General Motors 2015 Annual Report Download - page 99

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Table of Contents


separation programs in Brazil and Venezuela which had a total cost since inception of $169 million at GMSA through December 31, 2014.

Restructuring and other initiatives related primarily to: (1) cash severance incentive programs for skilled trade U.S. hourly employees and service cost for
hourly layoff benefits at GMNA; (2) our plan to terminate all vehicle and transmission production at our Bochum, Germany facility by the end of 2014 which
had a total cost since inception of $194 million at GME through December 31, 2013; (3) separation programs in Australia and Korea and programs related to
the withdrawal of the Chevrolet brand from Europe, described below, which had a total cost since inception of $420 million at GMIO through December 31,
2013; and (4) active separation programs in Brazil which had a total cost since inception of $103 million at GMSA through December 31, 2013.

In March 2015 we announced plans to change our business model in Russia and have ceased manufacturing, eliminated Opel brand distribution and
reduced Chevrolet brand distribution in the year ended December 31, 2015. This decision impacts 300 dealers and distributors and 1,130 employees. As a
result we recorded pre-tax charges of $443 million at GME and GMIO through December 31, 2015, net of noncontrolling interests of $56 million. These
charges included dealer restructuring and other contract cancellation costs of $103 million and employee severance costs of $13 million which are reflected
in the table above. The remaining charges for cumulative translation adjustment associated with the substantial liquidation of certain legal entities and other
of $183 million, sales incentives and inventory related costs of $144 million and asset impairment charges of $56 million are not included in the table above.
We may incur additional charges for exit costs of up to approximately $100 million through 2016.

In December 2013 we announced our plans to focus our marketing and product portfolio on our Opel and Vauxhall brands in Western and Central Europe
and cease mainstream distribution of the Chevrolet brand in those markets in 2015. This decision impacts approximately 1,200 Chevrolet dealers and
distributors in the affected countries and approximately 480 Chevrolet Europe employees. In the three months ended December 31, 2013 we recorded pre-tax
charges of $636 million, net of noncontrolling interests of $124 million. These charges included dealer restructuring costs of $233 million and employee
severance costs of $30 million which are reflected in the table above. The remaining charges for intangible asset impairments of $264 million and sales
incentive, inventory related and other costs of $233 million are not included in the table above. Refer to Note 9 for additional information on the intangible
asset impairment charges.

In December 2013 we announced plans to cease vehicle and engine manufacturing and significantly reduce engineering operations at GM Holden Ltd.
(Holden) by the end of 2017. Holden will continue to sell imported vehicles through its Holden dealer network and maintain its global design studio. This
decision affects approximately 2,900 employees at certain Holden facilities. In the three months ended December 31, 2013 we recorded pre-tax charges of
$536 million in Automotive cost of sales consisting primarily of asset impairment charges of $477 million, including property, plant and equipment, which
are not included in the table above. The remaining charges relate to exit-related costs, including certain employee severance related costs, of which $59
million are included in the table above.

The following table summarizes the components of Interest income and other non-operating income, net (dollars in millions):
95