v3.20.4
GM Financial Receivables and Transactions
 12 Months Ended
Dec. 31, 2020
GM Financial  
Finance Receivables [Line Items]  
GM Financial Receivables and Transactions GM Financial Receivables and Transactions
December 31, 2020December 31, 2019
RetailCommercial(a)TotalRetailCommercial(a)Total
GM Financial receivables$51,288 $8,682 $59,970 $42,229 $11,671 $53,900 
Less: allowance for loan losses(1,915)(63)(1,978)(866)(78)(944)
GM Financial receivables, net$49,373 $8,619 $57,992 $41,363 $11,593 $52,956 
Fair value of GM Financial receivables utilizing Level 2 inputs$8,619 $11,593 
Fair value of GM Financial receivables utilizing Level 3 inputs$51,645 $41,973 
__________
(a)Net of dealer cash management balances of $1.4 billion and $1.2 billion at December 31, 2020 and 2019. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on their floorplan line by making principal payments to GM Financial in advance.
Years Ended December 31,
202020192018
Allowance for loan losses at beginning of period$944 $911 $942 
Impact of adoption ASU 2016-13 (Note 2)801 — — 
Provision for loan losses881 726 642 
Charge-offs(1,169)(1,246)(1,199)
Recoveries542 551 536 
Effect of foreign currency(21)2 (10)
Allowance for loan losses at end of period$1,978 $944 $911 

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at December 31, 2020 is as follows:

Year of OriginationDecember 31, 2020December 31, 2019
20202019201820172016PriorTotalPercentTotalPercent
Prime – FICO score 680 and greater$18,685 $7,033 $4,491 $1,917 $555 $119 $32,800 64.0 %$25,400 60.1 %
Near-prime – FICO score 620 to 6793,695 2,097 1,232 603 225 83 7,935 15.4 %6,862 16.3 %
Sub-prime – FICO score less than 6203,803 2,920 1,740 1,173 610 307 10,553 20.6 %9,967 23.6 %
Retail finance receivables, net of fees$26,183 $12,050 $7,463 $3,693 $1,390 $509 $51,288 100.0 %$42,229 100.0 %
GM Financial reviews the ongoing credit quality of 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 the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $714 million and $875 million at December 31, 2020 and 2019. The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2020:

Year of OriginationDecember 31, 2020December 31, 2019
20202019201820172016PriorTotalPercentTotal(a)Percent
0-to-30 days$25,894 $11,591 $7,131 $3,454 $1,249 $421 $49,740 97.0 %
31-to-60 days210 325 235 170 102 61 1,103 2.1 %$1,354 3.2 %
Greater-than-60 days72 123 90 64 37 26 412 0.8 %542 1.3 %
Finance receivables more than 30 days delinquent282 448 325 234 139 87 1,515 2.9 %1,896 4.5 %
In repossession7 11 7 5 2 1 33 0.1 %44 0.1 %
Finance receivables more than 30 days delinquent or in repossession289 459 332 239 141 88 1,548 3.0 %$1,940 4.6 %
Retail finance receivables, net of fees$26,183 $12,050 $7,463 $3,693 $1,390 $509 $51,288 100.0 %
__________
(a)Represents the contractual amounts of delinquent retail finance receivables, which is not significantly different than the outstanding amortized cost for such receivables.

The outstanding amortized cost of retail finance receivables that are considered TDRs was $2.2 billion at December 31, 2020, including $301 million in nonaccrual loans.

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. The commercial finance receivables on nonaccrual status were insignificant at December 31, 2020.

Prior to January 1, 2020, GM Financial estimated the allowance for loan losses based on an analysis of the experience of comparable commercial lenders. Effective January 1, 2020, GM Financial establishes the allowance for loan losses based on historical loss experience for the consolidated portfolio, in addition to forecast for industry vehicle sales. The updated risk rating categories are as follows:

RatingDescription
IPerforming accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
IIPerforming accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
IIINon-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.
IVNon-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.
Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at December 31, 2020:

Year of Origination(a)December 31, 2020
Revolving20202019201820172016PriorTotalPercent
I$6,968 $510 $159 $63 $95 $43 $19 $7,857 90.5 %
II491 2 18 2 3 18 34 568 6.5 %
III203 — 8 29 2 11 — 253 2.9 %
IV— — — — — — 4 4 0.1 %
Commercial finance receivables, net of fees$7,662 $512 $185 $94 $100 $72 $57 $8,682 100.0 %
_________
(a)Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination.

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are presented in GM Financial's consolidated balance sheets and statements of income.
December 31, 2020December 31, 2019
Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers$398 $478 
Subvention receivable(b)$642 $676 
Commercial loan funding payable$23 $74 
Years Ended December 31,
202020192018
Consolidated Statements of Income
Interest subvention earned on finance receivables$679 $588 $554 
Leased vehicle subvention earned$3,042 $3,273 $3,274 
__________
(a)All balance sheet amounts are eliminated upon consolidation.
(b)Our Automotive segments made cash payments to GM Financial for subvention of $3.9 billion, $4.1 billion, and $3.8 billion in the years ended December 31, 2020, 2019 and 2018.

GM Financial's Board of Directors declared and paid dividends of $800 million, $400 million and $375 million on its common stock in the years ended December 31, 2020, 2019 and 2018.