For Release:
July 31, 2007, 7:00 a.m. EDT
GM Reports Preliminary Second Quarter Financial Results
Record automotive revenue of $45.9 billion
Reported net income of $891 million, adjusted net income of $1.4 billion
Adjusted automotive operating cash flow of $1.1 billion
Improved liquidity position of $27.2 billion
DETROIT— General Motors Corp. (NYSE: GM) today released its preliminary financial results for the 2007 second quarter, marked by record automotive revenue driven by strong sales in key growth markets, improved net income, and solid operating cash flow.
“We again saw improved results in sales, income and cash flow this quarter, driven by the continued successful implementation of our business strategies,” said Rick Wagoner, GM chairman and chief executive officer. “In particular, our heavy commitment to key growth markets around the world really paid off in strong growth and earnings. In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven.”
GM reported net income of $891 million, or $1.56 per diluted share, for the second quarter of 2007, an improvement of $4.3 billion compared with a reported net loss of $3.4 billion, or $5.98 per diluted share, in the year-ago quarter.
The results for the second quarter 2007 included $520 million, or $.92 per diluted share, in net special items, including $374 million in charges associated with GM’s support of the bankruptcy and reorganization of Delphi and various GM North America (GMNA) restructuring-related charges. Details on the special charges are included in the “Highlights” section of this news release.
2
GM posted 2007 second-quarter adjusted net income, excluding special items, of $1.4 billion, or $2.48 per diluted share, compared to $1.1 billion, or $2.03 per diluted share, in the year-ago quarter.
GM Automotive Operations
GM’s global automotive net income from continuing operations totaled $764 million on an adjusted basis in the second quarter of 2007 (reported net income from continuing operations of $618 million), compared to an adjusted net income of $367 million (reported net loss from continuing operations of $3.48 billion) in the second quarter 2006. Results for GM’s automotive operations, specifically GMNA, exclude Allison Transmission which is now classified as a discontinued operation and an asset held for sale, pending the close of the previously-announced sale transaction.
GM’s global sales volume surpassed 2.4 million units in the second quarter, up marginally from the same quarter a year ago. Global market share was down slightly at 13.3 percent, compared to 13.7 percent in the year-ago period, driven by a softer U.S. market, a reduction in fleet sales, and a disciplined incentive strategy.GM market share outside of North America increased to 9.4 percent in the second quarter 2007, compared to 9.2 percent in the second quarter 2006.
GMNA had adjusted net income from continuing operations of $78 million in the second quarter 2007 (reported net loss from continuing operations of $39 million), compared to adjusted net loss of $94 million from continuing operations (reported net loss from continuing operations of $3.95 billion) in the second quarter 2006. The net income improvements reflect favorable mix and reduced structural costs. These savings were partially offset by lower volume, favorable policy and warranty (P&W) adjustments in the prior-year period and unfavorable foreign exchange.
“It’s true that our North America team has made huge improvements, and we appreciate everyone’s hard work. But our current earnings clearly demonstrate we’ve got more to do,” Wagoner said.
“We remain focused on growing revenue in North America by introducing great new cars and trucks, and enhancing our revitalized sales and marketing strategy. At the same time, we must continue to address our key areas of cost disadvantage such as healthcare. Going forward, we need to generate adequate profitability and cash flow to fund new product and key technology investments, like bio-fuel and hybrid-powered vehicles, to better position our business for sustainable growth.” Wagoner added.
3
GM Europe (GME) posted adjusted net income of $236 million for the quarter (reported net income of $217 million), compared to $143 million in the second quarter of 2006 (reported net loss of $39 million). The results mark the best quarterly performance for GME since the second quarter of 1996. The improved earnings were driven by favorable pricing, combined with solid structural cost performance associated with the region’s ongoing restructuring.
Despite industry pressures in Germany, Europe’s largest vehicle market, GME set a quarterly sales record of 574,000 units, up five percent over the second quarter 2006. The new Opel Corsa small car and the Chevrolet Captiva compact SUV continued to perform especially well. In addition, GME’s multi-brand strategy continues to gain momentum. Chevrolet had record sales of 115,000 units, up 34 percent. GME growth in key Eastern European markets was strong, especially in Russia, where unit sales were up 106 percent over the second quarter 2006, and share was up 3.9 percentage points.
GM Asia Pacific (GMAP) recorded adjusted net income of $237 million in the second quarter (reported net income of $227 million), which marks a second-quarter net income record for the region, and compares with $164 million in the same quarter a year ago (reported net income of $376 million, which included $212 million from the sale of GM’s equity interest in Isuzu). The improvements were largely driven by strong performance at GM Daewoo and GM China. GM enjoyed eight percent sales growth in the Asia Pacific region, and GM China set a new volume record with 234,000 units in the quarter, up over six percent year-over-year. GM sales in South Korea were up 20 percent, and India was up 46 percent aided by the success of the newly-introduced Chevrolet Spark.
GM Latin America, Africa and Middle East (GMLAAM) continued to leverage explosive regional growth and its traditionally strong position in the region. GMLAAM posted its best quarterly net income in a decade with adjusted earnings of $213 million (reported net income also $213 million), compared to $155 million in the same quarter last year (reported net income of $139 million). Improvements in net income were driven primarily by volume growth and favorable pricing. GMLAAM set a volume record for the quarter, selling over 293,000 units, up 20 percent year-over-year. GM sales performance was highlighted by an all-time sales record in Venezuela, and second quarter records in Argentina, Brazil, Chile, Colombia, Egypt, and the Middle East Operations.
4
“As we head into the second half of the year, we’re optimistic about continued growth prospects in key emerging markets. In the U.S., the economy and auto market outlook remains challenging, but we’ll continue our future product and technology investments, while staying focused on growing our revenue and improving our cost competitiveness,” Wagoner said. “We look forward to the U.A.W. negotiations as an opportunity to continue to address issues that are important to the company, the union and our employees.”
In addition to strong year-over-year performance in automotive operations, GM also recognized adjusted net income of $401 million in Corporate Other and Other Financing (reported net income of $27 million). This represents a $517 million improvement over the second quarter 2006, principally related to reductions in income tax contingencies.
GMAC
As a standalone company, GMAC Financial Services reported net income of $293 million for the second quarter 2007, compared to $787 million in the second quarter 2006 which included a one-time gain on the sale of a regional homebuilder of $259 million. GM recognized $139 million in net income attributable to GMAC as a result of its 49 percent equity interest as well as accrued preferred dividends. Financial performance at GMAC represents a $598 million improvement over the first quarter 2007, which was significantly affected by pressures in the U.S. nonprime mortgage market.
“We’re pleased that GMAC returned to profitability in the second quarter, with significantly better results than the first quarter. GMAC’s auto financing and insurance businesses continues to post strong results while the company continues to progress in addressing the challenging conditions in the residential mortgage market,” Wagoner said.
GMAC’s automotive finance, insurance and other operations (excluding Residential Capital, LLC (ResCap)) generated more than twice the net income of these same operations in the year-ago period. Despite continued challenges in the residential mortgage industry, ResCap significantly reduced losses in the second quarter.
5
Cash and Liquidity
GM generated adjusted operating cash flow of $1.1 billion in the second quarter of 2007, up from $600 million in the year-ago quarter, and continues to maintain a strong liquidity position.
Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $27.2 billion as of June 30, 2007, up from $24.7 billion on March 31, 2007. The balance includes $1.4 billion net cash raised through a convertible debt offering in May 2007, which replaced $1.1 billion in convertible debt that was redeemed in March 2007.
As announced in June 2007, the sale of the Allison Transmission business will further bolster GM’s liquidity, with proceeds of approximately $5.6 billion. The sale is expected to close in the third quarter 2007.
# # #
Contacts:
Reneé Rashid-Merem
Phone: 313-665-3128
Email: renee.rashid-merem@gm.com
Randy Arickx
Phone: 313-667-0006
Email: randy.c.arickx@gm.com
6
Forward-looking Statements
In this press release and in related comments by General Motors’ management, we will use words like “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” “designed,” or “impact” to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but GM’s actual results may differ materially due to a variety of important factors. Among other items, such factors include: the ability of GM to realize production efficiencies, to achieve reductions in costs as a result of the turnaround restructuring and health care cost reductions and to implement capital expenditures at levels and times planned by management; the pace of product introductions; market acceptance of the Corporation’s new products; significant changes in the competitive environment and the effect of competition in the Corporation’s markets, including on the Corporation’s pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; changes in the existing, or the adoption of new, laws, regulations, policies or other activities of governments, agencies and similar organizations where such actions may affect the production, licensing, distribution or sale of our products, the cost thereof or applicable tax rates; costs and risks associated with litigation; the final results of investigations and inquiries by the SEC and other governmental agencies; changes in our accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates, including the range of estimates for the Delphi pension benefit guarantees, which could result in an impact on earnings; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees and the successful completion of a collective bargaining agreement; negotiations and bankruptcy court actions with respect to Delphi’s obligations to GM, negotiations with respect to GM’s obligations under the pension benefit guarantees to Delphi employees, and GM’s ability to recover any indemnity claims against Delphi; labor strikes or work stoppages at GM or its key suppliers such as Delphi or financial difficulties at GM’s key suppliers such as Delphi; additional credit rating downgrades and the effects thereof; factors affecting GMAC’s results of operations and financial condition such as credit ratings, interest rates, the housing market(including the downturn in residential mortgages, particularly in the nonprime sector), adequate access to the capital, changes in the residual value of off-lease vehicles, changes in U.S. government-sponsored mortgage programs or disruptions in the markets in which our mortgage subsidiaries operate, and changes in GMAC’s contractual servicing rights; shortages of and price increases for fuel; changes in economic conditions, commodity prices, such as steel and other raw materials, currency exchange rates or political stability in the markets in which we operate; the effects of transactions or alliances entered into by one or more of our competitors; currency exchange rates or political instability in the markets in which we operate; and general economic conditions, in particular stability of consumer confidence. The most recent annual reports on Form 10-K and quarterly reports on Form 10-Q filed by GM and GMAC provide information about these factors, which may be revised or supplemented in future reports to the SEC on those forms.
7
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include the following non-GAAP financial measures: (a) adjusted net income, (b) managerial cash flow, and (c) GM North America vehicle revenue per unit. Each of these financial measures excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles, or GAAP.
Adjusted Net Income
Adjusted net income excludes charges for the special attrition program, restructuring and impairments charges, and gains on the sale of business interests. Each of the adjustments is described in more detail below. This press release also contains a reconciliation of each of these non-GAAP measures to its most comparable GAAP financial measure.
Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that GM management does not consider part of operating results when assessing the performance of the organization and measuring the results of GM’s performance. In addition, GM has historically reported similar non-GAAP financial measures. GM believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management uses these non-GAAP financial measures to evaluate GM’s performance and believes these measures allow GM management to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether the GM North American structural cost turnaround plan is on target. Also, GM management uses adjusted net income for forecasting purposes, and in determining its future capital investment allocations. Also, adjusted net income is a key variable in determining management incentive compensation. Accordingly, GM believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.
While GM believes that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as the special attrition program agreement and restructuring charges that are excluded from GM’s non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. GM compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.
8
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
The following is a discussion of the adjustments to the comparable GAAP financial measure that produces our non-GAAP financial measures:
| • | | Special attrition program charges.Our non-GAAP financial measures exclude the estimated charge associated with the special attrition program agreement among the UAW, GM and Delphi. Management believes it is useful in evaluating the performance of GM and its management teams and business units during a particular time period to exclude charges associated with the special attrition program, because the charge occurs irregularly and is generally associated with one-time structural changes to GM’s North America business. Accordingly, management does not consider these costs as part of its core earnings for purposes of evaluating the performance of the business, and excludes such costs when evaluating the performance of the Corporation, its business units and its management teams and when making decisions to allocate resources among GM’s business units. |
| • | | Restructuring and impairment charges.Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs and lease abandonment costs, and any subsequent changes in estimates related to exit activities as they relate to GM’s significant restructurings, which involved significant layoffs. Management believes the exclusion of restructuring and impairment charges from adjusted net income is useful because management does not consider these costs part of GM’s core earnings in evaluating GM’s operational managers and the exclusion permits investors to evaluate the performance of our management the same way management does. Additionally, management excludes restructuring and impairment charges in its determinations regarding the allocation of resources, such as capital investment, among the Corporation’s business units and as part of its forecasting and budgeting. |
| • | | Gains on the sale of business interests.The gains on the sale of business interests are excluded from adjusted net income. While GM is involved in sales of its business interests from time to time and the Corporation may have significant gains or losses from such sales in the future, such events have historically occurred sporadically. Management excludes the charges associated with these events when it evaluates the Corporation’s operations and for internal reporting, forecasting purposes and allocation of additional resources. |
| • | | Delphi charges.Our non-GAAP financial measures exclude the estimated charges associated with the restructuring of Delphi’s operations. Accordingly, management does not consider these costs as part of its core earnings for purposes of evaluating the performance of the business, and excludes such costs when evaluating the performance of the Corporation, its business units and its management teams and when making decisions to allocate resources among GM’s business units. |
9
General Motors Corporation
Use of Non-GAAP Financial Measures (Concluded)
Managerial Cash Flow
GM also reports non-GAAP managerial automotive operating cash flow in its earnings releases and charts for securities analysts. Management believes that providing managerial automotive operating cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to our core business and cash generated by sales of automotive operating assets and equity investments in companies related to GM’s core business, before funding non-operating-related obligations including debt maturities, dividends and other non-operating items. Management uses this non-GAAP financial measure to assess its automotive cash flow when evaluating the performance of GM, its business units and its management teams and when making decisions to allocate resources among GM’s business units.
GM North America Vehicle Revenue per Unit
GM’s earnings releases and charts for securities analysts also include the use of non-GAAP measures of revenue per vehicle. Management uses revenue per vehicle to track operating efficiency and to facilitate comparisons between periods and between manufacturers, and believes that it would provide valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain vehicles sales to other GM regions that are excluded from GAAP reporting, and excludes non-vehicle sales such as service parts and operations and OnStar service, and other income that GM does not derive from the sale of vehicles, such as interest on the GM credit card. Management also includes sales to daily car rental companies in revenue per vehicle, although they are not treated as sales under GAAP reporting because of GM’s repurchase obligations.
10
General Motors Corporation
List of Special Items — After Tax
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year to Date | |
| | | June 30, 2007 | | | June 30, 2007 | |
| | | Net | | | | | | | Net | | | | |
| | | Income | | | EPS | | | Income | | | EPS | |
REPORTED | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 784 | | | $ | 1.38 | | | $ | 742 | | | $ | 1.31 | |
| Income from discontinued operations | | | 107 | | | | 0.19 | | | | 211 | | | | 0.37 | |
| | | | | | | | | | | | | |
Net income | | $ | 891 | | | $ | 1.57 | | | $ | 953 | | | $ | 1.68 | |
| | | | | | | | | | | | | | | | | |
ADJUSTMENTS | | | | | | | | | | | | | | | | |
| Restructuring Charges (A) | | | 88 | | | | 0.15 | | | | 153 | | | | 0.26 | |
| | | | | | | | | | | | | | | | | |
| Plant Closures (B) | | | (4 | ) | | | (0.01 | ) | | | (31 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | |
| Special Attrition Program (C) | | | (4 | ) | | | (0.01 | ) | | | (15 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | |
| Impairment Charges (D) | | | 66 | | | | 0.12 | | | | 71 | | | | 0.13 | |
| | | | | | | | | | | | | | | | | |
| Delphi (E) | | | 374 | | | | 0.67 | | | | 374 | | | | 0.67 | |
| | | | | | | | | | | | | |
Subtotal | | | 520 | | | | 0.92 | | | | 552 | | | | 0.98 | |
| | | | | | | | | | | | | | | | | |
ADJUSTED | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 1,304 | | | $ | 2.30 | | | $ | 1,294 | | | $ | 2.29 | |
| Income from discontinued operations | | | 107 | | | | 0.19 | | | | 211 | | | | 0.37 | |
| | | | | | | | | | | | | |
Adjusted Income — Basic | | $ | 1,411 | | | $ | 2.49 | | | $ | 1,505 | | | $ | 2.66 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Adjusted Income — Diluted | | | | | | $ | 2.48 | | | | | | | $ | 2.65 | |
| | | | | | | | | | | | | | | |
| | |
| (A) | | Relates to various restructuring initiatives, as follows (after-tax basis): |
| | • | | For the three and six months ended June 30 2007, after-tax restructuring charges of $63 million and $62 million, respectively, were recognized at GMNA relating to a plant closing reserve. |
| |
| | • | | For the three and six months ended June 30, 2007, restructuring charges of $19 million and $56 million, respectively, were recognized at GME for separation programs primarily in Germany and Sweden. |
| |
| | • | | For the three and six months ended June 30 2007, restructuring charges of $6 million and $35 million, respectively, were recognized at GMAP that relate to separation programs at its Australian facilities. |
11
General Motors Corporation
List of Special Items — After Tax
(Dollars in millions except per share amounts)
(Unaudited)
| | |
| (B) | | For the three and six months ended June 30, 2007, after-tax curtailment gains and a favorable after-tax adjustments of $4 million and $31 million, respectively, were recognized by GMNA relating to the closure of two former component plants. |
| |
| (C) | | Relates to a favorable curtailment and true-up adjustment relating to the Special Attrition Program for GMNA. |
| |
| (D) | | For the three and six months ended June 30, 2007, after-tax impairment charges of $66 million and $71 million, respectively, were recognized. The impairments relate primarily to product specific assets at GMNA and GMAP. |
| |
| (E) | | In June 2007, the United Auto Workers union, Delphi Corporation and GM entered into a Memorandum of Understanding. For the three and six months ended June 30, 2007, GM recorded an after-tax charge of $374 million. This charge consists of incremental Delphi retiree health care costs, reimbursement of labor costs at certain Delphi facilities and reimbursement of certain pension obligations for Delphi employees. |
12
General Motors Corporation
List of Special Items — After Tax
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year to Date | |
| | | June 30, 2006 | | | June 30, 2006 | |
| | | Restated | | | Restated | |
| | | Net | | | | | | | Net | | | | |
| | | Income | | | EPS | | | Income | | | EPS | |
REPORTED | | | | | | | | | | | | | | | | |
Loss from continuing operations | | $ | (3,494 | ) | | $ | (6.18 | ) | | $ | (3,001 | ) | | $ | (5.31 | ) |
| Income from discontinued operations | | | 111 | | | | 0.20 | | | | 220 | | | | 0.39 | |
| | | | | | | | | | | | | |
Net loss | | $ | (3,383 | ) | | $ | (5.98 | ) | | $ | (2,781 | ) | | $ | (4.92 | ) |
| | | | | | | | | | | | | | | | | |
ADJUSTMENTS | | | | | | | | | | | | | | | | |
| Special Attrition Program (A) | | | 3,659 | | | | 6.47 | | | | 3,659 | | | | 6.47 | |
| | | | | | | | | | | | | | | | | |
| Sale of GMAC (B) | | | 690 | | | | 1.22 | | | | 690 | | | | 1.22 | |
| | | | | | | | | | | | | | | | | |
| Restructuring charges (C) | | | 198 | | | | 0.35 | | | | 341 | | | | 0.60 | |
| | | | | | | | | | | | | | | | | |
| Impairment charges (D) | | | 197 | | | | 0.35 | | | | 197 | | | | 0.35 | |
| | | | | | | | | | | | | | | | | |
| Sale of Suzuki investment (E) | | | — | | | | — | | | | (395 | ) | | | (0.70) | * |
| | | | | | | | | | | | | | | | | |
| Sale of Isuzu investment (F) | | | (212 | ) | | | (0.38 | ) | | | (212 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | |
Subtotal | | | 4,532 | | | | 8.01 | | | | 4,280 | | | | 7.57 | |
| | | | | | | | | | | | | | | | | |
ADJUSTED | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 1,038 | | | $ | 1.83 | | | $ | 1,279 | | | $ | 2.26 | |
| Income from discontinued operations | | | 111 | | | | 0.20 | | | | 220 | | | | 0.39 | |
| | | | | | | | | | | | | |
Adjusted Income — Basic | | $ | 1,149 | | | $ | 2.03 | | | $ | 1,499 | | | $ | 2.65 | * |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Adjusted Income — Diluted | | | | | | $ | 2.03 | | | | | | | $ | 2.65 | * |
| | | | | | | | | | | | | | | |
| | |
| * | | Adjusted EPS has been changed from $2.69 per share to $2.65 per share to reflect a revision to the special item related to the gain on sale of our Suzuki investment from $372 million, after-tax, to $395 million, after-tax. |
| |
| (A) | | Relates to the results of the GM-UAW-Delphi Special Attrition Program, primarily for payments to employees (approximately $1.4 billion) and for the curtailment charges associated with GM’s U.S. hourly pension plan as a result of the attrition program (approximately $2.9 billion). The charge also includes a favorable revision of the accrual taken in the fourth quarter of 2005 for the North American plant capacity actions (approximately $600 million). |
13
General Motors Corporation
List of Special Items — After Tax
(Dollars in millions except per share amounts)
(Unaudited)
| | |
| (B) | | Relates to the sale of a 51% controlling interest in GMAC, which closed in the fourth quarter of 2006. |
| | • | | Approximately $281 million after tax ($433 million pre-tax) is attributable to differences between tangible book value to be paid by the consortium of investors and GMAC’s actual book value, partially offset by 51% of the effects of previously unrecognized net gains reflected in GMAC’s accumulated other comprehensive income. The pretax portion is recorded as part of the “Other expenses” line item of the consolidated statement of operations, whereas the tax benefit of $152 million is recorded in the “Income tax benefit” line of the consolidated statement of operations. |
| |
| | • | | Approximately $209 million, after tax, associated with incremental tax costs created by book to tax basis differences recognized due to the sale. The tax expense of $209 million is recorded in the “Income tax benefit” line of the consolidated statement of operations. The consolidated statement of operations reflects a pretax loss to date of $1.2 billion in the “Other expenses” line item. The line item includes the $433 million pretax amount noted above, as well as a remaining pretax loss of $775 million attributable to GMAC operating lease assets classified as held for sale. Pursuant to the requirements of Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the company is required to cease depreciation on long-lived assets classified as held for sale. Accordingly, pretax income in the second quarter was higher by $775 million as reported in the “Financial services and insurance expense” line item of the consolidated statement of operations. However, because that amount is not recoverable at close in the sales price, a corresponding increase of $775 million was recorded in the “Other expenses” line item during the quarter, reducing the carrying value of operating lease assets held for sale. |
14
General Motors Corporation
List of Special Items — After Tax
(Dollars in millions except per share amounts)
(Unaudited)
| | | Relates to various restructuring initiatives and other matters, as follows:
Second quarter of 2006: |
| (C) | • | | Charges totaling $182 million were recognized at GME, primarily related to the announced closure in December 2006 of the GM assembly plant in Azambuja, Portugal, which includes amounts for the writedown to fair market value of plant assets, employee separation costs, and contract cancellation charges. Second quarter GME charges also include other product-related asset impairments and separation charges. |
| |
| | • | | Other restructuring charge of $16 million at GMLAAM. |
| | | Year-to-date totals include the following charges recognized in the first quarter of 2006: |
| |
| | • | | Estimated charges of $65 million related to separations of salaried employees at GMNA. |
| |
| | • | | Curtailment charges associated with modifications to the U.S. Retirement Program for Salaried Employees announced in the first quarter of 2006. GMNA and Corporate & Other Operations recognized charges of $12 million and $3 million, respectively, associated with these modifications. |
| |
| | • | | A favorable adjustment of $88 million for higher than anticipated headcount reductions associated with previously announced GMNA plant idling activities. |
| |
| | • | | A charge of $52 million for certain components of the hourly attrition program related to retroactive lump-sum payments, recognized at GMNA. |
| |
| | • | | Other restructuring charges of $72 million and $27 million, recognized at GME and GMLAAM, respectively. |
| (D) | | A charge of $197 million, after tax ($303 million pretax), for the write down of product-related assets at GMNA. |
| |
| (E) | | Relates to the sale of 92.36 million shares of GM’s investment in Suzuki for approximately $2 billion in cash, reducing GM’s equity stake to approximately 3.7% (16.3 million shares). The after-tax gain of $395 million was recognized at GMAP. |
| |
| (F) | | Relates to the sale of GM’s entire investment in Isuzu Motors, Ltd. for an after-tax gain of $212 million. The gain was recognized at GMAP. |
15
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | Restated | |
Total net sales and revenue | | $ | 46,812 | | | $ | 53,899 | | | $ | 90,128 | | | $ | 105,742 | |
| Adjusted | | $ | 46,812 | | | $ | 53,899 | | | $ | 90,128 | | | $ | 105,742 | |
Income (loss) from continuing operations | | $ | 784 | | | $ | (3,494 | ) | | $ | 742 | | | $ | (3,001 | ) |
| Adjusted | | $ | 1,304 | | | $ | 1,038 | | | $ | 1,294 | | | $ | 1,279 | |
Income from discontinued operations | | $ | 107 | | | $ | 111 | | | $ | 211 | | | $ | 220 | |
| Adjusted | | $ | 107 | | | $ | 111 | | | $ | 211 | | | $ | 220 | |
| | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 891 | | | $ | (3,383 | ) | | $ | 953 | | | $ | (2,781 | ) |
| Adjusted | | $ | 1,411 | | | $ | 1,149 | | | $ | 1,505 | | | $ | 1,499 | |
Net margin from continuing operations | | | | | | | | | | | | | | | | |
| (Income from continuing (operations / Total net sales and revenue) | | | 1.7 | % | | | (6.5 | )% | | | 0.8 | % | | | (2.8 | )% |
| Adjusted | | | 2.8 | % | | | 1.9 | % | | | 1.4 | % | | | 1.2 | % |
| | | | | | | | | | | | | | | | | |
Earnings (loss) per share — basic | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 1.38 | | | $ | (6.18 | ) | | $ | 1.31 | | | $ | (5.31 | ) |
| Discontinued operations | | $ | 0.19 | | | $ | 0.20 | | | $ | 0.37 | | | $ | 0.39 | |
| Total | | $ | 1.57 | | | $ | (5.98 | ) | | $ | 1.68 | | | $ | (4.92 | ) |
| | | | | | | | | | | | | | | | | |
Earnings (loss) per share — diluted | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 1.37 | | | $ | (6.18 | ) | | $ | 1.30 | | | $ | (5.31 | ) |
| Discontinued operations | | $ | 0.19 | | | $ | 0.20 | | | $ | 0.37 | | | $ | 0.39 | |
| Total | | $ | 1.56 | | | $ | (5.98 | ) | | $ | 1.67 | | | $ | (4.92 | ) |
| | | | | | | | | | | | | | | | | |
Earnings per share - adjusted diluted | | $ | 2.48 | | | $ | 2.03 | | | $ | 2.65 | | | $ | 2.65 | |
| | | | | | | | | | | | | | | | | |
GM $1-2/3 par value average shares outstanding(Mil’s) | | | | | | | | | | | | | | | | |
| Basic shares | | | 566 | | | | 566 | | | | 566 | | | | 566 | |
| Diluted Shares | | | 569 | | | | 566 | | | | 569 | | | | 566 | |
| | | | | | | | | | | | | | | | | |
Cash dividends per share of common stocks | | $ | 0.25 | | | $ | 0.25 | | | $ | 0.50 | | | $ | 0.50 | |
See reconciliation of adjusted financial results on pages 17-22.
16
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | Restated | |
Automotive total cash & marketable securities at June 30 | | | | | | | | | | | | | | | | |
($Bil’s) | | $ | 23.6 | | | $ | 20.1 | | | | | | | | | |
Readily-available assets in VEBA | | | 3.6 | | | | 2.8 | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Total Automotive cash & marketable securities plus readily-available assets in VEBA | | $ | 27.2 | | | $ | 22.9 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Automotive Operations($Mil’s) | | | | | | | | | | | | | | | | |
| Depreciation | | $ | 1,231 | | | $ | 1,058 | | | $ | 2,488 | | | $ | 2,160 | |
| Amortization of special tools | | | 858 | | | | 1,108 | | | | 1,583 | | | | 1,843 | |
| Amortization of intangible assets | | | 18 | | | | 18 | | | | 35 | | | | 35 | |
| | | | | | | | | | | | | |
| Total | | $ | 2,107 | | | $ | 2,184 | | | $ | 4,106 | | | $ | 4,038 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
GM’s share of nonconsolidated affiliates’ net income (loss)(Mil’s) | | | | | | | | | | | | | | | | |
| GMAC | | $ | 118 | | | $ | — | | | $ | (65 | ) | | $ | — | |
| Shanghai GM and SAIC-GM-Wuling | | | 117 | | | | 85 | | | | 233 | | | | 157 | |
| Other + | | | 52 | | | | 122 | | | | 92 | | | | 176 | |
| | | | | | | | | | | | | |
| | | $ | 287 | | | $ | 207 | | | $ | 260 | | | $ | 333 | |
| | | | | | | | | | | | | |
| | |
| + | | GM sold most of its investment in Suzuki in the first quarter of 2006, and consequently now accounts for its remaining investment as an equity security, and no longer records income on the equity basis. |
17
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Second Quarter | | | | |
| | | | | | | | | | | 2007 and 2006 | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Total net sales and revenue | | | | | | | | | | | | | | | | | | | | | | | | �� |
| GMNA | | $ | 29,574 | | | $ | 30,850 | | | $ | — | | | $ | — | | | $ | 29,574 | | | $ | 30,850 | |
| GME | | | 9,558 | | | | 8,740 | | | | — | | | | — | | | | 9,558 | | | | 8,740 | |
| GMLAAM | | | 4,330 | | | | 3,829 | | | | — | | | | — | | | | 4,330 | | | | 3,829 | |
| GMAP | | | 5,446 | | | | 3,782 | | | | — | | | | — | | | | 5,446 | | | | 3,782 | |
| Auto Eliminations (1) | | | (3,012 | ) | | | (2,337 | ) | | | — | | | | — | | | | (3,012 | ) | | | (2,337 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 45,896 | | | | 44,864 | | | | — | | | | — | | | | 45,896 | | | | 44,864 | |
| Corporate & Other (1) | | | 22 | | | | (52 | ) | | | — | | | | — | | | | 22 | | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 45,918 | | | | 44,812 | | | | — | | | | — | | | | 45,918 | | | | 44,812 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | 9,048 | | | | — | | | | — | | | | — | | | | 9,048 | |
| Other Financing (1) | | | 894 | | | | 39 | | | | — | | | | — | | | | 894 | | | | 39 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 894 | | | | 9,087 | | | | — | | | | — | | | | 894 | | | | 9,087 | |
| | | | | | | | | | | | | | | | | | | |
Total net sales and revenue | | $ | 46,812 | | | $ | 53,899 | | | $ | — | | | $ | — | | | $ | 46,812 | | | $ | 53,899 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes, other equity income and minority interests | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (98 | ) | | $ | (6,172 | ) | | $ | 180 | | | $ | 5,932 | | | $ | 82 | | | $ | (240 | ) |
| GME | | | 312 | | | | (54 | ) | | | 30 | | | | 274 | | | | 342 | | | | 220 | |
| GMLAAM | | | 295 | | | | 168 | | | | — | | | | 16 | | | | 295 | | | | 184 | |
| GMAP | | | 282 | | | | 392 | | | | 14 | | | | (311 | ) | | | 296 | | | | 81 | |
| Auto Eliminations | | | (1 | ) | | | (1 | ) | | | — | | | | — | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 790 | | | | (5,667 | ) | | | 224 | | | | 5,911 | | | | 1,014 | | | | 244 | |
| Corporate & Other | | | (579 | ) | | | (425 | ) | | | 575 | | | | — | | | | (4 | ) | | | (425 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 211 | | | | (6,092 | ) | | | 799 | | | | 5,911 | | | | 1,010 | | | | (181 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | 154 | | | | 1,152 | | | | — | | | | — | | | | 154 | | | | 1,152 | |
| Other Financing | | | 86 | | | | (428 | ) | | | — | | | | 433 | | | | 86 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 240 | | | | 724 | | | | — | | | | 433 | | | | 240 | | | | 1,157 | |
| | | | | | | | | | | | | | | | | | | |
Total income (loss) from continuing operations before income taxes, other equity income and minority interests | | $ | 451 | | | $ | (5,368 | ) | | $ | 799 | | | $ | 6,344 | | | $ | 1,250 | | | $ | 976 | |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 25.
18
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2007 and 2006 | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Income (loss) from continuing operations GMNA | | $ | (39 | ) | | $ | (3,950 | ) | | $ | 117 | | | $ | 3,856 | | | $ | 78 | | | $ | (94 | ) |
| GME | | | 217 | | | | (39 | ) | | | 19 | | | | 182 | | | | 236 | | | | 143 | |
| GMLAAM | | | 213 | | | | 139 | | | | — | | | | 16 | | | | 213 | | | | 155 | |
| GMAP | | | 227 | | | | 376 | | | | 10 | | | | (212 | ) | | | 237 | | | | 164 | |
| Auto Eliminations | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 618 | | | | (3,475 | ) | | | 146 | | | | 3,842 | | | | 764 | | | | 367 | |
| Corporate & Other | | | (30 | ) | | | (119 | ) | | | 374 | | | | — | | | | 344 | | | | (119 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 588 | | | | (3,594 | ) | | | 520 | | | | 3,842 | | | | 1,108 | | | | 248 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | 139 | | | | 787 | | | | — | | | | — | | | | 139 | | | | 787 | |
| Other Financing | | | 57 | | | | (687 | ) | | | — | | | | 690 | | | | 57 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 196 | | | | 100 | | | | — | | | | 690 | | | | 196 | | | | 790 | |
| | | | | | | | | | | | | | | | | | | |
Total income (loss) from continuing operations | | $ | 784 | | | $ | (3,494 | ) | | $ | 520 | | | $ | 4,532 | | | $ | 1,304 | | | $ | 1,038 | |
| Income from discontinued operations | | | 107 | | | | 111 | | | | — | | | | — | | | | 107 | | | | 111 | |
| | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 891 | | | $ | (3,383 | ) | | $ | 520 | | | $ | 4,532 | | | $ | 1,411 | | | $ | 1,149 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (49 | ) | | $ | (2,151 | ) | | $ | 63 | | | $ | 2,076 | | | $ | 14 | | | $ | (75 | ) |
| GME | | | 98 | | | | (9 | ) | | | 11 | | | | 92 | | | | 109 | | | | 83 | |
| GMLAAM | | | 83 | | | | 28 | | | | — | | | | — | | | | 83 | | | | 28 | |
| GMAP | | | 53 | | | | 104 | | | | 4 | | | | (99 | ) | | | 57 | | | | 5 | |
| Auto Eliminations | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 185 | | | | (2,028 | ) | | | 78 | | | | 2,069 | | | | 263 | | | | 41 | |
| Corporate & Other | | | (549 | ) | | | (307 | ) | | | 201 | | | | — | | | | (348 | ) | | | (307 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | (364 | ) | | | (2,335 | ) | | | 279 | | | | 2,069 | | | | (85 | ) | | | (266 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | 15 | | | | 361 | | | | — | | | | — | | | | 15 | | | | 361 | |
| Other Financing | | | 29 | | | | 259 | | | | — | | | | (257 | ) | | | 29 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 44 | | | | 620 | | | | — | | | | (257 | ) | | | 44 | | | | 363 | |
| | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | $ | (320 | ) | | $ | (1,715 | ) | | $ | 279 | | | $ | 1,812 | | | $ | (41 | ) | | $ | 97 | |
| | | | | | | | | | | | | | | | | | | |
19
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2007 and 2006 | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Effective Tax Rate | | | | | | | | | | | | | | | | | | | | | | | | |
| Total GM Corp. | | | (71 | )% | | | 32 | % | | | 35 | % | | | 29 | % | | | (3 | )% | | | 10 | % |
| GMNA | | | 50 | % | | | 35 | % | | | 35 | % | | | 35 | % | | | 17 | % | | | 31 | % |
| GME | | | 31 | % | | | 17 | % | | | 37 | % | | | 34 | % | | | 32 | % | | | 38 | % |
| GMAC | | | 10 | % | | | 31 | % | | | — | % | | | — | % | | | 10 | % | | | 31 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Equity income (loss) and minority interests | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | 10 | | | $ | 71 | | | $ | — | | | $ | — | | | $ | 10 | | | $ | 71 | |
| GME | | | 3 | | | | 6 | | | | — | | | | — | | | | 3 | | | | 6 | |
| GMLAAM | | | 1 | | | | (1 | ) | | | — | | | | — | | | | 1 | | | | (1 | ) |
| GMAP | | | (2 | ) | | | 88 | | | | — | | | | — | | | | (2 | ) | | | 88 | |
| Auto Eliminations | | | 1 | | | | — | | | | — | | | | — | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | $ | 13 | | | $ | 164 | | | $ | — | | | $ | — | | | $ | 13 | | | $ | 164 | |
| | | | | | | | | | | | | | | | | | | |
20
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year to Date | |
| | | 2007 and 2006 | |
| | |
Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Total net sales and revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | 57,537 | | | $ | 61,172 | | | $ | — | | | $ | — | | | $ | 57,537 | | | $ | 61,172 | |
| GME | | | 18,043 | | | | 16,795 | | | | — | | | | — | | | | 18,043 | | | | 16,795 | |
| GMLAAM | | | 7,903 | | | | 6,990 | | | | — | | | | — | | | | 7,903 | | | | 6,990 | |
| GMAP | | | 10,005 | | | | 7,168 | | | | — | | | | — | | | | 10,005 | | | | 7,168 | |
| Auto Eliminations (1) | | | (5,235 | ) | | | (4,218 | ) | | | — | | | | — | | | | (5,235 | ) | | | (4,218 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 88,253 | | | | 87,907 | | | | — | | | | — | | | | 88,253 | | | | 87,907 | |
| Corporate & Other (1) | | | 45 | | | | (99 | ) | | | — | | | | — | | | | 45 | | | | (99 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 88,298 | | | | 87,808 | | | | — | | | | — | | | | 88,298 | | | | 87,808 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | 17,861 | | | | — | | | | — | | | | — | | | | 17,861 | |
| Other Financing (1) | | | 1,830 | | | | 73 | | | | — | | | | — | | | | 1,830 | | | | 73 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 1,830 | | | | 17,934 | | | | — | | | | — | | | | 1,830 | | | | 17,934 | |
| | | | | | | | | | | | | | | | | | | |
Total net sales and revenue | | $ | 90,128 | | | $ | 105,742 | | | $ | — | | | $ | — | | | $ | 90,128 | | | $ | 105,742 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes, other equity income and minority interests | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (309 | ) | | $ | (6,653 | ) | | $ | 119 | | | $ | 5,995 | | | $ | (190 | ) | | $ | (658 | ) |
| GME | | | 314 | | | | 38 | | | | 87 | | | | 389 | | | | 401 | | | | 427 | |
| GMLAAM | | | 550 | | | | 266 | | | | — | | | | 43 | | | | 550 | | | | 309 | |
| GMAP | | | 376 | | | | 1,073 | | | | 63 | | | | (977 | ) | | | 439 | | | | 96 | |
| Auto Eliminations (1) | | | (9 | ) | | | (7 | ) | | | — | | | | — | | | | (9 | ) | | | (7 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 922 | | | | (5,283 | ) | | | 269 | | | | 5,450 | | | | 1,191 | | | | 167 | |
| Corporate & Other | | | (788 | ) | | | (938 | ) | | | 575 | | | | 4 | | | | (213 | ) | | | (934 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 134 | | | | (6,221 | ) | | | 844 | | | | 5,454 | | | | 978 | | | | (767 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | 20 | | | | 1,858 | | | | — | | | | — | | | | 20 | | | | 1,858 | |
| Other Financing | | | 140 | | | | (426 | ) | | | — | | | | 433 | | | | 140 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 160 | | | | 1,432 | | | | — | | | | 433 | | | | 160 | | | | 1,865 | |
| | | | | | | | | | | | | | | | | | | |
Total income (loss) from continuing operations before income taxes, other equity income and minority interests | | $ | 294 | | | $ | (4,789 | ) | | $ | 844 | | | $ | 5,887 | | | $ | 1,138 | | | $ | 1,098 | |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 25.
21
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year to Date | |
| | | 2007 and 2006 | |
| | |
Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Income (loss) from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (221 | ) | | $ | (4,351 | ) | | $ | 78 | | | $ | 3,897 | | | $ | (143 | ) | | $ | (454 | ) |
| GME | | | 222 | | | | 20 | | | | 56 | | | | 254 | | | | 278 | | | | 274 | |
| GMLAAM | | | 414 | | | | 179 | | | | — | | | | 43 | | | | 414 | | | | 222 | |
| GMAP | | | 343 | | | | 868 | | | | 44 | | | | (607 | ) | | | 387 | | | | 261 | |
| Auto Eliminations | | | (4 | ) | | | (5 | ) | | | — | | | | — | | | | (4 | ) | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 754 | | | | (3,289 | ) | | | 178 | | | | 3,587 | | | | 932 | | | | 298 | |
| Corporate & Other | | | (122 | ) | | | (309 | ) | | | 374 | | | | 3 | | | | 252 | | | | (306 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | 632 | | | | (3,598 | ) | | | 552 | | | | 3,590 | | | | 1,184 | | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | 24 | | | | 1,282 | | | | — | | | | — | | | | 24 | | | | 1,282 | |
| Other Financing | | | 86 | | | | (685 | ) | | | — | | | | 690 | | | | 86 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 110 | | | | 597 | | | | — | | | | 690 | | | | 110 | | | | 1,287 | |
| | | | | | | | | | | | | | | | | | | |
Total income (loss) from continuing operations | | $ | 742 | | | $ | (3,001 | ) | | $ | 552 | | | $ | 4,280 | | | $ | 1,294 | | | $ | 1,279 | |
| Income from discontinued operations | | | 211 | | | | 220 | | | | — | | | | — | | | | 211 | | | | 220 | |
| | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 953 | | | $ | (2,781 | ) | | $ | 552 | | | $ | 4,280 | | | $ | 1,505 | | | $ | 1,499 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (75 | ) | | $ | (2,225 | ) | | $ | 41 | | | $ | 2,098 | | | $ | (34 | ) | | $ | (127 | ) |
| GME | | | 97 | | | | 26 | | | | 31 | | | | 135 | | | | 128 | | | | 161 | |
| GMLAAM | | | 136 | | | | 85 | | | | — | | | | — | | | | 136 | | | | 85 | |
| GMAP | | | 80 | | | | 356 | | | | 19 | | | | (370 | ) | | | 99 | | | | (14 | ) |
| Auto Eliminations | | | (3 | ) | | | (2 | ) | | | — | | | | — | | | | (3 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 235 | | | | (1,760 | ) | | | 91 | | | | 1,863 | | | | 326 | | | | 103 | |
| Corporate & Other | | | (666 | ) | | | (628 | ) | | | 201 | | | | 1 | | | | (465 | ) | | | (627 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto and Other | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (431 | ) | | | (2,388 | ) | | | 292 | | | | 1,864 | | | | (139 | ) | | | (524 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | (4 | ) | | | 583 | | | | — | | | | — | | | | (4 | ) | | | 583 | |
| Other Financing | | | 54 | | | | 259 | | | | — | | | | (257 | ) | | | 54 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 50 | | | | 842 | | | | — | | | | (257 | ) | | | 50 | | | | 585 | |
| | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | $ | (381 | ) | | $ | (1,546 | ) | | $ | 292 | | | $ | 1,607 | | | $ | (89 | ) | | $ | 61 | |
| | | | | | | | | | | | | | | | | | | |
22
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year to Date | |
| | | 2007 and 2006 | |
| | |
Reported | | | Special Items | | | Adjusted | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | | | | Restated | | | | | | | | | | | | Restated | |
Effective Tax Rate | | | | | | | | | | | | | | | | | | | | | | | | |
| Total GM Corp. | | | (130 | )% | | | 32 | % | | | 35 | % | | | 27 | % | | | (8 | )% | | | 6 | % |
| GMNA | | | 24 | % | | | 33 | % | | | 34 | % | | | 35 | % | | | 18 | % | | | 19 | % |
| GME | | | 31 | % | | | 68 | % | | | 36 | % | | | 35 | % | | | 32 | % | | | 38 | % |
| GMAC | | | (20 | )% | | | 31 | % | | | — | % | | | — | % | | | (20 | )% | | | 31 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Equity income (loss) and minority interests | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | 13 | | | $ | 77 | | | $ | — | | | $ | — | | | $ | 13 | | | $ | 77 | |
| GME | | | 5 | | | | 8 | | | | — | | | | — | | | | 5 | | | | 8 | |
| GMLAAM | | | — | | | | (2 | ) | | | — | | | | — | | | | — | | | | (2 | ) |
| GMAP | | | 47 | | | | 151 | | | | — | | | | — | | | | 47 | | | | 151 | |
| Auto Eliminations (1) | | | 2 | | | | — | | | | — | | | | — | | | | 2 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | $ | 67 | | | $ | 234 | | | $ | — | | | $ | — | | | $ | 67 | | | $ | 234 | |
| | | | | | | | | | | | | | | | | | | |
23
General Motors Corporation
Operating Statistics
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| (Units in thousands) | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Worldwide Production Volume | | | | | | | | | | | | | | | | |
| GMNA — Cars | | | 402 | | | | 462 | | | | 801 | | | | 958 | |
| GMNA — Trucks | | | 740 | | | | 775 | | | | 1,404 | | | | 1,534 | |
| | | | | | | | | | | | | |
| Total GMNA | | | 1,142 | | | | 1,237 | | | | 2,205 | | | | 2,492 | |
| GME | | | 464 | | | | 495 | | | | 975 | | | | 989 | |
| GMLAAM | | | 233 | | | | 206 | | | | 455 | | | | 400 | |
| GMAP | | | 571 | | | | 482 | | | | 1,115 | | | | 954 | |
| | | | | | | | | | | | | |
Total Worldwide | | | 2,410 | | | | 2,420 | | | | 4,750 | | | | 4,835 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Vehicle Unit Deliveries | | | | | | | | | | | | | | | | |
| Chevrolet — Cars | | | 218 | | | | 227 | | | | 405 | | | | 422 | |
| Chevrolet — Trucks | | | 376 | | | | 434 | | | | 737 | | | | 810 | |
| Pontiac | | | 96 | | | | 105 | | | | 175 | | | | 204 | |
| GMC | | | 131 | | | | 129 | | | | 241 | | | | 234 | |
| Buick | | | 47 | | | | 63 | | | | 90 | | | | 125 | |
| Saturn | | | 69 | | | | 56 | | | | 126 | | | | 103 | |
| Cadillac | | | 51 | | | | 60 | | | | 98 | | | | 111 | |
| Other | | | 26 | | | | 30 | | | | 51 | | | | 58 | |
| | | | | | | | | | | | | |
| Total United States | | | 1,014 | | | | 1,104 | | | | 1,923 | | | | 2,067 | |
| Canada, Mexico, and Other | | | 186 | | | | 186 | | | | 333 | | | | 346 | |
| | | | | | | | | | | | | |
| Total GMNA | | | 1,200 | | | | 1,290 | | | | 2,256 | | | | 2,413 | |
| GME | | | 574 | | | | 548 | | | | 1,128 | | | | 1,071 | |
| GMLAAM | | | 293 | | | | 245 | | | | 564 | | | | 475 | |
| GMAP * | | | 338 | | | | 312 | | | | 726 | | | | 635 | |
| | | | | | | | | | | | | |
Total Worldwide | | | 2,405 | | | | 2,395 | | | | 4,674 | | | | 4,594 | |
| | | | | | | | | | | | | |
Market Share | | | | | | | | | | | | | | | | |
| United States — Cars | | | 19.2 | % | | | 20.0 | % | | | 19.2 | % | | | 20.3 | % |
| United States — Trucks | | | 26.2 | % | | | 27.9 | % | | | 26.0 | % | | | 27.1 | % |
| Total United States | | | 22.8 | % | | | 24.1 | % | | | 22.8 | % | | | 24.0 | % |
| Total North America | | | 22.6 | % | | | 23.9 | % | | | 22.6 | % | | | 23.7 | % |
| Total Europe | | | 9.5 | % | | | 9.2 | % | | | 9.6 | % | | | 9.3 | % |
| Total LAAM | | | 17.0 | % | | | 16.8 | % | | | 16.9 | % | | | 16.4 | % |
| Asia and Pacific | | | 6.7 | % | | | 6.7 | % | | | 7.0 | % | | | 6.5 | % |
| Total Worldwide | | | 13.3 | % | | | 13.7 | % | | | 13.1 | % | | | 13.4 | % |
| | | | | | | | | | | | | | | | | |
U.S. Retail/Fleet Mix | | | | | | | | | | | | | | | | |
| % Fleet Sales — Cars | | | 33.2 | % | | | 33.7 | % | | | 34.8 | % | | | 37.4 | % |
| % Fleet Sales — Trucks | | | 22.3 | % | | | 24.4 | % | | | 20.4 | % | | | 23.5 | % |
| Total Vehicles | | | 26.7 | % | | | 28.1 | % | | | 26.1 | % | | | 29.0 | % |
| | | | | | | | | | | | | | | | | |
GMNA Capacity Utilization | | | | | | | | | | | | | | | | |
| (2 shift rated) | | | 94.7 | % | | | 98.5 | % | | | 91.4 | % | | | 99.5 | % |
| | |
| * | | GMAP sales volume includes Wuling sales in China. |
24
General Motors Corporation
Operating Statistics
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
GM’s Worldwide Cost of Borrowing (2) | | | 6.23 | % | | | 5.84 | % | | | 6.19 | % | | | 5.67 | % |
| | | | | | | | | | | | | | | | | |
GMAC Period End Debt Spreads Over U.S. Treasuries | | | | | | | | | | | | | | | | |
| 2 Year | | 209 bp | | 300 bp | | | | | | | | |
| 5 Year | | 273 bp | | 370 bp | | | | | | | | |
| 10 Year | | 315 bp | | 390 bp | | | | | | | | |
| | | | | | | | | | | | | | | | | |
GMAC Automotive Finance Operations | | | | | | | | | | | | | | | | |
Consumer Credit (North America) | | | | | | | | | | | | | | | | |
| Net charge-offs as a % of managed receivables | | | 1.03 | % | | | 1.07 | % | | | 1.16 | % | | | 1.13 | % |
| Retail contracts 30 days delinquent — % of average number of contracts outstanding (3) | | | 2.37 | % | | | 2.38 | % | | | 2.44 | % | | | 2.35 | % |
| | | | | | | | | | | | | | | | | |
Share of GM retail sales (U.S. only) | | | | | | | | | | | | | | | | |
| Total consumer volume (retail and lease) as % of retail sales | | | 45 | % | | | 44 | % | | | 46 | % | | | 46 | % |
| Smartlease as % of retail sales | | | 18 | % | | | 18 | % | | | 18 | % | | | 20 | % |
| | | | | | | | | | | | | | | | | |
Worldwide Employment at June 30(in 000’s) | | | | | | | | | | | | | | | | |
| United States Hourly | | | 83 | | | | 103 | | | | | | | | | |
| United States Salary | | | 33 | | | | 34 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total United States | | | 116 | | | | 137 | | | | | | | | | |
| Canada, Mexico, and Other | | | 30 | | | | 30 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| GMNA | | | 146 | | | | 167 | | | | | | | | | |
| GME | | | 59 | | | | 63 | | | | | | | | | |
| GMLAAM | | | 33 | | | | 32 | | | | | | | | | |
| GMAP | | | 33 | | | | 34 | | | | | | | | | |
| GMAC | | | — | | | | 31 | | | | | | | | | |
| Other | | | 3 | | | | 2 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total United States | | | 274 | | | | 329 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Worldwide Payrolls($Bil’s) | | $ | 4.4 | | | $ | 5.4 | | | $ | 8.9 | | | $ | 10.7 | |
See footnotes on page 25.
25
General Motors Corporation
Footnotes:
| (1) | | Auto Eliminations, Corporate & Other and Other Financing include intercompany eliminations. |
| |
| (2) | | Calculated by dividing total interest expense (Excluding mark to market adjustments) by total debt. |
| |
| (3) | | Excludes accounts in bankruptcy. |
26
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | (Unaudited) | |
| | | | | | | (As restated) | | | | | | | (As restated) | |
| Net sales and revenue | | | | | | | | | | | | | | | | |
| Automotive sales | | $ | 45,918 | | | $ | 44,812 | | | $ | 88,298 | | | $ | 87,808 | |
| Financial services and insurance revenue | | | 894 | | | | 9,087 | | | | 1,830 | | | | 17,934 | |
| | | | | | | | | | | | | |
| Total net sales and revenue | | | 46,812 | | | | 53,899 | | | | 90,128 | | | | 105,742 | |
| | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | |
| Automotive cost of sales | | | 41,674 | | | | 47,406 | | | | 80,407 | | | | 87,177 | |
| Selling, general, and administrative expense | | | 3,293 | | | | 3,219 | | | | 6,604 | | | | 6,585 | |
| Financial services and insurance expense | | | 811 | | | | 7,727 | | | | 1,694 | | | | 16,012 | |
| Other expenses | | | 575 | | | | 1,208 | | | | 575 | | | | 1,208 | |
| | | | | | | | | | | | | |
| Total costs and expenses | | | 46,353 | | | | 59,560 | | | | 89,280 | | | | 110,982 | |
| | | | | | | | | | | | | |
| Operating income (loss) | | | 459 | | | | (5,661 | ) | | | 848 | | | | (5,240 | ) |
| Equity in income (loss) of GMAC LLC | | | 118 | | | | — | | | | (65 | ) | | | — | |
| Automotive and other interest expense | | | (681 | ) | | | (694 | ) | | | (1,480 | ) | | | (1,332 | ) |
| Automotive interest income and other non-operating income | | | 555 | | | | 987 | | | | 991 | | | | 1,783 | |
| | | | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes, other equity income and minority interests | | | 451 | | | | (5,368 | ) | | | 294 | | | | (4,789 | ) |
| Income tax benefit | | | (320 | ) | | | (1,715 | ) | | | (381 | ) | | | (1,546 | ) |
| Equity income and minority interests, net of tax | | | 13 | | | | 159 | | | | 67 | | | | 242 | |
| | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | 784 | | | | (3,494 | ) | | | 742 | | | | (3,001 | ) |
| Income from discontinued operations, net of tax (see Note 3) | | | 107 | | | | 111 | | | | 211 | | | | 220 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | 891 | | | $ | (3,383 | ) | | $ | 953 | | | $ | (2,781 | ) |
| | | | | | | | | | | | | |
Basic earnings (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 1.38 | | | $ | (6.18 | ) | | $ | 1.31 | | | $ | (5.31 | ) |
| Discontinued operations | | | .19 | | | | .20 | | | | .37 | | | | .39 | |
| | | | | | | | | | | | | |
| Total | | $ | 1.57 | | | $ | (5.98 | ) | | $ | 1.68 | | | $ | (4.92 | ) |
| | | | | | | | | | | | | |
Weighted average common shares outstanding, basic (millions) | | | 566 | | | | 566 | | | | 566 | | | | 566 | |
| | | | | | | | | | | | | |
Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 1.37 | | | $ | (6.18 | ) | | $ | 1.30 | | | $ | (5.31 | ) |
| Discontinued operations | | | .19 | | | | .20 | | | | .37 | | | | .39 | |
| | | | | | | | | | | | | |
| Total | | $ | 1.56 | | | $ | (5.98 | ) | | $ | 1.67 | | | $ | (4.92 | ) |
| | | | | | | | | | | | | |
Weighted average common shares outstanding, diluted (millions) | | | 569 | | | | 566 | | | | 569 | | | | 566 | |
| | | | | | | | | | | | | |
| Cash dividends per share | | $ | .25 | | | $ | .25 | | | $ | .50 | | | $ | .50 | |
| | | | | | | | | | | | | |
27
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| | | | | | | | | | | | | |
| | | June 30, | | | December 31, | | | June 30, | |
| | | 2007 | | | 2006 | | | 2006 | |
| | | (Unaudited) | | | | | | | (Unaudited) | |
| | | | | | | | | | | (As restated) | |
ASSETS |
Current Assets | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 22,040 | | | $ | 23,774 | | | $ | 19,997 | |
| Marketable securities | | | 1,573 | | | | 138 | | | | 115 | |
| | | | | | | | | | |
| Total cash and marketable securities | | | 23,613 | | | | 23,912 | | | | 20,112 | |
| Accounts and notes receivable, net | | | 10,233 | | | | 8,216 | | | | 7,572 | |
| Inventories | | | 15,073 | | | | 13,921 | | | | 14,496 | |
| Assets held for sale | | | 683 | | | | — | | | | — | |
| Equipment on operating leases, net | | | 5,889 | | | | 6,125 | | | | 6,891 | |
| Deferred income taxes and other current assets | | | 11,518 | | | | 11,957 | | | | 10,376 | |
| | | | | | | | | | |
| Total current assets | | | 67,009 | | | | 64,131 | | | | 59,447 | |
Financing and Insurance Operations Assets | | | | | | | | | | | | |
| Cash and cash equivalents | | | 258 | | | | 349 | | | | 2,848 | |
| Assets held for sale | | | — | | | | — | | | | 274,267 | |
| Equipment on operating leases, net | | | 9,145 | | | | 11,794 | | | | 16,533 | |
| Investment in GMAC LLC | | | 7,555 | | | | 7,523 | | | | — | |
| Other assets | | | 3,011 | | | | 2,457 | | | | 5,857 | |
| | | | | | | | | | |
| Total Financing and Insurance Operations Assets | | | 19,969 | | | | 22,123 | | | | 299,505 | |
Non-Current Assets | | | | | | | | | | | | |
| Property, net | | | 41,404 | | | | 41,934 | | | | 38,639 | |
| Deferred income taxes | | | 32,337 | | | | 32,967 | | | | 24,382 | |
| Prepaid pension | | | 18,305 | | | | 17,366 | | | | 37,480 | |
| Other assets | | | 7,503 | | | | 7,671 | | | | 9,538 | |
| | | | | | | | | | |
| Total non-current assets | | | 99,549 | | | | 99,938 | | | | 110,039 | |
| | | | | | | | | | |
Total Assets | | $ | 186,527 | | | $ | 186,192 | | | $ | 468,991 | |
| | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
Current Liabilities | | | | | | | | | | | | |
| Accounts payable (principally trade) | | $ | 30,742 | | | $ | 26,931 | | | $ | 27,930 | |
| Short-term borrowings and current portion of long-term debt | | | 5,150 | | | | 5,666 | | | | 1,340 | |
| Liabilities related to assets held for sale | | | 526 | | | | — | | | | — | |
| Accrued expenses | | | 35,487 | | | | 35,225 | | | | 48,516 | |
| | | | | | | | | | |
| Total current liabilities | | | 71,905 | | | | 67,822 | | | | 77,786 | |
Financing and Insurance Operations Liabilities | | | | | | | | | | | | |
| Liabilities related to assets held for sale | | | — | | | | — | | | | 267,925 | |
| Debt | | | 7,133 | | | | 9,438 | | | | 12,849 | |
| Other liabilities and deferred income taxes | | | 855 | | | | 2,139 | | | | 2,278 | |
| | | | | | | | | | |
| Total Financing and Insurance Operations Liabilities | | | 7,988 | | | | 11,577 | | | | 283,052 | |
Non-Current Liabilities | | | | | | | | | | | | |
| Long-term debt | | | 34,134 | | | | 33,067 | | | | 32,946 | |
| Postretirement benefits other than pensions | | | 48,030 | | | | 50,086 | | | | 30,668 | |
| Pensions | | | 11,654 | | | | 11,934 | | | | 11,498 | |
| Other liabilities and deferred income taxes | | | 15,106 | | | | 15,957 | | | | 20,014 | |
| | | | | | | | | | |
| Total non-current liabilities | | | 108,924 | | | | 111,044 | | | | 95,126 | |
| | | | | | | | | | |
| Total liabilities | | | 188,817 | | | | 190,443 | | | | 455,964 | |
| Minority interests | | | 1,268 | | | | 1,190 | | | | 1,084 | |
Stockholders’ Equity (Deficit) | | | | | | | | | | | | |
| Preferred stock, no par value, authorized 6,000,000, no shares issued and outstanding | | | — | | | | — | | | | — | |
| $1 2/3 par value common stock (2,000,000,000 shares authorized, 756,637,541 and 565,864,695 shares issued and outstanding at June 30, 2007, respectively 756,637,541 and 565,670,254 shares issued and outstanding at December 31, 2006, respectively and 756,637,541 and 565,607,779 shares issued and outstanding at June 30, 2006, respectively) | | | 943 | | | | 943 | | | | 943 | |
| Capital surplus (principally additional paid-in capital) | | | 15,255 | | | | 15,336 | | | | 15,306 | |
| Retained earnings (deficit) | | | 788 | | | | 406 | | | | (117 | ) |
| Accumulated other comprehensive loss | | | (20,544 | ) | | | (22,126 | ) | | | (4,189 | ) |
| | | | | | | | | | |
| Total stockholders’ equity (deficit) | | | (3,558 | ) | | | (5,441 | ) | | | 11,943 | |
| | | | | | | | | | |
Total Liabilities, Minority Interests, and Stockholders’ Equity (Deficit) | | $ | 186,527 | | | $ | 186,192 | | | $ | 468,991 | |
| | | | | | | | | | |
