DRAFT 08/05/96 3:59 PM GM CONFIDENTIAL
2
VERSION 4A
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999, OR
TRANSITION REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE TRANSITION PERIOD FROM TO
Commission file number 1-3754
GENERAL MOTORS ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 38-0572512
- ----------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3044 WEST GRAND BOULEVARD, DETROIT, MICHIGAN 48202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-556-5000
The registrant meets the conditions set forth in General Instruction H(1) (a)
and (b) of Form 10-Q and is therefore filing this Form with the reduced
disclosure format.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days. Yes /X/ No / /.
As of June 30, 1999, there were outstanding 10 shares of the issuer's common
stock.
Documents incorporated by reference. NONE.
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This quarterly report, filed pursuant to Rule 13a-13 of the General Rules and
Regulations under the Securities Exchange Act of 1934, consists of the following
information as specified in Form 10-Q:
PART 1. FINANCIAL INFORMATION
The required information is given as to the registrant, General Motors
Acceptance Corporation and subsidiaries (the Company or GMAC).
ITEM 1. FINANCIAL STATEMENTS
In the opinion of management, the interim financial statements
reflect all adjustments, consisting of only normal recurring items
which are necessary for a fair presentation of the results for the
interim periods presented. The results for interim periods are
unaudited and are not necessarily indicative of results which may
be expected for any other interim period or for the full year.
These financial statements should be read in conjunction with the
consolidated financial statements, the significant accounting
policies, and the other notes to the consolidated financial
statements included in the Company's 1998 Annual Report filed with
the Securities and Exchange Commission on Form 10-K.
The Financial Statements described below are submitted herein as
Exhibit 20.
1. Consolidated Balance Sheet, June 30, 1999, December 31,
1998 and June 30, 1998.
2. Consolidated Statement of Income, Net Income Retained for
Use in the Business and Comprehensive Income for the
Second Quarter and Six Months Ended June 30, 1999 and
1998.
3. Consolidated Statement of Cash Flows for the Six Months
Ended June 30, 1999 and 1998.
4. Notes to Consolidated Financial Statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS
Consolidated net income for the second quarter and first six months of 1999
increased by 7% and 10% when compared to the same periods during 1998.
(in millions of dollars, after tax) Period Ended June 30,
-----------------------------------------------------
Second Quarter Six Months
-------------------------- ------------------------
1999 1998 1999 1998
------------ ------------ ------------ ----------
Automotive financing operations $274.5 $288.0 $504.1 $534.6
Insurance operations * 50.2 53.9 115.1 133.6
Mortgage operations** 66.4 22.8 164.2 45.8
============ ============ ============ ============
Consolidated net income $391.1 $364.7 $783.4 $714.0
============ ============ ============ ============
* GMAC Insurance Holdings, Inc. (GMACI)
** GMAC Mortgage Group, Inc. (GMACMG)
Net income from automotive financing operations declined 5% during the second
quarter of 1999, compared to the same period in 1998. The reduction in earnings
was primarily a result of a significantly lower effective income tax rate for
the same period in 1998.
Earnings from insurance operations decreased by 7% during the second quarter of
1999, compared to the same period during 1998. Earnings were lower primarily due
to lower underwriting results in the current quarter, partially offset by higher
capital gains.
Net income from mortgage operations during the second quarter of 1999 was $43.6
million higher than the second quarter of 1998. The increase was primarily
attributable to improved liquidity in the capital markets coupled with unusually
low earnings in the second quarter of 1998, which were negatively impacted by
accelerated prepayment experience on mortgage assets.
UNITED STATES NEW PASSENGER CAR AND TRUCK DELIVERIES
U.S. deliveries of new General Motors (GM) vehicles during the second quarter of
1999 were unchanged compared to the second quarter of 1998, while the first six
months of 1999 were slightly higher than the comparable period in 1998. The
decline in financing penetration was primarily the result of competitive market
conditions.
Period Ended June 30,
----------------------------------------------------
Second Quarter Six Months
------------------------- ------------------------
1999 1998 1999 1998
------------ ----------- ----------- -----------
(in millions of units)
Industry 4.8 4.5 8.8 8.2
General Motors 1.4 1.4 2.6 2.5
New GM vehicle deliveries financed by GMAC
Retail (installment sale contracts and operating leases) 41.6% 44.3% 41.0% 43.9%
Fleet transactions (lease financing) 1.4% 2.5% 1.7% 2.2%
Total 33.1% 36.5% 32.4% 35.7%
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
FINANCING VOLUME
The number of new vehicle deliveries financed for GM and other dealers are
summarized below:
Period Ended June 30,
------------------------------------------
Second Quarter Six Months
-------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- ---------
(in thousands of units)
UNITED STATES
Retail installment sale contracts 241 316 466 549
Operating leases 221 204 376 346
Leasing 7 7 15 13
========= ========= ========= =========
New deliveries financed 469 527 857 908
========= ========= ========= =========
OTHER COUNTRIES
Retail installment sale contracts 110 91 210 199
Operating leases 90 98 151 154
Leasing 19 18 33 38
========= ========= ========= =========
New deliveries financed 219 207 394 391
========= ========= ========= =========
WORLDWIDE
Retail installment sale contracts 351 407 676 748
Operating leases 311 302 527 500
Leasing 26 25 48 51
========= ========= ========= =========
New deliveries financed 688 734 1,251 1,299
========= ========= ========= =========
The number of new vehicles financed in the U.S. during the second quarter and
first six months of 1999 declined from the respective 1998 periods, primarily as
a result of a reduction in retail rate incentive programs sponsored by GM during
1999.
GMAC also provides wholesale financing for GM and other dealers' new and used
vehicle inventories. In the United States, inventory financing was provided for
860,000 and 1,728,000 new GM vehicles during the second quarter and first six
months of 1999, respectively, compared with 643,000 and 1,367,000 new GM
vehicles during the respective periods in 1998. The primary cause of the
increase in new GM vehicles financed is work stoppages at two GM component
plants in June of last year that halted production of wholesale units at 26 of
29 assembly plants in North America. GMAC's wholesale financing represented
65.0% of all GM U.S. vehicle sales to dealers during the first six months of
1999, up from 63.1% for the comparable period a year ago. The increase in
wholesale penetration levels was a result of competitive pricing strategies by
the Company.
INCOME AND EXPENSES
Automotive financing revenue totaled $3,361.2 million and $6,638.3 million in
the second quarter and first six months of 1999, respectively, compared to
$3,204.7 million and $6,311.5 million for the same periods in 1998. The increase
was mainly due to higher average retail and other loan receivable balances which
resulted from continued retail financing incentives sponsored by GM.
Additionally, increased wholesale revenues resulting from higher average
wholesale balances contributed to the change. The increased wholesale balances
were primarily attributable to the 1998 work stoppages previously mentioned.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
The Company's worldwide cost of borrowing for the second quarter and first six
months of 1999 averaged 5.53% and 5.52%, respectively, a decrease of 51 and 55
basis points from the comparable periods of a year ago. Total borrowing costs
for U.S. operations averaged 5.45% for both the second quarter and first six
months of 1999, compared to 5.96% and 6.03% for the respective periods in 1998.
The lower average borrowing costs for the first six months of 1999 are largely a
result of lower interest rates.
Insurance premiums earned, mortgage revenue and other income totaled $1,537.9
million and $3,086.8 million for the second quarter and six months ended June
30, 1999, respectively, compared to $1,317.2 million and $2,536.4 million during
the comparable 1998 periods. The increase in 1999 over 1998 was primarily the
result of substantial increases in mortgage servicing and processing fees. These
increases were slightly offset by a reduction in insurance premiums earned due
to a decline in personal line coverages.
Consolidated salaries and other operating expenses totaled $1,111.3 million and
$2,128.2 million for the second quarter and first six months of 1999,
respectively, compared to $869.5 million and $1,672.1 million for the comparable
periods last year. The increase was mainly attributable to continued growth and
acquisitions at GMACMG.
Annualized net retail losses were 0.51% and 0.61% of total average serviced
automotive receivables during the second quarter and first six months of 1999,
respectively, compared to 0.73% and 0.88% for the same periods last year. The
provision for credit losses totaled $229.7 million and $228.7 million for the
six month periods ended June 30, 1999 and 1998, respectively. Although
comparable period loss rates declined, the higher loss provision reflects an
increase in retail receivables during the first six months of 1999 and favorable
wholesale loss provision adjustments during the first quarter of 1998.
The effective income tax rate for the first six months of 1999 was 38.8%,
compared to 31.6% and 31.5% for the periods ended December 31, 1998 and June 30,
1998, respectively. The increase in the effective tax rate can be attributed to
a significantly lower effective tax rate for the first six months of 1998 due to
a decrease in U.S. and foreign taxes assessed on foreign source income.
INSURANCE OPERATIONS
Net premiums earned by GMACI and its subsidiaries totaled $442.2 million and
$888.8 million for the second quarter and six months ended June 30, 1999,
respectively, compared to $479.8 million and $950.8 million for the same periods
during 1998. The decrease in net premiums earned was primarily a result of a
decline in personal line coverages. Personal lines volume for the six months
ended June 30, 1999 is lower compared to the same period in 1998 due to
competitive pressures in non-standard automobile insurance which reduced new
business volume in the second half of 1998. This adversely impacted both new
business and the renewal base during the first six months of 1999.
Pre-tax capital gains and investment and other income at GMACI totaled $148.7
million and $289.0 million for the second quarter and first six months of 1999,
compared to $123.2 million and $270.9 million for same periods in 1998.
Insurance losses and loss adjustment expenses totaled $338.1 million and $685.3
million during the second quarter and first six months of 1999, compared to
$387.6 million and $726.2 million for the same periods in 1998. The decline in
the first six months of 1999 when compared to the same period in 1998 is the
result of lower commercial auto catastrophe claims.
Net income was $50.2 million and $115.1 million for the second quarter and six
months ended June 30, 1999, respectively, compared to $53.9 million and $133.6
million for the same periods in 1998. Earnings were reduced by lower
underwriting results due to a decrease in personal line coverages, partially
offset by higher capital gains.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
MORTGAGE OPERATIONS
During the second quarter and first six months of 1999, GMACMG loan origination,
mortgage servicing acquisitions and correspondent loan volume totaled $30.3
billion and $48.1 billion, respectively, compared to $45.8 billion and $62.5
billion for the same periods in 1998. Included in 1998 volume is $33.5 billion
of servicing acquisitions related to the Wells Fargo transaction, which closed
on June 1, 1998. As a result of significant mortgage servicing portfolio
acquisitions and continued growth, the combined GMACMG servicing portfolio,
excluding GMAC term loans to dealers, totaled $255.3 billion at June 30, 1999,
compared with $245.0 billion and $187.3 billion serviced at December 31 and June
30, 1998, respectively.
Net income was $66.4 million and $164.2 million for the second quarter and six
months ended June 30, 1999, respectively, compared to $22.8 million and $45.8
million for the same periods in 1998. The increase in net income is primarily
attributable to an unusually strong first quarter, where one time gains were
realized from the sales of certain assets that were acquired in the fourth
quarter of 1998 when the capital markets were less liquid. In addition, earnings
in the second quarter of 1998 were negatively impacted by accelerated prepayment
on mortgage assets.
In April 1999, GMACMG acquired DiTech Funding Corporation, a nationwide direct
lender headquartered in Irvine, California. DiTech has improved GMACMG's loan
replenishment of its servicing portfolio, and further diversified existing
origination channels, including the Internet.
FINANCIAL CONDITION AND LIQUIDITY
At June 30, 1999, the Company owned assets and serviced automotive receivables
totaling $146.7 billion, $8.0 billion above year-end 1998, and $21.9 billion
above June 30, 1998. The higher balance compared to second quarter of last year
is primarily attributable to increases in serviced wholesale, retail, and term
loan receivables as well as continued growth in mortgage- related assets.
Earning assets totaled $127.1 billion at June 30, 1999, compared to $125.1
billion and $108.1 billion at December 31 and June 30, 1998, respectively.
Finance receivables serviced by the Company, including sold receivables, totaled
$87.3 billion at June 30, 1999, $7.4 billion above December 31, 1998 levels and
$14.8 billion above June 30, 1998 levels. The change from December 31, 1998 can
be attributed to a $3.5 billion increase in serviced retail receivables, and a
$2.3 billion increase in serviced wholesale receivables. Additionally,
on-balance sheet term loans increased by $2.0 billion. The year-to-year increase
was a result of a $6.9 billion increase in serviced wholesale receivables, and a
$5.0 billion increase in serviced retail receivables. In addition, other finance
receivables increased by $3.3 billion. The increase in retail receivable
balances over December 31 and June 30, 1998 was due to continued retail
financing incentives sponsored by GM. The increase in wholesale receivable
balances over December 31 and June 30, 1998 was a result of the 1998 work
stoppages previously mentioned and higher penetration.
Consolidated operating lease assets, net of depreciation, totaled $28.4 billion
at June 30, 1999, reflecting an increase of $0.5 billion over December 31,1998
and an increase of $0.7 billion over June 30, 1998. The growth from year-end
1998 is primarily attributable to continued GM sponsored lease incentive
programs in the U.S. and Canada.
Investments in securities at June 30, 1999 totaled $8.4 billion, compared with
$8.7 billion and $7.9 billion at December 31 and June 30, 1998, respectively.
The increase in June 1999 over June 1998 is principally the result of continued
growth at GMACMG.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
The Company's due and deferred from receivable sales (net) totaled $110.1
million at June 30, 1999, compared with $111.5 million and $240.0 million at
December 31 and June 30, 1998, respectively. The year-to-year decline was the
result of a scheduled wind down of a revolving wholesale trust.
As of June 30, 1999, GMAC's total borrowings were $109.1 billion, compared with
$106.2 billion and $89.6 billion at December 31, 1998 and June 30, 1998,
respectively. The higher borrowings were used to fund increased earning asset
levels. GMAC's ratio of consolidated debt to total stockholder's equity at June
30, 1999 was 10.5:1, compared to 10.8:1 at December 31, 1998 and 9.6:1 at June
30, 1998.
The Company and its subsidiaries maintain substantial bank lines of credit which
totaled $45.6 billion at June 30, 1999, compared to $42.9 billion at year-end
1998 and $40.7 billion at June 30, 1998. The unused portion of these credit
lines totaled $35.8 billion at June 30, 1999, $2.6 billion and $3.9 billion
higher than December 31 and June 30, 1998, respectively. Included in the unused
credit lines is a syndicated multi-currency global credit facility for use by
GMAC U.S., GMAC International Finance B.V. and GMAC (UK) plc of $14.7 billion at
June 30, 1999, compared to syndicated revolving credit facilities of $11.2
billion at December 31, 1998 and June 30, 1998 for these entities. The
syndicated credit facilities serve primarily as back-up for GMAC's unsecured
commercial paper programs. Also included in the unused credit lines is a $12.0
billion U.S. asset-backed commercial paper liquidity and receivables facility
for New Center Asset Trust (NCAT), a non-consolidated limited purpose business
trust established to issue asset-backed commercial paper.
In June 1999, GMAC modified its existing syndicated revolving credit facilities
to combine the GMAC U.S. and certain European facilities into one syndicated
multi-currency global facility. Modified terms consisted of five years on
one-half of the facility, with a 364-day term (including a provision that allows
GMAC to draw down a one year term loan on the termination date) on the remaining
facility. Additionally, there is a leverage covenant restricting the ratio of
consolidated debt to total stockholder's equity to no greater than 11.0:1, under
certain conditions.
As discussed in the Company's 1998 Annual Report on Form 10-K, the Company
utilizes a variety of interest rate and currency derivative instruments in
managing its interest rate and foreign exchange exposures. The notional amount
of derivatives decreased from $107.7 billion at December 31, 1998 to $95.2
billion at June 30, 1999. The change is primarily attributable to a decrease in
financial instruments associated with mortgage servicing.
ACQUISITIONS AND MERGERS
On March 8, 1999, the Company announced it acquired a majority interest in
On:Line Finance Holdings and its subsidiaries. The acquisition will expand
GMAC's range of finance products available through dealers to automotive
customers. On:Line Finance is one of the largest independent retail used car
finance providers in the United Kingdom.
On June 8, 1999, the Company announced an agreement to acquire the asset-based
lending and factoring business of The Bank of New York (BNY) for approximately
$1.8 billion. The purchase of BNY Financial Corporation (BNYFC) will enable GMAC
to expand its existing asset-based lending internationally and enter the
factoring business in a substantial way. BNYFC is one of the leading asset-based
lending and factoring operations in North America and the United Kingdom. The
transaction was completed on July 22, 1999. The name of the new GMAC subsidiary
is GMAC Commercial Credit LLC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
ACQUISITIONS AND MERGERS (CONTINUED)
On June 11, 1999, the Company announced it has agreed to terms for the purchase
of Arriva Automotive Solutions Limited (AAS), a leading contract leasing
provider in the United Kingdom. The transaction, including debt refinancing, is
valued at (pound)483.5 million (approximately $774.7 million at the June 30,
1999 exchange rate), and was completed on July 30, 1999.
YEAR 2000
Many computerized systems and microprocessors that are used by GMAC have the
potential for operational problems if they lack the ability to handle the
transition to the Year 2000. This issue has the potential to cause disruption to
the business of GMAC and its customers. In its capacity as a wholly owned
subsidiary of GM, GMAC is part of GM's comprehensive worldwide Year 2000
program. As part of that program, GMAC has been identifying and remediating
potential Year 2000 problems in its business information systems and other
equipment in its operations. GMAC has also been communicating with its service
and technology providers, landlords, dealers and other third parties in order to
assess and reduce the risk that GMAC's operations could be adversely affected by
the failure of these third parties to adequately address the Year 2000 issue.
GMAC's Year 2000 program teams are responsible for remediating all of GMAC's
information technology. Information technology principally consists of business
information systems (such as mainframe and other shared computers and associated
business application software) and infrastructure (such as personal computers,
operating systems, networks and devices like switches and routers). GMAC's Year
2000 program includes assessment and remediation services provided by Electronic
Data Systems Corporation (EDS) pursuant to a Master Service Agreement with GM.
The Year 2000 program is being implemented in seven phases, some of which
are being conducted concurrently:
INVENTORY -- identification and validation of an inventory of all systems
and infrastructure components that could be affected by the Year 2000
issue. The inventory phase commenced in earnest in 1996 and is complete.
It has identified approximately 2,000 business information
systems/applications.
ASSESSMENT -- initial testing, code scanning, and technology provider
contacts to determine whether remediation was needed and to develop a
remediation plan, if applicable. The assessment of business information
systems is complete and included a determination that approximately one
half of such systems should be regarded as critical based on criteria such
as the potential for business disruption. The assessment of infrastructure
is also complete.
REMEDIATION -- design and execution of a remediation plan, followed by
testing for adherence to the design. GMAC has substantially completed the
remediation of its critical systems, with the few remaining systems
expected to be completed during the third quarter of 1999. In the normal
course of its business plans, GMAC is also incrementally implementing
enterprise software and other common applications that will replace and
thereby eliminate the need to remediate certain existing systems.
Implementation of this software, which continued throughout 1998 and into
1999, is now complete.
SYSTEM TESTING -- testing of remediated items to ensure that they function
normally after being placed back in their original operating environment.
This phase is closely related to the remediation phase and follows
essentially the same schedule.
IMPLEMENTATION -- return of items to normal operation after satisfactory
performance in system testing. This phase follows essentially the same
schedule as remediation and system testing.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONTINUED)
READINESS TESTING -- planning for, and testing of, integrated systems in a
Year 2000 ready environment, including ongoing auditing and follow-up.
Readiness testing is substantially complete, with a few exceptions
scheduled to be completed during the third quarter of 1999. In addition
to GMAC readiness testing, a third party Independent Validation and
Verification (IV&V) process is being used to examine remediated code
to identify potential oversights or errors in select mission-critical
systems. While the IV&V process is ongoing, the results to date have
validated the success of GMAC's testing program.
CONTINGENCY PLANNING -- development and execution of plans that focus on
specific areas of significant concern and concentration of resources to
address them. GMAC currently believes that the most reasonably likely
worst case scenario is that there will be some localized disruptions of
systems that will affect individual business processes, facilities or
service and technology providers for a short time, rather than systematic
or long-term problems affecting our business operations as a whole. GMAC
contingency planning has identified systems or other aspects of its
business that it believes are potentially vulnerable to Year 2000
problems. GMAC contingency planning has also addressed those business
operations in which a localized disruption could have the potential for
causing a wider problem by interrupting the flow of data or services to
other operations. Because there is an uncertainty as to which activities
may be affected, and the exact nature of the problems that may arise,
contingency planning has focused on minimizing the scope and duration of
any disruption by developing comprehensive, detailed plans. These reactive
plans permit a flexible real-time response to specific problems as they
may arise at individual locations around the world. Some of the actions
that are being undertaken include the establishment of Year 2000 Command
Centers and development of detailed manual procedures. GMAC built upon its
existing Disaster Recovery and Business Resumption Plans and Processes,
while expanding its scope to encompass Year 2000 concerns. While these
plans are now largely complete, there will be testing and refinement of
the plans in the second half of 1999. As noted above, GMAC's contingency
planning includes the deployment of a network of Year 2000 Command
Centers. The GMAC Corporate Command Center will have redundant systems,
allowing for connectivity with other GMAC Command Centers being
established around the world as well as with the GM Corporate Command
Center. Detailed plans and procedures are currently being developed and
will be evaluated during the fourth quarter of 1999. The center will have
coverage by appropriate personnel twenty-four hours a day, seven days a
week beginning the week of December 27, 1999. Command Center operations
will continue as long as conditions warrant.
GMAC's communication with its service and technology providers was a focused
element of the assessment phase described above. GMAC is a leading participant
in the Financial Services Sub-Group of the Automotive Industry Action Group
(AIAG), an automotive industry trade association, which distributed Year 2000
compliance questionnaires to many critical financial service providers that
supply GMAC with services throughout the world. In addition, GMAC initiated its
own contact and review of these providers and other non-financial service
providers considered to be critical to GMAC's operations, including follow-up to
the AIAG questionnaire. GMAC has also initiated contact with the landlords or
property managers of its facilities throughout the world, to assess the ongoing
functionality of the space it rents from others. Assessments of all these
service providers are now largely complete, with appropriate actions being taken
as deemed necessary, including the development of reactive contingency plans to
minimize business disruption related to these uncertainties.
GMAC also has a program to work with some of its largest customers, primarily
automotive dealers and lease/rental companies, on their Year 2000 readiness.
This program, developed in conjunction with GM, includes distributing materials
that assist them in designing and executing their own assessment and remediation
efforts.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONTINUED)
GMAC's direct Year 2000 program cost is being expensed as incurred, with the
exception of capitalizable replacement hardware. Total incremental spending by
GMAC is not expected to be material to the Corporation's operations, liquidity
or capital resources.
In addition to the work for which GMAC has direct financial responsibility, EDS
is providing Year 2000-related services to GMAC, as required under the Master
Service Agreement. These services are being provided by EDS as part of normal
fixed price services and other ongoing payments to EDS.
GMAC's current forecast of total direct expenditures, including the value of
services performed by EDS attributable to GM's Year 2000 program, approximates
$90 million. This amount includes the following:
- - An estimated $75 million in direct GMAC expenditures. This estimate
includes a $12 million payment from GMAC to EDS (part of GM's overall
additional payment to EDS of approximately $62 million) at the end of the
first quarter of 2000, if systems remediated by EDS under the Master
Service Agreement do not cause a significant business disruption that
results in material financial loss to GM due to the millennium change; and,
- - An estimated $15 million representing the value of Year 2000 services that
EDS is providing to GMAC as part of normal fixed price services and other
ongoing payments to EDS under the Sector Service Agreement between GMAC and
EDS, as well as the Master Service Agreement between GM and EDS.
Of the total estimated $75 million in direct expense, GMAC incurred
approximately $35 million of Year 2000 expense through 1998, and an additional
$10 million during the first half of 1999.
In the normal course of its strategic business plans, GMAC and its subsidiaries
may, from time to time, acquire other businesses. Such acquisitions occurred
throughout 1998 and 1999. Year 2000 matters are routinely assessed as part of
the due diligence review prior to conclusion of the acquisition. Related costs
incurred after the acquisition, if any, are the responsibility of GMAC and, as
such, are included in the cost estimate data provided above. Year 2000 costs
related to these acquisitions were generally considered during the negotiations
and, in some instances, reflected in the final purchase price. These costs do
not represent a material portion of the total corporate expense. In addition,
the previously existing Year 2000 programs of the acquired companies are being
incorporated into the GMAC program outlined above, to accelerate the timelines
and ensure conformance to GMAC's Year 2000 program standards.
GMAC's Year 2000 program costs do not include information technology projects
that have been delayed due to Year 2000, which are estimated to be approximately
$20 million, or information technology projects that have been accelerated due
to Year 2000, which are estimated to be less than $5 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONCLUDED)
In view of the foregoing, GMAC does not currently anticipate that it will
experience a significant disruption of its business as a result of the Year 2000
issue. However, there is still uncertainty about the broader scope of the Year
2000 issue as it may affect GMAC and third parties that are critical to GMAC's
operations. For example, lack of readiness by electrical and water utilities,
financial institutions, governmental agencies or other providers of general
infrastructure could, in some geographic areas, pose significant impediments to
GMAC's ability to carry on its normal operations in the area or areas so
affected. In the event that GMAC is unable to complete its remedial actions as
described above and is unable to implement adequate contingency plans in the
event that problems are encountered, there could be a material adverse effect on
GMAC's business, results of operations or financial condition.
Statements made herein regarding the implementation of various phases of GMAC's
Year 2000 program, the costs expected to be associated with that program and the
results that GMAC expects to achieve constitute forward-looking information. As
noted above, there are many uncertainties involved in the Year 2000 issue,
including the extent to which GMAC will be able to adequately provide for
contingencies that may arise as well as the broader scope of the Year 2000 issue
as it may affect third parties that are not controlled by GMAC. Accordingly, the
costs and results of GMAC's Year 2000 program and the extent of any impact on
GMAC's operations could vary materially from those stated herein.
EURO CONVERSION
On January 1, 1999, eleven of fifteen member countries of the European Monetary
Union established fixed conversion rates between their existing currencies and
adopted the Euro as their new common currency. The Euro trades on currency
exchanges and the legacy currencies remain legal tender in the participating
countries for a transition period until January 1, 2002. Beginning on January 1,
2002, Euro denominated bills and coins will be issued and legacy currencies will
be withdrawn from circulation.
The Company has established plans to assess and address the potential impact to
GMAC that may result from the Euro conversion. These issues include, but are not
limited to: 1) the technical challenges to adapt information systems to
accommodate Euro transactions; 2) the competitive impact of cross-border price
transparency; 3) the impact on currency exchange rate risks; 4) the impact on
existing contracts; and 5) tax and accounting implications. The Company expects
that the Euro conversion will not have a material adverse impact on its
financial condition or results of operations.
In those countries that have adopted the Euro currency and in which GMAC has a
presence, the Company offers financial services to dealers and consumers in both
the local currency and the Euro.
ACCOUNTING STANDARDS
In October 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 134, Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage Loans
Held for Sale by a Mortgage Banking Enterprise, effective for the first fiscal
quarter beginning after December 15, 1998. The new standard requires that after
the securitization of mortgage loans held for sale, an entity engaged in
mortgage banking activities classify the resulting mortgage-backed security or
other retained interests based on its ability and intent to sell or hold those
investments. The Company adopted this accounting standard in the first quarter
of 1999, as required. The effect of adopting this new accounting standard did
not have a material impact on the Company's consolidated financial statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONCLUDED)
ACCOUNTING STANDARDS (CONCLUDED)
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, effective for fiscal years beginning after
June 15, 1999. In the second quarter of 1999, the FASB delayed implementation of
SFAS No. 133 until fiscal years beginning on or after June 15, 2000. The new
standard requires that all companies record derivatives on the balance sheet as
assets or liabilities, measured at fair value. Gains or losses resulting from
changes in the values of those derivatives would be accounted for depending on
the use of the derivative and whether it qualifies for hedge accounting.
Management is currently assessing the impact of SFAS No. 133 on the consolidated
financial statements of the Company. The Company will adopt this accounting
standard on January 1, 2001, as required.
In the first quarter of 1998, the American Institute of Certified Public
Accountants' Accounting Standards Executive Committee issued Statement of
Position (SOP) 98-1, Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use. SOP 98-1 provides guidance on the capitalization of
software for internal use. GMAC adopted SOP 98-1 on January 1, 1999, as
required. The effect of adopting this SOP was not material to the Company's
consolidated financial statements.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company did not become a party to any material pending legal proceedings
during the second quarter ended June 30, 1999, or prior to the filing of this
report.
ITEM 5. OTHER INFORMATION
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended
June 30,
----------------------------
1999 1998
---- ----
1.41 1.36
The ratio of earnings to fixed charges has been computed by dividing earnings
before income taxes and fixed charges by the fixed charges. This ratio includes
the earnings and fixed charges of the Company and its consolidated subsidiaries.
Fixed charges consist of interest, debt discount and expense and the portion of
rentals for real and personal properties in an amount deemed to be
representative of the interest factor.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
20 General Motors Acceptance Corporation and Subsidiaries
Consolidated Financial Statements for the Second
Quarter and Six Months Ended June 30, 1999.
(b) REPORTS ON FORM 8-K.
The Company filed a report on Form 8-K on June 8, 1999, reporting
matters under Item 5, Other Events.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENERAL MOTORS ACCEPTANCE CORPORATION
(Registrant)
S/_______________________________________
Dated: AUGUST 10, 1999 William F. Muir, Executive Vice
--------------- President and Principal Financial Officer
S/_______________________________________
Dated: AUGUST 10, 1999 Gerald E. Gross, Comptroller and
--------------- Principal Accounting Officer
Exhibit 20
Page 1 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEET
June 30, Dec. 31, June 30,
1999 1998 1998
--------------- --------------- ----------------
ASSETS (in millions of dollars)
- ------
Cash and cash equivalents $ 2,684.2 $ $ 873.0
618.1
--------------- --------------- ----------------
EARNING ASSETS
Investments in securities 8,362.6 8,681.9 7,855.4
Finance receivables, net (Note 1) 74,865.7 71,101.2 60,554.5
Investment in operating leases, net 28,385.3 27,925.8 27,723.5
Notes receivable from General Motors Corporation 2,992.5 2,270.5 2,718.5
Real estate mortgages - held for sale 5,444.2 7,969.7 3,938.0
- held for investment 1,536.7 1,296.7 793.0
- lending receivables 1,448.6 2,063.6 1,825.8
Due and deferred from receivable sales, net 110.1 111.5 240.0
Other 3,908.4 3,683.7 2,450.3
--------------- --------------- ----------------
Total earning assets 127,054.1 125,104.6 108,099.0
--------------- --------------- ----------------
Nonearning assets 6,259.3 5,694.8 5,366.4
--------------- --------------- ----------------
TOTAL ASSETS $ 135,997.6 $ 131,417.5 $ 114,338.4
=============== =============== ================
LIABILITIES AND STOCKHOLDER'S EQUITY
Notes, loans and debentures payable within one year (Note 2) $ 56,809.4 $ 60,816.7 $ 52,241.5
--------------- --------------- ----------------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and affiliated companies 521.8 929.6 1,738.6
Interest 1,418.5 1,264.2 1,225.1
Insurance losses and loss expenses 1,989.0 2,062.7 2,044.1
Unearned insurance premiums 1,932.3 1,855.6 1,858.0
Deferred income taxes 3,204.8 2,842.9 2,656.4
United States and foreign income and other taxes payable 469.0 570.7 155.7
Other postretirement benefits 695.7 685.3 676.5
Other 6,268.0 5,241.7 5,090.4
--------------- --------------- ----------------
Total accounts payable and other liabilities 16,499.1 15,452.7 15,444.8
--------------- --------------- ----------------
Notes, loans and debentures payable after one year (Note 3) 52,315.3 45,356.5 37,322.3
--------------- --------------- ----------------
Common stock, $.10 par value (authorized 10,000
shares, outstanding 10 shares) and paid-in capital 2,200.0 2,200.0 2,200.0
Net income retained for use in the business 8,060.0 7,351.6 6,890.3
Net unrealized gains on securities 335.6 381.5 408.2
Unrealized accumulated foreign currency translation adjustment (221.8) (141.5) (168.7)
--------------- --------------- ----------------
Accumulated other comprehensive income 113.8 240.0 239.5
---------------
--------------- ----------------
Total stockholder's equity 10,373.8 9,791.6 9,329.8
--------------- --------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 135,997.6 $ 131,417.5 $ 114,338.4
=============== =============== ================
Certain amounts for 1998 have been reclassified to conform with 1999
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
Exhibit 20
Page 2 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF INCOME,
NET INCOME RETAINED FOR USE IN THE BUSINESS AND
COMPREHENSIVE INCOME
Period Ended June 30,
-----------------------------------------------------------------
Second Quarter Six Months
------------------------------- --------------------------------
1999 1998 1999 1998
---------------- -------------- --------------- --------------
(in millions of dollars)
FINANCING REVENUE
Retail and lease financing $ 1,069.2 $ 950.3 $ 2,075.1 $ 1,852.3
Operating leases 1,796.8 1,808.9 3,592.3 3,593.6
Wholesale and term loans 495.2 445.5 970.9 865.6
---------------- -------------- --------------- --------------
Total automotive financing revenue 3,361.2 3,204.7 6,638.3 6,311.5
Interest and discount 1,538.0 1,454.7 3,050.9 2,839.2
Depreciation on operating leases 1,161.7 1,160.8 2,350.2 2,339.1
---------------- -------------- --------------- --------------
Net automotive financing revenue 661.5 589.2 1,237.2 1,133.2
Insurance premiums earned 442.2 479.8 888.8 950.8
Mortgage revenue 730.3 500.5 1,458.5 917.9
Other income 365.4 336.9 739.5 667.7
---------------- -------------- --------------- --------------
Net financing revenue and other 2,199.4 1,906.4 4,324.0 3,669.6
---------------- -------------- --------------- --------------
EXPENSES
Salaries and benefits 398.4 304.2 794.1 610.6
Other operating expenses 712.9 565.3 1,334.1 1,061.5
Insurance losses and loss adjustment expenses 338.1 387.6 685.3 726.2
Provision for credit losses 110.4 121.5 229.7 228.7
---------------- -------------- --------------- --------------
Total expenses 1,559.8 1,378.6 3,043.2 2,627.0
---------------- -------------- --------------- --------------
Income before income taxes 639.6 527.8 1,280.8 1,042.6
United States, foreign and other income taxes 248.5 163.1 497.4 328.6
---------------- -------------- --------------- --------------
NET INCOME 391.1 364.7 783.4 714.0
Net income retained for use in the business
at beginning of the period 7,668.9 6,600.6 7,351.6 6,326.3
---------------- -------------- --------------- --------------
Total 8,060.0 6,965.3 8,135.0 7,040.3
Cash dividends -- 75.0 75.0 150.0
---------------- -------------- --------------- --------------
NET INCOME RETAINED FOR USE IN THE BUSINESS
AT END OF THE PERIOD $ 8,060.0 $ 6,890.3 $ 8,060.0 $ 6,890.3
================ ============== =============== ==============
TOTAL COMPREHENSIVE INCOME $ 359.9 $ 341.9 $ 657.2 $ 723.7
================ ============== =============== ==============
Exhibit 20
Page 3 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
----------------------------
------------- -------------
1999 1998
------------- -------------
(in millions of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 783.4 $ 714.0
Depreciation 2,407.5 2,373.8
Provision for credit losses 229.7 228.7
Gains on sales of finance receivables (54.9) (31.0)
Gains on sales of available for sale investment securities (99.1) (86.5)
Mortgage loans - originations/purchases (26,532.1) (25,193.8)
- proceeds on sale 29,537.0 26,375.3
Mortgage related securities held for trading
- acquisitions (740.1) (1,124.0)
- liquidations 1,156.4 654.0
Changes in the following items:
Due to General Motors Corporation and affiliated companies (390.6) 208.2
Taxes payable and deferred 325.1 (100.4)
Interest payable 153.7 126.3
Other assets (279.0) (384.7)
Other liabilities 716.9 626.2
Other 179.1 130.1
------------- -------------
Net cash provided by operating activities 7,393.0 4,516.2
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables - acquisitions (90,201.4) (78,432.3)
- liquidations 67,510.1 58,935.5
Notes receivable from General Motors Corporation (677.8) (2,175.9)
Operating leases - acquisitions (8,200.9) (9,337.8)
- liquidations 5,144.5 4,876.9
Investments in available for sale securities:
- acquisitions (10,143.8) (8,106.2)
- maturities 8,791.2 6,755.9
- proceeds from sales 1,406.3 2,016.2
Investments in held to maturity securities:
- acquisitions (108.0) -
- maturities - -
Mortgage servicing rights - acquisitions (661.5) (741.9)
- liquidations 3.8 7.2
Proceeds from sales of receivables - wholesale 16,194.9 15,840.7
- retail 2,487.8 1,515.6
Due and deferred from receivable sales (0.8) 446.9
Acquisitions of net assets of businesses, less cash acquired (126.0) (15.3)
Other 381.4 273.3
------------- -------------
Net cash used in investing activities (8,200.2) (8,141.2)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 15,247.6 8,370.7
Principal payments on long-term debt (7,230.0) (6,511.2)
Change in short-term debt, net (5,072.2) 1,197.6
Notes payable to General Motors Corporation - 832.0
Dividends paid (75.0) (150.0)
------------- -------------
Net cash provided by financing activities 2,870.4 3,739.1
------------- -------------
Effect of exchange rate changes on cash and cash equivalents 2.9 (0.3)
------------- -------------
Net increase in cash and cash equivalents 2,066.1 113.8
Cash and cash equivalents at the beginning of the period 618.1 759.2
============= =============
Cash and cash equivalents at the end of the period $ 2,684.2 $ 873.0
============= =============
SUPPLEMENTARY CASH FLOWS INFORMATION
Interest paid $ 2,814.9 $ 2,671.9
Income taxes paid 151.1 322.2
Certain amounts for 1998 have been reclassified to conform with 1999
classifications.
Reference should be made to the Notes to Consolidated Financial Statements
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (CONCLUDED)
SUPPLEMENTARY CASH FLOWS INFORMATION (CONCLUDED)
During the six months ended June 30, 1999 and 1998, assets acquired, liabilities
assumed, and consideration paid for the acquisitions of businesses were as
follows:
Six Months Ended
June 30,
--------------------------
1999 1998
------------ ------------
(in millions of dollars)
Fair value of assets acquired $ 730.6 $ 19.1
Cash acquired (14.6) --
Liabilities assumed (590.0) (3.8)
============ ============
Net acquisitions $ 126.0 $ 15.3
============ ============
Exhibit 20
Page 4 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. FINANCE RECEIVABLES
The composition of finance receivables outstanding is summarized as follows:
June 30, Dec. 31, June 30,
1999 1998 1998
---------------- --------------- ---------------
(in millions of dollars)
United States
Retail $ 35,279.3 $ 33,320.9 $ 30,651.5
Wholesale 17,334.3 17,721.7 12,102.8
Leasing and lease financing 672.3 631.8 651.8
Other 6,939.3 4,990.4 3,829.5
---------------- --------------- ---------------
Total United States 60,225.2 56,664.8 47,235.6
---------------- --------------- ---------------
Europe
Retail 5,297.7 5,282.0 4,990.0
Wholesale 3,879.9 4,422.5 3,414.6
Leasing and lease financing 447.0 483.3 481.8
Other 424.3 473.6 340.2
---------------- --------------- ---------------
Total Europe 10,048.9 10,661.4 9,226.6
---------------- --------------- ---------------
Canada
Retail 2,104.8 1,747.2 1,514.6
Wholesale 2,602.5 1,935.7 2,490.3
Leasing and lease financing 830.2 806.0 941.9
Other 114.6 119.1 83.5
---------------- --------------- ---------------
Total Canada 5,652.1 4,608.0 5,030.3
---------------- --------------- ---------------
Other Countries
Retail 2,431.2 2,308.2 2,191.9
Wholesale 933.2 1,017.7 1,013.7
Leasing and lease financing 678.5 583.3 512.6
Other 176.6 258.2 138.4
---------------- --------------- ---------------
Total Other Countries 4,219.5 4,167.4 3,856.6
---------------- --------------- ---------------
Total finance receivables 80,145.7 76,101.6 65,349.1
---------------- --------------- ---------------
Deductions
Unearned income 4,189.7 3,979.8 3,844.6
Allowance for credit losses 1,090.3 1,020.6 950.0
---------------- --------------- ---------------
Total deductions 5,280.0 5,000.4 4,794.6
---------------- --------------- ---------------
Finance receivables, net $ 74,865.7 $ 71,101.2 $ 60,554.5
================ =============== ===============
Exhibit 20
Page 5 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2. NOTES, LOANS AND DEBENTURES PAYABLE WITHIN ONE YEAR
June 30, Dec. 31, June 30,
1999 1998 1998
---------------- --------------- ---------------
(in millions of dollars)
Short-term notes
Commercial paper $ 29,462.8 $ 32,138.8 $ 27,997.8
Master notes 582.6 652.2 377.5
Demand notes 6,028.1 6,445.5 5,233.4
Other 1,218.7 1,437.2 1,222.2
---------------- --------------- ---------------
Total principal amount 37,292.2 40,673.7 34,830.9
Unamortized discount (163.9) (127.5) (154.3)
---------------- --------------- ---------------
Total 37,128.3 40,546.2 34,676.6
---------------- --------------- ---------------
Bank loans and overdrafts
United States 2,508.6 1,669.9 1,811.4
Other countries 5,191.2 6,543.1 5,495.2
---------------- --------------- ---------------
Total 7,699.8 8,213.0 7,306.6
---------------- --------------- ---------------
Other notes, loans and debentures
payable within one year
United States 10,635.9 10,518.6 8,899.4
Other countries 1,345.4 1,538.9 1,358.9
---------------- --------------- ---------------
Total 11,981.3 12,057.5 10,258.3
---------------- --------------- ---------------
Total payable within one year $ 56,809.4 $ 60,816.7 $ 52,241.5
================ =============== ===============
Exhibit 20
Page 6 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. NOTES, LOANS AND DEBENTURES PAYABLE AFTER ONE YEAR
Weighted Average
interest rates at June 30, Dec. 31, June 30,
June 30, 1999 1999 1998 1998
------------------- ---------------- ---------------- ----------------
United States (in millions of dollars)
1999 $ - $ - $ 2,802.1
2000 5.4% 4,263.7 10,195.4 6,214.9
2001 6.0% 10,132.2 7,795.8 5,748.5
2002 5.8% 8,994.0 7,039.2 6,616.0
2003 5.8% 7,248.3 6,929.3 4,692.8
2004 6.0% 3,887.8 997.2 413.8
2005 - 2009 5.8% 5,906.9 2,673.9 2,545.9
2010 - 2014 8.2% 2,359.6 1,600.0 1,274.5
2015 - 2019 10.3% 373.8 373.8 373.8
2020 - 2049 4.9% 75.0 75.0 75.0
---------------- ---------------- ----------------
Total United States 43,241.3 37,679.6 30,757.3
Other countries
1999 - 2008 5.3% 9,724.9 8,347.6 7,248.5
---------------- ---------------- ----------------
Total notes, loans and debentures 52,966.2 46,027.2 38,005.8
Unamortized discount (650.9) (670.7) (683.5)
---------------- ---------------- ----------------
Total payable after one year $ 52,315.3 $ 45,356.5 $ 37,322.3
================ ================ ================
.
Exhibit 20
Page 7 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. SEGMENT INFORMATION
GMAC's reportable operating segments include GMAC North American Financing
Operations (GMAC-NAO), GMAC International Financing Operations (GMAC-IO),
Insurance Operations (GMACI) and Mortgage Operations (GMACMG). GMAC-NAO consists
of the United States and Canada, and GMAC-IO consists of all other countries and
Puerto Rico.
Financial results of GMAC's operating segments for the quarters and six months
ended June 30, 1999 and 1998 are summarized below:
(in millions of dollars)
Eliminations/
GMAC-NAO GMAC-IO GMACI GMACMG Reclassifications Total
-------------- -------------- ------------ ------------- ------------------ ---------------
For the Quarters Ended:
JUNE 30, 1999
Net automotive
financing revenue $ 417.1 $ 228.5 $ 0.0 $ 0.0 $ 15.9 $ 661.5
Other revenue 376.9 14.0 587.7 579.8 (20.5) 1,537.9
Net income 224.4 50.1 50.2 66.4 0.0 391.1
JUNE 30, 1998
Net automotive
financing revenue $ 381.8 $ 205.6 $ 0.0 $ 0.0 $ 1.8 $ 589.2
Other revenue 378.1 6.2 598.0 339.6 (4.7) 1,317.2
Net income 232.4 55.6 53.9 22.8 0.0 364.7
For the Six Months Ended:
JUNE 30, 1999
Net automotive
financing revenue $ 753.5 $ 449.1 $ 0.0 $ 0.0 $ 34.6 $ 1,237.2
Other revenue 796.4 25.2 1,170.9 1,137.8 (43.5) 3,086.8
Net income 404.8 99.3 115.1 164.2 0.0 783.4
JUNE 30, 1998
Net automotive
financing revenue $ 741.6 $ 408.6 $ 0.0 $ 0.0 $ (17.0) $ 1,133.2
Other revenue 707.6 13.1 1,211.7 592.7 11.3 2,536.4
Net income 422.6 112.0 133.6 45.8 0.0 714.0