Fair Value Measurements

3 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

6. Fair Value Measurements

Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value and the Trust’s investments are presented as provided by this hierarchy.

Level 1—In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets and liabilities that the GUC Trust has the ability to access.

Level 2—Fair value determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3—Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. These Level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset. The GUC Trust had no assets or liabilities that are measured with Level 3 inputs at June 30, 2012 and March 31, 2012.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The GUC Trust’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

The GUC Trust also holds other financial instruments not measured at fair value on a recurring basis, including accounts payable and other liabilities. The fair value of these liabilities approximates the carrying amounts in the accompanying financial statements due to the short maturity of such instruments.

The following table presents information about the GUC Trust’s assets and liabilities measured at fair value on a recurring basis at June 30, 2012 and March 31, 2012, and the valuation techniques used by the GUC Trust to determine those fair values.

	June 30, 2012
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	336	$	—	$	—	$	336
Marketable Securities:
Municipal commercial paper and demand notes		—		52,055		—		52,055
Corporate commercial paper		—		31,153		—		31,153
Holdings of New GM Securities:
New GM Common Stock		586,862		—		—		586,862
New GM Warrants		481,602		—		—		481,602
Total Assets	$	1,068,800	$	83,208	$	—	$	1,152,008
Liabilities:
Liquidating distributions payable	$	39,711	$	—	$	—	$	39,711
	March 31, 2012
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	38,396	$	—	$	—	$	38,396
Marketable Securities:
Municipal commercial paper and demand notes		—		25,253		—		25,253
Corporate commercial paper		—		59,317		—		59,317
U.S. government agency bonds		—		2,001		—		2,001
Holdings of New GM Securities:
New GM Common Stock		770,389		—		—		770,389
New GM Warrants		759,873		—		—		759,873
Total Assets	$	1,568,658	$	86,571	$	—	$	1,655,229
Liabilities:
Liquidating distributions payable	$	31,720	$	—	$	—	$	31,720

The following are descriptions of the valuation methodologies used for assets measured at fair value:

• Due to its short-term, liquid nature, the fair value of cash equivalents approximates its carrying value.

• Holdings of New GM Securities are valued at closing prices reported on the active market on which the individual securities are traded.

• Marketable securities include municipal commercial paper and variable demand notes, corporate commercial paper and U.S. government agency bonds. Municipal variable demand notes trade daily at par value and, therefore, their fair value is equal to par value. Due to their short term maturities, the fair value of municipal and corporate commercial paper approximates their carrying value. The fair value of U.S. government agency bonds is based on pricing models, quoted prices of securities with similar characteristics, or broker quotes.

The GUC Trust’s policy is to recognize transfers between levels of the fair value hierarchy as of the actual date of the event of change in circumstances that caused the transfer. There were no such transfers during the quarters ended June 30, 2012 and 2011.