General Motors 2013 Annual Report Download - page 81

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes depreciation, impairment charges and amortization expense related to Property, net, recorded in
Automotive cost of sales, GM Financial operating and other expenses, and Automotive selling, general and administrative expense
(dollars in millions):
Years Ended December 31,
2013 2012 2011
Depreciation and amortization expense ................................................ $ 3,959 $ 3,888 $ 3,604
Impairment charges (a) ............................................................ 901 3,793 81
Depreciation, impairment charges and amortization expense ............................... $ 4,860 $ 7,681 $ 3,685
Capitalized software amortization expense (b) .......................................... $ 244 $ 209 $ 203
(a) Includes GMIO assets whose fair value was $131 million at December 31, 2013. Includes GME assets whose fair value was $408 million at
December 31, 2012. Also includes other assets whose fair value was determined to be $0 in the years ended December 31, 2013, 2012 and 2011
measured utilizing Level 3 inputs. Fair value measurements of the non-GMIO and non-GME asset group 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.
Impairment Charges
Year Ended December 31, 2013
GM India
In the three months ended December 31, 2013 we performed a strategic assessment of GM India in response to lower than expected
sales performance of our current product offerings in India, higher raw material costs, unfavorable foreign exchange rates and recent
deterioration in local market conditions. Our strategic review indicated that the existing long-lived assets of the GM India asset group
were not recoverable. In the three months ended December 31, 2013 we recorded asset impairment charges of $280 million to adjust
the carrying amount of GM India’s real and personal property to fair value of $45 million. These charges were recorded in our GMIO
segment in Automotive cost of sales. Our recoverability test of the GM India asset group also included Intangible assets, net and
Goodwill resulting in additional impairment charges of $103 million, for total impairment charges of $383 million. The
noncontrolling interest portion of these charges was $35 million based on our 90.8% ownership of GM India. Refer to Note 11 for
additional information regarding the impairment of Intangible assets, net and Note 10 for additional information regarding the
impairment of Goodwill.
GM Holden Ltd. (Holden)
In December 2013 we announced plans to cease manufacturing and reduce engineering at our Holden subsidiary in Australia by the
end of 2017. As a result we recorded asset impairment charges of $477 million to adjust the carrying amounts of certain long-lived
assets of our Holden asset group to fair value of $71 million. These charges were recorded in our GMIO segment in Automotive cost
of sales. Refer to Note 19 for additional information on the actions taken at Holden.
Year Ended December 31, 2012
During the second half of 2011 and continuing into 2012 the European automotive industry was severely affected by the ongoing
sovereign debt crisis, high unemployment and a lack of consumer confidence coupled with overcapacity and we began to experience
deterioration in cash flows. In response we formulated a plan to implement various actions to strengthen our operations and increase
our competitiveness. During the fourth quarter of 2012 our industry outlook deteriorated further and our forecast of 2013 cash flows
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