General Motors 2015 Annual Report Download - page 88

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Table of Contents




Litigation-related liability and tax administrative matters $ 1,155
$ 1,000
Product liability $ 712
$ 732
Ignition Switch Recall compensation program $ 66
$ 315
Credit card programs(a)
Redemption liability – recorded in Accrued liabilities $ 115
$ 87
Deferred revenue – recorded in Other liabilities $ 258
$ 263
Environmental liability $ 124
$ 133
Guarantees $ 72
$ 88
__________
(a) Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles. At December 31, 2015 and 2014 qualified cardholders had
rebates available, net of deferred program revenue, of $2.0 billion and $2.3 billion.

In the normal course of business we are named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other
litigation, that arise in connection with our business as a global company. We identify below the material individual proceedings and investigatory activity
in connection with which we believe a material loss is reasonably possible or probable.
With regard to the various legal matters we have established reserves for matters for which we believe that losses are probable and can be reasonably
estimated. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the
size or range of the possible loss. Accordingly it is possible that an adverse outcome from such proceedings could exceed the amounts accrued in an amount
that could be material to our consolidated financial position, results of operations or cash flows in any particular reporting period. Reserves for losses deemed
probable and reasonably estimable are recorded in Accrued liabilities and Other liabilities.

In the year ended December 31, 2014 we announced various recalls relating to safety, customer satisfaction and other matters. Those recalls included
recalls to repair ignition switches that could under certain circumstances unintentionally move from the “run” position to the “accessory” or “off” position
with a corresponding loss of power, which could in turn prevent airbags from deploying in the event of a crash.
Through January 27, 2016 we were aware of 100 putative class actions pending against GM in various federal and state trial courts in the U.S. alleging that
consumers who purchased or leased vehicles manufactured by GM or General Motors Corporation had been economically harmed by one or more of the
recalls announced in 2014 and/or the underlying vehicle conditions associated with those recalls (economic-loss cases). Additionally through January 27,
2016 we were aware of 21 putative class actions pending in various Provincial Courts in Canada seeking relief similar to that sought in the economic-loss
cases in the U.S. In the aggregate these economic-loss cases seek recovery for purported compensatory damages, such as alleged diminution in value of the
vehicles, as well as punitive damages, injunctive relief and other relief. There are also two civil actions brought by state governmental entities relating to the
2014 recalls that seek injunctive relief as well as economic damages and attorneys' fees for alleged violations of state consumer protection statutes.
Through January 27, 2016 we were aware of 235 actions pending in various federal and state trial courts in the U.S. against GM alleging injury or death as
a result of defects that may be the subject of recalls announced in 2014 (personal injury cases). Additionally through January 27, 2016 we were aware of nine
actions pending in various Provincial Courts in Canada seeking relief similar to that sought in the personal injury cases in the U.S. In general, these personal
injury cases seek recovery for purported compensatory damages, punitive damages and other relief.
Since June 2014 the United States Judicial Panel on Multidistrict Litigation (JPML) has issued orders from time to time directing that certain pending
economic-loss and personal injury federal lawsuits involving faulty or allegedly faulty ignition switches or other defects that may be related to the recalls
announced in the year ended December 31, 2014 be transferred to, and consolidated
84