General Motors 2011 Annual Report Download - page 96

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
would be required. If it is not more likely than not that the fair value of the reporting unit is less than the carrying amount, then
goodwill is not considered to be impaired. ASU 2011-08 does not change how goodwill is calculated or assigned to reporting units,
nor does it revise the requirement to test goodwill at least annually for impairment. We adopted ASU 2011-08 effective October 1,
2011. The adoption of this ASU did not have an effect on the conclusions reached during our goodwill impairment assessments
performed in the three months ended December 31, 2011.
Accounting Standards Not Yet Adopted
In May 2011 the FASB issued ASU 2011-04, “Fair Value Measurement: Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04). Key provisions of the amendments in ASU
2011-04 include: (1) a prohibition on grouping financial instruments for purposes of determining fair value, except in limited cases;
(2) an extension of the prohibition against the use of a blockage factor to all fair value measurements; and (3) a requirement that for
recurring Level 3 fair value measurements, entities disclose quantitative information about unobservable inputs, a description of the
valuation process used and qualitative details about the sensitivity of the measurements. For items not carried at fair value but for
which fair value is disclosed, entities will be required to disclose the level within the fair value hierarchy that applies to the fair value
measurement disclosed. This ASU is effective for interim and annual periods beginning after December 15, 2011. The adoption of
ASU 2011-04 is not expected to have a significant effect on our fair value measurements utilized within the consolidated financial
statements.
Note 4. Acquisition and Disposal of Businesses
Acquisition of Additional GM Korea Interests
In March 2011 we completed the acquisition of an additional 6.9% interest in GM Korea Company (GM Korea) for cash of $100
million. The transaction was accounted for as an equity transaction as we retain the controlling financial interest in GM Korea. This
transaction reduced our equity attributable to Noncontrolling interests by $134 million and our Accumulated other comprehensive
income by $7 million and increased our Capital surplus by $41 million. We now own 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 a more complete range of
financing options to our customers across the U.S. and Canada, specifically focusing on providing additional capabilities in leasing
and sub-prime vehicle financing options.
94 General Motors Company 2011 Annual Report