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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Impaired Finance Receivables — TDRs
The following table summarizes the outstanding recorded investment for consumer finance receivables that are considered to be
TDRs and the related allowance (dollars in millions):
December 31, 2014 December 31, 2013
Outstanding recorded investment ................................................... $ 1,234 $ 767
Less: allowance for loan losses ..................................................... (172) (103)
Outstanding recorded investment, net of allowance ..................................... $ 1,062 $ 664
Unpaid principal balance .......................................................... $ 1,255 $ 779
Commercial Finance Receivables
GM Financial’s commercial finance receivables consist of dealer financings, primarily for inventory purchases. A proprietary
model is used to assign a risk rating to each dealer. A credit review of each dealer is performed at least annually and, if necessary, the
dealer’s risk rating is adjusted on the basis of the review. At December 31, 2014 and 2013 the commercial finance receivables on non-
accrual status were insignificant. The following table summarizes the credit risk profile by dealer grouping of the commercial finance
receivables (dollars in millions):
December 31, 2014 December 31, 2013
Group I — Dealers with superior financial metrics ..................................... $ 1,050 $ 549
Group II — Dealers with strong financial metrics ...................................... 2,022 1,460
Group III — Dealers with fair financial metrics ........................................ 2,599 1,982
Group IV — Dealers with weak financial metrics ...................................... 1,173 1,462
Group V — Dealers warranting special mention due to potential weaknesses ................ 524 385
Group VI — Dealers with loans classified as substandard, doubtful or impaired .............. 238 212
$ 7,606 $ 6,050
The credit lines for Group VI dealers are typically suspended and no further funding is extended to these dealers.
Note 6. Inventories
The following table summarizes the components of Inventories (dollars in millions):
December 31, 2014 December 31, 2013
Productive material, supplies and work in process ...................................... $ 5,380 $ 5,872
Finished product, including service parts ............................................. 8,262 8,167
Total inventories ................................................................ $ 13,642 $ 14,039
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