General Motors 2012 Annual Report Download - page 110

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 12. Goodwill
The following table summarizes the changes in the carrying amounts of Goodwill (dollars in millions):
GMNA GME GMIO GMSA
Total
Automotive
GM
Financial Total
Balance at January 1, 2011 ............................ $26,394 $ 3,053 $ 901 $165 $ 30,513 $1,265 $ 31,778
Effect of adoption of ASU 2010-28 ..................... — (1,466) — — (1,466) — (1,466)
Impairment charges ................................. — (1,016) (270) — (1,286) — (1,286)
Deconsolidation of entity (a) .......................... — (36) — — (36) — (36)
Goodwill from business combinations ................... 5 — — — 5 14 19
Effect of foreign currency translation and other ........... — 46 (21) (14) 11 (1) 10
Balance at December 31, 2011 ......................... 26,399 581 610 151 27,741 1,278 29,019
Impairment charges ................................. (26,399) (590) (156) — (27,145) — (27,145)
Goodwill from business combinations (b) ................ — — 61 — 61 — 61
Effect of foreign currency translation and other ........... — 9 34 (5) 38 — 38
Balance at December 31, 2012 ......................... $ — $ — $549 $146 $ 695 $1,278 $ 1,973
Accumulated impairment charges at January 1, 2011 ....... $ — $ — $ — $ — $ — $ — $ —
Accumulated impairment charges at December 31, 2011 .... $ — $(2,482) $(270) $ — $ (2,752) $ — $ (2,752)
Accumulated impairment charges at December 31, 2012 .... $(26,399) $(3,072) $(426) $ — $(29,897) $ — $(29,897)
(a) Refer to Note 10 for additional information concerning the deconsolidation of VMM.
(b) Refer to Note 4 for additional information concerning the acquisition of HKJV.
In the three months ended December 31, 2012, 2011 and 2010 we performed our annual goodwill impairment testing as of
October 1 for all reporting units. In addition, in the years ended December 31, 2012 and 2011, we performed event-driven goodwill
impairment tests at various dates for certain of our reporting units.
GMNA
Subsequent to our 2012 annual goodwill impairment testing, we reversed $36.2 billion of our deferred tax asset valuation
allowances for our GMNA reporting unit. The reversal of the deferred tax asset valuation allowances resulted in the carrying amount
of our GMNA reporting unit exceeding its fair value. As a result we performed an event-driven goodwill impairment test in the three
months ended December 31, 2012. Based on the results of this event-driven impairment test we recorded a Goodwill impairment
charge of $26.4 billion in the three months ended December 31, 2012. At December 31, 2012, GMNA’s Goodwill balance was $0.
Refer to Note 21 for additional information on the reversal of our deferred tax asset valuation allowances for our U.S. and Canadian
operations.
GME
We adopted the provisions of ASU 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with
Zero or Negative Carrying Amounts” (ASU 2010-28) on January 1, 2011 and performed Step 2 of the goodwill impairment testing
analysis for our GME reporting unit which had a negative carrying amount resulting in the recognition of a cumulative-effect
adjustment to beginning Retained earnings. GME continued to have a negative carrying amount and because it was more likely than
not further goodwill impairment existed at March 31, 2012 and at December 31, and March 31, 2011, we recorded aggregate
Goodwill impairment charges of $590 million and $1.0 billion in the years ended December 31, 2012 and 2011. At March 31, 2012,
GME’s Goodwill balance was $0.
General Motors Company 2012 ANNUAL REPORT 107