dealers. Our profitability is dependent on the financial condition of the GM-franchised dealerships in our commercial lending portfolio, including the levels of inventory dealers carry in response to retail demand for new GM vehicles and used vehicles, and the level 7

Table of Contents of wholesale borrowing required by dealers for inventory acquisitions, construction projects to dealership facilities and working capital. Our business may be negatively affected if, during periods of economic slowdown or recession, dealers reduce borrowing for inventory purchases or for other purposes, or are unable to sell or otherwise liquidate vehicle inventories and repay their wholesale, real estate and other loans to us. Decreased retail demand for GM vehicles can also adversely impact the overall financial condition of GM-franchised dealerships, possibly increasing defaults and net loss rates in our commercial lending portfolio and adversely impacting our ability to grow and, ultimately, our financial condition, liquidity and results of operations. Our ability to continue to fund our business is dependent on a number of financing sources. We depend on various financing sources to finance our loan and lease originations and commercial lending business. Dependence on Secured Financing We utilize secured revolving credit facilities in most of our markets to fund our retail and commercial finance activities. As our volume of loan and lease originations increases, and as our commercial lending business grows, we will require the expansion of our borrowing capacity on our existing credit facilities or the addition of new revolving credit facilities. We cannot guarantee that our revolving credit facilities will continue to be available beyond the current maturity dates on reasonable terms or at all. Some of our revolving credit facilities in Europe and Latin America are uncommitted, meaning that the lenders under these facilities are not obligated to fund borrowing requests and may terminate the facilities at any time and for any reason. The availability of secured revolving credit facilities depends, in part, on factors outside of our control, including regulatory capital treatment for unfunded bank lines of credit, the financial strength and strategic objectives of the banks that participate in our credit facilities and the availability of bank liquidity in general. If we are unable to extend or replace these facilities or arrange new credit facilities or other types of interim financing, we will have to curtail or suspend origination and funding activities, which would have a material adverse effect on our financial position, liquidity and results of operations. Most of our revolving credit facilities contain borrowing bases or advance formulas which require us to pledge loans and lease-related assets in excess of the amounts which we can borrow under those facilities. Accordingly, credit deterioration in pledged collateral resulting from weakened economic conditions or any other factor, would require us to pledge additional finance and lease assets to support the same borrowing levels and to replace delinquent or defaulted collateral. The pledge of additional finance and lease assets to support our revolving credit facilities would adversely impact our financial position, liquidity and results of operations. Additionally, certain revolving credit facilities contain various covenants requiring certain minimum financial ratios, asset quality, and portfolio performance ratios (portfolio net loss and delinquency ratios, and pool level cumulative net loss ratios) as well as limits on deferment levels. Failure to meet any of these covenants could result in an event of default under these agreements. If an event of default occurs under these agreements, the lenders could elect to declare all amounts outstanding under these agreements to be immediately due and payable, enforce their interests against collateral pledged under these agreements or restrict our ability to obtain additional borrowings under these facilities. Dependence on Securitization Programs In the North America Segment and in Europe, we rely upon our ability to transfer loan and lease assets to securitization trusts and sell securities in the asset-backed securities market to generate cash proceeds for repayment of credit facilities and to generate additional assets. Accordingly, adverse changes in our asset-backed securities program or in the asset-backed securities market in general have in the past, and could in the future, materially adversely affect our ability to originate and securitize loans and leases on a timely basis and upon terms acceptable to us. Any adverse change or delay would have a material adverse effect on our financial position, liquidity and results of operations. We will continue to require the execution of securitization transactions in order to fund our future liquidity needs. There can be no assurance that funding will be available to us through these sources or, if available, that it will be on terms acceptable to us. If these sources of funding are not available to us on a regular basis for any reason, including the occurrence of events of default, deterioration in loss experience on the collateral, disruption of the assetbacked market or otherwise, we would be required to revise the scale of our business, including the possible discontinuation of origination activities, which would have a material adverse effect on our financial position, liquidity and results of operations. Dependence on Unsecured Debt Issuances Our ability to obtain unsecured funding at a reasonable cost is dependent, in large part, on GM's and our credit ratings or perceived creditworthiness. Credit rating downgrades, market volatility, market disruption, or other factors may affect our ability to access the capital markets at a reasonable cost or at all. Our inability to issue unsecured debt could force us to limit the scale 8

Table of Contents of our business. A significant reduction in the amount of loans or leases we purchase or originate would have a material adverse effect on our financial position, liquidity and results of operations. To service our debt, we will require a significant amount of cash. Our ability to generate cash depends on many factors. Our ability to make payments on or to refinance our indebtedness and to fund our operations depends on our ability to generate cash and our access to the capital markets in the future. These, to a certain extent, are subject to general economic, financial, competitive, legislative, regulatory, capital market conditions and other factors that are beyond our control. We expect to continue to require substantial amounts of cash. Our primary cash requirements include the funding of: • loan and lease purchases; • advances to commercial lending customers; • credit enhancement requirements in connection with securitization and credit facilities; • interest and principal payments under our indebtedness; • ongoing operating expenses; • capital expenditures; and • future acquisitions, if any. Our primary sources of future liquidity are expected to be: • payments on loans, leases and commercial lending receivables not securitized; • distributions received from securitization trusts; • servicing fees; • borrowings under our credit facilities or proceeds from secured debt facilities; • further issuances of other debt securities, both secured and unsecured; and • retail deposits. Because we expect to continue to require substantial amounts of cash for the foreseeable future, we anticipate that we will need additional credit facilities and require the execution of additional securitization transactions and additional debt financings including unsecured note offerings. The type, timing and terms of financing selected by us will be dependent upon our cash needs, the availability of other financing sources and the prevailing conditions in the capital markets. There can be no assurance that funding will be available to us through these sources or, if available, that the funding will be on acceptable terms. If we are unable to execute securitization transactions and unsecured debt issuances on a regular basis, we would not have sufficient funds to finance new originations and, in such event, we would be required to revise the scale of our business, which would have a material adverse effect on our ability to achieve our business and financial objectives. Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under existing indebtedness. We currently have a substantial amount of outstanding indebtedness. In addition, we have guaranteed a substantial amount of indebtedness incurred by our International Segment and our principal Canadian operating subsidiary. As of December 31, 2015, we have guaranteed approximately $3.6 billion in such indebtedness. Additionally, we have entered into intercompany loan agreements with several of our subsidiaries in Europe and Latin America, providing these companies with access to liquidity to support originations and other activities. As of December 31, 2015, we have entered into $4.2 billion in such intercompany loan agreements, of which $45 million was outstanding. Our ability to make payments of principal and interest on, or to refinance, our indebtedness will depend on our future operating performance, and our ability to enter into additional credit facilities and securitization transactions as well as other debt financings, which, to a certain extent, are subject to economic, financial, competitive, regulatory, capital markets and other factors beyond our control. If we are unable to generate sufficient cash flows in the future to service our debt, we may be required to refinance all or a portion of our existing debt or to obtain additional financing. There can be no assurance that any refinancings will be possible or that any additional financing could be obtained on acceptable terms. The inability to service or refinance our existing debt or to obtain additional financing would have a material adverse effect on our financial position, liquidity, and results of operations. The degree to which we are leveraged creates risks, including: • we may be unable to satisfy our obligations under our outstanding indebtedness; • we may find it more difficult to fund future credit enhancement requirements, operating costs, tax payments, capital expenditures or general corporate expenditures; 9

Table of Contents • •

we may have to dedicate a substantial portion of our cash resources to payments on our outstanding indebtedness, thereby reducing the funds available for operations and future business opportunities; and we may be vulnerable to adverse general economic, capital markets and industry conditions.

Our credit facilities may require us to comply with certain financial ratios and covenants, including minimum asset quality maintenance requirements. These restrictions may interfere with our ability to obtain financing or to engage in other necessary or desirable business activities. If we cannot comply with the requirements in our credit facilities, then our lenders may increase our borrowing costs, remove us as servicer or declare the outstanding debt immediately due and payable. If our debt payments were accelerated, any assets pledged to secure these facilities might not be sufficient to fully repay the debt. These lenders may foreclose upon their collateral, including the restricted cash in these credit facilities. These events may also result in a default under our senior note indentures. We may not be able to obtain a waiver of these provisions or refinance our debt, if needed. In such case, our financial condition, liquidity and results of operations would materially suffer. Defaults and prepayments on loans and leases purchased or originated by us could adversely affect our operations. Our financial condition, liquidity and results of operations depend, to a material extent, on the performance of loans and leases in our portfolio. Obligors under contracts acquired or originated by us, including dealer obligors in our commercial lending portfolio, may default during the term of their loan or lease. Generally, we bear the full risk of losses resulting from defaults. In the event of a default, the collateral value of the financed vehicle or, in the case of a commercial obligor, the value of the inventory and other commercial assets we finance usually does not cover the outstanding amount due to us, including the costs of recovery and asset disposition. The amounts owed to us by any given dealership or dealership group in our commercial lending portfolio can be significant. The amount of potential loss resulting from the default of a dealer in our commercial lending portfolio can, therefore, be material even after liquidating the dealer's inventory and other assets to offset the defaulted obligation. Additionally, because the receivables in our commercial lending portfolio may include complex arrangements including guarantees, inter-creditor agreements, mortgages and other liens, our ability to recover and dispose of the underlying inventory and other collateral may be time-consuming and expensive, thereby increasing our potential loss. We maintain an allowance for loan losses on our finance receivables which reflects management's estimates of inherent losses for these receivables. If the allowance is inadequate, we would recognize the losses in excess of that allowance as an expense and results of operations would be adversely affected. A material adjustment to our allowance for loan losses and the corresponding decrease in earnings could limit our ability to enter into future securitizations and other financings, thus impairing our ability to finance our business. An increase in defaults would reduce the cash flows generated by us, and distributions of cash to us from our secured debt facilities would be delayed and the ultimate amount of cash distributable to us would be less, which would have an adverse effect on our liquidity. Customer prepayments and dealer repayments on commercial obligations, which are generally revolving in nature, affect the amount of finance charge income we receive over the life of the loans. If prepayment levels increase for any reason and we are not able to replace the prepaid receivables with newlyoriginated loans, we will receive less finance charge income and our results of operations may be adversely affected. Our operations are subject to regulation, supervision and licensing under various federal, state and local laws and regulations. As an entity operating in the financial services sector, we are required to comply with a wide variety of laws and regulations that may be costly to adhere to and may affect both our operating results and our ability to service our earning assets. Compliance with these laws and regulations requires that we maintain forms, processes, procedures, controls and the infrastructure to support these requirements and these laws and regulations often create operational constraints both on our ability to implement servicing procedures and on pricing. Laws in the financial services industry are designed primarily for the protection of consumers. The failure to comply with these laws could result in significant statutory civil and criminal penalties for us, monetary damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand and valued customer relationships. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") is extensive and significant legislation that, among other things, strengthens the regulatory oversight of securities and capital markets activities by the SEC and increases the regulation of the securitization markets in the U.S. The various requirements of the Dodd-Frank Act may substantially impact the origination, servicing and securitization program of our subsidiaries. 10

Table of Contents The Dodd-Frank Act also created the CFPB, a federal agency that has extensive rulemaking and enforcement authority. The CFPB has indicated an intention to review the actions of indirect auto finance companies such as us with regard to pricing activities and issued a bulletin to such lenders on how to limit fair lending risk under the Equal Credit Opportunity Act. On August 31, 2015 we became subject to supervision and examination by the CFPB as a “larger participant” in the automobile finance market. Gaining supervisory power over nonbank lenders such as us will allow the agency to conduct comprehensive and rigorous on-site examinations that could result in enforcement actions, fines, and mandated process, procedure or product-related changes or consumer refunds if violations of law or unfair lending practices are found, which could have a material adverse effect on our financial condition and results of operations. 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. In October 2014, we received a document request from the SEC in connection with its investigation into certain practices in sub-prime auto loan securitization. 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. Our profitability is dependent upon retail demand for automobiles and related automobile financing and the ability of customers to repay loans and leases, and our business may be negatively affected during times of low automobile sales, fluctuating wholesale prices and lease residual values, rising interest rates, volatility in exchange rates and high unemployment. General. We are subject to changes in general economic conditions that are beyond our control. During periods of economic slowdown or recession, delinquencies, defaults, repossessions and losses generally increase. These periods also may be accompanied by increased unemployment rates, decreased demand for automobiles and declining values of automobiles securing outstanding loans and leases, which weakens collateral coverage and increases the amount of a loss in the event of default. Additionally, higher gasoline prices, declining stock market values, unstable real estate values, increasing unemployment levels, general availability of consumer credit and other factors that impact consumer confidence or disposable income could increase loss frequency and decrease demand for automobiles as well as weaken collateral values on certain types of automobiles. In addition, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in our revenue. While we seek to manage these risks through the underwriting criteria and collection methods we employ, no assurance can be given that these criteria or methods will afford adequate protection against these risks. Any sustained period of increased delinquencies, defaults, repossessions or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operations and our ability to enter into future securitizations and credit facilities. Wholesale Auction Values. We sell repossessed automobiles at wholesale auction markets located throughout the countries where we have operations. Auction proceeds from the sale of repossessed vehicles and other recoveries are usually not sufficient to cover the outstanding balance of the contract, and the resulting deficiency is charged off. We also sell automobiles returned to us at the end of lease terms. Decreased auction proceeds resulting from the depressed prices at which used automobiles may be sold during periods of economic slowdown or slack retail demand will result in higher losses for us. Furthermore, depressed wholesale prices for used automobiles may result from significant liquidations of rental or fleet inventories, financial difficulties of new vehicle manufacturers, discontinuance of vehicle brands and models and increased volume of trade-ins due to promotional programs offered by new vehicle manufacturers. Additionally, higher gasoline prices may decrease the wholesale auction values of certain types of vehicles. Leased Vehicle Residual Values and Return Rates. We project expected residual values and return volumes of the vehicles we lease. Actual proceeds realized by us upon the sale of a returned leased vehicle at lease termination may be lower than the amount projected, which reduces the profitability of the lease transaction to us. Among the factors that can affect the value of returned lease vehicles are the volume of vehicles returned, economic conditions and the quality or perceived quality, safety or reliability of the vehicles. Actual return volumes may be higher than expected and can be influenced by contractual lease-end values relative to then-existing values, marketing programs for new vehicles and general economic conditions. All of these, alone or in combination, have the potential to adversely affect the profitability of our lease program and financial results. Interest Rates. Our profitability may be directly affected by the level of and fluctuations in interest rates, which affect the gross interest rate spread we earn on our portfolio. As the level of interest rates change, our net interest margin on new originations 11

Table of Contents either increases or decreases since the rates charged on our loans and leases are generally fixed rates and are limited by market and competitive conditions, restricting our opportunity to pass on increased interest costs to the customer. We believe that our financial position, liquidity and results of operations could be adversely affected during any period of higher interest rates, possibly to a material degree. Foreign Currency Exchange Rates. We are exposed to the effects of changes in foreign currency exchange rates. Changes in currency exchange rates cannot always be predicted or hedged. As a result, unfavorable changes in exchange rates could have an adverse effect on our financial condition, liquidity and results of operations. Labor Market Conditions. Competition to hire and retain personnel possessing the skills and experience required by us could contribute to an increase in our employee turnover rate. High turnover or an inability to attract and retain qualified personnel could have an adverse effect on our delinquency, default and net loss rates, our ability to grow and, ultimately, our financial condition, liquidity and results of operations. There is a high degree of risk associated with sub-prime borrowers. A substantial portion of our origination and servicing activities in the North America Segment have historically involved sub-prime automobile receivables. Sub-prime borrowers are associated with higher-than-average delinquency and default rates. The actual rates of delinquencies, defaults, repossessions and losses with respect to those borrowers could also be more dramatically affected by a general economic downturn. While we believe that we effectively manage these risks with our proprietary credit scoring system, risk-based pricing and other underwriting policies, and our servicing and collection methods, no assurance can be given that these criteria or methods will be effective in the future. In the event that we underestimate the default risk or underprice contracts that we purchase, our financial position, liquidity and results of operations would be adversely affected, possibly to a material degree. We do not control the operations of SAIC-GMAC, and we are subject to the risks of operating in China. We do not control the operations of SAIC-GMAC, as it is a joint venture, and we do not have a majority interest in the joint venture. In the joint venture, we share ownership and management with other parties who may not have the same goals, strategies, priorities, or resources as we do and may compete with us outside the joint venture. Joint ventures are intended to be operated for the equal benefit of all co-owners, rather than for our exclusive benefit. Operating a business as a joint venture often requires additional organizational formalities, as well as time-consuming procedures for sharing information and making decisions. We are required to pay more attention to our relationship with our co-owners as well as with the joint venture, and if a co-owner changes or relationships deteriorate, our success in the joint venture may be materially adversely affected. The benefits from a successful joint venture are shared among the co-owners, and as such, we do not receive the full benefits from a successful joint venture. As a result of having limited control over the actions of the joint venture, we may be unable to prevent misconduct or other violations of applicable laws. Moreover, the joint venture may not follow the same requirements regarding internal controls and internal control over financial reporting that we follow. To the extent another party makes decisions that negatively impact the joint venture or internal control issues arise within the joint venture, we may have to take responsive or other action or we may be subject to penalties, fines or other related actions for these activities that could have a material adverse impact on our business, financial condition and results of operations. In addition, we are subject to the risks of operating in China. The automotive finance market in China is highly competitive and subject to significant governmental regulation. As the Chinese market continues to develop, we anticipate that additional competitors, both international and domestic, will seek to enter the Chinese market and that existing market participants will act aggressively to increase their market share. Increased competition may result in reduced margins and our inability to gain or hold market share. In addition, business in China is sensitive to economic and market conditions that drive sales volume in China. If SAIC-GMAC is unable to maintain its position in the Chinese market or if vehicle sales in China decrease or do not continue to increase, our business and financial results could be materially adversely affected. A security breach or a cyber-attack could adversely affect our business. A security breach or cyber-attack of our computer systems could interrupt or damage our operations or harm our reputation. If third parties or our employees are able to penetrate our network security or otherwise misappropriate our customers' personal information or contract information, or if we give third parties or our employees improper access to our customers' personal information or contract information, we could be subject to liability. This liability could include identity theft or other similar fraud-related claims. This liability could also include claims for other misuses or losses of personal information, including for unauthorized marketing purposes. Other liabilities could include claims alleging misrepresentation of our privacy and data security practices. We could also be subject to regulatory action in certain jurisdictions, particularly in North America and Europe. We rely on encryption and authentication technology licensed from third parties to provide the security and authentication necessary to effect secure online transmission of confidential consumer information. Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments may result in a compromise or breach of the algorithms 12

Table of Contents that we use to protect sensitive customer transaction data. A party who is able to circumvent our security measures could misappropriate proprietary information or cause interruptions in our operations. We may be required to expend capital and other resources to protect against such security breaches or cyber-attacks or to alleviate problems caused by such breaches or attacks and our insurance coverage may not be adequate to cover all the costs related to such breaches or attacks. Our security measures are designed to protect against security breaches and cyber-attacks, but our failure to prevent such security breaches and cyber-attacks could subject us to liability, decrease our profitability and damage our reputation. Our operations outside the U.S. expose us to additional risks. The international operations are subject to many of the same risks as our U.S. operations. In addition to those risks, the international operations, including the operations of SAIC-GMAC, are subject to certain additional risks, such as the following: • economic downturns in foreign countries or geographic regions where we have significant operations, such as Brazil and China; • multiple foreign regulatory requirements that are subject to change; • difficulty in establishing, staffing and managing foreign operations; • differing labor regulations; • consequences from changes in tax laws; • restrictions on the ability to repatriate profits or transfer cash into or out of foreign countries and the tax consequences of such repatriations and transfers; • devaluations in currencies; • political and economic instability, natural calamities, war, and terrorism; and • compliance with laws and regulations applicable to international operations, including anti-corruption laws such as the Foreign Corrupt Practices Act and international trade and economic sanctions laws. The effects of these risks may, individually or in the aggregate, adversely affect our business. ITEM 2.

PROPERTIES

Our executive offices are located in Fort Worth, Texas. We operate credit centers, collections and customer service centers and administrative offices in leased facilities in North America, Europe and Latin America. Our joint venture partner operates in offices located in China. ITEM 3.

LEGAL PROCEEDINGS

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. In October 2014, we received a document request from the Securities and Exchange Commission in connection with its investigation into certain practices in sub-prime auto loan securitization. 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. ITEM 4.

MINE SAFETY DISCLOSURE

Not applicable. PART II ITEM 5.

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

All of our issued and outstanding equity securities are owned by a single holder, and there is not an established public trading market for our common stock. We have never paid cash dividends on our common stock. We presently intend to retain future earnings, if any, for use in the operation of the business and do not anticipate paying any cash dividends in the foreseeable future; provided, however, that we may reexamine this policy with our sole shareholder at any time. 13

Table of Contents ITEM 6.

SELECTED FINANCIAL DATA

The table below summarizes selected financial information (in millions). For additional information, refer to the audited consolidated financial statements and notes thereto in Item 8. "Financial Statements and Supplementary Data." Years Ended December 31, 2015

2014

2013

2012

2011

Operating Data Finance charge income

$

3,381

Leased vehicle income Other revenue

$

3,475

$

2,563

$

1,594

2,807

1,090

595

289

266

289

186

77

$

1,247 98 65

Total revenue

$

6,454

$

4,854

$

3,344

$

1,960

$

1,410

Net income

$

646

$

537

$

566

$

463

$

386

Retail loan origination volume

$

17,537

$

15,085

$

9,597

$

5,579

$

5,085

Retail lease origination volume

$

20,199

$

6,169

$

2,830

$

1,343

$

987

Other Data

December 31, 2015

2014

2013

2012

2011

Balance Sheet Data Cash and cash equivalents

$

3,061

$

2,974

$

1,074

$

1,289

$

572

Finance receivables, net

$

36,781

$

33,000

$

29,282

$

10,998

$

9,162

Leased vehicles, net

$

20,172

$

7,060

$

3,383

$

1,703

$

809

Total assets (a)

$

65,904

$

47,608

$

37,916

$

16,154

$

13,020

Secured debt (b)

$

30,689

$

25,173

$

22,039

$

9,352

$

8,021

Unsecured debt (c)

$

23,657

$

12,142

$

6,933

$

1,483

$

494

Total liabilities (a)

$

57,852

$

40,216

$

31,631

$

11,775

$

9,097

Shareholder's equity

$

8,052

$

7,392

$

6,285

$

4,379

$

3,923

________________ (a) For 2014, 2013, 2012 and 2011, $116 million, $74 million, $43 million and $23 million in debt issuance costs were reclassified from total assets to total liabilities due to our adoption of ASU 2015-03. (b) For 2014, 2013, 2012 and 2011, $41 million, $34 million, $26 million and $16 million in debt issuance costs were reclassified to secured debt due to our our adoption of ASU 2015-03. (c) For 2014, 2013, 2012 and 2011, $75 million, $40 million, $17 million and $7 million in debt issuance costs were reclassified to unsecured debt due to our adoption of ASU 2015-03. Item 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General We are a global provider of automobile finance solutions, and we operate in the market as the wholly-owned captive finance subsidiary of GM. We conduct our business generally in two segments: the North America Segment, which includes our operations in the U.S. and Canada, and the International Segment, which includes operations in Austria, Belgium, Brazil, Chile, Colombia, France, Germany, Greece, Italy, Mexico, the Netherlands, Peru, Portugal, Spain, Sweden, Switzerland and the U.K. On January 2, 2015, we completed the acquisition of an equity interest in SAIC-GMAC Automotive Finance Company Limited ("SAIC-GMAC"), a joint venture that conducts auto finance operations in China, from Ally Financial. 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. We therefore 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. 14

Table of Contents 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 are expanding our leasing and prime lending programs through GM-franchised dealerships in North America and expect that leasing and prime lending will become an increasing percentage of our originations and retail portfolio balance over time. Since April 2015, we have been the exclusive subvented lease provider for GM in the U.S. 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 between 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 (in millions): Years ended December 31, 2015 Amount

Prime Near-prime Sub-prime

$

Total originations

$

2014 Percentage

19,978

64.3%

Amount $

2013 Percentage

5,060

39.1%

Amount $

2,011

Percentage 25.3%

4,628

14.9

1,904

14.7

922

11.6

6,446

20.8

5,976

46.2

5,023

63.1

31,052

100.0%

12,940

100.0%

7,956

100.0%

$

$

The following table summarizes the number of vehicles included in consolidated leased vehicles, net by vehicle type, of which the North America Segment accounted for more than 99% at December 31, 2015 and 2014: December 31, 2015

2014

Cars Trucks Crossovers

270,677 121,389 401,346

138,629 28,030 135,171

Total

793,412

301,830

The following table summarizes additional information for North America operating leases: Years ended December 31, 2015

2014

2013

Operating leases originated (a) 549,341 177,518 91,079 Operating leases terminated (b) 61,550 30,315 11,405 Operating lease vehicles returned (c) 25,019 11,936 3,508 Return rate (d) 41% 39% 31% ________________ (a) Operating leases originated represents the number of operating leases we purchase during a given period. In 2015, operating leases originated increased due to our exclusive subvention arrangement with GM implemented during 2015. (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 leases 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 parts and accessories, dealer 15

Table of Contents 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 annual 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 annual 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, or suspend the dealer's credit lines. 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. 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. Our U.S.,Canadian and Latin American operations are funded locally. Our European operations obtain most of their funding from local sources and also borrow funds from affiliated companies. GM also provides us with a $1.0 billion unsecured intercompany revolving credit facility (the "Junior Subordinated Revolving Credit Facility"). CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and costs and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. The accounting estimates that we believe are the most critical to understanding and evaluating our reported financial results include the following: Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans which are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period, delinquent status and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of their prior credit usage, structure of the loan and other information. The output of the scorecards rank-order consumers from those that are most likely to pay to those that are least likely to pay. By further dividing the portfolio into pools based on internal credit scores we are better able to distinguish expected credit performance for different credit risks.These pools are collectively evaluated for impairment based on a statistical calculation, which is supplemented by management judgment. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable losses inherent in our finance receivables. We use a combination of forecasting methodologies to determine the allowance for loan losses, including roll rate modeling and static pool modeling techniques. A roll rate model is generally used to project near term losses and static pool models are generally used to project losses over the remaining life. Probable losses are estimated for groups of accounts aggregated by past-due status and origination month. Generally, up to the last 10 years of loss experience is evaluated. Recent performance is more heavily weighted when determining the allowance to result in an estimate that is more reflective of the current internal and external environments. Factors that are considered when estimating the allowance include historical delinquency migration to loss, probability of default ("PD") and loss given default ("LGD"). PD and LGD are specifically estimated for each monthly vintage (i.e., group of originations) in cases where vintage models are used. PD is estimated based on expectations that are aligned with internal credit scores. LGD is projected based on historical trends experienced over the last 10 years, weighted toward more recent performance in order to consider recent market supply and demand factors that impact wholesale used vehicle pricing. While forecasted probable losses are quantitatively derived, we assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is more reflective of losses that are expected to occur in the current environment. 16

Table of Contents We also use historical charge-off experience to determine a loss confirmation period ("LCP"). The LCP is a key assumption within our models and represents the average amount of time between when a loss event first occurs to when the receivable is charged-off. This LCP is the basis of our allowance and is applied to the forecasted probable credit losses to determine the amount of losses we believe exist at the balance sheet date. We believe these factors are relevant in estimating incurred losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current economic environment. Assumptions regarding credit losses and loss confirmation periods are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumption or loss confirmation period increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. Finance receivables that are considered impaired, including troubled debt restructurings ("TDRs"), are individually evaluated for impairment. In assessing the risk of individually impaired loans such as TDRs, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. We believe that the allowance for loan losses on retail finance receivables is adequate to cover probable losses inherent in our retail finance receivables; however, because the allowance for loan losses is based on estimates, there can be no assurance that the ultimate charge-off amount will not exceed such estimates or that our credit loss assumptions will not increase. A 10% and 20% increase in cumulative charge-offs after recoveries on the portfolio over the loss confirmation period would increase the allowance for loan losses at December 31, 2015 by $74 million and $147 million. Credit losses is a non-U.S. Generally Accepted Accounting Principle ("U.S. GAAP") measure. See "Credit Quality - Credit Losses - non-U.S. GAAP measure" for a reconciliation of charge-offs to credit losses on the combined portfolio. Commercial Finance Receivables and Allowance for Loan Losses Commercial finance receivables are carried at amortized cost, net of allowance for loan losses. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable credit losses inherent in the commercial finance receivables. For the International Segment, we established the allowance for loan losses based on historical loss experience. Since we began offering commercial lending in the North America Segment in 2012, we performed an analysis of the experience of comparable commercial lenders in order to estimate probable credit losses inherent in our portfolio. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally-developed risk rating system. Based upon our risk ratings, we also determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is segregated for separate monitoring. Upon the sale or lease of a financed vehicle, the dealer must repay the advance on the vehicle according to the repayment terms. These repayment terms may vary based on the dealer's risk rating. As a result, funds advanced may be repaid in a short time period, depending on the length of time the dealer holds the vehicle until its sale or lease. We believe that the allowance for loan losses for commercial finance receivables is adequate to cover probable losses inherent in our portfolio; however, because the allowance for loan losses is based on estimates, there can be no assurance that the ultimate charge-off amount will not exceed such estimates or that our credit loss assumptions will not increase. A 10% and 20% increase in cumulative charge-offs on the commercial finance receivable portfolio over the loss confirmation period would increase the allowance for loan losses at December 31, 2015 by $5 million and $9 million. Expected losses on our commercial loans are lower than expected losses on our retail loans because commercial loans are secured not only by the financed vehicles, but also other dealership assets and often the continuing personal guarantee of the dealers' owners. In addition, automotive manufacturers are typically obligated to repurchase new vehicle inventory within certain mileage and model year parameters set by applicable state law in the event that we repossess the dealership’s inventory, thus potentially reducing any loss due to dealer default. Residual Value of Leased Vehicles 17

Table of Contents We have investments in leased vehicles recorded as operating leases. Each leased asset in our portfolio represents a vehicle that we own and have leased to a customer. At the time we purchase a lease, we establish an expected residual value for the vehicle at the end of the lease term, which typically ranges from two to five years. The customer is obligated to make payments during the term of the lease for the difference between the purchase price and the contract residual value plus a money factor. However, since the customer is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle at the end of the lease term and the value of the vehicle is lower than the residual value estimated at contract inception. At December 31, 2015, the estimated residual value of our leased vehicles at the end of the lease term was $13.4 billion. Depreciation reduces the carrying value of each leased asset in our operating lease portfolio over time from its original acquisition value to its expected residual value at the end of the lease term. We periodically perform a review of the adequacy of the depreciation rates. If we believe that the expected residual values for our leased assets have changed, we revise the depreciation rate to ensure that our net investment in operating leases will be adjusted to reflect our revised estimate of the expected residual value at the end of the lease term. Such adjustments to the depreciation rate would result in a change in the depreciation expense on the leased assets, which is recorded prospectively on a straight-line basis. The effect of a 1% change in our assumption regarding residual values would increase or decrease depreciation expense on the operating lease portfolio over the remaining term of the leases as follows (in millions): Impact to Depreciation Expense

Cars Trucks Crossovers

$

31 27 76

Total

$

134

In addition to estimating the residual value at lease termination, we also evaluate the carrying value of the operating lease assets, check for indicators of impairment and test for impairment to the extent necessary in accordance with applicable accounting standards. A leased asset is considered impaired if impairment indicators exist and the undiscounted expected future cash flows (including the expected residual value) are lower than the carrying value of the asset. We believe no impairment indicators existed at December 31, 2015, 2014 or 2013. Goodwill The excess of the purchase price over the fair value of the net assets acquired by GM was recorded as goodwill, and was attributed to the North America reporting unit, which was our only reporting unit at that time. With the acquisition of the international operations, we added two additional reporting units: Latin America and Europe. The excess of the purchase price of the acquisition of the international operations over the fair value of the net assets acquired was all attributed to the Latin America reporting unit. If an indication of impairment exists and the fair value of any reporting unit is less than the carrying amount reflected in the balance sheet, then the amount of goodwill attributed to a reporting unit may be impaired, and we perform a second step of the impairment test. In the second step, we compare the goodwill amount reflected in the balance sheet to the implied fair value of the reporting unit's goodwill, determined by allocating the reporting unit's fair value to all of its assets and liabilities in a manner similar to a purchase price allocation. During 2015, 2014 and 2013, we performed our annual goodwill impairment testing as of October 1 for each reporting unit. No impairment charges were recognized to either the North America or the Latin America reporting unit in the years ended December 31, 2015, 2014 or 2013. Refer to Note 6 - "Goodwill," of the consolidated financial statements included in this Form 10-K for additional information. We determined the fair value of each reporting unit with consideration to valuations under the market approach and the income approach. The income approach evaluates the cash flow of the reporting unit over a specified time, discounted at an appropriate market rate to arrive at an indication of the most probable selling price. Factors contributing to the determination of the reporting unit's operating performance were historical performance and management's estimates of future performance. 18

Table of Contents The following table reflects certain key estimates and assumptions used in our 2015 impairment testing of the North America reporting unit, which represents 93% of our goodwill balance: Market approach assumptions Trailing-twelve months' earnings multiple Forward earnings multiple Weighting applied Income approach assumptions Cost of equity Targeted equity-to-earning assets ratio Weighting applied

11.1x 12.7x 25% 11.2% 8.6% declining to 7.5% 75%

The results of the first step of the impairment test indicated that the fair value exceeded the carrying value; therefore, it was not necessary to perform the second step analysis. If actual market conditions are less favorable than those we and the industry have projected, or if events occur or circumstances change that would reduce the fair value of our goodwill below the amount reflected in the balance sheet, we may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. Income Taxes In our stand-alone financial statements, we account for income taxes on a separate return basis using an asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between financial statements' carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. We are subject to income tax in the U.S. and various other state and foreign jurisdictions. Since October 1, 2010, we have been included in GM's consolidated U.S. federal income tax returns. As referred to in Note 14 - "Income Taxes," we have a tax sharing agreement with GM for our U.S. operations. In the ordinary course of business, there may be transactions, calculations, structures and filing positions where the ultimate tax outcome is uncertain. At any point in time, multiple tax years are subject to audit by various taxing jurisdictions and we record liabilities for estimated tax results based on the requirements of the accounting for uncertainty in income taxes. Management believes that the estimates it records are reasonable. However, due to expiring statutes of limitations, audits, settlements, changes in tax law or new authoritative rulings, no assurance can be given that the final outcome of these matters will be comparable to what was reflected in the historical income tax provisions and accruals. We may need to adjust our accrued tax assets or liabilities if actual results differ from estimated results or if we adjust the assumptions used in the computation of the estimated tax results in the future. These adjustments could materially impact the effective tax rate, earnings, accrued tax balances and cash. We evaluate the need for deferred tax asset valuation allowances based on a more-likely-than-not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. We consider the following possible sources of taxable income when assessing the realization of deferred tax assets: future reversals of existing taxable temporary differences; future taxable income exclusive of reversing temporary differences and carryforwards; taxable income in prior carryback years; and tax-planning strategies. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors, including but not limited to: nature, frequency, and severity of recent losses; duration of statutory carryforward periods; historical experience with tax attributes expiring unused; and near- and medium-term financial outlook. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. We utilize a rolling three years of actual and current year anticipated results as the primary measure of cumulative losses in recent years. We have recorded gross deferred tax assets reflecting the expected tax benefits of operating loss carry forwards, tax credits and reversing temporary differences as disclosed in Note 14 - "Income Taxes." Realization of this deferred tax asset is dependent, in part, on generating sufficient taxable income in certain jurisdictions in future tax periods. If we continue to generate sufficient pretax income in future periods the deferred tax asset, net of the existing valuation allowance, should be realizable in the future. This judgment could be significantly impacted in the near term if estimates of future taxable income are reduced due to unforeseen 19

Table of Contents events or changes in market conditions. If changes were to occur in future periods, it is possible that management could conclude that an additional valuation allowance is necessary. We have recognized a deferred tax liability on the undistributed earnings of our investment in China. We have not recognized a deferred tax liability on the undistributed earnings of our remaining foreign subsidiaries as allowed under the indefinite reversal criterion of Accounting Standards Codification ("ASC") 740. Due to our strategy of funding locally, these amounts are considered to be indefinitely invested based on specific plans for reinvestment of these earnings. Should we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the U.S. RESULTS OF OPERATIONS We conduct operations around the world, and we are therefore subject to valuation changes of foreign currencies, primarily the Euro, the British Pound, the Brazilian Real, the Mexican Peso and the Canadian Dollar. We translate the assets, liabilities, revenue and expenses of our foreign operations into the U.S. Dollar at then-applicable exchange rates. Consequently, increases or decreases in the value of the U.S. Dollar may affect the value of these items with respect to our non-U.S. businesses in our consolidated financial statements, even if their values have not changed in their original currencies. For example, a stronger U.S. Dollar will reduce the reported results of our foreign operations and, conversely, a weaker U.S. Dollar will increase the reported results of our foreign operations. These translations could significantly affect the comparability of our results between financial periods. 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 all of 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. Year Ended December 31, 2015 compared to Year Ended December 31, 2014 Average Earning Assets: Average earning assets were as follows (dollars in millions): Year Ended December 31, 2015 North America Average retail finance receivables

$

15,688

2014

International $

11,509

Total

North America

$ 27,197

$ 12,205

2015 vs. 2014

International $

12,568

Total $ 24,773

Change excluding FX $

4,881

Average commercial finance receivables

3,465

4,364

7,829

2,384

4,653

7,037

1,625

Average finance receivables

19,153

15,873

35,026

14,589

17,221

31,810

6,506

Average leased vehicles, net

13,033

57

13,090

4,867

7

4,874

8,407

Total change

FX $ (2,457)

$

%

2,424

9.8%

(833)

792

11.3%

(3,290)

3,216

10.1%

(191)

8,216

168.6%

Average earning assets

$

32,186

$

15,930

$ 48,116

$ 19,456

$

17,228

$ 36,684

$

14,913

$ (3,481)

$ 11,432

31.2%

Retail finance receivables purchased

$

10,931

$

6,606

$ 17,537

$

6,808

$

8,277

$ 15,085

$

3,820

$ (1,368)

$

2,452

16.3%

Average new retail loan size (in dollars)

$

26,523

$

11,861

$ 23,149

$

13,947

Leased vehicles purchased

$

20,121

$

78

$

6,132

$

37

$ 6,169

$

14,221

$

$ 14,030

227.4%

Average new lease size (in dollars)

$

36,627

$

20,449

$ 31,809

$

22,775

$ 20,199

(191)

Average earning assets increased in the North America Segment as a result of the continued increase in our share of GM's business in that segment. Average earning assets in our 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. 20

Table of Contents In the North America Segment, the average annual percentage rate for retail finance receivables purchased during the year ended December 31, 2015 decreased to 8.0% from 11.6% during the prior period and the average retail loan and lease size increased. These changes are primarily due to the introduction of our prime lending program, 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: Revenues were as follows (dollars in millions): Year Ended December 31, 2015 North America

2014

International

North America

Total

2015 vs. 2014

International

Total

Change excluding FX

Total change

FX

%

Finance charge income Retail finance receivables

$

Commercial finance receivables

1,803

$

1,174

$

2,977

$

1,687

$

1,376

$

103

$

301

$

404

$

74

$

338

Leased vehicle income

$

2,794

$

13

$

2,807

$

1,085

$

5

Other income

$

77

$

189

$

266

$

63

$

226

$ 3,063

$

$

249

$

(335)

$

(86) (8)

412

$

58

$

(66)

$

$ 1,090

$

1,788

$

(71)

$ 1,717

$

$

40

$

(63)

$

289

Effective yield - retail finance receivables

11.5%

10.2%

11.0%

13.8%

11.0%

12.4%

Effective yield commercial finance receivables

3.0%

6.9%

5.2%

3.1%

7.3%

5.9%

(2.8)% (1.9)% 157.5 %

(23)

(8.0)%

In the North America Segment, finance charge income on retail finance receivables increased for the year ended December 31, 2015, compared to the year ended December 31, 2014 due to the increase in the portfolio, partially offset by a decrease in effective yield. The effective yield on our retail finance receivables decreased primarily due to a decrease in the average annual percentage rate on new originations as we have increased our prime and near-prime lending in 2015. 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. Commercial finance charge income remained flat despite the increase in the size of the commercial receivable portfolio, largely due to a decrease in the effective yield on commercial finance receivables. The increase in leased vehicle income reflects the increase in the size of the leased asset portfolio. Costs and Expenses: Costs and expenses were as follows (dollars in millions): Year Ended December 31, 2015 North America Operating expenses

International

$

735

$

Leased vehicle expenses $

2,190

Provision for loan losses $

466

Interest expense(a)

$

Average debt outstanding Effective rate of interest on debt

2014 North America

Total

International

558

$

1,293

$

542

$

$

10

$

2,200

$

843

$

158

$

624

$

472

921

$

695

$

1,616

$

$ 31,130

$

13,489

3.0%

5.2%

$ 44,619 3.6%

2015 vs. 2014 Change excluding FX

Total

Total change

FX

%

620

$

1,162

$

252

$

(121)

$

131

11.3%

$

4

$

847

$

1,403

$

(50)

$

1,353

159.7%

$

132

$

604

$

76

$

(56)

$

20

3.3%

551

$

875

$

1,426

$

422

$

(232)

$

190

13.3%

$ 18,907

$

13,313

$ 32,220

$

15,375

$

(2,976)

$ 12,399

38.5%

2.9%

6.6%

21

4.4%

Table of Contents _________________ (a) Amounts do not reflect allocation of senior note interest expense, and therefore do not agree with amounts presented in Note 17 - "Segment Reporting" in our consolidated financial statements in this Form 10-K. Operating Expenses The increase in operating expenses relates to the growth in earning assets and investments to support our prime lending program and enhance our lease origination and servicing capabilities in the North America Segment. Operating expenses as an annualized percentage of average earning assets were 2.7% and 3.2% for the years ended December 31, 2015 and 2014. 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 in the North America Segment. Provision for Loan losses The provision for retail loan losses increased primarily due to the growth in the retail finance receivables portfolio. As an annualized percentage of average retail finance receivables, the provision for loan losses was 2.3% and 2.4% for the years ended December 31, 2015 and 2014. The provision for commercial loan losses was insignificant for the years ended December 31, 2015 and 2014. Interest Expense Interest expense increased primarily due 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 26.5% and 34.0% of income before income taxes and equity income for the years ended December 31, 2015 and 2014. The decrease in the effective income tax rate is due primarily to an increase in certain U.S. federal tax credits. Other Comprehensive Income: Foreign Currency Translation Adjustment Consolidated foreign currency translation adjustments included in other comprehensive (loss) income were $(669) million and $(430) million for years ended December 31, 2015 and 2014. 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. 22

Table of Contents Year Ended December 31, 2014 as compared to Year Ended December 31, 2013 Unless otherwise noted, the increases in the amounts presented for the International Segment for 2014 compared to 2013 are primarily due to the timing of the acquisition of the majority of the international operations on April 1, 2013, and the operations in Brazil, which were acquired on October 1, 2013. Average Earning Assets: Average earning assets were as follows (dollars in millions): Years Ended December 31, 2014 North America Average retail finance receivables

$

12,205

2013

International $

12,568

Total

North America

$ 24,773

$ 11,335

2014 vs. 2013 Change

International $

6,459

Total $ 17,794

Change excluding FX $

7,116

$

FX

Total change

%

(137)

$

6,979

39.2%

Average commercial finance receivables

2,384

4,653

7,037

1,164

2,997

4,161

2,925

(49)

2,876

69.1%

Average finance receivables

14,589

17,221

31,810

12,499

9,456

21,955

10,041

(186)

9,855

44.9%

Average leased vehicles, net

4,867

7

4,874

2,599

3

2,602

2,466

(194)

2,272

87.3%

Average earning assets

$

19,456

$

17,228

$ 36,684

$ 15,098

$

9,459

$ 24,557

$

12,508

$

(381)

$

12,127

49.4%

Retail finance receivables purchased

$

6,808

$

8,277

$ 15,085

$

5,126

$

4,471

$ 9,597

$

5,560

$

(72)

$

5,488

57.2%

Average new retail loan size (in dollars) $

$ 21,494

$

14,747

$

2,830

$



$ 2,830

$

3,426

$

(87)

$

3,339

118.0%

$ 26,439

$



23,149

$

13,947

Leased vehicles purchased

$

6,132

$

37

Average new lease size (in dollars)

$

31,809

$

22,775

$ 6,169

Average earning assets increased in the North America Segment as a result of the continued increase in our share of GM's business in that segment. The increase in average leased vehicles, net was a result of GM's overall increased market penetration in leases as well as an increase in our share of GM's business. In the North America Segment, the average annual percentage rate for retail finance receivables purchased during the year ended December 31, 2014 decreased to 11.6% from 13.4% during 2013 and the average retail loan and lease size increased. These changes are primarily due to 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.

23

Table of Contents Revenue: Revenues were as follows (dollars in millions): Years Ended December 31, 2014 North America

2013 North America

International

Total

$ 3,063

$

$

2014 vs. 2013 Change

International

Change excluding FX

Total

Total change

FX

%

Finance charge income Retail finance receivables

$

Commercial finance receivables

1,687

$

1,376

$

74

$

338

Leased vehicle income

$

1,085

$

5

Other income

$

63

$

226

1,680

$

612

$ 2,292

$

803

$

(32)

$

771

33.6%

412

$

37

$

234

$

271

$

145

$

(4)

$

141

52.0%

$ 1,090

$

591

$

4

$

595

$

519

$

(24)

$

495

83.2%

$

$

68

$

118

$

186

$

112

$

(9)

$

103

55.4%

289

Effective yield - retail finance receivables

13.8%

11.0%

12.4%

14.8%

9.5%

12.9%

Effective yield commercial finance receivables

3.1%

7.3%

5.9%

3.2%

7.8%

4.9%

In the North America Segment, finance charge income on retail finance receivables was flat for the year ended December 31, 2014 compared to December 31, 2013. Increased finance charge income that resulted from growth in the portfolio was offset by a lower effective yield. The effective yield on our retail finance receivables decreased primarily due to a decrease in the average annual percentage rate on new originations, as we introduced our prime lending program. 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 increases in commercial finance charge income and lease vehicle income reflect the increases in the respective portfolios. Costs and Expenses: Costs and expenses were as follows (dollars in millions): Years Ended December 31, 2014 North America

2013

International

North America

Total

2014 vs. 2013 Change

International

Change excluding FX

Total

Total change

FX

%

Operating expenses

$

542

$

620

$

1,162

$

442

$

328

$

770

$

405

(13)

$

392

50.9 %

Leased vehicle expenses

$

843

$

4

$

847

$

451

$

2

$

453

$

411

(17)

$

394

87.0 %

Provision for loan losses

$

472

$

132

$

604

$

393

$

82

$

475

$

135

(6)

$

129

27.2 %

Interest expense(a)

$

551

$

875

$

1,426

$

421

$

300

$

721

$

727

(22)

$

705

97.8 %

Acquisition and integration expenses

$



$



$



$



$

42

$

42

$

(42)



$

(42)

Average debt outstanding

$ 18,907

$

13,313

$ 14,257

$

6,760

$ 21,017

$

Effective rate of interest on debt

2.9%

6.6%

$ 32,220 4.4%

3.0%

4.4%

11,456

$

(253)

$ 11,203

(100.0)% 53.3 %

3.4%

_______________ (a) Amounts do not reflect allocation of senior note interest expense, and therefore do not agree with amounts presented in Note 17 - "Segment Reporting and Geographic Information" in our consolidated financial statements in this Form 10-K. Operating Expenses The increase in operating expenses reflects the growth in earning assets and investments to support our prime lending program and enhance our lease origination and servicing capabilities in the North America Segment. Operating expenses as an annualized percentage of average earning assets were 3.2% and 3.1% for the years ended December 31, 2014 and 2013. 24

Table of Contents Leased Vehicle Expenses Leased vehicle expenses, which are primarily comprised of depreciation of leased vehicles, increased due to the increased size of the leased asset portfolio. Provision for Loan losses The provision for retail loan losses increased primarily due to the growth in the retail finance receivables portfolio. As an annualized percentage of average retail finance receivables, the provision for loan losses was 2.4% and 2.7% for the years ended December 31, 2014 and 2013. The provision for commercial loan losses was insignificant for the years ended December 31, 2014 and 2013. Interest Expense In the North America Segment, interest expense increased primarily due to an increase in average debt outstanding resulting from growth in the loan and lease portfolios as well as the funding requirements for the acquisition of the international operations, partially offset by a decrease in the effective rate of interest on debt. Taxes Our consolidated effective income tax rate was 34.0% and 35.9% for the years ended December 31, 2014 and 2013. The decrease in the effective income tax rate is primarily related to settlements with various tax authorities during 2014 in multiple jurisdictions. Other Comprehensive Income: Foreign Currency Translation Adjustment Consolidated foreign currency translation adjustments included in other comprehensive (loss) income were $(430) million and $11 million for the years ended December 31, 2014 and 2013. 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. The change in other comprehensive (loss) income is primarily due to decreases in the values of the Brazilian Real and the Euro in relation to the U.S Dollar. CREDIT QUALITY Retail Finance Receivables The following tables present certain data related to the retail finance receivables portfolio (dollars in millions, except where noted): December 31, 2015 North America

Retail finance receivables, net of fees $ 18,148 Less: allowance for loan losses (618) Retail finance receivables, net

$ 17,530

International

December 31, 2014 North America

Total

International

Total

$

10,976 (117)

$

29,124 (735)

$ 13,361 (577)

$

12,262 (78)

$

25,623 (655)

$

10,859

$

28,389

$ 12,784

$

12,184

$

24,968

955,094 1,563,831 2,518,925 788,833 1,458,362 2,247,195 Number of outstanding contracts Average amount of outstanding $ 19,001 $ 7,019 $ 11,562 $ 16,999 $ 8,409 $ 11,424 contracts (in dollars)(a) Allowance for loan losses as a percentage of retail finance 3.4% 1.1% 2.5% 4.4% 0.6% 2.6% receivables, net of fees _________________ (a) Average amount of outstanding contract consists of retail finance receivables, net of fees, divided by number of outstanding contracts. The decrease in the average amount of outstanding contracts in the International Segment is primarily due to changes in foreign currency exchange rates. At December 31, 2015, the allowance for loan losses for the North America Segment as a percentage of retail finance receivables, net of fees, decreased from the level at December 31, 2014, consistent with the improved credit mix in our portfolio resulting from our expansion of prime lending. The allowance for loan losses in the International Segment increased due to the 25

Table of Contents continued growth in the portfolio of receivables originated since the acquisition, as well as an increased provision for credit losses in Brazil. 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 (dollars in millions): December 31, 2015 North America

31 - 60 days Greater than 60 days

$ 1,150

In repossession

International

$

87

December 31, 2014 Percent of Contractual Amount Due

Total

$ 1,237

North America

4.2% $

994

International

$

89

Total

Percent of Contractual Amount Due

$ 1,083

4.2%

389

92

481

1.6

328

104

432

1.7

1,539 42

179 4

1,718 46

5.8 0.2

1,322 36

193 4

1,515 40

5.9 0.2

183

$ 1,764

197

$ 1,555

$ 1,581

$

6.0% $ 1,358

$

6.1%

Deferrals In accordance with our policies and guidelines in the North America Segment, we, at times, offer payment deferrals to retail consumers, 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 5.9% and 6.4% for 2015 and 2014. Deferrals in the International Segment are insignificant. Troubled Debt Restructurings See Note 3 - "Finance Receivables" to our consolidated financial statements in this Form 10-K for further discussion of TDRs. Credit Losses - non-U.S. GAAP measure We analyze credit performance of our combined portfolio, which includes loans acquired with deteriorated credit quality. This information facilitates comparisons of current and historical results. The following is a reconciliation of charge-offs to credit losses on the combined portfolio (in millions): Years Ended December 31, 2015 North America

2014

International

North America

Total

2013

International

North America

Total

International

Total

Charge-offs

$

$

137 1

$

996 19

$

776 63

$

138 6

$ 914 69

$

584 154

$

Other(a) Credit losses

859 18

54 13

$ 638 167

$

877

$

138

$ 1,015

$

839

$

144

$ 983

$

738

$

67

$ 805

_________________ (a) Adjustments to reflect write-offs of contractual amounts on loans acquired with deteriorated credit quality. 26

Table of Contents The following table presents credit loss data (which includes charge-offs and write-offs of contractual amounts on loans acquired with deteriorated credit quality) with respect to our retail finance receivables portfolio (dollars in millions): Years Ended December 31, 2015 North America

2014

International(a)

North America

Total

2013

International(a)

North America

Total

International(a)

Total

Credit losses

$

$

138 (47)

$

1,015 (512)

$

839 (465)

$

144 (56)

$ 983 (521)

$

738 (427)

$

Less: recoveries Net credit losses

877 (465)

67 (35)

$ 805 (462)

$

412

$

91

$

503

$

374

$

88

$ 462

$

311

$

32

$ 343

Net annualized credit loss percentage(b) 2.6% 0.8% 1.9% 3.1% 0.7% 1.9% 2.7% 0.5% 1.9% Recovery percentage(c) 56.4% 57.3% 59.3% _________________ (a) Credit losses 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 credit losses is not meaningful. (b) Net annualized credit loss percentage is calculated as a percentage of average retail finance receivables. (c) Recovery percentage is a percentage of gross repossession credit losses. Commercial Finance Receivables The following table presents certain data related to the commercial finance receivables portfolio (dollars in millions): December 31, 2015 North America

Commercial finance receivables, net of fees $ Less: allowance for loan losses Total commercial finance receivables, $ net Number of dealers Average carrying amount per dealer

$

Allowance for loan losses as a percentage of commercial finance receivables, net of fees

International

December 31, 2014 North America

Total

International

Total

4,051 (23)

$

4,388 (24)

$

8,439 (47)

$

3,180 (21)

$

4,892 (19)

$

8,072 (40)

4,028

$

4,364

$

8,392

$

3,159

$

4,873

$

8,032

656 6

0.6%

2,139 $

2

0.5%

2,795 $

3

0.6%

489 $

7

0.7%

2,147 $

2

0.4%

2,636 $

3

0.5%

There were insignificant charge-offs of commercial finance receivables during 2015, 2014 and 2013. At December 31, 2015 and 2014, substantially all of our commercial finance receivables were current with respect to payment status and none were classified as TDRs. Leased Vehicles At December 31, 2015 and 2014, 98.7% and 98.3% 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, 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, interest costs and business acquisitions. 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. 27

Table of Contents 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 longterm 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 2015, net cash provided by operating activities increased primarily due to increased leased vehicle income resulting from growth in the leased vehicle portfolio. During 2015, net cash used by investing activities increased compared to 2014 due to an increase in purchases of leased vehicles of $10.5 billion, a net increase in cash invested in retail finance receivables of $1.9 billion and cash used for the acquisition of the equity interest in SAIC-GMAC of $1.0 billion, partially offset by a decrease in net fundings of commercial receivables of $881 million. During 2015, net cash provided by financing activities increased compared to 2014 primarily due to an increase in borrowings, net of repayments, of $9.3 billion. Liquidity Our available liquidity consists of the following (in millions): December 31, 2015

Cash and cash equivalents(a)

December 31, 2014

$

3,061 9,697 904 1,000

$

2,974 4,808 558 1,000

$

14,662

$

9,340

Borrowing capacity on unpledged eligible assets Borrowing capacity on committed unsecured lines of credit Borrowing capacity on Junior Subordinated Revolving Credit Facility

_________________ (a) Includes $756 million and $691 million in unrestricted cash outside of the U.S. at December 31, 2015 and 2014. This cash is considered to be indefinitely invested based on specific plans for reinvestment. During 2015 available liquidity increased due to: (1) decreased usage of secured debt facilities as a result of the issuance of senior unsecured notes; and (2) decreased usage of committed unsecured lines of credit primarily due to funding provided by retail banking deposits in Germany. We have the ability to borrow up to $2.0 billion against each of GM's unsecured revolving credit facilities (a three-year $5.0 billion facility and a fiveyear $7.5 billion 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. 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 or structured as securitizations, or may be unsecured, and we repay these borrowings as appropriate under our liquidity management strategy. 28

Table of Contents At December 31, 2015, credit facilities consist of the following (in millions): Facility Type

Facility Amount

facilities(a)

Revolving retail asset-secured Revolving commercial asset-secured facilities(b)

$

Total secured Unsecured committed facilities(c) Unsecured uncommitted facilities(d) Total unsecured Junior Subordinated Revolving Credit Facility

18,520 3,844

Advances Outstanding

$

6,533 1,015

22,364

7,548

1,518 —

614 2,145

1,518

2,759

1,000 $

24,882

— $

10,307

Total _________________ (a) Includes revolving credit facilities backed by retail finance receivables and leases. (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; therefore, we do not include available capacity on these facilities in our liquidity. We had $468 million and $215 million in unused borrowing capacity on these facilities at December 31, 2015 and December 31, 2014. See Note 8 - "Debt" to our consolidated financial statements in this 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 (in millions):

Year of Transaction

2007 2011 2012 2013 2014 2015

Maturity Date (a)

June 2018 January 2019 October 2016 November 2019 March 2019 February 2017

-

Note Balance At December 31, 2015

Original Note Issuance (b)

March 2019 May 2020 October 2021 September 2022 August 2023

Total active securitizations Debt issuance costs

$ $ $ $ $ $

74 1,800 6,902 6,721 10,710 14,617

$

51 225 1,748 2,009 6,056 13,106

$

23,195 (54)

$

23,141

_________________ (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 9 - "Variable Interest Entities" to our consolidated financial statements in this Form 10-K 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 December 31, 2015 the par value of our outstanding senior notes was $19.1 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 December 31, 2015 we had $665 million of this type of unsecured debt outstanding. During 2015, we began accepting deposits from retail banking customers in Germany. At December 31, 2015, the outstanding balance of these deposits was $1.3 billion, of which 44% were overnight deposits. 29

Table of Contents Contractual Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt obligations (in millions): Years Ending December 31, 2016

Operating leases Secured debt Unsecured debt Interest

2017

2018

2019

2020

Thereafter

Total

$

19 14,450 4,343 1,275

$

19 9,168 3,654 1,008

$

16 5,688 3,459 588

$

14 1,120 3,165 397

$

11 317 4,110 267

$

38 — 5,050 483

$

117 30,743 23,781 4,018

$

20,087

$

13,849

$

9,751

$

4,696

$

4,705

$

5,571

$

58,659

At December 31, 2015, we had liabilities associated with uncertain tax positions of $136 million, including penalties and interest. The table above does not include these liabilities since it is impracticable to estimate the future cash flows associated with these amounts. Under our tax sharing arrangement with GM, we are responsible for our tax liabilities as if we filed separate returns. As of December 31, 2015, we have no accrued liability to GM. Refer to Note 14 - "Income Taxes" for more information. ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Overview We are exposed to a variety of risks in the normal course of our business. Our financial condition depends on the extent to which we effectively identify, assess, monitor and manage these risks. The principal types of risk to our business include: • Market risk - the possibility that changes in interest and currency exchange rates will adversely affect our cash flow and economic value; • Counterparty risk - the possibility that a counterparty may default on a derivative contract or cash deposit or will fail to meet its lending commitments to us; • Credit risk - the possibility of loss from a customer's failure to make payments according to contract terms; • Residual risk - the possibility that the actual proceeds we receive at lease termination will be lower than our projections or return volumes will be higher than our projections; • Liquidity risk - the possibility that we may be unable to meet all of our current and future obligations in a timely manner; and • Operating risk - the possibility of errors relating to transaction processing and systems, actions that could result in compliance deficiencies with regulatory standards or contractual obligations and the possibility of fraud by our employees or outside persons. We manage each of these types of risk in the context of its contribution to our overall global risks. We make business decisions on a risk-adjusted basis and price our services consistent with these risks. Credit, residual and liquidity risks are discussed in Items 1 and 7. A discussion of market risk (including currency and interest rate risk), counterparty risk, and operating risk follows. Market Risk We seek to minimize volatility in our earnings from changes in interest rates and foreign currency exchange rates. Our strategies to manage market risk are approved by our International and North America Asset Liability Committees (“ALCO”). The principal voting members include the Chief Executive Officer, Chief Financial Officers for the North America and International Segments, Chief Operating Officers for the North America and International Segments, Treasurers for the North America and International Segments and the Chief Accounting Officer. In 2015, we expanded our ALCO to incorporate more asset liability management (“ALM”) strategies as the composition of sources of debt evolved to support growth in our earning assets. Our Corporate Treasury group is responsible for the development of our interest rate and liquidity management policies as presented to the ALCO.

30

Table of Contents Interest Rate Risk We depend on accessing the capital markets to fund asset originations. We are exposed to interest rate risks as our financial assets and liabilities have different behavioral characteristics that may impact our financial performance. These differences may include tenor, yield, re-pricing timing, and prepayment expectations. Our assets are primarily comprised of fixed-rate retail installment loans and operating lease contracts under which customers typically make equal monthly payments over the life of the contracts. Our commercial finance receivables are primarily originated to finance new and used vehicles held in dealers’ inventory and generally require dealers to pay a floating rate of interest. These balances expand and contract with car sales and are revolving in nature. Our debt is primarily comprised of long-term unsecured debt and securitization notes payable. Our senior note unsecured debt issuances have tenors of up to ten years. The majority of these debt instruments are fixed-rate and pay equal interest payments over the life of the debt and a single principal payment at maturity. Our securitization notes payable are primarily fixed-rate and amortize as the underlying assets pay down. We manage interest rate risk with the objective of optimizing earnings performance while avoiding excessive financial risks and market-related earnings volatility. We measure and monitor interest rate risk primarily through key risk metrics such as duration gap, economic value of equity sensitivity, and net interest income sensitivity. When appropriate, we use derivatives to manage interest rate risk; however, we do not engage in any speculative trading in derivatives. Cap Agreements. The purchaser of the interest rate cap agreement pays a premium in return for the right to receive the difference in the interest cost at any time a specified index of market interest rates rises above the stipulated "cap" or "strike" rate. The purchaser of the interest rate cap agreement bears no obligation or liability if interest rates fall below the "cap" or "strike" rate. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap agreement in order to offset the premium paid by our special purpose finance subsidiary to purchase the interest rate cap agreement and thus retain the interest rate risk. The fair value of the interest rate cap agreement purchased by the special purpose finance subsidiary is included in other assets and the fair value of the interest rate cap agreement sold by us is included in other liabilities on our consolidated balance sheets. The change in the fair value of the interest rate cap agreements is recorded in interest expense. Swap Agreements. We utilize interest rate swap agreements to convert floating rate exposures on securities issued in securitization transactions to fixed rates, thereby hedging the variability in interest expense paid. At December 31, 2015, none of these pay-fixed, receive-floating interest rate swap agreements were designated as accounting hedges. The change in fair value of these derivatives is recorded in interest expense. We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related derivative (excluding accrued interest) is also recorded in interest expense. The fair value of interest rate swaps is included in other assets or other liabilities on our consolidated balance sheets. Cash flows from interest rate swaps are classified as operating activities on our consolidated statements of cash flows. 31

Table of Contents The following table provides information about our interest rate-sensitive financial instruments by expected maturity date as of December 31, 2015 (dollars in millions): Years Ending December 31,

2016

2017

2018

2019

2020

Thereafter

Fair Value

Assets Retail finance receivables Principal amounts

$

Weighted-average annual percentage rate

11,415

$

9.03%

8,204

$

9.08%

5,136

$

2,715

9.09%

$

9.17%

1,268

$

9.16%

523

$

28,545

$

8,392

$

8

$

19

$

7,494

$

23,177

$

19,045

$

2,753

$

1,262

$

666

$

24

$

19

9.37%

Commercial finance receivables Principal amounts

$

Weighted-average annual percentage rate

8,084

$

2.89%

113

$

4.42%

111

$

117

4.31%

$

4.30%

77

$

4.38%

108 4.24%

Interest rate swaps Notional amounts

$

1,361

$

1,499

$

1,092

$

155

$

14

$

1

Average pay rate

0.97%

1.03%

1.06%

2.03%

4.73%

3.97%

Average receive rate

0.93%

1.34%

1.49%

2.48%

6.54%

5.56%

Interest rate caps purchased Notional amounts

$

Average strike rate

1,760

$

3.26%

1,889

$

3.27%

1,488

$

734

3.23%

$

2.72%

356

$

2.72%

100 2.66%

Liabilities Secured debt Revolving credit facilities Principal amounts

$

Weighted-average effective interest rate

5,563

$

2.50%

1,286

$

3.85%

592

$

95

3.92%

$

5.53%

11

$

4.86%

— —%

Securitization notes payable Principal amounts

$

Weighted-average effective interest rate

8,887

$

1.80%

7,882

$

1.84%

5,096

$

1,025

2.17%

$

2.60%

306

$

2.59%

— —%

Unsecured debt Senior notes Principal amounts

$

Weighted-average effective interest rate

1,000

$

2.75%

2,738

$

3.57%

3,106

$

3,093

3.08%

$

2.93%

4,110

$

3.22%

5,050 4.04%

Credit facilities Principal amounts

$

Weighted-average effective interest rate

1,936

$

9.34%

643

$

8.11%

108

72

5.25%

$

5.19%



$

—%

— —%

Retail customer deposits Principal amounts

$

Weighted-average effective interest rate

892

$

1.44%

123

$

1.59%

245

$



1.64%

$

—%



$

—%

— —%

Other unsecured debt Principal amounts

$

Weighted-average effective interest rate

515

$

13.59%

150

$

14.69%



$



—%

$

—%



$

—%

— —%

Interest rate swaps Notional amounts

$

2,991

$

2,950

$

1,912

$

176

$

12

$



Average pay rate

0.92%

1.03%

1.15%

2.07%

5.33%

—%

Average receive rate

0.73%

1.10%

0.94%

2.10%

4.62%

—%

Interest rate caps sold Notional amounts Average strike rate

$

1,541 3.19%

$

1,739 3.19%

$

1,422

$

734

3.17%

3.13%

32

$

356 2.72%

$

100 2.66%

Table of Contents The following table provides information about our interest rate-sensitive financial instruments by expected maturity date as of December 31, 2014 (dollars in millions): Years Ending December 31,

2015

2016

2017

2018

2019

Thereafter

Fair Value

Assets Retail finance receivables Principal amounts

$ 10,440

Weighted-average annual percentage rate

$

10.26%

7,336

$

10.45%

4,551

$

10.56%

2,308

$

10.82%

968

$

11.04%

382

$ 25,541

11.21%

Commercial finance receivables Principal amounts

$

Weighted-average annual percentage rate

7,773

$

6.12%

81

$

4.62%

71

$

4.41%

93

$

6.63%

90

$

4.39%

51

$

8,032

$

6

$

6

$

6,991

4.67%

Interest rate swaps Notional amounts

$

636

$

539

$

388

$

76

$

13

$



Average pay rate

1.76%

1.68%

1.95%

3.63%

5.18%

—%

Average receive rate

1.34%

1.43%

1.90%

3.98%

6.19%

—%

Interest rate caps purchased Notional amounts

$

Average strike rate

469

$

3.38%

570

$

3.21%

566

$

3.12%

197

$

3.14%

69

$

3.18%

252 3.20%

Liabilities Secured debt Revolving credit facilities Principal amounts

$

Weighted-average effective interest rate

4,532

$

4.36%

1,593

$

5.92%

757

$

6.34%

141

$

8.63%

17

$

8.87%

— —%

Securitization notes payable Principal amounts

$

Weighted-average effective interest rate

7,348

$

1.94%

5,703

$

1.86%

3,596

$

2.04%

1,190

$

2.50%

354

$

3.06%



$ 18,237

—%

Unsecured debt Senior notes Principal amounts

$

Weighted-average effective interest rate



$

—%

1,000

$

2.75%

2,795

$

3.56%

1,250

$

4.65%

1,405

$

2.80%

2,000

$

8,707

$

3,772

$

39

$

6

4.33%

Credit facilities and other unsecured debt Principal amounts

$

Weighted-average effective interest rate

2,611

$

10.33%

881

$

9.70%

107

$

5.64%

85

$

5.14%

84

$

5.14%

— —%

Interest rate swaps Notional amounts

$

1,533

$

2,207

$

1,397

$

459

$

31

$



Average pay rate

1.06%

0.98%

1.02%

1.21%

1.97%

—%

Average receive rate

0.56%

0.53%

0.67%

0.99%

1.94%

—%

Interest rate caps sold Notional amounts Average strike rate

$

292 3.12%

$

456 3.13%

$

537

$

3.10%

197 3.14%

$

69 3.18%

$

253 3.19%

Finance receivables, both retail and commercial, are estimated to be realized by us in future periods using discount rate, prepayment and credit loss assumptions similar to our historical experience. Notional amounts on interest rate swap and cap agreements are based on contractual terms. Revolving credit facilities and securitization notes payable amounts have been classified based on expected payoff. Senior notes, credit facilities and other unsecured debt principal amounts have been classified based on maturity. Interest rates are primarily fixed on retail finance receivables and floating on commercial finance receivables. Interest rates on securitization notes payable and unsecured senior notes are primarily fixed. Interest rates are primarily floating on credit facilities, deposits and other unsecured debt. The notional amounts of interest rate swap and cap agreements, which are used to calculate the contractual payments to be exchanged under the contracts, represent average amounts that will be outstanding for each of the years included in the table. Notional amounts do not represent amounts exchanged by parties and, thus, are not a measure of our exposure to loss through our use of these agreements. 33

Table of Contents Management monitors our hedging activities to ensure that the value of derivative financial instruments, their correlation to the contracts being hedged and the amounts being hedged continue to provide effective protection against interest rate risk. However, there can be no assurance that our strategies will be effective in minimizing interest rate risk or that increases in interest rates will not have an adverse effect on our profitability. All transactions are entered into for purposes other than trading. Foreign Currency Exchange Rate Risk We primarily finance receivables and lease assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency derivatives to minimize any impact to earnings. Exchange rate movements can impact our net investment in foreign subsidiaries, which impacts our tangible equity through other comprehensive income. The following table summarizes the amounts of foreign currency translation and transaction and remeasurement losses (dollars in millions): Year Ended December 31, 2015

2014

2013

Foreign currency translation losses (gains) recorded in accumulated other comprehensive loss Losses (gains) resulting from foreign currency transactions and remeasurement recorded in earnings (Gains) losses resulting from foreign currency exchange swaps recorded in earnings

$

669

$

430

$

(11)

$

58 (42)

$

170 (163)

$

(151) 149

Net losses (gains) resulting from foreign currency exchange recorded in earnings

$

16

$

$

(2)

7

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. The foreign currency translation losses in 2015 and 2014 were primarily due to decreases in the values of the Brazilian Real, the Canadian Dollar and the Euro in relation to the U.S Dollar. Counterparty Risk Counterparty risk relates to the financial loss we could incur if an obligor or counterparty to a transaction is unable to meet its financial obligations. Typical sources of exposure include balances maintained in bank accounts, investments, and derivative contracts. Investments are typically securities representing high quality monetary instruments which are easily accessible and derivative contracts are used for managing interest rate and foreign currency exchange rate risk. We, together with GM, establish exposure limits for each counterparty to minimize risk and provide counterparty diversification. We maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement. We enter into arrangements with individual counterparties that we believe are creditworthy and generally settle on a net basis. In addition, we perform a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Operating Risk We operate in many locations and rely on the abilities of our employees and computer systems to process a large number of transactions. Improper employee actions, improper operation of systems, or unforeseen business interruptions could result in financial loss, regulatory action and damage to our reputation, and breach of contractual obligations. To address this risk, we maintain internal control processes that identify transaction authorization requirements, safeguard assets from misuse or theft, protect the reliability of financial and other data, and minimize the impact of a business interruption on our customers. We also maintain system controls to maintain the accuracy of information about our operations. These controls are designed to manage operating risk throughout our operation.

34

Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of General Motors Financial Company, Inc.: We have audited the accompanying consolidated balance sheets of General Motors Financial Company, Inc. and subsidiaries (the "Company") as of December 31, 2015 and 2014, and the related consolidated statements of income and comprehensive income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2015. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of General Motors Financial Company, Inc. and subsidiaries at December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Fort Worth, Texas February 3, 2016 35

Table of Contents ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED BALANCE SHEETS (dollars in millions) December 31, 2015

December 31, 2014

$

3,061 36,781 20,172 1,941 1,189 986 219 231 573 751

$

2,974 33,000 7,060 2,071 1,244 — 172 341 384 362

$

65,904

$

47,608

$

30,689 23,657 1,218 1,454 129 — 362 343

$

25,173 12,142 1,002 392 20 636 433 418

Assets Cash and cash equivalents Finance receivables, net (Note 3; Note 9 VIEs) Leased vehicles, net (Note 4; Note 9 VIEs) Restricted cash (Note 5; Note 9 VIEs) Goodwill (Note 6) Equity in net assets of non-consolidated affiliates (Note 7) Property and equipment, net of accumulated depreciation of $91 and $59 Deferred income taxes (Note 14) Related party receivables Other assets Total assets Liabilities and Shareholder's Equity Liabilities Secured debt (Note 8; Note 9 VIEs) Unsecured debt (Note 8) Accounts payable and accrued expenses Deferred income Deferred income taxes (Note 14) Related party taxes payable Related party payables Other liabilities Total liabilities

57,852

Commitments and contingencies (Note 11) Shareholder's equity Common stock, $1.00 par value per share, 1,000 shares authorized and 505 shares issued Additional paid-in capital Accumulated other comprehensive loss (Note 18) Retained earnings Total shareholder's equity Total liabilities and shareholder's equity

40,216

— 6,484 (1,104) 2,672

— 5,799 (433) 2,026

8,052 $

65,904

7,392 $

47,608

The accompanying notes are an integral part of these consolidated financial statements. 36

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in millions) Years Ended December 31, 2015

2014

2013

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

3,381 2,807 266

$

3,475 1,090 289

$

2,563 595 186

6,454

4,854

3,344

726 567

614 548

448 322

1,293 2,200 624 1,616 —

1,162 847 604 1,426 —

770 453 475 721 42

5,733

4,039

2,461

116 837 191

— 815 278

— 883 317

646

537

566

(2) (669)

(14) (430)

3 11

(671)

(444)

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Acquisition and integration expenses Total costs and expenses Equity income (Note 7) Income before income taxes Income tax provision (Note 14) Net income Other comprehensive income Defined benefit plans, net Foreign currency translation adjustment Other comprehensive (loss) income, net Comprehensive (loss) income

$

(25) $

93

14 $

580

The accompanying notes are an integral part of these consolidated financial statements. 37

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (dollars in millions) Years Ended December 31, 2015

2014

2013

Common Stock Shares Balance at the beginning of period Common stock issued Balance at the end of period

505 —

502 3

500 2

505

505

502

Common Stock Amount Balance at the beginning of period Common stock issued Balance at the end of period

$

— —

$

— —

$

— —

$



$



$



$

5,799 35 649

$

4,785 18 996

$

3,459 10 1,300

$

6,484

$

5,799

$

4,785

Additional Paid-in Capital Balance at the beginning of period Stock-based compensation expense Capital contributions from related party Differences between tax payments due under consolidated return and separate return basis Balance at the end of period

1



16

Accumulated Other Comprehensive Income (Loss) Balance at the beginning of period Other comprehensive (loss) income, net Balance at the end of period

$

(433) $ (671)

11 $ (444)

(3) 14

$

(1,104) $

(433) $

11

Retained Earnings Balance at the beginning of period Net income Balance at the end of period

$

2,026 646

$

1,489 537

$

923 566

$

2,672

$

2,026

$

1,489

The accompanying notes are an integral part of these consolidated financial statements. 38

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years Ended December 31, 2015

2014

2013

Cash flows from operating activities Net income

$

646

$

537

$

566

Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization

992

545

Accretion and amortization of loan and leasing fees

2,403 (609)

(363)

(88)

Amortization of carrying value adjustment

(149)

(234)

(94)

Equity income

(116)





Provision for loan losses

624

604

475

Deferred income taxes

132

(83)

179

36

19

(37)

182

(167)

(104)

(88)

(127)

282

133

195 20

Stock-based compensation expense Other

9

Changes in assets and liabilities, net of assets and liabilities acquired: Other assets Accounts payable and accrued expenses Taxes payable Related party taxes payable Related party payables Net cash provided by operating activities

(20)

(63)

(636)

(7)

84

(13)

5

(39)

2,439

1,634

1,558 (9,573)

Cash flows from investing activities Purchases of retail finance receivables, net

(17,517)

(14,749)

Principal collections and recoveries on retail finance receivables

11,726

10,860

7,524

Net funding of commercial finance receivables

(1,017)

(1,898)

(1,266)

(15,337)

(4,882)

(2,262)

Purchases of leased vehicles, net Proceeds from termination of leased vehicles Acquisition of international operations

1,096

533

(1,049)

(46)

217 (2,615)

Disposition of equity interest

125





Purchases of property and equipment

(90)

(52)

(16)

(264)

(232)

(267)

Change in restricted cash Change in other assets

30

Net cash used in investing activities

(2)

(22,297)

3

(10,468)

(8,255)

Cash flows from financing activities Net change in debt (original maturities less than three months) Borrowings and issuance of secured debt Payments on secured debt

1,147

470



22,385

21,080

17,378 (13,222)

(15,178)

(16,890)

Borrowings and issuance of unsecured debt

12,977

7,174

5,224

Payments on unsecured debt

(1,709)

(1,889)

(2,699)

Borrowings on related party line of credit





1,100

Payments on related party line of credit





(1,100) (1,416)

Repayment of debt to Ally Financial Capital contributions from related party Debt issuance costs Other Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents





649

996

(155)

(127) —

2

20,117

10,814

6,491

259

1,980

$

3,061

(9)

1,074 $

2,974

The accompanying notes are an integral part of these consolidated financial statements. 39

(206)

(80)

2,974

Cash and cash equivalents at end of period

(76)

1

(172)

Cash and cash equivalents at beginning of period

1,300

1,289 $

1,074

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1.

Summary of Significant Accounting Policies

History and Operations We were formed on August 1, 1986, and, since September 1992, have been in the business of providing automotive financing solutions. We have been a wholly-owned subsidiary of GM since October 2010. We acquired Ally Financial's auto finance and financial services operations in Europe and Latin America in 2013. Additionally, on January 2, 2015, we acquired an equity interest in SAIC-GMAC, a joint venture that conducts business in China, from Ally Financial. The results of operations of the acquired entities since the applicable acquisition dates are included in our consolidated financial statements for the years ended December 31, 2015, 2014 and 2013. Basis of Presentation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries, including certain special-purpose financing entities utilized in secured financing transactions, which are considered variable interest entities ("VIEs"). All intercompany transactions and accounts have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the amount of revenue and costs and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include, among other things, the determination of the allowance for loan losses on finance receivables, estimated residual value of leased vehicles, goodwill and income taxes. Generally, the financial statements of entities that operate outside of the U.S. are measured using the local currency as the functional currency. All assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at period-end exchange rates and the results of operations and cash flows are determined using approximate weighted-average exchange rates for the period. Translation adjustments are related to the foreign subsidiaries using local currency as their functional currency and are reported as a separate component of accumulated other comprehensive income/loss. Foreign currency transaction gains or losses are recorded directly to the consolidated statements of income and comprehensive income, regardless of whether such amounts are realized or unrealized. We may enter into foreign currency derivatives to mitigate our exposure to changes in foreign exchange rates. See Note 10 "Derivative Financial Instruments and Hedging Activities" for further discussion. Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt Our commercial finance receivables are primarily comprised of floorplan financing, which are loans to dealers to finance vehicle inventory, also known as wholesale or inventory financing. In our experience, these loans are typically repaid in less than 90 days of when the credit is extended. Furthermore, we typically have the unilateral ability to call the loans and receive payment within 60 days of the call. Therefore, the presentation of the cash flows related to commercial finance receivables are reflected on the consolidated statements of cash flows as "Net funding of commercial finance receivables." We have revolving debt agreements to finance our commercial lending activities. The revolving period of these agreements ranges from 6 to 18 months; however, the terms of these financing agreements require that a borrowing base of eligible floorplan receivables, within certain concentration limits, must be maintained in sufficient amounts to support advances. When a dealer repays a floorplan receivable to us, either the amount advanced against such receivables must be repaid by us or else the equivalent amount in new receivables must be added to the borrowing base. Despite the revolving term exceeding 90 days, the actual term for repayment of advances under these agreements is when we receive repayment from the dealers, which is typically within 90 days of when the credit is extended. Therefore, the cash flows related to these revolving debt agreements are reflected on the consolidated statements of cash flows as “Net change in debt (original maturities less than three months).” Cash Equivalents Investments in highly liquid securities with original maturities of 90 days or less are included in cash and cash equivalents. Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans which are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period, delinquent status and geography. An internal credit score, of which FICO is an input in North America, 40

Table of Contents is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of their prior credit usage, structure of the loan and other information. The output of the scorecards rank-order consumers from those that are most likely to pay to those that are least likely to pay. By further dividing the portfolio into pools based on internal credit scores we are better able to distinguish expected credit performance for different credit risks. These pools are collectively evaluated for impairment based on a statistical calculation, which is supplemented by management judgment. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable losses inherent in our finance receivables. We use a combination of forecasting methodologies to determine the allowance for loan losses, including roll rate modeling and static pool modeling techniques. A roll rate model is generally used to project near term losses and static pool models are generally used to project losses over the remaining life. Probable losses are estimated for groups of accounts aggregated by past-due status and origination month. Generally, loss experience over the last 10 years is evaluated. Recent performance is more heavily weighted when determining the allowance to result in an estimate that is more reflective of the current internal and external environments. Factors that are considered when estimating the allowance include historical delinquency migration to loss, probability of default ("PD") and loss given default ("LGD"). PD and LGD are specifically estimated for each monthly vintage (i.e., group of originations) in cases where vintage models are used. PD is estimated based on expectations that are aligned with internal credit scores. LGD is projected based on historical trends experienced over the last 10 years, weighted toward more recent performance in order to consider recent market supply and demand factors that impact wholesale used vehicle pricing. While forecasted probable losses are quantitatively derived, we assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is more reflective of losses that are expected to occur in the current environment. We also use historical charge-off experience to determine a loss confirmation period ("LCP"). The LCP is a key assumption within our models and represents the average amount of time between when a loss event first occurs to when the receivable is charged-off. This LCP is the basis of our allowance and is applied to the forecasted probable credit losses to determine the amount of losses we believe exist at the balance sheet date. We believe these factors are relevant in estimating incurred losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current economic environment. Assumptions regarding credit losses and loss confirmation periods are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumption or LCP increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses. Finance receivables that are considered impaired, including troubled debt restructurings ("TDRs") are individually evaluated for impairment. In assessing the risk of individually impaired loans such as TDRs, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Commercial Finance Receivables and the Allowance for Loan Losses Our commercial lending offerings consist of floorplan financing 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. Commercial finance receivables are carried at amortized cost, net of allowance for loan losses. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover probable credit losses inherent in the commercial finance receivables. For the International Segment, we established the allowance for loan losses based on historical loss experience. Since we began offering commercial lending in the North America Segment in 2012, we have performed an analysis of the experience of comparable commercial lenders in order to estimate probable credit losses inherent in our portfolio. The commercial finance receivables are aggregated into loan-risk pools, which are determined based on our internally-developed risk rating system. Based upon our risk ratings, we also determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is segregated for separate monitoring. 41

Table of Contents Charge-off Policy Our policy is to charge off a retail account in the month in which the account becomes 120 days contractually delinquent if we have not yet recorded a repossession charge-off. In the North America Segment, we charge off accounts in repossession when the automobile is repossessed and legally available for disposition. In the International Segment, we charge off accounts when the repossession process is started. A charge-off generally represents the difference between the estimated net sales proceeds and the amount of the contract, including accrued interest. Accounts in repossession that have been charged off and have been removed from finance receivables and the related repossessed automobiles, aggregating $54 million and $31 million at December 31, 2015 and 2014, are included in other assets on the consolidated balance sheets pending sale and represent a non-cash investing activity. Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due. Troubled Debt Restructurings In evaluating whether a loan modification constitutes a TDR, our policy for retail loans is that both of the following must exist: (i) the modification constitutes a concession; and (ii) the debtor is experiencing financial difficulties. In accordance with our policies and guidelines, we, at times, offer payment deferrals to customers. Each deferral allows the consumer to move up to two delinquent monthly 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). A loan that is deferred two or more times would be considered significantly delayed and therefore meets the definition of a concession. A loan currently in payment default as the result of being delinquent would also represent a debtor experiencing financial difficulties. Therefore, considering these two factors, we have determined that the second deferment granted by us on a retail loan will be considered a TDR and the loan impaired. Accounts in Chapter 13 bankruptcy that have an interest rate or principal adjustment as part of a confirmed bankruptcy plan would also be considered TDRs. Retail finance receivables that become classified as TDRs are separately assessed for impairment. A specific allowance is estimated based on the present value of expected cash flows of the receivable discounted at the loan's original effective interest rate. Commercial receivables subject to forbearance, moratoriums, extension agreements, or other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral are classified as TDRs. We do not grant concessions on the principal balance of dealer loans. Variable Interest Entities – Securitizations and Credit Facilities We finance our loan and lease origination volume through the use of our credit facilities and execution of securitization transactions, which both utilize special purpose entities ("SPEs"). In a credit facility, we transfer finance receivables or lease-related assets to special purpose finance subsidiaries. These subsidiaries, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of the assets. In our securitizations, we transfer finance receivables or lease-related assets to SPEs structured as securitization trusts ("Trusts"), which issue one or more classes of asset-backed securities. The asset-backed securities are in turn sold to investors. Our continuing involvement with the credit facilities and Trusts consist of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under U.S. GAAP and are consolidated because we have: (i) power over the significant activities of the entity and (ii) an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE. Our servicing fees are not considered significant variable interests in the VIEs; however, because we also retain residual interests in the SPEs, either in the form of debt securities or equity interests, we have an obligation to absorb losses or the right to receive benefits that are potentially significant to the SPEs. Accordingly, we are the primary beneficiary of the VIEs and are required to consolidate them within our consolidated financial statements. Therefore, the finance receivables, leasing related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. See Note 3 - "Finance Receivables," Note 8 - "Debt" and Note 9 - "Variable Interest Entities" for further information. We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables and other assets held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. 42

Table of Contents Except for purchase accounting adjustments, we recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in a securitization transaction, and record a provision for loan losses to recognize probable loan losses inherent in the securitized assets. Cash pledged to support securitization transactions is deposited to a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less. Property and Equipment As a result of the merger with GM and acquisition of the international operations, our property and equipment was adjusted to an estimated fair market value. Subsequent to the merger with GM, property and equipment additions are carried at amortized cost. Depreciation is generally provided on a straightline basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain or loss is included in operations. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and betterments are capitalized. Leased Vehicles Leased vehicles consist of automobiles leased to customers and are carried at amortized cost less manufacturer incentives. Depreciation expense is recorded on a straight-line basis over the term of the lease agreement. Leased vehicles are depreciated to the estimated residual value at the end of the lease term. Under the accounting for impairment or disposal of long-lived assets, residual values of operating leases are evaluated individually for impairment when indicators of impairment exist. When indicators of impairment exist and aggregate future cash flows from the operating lease, including the expected realizable fair value of the leased asset at the end of the lease, are less than the book value of the lease, an immediate impairment write-down is recognized if the difference is deemed not recoverable. Otherwise, reductions in the expected residual value result in additional depreciation of the leased asset over the remaining term of the lease. Upon disposition, a gain or loss is recorded for any difference between the net book value of the lease and the proceeds from the disposition of the asset, including any insurance proceeds. Goodwill The excess of the purchase price of the merger with GM over the fair value of the net assets acquired was recorded as goodwill, and was attributed to the North America reporting unit, which was our only reporting unit at that time. With the acquisition of the international operations, we added two additional reporting units: Latin America and Europe. The excess of the purchase price of the acquisition of the international operations over the fair value of the net assets acquired was all attributed to the Latin America reporting unit. We performed our annual goodwill impairment testing as of October 1, 2015 for each reporting unit. No impairment charges were recognized to either the North America or the Latin America reporting unit in the years ended December 31, 2015, 2014 or 2013. If an indication of impairment exists and the fair value of any reporting unit is less than the carrying amount reflected in the balance sheet, then the amount of goodwill attributed to a reporting unit may be impaired, and we perform a second step of the impairment test. In the second step, we compare the goodwill amount reflected in the balance sheet to the implied fair value of the reporting unit's goodwill, determined by allocating the reporting unit's fair value to all of its assets and liabilities in a manner similar to a purchase price allocation. We determined the fair value of each reporting unit with consideration to valuations under the market approach and the income approach. The income approach evaluates the cash flow of the reporting unit over a specified time, discounted at an appropriate market rate to arrive at an indication of the most probable selling price. Factors contributing to the determination of the reporting unit's operating performance were historical performance and management's estimates of future performance. 43

Table of Contents The following table reflects certain key estimates and assumptions used in our 2015 impairment testing of the North America reporting unit, which represents 93% of our goodwill balance: Market approach assumptions Trailing-twelve months' earnings multiple Forward earnings multiple Weighting applied Income approach assumptions Cost of equity Targeted equity-to-earning assets ratio Weighting applied

11.1x 12.7x 25% 11.2% 8.6% declining to 7.5% 75%

The results of the first step of the impairment test indicated that the fair value exceeded the carrying value; therefore, it was not necessary to perform the second step analysis. If actual market conditions are less favorable than those we and the industry have projected, or if events occur or circumstances change that would reduce the fair value of our goodwill below the amount reflected in the balance sheet, we may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. Derivative Financial Instruments We recognize all of our derivative financial instruments as either assets or liabilities on our consolidated balance sheets at fair value. The accounting for changes in the fair value of each derivative financial instrument depends on whether it has been designated and qualifies as an accounting hedge, as well as the type of hedging relationship identified. Our special purpose finance subsidiaries are often contractually required to purchase derivative instruments, which could include interest rate swap agreements and/or interest rate cap agreements which are explained below, as credit enhancement in connection with securitization transactions and credit facilities. We do not use derivative instruments for trading or speculative purposes. Interest Rate Swap Agreements. We utilize interest rate swap agreements to convert floating rate exposures on securities issued in securitization transactions to fixed rates, thereby hedging the variability in interest expense paid. Cash flows from derivatives used to manage interest rate risk are classified as operating activities. At December 31, 2015, none of our pay-fixed, receive-floating interest rate swap agreements were designated as accounting hedges. We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related derivative (excluding accrued interest) is also recorded in interest expense. Interest Rate Cap Agreements. We often purchase interest rate cap agreements to limit floating rate exposures in our credit facilities. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap agreement in order to offset the premium paid to purchase the interest rate cap agreement and thus retain the interest rate risk. Because the interest rate cap agreements entered into by us or our special purpose finance subsidiaries do not qualify for hedge accounting, changes in the fair value of interest rate cap agreements purchased by the special purpose finance subsidiaries and interest rate cap agreements sold by us are recorded in interest expense. Interest rate risk management contracts are generally expressed in notional principal or contract amounts that are much larger than the amounts potentially at risk for nonpayment by counterparties. Therefore, in the event of nonperformance by the counterparties, our credit exposure is limited to the uncollected interest and the market value related to the contracts that have become favorable to us. We manage the credit risk of such contracts by using highly rated counterparties, establishing risk limits and monitoring the credit ratings of the counterparties. We maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement. We enter into arrangements with individual counterparties that we believe are creditworthy and generally settle on a net basis. In addition, we perform a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. 44

Table of Contents Foreign Currency Swaps. Our policy is to minimize exposure to changes in currency exchange rates. To meet funding objectives, we borrow in a variety of currencies. We face exposure to currency exchange rates when the currency of our earning assets differs from the currency of the debt funding those assets. When possible, we fund earning assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency swaps to convert our debt obligations to the local currency of the earning assets. Fair Value ASC 820, Fair Value Measurements, provides a framework for measuring fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. There are three general valuation techniques that may be used to measure fair value, as described below: (i) Market approach – Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources; (ii) Cost approach – Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and (iii) Income approach – Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques and option-pricing models). Net present value is an income approach that considers a stream of expected cash flows, discounted at an appropriate market interest rate. Financial instruments are considered Level 1 when quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Financial instruments are considered Level 2 when inputs other than quoted prices are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Financial instruments are considered Level 3 when their values are determined using price models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. Income Taxes On our stand-alone financial statements, we account for income taxes on a separate return basis using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be realized. We record uncertain tax positions on the basis of a two-step process whereby: (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position; and (2) for those tax positions that meet the more likely than not recognition, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax expense (benefit). Revenue Recognition Finance charge income related to retail finance receivables is recognized using the effective interest method. Fees and commissions received and direct costs of originating loans are generally deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are sold, charged off or paid in full. Accrual of finance charge income is suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received on non-accrual loans are first applied to any fees due, then to any interest due and, finally, any remaining amounts received are recorded to principal. Interest accrual resumes once an account has received payments bringing the delinquency status to less than 60 days past due. 45

Table of Contents Finance charge income related to commercial finance receivables is recognized using the accrual method. Accrual of finance charge income is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt about the full collectability of contractually agreed upon principal and interest exist. Payments received on non-accrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the delinquency status fully current and collection of contractual principal and interest is reasonably expected (including amounts previously charged-off) or, for TDRs, when repayment is reasonably assured based on the modified terms of the loan. Operating lease rental income for leased vehicles is recognized on a straight-line basis over the lease term. Net deferred origination fees or costs are amortized on a straight-line basis over the term of the lease agreement. Parent Company Stock-Based Compensation We measure and record compensation expense for parent company stock-based compensation awards based on the award's estimated fair value. We record compensation expense over the applicable vesting period of an award. Salary stock awards granted are fully vested and nonforfeitable upon grant; therefore, compensation cost is recorded on the date of grant. See Note 12 - "Parent Company Stock-Based Compensation" for further information. Segment Information 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: North America ("the North America Segment") and international ("the International Segment"). The North America Segment includes our operations in the U.S. and Canada. The International Segment includes our operations in all other countries. For additional financial information regarding our business segments, see Note 17 - "Segment Reporting and Geographic Information." 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. 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. For the years ended December 31, 2015, 2014 and 2013, we received $3.6 billion, $1.2 billion and $451 million in subvention payments from GM, primarily related to lease originations. Amortization of lease subvention was $1.0 billion, $311 million and $159 million for the years ended December 31, 2015, 2014 and 2013. In our International Segment, we provide limited funding to GM for new and used vehicles awaiting delivery to dealers. At December 31, 2015 and 2014, we had intercompany receivables from GM in the amount of $573 million and $384 million under these programs. At December 31, 2015 and 2014, we had $229 million and $176 million in commercial loans outstanding to dealers that are consolidated by GM. Prior to January 1, 2015 we provided financing to certain GM subsidiaries through factoring and other wholesale financing arrangements. At December 31, 2014, $289 million was outstanding under such arrangements, and is included in commercial finance receivables. No amounts were outstanding under these arrangements at December 31, 2015. At December 31, 2015 and 2014, we had $362 million and $433 million of related party payables due to GM, primarily for commercial finance receivables originated but not yet funded. These payables typically settle within 30 days. As discussed in Note 14 - "Income Taxes" we have a tax sharing agreement with GM for our U.S. operations. Under our tax sharing arrangement with GM, payments related to our U.S. operations for the tax years 2010 through 2014 were deferred for four years from their original due date. During 2014, accrued tax payments of $296 million, related to the 2010 and 2011 tax years, were converted to and treated as capital contributions. As of December 31, 2014, we had related party taxes payable to GM in the amount of $636 million. During 2015, the outstanding balance of $649 million, including an adjustment recorded in 2015 for finalizing the 2014 tax return, was converted to and treated as a capital contribution. On January 2, 2015, we completed the acquisition of Ally Financial's 40% equity interest in SAIC-GMAC. The aggregate purchase price was $1.0 billion. Also on January 2, 2015, we sold a 5% equity interest in SAIC-GMAC to Shanghai Automotive Group Finance Company Ltd. (“SAIC FC”), a current shareholder of SAIC-GMAC, for proceeds of $125 million. As a result of these transactions, we own a 35% equity interest in SAIC-GMAC. GM indirectly owns an additional 10% equity interest in SAIC-GMAC. GM contributed $700 million to our equity in December 2014 to facilitate this acquisition. 46

Table of Contents In September 2014, we and GM entered into a Support Agreement (the “Support Agreement”). Pursuant to the Support Agreement, if our earning assets leverage at the end of any calendar quarter is higher than thresholds set in the Support Agreement, we may require GM to provide funding sufficient to bring our earning assets leverage to within the appropriate threshold. In determining our earning assets leverage (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. At December 31, 2015, our earning assets leverage ratio was 8.3, which was below the applicable ratio of 9.5. 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. GM also agreed to certain provisions intended to ensure that we maintain adequate access to liquidity. Pursuant to these provisions, GM provided us with the $1.0 billion GM Junior Subordinated Revolving Credit Facility. There were no advances outstanding under the GM Junior Subordinated Revolving Credit Facility at December 31, 2015. Recently Adopted Accounting Standards In 2015 we adopted ASU 2015-02, “Amendments to the Consolidation Analysis” (ASU 2015-02), which is effective for annual reporting periods beginning on or after December 15, 2015, with early adoption permitted. ASU 2015-02 requires us to reassess whether certain entities should be consolidated. The adoption of ASU 2015-02 did not have a material impact on our consolidated financial statements. In 2015 we adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03), which is effective for annual reporting periods beginning on or after December 15, 2015, with early adoption permitted. ASU 2015-03 requires debt issuance costs associated with non-revolving debt to be presented as a reduction to the debt principal balance, with retrospective application. As a result of our adoption, we reclassified $116 million from other assets to debt for 2014, of which $41 million was reclassified to secured debt and $75 million was reclassified to unsecured debt. Accounting Standards Not Yet Adopted In May 2014 the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service and requires expanded disclosures. ASU 2014-09 is effective for annual reporting periods beginning on or after December 15, 2017 with early adoption permitted for reporting periods beginning on or after December 15, 2016. We continue to assess the overall impact the adoption of ASU 2014-09 will have on our consolidated financial statements. Note 2. Acquisition of Ally Financial International Operations In November 2012, we entered into a definitive agreement with Ally Financial to acquire the outstanding equity interests in the top-level holding companies of its automotive finance and financial services operations in Europe and Latin America and a separate agreement to acquire Ally Financial's noncontrolling equity interest in SAIC-GMAC, which conducts auto finance operations in China. During 2013, we completed the acquisition of Ally Financial's European and Latin American auto finance and financial services operations. The aggregate consideration for these acquisitions was $3.3 billion. In addition, we repaid debt of $1.4 billion that was assumed as part of the acquisitions. We recorded the fair value of the assets acquired and liabilities assumed on the acquisition date. On January 2, 2015, we completed the acquisition of Ally Financial's 40% equity interest in SAIC-GMAC. The aggregate purchase price was $1.0 billion. Also on January 2, 2015, we sold a 5% equity interest in SAIC-GMAC to SAIC FC, a current shareholder of SAIC-GMAC, for proceeds of $125 million. As a result of these transactions, we own a 35% equity interest in SAIC-GMAC. We account for our ownership interest in SAIC-GMAC using the equity method of accounting. The difference between the carrying amount of our investment and our share of the underlying net assets of SAIC-GMAC at the time of acquisition was $371 million, which was primarily related to goodwill. We determined the acquisition date fair values of the identifiable assets acquired and liabilities assumed in accordance with ASC 805, "Business Combinations" ("ASC 805"). Income resulting from the equity investment in SAIC-GMAC is included in our results beginning January 2, 2015. Equity income from SAIC-GMAC recorded during 2015 was $116 million. If the acquisition had occurred on January 1, 2014, our unaudited pro forma net income for 2014 would have increased by $107 million to $644 million. 47

Note 3.

Finance Receivables

Our pre-acquisition and post-acquisition retail finance portfolios are now reported on a combined basis, due to the diminished size of the pre-acquisition portfolio, which was $145 million at December 31, 2015 and $459 million at December 31, 2014. The finance receivables portfolio consists of the following (in millions): December 31, 2015 North America

Retail Retail finance receivables, collectively evaluated for impairment, net of fees(a) Retail finance receivables, individually evaluated for impairment, net of fees Total retail finance receivables(b)

$

International

$

1,612

Less: allowance for loan losses - collective Less: allowance for loan losses - specific Total retail finance receivables, net Commercial Commercial finance receivables, collectively evaluated for impairment, net of fees Commercial finance receivables, individually evaluated for impairment, net of fees Total commercial finance receivables

$



27,512

$ 12,127

International

$

12,262

Total

$

1,612

1,234

29,124 (515) (220)

13,361 (405) (172)

12,262 (78) —

25,623 (483) (172)

17,530

10,859

28,389

12,784

12,184

24,968

4,043

4,314

8,357

3,180

4,803

7,983

74

4,028 21,558

82

4,388 (15) (9)

8,439 (38) (9)

4,364 $

15,223

$



24,389

10,976 (117)

8

$

10,976

Total

18,148 (398) (220)

4,051 (23) —

Less: allowance for loan losses - collective Less: allowance for loan losses - specific Total commercial finance receivables, net Total finance receivables, net

16,536

December 31, 2014 North America



89

3,180 (21) —

8,392

3,159

36,781

$ 15,943

1,234

89

4,892 (14) (5)

8,072 (35) (5)

4,873 $

17,057

8,032 $

33,000

________________ (a) Amounts reported in the International Segment include $1.1 billion and $1.0 billion of direct-financing leases at December 31, 2015 and 2014. (b) Net of unamortized premiums and discounts, and deferred fees and costs of $179 million and $245 million at December 31, 2015 and 2014. 48

Retail Finance Receivables Following is a summary of activity in our retail finance receivables portfolio (in millions): Years ended December 31, 2015 North America

Beginning balance Acquisition Purchases Principal collections and other Charge-offs Foreign currency translation Ending balance

2014

2013

Total

North America

Total

North America

$ 13,361 — 10,931 (5,272) (859) (13)

$

12,262 — 6,606 (5,696) (137) (2,059)

$ 25,623 — 17,537 (10,968) (996) (2,072)

$ 11,388 — 6,808 (4,054) (776) (5)

$

11,742 — 8,277 (6,180) (138) (1,439)

$ 23,130 — 15,085 (10,234) (914) (1,444)

$ 10,789 — 5,126 (3,943) (584) —

$

— 10,310 4,471 (3,086) (54) 101

$ 10,789 10,310 9,597 (7,029) (638) 101

$ 18,148

$

10,976

$ 29,124

$ 13,361

$

12,262

$ 25,623

$ 11,388

$

11,742

$ 23,130

International

International

International

Total

A summary of the activity in the allowance for retail loan losses is as follows (in millions): Years ended December 31, 2015 North America

Beginning balance

International

Total

2013

International

North America

Total

International

Total

$

577 461 (859) 439 —

$

78 151 (137) 47 (22)

$

655 612 (996) 486 (22)

$

468 468 (776) 417 —

$

29 145 (138) 53 (11)

$

497 613 (914) 470 (11)

$

345 380 (584) 327 —

$

— 52 (54) 29 2

$

345 432 (638) 356 2

$

618

$

117

$

735

$

577

$

78

$

655

$

468

$

29

$

497

Provision for loan losses Charge-offs Recoveries Foreign currency translation Ending balance

2014 North America

49

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 are expanding 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 (dollars in millions): December 31, 2015 Amount

December 31, 2014

Percent

Amount

Percent

Prime - FICO Score 680 and greater

$

Near-prime - FICO Score 620 to 679 Sub-prime - FICO Score less than 620 Balance at end of period

4,418 2,890 10,840

24.4% $ 15.9% 59.7%

596 1,691 11,074

4.4% 12.7% 82.9%

$

18,148

100.0% $

13,361

100.0%

In addition, we review the credit quality of all 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 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 (dollars in millions): December 31, 2015 North America

31 - 60 days $ Greater than 60 days

1,150 389

In repossession

1,539 42 $

1,581

International

$

87 92

Total

$

179 4 $

183

$

December 31, 2014 Percent of Contractual Amount Due

North America

1,237 481

4.2% $ 1.6

994 328

1,718 46

5.8 0.2

1,322 36

1,764

6.0% $

1,358

International

$

89 104

Total

$

193 4 $

197

$

Percent of Contractual Amount Due

1,083 432

4.2% 1.7

1,515 40

5.9 0.2

1,555

6.1%

The accrual of finance charge income had been suspended on $778 million and $682 million of retail finance receivables (based on contractual amount due) at December 31, 2015 and December 31, 2014. 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 still 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. A t December 31, 2015 and 2014, 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. 50

The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below (in millions): December 31, 2015

December 31, 2014

Outstanding recorded investment Less: allowance for loan losses

$

1,612 $ (220)

1,234 (172)

Outstanding recorded investment, net of allowance Unpaid principal balance

$

1,392

$

1,062

$

1,642

$

1,255

Additional information about loans classified as TDRs is presented below (in millions, except for number of loans): Years Ended December 31, 2015

Average outstanding recorded investment $ Finance income recognized $ Number of loans classified as TDRs during the period Recorded investment of loans classified as TDRs during the period $

2014

1,455 164 58,012 982

$ $

2013

996 123 49,490 794

$

$ $

487 70 38,196 643

$

A redefault is when an account meets the requirements for evaluation under our charge-off policy (See Note 1 - "Summary of Significant Accounting Policies" for additional information). 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 were $20 million, $25 million and $22 million for the years ended December 31, 2015, 2014 and 2013. Commercial Finance Receivables Following is a summary of activity in our commercial finance receivables portfolio (in millions): Years ended December 31, 2015 North America

Beginning balance

International

$ 3,180 $ Acquisition — Net funding (collections) 933 Charge-offs (2) Foreign currency translation (60) Ending balance $ 4,051 $

2014 Total

North America

4,892 $ 8,072 $ 1,975 — — — 51 984 1,228 (1) (3) — (554) 4,388

(614) $ 8,439

International

$

4,725 — 661 —

$

4,892

(23) $ 3,180

(494)

2013 Total

$ 6,700 — 1,889 — (517) $ 8,072

North America

$

International

560 $ — 1,424 (2) (7)

$ 1,975

$

Total

— $ 560 4,834 4,834 (246) 1,178 (3) (5) 140

133

4,725

$ 6,700

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. The credit lines for Group VI dealers are typically suspended and no further funding is extended to these dealers. 51

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 grouping of the commercial finance receivables is as follows (in millions): December 31, 2015

December 31, 2014

$

$

Group I

- Dealers with superior financial metrics

Group II

- Dealers with strong financial metrics

2,648

2,090

Group III

- Dealers with fair financial metrics

2,703

2,856

Group IV

- Dealers with weak financial metrics

1,100

1,250

Group V

- Dealers warranting special mention due to potential weaknesses

505

559

Group VI - Dealers with loans classified as substandard, doubtful or impaired Balance at end of period

1,299

184 $

8,439

1,062

255 $

8,072

At December 31, 2015 and 2014, 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 years ended December 31, 2015, 2014 and 2013. Note 4.

Leased Vehicles

Our operating lease program is offered primarily in the North America Segment. The following information regarding our leased vehicles is presented on a consolidated basis (in millions): December 31, 2015

Leased vehicles

$

Manufacturer incentives Less: accumulated depreciation Leased vehicles, net

$

December 31, 2014

27,587 $ (4,582)

9,747 (1,479)

23,005 (2,833)

8,268 (1,208)

20,172

$

7,060

A summary of the changes in our leased vehicles is as follows (in millions): Years Ended December 31, 2015

2014

2013

Balance at beginning of period

$

International operations acquisition Leased vehicles purchased Leased vehicles returned - end of term Leased vehicles returned - default Manufacturer incentives Foreign currency translation Balance at end of period

8,268 $ — 20,199 (1,785) (120) (3,169) (388)

4,025 $ — 6,169 (878) (58) (844) (146)

1,976 5 2,830 (343) (28) (360) (55)

$

23,005

8,268

4,025

$

$

The following table summarizes minimum rental payments due to us as lessor under operating leases (in millions): Years Ended December 31, 2016

Minimum rental payments under operating leases

2017

2018

$ 3,359 $ 2,830 $ 1,494 $ 52

2019

169 $

2020

Total

4 $ 7,856

Table of Contents Note 5. Restricted Cash The following table summarizes the components of restricted cash (in millions): December 31, 2015

Revolving credit facilities

345 1,531 65

$

326 1,395 350

$

1,941

$

2,071

Securitization notes payable Other Total restricted cash

December 31, 2014

$

Restricted cash for securitization notes payable and revolving credit facilities is comprised of funds deposited in restricted cash accounts as collateral required to support securitization transactions or to provide additional collateral for borrowings under revolving credit facilities. Additionally, these funds include monthly collections from borrowers that have not yet been used for repayment of debt. At December 31, 2014, other restricted cash was primarily comprised of interest-bearing cash in Brazil held in escrow pending resolution of tax and civil litigation. At December 31, 2015, these amounts are classified as deposits and are included in other assets on the condensed consolidated balance sheet. Note 6.

Goodwill

We performed goodwill impairment testing as of October 1, 2015, in accordance with the policy described in Note 1 - "Summary of Significant Accounting Policies - Goodwill." The impairment testing indicated no impairment in any reporting unit. The following table summarizes the changes in the carrying amounts of goodwill by segment (in millions): Years Ended December 31, 2015 North America

International

Beginning balance $ 1,106 $ Acquisition — Foreign currency translation (1) Ending $ 1,105 $ balance Note 7.

2014

138 —

(54) 84

Total

North America

$ 1,244 —

$ 1,108 —

(55) $ 1,189

International

$

(2) $ 1,106

2013

132 6

— $

138

Total

North America

$ 1,240 6

$ 1,108 —

(2) $ 1,244

International

$

— $ 1,108

$

Total

— 132

$ 1,108 132





132

$ 1,240

Equity in Net Assets of Non-consolidated Affiliates

Non-consolidated affiliates are entities in which an equity ownership interest is maintained and for which the equity method of accounting is used due to the ability to exert significant influence over decisions relating to their operating and financial affairs. In January 2015, we completed the acquisition of Ally Financial's equity interest in SAIC-GMAC. See Note 2 - "Acquisition of Ally Financial International Operations" for additional information. The income of SAIC-GMAC is not consolidated into our financial statements; rather, our proportionate share of the earnings is reflected as equity income. At December 31, 2015, we had undistributed earnings of $121 million related to SAIC-GMAC. The following tables present summarized financial data of SAIC-GMAC (a) (in millions): Summarized Balance Sheet Data Finance receivables, net

December 31, 2015

$ $ $ $

Total assets Debt Total liabilities 53

9,617 9,802 5,789 7,973

Table of Contents

Summarized Operating Data Finance charge income

Year Ended December 31, 2015

Provision for loan losses Interest expense Income before income taxes Net income _________________ (a) This data represents that of the entire entity and not our 35% proportionate share. Note 8.

$ $ $ $ $

971 45 338 463 347

Debt

Debt consists of the following (in millions): December 31, 2015 North America

December 31, 2014

International

North America

Total

International

Total

Secured debt Revolving credit facilities Securitization notes payable

$

3,246 19,905

$

4,302 3,236

$

7,548 23,141

$

1,701 13,721

$

5,327 4,424

$

7,028 18,145

Total secured debt

$

23,151

$

7,538

$

30,689

$

15,422

$

9,751

$

25,173

$

17,731 — — —

$

1,242 2,759 1,260 665

$

18,973 2,759 1,260 665

$

7,777 — — —

$

598 2,974 — 793

$

8,375 2,974 — 793

$

17,731

$

5,926

$

23,657

$

7,777

$

4,365

$

12,142

Unsecured debt Senior notes Credit facilities Retail customer deposits Other unsecured debt Total unsecured debt Secured Debt

Most of the secured debt was issued by variable interest entities, as further discussed in Note 9 - "Variable Interest Entities." This debt is repayable only from proceeds related to the underlying pledged finance receivables and leasing related assets. Interest rates on the secured debt in the North America Segment are primarily fixed, with a weighted average of 1.63% at December 31, 2015. Interest rates on the secured debt in the International Segment are primarily floating, with a weighted average of 3.10% at December 31, 2015. Issuance costs on the secured debt of $76 million as of December 31, 2015 and $60 million as of December 31, 2014 are amortized to interest expense over the expected term of the secured debt. The terms of our revolving credit facilities provide for a revolving period and subsequent amortization period, and are expected to be repaid over periods ranging up to six years. During 2015, we entered into new credit facilities or renewed credit facilities with a total additional net borrowing capacity of $5.2 billion. Securitization notes payable at December 31, 2015 are due beginning in 2016 through 2023. In the year ended December 31, 2015 we issued securitization notes payable of $14.3 billion with a weighted-average interest rate of 1.5%. Unsecured Debt Senior Notes At December 31, 2015, we had $19.1 billion par value outstanding in senior notes that mature from 2016 through 2025 and have a weighted average interest rate of 3.37%. Issuance costs on senior notes of $107 million as of December 31, 2015 and $75 million as of December 31, 2014 are amortized to interest expense over the term of the notes. Our top-tier holding company has $17.2 billion par value outstanding in senior notes which may be redeemed, at our option, in whole or in part, at any time before maturity at the redemption prices set forth in the indentures that govern the senior notes, plus accrued and unpaid interest, to the redemption date. All of our senior notes are guaranteed solely by AmeriCredit Financial 54

Table of Contents Services, Inc. ("AFSI"); none of our other subsidiaries are guarantors of our senior notes. See Note 21 - "Guarantor Consolidating Financial Statements" for further discussion. During 2015, our top-tier holding company issued $9.7 billion in senior notes comprised of $8.9 billion of fixed rate notes with a weighted average coupon of 3.38% and $800 million in floating rate notes. These notes mature beginning in April 2018 through July 2025. All of these notes are guaranteed by AFSI. In February 2015, a European subsidiary issued €650 million of 0.85% notes under our Euro medium term notes program. These notes are due in February 2018. All of these notes are guaranteed by our top-tier holding company and by AFSI. In May 2015, our primary Canadian operating subsidiary issued CAD$500 million of 3.08% notes due in May 2020. The notes are guaranteed by our top-tier holding company and by AFSI. Credit Facilities and Other Unsecured Debt The International Segment utilizes unsecured credit facilities with banks as well as non-bank instruments as funding sources. During 2015, we increased net borrowing capacity on unsecured committed credit facilities by $334 million. The terms of advances under our unsecured credit facilities are determined and agreed to by us and the lender on the borrowing date for each advance and can have maturities up to five years. The weighted average interest rate on credit facilities and other unsecured debt was 8.72% at December 31, 2015. Retail Customer Deposits During 2015, we began accepting deposits from retail banking customers in Germany. Following is summarized information for our deposits at December 31, 2015 (dollars in millions): Outstanding Balance

Weighted Average Interest Rate

Overnight deposits Term deposits -12 months Term deposits - 24 months Term deposits - 36 months

$

555 337 123 245

1.00% 1.32% 1.44% 1.65%

Total deposits

$

1,260

1.25%

Contractual Debt Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt obligations (in millions): Years Ending December 31, 2016

Secured debt Unsecured debt Interest

2017

2018

2019

2020

Thereafter

Total

$

14,450 4,343 1,275

$

9,168 3,654 1,008

$

5,688 3,459 588

$

1,120 3,165 397

$

317 4,110 267

$

— 5,050 483

$

30,743 23,781 4,018

$

20,068

$

13,830

$

9,735

$

4,682

$

4,694

$

5,533

$

58,542

Compliance with Debt Covenants Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Some of our secured and unsecured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. Failure to meet certain of these requirements may result in a covenant violation or an event of default depending on the terms of the agreement. An event of default may allow lenders to declare amounts outstanding under these agreements immediately due and payable, to enforce their interest against collateral pledge under these agreements or restrict our ability to obtain additional borrowings. At December 31, 2015, we were in compliance with these debt covenants. 55

Table of Contents Note 9.

Variable Interest Entities

Securitizations and credit facilities The following table summarizes the assets and liabilities related to our consolidated VIEs (in millions): December 31, 2015

Restricted cash Finance receivables, net Lease related assets Secured debt

$ $ $ $

2014

1,876 24,942 11,684 29,386

$ $ $ $

1,721 23,109 4,595 22,794

These amounts are related to securitization and credit facilities held by consolidated 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 following table summarizes the assets and liabilities of these entities (in millions): December 31, 2015

December 31, 2014

Assets(a)

$ 3,652 Liabilities(b) $ 2,941 _________________ (a) Comprised primarily of finance receivables of $3.2 billion and $3.6 billion at December 31, 2015 and 2014. (b) Comprised primarily of debt of $2.6 billion and $2.5 billion at December 31, 2015 and 2014.

$ $

3,696 3,184

The following table summarizes the revenue and net income of these entities (in millions): Year Ended December 31, 2015

Total revenue Net income

$ $

2014

191 29

$ $

192 28

Transfers of finance receivables to non-VIEs Under certain debt agreements, we transfer finance receivables to entities which are not considered VIEs. These transfers do not meet the criteria to be considered sales; 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 December 31, 2015 and 2014, $1.5 billion and $2.5 billion in finance receivables had been transferred in secured funding arrangements to third-party banks, to which $1.4 billion and $2.4 billion in secured debt was outstanding. 56

Table of Contents Note 10.

Derivative Financial Instruments and Hedging Activities

Derivative financial instruments consist of the following (in millions): December 31, 2015 Notional

December 31, 2014

Fair Value

Notional

Fair Value

Fair value hedges Liabilities Interest rate swaps(a)(d) Derivatives not designated as hedges Assets

$

Interest rate swaps(b) Interest rate caps(a) Foreign currency swaps(a) Total assets(c)

1,000

$

6

$



$



4,122

8

1,652

6

6,327 1,460

19 48

2,123 1,594

6 4

$

11,909

$

75

$

5,369

$

16

$

8,041

$

24

$

5,627

$

39

Liabilities Interest rate swaps(b) Interest rate caps(a)

5,892

Foreign currency swaps(a) Total liabilities(d)

19

— $

13,933

1,804

— $

43

6

1,044 $

8,475

1 $

46

_________________ (a) The fair value is based on observable market inputs, and are classified as level 2. (b) The fair value is estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates, and classified as level 3. (c) Included in other assets on the consolidated balance sheets. (d) Included in other liabilities on the consolidated balance sheets. The following table presents information on the effect of derivative instruments on the consolidated statements of income and comprehensive income (in millions): Income (Losses) Recognized In Income Years Ended December 31, 2015

2014

2013

Fair value hedges Interest rate contracts Net interest accruals

$

1

Ineffectiveness(a)

$



$









(15)

(51)

(1)

Derivatives not designated as hedges Interest rate contracts(b) Foreign currency derivatives(c)

42 $

27

163 $

112

(118) $

(119)

(a) Hedge ineffectiveness reflects the net change in the fair value of interest rate contracts of $6.0 million offset by the change in fair value of hedged debt attributable to the hedged risk of $5.6 million. (b) Recognized in earnings as interest expense. (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 years ended December 31, 2015, 2014 and 2013. 57

Table of Contents Note 11.

Commitments and Contingencies

Leases We lease space for our operating facilities and administrative offices under leases with terms up to 10 years with renewal options. Certain leases contain lease escalation clauses for real estate taxes and other operating expenses and renewal option clauses calling for increased rents. A summary of lease expense is as follows (in millions): Years Ended December 31, 2015

Lease expense

2014

$

28

$

2013

28

$

21

Operating lease commitments are as follows (in millions): Years Ending December 31, 2016

Operating lease commitments

$

2017

19

$

2018

19

$

2019

16

$

2020

14

$

Thereafter

11

$

38

Total

$

117

Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and retail finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions. The counterparties to our derivative financial instruments are various major financial institutions. Retail finance receivables in the North America Segment represent contracts with customers residing throughout the U.S. and Canada, with borrowers located in Texas accounting for 16.2% of the portfolio as of December 31, 2015. No other state accounted for more than 10% of retail finance receivables. Retail finance receivables in the International Segment represent contracts with customers residing throughout Europe and Latin America. Borrowers located in the U.K., Brazil, Germany and Mexico accounted for 28.6%, 21.4%, 20.6%, and 12.5% of the international retail finance receivables as of December 31, 2015. No other country accounted for more than 10% of retail finance receivables. At December 31, 2015, substantially all of our commercial finance receivables represent loans to GM-franchised dealerships and their affiliates. 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 December 31, 2015 and 2014, the par value of our senior notes was $19.1 billion and $8.4 billion. See Note 21 - "Guarantor 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 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 December 31, 2015, we estimated our reasonably possible legal exposure for unfavorable outcomes of up to $101 million, and have accrued $43 million. 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. 58

Table of Contents 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 $50 million. Note 12.

Parent Company Stock-Based Compensation

GM provides certain stock-based compensation plans for employees and key executive officers. Long-Term Incentive Plan GM grants to certain employees Restricted Stock Units (“RSUs”), Performance-based Share Units (“PSUs”) and stock options. Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans, such as retirement, death or disability. GM's policy is to issue new shares upon settlement of RSUs. The following table summarizes the awards granted (units in thousands): Year Ended December 31, 2015

RSUs PSUs Stock options

2014

317 366 786

2013

431 326 —

700 — —

The RSUs awarded either cliff vest or ratably vest over a three-year service period, as defined in the terms for each award. Vesting and subsequent settlement will generally occur based on employment at the end of each specified service period. The ultimate number of PSUs earned will be determined at the end of the specified performance period, which is three years, based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. PSU awards generally vest and settle at the end of a three-year period. Stock options were granted to senior leaders to maintain the leadership consistency needed to achieve our and GM's short-term and long-term goals. Each recipient was required to accept non-compete and non-solicitation covenants. These stock options have a vesting feature whereby two-fifths of the award is exercisable approximately nineteen months after the date of grant and the remainder vest ratably over the next three years based on the performance of GM’s stock relative to that of a specified peer group. The stock options expire ten years from the grant date. Salary Stock Plan In the year ended December 31, 2013 a portion of each participant's salary was accrued on each salary payment date and converted to RSUs on a quarterly basis. In June 2013 the plan was amended to provide for cash or share settlement of awards based on election by the participant. The liability for these awards continues to be remeasured to fair value at the end of each reporting period.

59

Table of Contents RSUs, PSUs and Stock Options The following table summarizes information about RSU, PSUs and stock options granted to our employees and key executive officers under GM's stockbased compensation programs (units in thousands): Year Ended December 31, 2015 Weighted-Average Remaining Contractual Term (years)

Weighted-Average Grant Date Fair Value

Shares

Units outstanding at January 1, 2015 Granted Forfeited or expired Settled

1,409 1,469 (17) (559)

$ $ $ $

32.75 34.27 36.04 28.99

1.5

Units outstanding at December 31, 2015

2,302

$

34.61

1.3

Units unvested and expected to vest at December 31, 2015 Units vested and payable at December 31, 2015 Units granted in the year ended December 31, 2014 Units granted in the year ended December 31, 2013

1,464 778

$ $ $ $

35.40 33.05 35.96 33.58

1.4

The following table summarizes compensation expense recorded for stock-based incentive plans (in millions): Years Ended December 31, 2015

2014

2013

Compensation expense Income tax benefit

$

36 13

$

19 8

$

21 8

Compensation expense, net of tax

$

23

$

11

$

13

At December 31, 2015 and 2014, total unrecognized compensation expense for nonvested equity awards granted was $53 million and $31 million. This expense is expected to be recorded over a weighted-average period of 1.4 years. The total fair value of RSUs and PSUs vested in the years ended December 31, 2015, 2014, and 2013 was $13 million, $9 million and $9 million for each year. In the years ended December 31, 2015, 2014, and 2013, total payments for 254,000, 359,000 and 317,000 RSUs settled in cash under stock incentive plans were $9 million, $13 million and $10 million. Note 13.

Employee Benefit Plans

We have defined contribution retirement plans covering substantially all employees in the North America Segment as well as in Brazil and the U.K. We recognized $17 million, $12 million and $8 million in compensation expense for 2015, 2014 and 2013 related to these plans. Contributions to the plans were made in cash. Certain employees in the International Segment are eligible to participate in plans that provide for pension payments upon retirement based on factors such as length of service and salary. The associated liability was $109 million and $115 million at December 31, 2015 and 2014. We recognized $6 million, $6 million and $5 million in net periodic pension expense in 2015, 2014 and 2013. Note 14.

Income Taxes

The following table summarizes income before income taxes and equity income (in millions): Years Ended December 31, 2015

U.S. income

60

2013

$

362 359

$

481 334

$

637 246

$

721

$

815

$

883

Non-U.S. income Income before income taxes and equity income

2014

Table of Contents Income Tax Expense The following table summarizes income tax expense (in millions): Years Ended December 31, 2015

2014

2013

Current income tax expense U.S. federal U.S. state and local Non-U.S. Total current

$

13 $ (5) 51

284 14 63

$

67 5 66

59

361

138

95 6 31

(87) (5) 9

176 7 (4)

132

(83)

179

Deferred income tax expense U.S. federal U.S. state and local Non-U.S. Total deferred Total income tax provision

$

191

$

278

$

317

Provisions are made for estimated U.S. and non-U.S. income taxes, less available tax credits and deductions, which may be incurred on the remittance of our basis differences in investments in foreign subsidiaries not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $21 million and $26 million at December 31, 2015 and 2014. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable. The following table summarizes a reconciliation of income tax expense (benefit) compared with the amounts at the U.S. federal statutory income tax rate: Years Ended December 31, 2015

U.S. statutory tax rate

2014

2013

Non-U.S. income taxed at other than 35% State and local income taxes U.S. tax on non-U.S. earnings Valuation allowance Tax credits and incentives Other

35.0 % (3.2) 0.9 (3.2) 7.1 (6.6) (3.5)

35.0 % (2.2) 1.2 7.2 (4.9) (0.8) (1.5)

35.0 % (1.7) 1.1 (1.7) 3.4 — (0.2)

Effective tax rate

26.5 %

34.0 %

35.9 %

Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2015 and 2014 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the basis of such assets, liabilities and equity as measured by tax laws, as well as tax loss and tax credit carryforwards. 61

Table of Contents The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities (in millions): December 31, 2015

December 31, 2014

Deferred tax assets: Net operating loss carryforward - U.S.(a) Net operating loss carryforward - Non-U.S.(b) Market value difference of loan portfolio Accruals Tax Credits(c) Other

$

409 189 166 107 131 113

Total deferred tax assets before valuation allowance Less: valuation allowance Total deferred tax assets

$

6 199 349 157 2 147

1,115 (104)

860 (57)

1,011

803

645 34 27 116 47 40

300 35 41 50 — 56

Deferred tax liabilities: Depreciable assets Intangible assets Accrued commissions Deferred acquisition costs/revenue Tax on unremitted earnings of non-U.S. entities Other Total deferred tax liabilities

909

Net deferred tax asset

$

102

482 $

321

_________________ (a) Includes tax-effected operating losses of $409 million expiring through 2036 at December 31, 2015. (b) Includes tax-effected operating losses of $84 million expiring through 2032 and $105 million that may be carried forward indefinitely at December 31, 2015. (c) Includes tax credits of $131 million expiring through 2036 at December 31, 2015. We are included in GM’s consolidated U.S. federal income tax return and 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. As of December 31, 2015, we have $50 million in valuation allowances against deferred tax assets in non-U.S. jurisdictions and $54 million in valuation allowances against deferred tax assets in U.S. jurisdictions. The increase in our valuation allowance is primarily related to a change in our assessment of the realization of certain U.S. tax credits. Uncertain Tax Positions The following table summarizes activity of unrecognized tax benefits (in millions): Years Ended December 31, 2015

Beginning balance International operations acquired amounts Additions to prior years' tax positions Reductions to prior years' tax positions Additions to current year tax positions Reductions in tax positions due to lapse of statutory limitations Settlements Foreign currency translation Ending balance 62

2014

2013

$

95 — — (7) 1 (16) (2) (10)

$

130 — 1 (12) 7 (6) (20) (5)

$

$

61

$

95

$

53 71 — (1) 12 (3) (1) (1) 130

Table of Contents At December 31, 2015, 2014 and 2013, there were $35 million, $71 million and $104 million of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate. We recognize accrued interest and penalties associated with uncertain tax positions as a component of the income tax provision. Accrued interest and penalties are included within the related tax liability line on the consolidated balance sheets. During 2014 and 2013, we recorded income tax related interest expense (benefit) and penalties of $(12) million and $(7) million. The amount recorded in 2015 was insignificant. At December 31, 2015 and 2014 we had liabilities of $75 million and $125 million for income tax-related interest and penalties. At December 31, 2015, we believe that it is reasonably possible that the balance of the gross unrecognized tax benefits could decrease by as much as $20 million in the next twelve months due to settlements or the expiration of statutes of limitations. Periodically we make deposits to taxing jurisdictions which reduce our unrecognized tax benefit balance, but are not reflected in the reconciliation above. The amount of deposits that reduce our unrecognized tax benefit liability in the consolidated balance sheets was $12 million at December 31, 2015 and $22 million at December 31, 2014. Other Matters 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. Under our tax sharing arrangement with GM, payments related to our U.S. operations for the tax years 2010 through 2014 were deferred for four years from their original due date. During 2014, accrued tax payments of $296 million related to the 2010 and 2011 tax years were converted to and treated as capital contributions. At December 31, 2014, we had related party taxes payable to GM in the amount of $636 million. During 2015, the outstanding balance was converted to and treated as a capital contribution. Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2008 to 2015 with various tax jurisdictions. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and/or recognition of expenses, or the sustainability of income tax credits. Certain of our state and foreign tax returns are currently under examination in various jurisdictions. Note 15.

Supplemental Cash Flow Information

Cash payments for interest costs and income taxes consist of the following (in millions): Years Ended December 31, 2015

Interest costs (none capitalized) Income taxes

$ $

2014

1,295 84

$ $

2013

1,120 127

$ $

760 39

Non-cash investing items consist of the following (in millions): Years Ended December 31, 2015

Subvention receivable from GM Commercial loan funding payable to GM Note 16.

$ $

2014

383 351

$ $

2013

189 427

$ $

82 362

Fair Values of Financial Instruments

Fair values are based on estimates using present value or other valuation techniques in cases where quoted market prices are not available. Those techniques are significantly affected by the assumptions used, including the discount rate and the estimated timing and amount of future cash flows. Therefore, the estimates of fair value may differ substantially from amounts that ultimately may be realized or paid at settlement or maturity of the financial instruments and those differences may be material. Disclosures about fair value of financial instruments exclude certain financial instruments and all nonfinancial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of our company. 63

Table of Contents Estimated fair values, carrying values and various methods and assumptions used in valuing our financial instruments are set forth below (in millions): December 31, 2015 Level

Carrying Value

Estimated Fair Value

December 31, 2014 Carrying Value

Estimated Fair Value

Financial assets Cash and cash equivalents(a) 1 $ 3,061 $ 3,061 $ 2,974 $ 2,974 Retail finance receivables, net 3 $ 28,390 $ 28,545 $ 24,968 $ 25,541 Commercial finance receivables, net (b) 2 $ 8,392 $ 8,392 $ 8,032 $ 8,032 (a) Restricted cash 1 $ 1,941 $ 1,941 $ 2,071 $ 2,071 Financial liabilities Secured debt North America(c) 2 $ 23,151 $ 23,182 $ 15,454 $ 15,497 International (d) 2 $ 3,122 $ 3,125 $ 5,690 $ 5,694 International (e) 3 $ 4,416 $ 4,364 $ 4,070 $ 4,037 Unsecured debt North America(f) 2 $ 17,731 $ 17,792 $ 7,846 $ 8,092 International (g) 2 $ 4,605 $ 4,617 $ 3,496 $ 3,507 International (e) 3 $ 1,321 $ 1,317 $ 875 $ 880 _________________ (a) Cash and cash equivalents bear interest at market rates; therefore, carrying value is considered to be a reasonable estimate of fair value. (b) The fair value commercial finance receivables is assumed to be carrying value, as the receivables generally have variable interest rates and maturities of one year or less. (c) Secured debt in the North America Segment is comprised of revolving credit facilities, publicly-issued secured debt, and privately-issued secured debt, and is valued using level 2 inputs. For the revolving credit facilities with variable rates of interest and terms of one year or less, carrying value is considered to be a reasonable estimate of fair value. The fair value of the publicly-issued secured debt is based on quoted market prices of identical instruments in thinly-traded markets, when available. If quoted market prices are not available, and for determining the fair value of privately-issued secured debt, the market value is estimated using quoted market prices of similar securities. (d) The fair value is assumed to be par value, as the debt has terms of one year or less, or has been priced within the last six months. (e) The fair value is estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates. (f) The fair value is based on quoted market prices of identical instruments in thinly-traded markets. (g) The fair value of senior notes is based on quoted market prices of identical instruments in thinly-traded markets. The fair value of other unsecured debt is assumed to be par value, as the debt has terms of one year or less. The fair value of our retail finance receivables is based on observable and unobservable inputs within a discounted cash flow model. Those unobservable 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 which is the basis for the calculation of the series of cash flows that derive the fair value of the portfolio. For the North America Segment, the series of cash flows is calculated and discounted using a weighted-average cost of capital using unobservable debt and equity percentages, an unobservable cost of equity and an observable cost of debt based on companies with a similar credit rating and maturity profile. For the International Segment, the series of cash flows is calculated and discounted using current interest rates. Macroeconomic factors could affect the credit performance of our portfolio and therefore could potentially impact the assumptions used in our cash flow model. 64

Table of Contents Note 17.

Segment Reporting and Geographic Information

Segments 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. 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. All inter-segment balances and transactions have been eliminated. Key operating data for our operating segments were as follows (in millions): Year Ended December 31, 2015 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses, including leased vehicle expenses Provision for loan losses Interest expense Equity income

$

4,777 2,925 466 833 —

$

1,677 568 158 722 116

$

13 — — 74 —

$

(13) — — (13) —

$

6,454 3,493 624 1,616 116

Income (loss) before income taxes

$

553

$

345

$

(61)

$



$

837

Year Ended December 31, 2014 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses, including leased vehicle expenses Provision for loan losses Interest expense

$

2,909 1,385 472 459

$

1,945 624 132 954

$

56 — — 69

$

(56) — — (56)

$

4,854 2,009 604 1,426

Income (loss) before income taxes

$

593

$

235

$

(13)

$



$

815

Year Ended December 31, 2013 North America

International

Corporate

Eliminations

Total

Total revenue Operating expenses, including leased vehicle expenses Provision for loan losses Interest expense Acquisition and integration expenses

$

2,376 893 393 360 —

$

968 330 82 362 42

$

43 — — 42 —

$

(43) — — (43) —

$

3,344 1,223 475 721 42

Income before income taxes

$

730

$

152

$

1

$



$

883

December 31, 2015 North America

Finance receivables, net Leased vehicles, net Total assets

$ $ $

21,558 20,086 47,419

International

$ $ $

15,223 86 18,485

December 31, 2014 North America

Total

$ $ $

36,781 20,172 65,904 65

$ $ $

15,943 7,029 27,586

International

$ $ $

17,057 31 20,022

Total

$ $ $

33,000 7,060 47,608

Table of Contents Geographic Information The following table summarizes information concerning principal geographic areas (in millions): At and For the Years Ended December 31, 2015 Revenue

U.S. Canada Brazil Other countries(b)

$

4,324 453 757 920

2014

Long-Lived Assets(a)

$

18,501 1,731 3 156

Revenue

$

2,552 357 964 981

2013

Long-Lived Assets(a)

$

Revenue

5,477 1,635 4 116

$

2,185 204 234 721

Long-Lived Assets(a)

$

$ 6,454 $ 20,391 $ 4,854 $ 7,232 $ 3,344 $ Total consolidated _________________ (a) Long-lived assets includes $20.2 billion, $7.1 billion and $3.4 billion of vehicles on operating leases at December 2015, 2014 and 2013. (b) No individual country represents more than 10% of our total revenue or long-lived assets. Note 18.

2,472 965 4 74 3,515

Accumulated Other Comprehensive (Loss) Income

A summary of changes in accumulated other comprehensive (loss) income is as follows (in millions): Years Ended December 31, 2015

2014

2013

Defined benefit plans, net Balance at beginning of period Unrealized (loss) gain on subsidiary pension, net of tax Balance at end of period

$

(11) $ (2)

3 $ (14)

— 3

(13)

(11)

3

(422) (669)

8 (430)

(3) 11

(1,091)

(422)

(1,104) $

(433) $

Foreign currency translation adjustment Balance at beginning of period Translation (loss) gain Balance at end of period Total accumulated other comprehensive (loss) income Note 19.

$

8 11

Regulatory Capital and Other Regulatory Matters

We are required to comply with a wide variety of laws and regulations. The International Segment includes the operations of certain stand-alone entities that operate in local markets as either banks or regulated finance companies and 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. The following table lists the most recently reported minimum statutory capital requirements and the actual statutory capital for our significant regulated international banks: Minimum Capital Requirement

Country

Germany Brazil

8.0% 11.0%

Actual Capital

18.1% 13.4%

Total assets of our regulated international banks and finance companies were approximately $11.1 billion and $11.4 billion at December 31, 2015 and 2014. 66

Table of Contents Note 20.

Quarterly Financial Data (unaudited)

The following tables summarize supplementary quarterly financial information (in millions): First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Year Ended December 31, 2015 Total revenue Income before income taxes Net income

$ $ $

1,354 214 150

$ $ $

1,515 225 186

$ $ $

1,707 231 179

$ $ $

1,878 167 131

Year Ended December 31, 2014 Total revenue Income before income taxes Net income

$ $ $

1,097 222 145

$ $ $

1,191 265 175

$ $ $

1,261 208 158

$ $ $

1,305 120 59

Note 21.

Guarantor 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 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 December 31, 2015 and December 31, 2014 and for the years ended December 31, 2015, 2014 and 2013 (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 consolidating balance sheet in the financing activities section of the consolidating statements of cash flows for the years ended December 31, 2014 and 2013. As a result, correcting adjustments have been made from what was previously reported to (1) reclassify $3.1 billion and $1.5 billion of the net change in the due from affiliates for General Motors Financial Company, Inc. within the consolidating statements of cash flows to the investing activities section for 2014 and 2013, respectively; (2) reclassify $443 million and $159 million of the net change in the due from affiliates for the Guarantor within the consolidating statements of cash flows to the investing activities section for 2014 and 2013, respectively; (3) reclassify $400 million of the net change of the due to affiliates for the Non-Guarantor subsidiaries within the consolidated statement of cash flow to the investing activities section for 2014; and (4) report a $2.0 billion due from affiliates for the Guarantor within the consolidating balance sheet at December 31, 2014 that was previously presented net within the due to affiliates line. In addition, reclassifications have been made solely within the investing activities section of the 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 $1.4 billion and $1.0 billion for 2014 and 2013, respectively. These adjustments had no effect on the consolidated financial statements at or for the years ended December 31, 2014 or 2013. 67

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING BALANCE SHEET December 31, 2015 (in millions) General Motors Financial Company, Inc.

NonGuarantors

Guarantor

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

1,095



94



1,189

Equity in net assets of nonconsolidated affiliates





986



986

Property and equipment, net



41

178



219

212



179

(160)

231

Related party receivables



27

546



573

Other assets

32

32

687



751

15,573

7,556



(23,129)

8,476

6,425



(14,901)

Goodwill

Deferred income taxes

Due from affiliates Investment in affiliates Total assets

$

— —

25,388

$

21,208

$

57,498

$

(38,190) $

65,904



$



$

30,689

$



30,689

Liabilities and Shareholder's Equity Liabilities Secured debt

$

Unsecured debt Accounts payable and accrued expenses

17,087



$

6,570



23,657

181

717

320



1,218

Deferred income





1,454



1,454

Deferred income taxes



289



(160)

129

Related party payable





362



362

Other liabilities

68

34

241



343

Due to affiliates



15,495

7,634

(23,129)



17,336

16,535

47,270

(23,289)

57,852





698

(698)



6,484

79

6,490

(6,569)

6,484

(175)

Total liabilities Shareholder's equity Common stock Additional paid-in capital Accumulated other comprehensive loss

(1,104)

Retained earnings Total shareholder's equity Total liabilities and shareholder's equity

$

(1,095)

1,270

(1,104)

2,672

4,769

4,135

(8,904)

2,672

8,052

4,673

10,228

(14,901)

8,052

25,388

$

21,208

68

$

57,498

$

(38,190) $

65,904

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING BALANCE SHEET December 31, 2014 (in millions) General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Assets Cash and cash equivalents

$



$

2,266

$

708

$



$

2,974

Finance receivables, net



2,401

30,599



33,000

Leased vehicles, net





7,060



7,060

Restricted cash



17

2,054



2,071

1,095



149



1,244

Property and equipment, net



23

149



172

Deferred income taxes

28



601

(288)

341

Related party receivables



11

373



384

Other assets

29

18

315



362

Due from affiliates

6,787

1,965

400

(9,152)

Investment in affiliates

7,684

4,059



(11,743)

Goodwill

Total assets

$

— —

15,623

$

10,760

$

42,408

$

(21,183) $

47,608



$



$

25,173

$



25,173

Liabilities and Shareholder's Equity Liabilities Secured debt

$

Unsecured debt

$

7,435



4,707



12,142

Accounts payable and accrued expenses Deferred income

78

156

768



1,002





392



392

Deferred income taxes



288

20

(288)

20

636







636

Related party payable





433



433

Other liabilities

82

12

324



418

Due to affiliates



6,129

3,023

(9,152)



8,231

6,585

34,840

(9,440)

40,216





690

(690)



5,799

79

4,064

(4,143)

5,799

Related party taxes payable

Total liabilities Shareholder's equity Common stock Additional paid-in capital Accumulated other comprehensive loss

(433)

Retained earnings Total shareholder's equity Total liabilities and shareholder's equity

$

(64)

(410)

474

(433)

2,026

4,160

3,224

(7,384)

2,026

7,392

4,175

7,568

(11,743)

7,392

15,623

$

10,760

69

$

42,408

$

(21,183) $

47,608

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2015

(in millions) General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— 13

403 — 505

— (391)

3,381 2,807 266

13

908

5,924

(391)

6,454

— 64

332 105

394 649

— (251)

726 567

64 — — 488

437 — 398 18

1,043 2,200 226 1,250

(251) — — (140)

1,293 2,200 624 1,616

552 941

853 579

4,719 116

(391) (1,520)

5,733 116

402 (244)

634 25

1,321 410

(1,520) —

837 191 646



$

$

2,978 2,807 139

$



$

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income Income before income taxes Income tax (benefit) provision Net income

$

646

$

609

$

911

$

(1,520) $

Comprehensive (loss) income

$

(25) $

498

$

225

$

(723) $

70

(25)

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2014

(in millions) General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— 68

194 — 432

— $ — (389)

3,475 1,090 289

68

626

4,549

(389)

4,854

— 159

249 (17)

365 657

— (251)

614 548

159 — — 232

232 — 334 23

1,022 847 270 1,309

(251) — — (138)

1,162 847 604 1,426

391 757

589 523

3,448 —

(389) (1,280)

4,039 —

434 (103)

560 12

1,101 369

(1,280) —

815 278



$

$

3,281 1,090 178

$

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Total costs and expenses Equity income Income before income taxes Income tax (benefit) provision Net income

$

537

$

548

$

732

$

(1,280) $

537

Comprehensive income

$

93

$

491

$

298

$

(789) $

93

71

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2013

(in millions) General Motors Financial Company, Inc.

NonGuarantors

Guarantor

Eliminations

Consolidated

Revenue Finance charge income Leased vehicle income Other income Total revenue

$

— — 56

$

140 — 433

$

2,423 595 105

$

— $ — (408)

2,563 595 186

56

573

3,123

(408)

3,344

— (100)

216 228

232 441

— (247)

448 322

(100) — — 180

444 — 239 37

673 453 236 665

(247) — — (161)

770 453 475 721





42



42

80 584

720 551

2,069 —

(408) (1,135)

2,461 —

560 (6)

404 (42)

1,054 365

(1,135) —

883 317

Costs and expenses Salaries and benefits Other operating expenses Total operating expenses Leased vehicle expenses Provision for loan losses Interest expense Acquisition and integration expenses Total costs and expenses Equity income Income before income taxes Income tax (benefit) provision Net income

$

566

$

446

$

689

$

(1,135) $

566

Comprehensive income

$

580

$

449

$

700

$

(1,149) $

580

72

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015

(in millions) General Motors Financial Company, Inc.

Guarantor

NonGuarantors

Eliminations

Consolidated

Cash flows from operating activities Net income

$

646

$

609

$

911

$

(1,520)

$

646

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

28

3

Accretion and amortization of loan and leasing fees



25

(634)



(609)

Amortization of carrying value adjustment



(14)

(135)



(149)

(579)

(116)

1,520

(116)

398

226



624

(189)

2

319



132

Stock-based compensation expense

33



3



36

Other

32

(5)

(64)



(37)

Equity in income of affiliates Provision for loan losses Deferred income taxes

(941) —

2,372



2,403

Changes in assets and liabilities: Other assets

(3)

25

(126)



(104)

531

(349)



282

(12)

1

(9)



(20)

(636)







(636)



(14)



(13)

Accounts payable and accrued expenses

100

Taxes payable Related party taxes payable Related party payables Net cash (used in) provided by operating activities

1 (941)

996

2,384



2,439

Cash flows from investing activities Purchases of retail finance receivables, net



Principal collections and recoveries on retail finance receivables



755

10,971

Proceeds from transfer of retail finance receivables, net



10,428

3,033

Net funding of commercial finance receivables



6

(1,023)



(1,017)

Purchases of leased vehicles, net





(15,337)



(15,337)

Proceeds from termination of leased vehicles





1,096



1,096





(1,049)

Acquisition of international operations

(513)

(13,997)

(536)

(16,981)

13,461 — (13,461)

(17,517) 11,726 —

Disposition of equity interest



125





Purchases of property and equipment



(21)

(69)



(90)

Change in restricted cash



(43)

(221)



(264)



Change in other assets Net change in due from affiliates Net change in investment in affiliates Net cash used in investing activities



125

30



30

(8,819)

(5,593)



14,412



(6)

(1,893)



1,899

(9,338)

(10,769)

(18,501)

16,311

— (22,297)

Cash flows from financing activities Net change in debt (original maturities less than three months)





1,147



1,147

Borrowings and issuance of secured debt





22,385



22,385

Payments on secured debt





(15,178)



(15,178)

9,687



3,290



12,977





(1,709)



(1,709)

Net capital contributions

649



1,899

Debt issuance costs

(58)



Borrowings and issuance of unsecured debt Payments on unsecured debt

Other Net change in due to affiliates Net cash provided by financing activities

(97)

(1,899) —

1







9,766

4,646

(14,412)



10,279

9,766

16,383

(16,311)

20,117

Net increase (decrease) in cash and cash equivalents



Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period



649 (155)

(7)

266







(172)





2,266

708



1

259 (172) 2,974

Cash and cash equivalents at end of period

$



73

$

2,259

$

802

$



$

3,061

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014

(in millions) General Motors Financial Company, Inc.

Guarantor

NonGuarantors

Eliminations

Consolidated

Cash flows from operating activities Net income

$

537

$

548

$

732

$

(1,280)

$

537

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

14

2

976



992

Accretion and amortization of loan and leasing fees



4

(367)



(363)

(4)

(230)



(234)

Amortization of carrying value adjustment



Equity in income of affiliates

(757)

Provision for loan losses Deferred income taxes Stock-based compensation expense Other

(523)



1,280





334

270



604

(211)



(83)

1

127

18



1



19

137

(2)

47



182

Changes in assets and liabilities: Other assets

(18)

(14)

(56)



(88)

Accounts payable and accrued expenses

36

(25)

122



133

Taxes payable

(3)



(60)



(63)

Related party taxes payable

(7)







(7)

Related party payable





5



5

447

1,229



1,634

Net cash (used in) provided by operating activities

(42)

Cash flows from investing activities Purchases of retail finance receivables, net



Principal collections and recoveries on retail finance receivables



Proceeds from transfer of retail finance receivables, net



Net funding of commercial finance receivables



Purchases of leased vehicles, net





Proceeds from termination of leased vehicles





533



533

Acquisition of international operations

(46)







(46)

Purchases of property and equipment



(20)

(32)



(52)

Change in restricted cash



3

(235)



(232)

Change in other assets

(8,220) (99)



Net change in investment in affiliates Net cash used in investing activities

(443)

(357)

(27)

(3,552)

(2,565)

(14,749)



1,423

(128)

(3,149)

7,792

10,959

6,369



Net change in due from affiliates

(14,321)

10,860

(7,792)



(1,770)



(1,898)

(4,882)



(4,882)

(2)



(400)

3,992



(2) —

384

(8,727)



4,376

(10,468)

Cash flows from financing activities Net change in debt (original maturities less than three months)





470



470

Borrowings and issuance of secured debt





21,080



21,080

Payments on secured debt Borrowings and issuance of unsecured debt Payments on unsecured debt





(16,890)



(16,890)

3,500



3,674



7,174

(1,889)



(1,889)





Net capital contributions

996



382

Debt issuance costs

(39)



(88)

(863)

Net change in due to affiliates

(382)

996



(127)

3,989

866

(3,992)



3,594

3,989

7,605

(4,374)

10,814

Net increase (decrease) in cash and cash equivalents



1,871

107

Effect of foreign exchange rate changes on cash and cash equivalents





Cash and cash equivalents at beginning of period



395

Net cash provided by financing activities

Cash and cash equivalents at end of period

$



$

2,266

$

2

(78)

(2)

679



708

$



1,980 (80) 1,074 $

2,974

74

Table of Contents GENERAL MOTORS FINANCIAL COMPANY, INC. CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013

(in millions) General Motors Financial Company, Inc.

Guarantor

NonGuarantors

Eliminations

Consolidated

Cash flows from operating activities Net income

$

566

$

446

$

689

$

(1,135)

$

566

Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization

8

2

535



545

Accretion and amortization of loan and leasing fees



2

(90)



(88)

Amortization of carrying value adjustment



(2)

(92)



(94)

Equity in income of affiliates Provision for loan losses

(584)

(551)



1,135





239

236



475

Deferred income taxes

9

133

37



179

Stock-based compensation expense

9







(118)



(49)



(167)

Other

9

Changes in assets and liabilities Other assets

(71)

22

(78)



(127)

Accounts payable and accrued expenses

73

34

88



195

Taxes payable

(6)

(5)

31



20

Related party taxes payable

84







84

Related party payable





(39)



(39)

Net cash (used in) provided by operating activities

(30)

320

1,268



1,558

Cash flows from investing activities Purchases of retail finance receivables, net



Principal collections and recoveries on retail finance receivables



Proceeds from transfer of retail finance receivables, net



6,921

Net funding of commercial finance receivables



39

(1,351)

46

(1,266)

Purchases of leased vehicles, net





(2,262)



(2,262)

Proceeds from termination of leased vehicles





217





607



Acquisition of international operations

(3,222)

(6,119) (124)

(11,360) 7,648 985

7,906 — (7,906)

(9,573) 7,524 —

217 (2,615)

Purchases of property and equipment



(3)

(13)



(16)

Change in restricted cash



(16)

(251)



(267)

Change in other assets Net change in due from affiliates Net change in investment in affiliates Net cash used in investing activities

— (1,531)

— (1,022)

(29)

(818)

(4,782)

(1,142)

3



3



2,553



— (5,777)

847 3,446

— (8,255)

Cash flows from financing activities Borrowings and issuance of secured debt





17,378



17,378

Payments on secured debt





(13,222)



(13,222)

2,500



2,724



5,224





(2,699)



(2,699)

1,100







1,100

(1,100)







(1,100)



(1,416)

Borrowings and issuance of unsecured debt Payments on unsecured debt Borrowings on related party line of credit Payments on related party line of credit Repayment of debt to Ally Financial Net capital contribution Debt issuance costs Other Net change in due to affiliates Net cash provided by (used in) financing activities





1,478



672

(30)



(46)



1



1



863

(1,416)

(850)

1,300 (76) 2

(35)

1,771

(2,599)

— 6,491

4,812

(35)

5,163

(3,449)

Net increase (decrease) in cash and cash equivalents



(857)

654

(3)

Effect of foreign exchange rate changes on cash and cash equivalents



(12)

3



(206) (9)

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

— $



1,252 $

395

75

37 $

679

— $



1,289 $

1,074

Table of Contents ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

We had no disagreements on accounting or financial disclosure matters with our independent accountants to report under this Item 9. Item 9A.

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 specified time periods 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 December 31, 2015. 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 December 31, 2015. Management's Report On Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d15(f) under the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. GAAP. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, misstatements due to error or fraud may not be prevented or detected on a timely basis. Our management performed an assessment of the effectiveness of our internal control over financial reporting at December 31, 2015, utilizing the criteria discussed in the “Internal Control - Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. The objective of this assessment was to determine whether our internal control over financial reporting was effective at December 31, 2015. Based on management's assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2015. Changes in Internal Control Over Financial Reporting There were no changes made to our internal control over financial reporting during the quarter ended December 31, 2015, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting. Limitations Inherent in all Controls Our management, including the CEO and CFO, recognize that the disclosure controls and internal controls (discussed above) cannot prevent all errors or all attempts at fraud. Any controls system, no matter how well crafted and operated, can only provide reasonable, and not absolute, assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitations in any control system, no evaluation or implementation of a control system can provide complete assurance that all control issues and all possible instances of fraud have been or will be detected. 76

Table of Contents PART III ITEM 10.

DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Omitted in accordance with General Instruction I to Form 10-K. ITEM 11.

EXECUTIVE AND DIRECTOR COMPENSATION

Omitted in accordance with General Instruction I to Form 10-K. ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Omitted in accordance with General Instruction I to Form 10-K. ITEM 13.

CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Omitted in accordance with General Instruction I to Form 10-K. ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICES Year Ended December 31, 2015

2014

2013

(in millions)

Deloitte & Touche LLP Audit Fees(a)

$

Audit Related Fees(b)

6

$

6

$

11

3

Total Fees

$

9

$

6

$

10

5

4

_________________ (a) Audit Fees include the annual financial statement audit (including quarterly reviews, subsidiary audits and other procedures required to be performed by the independent registered public accounting firm to be able to form an opinion on our consolidated financial statements). (b) Audit-Related Fees are assurance and related services that are reasonably related to the performance of the audit or review of our financial statements or that are traditionally performed by the independent registered public accounting firm. Audit-Related Fees include, among other things, agreed-upon procedures and other services pertaining to our securitization program and other warehouse credit facility reviews; the attestations required by the requirements of Regulation AB; and accounting consultations related to accounting, financial reporting or disclosure matters not classified as "Audit Fees." Fees for tax services including tax compliance and related advice were $178,000, $168,000 and $75,000 for 2015, 2014 and 2013. As a wholly-owned subsidiary of General Motors Company, audit and non-audit services provided by our independent auditor are subject to General Motors Company's Audit Committee pre-approval policies and procedures. The Audit Committee pre-approved all services provided by, and all fees of, our independent auditor. 77

Table of Contents PART IV ITEM 15.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(1) The following Consolidated Financial Statements as set forth in Item 8 of this report are filed herein. Consolidated Financial Statements: Consolidated Balance Sheets as of December 31, 2015 and 2014. Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2015, 2014 and 2013. Consolidated Statements of Shareholder's Equity for the years ended December 31, 2015, 2014 and 2013. Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013. Notes to Consolidated Financial Statements (2) All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are either not required under the related instructions, are inapplicable, or the required information is included elsewhere in the Consolidated Financial Statements and incorporated herein by reference. (3) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Index to Exhibits. 78

Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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, on February 3, 2016. GENERAL MOTORS FINANCIAL COMPANY, INC. BY:

/s/ DANIEL E. B ERCE Daniel E. Berce President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Signature

/s/ DANIEL E. B ERCE

Title

Date

Director, President and Chief Executive Officer (Principal Executive Officer)

February 3, 2016

Executive Vice President and Chief Financial Officer

February 3, 2016

Executive Vice President and Chief Accounting Officer (Principal Accounting Officer)

February 3, 2016

Director

February 3, 2016

Director

February 3, 2016

Daniel E. Berce

/s/ C HRIS A. C HOATE Chris A. Choate

/s/ C ONNIE C OFFEY Connie Coffey

/s/ DANIEL AMMANN Daniel Ammann

/s/ C HARLES K. STEVENS III Charles K. Stevens III

79

INDEX TO EXHIBITS The following documents are filed as a part of this report. Those exhibits previously filed and incorporated herein by reference are identified by the exhibit numbers used in the report with which they were filed. Documents filed with this report are identified by the symbol "@." Exhibit No.

Description

2.1

Agreement and Plan of Merger, dated July 21, 2010, among General Motors Holdings LLC, Goalie Texas Holdco Inc. and AmeriCredit Corp., incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed on July 26, 2010.

Incorporated by Reference

3.1

Articles of Incorporation of the Company, filed May 18, 1988, and Articles of Amendment to Articles of Incorporation, incorporated herein by reference to Exhibit 3.1 to Registration Statement No. 33-31220 on Form S-1 filed on August 24, 1988.

Incorporated by Reference

3.2

Amendment to Articles of Incorporation, filed October 18, 1989, incorporated herein by reference to Exhibit 3.2 to the Registration Statement No. 33-41203 on Form S-8 filed by the Company with the Securities and Exchange Commission.

Incorporated by Reference

3.3

Articles of Amendment to Articles of Incorporation, incorporated herein by reference herein to Exhibit 3.3 of the Quarterly Report on Form 10-Q for the quarter ended December 31, 1992, filed with the Securities and Exchange Commission.

Incorporated by Reference

3.4

Amended & Restated Bylaws of the Company, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K, filed on February 3, 2010.

Incorporated by Reference

3.5

Amended and Restated Certificate of Formation of General Motors Financial Company, Inc. (formerly known as AmeriCredit Corp.), incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K, filed on October 1, 2010.

Incorporated by Reference

4.1

Certificate of Merger merging Goalie Texas Holdco Inc. with and into AmeriCredit Corp., incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on October 1, 2010.

Incorporated by Reference

4.2

Indenture, dated June 1, 2011, between General Motors Financial Company, Inc. and Deutsche Bank Trust Company Americas, concerning GM Financial's $500 million 6.75% Senior Notes due 2018, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on June 3, 2011.

Incorporated by Reference

4.3

Indenture, dated August 16, 2012, between General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., the guarantor, and Wells Fargo Bank, N.A., as trustee, concerning GM Financial's $1 billion 4.75% Senior Noted due 2017, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on August 16, 2012

Incorporated by Reference

4.4

Indenture, dated May 14, 2013, between General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., the guarantor, and Wells Fargo Bank, N.A., as trustee, concerning GM Financial's $1 billion 2.75% Senior Noted due 2016, $750 million 3.25% Senior Notes due 2018 and $750 million 4.25% Senior Notes due 2013, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on May 14, 2013.

Incorporated by Reference

4.5

Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

4.5.1

First Supplemental Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.625% Senior Notes due 2017, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

4.5.2

Second Supplemental Indenture, dated July 10, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.500% Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on July 10, 2014.

Incorporated by Reference

80

INDEX TO EXHIBITS (CONTINUED)

4.5.3

Third Supplemental Indenture, dated September 25, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.000% Senior Notes due 2017, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on September 25, 2014.

Incorporated by Reference

4.5.3.1

First Amendment to Third Supplemental Indenture, dated October 17, 2014, incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q, filed on October 23, 2014.

Incorporated by Reference

4.5.4

Fourth Supplemental Indenture, dated September 25, 2014, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.375% Senior Notes due 2021, incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on September 25, 2014.

Incorporated by Reference

4.5.4.1

First Amendment to Fourth Supplemental Indenture, dated October 17, 2014, incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, filed on October 23, 2014.

Incorporated by Reference

4.6

Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.1

First Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the Floating Rate Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.2

Second Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.150% Senior Notes due 2020, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.3

Third Supplemental Indenture, dated January 12, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.000% Senior Notes due 2025, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on January 13, 2015.

Incorporated by Reference

4.6.4

Fourth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the Floating Rate Senior Notes due 2018, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on April 13, 2015.

Incorporated by Reference

4.6.5

Fifth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 2.400% Senior Notes due 2018, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on April 13, 2015.

Incorporated by Reference

4.6.6

Sixth Supplemental Indenture, dated April 10, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.450% Senior Notes due 2022, incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, filed on April 13, 2015.

Incorporated by Reference

4.6.7

Seventh Supplemental Indenture, dated July 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.200% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on July 13, 2015.

Incorporated by Reference

4.6.8

Eighth Supplemental Indenture, dated July 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 4.300% Senior Notes due 2025, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on July 13, 2015.

Incorporated by Reference

81

INDEX TO EXHIBITS (CONTINUED)

4.7

Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed on October 13, 2015. First Supplemental Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.100% Senior Notes due 2019, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on October 13, 2015.

Incorporated by Reference

4.7.2

Second Supplemental Indenture, dated October 13, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the Floating Rate Senior Notes due 2019, incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, filed on October 13, 2015.

Incorporated by Reference

4.7.3

Third Supplemental Indenture, dated November 24, 2015, by and among General Motors Financial Company, Inc., AmeriCredit Financial Services, Inc., as guarantor, and Wells Fargo Bank, National Association, as trustee, with respect to the 3.700% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed on November 24, 2015.

Incorporated by Reference

10.1

Sale and Servicing Agreement, dated as of February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, Incorporated by AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Reference Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.1 to the Current Report on Form 8-K, filed on March 2, 2010.

10.1.1

Indenture, dated February 26, 2010, among AmeriCredit Syndicated warehouse Trust, Deutsche Bank AG New York Incorporated by Branch and Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.2 to the Current Report on Form Reference 8-K, filed on March 2, 2010.

10.1.2

Note Purchase Agreement, dated February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated by reference herein to Exhibit 99.3 to the Current Report on Form 8-K, filed on March 2, 2010.

Incorporated by Reference

10.1.3

First Supplemental Indenture, dated August 20, 2010, between AmeriCredit Syndicated Warehouse Trust and Wells Fargo Bank, N A, incorporated herein by reference to Exhibit 10.11.3 to the Annual Report on Form 10-K filed on August 27, 2010.

Incorporated by Reference

10.1.4

Amendment No. 1, dated August 20, 2010, to Sale and Servicing Agreement, dated February 26, 2010, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG New York Branch and Wells Fargo Bank, NA, incorporated herein by reference to Exhibit 10.11.4 to the Annual Report on Form 10-K filed on August 27, 2010.

Incorporated by Reference

10.1.5

Omnibus Amendment to the Sale and Servicing Agreement, the Indenture and Note Purchase Agreement, dated February 17, 2011, among AmeriCredit Syndicated Warehouse Trust, AmeriCredit Funding Corp. XI, AmeriCredit Financial Services, Inc., Deutsche Bank AG, New York Branch, and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on February 22, 2011.

Incorporated by Reference

10.1.6

Fourth Omnibus Amendment to the Sale and Servicing Agreement, the Indenture, the Custodian Agreement and the Note Purchase Agreement, dated May 10, 2012, among AmeriCredit Syndicated Warehouse Trust, as Issuer, AmeriCredit Funding Corp. XI, as a Seller, AmeriCredit Financial Services, Inc., as a Seller and as Servicer, Deutsche Bank AG, New York Branch, as Administrative Agent, Wells Fargo Bank, National Association, as Trustee, Backup Servicer and Trust Collateral Agent, the Purchasers that are party to the Note Purchase Agreement and the Agents that are party to the Note Purchase Agreement, , incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on May 11, 2012.

Incorporated by Reference

10.2

2011-A Servicing Supplement, dated January 31, 2011, among ACAR Leasing Ltd., AmeriCredit Financial services, Inc., APGO Trust and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on February 4, 2011.

Incorporated by Reference

4.7.1

82

Incorporated by Reference

INDEX TO EXHIBITS (CONTINUED)

10.2.1

Indenture, dated January 31, 2011, among GMF Leasing Warehouse Trust, Wells Fargo Bank, National Association, Incorporated by AmeriCredit Financial services, Inc., Deutsche Bank AG, New York Branch, and JPMorgan Chase Bank, N.A., Reference incorporated herein by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed on February 4, 2011.

10.2.3

Second Omnibus Amendment to the Credit and Security Agreement, the 2011-A Exchange Note Supplement, the Indenture, the Note Purchase Agreement, the Amended and Restated Servicing Agreement and the 2011-A Servicing Supplement, dated January 30, 2012, by and among GMF Leasing Warehouse Trust, as Issuer, AmeriCredit Financial Services, Inc., ACAR Leasing Ltd., as Titling Trust, GMF Leasing LLC, as Seller, APGO Trust, as Settlor, Deutsche Bank AG, New York Branch, as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the DB Purchaser Group, JPMorgan Chase Bank, N.A., as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the JPM Purchaser Group, and Wells Fargo Bank, National Association, as Administrative Agent (under the 2011-A Exchange Note Supplement and the Credit and Security Agreement), Collateral Agent, Indenture Trustee and 2011-A Exchange Noteholder, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on February 3, 2012.

Incorporated by Reference

10.2.4

Third Omnibus Amendment to the Credit and Security Agreement, the 2011-A Exchange Note Supplement, the Indenture, the Note Purchase Agreement and the 2011-A Servicing Supplement, dated January 25, 2013, by and among GMF Leasing Warehouse Trust, as Issuer, AmeriCredit Financial Services, Inc., ACAR Leasing Ltd., as Titling Trust, GMF Leasing LLC, as Seller, APGO Trust, as Settlor, Deutsche Bank AG, New York Branch, as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the DB Purchaser Group, JPMorgan Chase Bank, N.A., as an Administrative Agent (under the Note Purchase Agreement) and as Agent for the JPM Purchaser Group, and Wells Fargo Bank, National Association, as Administrative Agent (under the 2011-A Exchange Note Supplement), Collateral Agent, Indenture Trustee and 2011-A Exchange Noteholder, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on January 31, 2013.

Incorporated by Reference

10.3

2011-A Servicing Supplement, dated July 15, 2011, among GM Financial Canada Leasing Ltd., FinanciaLinx Corporation, GMF Canada Leasing Trust, Deutsche Bank AG, Canada Branch, and BMO Nesbitt Burns Inc., incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.1

Series 2011-A Indenture Supplement, dated July 15, 2011, among ComputerShare Trust Company of Canada, BNY trust Company of Canada, Deutsche Bank AG, Canada Branch and BMO Nesbitt Burns Inc., incorporated herein by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.2

Note Purchase Agreement, dated July 15, 2011, among GMF Canada Leasing Trust, FinanciaLinx Corporation, GM Financial Canada Leasing Ltd., Deutsche Bank AG, Canada Branch, BMO Nesbitt Burns Inc. and BNY Trust Company of Canada, incorporated herein by reference to Exhibit 99.3 to the Current Report on Form 8-K, filed on July 21, 2011.

Incorporated by Reference

10.3.3

First Omnibus Amendment to the 2011-A Borrower Note Supplement, the Note Purchase Agreement, the Servicing Agreement and the 2011-A Servicing Supplement, dated as of July 13, 2012, by and among Computershare Trust Company of Canada in its capacity as trustee of GMF Canada Leasing Trust, as Issuer, GM Financial Canada Leasing Ltd., as Borrower, FinanciaLinx Corporation, individually and in its capacity as Servicer, Deutsche Bank AG, Canada Branch, as an Administrative Agent, BMO Nesbitt Burns Inc., as an Administrative Agent, BNY Trust Company of Canada, as Indenture Trustee, the Purchasers identified on the signature pages thereto, AmeriCredit Financial Services, Inc., as Performance Guarantor, and the Agents identified on the signature pages thereto, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on July 19, 2012.

Incorporated by Reference

10.4

Note Purchase Agreement, dated as of January 10, 2012, among GM Financial Automobile Receivables Trust 2012- Incorporated by PP1, as Issuer, AFS SenSub Corp., as Seller, AmeriCredit Financial Services, Inc., as Servicer and as Custodian, Reference Azalea Asset Management, Inc., as Note Purchaser, and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K, filed on January 23, 2012.

10.4.1

Indenture, dated as of January 4, 2012, between GM Financial Automobile Receivables Trust 2012-PP1, as Issuer, and Wells Fargo Bank, National Association, as Trustee and Trust Collateral Agent, incorporated herein by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed on January 23, 2012. 83

Incorporated by Reference

INDEX TO EXHIBITS (CONTINUED)

10.4.2

Purchase Agreement, dated as of January 4, 2012, between AFS SenSub Corp., as Purchaser, and AmeriCredit Incorporated by Financial Services, Inc., as Seller, incorporated herein by reference to Exhibit 99.3 to the Current Report on Form Reference 8-K, filed on January 23, 2012.

10.4.3

Sale and Servicing Agreement, dated as of January 4, 2012, among GM Financial Automobile Receivables Trust 2012-PP1, as Issuer, AFS SenSub Corp., as Seller, AmeriCredit Financial Services, Inc., as Servicer, and Wells Fargo Bank, National Association, as Backup Servicer and Trust Collateral Agent, incorporated herein by reference to Exhibit 99.4 to the Current Report on Form 8-K, filed on January 23, 2012. Amended and Restated Three Year Revolving Credit Agreement, dated as of October 17, 2014, among General Motors Company, General Motors Financial Company, Inc., GM Europe Treasury Company AB, General Motors do Brasil Ltda., the other subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Banco do Brasil S.A., as administrative agent for the Brazilian lenders, and Citibank, N.A., as syndication agent incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on October 22, 2014.

Incorporated by Reference

10.6

Purchase and Sale Agreement, dated as of November 21, 2012, among Ally Financial Inc., General Motors Financial Company, Inc. and General Motors Company, incorporated herein by reference to Exhibit 10.10 to the Annual Report on Form 10-K, filed on February 15, 2013.

Incorporated by Reference

10.7

Share Transfer Agreement, dated as of November 21, 2012, between Ally Financial Inc. and General Motors Incorporated by Financial Company, Inc., incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, Reference filed on May 2, 2013.

10.8

Share and Interest Purchase Agreement, dated as of December 19, 2013, between General Motors Financial Company, Inc. and GM Europe Service GmbH, incorporated herein by reference to Exhibit 10.12 to the Annual Report on Form 10-K, filed on February 6, 2014.

Incorporated by Reference

10.9

Support Agreement, dated as of September 4, 2014, between General Motors Company and General Motors Financial Company, Inc., incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed on September 4, 2014.

Incorporated by Reference

10.10

Amended and Restated Five Year Revolving Credit Agreement, dated as of October 17, 2014, among General Motors Company, General Motors Financial Company, Inc., General Motors do Brasil Ltda., the other subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Banco do Brasil S.A., as administrative agent for the Brazilian lenders, and Citibank, N.A., as syndication agent, incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K, filed on October 22, 2014.

Incorporated by Reference

12.1

Computation of Ratio of Earnings to Fixed Charges

@

23.1

Consent of Independent Registered Public Accounting Firm

@

31.1

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

@

32.1

Officers' Certifications of Periodic Report pursuant to Section 906 of Sarbanes-Oxley Act of 2002

@

101.INS*

XBRL Instance Document

101.SCH*

XBRL Taxonomy Extension Schema Document

101.CAL*

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

XBRL Taxonomy Extension Label Linkbase Document

10.5

*

101.PRE* XBRL Taxonomy Presentation Linkbase Document Submitted electronically with this Report in accordance with the provisions of Regulation S-T. 84

Incorporated by Reference

Exhibit 12.1 GENERAL MOTORS FINANCIAL COMPANY, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (dollars in millions) Years Ended December 31, 2015

2014

2013

2012

2011

COMPUTATION OF EARNINGS: Income before income taxes and equity income

$

Fixed charges

721

$

1,609

815

$

1,402

883

$

724

744

$

319

622 275

$

2,330

$

2,217

$

1,607

$

1,063

$

897

$

1,600

$

1,393

$

717

$

315

$

271

$

275

COMPUTATION OF FIXED CHARGES: Fixed charges:(a) Interest expense(b) Implicit interest in rent

9 $

RATIO OF EARNINGS TO FIXED CHARGES

1,609 1.4X

9 $

1,402 1.6X

7 $

724 2.2X

4 $

319 3.3X

4

3.3X

_________________ (a) For purposes of such computation, the term "fixed charges" represents interest expense, including amortization of debt issuance costs, and a portion of rentals representative of an implicit interest factor for such rentals. (b) For 2015, 2014, 2013, 2012 and 2011 interest expense excludes $(16) million, $(33) million, $(4) million, $32 million and $67 million of purchase accounting adjustments.

Table of Contents Exhibit 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in Registration Statement No. 333-206678 on Form S-3 of our report dated February 3, 2016, relating to the consolidated financial statements of General Motors Financial Company, Inc. and subsidiaries appearing in this Annual Report on Form 10-K of General Motors Financial Company, Inc. for the year ended December 31, 2015. /s/Deloitte & Touche LLP Fort Worth, Texas February 3, 2016

CERTIFICATIONS Exhibit 31.1 I, Daniel E. Berce, certify that: (1) (2) (3) (4)

(5)

I have reviewed the Annual Report on Form 10-K of General Motors Financial Company, Inc. (the "Company") for the year ended December 31, 2015 (this "report"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Dated: February 3, 2016 /s/ Daniel E. Berce Daniel E. Berce President and Chief Executive Officer

I, Chris A. Choate, certify that: (1) (2) (3) (4)

(5)

I have reviewed the Annual Report on Form 10-K of General Motors Financial Company, Inc. (the "Company") for the year ended December 31, 2015 (this "report"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and we have: (i) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (iii) evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (iv) disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and to the Audit Committee of the Company's Board of Directors (or persons performing equivalent functions): (i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Dated: February 3, 2016 /s/ Chris A. Choate Chris A. Choate Executive Vice President and Chief Financial Officer

Exhibit 32.1 CERTIFICATION OF PERIODIC REPORT PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT OF 2002 I, Daniel E. Berce, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that: (1) (2)

The Annual Report on Form 10-K of the Company for the year ended December 31, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 3, 2016 /s/ Daniel E. Berce Daniel E. Berce President and Chief Executive Officer

CERTIFICATION OF PERIODIC REPORT PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT OF 2002 I, Chris A. Choate, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that: (1) (2)

The Annual Report on Form 10-K of the Company for the year ended December 31, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 3, 2016 /s/ Chris A. Choate Chris A. Choate Executive Vice President and Chief Financial Officer

Principales diferencias entre los criterios contables establecidos por las autoridades financieras mexicanas y los principios de contabilidad generalmente aceptados en los Estados Unidos de América aplicables para GMF Inc. Las Sociedades Financieras de Objeto Múltiple en México son reguladas en cuanto a sus criterios y principios contables por las siguientes disposiciones: a) b) c) d)

La Ley General de Organizaciones y Actividades Auxiliares del Crédito (LGOAAC) La Ley de Instituciones de Crédito Ley de Mercado de Valores Las Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes del mercado de valores (Circular Única de Emisoras) e) Las Disposiciones de carácter general aplicables a las instituciones de crédito (Circular Única de Bancos) f) Las Disposiciones de carácter general aplicables a los almacenes generales de depósito, casas de cambio, uniones de crédito y sociedades financieras de objeto múltiple reguladas (CUIFE) g) Normas de Información financiera emitidas por el CINIF supletoriamente Los Criterios Contables dictados por las regulaciones locales difieren de los principios de contabilidad generalmente aceptados en los Estados Unidos de América (“U.S. GAAP”) en diversos puntos y criterios, sin embargo consideramos que dentro de los que aplican para GMF Inc. los más importantes son los siguientes: I. II. III. IV. V. VI. VII. VIII. IX. X.

Reconocimiento de los efectos de inflación Reserva para riesgos crediticios Reconocimiento de pasivo contingente Costos por emisión de deuda Reconocimiento de ingresos Crédito mercantil Reconocimiento de posiciones fiscales inciertas Compensación basada en acciones Consolidación Valor razonable

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I. Reconocimiento de los efectos de inflación U.S. GAAP Los principios contables aplicables en los Estados Unidos establecen como principio básico el costo histórico. Los efectos de Inflación no se registran en los estados financieros excepto en casos cuando una entidad de reporte opere en un entorno económico altamente inflacionario. Bajo los principios de contabilidad generalmente aceptados en los Estados Unidos de América (U.S. GAAP), una economía es considerada como altamente inflacionaria cuando la tasa de inflación acumulada de los últimos tres años excede el 100%. Criterios contables establecidos para instituciones financieras en México Al 1ero de enero de 2008, las Compañías en México suspendieron el reconocimiento de los efectos de la inflación en los estados financieros debido a un entorno económico no inflacionario, sin embargo, los activos y pasivos no monetarios y el capital contable incluyen los efectos de re expresión reconocidos hasta el 31 de diciembre de 2007. A la fecha señalada en el párrafo anterior, las Compañías en México solo reconocen los efectos de inflación en los estados financieros cuando el entorno económico califica como inflacionario. Un entorno económico inflacionario ocurre cuando la inflación acumulada de los últimos tres años es igual o mayor al 26%. II. Reserva para Riesgos Crediticios U.S. GAAP La reserva para préstamos y arrendamientos se basa en la estimación de la probable pérdida inherente a los préstamos y cartera de la compañía tanto comerciales como de consumo. La evaluación y medida del deterioro de los préstamos y arrendamientos financieros ocurre a través de una de los dos siguientes metodologías establecidas: 1. Reservas específicas establecidas para préstamos y arrendamientos financieros específicos evaluados como en deterioro, o 2. Reservas para carteras las cuáles son establecidas para grupos grandes de préstamos y arrendamientos financieros con saldos de pequeños y homogéneos los cuales son evaluados colectivamente para su deterioro. Los préstamos y arrendamientos financieros que no son parte de un grupo grande de préstamos y arrendamientos financieros homogéneos son evaluados bajo la metodología de reserva específica. Los préstamos y arrendamientos financieros que nos son considerados en deterioro bajo la metodología de reserva específica así como bajo préstamos y arrendamientos financieros homogéneos están sujetos al cálculo para reserva a nivel de cartera.

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La reserva deberá ser establecida cuando es probable que los préstamos de la cartera se han deteriorado y el importe de la pérdida pueda ser razonablemente estimado. Una acumulación de pérdida es inicialmente reconocida en los estados financieros durante el período en el cual el evento de pérdida que dio lugar al deterioro ocurre y solamente por el monto del deterioro que ha ocurrido a la fecha del balance general. El deterioro a nivel de cartera puede ser basado en estadísticas históricas, tales como período de recuperación promedio y promedio de monto recuperado, junto con una tasa de interés efectiva como medio de medición del deterioro de dichos préstamos. El deterioro de un préstamo en especifico puede ser medido en base al valor actual de los flujos de efectivo futuros esperados descontados a la tasa de interés efectiva del préstamo. Como recurso práctico, un acreedor puede medir el deterioro en base al precio de mercado observable de un préstamo, o al valor razonable de la garantía si el préstamos es un préstamo que depende de una garantía. La descripción antes mencionada se basa en los principios de contabilidad generalmente aceptados en los Estados Unidos de América (U.S. GAAP) que se incluyen dentro de las normas ASC 310-10 “Cuentas por Cobrar- En general,” ASC 450-10-25 “Contingencias- En general” y ASC 942-10 “Servicios Financieros - Depósitos y Préstamos- En general,” entre otras. Criterios contables establecidos para instituciones financieras en México La reserva para pérdidas crediticias para SOFOMES E.N.R. Emisoras se realiza de acuerdo a los lineamientos establecidos por la Comisión para SOFOMES Reguladas la cual establece la metodología para la calificación de cartera crediticia para la constitución de reserva. La Comisión utiliza modelos de pérdida esperada los cuales contemplan el riesgo crediticio colectivo y datos de pérdida esperada de las instituciones de préstamos Mexicanas. La reserva para la cartera de préstamos comerciales y de consumo se determina de la siguiente manera: Reserva de cartera consumo - Las reservas de la cartera de consumo no revolvente, se determinan evaluando la probabilidad de incumplimiento, la severidad de la pérdida y la exposición al incumplimiento, crédito por crédito, considerando los datos históricos de dicha cartera. La probabilidad de incumplimiento se determina de acuerdo al número de atrasos que tenga el cliente; si tiene menos de cuatro mensualidades de atraso la probabilidad de incumplimiento se determinara con el promedio del porcentaje que representa el pago realizado respecto al monto exigible en los últimos cuatro periodos de facturación y si tiene 4 atrasos o más la probabilidad de incumplimiento será del 100%. Del mismo modo, la severidad de perdida será del 65% si el atraso del cliente es menor a 10 mensualidades y de 100% si el atraso es de 10 ó más mensualidades.

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Reserva de cartera comercial - La reserva de la cartera comercial se determina en base al artículo 110 de la Circular Única de Bancos (CUB). Al 2014, para la determinación de la calificación de cartera, se debe de considerar la probabilidad de incumplimiento, severidad de la pérdida y exposición al incumplimiento. Las reservas de la cartera comercial se determinan mediante la evaluación del puntaje crediticio total para créditos a cargo de Personas Morales y Personas Físicas con Actividad Empresarial, haciendo la separación de aquellos con ingresos netos o ventas netas anuales menores al equivalente en moneda nacional a 14 millones de Unidades de Inversión (UDIS) de conformidad con los anexos mencionados. De estos puntajes se obtiene la probabilidad de incumplimiento, en el caso de créditos que se encuentren en cartera vencida la probabilidad de incumplimiento será del 100% y la severidad de perdida será del 45%. El porcentaje requerido de la reserva para pérdidas en la cartera de préstamos se determina en función del grado de riesgo asignado. III.

Reconocimiento de Pasivo Contingente

U.S. GAAP Cuando existe una contingencia de perdida, la evaluación debe ser realizada en cuanto a la probabilidad de que el evento o eventos futuros ocurran confirmando la pérdida. Se establecen 3 categorías de probabilidad con respecto a la ocurrencia de una pérdida: · · ·

Remota: La posibilidad de que el evento o eventos futuros ocurran es poco probable. Razonablemente posible: La posibilidad de que el evento o eventos futuros ocurran es más que remota pero menos que probable. Probable: El evento o los eventos futuros son probable que ocurran.

El registro de la pérdida por contingencia es registrada solamente cuando la probabilidad de una confirmación de un evento es designada como “Probable” y el monto de la pérdida puede ser razonablemente estimado. La descripción antes mencionada se basa en los principios contables US GAAP FASB ASC 450-10-25 “Contingencias- En general”. Criterios contables establecidos para instituciones financieras en México El reconocimiento de un pasivo contingente se efectúa en base al Boletín C-9 de Pasivos, Provisiones, Activos y Pasivos Contingentes, en el cual se señala que se debe considerar como una obligación presente si el suceso ocurrido en el pasado ha producido o no el nacimiento de dicha obligación y en caso de duda de la ocurrencia o no ocurrencia de ciertos sucesos, la entidad procederá a determinar la existencia de la obligación presente, teniendo en cuenta toda la evidencia posible, entre los que se incluirá la opinión de expertos y, en base a esa evidencia, lo siguiente:

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· ·

IV.

Si la obligación es probable se reconocerá el pasivo siempre que la probabilidad de la existencia de la obligación a la fecha del balance sea mayor que la probabilidad de la inexistencia y se pueda obtener un cálculo fiable del monto de la obligación, Se revelará la obligación si la obligación presente es posible, esto siempre y cuando la obligación presente sea menor que la probabilidad que no exista y no habrá necesidad de revelación en el caso de que sea remota la probabilidad de salida de recursos. Costos por Emisión de Deuda

U.S. GAAP La norma ASU 2015-03 requiere que los costos por emisión de deuda asociados con deuda no revolvente sean presentados como una reducción al saldo principal de la deuda, con aplicación retrospectiva. Criterios contables establecidos para instituciones financieras en México Los costos por emisión de deuda son presentados de acuerdo al Anexo 33 de la CUB Criterio A-2 Aplicación de Normas Específicas que menciona que en el caso de pagos anticipados se aplicará la Norma de Información Financiera C-5 Pagos Anticipados y se reconocerá como un pago anticipado en el rubro de Otros Activos. V.

Reconocimiento de Ingresos U.S. GAAP El ingreso por cargo financiero relacionado a cuentas por cobrar de financiamiento es reconocido utilizando el método de interés efectivo. Las comisiones y cargos recibidos y los costos directos de originación de préstamos son generalmente diferidos y amortizados durante el término de las cuentas por cobrar de financiamiento relacionadas utilizando el método de interés efectivo y son eliminados del balance general consolidado cuando las cuentas por cobrar de financiamiento relacionadas son vendidas, canceladas o liquidadas. La provisión de ingresos por cargos financieros es suspendida en las cuentas que tienen 60 días o más de morosidad, cuentas en bancarrota y cuentas adjudicadas. Los pagos recibidos para préstamos en suspenso son aplicados primero a cualquier recargo que se deba, luego se aplican a cualquier interés pendiente de pago, y finalmente, cualquier monto restante recibido es aplicado al saldo principal. La provisión de intereses continúa una vez que una cuenta ha recibido pagos que regresan su estatus de morosidad a menos de 60 días. El ingreso por cargo financiero relacionado a cuentas por cobrar de financiamiento comercial es reconocido utilizando el método de acumulación. La acumulación de ingreso por cargos financieros es generalmente suspendida en las cuentas que tienen 90 días o más de morosidad, una vez que se recibe una notificación de bancarrota por parte del acreditado, o cuando existe duda razonable sobre la recuperación total del saldo principal e intereses acordados en el contrato. Los pagos recibidos para préstamos en mora son aplicados primero al saldo principal. La provisión de intereses continua una vez que una cuenta ha recibido pagos que la clasifican al corriente y que el cobro del saldo

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principal e intereses acordados en el contrato es razonable (incluyendo montos previamente cancelados) o, cuando se trata de reestructuraciones de deuda en problemas, cuando el pago es razonablemente asegurado con base a los términos modificados del préstamo. Los ingresos por arrendamientos operativos en vehículos arrendados son reconocidos por medio del método de línea recta durante el periodo del arrendamiento. Los cargos o costos netos diferidos por originación son amortizados en línea recta durante el periodo del contrato de arrendamiento. Criterios contables establecidos para instituciones financieras en México Se deberá suspender la acumulación de los intereses devengados de las operaciones crediticias, en el momento en que el saldo insoluto del crédito sea considerado como vencido, entendiéndose como vencido lo siguiente: 1. Se tenga conocimiento de que el acreditado es declarado en concurso mercantil, conforme a la Ley de Concursos Mercantiles, o 2. Sus amortizaciones no hayan sido liquidadas en su totalidad en los términos pactados originalmente, considerando al efecto lo siguiente: a) Si los adeudos consisten en créditos con pago único de principal e intereses al vencimiento y presentan 30 o más días naturales de vencidos; b) Si los adeudos se refieren a créditos con pago único de principal al vencimiento y con pagos periódicos de intereses y los respectivos pagos de los intereses presentan 90 ó más días naturales de vencimiento, y el saldo principal presenta 30 ó más días naturales de vencimiento; c) Si los adeudos consisten en créditos con pagos periódicos parciales de principal e intereses, incluyendo los préstamos hipotecarios y presentan 90 ó más días naturales de vencimiento; d) Si los adeudos consisten en créditos revolventes y presentan dos periodos mensuales de facturación vencidos o, en caso de que el periodo de facturación sea distinto al mensual, el correspondiente a 60 ó más días naturales de vencidos, y e) Los documentos de cobro inmediato a que se refiere el criterio B-1 “Fondos Disponibles”, serán reportados como cartera vencida al momento en el cual se presente dicho evento. 3. Cualquier amortización que no haya sido liquidada en su totalidad en los términos pactados originalmente y presenten 90 ó más días de vencimiento y los créditos otorgados a personas físicas destinados a la remodelación o mejoramiento de la vivienda sin propósito de especulación comercial que estén respaldados por el ahorro de la subcuenta de vivienda del acreditado. (No aplica a GM Financial de México SA de CV SOFOM E.R., sin embargo es parte de la redacción de la normatividad aplicable a otras entidades SOFOMs). Asimismo, se deberá suspender la amortización en resultados del ejercicio de los ingresos financieros por devengar, así como del importe correspondiente a la opción de compra de los créditos por operaciones de arrendamiento capitalizable, en el momento en que el saldo insoluto del crédito sea considerado como vencido..

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A los créditos que contractualmente capitalizan intereses al monto del adeudo, les será aplicable la suspensión de acumulación de intereses establecida en el párrafo anterior. En tanto el crédito se mantenga en cartera vencida, el control de los intereses o ingresos financieros devengados se llevará en cuentas de orden. En caso de que dichos intereses o ingresos financieros vencidos sean cobrados, se reconocerán directamente en los resultados del ejercicio en el rubro de ingresos por intereses, cancelando en el caso de arrendamiento capitalizable o en operaciones de factoraje financiero el crédito diferido correspondiente.

VI.

Crédito Mercantil

U.S. GAAP No se permite cancelar los deterioros reconocidos de crédito mercantil. Criterios contables establecidos para instituciones financieras en México Bajo ciertas circunstancias es permitido cancelar deterioros reconocidos de crédito mercantil. VII.

Reconocimiento de posiciones fiscales inciertas

U.S. GAAP Se contabilizan las posiciones fiscales inciertas con base a un proceso de dos pasos en donde: (1) se determina si es más probable que no que las posiciones fiscales sean sostenidas en base a los méritos técnicos de la posición; y (2) para aquellas posiciones fiscales que cumplen con el probable reconocimiento, se reconoce el monto más alto de beneficio fiscal que sea mayor al 50% de probabilidad de que se materialice basado en la última negociación con la autoridad tributaria correspondiente. Se reconocen intereses y multas sobre posiciones fiscales inciertas en la cuenta de impuesto sobre la renta. Criterios contables establecidos para instituciones financieras en México Se aplicará la metodología indicada en el punto III. Reconocimiento de Pasivo Contingente para su reconocimiento contable.

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VIII. Compensación basada en acciones U.S. GAAP Los premios de compensación en acciones emitidas por una subsidiaria a empleados de la subsidiaria que son liquidados del capital de la compañía matriz deben ser clasificados como premios de capital en los estados financieros independientes de la subsidiaria. De la misma forma, la subsidiaria registra el gasto por compensación por concepto de los premios de compensación en acciones de la compañía matriz en base al valor razonable de los premios sobre el período de devengamiento aplicable al premio. Criterios contables establecidos para instituciones financieras en México Los premios de compensación en acciones otorgados por una subsidiaria a empleados de la subsidiaria y liquidados en acciones de la compañía matriz son clasificados como premios pasivos en los estados financieros independientes de la subsidiaria. IX. Consolidación U.S. GAAP Bajo los principios de contabilidad generalmente aceptados en los Estados Unidos de América (“U.S. GAAP”), existen dos modelos diferentes para determinar si la consolidación es apropiada. Si una entidad de reporte cuenta con participación en otra entidad que satisface la definición de una Entidad de Participación Variable (VIE), el modelo de una VIE debe ser aplicado. Bajo este modelo, la consolidación está basada en poder y economía - esto es, qué accionista tiene (1) el poder de dirigir las actividades de la VIE que más afecten de manera considerable el desempeño económico de la VIE y (2) la obligación de absorber las pérdidas o el derecho a recibir beneficios de la VIE que pudieran ser potencialmente considerables para la VIE. Sin embargo, si una entidad de reporte cuenta con participación en otra entidad que no es considerada como una Entidad de Participación Variable (VIE) o que no se encuentra dentro del ámbito del modelo de una VIE, el modelo de participaciones con derecho de voto deberá aplicarse. Bajo este modelo, la consolidación está basada en si la entidad de reporte mantiene una participación financiera de control en la entidad. Bajo el modelo de participaciones con derecho de voto, no se le requiere a la entidad tomar en cuenta potenciales derechos de voto al determinar si hay o no control; más bien, dichos potenciales derechos de voto pudieran indicar la existencia de control. El modelo de las VIE no aborda específicamente el impacto de los potenciales derechos de voto en la determinación de qué parte cuenta con el poder para dirigir las actividades más importantes de una entidad.

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Criterios contables establecidos para instituciones financieras en México La consolidación bajo los estándares mexicanos se basa en el concepto de control. Los tres elementos de control son los siguientes: · · ·

Poder sobre la sociedad participada Exposición, o derecho, a ganancias variables de la participación en la sociedad participada; y La habilidad de utilizar poder sobre la sociedad participada para tener un efecto sobre el monto de las ganancias del inversionista.

Un inversionista debe poseer los tres elementos para concluir que controla a una sociedad participada. El modelo de consolidación aplica a todas las entidades. Una entidad debe considerar la existencia y el efecto de potenciales derechos de voto que son actualmente ejecutables al determinar si existe o no control. X. Valor Razonable U.S. GAAP Bajo los principios de contabilidad generalmente aceptados en los Estados Unidos de América (“U.S. GAAP”), una de las características que definen al valor razonable es que se asume que es el precio de salida. El precio de salida se define como el precio que será recibido o pagado por la entidad de reporte "en una operación ordenada entre participantes de mercado para vender un activo o transferir un pasivo a la fecha de la medición." El riesgo crediticio de la contraparte y el riesgo crediticio de la propia entidad son considerados en las mediciones de valor razonable de ciertos instrumentos financieros. Criterios contables establecidos para instituciones financieras en México El valor razonable se define como el monto que un participante de mercado interesado e informado estaría dispuesto a pagar por la compra o venta de un activo o el monto que estaría dispuesto a asumir o liquidar un pasivo en un mercado libre. Esta definición puede considerar ya sea un precio de entrada o salida. Se les requiere a las entidades usar las mediciones de valor razonable proporcionadas por un proveedor de precios autorizado por la Comisión. Dichas mediciones generalmente no toman en cuenta el riesgo crediticio de la contraparte o de la propia entidad.

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bolsa mexicana de valores, sab de cv - Hoteles City Express
PASIVOS RELACIONADOS CON ACTIVOS MANTENIDOS PARA SU VENTA CIRCULANTES. 21060080. 125,802. 77,362 ..... ESTADOS DE FLUJOS

Bolsa Mexicana de Valores SAB de CV Dirección General de - BMV
Jan 1, 2016 - Revolvente, autorizado por la Comisión Nacional Bancaria y de Valores mediante oficio ... venta o constit

Bolsa de valores - Monografias.com
Luego se profundizará en lo que es y como funciona una Bolsa de Valores, las principales del mundo y sus respectivos In

Bolsa de Valores de Guayaquil
MASVALORES CASA DE VALORES S.A. CAVAMASA, 5,875,230.97. SILVERCROSS S.A. CASA DE VALORES SCCV, 3,010,235.62. ACCIONES Y

SDI16 Mexico at Bolsa Mexicana de Valores, Mexico City - AllEvents.in
Sep 22, 2016 - SDI is delighted to announce the launch of our SDI Conference in Latin America in Mexico City at the Mexi

Memoria Anual - Bolsa de Valores de Lima
Feb 26, 2015 - dedica principalmente a la exploración, extracción, concentración, fundición y comercialización de m

contrato de intermediacion - Valores Casa de Bolsa
Convienen en celebrar el presente contrato por una parte Valores Casa de Bolsa S.A. con sede en la ciudad de Asunción,

prospecto - Bolsa de Valores de Caracas
sus transacciones y podrá adquirir toda clase de bienes muebles o inmuebles, enajenarlos, gravarlos, venderlos ... El 3