General Motors 2010 Annual Report Download - page 179

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Old GM initiated restructuring plans prior to the 363 Sale to reduce the total number of powertrain, stamping and assembly plants
and to eliminate certain brands and nameplates. In addition, MLC retained certain assets that we did not acquire in connection with
the 363 Sale and were deemed not to have a useful life beyond July 9, 2009. As a result, Old GM recorded incremental depreciation
and amortization on certain of these assets as they were expected to be utilized over a shorter period of time than their previously
estimated useful lives. We record incremental depreciation and amortization for changes in useful lives subsequent to the initial
determination. We recorded incremental depreciation and amortization of $18 million and $20 million in the year ended December 31,
2010 and the period July 10, 2009 through December 31, 2009. Old GM recorded incremental depreciation and amortization of
approximately $2.8 billion and $0.8 billion in the period January 1, 2009 through July 9, 2009 and the year ended December 31, 2008.
Note 13. Goodwill
Consolidated
The following table summarizes the changes in the carrying amounts of Goodwill (dollars in millions):
Successor
GMNA GME GMIO GMSA (a)
Total
Automotive
GM
Financial Total
Balance at January 1, 2010 ........................... $26,409 $3,335 $771 $157 $30,672 $ — $30,672
Reporting unit reorganization (b) ...................... — (82) 82 — — — —
Goodwill acquired (c) ............................... — — — — — 1,265 1,265
Disposals ......................................... (17) — (2) — (19) — (19)
Effect of foreign currency translation and other ........... 2 (200) 50 8 (140) — (140)
Balance at December 31, 2010 ........................ 26,394 3,053 901 165 30,513 1,265 31,778
Accumulated impairment charges ...................... — — — — — — —
Goodwill ......................................... $26,394 $3,053 $901 $165 $30,513 $1,265 $31,778
Successor
GMNA GME GMIO GMSA (a)
Total
Automotive Total
Balance at July 10, 2009 (d) .......................... $26,348 $3,262 $713 $141 $30,464 $30,464
Goodwill acquired .................................. 61 — — — 61 61
Effect of foreign currency translation and other ........... — 73 71 16 160 160
Goodwill included in Assets held for sale ................ — — (13) — (13) (13)
Balance at December 31, 2009 ........................ 26,409 3,335 771 157 30,672 30,672
Accumulated impairment charges ...................... — — — — — —
Goodwill ......................................... $26,409 $3,335 $771 $157 $30,672 $30,672
(a) Reflects the revised segment presentation for our newly created GMSA segment. Refer to Note 35 for additional information.
(b) 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. Goodwill
was reassigned between reporting units on a relative-fair-value basis.
(c) On October 1, 2010 our acquisition of AmeriCredit became effective. Pursuant to ASC 805 we assigned fair value to all assets,
including identifiable intangible assets, and liabilities acquired. Subsequent to assigning fair values and recording deferred
income taxes in accordance with ASC 740, a residual amount of $1.3 billion was recorded as Goodwill. Goodwill includes $153
million that was recorded at the acquisition date to establish a valuation allowance for deferred tax assets that were not applicable
to GM Financial on a stand-alone basis.
General Motors Company 2010 Annual Report 177