GM Financial, General Motors Company's financing segment, has special purpose entities that are consolidated in GM's financial statements. GM Financial transfers receivables and lease-related assets to these SPES, the SPEs issue notes, and use the cash collected from their transferred assets to pay principal and interest on the notes. Creditors of the SPES have no recourse to the assets of GM Financial or General Motors. GM Financial has no obligation to provide additional financing to these SPEs. At December 31, 2013, the assets and liabilities related to GM Financial's consolidated SPEs are as follows (dollars in millions):

Required

a. Describe the process GM used in deciding to consolidate GM Financial’s SPEs. What conditions must exist to lead to the conclusion that the SPEs should be consolidated? Why do you think GM decided that these SPEs should be consolidated?

b. How does consolidation affect GM’s December 31, 2013, balance sheet accounts?

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Restricted cash Securitized assets Notes payable $ 1,523 23,584 (19,448)