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Table of Contents



General Motors Company was incorporated as a Delaware corporation in 2009. We design, build and sell cars, trucks and automobile parts worldwide. We
also provide automotive financing services through GM Financial. We analyze the results of our business through the following segments: GMNA, GME,
GMIO, GMSA and GM Financial. Nonsegment operations are classified as Corporate. Corporate includes certain centrally recorded income and costs such as
interest, income taxes, corporate expenditures and certain nonsegment specific revenues and expenses.

The consolidated financial statements are prepared in conformity with U.S. GAAP. All intercompany balances and transactions have been eliminated in
consolidation.
We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we have
variable interests and are the primary beneficiary. We continually evaluate our involvement with VIEs to determine when these criteria are met. 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.

Accounting estimates are an integral part of the consolidated financial statements. These estimates require the use of judgments and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues 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.

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.

The accounting policies which follow are utilized by our automotive and automotive financing operations, unless otherwise indicated.


Automotive net sales and revenue primarily consist of revenue generated from the sale of vehicles. Vehicle sales are recorded when title and risks and
rewards of ownership have passed to our customers. For the majority of our automotive sales this occurs when a vehicle is released to the carrier responsible
for transporting it to a dealer and when collectability is reasonably assured. Vehicle sales are recorded when the vehicle is delivered to the dealer in most
remaining cases. Provisions for recurring or announced dealer and customer sales and leasing incentives, consisting of allowances and rebates, are recorded as
reductions to Automotive net sales and revenue at the time of vehicle sales. All other incentives, allowances and rebates related to vehicles previously sold
are recorded as reductions to Automotive net sales and revenue when announced. Taxes assessed by various government entities, such as sales, use and value-
added taxes, collected at the time of sale are excluded from Automotive net sales and revenues.
Vehicle sales to daily rental car companies with guaranteed repurchase obligations are accounted for as operating leases. Estimated lease revenue is
recorded ratably over the estimated term of the lease based on the difference between net sales proceeds and the
57