Note 20. Restructuring and Other Initiatives

We have previously executed various restructuring and other initiatives, and we plan to execute additional initiatives in the future, if necessary, in order to align manufacturing capacity and other costs with prevailing global automotive production and to improve the utilization of remaining facilities. Related charges are recorded in Automotive cost of sales and Automotive selling, general and administrative expense.

GM Financial did not execute any new restructuring initiatives in the three and six months ended June 30, 2011.

The following table summarizes the reserves related to restructuring and other initiatives (excluding restructuring reserves related to dealer wind-down agreements) and charges by segment, including postemployment benefit reserves and charges in the three and six months ended June 30, 2011 (dollars in millions):


	GMNA			GME			GMIO			GMSA			Total Automotive
Balance at January 1, 2011	$	1,135		$	664		$	3		$	—		$	1,802
Additions		26			33			—			1			60
Interest accretion and other		7			24			—			—			31
Payments		(129	)		(205	)		(2	)		(1	)		(337	)
Revisions to estimates		7			—			—			—			7
Effect of foreign currency translation		16			34			—			—			50

Balance at March 31, 2011		1,062			550			1			—			1,613

Additions		8			62			—			1			71
Interest accretion and other		6			16			—			—			22
Payments		(109	)		(76	)		—			(1	)		(186	)
Revisions to estimates		(8	)		—			—			—			(8	)
Effect of foreign currency translation		(1	)		11			—			—			10

Balance at June 30, 2011 (a)	$	958		$	563		$	1		$	—		$	1,522

(a)	The remaining cash payments related to these restructuring reserves primarily relate to postemployment benefits to be paid.

GMNA recorded charges, interest accretion and other and revisions to estimates that increased the reserves by $46 million in the six months ended June 30, 2011. This increase was primarily related to skilled trades hourly U.S. employees who participated in a special attrition program.

GME recorded charges and interest accretion and other of $78 million and $135 million for separation programs in the three and six months ended June 30, 2011 primarily related to previously announced programs in Germany.

Restructuring and early retirement programs in Spain, the U.K. and Belgium were essentially completed in 2010 and we also initiated a program in Germany in 2010. Through June 30, 2011 these programs had a total cost of $800 million and affected a total of 5,000 employees and included the closure of the Antwerp, Belgium facility. We expect to incur an additional $400 million, primarily in 2011 and 2012, to complete these programs, which will affect an additional 2,000 employees. As these programs primarily involve voluntary separations, no liabilities are recorded until offers to employees are accepted. To the extent employees will be involuntarily terminated, a liability is recorded at the communication date.


	GMNA			GME			GMIO			GMSA			Total
Balance at January 1, 2010	$	2,088		$	451		$	3		$	4		$	2,546
Additions		7			273			—			—			280
Interest accretion and other		10			32			—			—			42
Payments		(243	)		(37	)		(1	)		(2	)		(283	)
Revisions to estimates		(104	)		—			—			—			(104	)
Effect of foreign currency translation		24			(33	)		—			—			(9	)

Balance at March 31, 2010		1,782			686			2			2			2,472

Additions		21			207			—			—			228
Interest accretion and other		10			28			—			—			38
Payments		(178	)		(257	)		—			(2	)		(437	)
Revisions to estimates		(1	)		(8	)		—			1			(8	)
Effect of foreign currency translation		(25	)		(63	)		—			—			(88	)

Balance at June 30, 2010 (a)	$	1,609		$	593		$	2		$	1		$	2,205

(a)	The remaining cash payments related to these restructuring reserves primarily relate to postemployment benefits to be paid.

GMNA recorded charges, interest accretion and other and revisions to estimates that increased the restructuring reserves by $30 million in the three months ended June 30, 2010 and decreased the restructuring reserves by $57 million in the six months ended June 30, 2010. The increase in the three months ended June 30, 2010 was primarily related to a Canadian hourly separation program at the Oshawa Facility which partially offset the decrease recorded in the three months ended March 31, 2010 that was primarily related to increased production capacity utilization resulting in the recall of idled employees to fill added shifts at multiple production sites.

GME recorded charges, and interest accretion and other and revisions to estimates of $227 million and $532 million in the three and six months ended June 30, 2010 for separation programs primarily related to the following initiatives:

•

Separation charges of $169 million and $353 million in the three and six months ended June 30, 2010 for a separation plan related to the closure of the Antwerp, Belgium facility which affected 2,600 employees.

•

Separation charges of $72 million in the six months ended June 30, 2010 and revisions to estimates of $8 million to decrease the reserve in the three months ended June 30, 2010 related to separation/layoff plans and an early retirement plan in Spain which affected 1,200 employees.

•

Separation charges of $25 million in the three months ended June 30, 2010 related to a voluntary separation program in the United Kingdom.

•

Separation charges of $11 million and $27 million and interest accretion and other of $26 million and $56 million in the three and six months ended June 30, 2010 related to previously announced programs in Germany.

Dealer Wind-downs

The following table summarizes GMNA's restructuring reserves related to dealer wind-down agreements in the three and six months ended June 30, 2011 (dollars in millions):


	U.S.			Canada and Mexico			Total
Balance at January 1, 2011	$	135		$	9		$	144
Revisions to estimates		(6	)		—			(6	)
Payments		(80	)		—			(80	)

Balance at March 31, 2011		49			9			58

Revisions to estimates		—			(1	)		(1	)
Payments		(24	)		—			(24	)

Balance at June 30, 2011	$	25		$	8		$	33

The following table summarizes GMNA's restructuring reserves related to dealer wind-down agreements in the three and six months ended June 30, 2010 (dollars in millions):


	U.S.			Canada and Mexico			Total
Balance at January 1, 2010	$	460		$	41		$	501
Additions		9			9			18
Payments		(44	)		(28	)		(72	)
Effect of foreign currency translation		—			2			2

Balance at March 31, 2010		425			24			449

Revisions to estimates		(6	)		—			(6	)
Payments		(140	)		(4	)		(144	)
Effect of foreign currency translation		—			—			—

Balance at June 30, 2010	$	279		$	20		$	299