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Equity in Net Assets of Nonconsolidated Affiliates
 12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Equity in Net Assets of Nonconsolidated Affiliates Equity in Net Assets of Nonconsolidated Affiliates
We use the equity method to account for our equity interest in joint ventures. Revenue and expenses of our joint ventures are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as equity income (loss).
The following tables present certain aggregated financial data of our joint ventures:
Summarized Balance Sheet DataDecember 31, 2024December 31, 2023
Finance receivables, net $8,852 $18,142 
Total assets$9,966 $19,629 
Debt$5,421 $13,692 
Total liabilities$6,495 $15,751 
Years Ended December 31,
Summarized Operating Data202420232022
Finance charge income$928 $1,373 $1,636 
Provision for loan losses$226 $182 $172 
Income before income taxes$246 $525 $661 
Net income$185 $393 $494 
The following table summarizes our direct ownership interests in China joint ventures:
Joint VenturesDecember 31, 2024December 31, 2023
SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC)
35 %35 %
SAIC-GMF Leasing Co. Ltd.35 %35 %
In 2024, 2023 and 2022, SAIC-GMAC Automotive Finance Company Limited paid $491 million, $273 million and $342 million of cash dividends, of which our share was $172 million, $96 million and $120 million. At December 31, 2024 and 2023, we had undistributed earnings of $729 million and $837 million related to our nonconsolidated affiliates.
Impairment Charges
In response to market challenges and competitive conditions GM and its JV partners are restructuring their operations in China. In addition, we continue to face intense price competition from other auto lenders. Accordingly, we evaluated our investment in SAIC-GMAC for potential impairment, and we determined the carrying value of our investment exceeded its fair value. We concluded that the loss in value was other-than-temporary and recorded an impairment charge of $320 million during 2024. After this charge, the carrying value of our investment represents its fair value.
Fair Value Measurement
The fair value of our investment in SAIC-GMAC was determined using the income approach based on the best available information, primarily discounted cash flow projections. We make significant assumptions and estimates about the extent and timing of future cash flows, growth rates, and discount rate that represent unobservable, Level 3, inputs into our valuation methodology.
The investment balance for SAIC-GMAC that was tested for impairment was $1.5 billion. Our cash flow projections were based on GM's industry sales volume and market share forecast. Other key assumptions include a 13.0% cost of equity and a 3.5% long-term growth rate. The cost of equity is based on the capital asset pricing model, which includes risk free rates and equity risk premiums. In addition, we estimated minimum operating cash needs that incorporate specific business, economic and regulatory factors giving rise to varying cash needs.
Our fair value estimate assumes the achievement of the future financial results contemplated in our forecasted cash flows which is subject to significant uncertainties. There is no assurance that anticipated financial results will be achieved.