General Motors 2013 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2013 General Motors annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 11. Intangible Assets, net
The following table summarizes the components of Intangible assets, net (dollars in millions):
December 31, 2013 December 31, 2012
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Technology and intellectual property ........ $ 8,210 $ 7,308 $ 902 $ 7,775 $ 6,320 $ 1,455
Brands ................................ 4,466 559 3,907 4,464 431 4,033
Dealer network and customer relationships . . . 1,108 364 744 1,375 327 1,048
Favorable contracts and other .............. 345 326 19 384 286 98
Total amortizing intangible assets .......... 14,129 8,557 5,572 13,998 7,364 6,634
Nonamortizing in process research and
development ......................... 96 96 175 175
Total intangible assets .................... $ 14,225 $ 8,557 $ 5,668 $ 14,173 $ 7,364 $ 6,809
In December 2012 we entered into a product development agreement with PSA to collaborate on the development of certain vehicle
platforms, components and modules. As a result of this agreement, in the three months ended March 31, 2013 we acquired the rights
to certain technology and intellectual property for total consideration of $642 million. Consideration of $201 million was paid in cash
in May 2013 with the remaining consideration to be paid by May 2018. The acquired rights were recorded at the present value of the
total payments to be made as technology and intellectual property of $594 million.
In December 2013 we agreed with PSA to mutually cancel development of one of the vehicle programs and reduce the amount of
remaining consideration to be paid, resulting in a net charge of $49 million recorded in Automotive cost of sales in GMNA. The net
charge consisted of an impairment of the associated intellectual property of $211 million and a reduction of total consideration from
$642 million to $480 million.
The following table summarizes the amortization expense and impairment charges related to Intangible assets, net (dollars in
millions):
Years Ended December 31,
2013 2012 2011
Amortization expense ............................................................. $ 1,281 $ 1,568 $ 1,804
Impairment charges ............................................................... $ 523 $ 1,755 $ —
The following table summarizes estimated amortization expense related to Intangible assets, net in each of the next five years
(dollars in millions):
2014 2015 2016 2017 2018
Estimated amortization expense .......................................... $ 672 $ 330 $ 310 $ 305 $ 300
Impairment Charges
Year Ended December 31, 2013
GM India
In the three months ended December 31, 2013 we recorded impairment charges of $48 million to adjust the carrying amounts of
Intangible assets, net, primarily favorable contract intangibles, to fair value of $0, because of a lack of economic support associated
83