General Motors 2011 Annual Report Download - page 158

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Asset Retirement Obligations
Asset retirement obligations relate to legal obligations associated with retirement of tangible long-lived assets that result from
acquisition, construction, development, or normal operation of a long-lived asset. An analysis is performed of such obligations
associated with all real property owned or leased, including facilities, warehouses, and offices. Estimates of conditional asset
retirement obligations relate, in the case of owned properties, to costs estimated to be necessary for the legally required removal or
remediation of various regulated materials, primarily asbestos. Asbestos abatement was estimated using site-specific surveys where
available and a per square foot estimate where surveys were unavailable. For leased properties, such obligations relate to the estimated
cost of contractually required property restoration. At December 31, 2011 and 2010 accruals for asset retirement obligations were $99
million and $103 million.
Contract Cancellations
The following table summarizes contract cancellation charges primarily related to the cancellation of product programs (dollars in
millions):
Successor Predecessor
Year Ended
December 31, 2011
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
GMNA(a) ....................................... $38 $30 $80 $157
GME ............................................ 8 3 — 12
GMIO ........................................... 43 — 2 8
GMSA .......................................... 4 — — —
Total contract cancellations . . . . . . . . . . . . . . . . . . . . . . . . . . $93 $33 $82 $177
(a) The year ended December 31, 2010 includes favorable changes in estimate on contract cancellations of $30 million.
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):
2012 2013 2014 2015 2016
2017
and after
Minimum commitments (a) ............................................... $422 $325 $252 $207 $169 $ 682
Sublease income ........................................................ (59) (58) (53) (47) (45) (314)
Net minimum commitments ............................................... $363 $267 $199 $160 $124 $ 368
(a) Certain of the leases contain escalation clauses and renewal or purchase options.
The following table summarizes our rental expense under operating leases (dollars in millions):
Successor Predecessor
Year Ended
December 31, 2011
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
Rental expense under operating leases .................. $556 $604 $255 $369
156 General Motors Company 2011 Annual Report