General Motors 2011 Annual Report Download

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Table of contents

  • Page 1
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  • Page 3
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  • Page 4
    ..._LJ\[P]L6MÄJLY DANIEL F. AKERSON The four principles I'm talking about have not changed since GM's initial public offering: +LZPNU)\PSKHUK:LSS[OL>VYSK»Z)LZ[=LOPJSLZ ;OPZWPSSHYPZPU[...PVU[V KL[HPSHUK[Y\LHJJV\U[HIPSP[`   2 General Motors Company 2011 Annual Report 

  • Page 5
    ...JVU[YVS>L SPRL[OLYLZ\S[Z^L»YLZ[HY[PUN[VZLLHUK^L»YLNVPUN[VZ[PJR[VP[¶HS^H`Z  ;OH[»ZT`JVTTP[TLU[[V`V\  :PUJLYLS`    +HUPLS-(RLYZVU *OHPYTHU *OPLM,_LJ\[P]L6MÄJLY General Motors Company 2011 Annual Report 3

  • Page 6
    ...) Net Income Attributable to Common Stockholders (in billions) Earnings per Share Fully Diluted (in dollars) *VTWHYPZVUVM*\T\SH[P]L;V[HS9L[\YU $120 $110 $100 $ 90 $150.3 $135.6 $7.6 $4.58 $4.7 $2.89 $ 80 $ 70 $ 60 $ 50 11/18/10 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 2010 2011 2010...

  • Page 7
    ...ZHSLVM5L_[LLY(\[VTV[P]L*VYWVYH[PVUHTHU\MHJ[\YLYVMZ[LLYPUNJVTWVULU[ZHUKOHSMZOHM[Z 2010 $5,688 (1,953) 2,262 818 129 6,944 86 $7,030 447 465 1,098 672 $6,172 $7,194 (747) 1,897 (122) 622 8,844 (540) $8,304 861 455 540 (110) $9,190 General Motors Company 2011 Annual Report 5

  • Page 8
    ...:[H[LTLU[ZVM,X\P[`+LÄJP[ 5V[LZ[V*VUZVSPKH[LK-PUHUJPHS:[H[LTLU[Z *VU[YVSZHUK7YVJLK\YLZ -PUHUJPHS:[H[LTLU[:JOLK\SL00·=HS\H[PVUHUK8\HSPM`PUN(JJV\U[Z                     6 General Motors Company 2011 Annual Report

  • Page 9
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Market Information Shares of our common stock have been publicly traded since November 18, 2010 when our common stock was listed and began trading on the New York Stock Exchange and the Toronto Stock Exchange. As a result the table below for the year ended ...

  • Page 10
    ... earnings per share as the Series B Preferred Stock is a participating security due to the applicable market value of our common stock being below $33.00 per common share. Refer to Note 26 to our consolidated financial statements for additional detail. 8 General Motors Company 2011 Annual Report

  • Page 11
    ... equity in the year ended December 31, 2010. (h) In December 2010 we purchased 84 million shares of our Series A Preferred Stock from the UST for $2.1 billion. (i) Series B Preferred Stock was issued in a public offering in November and December 2010. General Motors Company 2011 Annual Report...

  • Page 12
    ... five segments, namely GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and GM Financial. Consistent with industry practice, market share information includes estimates of industry sales in certain countries where public reporting is not legally...

  • Page 13
    ... offers lease products through GM dealerships in connection with the sale of used and new automobiles that target customers with sub-prime and prime credit bureau scores. GM Financial primarily generates revenue and cash flows through the purchase, retention, subsequent securitization and servicing...

  • Page 14
    ... balance sheet by reducing financial leverage given the high operating leverage of our business model. Chapter 11 Proceedings and the 363 Sale Background Over time as Old GM's market share declined in North America, Old GM needed to continually restructure its business operations to reduce cost...

  • Page 15
    ... certain liabilities of Old GM from the Sellers. The 363 Sale was consummated in accordance with a purchase agreement, dated June 26, 2009, as amended, between us and the Sellers, and pursuant to the Bankruptcy Court's sale order dated July 5, 2009. General Motors Company 2011 Annual Report 13

  • Page 16
    ... to acquire 46 million shares of our common stock and MLC received two tranches of warrants, each to acquire 136 million shares of our common stock. Refer to Note 25 to our consolidated financial statements for additional description of warrants. 14 General Motors Company 2011 Annual Report

  • Page 17
    ...revenue between years presented. Total net sales and revenue is primarily comprised of revenue generated from the sales of vehicles, in addition to revenue from OnStar, our customer subscription service, vehicle sales accounted for as operating leases, sales of parts and accessories and GM Financial...

  • Page 18
    ... certain key operational and financial data for the China JVs (dollars in millions, vehicles in thousands): Year Ended December 31, 2011 Year Ended December 31, 2010 Year Ended December 31, 2009 Total wholesale vehicles (a) ...Market share (b) ...Total net sales and revenue ...Net income ... 2,573...

  • Page 19
    ...amortized over the four year agreement period. An annual payment of $250 per U.S. hourly employee upon attainment of specific U.S. vehicle quality targets. An increase in wages for certain entry level employees hired on or after October 1, 2007. • • General Motors Company 2011 Annual Report 17

  • Page 20
    ... on plan assets of $1.4 billion, offset by net decreases to other components of pension expense of $0.6 billion, primarily interest cost. 2009 Special Attrition Programs In 2009 Old GM announced special attrition programs for eligible UAW represented employees, offering cash and other incentives for...

  • Page 21
    ... Canada through introducing co-payments for healthcare benefits, increasing employee healthcare cost sharing, freezing pension benefits and eliminating cost of living adjustments to pensions for retired hourly workers. The 2009 CAW Agreement was conditioned on Old GM receiving longer term financial...

  • Page 22
    ...originally guaranteed by Old GM under the DBGA. In March 2011 we sold 100% of our Class A Membership Interests in New Delphi. Refer to Note 10 to our consolidated financial statements for details regarding the sale of our equity interests in New Delphi. 20 General Motors Company 2011 Annual Report

  • Page 23
    ...Vehicle sales data, which includes retail and fleet sales, does not correlate directly to the revenue we recognize during the period. However, vehicle sales data is indicative of the underlying demand for our vehicles, and is the basis for our market share. General Motors Company 2011 Annual Report...

  • Page 24
    ... because management believes interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment. EBIT-adjusted is not presented for the period January 1, 2009 through July 9, 2009 as Old GM did not identify...

  • Page 25
    ... related to Ally Financial common stock ...- Charges related to Delphi ...(83) Loss on extinguishment of debt ...(101) Total adjustments ...$(2,755) $ - $ - - - - - - - - $ - $- - - - $- $ - (270) (177) - $(447) $(2,571) (270) (260) (101) $(3,202) General Motors Company 2011 Annual Report...

  • Page 26
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Total Net Sales and Revenue (Dollars in Millions) Successor Combined GM and Old GM Successor Predecessor Year Ended 2011 vs. 2010 Change Amount % Year Ended 2010 vs. 2009 Change Amount % July 10, 2009 Year Ended Year Ended Year Ended Through January 1, 2009 ...

  • Page 27
    ... gross margin reflected sales volumes at historically low levels and Automotive cost of sales, including costs that are fixed in nature, exceeding Total net sales and revenue. Automotive Selling, General and Administrative Expense Successor Year Ended December 31, 2011 Year Ended December 31, 2010...

  • Page 28
    ... GM In the year ended December 31, 2011 Automotive selling, general and administrative expense increased by $0.7 billion (or 5.8%) due primarily to: (1) increased advertising and sales promotion expenses of $0.5 billion to support media campaigns and new product launches; (2) net foreign exchange...

  • Page 29
    ... UST Credit Agreement and Canadian Loan of $0.3 billion; (2) interest expense on obligations due to Ally Financial of $0.1 billion; and (3) interest expense on other debt obligations of $0.3 billion, which included amortization of debt discounts of $0.1 billion. Old GM In the period January 1, 2009...

  • Page 30
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GM In the year ended December 31, 2011 Interest income and other non-operating income, net decreased by $0.7 billion (or 44.4%) due primarily to: (1) an impairment charge of $0.6 billion related to our investment in Ally Financial common stock; (2) reversal ...

  • Page 31
    ...of tax and gain on disposal of investments increased by $1.8 billion (or 122.0%) due primarily to a gain of $1.6 billion related to the sale of our New Delphi Class A Membership Interests and increased equity income related to our China JVs of $0.2 billion. General Motors Company 2011 Annual Report...

  • Page 32
    ...of tax and gain on disposal of investments included equity income of $0.3 billion related to our China JVs, partially offset by equity losses of $0.2 billion primarily related to impairment charges and our proportionate share of losses at other joint ventures. 30 General Motors Company 2011 Annual...

  • Page 33
    ...income taxes ...Total non-current assets ...Total Automotive Assets ...GM Financial Assets Finance receivables, net ...Restricted cash ...Goodwill ...Other assets ...Total GM Financial Assets ...Total Assets ...LIABILITIES AND EQUITY Automotive Current Liabilities Accounts payable (principally trade...

  • Page 34
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive Current Assets Marketable securities increased by $10.6 billion (or 190.7%) due to our improved liquidity primarily related to positive operating cash flows and proceeds received from the sale of our investments in New Delphi and Ally Financial. ...

  • Page 35
    ... billion related to U.S. plans; (3) contributions and benefits payments of $2.8 billion, including contributions of common stock to our U.S. hourly and salaried pension plans of $1.9 billion; (4) expected return on assets in excess of service and interest costs of $0.5 billion; and (5) net foreign...

  • Page 36
    ... Dollar; and (5) increase in net pension and OPEB income of $0.3 billion due to December 31, 2010 plan remeasurements; partially offset by (6) unfavorable net vehicle mix of $1.8 billion; (7) increased engineering expense and other technology fees of $0.5 billion to support new product development...

  • Page 37
    ... entered into in 2010; (5) EBIT-adjusted from GMS of $0.1 billion; offset by (6) unfavorable net foreign currency effects of $0.1 billion; and (7) charges of $0.1 billion related to a single customer's default under various commercial supply agreements. General Motors Company 2011 Annual Report 35

  • Page 38
    ... India (Our operations in India were deconsolidated effective February 2010) joint ventures is not reflected in Total net sales and revenue. The results of our joint ventures are recorded in Equity income, net of tax and gain on disposal of investments. 36 General Motors Company 2011 Annual Report

  • Page 39
    ... the year ended December 31, 2011 Total net sales and revenue increased by $1.5 billion (or 9.7%) due primarily to: (1) increased wholesale volumes of $0.6 billion representing 59,000 vehicles (or 5.7%) due to improved macroeconomic conditions and industry General Motors Company 2011 Annual Report...

  • Page 40
    ...$0.1 billion; and (4) selling and marketing expenses of $0.1 billion. GM Financial (Dollars in Millions) Successor Three Months Year Ended Ended December 31, 2011 December 31, 2010 Total revenue ...Income before income taxes ... $1,410 $ 622 $281 $129 38 General Motors Company 2011 Annual Report

  • Page 41
    ... by (2) operating and leased vehicle expenses of $0.1 billion; and; (3) other collectively insignificant items. Average debt outstanding in the three months ended December 31, 2010 was $7.3 billion and the effective rate of interest expensed was 2.0%. General Motors Company 2011 Annual Report 39

  • Page 42
    ...financing revenue related to the liquidation of the portfolio of automotive leases. Average outstanding automotive retail leases on-hand for GM and combined GM and Old GM were 7,000 and 73,000 for the years ended December 31, 2010 and 2009. Corporate Net Income (Loss) Attributable to Stockholders GM...

  • Page 43
    ... incurred as part of an agreement to settle certain retiree healthcare obligations and increases to other debt facilities. We made a voluntary contribution in January 2011 to our U.S. hourly and salaried defined benefit pension plans of 61 million shares of our common stock valued at $2.2 billion...

  • Page 44
    ... our Class A Membership Interests in New Delphi to New Delphi for $3.8 billion. Also in March 2011 we sold our Ally Financial preferred stock for $1.0 billion. Proceeds from these asset sales were used to strengthen liquidity and are to be used for general corporate purposes. From time to time we...

  • Page 45
    ... of $1.9 billion related primarily to debt prepayments and dividend payments. Total available liquidity increased by $9.1 billion in the year ended December 31, 2010 due to: (1) positive operating and investing cash flows of $7.3 billion; (2) increased marketable securities balances of $5.4 billion...

  • Page 46
    ...into Ally Financial preferred membership interests previously held by Old GM in May 2009. At December 31, 2011 the UST had received cumulative proceeds of $23.1 billion from debt repayments, interest payments, Series A Preferred Stock dividends, sales of our common stock and Series A Preferred Stock...

  • Page 47
    ... to us but under which the lenders have no legal obligation to provide funding upon our request. We and our subsidiaries use credit facilities to fund working capital needs, product programs, facilities development and other general corporate purposes. General Motors Company 2011 Annual Report 45

  • Page 48
    ... billion in 2010. The decrease in restricted cash was due to the release of $1.0 billion following the implementation of the HCT in 2011 and the release of funds held in an escrow account relating to the UST Credit Agreement of $12.5 billion in 2010. 46 General Motors Company 2011 Annual Report

  • Page 49
    ...billion on Ally Financial common stock; partially offset by (5) net cash payments of $2.0 billion related to the acquisition of Nexteer, four domestic facilities and Class A Membership Interests in New Delphi; and (6) capital expenditures of $1.9 billion. Old GM In the period January 1, 2009 through...

  • Page 50
    ...used as a supplement to U.S. GAAP measures. The following table summarizes free cash flow (dollars in millions): Successor Year Ended Year Ended December 31, 2011 December 31, 2010 Operating cash flow ...Less: capital expenditures ...Free cash flow ...Other Liquidity Issues Status of Credit Ratings...

  • Page 51
    ... facilities and operating expenses. GM Financial used cash of $5.0 billion for the purchase of finance receivables and $0.8 billion for the purchase of leased vehicles in the year ended December 31, 2011. These purchases were funded initially utilizing cash and borrowings under credit facilities and...

  • Page 52
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Credit Facilities In the normal course of business, in addition to using available cash, GM Financial pledges receivables to and borrows under credit facilities to fund operations and repays these borrowings as appropriate under GM Financial's cash management...

  • Page 53
    GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes contributions made to the defined benefit pension plans or direct payments (dollars in millions): Successor Year Ended December 31, 2011 Year Ended December 31, 2010 July 10, 2009 Through December 31, 2009 Predecessor January 1,...

  • Page 54
    ...-U.S. pension plans are paid out of plan assets rather than our Cash and cash equivalents. (b) Benefit payments presented in this table reflect the effect of the implementation of the HCT which releases us from certain CAW retiree healthcare claims incurred after October 31, 2011. Off-Balance Sheet...

  • Page 55
    ... and current interest rates on our debt and capital lease obligations. Automotive interest payments based on variable interest rates were determined using the interest rate in effect at December 31, 2011. (d) GM Financial interest payments are calculated based on LIBOR plus the respective credit...

  • Page 56
    ...: • Foreign currency derivatives - Level 3 inputs used to determine the fair value of foreign currency derivative liabilities include the appropriate credit spread to measure our nonperformance risk. Given our nonperformance risk was not observable 54 General Motors Company 2011 Annual Report

  • Page 57
    ... market value of $183 million from Level 3 to Level 2. Realized gains and losses related to assets and liabilities measured using Level 3 inputs did not have a material effect on operations, liquidity or capital resources in the years ended December 31, 2011 and 2010 and the periods July 10, 2009...

  • Page 58
    ...% of total U.S. pension plans' assets. Using an approach which matches plan assets and liability cash flows to minimize risk of funded status volatility, the expected weighted-average return on assets was reduced from 8.0% at December 31, 2010 to 5.7% for the 56 General Motors Company 2011 Annual...

  • Page 59
    ... In the U.S. Old GM established a discount rate assumption to reflect the yield of a hypothetical portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to satisfy projected future benefits. General Motors Company 2011 Annual Report 57

  • Page 60
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Refer to Note 18 to our consolidated financial statements for the weighted-average discount rate used to determine net OPEB expense. Valuation of Deferred Tax Assets We establish and Old GM established valuation allowances for deferred tax assets based on a ...

  • Page 61
    ... are accounted for as operating leases. Generally, the terms under these arrangements are up to 24 months, however, the daily rental car companies can and do return the vehicles earlier, averaging nine months. We are and Old GM was exposed to a risk of loss to the extent the value of a vehicle is...

  • Page 62
    ... consolidated financial statements. Assumptions used in our discounted cash flow analysis that have the most significant effect on the estimated fair value of our reporting units (excluding GM Financial) include: • Our estimated weighted-average cost of capital (WACC); 60 General Motors Company...

  • Page 63
    ... yields, risk premiums and tax rates; the terminal values were determined using a growth model that applied a reporting unit's long-term growth rate to its projected cash flows beyond the forecast period; and industry sales and a market share for each reporting unit included annual estimates through...

  • Page 64
    ... GAAP differences that gave rise to goodwill upon application of fresh-start reporting. Refer to Note 12 to our consolidated financial statements for additional information on goodwill impairments, including risks of future goodwill impairment charges. 62 General Motors Company 2011 Annual Report

  • Page 65
    ... GM Financial and tested at or within our various reporting units within GMIO and GMSA segments. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less cost to sell. Fair value is determined primarily using the anticipated cash flows discounted at a rate...

  • Page 66
    ... global markets, including the credit markets, or changes in economic conditions, commodity prices, housing prices, foreign currency exchange rates or political stability in the markets in which we operate; • • • • • • • • • 64 General Motors Company 2011 Annual Report

  • Page 67
    ... sale of our products, the cost thereof or applicable tax rates; Costs and risks associated with litigation; Significant increases in our pension expense or projected pension contributions resulting from changes in the value of plan assets, the discount rate applied to value the pension liabilities...

  • Page 68
    ... of certain international operations into U.S. Dollars as part of the consolidation process. Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial position. 66 General Motors Company 2011 Annual Report

  • Page 69
    ... risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, capital lease obligations and certain marketable securities. At December 31, 2011 we did not have any interest rate swap positions to manage interest rate exposures in our automotive operations...

  • Page 70
    ... cap and thus retain the interest rate risk. The fair value of the interest rate cap agreement purchased is included in GM Financial Other assets and the fair value of the interest rate cap agreement sold is included in GM Financial Other liabilities. 68 General Motors Company 2011 Annual Report

  • Page 71
    ... are designated and qualify as cash flow hedges. The fair value of interest rate swaps designated as hedges is included in GM Financial Other liabilities. Interest rate swaps that are not designated as hedges are included in GM Financial Other assets. General Motors Company 2011 Annual Report 69

  • Page 72
    GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes GM Financial's interest rate sensitive assets and liabilities by year of expected maturity and the fair value of those assets and liabilities at December 31, 2011 (dollars in millions): Years Ending December 31, 2012 2013 2014 ...

  • Page 73
    GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes GM Financial's interest rate sensitive assets and liabilities by year of expected maturity and the fair value of those assets and liabilities at December 31, 2010 (dollars in millions): Years Ending December 31, 2011 2012 2013 ...

  • Page 74
    ... standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedule of General Motors Company and subsidiaries as of and for the year ended December 31, 2011 (Successor). Our report dated February 27, 2012 expressed an...

  • Page 75
    ... PUBLIC ACCOUNTING FIRM General Motors Company, its Directors, and Stockholders: We have audited the accompanying Consolidated Balance Sheets of General Motors Company and subsidiaries as of December 31, 2011 (Successor) and 2010 (Successor), and the related Consolidated Statements of Operations...

  • Page 76
    ... earnings per common share ...$ 4.58 Weighted-average common shares outstanding ...1,668 $ 3.11 1,500 2.89 1,624 $ (3.58) 1,238 $ (3.58) 1,238 $ 178.63 611 $ 178.55 611 $ Reference should be made to the notes to consolidated financial statements. 74 General Motors Company 2011 Annual Report

  • Page 77
    ... securities ...Accounts and notes receivable (net of allowance of $331 and $252) ...Inventories ...Equipment on operating leases, net ...Other current assets and deferred income taxes ...Total current assets ...Automotive Non-current Assets Restricted cash and marketable securities ...Equity in net...

  • Page 78
    ... cash payments $408) ...Provisions (benefits) for deferred taxes ...Change in other investments and miscellaneous assets ...Increase (decrease) in other operating assets and liabilities (Note 31) ...Other ...Net cash provided by (used in) operating activities-Automotive ...GM Financial income, net...

  • Page 79
    ...-sale marketable securities, liquidations ...Trading marketable securities, liquidations ...Acquisition of companies, net of cash acquired other than cash acquired with GM Financial ...Increase due to consolidation of business units ...Distributions from (investments in) Ally Financial ...Operating...

  • Page 80
    ... securities ...Defined benefit plans, net (Note 18) ...Other comprehensive income ...Comprehensive loss ...Common stock and warrants related to settlement of UAW hourly retiree medical plan ...Purchases of noncontrolling interest ...Cash dividends paid on Series A Preferred Stock ...Other ...Balance...

  • Page 81
    ...Cash flow hedging gains, net ...Unrealized gain on securities ...Defined benefit plans, net (Note 18) ...Sale of interest in nonconsolidated affiliate ...Other comprehensive loss ...Comprehensive income ...Purchase of noncontrolling interest shares ...Exercise of common stock warrants ...Stock based...

  • Page 82
    ...cars, trucks and automobile parts worldwide. We also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). We analyze the results of our business through our five segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM...

  • Page 83
    ... will differ from those presented by GM Financial on a stand-alone basis. Change in Presentation of Financial Statements 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...

  • Page 84
    ... incentive payments) received and direct costs of originating loans are deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are sold, charged off or paid...

  • Page 85
    ...017 Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data...

  • Page 86
    ... systematically based on the determination of the amount of probable credit losses inherent in the post-acquisition finance receivables as of the balance sheet date. GM Financial reviews charge-off experience factors, delinquency reports, historical collection rates, estimates of the value of...

  • Page 87
    ... accounted for by Old GM using the LIFO costing method. Market, which represents selling price less cost to sell, considers general market and economic conditions, periodic reviews of current profitability of vehicles, product warranty costs and the effect of current incentive offers at the balance...

  • Page 88
    ...quoted market price for our common stock are used to corroborate the results of the discounted cash flow method. Our reporting units are GMNA, GME, GM Financial and various reporting units within the GMIO and GMSA segments. Due to the integrated nature of our manufacturing operations and the sharing...

  • Page 89
    ...to the plan's termination date for the plan which provides legal services. An expected return on plan asset methodology is utilized to calculate future pension expense for certain significant funded benefit plans. A market-related value of plan assets methodology is also utilized that averages gains...

  • Page 90
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) In the U.S., Old GM established a discount rate assumption to reflect the yield of a hypothetical portfolio of high quality, fixedincome debt instruments that would produce cash flows sufficient in ...

  • Page 91
    ...sale price, official closing price or publicly available NAV (or its equivalent) on the primary market or exchange on which they are traded, and are classified in Level 1. Investments in private investment funds (including hedge funds, private equity funds and real estate funds) are generally valued...

  • Page 92
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Due to the lack of timely available market information for certain investments in the asset classes described above as well as the inherent uncertainty of valuation, reported fair values may differ from ...

  • Page 93
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Policy, Warranty and Recall Campaigns The estimated costs related to policy and product warranties are accrued at the time products are sold and are charged to Automotive cost of sales. These estimates ...

  • Page 94
    ... and a risk management control system is used to assist in monitoring hedging programs, derivative positions and hedging strategies. Hedging documentation includes hedging objectives, practices and procedures and the related accounting treatment. The accounting for changes in the fair value of each...

  • Page 95
    ... consolidated statement of cash flows. Foreign Currency Transactions and Translation The assets and liabilities of foreign subsidiaries, that use the local currency as their functional currency, are translated to U.S. Dollars based on the current exchange rate prevailing at each balance sheet date...

  • Page 96
    ... 77.0% of the outstanding shares of GM Korea. Acquisition of AmeriCredit In October 2010 we acquired 100% of the outstanding equity interests of AmeriCredit, an automotive finance company, renamed General Motors Financial Company, Inc., for cash of $3.5 billion. This acquisition allows us to provide...

  • Page 97
    ... common shareholders of $24.50 per share ...Cash paid to cancel outstanding stock warrants ...Cash paid to settle equity-based compensation awards ...Total consideration ...Acquisition-related costs (a) ...Assets acquired and liabilities assumed Cash ...Restricted cash ...Finance receivables...

  • Page 98
    ... and performance light automotive vehicles which was previously owned by Old GM but retained by MLC in connection with the 363 Sale. MLC was unable to sell GMS and upon notification of their plan to liquidate GMS, we agreed to repurchase the business. 96 General Motors Company 2011 Annual Report

  • Page 99
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We recorded the fair value of the assets acquired and liabilities assumed as of October 1, 2010 and have included GMS's results of operations and cash flows from that date forward. The following table ...

  • Page 100
    ..., primarily accounts payable of $316 ...Total non-current liabilities, primarily other liabilities and deferred income taxes ...Noncontrolling interests ...Fair value of Nexteer and four domestic facilities ... $ 854 305 (484) (374) (14) $ 287 98 General Motors Company 2011 Annual Report

  • Page 101
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (a) Includes goodwill of $61 million recorded in the GMNA reporting unit that arises from the difference between the economic value of long-term employee related liabilities and their recorded amounts at...

  • Page 102
    ... value is estimated based upon forecasted cash flows discounted using a pre-tax weighted-average cost of capital (WACC). The forecast includes factors such as prepayment, defaults, recoveries and fee income assumptions. Finance contracts are purchased by GM Financial from automobile dealers without...

  • Page 103
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes activity for the allowance for post-acquisition loan losses (dollars in millions): Successor October 1, 2010 Year Ended Through December 31, 2011 December 31, 2010 Balance...

  • Page 104
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 6. Securitizations Automotive Financing - GM Financial The following table summarizes securitization activity and cash flows from consolidated SPEs used for securitizations (dollars in millions): ...

  • Page 105
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Successor December 31, 2010 Fair Value Measurements on a Recurring Basis Fair Value Level 1 Level 2 Level 3 Cost Unrealized Gains Losses Available-for-sale securities U.S. government and agencies ......

  • Page 106
    ... of Inventories (dollars in millions): Successor December 31, 2011 December 31, 2010 Productive material, supplies and work in process ...Finished product, including service parts ...Total inventories ... $ 6,486 7,838 $14,324 $ 5,487 6,638 $12,125 104 General Motors Company 2011 Annual Report

  • Page 107
    ... leased to rental car companies utilized projected cash flows from anticipated future auction proceeds. Fair value measurements of automotive retail leases utilized discounted projected cash flows from lease payments and anticipated future auction proceeds. General Motors Company 2011 Annual Report...

  • Page 108
    ... Year Ended December 31, 2011 Depreciation expense ... $ 70 The following table summarizes minimum rental payments due to GM Financial as lessor under operating leases (dollars in millions): 2012 2013 2014 2015 2016 Minimum rental receipts under operating leases ...Note 10. Equity in Net Assets...

  • Page 109
    ...% 50% 50% 40% 33% Sales and income of our China JVs are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as Equity income, net of tax and gain on disposal of investments. SGM is a joint venture established in 1997 by...

  • Page 110
    ... March 2011 there was a change in the local tax regulations which significantly extended the period of time over which GM India will receive certain value added tax based investment incentives. The delay in recovery of these incentives significantly affected GM India's cash flow and earnings before...

  • Page 111
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table presents summarized financial data for all of our nonconsolidated affiliates, excluding Ally Financial (dollars in millions): Successor China JVs December 31, 2011 Others December 31,...

  • Page 112
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Successor December 31, 2011 December 31, 2010 Financial Position Accounts and notes receivable, net ...Accounts payable (principally trade) ...Deferred revenue and customer deposits ...Successor Year ...

  • Page 113
    ... a public offering for net proceeds of $1.0 billion. The gain of $0.3 billion related to the sale was recorded in Interest income and other non-operating income, net. We calculated the fair value of our investment in Ally Financial preferred stock as of December 31, 2010 using a discounted cash flow...

  • Page 114
    ... period Ally Financial was accounted for as a nonconsolidated affiliate (dollars in millions): Six Months Ended June 30, 2009 Consolidated Statement of Income (Loss) Total financing revenue and other interest income ...Total interest expense ...Depreciation expense on operating lease assets ...Gain...

  • Page 115
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 11. Property, net Automotive The following table summarizes the components of Property, net (dollars in millions): Successor Estimated Useful Lives (Years) December 31, 2011 December 31, 2010 Land ...

  • Page 116
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) measured utilizing level 3 inputs. Fair value measurements of long-lived assets utilized projected cash flows discounted at a rate commensurate with the perceived business risks related to the assets ...

  • Page 117
    ... an increase in estimated employee benefit obligations. In the year ended December 31, 2011 our market capitalization (including the fair value of our preferred stock and warrants) declined and at times it approximated our recorded Total equity. The fair values of our reporting units determined in...

  • Page 118
    ... in our credit rating; (2) a decrease in credit spreads between high quality corporate bond rates and market interest rates thus resulting in a decrease in the spread between our employee benefit related obligations under U.S. GAAP and their fair values; and/or (3) a change in the fair values of our...

  • Page 119
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes the amortization expense related to intangible assets (dollars in millions): Year Ended December 31, 2011 Successor Year Ended December 31, 2010 July 10, 2009 Through ...

  • Page 120
    ...subsidiaries and assets recognized generally are for the benefit of the VIEs' operations and cannot be used to satisfy our obligations. In the years ended December 31, 2011 and 2010 Total net sales and revenue recorded for these consolidated VIEs were $748 million and $753 million and Net income was...

  • Page 121
    ... Assets Accounts and notes receivable, net ...Equity in net assets of nonconsolidated affiliates ...Other assets ...Total assets ...Liabilities Accounts payable (principally trade) ...Other liabilities ...Total liabilities ...Off-Balance Sheet Loan commitments ...Other guarantees ...Other liquidity...

  • Page 122
    ...liabilities and deferred income taxes (dollars in millions): Successor December 31, 2011 December 31, 2010 Current Dealer and customer allowances, claims and discounts ...Deposits from rental car companies ...Deferred revenue ...Policy, product warranty and recall campaigns ...Payrolls and employee...

  • Page 123
    ... (c) We determined the fair value of debt based on a discounted cash flow model which used benchmark yield curves plus a spread that represented the yields on traded bonds of companies with comparable credit ratings and risk profiles. (d) Includes coupon rates on debt denominated in various foreign...

  • Page 124
    ...other assets, cash, cash equivalents, marketable securities, as well as our investment in GM Financial and our equity interests in our China JVs and in GM Korea. If we receive an investment grade corporate rating from two or more of the credit rating agencies: Fitch Ratings, Moody's Investor Service...

  • Page 125
    ... notes payable ...Senior notes and convertible senior notes (b) ...Total GM Financial debt ... $ 294 621 181 3 1,099 6,938 501 $8,538 $ 294 621 181 3 1,099 6,946 511 $8,556 $ 490 278 - 64 832 6,128 72 $7,032 $ 490 278 - 64 832 6,107 72 $7,011 General Motors Company 2011 Annual Report 123

  • Page 126
    ... is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under certain of its credit facilities. The credit facilities contain various covenants requiring minimum financial ratios, asset quality and 124 General Motors Company 2011 Annual Report

  • Page 127
    .... As the balance of the securitization pool declines, the amount of pledged assets needed to maintain the required percentage level is reduced. Assets in excess of the required percentage are also released to GM Financial as distributions from trusts. General Motors Company 2011 Annual Report 125

  • Page 128
    ... Old GM's EDC Loan Facility. Long-Term Debt Maturities Consolidated The following table summarizes contractual long-term debt maturities including capital leases (dollars in millions): At December 31, 2011 Automotive Automotive Financing (a) Total 2012 ...2013 ...2014 ...2015 ...2016 ...Thereafter...

  • Page 129
    ...125 million secured credit facility were paid in full on June 30, 2009. Old GM recorded a loss of $958 million in Reorganization gains, net related to the extinguishments of the debt due primarily to the face value of the U.S. term loan exceeding the carrying amount. Contractual interest expense not...

  • Page 130
    ... 2011 to our U.S. hourly and salaried defined benefit pension plans of 61 million shares of our common stock valued at $2.2 billion for funding purposes at the time of contribution. The contributed shares qualified as a plan asset for funding purposes at the time of contribution and as a plan asset...

  • Page 131
    .... In the three months ended September 30, 2011 a plan which provides legal services to U.S. hourly employees and retirees was remeasured as a result of our current labor agreement provisions which terminate the plan effective December 31, 2013. The termination has been accounted for as a negative...

  • Page 132
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) surviving spouses by the class action process and to CAW active employees as of June 8, 2009. We accounted for the related termination of CAW hourly retiree healthcare benefits as a settlement, and ...

  • Page 133
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Successor Year Ended December 31, 2010 Non-U.S. Plans U.S. Plans Pension Benefits Other Benefits U.S. Plans Pension Benefits Non-U.S. Plans Other Benefits Change in benefit obligations Beginning ...

  • Page 134
    ...cost ...Expected return on plan assets ...Amortization of prior service credit ...Recognized net actuarial loss ...Curtailments, settlements, and other (gains) losses ...Net periodic pension and OPEB (income) expense ...Weighted-average assumptions used to determine benefit obligations Discount rate...

  • Page 135
    ... expense Service cost ...Interest cost ...Expected return on plan assets ...Amortization of prior service cost (credit) ...Curtailments, settlements, and other losses ...Net periodic pension and OPEB expense ...Weighted-average assumptions used to determine benefit obligations Discount rate ...Rate...

  • Page 136
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Predecessor January 1, 2009 Through July 9, 2009 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Pension Benefits Pension Benefits Other Benefits Other Benefits Components of expense Service cost ...Interest cost ...Expected return on plan assets...

  • Page 137
    ... of fixed income investments compared to last year. The salaried pension plan has a higher target proportion of fixed income investments than the hourly pension plan and therefore, a lower expected return on assets than the hourly pension plan. General Motors Company 2011 Annual Report 135

  • Page 138
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The expected return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans. The rates of 6.5% and 7.4% for the years ended December 31, ...

  • Page 139
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Assets and Fair Value Measurements The following tables summarize the fair value of defined benefit pension plan assets by asset class (dollars in millions): Fair Value Measurements of U.S. Plan Assets ...

  • Page 140
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Fair Value Measurements of U.S. Plan Assets at December 31, 2010 Fair Value Measurements of Non-U.S. Plan Assets at December 31, 2010 Total Non-U.S. Plan Assets Total U.S. and NonU.S. Plan Assets Level ...

  • Page 141
    ...Level 3 Balance at December 31, 2011 Assets Common and preferred stocks ...Government and agency debt securities ...Corporate debt securities ...Non-agency mortgage and asset-backed securities ...Group annuity contracts ...Investment funds Equity funds ...Fixed income funds ...Funds of hedge funds...

  • Page 142
    ... funds Equity funds ...Fixed income funds ...Funds of hedge funds ...Global macro funds ...Multi-strategy funds ...Other investment funds ...Private equity and debt investments ...Real estate investments ...Total assets ...Liabilities Common and preferred stocks ...Corporate debt securities ...Total...

  • Page 143
    ... Exchange Rate Movements Balance at December 31, 2011 Assets Government and agency debt securities ...Corporate debt securities ...Agency mortgage and asset-backed securities ...Non-agency mortgage and asset-backed securities ...Investment funds Equity funds ...Fixed income funds ...Funds of hedge...

  • Page 144
    ... consists of investments in private equity and debt funds. These investments are made to gain exposure to and benefit from long-term equity investments in private companies, including leveraged buy-outs, venture capital and distressed debt strategies. 142 General Motors Company 2011 Annual Report

  • Page 145
    ... exchange rates might change in a manner that has an adverse effect on the value of the foreign currency denominated assets or liabilities. Forward currency contracts are used to manage and mitigate foreign currency risk. The pension plans may invest in fixed income securities for which any change...

  • Page 146
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We also maintain pension plans for employees in a number of countries outside the U.S. which are subject to local laws and regulations. We have elected the 15-year amortization funding relief option for ...

  • Page 147
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Credit Risk Related Contingent Features Certain of our agreements with counterparties require that we provide cash collateral for net liability positions that we may have with such counterparty. At ...

  • Page 148
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Successor December 31, 2010 Level 1 Level 2 Level 3 Total Assets Foreign currency ...Commodity ...Warrants ...Total ...Liabilities Foreign currency ...Embedded ...Total ... $ 80 93 44 $217 $113 9 $...

  • Page 149
    ... and Hedging" (ASC 815). Automotive Financing - GM Financial GM Financial is exposed to market risks arising from adverse changes in interest rates due to floating interest rate exposure on its credit facilities and on certain securitization notes payable. General Motors Company 2011 Annual Report...

  • Page 150
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The effect of derivative instruments on earnings and Accumulated other comprehensive income was insignificant for the years ended December 31, 2011 and 2010. The following table summarizes interest rate ...

  • Page 151
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Successor Fair Value Measurements on a Recurring Basis December 31, 2010 Level 1 Level 2 Level 3 Total Assets Interest rate swaps ...Interest rate caps ...Total ...Liabilities Interest rate swaps ......

  • Page 152
    .... In connection with the 363 Sale, the UST returned the warrants and they were canceled. Cash Flow Hedges Old GM previously designated certain financial instruments as cash flow hedges to manage its exposure to certain foreign currency exchange risks. 150 General Motors Company 2011 Annual Report

  • Page 153
    ... from Accumulated other comprehensive income (loss) into earnings related to effective cash flow hedging relationships (dollars in millions): Predecessor January 1, 2009 Through July 9, 2009 Automotive sales ...Automotive cost of sales ...Reorganization gains, net ...Net losses reclassified from...

  • Page 154
    ... value of certain operating leases. These guarantees terminate in years ranging from 2016 to 2035. Certain leases contain renewal options. We provide payment guarantees on commercial loans made by Ally Financial and outstanding with certain third parties, such as dealers or rental car companies...

  • Page 155
    ... terminate in years ranging from 2020 to 2026. Credit Card Programs Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles. Environmental Liability Automotive operations, like operations of other companies engaged in similar businesses, are...

  • Page 156
    ... that could be material to our financial condition, results of operations and cash flows in any particular reporting period. Commencing on or about September 29, 2010, current and former hourly employees of GM Korea, our non-wholly owned consolidated subsidiary, filed six separate group actions...

  • Page 157
    ...CONSOLIDATED FINANCIAL STATEMENTS - (Continued) and to facilitate winding down their operations in an orderly fashion by December 31, 2009 or such other date as GMCL approved but no later than on October 31, 2010. The Plaintiff Dealers allege that the Dealer Sales and Service Agreements were wrongly...

  • Page 158
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Asset Retirement Obligations Asset retirement obligations relate to legal obligations associated with retirement of tangible long-lived assets that result from acquisition, construction, development, or ...

  • Page 159
    ...employee termination related costs; (3) ongoing labor costs; and (4) production and other facilitation related costs. In addition, Old GM committed to transfers, subject to certain conditions, of net liabilities from the Delphi Hourly Rate Plan to Old GM's U.S. hourly pension plan. In September 2008...

  • Page 160
    ... total consideration paid under the DMDA and the allocation of such consideration to the various units of account. Note 21. Income Taxes Consolidated The following table summarizes Income (loss) before income taxes and equity income (dollars in millions): Successor Year Ended December 31, 2011 Year...

  • Page 161
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income Tax Expense (Benefit) The following table summarizes Income tax expense (benefit) (dollars in millions): Successor Year Ended December 31, 2011 Year Ended December 31, 2010 July 10, 2009 Through ...

  • Page 162
    ... rise to deferred tax assets (liabilities) (dollars in millions): Successor December 31, 2011 December 31, 2010 Deferred tax assets Postretirement benefits other than pensions ...Pension and other employee benefit plans ...Warranties, dealer and customer allowances, claims and discounts ...Property...

  • Page 163
    .... In the year ended December 31, 2011 we recorded an adjustment to the debt cancellation income that resulted from the 363 Sale. The adjustment resulted in a $2.1 billion increase in valuation allowances related to U.S. Federal and state tax attributes. General Motors Company 2011 Annual Report 161

  • Page 164
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We and Old GM established or released the following significant valuation allowances as a result of a change in our evaluation of deferred tax asset realizability (dollars in millions): Successor Year ...

  • Page 165
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes activity of the total amounts of unrecognized tax benefits (dollars in millions): Successor Year Ended December 31, 2011 Year Ended December 31, 2010 July 10, 2009 Through ...

  • Page 166
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) have open tax years from 2002 to 2011 with various significant tax jurisdictions. These open years contain matters that could be subject to differing interpretations of applicable tax laws and ...

  • Page 167
    ... in Brazil implemented in the three months ended December 31, 2011. A total of 900 employees in Brazil participated in the separation program at a total cost of $74 million. Liabilities were recorded as offers to the employees were irrevocably accepted. General Motors Company 2011 Annual Report 165

  • Page 168
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Year Ended December 31, 2010 GMNA recorded charges, interest accretion and other, and revisions to estimates primarily related to increased production capacity utilization, which resulted in the recall ...

  • Page 169
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Old GM The following table summarizes the reserves related to restructuring and other initiatives (excluding restructuring reserves related to dealer wind-down agreements) and charges by segment, ...

  • Page 170
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Dealer Wind-downs GM and Old GM We market vehicles worldwide through a network of independent retail dealers and distributors. We determined that a reduction in the number of GMNA dealerships was ...

  • Page 171
    ... 31, 2014, the Series A Preferred Stock may be redeemed, in whole or in part, for cash at a price per share equal to the $25.00 per share liquidation amount, plus any accrued and unpaid dividends. Upon a redemption or purchase of any or all Series A General Motors Company 2011 Annual Report 169

  • Page 172
    ... accrued and unpaid dividends on the Series A Preferred Stock and Series B Preferred Stock are paid in full. Holders of common stock are entitled to one vote per share on all matters submitted to our stockholders for a vote. The liquidation rights of 170 General Motors Company 2011 Annual Report

  • Page 173
    ... interests changes (dollars in millions): Successor For The Year Ended December 31, 2011 July 10, 2009 Through December 31, 2009 Net income (loss) attributable to common stockholders ...Increase in capital surplus resulting from GM Korea equity rights offering ...Increase in capital surplus...

  • Page 174
    ... other comprehensive income (loss), net of taxes (dollars in millions): December 31, 2011 Successor December 31, 2010 December 31, 2009 Foreign currency translation gain ...Cash flow hedging gains (losses), net ...Net unrealized gain (loss) on securities ...Defined benefit plans, net ...Accumulated...

  • Page 175
    ... dividing Net income (loss) attributable to common stockholders by the weighted-average common shares outstanding in the period. Diluted earnings (loss) per share is computed by giving effect to all potentially dilutive securities that were outstanding. General Motors Company 2011 Annual Report 173

  • Page 176
    ... considered outstanding until December 31, 2009 due to the terms of the 2009 UAW Retiree Settlement Agreement. Payments made to the New VEBA were recorded as employer contributions and included in Net income (loss) attributable to stockholders. (c) Includes cumulative dividends on preferred stock of...

  • Page 177
    ...time prior to their respective expiration dates. Upon exercise of the warrants the shares issued will be included in the number of basic shares outstanding used in the computation of earnings per share. Warrants to purchase 313 million shares of our common stock were outstanding at December 31, 2011...

  • Page 178
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Old GM Period January 1, 2009 through July 9, 2009 Diluted earnings per share included the potential effect of the assumed exercise of certain stock options. Old GM excluded 208 million stock options and...

  • Page 179
    ...various vesting conditions. In connection with the 363 Sale, MLC retained the responsibility for administering Old GM's stock incentive plans. We have recorded no compensation expense related to Old GM's stock incentive plans subsequent to July 9, 2009. General Motors Company 2011 Annual Report 177

  • Page 180
    ...a floor). Under a capitalized cost reduction program, we pay an amount at the time of lease or retail contract origination to reduce the principal amount implicit in the lease or retail contract below the standard manufacturers' suggested retail price. 178 General Motors Company 2011 Annual Report

  • Page 181
    ... MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Under a lease pull-ahead program, a customer is encouraged to terminate their lease early and buy or lease a new GM vehicle. Ally Financial waives the customer's remaining payment obligation under their current...

  • Page 182
    ... quarterly financial information (dollars in millions, except per share amounts): 1st Quarter Successor 2nd Quarter 3rd Quarter 4th Quarter 2011 Total net sales and revenue ...Automotive gross margin ...Net income ...Net income attributable to stockholders ...Earnings per share, basic ...Earnings...

  • Page 183
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 1st Quarter Successor 2nd Quarter 3rd Quarter 4th Quarter 2010 Total net sales and revenue ...Automotive gross margin ...Net income ...Net income attributable to stockholders ...Earnings per share, ...

  • Page 184
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Substantially all of the cars, trucks and parts produced are marketed through retail dealers in North America, and through distributors and dealers outside of North America, the substantial majority of ...

  • Page 185
    ... our New Delphi Class A Membership Interests. Refer to Note 10 for additional information on the sale of New Delphi. (c) Amounts exclude changes related to income tax expense (benefits) in jurisdictions with a full valuation allowance throughout the period. General Motors Company 2011 Annual Report...

  • Page 186
    ... between segments have been eliminated for presentation purposes as these amounts are not expected to be paid. (d) Amounts exclude changes related to income tax expense (benefits) in jurisdictions with a full valuation allowance throughout the period. 184 General Motors Company 2011 Annual Report

  • Page 187
    ... related to Ally Financial common stock of $270 million and charges related to Delphi of $177 million in Corporate. (c) Amounts exclude changes related to income tax expense (benefits) in jurisdictions with a full valuation allowance throughout the period. General Motors Company 2011 Annual Report...

  • Page 188
    ...130,687) $ $ 331 $ 273 - $(130,074) (a) Amounts exclude changes related to income tax benefits in jurisdictions with a full valuation allowance throughout the period. (b) Refer to Note 32 for additional information on Reorganization gains, net. 186 General Motors Company 2011 Annual Report

  • Page 189
    ... Revenue Assets Predecessor At and For the Period January 1, 2009 Through July 9, 2009 Net Long Sales & Lived Revenue Assets North America U.S...Canada and Mexico ...GM Financial U.S...Canada ...Europe France ...Germany ...Italy ...Spain ...United Kingdom ...Other European Countries ...Asia Korea...

  • Page 190
    ...retiree healthcare plan ...UAW hourly retiree medical plan: Common stock and warrants contributed to VEBA ...Notes contributed to VEBA ...Series A Preferred Stock contributed to VEBA ... $1,864 $1,122 $ $ $ - - - $ $ - - $5,156 $2,825 $5,257 188 General Motors Company 2011 Annual Report

  • Page 191
    ... common stock contributed to our pension plans and warrants, common stock, notes and preferred stock issued to settle certain hourly retirees healthcare benefit obligations. Note 32. Chapter 11 Proceedings and the 363 Sale Background Over time as Old GM's market share declined in North America, Old...

  • Page 192
    ... to support Old GM's Canadian operations. The following table summarizes the total funding and funding commitments Old GM received from the U.S. and Canadian governments and the additional notes Old GM issued related thereto in the period December 31, 2008 through July 9, 2009 (dollars in millions...

  • Page 193
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) In connection with the 363 Sale, the purchase price paid to Old GM was composed of: • A credit bid in an amount equal to the total of: (1) debt of $19.8 billion under Old GM's UST Loan Agreement, plus ...

  • Page 194
    ... the 363 Sale and fresh-start reporting (dollars in millions): Predecessor January 1, 2009 Through July 9, 2009 Change in net assets resulting from the application of fresh-start reporting ...Fair value of New GM's Series A Preferred Stock, common shares and warrants issued in 363 Sale ...Gain from...

  • Page 195
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (a) Other losses, net primarily relate to costs incurred during Old GM's Chapter 11 proceedings, including: losses of $958 million on extinguishments of debt; losses of $398 million on contract ...

  • Page 196
    ... to Costs and Expenses Additions Charged to Other Accounts Effect of Application of FreshStart Reporting Description Balance at Beginning of Period Deductions Balance at End of Period Successor For the year ended December 31, 2011 Allowances Deducted from Assets Accounts and notes receivable...

  • Page 197
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  • Page 198
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  • Page 199
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  • Page 200
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