General Motors 2015 Annual Report Download - page 44

Table of Contents







Automotive debt $ 582
$ 1,727
$ 87
$ 5,992
$ 8,388
Automotive Financing debt 18,793
21,969
8,712
5,050
54,524
Capital lease obligations 234
408
86
198
926
Automotive interest payments(a) 448
824
648
4,770
6,690
Automotive Financing interest payments(b) 1,275
1,596
664
483
4,018
Postretirement benefits(c) 234
431
216
—
881
Contractual commitments for capital expenditures 187
—
—
—
187
Operating lease obligations 229
323
222
152
926
Other contractual commitments:
Material 588
606
109
200
1,503
Marketing 972
428
220
40
1,660
Rental car repurchases 4,958
—
—
—
4,958
Other 656
855
433
722
2,666
Total contractual commitments(d) $ 29,156
$ 29,167
$ 11,397
$ 17,607
$ 87,327
Non-contractual postretirement benefits(e) $ 150
$ 311
$ 502
$ 9,955
$ 10,918
__________
(a) Amounts include automotive interest payments based on contractual terms and current interest rates on our debt and capital lease obligations. Automotive interest payments
based on variable interest rates were determined using the interest rate in effect at December 31, 2015.
(b) GM Financial interest payments were determined using the interest rate in effect at December 31, 2015 for floating rate debt and the contractual rates for fixed rate debt. GM
Financial interest payments on floating rate tranches of the securitization notes payable were converted to a fixed rate based on the floating rate plus any expected hedge
payments.
(c) Amounts include other postretirement benefits (OPEB) payments under the current U.S. contractual labor agreements through 2019 and Canada labor agreements through
2016. These agreements are generally renegotiated in the year of expiration. Amounts do not include pension funding obligations, which are discussed in Note 13 to our
consolidated financial statements.
(d) 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, 2015.
(e) Amounts include all expected future payments for both current and expected future service at December 31, 2015 for OPEB obligations for salaried employees and hourly
OPEB obligations extending beyond the current North American union contract agreements. Amounts do not include pension funding obligations, which are discussed in Note
13 to our consolidated financial statements.
The table above does not reflect product warranty and related liabilities of $9.3 billion and unrecognized tax benefits of $1.4 billion due to the uncertainty
regarding the future cash outflows associated with these amounts.

Accounting estimates are an integral part of the consolidated financial statements. These estimates require the use of judgments and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses in the periods presented. We believe the accounting estimates employed are appropriate and the resulting balances are
reasonable; however, due to the inherent uncertainties in developing estimates actual results could differ from the original estimates, requiring adjustments to
these balances in future periods. Refer to Note 2 to our consolidated financial statements for our significant accounting policies related to our critical
accounting estimates.

Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected long-
term rate of return on plan assets, a discount rate, mortality rates of participants and expectation of mortality improvement. The expected long-term rate of
return on U.S. plan assets that is utilized in determining pension expense is derived from periodic studies, which include a review of asset allocation
strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset
classes that comprise the
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