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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Through these transactions we have settled certain pension obligations in their entirety resulting in a pre-tax settlement loss of $2.6
billion ($2.2 billion after tax) in Automotive cost of sales. The pre-tax loss is composed of existing losses in Accumulated other
comprehensive loss of $377 million, and the premium paid to the insurance company of $2.1 billion. The tax benefit of $413 million
is composed of the statutory tax benefit of $1.0 billion offset by tax expense of $596 million primarily associated with the removal of
prior period income tax allocations between Accumulated other comprehensive loss and Income tax expense (benefit).
In 2012 we provided short-term, interest-free, unsecured loans of $2.2 billion to provide the plan with incremental liquidity to pay
ongoing benefits and administrative costs. Contributions of $1.7 billion were made from the $2.2 billion loans. Through December 31,
2012 $430 million was repaid and $90 million of the loan was still outstanding. In the year ended December 31, 2013 $60 million was
repaid and the remaining $30 million was deemed a plan contribution.
Active salaried plan participants began receiving additional contributions in the defined contribution plan in October 2012. Lump-
sum pension distributions in 2013 of $430 million resulted in a pre-tax settlement gain of $128 million.
Canadian Salaried Defined Benefit Plans
In June 2012 we amended the Canadian salaried pension plan to cease the accrual of additional benefits effective December 31,
2012 and provide active employees a lump-sum distribution option at retirement. The remeasurement, amendments and offsetting
curtailment increased the pension liability by $84 million. Active plan participants started receiving additional contributions in the
defined contribution plan starting in January 2013.
We also amended the Canadian salaried retiree healthcare plan to eliminate post-65 healthcare benefits for employees retiring on or
after July 1, 2014. In conjunction with this change we amended the plan to offer either a monthly monetary payment or an annual
lump-sum cash payment to a defined contribution plan for health care in lieu of the benefit coverage provisions formerly provided
under the healthcare plan. These amendments decreased the OPEB liability by $28 million.
Canadian HCT
In October 2011 pursuant to a June 2009 agreement between General Motors of Canada Limited (GMCL) and the CAW an
independent HCT was implemented to provide retiree healthcare benefits to certain active and retired employees. Concurrent with the
implementation of the HCT, GMCL was legally released from all obligations associated with the cost of providing retiree healthcare
benefits to CAW retirees and surviving spouses by the class action process and to CAW active employees as of June 8, 2009. We
accounted for the related termination of CAW hourly retiree healthcare benefits as a settlement and recorded a gain of $749 million in
Automotive cost of sales. The settlement gain represents the difference between the healthcare plan obligation of $3.1 billion (as of
the implementation date) and the fair value of the notes and restricted cash contributed totaling $1.9 billion, and recognition of
Accumulated other comprehensive loss of $414 million.
Other Remeasurements
In March 2012 certain pension plans in GME were remeasured as part of our goodwill impairment testing, resulting in an increase
of $150 million in the pension liability and a pre-tax increase in the net actuarial loss component of Accumulated other comprehensive
loss.
In September 2011 a plan which provided legal services to U.S. hourly employees and retirees was remeasured as a result of our
labor agreement provisions which terminated the plan effective December 31, 2013. The negotiated termination has been accounted
for as a negative plan amendment resulting in a decrease in the OPEB liability and a pre-tax increase of $266 million in the prior
service credit component of Accumulated other comprehensive loss was amortized through December 31, 2013.
In March 2011 certain pension plans in GME were remeasured as part of our goodwill impairment testing, resulting in a decrease of
$272 million in the pension liability and a pre-tax increase in the net actuarial gain component of Accumulated other comprehensive
loss.
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2013 ANNUAL REPORT