General Motors 2010 Annual Report Download - page 235

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Noncancelable Operating Leases
The following table summarizes our minimum commitments under noncancelable operating leases having remaining terms in
excess of one year, primarily for property (dollars in millions):
2011 2012 2013 2014 2015
2016
and after
Minimum commitments (a) ............................................... $520 $406 $318 $266 $232 $ 851
Sublease income ........................................................ (60) (60) (55) (51) (46) (359)
Net minimum commitments ............................................... $460 $346 $263 $215 $186 $ 492
(a) Certain of the leases contain escalation clauses and renewal or purchase options.
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
Rental expense under operating leases ................... $604 $255 $369 $934
Asbestos-Related Liability
In connection with the 363 Sale, MLC retained substantially all of the asbestos-related claims outstanding.
Like most automobile manufacturers, Old GM had been subject to asbestos-related claims in recent years.
Old GM recorded the estimated liability associated with asbestos personal injury claims where the expected loss was both probable
and could reasonably be estimated. Old GM retained a firm specializing in estimating asbestos claims to assist Old GM in determining
the potential liability for pending and unasserted future asbestos personal injury claims.
Old GM reviewed a number of factors, including the analyses provided by the firm specializing in estimating asbestos claims in
order to determine a reasonable estimate of the probable liability for pending and future asbestos-related claims projected to be
asserted over the subsequent 10 years, including legal defense costs. Old GM monitored actual claims experience for consistency with
this estimate and made periodic adjustments as appropriate. Old GM recorded asbestos-related expenses of $18 million and
$51 million in the period January 1, 2009 through July 9, 2009 and the year ended December 31, 2008.
Delphi Corporation
Benefit Guarantee
In 1999, Old GM spun-off Delphi Automotive Systems Corporation, which became Delphi. Prior to the consummation of the
DMDA, Delphi was our and Old GM’s largest supplier of automotive systems, components and parts, and we and Old GM were
Delphi’s largest customer. From 2005 to 2008 Old GM’s annual purchases from Delphi ranged from approximately $6.5 billion to
approximately $10.2 billion. At the time of the spin-off, employees of Delphi Automotive Systems Corporation became employees of
Delphi. As part of the separation agreements, Delphi assumed the pension and other postretirement benefit obligations for the
transferred U.S. hourly employees who retired after January 1, 2000 and Old GM retained pension and other postretirement
obligations for U.S. hourly employees who retired on or before January 1, 2000. Additionally at the time of the spin-off, Old GM
entered into the Delphi Benefit Guarantee Agreements with the UAW, the IUE-CWA and the USW providing contingent benefit
guarantees whereby, under certain conditions, Old GM would make payments for certain pension and OPEB benefits to certain former
U.S. hourly employees that became employees of Delphi. The Delphi Benefit Guarantee Agreements provided, in general, that in the
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