General Motors 2014 Annual Report Download - page 92

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
GME
At the time of our 2012 annual impairment test our GME reporting unit had 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 in the year ended
December 31, 2012.
GMIO
Based on the results of our annual and event-driven goodwill impairment tests we recorded total Goodwill impairment charges of
$541 million and $156 million in the years ended December 31, 2013 and 2012. The impairment charges primarily related to our GM
Korea Company (GM Korea) and Holden reporting units. We performed event-driven goodwill impairment tests for GM Korea in
2013 and 2012 as the fair value of GM Korea continued to be below its carrying amount due to ongoing economic weakness in certain
markets to which GM Korea exports coupled with lower forecasted margins resulting from higher raw material costs and unfavorable
foreign exchange rates. Furthermore in the three months ended December 31, 2013 we announced our plans to cease mainstream
distribution of Chevrolet brand in Western and Central Europe that resulted in the impairment of the remaining goodwill. Chevrolet
sales in Europe are included in our GM Korea operations. We also recorded a Goodwill impairment charge in the three months ended
December 31, 2013 associated with our GM India reporting unit resulting from lower forecasted profitability in India due to lower
than expected sales performance of our current product offerings in India, higher raw material costs, unfavorable foreign exchange
rates and deterioration in local market conditions. Refer to Note 9 for additional information on our operations in India. At
December 31, 2013 the goodwill balance was $0 for all of the reporting units in GMIO.
Note 11. Intangible Assets, net
The following table summarizes the components of Intangible assets, net (dollars in millions):
December 31, 2014 December 31, 2013
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Technology and intellectual property ........ $ 8,193 $ 7,744 $ 449 $ 8,210 $ 7,308 $ 902
Brands ................................ 4,447 683 3,764 4,466 559 3,907
Dealer network and customer relationships . . . 1,094 434 660 1,108 364 744
Favorable contracts and other .............. 345 331 14 345 326 19
Total amortizing intangible assets .......... 14,079 9,192 4,887 14,129 8,557 5,572
Nonamortizing in process research and
development ......................... 96 96 96 96
Total intangible assets .................... $ 14,175 $ 9,192 $ 4,983 $ 14,225 $ 8,557 $ 5,668
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.
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