General Motors 2010 Annual Report Download - page 189

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes activity for policy, product warranty, recall campaigns and certified used vehicle warranty
liabilities (dollars in millions):
Successor Predecessor
Year Ended
December 31,
2010
July 10, 2009
Through
December 31,
2009
January 1, 2009
Through
July 9, 2009
Year Ended
December 31,
2008
Beginning balance ............................................. $7,030 $ 7,193 $ 8,491 $ 9,615
Warranties issued and assumed in period ........................... 3,204 1,388 1,069 4,277
Payments .................................................... (3,662) (1,797) (1,851) (5,068)
Adjustments to pre-existing warranties ............................. 210 66 (153) 294
Effect of foreign currency translation .............................. 7 180 63 (627)
Liability adjustment, net due to the deconsolidation of Saab (a) ......... — — (77) —
Ending balance ............................................... 6,789 7,030 7,542 8,491
Effect of application of fresh-start reporting ......................... — — (349) —
Ending balance including effect of application of fresh-start reporting .... $6,789 $ 7,030 $ 7,193 $ 8,491
(a) In August 2009 Saab met the criteria to be classified as held for sale and, as a result, Saab’s warranty liability was classified as
held for sale at December 31, 2009.
Note 19. Short-Term and Long-Term Debt
Automotive
The following table summarizes the components of automotive short-term debt and current portion of long-term debt (dollars in
millions):
Successor
December 31, 2010 December 31, 2009
UST Loans .................................................................... $ — $ 5,712
Canadian Loan ................................................................. — 1,233
GM Daewoo Revolving Credit Facility .............................................. — 1,179
Short-term debt — third parties .................................................... 80 296
Short-term debt— related parties (a) ................................................ 1,043 1,077
Current portion of long-term debt ................................................... 493 724
Total automotive short-term debt and current portion of long-term debt ..................... $ 1,616 $ 10,221
Available under short-term line of credit agreements (b) ................................. $ 445 $ 220
Interest rate range on outstanding short-term debt (c) ................................... 0.0–16.7% 0.0 –19.0%
Weighted-average interest rate on outstanding short-term debt (d) ......................... 5.7% 6.5%
(a) Primarily dealer financing from Ally Financial for dealerships we consolidate.
(b) Commitment fees are paid on credit facilities at rates negotiated in each agreement. Amounts paid and expensed for these
commitment fees during the years ended December 31, 2010 and 2009 were insignificant.
(c) Includes zero coupon debt.
(d) Includes coupon rates on debt denominated in various foreign currencies.
General Motors Company 2010 Annual Report 187