General Motors 2010 Annual Report Download - page 145

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Use of Estimates in the Preparation of the Financial Statements
The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments,
and assumptions that affect the amounts of assets and liabilities at the reporting date and the amounts of revenue and expenses in the
periods presented. We believe that the accounting estimates employed are appropriate and the resulting balances are reasonable;
however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring
adjustments to these balances in future periods.
GM Financial
The assets and liabilities of GM Financial, our automotive finance operations, are presented on a non-classified basis. The amounts
presented for GM Financial have been adjusted to include the effect of our tax attributes on GM Financial’s deferred tax positions and
provision for income taxes since the date of acquisition, which are not applicable to GM Financial on a stand-alone basis, and to
eliminate the effect of transactions between GM Financial and the other members of the consolidated group. Accordingly, the
amounts presented will differ from those presented by GM Financial on a stand-alone basis.
Change in Segments
In the year ended December 31, 2010 we changed our managerial and financial reporting structure so that certain entities
geographically located within Russia and Uzbekistan were transferred from our GME segment to our GMIO segment and certain
entities geographically located in Brazil, Argentina, Colombia, Ecuador, Venezuela, Bolivia, Chile, Paraguay, Peru and Uruguay were
transferred from our GMIO segment to our newly created GMSA segment. We have retrospectively revised the segment presentation
for all periods presented.
Change in Presentation of Financial Statements
In 2010, we changed the presentation of our consolidated balance sheet, consolidated statement of cash flows and certain footnotes
to combine line items which were either of a related nature or not individually material. We have made corresponding reclassifications
to the comparable information for all periods presented.
Stock Split
On October 5, 2010 our Board of Directors recommended a three-for-one stock split on shares of our common stock, which was
approved by our stockholders on November 1, 2010. The stock split was effected on November 1, 2010.
Each stockholder’s percentage ownership in us and proportional voting power remained unchanged after the stock split. All
applicable Successor share, per share and related information in the consolidated financial statements and notes has been adjusted
retroactively to give effect to the three-for-one stock split.
Increase in Authorized Shares
On October 5, 2010, our Board of Directors recommended that we amend our Certificate of Incorporation to increase the number of
shares of common stock that we are authorized to issue from 2.5 billion shares to 5.0 billion shares and to increase the number of
preferred shares that we are authorized to issue from 1.0 billion shares to 2.0 billion shares. Our stockholders approved these
amendments on November 1, 2010, and they were effected on November 1, 2010.
Venezuelan Exchange Regulations
Our Venezuelan subsidiaries changed their functional currency from Bolivar Fuerte (the BsF), the local currency, to the
U.S. Dollar, our reporting currency, on January 1, 2010 because of the hyperinflationary status of the Venezuelan economy. Pursuant
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