General Motors 2010 Annual Report Download - page 26

GENERAL MOTORS COMPANY AND SUBSIDIARIES
General Motors Company was formed by the United States Department of the Treasury (UST) in 2009 originally as a Delaware
limited liability company, Vehicle Acquisition Holdings LLC, and subsequently converted to a Delaware corporation, NGMCO, Inc.
This company, which on July 10, 2009 acquired substantially all of the assets and assumed certain liabilities of General Motors
Corporation and changed its name to General Motors Company, is sometimes referred to in this management’s discussion and
analysis of financial condition and results of operations for the periods on or subsequent to July 10, 2009 as “we,” “our,” “us,”
“ourselves,” the “Company,” “General Motors,” or “GM,” and is the successor entity solely for accounting and financial reporting
purposes (Successor). General Motors Corporation is sometimes referred to in this management’s discussion and analysis of financial
condition and results of operations, for the periods on or before July 9, 2009, as “Old GM.” Prior to July 10, 2009 Old GM operated
the business of the Company, and pursuant to the agreement with the Staff of the Securities and Exchange Commission (SEC), as
described in a no-action letter issued to Old GM by the SEC Staff on July 9, 2009 regarding our filing requirements and those of
Motors Liquidation Company (MLC), the accompanying consolidated financial statements include the financial statements and
related information of Old GM as it is our predecessor entity solely for accounting and financial reporting purposes (Predecessor). On
July 10, 2009 in connection with the 363 Sale, General Motors Corporation changed its name to Motors Liquidation Company, which
is sometimes referred to in this management’s discussion and analysis of financial condition and results of operations for the periods
on or after July 10, 2009 as “MLC.” MLC continues to exist as a distinct legal entity for the sole purpose of liquidating its remaining
assets and liabilities.
Presentation and Estimates
Basis of Presentation
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in
conjunction with the accompanying consolidated financial statements.
We analyze the results of our business through our five segments, namely GM North America (GMNA), GM Europe (GME), GM
International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial).
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.
Consistent with industry practice, market share information includes estimates of industry sales in certain countries where public
reporting is not legally required or otherwise available on a consistent basis.
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 share, per share and related information for periods on or subsequent to July 10, 2009 has been adjusted retroactively to
give effect to the three-for-one stock split.
24 General Motors Company 2010 Annual Report