General Motors 2010 Annual Report Download - page 225

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Gains and (Losses) on Derivatives
The following table summarizes derivative gains and (losses) recorded in earnings (dollars in millions):
Successor
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
Foreign Currency Exchange Derivatives
Interest income and other non-operating income, net .................................... $82 $279
Interest Rate Swap Derivatives
Automotive interest expense ....................................................... — (1)
Commodity Derivatives
Interest income and other non-operating income, net .................................... (33) —
Warrants
Interest income and other non-operating income, net .................................... 19 —
Total gains (losses) recorded in earnings ............................................. $68 $278
Commodity Notionals
The following table summarizes the notional amounts of our commodity derivative contracts (units in thousands):
Units
Successor
Commodity December 31, 2010
December 31,
2009
Aluminum and aluminum alloy ................................................ Metric tons 448 39
Copper .................................................................... Metric tons 44 4
Lead ...................................................................... Metric tons 69 7
Heating oil ................................................................. Gallons 125,160 10,797
Natural gas ................................................................ MMBTU — 1,355
Natural gas ................................................................ Gigajoules — 150
Palladium .................................................................. Troy ounce 444 —
Platinum .................................................................. Troy ounce 91 —
Electricity (embedded derivative) ............................................... MWh 1,304 —
Foreign Currency Exchange Notionals
The following table summarizes the total notional amounts of our foreign currency exchange derivatives (dollars in millions):
Successor
December 31, 2010 December 31, 2009
Foreign currency exchange derivatives ............................................... $5,910 $6,333
Embedded foreign currency exchange derivatives ...................................... $1,421 $ —
In 2010 we entered into a long-term supply agreement which provides for pricing to be partially denominated in a currency other
than the functional currency of the parties to the contract. This pricing feature was determined to be an embedded derivative which we
have bifurcated for valuation and accounting purposes. The fair value of this embedded derivative was insignificant as of
December 31, 2010.
General Motors Company 2010 Annual Report 223