Segment Reporting

We analyze the results of our business through our five segments: GMNA, GME, GMIO, GMSA and GM Financial. 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 loaded 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 factors, we do not manage our business on an individual brand or vehicle basis. 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.

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 June 30, 2012 we also had equity ownership stakes directly or indirectly in entities through various regional subsidiaries, including GM Korea, SGM, SGMW, FAW-GM and HKJV. These companies design, manufacture and market vehicles under the following brands:



• Alpheon	• Buick	• Chevrolet	• Wuling
• Baojun	• Cadillac	• Jiefang

Nonsegment operations are classified as Corporate. Corporate includes investments in Ally Financial, certain centrally recorded income and costs, such as interest, income taxes and corporate expenditures and certain nonsegment specific revenues and expenses.

In 2012 we recorded gains and losses on extinguishment of debt within Corporate for segment reporting purposes. Previously gains and losses on extinguishment of debt were recorded within the applicable automotive segments. This change is consistent with how management currently views the results of our operations.

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 Three Months Ended June 30, 2012
	GMNA		GME			GMIO		GMSA			Corporate			Eliminations			Total Automotive			GM Financial		Eliminations			Total
Sales
External customers	$	21,553	$	5,532		$	5,915	$	4,117		$	10		$	—		$	37,127		$	—	$	—		$	37,127
GM Financial revenue	—		—			—		—			—			—			—			487		—			487
Intersegment	1,347		362			1,030		62			—			(2,802		)	(1		)	—		1			—
Total net sales and revenue	$	22,900	$	5,894		$	6,945	$	4,179		$	10		$	(2,802	)	$	37,126		$	487	$	1		$	37,614

Income (loss) before automotive interest and income taxes-adjusted	$	1,965	$	(361	)	$	557	$	(19	)	$	(236	)	$	(4	)	$	1,902		$	217	$	—		$	2,119
Adjustments	$	—	$	—		$	—	$	—		—			$	—		$	—		—		$	—		—
Corporate interest income											86														86
Automotive interest expense											118														118
Income (loss) before income taxes											(268		)							217					2,087
Income tax expense											132									109					241
Net income (loss) attributable to stockholders											$	(400	)							$	108				$	1,846

Equity in net assets of nonconsolidated affiliates	$	64	$	49		$	6,942	$	3		$	—		$	—		$	7,058		$	—	$	—		$	7,058
Total assets	$	89,874	$	15,872		$	23,481	$	12,629		$	29,804		$	(33,780	)	$	137,880		$	14,673	$	(566	)	$	151,987
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets	$	894	$	295		$	149	$	117		$	14		$	(1	)	$	1,468		$	54	$	(2	)	$	1,520
Equity income, net of tax and gain on disposal of investments	$	2	$	—		$	298	$	—		$	—		$	—		$	300		$	—	$	—		$	300

Significant non-cash charges not classified as adjustments
Impairment charges related to long-lived assets	$	21	$	—		$	2	$	—		$	—		$	—		$	23		$	—	$	—		$	23
Impairment charges related to equipment on operating leases	14		61			—		—			—			—			75			—		—			75
Total significant non-cash charges	$	35	$	61		$	2	$	—		$	—		$	—		$	98		$	—	$	—		$	98



	For the Six Months Ended June 30, 2012
	GMNA		GME			GMIO			GMSA		Corporate			Eliminations			Total Automotive			GM Financial		Eliminations			Total
Sales
External customers	$	44,728	$	10,787		$	10,931		$	7,984	$	25		$	—		$	74,455		$	—	$	—		$	74,455
GM Financial revenue	—		—			—			—		—			—			—			918		—			918
Intersegment	2,348		620			2,074			134		—			(5,177		)	(1		)	—		1			—
Total net sales and revenue	$	47,076	$	11,407		$	13,005		$	8,118	$	25		$	(5,177	)	$	74,454		$	918	$	1		$	75,373

Income (loss) before automotive interest and income taxes-adjusted	$	3,656	$	(617	)	$	1,086		$	64	$	(255	)	$	(31	)	$	3,903		$	398	$	—		$	4,301
Adjustments(a)	$	—	$	(590	)	$	(22	)	$	—	—			$	—		$	(612	)	—		$	—		(612		)
Corporate interest income											175														175
Automotive interest expense											228														228
Loss on extinguishment of debt											18									—					18
Income (loss) before income taxes											(326		)							398					3,618
Income tax expense											274									183					457
Net income (loss) attributable to stockholders											$	(600	)							$	215				$	3,161

Expenditures for property	$	2,241	$	624		$	616		$	538	$	33		$	—		$	4,052		$	7	$	—		$	4,059
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets	$	1,782	$	575		$	278		$	235	$	26		$	(1	)	$	2,895		$	97	$	(4	)	$	2,988
Equity income, net of tax and gain on disposal of investments	$	4	$	—		$	719		$	—	$	—		$	—		$	723		$	—	$	—		$	723

Significant non-cash charges not classified as adjustments in (a)
Impairment charges related to long-lived assets	$	45	$	—		$	8		$	1	$	—		$	—		$	54		$	—	$	—		$	54
Impairment charges related to equipment on operating leases	34		96			—			—		—			—			130			—		—			130
Total significant non-cash charges	$	79	$	96		$	8		$	1	$	—		$	—		$	184		$	—	$	—		$	184

__________


(a)	Consists of Goodwill impairment charges of $590 million in GME and $22 million in GMIO.



	For the Three Months Ended June 30, 2011
	GMNA		GME		GMIO		GMSA		Corporate			Eliminations			Total Automotive		GM Financial			Eliminations		Total
Sales
External customers	$	22,097	$	7,128	$	5,505	$	4,299	$	14		$	—		$	39,043	$	—		$	—	$	39,043
GM Financial revenue	—		—		—		—		—			—			—		330			—		330
Intersegment(a)	1,031		331		897		64		—			(2,323		)	—		—			—		—
Total net sales and revenue	$	23,128	$	7,459	$	6,402	$	4,363	$	14		$	(2,323	)	$	39,043	$	330		$	—	$	39,373

Income (loss) before automotive interest and income taxes-adjusted	$	2,249	$	102	$	573	$	57	$	(138	)	$	(25	)	$	2,818	$	144		$	—	$	2,962
Adjustments	$	—	$	—	$	—	$	—	—			$	—		$	—	—			$	—	—
Corporate interest income									124													124
Automotive interest expense									155													155
Income (loss) before income taxes									(169		)						144					2,931
Income tax benefit									(44		)						(17		)			(61		)
Net income (loss) attributable to stockholders									$	(125	)						$	161				$	2,992

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets	$	990	$	374	$	123	$	115	$	13		$	—		$	1,615	$	19		$	—	$	1,634
Equity income, net of tax and gain on disposal of investments	$	3	$	—	$	379	$	—	$	—		$	—		$	382	$	—		$	—	$	382
Significant non-cash charges not classified as adjustments
Impairment charges related to long-lived assets	$	17	$	—	$	—	$	1	$	—		$	—		$	18	$	—		$	—	$	18
Impairment charges related to equipment on operating leases	45		29		—		—		—			—			74		—			—		74
Total significant non-cash charges	$	62	$	29	$	—	$	1	$	—		$	—		$	92	$	—		$	—	$	92

__________


(a)	Presentation of intersegment sales has been adjusted to conform to the current presentation.



	For the Six Months Ended June 30, 2011
	GMNA		GME			GMIO			GMSA		Corporate			Eliminations			Total Automotive		GM Financial		Eliminations		Total
Sales
External customers	$	43,380	$	13,390		$	9,997		$	8,145	$	30		$	—		$	74,942	$	—	$	—	$	74,942
GM Financial revenue	—		—			—			—		—			—			—		625		—		625
Intersegment(a)	1,858		939			1,613			114		—			(4,524		)	—		—		—		—
Total net sales and revenue	$	45,238	$	14,329		$	11,610		$	8,259	$	30		$	(4,524	)	$	74,942	$	625	$	—	$	75,567

Income (loss) before automotive interest and income taxes-adjusted	$	3,502	$	107		$	1,159		$	147	$	(158	)	$	(27	)	$	4,730	$	274	$	—	$	5,004
Adjustments(b)	$	1,645	$	(395	)	$	(106	)	$	—	339			$	—		$	1,483	—		$	—	1,483
Corporate interest income											251												251
Automotive interest expense											304												304
Income before income taxes											128								274				6,434
Income tax expense											22								54				76
Net income attributable to stockholders											$	106							$	220			$	6,358

Expenditures for property	$	1,247	$	440		$	428		$	357	$	26		$	(4	)	$	2,494	$	4	$	—	$	2,498
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets	$	1,967	$	714		$	239		$	231	$	26		$	—		$	3,177	$	33	$	—	$	3,210
Equity income, net of tax and gain on disposal of investments	$	1,732	$	—		$	794		$	—	$	—		$	—		$	2,526	$	—	$	—	$	2,526
Significant non-cash charges not classified as adjustments in (b)
Impairment charges related to long-lived assets	$	40	$	—		$	2		$	2	$	—		$	—		$	44	$	—	$	—	$	44
Impairment charges related to equipment on operating leases	60		53			—			—		—			—			113		—		—		113
Total significant non-cash charges	$	100	$	53		$	2		$	2	$	—		$	—		$	157	$	—	$	—	$	157

__________


(a)	Presentation of intersegment sales has been adjusted to conform to the current presentation.


(b)	Consists of the gain on sale of our New Delphi Class A Membership Interests of $1.6 billion in GMNA, Goodwill impairment charges of $395 million in GME, charges related to HKJV of $106 million in GMIO and a gain on the sale of Ally Financial preferred stock of $339 million in Corporate.