General Motors 2010 Annual Report Download - page 258

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Fair value measurements, excluding vehicles leased to rental car companies and automotive retail leases, utilized projected cash
flows discounted at a rate commensurate with the perceived business risks related to the assets involved. Fair value measurements of
vehicles leased to rental car companies utilized projected cash flows from vehicle sales at auction. Fair value measurements of
automotive retail leases utilized discounted projected cash flows from lease payments and anticipated future auction proceeds.
The following tables summarize assets measured at fair value (all of which utilized Level 3 inputs) on a nonrecurring basis
subsequent to initial recognition (dollars in millions):
GM
Successor
Year Ended
December 31,
2010 (a)
Fair Value Measurements Using
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Year Ended
December 31,
2010
Total Losses
Product-specific tooling assets ...................... $ — $— $— $ — $(240)
Vehicles leased to rental car companies ............... $537-668 $— $— $537-668 (49)
$(289)
(a) Amounts represent the fair value measure (or range of measures) during the period.
Successor
Period Ended
December 31,
2009 (a)
Fair Value Measurements Using
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
July 10, 2009
Through
December 31,
2009
Total Losses
Product-specific tooling assets ........................... $ — $— $— $ — $ (2)
Equity and cost method investments (other than Ally
Financial) ......................................... $ 1 $— $— $ 1 (4)
Vehicles leased to rental car companies (b) ................. $543 - 567 $— $— $543 - 567 (18)
Ally Financial common stock ........................... $ 970 $— $— $ 970 (270)
Intangible assets ...................................... $ — $— $— $ — (21)
$(315)
(a) Amounts represent the fair value measure (or range of measures) during the period.
(b) In the period July 10, 2009 through September 30, 2009 we recorded impairment charges of $12 million to write down vehicles
leased to rental car companies to their fair value of $543 million. In the three months ended December 31, 2009 we recorded an
impairment charge of $6 million to write down vehicles leased to rental car companies to their fair value of $567 million.
At December 31, 2009 we determined that indicators were present that suggested our investments in Ally Financial common and
preferred stock could be impaired. Such indicators included the continuing deterioration in Ally Financial’s mortgage operations, as
evidenced by the strategic actions Ally Financial took in December 2009 to position itself to sell certain mortgage assets. These
actions resulted in Ally Financial recording an increase in its provision for loan losses of $2.4 billion in the three months ended
December 31, 2009. These indicators also included Ally Financial’s receipt of $3.8 billion of additional financial support from the
UST on December 30, 2009.
256 General Motors Company 2010 Annual Report