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Guarantees And Commitments
12 Months Ended
Dec. 31, 2011
Guarantees And Commitments [Abstract]  
Guarantees And Commitments Disclosure [Text Block]
30.    Guarantees and Commitments
Guarantees
Guarantees are defined as contracts or indemnification agreements that contingently require us to make payments to third parties based on changes in the underlying agreements with the guaranteed parties. The following summarizes our outstanding guarantees made to third parties on our Consolidated Balance Sheet, for the periods shown.
 
2011
 
2010
December 31, ($ in millions)
Maximum
liability
 
Carrying value
of liability
 
Maximum
liability
 
Carrying value
of liability
Default automotive repurchases
$
1,600

 
$

 
$
1,274

 
$
151

Guarantees for repayment of third-party debt

 

 
1,068

 
989

Standby letters of credit and other guarantees
333

 
88

 
513

 
121

Default Automotive Repurchases
Our International Automotive Finance operations provide certain investors in our on- and off-balance sheet arrangements (securitizations) and whole-loan transactions with repurchase commitments for loans that become contractually delinquent within a specified time from their date of origination or purchase. The maximum obligation represents the principal balance for loans sold that are covered by these stipulations. Refer to Note 11 for further information regarding our securitization trusts.
Guarantees for Repayment of Third-party Debt
Under certain arrangements, our International Automotive Finance operations guarantee the repayment of third-party debt obligations in the case of default. These guarantees are collateralized by retail loans or finance leases.
Standby Letters of Credit
Our Commercial Finance Group issues standby letters of credit to customers that represent irrevocable guarantees of payment of specified financial obligations. Third-party beneficiaries primarily utilize standby letters of credit as insurance in the event of nonperformance by our customers. Assets of the customers (i.e., trade receivables, inventory, and cash deposits) generally collateralize letters of credit. Expiration dates on letters of credit range from certain ongoing commitments that will expire during the upcoming year to terms of several years for certain letters of credit.
If nonperformance by a customer occurs for letters of credit, we can be liable for payment of the letter of credit to the beneficiary with our likely recourse being a charge back to the customer or liquidation of the collateral. The majority of customers with whom we have letter of credit exposure fall into the “acceptable” risk-rating category of our Commercial Finance Group's internal risk-rating system. This category is essentially at the midpoint of our risk rating classifications.
Commitments
Financing Commitments
The contractual commitments were as follows.
December 31, ($ in millions)
2011
 
2010
Commitments to
 
 
 
Sell mortgages or securities (a)
$
12,632

 
$
14,349

Originate/purchase mortgages or securities (a)
6,741

 
7,735

Provide capital to investees (b)
56

 
76

Provide retail automotive receivables to third-parties (c)
1,779

 

Warehouse and construction-lending commitments (d)
1,018

 
1,509

Home equity lines of credit (e)
2,234

 
2,749

Unused revolving credit line commitments (f)
1,304

 
1,910

(a)
Amounts primarily include commitments accounted for as derivatives.
(b)
We are committed to contribute capital to certain private equity funds. The fair value of these commitments is considered in the overall valuation of the underlying assets with which they are associated.
(c)
Certain of our International Automotive Finance operations are committed to provide retail automotive receivables to third-party banks in exchange for secured debt. The transaction does not meet the definition of a sale.
(d)
The fair value of these commitments is considered in the overall valuation of the related assets.
(e)
We are committed to fund the remaining unused balances on home equity lines of credit for certain home equity loans sold into securitization structures (both on- and off-balance sheet structures) if certain deal-specific triggers are met. At December 31, 2011, the commitments to fund home equity lines of credit in off-balance sheet securitizations represented $802 million of the total unfunded commitments of $2.2 billion.
(f)
The unused portion of revolving lines of credit reset at prevailing market rates and, as such, approximate market value.
The mortgage-lending and revolving credit line commitments contain an element of credit risk. Management reduces its credit risk for unused mortgage-lending and unused revolving credit line commitments by applying the same credit policies in making commitments as it does for extending loans. We typically require collateral as these commitments are drawn.
Lease Commitments
Future minimum rental payments required under operating leases, primarily for real property, with noncancelable lease terms expiring after December 31, 2011, are as follows.
Year ended December 31, ($ in millions)
  
2012
$
83

2013
69

2014
60

2015
42

2016
25

2017 and thereafter
37

Total minimum payment required
$
316

Certain of the leases contain escalation clauses and renewal or purchase options. Rental expenses under operating leases were $105 million, $97 million, and $104 million in 2011, 2010, and 2009, respectively.
Contractual Commitments
We have entered into multiple agreements for information technology, marketing and advertising, and voice and communication technology and maintenance. Many of the agreements are subject to variable price provisions, fixed or minimum price provisions, and termination or renewal provisions.
Year ended December 31, ($ in millions)
  
2012
$
291

2013 and 2014
418

2015 and 2016
47

2017 and thereafter
21

Total future payment obligations
$
777