8-K
General Motors Co (GM)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
___________________
FORM 8-K
___________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2020
___________________
GENERAL MOTORS COMPANY
(Exact name of registrant as specified in its charter)
__________________
| Delaware | 001-34960 | 27-0756180 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | 300 Renaissance Center, | Detroit, | Michigan | 48265 | -3000 | ||
| --- | --- | --- | --- | --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
(313) 667-1500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
__________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | GM | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition
On November 5, 2020 General Motors Company (GM) issued a news release and supplemental materials on the subject of its 2020 third quarter earnings. The news release and supplemental materials are attached as Exhibit 99.1 and Exhibit 99.2.
Charts furnished to securities analysts in connection with GM's 2020 third quarter earnings release are available on GM's website at www.gm.com/investors/earnings-releases.html.
ITEM 9.01 Financial Statements and Exhibits
EXHIBIT
| Exhibit | Description |
|---|---|
| Exhibit 99.1 | News Release DatedNovemberq32020earnings11052020.htm5, 2020 |
| Exhibit 99.2 | Financial Highlights DatedNovembera2020q3consolidatedear.htm5, 2020 |
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
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 hereunto duly authorized.
| GENERAL MOTORS COMPANY (Registrant) | ||
|---|---|---|
| By: | /s/ CHRISTOPHER T. HATTO | |
| Date: November 5, 2020 | Christopher T. Hatto, Vice President, Global Business Solutions and Chief Accounting Officer |
q32020earnings11052020
Exhibit 99.1 THIRD-QUARTER 2020 EARNINGS GM Delivers Income of $4.0B and EBIT-adj. of $5.3B • EPS-diluted of $2.78 and EPS-diluted-adjusted of $2.83 • EBIT-adjusted margin of 14.9 percent driven by a strong product lineup, disciplined pricing and cost actions • Strong automotive liquidity of $37.8 billion; expect to repay revolver balance by year-end Q 3 2020 RESULTS OVERVIEW Net Revenue Income Auto Operating Cash Flow EPS-Diluted* GAAP $35.5B $4.0B $9.9B $2.78 vs. Q3 2019 0% 74% $4.9B 74% EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS-Diluted-adj.* Non-GAAP 14.9% $5.3B $9.1B $2.83 vs. Q3 2019 6.5 pts 78% $5.4B 65% *Includes $0.05 benefit from PSA revaluations. This year, and the third quarter, is a testament to GM’s resilience. We entered the pandemic in a strong position and acted decisively to keep our teams safe, conserve cash and preserve liquidity, all while keeping our critical product programs on track. Now we are well positioned to meet rising customer demand, accelerate our transformation and deliver our vision of a world with zero crashes, zero emissions and zero congestion.” “ – Mary Barra, Chairman & CEO RESULTS DEMONSTRATE RESILIENCE POWERING GM’S ALL-ELECTRIC FUTURE GM’s third-quarter results prove the company can GM is making significant investments in product effectively manage the business through a global development and manufacturing to accelerate progress economy under severe stress. This is a result of its toward an all-electric future. agility, and strong and growing franchises. During the quarter, GM delivered strong earnings and free cash During the quarter, GM announced it will power future flow, while it continued to invest in its EV and AV EVs with five interchangeable drive units and three growth initiatives, launched an all-new portfolio of full- motors, known collectively as Ultium Drive. Ultium size SUVs and maintained leading U.S. full-size truck Drive will help transition GM to an all-electric lineup, and large SUV market share. providing significant advantages in performance, scale, speed to market and manufacturing efficiencies. GM also announced it will be the first automaker to use a wireless battery management system for production electric vehicles. This allows over-the-air updates and eliminates the cost and weight of wiring. In October, the company unveiled the GMC HUMMER EV supertruck, its first EV powered by the Ultium battery system. It will be built at GM’s Factory ZERO, Detroit-Hamtramck Assembly Center, with production GMCGMC HUMMER EVEV beginning in late 2021. From kickoff to production, the LIQUIDITY AND COST SAVINGS UPDATE HUMMER EV represents the quickest vehicle Automotive liquidity was above target, ending the development program in GM’s recent history, an quarter at $37.8 billion. GM repaid $5.2 billion of its example of how the company is accelerating revolving credit facilities during the third quarter, and innovation and increasing its agility. an additional $3.9 billion in October. The company expects to repay the balance by year-end while GM also announced a $2 billion investment in its Spring maintaining a strong cash balance. GM achieved its Hill, Tennessee manufacturing plant, which will enable transformational cost savings target of $4.0 billion the site to transition to produce EVs, joining Factory since 2018, including $200 million in the quarter. GM ZERO and Orion Assembly. The Cadillac LYRIQ will be expects to continue making progress on the target the first EV produced at Spring Hill, and production of range of $4.0 to $4.5 billion through the end of the year. the Cadillac XT5 and XT6 will continue at the facility.
SEGMENT RESULTS (EBIT- ADJUSTED— $B) North America International Cruise GM Financial (EBT) Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 4.4 3.0 0.0 (0.1) (0.2) (0.3) 1.2 0.7 Excluding the $(1.0) billion EBIT-adj. performance was due Cruise received a permit from EBT was positively impacted by impact of the 2019 strike, EBIT- to strong pricing, improved the California DMV to remove high used vehicle prices adj. improved primarily due to mix and the benefits from cost human backup drivers from contributing to gains on sale of continued cost actions and actions. China equity income Cruise AV test vehicles in San off-lease vehicles, stable credit disciplined incentives. GMNA was flat as volume and mix Francisco. Before the end of the performance and lower interest margins were 15 percent. offset unfavorable pricing and year, Cruise expects to deploy expense. regulatory costs. all-electric, driverless vehicles. Sales in the U.S. and China are recovering faster GM FINANCIAL DELIVERS STRONG RESULTS than many people expected, and GM is benefiting GM Financial (GMF) contributed to profitability while from robust customer demand for our new vehicles providing exceptional support to customers and dealers during these challenging times. Since its inception 10 and services, especially our full-size pickups and “ years ago, GMF continues to grow its share of the SUVs. These strong fundamentals and the positive financing business for both retail customers and impact of our transformation and austerity dealers; GMF had a GM U.S. retail penetration rate of 43 measures are helping us to deliver solid earnings, percent during the quarter and also became the generate significant cash and quickly repay the debt number one floorplan provider for GM dealers. Year-to- date GMF has paid $800 million in dividends to GM. we incurred during the early days of the pandemic.” – John Stapleton, Interim CFO GM INTERNATIONAL SALES GROWTH GM’s sales in China in the third quarter grew 12 percent year-over-year as the market continued its recovery. Buick and Cadillac performed strongly, with sales increasing 26 percent and 28 percent, respectively. The Wuling Hong Guang MINI EV became the best-selling EV model in China, and Buick started sales of the VELITE 7 all-electric SUV and VELITE 6 plug-in hybrid electric vehicle in the third quarter. In the next five years, more than 40 percent of GM’s new models in China will be new energy vehicles. 2021 Chevrolet Suburban Z71 In South America, GM sold nearly 123,000 vehicles in the quarter and the Chevrolet Onix was the best-selling RESURGENCE IN U.S. VEHICLE DEMAND vehicle in the region. U.S. sales improved sequentially each month within the quarter, driven by strong sales of crossovers, full-size pickups and large SUVs. The Chevrolet Blazer posted its ACCELERATING INNOVATION best quarter ever and the Cadillac XT6 was up 45 GM and Honda Motor Co., Ltd. signed a non-binding percent compared to last year. Despite tight inventory, memorandum of understanding toward establishing a GM’s large pickup trucks sold well, especially heavy- North American automotive alliance. The scope duty pickups. Through the third quarter, GM’s large includes a range of vehicles to be sold under each pickups gained 1.7 percentage points in retail market company’s brands, and cooperation in purchasing, share, leading the segment with 37.5 percent share (J.D. research and development, and connected services. The Power). GM’s all-new full-size SUVs are in high demand; companies plan to explore vehicle platform-sharing the Chevrolet Tahoe and Suburban, and GMC Yukon possibilities, along with propulsion systems and and Yukon XL gained three percentage points in retail advanced driver-assist features. This alliance would segment share since launching in the second quarter help realize significant cost savings, freeing up (J.D. Power). resources to invest in future mobility opportunities.
MEDIA CONTACTS INVESTOR CONTACT Lauren Langille Michael Heifler GM Finance Communications GM Investor Relations Media 931-398-8191 Investors 313-418-0220 lauren.langille@gm.com michael.heifler@gm.com David Barnas GM Finance Communications Media 248-918-8946 david.barnas@gm.com General Motors (NYSE:GM) is a global company committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at http://www.gm.com. Cautionary Note on Forward-Looking Statements: This press release may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgement about possible future events and are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are beyond our control. Many of these factors are described in our Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
Document
Exhibit 99.2
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
General Motors Company's (GM) non-GAAP measures include: earnings before interest and taxes (EBIT)-adjusted, presented net of noncontrolling interests; earnings before income taxes (EBT)-adjusted for our General Motors Financial Company, Inc. (GM Financial) segment; earnings per share (EPS)-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. GM's calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
EBIT-adjusted EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include, but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business conditions; costs arising from the ignition switch recall and related legal matters; and certain currency devaluations associated with hyperinflationary economies. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item. Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.
EPS-diluted-adjusted EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less adjustments noted above for EBIT-adjusted and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or reversal of significant deferred tax asset valuation allowances.
ETR-adjusted ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and the income tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments. When we provide an expected adjusted effective tax rate, we do not provide an expected effective tax rate because the U.S. GAAP measure may include significant adjustments that are difficult to predict.
ROIC-adjusted ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and other postretirement benefits (OPEB) liabilities; and average automotive net income tax assets during the same period.
Adjusted automotive free cash flow Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. Management actions can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles segment profit (loss) to Net income attributable to stockholders under U.S. GAAP (dollars in millions):
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||
| Operating segments | ||||||||
| GM North America (GMNA) | $ | 4,366 | $ | 3,023 | $ | 6,459 | $ | 7,941 |
| GM International (GMI) | 10 | (65) | (811) | (82) | ||||
| Cruise | (204) | (251) | (627) | (699) | ||||
| GM Financial(a) | 1,207 | 711 | 1,663 | 1,606 | ||||
| Total operating segments | 5,379 | 3,418 | 6,684 | 8,766 | ||||
| Corporate and eliminations(b) | (95) | (452) | (686) | (478) | ||||
| EBIT-adjusted | 5,284 | 2,966 | 5,998 | 8,288 | ||||
| Adjustments | ||||||||
| GMI restructuring(c) | (76) | — | (657) | — | ||||
| Transformation activities(d) | — | (390) | — | (1,541) | ||||
| GM Brazil indirect tax recoveries(e) | — | 123 | — | 1,360 | ||||
| Total adjustments | (76) | (267) | (657) | (181) | ||||
| Automotive interest income | 51 | 129 | 195 | 333 | ||||
| Automotive interest expense | (327) | (206) | (823) | (582) | ||||
| Income tax expense | (887) | (271) | (1,132) | (932) | ||||
| Net income attributable to stockholders(f) | $ | 4,045 | $ | 2,351 | $ | 3,581 | $ | 6,926 |
__________
(a)GM Financial amounts represent EBT-adjusted.
(b)GM's automotive interest income and interest expense, legacy costs from the Opel and Vauxhall businesses and certain other assets in Europe, which are primarily pension costs, corporate expenditures and certain nonsegment-specific revenues and expenses are recorded centrally in Corporate.
(c)These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. The adjustments primarily consist of supplier claims in the three months ended September 30, 2020 and dealer restructurings, asset impairments, inventory provisions, employee separation charges and sales allowances in the nine months ended September 30, 2020 in Australia, New Zealand and Thailand.
(d)These adjustments were excluded because of a strategic decision to accelerate our transformation for the future to strengthen our core business, capitalize on the future of personal mobility and drive significant cost efficiencies. The adjustments primarily consist of supplier-related charges, pension curtailment and other charges in the three months ended September 30, 2019 and accelerated depreciation, supplier-related charges and pension curtailment and other charges in the nine months September 30, 2019.
(e)These adjustments were excluded because of the unique events associated with decisions rendered by the Superior Judicial Court of Brazil resulting in retrospective recoveries of indirect taxes.
(f)Net of Net loss attributable to noncontrolling interests.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted (dollars in millions):
| Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | March 31, | December 31, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2019 | 2018 | |||||||||
| Net income (loss) attributable to stockholders | $ | 4,045 | $ | 2,351 | $ | (758) | $ | 2,418 | $ | 294 | $ | 2,157 | $ | (194) | $ | 2,044 |
| Income tax expense (benefit) | 887 | 271 | (112) | 524 | 357 | 137 | (163) | (611) | ||||||||
| Automotive interest expense | 327 | 206 | 303 | 195 | 193 | 181 | 200 | 185 | ||||||||
| Automotive interest income | (51) | (129) | (61) | (106) | (83) | (98) | (96) | (117) | ||||||||
| Adjustments | ||||||||||||||||
| GMI restructuring(a) | 76 | — | 92 | — | 489 | — | — | — | ||||||||
| Transformation activities(b) | — | 390 | — | 361 | — | 790 | 194 | 1,327 | ||||||||
| GM Brazil indirect tax recoveries(c) | — | (123) | — | (380) | — | (857) | — | — | ||||||||
| FAW-GM divestiture(d) | — | — | — | — | — | — | 164 | — | ||||||||
| Total adjustments | 76 | 267 | 92 | (19) | 489 | (67) | 358 | 1,327 | ||||||||
| EBIT (loss)-adjusted | $ | 5,284 | $ | 2,966 | $ | (536) | $ | 3,012 | $ | 1,250 | $ | 2,310 | $ | 105 | $ | 2,828 |
________
(a)These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. These adjustments primarily consist of supplier claims in the three months ended September 30, 2020, inventory provisions in the three months ended June 30, 2020 and asset impairments, dealer restructurings, employee separation charges and sales allowances in the three months ended March 31, 2020 in Australia, New Zealand and Thailand.
(b)These adjustments were excluded because of a strategic decision to accelerate our transformation for the future to strengthen our core business, capitalize on the future of personal mobility and drive significant cost efficiencies. The adjustments primarily consist of supplier-related charges and pension curtailment and other charges in the three months ended September 30, 2019, supplier-related charges and accelerated depreciation in the three months ended June 30, 2019, accelerated depreciation in the three months ended March 31, 2019, accelerated depreciation and employee separation charges in the three months ended December 31, 2019 and employee separation charges and accelerated depreciation in the three months ended December 31, 2018.
(c)These adjustments were excluded because of the unique events associated with decisions rendered by the Superior Judicial Court of Brazil resulting in retrospective recoveries of indirect taxes.
(d)This adjustment was excluded because we divested our joint venture FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM), as a result of a strategic decision by both shareholders, allowing us to focus our resources on opportunities expected to deliver higher returns.
The following table reconciles diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts):
| Three Months Ended | Nine Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
| Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||
| Diluted earnings per common share | $ | 4,005 | $ | 2.78 | $ | 2,313 | $ | 1.60 | $ | 3,446 | $ | 2.40 | $ | 6,813 | $ | 4.74 |
| Adjustments(a) | 76 | 0.05 | 267 | 0.18 | 657 | 0.46 | 181 | 0.12 | ||||||||
| Tax effect on adjustment(b) | (14) | — | (93) | (0.06) | (82) | (0.06) | (134) | (0.09) | ||||||||
| Tax adjustment(c) | — | — | — | — | 236 | 0.16 | — | — | ||||||||
| EPS-diluted-adjusted | $ | 4,067 | $ | 2.83 | $ | 2,487 | $ | 1.72 | $ | 4,257 | $ | 2.96 | $ | 6,860 | $ | 4.77 |
________
(a)Refer to the reconciliation of segment profit (loss) to Net income attributable to stockholders under U.S. GAAP for adjustment details.
(b)The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(c)This adjustment consists of tax expense related to the establishment of a valuation allowance against deferred tax assets in Australia and New Zealand. This adjustment was excluded because significant impacts of valuation allowances are not considered part of our core operations.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted (dollars in millions):
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||||||||
| Income before income taxes | Income tax expense | Effective tax rate | Income before income taxes | Income tax expense | Effective tax rate | Income before income taxes | Income tax expense | Effective tax rate | Income before income taxes | Income tax expense | Effective tax rate | |||||||||||||
| Effective tax rate | $ | 4,905 | $ | 887 | 18.1 | % | $ | 2,582 | $ | 271 | 10.5 | % | $ | 4,656 | $ | 1,132 | 24.3 | % | $ | 7,791 | $ | 932 | 12.0 | % |
| Adjustments(a) | 76 | 14 | 268 | 93 | 657 | 82 | 185 | 134 | ||||||||||||||||
| Tax adjustment(b) | — | — | (236) | — | ||||||||||||||||||||
| ETR-adjusted | $ | 4,981 | $ | 901 | 18.1 | % | $ | 2,850 | $ | 364 | 12.8 | % | $ | 5,313 | $ | 978 | 18.4 | % | $ | 7,976 | $ | 1,066 | 13.4 | % |
________
(a)Refer to the reconciliation of segment profit (loss) to Net income attributable to stockholders under U.S. GAAP for adjustment details. Net income attributable to noncontrolling interests included for these adjustments is insignificant in the three and nine months ended September 30, 2019. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(b)Refer to the reconciliation of diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted within the previous section for adjustment details.
We define return on equity (ROE) as Net income (loss) attributable to stockholders for the trailing four quarters divided by average equity for the same period. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollars in billions):
| Four Quarters Ended | ||||||
|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | |||||
| Net income (loss) attributable to stockholders | $ | 3.4 | $ | 9.0 | ||
| Average equity(a) | $ | 42.5 | $ | 42.8 | ||
| ROE | 8.0 | % | 20.9 | % |
________
(a)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income (loss) attributable to stockholders.
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
| Four Quarters Ended | ||||||
|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | |||||
| EBIT (loss)-adjusted(a) | $ | 6.1 | $ | 11.1 | ||
| Average equity(b) | $ | 42.5 | $ | 42.8 | ||
| Add: Average automotive debt and interest liabilities (excluding finance leases) | 27.0 | 14.8 | ||||
| Add: Average automotive net pension & OPEB liability | 17.4 | 16.5 | ||||
| Less: Average automotive and other net income tax asset | (24.1) | (23.3) | ||||
| ROIC-adjusted average net assets | $ | 62.8 | $ | 50.8 | ||
| ROIC-adjusted | 9.7 | % | 21.9 | % |
________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted.
(b)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT (loss)-adjusted.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net automotive cash provided by operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||
| Net automotive cash provided by operating activities | $ | 9,935 | $ | 5,017 | $ | 2,276 | $ | 6,623 |
| Less: Capital expenditures | (980) | (1,351) | (3,292) | (4,779) | ||||
| Add: GMI restructuring | 167 | — | 251 | 9 | ||||
| Add: Transformation activities | — | 158 | — | 645 | ||||
| Less: GM Brazil indirect tax recoveries | — | (60) | (58) | (76) | ||||
| Adjusted automotive free cash flow | $ | 9,122 | $ | 3,764 | $ | (823) | $ | 2,422 |
The following tables summarize key financial information by segment (dollars in millions):
| GMNA | GMI | Corporate | Eliminations | Total<br>Automotive | Cruise | GM<br>Financial | Reclassifications/Eliminations | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, 2020 | ||||||||||||||||||
| Net sales and revenue | $ | 29,128 | $ | 2,735 | $ | 203 | $ | 32,066 | $ | 26 | $ | 3,421 | $ | (33) | $ | 35,480 | ||
| Expenditures for property | $ | 841 | $ | 138 | $ | 1 | $ | — | $ | 980 | $ | 4 | $ | 8 | $ | — | $ | 992 |
| Depreciation and amortization | $ | 1,182 | $ | 146 | $ | 5 | $ | — | $ | 1,333 | $ | 11 | $ | 1,814 | $ | — | $ | 3,158 |
| Impairment charges | $ | — | $ | 4 | $ | — | $ | — | $ | 4 | $ | — | $ | — | $ | — | $ | 4 |
| Equity income(a) | $ | 4 | $ | 259 | $ | — | $ | — | $ | 263 | $ | — | $ | 46 | $ | — | $ | 309 |
| GMNA | GMI | Corporate | Eliminations | Total<br>Automotive | Cruise | GM<br>Financial | Reclassifications/Eliminations | Total | ||||||||||
| Three Months Ended September 30, 2019 | ||||||||||||||||||
| Net sales and revenue | $ | 27,971 | $ | 3,794 | $ | 52 | $ | 31,817 | $ | 25 | $ | 3,659 | $ | (28) | $ | 35,473 | ||
| Expenditures for property | $ | 1,122 | $ | 229 | $ | — | $ | — | $ | 1,351 | $ | 16 | $ | 9 | $ | — | $ | 1,376 |
| Depreciation and amortization | $ | 1,325 | $ | 133 | $ | 11 | $ | — | $ | 1,469 | $ | 7 | $ | 1,832 | $ | — | $ | 3,308 |
| Impairment charges | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 1 |
| Equity income (loss)(a) | $ | 3 | $ | 279 | $ | (6) | $ | — | $ | 276 | $ | — | $ | 39 | $ | — | $ | 315 |
| GMNA | GMI | Corporate | Eliminations | Total<br>Automotive | Cruise | GM<br>Financial | Reclassifications/Eliminations | Total | ||||||||||
| Nine Months Ended September 30, 2020 | ||||||||||||||||||
| Net sales and revenue | $ | 66,563 | $ | 7,692 | $ | 321 | $ | 74,576 | $ | 79 | $ | 10,405 | $ | (93) | $ | 84,967 | ||
| Expenditures for property | $ | 2,703 | $ | 574 | $ | 15 | $ | — | $ | 3,292 | $ | 10 | $ | 26 | $ | — | $ | 3,328 |
| Depreciation and amortization | $ | 3,536 | $ | 461 | $ | 20 | $ | — | $ | 4,017 | $ | 30 | $ | 5,567 | $ | — | $ | 9,614 |
| Impairment charges | $ | 20 | $ | 101 | $ | — | $ | — | $ | 121 | $ | — | $ | — | $ | — | $ | 121 |
| Equity income(a) | $ | 15 | $ | 261 | $ | — | $ | — | $ | 276 | $ | — | $ | 113 | $ | — | $ | 389 |
| GMNA | GMI | Corporate | Eliminations | Total<br>Automotive | Cruise | GM<br>Financial | Reclassifications/Eliminations | Total | ||||||||||
| Nine Months Ended September 30, 2019 | ||||||||||||||||||
| Net sales and revenue | $ | 83,660 | $ | 11,691 | $ | 152 | $ | 95,503 | $ | 75 | $ | 10,918 | $ | (85) | $ | 106,411 | ||
| Expenditures for property | $ | 4,091 | $ | 687 | $ | 1 | $ | — | $ | 4,779 | $ | 39 | $ | 34 | $ | — | $ | 4,852 |
| Depreciation and amortization | $ | 4,803 | $ | 379 | $ | 36 | $ | — | $ | 5,218 | $ | 16 | $ | 5,579 | $ | — | $ | 10,813 |
| Impairment charges | $ | 15 | $ | 4 | $ | — | $ | — | $ | 19 | $ | — | $ | — | $ | — | $ | 19 |
| Equity income (loss)(a) | $ | 7 | $ | 886 | $ | (19) | $ | — | $ | 874 | $ | — | $ | 126 | $ | — | $ | 1,000 |
________
(a)Includes Automotive China equity income of $262 million and $282 million in the three months ended September 30, 2020 and 2019 and $264 million and $893 million in the nine months ended September 30, 2020 and 2019.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Vehicle Sales
GM presents both wholesale and total vehicle sales data to assist in the analysis of our revenue and our market share. Cuba, Iran, North Korea, Sudan and Syria are subject to broad economic sanctions. Accordingly these countries are excluded from industry sales data and the corresponding calculation of GM's market share.
Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. Government and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to GM's revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the nine months ended September 30, 2020, 30.0% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |
| GMNA | 799 | 801 | 1,905 | 2,530 |
| GMI | 166 | 232 | 447 | 727 |
| Total | 965 | 1,033 | 2,352 | 3,257 |
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales, such as sales to large and small businesses, governments, and daily rental car companies; and (3) vehicles used by dealers in their businesses, including courtesy transportation vehicles. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our percentage ownership interest in the joint venture. Certain joint venture agreements in China allow for the contractual right to report vehicle sales of non-GM trademarked vehicles by those joint ventures, which are included in the total vehicle sales we report for China. While total vehicle sales data does not correlate directly to the revenue GM recognizes during a particular period, we believe it is indicative of the underlying demand for GM vehicles. Total vehicle sales data represents management's good faith estimate based on sales reported by GM's dealers, distributors, and joint ventures, commercially available data sources such as registration and insurance data, and internal estimates and forecasts when other data is not available.
The following table summarizes total vehicle sales by geographic region (vehicles in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |
| United States | ||||
| Chevrolet – Cars | 55 | 75 | 152 | 265 |
| Chevrolet – Trucks | 221 | 249 | 607 | 695 |
| Chevrolet – Crossovers | 174 | 183 | 458 | 500 |
| Cadillac | 33 | 40 | 87 | 116 |
| Buick | 49 | 51 | 119 | 158 |
| GMC | 133 | 141 | 353 | 417 |
| Total United States | 665 | 739 | 1,776 | 2,151 |
| Canada, Mexico and Other | 100 | 124 | 273 | 363 |
| Total North America | 765 | 863 | 2,049 | 2,514 |
| Asia/Pacific, Middle East and Africa | ||||
| Chevrolet | 200 | 209 | 567 | 653 |
| Wuling | 278 | 225 | 725 | 742 |
| Buick | 252 | 200 | 595 | 623 |
| Baojun | 100 | 123 | 276 | 428 |
| Cadillac | 67 | 53 | 155 | 167 |
| Other | 8 | 18 | 37 | 61 |
| Total Asia/Pacific, Middle East and Africa | 905 | 828 | 2,355 | 2,674 |
| South America(a) | 123 | 176 | 312 | 493 |
| Total in GM markets | 1,793 | 1,867 | 4,716 | 5,681 |
| Total Europe | — | 1 | — | 3 |
| Total Worldwide | 1,793 | 1,868 | 4,716 | 5,684 |
_______
(a)Primarily Chevrolet.
The vehicle sales at GM's China joint ventures presented in the following table are included in the preceding vehicle sales table (vehicles in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |
| SAIC General Motors Sales Co., Ltd. | 395 | 348 | 952 | 1,102 |
| SAIC GM Wuling Automobile Co., Ltd. | 376 | 342 | 995 | 1,155 |
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||
| Market Share | ||||||||
| United States – Cars | 7.0 | % | 7.3 | % | 7.0 | % | 8.6 | % |
| United States – Trucks | 29.8 | % | 30.7 | % | 30.1 | % | 29.8 | % |
| United States – Crossovers | 13.8 | % | 13.9 | % | 13.9 | % | 13.8 | % |
| Total United States | 16.6 | % | 16.6 | % | 16.7 | % | 16.4 | % |
| Total North America | 15.9 | % | 16.0 | % | 16.2 | % | 15.8 | % |
| Total Asia/Pacific, Middle East and Africa | 8.1 | % | 7.6 | % | 8.0 | % | 7.7 | % |
| Total South America | 14.3 | % | 15.5 | % | 14.8 | % | 15.4 | % |
| Total GM Market | 10.6 | % | 10.7 | % | 10.7 | % | 10.6 | % |
| Total Worldwide | 8.5 | % | 8.5 | % | 8.6 | % | 8.4 | % |
| United States fleet sales as a percentage of retail vehicle sales | 12.2 | % | 19.5 | % | 17.5 | % | 22.5 | % |
| North America capacity two-shift utilization | 112.3 | % | 94.0 | % | 85.1 | % | 99.5 | % |
General Motors Company and Subsidiaries
Combining Income Statement Information
(In millions) (Unaudited)
| Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | |||||||||||||||||||||||||||||||||
| Net sales and revenue | ||||||||||||||||||||||||||||||||||||||||||
| Automotive | $ | 32,066 | $ | 26 | $ | — | $ | (25) | $ | 32,067 | $ | 31,817 | $ | 25 | $ | — | $ | (25) | $ | 31,817 | ||||||||||||||||||||||
| GM Financial | — | — | 3,421 | (8) | 3,413 | — | — | 3,659 | (3) | 3,656 | ||||||||||||||||||||||||||||||||
| Total net sales and revenue | 32,066 | 26 | 3,421 | (33) | 35,480 | 31,817 | 25 | 3,659 | (28) | 35,473 | ||||||||||||||||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||||||||||||||||||
| Automotive and other cost of sales | 26,980 | 190 | — | (1) | 27,169 | 27,919 | 256 | — | (1) | 28,174 | ||||||||||||||||||||||||||||||||
| GM Financial interest, operating and other expenses | — | — | 2,260 | (1) | 2,259 | — | — | 2,987 | — | 2,987 | ||||||||||||||||||||||||||||||||
| Automotive and other selling, general and administrative expense | 1,565 | 63 | — | — | 1,628 | 1,969 | 39 | — | — | 2,008 | ||||||||||||||||||||||||||||||||
| Total costs and expenses | 28,545 | 253 | 2,260 | (2) | 31,056 | 29,888 | 295 | 2,987 | (1) | 33,169 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 3,521 | (227) | 1,161 | (31) | 4,424 | 1,929 | (270) | 672 | (27) | 2,304 | ||||||||||||||||||||||||||||||||
| Automotive interest expense | 333 | — | — | (6) | 327 | 209 | — | — | (3) | 206 | ||||||||||||||||||||||||||||||||
| Interest income and other non-operating income, net | 471 | 6 | — | 22 | 499 | 128 | 16 | — | 25 | 169 | ||||||||||||||||||||||||||||||||
| Equity income | 263 | — | 46 | — | 309 | 276 | — | 39 | — | 315 | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 3,922 | $ | (221) | $ | 1,207 | $ | (3) | 4,905 | $ | 2,124 | $ | (254) | $ | 711 | $ | 1 | 2,582 | ||||||||||||||||||||||||
| Income tax expense | 887 | 271 | ||||||||||||||||||||||||||||||||||||||||
| Net income | 4,018 | 2,311 | ||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 27 | 40 | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to stockholders | $ | 4,045 | $ | 2,351 | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 4,005 | $ | 2,313 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||
| Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | |||||||||||||||||||||||||||||||||
| Net sales and revenue | ||||||||||||||||||||||||||||||||||||||||||
| Automotive | $ | 74,576 | $ | 79 | $ | (75) | $ | 74,580 | $ | 95,503 | $ | 75 | $ | — | $ | (75) | $ | 95,503 | ||||||||||||||||||||||||
| GM Financial | — | — | 10,405 | (18) | 10,387 | — | — | 10,918 | (10) | 10,908 | ||||||||||||||||||||||||||||||||
| Total net sales and revenue | 74,576 | 79 | 10,405 | (93) | 84,967 | 95,503 | 75 | 10,918 | (85) | 106,411 | ||||||||||||||||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||||||||||||||||||
| Automotive and other cost of sales | 66,779 | 561 | — | (1) | 67,339 | 83,990 | 743 | — | (3) | 84,730 | ||||||||||||||||||||||||||||||||
| GM Financial interest, operating and other expenses | — | — | 8,855 | (2) | 8,853 | — | — | 9,438 | (1) | 9,437 | ||||||||||||||||||||||||||||||||
| Automotive and other selling, general and administrative expense | 4,718 | 190 | — | — | 4,908 | 6,104 | 105 | — | — | 6,209 | ||||||||||||||||||||||||||||||||
| Total costs and expenses | 71,497 | 751 | 8,855 | (3) | 81,100 | 90,094 | 848 | 9,438 | (4) | 100,376 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 3,079 | (672) | 1,550 | (90) | 3,867 | 5,409 | (773) | 1,480 | (81) | 6,035 | ||||||||||||||||||||||||||||||||
| Automotive interest expense | 838 | — | — | (15) | 823 | 588 | — | — | (6) | 582 | ||||||||||||||||||||||||||||||||
| Interest income and other non-operating income, net | 1,131 | 8 | — | 84 | 1,223 | 1,216 | 61 | — | 61 | 1,338 | ||||||||||||||||||||||||||||||||
| Equity income | 276 | — | 113 | — | 389 | 874 | — | 126 | — | 1,000 | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 3,648 | $ | (664) | $ | 1,663 | $ | 9 | 4,656 | $ | 6,911 | $ | (712) | $ | 1,606 | $ | (14) | 7,791 | ||||||||||||||||||||||||
| Income tax expense | 1,132 | 932 | ||||||||||||||||||||||||||||||||||||||||
| Net income | 3,524 | 6,859 | ||||||||||||||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 57 | 67 | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to stockholders | $ | 3,581 | $ | 6,926 | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 3,446 | $ | 6,813 |
General Motors Company and Subsidiaries
Basic and Diluted Earnings per Share
(Unaudited)
The following table summarizes basic and diluted earnings per share (in millions, except per share amounts):
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||
| Basic earnings per share | ||||||||
| Net income attributable to stockholders | $ | 4,045 | $ | 2,351 | $ | 3,581 | $ | 6,926 |
| Less: cumulative dividends on subsidiary preferred stock | (40) | (38) | (135) | (113) | ||||
| Net income attributable to common stockholders | $ | 4,005 | $ | 2,313 | $ | 3,446 | $ | 6,813 |
| Weighted-average common shares outstanding | 1,432 | 1,428 | 1,432 | 1,422 | ||||
| Basic earnings per common share | $ | 2.80 | $ | 1.62 | $ | 2.41 | $ | 4.79 |
| Diluted earnings per share | ||||||||
| Net income attributable to common stockholders – diluted | $ | 4,005 | $ | 2,313 | $ | 3,446 | $ | 6,813 |
| Weighted-average common shares outstanding – diluted | 1,439 | 1,442 | 1,439 | 1,439 | ||||
| Diluted earnings per common share | $ | 2.78 | $ | 1.60 | $ | 2.40 | $ | 4.74 |
| Potentially dilutive securities(a) | 31 | 7 | 31 | 7 |
__________
(a)Potentially dilutive securities attributable to outstanding stock options and Restricted Stock Units were excluded from the computation of diluted EPS because the securities would have had an antidilutive effect.
General Motors Company and Subsidiaries
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)(a)
| September 30, 2020 | December 31, 2019 | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | |||||||||||
| ASSETS | ||||||||||||||||||||
| Current Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 21,694 | $ | 539 | $ | 4,705 | $ | — | $ | 26,939 | $ | 13,409 | $ | 2,349 | $ | 3,311 | $ | — | $ | 19,069 |
| Marketable debt securities | 8,527 | 1,462 | — | (26) | 9,962 | 3,908 | 320 | — | (54) | 4,174 | ||||||||||
| Accounts and notes receivable, net(b) | 9,624 | 3 | 1,139 | (828) | 9,939 | 6,614 | 2 | 1,004 | (823) | 6,797 | ||||||||||
| GM Financial receivables, net(c) | — | — | 24,962 | (400) | 24,562 | — | — | 27,101 | (500) | 26,601 | ||||||||||
| Inventories | 10,934 | 2 | — | (1) | 10,934 | 10,398 | — | — | — | 10,398 | ||||||||||
| Other current assets | 1,791 | 27 | 5,026 | (3) | 6,841 | 2,517 | 16 | 5,424 | (4) | 7,953 | ||||||||||
| Total current assets | 52,571 | 2,032 | 35,832 | (1,259) | 89,177 | 36,846 | 2,687 | 36,841 | (1,383) | 74,992 | ||||||||||
| Non-current Assets | ||||||||||||||||||||
| GM Financial receivables, net(c) | — | — | 30,191 | — | 30,191 | — | — | 26,372 | (17) | 26,355 | ||||||||||
| Equity in net assets of nonconsolidated affiliates | 6,561 | — | 1,485 | — | 8,046 | 7,107 | — | 1,455 | — | 8,562 | ||||||||||
| Property, net | 36,666 | 130 | 193 | — | 36,989 | 38,374 | 150 | 226 | — | 38,750 | ||||||||||
| Goodwill and intangible assets, net | 3,184 | 724 | 1,337 | — | 5,245 | 3,348 | 634 | 1,355 | — | 5,337 | ||||||||||
| Equipment on operating leases, net | — | — | 39,358 | — | 39,358 | — | — | 42,055 | — | 42,055 | ||||||||||
| Deferred income taxes | 23,660 | 537 | (227) | — | 23,970 | 24,582 | 345 | (287) | — | 24,640 | ||||||||||
| Other assets | 5,598 | 392 | 757 | (53) | 6,695 | 6,123 | 413 | 863 | (53) | 7,346 | ||||||||||
| Total non-current assets | 75,670 | 1,783 | 73,094 | (53) | 150,494 | 79,533 | 1,542 | 72,040 | (70) | 153,045 | ||||||||||
| Total Assets | $ | 128,241 | $ | 3,815 | $ | 108,926 | $ | (1,311) | $ | 239,671 | $ | 116,380 | $ | 4,230 | $ | 108,881 | $ | (1,454) | $ | 228,037 |
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Current Liabilities | ||||||||||||||||||||
| Accounts payable (principally trade)(b) | $ | 20,878 | $ | 65 | $ | 804 | $ | (832) | $ | 20,914 | $ | 21,101 | $ | 109 | $ | 644 | $ | (836) | $ | 21,018 |
| Short-term debt and current portion of long-term debt | ||||||||||||||||||||
| Automotive (c) | 2,671 | — | — | (400) | 2,271 | 2,397 | — | — | (500) | 1,897 | ||||||||||
| GM Financial | — | — | 33,502 | — | 33,502 | — | — | 35,503 | — | 35,503 | ||||||||||
| Accrued liabilities | 19,304 | 162 | 4,453 | (4) | 23,916 | 22,493 | 82 | 3,916 | (4) | 26,487 | ||||||||||
| Total current liabilities | 42,853 | 228 | 38,759 | (1,237) | 80,603 | 45,990 | 192 | 40,064 | (1,341) | 84,905 | ||||||||||
| Non-current Liabilities | ||||||||||||||||||||
| Long-term debt | ||||||||||||||||||||
| Automotive | 26,473 | — | — | — | 26,473 | 12,507 | — | — | (18) | 12,489 | ||||||||||
| GM Financial | — | — | 55,320 | — | 55,320 | — | — | 53,435 | — | 53,435 | ||||||||||
| Postretirement benefits other than pensions | 5,746 | — | — | — | 5,746 | 5,935 | — | — | — | 5,935 | ||||||||||
| Pensions | 11,093 | — | 4 | — | 11,097 | 12,166 | — | 4 | — | 12,170 | ||||||||||
| Other liabilities | 10,143 | 524 | 1,809 | (53) | 12,424 | 10,518 | 505 | 2,176 | (53) | 13,146 | ||||||||||
| Total non-current liabilities | 53,455 | 524 | 57,133 | (53) | 111,060 | 41,126 | 505 | 55,615 | (71) | 97,175 | ||||||||||
| Total Liabilities | 96,308 | 752 | 95,892 | (1,290) | 191,663 | 87,114 | 697 | 95,679 | (1,410) | 182,080 | ||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Equity | ||||||||||||||||||||
| Common stock, $0.01 par value | 14 | — | — | — | 14 | 14 | — | — | — | 14 | ||||||||||
| Preferred stock, $0.01 par value | — | — | — | — | — | — | — | — | — | — | ||||||||||
| Additional paid-in capital(d) | 26,160 | 70 | 1,730 | (1,813) | 26,148 | 26,095 | 50 | 1,283 | (1,354) | 26,074 | ||||||||||
| Retained earnings | 15,215 | 1,085 | 12,843 | (9) | 29,134 | 12,303 | 1,566 | 13,013 | (22) | 26,860 | ||||||||||
| Accumulated other comprehensive loss | (10,416) | — | (1,539) | — | (11,955) | (10,062) | — | (1,094) | — | (11,156) | ||||||||||
| Total stockholders’ equity | 30,973 | 1,155 | 13,034 | (1,822) | 43,341 | 28,348 | 1,617 | 13,202 | (1,376) | 41,792 | ||||||||||
| Noncontrolling interests(d) | 960 | 1,908 | — | 1,799 | 4,667 | 918 | 1,916 | — | 1,331 | 4,165 | ||||||||||
| Total Equity | 31,933 | 3,063 | 13,034 | (22) | 48,008 | 29,266 | 3,533 | 13,202 | (43) | 45,957 | ||||||||||
| Total Liabilities and Equity | $ | 128,241 | $ | 3,815 | $ | 108,926 | $ | (1,311) | $ | 239,671 | $ | 116,380 | $ | 4,230 | $ | 108,881 | $ | (1,454) | $ | 228,037 |
_________
(a)Amounts may not sum due to rounding.
(b)Eliminations primarily include GM Financial accounts receivable of $567 million offset by Automotive accounts payable and Automotive accounts receivable of $235 million offset by GM Financial accounts payable at September 30, 2020 and GM Financial accounts receivable of $678 million offset by Automotive accounts payable and Automotive accounts receivable of $78 million offset by GM Financial accounts payable at December 31, 2019.
(c)Eliminations include GM Financial loan receivable of $400 million and $517 million offset by an Automotive loan payable at September 30, 2020 and December 31, 2019.
(d)Primarily reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A, B and C. The preferred stock is classified as noncontrolling interests in our condensed consolidated balance sheet.
General Motors Company and Subsidiaries
Combining Cash Flow Information
(In millions) (Unaudited)(a)
| Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | Cruise | GM Financial | Reclassifications/Eliminations | Combined | |||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Net income (loss) | $ | 2,744 | $ | (472) | $ | 1,244 | $ | 9 | $ | 3,524 | $ | 6,192 | $ | (519) | $ | 1,201 | $ | (15) | $ | 6,859 |
| Depreciation and impairment of Equipment on operating leases, net | 3 | — | 5,515 | — | 5,518 | 48 | — | 5,525 | — | 5,573 | ||||||||||
| Depreciation, amortization and impairment charges on Property, net | 4,135 | 30 | 53 | — | 4,217 | 5,189 | 16 | 54 | — | 5,259 | ||||||||||
| Foreign currency remeasurement and transaction gains | 52 | — | (2) | — | 50 | (164) | — | (6) | — | (170) | ||||||||||
| Undistributed earnings of nonconsolidated affiliates, net | 250 | — | (113) | — | 137 | 370 | — | (126) | — | 243 | ||||||||||
| Pension contributions and OPEB payments | (610) | — | — | — | (610) | (789) | — | — | — | (789) | ||||||||||
| Pension and OPEB income, net | (754) | — | 1 | — | (754) | (352) | — | 1 | — | (351) | ||||||||||
| Provision (benefit) for deferred taxes | 678 | (192) | 214 | — | 700 | 95 | (193) | 332 | — | 234 | ||||||||||
| Change in other operating assets and liabilities(b)(c)(d) | (4,221) | 66 | (912) | 2,263 | (2,805) | (3,964) | 134 | (676) | (802) | (5,310) | ||||||||||
| Net cash provided by (used in) operating activities | 2,276 | (569) | 5,998 | 2,272 | 9,977 | 6,623 | (562) | 6,304 | (817) | 11,548 | ||||||||||
| Cash flows from investing activities | ||||||||||||||||||||
| Expenditures for property | (3,292) | (10) | (26) | — | (3,328) | (4,779) | (39) | (34) | — | (4,852) | ||||||||||
| Available-for-sale marketable securities, acquisitions | (9,269) | (2,921) | — | — | (12,190) | (2,077) | (1,053) | — | — | (3,130) | ||||||||||
| Available-for-sale marketable securities, liquidations | 5,260 | 1,776 | — | (18) | 7,018 | 2,112 | 514 | — | (39) | 2,587 | ||||||||||
| Purchases of finance receivables, net(b)(c) | — | — | (22,419) | 125 | (22,294) | — | — | (20,466) | 1,438 | (19,027) | ||||||||||
| Principal collections and recoveries on finance receivables(b)(c) | — | — | 17,932 | (3,310) | 14,622 | — | — | 17,733 | (645) | 17,088 | ||||||||||
| Purchases of leased vehicles, net | — | — | (10,468) | — | (10,468) | — | — | (12,488) | — | (12,488) | ||||||||||
| Proceeds from termination of leased vehicles | — | — | 9,937 | — | 9,937 | — | — | 9,982 | — | 9,983 | ||||||||||
| Other investing activities(e) | 27 | (71) | 3 | (75) | (116) | (538) | — | (3) | 689 | 148 | ||||||||||
| Net cash used in investing activities | (7,273) | (1,227) | (5,040) | (3,278) | (16,819) | (5,283) | (578) | (5,275) | 1,443 | (9,691) | ||||||||||
| Cash flows from financing activities | ||||||||||||||||||||
| Net increase (decrease) in short-term debt | (2) | — | 579 | 3 | 580 | 729 | — | 27 | — | 756 | ||||||||||
| Proceeds from issuance of debt (original maturities greater than three months) | 21,246 | — | 43,685 | — | 64,931 | 1,159 | — | 26,676 | — | 27,835 | ||||||||||
| Payments on debt (original maturities greater than three months) | (6,704) | — | (44,100) | 145 | (50,659) | (447) | — | (28,985) | — | (29,432) | ||||||||||
| Proceeds from issuance of preferred stock(e) | — | — | 492 | — | 492 | — | 1,150 | — | (687) | 463 | ||||||||||
| Dividends paid(d) | (547) | (16) | (890) | 800 | (653) | (1,656) | (47) | (91) | 2 | (1,792) | ||||||||||
| Other financing activities | (457) | 3 | (135) | 55 | (532) | (127) | (3) | (102) | 56 | (175) | ||||||||||
| Net cash provided by (used in) financing activities | 13,537 | (14) | (370) | 1,005 | 14,159 | (344) | 1,100 | (2,475) | (628) | (2,345) | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (265) | — | (140) | — | (404) | (88) | — | (20) | — | (109) | ||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 8,273 | (1,809) | 448 | — | 6,913 | 909 | (39) | (1,466) | — | (597) | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 13,487 | 2,355 | 7,102 | — | 22,943 | 13,762 | 2,291 | 7,443 | — | 23,496 | ||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 21,760 | $ | 545 | $ | 7,551 | $ | — | $ | 29,856 | $ | 14,670 | $ | 2,251 | $ | 5,978 | $ | — | $ | 22,899 |
_________
(a)Amounts may not sum due to rounding.
(b)Includes reclassifications of $2.9 billion and $732 million in the nine months ended September 30, 2020 and 2019 for purchases/collections of wholesale finance receivables resulting from vehicles sold by GM to dealers that have arranged their inventory floor plan financing through GM Financial.
(c)Eliminations include $125 million and $706 million in Purchases of finance receivables, net in the nine months ended September 30, 2020 and 2019; and $372 million and $645 million in Principal collections and recoveries on finance receivables in the nine months ended September 30, 2020 and 2019 primarily related to the re-timing of cash receipts and payments between Automotive and GM Financial.
(d)Eliminations include dividends issued by GM Financial to Automotive.
(e)Eliminations include $689 million in the nine months ended September 30, 2019 primarily for Automotive cash injections in Cruise, inclusive of our investments of $687 million in Cruise Preferred Shares.
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