General Motors 2013 Annual Report Download - page 19

GENERAL MOTORS COMPANY AND SUBSIDIARIES
(g) In December 2013 all of our Series B Preferred Stock automatically converted into 137 million shares of our common stock. Our Series B
Preferred Stock was issued in a public offering in November and December 2010.
(h) In December 2012 we purchased 200 million shares of our common stock for a total of $5.5 billion, which directly reduced shareholder’s equity
by $5.1 billion and we recorded a charge to earnings of $0.4 billion. Our Series A Preferred Stock was reclassified from temporary equity to
permanent equity in the year ended December 31, 2010.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
General Motors Company (sometimes referred to as “we,” “our,” “us,” “ourselves,” the “Company,” “General Motors,” or “GM”)
was incorporated as a Delaware corporation in 2009 and on July 10, 2009 acquired substantially all of the assets and assumed certain
liabilities of General Motors Corporation through the 363 Sale. General Motors Corporation is sometimes referred to in this Annual
Report on Form 10-K (2013 Form 10-K), for the periods on or before July 9, 2009, as “Old GM,” as it is the predecessor entity solely
for accounting and financial reporting purposes. 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 2013 Form 10-K 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.
Basis of Presentation
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in
conjunction with the accompanying consolidated financial statements. We analyze the results of our business through our five
segments: GM North America (GMNA), 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.
In the three months ended March 31, 2013 we changed our managerial and financial reporting structure to measure our reportable
segments revenue and profitability based on the geographic area in which we sell vehicles to third party customers. We have
retrospectively revised the segment presentation for all periods presented. Refer to Note 25 to our consolidated financial statements
for additional information on this change.
Overview
Automotive
Our vision is to design, build and sell the world’s best vehicles. The primary elements of our strategy to achieve this vision are to:
• Deliver a product portfolio of the world’s best vehicles that includes cars, crossovers and trucks, allowing us to maximize sales
under any market condition;
• Sell our vehicles globally by targeting developed markets, which are projected to have increases in vehicle demand as the
global economy recovers, and further strengthening our position in high growth emerging markets;
• Improve revenue realization and maintain a competitive cost structure to allow us to remain profitable at lower industry
volumes and across the lifecycle of our product portfolio;
• Maintain a strong balance sheet by reducing financial leverage given the high operating leverage of our business model; and
• Ensure that our dealers and customers have consistently available, transparent and competitive financing options through GM
Financial and other providers.
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