General Motors 2010 Annual Report Download - page 55

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Old GM
In the period January 1, 2009 through July 9, 2009 Reorganization gains, net included: (1) the gain on conversion of debt of $37.5
billion; (2) the change in net assets resulting from the application of fresh-start reporting of $33.8 billion; (3) the gain from the
settlement of net liabilities retained by MLC of $25.2 billion; and (4) the fair value of Series A Preferred stock, common shares and
warrants issued in connection with the 363 Sale of $20.5 billion.
Income Tax Expense (Benefit)
Successor Predecessor
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
Year Ended
December 31, 2008
Income tax expense (benefit) ............................ $672 $(1,000) $(1,166) $1,766
GM
In the year ended December 31, 2010 Income tax expense of $0.7 billion primarily resulted from current and deferred income tax
provisions of $0.6 billion for profitable entities without valuation allowances, $0.3 billion withholding taxes and taxable foreign
exchange gain in Venezuela, partially offset by $0.3 billion settlement of uncertain tax positions and reversal of valuation allowances.
In the period July 10, 2009 through December 31, 2009 Income tax benefit of $1.0 billion primarily resulted from a $1.4 billion
income tax allocation between operations and Other comprehensive income, partially offset by income tax provisions of $0.3 billion
for profitable entities without valuation allowances. Our U.S. operations incurred losses from operations with no income tax benefit
due to full valuation allowances against our U.S. deferred tax assets, and we had Other comprehensive income, primarily due to
remeasurement gains on our U.S. pension plans. We recorded income tax expense related to the remeasurement gains in Other
comprehensive income and allocated income tax benefit to operations.
Old GM
In the period January 1, 2009 through July 9, 2009 Income tax benefit of $1.2 billion primarily resulted from the reversal of
valuation allowances of $0.7 billion related to Reorganization gains, net and the resolution of a transfer pricing matter of $0.7 billion
with the U.S. and Canadian governments, partially offset by income tax provisions for profitable entities without valuation
allowances.
In the year ended December 31, 2008 Income tax expense of $1.8 billion primarily resulted from the recording of valuation
allowances of $1.9 billion against deferred tax assets in South Korea, the United Kingdom, Spain, Australia, Texas and various
non-U.S. jurisdictions.
Equity Income, net of tax
Successor Predecessor
Year Ended
December 31,
2010
Percentage of
Total
net sales
and revenue
July 10, 2009
Through
December 31,
2009
Percentage of
Total
net sales
and revenue
January 1, 2009
Through
July 9,
2009
Percentage of
Total
net sales
and revenue
Year Ended
December 31,
2008
Percentage of
Total
net sales
and revenue
China JVs ..... $1,297 1.0% $460 0.8% $ 300 0.6% $ 315 0.2%
Other equity
interests ..... $ 141 0.1% $ 37 0.1% $(239) (0.5)% $(129) (0.1)%
Total equity
income, net of
tax ......... $1,438 1.1% $497 0.9% $ 61 0.1% $ 186 0.1%
General Motors Company 2010 Annual Report 53