Reorganization Under Chapter 11 of the Bankruptcy Code and Fresh-Start Accounting (Tables)

12 Months Ended

Dec. 31, 2012

Reorganization Under Chapter 11 of the Bankruptcy Code and Fresh-Start Accounting [Abstract]

Represents the adjustment of assets and liabilities to fair value

Fresh-start accounting results in a new basis of accounting and reflects the allocation of the Company’s fair value to its underlying assets and liabilities. Significant adjustments are summarized below:

Elimination of Predecessor’s goodwill	$	(87,728	)
Successor’s goodwill		136,666
Elimination of Predecessor’s intangible assets		(10,294	)
Successor’s intangible asset adjustment (a)		155,005
Defined benefit plans adjustment (b)		(30,680	)
Inventory adjustment (c)		8,136
Property, plant and equipment adjustment (d)		40,665
Investments in non-consolidated affiliates adjustment (e)		9,021
Noncontrolling interest adjustments (e)		(2,182	)
Elimination of Predecessor’s accumulated other comprehensive loss and other adjustments		(78,678	)
Pretax income on fresh-start accounting adjustments		139,931
Tax related to fresh-start accounting adjustments (f)		(24,580	)
Net gain on fresh-start accounting adjustments	$	115,351

(a) Intangible assets – This adjustment reflects the fair value of intangible assets determined as of the Effective Date.

(b) Defined benefit plans – This adjustment primarily reflects differences in assumptions, such as the expected return on plan assets and the weighted average discount rate related to the payment of benefit obligations, between the prior measurement date of December 31, 2009 and the Effective Date.

(c) Inventory – This amount adjusts inventory to fair value as of the Effective Date, which is estimated for finished goods and work-in-process based upon the expected selling price less cost to complete, selling and disposal cost and a normal selling profit. Raw material inventory was recorded at a carrying value as such value approximates the replacement cost.

(d) Property, plant and equipment – This amount adjusts property, plant and equipment to fair value as of the Effective Date, giving consideration to the highest value and best use of these assets. Fair value estimates were based on independent appraisals. Key assumptions used in the appraisals were based on a combination of income, market and cost approaches, as appropriate.

(e) Investments in non-consolidated and noncontrolling interests – These amounts adjust investments in non-consolidated affiliates and noncontrolling interests to their estimated fair values. Estimated fair values were based on internal and external valuations using customary valuation methodologies, including comparable earnings multiples, discounted cash flows and negotiated transaction values.

(f) Tax expense – This amount reflects the tax expense related to the fair value adjustments of inventory, property, plant and equipment, intangibles, tooling and investments.

Reorganization items and fresh-start accounting adjustments, net for the Predecessor period

A summary of reorganization items and fresh-start accounting adjustments, net for the Predecessor period, is shown below:

Pretax reorganization items:
Professional and other fees	$	48,701
Gain on prepetition settlement		(49,980	)
Gain on settlement of liabilities subject to compromise		(162,243	)
		(163,522	)
Pretax fresh-start accounting adjustments		(139,931	)
Reorganization items and fresh-start accounting adjustments, net	$	(303,453	)