General Motors Co | 2013 | FY | 3

Segment Reporting

We analyze the results of our business through our five segments: GMNA, GME, GMIO, GMSA and GM Financial. The chief operating decision maker evaluates the operating results and performance of our automotive segments through Income (loss) before interest and income taxes, as adjusted for additional amounts, which are presented net of noncontrolling interests, and evaluates GM Financial through income before income taxes. Each segment has a manager responsible for executing our strategies. Our automotive manufacturing operations are integrated within the segments, benefit from broad-based trade agreements and are subject to regulatory requirements, such as Corporate Average Fuel Economy regulations. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles are needed in our product mix in order to attract customers to dealer showrooms and to maintain sales volumes for other, more profitable vehicles. Because of these and other factors, we do not manage our business on an individual brand or vehicle basis.

In the three months ended March 31, 2013 we changed our managerial and financial reporting structure to measure our reportable segments revenue and profitability based on the geographic area in which we sell vehicles to third party customers. We record certain transactions between our automotive and finance segments as intersegment activity and eliminate them in consolidation. The new reporting structure provides clearer profit and revenue visibility across geographic areas and identifies our profitability at the point of sale. Previously, it was based on the geographic area in which the vehicles originated and our managerial and financial reporting structure included intercompany sales and cost of sales in our segment results. Certain expenses such as engineering, warranty, recall campaigns and selling, general and administrative are allocated to the geographic area in which the vehicle is sold to third party customers. We have retrospectively revised the segment presentation for all periods presented.

Substantially all of the cars, trucks and parts produced are marketed through retail dealers in North America, and through distributors and dealers outside of North America, the substantial majority of which are independently owned.

In addition to the products sold to dealers for consumer retail sales, cars and trucks are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. Sales to fleet customers are completed through the network of dealers and in some cases sold directly to fleet customers. Retail and fleet customers can obtain a wide range of aftersale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties.

GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the following four brands:
•     Buick
•     Cadillac
•     Chevrolet
•     GMC

The demands of customers outside of North America are primarily met with vehicles developed, manufactured and/or marketed under the following brands:
•     Buick
•     Chevrolet
•     Holden
•     Vauxhall
•     Cadillac
•     GMC
•     Opel
 

At December 31, 2013 we also had equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia that design, manufacture and market vehicles under the following brands:
•     Alpheon
•     Buick
•     Chevrolet
•     Wuling
•     Baojun
•     Cadillac
•     Jiefang
 

All intersegment balances and transactions have been eliminated in consolidation.

The following tables summarize key financial information by segment (dollars in millions):
 
At and For the Year Ended December 31, 2013
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total Automotive
 
GM Financial
 
Eliminations
 
Total
Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
$
95,091

 
$
20,110

 
$
20,263

 
$
16,478

 
$
150

 
 
 
$
152,092

 
$
—

 
$
—

 
$
152,092

GM Financial revenue
—

 
—

 
—

 
—

 
—

 
 
 
—

 
3,344

 
(9
)
 
3,335

Intersegment
8

 
—

 
—

 
—

 
—

 
 
 
8

 
—

 
(8
)
 
—

Total net sales and revenue
$
95,099

 
$
20,110

 
$
20,263

 
$
16,478

 
$
150

 
 
 
$
152,100

 
$
3,344

 
$
(17
)
 
$
155,427

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before interest and taxes-adjusted
$
7,461

 
$
(844
)
 
$
1,230

 
$
327

 
$
(494
)
 
 
 
$
7,680

 
$
898

 
$
—

 
$
8,578

Adjustments(a)
$
(100
)
 
$
153

 
$
(1,169
)
 
$
(157
)
 
483

 
 
 
$
(790
)
 
(15
)
 
$
—

 
(805
)
Corporate interest income
 
 
 
 
 
 
 
 
249

 
 
 
 
 
 
 
$
(3
)
 
246

Automotive interest expense
 
 
 
 
 
 
 
 
338

 
 
 
 
 
 
 
$
(4
)
 
334

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
212

 
 
 
 
 
—

 
 
 
212

Income (loss) before income taxes
 
 
 
 
 
 
 
 
(312
)
 
 
 
 
 
883

 
 
 
7,473

Income tax expense
 
 
 
 
 
 
 
 
1,826

 
 
 
 
 
300

 
$
1

 
2,127

Net income (loss) attributable to stockholders
 
 
 
 
 
 
 
 
$
(2,138
)
 
 
 
 
 
$
583

 
 
 
$
5,346

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in net assets of nonconsolidated affiliates
$
74

 
$
7

 
$
8,009

 
$
4

 
$
—

 
$
—

 
$
8,094

 
$
—

 
$
—

 
$
8,094

Total assets
$
87,978

 
$
10,341

 
$
23,425

 
$
11,488

 
$
26,460

 
$
(29,642
)
 
$
130,050

 
$
38,084

 
$
(1,790
)
 
$
166,344

Expenditures for property
$
5,466

 
$
770

 
$
772

 
$
444

 
$
92

 
$
5

 
$
7,549

 
$
16

 
$
—

 
$
7,565

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
4,216

 
$
406

 
$
1,806

 
$
522

 
$
63

 
$
(1
)
 
$
7,012

 
$
498

 
$
(10
)
 
$
7,500

Equity income and gain on investments
$
15

 
$
—

 
$
1,794

 
$
1

 
$
—

 
$
—

 
$
1,810

 
$
—

 
$
—

 
$
1,810

__________
(a)
Consists of pension settlement charges of $56 million and charges related to PSA product development agreement of $49 million in GMNA; gain on sale of equity investment in PSA of $152 million in GME; property and intangible asset impairment charges of $774 million, costs related to the withdrawal of the Chevrolet brand in Europe of $621 million and goodwill impairment charges of $442 million, partially offset by GM Korea hourly wage litigation of $577 million and acquisition of GM Korea preferred shares of $67 million in GMIO, all net of noncontrolling interests; Venezuela currency devaluation of $162 million in GMSA; gain on sale of equity investment in Ally Financial of $483 million in Corporate; costs related to the withdrawal of the Chevrolet brand in Europe of $15 million in GM Financial; and income related to various insurance recoveries of $35 million.

 
At and For the Year Ended December 31, 2012
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total Automotive
 
GM Financial
 
Eliminations
 
Total
Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
$
89,912

 
$
20,689

 
$
22,954

 
$
16,700

 
$
40

 
 
 
$
150,295

 
$
—

 
$
—

 
$
150,295

GM Financial revenue
—

 
—

 
—

 
—

 
—

 
 
 
—

 
1,961

 
—

 
1,961

Intersegment
(2
)
 
—

 
—

 
—

 
—

 
 
 
(2
)
 
—

 
2

 
—

Total net sales and revenue
$
89,910

 
$
20,689

 
$
22,954

 
$
16,700

 
$
40

 
 
 
$
150,293

 
$
1,961

 
$
2

 
$
152,256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before interest and taxes-adjusted
$
6,470

 
$
(1,939
)
 
$
2,528

 
$
457

 
$
(400
)
 
 
 
$
7,116

 
$
744

 
$
(1
)
 
$
7,859

Adjustments(a)
$
(29,052
)
 
$
(6,391
)
 
$
(288
)
 
$
27

 
(402
)
 
 
 
$
(36,106
)
 
—

 
$
—

 
(36,106
)
Corporate interest income
 
 
 
 
 
 
 
 
343

 
 
 
 
 
 
 
 
 
343

Automotive interest expense
 
 
 
 
 
 
 
 
489

 
 
 
 
 
 
 
 
 
489

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
250

 
 
 
 
 
—

 
 
 
250

Income (loss) before income taxes
 
 
 
 
 
 
 
 
(1,198
)
 
 
 
 
 
744

 
 
 
(28,643
)
Income tax expense (benefit)
 
 
 
 
 
 
 
 
(35,007
)
 
 
 
 
 
177

 
$
(1
)
 
(34,831
)
Net income attributable to stockholders
 
 
 
 
 
 
 
 
$
33,809

 
 
 
 
 
$
567

 
 
 
$
6,188

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in net assets of nonconsolidated affiliates
$
65

 
$
51

 
$
6,764

 
$
3

 
$
—

 
$
—

 
$
6,883

 
$
—

 
$
—

 
$
6,883

Total assets
$
87,100

 
$
9,669

 
$
25,032

 
$
11,958

 
$
16,991

 
$
(17,006
)
 
$
133,744

 
$
16,368

 
$
(690
)
 
$
149,422

Expenditures for property
$
4,766

 
$
1,035

 
$
1,225

 
$
956

 
$
77

 
$
(4
)
 
$
8,055

 
$
13

 
$
—

 
$
8,068

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
3,663

 
$
6,570

 
$
638

 
$
483

 
$
49

 
$
(1
)
 
$
11,402

 
$
225

 
$
(10
)
 
$
11,617

Equity income and gain on investments
$
9

 
$
—

 
$
1,552

 
$
1

 
$
—

 
$
—

 
$
1,562

 
$
—

 
$
—

 
$
1,562

Valuation allowances against deferred tax assets(b)
$
—

 
$
—

 
$
—

 
$
—

 
$
(36,261
)
 
$
—

 
$
(36,261
)
 
$
(103
)
 
$
—

 
$
(36,364
)
__________
(a)
Consists of Goodwill impairment charges of $26.4 billion, pension settlement charges of $2.7 billion and income related to various insurance recoveries of $9 million in GMNA; property impairment charges of $3.7 billion, intangible assets impairment charges of $1.8 billion, goodwill impairment charges of $590 million, impairment charges related to investment in PSA of $220 million, a charge of $119 million to record General Motors Strasbourg S.A.S. assets and liabilities to estimated fair value and income related to various insurance recoveries of $7 million in GME; GM Korea hourly wage litigation charge of $336 million, goodwill impairment charges of $132 million, which are presented net of noncontrolling interests, income related to various insurance recoveries of $112 million and income related to redemption of the GM Korea mandatorily redeemable preferred shares of $68 million in GMIO; income related to various insurance recoveries of $27 million in GMSA; and a charge of $402 million which represents the premium paid to purchase our common stock from the UST in Corporate.
(b)
Includes valuation allowance releases of $36.5 billion net of the establishment of new valuation allowances of $0.1 billion. Amounts exclude changes related to income tax expense (benefits) in jurisdictions with a full valuation allowance throughout the period.




 
For the Year Ended December 31, 2011
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total Automotive
 
GM Financial
 
Eliminations
 
Total
Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
$
85,988

 
$
25,154

 
$
21,031

 
$
16,632

 
$
61

 
 
 
$
148,866

 
$
—

 
$
—

 
$
148,866

GM Financial revenue
—

 
—

 
—

 
—

 
—

 
 
 
—

 
1,410

 
—

 
1,410

Intersegment
3

 
—

 
—

 
—

 
—

 
 
 
3

 
—

 
(3
)
 
—

Total net sales and revenue
$
85,991

 
$
25,154

 
$
21,031

 
$
16,632

 
$
61

 
 
 
$
148,869

 
$
1,410

 
$
(3
)
 
$
150,276

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before interest and taxes-adjusted
$
6,779

 
$
(1,041
)
 
$
2,232

 
$
158

 
$
(446
)
 
 
 
$
7,682

 
$
622

 
$
—

 
$
8,304

Adjustments(a)
$
2,394

 
$
(1,016
)
 
$
(364
)
 
$
63

 
(216
)
 
 
 
$
861

 
—

 
$
—

 
861

Corporate interest income
 
 
 
 
 
 
 
 
455

 
 
 
 
 
 
 
 
 
455

Automotive interest expense
 
 
 
 
 
 
 
 
540

 
 
 
 
 
 
 
 
 
540

Income (loss) before income taxes
 
 
 
 
 
 
 
 
(747
)
 
 
 
 
 
622

 
 
 
9,080

Income tax expense (benefit)
 
 
 
 
 
 
 
 
(295
)
 
 
 
 
 
185

 
 
 
(110
)
Net income (loss) attributable to stockholders
 
 
 
 
 
 
 
 
$
(452
)
 
 
 
 
 
$
437

 
 
 
$
9,190

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in net assets of nonconsolidated affiliates
$
60

 
$
50

 
$
6,678

 
$
2

 
$
—

 
$
—

 
$
6,790

 
$
—

 
$
—

 
$
6,790

Total assets
$
83,528

 
$
15,777

 
$
22,130

 
$
11,514

 
$
30,244

 
$
(31,333
)
 
$
131,860

 
$
13,112

 
$
(369
)
 
$
144,603

Expenditures for property
$
3,404

 
$
1,016

 
$
907

 
$
880

 
$
44

 
$
(10
)
 
$
6,241

 
$
8

 
$
—

 
$
6,249

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
3,693

 
$
1,371

 
$
491

 
$
454

 
$
50

 
$
(1
)
 
$
6,058

 
$
85

 
$
(2
)
 
$
6,141

Equity income and gain on investments(b)
$
1,733

 
$
—

 
$
1,458

 
$
1

 
$
—

 
$
—

 
$
3,192

 
$
—

 
$
—

 
$
3,192

Reversal of valuation allowances against deferred tax assets(c)
$
—

 
$
—

 
$
—

 
$
—

 
$
(488
)
 
$
—

 
$
(488
)
 
$
—

 
$
—

 
$
(488
)
__________
(a)
Consists of the gain on sale of our New Delphi Class A Membership Interests of $1.6 billion and the gain related to the HCT settlement of $749 million in GMNA; Goodwill impairment charges of $1.0 billion in GME; Goodwill impairment charges of $258 million and charges related to GM India of $106 million in GMIO; a gain on extinguishment of debt of $63 million in GMSA; and impairment charges of $555 million related to Ally Financial common stock and a gain on the sale of Ally Financial preferred stock of $339 million in Corporate.
(b)
Includes a gain of $1.6 billion recorded on the sale of our New Delphi Class A Membership Interests. Refer to Note 8 for additional information on the sale of New Delphi.
(c)
Amounts exclude changes related to income tax expense (benefits) in jurisdictions with a full valuation allowance throughout the period.

Automotive revenue is attributed to geographic areas based on the country in which our subsidiary is located. Automotive Financing revenue is attributed to the geographic area where the financing is originated. The following table summarizes information concerning principal geographic areas (dollars in millions):
 
At and For the Years Ended December 31,
 
2013
 
2012
 
2011
 
Net Sales & Revenue
 
Long-Lived Assets
 
Net Sales & Revenue
 
Long-Lived Assets
 
Net Sales & Revenue
 
Long-Lived Assets
Automotive
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
88,784

 
$
15,844

 
$
85,105

 
$
13,520

 
$
79,868

 
$
11,736

Non-U.S.
63,308

 
12,289

 
65,190

 
12,425

 
68,998

 
13,709

GM Financial
 
 
 
 
 
 
 
 
 
 
 
U.S.
2,233

 
2,472

 
1,832

 
1,112

 
1,363

 
532

Non-U.S.
1,102

 
1,043

 
129

 
590

 
47

 
300

Total consolidated
$
155,427

 
$
31,648

 
$
152,256

 
$
27,647

 
$
150,276

 
$
26,277



No individual country other than the U.S. represented more than 10% of our total Net sales and revenue or Long-lived assets.
 
 
 
 
 
 
 
 
 
 
 
 

us-gaap:SegmentReportingDisclosureTextBlock