General Motors 2014 Annual Report Download - page 95

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 13. Accrued Liabilities and Other Liabilities
The following table summarizes the components of Accrued liabilities and Other liabilities (dollars in millions):
December 31, 2014 December 31, 2013
Current
Dealer and customer allowances, claims and discounts .................................. $ 8,035 $ 7,919
Deposits primarily from rental car companies ......................................... 6,089 4,713
Deferred revenue ................................................................ 1,622 1,276
Product warranty and related liabilities .............................................. 3,582 2,721
Payrolls and employee benefits excluding postemployment benefits ....................... 2,144 2,285
Other ......................................................................... 6,712 5,719
Total accrued liabilities ........................................................... $ 28,184 $ 24,633
Non-current
Deferred revenue ................................................................ $ 1,556 $ 1,249
Product warranty and related liabilities .............................................. 6,064 4,880
Employee benefits excluding postemployment benefits .................................. 1,049 1,192
Postemployment benefits including facility idling reserves ............................... 1,259 1,216
Other ......................................................................... 4,154 4,816
Total other liabilities ............................................................. $ 14,082 $ 13,353
The following table summarizes activity for product warranty and related liabilities which include policy, product warranty, recall
campaigns and courtesy transportation (dollars in millions):
Years Ended December 31,
2014 2013 2012
Beginning balance ................................................................ $ 7,601 $ 7,633 $ 7,031
Warranties issued and assumed in period — recall campaigns and courtesy transportation ....... 2,910 640 775
Warranties issued and assumed in period — policy and warranty ........................... 2,540 2,757 2,840
Payments ....................................................................... (4,326) (3,240) (3,575)
Adjustments to pre-existing warranties ................................................ 1,187 49 504
Effect of foreign currency and other .................................................. (266) (238) 58
Ending balance ................................................................... $ 9,646 $ 7,601 $ 7,633
In the year ended December 31, 2014 we recorded charges of approximately $2.9 billion in Automotive cost of sales relating to
recall campaigns and courtesy transportation, of which over 86% was recorded in GMNA. The recorded charges primarily comprised:
(1) approximately $680 million for 2.6 million vehicles to repair ignition switches that could result in a loss of electrical power under
certain circumstances that may prevent front airbags from deploying in the event of a crash (accident victims who died or suffered
physical injury associated with these vehicles (or their families) may be eligible to participate in a compensation program, as more
fully described in Note 17); to fix ignition lock cylinders that could allow removal of the ignition key while the engine is running,
leading to possible rollaway or crash; and to provide courtesy transportation to owners of affected vehicles; partially offset by
adjustments of approximately $95 million for courtesy transportation as a result of greater part availability and fewer customers
utilizing courtesy transportation than originally estimated and approximately $80 million for costs originally estimated separately for
ignition switches and ignition lock cylinders that are now being shipped and repaired at the same time resulting in reduced costs;
(2) approximately $340 million for 1.9 million vehicles to replace either the power steering motor, the steering column, the power
steering motor control unit or a combination of the steering column and the power steering motor control unit as the electric power
steering could fail under certain circumstances; (3) approximately $185 million for 1.3 million vehicles prone to non-deployment of
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