Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts:

	March 31, 2022						December 31, 2021
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Derivatives designated as hedges
Fair value hedges
Interest rate swaps	$	19,310	$	11	$	345	$	15,058	$	74	$	88
Foreign currency swaps	—		—		—		682		—		59
Cash flow hedges
Interest rate swaps	709		17		4		611		12		4
Foreign currency swaps	7,945		79		221		7,419		85		201
Derivatives not designated as hedges
Interest rate contracts	108,709		1,245		797		110,053		846		339
Foreign currency contracts	—		—		—		148		—		—
Total	$	136,674	$	1,353	$	1,368	$	133,971	$	1,017	$	691

 The gross amounts of the fair value of our derivative instruments that are classified as assets or liabilities are included in other assets or other liabilities, respectively. Amounts accrued for interest payments in a net receivable position are included in other assets. Amounts accrued for interest payments in a net payable position are included in other liabilities. All our derivatives are categorized within Level 2 of the fair value hierarchy. 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.

We primarily enter into derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At March 31, 2022 and December 31, 2021, the fair value of derivative instruments that are classified as assets or liabilities available for offset was $778 million and $505 million. At March 31, 2022 and December 31, 2021, we held $323 million and $376 million of collateral from counterparties that was available for netting against our asset positions. At March 31, 2022 and December 31, 2021, we posted $432 million and $45 million of collateral to counterparties that was available for netting against our liability positions.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

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

	Carrying Amount of Hedged Items				Cumulative Amount of Fair Value Hedging Adjustments(a)
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Unsecured debt	$	26,157	$	24,964	$	153	$	(226)

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(a)Includes $196 million and $246 million of unamortized gains remaining on hedged items for which hedge accounting has been discontinued at March 31, 2022 and December 31, 2021.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Income

The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income:

	Three Months Ended March 31,
	2022				2021
	Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)
Fair value hedges
Hedged items - interest rate swaps	$	376	$	—	$	352	$	—
Interest rate swaps	(340)		—		(335)		—
Hedged items - foreign currency swaps(c)	—		23		—		77
Foreign currency swaps	(2)		(24)		(5)		(76)
Cash flow hedges
Interest rate swaps	2		—		(5)		—
Hedged items - foreign currency swaps(c)	—		160		—		190
Foreign currency swaps	(38)		(160)		(30)		(190)
Derivatives not designated as hedges
Interest rate contracts	—		—		20		—
Total income (losses) recognized	$	(2)	$	—	$	(3)	$	1

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(a)Total interest expense was $577 million and $650 million for the three months ended March 31, 2022 and 2021.

(b)Total operating expenses were $372 million and $411 million for the three months ended March 31, 2022 and 2021.

(c)Transaction activity recorded in operating expenses related to foreign currency-denominated loans.

The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss):

	Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss)
	Three Months Ended March 31,
	2022		2021
Fair value hedges
Foreign currency swaps	$	(2)	$	(3)
Cash flow hedges
Interest rate swaps	4		5
Foreign currency swaps	(57)		(125)
Total	$	(55)	$	(123)

	(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income
	Three Months Ended March 31,
	2022		2021
Fair value hedges
Foreign currency swaps	$	2	$	3
Cash flow hedges
Interest rate swaps	(1)		3
Foreign currency swaps	149		166
Total	$	150	$	172