General Motors 2010 Annual Report Download - page 144

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Noncontrolling Interests
We recorded the fair value of our Noncontrolling interests at $408 million which was $156 million higher than Old GM.
363 Sale and Fresh-Start Reporting Adjustments
The following table summarizes Old GM’s Reorganization gains, net, arising from the 363 Sale and fresh-start reporting that
primarily resulted from the adjustments previously discussed (dollars in millions):
Predecessor
January 1, 2009
Through
July 9, 2009
Change in net assets resulting from the application of fresh-start reporting ................................... $ 33,829
Fair value of New GM’s Series A Preferred Stock, common shares and warrants issued in 363 Sale ............... 20,532
Gain from the conversion of debt owed to UST to equity ................................................. 31,561
Gain from the conversion of debt owed to EDC to equity ................................................. 5,964
Gain from the modification and measurement of our VEBA obligation ...................................... 7,731
Gain from the modification and measurement of other employee benefit plans ................................ 4,585
Gain from the settlement of net liabilities retained by MLC via the 363 Sale .................................. 25,177
Income tax benefit for release of valuation allowances and other tax adjustments .............................. 710
Other 363 Sale adjustments ......................................................................... (21)
Total adjustment from 363 Sale Transaction and fresh-start reporting ....................................... 130,068
Adjustment recorded to Income tax benefit for release of valuation allowances and other tax adjustments ........... (710)
Other losses, net ................................................................................. (1,203)
Total Reorganization gains, net ..................................................................... $128,155
Other losses, net of $1.2 billion primarily relate to costs incurred during our Chapter 11 Proceedings, including:
• Losses of $958 million on extinguishments of debt resulting from Old GM’s repayment of its secured revolving credit facility,
its U.S. term loan, and its secured credit facility;
• Losses of $398 million on contract rejections, settlements of claims and other lease terminations;
• Professional fees of $38 million; and
• Gain of $247 million related to the release of Accumulated other comprehensive income (loss) associated with previously
designated derivative financial instruments.
Note 3. Basis of Presentation
Principles of Consolidation
The consolidated financial statements include our accounts and those of our subsidiaries that we control due to ownership of a
majority voting interest. We continually evaluate our involvement with variable interest entities (VIEs) to determine whether we have
variable interests and are the primary beneficiary of the VIE. When this criteria is met, we are required to consolidate the VIE. Our
share of earnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of
accounting when we are able to exercise significant influence over the operating and financial decisions of the affiliate. We use the
cost method of accounting if we are not able to exercise significant influence over the operating and financial decisions of the affiliate.
All intercompany balances and transactions have been eliminated in consolidation. Old GM utilized the same principles of
consolidation in its consolidated financial statements.
142 General Motors Company 2010 Annual Report