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) August 1, 2019
___________________
GENERAL MOTORS COMPANY
(Exact name of registrant as specified in its charter)
__________________
Delaware (State or other jurisdiction of incorporation) | 001-34960 (Commission File Number) | 27-0756180 (I.R.S. Employer Identification No.) | |
300 Renaissance Center, Detroit, Michigan (Address of principal executive offices) | 48265-3000 (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 | 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 August 1, 2019 General Motors Company (GM) issued a news release and supplemental materials on the subject of its 2019 second 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 2019 second 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 | |
Exhibit 99.2 | |
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: August 1, 2019 | Christopher T. Hatto, Vice President, Controller and Chief Accounting Officer | |
Exhibit 99.1 SECOND-QUARTER 2019 EARNINGS GM Reports Income of $2.4 Billion and EBIT-adjusted of $3.0 Billion • Strong North America EBIT-adj. margin of 10.7%, driven by the successful rollout of full-size light-duty pickup trucks. • GM’s all-new heavy-duty pickups began shipping at the end of Q2 with growth potential throughout Q3 and Q4. • Significant progress on transformational cost initiatives with $1.1 billion in savings achieved year-to-date. Q2 2019 RESULTS OVERVIEW Net Revenue Income Auto Operating Cash Flow EPS-Diluted GAAP $36.1 B $2.4 B $3.8 B $1.66 vs. Q2 2018 (1.9)% 1.6% $(0.2) B Equal EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS-Diluted-adj. Non-GAAP 8.4% $3.0 B $2.5 B $1.64 vs. Q2 2018 (0.3) pts (5.6)% $(0.1) B (9.4)% EPS-diluted and EPS-diluted-adj. includes $(0.01) from Lyft and PSA revaluations. Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come. We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers and shareholders.” – Mary Barra, Chairman and CEO PICKUP“ TRUCKS: LIGHT-DUTY LEADERSHIP GM’s cadenced full-size pickup truck launch remains on track, with sales of the all-new Chevrolet Silverado and GMC Sierra light-duty crew cabs up double digits year- over-year for the second straight quarter. Overall, GM’s light-duty pickups gained nearly 3 percentage points of retail share from Q1 to Q2, and remained the retail market share leader in the segment (J.D. Power). Full production of all cab styles—including more afordable 2020 Chevrolet Corvette Stingray was revealed July 18. regular and double cabs—started in March, helping normalize availability of the entire lineup. ALL-NEW 2020 MID-ENGINE CORVETTE DEBUTS In July, GM unveiled the 2020 Chevrolet Corvette GM’s all-new heavy-duty pickups launched in June, Stingray, the company’s frst-ever production mid- with early production focused on HD crew cab models, engine Corvette, to a global audience of nearly similar to the light-duty launch cadence. With the 300,000 in 157 countries. The Stingray incorporates previously announced 40,000 unit additional capacity new technologies, such as GM’s all-new digital vehicle at Flint Assembly, the company is poised for signifcant platform, that the company will use for future vehicles. growth in this proftable segment. In anticipation of strong customer demand, the company is increasing production of the new model, adding a second shift and more than 400 hourly jobs at its Bowling Green Assembly plant in Kentucky. Since 2011, GM has invested more than $900 million in this facility. The Corvette will start under $60,000, making it the frst afordable V-8 mid-engine supercar. Corvettes will The all-new 2020 Chevrolet Silverado 2500 HD Z71. begin arriving at dealerships late in the fourth quarter.
“ SEGMENT RESULTS (EBIT-ADJUSTED - $B) North America International GM Cruise GM Financial (EBT) Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 3.0 2.7 (0.0) 0.1 (0.3) (0.2) 0.5 0.5 GM’s all-new light-duty Lower earnings due to a Completed new funding Revenue of $3.6 billion in the trucks, crossovers and $400-million decline in round and announced second quarter was a record. transformational cost China income from a record plans to launch in San Continued portfolio growth savings drove a strong Q2 2018, partially ofset by Francisco (see below). Since contributed to EBT results. 10.7% EBIT-adj. margin. better performance outside 2016, Cruise has increased of China. its staf from 40 to 1,500. We had a solid second quarter, and expect the second half of the year to be stronger than the frst half. Our confdence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings.” – Dhivya Suryadevara, CFO Q2“ SALES HIGHLIGHTS CRUISE UPDATE GM delivered 747,000 vehicles in the U.S., led by After a new equity raise in May of $1.15 billion which crossover sales which set a Q2 record with a 17-percent raised its valuation to $19 billion, in July Cruise increase year-over-year. The Chevrolet Equinox and announced actions to advance its plans toward launch Traverse set Q2 records; every Buick crossover was up in San Francisco. To deploy at large scale, Cruise will year-over-year; the GMC Acadia posted its best frst signifcantly increase its testing and validation miles half ever; and the all-new Cadillac XT4 continued to over the balance of 2019; increase community lead its segment. U.S. retail market share is estimated engagement through advertising and live events; to be fat compared to a year ago, with trucks and and continue work on the development of a purpose- crossovers ofsetting lower passenger car sales. built autonomous vehicle – the efort of hundreds of talented Cruise, GM and Honda engineers. This vehicle GM China sold 754,000 vehicles in the second quarter, will completely re-imagine the customer about 100,000 fewer than the previous year’s quarter, experience from the ground up. due to an overall market decline, segment shifts and lower demand for outgoing models. For details on U.S. INVESTMENTS IN PLANTS AND PEOPLE GM’s global sales, click here. In June, GM announced investments at its Fort Wayne, Flint and Arlington plants to support production expansion for its full-size truck and SUV facilities, bringing investment totals to more than $4.2 billion to prepare for its next-generation truck launches. GM’s new trucks are also driving investments at plants in Moraine, Ohio to expand diesel engine output and in Toledo, Ohio to expand 10- speed transmission production. These investments The Cadillac XT5 remains Cadillac’s best-selling vehicle globally. support more than 15,000 hourly jobs at these plants. CHINA INDUSTRY EXPECTED TO REMAIN WEAK To date, 1,700 of 2,800 hourly employees impacted by Due to China’s economic slowdown, China industry transformation actions have been placed in new jobs. unit sales are expected to remain weak through the Positions are available for all impacted hourly workers second half of the year, with industry deliveries at plants supporting growth segments. projected to be down for the full year. SUPER CRUISE EXPANDS HIGHWAY NETWORK GM China expects to beneft from about 20 new In June, Cadillac announced the expansion of Super vehicle launches, the majority of which will go on sale Cruise to an additional 70,000 miles of compatible later in the year. Nearly two thirds of the launches in highways in the U.S. and Canada. By year end, it will the second half are SUVs. However, GM expects equity be available on more than 200,000 total miles of income in the second half of the year to be generally compatible highways. More than 3 million miles have in line with the frst half, due to ongoing headwinds. been driven by customers using Super Cruise since its introduction.
MEDIA CONTACT INVESTOR CONTACT Tom Henderson Michael Heifler GM Finance Communications GM Investor Relations Media Investors 313-410-2704 313-418-0220 tom.e.henderson@gm.com michael.heifler@gm.com General Motors (NYSE:GM) is 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 Cadillac, Chevrolet, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, Maven, its personal mobility brand, and Cruise, its autonomous vehicle business, can be found at gm.com. Cautionary Note on Forward-Looking Statements: This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on forward-looking statements. Statements including words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “efect,” “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 to identify forward-looking statements represent our current judgment about possible future events. 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. These statements are not guarantees of future performance; they involve risks and uncertainties and actual events or results may difer materially from these statements. Factors that might cause such diferences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond our control and are described in our Annual Report on Form 10-K for the year ended December 31, 2018, as well as additional factors we may describe from time to time in other flings with the U.S. Securities and Exchange Commission. 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 afect the subject of these statements, except where we are expressly required to do so by law. Basis of Presentation: The fnancial and operational information included in this press release relate to our continuing operations and not our discontinued operations, which consist of the Opel and Vauxhall businesses and certain other assets in Europe and the European fnancing subsidiaries and branches that were sold in 2017.
Exhibit 99.2
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Unless otherwise indicated, General Motors Company's (GM) non-GAAP measures are related to our continuing operations and not our discontinued operations. GM's 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.
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 income (loss) from discontinued operations on an after-tax basis, 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.
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 capital leases; average net pension and other postretirement benefits (OPEB) liabilities; and average automotive net income tax assets during the same period. Adjustments to the average equity balances exclude assets and liabilities classified as either assets held for sale or liabilities held for sale.
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 continuing 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.
1
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 | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Operating segments | |||||||||||||||
GM North America (GMNA) | $ | 3,022 | $ | 2,670 | $ | 4,918 | $ | 4,903 | |||||||
GM International (GMI) | (48 | ) | 143 | (17 | ) | 332 | |||||||||
GM Cruise | (279 | ) | (154 | ) | (448 | ) | (320 | ) | |||||||
GM Financial(a) | 536 | 536 | 895 | 979 | |||||||||||
Total operating segments | 3,231 | 3,195 | 5,348 | 5,894 | |||||||||||
Corporate and eliminations(b) | (219 | ) | (3 | ) | (26 | ) | (92 | ) | |||||||
EBIT-adjusted | 3,012 | 3,192 | 5,322 | 5,802 | |||||||||||
Adjustments | |||||||||||||||
Transformation activities(c) | (361 | ) | — | (1,151 | ) | — | |||||||||
GM Brazil indirect tax recoveries(d) | 380 | — | 1,237 | — | |||||||||||
GMI restructuring(e) | — | (196 | ) | — | (1,138 | ) | |||||||||
Total adjustments | 19 | (196 | ) | 86 | (1,138 | ) | |||||||||
Automotive interest income | 106 | 72 | 204 | 136 | |||||||||||
Automotive interest expense | (195 | ) | (159 | ) | (376 | ) | (309 | ) | |||||||
Income tax expense | (524 | ) | (519 | ) | (661 | ) | (985 | ) | |||||||
Income from continuing operations(f) | 2,418 | 2,390 | 4,575 | 3,506 | |||||||||||
Loss from discontinued operations, net of tax(g) | — | — | — | 70 | |||||||||||
Net income attributable to stockholders | $ | 2,418 | $ | 2,390 | $ | 4,575 | $ | 3,436 | |||||||
__________
(a) | GM Financial amounts represent earnings before income taxes-adjusted. |
(b) | GM's automotive operations' interest income and interest expense, Maven, legacy costs from the Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business), 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 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 accelerated depreciation in the three months ended June 30, 2019 and accelerated depreciation and supplier-related charges in the six months ended June 30, 2019. |
(d) | 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. |
(e) | 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 employee separation charges and asset impairments in Korea. |
(f) | Net of Net loss attributable to noncontrolling interests. |
(g) | Represents the results of the Opel/Vauxhall Business and our European financing subsidiaries and branches (the Fincos, and together with the Opel/Vauxhall Business, the European Business). |
2
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted (dollars in millions):
Three Months Ended | |||||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Net income (loss) attributable to stockholders | $ | 2,418 | $ | 2,390 | $ | 2,157 | $ | 1,046 | $ | 2,044 | $ | (5,151 | ) | $ | 2,534 | $ | (2,981 | ) | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | 70 | — | 277 | — | 3,096 | |||||||||||||||||||||||
Income tax expense (benefit) | 524 | 519 | 137 | 466 | (611 | ) | 7,896 | 100 | 2,316 | ||||||||||||||||||||||
Automotive interest expense | 195 | 159 | 181 | 150 | 185 | 145 | 161 | 151 | |||||||||||||||||||||||
Automotive interest income | (106 | ) | (72 | ) | (98 | ) | (64 | ) | (117 | ) | (82 | ) | (82 | ) | (59 | ) | |||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||
Transformation activities(a) | 361 | — | 790 | — | 1,327 | — | — | — | |||||||||||||||||||||||
GM Brazil indirect tax recoveries(b) | (380 | ) | — | (857 | ) | — | — | — | — | — | |||||||||||||||||||||
GMI restructuring(c) | — | 196 | — | 942 | — | — | — | — | |||||||||||||||||||||||
Ignition switch recall and related legal matters(d) | — | — | — | — | — | — | 440 | — | |||||||||||||||||||||||
Total adjustments | (19 | ) | 196 | (67 | ) | 942 | 1,327 | — | 440 | — | |||||||||||||||||||||
EBIT-adjusted | $ | 3,012 | $ | 3,192 | $ | 2,310 | $ | 2,610 | $ | 2,828 | $ | 3,085 | $ | 3,153 | $ | 2,523 | |||||||||||||||
________
(a) | 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 accelerated depreciation in the three months ended June 30, 2019, accelerated depreciation in the three months ended March 31, 2019 and employee separation charges and accelerated depreciation in the three months ended December 31, 2018. |
(b) | 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. |
(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 employee separation charges and asset impairments in Korea. |
(d) | This adjustment was excluded because of the unique events associated with the ignition switch recall, which included various investigations, inquiries and complaints from constituents. |
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 | Six Months Ended | ||||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 2,381 | $ | 1.66 | $ | 2,375 | $ | 1.66 | $ | 4,500 | $ | 3.13 | $ | 3,407 | $ | 2.38 | |||||||||||||||
Diluted loss per common share – discontinued operations | — | — | — | — | — | — | 70 | 0.05 | |||||||||||||||||||||||
Adjustments(a) | (19 | ) | (0.01 | ) | 196 | 0.14 | (86 | ) | (0.06 | ) | 1,138 | 0.80 | |||||||||||||||||||
Tax effect on adjustment(b) | (9 | ) | (0.01 | ) | 20 | 0.01 | (41 | ) | (0.03 | ) | 20 | 0.01 | |||||||||||||||||||
EPS-diluted-adjusted | $ | 2,353 | $ | 1.64 | $ | 2,591 | $ | 1.81 | $ | 4,373 | $ | 3.04 | $ | 4,635 | $ | 3.24 | |||||||||||||||
________
(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. |
3
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 | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,927 | $ | 524 | 17.9 | % | $ | 2,885 | $ | 519 | 18.0 | % | $ | 5,209 | $ | 661 | 12.7 | % | $ | 4,461 | $ | 985 | 22.1 | % | |||||||||||||||||||
Adjustments(a) | (16 | ) | 9 | 237 | (20 | ) | (83 | ) | 41 | 1,179 | (20 | ) | |||||||||||||||||||||||||||||||
ETR-adjusted | $ | 2,911 | $ | 533 | 18.3 | % | $ | 3,122 | $ | 499 | 16.0 | % | $ | 5,126 | $ | 702 | 13.7 | % | $ | 5,640 | $ | 965 | 17.1 | % | |||||||||||||||||||
________
(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 six months ended June 30, 2019 and $41 million in the three and six months ended June 30, 2018. 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. |
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 | |||||||
June 30, 2019 | June 30, 2018 | ||||||
Net income (loss) attributable to stockholders | $ | 9.2 | $ | (4.7 | ) | ||
Average equity(a) | $ | 41.1 | $ | 37.2 | |||
ROE | 22.3 | % | (12.6 | )% | |||
________
(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 | |||||||
June 30, 2019 | June 30, 2018 | ||||||
EBIT-adjusted(a) | $ | 11.3 | $ | 11.4 | |||
Average equity(b) | $ | 41.1 | $ | 37.2 | |||
Add: Average automotive debt and interest liabilities (excluding finance leases) | 14.9 | 13.5 | |||||
Add: Average automotive net pension & OPEB liability | 16.9 | 19.9 | |||||
Less: Average automotive and other net income tax asset | (23.1 | ) | (24.5 | ) | |||
ROIC-adjusted average net assets | $ | 49.8 | $ | 46.1 | |||
ROIC-adjusted | 22.7 | % | 24.7 | % | |||
________
(a) | Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted. |
(b) | Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT-adjusted. |
4
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net automotive cash provided by operating activities from continuing operations under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Net automotive cash provided by operating activities | $ | 3,813 | $ | 3,986 | $ | 1,606 | $ | 2,923 | |||||||
Less: Capital expenditures | (1,435 | ) | (2,065 | ) | (3,428 | ) | (4,305 | ) | |||||||
Add: Transformation activities | 172 | — | 487 | — | |||||||||||
Add: GMI restructuring | — | 676 | 9 | 676 | |||||||||||
Less: GM Brazil indirect tax recoveries | (16 | ) | — | (16 | ) | — | |||||||||
Adjusted automotive free cash flow | $ | 2,534 | $ | 2,597 | $ | (1,342 | ) | $ | (706 | ) | |||||
The following tables summarize key financial information by segment (dollars in millions):
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Total | |||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 28,324 | $ | 4,047 | $ | 54 | $ | 32,425 | $ | 25 | $ | 3,639 | $ | (29 | ) | $ | 36,060 | ||||||||||||||||||
Expenditures for property | $ | 1,268 | $ | 166 | $ | 1 | $ | — | $ | 1,435 | $ | 19 | $ | 8 | $ | — | $ | 1,462 | |||||||||||||||||
Depreciation and amortization | $ | 1,409 | $ | 119 | $ | 13 | $ | — | $ | 1,541 | $ | 7 | $ | 1,848 | $ | — | $ | 3,396 | |||||||||||||||||
Impairment charges | $ | 8 | $ | 3 | $ | — | $ | — | $ | 11 | $ | — | $ | — | $ | — | $ | 11 | |||||||||||||||||
Equity income(a) | $ | 2 | $ | 233 | $ | (6 | ) | $ | — | $ | 229 | $ | — | $ | 42 | $ | — | $ | 271 | ||||||||||||||||
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Cruise | GM Financial | Eliminations | Total | |||||||||||||||||||||||||||
Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 28,501 | $ | 4,758 | $ | 50 | $ | 33,309 | $ | — | $ | 3,488 | $ | (37 | ) | $ | 36,760 | ||||||||||||||||||
Expenditures for property | $ | 1,835 | $ | 229 | $ | 2 | $ | (1 | ) | $ | 2,065 | $ | — | $ | 14 | $ | — | $ | 2,079 | ||||||||||||||||
Depreciation and amortization | $ | 1,114 | $ | 137 | $ | 13 | $ | — | $ | 1,264 | $ | 2 | $ | 1,833 | $ | — | $ | 3,099 | |||||||||||||||||
Impairment charges | $ | 28 | $ | 2 | $ | — | $ | — | $ | 30 | $ | — | $ | — | $ | — | $ | 30 | |||||||||||||||||
Equity income(a) | $ | 3 | $ | 589 | $ | — | $ | — | $ | 592 | $ | — | $ | 45 | $ | — | $ | 637 | |||||||||||||||||
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Total | |||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 55,689 | $ | 7,897 | $ | 100 | $ | 63,686 | $ | 50 | $ | 7,259 | $ | (57 | ) | $ | 70,938 | ||||||||||||||||||
Expenditures for property | $ | 2,969 | $ | 458 | $ | 1 | $ | — | $ | 3,428 | $ | 23 | $ | 25 | $ | — | $ | 3,476 | |||||||||||||||||
Depreciation and amortization | $ | 3,478 | $ | 246 | $ | 25 | $ | — | $ | 3,749 | $ | 9 | $ | 3,747 | $ | — | $ | 7,505 | |||||||||||||||||
Impairment charges | $ | 15 | $ | 3 | $ | — | $ | — | $ | 18 | $ | — | $ | — | $ | — | $ | 18 | |||||||||||||||||
Equity income(a) | $ | 4 | $ | 607 | $ | (13 | ) | $ | — | $ | 598 | $ | — | $ | 87 | $ | — | $ | 685 | ||||||||||||||||
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Cruise | GM Financial | Eliminations | Total | |||||||||||||||||||||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 56,319 | $ | 9,606 | $ | 99 | $ | 66,024 | $ | — | $ | 6,899 | $ | (64 | ) | $ | 72,859 | ||||||||||||||||||
Expenditures for property | $ | 3,899 | $ | 391 | $ | 16 | $ | (1 | ) | $ | 4,305 | $ | 12 | $ | 34 | $ | — | $ | 4,351 | ||||||||||||||||
Depreciation and amortization | $ | 2,223 | $ | 290 | $ | 24 | $ | — | $ | 2,537 | $ | 3 | $ | 3,656 | $ | — | $ | 6,196 | |||||||||||||||||
Impairment charges | $ | 53 | $ | 461 | $ | — | $ | — | $ | 514 | $ | — | $ | — | $ | — | $ | 514 | |||||||||||||||||
Equity income(a) | $ | 5 | $ | 1,183 | $ | — | $ | — | $ | 1,188 | $ | — | $ | 97 | $ | — | $ | 1,285 | |||||||||||||||||
________
(a) | Includes Automotive China equity income of $235 million and $592 million in the three months ended June 30, 2019 and 2018 and $611 million and $1.2 billion in the six months ended June 30, 2019 and 2018. |
5
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 six months ended June 30, 2019, 34.1% 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 | Six Months Ended | ||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||
GMNA | 870 | 923 | 1,729 | 1,816 | |||||||
GMI | 259 | 281 | 495 | 547 | |||||||
Total | 1,129 | 1,204 | 2,224 | 2,363 | |||||||
6
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 | Six Months Ended | ||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||
United States | |||||||||||
Chevrolet – Cars | 90 | 126 | 190 | 247 | |||||||
Chevrolet – Trucks | 248 | 261 | 446 | 484 | |||||||
Chevrolet – Crossovers | 161 | 141 | 316 | 288 | |||||||
Cadillac | 40 | 39 | 76 | 76 | |||||||
Buick | 55 | 53 | 107 | 110 | |||||||
GMC | 153 | 138 | 277 | 269 | |||||||
Total United States | 747 | 758 | 1,412 | 1,474 | |||||||
Canada, Mexico and Other | 129 | 154 | 239 | 265 | |||||||
Total North America | 876 | 912 | 1,651 | 1,739 | |||||||
Asia/Pacific, Middle East and Africa | |||||||||||
Chevrolet | 225 | 230 | 445 | 447 | |||||||
Wuling | 251 | 252 | 517 | 541 | |||||||
Buick | 198 | 230 | 423 | 502 | |||||||
Baojun | 136 | 199 | 305 | 443 | |||||||
Cadillac | 68 | 51 | 114 | 108 | |||||||
Other | 22 | 27 | 43 | 51 | |||||||
Total Asia/Pacific, Middle East and Africa | 900 | 989 | 1,847 | 2,092 | |||||||
South America(a) | 163 | 164 | 318 | 331 | |||||||
Total in GM markets | 1,939 | 2,065 | 3,816 | 4,162 | |||||||
Total Europe | 1 | 1 | 2 | 2 | |||||||
Total Worldwide | 1,940 | 2,066 | 3,818 | 4,164 | |||||||
_______
(a) | Primarily Chevrolet. |
7
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
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 | Six Months Ended | ||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||
SAIC General Motors Sales Co., Ltd. | 372 | 411 | 754 | 868 | |||||||
SAIC GM Wuling Automobile Co., Ltd. and FAW-GM Light Duty Commercial Vehicle Co., Ltd. | 382 | 447 | 814 | 976 | |||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||
Market Share | |||||||||||
United States – Cars | 8.1 | % | 10.3 | % | 8.8 | % | 10.6 | % | |||
United States – Trucks(a) | 30.1 | % | 33.6 | % | 29.2 | % | 32.8 | % | |||
United States – Crossovers(a) | 13.7 | % | 11.7 | % | 14.1 | % | 12.9 | % | |||
Total United States | 16.3 | % | 16.5 | % | 16.3 | % | 16.7 | % | |||
Total North America | 15.8 | % | 16.1 | % | 15.7 | % | 16.2 | % | |||
Total Asia/Pacific, Middle East and Africa | 7.8 | % | 8.4 | % | 7.9 | % | 8.7 | % | |||
Total South America | 15.1 | % | 14.5 | % | 15.3 | % | 15.0 | % | |||
Total GM Market | 10.7 | % | 11.1 | % | 10.6 | % | 11.3 | % | |||
Total Worldwide | 8.3 | % | 8.6 | % | 8.3 | % | 8.8 | % | |||
United States fleet sales as a percentage of retail vehicle sales | 23.1 | % | 22.1 | % | 24.0 | % | 22.5 | % | |||
North America capacity two shift utilization | 98.1 | % | 102.8 | % | 96.8 | % | 100.9 | % | |||
________
(a) | Certain industry vehicles have been reclassified between these vehicle segments. GM vehicles were not impacted by this change. The prior period has been recast to reflect the changes. |
8
General Motors Company and Subsidiaries
Combining Income Statement Information
(In millions) (Unaudited)
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||
Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | GM Cruise | GM Financial | Eliminations | Combined | ||||||||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||||||||||
Automotive | $ | 32,425 | $ | 25 | $ | — | $ | (25 | ) | $ | 32,425 | $ | 33,309 | $ | — | $ | — | $ | (34 | ) | $ | 33,275 | |||||||||||||||||
GM Financial | — | — | 3,639 | (4 | ) | 3,635 | — | — | 3,488 | (3 | ) | 3,485 | |||||||||||||||||||||||||||
Total net sales and revenue | 32,425 | 25 | 3,639 | (29 | ) | 36,060 | 33,309 | — | 3,488 | (37 | ) | 36,760 | |||||||||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||||||||||
Automotive and other cost of sales | 28,036 | 292 | — | (1 | ) | 28,327 | 29,948 | 157 | — | (34 | ) | 30,071 | |||||||||||||||||||||||||||
GM Financial interest, operating and other expenses | — | — | 3,145 | (1 | ) | 3,144 | — | — | 2,997 | (1 | ) | 2,996 | |||||||||||||||||||||||||||
Automotive and other selling, general and administrative expense | 2,055 | 47 | — | — | 2,102 | 2,219 | (3 | ) | — | — | 2,216 | ||||||||||||||||||||||||||||
Total costs and expenses | 30,091 | 339 | 3,145 | (2 | ) | 33,573 | 32,167 | 154 | 2,997 | (35 | ) | 35,283 | |||||||||||||||||||||||||||
Operating income (loss) | 2,334 | (314 | ) | 494 | (27 | ) | 2,487 | 1,142 | (154 | ) | 491 | (2 | ) | 1,477 | |||||||||||||||||||||||||
Automotive interest expense | 195 | — | — | — | 195 | 161 | 1 | — | (3 | ) | 159 | ||||||||||||||||||||||||||||
Interest income and other non-operating income, net | 320 | 21 | — | 23 | 364 | 931 | — | — | (1 | ) | 930 | ||||||||||||||||||||||||||||
Equity income | 229 | — | 42 | — | 271 | 592 | — | 45 | — | 637 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 2,688 | $ | (293 | ) | $ | 536 | $ | (4 | ) | 2,927 | $ | 2,504 | $ | (155 | ) | $ | 536 | $ | — | 2,885 | ||||||||||||||||||
Income tax expense | 524 | 519 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 2,403 | 2,366 | |||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | — | — | |||||||||||||||||||||||||||||||||||||
Net income | 2,403 | 2,366 | |||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 15 | 24 | |||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | $ | 2,418 | $ | 2,390 | |||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 2,381 | $ | 2,375 | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||
Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | GM Cruise | GM Financial | Eliminations | Combined | ||||||||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||||||||||
Automotive | $ | 63,686 | $ | 50 | $ | — | $ | (50 | ) | $ | 63,686 | $ | 66,024 | $ | — | $ | — | $ | (58 | ) | $ | 65,966 | |||||||||||||||||
GM Financial | — | — | 7,259 | (7 | ) | 7,252 | — | — | 6,899 | (6 | ) | 6,893 | |||||||||||||||||||||||||||
Total net sales and revenue | 63,686 | 50 | 7,259 | (57 | ) | 70,938 | 66,024 | — | 6,899 | (64 | ) | 72,859 | |||||||||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||||||||||
Automotive and other cost of sales | 56,071 | 487 | — | (2 | ) | 56,556 | 60,009 | 305 | — | (59 | ) | 60,255 | |||||||||||||||||||||||||||
GM Financial interest, operating and other expenses | — | — | 6,451 | (1 | ) | 6,450 | — | — | 6,017 | (7 | ) | 6,010 | |||||||||||||||||||||||||||
Automotive and other selling, general and administrative expense | 4,135 | 66 | — | — | 4,201 | 4,573 | 15 | — | — | 4,588 | |||||||||||||||||||||||||||||
Total costs and expenses | 60,206 | 553 | 6,451 | (3 | ) | 67,207 | 64,582 | 320 | 6,017 | (66 | ) | 70,853 | |||||||||||||||||||||||||||
Operating income (loss) | 3,480 | (503 | ) | 808 | (54 | ) | 3,731 | 1,442 | (320 | ) | 882 | 2 | 2,006 | ||||||||||||||||||||||||||
Automotive interest expense | 379 | — | — | (3 | ) | 376 | 313 | 1 | — | (5 | ) | 309 | |||||||||||||||||||||||||||
Interest income and other non-operating income, net | 1,088 | 45 | — | 36 | 1,169 | 1,480 | — | — | (1 | ) | 1,479 | ||||||||||||||||||||||||||||
Equity income | 598 | — | 87 | — | 685 | 1,188 | — | 97 | — | 1,285 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 4,787 | $ | (458 | ) | $ | 895 | $ | (15 | ) | 5,209 | $ | 3,797 | $ | (321 | ) | $ | 979 | $ | 6 | 4,461 | ||||||||||||||||||
Income tax expense | 661 | 985 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 4,548 | 3,476 | |||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | — | 70 | |||||||||||||||||||||||||||||||||||||
Net income | 4,548 | 3,406 | |||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 27 | 30 | |||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | $ | 4,575 | $ | 3,436 | |||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 4,500 | $ | 3,407 | |||||||||||||||||||||||||||||||||||
9
General Motors Company and Subsidiaries
Basic and Diluted Earnings per Share
(Unaudited)
The following table summarizes basic and diluted earnings (loss) per share (in millions, except per share amounts):
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Basic earnings per share | |||||||||||||||
Income from continuing operations(a) | $ | 2,418 | $ | 2,390 | $ | 4,575 | $ | 3,506 | |||||||
Less: cumulative dividends on subsidiary preferred stock | (37 | ) | (15 | ) | (75 | ) | (29 | ) | |||||||
Income from continuing operations attributable to common stockholders | 2,381 | 2,375 | 4,500 | 3,477 | |||||||||||
Loss from discontinued operations, net of tax | — | — | — | 70 | |||||||||||
Net income attributable to common stockholders | $ | 2,381 | $ | 2,375 | $ | 4,500 | $ | 3,407 | |||||||
Weighted-average common shares outstanding | 1,420 | 1,410 | 1,419 | 1,409 | |||||||||||
Basic earnings per common share – continuing operations | $ | 1.68 | $ | 1.68 | $ | 3.17 | $ | 2.47 | |||||||
Basic loss per common share – discontinued operations | $ | — | $ | — | $ | — | $ | 0.05 | |||||||
Basic earnings per common share | $ | 1.68 | $ | 1.68 | $ | 3.17 | $ | 2.42 | |||||||
Diluted earnings per share | |||||||||||||||
Income from continuing operations attributable to common stockholders – diluted(a) | $ | 2,381 | $ | 2,375 | $ | 4,500 | $ | 3,477 | |||||||
Loss from discontinued operations, net of tax – diluted | $ | — | $ | — | $ | — | $ | 70 | |||||||
Net income attributable to common stockholders – diluted | $ | 2,381 | $ | 2,375 | $ | 4,500 | $ | 3,407 | |||||||
Weighted-average common shares outstanding – diluted | 1,438 | 1,431 | 1,437 | 1,430 | |||||||||||
Diluted earnings per common share – continuing operations | $ | 1.66 | $ | 1.66 | $ | 3.13 | $ | 2.43 | |||||||
Diluted loss per common share – discontinued operations | $ | — | $ | — | $ | — | $ | 0.05 | |||||||
Diluted earnings per common share | $ | 1.66 | $ | 1.66 | $ | 3.13 | $ | 2.38 | |||||||
Potentially dilutive securities(b) | 7 | 4 | 7 | 4 | |||||||||||
__________
(a) | Net of Net loss attributable to noncontrolling interests. |
(b) | 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. |
10
General Motors Company and Subsidiaries
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)(a)
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Combined | Automotive | GM Cruise | GM Financial | Reclassifications/Eliminations | Combined | ||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 11,390 | $ | 2,088 | $ | 3,594 | $ | — | $ | 17,072 | $ | 13,670 | $ | 2,291 | $ | 4,883 | $ | — | $ | 20,844 | |||||||||||||||||||
Marketable securities(b) | 6,147 | 982 | — | (80 | ) | 7,049 | 5,966 | 92 | — | (92 | ) | 5,966 | |||||||||||||||||||||||||||
Accounts and notes receivable, net(c) | 10,068 | 11 | 1,077 | (794 | ) | 10,362 | 5,916 | 1 | 1,430 | (798 | ) | 6,549 | |||||||||||||||||||||||||||
GM Financial receivables, net(d) | — | — | 28,473 | (548 | ) | 27,925 | — | — | 27,367 | (517 | ) | 26,850 | |||||||||||||||||||||||||||
Inventories | 11,447 | — | — | — | 11,447 | 9,816 | — | — | — | 9,816 | |||||||||||||||||||||||||||||
Other current assets(e) | 3,036 | 15 | 4,406 | (7 | ) | 7,451 | 1,619 | 27 | 3,640 | (18 | ) | 5,268 | |||||||||||||||||||||||||||
Total current assets | 42,089 | 3,096 | 37,549 | (1,430 | ) | 81,306 | 36,987 | 2,411 | 37,320 | (1,425 | ) | 75,293 | |||||||||||||||||||||||||||
Non-current Assets | |||||||||||||||||||||||||||||||||||||||
GM Financial receivables, net(d) | — | — | 26,315 | (51 | ) | 26,264 | — | — | 25,145 | (62 | ) | 25,083 | |||||||||||||||||||||||||||
Equity in net assets of nonconsolidated affiliates | 6,894 | — | 1,446 | — | 8,340 | 7,860 | — | 1,355 | — | 9,215 | |||||||||||||||||||||||||||||
Property, net | 37,826 | 123 | 239 | — | 38,188 | 38,464 | 43 | 251 | — | 38,758 | |||||||||||||||||||||||||||||
Goodwill and intangible assets, net | 3,429 | 670 | 1,358 | — | 5,457 | 3,552 | 671 | 1,356 | — | 5,579 | |||||||||||||||||||||||||||||
Equipment on operating leases, net | — | — | 42,938 | — | 42,938 | — | — | 43,559 | — | 43,559 | |||||||||||||||||||||||||||||
Deferred income taxes | 23,857 | 199 | (69 | ) | — | 23,987 | 23,935 | 70 | 77 | — | 24,082 | ||||||||||||||||||||||||||||
Other assets | 6,252 | 123 | 933 | (52 | ) | 7,257 | 4,880 | — | 890 | — | 5,770 | ||||||||||||||||||||||||||||
Total non-current assets | 78,258 | 1,116 | 73,161 | (103 | ) | 152,431 | 78,691 | 784 | 72,633 | (62 | ) | 152,046 | |||||||||||||||||||||||||||
Total Assets | $ | 120,347 | $ | 4,212 | $ | 110,711 | $ | (1,533 | ) | $ | 233,737 | $ | 115,678 | $ | 3,195 | $ | 109,953 | $ | (1,487 | ) | $ | 227,339 | |||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||||||||||||||
Accounts payable (principally trade)(c) | $ | 22,834 | $ | 41 | $ | 656 | $ | (815 | ) | $ | 22,717 | $ | 22,359 | $ | 28 | $ | 707 | $ | (797 | ) | $ | 22,297 | |||||||||||||||||
Short-term debt and current portion of long-term debt | |||||||||||||||||||||||||||||||||||||||
Automotive(d) | 3,038 | — | — | (548 | ) | 2,490 | 1,452 | — | — | (517 | ) | 935 | |||||||||||||||||||||||||||
GM Financial | — | — | 30,659 | — | 30,659 | — | — | 30,956 | — | 30,956 | |||||||||||||||||||||||||||||
Accrued liabilities | 24,430 | 87 | 3,918 | (7 | ) | 28,428 | 24,042 | 41 | 3,985 | (19 | ) | 28,049 | |||||||||||||||||||||||||||
Total current liabilities | 50,301 | 129 | 35,233 | (1,369 | ) | 84,294 | 47,853 | 69 | 35,648 | (1,333 | ) | 82,237 | |||||||||||||||||||||||||||
Non-current Liabilities | |||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||
Automotive(d) | 13,009 | — | — | (51 | ) | 12,957 | 13,090 | — | — | (62 | ) | 13,028 | |||||||||||||||||||||||||||
GM Financial | — | — | 60,455 | — | 60,455 | — | — | 60,032 | — | 60,032 | |||||||||||||||||||||||||||||
Postretirement benefits other than pensions | 5,357 | — | — | — | 5,357 | 5,370 | — | — | — | 5,370 | |||||||||||||||||||||||||||||
Pensions | 10,788 | — | 3 | — | 10,791 | 11,535 | — | 3 | — | 11,538 | |||||||||||||||||||||||||||||
Other liabilities | 10,471 | 204 | 2,171 | (52 | ) | 12,794 | 10,167 | 35 | 2,155 | — | 12,357 | ||||||||||||||||||||||||||||
Total non-current liabilities | 39,624 | 204 | 62,630 | (103 | ) | 102,354 | 40,162 | 35 | 62,190 | (62 | ) | 102,325 | |||||||||||||||||||||||||||
Total Liabilities | 89,925 | 333 | 97,862 | (1,473 | ) | 186,648 | 88,015 | 104 | 97,838 | (1,395 | ) | 184,562 | |||||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||||||||
Common stock, $0.01 par value | 14 | — | — | — | 14 | 14 | — | — | — | 14 | |||||||||||||||||||||||||||||
Preferred stock, $0.01 par value | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Additional paid-in capital(b)(f) | 25,791 | 36 | 1,373 | (1,435 | ) | 25,765 | 25,606 | 4 | 1,373 | (1,420 | ) | 25,563 | |||||||||||||||||||||||||||
Retained earnings(b) | 11,455 | 1,900 | 12,484 | (32 | ) | 25,807 | 9,103 | 1,480 | 11,783 | (44 | ) | 22,322 | |||||||||||||||||||||||||||
Accumulated other comprehensive loss | (7,762 | ) | — | (1,009 | ) | — | (8,770 | ) | (7,998 | ) | — | (1,041 | ) | — | (9,039 | ) | |||||||||||||||||||||||
Total stockholders’ equity | 29,497 | 1,936 | 12,848 | (1,467 | ) | 42,816 | 26,725 | 1,484 | 12,115 | (1,464 | ) | 38,860 | |||||||||||||||||||||||||||
Noncontrolling interests(f) | 925 | 1,942 | — | 1,406 | 4,273 | 938 | 1,607 | — | 1,372 | 3,917 | |||||||||||||||||||||||||||||
Total Equity | 30,422 | 3,878 | 12,848 | (60 | ) | 47,089 | 27,663 | 3,091 | 12,115 | (92 | ) | 42,777 | |||||||||||||||||||||||||||
Total Liabilities and Equity | $ | 120,347 | $ | 4,212 | $ | 110,711 | $ | (1,533 | ) | $ | 233,737 | $ | 115,678 | $ | 3,195 | $ | 109,953 | $ | (1,487 | ) | $ | 227,339 | |||||||||||||||||
_________
(a) | Amounts may not sum due to rounding. |
(b) | Elimination primarily includes GM Cruise investment in GM common stock at June 30, 2019 and December 31, 2018. |
(c) | Eliminations primarily include Automotive accounts receivable of $69 million offset by GM Financial accounts payable and GM Financial accounts receivable of $710 million offset by Automotive accounts payable at June 30, 2019 and Automotive accounts receivable of $63 million offset by GM Financial accounts payable and GM Financial accounts receivable of $729 million offset by Automotive accounts payable at December 31, 2018. |
(d) | Eliminations include GM Financial loan receivable of $599 million and $579 million offset by an Automotive loan payable at June 30, 2019 and December 31, 2018. |
(e) | Includes the reclassification of the current portion of Equipment on operating leases, net. The prior period has been recast to reflect the changes. |
(f) | Primarily reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A and B. The preferred stock is classified as noncontrolling interests in our condensed consolidated balance sheet. |
11
General Motors Company and Subsidiaries
Combining Cash Flow Information
(In millions) (Unaudited)(a)
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||
Automotive | GM Cruise | GM Financial | Reclassification/Eliminations | Combined | Automotive | GM Cruise | GM Financial | Reclassification/Eliminations | Combined | ||||||||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 4,209 | $ | (329 | ) | $ | 683 | $ | (15 | ) | $ | 4,548 | $ | 2,973 | $ | (296 | ) | $ | 793 | $ | 6 | $ | 3,476 | ||||||||||||||||
Depreciation and impairment of Equipment on operating leases, net | 38 | — | 3,710 | — | 3,748 | 102 | — | 3,621 | — | 3,723 | |||||||||||||||||||||||||||||
Depreciation, amortization and impairment charges on Property, net | 3,729 | 9 | 37 | — | 3,775 | 2,949 | 3 | 35 | — | 2,987 | |||||||||||||||||||||||||||||
Foreign currency remeasurement and transaction (gains) losses | (174 | ) | — | (4 | ) | — | (178 | ) | 91 | — | 15 | — | 106 | ||||||||||||||||||||||||||
Undistributed earnings of nonconsolidated affiliates, net | 343 | — | (87 | ) | — | 256 | 807 | — | (97 | ) | — | 710 | |||||||||||||||||||||||||||
Pension contributions and OPEB payments | (570 | ) | — | — | — | (570 | ) | (932 | ) | — | — | — | (932 | ) | |||||||||||||||||||||||||
Pension and OPEB income, net | (306 | ) | — | — | — | (306 | ) | (627 | ) | — | — | — | (627 | ) | |||||||||||||||||||||||||
Provision (benefit) for deferred taxes | 30 | (129 | ) | 178 | — | 79 | 470 | (26 | ) | 142 | — | 586 | |||||||||||||||||||||||||||
Change in other operating assets and liabilities(b)(c) | (5,693 | ) | 83 | (224 | ) | (522 | ) | (6,357 | ) | (2,910 | ) | 44 | (944 | ) | (666 | ) | (4,476 | ) | |||||||||||||||||||||
Net cash provided by (used in) operating activities | 1,606 | (367 | ) | 4,293 | (538 | ) | 4,995 | 2,923 | (275 | ) | 3,565 | (660 | ) | 5,553 | |||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||||||||||
Expenditures for property | (3,428 | ) | (23 | ) | (25 | ) | — | (3,476 | ) | (4,305 | ) | (12 | ) | (34 | ) | — | (4,351 | ) | |||||||||||||||||||||
Available-for-sale marketable securities, acquisitions | (1,314 | ) | (899 | ) | — | — | (2,213 | ) | (1,571 | ) | — | — | — | (1,571 | ) | ||||||||||||||||||||||||
Available-for-sale marketable securities, liquidations | 1,244 | 26 | — | (26 | ) | 1,244 | 2,886 | — | — | — | 2,886 | ||||||||||||||||||||||||||||
Purchases of finance receivables, net(b)(c) | — | — | (14,670 | ) | 914 | (13,757 | ) | — | — | (11,635 | ) | 857 | (10,778 | ) | |||||||||||||||||||||||||
Principal collections and recoveries on finance receivables(c) | — | — | 12,096 | (388 | ) | 11,708 | — | — | 7,593 | (173 | ) | 7,420 | |||||||||||||||||||||||||||
Purchases of leased vehicles, net | — | — | (8,189 | ) | — | (8,189 | ) | — | — | (9,122 | ) | — | (9,122 | ) | |||||||||||||||||||||||||
Proceeds from termination of leased vehicles | — | — | 6,444 | — | 6,444 | — | — | 5,303 | — | 5,303 | |||||||||||||||||||||||||||||
Other investing activities(d) | (587 | ) | — | (5 | ) | 690 | 99 | (1,367 | ) | — | — | 1,374 | 7 | ||||||||||||||||||||||||||
Net cash used in investing activities – continuing operations | (4,083 | ) | (897 | ) | (4,349 | ) | 1,190 | (8,140 | ) | (4,357 | ) | (12 | ) | (7,895 | ) | 2,058 | (10,206 | ) | |||||||||||||||||||||
Net cash provided by investing activities – discontinued operations | — | — | — | — | — | 166 | — | — | — | 166 | |||||||||||||||||||||||||||||
Net cash used in investing activities | (4,083 | ) | (897 | ) | (4,349 | ) | 1,190 | (8,140 | ) | (4,191 | ) | (12 | ) | (7,895 | ) | 2,058 | (10,040 | ) | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in short-term debt | 693 | — | 243 | — | 936 | (51 | ) | — | 695 | — | 644 | ||||||||||||||||||||||||||||
Proceeds from issuance of debt (original maturities greater than three months)(d) | 986 | — | 19,525 | — | 20,511 | 2,321 | 274 | 20,836 | (274 | ) | 23,157 | ||||||||||||||||||||||||||||
Payments on debt (original maturities greater than three months) | (222 | ) | — | (20,402 | ) | — | (20,625 | ) | (1,898 | ) | — | (16,918 | ) | (24 | ) | (18,840 | ) | ||||||||||||||||||||||
Proceeds from issuance of preferred stock(d) | — | 1,101 | — | (687 | ) | 414 | 361 | 2,000 | — | (1,100 | ) | 1,261 | |||||||||||||||||||||||||||
Dividends paid | (1,109 | ) | (31 | ) | (46 | ) | 2 | (1,184 | ) | (1,074 | ) | — | (30 | ) | — | (1,104 | ) | ||||||||||||||||||||||
Other financing activities(e) | (215 | ) | (4 | ) | (78 | ) | 33 | (264 | ) | (362 | ) | (9 | ) | (92 | ) | — | (463 | ) | |||||||||||||||||||||
Net cash provided by (used in) financing activities | 132 | 1,066 | (758 | ) | (652 | ) | (212 | ) | (703 | ) | 2,265 | 4,491 | (1,398 | ) | 4,655 | ||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 20 | — | 22 | — | 42 | (185 | ) | — | (60 | ) | — | (245 | ) | ||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,325 | ) | (197 | ) | (792 | ) | — | (3,315 | ) | (2,156 | ) | 1,978 | 101 | — | (77 | ) | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 13,762 | 2,291 | 7,443 | — | 23,496 | 11,258 | 23 | 6,567 | — | 17,848 | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 11,437 | $ | 2,093 | $ | 6,651 | $ | — | $ | 20,181 | $ | 9,102 | $ | 2,001 | $ | 6,668 | $ | — | $ | 17,771 | |||||||||||||||||||
Cash, cash equivalents and restricted cash – continuing operations at end of period | $ | 11,437 | $ | 2,093 | $ | 6,651 | $ | — | $ | 20,181 | $ | 9,102 | $ | 2,001 | $ | 6,668 | $ | — | $ | 17,771 | |||||||||||||||||||
_________
(a) | Amounts may not sum due to rounding. |
(b) | Includes reclassifications of $432 million and $541 million in the six months ended June 30, 2019 and 2018 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 $482 million and $216 million in Purchases of finance receivables, net in the six months ended June 30, 2019 and 2018 and $388 million and $173 million in Principal collections and recoveries on finance receivables in the six months ended June 30, 2019 and 2018 primarily related to the re-timing of cash receipts and payments between Automotive and GM Financial. |
(d) | Eliminations include $690 million and $1.4 billion in the six months ended June 30, 2019 and 2018 for Automotive cash injections in GM Cruise, inclusive of investments of $687 million and $1.1 billion in GM Cruise Preferred Shares in the six months ended June 30, 2019 and 2018. |
(e) | Includes the reclassification of Payments to purchase common stock. The prior period has been recast to reflect the changes. |
12