General Motors 2012 Annual Report Download - page 57

GENERAL MOTORS COMPANY AND SUBSIDIARIES
(d) GM Financial interest payments are calculated based on London Interbank Offered Rate or Canadian Dealer Offered Rate plus
the respective credit spreads and specified fees associated with the Canada lease warehouse facility, the coupon rate for the
senior notes and a fixed rate of interest for securitization notes payable. GM Financial interest payments on the floating rate
tranches of the securitization notes payable were converted to a fixed rate based on the floating rate plus any expected hedge
payments.
(e) Amounts include other postretirement benefit payments under the current U.S. contractual labor agreements through 2015 and
Canada labor agreements through 2016. Amounts do not include pension funding obligations, which are discussed below under
the caption “Pension Funding Requirements.”
(f) Amounts include operating lease obligations for both Automotive and Automotive Financing. Automotive is included net of
sublease income.
(g) Future payments in local currency amounts were translated into U.S. Dollars using the balance sheet spot rate at December 31,
2012.
(h) Amounts do not include future cash payments for long-term purchase obligations and other accrued expenditures (unless
specifically listed in the table above) which were recorded in Accounts payable or Accrued liabilities at December 31, 2012.
(i) Amounts exclude the future annual contingent obligations of Euro 265 million in the years 2013 to 2014 related to our Opel/
Vauxhall restructuring plan. Refer to Note 20 to our consolidated financial statements for further detail.
(j) Amount includes all expected future payments for both current and expected future service at December 31, 2012 for other
postretirement benefit obligations for salaried employees and hourly other postretirement benefit obligations extending beyond
the current North American union contract agreements. Amounts do not include pension funding obligations, which are
discussed below under the caption “Pension Funding Requirements.”
The table above does not reflect unrecognized tax benefits of $2.7 billion due to the high degree of uncertainty regarding the future
cash outflows associated with these amounts.
Pension Funding Requirements
In 2012 the U.S. government enacted the Moving Ahead for Progress in the 21st Century Act which allows plan sponsors funding
relief for pension plans through the application of higher funding interest rates. As a result, under current economic conditions, we
expect no mandatory contributions to our U.S. qualified pension plans for at least five years. The new law does not impact our
reported funded status or funding contemplated under our derisking initiatives.
We have implemented and completed a balance sheet derisking strategy, comprising certain actions related to our U.S. salaried
pension plan. These actions include payment of lump-sums to retirees, the purchase of group annuity contracts from an insurance
company and the settlement of other previously guaranteed obligations. We provided the salaried pension plan with funding through
contributions and short-term interest free loans of $2.4 billion, consisting of contributions of $1.5 billion and $0.7 billion, and a loan
of $0.3 billion. At December 31, 2012 $0.2 billion of the remaining $0.3 billion loan was deemed a contribution. Amounts loaned to
the Retiree Plan in excess of the ultimate funding requirements will be repaid to us. Through these transactions we have settled the
remaining obligations of the Retiree Plan in their entirety.
We do not have any required contributions payable to our U.S. qualified plans in 2013. We expect to contribute $0.1 billion to our
U.S. non-qualified plans and $0.8 billion to our non-U.S. pension plans in 2013.
Fair Value Measurements
Refer to Note 19 to our consolidated financial statements for additional information regarding Level 3 measurements.
General Motors Company 2012 ANNUAL REPORT54