General Motors 2012 Annual Report Download - page 34

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
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) unfavorable net foreign exchange effect of $0.2 billion due to the strengthening of certain currencies against the U.S.
Dollar; and (3) charges of $0.1 billion related to a single customer’s default under various commercial supply agreements; partially
offset by (4) legal and other expenses of $0.1 billion primarily related to dealer litigation in 2010 which did not recur in 2011.
Other Automotive Expenses, net
Years Ended December 31,
Year Ended
2012 vs. 2011 Change
Year Ended
2011 vs. 2010 Change
2012 2011 2010 Amount % Amount %
Other automotive expenses, net ......................... $438 $58 $118 $380 n.m. $(60) (50.8)%
n.m. = not meaningful
In the year ended December 31, 2012 Other automotive expenses, net increased by $0.4 billion due primarily to the premium paid
of $0.4 billion on the common stock purchase from the UST.
In the year ended December 31, 2011 Other automotive expenses, net was insignificant.
Goodwill Impairment Charges
Years Ended December 31,
Year Ended
2012 vs. 2011 Change
Year Ended
2011 vs. 2010 Change
2012 2011 2010 Amount % Amount %
Goodwill impairment charges .......................... $27,145 $1,286 $— $25,859 n.m. $1,286 n.m.
n.m. = not meaningful
In the year ended December 31, 2012 the Goodwill impairment charges increased by $25.9 billion as we recorded charges of
$26.4 billion, $0.6 billion and $0.2 billion in GMNA, GME and GMIO in 2012 as compared to $1.0 billion and $0.3 billion in GME
and GMIO in 2011. Refer to Note 12 to our consolidated financial statements for additional information related to our Goodwill
impairment charges.
Automotive Interest Expense
Years Ended December 31,
Year Ended
2012 vs. 2011 Change
Year Ended
2011 vs. 2010 Change
2012 2011 2010 Amount % Amount %
Automotive interest expense ................... $489 $540 $1,098 $(51) (9.4)% $(558) (50.8)%
In the year ended December 31, 2012 the decrease in Automotive interest expense was insignificant, as the composition of our debt
and related interest rates did not change significantly.
In the year ended December 31, 2011 Automotive interest expense decreased by $0.6 billion (or 50.8%) due primarily to:
(1) decreased interest expense related to the UST Credit Agreement, Canadian Loan Agreement (Canadian Loan) and VEBA Note
Agreement (VEBA Notes) of $0.3 billion in 2010 which did not recur in 2011; and (2) decreased interest expense related to
obligations with Ally Financial of $0.2 billion in 2010.
General Motors Company 2012 ANNUAL REPORT 31