General Motors 2011 Annual Report Download - page 120

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Automotive Financing — GM Financial
The following table summarizes the components of Restricted cash (dollars in millions):
Successor
December 31, 2011 December 31, 2010
Securitization notes payable and credit facilities ....................................... $1,056 $1,057
Other(a) ...................................................................... 59 33
Total restricted cash ............................................................. $1,115 $1,090
(a) Pledged in association with derivative transactions and cash collections related to leases serviced for a third party.
Note 15. Variable Interest Entities
Consolidated VIEs
Automotive
VIEs that we do not control through a majority voting interest that are consolidated because we are the primary beneficiary include
certain vehicle assembling, manufacturing, and selling venture arrangements, the most significant of which is GM Egypt. We
consolidated GM Egypt in January 2010 in connection with our adoption of amendments to ASC 810, “Consolidation”. GM Egypt, a
31% owned operating entity, assembles and manufactures vehicles. Certain voting and other rights permit us to direct those activities
of GM Egypt that most significantly affect its economic performance. At December 31, 2011 and 2010 (1) Total assets recognized for
these consolidated VIEs were $463 million and $481 million, which were comprised of Cash and cash equivalents, Accounts and
notes receivables, net, Inventories, and Property, net; and (2) Total liabilities were $298 million and $307 million, which were
comprised of Accounts payable (principally trade), and Accrued and other liabilities. Liabilities recognized as a result of consolidating
VIEs generally do not represent claims against us or our other subsidiaries and assets recognized generally are for the benefit of the
VIEs’ operations and cannot be used to satisfy our obligations. In the years ended December 31, 2011 and 2010 Total net sales and
revenue recorded for these consolidated VIEs were $748 million and $753 million and Net income was $61 million and $84 million,
the most significant of which were attributable to GM Egypt. Prior to 2010, Total assets and liabilities recognized were not
significant.
GM Korea, a non-wholly owned consolidated subsidiary that we control through a majority voting interest, is also a VIE because in
the future it may require additional subordinated financial support. The creditors of GM Korea’s short-term debt of $171 million and
$70 million, current derivative liabilities of $44 million and $111 million and long-term debt of $7 million and $835 million at
December 31, 2011 and 2010 do not have recourse to our general credit. In February 2011 we provided a guarantee to a minority
shareholder in GM Korea to repurchase GM Korea’s preferred shares according to the redemption schedule should GM Korea not
repurchase the shares. This guarantee decreased the amount of long-term debt which did not have recourse to our general credit in the
year ended December 31, 2011.
Automotive Financing — GM Financial
GM Financial finances its loan and lease origination volume through the use of credit facilities and securitization trusts that issue
asset-backed securities to investors. GM Financial retains a residual interest in these entities and is not required to provide any
additional financial support to its sponsored credit facilities and securitization SPEs. The SPEs are considered VIEs because they do
not have sufficient equity at risk and are consolidated because GM Financial has the power over those activities that most significantly
affect the economic performance of the SPEs. Refer to Notes 5, 6 and 17 for additional information on GM Financial’s involvement
with the SPEs. The finance receivables, leased assets and other assets held by these subsidiaries are not available to our creditors or
creditors of our other subsidiaries.
118 General Motors Company 2011 Annual Report