General Motors 2011 Annual Report Download - page 116

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
measured utilizing level 3 inputs. Fair value measurements of long-lived assets utilized projected cash flows discounted at a rate
commensurate with the perceived business risks related to the assets involved.
(b) Included in Total depreciation, impairment charges and amortization expense.
Old GM initiated restructuring plans prior to the 363 Sale to reduce the total number of powertrain, stamping and assembly plants
and to eliminate certain brands and nameplates. In addition, MLC retained certain assets that we did not acquire in connection with
the 363 Sale and were deemed not to have a useful life beyond July 9, 2009. Old GM recorded incremental depreciation and
amortization on certain of these assets as they were expected to be utilized over a shorter period of time than their previously
estimated useful lives. We record incremental depreciation and amortization for changes in useful lives subsequent to the initial
determination. Old GM recorded incremental depreciation and amortization of approximately $2.8 billion in the period January 1,
2009 through July 9, 2009.
Note 12. Goodwill
Consolidated
The following table summarizes the changes in the carrying amounts of Goodwill (dollars in millions):
Successor
GMNA GME GMIO GMSA
Total
Automotive
GM
Financial Total
Balance at January 1, 2010 ............................. $26,409 $ 3,335 $ 771 $157 $30,672 $ — $30,672
Reporting unit reorganization ........................... — (82) 82 — — — —
Goodwill acquired (a) ................................. — — — — — 1,265 1,265
Disposals ........................................... (17) — (2) — (19) — (19)
Effect of foreign currency translation and other ............. 2 (200) 50 8 (140) — (140)
Balance at December 31, 2010 .......................... 26,394 3,053 901 165 30,513 1,265 31,778
Effect of adoption of ASU 2010-28 ...................... — (1,466) — — (1,466) — (1,466)
Impairment charges ................................... — (1,016) (270) — (1,286) — (1,286)
Deconsolidation of entity (b) ........................... — (36) — — (36) — (36)
Goodwillacquired.................................... 5 — — — 5 14 19
Effect of foreign currency translation and other . . . . . . . . . . . . . — 46 (21) (14) 11 (1) 10
Balance at December 31, 2011 .......................... $26,399 $ 581 $ 610 $151 $27,741 $1,278 $29,019
Accumulated impairment charges at January 1, 2010 ........ $ — $ — $ — $ — $ — $ — $ —
Accumulated impairment charges at December 31, 2010 ..... $ — $ — $ — $ — $ — $ — $ —
Accumulated impairment charges at December 31, 2011 (c) . . . $ — $(2,482) $(270) $ — $ (2,752) $ — $ (2,752)
(a) Refer to Note 4 for additional information concerning the acquisition of AmeriCredit.
(b) Refer to Note 10 for additional information concerning the deconsolidation of VMM.
(c) Includes impairment charges of $1.5 billion recorded as a cumulative-effect adjustment to beginning Retained earnings due to the
adoption of ASU 2010-28.
We adopted the provisions of ASU 2010-28 on January 1, 2011 and performed Step 2 of the goodwill impairment testing analysis
for our GME reporting unit which had a negative carrying amount resulting in the recognition of a cumulative-effect adjustment to
beginning Retained earnings. GME continued to have a negative carrying amount and because it was more likely than not further
goodwill impairment existed at December 31, 2011 and at March 31, 2011 we recorded impairment charges of $1.0 billion in the year
ended December 31, 2011. Refer to Note 3 for additional information on ASU 2010-28.
114 General Motors Company 2011 Annual Report