General Motors 2011 Annual Report Download - page 165

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes activity of the total amounts of unrecognized tax benefits (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
Beginning balance ................................... $5,169 $5,410 $4,096 $2,803
Additions to current year tax positions . . . . . . . . . . . . . . . . . . . 129 195 1,454 1,493
Additions to prior years’ tax positions . . . . . . . . . . . . . . . . . . . 562 803 22 594
Reductions to current year tax positions .................. — — (44) (25)
Reductions to prior years’ tax positions .................. (1,002) (475) (128) (626)
Reductions in tax positions due to lapse of statutory
limitations ....................................... (64) (18) — (281)
Settlements ........................................ (2,399) (761) (111) (16)
Other ............................................. (25) 15 121 154
Ending balance ..................................... $2,370 $5,169 $5,410 $4,096
The following tables summarize information regarding income tax related interest and penalties (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
Interestincome ..................................... $ 7 $13 $— $249
Interest expense (benefit) (a) .......................... $(113) $20 $30 $ (31)
Penalties (a) ....................................... $ (25) $ 1 $— $ 30
(a) The interest and penalty benefit for the year ended December 31, 2011 is due primarily to remeasurements, settlements and
statute expirations.
Successor
December 31, 2011 December 31, 2010
Accrued interest payable .......................................................... $103 $250
Accruedpenalties ............................................................... $ 89 $119
Other Matters
Most of the tax attributes generated by Old GM and its domestic and foreign subsidiaries (net operating loss carryforwards and
various income tax credits) survived the Chapter 11 Proceedings, and we are using or expect to use the tax attributes to reduce future
tax liabilities. The ability to utilize certain of the U.S. tax attributes in future tax periods could be limited by Section 382 of the
Internal Revenue Code. On November 1, 2010 we amended our certificate of incorporation to minimize the likelihood of an
ownership change occurring for Section 382 purposes. We have net operating loss carryforwards in Germany through November 30,
2009 that, as a result of reorganizations that took place in 2008 and 2009, were not recorded as deferred tax assets. Depending on the
outcome of European court decisions these loss carryforwards may be available to reduce future taxable income in Germany. In
Australia, we have net operating loss carryforwards which are subject to meeting a “Same Business Test” requirement that we assess
on a quarterly basis.
In the U.S., we have continuing responsibility for Old GM’s open tax years. Old GM’s federal income tax returns for 2007 and
2008 were audited by the Internal Revenue Service and the review was substantially concluded in the year ended December 31, 2011.
Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We
General Motors Company 2011 Annual Report 163