General Motors 2010 Annual Report Download - page 90

GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to
estimated future employee service, but does not reflect the effect of the 2009 CAW Agreement which provides for our independent
HCT (dollars in millions):
Successor
Years Ended December 31,
Pension Benefits(a) Other Benefits
U.S. Plans Non-U.S. Plans U.S. Plans(b) Non-U.S. Plans
2011 ........................................................... $ 8,765 $1,460 $ 451 $ 189
2012 ........................................................... $ 8,463 $1,461 $ 427 $ 199
2013 ........................................................... $ 8,186 $1,480 $ 407 $ 209
2014 ........................................................... $ 7,999 $1,513 $ 391 $ 220
2015 ........................................................... $ 7,855 $1,534 $ 379 $ 231
2016-2020 ...................................................... $36,033 $7,889 $1,796 $1,287
(a) Benefits for most U.S. pension plans and certain non-U.S. pension plans are paid out of plan assets rather than our cash and cash
equivalents.
(b) Benefit payments presented in this table reflect the effect of the implementation of the 2009 UAW Retiree Settlement
Agreement, which releases us from UAW retiree healthcare claims incurred after December 31, 2009.
Off-Balance Sheet Arrangements
We do not currently utilize off balance sheet securitization arrangements. All trade or financing receivables and related obligations
subject to securitization programs are recorded on our consolidated balance sheets at December 31, 2010 and 2009.
Guarantees Provided to Third Parties
We have provided guarantees related to the residual value of operating leases, certain suppliers’ commitments, certain product-
related claims and commercial loans made by Ally Financial and outstanding with certain third parties excluding vehicle repurchase
obligations, residual support and risk sharing related to Ally Financial. The maximum potential obligation under these commitments
was $581 million at December 31, 2010. The maximum potential obligation under these commitments was $1.0 billion at
December 31, 2009.
In May 2009 Old GM and Ally Financial agreed to expand repurchase obligations for Ally Financial financed inventory at certain
dealers in Europe, Asia, Brazil and Mexico. In November 2008 Old GM and Ally Financial agreed to expand repurchase obligations
for Ally Financial financed inventory at certain dealers in the United States and Canada. Our current agreement with Ally Financial
requires the repurchase of Ally Financial financed inventory invoiced to dealers after September 1, 2008, with limited exclusions, in
the event of a qualifying voluntary or involuntary termination of the dealer’s sales and service agreement. Repurchase obligations
exclude vehicles which are damaged, have excessive mileage or have been altered. The repurchase obligation ended in August 2010
for vehicles invoiced through August 2009, ends in August 2011 for vehicles invoiced through August 2010 and ends in August 2012
for vehicles invoiced through August 2011.
The maximum potential amount of future payments required to be made to Ally Financial under this guarantee would be based on
the repurchase value of total eligible vehicles financed by Ally Financial in dealer stock and is estimated to be $18.8 billion at
December 31, 2010. This amount was estimated to be $14.2 billion at December 31, 2009. If vehicles are required to be repurchased
under this arrangement, the total exposure would be reduced to the extent vehicles are able to be resold to another dealer or at auction.
The fair value of the guarantee was $21 million and $46 million at December 31, 2010 and 2009 which considers the likelihood of
dealers terminating and estimated the loss exposure for the ultimate disposition of vehicles.
Refer to Notes 22 and 32 to our consolidated financial statements for additional information on guarantees we have provided.
88 General Motors Company 2010 Annual Report