General Motors 2011 Annual Report Download - page 12

GENERAL MOTORS COMPANY AND SUBSIDIARIES
General Motors Company was formed 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 (363 Sale) 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 (MD&A) 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 MD&A, for the periods on or before July 9, 2009, as “Old GM” and is the 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 MD&A for the periods
after July 10, 2009 as “MLC.” On December 15, 2011 MLC was dissolved and the Motors Liquidation Company GUC Trust (GUC
Trust) assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded
prior to MLC’s dissolution. MLC transferred to the GUC Trust all of MLC’s remaining undistributed shares of our common stock and
warrants to acquire our common stock.
Presentation and Estimates
Basis of Presentation
This 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 GM Financial.
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.
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 reported amounts of assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues 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.
Prior Period Financial Statements Conformed to Current Period Presentation
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.
In the year ended December 31, 2011 we have recorded foreign currency exchange gains and losses on debt as non-operating items.
This is a change from prior period presentations in which foreign currency exchange gains and losses on debt were recorded in
Automotive cost of sales. We have reclassified all the successor prior periods to conform to our current presentation. The effects of
this reclassification decreased Automotive cost of sales and Interest income and other non-operating income, net by $24 million for
the year ended December 31, 2010 and $65 million for the period July 10, 2009 through December 31, 2009.
Overview
Our Company commenced operations on July 10, 2009 when we completed the acquisition of substantially all of the assets and
assumption of certain liabilities of Old GM through a 363 Sale under the Bankruptcy Code. By commencing operations following the
363 Sale, we were able to take advantage of a competitive labor agreement with our unions, a restructured dealer network and a
reduced and refocused brand strategy in the U.S. focused on four brands.
10 General Motors Company 2011 Annual Report