Parent Company Stock Based Compensation

12 Months Ended

Dec. 31, 2012

Parent Company Stock Based Compensation [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

Parent Company Stock Based Compensation

Our parent company has certain stock based compensation plans for employees and key executive officers. Restricted Stock Units ("RSUs") awards granted under these plans are valued at the grant date fair value of GM common stock.

Long-Term Incentive Plan

The RSUs granted vest ratably over a three-year service period, as defined in the terms for each award. We have elected to record compensation expense for these RSUs on a straight-line basis over the entire vesting period.

Salary Stock

In the fiscal 2012 and 2011 a portion of each participant's salary was accrued on each salary payment date and converted to RSUs on a quarterly basis. The awards are fully vested and nonforfeitable upon grant, therefore compensation cost is recognized on the date of grant. In March 2012 the plan was amended to provide for cash settlement of awards. As a result these awards will now settle in cash and we reclassified $14.7 million from additional paid-in capital to accounts payable and accrued expenses and operating expenses. The liability for these awards is remeasured to fair value at the end of each reporting period. Prior to this amendment it was GM's policy to issue new shares upon settlement of these awards.

The following table summarizes information about RSUs granted to our employees and key executive officers under the parent company stock based compensation programs (RSUs in thousands):

	Successor
	Year Ended December 31, 2012
	Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term
Outstanding at beginning of period	919		$	25.24	0.8
Granted	698		22.08
Forfeited or expired	(10	)	30.23
Settled	(189	)	27.84
Outstanding at end of period	1,418		$	23.17	0.8
RSUs unvested and expected to vest at December 31, 2012	511		$	24.40	2.1
RSUs vested and payable at December 31, 2012	884		$	22.44

For fiscal 2012 and 2011, we recorded total stock based compensation expense of $16.5 million ($10.2 million net of tax) and $17.1 million ($10.6 million net of tax), respectively.

As of December 31, 2012, unamortized compensation expense related to the RSUs was $10.0 million.

The total fair value of RSU's vested in fiscal 2012 and 2011 was $9.4 million and $15.7 million, respectively.

In fiscal 2012, total payments for 111,000 RSU's settled in cash under stock incentive plans were $2.5 million.

Stock Based Compensation – Predecessor

General

We had certain stock based compensation plans for employees, non-employee directors and key executive officers. As a result of the Merger, our outstanding options and restricted stock were fully vested and settled accordingly to the terms of the award agreements and the Merger. As of October 1, 2010, we no longer have publicly traded stock and there are no stock based compensation plans other than those provided by the parent company.

Stock Options

Compensation expense recognized for stock options was $0.3 million and $1.3 million for the three months ended September 30, 2010 and for fiscal 2010, respectively. As of June 30, 2010, unamortized compensation expense related to stock options was $1.2 million.

Employee Plans

A summary of stock option activity under our employee plans was as follows (shares in thousands):

	Predecessor
	Period From July 1, 2010 Through September 30, 2010				Year Ended June 30, 2010
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of period	1,324		$	20.75	2,106		$	18.02
Granted					42		20.96
Exercised	(17	)	13.59		(757	)	13.44
Canceled/forfeited	(30	)	23.47		(67	)	17.56
Outstanding at end of period	1,277		$	20.75	1,324		$	20.75
Options exercisable at end of period					1,033		$	23.81
Weighted average fair value of options granted during period							$	10.79

Cash received from exercise of options for the three months ended September 30, 2010 and for fiscal 2010 was $0.3 million and $10.2 million, respectively. The total intrinsic value of options exercised during the three months ended September 30, 2010 and during fiscal 2010 was $0.1 million and $5.9 million, respectively.

Non-Employee Director Plans

A summary of stock option activity under our non-employee director plans was as follows (shares in thousands):

	Predecessor
	Year Ended June 30,
	2010
	Shares		Weighted Average Exercise Price
Outstanding at beginning of year	80		$	17.81
Exercised	(80	)	17.81
Outstanding and exercisable at end of year			$

Cash received from exercise of options for fiscal 2010 was $1.4 million. The total intrinsic value of options exercised during fiscal 2010 was $0.03 million.

Restricted Stock Based Grants

Restricted stock grants totaling 5,596,600 shares with an approximate aggregate market value of $98.8 million at the time of grant had been issued under the employee plans. The market value of these restricted shares at the date of grant was amortizable into expense over a period that approximated the service period of three years.

Compensation expense recognized for restricted stock grants was $3.6 million and $10.1 million for the three months ended September 30, 2010 and for fiscal 2010, respectively. As of June 30, 2010, unamortized compensation expense related to the restricted stock awards was $14.4 million. A summary of the status of non-vested restricted stock for the three months ended September 30, 2010 and for fiscal 2010, is presented below (shares in thousands):

	Predecessor
	Period From July 1, 2010 Through September 30, 2010		Year Ended June 30, 2010
Nonvested at beginning of period	1,810		2,253
Granted			415
Vested	(1,051	)	(555	)
Forfeited	(165	)	(303	)
Nonvested at end of period	594		1,810