General Motors 2010 Annual Report Download - page 183

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 17. Variable Interest Entities
Consolidated VIEs
Automotive
VIEs that we do not control through a majority voting interest that are consolidated because we are or Old GM was the primary
beneficiary primarily include: (1) previously divested suppliers for which we provide or Old GM provided guarantees or financial
support; (2) a program announced by the UST in March 2009 to provide financial assistance to automotive suppliers (Receivables
Program); (3) vehicle sales and marketing joint ventures that manufacture, market and sell vehicles in certain markets; (4) leasing
SPEs which held real estate assets and related liabilities for which Old GM provided residual guarantees; and (5) an entity which
manages certain private equity investments held by our and Old GM’s defined benefit plans, along with seven associated general
partner entities.
Certain creditors and beneficial interest holders of these VIEs have or had limited, insignificant recourse to our general credit or
Old GM’s general credit. In the event that creditors or beneficial interest holders were to have such recourse to our or Old GM’s
general credit, we or Old GM could be held liable for certain of the VIEs’ obligations. GM Daewoo Auto & Technology Co. (GM
Daewoo), a non-wholly owned consolidated subsidiary that we control through a majority voting interest, is also a VIE because in the
future it may require additional subordinated financial support. The creditors of GM Daewoo’s short-term debt of $70 million,
preferred shares classified as long-term debt of $835 million and current derivative liabilities of $111 million at December 31, 2010
do not have recourse to our general credit. In February 2011 we provided a guarantee to Korean Development Bank, a minority
shareholder in GM Daewoo, to redeem GM Daewoo’s preferred shares should GM Daewoo not have sufficient legally distributable
earnings.
The following table summarizes the carrying amount of consolidated VIEs that we do not control through a majority voting interest
or are part of GM Financial’s securitization transactions (dollars in millions):
Successor
December 31,
2010 (a)(b)
December 31,
2009 (a)
Assets
Cash and cash equivalents ................................................................ $145 $ 15
Restricted cash and marketable securities .................................................... 1 191
Accounts and notes receivable, net ......................................................... 121 14
Inventories ............................................................................ 108 15
Other current assets ..................................................................... 14 —
Property, net .......................................................................... 44 5
Other assets ........................................................................... 48 33
Total assets ........................................................................... $481 $273
Liabilities
Accounts payable (principally trade) ........................................................ $226 $ 17
Short-term borrowings and current portion of long-term debt .................................... 5 205
Accrued liabilities ...................................................................... 34 10
Other liabilities ........................................................................ 42 23
Total liabilities ......................................................................... $307 $255
(a) Amounts exclude GM Daewoo.
(b) At December 31, 2010 GM Egypt had Total assets of $401 million and Total liabilities of $277 million.
General Motors Company 2010 Annual Report 181