General Motors 2010 Annual Report Download - page 267

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In the period July 10, 2009 through December 31, 2009, outstanding warrants to purchase 272 million shares of common stock
were not included in the computation of diluted loss per share because the effect would have been antidilutive and RSUs were
excluded from the computation of diluted earnings per share as these awards were payable in cash during that time. At December 31,
2009 there were 1 million RSUs outstanding.
In the year ended December 31, 2010 and the period July 10, 2009 through December 31, 2009 the Adjustment Shares were
excluded from the computation of basic and diluted earnings per share as the condition that would result in the issuance of the
Adjustment Shares was not satisfied.
The 61 million shares of common stock contributed to our pension plan in January 2011 will not be included in the computation of
earnings per share until they meet the criteria to qualify as plan assets for accounting purposes.
Old GM
In the period January 1, 2009 through July 9, 2009 diluted earnings per share included the potential effect of the assumed exercise
of certain stock options. Old GM excluded 208 million of stock options and warrants in the computation of diluted earnings per share
because the exercise price was greater than the average market price of the common shares.
Due to Old GM’s net losses in the year ended December 31, 2008, the assumed exercise of stock options and warrants had an
antidilutive effect and therefore was excluded from the computation of diluted loss per share. Old GM excluded 101 million such
options and warrants in the computation of diluted loss per share.
No shares potentially issuable to satisfy the in-the-money amount of Old GM’s convertible debentures have been included in the
computation of diluted income (loss) per share for the period January 1, 2009 through July 9, 2009 and in the year ended
December 31, 2008 as the conversion options in various series of convertible debentures were not in-the-money.
Note 31. Stock Incentive Plans
Consolidated
GM
Our stock incentive plans consist of the 2009 Long-Term Incentive Plan as amended December 22, 2010 (2009 GMLTIP) and the
Salary Stock Plan as amended October 5, 2010 (GMSSP). Both plans are administered by the Executive Compensation Committee of
our Board of Directors. The aggregate number of shares with respect to which awards may be granted under these plans shall not
exceed 75 million.
The following table summarizes compensation expense and total Income tax expense recorded for our stock incentive plans (dollars
in millions):
Successor
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
Compensation expense (a) ........................................................ $235 $23
Income tax expense (b) ........................................................... $ — $ 8
(a) Includes an insignificant amount of restricted stock granted in December 2010.
(b) Income tax expense does not include U.S. and non-U.S. jurisdictions which have full valuation allowances.
General Motors Company 2010 Annual Report 265