General Motors 2012 Annual Report Download - page 119

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 17. Short-Term and Long-Term Debt
Automotive
Short-Term Debt and Long-Term Debt
The following table summarizes the components of our short-term debt and long-term debt (dollars in millions):
December 31, 2012 December 31, 2011
Short-term debt
Wholesale financing (a) .......................................................... $ 889 $ 1,081
GM Korea mandatorily redeemable preferred shares .................................... 467 312
Capital leases ................................................................... 183 139
Other short-term debt and current portion of long-term debt .............................. 209 150
Total automotive short-term debt and current portion of long-term debt ..................... 1,748 1,682
Long-term debt
Canadian Health Care Trust (HCT) notes ............................................. 1,239 1,141
GM Korea mandatorily redeemable preferred shares .................................... — 666
Capital leases ................................................................... 855 853
Other long-term debt (a) .......................................................... 1,330 953
Total automotive long-term debt .................................................... 3,424 3,613
Total automotive debt (b) ......................................................... $ 5,172 $ 5,295
Fair value of automotive debt (c) ................................................... $ 5,298 $ 5,467
Available under credit facility agreements ............................................ $ 11,119 $ 5,308
Interest rate range on outstanding debt (d) ............................................ 0.0-19.0% 0.0-19.0%
Weighted-average interest rate on outstanding short-term debt (d) ......................... 3.7% 5.0%
Weighted-average interest rate on outstanding long-term debt (d) ......................... 4.0% 3.6%
(a) Includes debt obligations to Ally Financial of $869 million and $1.1 billion at December 31, 2012 and 2011.
(b) Net of a $1.1 billion and $1.6 billion discount at December 31, 2012 and 2011.
(c) The fair value of debt included $4.1 billion and $4.4 billion measured utilizing Level 2 inputs at December 31, 2012 and 2011.
The fair value of debt included $1.2 billion and $1.1 billion measured utilizing Level 3 inputs at December 31, 2012 and 2011.
(d) Includes coupon rates on debt denominated in various foreign currencies and interest free loans.
The Level 2 fair value measurements utilize a discounted cash flow model. The valuation is reviewed internally by personnel with
appropriate expertise in valuation methodologies. This model utilizes observable inputs such as contractual repayment terms and
benchmark forward yield curves, plus a spread that is intended to represent our nonperformance risk for secured or unsecured
obligations. We estimate our nonperformance risk using our corporate credit rating, the rating on our secured revolving credit
facilities, yields on traded bonds of companies with comparable credit ratings and risk profiles. We acquire the benchmark yield
curves and nonperformance risk spread from independent sources that are widely used in the financial industry. In certain
circumstances we adjust the valuation of debt for additional nonperformance risk or potential prepayment probability scenarios. We
may use a probability weighting of prepayment scenarios when the stated rate exceeds market rates and the instrument contains
prepayment features. The prepayment scenarios are adjusted to reflect the views of market participants. The fair value measurements
subject to additional adjustments for nonperformance risk or prepayment have been categorized within Level 3.
General Motors Company 2012 ANNUAL REPORT116