General Motors 2011 Annual Report Download - page 146

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We also maintain pension plans for employees in a number of countries outside the U.S. which are subject to local laws and
regulations. We have elected the 15-year amortization funding relief option for certain of our U.S. pension plans for the most recent
pension funding valuation as of October 1, 2010. The election of the 15-year amortization option has enabled us to defer the funding
requirements to future years. No election is required at this time for the plan year beginning October 1, 2011, and we plan to evaluate
these options in the future for our U.S. qualified pension plans. We have no funding requirements for our U.S. qualified plans in 2012.
Benefit Payments
The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to
estimated future employee service (dollars in millions):
Successor
Years Ended December 31,
Pension Benefits (a) Other Benefits
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (b)
2012 .......................................................... $ 8,514 $1,437 $ 419 $ 55
2013 .......................................................... $ 8,262 $1,441 $ 403 $ 58
2014 .......................................................... $ 8,065 $1,475 $ 367 $ 61
2015 .......................................................... $ 7,918 $1,505 $ 357 $ 65
2016 .......................................................... $ 7,645 $1,528 $ 350 $ 68
2017-2021 ...................................................... $35,435 $7,725 $1,678 $381
(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 HCT, which releases us from certain
CAW retiree healthcare claims incurred after October 31, 2011.
Note 19. Derivative Financial Instruments and Risk Management
Automotive
Derivatives and Hedge Accounting
In accordance with our risk management policy, we enter into a variety of foreign currency exchange rate and commodity
derivative contracts in connection with the management of exposure to fluctuations in certain foreign currency exchange rates and
commodity prices. At December 31, 2011 our derivative instruments consisted primarily of forward contracts and options.
At December 31, 2011 and 2010 no outstanding derivative contracts were designated in hedging relationships.
Counterparty Credit Risk
Derivative financial instruments contain an element of credit risk attributable to the counterparties’ ability to meet the terms of the
agreements. Certain of our agreements with counterparties require, under certain circumstances, that the counterparty post collateral
with us for net asset positions. Agreements are entered into with counterparties that allow the set-off of certain exposures in order to
manage the risk. Collateral held from counterparties was insignificant and $74 million at December 31, 2011 and December 31, 2010.
At December 31, 2011 substantially all derivative counterparty exposures were with counterparties that were rated A- or higher.
144 General Motors Company 2011 Annual Report