General Motors 2011 Annual Report Download - page 101

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(a) Includes goodwill of $61 million recorded in the GMNA reporting unit that arises from the difference between the economic
value of long-term employee related liabilities and their recorded amounts at the time of acquisition and deferred taxes. The total
amount of goodwill deductible for tax purposes is expected to be $398 million. The difference between book goodwill and tax
goodwill results from different allocations for tax purposes than that utilized for book purposes.
Since we and Old GM historically accounted for a significant portion of Nexteer’s and the four domestic facilities’ sales and
because we were providing subsidies to Delphi related to these facilities, the acquisition of these businesses did not have a significant
effect on our consolidated financial results as the costs associated with these facilities have been recorded as inventory costs and
recorded in Automotive cost of sales. We did not provide pro forma financial information because we do not believe this information
would be material given the intercompany nature of Nexteer and the four domestic facilities sales activity. Refer to Note 20 for
additional information on the Nexteer acquisition.
In March 2011 we sold our Class A Membership Interest in New Delphi for $3.8 billion. Refer to Note 10 for additional
information.
Saab Bankruptcy and Sale
In February 2009 Saab Automobile AB (Saab), part of our GME segment, filed for protection under the reorganization laws of
Sweden. Old GM determined that the reorganization proceeding resulted in a loss of the elements of control necessary for
consolidation and therefore Old GM deconsolidated Saab in February 2009. Old GM recorded a loss of $824 million in Other
automotive expenses, net related to the deconsolidation. The loss reflected the remeasurement of Old GM’s net investment in Saab to
its estimated fair value of $0, costs associated with commitments and obligations to suppliers and others, and a commitment to
provide up to $150 million of debtor-in-possession (DIP) financing. We acquired Old GM’s investment in Saab in connection with the
363 Sale. In August 2009 Saab exited its reorganization proceeding, and we regained the elements of control and consolidated Saab at
an insignificant fair value.
In February 2010 we completed the sale of Saab and in May 2010 we completed the sale of Saab Automobile GB to Spyker Cars
NV. Of the negotiated cash purchase price of $74 million, we received $50 million at closing and received the remainder in July 2010.
We also received preference shares in Saab with a face value of $326 million and an estimated fair value that is insignificant and
received $114 million as repayment of the DIP financing that we provided to Saab during 2009. In the year ended December 31, 2010
we recorded a gain of $123 million in Interest income and other non-operating income, net reflecting cash received of $166 million
less net assets with a book value of $43 million.
Note 5. Finance Receivables, net
Automotive Financing — GM Financial
The following table summarizes the components of Finance receivables, net (dollars in millions):
Successor
December 31, 2011 December 31, 2010
Pre-acquisition finance receivables, outstanding balance ................................. $4,366 $7,724
Less: carrying amount adjustment .................................................. (339) (425)
Pre-acquisition finance receivables, carrying amount ................................... 4,027 7,299
Post-acquisition finance receivables, net of fees ....................................... 5,314 924
Total finance receivables ......................................................... 9,341 8,223
Less: allowance for loan losses on post-acquisition finance receivables ..................... (179) (26)
Total finance receivables, net ...................................................... $9,162 $8,197
General Motors Company 2011 Annual Report 99