General Motors 2015 Annual Report Download - page 98

Table of Contents
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
In January 2013 the U.S. Congress enacted federal income tax legislation including an extension of the research credit for tax years 2012 and 2013. As a
result, in the year ended December 31, 2013 we recorded an income tax benefit related to the 2012 research credit of approximately $200 million.
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We have executed various restructuring and other initiatives and we plan to execute additional initiatives in the future, if necessary, in order to align
manufacturing capacity and other costs with prevailing global automotive production and to improve the utilization of remaining facilities. To the extent
these programs involve voluntary separations, no liabilities are generally recorded until offers to employees are accepted. If employees are involuntarily
terminated, a liability is generally recorded at the communication date. Related charges are recorded in Automotive cost of sales and Automotive selling,
general and administrative expense.
The following table summarizes the reserves related to restructuring and other initiatives and charges by segment, including postemployment benefit
reserves and charges (dollars in millions):





Balance at January 1, 2013 $ 653
$ 590
$ 39
$ 38
$ 1,320
Additions, interest accretion and other 58
202
404
50
714
Payments (182)
(299)
(111)
(68)
(660)
Revisions to estimates and effect of foreign currency (32)
10
1
(4)
(25)
Balance at December 31, 2013(a) 497
503
333
16
1,349
Additions, interest accretion and other 42
675
213
83
1,013
Payments (96)
(329)
(342)
(95)
(862)
Revisions to estimates and effect of foreign currency 16
(98)
(38)
(2)
(122)
Balance at December 31, 2014(a) 459
751
166
2
1,378
Additions, interest accretion and other 102
149
208
107
566
Payments (77)
(549)
(160)
(97)
(883)
Revisions to estimates and effect of foreign currency (341)
(81)
(53)
(5)
(480)
Balance at December 31, 2015(a) $ 143
$ 270
$ 161
$ 7
$ 581
__________
(a) The remaining cash payments related to these reserves for restructuring and other initiatives, including temporary layoff benefits of $14 million, $354 million and $353 million
at December 31, 2015, 2014 and 2013 for GMNA, relate primarily to postemployment benefits to be paid.
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Restructuring and other initiatives related primarily to: (1) reversal of the U.S. Supplemental Unemployment Benefit Plan accrual for temporary layoff
benefits of $317 million resulting from a plan amendment in the 2015 UAW Agreement at GMNA; (2) the change in our business model in Russia described
below; and (3) separation and other programs in Australia, Korea, Thailand, Indonesia and India and the withdrawal of the Chevrolet brand from Europe
which had a total cost since inception of $722 million and affected a total of approximately 5,490 employees at GMIO through December 31, 2015. We
expect to complete these programs in GMIO in 2017 and incur additional restructuring and other charges of approximately $210 million.
Our 2015 labor agreement with the UAW includes cash severance incentive programs to qualified U.S. hourly employees. We will record restructuring
charges of $250 million upon irrevocable acceptance received in February 2016.

Restructuring and other initiatives related primarily to: (1) the termination of all vehicle and transmission production at our Bochum, Germany facility
completed in December 2014, which had a total cost since inception of $841 million at GME; (2) separation programs in Australia and Korea, the withdrawal
of the Chevrolet brand from Europe and the cessation of manufacturing in Australia which had a total cost since inception of $514 million at GMIO through
December 31, 2014; and (3) completed
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