General Motors 2012 Annual Report Download - page 145

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Gains and (Losses) on Derivatives
The following table summarizes derivative gains (losses) recorded in Interest income and other non-operating income, net (dollars
in millions):
Years Ended December 31,
2012 2011 2010
Foreign Currency ...................................................................... $ 70 $(30) $ 82
Commodity ........................................................................... (31) (98) (25)
Embedded ............................................................................ (102) 165 (8)
Warrants ............................................................................. — 4 19
Total gains (losses) recorded in earnings .................................................... $ (63) $ 41 $ 68
Other Derivatives
In February 2011 we exercised warrants to purchase 4 million shares of a supplier’s common stock at $2.76 per share and sold the
shares and received proceeds of $48 million.
In connection with our investment in New Delphi, which we accounted for using the equity method, we recorded our share of New
Delphi’s other comprehensive income (loss) in Accumulated other comprehensive income. In the three months ended March 31, 2011
we recorded cash flow hedging gains of $13 million and in the year ended December 31, 2010 we recorded cash flow hedging losses
of $22 million related to our share of New Delphi’s hedging gains and losses. In March 2011 we sold our interests in New Delphi. As
a result previously recorded cash flow hedging losses of $10 million in Accumulated other comprehensive loss were reclassified to
earnings and recorded in the gain on sale of New Delphi. Refer to Note 10 for additional information on the sale of New Delphi.
Automotive Financing — GM Financial
GM Financial is exposed to market risks arising from adverse changes in interest rates due to floating interest rate exposure on its
credit facilities and on certain securitization notes payable and manages this exposure with interest rate swaps and caps. GM Financial
had interest rate swaps and caps in asset positions with notional amounts of $775 million and $2.0 billion at December 31, 2012 and
2011. GM Financial had interest rate swaps and caps in liability positions with notional amounts of $775 million and $2.0 billion at
December 31, 2012 and 2011. The fair value of these derivative financial instruments was insignificant.
Credit Risk Related Contingent Features
Under the terms of the derivative financial instruments, GM Financial is required to pledge certain funds to be held in restricted
cash accounts as collateral for the outstanding derivative transactions. At December 31, 2012 and 2011 these restricted cash accounts
totaled $4 million and $36 million and were recorded in Restricted cash and marketable securities.
General Motors Company 2012 ANNUAL REPORT142