General Motors Co | 2013 | FY | 3


Pensions and Other Postretirement Benefits

Employee Pension and Other Postretirement Benefit Plans

Defined Benefit Pension Plans

Defined benefit pension plans covering eligible U.S. hourly employees (hired prior to October 2007) and Canadian hourly employees generally provide benefits of negotiated, stated amounts for each year of service and supplemental benefits for employees who retire with 30 years of service before normal retirement age. The benefits provided by the defined benefit pension plans covering eligible U.S. (hired prior to January 1, 2001) and Canadian salaried employees and employees in certain other non-U.S. locations are generally based on years of service and compensation history. Accrual of defined pension benefits ceased on September 30, 2012 for U.S. salaried employees and on December 31, 2012 for Canadian salaried employees. There is also an unfunded nonqualified pension plan covering primarily U.S. executives for service prior to January 1, 2007 and it is based on an “excess plan” for service after that date.

Pension Contributions

The funding policy for qualified defined benefit pension plans is to contribute annually not less than the minimum required by applicable law and regulations or to directly pay benefit payments where appropriate. At December 31, 2013 all legal funding requirements had been met. We expect to contribute $100 million to our U.S. non-qualified plans and $749 million to our non-U.S. pension plans in 2014. The following table summarizes contributions made to the defined benefit pension plans (dollars in millions):
 
Years Ended December 31,
 
2013
 
2012
 
2011
U.S. hourly and salaried
$
128

 
$
2,420

 
$
1,962

Non-U.S.
886

 
855

 
836

Total
$
1,014

 
$
3,275

 
$
2,798


We made a voluntary contribution in January 2011 to our U.S. hourly and salaried defined benefit pension plans of 61 million shares of our common stock valued at $2.2 billion for funding purposes at the time of contribution. The contributed shares qualified as a plan asset for funding purposes at the time of contribution and as a plan asset valued at $1.9 billion for accounting purposes in July 2011. This was a voluntary contribution above our funding requirements for the pension plans.

We continue to pursue various options to fund and derisk our pension plans, including continued changes to the pension asset portfolio mix to reduce funded status volatility.

Other Postretirement Benefit Plans

Certain hourly and salaried defined benefit plans provide postretirement medical, dental, legal service and life insurance to eligible U.S. and Canadian retirees and their eligible dependents. Certain other non-U.S. subsidiaries have postretirement benefit plans, although most non-U.S. employees are covered by government sponsored or administered programs.

OPEB Contributions

The following table summarizes contributions to the U.S. OPEB plans (dollars in millions):
 
Years Ended December 31,
 
2013
 
2012
 
2011
Employer contributions
$
393

 
$
432

 
$
426

Plan participants' contributions
29

 
4

 
13

Total contributions
$
422

 
$
436

 
$
439


For the year ended December 31, 2011 we also contributed $1.9 billion to the independent HCT consisting of restricted cash of $782 million and notes payable of $1.1 billion.

Defined Contribution Plans

We have a defined contribution plan for eligible U.S. salaried employees. This plan provides discretionary matching contributions which we instituted in October 2009. U.S. hourly employees hired after September 2007 also participate in a defined contribution plan. Contributions are also made to certain non-U.S. defined contribution plans. We made contributions to our defined contribution plans of $502 million, $352 million and $297 million in the years ended December 31, 2013, 2012 and 2011.

Significant Plan Amendments, Benefit Modifications and Related Events

U.S. Salaried Defined Benefit Life Insurance Plan

In September 2013 we amended the U.S. salaried life insurance plan effective January 1, 2014 to eliminate benefits for retirees and eligible employees retiring on or after August 1, 2009. The remeasurement, settlement and curtailment resulted in a decrease in the OPEB liability of $319 million, a decrease in the net pre-tax actuarial loss component of Accumulated other comprehensive loss of $236 million and a pre-tax gain of $83 million.

U.S. Salaried Defined Benefit Pension Plan

In 2012 we amended the salaried pension plan to cease the accrual of additional benefits effective September 30, 2012 resulting in a curtailment of $309 million which decreased the pension liability. We divided the plan to create a new legally separate defined benefit plan primarily for active and terminated vested participants. Settlement payments of $30.6 billion were made consisting of lump-sum pension distributions of $3.6 billion to retired salaried plan participants, group annuity contracts purchased for a total annuity premium of $25.1 billion and two separate previously guaranteed obligations of $1.9 billion were settled. These agreements unconditionally and irrevocably guarantee the full payment of all annuity payments to the participants that were receiving payments from the plan and the insurance companies assumed all investment risk associated with the assets that were delivered as the annuity contract premiums.

Through these transactions we have settled certain pension obligations in their entirety resulting in a pre-tax settlement loss of $2.6 billion ($2.2 billion after tax) in Automotive cost of sales. The pre-tax loss is composed of existing losses in Accumulated other comprehensive loss of $377 million, and the premium paid to the insurance company of $2.1 billion. The tax benefit of $413 million is composed of the statutory tax benefit of $1.0 billion offset by tax expense of $596 million primarily associated with the removal of prior period income tax allocations between Accumulated other comprehensive loss and Income tax expense (benefit).

In 2012 we provided short-term, interest-free, unsecured loans of $2.2 billion to provide the plan with incremental liquidity to pay ongoing benefits and administrative costs. Contributions of $1.7 billion were made from the $2.2 billion loans. Through December 31, 2012 $430 million was repaid and $90 million of the loan was still outstanding. In the year ended December 31, 2013 $60 million was repaid and the remaining $30 million was deemed a plan contribution.

Active salaried plan participants began receiving additional contributions in the defined contribution plan in October 2012.  Lump-sum pension distributions in 2013 of $430 million resulted in a pre-tax settlement gain of $128 million

Canadian Salaried Defined Benefit Plans

In June 2012 we amended the Canadian salaried pension plan to cease the accrual of additional benefits effective December 31, 2012 and provide active employees a lump-sum distribution option at retirement. The remeasurement, amendments and offsetting curtailment increased the pension liability by $84 million. Active plan participants started receiving additional contributions in the defined contribution plan starting in January 2013.

We also amended the Canadian salaried retiree healthcare plan to eliminate post-65 healthcare benefits for employees retiring on or after July 1, 2014. In conjunction with this change we amended the plan to offer either a monthly monetary payment or an annual lump-sum cash payment to a defined contribution plan for health care in lieu of the benefit coverage provisions formerly provided under the healthcare plan. These amendments decreased the OPEB liability by $28 million.

Canadian HCT

In October 2011 pursuant to a June 2009 agreement between General Motors of Canada Limited (GMCL) and the CAW an independent HCT was implemented to provide retiree healthcare benefits to certain active and retired employees. Concurrent with the implementation of the HCT, GMCL was legally released from all obligations associated with the cost of providing retiree healthcare benefits to CAW retirees and surviving spouses by the class action process and to CAW active employees as of June 8, 2009. We accounted for the related termination of CAW hourly retiree healthcare benefits as a settlement and recorded a gain of $749 million in Automotive cost of sales. The settlement gain represents the difference between the healthcare plan obligation of $3.1 billion (as of the implementation date) and the fair value of the notes and restricted cash contributed totaling $1.9 billion, and recognition of Accumulated other comprehensive loss of $414 million.

Other Remeasurements

In March 2012 certain pension plans in GME were remeasured as part of our goodwill impairment testing, resulting in an increase of $150 million in the pension liability and a pre-tax increase in the net actuarial loss component of Accumulated other comprehensive loss.

In September 2011 a plan which provided legal services to U.S. hourly employees and retirees was remeasured as a result of our labor agreement provisions which terminated the plan effective December 31, 2013. The negotiated termination has been accounted for as a negative plan amendment resulting in a decrease in the OPEB liability and a pre-tax increase of $266 million in the prior service credit component of Accumulated other comprehensive loss was amortized through December 31, 2013.

In March 2011 certain pension plans in GME were remeasured as part of our goodwill impairment testing, resulting in a decrease of $272 million in the pension liability and a pre-tax increase in the net actuarial gain component of Accumulated other comprehensive loss.

Refer to Note 10 for additional information on our Goodwill impairment.

Pension and OPEB Obligations and Plan Assets

The following table summarizes the change in benefit obligations and related plan assets (dollars in millions):
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
 
Pension Benefits
 
Other Benefits
 
Pension Benefits
 
Other Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
Change in benefit obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning benefit obligation
$
82,110

 
$
29,301

 
$
6,271

 
$
1,528

 
$
108,562

 
$
25,765

 
$
5,822

 
$
1,490

Service cost
298

 
394

 
24

 
13

 
452

 
383

 
23

 
16

Interest cost
2,837

 
1,010

 
217

 
57

 
4,055

 
1,110

 
234

 
63

Plan participants' contributions

 
4

 
29

 
2

 

 
7

 
4

 
1

Amendments

 
(4
)
 

 
(4
)
 
(32
)
 
139

 

 
(52
)
Actuarial (gains) losses
(7,661
)
 
(1,009
)
 
(757
)
 
(210
)
 
8,432

 
2,774

 
622

 
13

Benefits paid
(5,719
)
 
(1,683
)
 
(422
)
 
(53
)
 
(8,422
)
 
(1,551
)
 
(436
)
 
(55
)
Foreign currency translation adjustments

 
(528
)
 

 
(98
)
 

 
682

 

 
30

Business combinations

 
128

 

 

 

 

 

 

Curtailments, settlements and other
(385
)
 
(85
)
 
(252
)
 
3

 
(30,937
)
 
(8
)
 
2

 
22

Ending benefit obligation
71,480

 
27,528

 
5,110

 
1,238

 
82,110

 
29,301

 
6,271

 
1,528

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning fair value of plan assets
68,085

 
15,541

 

 

 
94,349

 
14,541

 

 

Actual return on plan assets
2,107

 
988

 

 

 
10,332

 
1,344

 

 

Employer contributions
128

 
886

 
393

 
51

 
2,420

 
855

 
432

 
54

Plan participants' contributions

 
4

 
29

 
2

 

 
7

 
4

 
1

Benefits paid
(5,719
)
 
(1,683
)
 
(422
)
 
(53
)
 
(8,422
)
 
(1,551
)
 
(436
)
 
(55
)
Foreign currency translation adjustments

 
(692
)
 

 

 

 
389

 

 

Business combinations

 
26

 

 

 

 

 

 

Settlements
(435
)
 
(87
)
 

 

 
(30,629
)
 
(207
)
 

 

Other

 
3

 

 

 
35

 
163

 

 

Ending fair value of plan assets
64,166

 
14,986

 

 

 
68,085

 
15,541

 

 

Ending funded status
$
(7,314
)
 
$
(12,542
)
 
$
(5,110
)
 
$
(1,238
)
 
$
(14,025
)
 
$
(13,760
)
 
$
(6,271
)
 
$
(1,528
)
Amounts recorded in the consolidated balance sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-current assets
$

 
$
137

 
$

 
$

 
$

 
$
73

 
$

 
$

Current liabilities
(131
)
 
(379
)
 
(368
)
 
(83
)
 
(95
)
 
(343
)
 
(406
)
 
(84
)
Non-current liabilities
(7,183
)
 
(12,300
)
 
(4,742
)
 
(1,155
)
 
(13,930
)
 
(13,490
)
 
(5,865
)
 
(1,444
)
Net amount recorded
$
(7,314
)
 
$
(12,542
)
 
$
(5,110
)
 
$
(1,238
)
 
$
(14,025
)
 
$
(13,760
)
 
$
(6,271
)
 
$
(1,528
)
Amounts recorded in Accumulated other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss)
$
4,747

 
$
(3,379
)
 
$
(542
)
 
$
47

 
$
(1,434
)
 
$
(4,786
)
 
$
(1,573
)
 
$
(188
)
Net prior service (cost) credit
38

 
(87
)
 
19

 
91

 
42

 
(111
)
 
135

 
118

Total recorded in Accumulated other comprehensive loss
$
4,785

 
$
(3,466
)
 
$
(523
)
 
$
138

 
$
(1,392
)
 
$
(4,897
)
 
$
(1,438
)
 
$
(70
)


The following table summarizes the total accumulated benefit obligations (ABO), the fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the projected benefit obligation (PBO) and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets (dollars in millions):
 
December 31, 2013
 
December 31, 2012
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
ABO
$
71,461

 
$
27,069

 
$
82,103

 
$
28,880

Plans with ABO in excess of plan assets
 
 
 
 
 
 
 
ABO
$
71,461

 
$
25,897

 
$
82,103

 
$
28,156

Fair value of plan assets
$
64,166

 
$
13,663

 
$
68,085

 
$
14,702

Plans with PBO in excess of plan assets
 
 
 
 
 
 
 
PBO
$
71,480

 
$
26,788

 
$
82,110

 
$
28,537

Fair value of plan assets
$
64,166

 
$
14,109

 
$
68,085

 
$
14,704



The following table summarizes the components of net periodic pension and OPEB expense along with the assumptions used to determine benefit obligations (dollars in millions):
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Pension Benefits
 
Other Benefits
 
Pension Benefits
 
Other Benefits
 
Pension Benefits
 
Other Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
Components of expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
395

 
$
425

 
$
24

 
$
13

 
$
590

 
$
411

 
$
23

 
$
16

 
$
632

 
$
399

 
$
23

 
$
30

Interest cost
2,837

 
1,010

 
217

 
57

 
4,055

 
1,110

 
234

 
63

 
4,915

 
1,215

 
265

 
186

Expected return on plan assets
(3,562
)
 
(823
)
 

 

 
(5,029
)
 
(870
)
 

 

 
(6,692
)
 
(925
)
 

 

Amortization of prior service cost (credit)
(4
)
 
19

 
(116
)
 
(14
)
 
(1
)
 
1

 
(116
)
 
(12
)
 
(2
)
 
(2
)
 
(39
)
 
(9
)
Recognized net actuarial loss
6

 
208

 
85

 
6

 
2

 
35

 
52

 
6

 

 

 
6

 

Curtailments, settlements and other (gains) losses
(77
)
 
(6
)
 
(62
)
 

 
2,580

 
71

 

 
11

 
(23
)
 
(7
)
 

 
(749
)
Net periodic pension and OPEB expense (income)
$
(405
)
 
$
833

 
$
148

 
$
62

 
$
2,197

 
$
758

 
$
193

 
$
84

 
$
(1,170
)
 
$
680

 
$
255

 
$
(542
)
Weighted-average assumptions used to determine benefit obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.46
%
 
4.10
%
 
4.52
%
 
4.71
%
 
3.59
%
 
3.70
%
 
3.68
%
 
3.97
%
 
4.15
%
 
4.50
%
 
4.24
%
 
4.37
%
Rate of compensation increase(a)
N/A

 
2.90
%
 
N/A

 
4.21
%
 
N/A

 
2.77
%
 
4.50
%
 
4.21
%
 
4.50
%
 
3.11
%
 
4.50
%
 
4.20
%
Weighted-average assumptions used to determine net expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.59
%
 
3.69
%
 
3.69
%
 
3.97
%
 
4.06
%
 
4.45
%
 
4.24
%
 
4.31
%
 
4.96
%
 
5.16
%
 
5.05
%
 
5.01
%
Expected rate of return on plan assets
5.77
%
 
5.70
%
 
N/A

 
N/A

 
6.18
%
 
6.20
%
 
N/A

 
N/A

 
8.00
%
 
6.50
%
 
N/A

 
N/A

Rate of compensation increase(a)
N/A

 
2.77
%
 
4.50
%
 
4.21
%
 
4.50
%
 
3.15
%
 
4.50
%
 
4.21
%
 
3.96
%
 
3.25
%
 
4.50
%
 
4.42
%
_________
(a)
As a result of ceasing the accrual of additional benefits for salaried plan participants, the rate of compensation increase does not have a significant effect on our U.S. pension and OPEB plans.

U.S. pension plan service cost includes administrative expenses of $97 million, $138 million and $138 million in the years ended December 31, 2013, 2012 and 2011. Weighted-average assumptions used to determine net expense are determined at the beginning of the period and updated for remeasurements. Non-U.S. pension plan service cost includes administrative expenses of $31 million and $28 million in the years ended December 31, 2013 and 2012.

The following table summarizes estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2014 based on December 31, 2013 plan measurements (dollars in millions):
 
U.S. Pension Plans
 
Non-U.S. Pension Plans
 
U.S. Other Benefit Plans
 
Non-U.S. Other Benefit Plans
Amortization of prior service cost (credit)
$
(4
)
 
$
19

 
$
(2
)
 
$
(14
)
Amortization of net actuarial (gain) loss
(91
)
 
159

 
14

 
(6
)
 
$
(95
)
 
$
178

 
$
12

 
$
(20
)


Assumptions

Investment Strategies and Long-Term Rate of Return

Detailed periodic studies conducted by outside actuaries and an internal asset management group are used to determine the long-term strategic mix among asset classes, risk mitigation strategies, and the expected long-term return on asset assumptions for the U.S. pension plans. The U.S. study includes a review of alternative asset allocation and risk mitigation strategies, anticipated future long-term performance and risk of the individual asset classes that comprise the plans' asset mix. Similar studies are performed for the significant non-U.S. pension plans with the assistance of outside actuaries and asset managers. While the studies incorporate data from recent plan performance and historical returns, the expected long-term return on plan asset assumptions are determined based on long-term, prospective rates of return.

The strategic asset mix and risk mitigation strategies for the plans are tailored specifically for each plan. Individual plans have distinct liabilities, liquidity needs, and regulatory requirements. Consequently, there are different investment policies set by individual plan fiduciaries. Although investment policies and risk mitigation strategies may differ among plans, each investment strategy is considered to be appropriate in the context of the specific factors affecting each plan.

In setting new strategic asset mixes, consideration is given to the likelihood that the selected mixes will effectively fund the projected pension plan liabilities, while aligning with the risk tolerance of the plans' fiduciaries. The strategic asset mixes for U.S. defined benefit pension plans are increasingly designed to satisfy the competing objectives of improving funded positions (market value of assets equal to or greater than the present value of the liabilities) and mitigating the possibility of a deterioration in funded status.

Derivatives may be used to provide cost effective solutions for rebalancing investment portfolios, increasing or decreasing exposure to various asset classes and for mitigating risks, primarily interest rate and currency risks. Equity and fixed income managers are permitted to utilize derivatives as efficient substitutes for traditional physical securities. Interest rate derivatives may be used to adjust portfolio duration to align with a plan's targeted investment policy. Alternative investment managers are permitted to employ leverage, including through the use of derivatives, which may alter economic exposure.

In December 2013 an investment policy study was completed for the U.S. pension plans. The study resulted in new target asset allocations being approved for the U.S. pension plans with resulting changes to the expected long-term rate of return on assets. The weighted-average long-term rate of return on assets increased from 5.8% at December 31, 2012 to 6.5% at December 31, 2013 due primarily to higher yields on fixed income securities. The expected long-term rate of return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans.

Target Allocation Percentages

The following table summarizes the target allocations by asset category for U.S. and non-U.S. defined benefit pension plans:
 
December 31, 2013
 
December 31, 2012
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
 
Non-U.S. Plans
Asset Categories
 
 
 
 
 
 
 
Equity
19
%
 
28
%
 
19
%
 
30
%
Debt
58
%
 
49
%
 
60
%
 
53
%
Other(a)
23
%
 
23
%
 
21
%
 
17
%
Total
100
%
 
100
%
 
100
%
 
100
%

__________
(a)
Primarily includes private equity, real estate and absolute return strategies which mainly consist of hedge funds.

Assets and Fair Value Measurements

The following tables summarize the fair value of defined benefit pension plan assets by asset class (dollars in millions):
 
Fair Value Measurements of U.S. Plan Assets at December 31, 2013
 
Fair Value Measurements of Non-U.S. Plan Assets at December 31, 2013
 
Total U.S. and Non-U.S. Plan Assets
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents and other short-term investments
$

 
$
411

 
$

 
$
411

 
$

 
$
156

 
$

 
$
156

 
$
567

Common and preferred stocks(a)
10,234

 
70

 
6

 
10,310

 
1,816

 
6

 

 
1,822

 
12,132

Government and agency debt securities(b)

 
14,971

 

 
14,971

 

 
3,418

 

 
3,418

 
18,389

Corporate debt securities(c)

 
20,409

 
58

 
20,467

 

 
2,410

 
12

 
2,422

 
22,889

Mortgage and asset-backed securities

 
238

 
72

 
310

 

 
65

 
2

 
67

 
377

Investment funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity funds
72

 
190

 
44

 
306

 
128

 
1,930

 

 
2,058

 
2,364

Fixed income funds
27

 
8

 
113

 
148

 

 
927

 
12

 
939

 
1,087

Funds of hedge funds

 

 
4,285

 
4,285

 

 

 
733

 
733

 
5,018

Other investment funds

 
820

 
732

 
1,552

 

 
672

 

 
672

 
2,224

Private equity and debt investments(d)

 

 
6,335

 
6,335

 

 

 
430

 
430

 
6,765

Real estate investments(e)
390

 
4

 
4,127

 
4,521

 
13

 
12

 
1,405

 
1,430

 
5,951

Other investments

 

 
62

 
62

 

 

 
618

 
618

 
680

Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
5

 
46

 

 
51

 
1

 
1

 

 
2

 
53

Foreign exchange and other contracts
12

 
111

 

 
123

 
2

 
43

 

 
45

 
168

Total assets
10,740

 
37,278

 
15,834

 
63,852

 
1,960

 
9,640

 
3,212

 
14,812

 
78,664

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
(22
)
 
(213
)
 
(6
)
 
(241
)
 
(12
)
 

 

 
(12
)
 
(253
)
Foreign exchange and other contracts

 
(98
)
 

 
(98
)
 

 
(56
)
 

 
(56
)
 
(154
)
Total liabilities
(22
)
 
(311
)
 
(6
)
 
(339
)
 
(12
)
 
(56
)
 

 
(68
)
 
(407
)
Net plan assets subject to leveling
$
10,718

 
$
36,967

 
$
15,828

 
63,513

 
$
1,948

 
$
9,584

 
$
3,212

 
14,744

 
78,257

Other plan assets and liabilities(g)
 
 
 
 
 
 
653

 
 
 
 
 
 
 
242

 
895

Net Plan Assets
 
 
 
 
 
 
$
64,166

 
 
 
 
 
 
 
$
14,986

 
$
79,152


 
Fair Value Measurements of U.S. Plan Assets at December 31, 2012
 
Fair Value Measurements of Non-U.S. Plan Assets at December 31, 2012
 
Total U.S. and Non-U.S. Plan Assets
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents and other short-term investments
$

 
$
551

 
$

 
$
551

 
$

 
$
151

 
$

 
$
151

 
$
702

Common and preferred stocks(a)
9,663

 
26

 
19

 
9,708

 
2,227

 

 

 
2,227

 
11,935

Government and agency debt securities(b)

 
17,835

 

 
17,835

 

 
3,722

 

 
3,722

 
21,557

Corporate debt securities(c)

 
19,116

 
77

 
19,193

 

 
2,596

 
2

 
2,598

 
21,791

Mortgage and asset-backed securities

 
1,804

 
105

 
1,909

 

 
54

 
3

 
57

 
1,966

Investment funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity funds
66

 
253

 
195

 
514

 
212

 
2,009

 

 
2,221

 
2,735

Fixed income funds
16

 
498

 
190

 
704

 

 
1,046

 
14

 
1,060

 
1,764

Funds of hedge funds

 

 
3,768

 
3,768

 

 

 
627

 
627

 
4,395

Other investment funds

 
837

 
806

 
1,643

 

 
35

 

 
35

 
1,678

Private equity and debt investments(d)

 

 
6,400

 
6,400

 

 

 
381

 
381

 
6,781

Real estate investments(e)
412

 

 
4,335

 
4,747

 
19

 
31

 
1,422

 
1,472

 
6,219

Other investments

 

 
63

 
63

 

 

 
665

 
665

 
728

Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
15

 
1,553

 

 
1,568

 

 

 

 

 
1,568

Foreign exchange and other contracts
6

 
124

 
1

 
131

 
2

 
40

 

 
42

 
173

Total assets
10,178

 
42,597

 
15,959

 
68,734

 
2,460

 
9,684

 
3,114

 
15,258

 
83,992

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage and asset-backed securities(f)

 
(15
)
 

 
(15
)
 

 

 

 

 
(15
)
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
(21
)
 
(977
)
 
(8
)
 
(1,006
)
 
(4
)
 

 

 
(4
)
 
(1,010
)
Foreign exchange and other contracts
(4
)
 
(123
)
 
(1
)
 
(128
)
 
(1
)
 
(36
)
 

 
(37
)
 
(165
)
Total liabilities
(25
)
 
(1,115
)
 
(9
)
 
(1,149
)
 
(5
)
 
(36
)
 

 
(41
)
 
(1,190
)
Net plan assets subject to leveling
$
10,153

 
$
41,482

 
$
15,950

 
67,585

 
$
2,455

 
$
9,648

 
$
3,114

 
15,217

 
82,802

Other plan assets and liabilities(g)
 
 
 
 
 
 
500

 
 
 
 
 
 
 
324

 
824

Net Plan Assets
 
 
 
 
 
 
$
68,085

 
 
 
 
 
 
 
$
15,541

 
$
83,626

__________
(a)
Includes GM common stock of $2 million and $1.4 billion in Level 1 of U.S. plan assets at December 31, 2013 and 2012.
(b)
Includes U.S. and sovereign government and agency issues. Excludes mortgage and asset-backed securities.
(c)
Includes bank debt obligations.
(d)
Includes private equity investment funds.
(e)
Includes investment funds and public real estate investment trusts.
(f)
Primarily investments sold short.
(g)
Cash held by the plans, net of amounts receivable/payable for unsettled security transactions and payables for investment manager fees, custody fees and other expenses.

The following tables summarize the activity for U.S. plan assets measured at fair value using Level 3 inputs (dollars in millions):
 
Balance at January 1, 2013
 
Net Realized/Unrealized
Gains (Losses)
 
Purchases, Sales and
Settlements, Net
 
Transfers Into/Out of Level 3
 
Balance at December 31, 2013
 
Change in Unrealized Gains/(Losses) Attributable to Assets Held at
December 31, 2013
Assets
 
 
 
 
 
 
 
 
 
 
 
Common and preferred stocks
$
19

 
$
3

 
$
(16
)
 
$

 
$
6

 
$
1

Corporate debt securities
77

 
5

 
(24
)
 

 
58

 
(2
)
Mortgage and asset-backed securities
105

 
1

 
(34
)
 

 
72

 
(1
)
Investment funds
 
 
 
 
 
 
 
 
 
 
 
Equity funds
195

 
(3
)
 
(148
)
 

 
44

 

Fixed income funds
190

 
17

 
(94
)
 

 
113

 
11

Funds of hedge funds
3,768

 
498

 
19

 

 
4,285

 
497

Other investment funds
806

 
40

 
(114
)
 

 
732

 
29

Private equity and debt investments
6,400

 
926

 
(991
)
 

 
6,335

 
436

Real estate investments
4,335

 
458

 
(666
)
 

 
4,127

 
190

Other investments
63

 
(2
)
 
1

 

 
62

 
(2
)
Total assets
15,958

 
1,943

 
(2,067
)
 

 
15,834

 
1,159

Derivatives, net
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
(8
)
 
2

 

 

 
(6
)
 
1

Total net assets
$
15,950

 
$
1,945

 
$
(2,067
)
 
$

 
$
15,828

 
$
1,160

 
Balance at January 1, 2012
 
Net Realized/Unrealized
Gains (Losses)
 
Purchases, Sales and
Settlements, Net
 
Transfers Into/Out of Level 3
 
Balance at December 31, 2012
 
Change in Unrealized Gains/(Losses) Attributable to Assets Held at
December 31, 2012
Assets
 
 
 
 
 
 
 
 
 
 
 
Common and preferred stocks
$
46

 
$
1

 
$
(25
)
 
$
(3
)
 
$
19

 
$
3

Government and agency debt securities
3

 
(1
)
 
(2
)
 

 

 

Corporate debt securities
352

 
1

 
(258
)
 
(18
)
 
77

 
(35
)
Mortgage and asset-backed securities
197

 
34

 
(120
)
 
(6
)
 
105

 
24

Group annuity contracts
3,209

 
77

 
(3,286
)
 

 

 

Investment funds
 
 
 
 
 
 
 
 
 
 
 
Equity funds
521

 
51

 
(414
)
 
37

 
195

 
18

Fixed income funds
1,210

 
47

 
(1,067
)
 

 
190

 
(3
)
Funds of hedge funds
5,918

 
310

 
(2,460
)
 

 
3,768

 
239

Other investment funds
2,270

 
55

 
(1,531
)
 
12

 
806

 
(2
)
Private equity and debt investments
8,444

 
1,022

 
(3,038
)
 
(28
)
 
6,400

 
154

Real estate investments
5,092

 
198

 
(955
)
 

 
4,335

 
(80
)
Other investments

 

 
63

 

 
63

 

Total assets
27,262

 
1,795

 
(13,093
)
 
(6
)
 
15,958

 
318

Derivatives, net
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
7

 
3

 
(14
)
 
(4
)
 
(8
)
 
(1
)
Foreign exchange and other contracts
(6
)
 
1

 
5

 

 

 

Total net assets
$
27,263

 
$
1,799

 
$
(13,102
)
 
$
(10
)
 
$
15,950

 
$
317


The following tables summarize the activity for non-U.S. plan assets measured at fair value using Level 3 inputs (dollars in millions):
 
Balance at January 1, 2013
 
Net Realized/Unrealized
Gains (Losses)
 
Purchases, Sales and
Settlements, Net
 
Transfers Into/Out of Level 3
 
Effect of Foreign Currency
 
Balance at December 31, 2013
 
Change in Unrealized Gains/(Losses) Attributable to Assets Held at
December 31, 2013
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
$
2

 
$
1

 
$
8

 
$
1

 
$

 
$
12

 
$
1

Mortgage and asset-backed securities
3

 

 
(1
)
 

 

 
2

 

Investment funds
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income funds
14

 
(1
)
 
(1
)
 

 

 
12

 

Funds of hedge funds
627

 
111

 
28

 

 
(33
)
 
733

 
112

Private equity and debt investments
381

 
73

 
3

 

 
(27
)
 
430

 
53

Real estate investments
1,422

 
103

 
(57
)
 

 
(63
)
 
1,405