General Motors 2011 Annual Report Download - page 161

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Income Tax Expense (Benefit)
The following table summarizes Income tax expense (benefit) (dollars in millions):
Successor Predecessor
Year Ended
December 31, 2011
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
Current income tax expense (benefit)
U.S. federal ...................................... $(134) $ (10) $ 7 $ (60)
Non-U.S. ....................................... 275 441 421 (522)
U.S.stateandlocal ................................ 58 (1) (1) 16
Totalcurrent ..................................... 199 430 427 (566)
Deferred income tax expense (benefit)
U.S. federal ...................................... 8 (25) (1,204) 110
Non-U.S. ....................................... (289) 259 (52) (716)
U.S. state and local ................................ (28) 8 (171) 6
Total deferred .................................... (309) 242 (1,427) (600)
Total income tax expense (benefit) .................... $(110) $672 $(1,000) $(1,166)
Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax
returns.
Provisions are made for estimated U.S. and non-U.S. income taxes, less available tax credits and deductions, which may be incurred
on the remittance of our and Old GM’s share of basis differences in investments in foreign subsidiaries and corporate joint ventures
not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments in foreign subsidiaries and
corporate joint ventures which are deemed indefinitely reinvested of $6.2 billion and $6.9 billion at December 31, 2011 and 2010.
Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable.
The following table summarizes a reconciliation of Income tax expense (benefit) compared with the amounts at the U.S. federal
statutory rate (dollars in millions):
Successor Predecessor
Year Ended
December 31, 2011
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
Tax at U.S. federal statutory income tax rate ............. $2,094 $ 2,008 $(1,849) $ 37,721
State and local tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 334 (559) (260)
Foreign income taxed at other than 35% . . . . . . . . . . . . . . . . 243 1,579 64 (119)
Taxes on unremitted earnings of subsidiaries ............ (537) (10) (151) (12)
Change in valuation allowance ....................... (2,386) (2,903) 1,338 6,609
Change in tax laws ................................. (33) — 163 1
Research and development incentives .................. (45) (235) (14) (113)
Gain on sale of Delphi equity interests . . . . . . . . . . . . . . . . . 599 — — —
Goodwillimpairment ............................... 377 — — —
Settlements of prior year tax matters ................... (56) (170) — —
VEBA contribution ................................ (476) — (328) —
Non-taxable reorganization gain ...................... — — — (45,564)
Foreign currency remeasurement . . . . . . . . . . . . . . . . . . . . . . 59 143 340 207
Pension contribution ................................ (127) — — —
Other adjustments .................................. (37) (74) (4) 364
Total income tax expense (benefit) .................... $ (110) $ 672 $(1,000) $ (1,166)
General Motors Company 2011 Annual Report 159