EXHIBIT 99.1 PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Introduction
In contemplation of a public capital market transaction,
General Motors Corporation ("General Motors" or "GM") is filing this
Form 8-K to provide pro forma financial information under Article 11 of
Regulation S-X for the potential sale of its Allison Transmission business
("Allison Transmission"). At this time, GM's management believes that a sale of
Allison Transmission is probable. Allison Transmission is the leading
manufacturer of automatic transmissions for commercial and military vehicles. It
designs, engineers, manufactures and sells automatic and power shift
transmissions, product parts and support through a worldwide distribution
network and sales offices throughout North America, South America, Europe,
Africa and Asia.
The following unaudited pro forma condensed consolidated financial
statements as of March 31, 2007 and for the three months ended March 31, 2007
and 2006, and for the years ended December 31, 2006, 2005 and 2004 have been
derived from the historical consolidated financial statements of GM. The
unaudited pro forma condensed consolidated statements of operations giving
effect to Allison Transmission as a discontinued operation for the three months
ended March 31, 2007 and 2006 and for the years ended December 31, 2006, 2005
and 2004 reflect adjustments as if such classification had taken place at
January 1, 2004.
In the unaudited pro forma condensed consolidated balance sheet as of March
31, 2007, the historical assets and liabilities of Allison Transmission have
been presented separately in the assets and liabilities sections, respectively,
as held for sale in the unaudited pro forma condensed consolidated balance sheet
as if such classification had taken place on March 31, 2007. As discussions for
a potential sale are still ongoing, the specific assets and liabilities which
may or may not be included in a sale transaction are not known. The assets and
liabilities are reflected at their respective carrying amounts, which is the
lower of its carrying amount or fair value less costs to sell, since GM
management believes a gain will be recognized on any potential sale. Also, any
proceeds that would be received from the sale of Allison Transmission have not
been contemplated in these pro forma financial statements.
GM's management believes that the probable disposition of Allison
Transmission will qualify as discontinued operations under Statement of
Financial Accounting Standards No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, based on GM's current plans for such disposition.
The unaudited pro forma adjustments are based upon available information
and certain assumptions that GM's management believes are reasonable.
The unaudited pro forma condensed consolidated financial statements are for
informational purposes only and are not intended to represent or be indicative
of the consolidated results of operations or financial position that GM would
have reported had any such sale of Allison Transmission been completed on the
dates indicated, and should not be taken as representative of GM's future
consolidated results of operations or financial position. These unaudited pro
forma condensed consolidated financial statements and the accompanying notes
should be read together with the General Motors Corporation's Quarterly Report
on Form 10-Q for the period ended March 31, 2007 and its Annual Report on Form
10-K for the year ended December 31, 2006.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2007
(DOLLARS IN MILLIONS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
---------- ----------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents ........................................ $ 20,923 $ (9)(A) $ 20,914
Marketable securities ............................................ 159 -- 159
-------- ----- --------
Total cash and marketable securities .......................... 21,082 (9) 21,073
Accounts and notes receivable, net ............................... 9,697 (90)(A) 9,607
Inventories ...................................................... 15,431 (126)(A) 15,305
Equipment on operating leases, net ............................... 5,650 -- 5,650
Assets held for sale ............................................. -- 636(A) 636
Deferred income taxes and other current assets ................... 12,143 (23)(A) 12,120
-------- ----- --------
Total current assets .......................................... 64,003 388 64,391
FINANCING AND INSURANCE OPERATIONS ASSETS
Cash and cash equivalents ........................................ 301 -- 301
Investments in securities ........................................ 187 -- 187
Equipment on operating leases, net ............................... 10,457 -- 10,457
Investment in GMAC LLC ........................................... 7,355 -- 7,355
Other assets ..................................................... 3,684 -- 3,684
-------- ----- --------
Total Financing and Insurance Operations Assets ............... 21,984 -- 21,984
NON-CURRENT ASSETS
Property, net .................................................... 41,612 (388)(A) 41,224
Deferred income taxes ............................................ 32,476 -- 32,476
Prepaid pension .................................................. 17,639 -- 17,639
Other assets ..................................................... 7,484 -- 7,484
-------- ----- --------
Total non-current assets ...................................... 99,211 (388) 98,823
-------- ----- --------
TOTAL ASSETS ..................................................... $185,198 $ -- $185,198
======== ===== ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable (principally trade) ............................. $ 30,065 $(156)(A) $ 29,909
Short-term borrowings and current portion of long-term debt ...... 4,834 -- 4,834
Liabilities related to assets held for sale ...................... -- 486(A) 486
Accrued expenses ................................................. 34,518 (210)(A) 34,308
-------- ----- --------
Total current liabilities ..................................... 69,417 120 69,537
FINANCING AND INSURANCE OPERATIONS LIABILITIES
Accounts payable ................................................. 133 -- 133
Debt ............................................................. 8,297 -- 8,297
Other liabilities and deferred income taxes ...................... 1,572 -- 1,572
-------- ----- --------
Total Financing and Insurance Operations Liabilities .......... 10,002 -- 10,002
NON-CURRENT LIABILITIES
Long-term debt ................................................... 33,120 -- 33,120
Postretirement benefits other than pensions ...................... 48,998 -- 48,998
Pensions ......................................................... 11,293 -- 11,293
Other liabilities and deferred income taxes ...................... 15,570 (120)(A) 15,450
-------- ----- --------
Total non-current liabilities ................................. 108,981 (120) 108,861
-------- ----- --------
Total liabilities ........................................... 188,400 -- 188,400
Minority interests ............................................... 1,145 -- 1,145
Total Stockholders' Deficit ...................................... (4,347) -- (4,347)
-------- ----- --------
TOTAL LIABILITIES, MINORITY INTERESTS AND STOCKHOLDER'S DEFICIT .. $185,198 $ -- $185,198
======== ===== ========
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2007
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
---------- ----------- ---------
Net sales and revenue
Automotive sales ................................. $42,923 $ (540)(A) $42,383
Financial services and insurance revenue ......... 986 -- 986
------- ------ -------
Total net sales and revenue ......................... 43,909 (540) 43,369
------- ------ -------
Costs and expenses
Automotive cost of sales ......................... 39,047 (314)(A) 38,733
Selling, general, and administrative expense ..... 3,375 (65)(A) 3,310
Financial services and insurance expense ......... 883 -- 883
------- ------ -------
Total costs and expenses ............................ 43,305 (379) 42,926
------- ------ -------
Operating income ................................. 604 (161) 443
Equity in loss of GMAC LLC .......................... (183) -- (183)
Automotive and other interest expense ............... (799) -- (799)
Automotive interest income and other
non-operating income ............................. 386 -- 386
------- ------ -------
Income(loss) from continuing operations before
income taxes, other equity income and minority
interests ........................................ 8 (161) (153)
Income tax benefit .................................. -- (60)(C) (60)
Equity income and minority interests, net of tax .... 54 -- 54
------- ------ -------
Income(loss) from continuing operations ............. 62 (101) (39)
======= ====== =======
BASIC EARNINGS PER SHARE:
Earnings(loss) per share from continuing
operations ....................................... $ .11 $ (.07)(B)
======= =======
Weighted average common shares outstanding
(millions) ....................................... 566 566
======= =======
DILUTED EARNINGS PER SHARE:
Earnings(loss) per share from continuing
operations ....................................... $ .11 $ (.07)(B)
======= =======
Weighted average common shares outstanding
(millions) ....................................... 567 567
======= =======
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2006
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
---------- ----------- ---------
Net sales and revenue
Automotive sales ................................. $43,529 $(529)(A) $ 43,000
Financial services and insurance revenue ......... 8,847 -- 8,847
------- ----- --------
Total net sales and revenue ......................... 52,376 (529) 51,847
------- ----- --------
Costs and expenses
Automotive cost of sales ......................... 40,073 (331)(A) 39,742
Selling, general, and administrative expense ..... 3,427 (62)(A) 3,365
Financial services and insurance expense ......... 8,285 -- 8,285
------- ----- --------
Total costs and expenses ............................ 51,785 (393) 51,392
------- ----- --------
Operating income ................................. 591 (136) 455
Automotive and other interest expense ............... (638) -- (638)
Automotive interest income and other non-operating
income ........................................... 798 (1)(A) 797
------- ----- --------
Income from continuing operations before income
taxes, other equity income and minority
interests ........................................ 751 (137) 614
Income tax expense (benefit) ........................ 232 (51)(C) 181
Equity income and minority interests, net of tax .... 83 -- 83
------- ----- --------
Income from continuing operations ................... $ 602 $ (86) $ 516
======= ===== ========
BASIC EARNINGS PER SHARE:
Earnings per share from continuing operations ....... $ 1.06 $ .91(B)
======= ========
Weighted average common shares outstanding
(millions) ....................................... 566 566
======= ========
DILUTED EARNINGS PER SHARE:
Earnings per share from continuing operations ....... $ 1.06 $ .91(B)
======= ========
Weighted average common shares outstanding
(millions) ....................................... 569 569
======= ========
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2006
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
------------ ----------- ---------
SEE NOTE (1)
Net sales and revenue
Automotive sales ................................ $172,927 $(2,180)(A) $170,747
Financial services and insurance revenue ........ 34,422 -- 34,422
-------- ------- --------
Total net sales and revenue ........................ 207,349 (2,180) 205,169
-------- ------- --------
Costs and expenses
Automotive cost of sales ........................ 164,682 (1,391)(A) 163,291
Selling, general, and administrative expense .... 13,903 (253)(A) 13,650
Financial services and insurance expense ........ 29,551 -- 29,551
Other expenses .................................. 4,238 -- 4,238
-------- ------- --------
Total costs and expenses ........................... 212,374 (1,644) 210,730
-------- ------- --------
Operating loss .................................. (5,025) (536) (5,561)
Equity in loss of GMAC LLC ......................... (5) -- (5)
Automotive and other interest expense .............. (2,643) -- (2,643)
Automotive interest income and other
non-operating income ............................ 2,721 (1)(A) 2,720
-------- ------- --------
Loss from continuing operations before income
taxes, other equity income and minority
interests ....................................... (4,952) (537) (5,489)
Income tax benefit ................................. (2,785) (199)(C) (2,984)
Equity income and minority interests, net of
tax ............................................. 189 -- 189
-------- ------- --------
Loss from continuing operations .................... $ (1,978) $ (338) $ (2,316)
======== ======= ========
BASIC EARNINGS PER SHARE:
Loss per share from continuing operations .......... $ (3.50) $ (4.09)(B)
======== ========
Weighted average common shares outstanding
(millions) ...................................... 566 566
======== ========
DILUTED EARNINGS PER SHARE:
Loss per share from continuing operations .......... $ (3.50) $ (4.09)(B)
======== ========
Weighted average common shares outstanding
(millions) ...................................... 566 566
======== ========
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
------------ ----------- ---------
SEE NOTE (1)
Net sales and revenue
Automotive sales............................ $160,228 $(1,773)(A) $158,455
Financial services and insurance revenue.... 34,427 -- 34,427
-------- ------- --------
Total net sales and revenue.................... 194,655 (1,773) 192,882
-------- ------- --------
Costs and expenses
Automotive cost of sales.................... 158,887 (1,166)(A) 157,721
Selling, general, and administrative expense 13,201 (261)(A) 12,940
Financial services and insurance expense.... 30,813 -- 30,813
Other expenses.............................. 7,024 -- 7,024
-------- ------- --------
Total costs and expenses....................... 209,925 (1,427) 208,498
-------- ------- --------
Operating loss.............................. (15,270) (346) (15,616)
Automotive and other interest expense.......... (2,536) -- (2,536)
Automotive interest income and other
non-operating income......................... 1,066 (3)(A) 1,063
-------- ------- --------
Income (loss) from continuing operations
before income taxes, other equity income
(loss) and minority interests............... (16,740) (349) (17,089)
Income tax expense............................. (5,870) (125)(C) (5,995)
Equity income and minority interests, net of
tax......................................... 562 -- 562
-------- ------- --------
Loss from continuing operations................ (10,308) (224) (10,532)
======== ======= ========
BASIC EARNINGS PER SHARE:
Loss per share from continuing operations...... $ (18.23) $ (18.62)(B)
======== ========
Weighted average common shares outstanding
(millions)................................... 565 565
======== ========
DILUTED EARNINGS PER SHARE:
Loss per share from continuing operations...... $ (18.23) $ (18.62)(B)
======== ========
Weighted average common shares outstanding
(millions).................................. 565 565
======== ========
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
GM PRO FORMA TOTAL
HISTORICAL ADJUSTMENTS PRO FORMA
------------ ----------- ---------
SEE NOTE (1)
Net sales and revenue
Automotive sales............................ $163,341 $(1,676)(A) $161,665
Financial services and insurance revenue.... 32,010 -- 32,010
-------- ------- --------
Total net sales and revenue.................... 195,351 (1,676) 193,675
-------- ------- --------
Costs and expenses
Automotive cost of sales.................... 152,115 (1,063)(A) 151,052
Selling, general, and administrative
expense.................................. 11,852 (244)(A) 11,608
Financial services and insurance expense.... 28,057 -- 28,057
Other expenses.............................. 1,584 -- 1,584
-------- ------- --------
Total costs and expenses....................... 193,608 (1,307) 192,301
-------- ------- --------
Operating income............................ 1,743 (369) 1,374
Automotive and other interest expense.......... (2,288) -- (2,288)
Automotive interest income and other
non-operating income........................ 1,400 (3)(A) 1,397
-------- ------- --------
Income from continuing operations before
income taxes, other equity income and
minority interests.......................... 855 (372) 483
Income tax expense (benefit)................... (1,126) (138) (C) (1,264)
Equity income and minority interests, net of
tax......................................... 720 -- 720
-------- ------- --------
Income from continuing operations.............. $ 2,701 $ (234) $ 2,467
======== ======= ========
BASIC EARNINGS PER SHARE:
Earnings per share from continuing operations.. $ 4.78 $ 4.37(B)
======== ========
Weighted average common shares outstanding
(millions).................................. 565 565
======== ========
DILUTED EARNINGS PER SHARE:
Earnings per share from continuing operations.. $ 4.76 $ 4.35(B)
======== ========
Weighted average common shares outstanding
(millions).................................. 567 567
======== ========
The accompanying notes are an integral part of the unaudited Pro Forma Condensed
Consolidated Financial Statements.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(A) Amounts have been derived from the consolidated financial statements and
accounting records of General Motors Corporation using the historical basis
of assets and liabilities and historical results of operations related to
the Allison Transmission business. Certain historical operations of Allison
Transmission were maintained on separate accounting records of the business
unit. While the historical results of operations of Allison Transmission
include general corporate allocations for certain functions historically
provided by GM, such as consolidation accounting, treasury, tax, human
resources, facility maintenance and other services, for the purposes of
these pro forma financial statements no amounts for these general
corporate expenses have been allocated to discontinued operations in the
pro forma adjustments. Allocations have been made for other costs such as
employee pension costs and share based payments to employees based upon a
reasonable and rational allocation method.
(B) Basic earnings per share have been computed by dividing income from
continuing operations by the respective weighted average number of common
shares outstanding during the period. Diluted earnings per share considers
the effect of potential common shares unless the inclusion of the potential
common shares would have an antidilutive effect. The effect of share-based
awards currently held by employees of Allison Transmission has not been
eliminated from the weighted average number of shares outstanding for
purposes of computing the weighted average shares outstanding and the
effects would not be significant.
(C) For all periods presented, the effective tax rate was used.
NOTE:
(1) During the first quarter of 2007, GM changed its income statement
presentation to present costs and expenses of its Financing and Insurance
Operations ("FIO") as a separate line item. In so doing, GM reclassified
FIO's portion of selling, general and administrative expenses and interest
expense to the income statement caption "financial services and insurance
expense". Also, Automotive and other interest expense have been presented
within non-operating income and expenses. Certain reclassifications have
been made to the comparable 2006 financial information for the three months
ended March 31, 2006 and for the years ended December 31, 2006, 2005 and
2004 to conform to the current period presentation.