General Motors 2013 Annual Report Download - page 106

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 17. Commitments and Contingencies
The following tables summarize information related to commitments and contingencies (dollars in millions):
December 31, 2013 December 31, 2012
Liability
Recorded
Maximum
Liability (a)
Liability
Recorded
Maximum
Liability (a)
Guarantees
Third-party commercial loans and other obligations (b) .......................... $ 51 $ 15,616 $ 168 $ 22,496
Other product-related claims ............................................... $ 54 $ 1,317 $ 51 $ 1,040
(a) Calculated as future undiscounted payments.
(b) Includes liabilities recorded of $10 million and $15 million and maximum liabilities of $15.3 billion and $22.1 billion related to Ally Financial
repurchase obligations at December 31, 2013 and 2012.
Liability Recorded
December 31, 2013 December 31, 2012
Other litigation-related liability and tax administrative matters (a) ......................... $ 1,227 $ 1,728
Product liability ................................................................. $ 690 $ 601
Credit card programs (b)
Redemption liability (c) ........................................................ $ 183 $ 209
Deferred revenue (d) ........................................................... $ 295 $ 355
Environmental liability ........................................................... $ 154 $ 166
(a) Primarily indirect tax-related litigation as well as various non-U.S. labor related matters.
(b) At December 31, 2013 and 2012 qualified cardholders had rebates available, net of deferred program revenue, of approximately $2.6 billion and
$2.9 billion.
(c) Recorded in Accrued liabilities.
(d) Recorded in Other liabilities and deferred income taxes.
Guarantees
We provide payment guarantees on commercial loans outstanding with third parties, such as dealers or rental car companies. These
guarantees either expire in 2018 or are ongoing. We determined the fair value ascribed to the guarantees at inception and subsequent
to inception to be insignificant based on the credit worthiness of the third parties.
We have agreements with third parties that guarantee the fulfillment of certain suppliers’ commitments and other obligations. These
guarantees expire in 2014 through 2016 or are ongoing, or upon the occurrence of specific events.
In some instances certain assets of the party whose debt or performance we have guaranteed may offset, to some degree, the cost of
the guarantee. The offset of certain of our payables to guaranteed parties may also offset certain guarantees, if triggered. If vehicles
are required to be repurchased under vehicle repurchase obligations, the total exposure would be reduced to the extent vehicles are
able to be resold to another dealer.
In connection with certain divestitures of assets or operating businesses, we have entered into agreements indemnifying certain
buyers and other parties with respect to environmental conditions and other closure costs pertaining to real property we owned. We
periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not possible to
estimate our maximum exposure under these indemnifications or guarantees due to the conditional nature of these obligations.
Immaterial amounts have been recorded for such obligations as the majority of them are not probable or estimable at this time and the
fair value of the guarantees at issuance was insignificant.
104
2013 ANNUAL REPORT