Exhibit 99.1
| | | | | |
News | | General Motors | | GM Communications |
| For Release: August 1, 2008 | | Corporation | | Detroit, Mich., USA |
| 7:00 a.m. Eastern Daylight Time | | | | media.gm.com |
GM Reports Preliminary Second Quarter Financial Results
| | • | | Adjusted net loss of $6.3 billion, reported net loss of $15.5 billion |
| |
| | • | | Results impacted by $9.1 billion of predominantly non-cash special items |
| |
| | • | | Sales records set in three of four regions |
| |
| | • | | Q2 liquidity position of $21 billion, plus credit lines of additional $5 billion |
| | | | | | | | | | | | | |
| | | Second Quarter |
| | | 2008 | | 2007* | | O/(U) 2007 |
| Revenue (bils.): | | $ | 38.2 | | | $ | 46.7 | | | $ | (8.5 | ) |
| Adjusted automotive earnings before tax (bils.): | | $ | (4.0 | ) | | $ | 1.0 | | | $ | (5.0 | ) |
| Reported automotive earnings before tax (bils.): | | $ | (9.1 | ) | | $ | 0.8 | | | $ | (9.9 | ) |
| Adjusted net income (bils.): | | $ | (6.3 | ) | | $ | 1.3 | | | $ | (7.6 | ) |
| Reported net income (bils.): | | $ | (15.5 | ) | | $ | 0.8 | | | $ | (16.3 | ) |
| Reported earnings per share (diluted): | | $ | (27.33 | ) | | $ | 1.37 | | | $ | (28.70 | ) |
| Adjusted operating cash flow (bils): | | $ | (3.6 | ) | | $ | 1.1 | | | $ | (4.7 | ) |
| | |
| * | | 2007 figures reflect continuing operations |
DETROIT- General Motors (NYSE: GM) today announced its financial results for the second quarter of 2008, which include significant charges and special items. The reported net loss was $15.5 billion or $27.33 per share for the second quarter, including these charges and special items, compared with net income from continuing operations of $784 million or $1.37 per share in the second quarter of 2007. On an adjusted basis, GM posted a net loss of $6.3 billion or $11.21 per share, compared with net income from continuing operations of $1.3 billion or $2.29 per share in the same period last year.
GM previously announced that it anticipated a significant second quarter loss, driven in large part by costs associated with the American Axle and local U.S. strikes, and charges related to the successful U.S. hourly attrition program, actions to reduce North American truck capacity, Delphi and other matters. The operating and liquidity actions announced on July 15 contemplated weak second quarter results and a continued unfavorable U.S. environment. The company has outlined a strong cadence of product, powertrain, capacity and liquidity actions over the past 60 days, to realign the business with current U.S. economic and auto market conditions, and position the company for profitable global growth.
Some of those actions include cessation of production at four truck plants, shift reductions at two truck plants, the addition of shifts at two car plants, announcement of the new Chevrolet global small car program and next generation Chevrolet Aveo compact car, introduction of a high-efficiency 4-cylinder engine for U.S. application, salaried headcount reductions and compensation actions, deferral of certain payments to the UAW VEBA, suspension of the dividend on common stock, reductions in sales and marketing budgets, the strategic review of the Hummer brand and production funding approval for the Chevrolet Volt extended range electric vehicle.
“As our recent product, capacity and liquidity actions clearly demonstrate, we are reacting rapidly to the challenges facing the U.S. economy and auto market, and we continue to take the aggressive steps necessary to transform our U.S. operations,” said GM Chairman and CEO Rick Wagoner. “We have the right plan for GM, driven by great products, building strong brands, fuel-economy technology leadership and taking full advantage of global growth opportunities.”
GM’s second quarter results were primarily driven by several factors: significant losses in GM North America (GMNA) due to continuing U.S. industry volume declines and shifts in vehicle mix, the long strike at American Axle and large lease-related charges; a number of special charges associated with GM’s ongoing restructuring actions; continued losses at GMAC Financial Services (GMAC) and updated estimates regarding recoveries and expectations of assumed benefit obligations in the Delphi bankruptcy.
GM recorded $9.1 billion of special items, predominantly non-cash in nature for the current quarter or near-term periods, which include:
| | • | | $3.3 billion relating to the 2008 GMNA hourly special attrition program |
| |
| | • | | $2.8 billion adjustment to the Delphi reserve |
| |
| | • | | $1.1 billion GMNA restructuring and capacity related costs |
| |
| | • | | $1.3 billion impairment of GM’s equity interest in GMAC |
| |
| | • | | $340 million Canadian Auto Workers contract-related accounting charges |
| |
| | • | | $197 million related to settlement of the strike at American Axle |
Details on these and all other special items are in the financial highlights section of this release.
In addition, the GMNA adjusted net income results reflect a $1.6 billion charge related to lower residual values for off-lease vehicles. The total impact of declining residual values in GM’s second quarter earnings was $2.0 billion, including impairments of lease assets at both GMAC and GM.
Revenue for the second quarter was $38.2 billion, down from $46.7 billion in the year-ago quarter, which is more than accounted for by the decline in GMNA revenues. Combined revenues for the GM Europe (GME), GM Asia Pacific (GMAP) and GM Latin America, Africa and Middle East (GMLAAM) regions were $20.8 billion, up $1.7 billion over the same period 2007.
GM reports its automotive operations and regional results on an earnings-before-tax basis, with taxes reported on a total corporate basis.
GM Automotive Operations
The second quarter adjusted automotive loss of $4.0 billion ($9.1 billion reported) reflects the losses in GMNA driven largely by volume declines including the impact of the American Axle and local strikes as well as adjustments to lease vehicle residual reserves. In addition, GMAP results were negatively impacted by adjustments relating to hedge accounting. The losses were partially offset by exceptionally strong performance in the GMLAAM region and continued profitability in GME. The loss compares with adjusted automotive earnings from continuing operations of $1 billion in the second quarter of 2007 (reported earnings of $803 million).
2
GM sold 2.29 million vehicles worldwide in the second quarter, down 5 percent year over year. Sales in GMNA were down 20 percent, or 236,000 units versus the year-ago period, while sales outside of North America grew by 10 percent or 116,000 units. A record 65 percent of GM unit sales for the second quarter were outside the United States. Global market share was 12.3 percent, down 0.9 percent due to weakness in North America.
GMNA
| | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | | | ‘08 O/(U) ‘07 | |
| Revenue (bils.) | | $ | 19.8 | | | $ | 29.7 | | | $ | (9.9 | ) |
| Adjusted Earnings Before Tax | | $ | (4.4 | ) bil. | | $ | 92 | mil. | | $ | (4.5 | ) bil. |
| Reported Earnings Before Tax | | $ | (9.3 | ) bil. | | $ | (88 | ) mil. | | $ | (9.2 | ) bil. |
| GM Market Share | | | 20.2 | % | | | 22.7 | % | | | (2.5 | ) p.p. |
GMNA revenue for the second quarter was $19.8 billion, down from $29.7 billion in the year-ago period. The decline was largely attributable to a markedly weaker U.S. auto market and lost production due to the work stoppage at American Axle, and at several GM facilities in May and June. Although volume overall was down 20 percent, some of GM’s most recently launched cars and crossovers continue to sell especially well, including the Chevrolet Malibu and Cadillac CTS, up 113 percent and 33 percent, respectively, over the year-ago period.
GMNA adjusted results reflect significantly lower volume resulting from overall industry deterioration, continued dealer stock reductions, the negative impact of industry segment shifts, model/option mix and an increase to lease vehicle residual reserves related to declining residual values. The results also reflect favorable structural and net material cost performance and pension/OPEB/manufacturing savings.
GME
| | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | | | ‘08 O/(U) ‘07 | |
| Revenue (bils.) | | $ | 10.6 | | | $ | 9.5 | | | $ | 1.1 | |
| Adjusted Earnings Before Tax (mils.) | | $ | 99 | | | $ | 345 | | | $ | (246 | ) |
| Reported Earnings Before Tax (mils.) | | $ | 20 | | | $ | 315 | | | $ | (295 | ) |
| GM Market Share | | | 9.4 | % | | | 9.4 | % | | | 0 | p.p |
GME achieved record second-quarter sales of 590,000 units, driven by 48 percent sales growth in Russia and exceptional performance of the Chevrolet brand, which saw a 19 percent increase in sales to 137,000 units and record market share of 2.2 percent in the second quarter. Material and structural cost performance improved during the quarter. However, unfavorable exchange rates and an economic slowdown in key markets including Spain, Italy and the U.K. had a significant impact on earnings.
GMLAAM
| | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | | | ‘08 O/(U) ‘07 | |
| Revenue (bils.) | | $ | 5.1 | | | $ | 4.3 | | | $ | .8 | |
| Adjusted Earnings Before Tax (mils.) | | $ | 445 | | | $ | 296 | | | $ | 149 | |
| Reported Earnings Before Tax (mils.) | | $ | 445 | | | $ | 296 | | | $ | 149 | |
| GM Market Share | | | 17.5 | % | | | 16.8 | % | | | 0.7 | p.p. |
3
Improved mix, net pricing and material cost performance along with strong sales performance in key markets helped GMLAAM to improve its year-over-year earnings before tax by over 50 percent, to $445 million. Volume for the region was up nearly 18 percent over 2007, and quarterly sales records were set in Brazil, Chile, Egypt and North Africa.
GMAP
| | | | | | | | | | | | | |
| | | Second Quarter | |
| | | 2008 | | | 2007 | | | ‘08 O/(U) ‘07 | |
| Revenue (bils.) | | $ | 5.2 | | | $ | 5.3 | | | $ | (.1 | ) |
| Adjusted Earnings Before Tax (mils.) | | $ | (65 | ) | | $ | 294 | | | $ | (359 | ) |
| Reported Earnings Before Tax (mils.) | | $ | (163 | ) | | $ | 280 | | | $ | (443 | ) |
| GM Market Share | | | 7 | % | | | 6.7 | % | | | 0.3 | p.p. |
The second quarter earnings for GMAP reflect a $285 million pretax accounting charge related to adjusting prior FAS133 hedge accounting, partially offset by gains in India and Thailand, and improved operating performance at Australia’s Holden.
GMAC
On a standalone basis, GMAC reported a net loss of $2.5 billion for the second quarter 2008. Affecting results were continuing large losses at Residential Capital, LLC (ResCap) related to asset sales, valuation adjustments and loan loss provisions, as well as a $716 million pre-tax impairment of lease assets in the automotive finance business as a result of lower used vehicle prices, particularly for SUVs. These items were partially offset by profitable results in the insurance and international auto finance businesses. GM reported an adjusted loss of $1.2 billion for the quarter attributable to GMAC, as a result of its 49 percent equity interest.
Following a first quarter impairment against its investment in GMAC, GM conducted further analysis in the second quarter to determine if additional impairments were required based on current fair value estimates. Factors considered include continued deterioration in the mortgage and consumer credit markets and a more challenging North American automotive financing environment. As a result, GM recorded impairment charges totaling $1.3 billion against its common and preferred equity interests in GMAC.
Cash and Liquidity
Reflecting the non-cash nature of many of the charges recorded in GM’s reported second-quarter results, cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $21.0 billion on June 30, 2008, down from $23.9 billion on March 31, 2008. The change in liquidity reflects negative adjusted operating cash flow of $3.6 billion in the second quarter 2008, driven primarily by weaker results in GMNA. As of June 30, including undrawn, committed U.S. credit facilities of approximately $5 billion, GM has access to approximately $26 billion in liquidity. In July, GM provided notice to draw $1 billion under its secured revolving loan facility.
As announced on July 15, GM is taking operating and related actions to improve cash flow by approximately $10 billion through the end of 2009. In addition, the company has outlined plans to raise approximately $5 billion through capital markets activities and asset sales (See related news release). GM is confident that these initiatives, along with its current cash position and $4-5 billion of committed U.S. credit lines, will provide the company with ample liquidity to meet its operational needs through 2009.
4
Results for the second quarter of 2008 are preliminary and may be revised prior to the filing of GM’s quarterly Form 10-Q in August.
# # #
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
5
Forward Looking Statements
In these and following presentations and in related comments by General Motors management, we will use words like “expect,” “anticipate,” “estimate,” “forecast,” “objective,” “plan,” “goal,” “project,” “outlook,” “targets,” and similar expressions to identify forward looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors.
Among other items, such factors include: our ability to realize production efficiencies, to reduce costs and implement capital expenditures at levels and times planned by management; market acceptance of our products; shortages of and price increases for fuel; declines in the residual values of used and off-lease vehicles; significant changes in the competitive environment and the effect of competition on our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; the final results of investigations and inquiries by the SEC; court approval of the settlement agreement with the UAW and UAW retirees related to the 2007 national agreement; negotiations and bankruptcy court actions with respect to obligations owed to us by Delphi Corporation, a key supplier; possible downgrades for GMAC or ResCap by rating agencies; developments in the residential mortgage market, especially the nonprime sector; and changes in general economic conditions such as price increases or shortages of fuel, steel, or other raw materials.
GM’s most recent annual report on Form 10-K and quarterly report on Form 10-Q and current reports on Form 8-K (which are incorporated by reference) provide additional information about these factors, which we may revise or supplement in future reports to the SEC on Form 10-Q or 8-K.
6
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release, the accompanying tables and the charts for securities analysts include the following financial measures, which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP): (1) adjusted net income; (2) adjusted earnings before tax; (3) managerial cash flow; and (4) GM North America vehicle revenue per unit. Each of these financial measures excludes the effect of certain items and therefore are considered non-GAAP financial measures. This press release and the charts for securities analysts also contain a reconciliation of each presented non-GAAP financial measure to its most comparable GAAP financial measure.
Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM’s operating results because they exclude amounts that GM management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. In addition, GM has historically reported similar non-GAAP financial measures and believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management believes these measures allow it 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 and adjusted earnings before tax for forecasting purposes and in determining our future capital investment allocations. 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 comparable to similarly titled measures of other companies due to potential differences in the method of calculation between companies. Costs such as the special attrition programs 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 or liquidity 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 measures. 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.
Adjusted Net Income and Adjusted Earnings Before Tax
Adjusted net income excludes charges for certain tax related items, gains and losses on the sale of business units and business interests, charges associated with accounting changes, restructuring, plant closure and impairment charges, charges associated with Delphi Corporation (Delphi) and special attrition program charges.
Adjusted earnings before tax begins with adjusted net income and is adjusted to remove any remaining tax expense or benefit.
7
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
The following is a discussion of each adjustment to net income or loss determined in accordance with GAAP to arrive at adjusted net income and adjusted earnings before tax, as applicable:
| • | | Tax charges.Charges associated with establishing valuation allowances on GM’s deferred tax assets are excluded from adjusted net income. In addition, other tax related items may be periodically excluded from adjusted net income as these charges are incurred and specifically identified in that period. Management believes the exclusion of these tax charges from adjusted net income is useful because management does not consider these charges part of GM’s core earnings in evaluating the performance of the business and excludes these costs when evaluating the performance of the Corporation, its business units and its management team and when making decisions to allocate resources among GM’s business units. |
| • | | Gains and losses on the sale of business units and business interests. The gains and losses on the sale of business units and business interests are excluded from adjusted net income and adjusted earnings before tax. While GM is involved in sales of its business units and business interests from time to time and may have significant gains or losses from such sales in the future, such events have historically occurred sporadically. Management excludes the gains and losses associated with these events when it evaluates the Corporation’s operations and for internal reporting and forecasting purposes and for allocation of additional resources. |
| • | | Changes in accounting.Our non-GAAP financial measures exclude charges associated with changes in accounting. Management believes the exclusion of changes in accounting from adjusted net income and adjusted earnings before tax is useful because management does not consider these non-recurring charges part of GM’s core earnings. Accordingly, management 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, plant closure charges and impairments.Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs, lease abandonment costs, product specific asset impairments, any subsequent changes in estimates related to exit activities and goodwill and other asset impairment charges. Management believes the exclusion of restructuring and impairment charges from adjusted net income and adjusted earnings before tax 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 determining the allocation of resources, such as capital investments, among the Corporation’s business units and as part of its forecasting and budgeting. |
| • | | Delphi charges.Our non-GAAP financial measures exclude the estimated charges associated with the benefit guarantees and comprehensive settlement agreements entered into with Delphi in connection with the restructuring of Delphi’s operations. 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. |
| • | | Special attrition program charges.Our non-GAAP financial measures exclude the estimated charges associated with: (1) the 2008 special attrition program agreements between GM and the International Union, United Automobile, Aerospace and Agricultural Workers of America (UAW) and GM and the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers (IUE) (collectively, 2008 Special Attrition Programs); and (2) the 2006 special attrition program agreement among GM, the UAW and Delphi (2006 Special Attrition Program). Management believes it is useful in evaluating the performance of GM, its management teams and its business units during a particular time period to exclude charges associated with special attrition programs. Accordingly, management does not consider these costs as part of its core earnings, 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. |
8
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 charts for securities analysts also include the use of a non-GAAP measure 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 provides valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain vehicle 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 fees on the GM credit card. Also, while they are not treated as sales under GAAP reporting because of GM’s repurchase obligations, management includes sales to daily car rental companies in revenue per vehicle.
Change in Presentation
Prior period results have been reclassified for the retroactive effect of discontinued operations. Certain reclassifications have been made to the comparative 2007 financial information to conform to the current period presentation.
9
General Motors Corporation
List of Special Items
2008
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter 2008 | | | Year to Date 2008 | |
| | | Earnings | | | EPS | | | Earnings | | | EPS | |
REPORTED | | | | | | | | | | | | | | | | |
Net Loss – Basic and Diluted * | | $ | (15,471 | ) | | $ | (27.33 | ) | | $ | (18,722 | ) | | $ | (33.07 | ) |
| | | | | | | | | | | | | | | | | |
ADJUSTMENTS | | | | | | | | | | | | | | | | |
Pre-Tax Adjustments: | | | | | | | | | | | | | | | | |
| Restructuring and 2008 Special Attrition Programs (A) | | $ | 4,551 | | | | | | | $ | 4,875 | | | | | |
| Delphi (B) | | | 2,753 | | | | | | | | 3,484 | | | | | |
| Impairment charges related to investment in GMAC LLC (C) | | | 1,334 | | | | | | | | 2,786 | | | | | |
| Canadian Auto Workers labor contract (D) | | | 340 | | | | | | | | 340 | | | | | |
| American Axle (E) | | | 197 | | | | | | | | 197 | | | | | |
| Gain on sale of investment (F) | | | (50 | ) | | | | | | | (50 | ) | | | | |
| | | | | | | | | | | | | | | |
| | | | 9,125 | | | | | | | | 11,632 | | | | | |
| | | | | | | | | | | | | | | |
Tax related: | | | | | | | | | | | | | | | | |
| Valuation allowance on net deferred tax assets (G) | | | — | | | | | | | | 394 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total Adjustments | | $ | 9,125 | | | $ | 16.12 | | | $ | 12,026 | | | $ | 21.24 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ADJUSTED | | | | | | | | | | | | | | | | |
Adjusted Loss – Basic and Diluted * | | $ | (6,346 | ) | | $ | (11.21 | ) | | $ | (6,696 | ) | | $ | (11.83 | ) |
| | | | | | | | | | | | | |
| | |
| * | | See average shares outstanding on page 14. |
10
General Motors Corporation
List of Special Items
2008
(Unaudited)
| (A) | | Relates to various restructuring initiatives and the 2008 Special Attrition Programs. Charges recorded by region are as follows: |
| |
| | | GMNA: Second quarter charges of $3.3 billion were recorded for the 2008 Special Attrition Programs, including: (1) a $2.4 billion curtailment loss on the U.S. hourly pension plan due to a reduction in the expected aggregate years of future service as a result of employees accepting the voluntary program; (2) $633 million for special termination benefits and retirement incentive payments paid from the overfunded U.S. hourly pension plan; and (3) $312 million for cash payments to separating employees or those taking preretirement leave. We have recorded year to date charges of $3.5 billion for preretirement and retirement pension and benefit incentives and cash buyouts for employees leaving under the 2008 Special Attrition Programs. |
| |
| | | During the second quarter, we also recorded charges of $1.1 billion for additional wage and benefit costs related to the recently announced capacity actions and plant idlings in the U.S. and Canada. |
| |
| | | GME: Second quarter charges of $79 million and year to date charges of $202 million were recognized for separation programs, primarily in Belgium, France, Germany and Sweden. |
| |
| | | GMAP: Second quarter and year to date charges of $98 million were recorded for the closure of the Family II engine plant at GM Holden, Ltd. (GM Holden), which was announced in June 2008. |
| (B) | | Second quarter charges of $2.8 billion and year to date charges of $3.5 billion were recorded for increased liabilities under our Delphi Benefit Guarantee Agreements, primarily due to expectations of increased obligations and updated estimates reflecting the nature, value and timing of our recoveries upon Delphi’s emergence from bankruptcy. |
| (C) | | Second quarter charges of $1.3 billion and year to date charges of $2.8 billion to record impairments of our investment in Common and Preferred Membership Interests of GMAC LLC. |
| (D) | | Relates to a change in the estimate of the amortization period for pension prior service costs related to our hourly defined benefit pension plan in Canada. In conjunction with our 2008 Canadian Auto Workers (CAW) labor agreement, we determined that the three year contractual life of the labor agreement is a better reflection of the period of future economic benefit received from pension plan amendments for our collectively bargained hourly pension plans. We recorded a second quarter charge of $340 million for additional pension expense related to the unamortized prior service costs from prior CAW labor contracts. |
| (E) | | Relates to our agreement to provide upfront support to American Axle to end the work stoppage that affected approximately 30 GM plants in North America. Our support partially funds American Axle’s costs associated with UAW employee buyouts, early retirements and buydowns. |
| (F) | | Relates to a second quarter gain of $50 million on the sale of our common equity interest in Electro-Motive Diesel, Inc. |
| (G) | | Relates to a first quarter net charge for a valuation allowance on GM’s net deferred tax assets in Spain and the United Kingdom. |
11
General Motors Corporation
List of Special Items
2007
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter 2007 | | | Year to Date 2007 | |
| | | Earnings | | | EPS | | | Earnings | | | EPS | |
REPORTED | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 784 | | | $ | 1.38 | | | $ | 742 | | | $ | 1.31 | |
| Income from discontinued operations | | | 107 | | | | 0.19 | | | | 211 | | | | 0.37 | |
| | | | | | | | | | | | | |
Net Income – Basic * | | $ | 891 | | | $ | 1.57 | | | $ | 953 | | | $ | 1.68 | |
| | | | | | | | | | | | | |
Net Income – Diluted * | | | | | | $ | 1.56 | | | | | | | $ | 1.67 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ADJUSTMENTS | | | | | | | | | | | | | | | | |
Pre-Tax Adjustments: | | | | | | | | | | | | | | | | |
| Delphi (A) | | $ | 575 | | | | | | | $ | 575 | | | | | |
| Restructuring/Special attrition program (B) | | | 130 | | | | | | | | 208 | | | | | |
| Product specific asset impairments (C) | | | 100 | | | | | | | | 108 | | | | | |
| Plant closures (D) | | | (6 | ) | | | | | | | (47 | ) | | | | |
| | | | | | | | | | | | | | | |
| | | | 799 | | | | | | | | 844 | | | | | |
| | | | | | | | | | | | | | | |
Tax Related Adjustments: | | | | | | | | | | | | | | | | |
| Income tax impact of pre-tax adjustments | | | (279 | ) | | | | | | | (292 | ) | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total Adjustments – Continuing Operations | | $ | 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 | | | | | | | $ | 2.64 | |
| | | | | | | | | | | | | | | |
| | |
| * | | See average shares outstanding on page 14. |
12
General Motors Corporation
List of Special Items
2007
(Unaudited)
| (A) | | GM, Delphi and the UAW entered into a Memorandum of Understanding (MOU) in June 2007. During the second quarter of 2007, GM recorded a charge of $575 million to increase our estimated liability under our Delphi Benefit Guarantee Agreements and to establish liabilities for certain commitments in connection with the Delphi reorganization plan outlined in the MOU. |
| (B) | | Relates to various restructuring initiatives and the 2006 Special Attrition Program. Charges recorded by region are as follows: |
| |
| | | GMNA: Second quarter charges of $97 million and year to date net adjustments of $95 million were recorded for our plant closing reserves. Also includes first quarter curtailment gains of $14 million and second quarter and year to date favorable adjustments of $6 million and $10 million, respectively, under the 2006 Special Attrition Program. |
| |
| | | GME: Second quarter charges of $30 million and year to date charges of $87 million were recorded for separation programs, primarily in Germany and Sweden. |
| |
| | | GMAP: Second quarter charges of $9 million and year to date charges of $50 million were recorded for voluntary separation programs at one of GM Holden’s Australian facilities as a result of increased plant efficiency. |
| (C) | | Relates to second quarter charges of $100 million and year to date charges of $108 million for product specific asset impairments. Charges recorded by region are as follows: |
| |
| | | GMNA:Charges of $95 million were recognized during the second quarter for product specific asset impairments. |
| |
| | | GMAP:Second quarter charges of $5 million and year to date charges of $13 million for product specific asset impairments at GM Holden, which were triggered by reductions in the production forecast. |
| (D) | | Relates to a first quarter curtailment gain of $38 million and year to date favorable reserve adjustments of $9 million at GMNA related to the closure of two former component plants. |
13
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
REPORTED | | | | | | | | | | | | | | | | |
| Total net sales and revenue | | $ | 38,156 | | | $ | 46,677 | | | $ | 80,645 | | | $ | 89,904 | |
| Income (loss) from continuing operations | | $ | (15,471 | ) | | $ | 784 | | | $ | (18,722 | ) | | $ | 742 | |
| Income from discontinued operations | | $ | — | | | $ | 107 | | | $ | — | | | $ | 211 | |
| Net income (loss) | | $ | (15,471 | ) | | $ | 891 | | | $ | (18,722 | ) | | $ | 953 | |
| Net margin from continuing operations * | | | (40.7 | )% | | | 1.7 | % | | | (23.2 | )% | | | 0.8 | % |
| | | | | | | | | | | | | | | | | |
Earnings (loss) per share – basic | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | (27.33 | ) | | $ | 1.38 | | | $ | (33.07 | ) | | $ | 1.31 | |
| Income from discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | (27.33 | ) | | $ | 1.57 | | | $ | (33.07 | ) | | $ | 1.68 | |
| | | | | | | | | | | | | |
Earnings (loss) per share – diluted | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | (27.33 | ) | | $ | 1.37 | | | $ | (33.07 | ) | | $ | 1.30 | |
| Income from discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | (27.33 | ) | | $ | 1.56 | | | $ | (33.07 | ) | | $ | 1.67 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ADJUSTED | | | | | | | | | | | | | | | | |
| Total net sales and revenue | | $ | 38,156 | | | $ | 46,677 | | | $ | 80,645 | | | $ | 89,904 | |
| Income (loss) from continuing operations | | $ | (6,346 | ) | | $ | 1,304 | | | $ | (6,696 | ) | | $ | 1,294 | |
| Income from discontinued operations | | $ | — | | | $ | 107 | | | $ | — | | | $ | 211 | |
| Net income (loss) | | $ | (6,346 | ) | | $ | 1,411 | | | $ | (6,696 | ) | | $ | 1,505 | |
| Net margin from continuing operations * | | | (16.7 | )% | | | 2.8 | % | | | (8.3 | )% | | | 1.4 | % |
| | | | | | | | | | | | | | | | | |
Earnings (loss) per share – basic | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | (11.21 | ) | | $ | 2.30 | | | $ | (11.83 | ) | | $ | 2.29 | |
| Income from discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | (11.21 | ) | | $ | 2.49 | | | $ | (11.83 | ) | | $ | 2.66 | |
| | | | | | | | | | | | | |
Earnings (loss) per share – diluted | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | (11.21 | ) | | $ | 2.29 | | | $ | (11.83 | ) | | $ | 2.27 | |
| Income from discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | (11.21 | ) | | $ | 2.48 | | | $ | (11.83 | ) | | $ | 2.64 | |
| | | | | | | | | | | | | |
See reconciliation of adjusted financial results on pages 15 – 21.
| | |
| * | | Calculated as Income (loss) from continuing operations / Total net sales and revenue. |
14
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | (Millions) | |
GM common stock average shares outstanding: | | | | | | | | | | | | | | | | |
| Reported (GAAP): | | | | | | | | | | | | | | | | |
| Basic shares | | | 566 | | | | 566 | | | | 566 | | | | 566 | |
| Diluted shares | | | 566 | | | | 569 | | | | 566 | | | | 569 | |
| Adjusted (Non-GAAP): | | | | | | | | | | | | | | | | |
| Basic shares | | | 566 | | | | 566 | | | | 566 | | | | 566 | |
| Diluted shares | | | 566 | | | | 569 | | | | 566 | | | | 569 | |
| | | | | | | | | | | | | | | | | |
Cash dividends per share of common stock | | $ | 0.25 | | | $ | 0.25 | | | $ | 0.50 | | | $ | 0.50 | |
| | | | | | | | | |
| | | (Billions) | |
Automotive cash & marketable securities and readily-available assets in VEBA at June 30: | | | | | | | | |
| Automotive cash & marketable securities | | $ | 20.5 | | | $ | 23.6 | |
| Readily–available assets in VEBA | | | 0.5 | | | | 3.6 | |
| | | | | | | |
Total automotive cash & marketable securities and readily-available assets in VEBA | | $ | 21.0 | | | $ | 27.2 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | (Millions) | |
Automotive Operations: | | | | | | | | | | | | | | | | |
| Depreciation and impairment | | $ | 1,179 | | | $ | 1,219 | | | $ | 2,405 | | | $ | 2,464 | |
| Amortization and impairment of special tools | | | 827 | | | | 850 | | | | 1,599 | | | | 1,570 | |
| Amortization of intangible assets | | | 20 | | | | 18 | | | | 40 | | | | 35 | |
| | | | | | | | | | | | | |
Total | | $ | 2,026 | | | $ | 2,087 | | | $ | 4,044 | | | $ | 4,069 | |
| | | | | | | | | | | | | |
15
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Net sales and revenue: | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | 19,820 | | | $ | 29,663 | | | $ | — | | | $ | — | | | $ | 19,820 | | | $ | 29,663 | |
| GME | | | 10,579 | | | | 9,512 | | | | — | | | | — | | | | 10,579 | | | | 9,512 | |
| GMLAAM | | | 5,109 | | | | 4,333 | | | | — | | | | — | | | | 5,109 | | | | 4,333 | |
| GMAP | | | 5,158 | | | | 5,287 | | | | — | | | | — | | | | 5,158 | | | | 5,287 | |
| Auto Elimination (a) | | | (2,993 | ) | | | (3,012 | ) | | | — | | | | — | | | | (2,993 | ) | | | (3,012 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 37,673 | | | | 45,783 | | | | — | | | | — | | | | 37,673 | | | | 45,783 | |
| Corporate & Other | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 37,673 | | | | 45,783 | | | | — | | | | — | | | | 37,673 | | | | 45,783 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | 483 | | | | 894 | | | | — | | | | — | | | | 483 | | | | 894 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 483 | | | | 894 | | | | — | | | | — | | | | 483 | | | | 894 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 38,156 | | | $ | 46,677 | | | $ | — | | | $ | — | | | $ | 38,156 | | | $ | 46,677 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes, other equity income and minority interests: | | | | | | | | | | | | | | | | |
| GMNA | | $ | (9,334 | ) | | $ | (98 | ) | | $ | 4,911 | | | $ | 180 | | | $ | (4,423 | ) | | $ | 82 | |
| GME | | | 12 | | | | 312 | | | | 79 | | | | 30 | | | | 91 | | | | 342 | |
| GMLAAM | | | 442 | | | | 295 | | | | — | | | | — | | | | 442 | | | | 295 | |
| GMAP | | | (359 | ) | | | 282 | | | | 98 | | | | 14 | | | | (261 | ) | | | 296 | |
| Auto Elimination (a) | | | (14 | ) | | | (1 | ) | | | — | | | | — | | | | (14 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | (9,253 | ) | | | 790 | | | | 5,088 | | | | 224 | | | | (4,165 | ) | | | 1,014 | |
| Corporate & Other (a) | | | (3,499 | ) | | | (579 | ) | | | 2,703 | | | | 575 | | | | (796 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | (12,752 | ) | | | 211 | | | | 7,791 | | | | 799 | | | | (4,961 | ) | | | 1,010 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | (2,551 | ) | | | 154 | | | | 1,334 | | | | — | | | | (1,217 | ) | | | 154 | |
| Other Financing (a) | | | (55 | ) | | | 86 | | | | — | | | | — | | | | (55 | ) | | | 86 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | (2,606 | ) | | | 240 | | | | 1,334 | | | | — | | | | (1,272 | ) | | | 240 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (15,358 | ) | | $ | 451 | | | $ | 9,125 | | | $ | 799 | | | $ | (6,233 | ) | | $ | 1,250 | |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
16
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Equity income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (6 | ) | | $ | 27 | | | $ | — | | | $ | — | | | $ | (6 | ) | | $ | 27 | |
| GME | | | 21 | | | | 12 | | | | — | | | | — | | | | 21 | | | | 12 | |
| GMLAAM | | | 9 | | | | 8 | | | | — | | | | — | | | | 9 | | | | 8 | |
| GMAP | | | 104 | | | | 122 | | | | — | | | | — | | | | 104 | | | | 122 | |
| Auto Elimination | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 128 | | | | 170 | | | | — | | | | — | | | | 128 | | | | 170 | |
| Corporate & Other | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 128 | | | | 170 | | | | — | | | | — | | | | 128 | | | | 170 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| |
Total | | $ | 128 | | | $ | 170 | | | $ | — | | | $ | — | | | $ | 128 | | | $ | 170 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Minority interests, net of tax: | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (6 | ) | | $ | (17 | ) | | $ | — | | | $ | — | | | $ | (6 | ) | | $ | (17 | ) |
| GME | | | (13 | ) | | | (9 | ) | | | — | | | | — | | | | (13 | ) | | | (9 | ) |
| GMLAAM | | | (6 | ) | | | (7 | ) | | | — | | | | — | | | | (6 | ) | | | (7 | ) |
| GMAP | | | 92 | | | | (124 | ) | | | — | | | | — | | | | 92 | | | | (124 | ) |
| Auto Elimination | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 67 | | | | (157 | ) | | | — | | | | — | | | | 67 | | | | (157 | ) |
| Corporate & Other | | | (1 | ) | | | — | | | | — | | | | — | | | | (1 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 66 | | | | (157 | ) | | | — | | | | — | | | | 66 | | | | (157 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | 1 | | | | — | | | | — | | | | — | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 1 | | | | — | | | | — | | | | — | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 67 | | | $ | (157 | ) | | $ | — | | | $ | — | | | $ | 67 | | | $ | (157 | ) |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
17
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Pre-tax earnings (loss): * | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (9,346 | ) | | $ | (88 | ) | | $ | 4,911 | | | $ | 180 | | | $ | (4,435 | ) | | $ | 92 | |
| GME | | | 20 | | | | 315 | | | | 79 | | | | 30 | | | | 99 | | | | 345 | |
| GMLAAM | | | 445 | | | | 296 | | | | — | | | | — | | | | 445 | | | | 296 | |
| GMAP | | | (163 | ) | | | 280 | | | | 98 | | | | 14 | | | | (65 | ) | | | 294 | |
| Auto Elimination (a) | | | (14 | ) | | | — | | | | — | | | | — | | | | (14 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | (9,058 | ) | | | 803 | | | | 5,088 | | | | 224 | | | | (3,970 | ) | | | 1,027 | |
| Corporate & Other (a) | | | (3,500 | ) | | | (579 | ) | | | 2,703 | | | | 575 | | | | (797 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | (12,558 | ) | | | 224 | | | | 7,791 | | | | 799 | | | | (4,767 | ) | | | 1,023 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | (2,551 | ) | | | 154 | | | | 1,334 | | | | — | | | | (1,217 | ) | | | 154 | |
| Other Financing (a) | | | (54 | ) | | | 86 | | | | — | | | | — | | | | (54 | ) | | | 86 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | (2,605 | ) | | | 240 | | | | 1,334 | | | | — | | | | (1,271 | ) | | | 240 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (15,163 | ) | | $ | 464 | | | $ | 9,125 | | | $ | 799 | | | $ | (6,038 | ) | | $ | 1,263 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | | | | | | | | | | | | | | | | | | | | | | | | |
| Corporate & Other | | $ | 1,045 | | | $ | (364 | ) | | $ | — | | | $ | 279 | | | $ | 1,045 | | | $ | (85 | ) |
| Other Financing (a) | | | (737 | ) | | | 44 | | | | — | | | | — | | | | (737 | ) | | | 44 | |
| | | | | | | | | | | | | | | | | | | |
Total | | $ | 308 | | | $ | (320 | ) | | $ | — | | | $ | 279 | | | $ | 308 | | | $ | (41 | ) |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
| | |
| * | | Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests. |
18
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Net sales and revenue: | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | 44,363 | | | $ | 57,720 | | | $ | — | | | $ | — | | | $ | 44,363 | | | $ | 57,720 | |
| GME | | | 20,488 | | | | 17,983 | | | | — | | | | — | | | | 20,488 | | | | 17,983 | |
| GMLAAM | | | 9,872 | | | | 7,910 | | | | — | | | | — | | | | 9,872 | | | | 7,910 | |
| GMAP | | | 10,454 | | | | 9,695 | | | | — | | | | — | | | | 10,454 | | | | 9,695 | |
| Auto Elimination (a) | | | (5,560 | ) | | | (5,234 | ) | | | — | | | | — | | | | (5,560 | ) | | | (5,234 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 79,617 | | | | 88,074 | | | | — | | | | — | | | | 79,617 | | | | 88,074 | |
| Corporate & Other | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 79,617 | | | | 88,074 | | | | — | | | | — | | | | 79,617 | | | | 88,074 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | 1,028 | | | | 1,830 | | | | — | | | | — | | | | 1,028 | | | | 1,830 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | 1,028 | | | | 1,830 | | | | — | | | | — | | | | 1,028 | | | | 1,830 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 80,645 | | | $ | 89,904 | | | $ | — | | | $ | — | | | $ | 80,645 | | | $ | 89,904 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes, other equity income and minority interests: | | | | | | | | | | | | | | | | |
| GMNA | | $ | (10,129 | ) | | $ | (309 | ) | | $ | 5,112 | | | $ | 119 | | | $ | (5,017 | ) | | $ | (190 | ) |
| GME | | | 81 | | | | 314 | | | | 202 | | | | 87 | | | | 283 | | | | 401 | |
| GMLAAM | | | 960 | | | | 550 | | | | — | | | | — | | | | 960 | | | | 550 | |
| GMAP | | | (157 | ) | | | 376 | | | | 98 | | | | 63 | | | | (59 | ) | | | 439 | |
| Auto Elimination (a) | | | (12 | ) | | | (8 | ) | | | — | | | | — | | | | (12 | ) | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | (9,257 | ) | | | 923 | | | | 5,412 | | | | 269 | | | | (3,845 | ) | | | 1,192 | |
| Corporate & Other (a) | | | (4,528 | ) | | | (789 | ) | | | 3,434 | | | | 575 | | | | (1,094 | ) | | | (214 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | (13,785 | ) | | | 134 | | | | 8,846 | | | | 844 | | | | (4,939 | ) | | | 978 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | (4,279 | ) | | | 20 | | | | 2,786 | | | | — | | | | (1,493 | ) | | | 20 | |
| Other Financing (a) | | | 49 | | | | 140 | | | | — | | | | — | | | | 49 | | | | 140 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | (4,230 | ) | | | 160 | | | | 2,786 | | | | — | | | | (1,444 | ) | | | 160 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (18,015 | ) | | $ | 294 | | | $ | 11,632 | | | $ | 844 | | | $ | (6,383 | ) | | $ | 1,138 | |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
19
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Equity income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (26 | ) | | $ | 40 | | | $ | — | | | $ | — | | | $ | (26 | ) | | $ | 40 | |
| GME | | | 34 | | | | 20 | | | | — | | | | — | | | | 34 | | | | 20 | |
| GMLAAM | | | 14 | | | | 14 | | | | — | | | | — | | | | 14 | | | | 14 | |
| GMAP | | | 238 | | | | 249 | | | | — | | | | — | | | | 238 | | | | 249 | |
| Auto Elimination | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 260 | | | | 324 | | | | — | | | | — | | | | 260 | | | | 324 | |
| Corporate & Other | | | — | | | | 2 | | | | — | | | | — | | | | — | | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 260 | | | | 326 | | | | — | | | | — | | | | 260 | | | | 326 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 260 | | | $ | 326 | | | $ | — | | | $ | — | | | $ | 260 | | | $ | 326 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Minority interests, net of tax: | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (3 | ) | | $ | (27 | ) | | $ | — | | | $ | — | | | $ | (3 | ) | | $ | (27 | ) |
| GME | | | (20 | ) | | | (15 | ) | | | — | | | | — | | | | (20 | ) | | | (15 | ) |
| GMLAAM | | | (12 | ) | | | (14 | ) | | | — | | | | — | | | | (12 | ) | | | (14 | ) |
| GMAP | | | 42 | | | | (202 | ) | | | — | | | | — | | | | 42 | | | | (202 | ) |
| Auto Elimination | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | 7 | | | | (258 | ) | | | — | | | | — | | | | 7 | | | | (258 | ) |
| Corporate & Other | | | (1 | ) | | | (1 | ) | | | — | | | | — | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | 6 | | | | (259 | ) | | | — | | | | — | | | | 6 | | | | (259 | ) |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Other Financing | | | (12 | ) | | | — | | | | — | | | | — | | | | (12 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | (12 | ) | | | — | | | | — | | | | — | | | | (12 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (6 | ) | | $ | (259 | ) | | $ | — | | | $ | — | | | $ | (6 | ) | | $ | (259 | ) |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
20
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reported | | | Special Items | | | Adjusted | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Pre-tax earnings (loss): * | | | | | | | | | | | | | | | | | | | | | | | | |
| GMNA | | $ | (10,158 | ) | | $ | (296 | ) | | $ | 5,112 | | | $ | 119 | | | $ | (5,046 | ) | | $ | (177 | ) |
| GME | | | 95 | | | | 319 | | | | 202 | | | | 87 | | | | 297 | | | | 406 | |
| GMLAAM | | | 962 | | | | 550 | | | | — | | | | — | | | | 962 | | | | 550 | |
| GMAP | | | 123 | | | | 423 | | | | 98 | | | | 63 | | | | 221 | | | | 486 | |
| Auto Elimination (a) | | | (12 | ) | | | (7 | ) | | | — | | | | — | | | | (12 | ) | | | (7 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total GMA | | | (8,990 | ) | | | 989 | | | | 5,412 | | | | 269 | | | | (3,578 | ) | | | 1,258 | |
| Corporate & Other (a) | | | (4,529 | ) | | | (788 | ) | | | 3,434 | | | | 575 | | | | (1,095 | ) | | | (213 | ) |
| | | | | | | | | | | | | | | | | | | |
Total Auto & Other | | | (13,519 | ) | | | 201 | | | | 8,846 | | | | 844 | | | | (4,673 | ) | | | 1,045 | |
| | | | | | | | | | | | | | | | | | | |
| GMAC | | | (4,279 | ) | | | 20 | | | | 2,786 | | | | — | | | | (1,493 | ) | | | 20 | |
| Other Financing (a) | | | 37 | | | | 140 | | | | — | | | | — | | | | 37 | | | | 140 | |
| | | | | | | | | | | | | | | | | | | |
Total Financing | | | (4,242 | ) | | | 160 | | | | 2,786 | | | | — | | | | (1,456 | ) | | | 160 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (17,761 | ) | | $ | 361 | | | $ | 11,632 | | | $ | 844 | | | $ | (6,129 | ) | | $ | 1,205 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | | | | | | | | | | | | | | | | | | | | | | | | |
| Corporate & Other | | $ | 1,690 | | | $ | (431 | ) | | $ | (394 | ) | | $ | 292 | | | $ | 1,296 | | | $ | (139 | ) |
| Other Financing (a) | | | (729 | ) | | | 50 | | | | — | | | | — | | | | (729 | ) | | | 50 | |
| | | | | | | | | | | | | | | | | | | |
Total | | $ | 961 | | | $ | (381 | ) | | $ | (394 | ) | | $ | 292 | | | $ | 567 | | | $ | (89 | ) |
| | | | | | | | | | | | | | | | | | | |
See footnotes on page 23.
| | |
| * | | Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests. |
21
General Motors Corporation
Summary Corporate Financial Results
(Dollars in billions)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Automotive & Other Adjusted Operating Cash Flow: | | | | | | | | | | | | | | | | |
| Total Auto & Other pre-tax earnings (loss)* | | $ | (12.6 | ) | | $ | 0.2 | | | $ | (13.5 | ) | | $ | 0.2 | |
| Depreciation and amortization | | | 2.0 | | | | 2.1 | | | | 4.0 | | | | 4.1 | |
| Capital expenditures | | | (2.2 | ) | | | (1.7 | ) | | | (4.1 | ) | | | (2.9 | ) |
| Change in receivables, payables and inventory | | | 0.6 | | | | 0.2 | | | | (1.5 | ) | | | 0.2 | |
| Pension/OPEB expense (net of payments) | | | 2.7 | | | | (0.5 | ) | | | 2.0 | | | | (1.0 | ) |
| VEBA | | | — | | | | (1.0 | ) | | | — | | | | (1.0 | ) |
| Accrued expenses and other | | | 5.9 | | | | 1.8 | | | | 5.9 | | | | 1.8 | |
| | | | | | | | | | | | | |
Total Auto & Other Adjusted Operating Cash Flow | | $ | (3.6 | ) | | $ | 1.1 | | | $ | (7.2 | ) | | $ | 1.4 | |
| | | | | | | | | | | | | |
| | |
| * | | Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests. |
22
General Motors Corporation
Operating Statistics
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | | Year to Date | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | (Units in thousands) | | | | | |
Worldwide Production Volume: | | | | | | | | | | | | | | | | |
| GMNA – Cars | | | 382 | | | | 402 | | | | 742 | | | | 801 | |
| GMNA – Trucks | | | 452 | | | | 740 | | | | 977 | | | | 1,404 | |
| | | | | | | | | | | | | |
| Total GMNA | | | 834 | | | | 1,142 | | | | 1,719 | | | | 2,205 | |
| GME | | | 495 | | | | 464 | | | | 988 | | | | 975 | |
| GMLAAM | | | 276 | | | | 233 | | | | 519 | | | | 455 | |
| GMAP * | | | 619 | | | | 571 | | | | 1,231 | | | | 1,115 | |
| | | | | | | | | | | | | |
Total Worldwide ** | | | 2,224 | | | | 2,410 | | | | 4,457 | | | | 4,750 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Vehicle Unit Deliveries: | | | | | | | | | | | | | | | | |
| Chevrolet – Cars | | | 206 | | | | 218 | | | | 388 | | | | 405 | |
| Chevrolet – Trucks | | | 278 | | | | 376 | | | | 577 | | | | 737 | |
| Pontiac | | | 80 | | | | 96 | | | | 153 | | | | 175 | |
| GMC | | | 93 | | | | 131 | | | | 197 | | | | 241 | |
| Buick | | | 33 | | | | 47 | | | | 71 | | | | 90 | |
| Saturn | | | 54 | | | | 69 | | | | 102 | | | | 126 | |
| Cadillac | | | 42 | | | | 51 | | | | 89 | | | | 98 | |
| Other | | | 13 | | | | 26 | | | | 28 | | | | 51 | |
| | | | | | | | | | | | | |
| Total United States | | | 799 | | | | 1,014 | | | | 1,605 | | | | 1,923 | |
| Canada, Mexico and Other | | | 165 | | | | 186 | | | | 306 | | | | 333 | |
| | | | | | | | | | | | | |
| Total GMNA | | | 964 | | | | 1,200 | | | | 1,911 | | | | 2,256 | |
| GME | | | 590 | | | | 575 | | | | 1,161 | | | | 1,129 | |
| GMLAAM | | | 346 | | | | 294 | | | | 670 | | | | 564 | |
| GMAP * | | | 387 | | | | 338 | | | | 798 | | | | 726 | |
| | | | | | | | | | | | | |
Total Worldwide ** | | | 2,287 | | | | 2,407 | | | | 4,540 | | | | 4,675 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Market Share: | | | | | | | | | | | | | | | | |
| United States – Cars | | | 17.1 | % | | | 19.4 | % | | | 18.0 | % | | | 19.4 | % |
| United States – Trucks | | | 24.3 | % | | | 26.0 | % | | | 24.6 | % | | | 25.7 | % |
| Total United States | | | 20.4 | % | | | 22.8 | % | | | 21.3 | % | | | 22.8 | % |
| Total GMNA | | | 20.2 | % | | | 22.7 | % | | | 20.9 | % | | | 22.6 | % |
| Total GME | | | 9.4 | % | | | 9.4 | % | | | 9.5 | % | | | 9.5 | % |
| Total GMLAAM | | | 17.5 | % | | | 16.8 | % | | | 17.5 | % | | | 16.6 | % |
| Total GMAP * | | | 7.0 | % | | | 6.7 | % | | | 7.0 | % | | | 6.9 | % |
Total Worldwide | | | 12.3 | % | | | 13.2 | % | | | 12.4 | % | | | 13.1 | % |
| | | | | | | | | | | | | | | | | |
U.S. Retail/Fleet Mix: | | | | | | | | | | | | | | | | |
| % Fleet Sales — Cars | | | 23.9 | % | | | 33.2 | % | | | 28.5 | % | | | 34.8 | % |
| % Fleet Sales — Trucks | | | 23.0 | % | | | 22.3 | % | | | 22.4 | % | | | 20.4 | % |
Total Vehicles | | | 23.4 | % | | | 26.7 | % | | | 25.0 | % | | | 26.1 | % |
| | | | | | | | | | | | | | | | | |
GMNA Capacity Utilization *** | | | 71.0 | % | | | 94.9 | % | | | 73.6 | % | | | 91.5 | % |
| | |
| * | | GMAP production and sales volume includes SAIC-GM Wuling Automobile Co. Ltd. (SGMW) joint venture vehicles. We own 34% of SGMW and under the joint venture agreement have significant rights as a member as well as the contractual right to report SGMW sales in China as part of our global market share. |
| |
| ** | | Total Worldwide may include rounding differences. |
| |
| *** | | Two shift rated, annualized. |
23
General Motors Corporation
Operating Statistics
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Second Quarter | | Year to Date |
| | | 2008 | | 2007 | | 2008 | | 2007 |
GMAC’s share of GM retail sales | | | | | | | | | | | | | | | | |
| Total consumer volume (retail and lease) as % of retail (North America only) | | | 43 | % | | | 45 | % | | | 46 | % | | | 45 | % |
| SmartLease/SmartBuy as % of retail (U.S. only) | | | 14 | % | | | 16 | % | | | 17 | % | | | 16 | % |
| | | | | | | | | |
| | | (Thousands) |
Worldwide Employment at June 30: | | | | | | | | |
| United States – Hourly (b) | | | 72 | | | | 83 | |
| United States – Salaried (b) | | | 32 | | | | 33 | |
| | | | | | | | | |
| Total United States | | | 104 | | | | 116 | |
| Canada, Mexico and Other | | | 29 | | | | 30 | |
| | | | | | | | | |
| GMNA | | | 133 | | | | 146 | |
| GME | | | 57 | | | | 59 | |
| GMLAAM | | | 36 | | | | 33 | |
| GMAP | | | 35 | | | | 33 | |
| Other | | | 2 | | | | 3 | |
| | | | | | | | | |
Total GM | | | 263 | | | | 274 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | (Billions) |
Worldwide Payroll | | $ | 4.2 | | | $ | 4.4 | | | $ | 8.5 | | | $ | 9.0 | |
Footnotes:
| | | |
| (a) | | Auto Eliminations, Corporate & Other and Other Financing include inter-company eliminations. |
| |
| (b) | | Includes approximately 2,000 hourly and 1,100 salary employees of Allison Transmission at June 30, 2007. |
24
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Net sales and revenue | | | | | | | | | | | | | | | | |
| Automotive sales | | $ | 37,673 | | | $ | 45,783 | | | $ | 79,617 | | | $ | 88,074 | |
| Financial services and insurance revenue | | | 483 | | | | 894 | | | | 1,028 | | | | 1,830 | |
| | | | | | | | | | | | | |
| Total net sales and revenue | | | 38,156 | | | | 46,677 | | | | 80,645 | | | | 89,904 | |
| | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | |
| Automotive cost of sales | | | 43,546 | | | | 41,666 | | | | 81,698 | | | | 80,395 | |
| Selling, general and administrative expense | | | 3,754 | | | | 3,293 | | | | 7,453 | | | | 6,604 | |
| Financial services and insurance expense | | | 579 | | | | 811 | | | | 1,075 | | | | 1,694 | |
| Other expenses | | | 2,753 | | | | 575 | | | | 3,484 | | | | 575 | |
| | | | | | | | | | | | | |
| Total costs and expenses | | | 50,632 | | | | 46,345 | | | | 93,710 | | | | 89,268 | |
| | | | | | | | | | | | | |
| Operating income (loss) | | | (12,476 | ) | | | 332 | | | | (13,065 | ) | | | 636 | |
| Equity in income (loss) of GMAC LLC | | | (1,930 | ) | | | 118 | | | | (3,542 | ) | | | (65 | ) |
| Automotive and other interest expense | | | (721 | ) | | | (681 | ) | | | (1,495 | ) | | | (1,480 | ) |
| Automotive interest income and other non-operating income (loss), net | | | (231 | ) | | | 682 | | | | 87 | | | | 1,203 | |
| | | | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes, equity income and minority interests | | | (15,358 | ) | | | 451 | | | | (18,015 | ) | | | 294 | |
| Income tax expense (benefit) | | | 308 | | | | (320 | ) | | | 961 | | | | (381 | ) |
| Equity income, net of tax | | | 128 | | | | 170 | | | | 260 | | | | 326 | |
| Minority interests, net of tax | | | 67 | | | | (157 | ) | | | (6 | ) | | | (259 | ) |
| | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | (15,471 | ) | | | 784 | | | | (18,722 | ) | | | 742 | |
| Income from discontinued operations, net of tax | | | — | | | | 107 | | | | — | | | | 211 | |
| | | | | | | | | | | | | |
Net income (loss) | | $ | (15,471 | ) | | $ | 891 | | | $ | (18,722 | ) | | $ | 953 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | (27.33 | ) | | $ | 1.38 | | | $ | (33.07 | ) | | $ | 1.31 | |
| Discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
| Total | | $ | (27.33 | ) | | $ | 1.57 | | | $ | (33.07 | ) | | $ | 1.68 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding, basic (millions) | | | 566 | | | | 566 | | | | 566 | | | | 566 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | (27.33 | ) | | $ | 1.37 | | | $ | (33.07 | ) | | $ | 1.30 | |
| Discontinued operations | | | — | | | | 0.19 | | | | — | | | | 0.37 | |
| | | | | | | | | | | | | |
| Total | | $ | (27.33 | ) | | $ | 1.56 | | | $ | (33.07 | ) | | $ | 1.67 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding, diluted (millions) | | | 566 | | | | 569 | | | | 566 | | | | 569 | |
| | | | | | | | | | | | | |
| |
| Cash dividends per share | | $ | 0.25 | | | $ | 0.25 | | | $ | 0.50 | | | $ | 0.50 | |
| | | | | | | | | | | | | |
25
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
| | | | | | | | | | | | | |
| | | June 30, | | | December 31, | | | June 30, | |
| | | 2008 | | | 2007 | | | 2007 | |
ASSETS
|
Current Assets | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 19,356 | | | $ | 24,549 | | | $ | 22,040 | |
| Marketable securities | | | 1,150 | | | | 2,139 | | | | 1,573 | |
| | | | | | | | | | |
| Total cash and marketable securities | | | 20,506 | | | | 26,688 | | | | 23,613 | |
| Accounts and notes receivable, net | | | 8,946 | | | | 9,659 | | | | 10,233 | |
| Inventories | | | 17,744 | | | | 14,939 | | | | 15,073 | |
| Assets held for sale | | | — | | | | — | | | | 683 | |
| Equipment on operating leases, net | | | 4,669 | | | | 5,283 | | | | 5,889 | |
| Other current assets and deferred income taxes | | | 3,576 | | | | 3,566 | | | | 12,471 | |
| | | | | | | | | | |
| Total current assets | | | 55,441 | | | | 60,135 | | | | 67,962 | |
Financing and Insurance Operations Assets | | | | | | | | | | | | |
| Cash and cash equivalents | | | 198 | | | | 268 | | | | 258 | |
| Investments in securities | | | 214 | | | | 215 | | | | 192 | |
| Equipment on operating leases, net | | | 3,804 | | | | 6,712 | | | | 9,145 | |
| Equity in net assets of GMAC LLC | | | 3,454 | | | | 7,079 | | | | 7,555 | |
| Other assets | | | 2,807 | | | | 2,715 | | | | 2,819 | |
| | | | | | | | | | |
| Total Financing and Insurance Operations assets | | | 10,477 | | | | 16,989 | | | | 19,969 | |
Non-Current Assets | | | | | | | | | | | | |
| Equity in net assets of nonconsolidated affiliates | | | 2,367 | | | | 1,919 | | | | 2,000 | |
| Property, net | | | 44,038 | | | | 43,017 | | | | 41,404 | |
| Goodwill and intangible assets, net | | | 1,070 | | | | 1,066 | | | | 973 | |
| Deferred income taxes | | | 1,014 | | | | 2,116 | | | | 32,449 | |
| Prepaid pension | | | 17,991 | | | | 20,175 | | | | 18,305 | |
| Other assets | | | 3,648 | | | | 3,466 | | | | 3,577 | |
| | | | | | | | | | |
| Total non-current assets | | | 70,128 | | | | 71,759 | | | | 98,708 | |
| | | | | | | | | | |
Total Assets | | $ | 136,046 | | | $ | 148,883 | | | $ | 186,639 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
Current Liabilities | | | | | | | | | | | | |
| Accounts payable (principally trade) | | $ | 30,097 | | | $ | 29,439 | | | $ | 30,742 | |
| Short-term borrowings and current portion of long-term debt | | | 8,008 | | | | 6,047 | | | | 5,150 | |
| Liabilities related to assets held for sale | | | — | | | | — | | | | 526 | |
| Accrued expenses | | | 37,373 | | | | 34,822 | | | | 34,621 | |
| | | | | | | | | | |
| Total current liabilities | | | 75,478 | | | | 70,308 | | | | 71,039 | |
Financing and Insurance Operations Liabilities | | | | | | | | | | | | |
| Debt | | | 2,753 | | | | 4,908 | | | | 7,133 | |
| Other liabilities and deferred income taxes | | | 884 | | | | 905 | | | | 855 | |
| | | | | | | | | | |
| Total Financing and Insurance Operations liabilities | | | 3,637 | | | | 5,813 | | | | 7,988 | |
Non-Current Liabilities | | | | | | | | | | | | |
| Long-term debt | | | 32,450 | | | | 33,384 | | | | 34,134 | |
| Postretirement benefits other than pensions | | | 47,476 | | | | 47,375 | | | | 48,353 | |
| Pensions | | | 11,774 | | | | 11,381 | | | | 11,654 | |
| Other liabilities and deferred income taxes | | | 20,825 | | | | 16,102 | | | | 15,972 | |
| | | | | | | | | | |
| Total non-current liabilities | | | 112,525 | | | | 108,242 | | | | 110,113 | |
| | | | | | | | | | |
| Total liabilities | | | 191,640 | | | | 184,363 | | | | 189,140 | |
| Commitments and contingencies | | | | | | | | | | | | |
| Minority interests | | | 1,376 | | | | 1,614 | | | | 1,268 | |
Stockholders’ Deficit | | | | | | | | | | | | |
| Preferred stock, no par value, 6,000,000 shares authorized, no shares issued and outstanding | | | — | | | | — | | | | — | |
| Common stock, $1 2/3 par value (2,000,000,000 shares authorized, 756,637,541 and 566,162,598 shares issued and outstanding as of June 30, 2008, respectively, 756,637,541 and 566,059,249 shares issued and outstanding as of December 31, 2007, respectively, and 756,637,541 and 565,864,695 shares issued and outstanding as of June 30, 2007, respectively) | | | 944 | | | | 943 | | | | 943 | |
| Capital surplus (principally additional paid-in capital) | | | 15,335 | | | | 15,319 | | | | 15,255 | |
| Accumulated deficit | | | (58,470 | ) | | | (39,392 | ) | | | 577 | |
| Accumulated other comprehensive loss | | | (14,779 | ) | | | (13,964 | ) | | | (20,544 | ) |
| | | | | | | | | | |
| Total stockholders’ deficit | | | (56,970 | ) | | | (37,094 | ) | | | (3,769 | ) |
| | | | | | | | | | |
Total Liabilities, Minority Interests and Stockholders’ Deficit | | $ | 136,046 | | | $ | 148,883 | | | $ | 186,639 | |
| | | | | | | | | | |
26
