General Motors 2014 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2014 General Motors annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Liability Recorded
December 31, 2014 December 31, 2013
Other litigation-related liability and tax administrative matters ............................ $ 1,000 $ 1,227
Product liability ................................................................. $ 732 $ 690
Ignition switch recall compensation program .......................................... $ 315
Credit card programs (a)
Redemption liability (b) ........................................................ $ 87 $ 183
Deferred revenue (c) ........................................................... $ 263 $ 295
Environmental liability ........................................................... $ 133 $ 154
Asset retirement obligations ....................................................... $ 146 $ 159
(a) Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles. At December 31, 2014 and 2013
qualified cardholders had rebates available, net of deferred program revenue, of approximately $2.3 billion and $2.6 billion.
(b) Recorded in Accrued liabilities.
(c) Recorded in Other liabilities.
Guarantees
We provide payment guarantees on commercial loans outstanding with third parties such as dealers or rental car companies. 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. In March 2014 a new agreement was signed with Ally Financial that removed the repurchase
obligation for vehicles invoiced after December 31, 2013. The repurchase obligation for vehicles invoiced prior to December 31, 2013
was maintained until December 31, 2014 at which time repurchase obligations expired for all vehicles.
Agreements with third parties that guarantee the fulfillment of certain suppliers’ commitments and other obligations expire in 2015
through 2019 or upon the occurrence of specific events or are ongoing.
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.
Insignificant 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. In addition, we indemnify dealers for certain product liability related
claims as subsequently discussed.
With respect to other product-related claims involving products manufactured by certain joint ventures, we believe that costs
incurred are adequately covered by recorded accruals. These guarantees terminate in years ranging from 2020 to 2029.
Other Litigation-Related Liability and Tax Administrative Matters
Various legal actions, governmental investigations, claims and proceedings are pending against us including matters arising out of
alleged product defects; employment-related matters; governmental regulations relating to safety, emissions and fuel economy;
product warranties; financial services; dealer, supplier and other contractual relationships; tax-related matters not recorded pursuant to
ASC 740, “Income Taxes” (indirect tax-related matters) and environmental matters.
110