Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Of Financial Instruments [Abstract]

Estimated fair values, carrying values and various methods and assumptions used in valuing our financial instruments are set forth below (in millions):



			June 30, 2015				December 31, 2014
		Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets:
Cash and cash equivalents	^(a)	1	$	2,070	$	2,070	$	2,974	$	2,974
Finance receivables, net	^(b)	3	$	34,385	$	34,749	$	33,000	$	33,573
Restricted cash	^(a)	1	$	1,856	$	1,856	$	2,071	$	2,071
Financial liabilities:
Secured debt
North America	^(c)	2	$	17,693	$	17,734	$	15,454	$	15,497
International	^(d)	2	$	4,791	$	4,795	$	5,690	$	5,694
International	^(e)	3	$	4,133	$	4,099	$	4,070	$	4,037
Unsecured debt
North America	^(f)	2	$	12,862	$	13,070	$	7,846	$	8,092
International	^(g)	2	$	3,667	$	3,665	$	3,496	$	3,507
International	^(e)	3	$	1,184	$	1,191	$	875	$	880

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(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-issued secured debt is based on quoted market prices of identical instruments, 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 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 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 in the International Segment has terms of one year or less; therefore, par value is considered to be a reasonable estimate of fair value.