General Motors 2014 Annual Report Download - page 123

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
price between a direct reduction to stockholders’ equity of $5.1 billion and a charge to Automotive selling, general and administrative
expense of $402 million representing the premium. These shares were retired and returned to authorized but unissued status. In the
year ended December 31, 2012 we issued 1.3 million shares of common stock for the settlement of restricted stock and salary stock
awards and 400,000 shares for exercised warrants. Refer to Note 23 for additional information on our stock incentive plans.
Warrants
In July 2009 we issued two tranches of warrants, each to acquire 136 million shares of common stock, to Motors Liquidation
Company (MLC) which have all been distributed to creditors of General Motors Corporation and to the Motors Liquidation Company
GUC Trust by MLC and one tranche of warrants to acquire 46 million shares of common stock to the New VEBA. The first tranche of
MLC warrants is exercisable at any time prior to July 10, 2016 at an exercise price of $10.00 per share and the second tranche of MLC
warrants is exercisable at any time prior to July 10, 2019 at an exercise price of $18.33 per share. The New VEBA warrants, which
were subsequently sold by the New VEBA, are exercisable at any time prior to December 31, 2015 at an exercise price of $42.31 per
share. Upon exercise of the warrants, the shares issued will be included in the number of basic shares outstanding used in the
computation of earnings per share. The number of shares of common stock underlying each of the warrants and the per share exercise
price are subject to adjustment as a result of certain events, including stock splits, reverse stock splits and stock dividends. The
outstanding balance of warrants was 165 million and 293 million at December 31, 2014 and 2013.
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