General Motors 2010 Annual Report Download - page 230

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes the gains related to net investment hedges recorded as a Foreign currency translation adjustment in
Accumulated other comprehensive income (loss) (dollars in millions):
Predecessor
January 1, 2009
Through
July 9, 2009
Year Ended
December 31, 2008
Effective portion of net investment hedges .............................................. $5 $106
Derivatives Not Meeting a Scope Exception from Fair Value Accounting
Old GM previously entered into purchase contracts that were accounted for as derivatives with changes in fair value recorded in
Automotive cost of sales, as these contracts did not qualify for the normal purchases and normal sales scope exception in ASC 815,
“Derivatives and Hedging.” Certain of these contracts were terminated in the period January 1, 2009 through July 9, 2009. MLC
retained the remainder of these purchase contracts in connection with the 363 Sale.
Note 22. Commitments and Contingencies
Consolidated
The following tables summarize information related to commitments and contingencies (dollars in millions):
Successor
December 31, 2010 December 31, 2009
Liability
Recorded
Maximum
Liability (a)
Liability
Recorded
Maximum
Liability (a)
Guarantees (b)
Operating lease residual values ............................................. $ 7 $ 59 $— $ 79
Ally Financial commercial loans (c) ......................................... $— $ 17 $ 2 $167
Supplier commitments and other obligations .................................. $— $ 63 $ 3 $218
Other product-related claims ............................................... $50 $442 $54 $553
(a) Calculated as future undiscounted payments.
(b) Excludes residual support and risk sharing programs and vehicle repurchase obligations related to Ally Financial.
(c) At December 31, 2009 includes $127 million related to a guarantee provided to Ally Financial in Brazil in connection with dealer
floor plan financing. This guarantee is collateralized by an interest in certificates of deposit of $127 million purchased from Ally
Financial to which we have title and which were recorded in Restricted cash and marketable securities. The purchase of the
certificates of deposit was funded in part by contributions from dealers for which we had recorded a corresponding deposit
liability of $104 million, which was recorded in Other liabilities. In the year ended December 31, 2010 this guarantee was
terminated.
Successor
December 31, 2010 December 31, 2009
Liability Recorded Liability Recorded
Credit card programs (a)
Redemption liability (b) ........................................................ $ 167 $ 140
Deferred revenue(c) ........................................................... $ 408 $ 464
Environmental liability (d) ........................................................ $ 195 $ 190
Product liability ................................................................. $ 365 $ 319
Liability related to contingently issuable shares ........................................ $ — $ 162
Other litigation-related liability and tax administrative matters (e) ......................... $1,471 $1,192
228 General Motors Company 2010 Annual Report