General Motors 2012 Annual Report Download - page 155

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At December 31, 2011, as a result of sustained profitability in Australia, we released the valuation allowance against deferred tax
assets. The reduction in the valuation allowance resulted in a non-cash income tax benefit of $502 million.
Uncertain Tax Positions
The following table summarizes gross unrecognized tax benefits before valuation allowances and the amount that would favorably
affect the effective tax rate in future periods after valuation allowances (dollars in millions):
December 31, 2012 December 31, 2011
Gross unrecognized tax benefits before valuation allowances ............................. $2,745 $2,370
Unrecognized tax benefit that would favorably affect effective tax rate in future .............. $1,210 $ 326
Liability for uncertain tax positions netted against deferred tax assets in the same
jurisdiction (a) ................................................................ $1,550 $1,285
(a) The remaining uncertain tax positions are classified as current and non-current liabilities.
The following table summarizes activity of the total amounts of unrecognized tax benefits (dollars in millions):
Years Ended December 31,
2012 2011 2010
Beginning balance .................................................................... $2,370 $ 5,169 $5,410
Additions to current year tax positions .................................................... 112 129 195
Additions to prior years’ tax positions ..................................................... 512 562 803
Reductions to prior years’ tax positions ................................................... (141) (1,002) (475)
Reductions in tax positions due to lapse of statutory limitations ................................ (34) (64) (18)
Settlements .......................................................................... (112) (2,399) (761)
Other .............................................................................. 38 (25) 15
Ending balance ....................................................................... $2,745 $ 2,370 $5,169
The following tables summarize information regarding income tax related interest and penalties (dollars in millions):
Years Ended December 31,
2012 2011 2010
Interest income ..................................................................... $12 $ 7 $13
Interest expense (benefit) (a) .......................................................... $52 $(113) $20
Penalties (a) ........................................................................ $ 4 $ (25) $ 1
(a) The interest and penalty benefit in the year ended December 31, 2011 is due primarily to remeasurements, settlements and statute
expirations.
December 31, 2012 December 31, 2011
Accrued interest payable .......................................................... $117 $103
Accrued penalties ............................................................... $105 $ 89
General Motors Company 2012 ANNUAL REPORT152