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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2015
Fair Value Of Financial Instruments [Abstract]  
Estimated fair values
Estimated fair values, carrying values and various methods and assumptions used in valuing our financial instruments are set forth below (in millions):
 
 
 
 
March 31, 2015
 
December 31, 2014
 
 
 Level
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
(a) 
1
 
$
2,121

 
$
2,121

 
$
2,974

 
$
2,974

Finance receivables, net
(b) 
3
 
$
32,470

 
$
32,942

 
$
33,000

 
$
33,573

Restricted cash
(a) 
1
 
$
1,849

 
$
1,849

 
$
2,071

 
$
2,071

Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Secured debt
 
 
 
 
 
 
 
 
 
 
North America
(c) 
2
 
$
15,991

 
$
16,045

 
$
15,454

 
$
15,497

International
(d) 
2
 
$
4,417

 
$
4,420

 
$
5,690

 
$
5,694

International
(e) 
3
 
$
4,285

 
$
4,252

 
$
4,070

 
$
4,037

Unsecured debt
 
 
 
 
 
 
 
 
 
 
North America
(f) 
2
 
$
10,060

 
$
10,386

 
$
7,846

 
$
8,092

International
(g) 
2
 
$
3,386

 
$
3,402

 
$
3,496

 
$
3,507

International
(e) 
3
 
$
986

 
$
984

 
$
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 of the consumer finance receivables in the North America Segment is estimated based upon forecasted cash flows on the receivables discounted using a pre-tax weighted-average cost of capital. The fair value of the consumer finance receivables in the International Segment is estimated based on forecasted cash flows on the receivables discounted using current origination rates for similar type loans. Commercial finance receivables generally have variable interest rates and maturities of one year or less. Therefore, the carrying value is considered to be a reasonable estimate of fair value.
(c)
Secured debt in the North America Segment is comprised of revolving credit facilities, publicly-issued secured debt, and privately-issued secured debt. For 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 and privately issued secured debt is based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated using quoted market prices of similar securities.
(d)
The level 2 secured debt in the International Segment has terms of one year or less, or has been priced within the last six months; therefore, par value is considered to be a reasonable estimate of fair value.
(e)
The fair value of level 3 secured debt and unsecured debt in the International Segment is estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates.
(f)
The fair value of unsecured debt in the North America Segment is based on quoted market prices in thinly-traded markets.
(g)
The fair value of senior notes is based on quoted market prices in thinly-traded markets. The fair value of other unsecured debt in the International Segment has terms of one year or less; therefore, par value is considered to be a reasonable estimate of fair value.