General Motors 2013 Annual Report Download - page 83

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The fair value estimates for GM India, Holden and GME real and personal property are based on a valuation premise that assumes
the assets’ highest and best use are different than their current use based on the forecasted financial results of the asset groups.
Note 10. 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, 2012 ..................... $ 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 (a) .......... — — 61 — 61 — 61
Effect of foreign currency and other .............. — 9 34 (5) 38 — 38
Balance at December 31, 2012 .................. — — 549 146 695 1,278 1,973
Impairment charges ........................... — — (541) — (541) — (541)
Goodwill from business combinations (a) .......... — — — 10 10 144 154
Effect of foreign currency and other .............. — — (8) (18) (26) — (26)
Balance at December 31, 2013 .................. $ — $ — $ — $ 138 $ 138 $ 1,422 $ 1,560
Accumulated impairment charges at January 1,
2012 ..................................... $ — $ (2,482) $ (270) $ — $ (2,752) $ — $ (2,752)
Accumulated impairment charges at December 31,
2012 ..................................... $ (26,399) $ (3,072) $ (426) $ — $ (29,897) $ — $ (29,897)
Accumulated impairment charges at December 31,
2013 ..................................... $ (26,399) $ (3,072) $ (967) $ — $ (30,438) $ — $ (30,438)
(a) Refer to Note 3 for additional information concerning the acquisitions.
In the three months ended December 31, 2013, 2012, and 2011 we performed our annual goodwill impairment testing as of
October 1 for all reporting units. In addition, in the years ended December 31, 2013, 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 and recorded a Goodwill impairment charge of $26.4 billion. At December 31, 2012 GMNA’s
Goodwill balance was $0. Refer to Note 18 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 due to further deterioration in the business outlook for GME and increases in the fair value of
estimated employee benefit obligations, we recorded Goodwill impairment charges of $590 million and $1.0 billion in the years ended
December 31, 2012 and 2011. At December 31, 2012 GME’s Goodwill balance was $0.
GMIO
Based on the results of our annual and event-driven goodwill impairment tests, we recorded total Goodwill impairment charges of
$541 million, $156 million and $270 million in the years ended December 31, 2013, 2012 and 2011 within our GMIO segment. The
81