General Motors 2011 Annual Report Download - page 52

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Credit Facilities
In the normal course of business, in addition to using available cash, GM Financial pledges receivables to and borrows under credit
facilities to fund operations and repays these borrowings as appropriate under GM Financial’s cash management strategy.
The following table summarizes those credit facilities (dollars in millions):
December 31, 2011 December 31, 2010
Facility Amount Advances Outstanding Facility Amount Advances Outstanding
Syndicated warehouse facility (a) ................... $2,000 $ 621 $1,300 $278
U.S. lease warehouse facility (b) . . . . . . . . . . . . . . . . . . . . $ 600 — —
Canada lease warehouse facility (c) . . . . . . . . . . . . . . . . . . $ 589 181 —
Medium-term note facility (d) . . . . . . . . . . . . . . . . . . . . . . 294 490
Bankfundingfacility ............................. 3 64
Total .......................................... $1,099 $832
(a) In February 2011 GM Financial extended the maturity date of the syndicated warehouse facility to May 2012 and increased the
borrowing capacity to $2.0 billion from $1.3 billion.
(b) In January 2012 GM Financial extended the maturity date of the lease warehouse facility for lease originations in the U.S. to
January 2013. Borrowings on the facility are collateralized by leased assets.
(c) In July 2011 GM Financial Canada Leasing Ltd., a subsidiary of GM Financial entered into a lease warehouse facility for lease
originations in Canada that matures in July 2012. Borrowings on this facility are collateralized by leased assets. The facility
amount represents CAD $600 million at December 31, 2011.
(d) The revolving period under this facility has ended and the outstanding debt balance will be repaid over time based on the
amortization of the receivables pledged until October 2016 when any remaining amount outstanding will be due and payable.
GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under the
credit facilities and securitization notes payable. GM Financial’s funding agreements contain various covenants requiring minimum
financial ratios, asset quality and portfolio performance ratios (portfolio net loss and delinquency ratios, and pool level cumulative net
loss ratios) as well as limits on deferment levels. Failure to meet any of these covenants could result in an event of default under these
agreements. If an event of default occurs under these agreements, the lenders could elect to declare all amounts outstanding under
these agreements to be immediately due and payable, enforce their interests against collateral pledged under these agreements or, with
respect to the syndicated warehouse facility, restrict GM Financial’s ability to obtain additional borrowings.
Defined Benefit Pension Plan Contributions
Plans covering eligible U.S. salaried employees hired prior to January 2001 and hourly employees hired prior to October 15, 2007
generally provide benefits of stated amounts for each year of service as well as supplemental benefits for employees who retire with
30 years of service before normal retirement age. Salaried and hourly employees hired after these dates participate in defined
contribution or cash balance plans. Our and Old GM’s policy for qualified defined benefit pension plans is to contribute annually not
less than the minimum required by applicable law and regulation, or to directly pay benefit payments where appropriate. At
December 31, 2011 all legal funding requirements had been met.
50 General Motors Company 2011 Annual Report