SEC Filing | General Motors Company

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gm-20230630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-34960

GENERAL MOTORS COMPANY

(Exact name of registrant as specified in its charter)

Delaware

27-0756180

(State or other jurisdiction of
incorporation or organization)

(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)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of July 13, 2023 there were 1,375,905,293 shares of common stock outstanding.

INDEX


			Page
PART I
Item 1.	Condensed Consolidated Financial Statements		1
	Condensed Consolidated Income Statements (Unaudited)		1
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)		1
	Condensed Consolidated Balance Sheets (Unaudited)		2
	Condensed Consolidated Statements of Cash Flows (Unaudited)		3
	Condensed Consolidated Statements of Equity (Unaudited)		4
	Notes to Condensed Consolidated Financial Statements		5
	Note 1.	Nature of Operations and Basis of Presentation	5

	Note 2.	Revenue	6
	Note 3.	Marketable and Other Securities	8
	Note 4.	GM Financial Receivables and Transactions	9
	Note 5.	Inventories	12
	Note 6.	Equipment on Operating Leases	12
	Note 7.	Equity in Net Assets of Nonconsolidated Affiliates	13
	Note 8.	Variable Interest Entities	13
	Note 9.	Debt	14
	Note 10.	Derivative Financial Instruments	15
	Note 11.	Product Warranty and Related Liabilities	17
	Note 12.	Pensions and Other Postretirement Benefits	18
	Note 13.	Commitments and Contingencies	18
	Note 14.	Income Taxes	21
	Note 15.	Restructuring and Other Initiatives	22
	Note 16.	Stockholders' Equity and Noncontrolling Interests	22
	Note 17.	Earnings Per Share	24

	Note 18.	Stock Incentive Plans	24
	Note 19.	Segment Reporting	24

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		48
Item 4.	Controls and Procedures		48
PART II
Item 1.	Legal Proceedings		49
Item 1A.	Risk Factors		49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		50
Item 5.	Other Information		50
Item 6.	Exhibits		51
Signature			52

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

PART I

Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net sales and revenue
Automotive	$	41,254	$	32,614	$	77,900	$	65,437
GM Financial	3,493		3,145		6,832		6,301
Total net sales and revenue (Note 2)	44,746		35,759		84,732		71,738
Costs and expenses
Automotive and other cost of sales	36,632		29,261		68,879		58,614
GM Financial interest, operating and other expenses	2,768		2,089		5,380		4,015
Automotive and other selling, general and administrative expense	2,558		2,293		5,105		4,797

Total costs and expenses	41,958		33,643		79,364		67,426
Operating income (loss)	2,789		2,116		5,367		4,313
Automotive interest expense	226		234		460		460
Interest income and other non-operating income, net	358		295		767		812

Equity income (loss) (Note 7)	108		(45)		129		247
Income (loss) before income taxes	3,029		2,132		5,803		4,912
Income tax expense (benefit) (Note 14)	522		490		950		462


Net income (loss)	2,507		1,642		4,853		4,449
Net loss (income) attributable to noncontrolling interests	59		50		109		181
Net income (loss) attributable to stockholders	$	2,566	$	1,692	$	4,962	$	4,631

Net income (loss) attributable to common stockholders	$	2,540	$	1,666	$	4,908	$	3,653

Earnings per share (Note 17)

Basic earnings per common share	$	1.83	$	1.14	$	3.53	$	2.51
Weighted-average common shares outstanding – basic	1,385		1,458		1,390		1,458


Diluted earnings per common share	$	1.83	$	1.14	$	3.52	$	2.49
Weighted-average common shares outstanding – diluted	1,389		1,465		1,396		1,468

Dividends declared per common share	$	0.09	$	—	$	0.18	$	—

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions) (Unaudited)


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Net income (loss)	$	2,507	$	1,642		$	4,853	$	4,449
Other comprehensive income (loss), net of tax (Note 16)
Foreign currency translation adjustments and other	(130)		(349)			18		(10)
Defined benefit plans	(44)		275			(78)		378
Other comprehensive income (loss), net of tax	(174)		(74)			(61)		368
Comprehensive income (loss)	2,333		1,568			4,792		4,817
Comprehensive loss (income) attributable to noncontrolling interests	59		61			118		206
Comprehensive income (loss) attributable to stockholders	$	2,393	$	1,629		$	4,910	$	5,023

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts) (Unaudited)


	June 30, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	23,074	$	19,153
Marketable debt securities (Note 3)	9,556		12,150

Accounts and notes receivable, net of allowance of $250 and $260	14,068		13,333
GM Financial receivables, net of allowance of $826 and $869 (Note 4; Note 8 at VIEs)	34,440		33,623
Inventories (Note 5)	17,912		15,366

Other current assets (Note 3; Note 8 at VIEs)	7,755		6,825
Total current assets	106,804		100,451
Non-current Assets

GM Financial receivables, net of allowance of $1,376 and $1,227 (Note 4; Note 8 at VIEs)	44,201		40,591
Equity in net assets of nonconsolidated affiliates (Note 7)	10,064		10,176
Property, net	47,941		45,248
Goodwill and intangible assets, net	4,950		4,945
Equipment on operating leases, net (Note 6; Note 8 at VIEs)	31,560		32,701
Deferred income taxes	20,640		20,539
Other assets (Note 3; Note 8 at VIEs)	9,672		9,386
Total non-current assets	169,029		163,586
Total Assets	$	275,833	$	264,037

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)	$	29,800	$	27,486
Short-term debt and current portion of long-term debt (Note 9)
Automotive	444		1,959
GM Financial (Note 8 at VIEs)	36,224		36,819
Accrued liabilities	26,249		24,910
Total current liabilities	92,718		91,173
Non-current Liabilities
Long-term debt (Note 9)
Automotive	15,981		15,885
GM Financial (Note 8 at VIEs)	65,394		60,036
Postretirement benefits other than pensions (Note 12)	4,148		4,193
Pensions (Note 12)	5,680		5,698
Other liabilities	15,938		14,767
Total non-current liabilities	107,142		100,579
Total Liabilities	199,861		191,752
Commitments and contingencies (Note 13)
Noncontrolling interest - Cruise stock incentive awards	287		357
Equity (Note 16)
Common stock, $0.01 par value	14		14
Additional paid-in capital	26,078		26,428
Retained earnings	53,517		49,251
Accumulated other comprehensive loss	(7,953)		(7,901)
Total stockholders’ equity	71,655		67,792
Noncontrolling interests	4,030		4,135
Total Equity	75,685		71,927
Total Liabilities and Equity	$	275,833	$	264,037

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) (Unaudited)


	Six Months Ended
	June 30, 2023		June 30, 2022
Cash flows from operating activities
Net income (loss)	$	4,853	$	4,449
Depreciation and impairment of Equipment on operating leases, net	2,476		2,427
Depreciation, amortization and impairment charges on Property, net	3,270		3,320
Foreign currency remeasurement and transaction (gains) losses	148		75

Undistributed earnings of nonconsolidated affiliates, net	193		(201)
Pension contributions and OPEB payments	(458)		(401)
Pension and OPEB income, net	(41)		(602)

Provision (benefit) for deferred taxes	(42)		79
Change in other operating assets and liabilities	278		(3,919)




Net cash provided by (used in) operating activities	10,677		5,228
Cash flows from investing activities
Expenditures for property	(4,683)		(3,829)
Available-for-sale marketable securities, acquisitions	(2,727)		(5,605)

Available-for-sale marketable securities, liquidations	5,404		3,838






Purchases of finance receivables, net	(17,810)		(17,229)
Principal collections and recoveries on finance receivables	13,922		13,660
Purchases of leased vehicles, net	(6,834)		(6,203)
Proceeds from termination of leased vehicles	6,673		7,549
Other investing activities	(770)		(409)


Net cash provided by (used in) investing activities	(6,824)		(8,227)
Cash flows from financing activities
Net increase (decrease) in short-term debt	70		1,015
Proceeds from issuance of debt (original maturities greater than three months)	26,235		23,596
Payments on debt (original maturities greater than three months)	(23,812)		(22,264)
Payments to purchase common stock	(869)		—
Issuance (redemption) of subsidiary stock (Note 16)	—		(2,127)
Dividends paid	(311)		(81)
Other financing activities	(470)		(901)


Net cash provided by (used in) financing activities	843		(762)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	108		(66)
Net increase (decrease) in cash, cash equivalents and restricted cash	4,805		(3,827)
Cash, cash equivalents and restricted cash at beginning of period	21,948		23,542
Cash, cash equivalents and restricted cash at end of period	$	26,753	$	19,715








Significant Non-cash Investing and Financing Activity
Non-cash property additions	$	5,695	$	4,163

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions) (Unaudited)


	Common Stockholders’								Noncontrolling Interests		Total Equity (Permanent Equity)		Noncontrolling Interest Cruise Stock Incentive Awards (Temporary Equity)
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss
Balance at January 1, 2022	$	15	$	27,061	$	41,937	$	(9,269)	$	6,071	$	65,815	$	—

Net income (loss)	—		—		2,939		—		(131)		2,807		—
Other comprehensive income (loss)	—		—		—		456		(13)		442		—
Issuance (redemption) of subsidiary preferred stock (Note 16)	—		—		(909)		—		(1,215)		(2,124)		—

Stock based compensation	—		(31)		(1)		—		—		(32)		289

Dividends to noncontrolling interests	—		—		(12)		—		(1)		(14)		—
Other	—		(15)		(74)		—		(31)		(120)		—
Balance at March 31, 2022	15		27,015		43,879		(8,814)		4,679		66,774		289

Net income (loss)	—		—		1,692		—		(50)		1,642		—
Other comprehensive income (loss)	—		—		—		(62)		(12)		(74)		—
Issuance (redemption) of subsidiary preferred stock	—		—		—		—		(3)		(3)		—

Stock based compensation	—		93		—		—		—		93		—

Dividends to noncontrolling interests	—		—		—		—		(50)		(50)		—
Other	—		153		(17)		—		(258)		(122)		(174)
Balance at June 30, 2022	$	15	$	27,261	$	45,554	$	(8,876)	$	4,306	$	68,260	$	115












Balance at January 1, 2023	$	14	$	26,428	$	49,251	$	(7,901)	$	4,135	$	71,927	$	357

Net income (loss)	—		—		2,395		—		(49)		2,346		—
Other comprehensive income (loss)	—		—		—		123		(9)		113		—

Purchase of common stock	—		(168)		(201)		—		—		(369)		—
Stock based compensation	—		(34)		(2)		—		—		(35)		7
Cash dividends paid on common stock	—		—		(126)		—		—		(126)		—

Other	—		97		—		—		7		103		(93)
Balance at March 31, 2023	14		26,323		51,318		(7,778)		4,084		73,961		271

Net income (loss)	—		—		2,566		—		(59)		2,507		—
Other comprehensive income (loss)	—		—		—		(174)		—		(174)		—

Purchase of common stock	—		(261)		(239)		—		—		(500)		—
Stock based compensation	—		88		(1)		—		—		86		9
Cash dividends paid on common stock	—		—		(124)		—		—		(124)		—
Dividends to noncontrolling interests	—		—		—		—		(61)		(61)		—
Other	—		(72)		(3)		—		67		(8)		7
Balance at June 30, 2023	$	14	$	26,078	$	53,517	$	(7,953)	$	4,030	$	75,685	$	287

Reference should be made to the notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Nature of Operations and Basis of Presentation

General Motors Company (sometimes referred to in this Quarterly Report on Form 10-Q as we, our, us, ourselves, the Company, General Motors or GM) designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. Additionally, we are investing in and growing an autonomous vehicle (AV) business. We also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). We analyze the results of our operations through the following segments: GM North America (GMNA), GM International (GMI), Cruise and GM Financial. Cruise is our global segment responsible for the development and commercialization of AV technology. Nonsegment operations are classified as Corporate. Corporate includes certain centrally recorded income and costs such as interest, income taxes, corporate expenditures and certain nonsegment-specific revenues and expenses.

The condensed consolidated financial statements are prepared in conformity with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2022 Form 10-K. Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

Throughout this report, we refer to General Motors Company and its consolidated subsidiaries in a simplified manner and on a collective basis, using words like "we," "our," "us" and "the Company." This drafting style is suggested by the SEC and is not meant to indicate that General Motors Company, the publicly traded parent company, or any particular subsidiary of the parent company, owns or operates any particular asset, business or property. The operations and businesses described in this report are owned and operated by distinct subsidiaries of General Motors Company.

Principles of Consolidation We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we are the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation. Our share of earnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of accounting when we are able to exercise significant influence over the operating and financial decisions of the affiliate.

GM Financial The amounts presented for GM Financial are adjusted to reflect the impact on GM Financial's deferred tax positions and provision for income taxes resulting from the inclusion of GM Financial in our consolidated tax returns and to eliminate the effect of transactions between GM Financial and the other members of the consolidated group. Accordingly, the amounts presented will differ from those presented by GM Financial on a stand-alone basis.

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 2. Revenue

The following table disaggregates our revenue by major source:



	Three Months Ended June 30, 2023
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	36,099	$	3,621	$	41	$	39,761	$	—	$	—	$	—	$	39,761
Used vehicles	256		6		—		262		—		—		—		262
Services and other	865		328		39		1,231		26		—		(26)		1,231
Automotive net sales and revenue	37,220		3,955		79		41,254		26		—		(26)		41,254
Leased vehicle income	—		—		—		—		—		1,820		—		1,820
Finance charge income	—		—		—		—		—		1,490		(4)		1,486
Other income	—		—		—		—		—		187		(1)		186
GM Financial net sales and revenue	—		—		—		—		—		3,498		(5)		3,493
Net sales and revenue	$	37,220	$	3,955	$	79	$	41,254	$	26	$	3,498	$	(31)	$	44,746



	Three Months Ended June 30, 2022
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	27,826	$	3,466	$	22	$	31,314	$	—	$	—	$	—	$	31,314
Used vehicles	137		6		—		143		—		—		—		143
Services and other	797		336		25		1,158		25		—		(25)		1,158
Automotive net sales and revenue	28,760		3,807		47		32,614		25		—		(25)		32,614
Leased vehicle income	—		—		—		—		—		1,989		—		1,989
Finance charge income	—		—		—		—		—		1,062		—		1,062
Other income	—		—		—		—		—		95		(1)		94
GM Financial net sales and revenue	—		—		—		—		—		3,146		(1)		3,145
Net sales and revenue	$	28,760	$	3,807	$	47	$	32,614	$	25	$	3,146	$	(26)	$	35,759



	Six Months Ended June 30, 2023
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	67,975	$	6,963	$	50	$	74,988	$	—	$	—	$	—	$	74,988
Used vehicles	431		11		—		442		—		—		—		442
Services and other	1,702		708		60		2,470		51		—		(51)		2,470
Automotive net sales and revenue	70,108		7,682		110		77,900		51		—		(51)		77,900
Leased vehicle income	—		—		—		—		—		3,638		—		3,638
Finance charge income	—		—		—		—		—		2,859		(6)		2,852
Other income	—		—		—		—		—		344		(3)		341
GM Financial net sales and revenue	—		—		—		—		—		6,841		(9)		6,832
Net sales and revenue	$	70,108	$	7,682	$	110	$	77,900	$	51	$	6,841	$	(60)	$	84,732

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)



	Six Months Ended June 30, 2022
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Vehicle, parts and accessories	$	56,398	$	6,479	$	27	$	62,904	$	—	$	—	$	—	$	62,904
Used vehicles	212		11		—		223		—		—		—		223
Services and other	1,606		630		73		2,309		51		—		(50)		2,310
Automotive net sales and revenue	58,216		7,120		100		65,437		51		—		(50)		65,437
Leased vehicle income	—		—		—		—		—		4,056		—		4,056
Finance charge income	—		—		—		—		—		2,072		—		2,072
Other income	—		—		—		—		—		175		(2)		173
GM Financial net sales and revenue	—		—		—		—		—		6,302		(2)		6,301
Net sales and revenue	$	58,216	$	7,120	$	100	$	65,437	$	51	$	6,302	$	(52)	$	71,738

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Adjustments to sales incentives for previously recognized sales increased revenue by an insignificant amount and $320 million in the three months ended June 30, 2023 and 2022.

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts of $4.5 billion and $3.3 billion at June 30, 2023 and December 31, 2022, which are included in Accrued liabilities and Other liabilities. We recognized revenue of $410 million and $818 million related to contract liabilities in the three and six months ended June 30, 2023 and $307 million and $726 million in the three and six months ended June 30, 2022. We expect to recognize revenue of $915 million in the six months ending December 31, 2023 and $1.2 billion, $1.0 billion and $1.3 billion in the years ending December 31, 2024, 2025 and thereafter related to contract liabilities at June 30, 2023.

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GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 3. Marketable and Other Securities

The following table summarizes the fair value of cash equivalents and marketable debt securities, which approximates cost:


	Fair Value Level	June 30, 2023		December 31, 2022
Cash and cash equivalents
Cash and time deposits		$	10,542	$	8,921
Available-for-sale debt securities
U.S. government and agencies	2	19		1,012
Corporate debt	2	3,731		2,778
Sovereign debt	2	1,404		1,828
Total available-for-sale debt securities – cash equivalents		5,155		5,618
Money market funds	1	7,377		4,613
Total cash and cash equivalents(a)		$	23,074	$	19,153
Marketable debt securities

U.S. government and agencies	2	$	3,910	$	4,357
Corporate debt	2	3,687		5,147
Mortgage and asset-backed	2	588		538
Sovereign debt	2	1,372		2,108
Total available-for-sale debt securities – marketable securities(b)		$	9,556	$	12,150
Restricted cash
Cash and cash equivalents		$	379	$	341
Money market funds	1	3,301		2,455
Total restricted cash		$	3,680	$	2,796

Available-for-sale debt securities included above with contractual maturities(c)
Due in one year or less		$	8,364
Due between one and five years		5,675
Total available-for-sale debt securities with contractual maturities		$	14,038

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(a)Includes $1.9 billion and $1.5 billion in Cruise at June 30, 2023 and December 31, 2022.

(b)Includes $215 million and $1.4 billion in Cruise at June 30, 2023 and December 31, 2022.

(c)Excludes mortgage and asset-backed securities of $588 million at June 30, 2023 as these securities are not due at a single maturity date.

Proceeds from the sale of available-for-sale debt securities sold prior to maturity were $638 million and $494 million in the three months ended June 30, 2023 and 2022 and $1.0 billion in the six months ended June 30, 2023 and 2022. Net unrealized losses on available-for-sale debt securities were insignificant in the three months ended June 30, 2023 and 2022. Net unrealized gains on available-for-sale debt securities were insignificant in the six months ended June 30, 2023 and net unrealized losses on available-for-sale debt securities were $261 million in the six months ended June 30, 2022. Cumulative unrealized losses on available-for-sale debt securities were $303 million and $344 million at June 30, 2023 and December 31, 2022.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total shown in the condensed consolidated statement of cash flows:


	June 30, 2023
Cash and cash equivalents	$	23,074
Restricted cash included in Other current assets	3,212
Restricted cash included in Other assets	468
Total	$	26,753

Table of Contents

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)

Note 4. GM Financial Receivables and Transactions


	June 30, 2023						December 31, 2022
	Retail		Commercial(a)		Total		Retail		Commercial(a)		Total


GM Financial receivables, net of fees	$	69,722	$	11,120	$	80,843	$	65,322	$	10,988	$	76,310
Less: allowance for loan losses	(2,166)		(36)		(2,202)		(2,062)		(34)		(2,096)
GM Financial receivables, net	$	67,557	$	11,084	$	78,641	$	63,260	$	10,954	$	74,214

Fair value of GM Financial receivables utilizing Level 2 inputs					$	11,084					$	10,954
Fair value of GM Financial receivables utilizing Level 3 inputs					$	66,754					$	62,150

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(a)Net of dealer cash management balances of $2.3 billion and $1.9 billion at June 30, 2023 and December 31, 2022. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Allowance for loan losses at beginning of period	$	2,152	$	1,928	$	2,096	$	1,886

Provision for loan losses	167		198		298		320
Charge-offs	(323)		(247)		(645)		(521)
Recoveries	191		161		378		339
Effect of foreign currency and other	14		(14)		74		4
Allowance for loan losses at end of period	$	2,202	$	2,027	$	2,202	$	2,027

The allowance for loan losses as a percentage of finance receivables, net was 2.7% at June 30, 2023 and December 31, 2022.

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at June 30, 2023 and December 31, 2022:


	Year of Origination												June 30, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
Prime – FICO score 680 and greater	$	13,278	$	18,833	$	11,095	$	6,354	$	1,609	$	664	$	51,834	74.3	%
Near-prime – FICO score 620 to 679	1,743		2,763		2,165		1,191		509		243