General Motors 2012 Annual Report Download - page 157

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 22. Restructuring and Other Initiatives
We have previously executed various restructuring and other initiatives, and we plan to execute additional initiatives in the future, if
necessary, in order to align manufacturing capacity and other costs with prevailing global automotive production and to improve the
utilization of remaining facilities. To the extent these programs involve voluntary separations, no liabilities are generally recorded until offers
to employees are accepted. If employees are involuntarily terminated, a liability is generally recorded at the communication date. Related
charges are recorded in Automotive cost of sales and Automotive selling, general and administrative expense.
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, including postemployment benefit reserves and charges (dollars in
millions):
GMNA GME GMIO GMSA Total
Balance at January 1, 2010 .................................................. $2,088 $ 451 $ 3 $ 4 $ 2,546
Additions ................................................................ 50 734 1 2 787
Interest accretion and other .................................................. 36 114 — — 150
Payments ................................................................ (712) (589) (1) (7) (1,309)
Revisions to estimates ...................................................... (361) (8) — 1 (368)
Effect of foreign currency ................................................... 34 (38) — — (4)
Balance at December 31, 2010 (a) ............................................ 1,135 664 3 — 1,802
Additions ................................................................ 82 344 — 80 506
Interest accretion and other .................................................. 22 105 — 1 128
Payments ................................................................ (366) (395) (2) (68) (831)
Revisions to estimates ...................................................... 19 (9) — — 10
Effect of foreign currency ................................................... (8) (22) — (1) (31)
Balance at December 31, 2011 (a) ............................................ 884 687 1 12 1,584
Additions ................................................................ 129 188 84 92 493
Interest accretion and other .................................................. 11 66 — — 77
Payments ................................................................ (304) (344) (46) (55) (749)
Revisions to estimates ...................................................... (78) (17) (1) (11) (107)
Effect of foreign currency ................................................... 11 10 1 — 22
Balance at December 31, 2012 (a) ............................................ $ 653 $590 $39 $38 $1,320
(a) The remaining cash payments related to these reserves for restructuring and other initiatives, including temporary layoff benefits
of $356 million, $376 million and $363 million at December 31, 2012, 2011 and 2010 for GMNA, primarily relate to
postemployment benefits to be paid.
Year Ended December 31, 2012
GMNA recorded charges, interest accretion and other and revisions to estimates that increased the reserves by $62 million. The $62
million includes charges for cash severance incentive programs for skilled trade U.S. hourly employees, partially offset by increased
production capacity utilization in Canada.
GMNA recorded charges of $90 million in connection with our 2011 UAW labor agreement that included cash severance incentive
programs which were completed at March 31, 2012 for skilled trade U.S. hourly employees. A total of 1,400 skilled trade U.S. hourly
employees participated in these programs at a total cost of $99 million and was recorded upon irrevocable acceptances by both parties.
Due to the expected closure of the Oshawa Consolidated Plant in June 2014, impacted employees will be eligible for a voluntary
restructuring separation incentive program in accordance with the existing collective bargaining agreement that provides cash and a
General Motors Company 2012 ANNUAL REPORT154