General Motors 2013 Annual Report Download - page 61

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Nature of Operations and Basis of Presentation
General Motors Company was formed in 2009 originally as a Delaware limited liability company, Vehicle Acquisition Holdings
LLC, and subsequently converted to a Delaware corporation, NGMCO, Inc. This company, which on July 10, 2009 acquired
substantially all of the assets and assumed certain liabilities of General Motors Corporation through a Section 363 sale under Chapter
11 of the U.S. Bankruptcy Code (363 Sale) and changed its name to General Motors Company, is sometimes referred to in these
consolidated financial statements for the periods on or subsequent to July 10, 2009 as “we,” “our,” “us,” “ourselves,” the “Company,”
“General Motors,” or “GM.” General Motors Corporation is sometimes referred to in these consolidated financial statements, 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.
Old GM was renamed Motors Liquidation Company (MLC), which was dissolved on December 15, 2011 and transferred its
remaining assets and liabilities to the Motors Liquidation Company GUC Trust (GUC Trust).
We design, build and sell cars, trucks and automobile parts worldwide. We also provide automotive financing services through
General Motors Financial Company, Inc. (GM Financial). We analyze the results of our business through our five segments: GM
North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and GM
Financial. Nonsegment operations are classified as Corporate. Corporate includes certain centrally recorded income and costs, such as
interest, income taxes and corporate expenditures and certain nonsegment specific revenues and expenses.
Principles of Consolidation
The consolidated financial statements include our accounts and those of our subsidiaries that we control due to ownership of a
majority voting interest and our consolidated variable interest entities (VIEs) of which we are the primary beneficiary. We continually
evaluate our involvement with VIEs to determine whether we have variable interests and are the primary beneficiary of the VIE.
When these criteria are met, we are required to consolidate the VIE. Our share of earnings or losses of nonconsolidated affiliates is
included in our consolidated operating results using the equity method of accounting when we are able to exercise significant
influence over the operating and financial decisions of the affiliate. We use the cost method of accounting if we are not able to
exercise significant influence over the operating and financial decisions of the affiliate. All intercompany balances and transactions
have been eliminated in consolidation.
Certain prior year amounts were reclassified to conform to our current year presentation.
Use of Estimates in the Preparation of the Financial Statements
The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments
and assumptions that affect the amounts of assets and liabilities at the reporting date and the amounts of revenue and expenses in the
periods presented. We believe that the accounting estimates employed are appropriate and the resulting balances are reasonable;
however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring
adjustments to these balances in future periods.
GM Financial
The amounts presented for GM Financial have been adjusted to include the effect of our tax attributes on GM Financial’s deferred
tax positions and provision for income taxes since the date of acquisition, which are not applicable to GM Financial on a stand-alone
basis, and to eliminate the effect of transactions between GM Financial and the other members of the consolidated group.
Accordingly, the amounts presented will differ from those presented by GM Financial on a stand-alone basis.
Note 2. Significant Accounting Policies
The accounting policies which follow are utilized by our automotive and automotive financing operations, unless otherwise
indicated.
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