8. Reserves for Expected Costs of Liquidation and Residual Wind-Down Claims

The following is a summary of the activity in the reserves for expected costs of liquidation for the years ended March 31, 2015, 2014 and 2013:


(in thousands)	Reserve for Expected Wind-Down Costs			Reserve for Expected Reporting Costs			Reserve for Indenture Trustee/Fiscal and Paying Agent Costs			Reserve for Avoidance Action Defense Costs			Reserve for Residual Wind-Down Costs			Total Reserves for Expected Costs of Liquidation
Balance, March 31, 2012	$	56,815		$	13,320		$	647		$	1,280		$	4,049		$	76,111
Plus additions to reserves		5,195			12,293			—			—			—			17,488
Less liquidation costs incurred:
Trust Professionals		(19,712	)		(2,985	)		—			(382	)		(2,408	)		(25,487	)
Trust Governance		(4,191	)		(1,866	)		(148	)		—			—			(6,205	)
Other Administrative Expenses		(64	)		(320	)		—			—			(10	)		(394	)

Balance, March 31, 2013		38,043			20,442			499			898			1,631			61,513
Less reductions in reserves		(3,843	)		(4,067	)		—			—			—			(7,910	)
Less liquidation costs incurred:
Trust Professionals		(7,736	)		(2,013	)		—			(898	)		(373	)		(11,020	)
Trust Governance		(3,888	)		(1,799	)		(35	)		—			—			(5,722	)
Other Administrative Expenses		(47	)		(328	)		—			—			—			(375	)

Balance, March 31, 2014		22,529			12,235			464			—			1,258			36,486
Plus additions to reserves		8,962			413			—			—			—			9,375
Less liquidation costs incurred:
Trust Professionals		(6,834	)		(1,870	)		—			—			(35	)		(8,739	)
Trust Governance		(3,537	)		(1,801	)		(100	)		—			—			(5,438	)
Other Administrative Expenses		(31	)		(375	)		—			—			—			(406	)

Balance, March 31, 2015	$	21,089		$	8,602		$	364		$	—		$	1,223		$	31,278

During the year ended March 31, 2015, estimates of expected Wind-Down Costs and estimates of expected Reporting Costs increased by $9.0 million and $0.4 million, respectively. During the year ended March 31, 2014, estimates of expected Wind-Down Costs and estimates of expected Reporting Costs decreased by $3.8 million and $4.1 million, respectively. During the year ended March 31, 2013, estimates of expected Wind-Down Costs and estimates of expected Reporting Costs increased by $5.2 million and $12.3 million, respectively. Such revisions in the estimates were recorded as additions to (reductions in) the reserves for expected costs of liquidation in such years. The estimates of expected Wind-Down Costs for the year ended March 31, 2013 reflect the execution of a letter agreement with the DIP Lenders providing for relief from certain restrictions on utilization of Wind-Down Assets. The GUC Trust has recorded reserves for expected costs of liquidation that represent amounts expected to be incurred over the estimated remaining liquidation period of the GUC Trust for which there was a reasonable basis for estimation.

The amount of liquidation costs that will ultimately be incurred depends both on the time period and on the extent of activities required for the GUC Trust to complete its functions and responsibilities under the Plan and the GUC Trust Agreement. Significant uncertainty remains both as to that time period and as to the extent of those activities. As of March 31, 2015, the recorded reserves for expected costs of liquidation reflect estimated costs for a remaining liquidation period extending through February 2017, which has been estimated predominately on a probability-weighted basis as permitted under U.S. GAAP and which the GUC Trust believes is the most appropriate measurement basis in the circumstances. Where an outcome is estimated to be likely, the likely outcome has been used as the best estimate and no weight has been given to the unlikely outcome. The remaining liquidation period is dependent predominantly on the estimate of the remaining period of time for resolution of the Term Loan Avoidance Action, as well as certain additional estimated time as necessary to wind down the GUC Trust. It is possible that future developments in the Term Loan Avoidance Action could extend the current estimate of such remaining period of time for resolution and, therefore, extend the estimated remaining liquidation period of the GUC Trust beyond February 2017. In addition, certain liquidation costs that are expected to be prepaid by the GUC Trust upon its dissolution have also been estimated and accrued. It is reasonably possible that the GUC Trust’s estimates regarding the costs and remaining liquidation period could change in the near term.

As described in Item 3, “Legal Proceedings,” the GUC Trust is participating, as an interested party, in litigation involving certain General Motors vehicle recalls. While the impact of such litigation on the remaining liquidation period of the GUC Trust is not subject to reasonable estimation at this time, it is possible that such litigation could extend the remaining liquidation period of the GUC Trust beyond February 2017.

The following is a summary of the activity in the reserves for Residual Wind-Down Claims for the years ended March 31, 2015, 2014 and 2013:


(in thousands)	2015			2014			2013
Balance, beginning of year	$	28,698		$	30,855		$	32,247
Less claims allowed during the year		(3,292	)		(2,157	)		(1,392	)

Balance, end of year	$	25,406		$	28,698		$	30,855