Commitments And Contingencies

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [abstract]

Commitments And Contingencies

Commitments and Contingencies

Leases

Our credit centers are generally leased for terms of up to seven years with certain rights to extend for additional periods. We also lease space for our administrative offices, Canadian operations and portfolio servicing activities under leases with terms up to twelve years with renewal options. Certain leases contain lease escalation clauses for real estate taxes and other operating expenses and renewal option clauses calling for increased rents.

A summary of lease expense is as follows (in thousands):

	Successor						Predecessor
	For the Year Ended December 31, 2012		For the Year Ended December 31, 2011		Period From October 1, 2010 Through December 31, 2010		Period From July 1, 2010 Through September 30, 2010		For the Year Ended June 30, 2010
Lease expense	$	12,639	$	11,943	$	2,710	$	2,788	$	12,948

Operating lease commitments for years ending December 31 are as follows (in thousands):

2013	$	15,194
2014	14,547
2015	12,761
2016	11,538
2017	9,714
Thereafter	11,283
	$	75,037

Concentrations of Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions and highly rated investments in guaranteed investment contracts. The counterparties to our derivative financial instruments are various major financial institutions.

Consumer finance receivables represent contracts with consumers residing throughout the United States and, to a limited extent, in Canada, with borrowers located in Texas accounting for 15% of the portfolio as of December 31, 2012. No other state accounted for more than 10% of consumer finance receivables. As of December 31, 2012, all of our commercial finance receivables represent loans to GM-franchised dealerships and their affiliates.

Guarantees of Indebtedness

The payments of principal and interest on our senior notes are guaranteed by our principal operating subsidiary. As of December 31, 2012 and 2011, the par value of the senior notes was $1,500.0 million and $500.0 million, respectively. See Note 23 – "Guarantor Consolidating Financial Statements".

Legal Proceedings

As a consumer finance company, we are subject to various consumer claims and litigation seeking damages and statutory penalties, based upon, among other things, usury, disclosure inaccuracies, wrongful repossession, violations of bankruptcy stay provisions, certificate of title disputes, fraud, breach of contract and discriminatory treatment of credit applicants. Some litigation against us could take the form of class action complaints by consumers and/or shareholders. As the assignee of finance contracts originated by dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against dealers. The damages and penalties claimed by consumers in these types of matters can be substantial. The relief requested by the plaintiffs varies but can include requests for compensatory, statutory and punitive damages. We believe that we have taken prudent steps to address and mitigate the litigation risks associated with our business activities. However, any adverse resolution of litigation pending or threatened against us could have a material affect on our financial condition, liquidity and results of operations. With respect to its current litigation, at this time, we believe that the possibility of a material judgment adverse to us is remote and no estimate of range can be made for loss contingencies that are at least reasonably possible but not accrued.