EXHIBIT 99.1
DETROIT - General Motors Corp. (NYSE: GM) today reported a 2005 calendar-year
loss, excluding special items, of $3.4 billion, or $5.99 per share, compared
with net income of $3.6 billion, or $6.37 per share, in 2004.
Including special items, GM reported a loss of $8.6 billion, or $15.13 per share
for 2005, compared to net income of $2.8 billion, or $4.92 per share in the
year-ago period. Revenue was $192.6 billion in 2005, compared to $193.5 billion
in 2004.
"2005 was one of the most difficult years in GM's history, driven by poor
performance in North America," GM Chairman and Chief Executive Officer Rick
Wagoner said. "It was a year in which two significant fundamental weaknesses in
our North American operations were fully exposed -- our huge legacy cost burden
and our inability to adjust structural costs in line with falling revenue. Our
results were also dramatically and adversely affected by charges for
restructuring and matters associated with Delphi Corp.'s Chapter 11 filing.
"In order to improve financial results in 2006 and 2007, we are moving quickly
to implement several important actions that will address these weaknesses in
North America. And, we have a good line of sight on the steps we need to take to
further reduce structural costs on a global basis that will position GM for
long-term success," Wagoner added.
Fourth Quarter Results
GM reported a loss of $1.2 billion, or $2.09 per diluted share in the fourth
quarter of 2005, excluding special items. These results compare to adjusted
earnings of $726 million, or $1.28 per share in the year ago period. Revenue was
$51.2 billion compared to $51.4 billion a year ago.
Including special items, GM reported a loss of $4.8 billion, or $8.45 per
diluted share in the fourth quarter of 2005, compared to a loss of $99 million,
or $0.18 per share in the fourth quarter of 2004.
The reported results for the fourth quarter of 2005 include special items
totaling $3.6 billion after tax, or $6.36 per diluted share. These items are
primarily attributable to an after-tax restructuring charge of $1.3 billion at
GM North America and a preliminary after-tax charge of $2.3 billion associated
with the UAW/Delphi benefit guarantee. Additional details on the special items
are included below and in the "Highlights" section of the press release.
GM's results for the fourth quarter of 2005 and the calendar year are
preliminary and may be revised prior to the filing of GM's 2005 annual report on
Form 10-K in mid-March, depending on changes, if any, to the Delphi related
accrual and completion of the previously disclosed supplier credits study.
GM financial results described throughout the remainder of this release exclude
special items unless otherwise noted (see "Highlights").
GM Automotive Operations
GM's automotive operations reported an adjusted loss of $5.3 billion in 2005,
compared to adjusted earnings of $1.2 billion in 2004. The decline was
principally driven by large losses in North America, partially offset by
improved results in Europe and in the Latin America, Africa and Middle East
region.
In the fourth quarter of 2005 GM's automotive operations reported an adjusted
loss of $1.5 billion compared to adjusted earnings of $268 million in the
year-ago period.
GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in
GM's history, on the strength of increased sales in three of GM's four business
regions and all-time sales records in our Asia Pacific and Latin America, Africa
and Middle East regions. Vehicle sales in the Asia Pacific region were up 20
percent, the Latin America, Africa and Middle East region increased 19 percent,
and Europe posted a 1.3 percent gain in one of the most competitive markets in
the world. Unit sales were down 3.1 percent in North America in 2005. As a
result, GM's share of the global automotive market was 14.2 percent in 2005,
down from 14.4 percent in 2004.
GM North America (GMNA) reported an adjusted loss of $5.6 billion in 2005,
compared to adjusted earnings of $1.1 billion in 2004, reflecting a weaker sales
mix, lower production volumes stemming from a significant reduction in dealer
inventories and lower market share, increased material costs including those for
product improvements, continuing high health-care costs and increased spending
on marketing and advertising.
1
In the fourth quarter of 2005, GMNA reported an adjusted loss of $1.5 billion,
compared to adjusted earnings of $449 million in the year-ago period. The loss
in the fourth-quarter of 2005 was primarily attributable to lower production of
full-sized sport utility vehicles due to the start-up of the all-new next
generation vehicles in this category, increased health-care costs, and higher
marketing and advertising spending. In addition, there were favorable
non-recurring items in the year-ago period.
"GM's top priority is to restore our North American operations to profitability
and positive cash flow as quickly as possible," Wagoner said. "In 2005, we laid
out a comprehensive and integrated strategy to address the structural issues
that impede our competitiveness and profitability, and we are focused on rapidly
executing all aspects of the turnaround plan."
In support of growing revenues, GM continued to invest heavily in revitalizing
its product portfolio despite recent financial challenges, with global capital
spending up about $1 billion in 2005. Ongoing or upcoming product launches
include new full-sized sport utility vehicles and pick-up trucks, additional
crossover vehicles, and a significantly expanded line-up at Saturn.
In addition, GM has revitalized its marketing strategy in North America by
moving to simple, compelling pricing that is expected to result in lower
spending on incentives, clearer focus and differentiation of GM's vehicle
brands, and enhanced focus on GM's highly competitive new cars and trucks.
"There is a cost for implementing these revenue initiatives, but we know that in
addition to addressing our cost situation, we need great cars and trucks and
strong brands to improve our revenue and our bottom line," Wagoner said.
GM expects to reduce its North American structural costs by $6 billion on a
running-rate basis by the end of 2006, with more than $4 billion of the
reduction coming in calendar year 2006, and to reduce its net material costs by
$1 billion. Key elements of the structural cost reduction plan include the
health-care agreement with the United Auto Workers union, which accounts for
about $3 billion of the annual expense savings (excluding the impact of payments
to the defined contribution Voluntary Employees' Beneficiary Association Trust);
the capacity utilization initiatives and other manufacturing initiatives, which
total about $1.5 billion; and additional productivity and cost efficiencies in
other areas of the business especially engineering, advertising, and salaried
employment levels and benefits.
"The historic agreement we signed with the UAW in October, and the capacity
reduction announcements we made in November that give rise to the North American
restructuring charge, are important and significant steps on the road to
recovery," said Wagoner. "But it's clear that we need to do more, and so we are
focused on that with our recently announced objective to reduce global
structural costs to 25 percent of automotive revenue by 2010, from the current
level of approximately 34 percent."
Wagoner said this structural cost target is designed to create a competitive
advantage for GM in an intensely competitive environment of excess industry
capacity, increasing regulatory costs, and more product entries.
"We will be very focused in how we accomplish this," Wagoner said. "For example,
we need to continue to lower our overall manufacturing costs, reduce our huge
legacy cost disadvantage burden, and improve our sourcing footprint - all areas
where we have a cost disadvantage today against the global benchmarks. At the
same time, while we continue to drive productivity improvement in product
development, research and development, and marketing, it's important that we
maintain competitive spending levels in these revenue-driving aspects of our
business."
In connection with the North American manufacturing capacity actions announced
in November, GM recorded an after-tax charge of $1.3 billion in the fourth
quarter of 2005 as a special item. This charge includes approximately $800
million associated with the employees at the facilities where GM plans to cease
production, and about $500 million for the non-cash write-down of property,
plants and equipment.
The employee costs principally represent cash payments that will be made to
affected employees during the current labor agreement, which expires in
September 2007, attributable to the JOBS bank provisions of that agreement. GM
is currently in discussions with the UAW on an accelerated attrition program,
and the outcome of these discussions could affect the timing and amount of
subsequent charges.
GM Europe (GME) cut its losses nearly in half in 2005 to an adjusted loss of
$375 million from an adjusted loss of $742 million in 2004, as continued
improvement in both structural and material costs and higher production volumes
were partially offset by negative pricing. GME reported an adjusted loss of $159
million in the fourth quarter of 2005, an improvement from the adjusted loss of
$345 million reported in the year-ago quarter.
2
"Our European turnaround plan remains on track and we expect to see more
progress in 2006," Wagoner said. "In addition to the continued implementation of
our significant cost reduction initiatives, we expect to benefit again this year
from the introduction of new products such as the Opel Corsa. And, we'll
continue to focus on the rollout of our multi-brand strategy in Europe, and
particularly efforts to expand the Chevrolet brand."
GM Asia Pacific (GMAP) reported adjusted earnings of $524 million in 2005,
compared to $729 million in 2004, reflecting unfavorable volume and shifting
sales mix at GM's Holden unit, and higher costs associated with GM's growth
initiatives in China. For the fourth quarter of 2005, GMAP reported adjusted
earnings of $112 million, down from $117 million in the fourth quarter of 2004.
"The fastest growing automotive region on the globe, Asia Pacific, continues to
be a positive story for GM. We achieved a number of important milestones in
2005," Wagoner said. "For the first time in our history, we sold more than 1
million vehicles in Asia Pacific, increasing our market share there to 5.8
percent. And importantly, in China, now the second-largest market behind the
United States, GM became the leading foreign brand."
GM Latin America/Africa/Middle East (GMLAAM) reported adjusted earnings of $124
million in 2005, up from $85 million in 2004. For the fourth quarter of 2005
GMLAAM reported adjusted earnings of $20 million, compared to $47 million in the
year-ago quarter, primarily driven by unfavorable foreign exchange rates in
Brazil.
"GM continues to set sales and market share records in the Latin
America/Africa/Middle East region," Wagoner said. "In 2005, GM sold a record
881,000 vehicles in the region, marking our eighth consecutive year of sales and
market share leadership. Our focus for 2006 is to continue to leverage our
position in South Africa, accelerate our turnaround program in Brazil and build
on our strong performance in the Middle East and other Andean regions."
GMAC
General Motors Acceptance Corporation (GMAC) earned $2.8 billion in 2005, down
from record earnings of $2.9 billion in 2004. In the fourth quarter of 2005,
GMAC earned $614 million, compared to $683 million in the year-ago period.
"GMAC continued to post strong earnings in 2005 despite some very difficult
challenges," Wagoner said. "And, despite the significant impact of lower credit
ratings, GMAC continued to maintain strong liquidity."
GMAC had cash reserve balances at Dec. 31, 2005 of approximately $20 billion,
including $15.8 billion in cash and cash equivalents and $4.2 billion in
marketable securities. In 2005, GMAC paid a dividend to GM of $2.5 billion,
including $1 billion in the fourth quarter of 2005.
GMAC's financing operations reported earnings of $1.1 billion in 2005, down from
$1.5 billion in 2004. The decrease is primarily due to lower net interest
margins as a result of increased borrowing costs. The decline in net interest
margins was somewhat mitigated by lower consumer credit provisions, primarily as
a result of lower asset levels, and the impact of improved used vehicle prices
on terminating leases.
Mortgage operations earned a record $1.4 billion, up from $1.1 billion in 2004,
reflecting increases in both the residential and commercial mortgage operations.
GMAC's residential mortgage businesses benefited from increased loan production,
favorable credit experience, improved mortgage servicing results and gains on
sales of mortgages. GMAC Commercial Mortgage also experienced an increase in
earnings as compared to the prior year largely due to record loan origination
volume, higher gains on sales of loans and increases in fee and investment
income.
GMAC's insurance operations generated record net income of $417 million in 2005,
up from $329 million in 2004. The increase reflects a combination of strong
results achieved through increased premium revenue, higher capital gains and
improved investment portfolio performance.
Cash and Liquidity
Cash, marketable securities, and readily-available assets of the Voluntary
Employees' Beneficiary Association (VEBA) Trust totaled $20.5 billion at Dec.
31, 2005, up from $19.2 billion on Sept. 30, 2005. This excludes GMAC's cash
reserve balances of approximately $20 billion at Dec. 31, 2005. GM withdrew
approximately $1.2 billion from the VEBA Trust in the fourth quarter of 2005.
3
In October of 2005, GM estimated that its contingent exposure relating to the
benefit guarantees for certain former GM U.S. hourly employees who transferred
to Delphi, ranged from zero to $12 billion. GM now believes that the range is
between $3.6 billion and $12 billion with amounts closer to the low-end of the
revised range considered the company's best estimate assuming an agreement is
reached between GM, Delphi and its unions.
As a result, GM established a reserve of $3.6 billion ($2.3 billion after tax)
and this is included as a non-cash charge in the fourth quarter of 2005. The
amount of this charge may change between now and when GM files its Form 10-K
with the SEC, depending on the status of discussions between GM, Delphi and its
unions and other factors. GM is currently unable to estimate the amount of
additional charges, if any, that may arise from Delphi's Chapter 11 filing. A
consensual agreement to resolve the Delphi matter may cause GM to incur
additional costs in exchange for benefits that would accrue to GM over time.
Forward-looking Statements
In this press release and in related comments by General Motors' and General
Motors Acceptance Corporation's management, the use of the words "expect,"
"anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal,"
"project," "outlook," "priorities," "target," "intend," "evaluate," "pursue,"
"seek," "may," "would," "could," "should," "believe," "potential," "continue,"
"designed," "impact," or the negative of any of those words or similar
expressions is intended to identify forward-looking statements. All statements
in this press release and in related comments, other than statements of
historical fact, including without limitation, statements about future events
and financial performance, are forward-looking statements that involve certain
risks and uncertainties.
While these statements represent our current judgment on what the future may
hold, and we believe these judgments are reasonable, these statements are not
guarantees of any events or financial results, and GM's actual results may
differ materially due to numerous important factors that are described in GM's
most recent report on SEC Form 10-K, which may be revised or supplemented in
subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among
others, the following: the ability of GM to realize production efficiencies, to
achieve reductions in costs as a result of the turnaround restructuring and
health care cost reductions and to implement capital expenditures at levels and
times planned by management; the pace of product introductions; market
acceptance of the corporation's new products; significant changes in the
competitive environment and the effect of competition in the corporation's
markets, including on the corporation's pricing policies; our ability to
maintain adequate financing sources and an appropriate level of debt;
restrictions on GMAC's and Residential Capital Corporation (ResCap)'s ability to
pay dividends and prepay subordinated debt obligations to us; changes in the
existing, or the adoption of new, laws, regulations, policies or other
activities of governments, agencies and similar organizations where such actions
may affect the production, licensing, distribution or sale of our products, the
cost thereof or applicable tax rates; costs and risks associated with
litigation; the final results of investigations by the SEC; changes in our
accounting principles, or their application or interpretation, and our ability
to make estimates and the assumptions underlying the estimates, which could
result in an impact on earnings; changes in relations with unions and
employees/retirees and the legal interpretations of the agreements with those
unions with regard to employees/retirees; labor strikes or work stoppages at GM
or at key suppliers such as Delphi Corp.; additional credit rating downgrades;
the impact of a potential sale or other extraordinary transaction involving GMAC
on the results of GM's and GMAC's operations and liquidity; other factors
impacting financing and insurance operating segments' results of operations and
financial condition such as credit ratings, adequate access to the market,
changes in the residual value of off-lease vehicles, changes in U.S.
government-sponsored mortgage programs or disruptions in the markets in which
our mortgage subsidiaries operate, and changes in our contractual servicing
rights; shortages of and price increases for fuel; and changes in economic
conditions, commodity prices, currency exchange rates or political stability in
the markets in which we operate.
In addition, GMAC's actual results may differ materially due to numerous
important factors that are described in GMAC's most recent report on SEC Form
10-K, which may be revised or supplemented in subsequent reports on SEC Forms
10-Q and 8-K. Such factors include, among others, the following: the ability of
GM, to complete a transaction with a strategic investor regarding a controlling
interest in GMAC while maintaining a significant stake in GMAC, securing
separate credit ratings and low cost funding to sustain growth for GMAC and
ResCap and maintaining the mutually beneficial relationship between GMAC and GM;
significant changes in the competitive environment and the effect of competition
in the corporation's markets, including on the corporation's pricing policies;
our ability to maintain adequate financing sources; our ability to maintain an
appropriate level of debt; the profitability and financial condition of GM,
including changes in production or sales of GM vehicles, risks based on GM's
contingent benefit guarantees and the possibility of labor strikes or work
stoppages at GM or at key suppliers such as Delphi Corp.; funding obligations
under GM and its subsidiaries' qualified U.S. defined benefits pension plans;
restrictions on ResCap's ability to pay dividends and prepay subordinated debt
obligations to us; changes in the residual value of off-lease vehicles; changes
in U.S. government-sponsored mortgage programs or disruptions in the markets in
which our mortgage subsidiaries operate; changes in our contractual servicing
rights; costs and risks associated with litigation; changes in our accounting
assumptions that may require or that result from changes in the accounting rules
or their application, which could result in an impact on earnings; changes in
the credit ratings of GMAC or GM; the threat of natural calamities; changes in
economic conditions, currency exchange rates or political stability in the
markets in which we operate; and changes in the existing, or the adoption of
new, laws, regulations, policies or other activities of governments, agencies
and similar organizations.
4
Investors are cautioned not to place undue reliance on forward-looking
statements. GM undertakes no obligation to update publicly or otherwise revise
any forward-looking statements, whether as a result of new information, future
events or other such factors that affect the subject of these statements, except
where expressly required by law.
Use of the term "loans" describes products associated with direct and indirect
lending activities of GMAC's global operations. The specific products include
retail installment sales contracts, loans, lines of credit, leases or other
financing products. The term "originate" refers to GMAC's purchase, acquisition
or direct origination of various "loan" products.
# # #
5
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
Management believes that the adjusted information set forth
herein is useful to investors as it represents how Management
views the results of operations and cash of the Corporation and,
therefore, is the basis on which internal evaluation metrics are
determined. The internal evaluation metrics are those used by the
Corporation's Board of Directors to evaluate Management.
Three Months Ended Year to Date
Dec. 31, 2005 Dec. 31, 2005
--------------- ---------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
REPORTED
Net (loss) $(4,777) $(8.45) $(8,554) $(15.13)
===== ==== ===== =====
ADJUSTMENTS - Special Items
North America restructuring
charge (A) 1,290 2.28 1,290 2.28
UAW / Delphi benefit
guarantee (B) 2,327 4.12 2,327 4.12
U.S. salaried attrition
program (C) - - 148 0.26
Plant & facility impairments (D) - - 889 1.57
Adjustments to investment in
Fuji Heavy Industries (E) (51) (0.09) 737 1.30
Restructuring charges:
GME, GMAP, and Other (F) 97 0.17 701 1.25
Cumulative effect of
accounting change (G) 109 0.19 109 0.19
Change in Polish tax law (H) (49) (0.09) (49) (0.09)
Tax items (I) (129) (0.22) (987) (1.74)
----- ---- ----- ----
Subtotal 3,594 6.36 5,165 9.14
ADJUSTED
----- ---- ----- ----
Adjusted (loss) $(1,183) $(2.09) $(3,389) $(5.99)
===== ==== ===== ====
(A) In connection with the North American manufacturing capacity
actions announced in November, GM recorded an after-tax charge
of $1.3 billion in the fourth quarter of 2005. This charge
includes $835 million associated with the hourly employees at
the facilities GM is idling and $455 million for the non-cash
write-down of property, plants and equipment.
(B) In October of 2005, GM estimated that its contingent exposure
relating to the benefit guarantees for certain former GM U.S.
hourly employees who transferred to Delphi, ranged from zero to
$12 billion. GM now believes that the range is between $3.6
billion and $12 billion with amounts closer to the low-end of
the revised range considered the company's best estimate
assuming an agreement is reached between GM, Delphi and its
unions.
As a result, GM established a reserve of $3.6 billion ($2.3
billion after tax) and this is included as a non-cash charge
in the fourth quarter of 2005. The amount of this charge may
6
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
change between now and when GM files its Form 10-K with the SEC,
depending on the status of discussions between GM, Delphi and
its unions and other factors. GM is currently unable to estimate the
amount of additional charges, if any, that may arise from Delphi's
Chapter 11 filing. A consensual agreement to resolve the Delphi
matter may cause GM to incur additional costs in exchange for
benefits that would accrue to GM over time.
(C) Relates to voluntary early retirement and other separation
programs in the U.S. in the first quarter of 2005.
(D) Year-to-date adjustments include after-tax impairment charges
totaling $805 million ($468 million at GMNA, $176 million at
GME, $99 million at GMLAAM, and $62 million at GMAP) resulting
from third quarter reviews of the carrying value of long-lived
assets held and used, other than goodwill and intangible assets
with indefinite lives. These impairments consist of $711 million
related to product-specific assets and $94 million related to
office and production facilities, which were still in service
at year-end 2005. Year-to-date results also include an after-
tax charge of $84 million, recorded at GMNA in the first quarter
2005, for the write-down to fair market value of various plant
assets in connection with the cessation of production at a
Lansing assembly plant.
(E) Relates to the $788 million after-tax write-down to fair market
value, as of June 30, 2005, of GM's investment in approximately
20% of the common stock of Fuji Heavy Industries (FHI). In the
fourth quarter, GM completed the sale of its investment in the
common stock of FHI and recorded a gain of $71 million (after
tax) due the to appreciation of the fair value of such stock
after June 30, 2005, the date of the FHI impairment charge.
Also in the fourth quarter, GME recorded cancellation charges
of $20 million (after tax) related to FHI, resulting in a net
adjustment of $(51) million in the fourth quarter.
(F) The fourth quarter charge relates to after-tax restructuring
charges of $69 million at GME, $21 million at GMAP, and $7
million at Other. In the fourth quarter of 2004, GM Europe
announced a restructuring plan targeting a reduction in annual
structural costs of an estimated $600 million by 2006. A total
reduction of 12,000 employees, including 10,000 in Germany,
from 2005-2007 through separation programs, early retirements,
and selected outsourcing initiatives is expected. The fourth
quarter GME restructuring charge of $69 million relates to
approximately 800 additional separations, as well as charges
related to previous separations that are required to be
amortized over future periods. The year-to-date GME charge of
$673 million also includes costs related to the separation of
approximately 6,700 people in the first three quarters.
(G) Relates to the adoption of Financial Accounting Standards
Board Interpretation No. 47, "Accounting for Conditional Asset
Retirement Obligations," as of December 31, 2005.
(H) Relates to the effect of changes in Polish tax law at a GM
Powertrain joint venture. Amount is included in equity income.
(I) Fourth quarter and year-to-date amounts of $746 million and $1.6
billion, respectively, relate to tax benefits, in excess of GM's
previously communicated annual effective tax rate of 15%. In
addition, the fourth quarter includes recognition of a valuation
allowance of $617 million against deferred tax assets at GM do
Brasil. Adjusted loss reflects an effective tax rate of 15%.
7
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
Restated Restated
Three Months Ended Year to Date
Dec. 31, 2004 (A) Dec. 31, 2004 (A)
---------------- ---------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
REPORTED
Net income $(99) $(0.18) $2,789 $4.92
== ==== ===== ====
ADJUSTMENTS - Special Items
Gain on sale of XM stock (B) (118) (0.21) (118) (0.21)
Plant & facility impairments (C) 78 0.14 78 0.14
Asset impairments (D) 383 0.68 383 0.67
Write down Fiat investment (E) 136 0.24 136 0.24
Fiat settlement (F) 886 1.56 886 1.56
Tax items (G) (540) (0.95) (540) (0.95)
--- ---- --- ----
Subtotal 825 1.46 825 1.45
ADJUSTED
--- ---- ----- ----
Adjusted income $726 $1.28 $3,614 $6.37
=== ==== ===== ====
(A) Reflects restatement associated with ongoing review of
accounting for supplier credits. Final restatement amounts have
not yet been determined. GM expects to complete review of
supplier credits prior to filing GM's Form 10-K for the year
ended December 31, 2005.
(B) In December 2004, GM contributed 11 million shares of XM
Satellite Radio Holdings Inc. Class A common stock valued at
$432 million to its Voluntary Employees' Beneficiary Association
(VEBA), which resulted in a pre-tax gain of $190 million
($118 million after tax).
(C) Includes charges for facilities rationalization actions at GM's
Baltimore, MD and Linden, NJ plants.
(D) Reflects the results of GM's annual review of the carrying
value of its long-lived assets held and used, other than
goodwill and intangible assets with indefinite lives. The
after-tax impairment charges total $383 million ($118 million
at GMNA, $234 million at GME, and $31 million at Other). These
impairments consist of $328 million related to product-specific
assets and $55 million related to production facilities.
(E) Reflects completion of an impairment study of GM's investment
in Fiat Auto Holdings, B.V., which resulted in the write-off
of the remaining carrying value of $220 million pre-tax ($136
million after tax).
(F) On February 13, 2005 GM and Fiat reached a settlement agreement
related to various issues that resulted in an after-tax charge
to earnings of $886 million. Since the underlying events and
disputes giving rise to GM's and Fiat's agreement existed at
December 31, 2004, GM recognized this charge in the fourth
quarter of 2004.
(G) Reflects various adjustments resulting from changes in tax laws
both in the U.S. and overseas and capital loss carryforwards.
8
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter Year to Date
-------------- --------------
Restated Restated
2005 2004(1) 2005 2004(1)
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenues $51,180 $51,428 $192,604 $193,517
Adjusted $51,102 $51,238 $192,526 $193,327
Net income (loss) $(4,777) $(99) $(8,554) $2,789
Adjusted $(1,183) $726 $(3,389) $3,614
Net margin
(Net income / Total net
sales and revenues) (9.3)% (0.2)% (4.4)% 1.4%
Adjusted (2.3)% 1.4% (1.8)% 1.9%
Earnings (losses) per share
- basic
$1-2/3 par value $(8.45) $(0.18) $(15.13) $4.94
Earnings (losses) per share
- diluted
$1-2/3 par value $(8.45) $(0.18) $(15.13) $4.92
Earnings (losses) per share
- adjusted diluted
$1-2/3 par value $(2.09)(2) $1.28 $(5.99) $6.37
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 566 565 565 565
Diluted shares 566 566 565 567
Cash dividends per share
of common stocks
$1-2/3 par value $0.50 $0.50 $2.00 $2.00
See reconciliation of adjusted financial results on pages 11 - 16
and footnotes on page 19.
9
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
Auto & Other total cash
& marketable securities
at Dec. 31 ($Bil's) $16.7 $19.8
Readily-available assets
in VEBA $3.8 $3.5
--- ---
Total Auto & Other cash
& marketable securities
plus readily-available
assets in VEBA $20.5 $23.3
==== ====
Auto & Other Operations
($Mil's)
Depreciation $1,684 $1,322 $5,502 $5,028
Amortization of special
tools 969 1,325 4,495 3,562
Amortization of intangible
assets 39 14 76 39
----- ----- ------ -----
Total $2,692 $2,661 $10,073 $8,629
===== ===== ====== =====
GM's share of nonconsolidated
affiliates' net income (loss)
($Mil's)
Italy* NA $28 $32 $87
Japan $43 $64 $183 $255
China $109 $33 $327 $417
South Korea# NA $(35) $17 $(53)
* During the second quarter of 2005, GM and Fiat S.p.A. completed
the liquidation and termination of all joint ventures between
them in existence at that time. As a result, GM regained
complete ownership of all assets it originally contributed to
each joint venture.
# Effective for the third quarter 2005, the results of GM Daewoo's
operations are consolidated by GM.
See footnotes on page 19.
10
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $27,464 $29,707 $ - $(190) $27,464 $29,517
GME 8,150 8,248 - - 8,150 8,248
GMLAAM 3,520 2,884 - - 3,520 2,884
GMAP 3,525 2,085 $(78) - 3,447 2,085
------ ------ -- --- ------ ------
Total GMA 42,659 42,924 (78) (190) 42,581 42,734
Other (3) (282) 216 - - (282) 216
------ ------ -- --- ------ ------
Total Auto &
Other 42,377 43,140 (78) (190) 42,299 42,950
------ ------ -- --- ------ ------
GMAC 8,787 8,118 - - 8,787 8,118
Other Financing(3) 16 170 - - 16 170
------ ------ -- --- ------ ------
Total FIO 8,803 8,288 - - 8,803 8,288
------ ------ -- --- ------ ------
Total net sales
and revenues $51,180 $51,428 $(78) $(190) $51,102 $51,238
====== ====== == === ====== ======
Income (loss)
before income
taxes, equity
income, and
minority interests
GMNA $(3,774) $227 $1,981 $125 $(1,793) $352
GME (384) (975) 125 372 (259) (603)
GMLAAM 50 63 - - 50 63
GMAP (23) 24 (49) - (72) 24
----- ----- ----- ----- ----- ---
Total GMA (4,131) (661) 2,057 497 (2,074) (164)
Other (4,040) (1,909) 3,591 1,633 (449) (276)
----- ----- ----- ----- ----- ---
Total Auto &
Other (8,171) (2,570) 5,648 2,130 (2,523) (440)
----- ----- ----- ----- ----- ---
GMAC 890 862 - - 890 862
Other Financing (12) (12) - - (12) (12)
----- ----- ----- ----- ----- ---
Total FIO 878 850 - - 878 850
----- ----- ----- ----- ----- ---
Total income (loss)
before income
taxes, equity
income, and
minority
interests $(7,293) $(1,720)$5,648 $2,130 $(1,645) $410
===== ===== ===== ===== ===== ===
See footnotes on page 19.
11
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2005 and 2004
---------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Net income (loss)
GMNA $(2,832) $911 $1,373 $(462) $(1,459) $449
GME (220) (579) 61 234 (159) (345)
GMLAAM (599) 47 619 - 20 47
GMAP 159 117 (47) - 112 117
----- ----- ----- ----- ----- ---
Total GMA (3,492) 496 2,006 (228) (1,486) 268
Other (1,874) (1,276) 1,588 1,053 (286) (223)
----- ----- ----- ----- ----- ---
Total Auto &
Other (5,366) (780) 3,594 825 (1,772) 45
----- --- ----- --- ----- ---
GMAC 614 683 - - 614 683
Other Financing (25) (2) - - (25) (2)
----- --- ----- --- ----- ---
Total FIO 589 681 - - 589 681
----- --- ----- --- ----- ---
Net income (loss)$(4,777) $(99)$3,594 $825 $(1,183) $726
===== == ===== === ===== ===
Income tax expense
(benefit)
GMNA $(1,012) $(694) $691 $587 $(321) $(107)
GME (133) (367) 36 138 (97) (229)
GMLAAM 650 15 (617) - 33 15
GMAP (68) (7) 1 - (67) (7)
----- ----- ----- ----- --- ---
Total GMA (563) (1,053) 111 725 (452) (328)
Other (2,153) (646) 2,003 580 (150) (66)
----- ----- ----- ----- --- ---
Total Auto &
Other (2,716) (1,699) 2,114 1,305 (602) (394)
----- ----- ----- ----- --- ---
GMAC 331 175 - - 331 175
Other Financing 13 (10) - - 13 (10)
----- ----- ----- ----- --- ---
Total FIO 344 165 - - 344 165
----- ----- ----- ----- --- ---
Income tax expense
(benefit) $(2,372) $(1,534)$2,114 $1,305 $(258) $(229)
===== ===== ===== ===== === ===
See footnotes on page 19.
12
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2005 and 2004
---------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 33% 89% 37% 61% 16% (56%)
GMNA 27% (306%) 35% 470% 18% (30%)
GME 35% 38% 29% 37% 38% 38%
GMAC 37% 20% - - 37% 20%
Equity income (loss)
and minority interests
GMNA $13 $(10) $ - $ - $13 $(10)
GME 52 29 (49) - 3 29
GMLAAM 3 (1) - - 3 (1)
GMAP 117 86 - - 117 86
--- --- -- -- --- ---
Total GMA $185 $104 $(49) $ - $136 $104
=== === == == === ===
See footnotes on page 19.
13
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $104,755 $114,545 $ - $(190)$104,755 $114,355
GME 31,719 30,820 - - 31,719 30,820
GMLAAM 11,745 8,792 - - 11,745 8,792
GMAP 10,893 6,978 (78) - 10,815 6,978
------- ------- -- --- ------- -------
Total GMA 159,112 161,135 (78) (190) 159,034 160,945
Other (3) (891) 410 - - (891) 410
------- ------- -- --- ------- -------
Total Auto &
Other 158,221 161,545 (78) (190) 158,143 161,355
------- ------- -- --- ------- -------
GMAC 34,037 31,188 - - 34,037 31,188
Other Financing(3) 346 784 - - 346 784
------- ------- -- --- ------- -------
Total FIO 34,383 31,972 - - 34,383 31,972
------- ------- -- --- ------- -------
Total net sales
and revenues $192,604 $193,517 $(78) $(190)$192,526 $193,327
======= ======= == === ======= =======
Income (loss)
before income
taxes, equity
income, and
minority interests
GMNA $(9,747) $1,029 $3,081 $125 $(6,666) $1,154
GME (2,020) (1,733) 1,330 372 (690) (1,361)
GMLAAM 55 127 150 - 205 127
GMAP (879) 52 853 - (26) 52
------ ----- ----- ----- ----- -----
Total GMA (12,591) (525) 5,414 497 (7,177) (28)
Other (5,286) (2,625) 3,604 1,633 (1,682) (992)
------ ----- ----- ----- ----- -----
Total Auto &
Other (17,877) (3,150) 9,018 2,130 (8,859) (1,020)
------ ----- ----- ----- ----- -----
GMAC 4,260 4,355 - - 4,260 4,355
Other Financing (30) (39) - - (30) (39)
----- ----- ----- ----- ----- -----
Total FIO 4,230 4,316 - - 4,230 4,316
----- ----- ----- ----- ----- -----
Total income (loss)
before income
taxes, equity
income, and
minority
interests $(13,647) $1,166 $9,018 $2,130 $(4,629) $3,296
====== ===== ===== ===== ===== =====
See footnotes on page 19.
14
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Net income (loss)
GMNA $(7,647) $1,567 $2,065 $(462) $(5,582) $1,105
GME (1,216) (976) 841 234 (375) (742)
GMLAAM (594) 85 718 - 124 85
GMAP (279) 729 803 - 524 729
----- ----- ----- ----- ----- -----
Total GMA (9,736) 1,405 4,427 (228) (5,309) 1,177
Other (1,626) (1,510) 738 1,053 (888) (457)
----- ----- ----- ----- ----- -----
Total Auto &
Other (11,362) (105) 5,165 825 (6,197) 720
----- ----- ----- --- ----- -----
GMAC 2,833 2,913 - - 2,833 2,913
Other Financing (25) (19) - - (25) (19)
----- ----- ----- --- ----- -----
Total FIO 2,808 2,894 - - 2,808 2,894
----- ----- ----- --- ----- -----
Net income (loss)$(8,554) $2,789 $5,165 $825 $(3,389) $3,614
===== ===== ===== === ===== =====
Income tax expense
(benefit)
GMNA $(2,253) $(569)$1,099 $587 $(1,154) $18
GME (723) (655) 461 138 (262) (517)
GMLAAM 651 31 (566) - 85 31
GMAP (122) (11) 53 - (69) (11)
----- ----- ----- ----- ----- -----
Total GMA (2,447) (1,204) 1,047 725 (1,400) (479)
Other (3,633) (1,131) 2,866 580 (767) (551)
----- ----- ----- ----- ----- -----
Total Auto &
Other (6,080) (2,335) 3,913 1,305 (2,167) (1,030)
----- ----- ----- ----- ----- -----
GMAC 1,478 1,434 - - 1,478 1,434
Other Financing (5) (20) - - (5) (20)
----- ----- ----- ----- ----- -----
Total FIO 1,473 1,414 - - 1,473 1,414
----- ----- ----- ----- ----- -----
Income tax expense
(benefit) $(4,607) $(921)$3,913 $1,305 $(694) $384
===== === ===== ===== === ===
See footnotes on page 19.
15
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004(1) 2005 2004 2005 2004(1)
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 34% (79%) 43% 61% 15% 12%
GMNA 23% (55%) 36% 470% 17% 2%
GME 36% 38% 35% 37% 38% 38%
GMAC 35% 33% - - 35% 33%
Equity income (loss)
and minority interests
GMNA $(70) $(31) $ - $ - $(70) $(31)
GME 102 102 (49) - 53 102
GMLAAM 4 (11) - - 4 (11)
GMAP 481 666 - - 481 666
--- --- -- -- --- ---
Total GMA $517 $726 $(49) $ - $468 $726
=== === == == === ===
See footnotes on page 19.
16
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
(units in thousands)
Worldwide Production Volume
GMNA - Cars 483 466 1,834 1,997
GMNA - Trucks 798 811 3,023 3,223
----- ----- ----- -----
Total GMNA 1,281 1,277 4,857 5,220
GME 443 442 1,858 1,829
GMLAAM 189 200 775 716
GMAP 482 386 1,624 1,333
----- ----- ----- -----
Total Worldwide 2,395 2,305 9,114 9,098
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 186 217 866 918
Chevrolet - Trucks 364 439 1,804 1,845
Pontiac 97 96 438 474
GMC 104 144 566 602
Buick 52 60 282 310
Oldsmobile 0 2 2 29
Saturn 46 41 214 212
Cadillac 52 65 235 234
Other 30 23 111 83
----- ----- ----- -----
Total United States 931 1,087 4,518 4,707
Canada, Mexico, and Other 180 187 728 705
----- ----- ----- -----
Total GMNA 1,111 1,274 5,246 5,412
GME 452 455 1,982 1,956
GMLAAM 248 217 881 738
GMAP 290 228 1,064 887
----- ----- ----- -----
Total Worldwide 2,101 2,174 9,173 8,993
===== ===== ===== =====
Market Share
United States - Cars 21.0% 23.5% 22.6% 24.9%
United States - Trucks 26.0% 27.8% 28.5% 29.0%
Total United States 23.8% 26.0% 25.9% 27.2%
Total North America 23.6% 25.6% 25.5% 26.7%
Total Europe 9.2% 9.2% 9.5% 9.4%
Total LAAM 19.0% 18.9% 17.7% 17.5%
Asia and Pacific 6.3% 5.2% 5.8% 5.2%
Total Worldwide 13.6% 14.1% 14.2% 14.4%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 39.3% 35.1% 36.8% 36.7%
% Fleet Sales - Trucks 21.8% 17.4% 19.0% 16.4%
Total Vehicles 28.7% 24.2% 25.9% 24.5%
GMNA Capacity Utilization
(2 shift rated, annualized) 94.3% 83.0% 89.8% 85.8%
GMNA Vehicle Revenue
Per Unit $19,769 $20,213
17
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
GMAC's Worldwide Cost of
Borrowing (4) 5.24% 4.13% 4.79% 3.81%
GMAC Period End Debt Spreads
Over U.S. Treasuries
2 Year 475 bp 170 bp
5 Year 535 bp 225 bp
10 Year 540 bp 270 bp
GMAC Cash Reserve Balance
($Bil's) (5) $20.0 $22.7
GMAC Automotive Finance
Operations Consumer
Credit (North America)
Net charge-offs as a % of
managed receivables 0.94% 1.06% 0.99% 1.10%
Retail contracts 30 days
delinquent - % of average
number of contracts
outstanding (6) 2.46% 2.20% 2.21% 2.11%
Retail Penetration (U.S. only)
Total consumer volume (retail
and lease) as % of retail sales 32% 66% 39% 46%
SmartLease and SmartBuy
as % of retail sales 14% 14% 17% 13%
Off-lease Vehicle
Remarketing (U.S. only)
Sales proceeds on scheduled
lease terminations
(36-month) $14,059 $13,911 $14,392 $14,182
Off-lease vehicles
terminated (units in 000s) 58 107 283 414
GMAC Mortgage Operations ($Bil's)
Origination volume $55.0 $46.1 $205.5 $169.7
Mortgage servicing rights,
net $4.6 $3.9
GMAC Insurance Operations ($Mil's)
Combined ratio (7) 92.5% 98.7% 93.8% 95.7%
Premium revenue written $941 $988 $4,150 $4,095
Investment portfolio
market value $7,664 $7,320
After-tax net unrealized
capital gains $573 $563
See footnotes on page 19.
18
General Motors Corporation
Fourth Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
Worldwide Employment
at December 31 (in 000's)
United States Hourly 105 111
United States Salary 36 39
--- ---
Total United States 141 150
Canada, Mexico, and Other 32 31
--- ---
GMNA 173 181
GME 55 61
GMLAAM 31 29
GMAP (8) 31 15
GMAC 34 34
Other 3 4
--- ---
Total 327 324
=== ===
Worldwide Payrolls ($Bil's) $5.3 $5.6 $20.9 $21.5
Footnotes:
---------
(1) Reflects restatement associated with ongoing review of accounting
for supplier credits. Final restatement amounts have not yet been
determined. GM expects to complete review of supplier credits
prior to filing GM's Form 10-K for the year ended December 31,
2005.
(2) This amount is comparable to First Call analysts' consensus.
(3) Other Operations and Other Financing include intercompany
eliminations.
(4) Calculated by dividing total interest expense (excluding mark
to market adjustments) by total debt.
(5) Balance at December 31, 2005 comprises $15.8 billion of cash
and cash equivalents and $4.2 billion in marketable securities
with maturities greater than 90 days. Balance at December 31,
2004 consisted entirely of cash and cash equivalents.
(6) Excludes accounts in bankruptcy.
(7) Calculated as the sum of all reported losses and expenses
(excluding interest and income tax expense) divided by the total
of premiums and service revenues earned and other income.
(8) 2005 includes approximately 13,000 employees added as a result
of GM Daewoo consolidation.
19
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31,
------------------------------
(As restated)
2005 2004 (1)
---- ----
(dollars in millions except
per share amounts)
Total net sales and revenues $51,180 $51,428
------ ------
Cost of sales and other expenses 47,928 43,929
Selling, general, and administrative
expenses 6,227 5,872
Interest expense 4,318 3,347
------ ------
Total costs and expenses 58,473 53,148
------ ------
(Loss) before income taxes, equity
income, and minority interests (7,293) (1,720)
Income tax (benefit) (2,372) (1,534)
Equity income and minority interests 253 87
------ --
(Loss) before cumulative effect of
accounting change (4,668) (99)
Cumulative effect of accounting change (109) -
----- --
Net (loss) $(4,777) $(99)
===== ==
Basic (losses) per share attributable
to $1-2/3 par value common stock
Before cumulative effect of
accounting change $(8.26) $(0.18)
Cumulative effect of accounting change (0.19) -
---- ----
Net (loss) $(8.45) $(0.18)
==== ====
(Losses) per share attributable to
$1-2/3 par value common stock
assuming dilution
Before cumulative effect of
accounting change $(8.26) $(0.18)
Cumulative effect of accounting change (0.19) -
---- ----
Net (loss) $(8.45) $(0.18)
==== ====
See footnotes on page 19.
20
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31,
------------------------------
(As restated)
2005 2004 (1)
---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $42,377 $43,140
------ ------
Cost of sales and other expenses 45,783 41,457
Selling, general, and administrative
expenses 3,780 3,484
------ ------
Total costs and expenses 49,563 44,941
Interest expense 771 700
Net expense from transactions with
Financing and Insurance Operations 214 69
------ ------
(Loss) before income taxes, equity
income, and minority interests (8,171) (2,570)
Income tax (benefit) (2,716) (1,699)
Equity income and minority interests 198 91
------ -----
(Loss) before cumulative effect of
accounting change (5,257) (780)
Cumulative effect of accounting change (109) -
----- ---
Net (loss) - Automotive and Other
Operations $(5,366) $(780)
===== ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $8,803 $8,288
----- -----
Interest expense 3,547 2,647
Depreciation and amortization expense 1,406 1,409
Operating and other expenses 2,439 2,346
Provisions for financing and
insurance losses 747 1,105
----- -----
Total costs and expenses 8,139 7,507
Net income from transactions with
Automotive and Other Operations (214) (69)
--- -----
Income before income taxes and
minority interests 878 850
Income tax expense 344 165
Equity income (loss) and minority
interests 55 (4)
--- ---
Net income - Financing and Insurance
Operations $589 $681
=== ===
See footnotes on page 19.
21
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
-----------------------------
(As (As
restated) restated)
2005 2004 (1) 2003 (1)
---- ---- ----
(dollars in millions except
per share amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $192,604 $193,517 $185,837
------- ------- -------
Cost of sales and other expenses 168,462 159,977 152,429
Selling, general, and administrative
expenses 22,021 20,394 20,957
Interest expense 15,768 11,980 9,464
------- ------- -------
Total costs and expenses 206,251 192,351 182,850
------- ------- -------
Income (loss) from continuing operations
before income taxes, equity income
and minority interests (13,647) 1,166 2,987
Income tax (benefit) expense (4,607) (921) 733
Equity income (loss) and minority interests 595 702 612
------ ----- -----
Income (loss) from continuing operations
before cumulative effect
of accounting change (8,445) 2,789 2,866
(Loss) from discontinued operations - - (219)
Gain on sale of discontinued operations - - 1,179
Cumulative effect of accounting change (109) - -
----- ----- -----
Net income (loss) $(8,554) $2,789 $3,826
===== ===== =====
Basic earnings (loss) per share
attributable to common stocks
$1-2/3 par value
Continuing operations before cumulative
effect of accounting change $(14.94) $4.94 $5.11
Discontinued operations - - 2.14
Cumulative effect of accounting change (0.19) - -
----- ----- ----
Earnings (loss) per share attributable to
$1-2/3 par value $(15.13) $4.94 $7.25
===== ==== ====
(Loss) per share from discontinued
operations attributable to Class H $- $- $(0.22)
= = ====
Earnings (loss) per share attributable to
common stocks assuming dilution
$1-2/3 par value
Continuing operations before cumulative
effect of accounting change $(14.94) $4.92 $5.03
Discontinued operations - - 2.11
Cumulative effect of accounting change (0.19) - -
----- ---- ----
Earnings (loss) per share attributable to
$1-2/3 par value $(15.13) $4.92 $7.14
===== ==== ====
(Loss) per share from discontinued
operations attributable to Class H $- $- $(0.22)
= = ====
See footnotes on page 19.
22
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
-----------------------------
(As (As
restated) restated)
2005 2004 (1) 2003 (1)
---- ---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $158,221 $161,545 $155,831
------- ------- -------
Cost of sales and other expenses 159,506 150,079 143,519
Selling, general, and administrative
expenses 13,222 11,863 11,737
------- ------- -------
Total costs and expenses 172,728 161,942 155,256
Interest expense 2,873 2,480 1,780
Net expense from transactions with
Financing and Insurance Operations 497 273 297
------- ------ ------
(Loss) from continuing operations before
income taxes, equity income,
and minority interests (17,877) (3,150) (1,502)
Income tax (benefit) (6,080) (2,335) (867)
Equity income (loss) and minority interests 544 710 674
------ --- ---
Income (loss) from continuing operations
before cumulative effect of
of accounting change (11,253) (105) 39
(Loss) from discontinued operations - - (219)
Gain on sale of discontinued operations - - 1,179
Cumulative effect of accounting change (109) - -
------ --- -----
Net income (loss) - Automotive and Other
Operations $(11,362) $(105) $999
====== === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $34,383 $31,972 $30,006
------ ------ ------
Interest expense 12,895 9,500 7,684
Depreciation and amortization expense 5,648 5,523 5,567
Operating and other expenses 8,667 8,591 8,604
Provisions for financing and insurance
losses 3,440 4,315 3,959
------ ------ ------
Total costs and expenses 30,650 27,929 25,814
------ ------ ------
Net income from transactions with
Automotive and Other Operations (497) (273) (297)
------ ------ ------
Income before income taxes, equity income
and minority interests 4,230 4,316 4,489
Income tax expense 1,473 1,414 1,600
Equity income (loss) and minority interests 51 (8) (62)
----- ----- -----
Net income - Financing and Insurance
Operations $2,808 $2,894 $2,827
===== ===== =====
See footnotes on page 19.
23
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
-------------------
(As
restated)
2005 2004 (1)
---- --------
ASSETS dollars in millions)
Cash and cash equivalents $30,884 $35,993
Other marketable securities 19,726 21,737
------ ------
Total cash and marketable securities 50,610 57,730
Finance receivables - net 180,793 199,600
Loans held for sale 21,865 19,934
Accounts and notes receivable (less allowances) 15,420 21,236
Inventories (less allowances) 14,372 12,247
Assets of Disc. Ops./Held for Sale 19,152 -
Deferred income taxes 28,561 26,241
Net equipment on operating leases
(less accumulated depreciation) 38,187 34,214
Equity in net assets of nonconsolidated affiliates 3,291 6,776
Property - net 40,214 39,020
Intangible assets - net 4,625 4,925
Other assets 58,194 57,680
------- -------
Total assets $475,284 $479,603
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $29,913 $28,830
Notes and loans payable 285,750 300,279
Liab. Of Disc Ops./Related to Assets for Sale 10,990 -
Postretirement benefits other than pensions 33,934 28,111
Pensions 10,918 9,455
Deferred income taxes 4,430 7,078
Accrued expenses and other liabilities 81,576 78,052
------- -------
Total liabilities 457,511 451,805
Minority interests 1,039 397
Stockholders' equity
$1-2/3 par value common stock (outstanding,
565,518,106 and 565,132,021 shares) 943 942
Capital surplus (principally additional
paid-in capital) 15,304 15,241
Retained earnings 4,415 14,103
------ ------
Subtotal 20,662 30,286
Accumulated foreign currency translation adjustments (1,666) (1,194)
Net unrealized gains on derivatives 733 589
Net unrealized gains on securities 784 751
Minimum pension liability adjustment (3,779) (3,031)
----- -----
Accumulated other comprehensive loss (3,928) (2,885)
----- -----
Total stockholders' equity 16,734 27,401
------ ------
Total liabilities and stockholders' equity $475,284 $479,603
======= =======
See footnotes on page 19.
24
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
December 31,
-------------------
(As
restated)
2005 2004 (1)
---- --------
dollars in millions)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
ASSETS
Automotive and Other Operations
Cash and cash equivalents $15,345 $13,148
Marketable securities 1,416 6,655
------ ------
Total cash and marketable securities 16,761 19,803
Accounts and notes receivable (less allowances) 7,600 6,713
Inventories (less allowances) 13,869 11,717
Net equipment on operating leases
(less accumulated depreciation) 6,993 6,488
Deferred income taxes and other current assets 9,457 10,794
----- ------
Total current assets 54,680 55,515
Equity in net assets of nonconsolidated affiliates 3,291 6,776
Property - net 38,466 37,170
Intangible assets - net 1,500 1,599
Deferred income taxes 21,019 17,399
Other assets 41,103 40,844
------- -------
Total Automotive and Other Operations assets 160,059 159,303
Financing and Insurance Operations
Cash and cash equivalents 15,539 22,845
Investments in securities 18,310 15,082
Finance receivables - net 180,793 199,600
Loans held for sale 21,865 19,934
Assets held for sale 19,152 -
Net equipment on operating leases
(less accumulated depreciation) 31,194 27,726
Other assets 28,372 35,113
Net receivable from Automotive and Other Operations 4,452 2,426
------- -------
Total Financing and Insurance Operations assets 319,677 322,726
------- -------
Total assets $479,736 $482,029
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive and Other Operations
Accounts payable (principally trade) $26,182 $24,257
Loans payable 1,319 2,062
Accrued expenses 42,322 45,948
Net payable to Financing and Insurance Operations 4,452 2,426
------ ------
Total current liabilities 74,275 74,693
Long-term debt 31,214 30,460
Postretirement benefits other than pensions 28,927 23,406
Pensions 10,828 9,371
Other liabilities and deferred income taxes 19,520 16,181
------- -------
Total Automotive and Other Operations liabilities 164,764 154,111
Financing and Insurance Operations
Accounts payable 3,731 4,573
Liabilities related to assets held for sale 10,990 -
Debt 253,217 267,757
Other liabilities and deferred income taxes 29,261 27,790
------- -------
Total Financing and Insurance Operations liabilities 297,199 300,120
------- -------
Total liabilities 461,963 454,231
Minority interests 1,039 397
Total stockholders' equity 16,734 27,401
------- -------
Total liabilities and stockholders' equity $479,736 $482,029
======= =======
See footnotes on page 19.
25