General Motors 2010 Annual Report Download - page 231

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(a) At December 31, 2010 and 2009 qualified cardholders had rebates available, net of deferred program revenue, of $2.8 billion and
$3.1 billion.
(b) Redemption liabilities are recorded in Accrued liabilities.
(c) Deferred revenue is recorded in Other liabilities and deferred income taxes. At December 31, 2010 and 2009 deferred revenue
includes an unfavorable contract liability recorded in applying fresh-start reporting at July 10, 2009.
(d) Includes $45 million and $28 million recorded in Accrued liabilities at December 31, 2010 and 2009, and the remainder was
recorded in Other liabilities and deferred income taxes.
(e) Consists primarily of tax related litigation not recorded pursuant to ASC 740 as well as various non-U.S. labor related matters.
Guarantees
We have provided guarantees related to the residual value of certain operating leases. These guarantees terminate in years ranging
from 2011 to 2035. Certain leases contain renewal options.
We have agreements with third parties that guarantee the fulfillment of certain suppliers’ commitments and other obligations. These
guarantees expire in years ranging from 2011 to 2015, or upon the occurrence of specific events.
In some instances, certain assets of the party whose debt or performance we have guaranteed may offset, to some degree, the cost of
the guarantee. The offset of certain of our payables to guaranteed parties may also offset certain guarantees, if triggered.
We also provide payment guarantees on commercial loans made by Ally Financial and outstanding with certain third parties, such
as dealers or rental car companies. These guarantees either expire in years ranging from 2012 to 2029 or are ongoing. We determined
the value ascribed to the guarantees to be insignificant based on the credit worthiness of the third parties. Refer to Note 32 for
additional information on guarantees that we provide to Ally Financial.
In connection with certain divestitures of assets or operating businesses, we have entered into agreements indemnifying certain
buyers and other parties with respect to environmental conditions pertaining to real property we owned. We have provided guarantees
with respect to benefits to be paid to former employees of divested businesses relating to pensions, postretirement healthcare and life
insurance. We periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not
possible to estimate our maximum exposure under these indemnifications or guarantees due to the conditional nature of these
obligations. No amounts have been recorded for such obligations as they are not probable or estimable at this time, and the fair value
of the guarantees at issuance was insignificant.
In addition to the guarantees and indemnifying agreements mentioned previously, we periodically enter into agreements that
incorporate indemnification provisions in the normal course of business. Due to the nature of these agreements, the maximum
potential amount of future undiscounted payments to which we may be exposed cannot be estimated. No amounts have been recorded
for such indemnities as our obligations under them are not probable or estimable at this time, and the fair value of the guarantees at
issuance was insignificant.
In addition to the guarantees and indemnifying agreements previously discussed, we indemnify dealers for certain product liability
related claims as subsequently discussed.
With respect to other product-related claims involving products manufactured by certain joint ventures, we believe that costs
incurred are adequately covered by recorded accruals. These guarantees expire in 2020.
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