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) February 7, 2017
___________________
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) 556-5000
(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)) | |
ITEM 2.02 Results of Operations and Financial Condition
On February 7, 2017 General Motors Company (GM) issued a news release and supplemental materials on the subject of its 2016 fourth quarter and full year consolidated 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 2016 fourth quarter and full year consolidated 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 Dated February 7, 2017 |
Exhibit 99.2 | Financial Highlights Dated February 7, 2017 |
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) | ||
/s/ THOMAS S. TIMKO | ||
Date: February 7, 2017 | By: | Thomas S. Timko Vice President, Controller and Chief Accounting Officer |
2016 FULL-YEAR AND
FOURTH-QUARTER EARNINGS
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 7.5% $12.5 B $6.9 B $6.12
Vs. 2015 +0.4 pts +15.9 % +$4.7 B +21.9 %
FULL-YEAR 2016 RESULTS OVERVIEW
GM Reports Record Full-Year Earnings Per Share
• Strong full-year net income and records for revenue, EBIT-adjusted and EBIT-adjusted margin
• Fourth-quarter EPS-diluted of $1.19; EPS diluted-adjusted of $1.28
• Fourth-quarter net income of $1.8 billion and EBIT-adjusted of $2.4 billion
• Returned $4.8 billion to shareholders in 2016
2017 OUTLOOK: GM EXPECTS ANOTHER YEAR OF STRONG EARNINGS
Net Revenue Net Income
Auto Operating
Cash Flow
EPS-Diluted
GAAP $166.4 B $9.4 B $14.3 B $6.00
Vs. 2015 +9.2 % (2.7) % +$4.3 B +1.5 %
• GM expects to deliver full-year 2017 EPS-diluted and
diluted-adjusted of $6.00-$6.50; maintain or improve
EBIT-adjusted and EBIT-adjusted margin; and generate
higher revenues, compared to 2016. The company also
expects to generate about $15 billion in automotive
operating cash flow and about $6 billion in adjusted-
automotive free cash flow. These measures do not
consider potential future adjustments.
• GM expects its global volume from new or refreshed
vehicles to grow to 38 percent from 2017-2020, up from
26 percent in the 2011-2016 period. New or refreshed
crossovers, trucks and SUVs are expected to represent a
majority of this volume between 2017-2020.
• The company raised its cost efficiency target for
2015-2018 to $6.5 billion, an increase of $1 billion.
“By almost any measure, 2016 was a great year for our business and I am confident we can
achieve even stronger results. We’ll work to build on our momentum, while continuing to
drive our company to innovate and shape the future of mobility.”
– Mary Barra, Chairman & CEO
2018 Chevrolet Equinox Premier
Exhibit 99.1
Net Revenue Net Income
Auto Operating
Cash Flow
EPS-Diluted
GAAP $43.9 B $1.8 B $4.3 B $1.19
Vs. 2015 +10.8 % (70.7) % +2.1 B (69.6) %
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 5.4% $2.4 B $1.7 B $1.28
Vs. 2015 (1.5) pts (13.7) % +$2.0 B (7.9) %
North America Europe International Ops South America GM Financial (EBT)
2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
12.0 11.0 (0.3) (0.8) 1.1 1.4 (0.4) (0.6) 0.9 0.8
Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15
2.6 2.8 (0.2) (0.3) 0.3 0.4 (0.1) (0.0) 0.2 0.2
SEGMENT RESULTS (EBIT-ADJUSTED - $B)
Calendar-year (CY)
records for EBIT-adj. of
$12.0 billion and revenue
of $119 billion. Achieved
10.1 percent EBIT-adj.
margin for the
year – the second
consecutive year this
margin has been 10
percent or greater.
Reduced losses in 2016
by $0.6 billion during the
year. Without the
negative $0.3-billion
impact of Brexit, GM
would have achieved its
objective of breakeven
for the year.
Q4 and CY results
include strong China
equity income of $0.5
billion and $2.0 billion,
respectively.
Lower costs contributed
to $0.2-billion year-over-
year improvement
during 2016.
In 2016, posted record
revenues of $9.6 billion
and record 2016 EBT-
adj. of $0.9 billion.
Earning assets grew 36
percent to about
$77 billion, supporting
expected future
earnings growth.
“Solid results in the fourth quarter capped another record year of earnings and beat the
commitments we outlined for 2016. We’ll stay focused on delivering results that will enable
us to return capital and create more shareholder value.”
– Chuck Stevens, Executive Vice President and CFO
Q4 RESULTS OVERVIEW
Fourth-quarter 2016 net income of $1.8 billion
includes a net loss from special items of
$0.1 billion, and an unfavorable $0.3 billion
foreign exchange impact, compared to the prior
year. Fourth-quarter 2015 net income of
$6.3 billion included a net gain from special items
of $4.0 billion, primarily related to the reversal of
deferred tax asset valuation allowances in Europe.
Fourth-quarter 2016 EBIT-adjusted of $2.4 billion
includes an unfavorable $0.5 billion foreign
exchange impact, compared to the prior year.
FOURTH-QUARTER RESULTS
2016 2015
Cash and Current Marketable Securities 21.6 20.3
Total Auto Liquidity 35.6 32.5
LIQUIDITY ($B)
GM’s 2016 year-end global underfunded position was $18.3 billion, down from
$21.2 billion at the end of 2015. The year-end global pension obligation of
$92.9 billion was about 80-percent funded. The company’s 2016 year-end U.S.
defined-benefit pension plan underfunded position was $7.2 billion, down from
$10.4 billion at the end of 2015. The year-end U.S. defined-benefit pension plan
obligation of $68.8 billion was about 90-percent funded.
Based on current assumptions, GM doesn’t expect to make significant, mandatory
contributions to its U.S. qualified pension plans for the next five years.
PENSION UPDATE
Returned $4.8 billion to shareholders in
2016 through share buybacks of
$2.5 billion and dividends of $2.3 billion.
Since 2012, GM has returned more than
$18 billion, which represents more than
90 percent of available free cash flow to
shareholders during the 2012-2016 period.
CAPITAL RETURN
For the year ended Dec. 31, 2016, GM sold
a record 10 million vehicles around the
world, up 1.2 percent from 2015. In Q4, GM
sold 2.78 million vehicles, up 3.3 percent
compared to Q4 2015. December 2016
global volume of 1.05 million units was
the highest in the company’s history,
capping the fourth consecutive record
year for global deliveries.
For the full year, GM sold 3.04 million
vehicles in the U.S. and increased retail
share 0.5 percentage points – more than
any full-line automaker. In China,
deliveries increased 7.1 percent to a record
3.87 million vehicles. In Europe, Opel/
Vauxhall posted a 4.0-percent sales
increase.
For more details on GM’s global sales,
click here.
GLOBAL VEHICLE SALES
Led by strong gains in midsize
pickups, small crossovers and large
SUVs, Chevrolet was the fastest-
growing U.S. brand in 2016, gaining
0.5 percentage points of U.S. retail
market share.
Cadillac volume in China rose
46 percent to 116,406 – the first time it
has eclipsed 100,000 in China during a
single year – driving global brand sales
up 11 percent to a 30-year high.
In 2016, Opel/Vauxhall improved
market share in 18 of 22 European
markets, including Germany, led by
the European Car of the Year, Opel
Astra, which was up more than
25 percent versus 2015.
Crossover momentum: Chevrolet Trax
and Buick Encore combined retail
sales in the U.S. increased 28 percent
in 2016. In 2017, GM plans to launch
the all-new Chevrolet Equinox and
Traverse, and GMC Terrain.
PRODUCT HIGHLIGHTS
2018 GMC Terrain SLT (left) and Denali (right)
2017 Chevrolet Colorado ZR2
2017 Buick Encore Premium
Forward-looking statement
In this press release, and in reports we subsequently file and have previously filed with the SEC on Forms 10-K and 10-Q and file or furnish on Form 8-K, and in related
comments by our management, we use words like “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 to identify forward-looking statements that represent our current judgment about possible future
events. In making these statements we rely on assumptions and analyses 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 judgments are reasonable, but these statements are not
guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors, both positive and negative. These factors,
which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K, include among others the following: (1) our ability to deliver new products,
services and customer experiences in response to new participants in the automotive industry; (2) our ability to fund and introduce new and improved vehicle models that
are able to attract a sufficient number of consumers; (3) the success of our full-size pick-up trucks and SUVs, which may be affected by increases in the price of oil; (4)
global automobile market sales volume, which can be volatile; (5) aggressive competition in China; (6) the international scale and footprint of our operations which exposes
us to a variety of domestic and foreign political, economic and regulatory risks, including the risk of changes in existing, the adoption of new, or the introduction of novel
interpretations of, laws regulations, policies or other activities of governments, agencies and similar organizations particularly laws, regulations and policies relating to free
trade agreements, vehicle safety including recalls, and, including such actions that may affect the production, licensing, distribution or sale of our products, the cost
thereof or applicable tax rates; (7) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (8) our ability to comply
with extensive laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (9) costs and risks associated with litigation and
government investigations including the potential imposition of damages, substantial fines, civil lawsuits and criminal penalties, interruptions of business, modification of
business practices, equitable remedies and other sanctions against us in connection with various legal proceedings and investigations relating to our various recalls; (10)
our ability to comply with the terms of the DPA; (11) our ability to maintain quality control over our vehicles and avoid material vehicle recalls and the cost and effect on
our reputation and products; (12) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production
schedules; (13) our dependence on our manufacturing facilities around the world; (14) our highly competitive industry, which is characterized by excess manufacturing
capacity and the use of incentives and the introduction of new and improved vehicle models by our competitors; (15) our ability to realize production efficiencies and to
achieve reductions in costs as we implement operating effectiveness initiatives throughout our automotive operations; (16) our ability to successfully restructure our
operations in various countries; (17) our ability to manage risks related to security breaches and other disruptions to our vehicles, information technology networks and
systems; (18) our continued ability to develop captive financing capability through GM Financial; (19) significant increases in our pension expense or projected pension
contributions resulting from changes in the value of plan assets, the discount rate applied to value the pension liabilities or mortality or other assumption changes; and
(20) significant changes in economic, political, regulatory environment, market conditions, foreign currency exchange rates or political stability in the countries in which
we operate, particularly China, with the effect of competition from new market entrants and in the United Kingdom with passage of a referendum to discontinue
membership in the European Union.
We caution readers not to place undue reliance on forward-looking statements. 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.
General Motors Co. (NYSE: GM, TSX: GMM) and its partners produce
vehicles in 30 countries, and the company has leadership positions
in the world's largest and fastest-growing automotive markets. GM,
its subsidiaries and joint venture entities sell vehicles under the
Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel,
Vauxhall and Wuling brands. More information on the company and
its subsidiaries, including OnStar, a global leader in vehicle safety,
security and information services, can be found at http://
www.gm.com.
Tom Henderson
GM Finance Communications
313-410-2704
tom.e.henderson@gm.com
Randy Arickx
GM Investor Relations
313-268-7070
randy.c.arickx@gm.com
Media Investors
CONTACT
Exhibit 99.2
Exhibit 1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
General Motors Company's (GM) non-GAAP measures include earnings before interest and taxes adjusted for special items, presented net of noncontrolling interests (EBIT-adjusted), earnings per share (EPS)-diluted-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 have not been audited or reviewed by GM's independent auditors.
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 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 is used by management and can be used by investors to review GM's 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 related to goodwill, 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.
EPS-diluted-adjusted is used by management and can be used by investors to review GM's consolidated diluted earnings per share results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less certain adjustments noted above for EBIT-adjusted and gains or losses on the extinguishment of debt obligations on an after-tax basis as well as redemptions of preferred stock 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.
ROIC-adjusted is used by management and can be used by investors to review GM's investment and capital allocation decisions. GM defines ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by 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 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 is used by management and can be used by investors to review the liquidity of GM's 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. GM measures adjusted automotive free cash flow as automotive cash flow from operations less capital expenditures adjusted for management actions, primarily related to strengthening its balance sheet, such as prepayments of debt and discretionary contributions to employee benefit plans.
1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles segment profit (loss) to Net income attributable to stockholders (dollars in millions):
Three Months Ended | Years Ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||
Operating segments | |||||||||||||||
GM North America (GMNA) | $ | 2,618 | $ | 2,771 | $ | 12,047 | $ | 11,026 | |||||||
GM Europe (GME) | (246 | ) | (298 | ) | (257 | ) | (813 | ) | |||||||
GM International Operations (GMIO) | 316 | 408 | 1,135 | 1,397 | |||||||||||
GM South America (GMSA) | (65 | ) | (47 | ) | (374 | ) | (622 | ) | |||||||
General Motors Financial Company, Inc. (GM Financial)(a) | 193 | 167 | 913 | 837 | |||||||||||
Total operating segments(b) | 2,816 | 3,001 | 13,464 | 11,825 | |||||||||||
Corporate and eliminations | (431 | ) | (236 | ) | (934 | ) | (1,011 | ) | |||||||
EBIT-adjusted | 2,385 | 2,765 | 12,530 | 10,814 | |||||||||||
Special items | |||||||||||||||
Ignition switch recall and related legal matters(c) | (235 | ) | (60 | ) | (300 | ) | (1,785 | ) | |||||||
Thailand asset impairment(d) | — | — | — | (297 | ) | ||||||||||
Venezuela currency devaluation and asset impairment(e) | — | — | — | (720 | ) | ||||||||||
Russia exit costs(f) | — | 7 | — | (438 | ) | ||||||||||
Gain on extinguishment of debt | — | 449 | — | 449 | |||||||||||
Other | — | 11 | — | 41 | |||||||||||
Total special items | (235 | ) | 407 | (300 | ) | (2,750 | ) | ||||||||
Automotive interest income | 45 | 39 | 185 | 169 | |||||||||||
Automotive interest expense | (150 | ) | (113 | ) | (572 | ) | (443 | ) | |||||||
Income tax benefit (expense)(g) | (210 | ) | 3,168 | (2,416 | ) | 1,897 | |||||||||
Net income attributable to stockholders | $ | 1,835 | $ | 6,266 | $ | 9,427 | $ | 9,687 | |||||||
__________
(a) | GM Financial amounts represent earnings before income taxes-adjusted. |
(b) | GM's automotive operations' interest income and interest expense, Maven, corporate expenditures including autonomous vehicle-related engineering and other costs and certain nonsegment specific revenues and expenses are recorded centrally in Corporate. |
(c) | These adjustments were excluded because of the unique events associated with the ignition switch recall. These events included the creation of the ignition switch recall compensation program, as well as various investigations, inquiries, and complaints from various constituents. |
(d) | These adjustments were excluded because of the significant restructuring of our Thailand operations and the strategic actions taken to focus on the production of pick-up trucks and SUVs. |
(e) | This adjustment was excluded because of the devaluation of the Venezuela Bolivar Fuerte (BsF), our inability to transact at the Complementary System of Foreign Currency Administration (SICAD) rate to obtain U.S. Dollars and the market restrictions imposed by the Venezuelan government. |
(f) | These adjustments were excluded because of our decision to exit Russia. The exit costs primarily consisted of sales incentives, dealer restructuring and other contract cancellation costs and asset impairments. |
(g) Income tax benefit (expense) includes $(89) million and $153 million in tax effects due to the adjustments in the three months ended December 31, 2016 and 2015 and $(114) million and $(201) million in tax effects due to adjustments in the year ended December 31, 2016 and 2015. In addition, there was an adjustment of $4.0 billion primarily related to the valuation allowance reversal in Europe in the three months ended December 31, 2015.
2
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted used in the calculation of ROIC-adjusted (dollars in millions):
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income attributable to stockholders | $ | 9,427 | $ | 9,687 | $ | 3,949 | |||||
Income tax expense (benefit) | 2,416 | (1,897 | ) | 228 | |||||||
Gain on extinguishment of debt | — | (449 | ) | (202 | ) | ||||||
Automotive interest expense | 572 | 443 | 403 | ||||||||
Automotive interest income | (185 | ) | (169 | ) | (211 | ) | |||||
Adjustments | |||||||||||
Ignition switch recall and related legal matters(a) | 300 | 1,785 | 400 | ||||||||
Recall campaign catch-up adjustment(b) | — | — | 874 | ||||||||
Thailand asset impairments(c) | — | 297 | 158 | ||||||||
Venezuela currency devaluation and asset impairment(d) | — | 720 | 419 | ||||||||
Russia exit costs and asset impairment(e) | — | 438 | 245 | ||||||||
Goodwill impairment | — | — | 120 | ||||||||
Other | — | (41 | ) | 111 | |||||||
Total adjustments | 300 | 3,199 | 2,327 | ||||||||
EBIT-adjusted | $ | 12,530 | $ | 10,814 | $ | 6,494 | |||||
________
(a) | These adjustments were excluded because of the unique events associated with the ignition switch recall. These events included the creation of the ignition switch recall compensation program, as well as various investigations, inquiries, and complaints from various constituents. |
(b) | This adjustment was excluded because it resulted from our decision to change the method we use to estimate costs associated with recall campaigns in GMNA. |
(c) | These adjustments were excluded because of the significant restructuring of our Thailand operations and the strategic actions taken to focus on the production of pick-up trucks and SUVs. |
(d) | This adjustment was excluded because of the devaluation of the BsF, our inability to transact at the SICAD rate to obtain U.S. Dollars and the market restrictions imposed by the Venezuelan government. |
(e) | These adjustments were excluded because they were driven by deteriorating market conditions in Russia, which led to asset impairments in 2014 and our decision to exit the Russia market in 2015. The Russia exit costs primarily consisted of sales incentives, dealer restructuring and other contract cancellation costs, and asset impairments. |
3
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions):
Years Ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
Diluted earnings per common share | $ | 9,427 | $ | 6.00 | $ | 9,686 | $ | 5.91 | $ | 2,786 | $ | 1.65 | |||||||||||
Adjustments | |||||||||||||||||||||||
Gain on extinguishment of debt | — | — | (449 | ) | (0.27 | ) | (202 | ) | (0.12 | ) | |||||||||||||
Redemption and purchase of Series A preferred stock | — | — | — | — | 794 | 0.47 | |||||||||||||||||
All other adjustments(a) | 300 | 0.19 | 3,199 | 1.95 | 2,327 | 1.38 | |||||||||||||||||
Total adjustments | 300 | 0.19 | 2,750 | 1.68 | 2,919 | 1.73 | |||||||||||||||||
Tax effect on adjustments(b) | (114 | ) | (0.07 | ) | (201 | ) | (0.13 | ) | (561 | ) | (0.33 | ) | |||||||||||
Tax adjustments(c) | — | — | (4,001 | ) | (2.44 | ) | — | — | |||||||||||||||
EPS-diluted-adjusted | $ | 9,613 | $ | 6.12 | $ | 8,234 | $ | 5.02 | $ | 5,144 | $ | 3.05 | |||||||||||
________
(a) | Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted on the preceding page for the details of each individual adjustment. |
(b) | The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction in which the adjustment relates. |
(c) | These adjustments primarily consist of the tax benefit related to the valuation allowance reversal in Europe. The adjustment was excluded because valuation allowance reversals are not considered part of our core operations. |
We define return on equity (ROE) as Net income 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):
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income attributable to stockholders | $ | 9.4 | $ | 9.7 | $ | 3.9 | |||||
Average equity | $ | 43.6 | $ | 37.0 | $ | 41.3 | |||||
ROE | 21.6 | % | 26.2 | % | 9.6 | % | |||||
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
EBIT-adjusted(a) | $ | 12.5 | $ | 10.8 | $ | 6.5 | |||||
Average equity | $ | 43.6 | $ | 37.0 | $ | 41.3 | |||||
Add: Average automotive debt and interest liabilities (excluding capital leases) | 10.0 | 8.1 | 6.8 | ||||||||
Add: Average automotive net pension & OPEB liability | 24.5 | 28.3 | 26.5 | ||||||||
Less: Average automotive net income tax asset | (34.8 | ) | (33.6 | ) | (32.4 | ) | |||||
ROIC-adjusted average net assets | $ | 43.3 | $ | 39.8 | $ | 42.2 | |||||
ROIC-adjusted | 28.9 | % | 27.2 | % | 15.4 | % | |||||
________
(a) Refer to reconciliation of Net Income attributable to stockholders under U.S. GAAP to EBIT-adjusted on the preceding page.
4
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 | Years Ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||
Net automotive cash provided by operating activities | $ | 4,300 | $ | 2,235 | $ | 14,321 | $ | 9,979 | |||||||
Capital expenditures | (2,600 | ) | (2,524 | ) | (9,435 | ) | (7,784 | ) | |||||||
Adjustment – discretionary pension plan contributions | — | — | 1,982 | — | |||||||||||
Adjusted automotive free cash flow | $ | 1,700 | $ | (289 | ) | $ | 6,868 | $ | 2,195 | ||||||
For the year ending December 31, 2017 GM expects to continue to generate strong consolidated financial results including improved net sales and revenue, EBIT-adjusted and EBIT-adjusted margins that equal or exceed the corresponding amounts in 2016, ROIC-adjusted of greater than 25%, Automotive operating cash flow of approximately $15 billion, adjusted automotive free cash flow of approximately $6 billion and EPS-diluted and EPS-diluted-adjusted of between $6.00 and $6.50. GM does not consider the potential future impact of adjustments on the expected financial results. The company expects these financial results in part to be driven by favorable shifts in mix for our new or refreshed product launches, including crossovers.
The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to expected adjusted automotive free cash flow (dollars in billions):
Year Ending December 31, 2017 | |||
Automotive net cash provided by operating activities | $ | 15 | |
Less: expected capital expenditures | (9 | ) | |
Adjusted automotive free cash flow | $ | 6 | |
5
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize key financial information by segment (dollars in millions):
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 31,286 | $ | 4,415 | $ | 3,282 | $ | 2,213 | $ | 35 | $ | 41,231 | $ | 2,692 | $ | (5 | ) | $ | 43,918 | ||||||||||||||||||||
Expenditures for property | $ | 1,983 | $ | 355 | $ | 167 | $ | 89 | $ | 5 | $ | 1 | $ | 2,600 | $ | 36 | $ | — | $ | 2,636 | |||||||||||||||||||
Depreciation and amortization | $ | 1,102 | $ | 112 | $ | 112 | $ | 59 | $ | 6 | $ | (2 | ) | $ | 1,389 | $ | 1,399 | $ | — | $ | 2,788 | ||||||||||||||||||
Impairment charges | $ | 23 | $ | 38 | $ | 2 | $ | — | $ | — | $ | — | $ | 63 | $ | — | $ | — | $ | 63 | |||||||||||||||||||
Equity income(a) | $ | (2 | ) | $ | — | $ | 524 | $ | — | $ | 1 | $ | — | $ | 523 | $ | 42 | $ | — | $ | 565 | ||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Three Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 27,671 | $ | 4,712 | $ | 3,445 | $ | 1,881 | $ | 39 | $ | 37,748 | $ | 1,878 | $ | (5 | ) | $ | 39,621 | ||||||||||||||||||||
Expenditures for property | $ | 1,913 | $ | 368 | $ | 108 | $ | 135 | $ | 5 | $ | (5 | ) | $ | 2,524 | $ | 26 | $ | — | $ | 2,550 | ||||||||||||||||||
Depreciation and amortization | $ | 952 | $ | 127 | $ | 106 | $ | 64 | $ | 4 | $ | — | $ | 1,253 | $ | 801 | $ | — | $ | 2,054 | |||||||||||||||||||
Impairment charges | $ | 20 | $ | 24 | $ | 11 | $ | — | $ | — | $ | — | $ | 55 | $ | — | $ | — | $ | 55 | |||||||||||||||||||
Equity income(a) | $ | 5 | $ | 1 | $ | 579 | $ | — | $ | — | $ | — | $ | 585 | $ | 30 | $ | — | $ | 615 | |||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 119,022 | $ | 18,707 | $ | 11,749 | $ | 7,223 | $ | 148 | $ | 156,849 | $ | 9,558 | $ | (27 | ) | $ | 166,380 | ||||||||||||||||||||
Expenditures for property | $ | 7,333 | $ | 1,151 | $ | 583 | $ | 358 | $ | 12 | $ | (2 | ) | $ | 9,435 | $ | 107 | $ | — | $ | 9,542 | ||||||||||||||||||
Depreciation and amortization | $ | 4,281 | $ | 446 | $ | 439 | $ | 261 | $ | 18 | $ | (5 | ) | $ | 5,440 | $ | 4,712 | $ | — | $ | 10,152 | ||||||||||||||||||
Impairment charges | $ | 66 | $ | 122 | $ | 68 | $ | — | $ | — | $ | — | $ | 256 | $ | — | $ | — | $ | 256 | |||||||||||||||||||
Equity income(a) | $ | 160 | $ | — | $ | 1,970 | $ | — | $ | 1 | $ | — | $ | 2,131 | $ | 151 | $ | — | $ | 2,282 | |||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 106,622 | $ | 18,704 | $ | 12,626 | $ | 7,820 | $ | 150 | $ | 145,922 | $ | 6,454 | $ | (20 | ) | $ | 152,356 | ||||||||||||||||||||
Expenditures for property | $ | 5,688 | $ | 1,070 | $ | 480 | $ | 485 | $ | 66 | $ | (5 | ) | $ | 7,784 | $ | 90 | $ | — | $ | 7,874 | ||||||||||||||||||
Depreciation and amortization | $ | 3,745 | $ | 412 | $ | 436 | $ | 268 | $ | 16 | $ | (3 | ) | $ | 4,874 | $ | 2,297 | $ | — | $ | 7,171 | ||||||||||||||||||
Impairment charges | $ | 370 | $ | 117 | $ | 324 | $ | 35 | $ | — | $ | — | $ | 846 | $ | — | $ | — | $ | 846 | |||||||||||||||||||
Equity income(a) | $ | 20 | $ | 2 | $ | 2,056 | $ | — | $ | — | $ | — | $ | 2,078 | $ | 116 | $ | — | $ | 2,194 | |||||||||||||||||||
_________
(a) | Includes automotive China joint ventures equity income of $525 million and $572 million in the three months ended December 31, 2016 and 2015 and $2.0 billion and $2.1 billion in the years ended December 31, 2016 and 2015. |
6
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Vehicle Sales
GM presents both wholesale and retail vehicle sales data to assist in the analysis of its revenue and market share. GM does not currently export vehicles to Cuba, Iran, North Korea, Sudan or Syria. Accordingly, these countries are excluded from industry sales data and corresponding calculations of GM's market share.
Wholesale vehicle sales data, which represents sales directly to dealers and others, including sales to fleet customers, is the measure that correlates to GM's revenue from the sale of vehicles, which is the largest component of Automotive net sales and revenue. Wholesale vehicle sales exclude vehicles sold by joint ventures. In the year ended December 31, 2016 46.3% of GM's wholesale vehicle sales volume was generated outside the U.S. The following table summarizes total wholesale vehicle sales of new vehicles by automotive segment (vehicles in thousands):
Three Months Ended | Years Ended | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||
GMNA | 1,050 | 913 | 3,958 | 3,558 | |||||||
GME | 282 | 280 | 1,162 | 1,127 | |||||||
GMIO | 153 | 157 | 559 | 588 | |||||||
GMSA | 168 | 168 | 568 | 603 | |||||||
Worldwide | 1,653 | 1,518 | 6,247 | 5,876 | |||||||
7
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Retail vehicle sales data, which represents sales to end customers based upon the good faith estimates of management, including sales to fleet customers, does not correlate directly to the revenue GM recognizes during the period. However, retail vehicle sales data is indicative of the underlying demand for GM vehicles. Market share information is based primarily on retail vehicle sales volume. In countries where retail vehicle sales data is not readily available, other data sources such as wholesale or forecast volumes are used to estimate retail vehicle sales to end customers.
Retail vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on the percentage of ownership in the joint venture. Certain joint venture agreements in China allow for the contractual right to report vehicle sales on non-GM trademarked vehicles by those joint ventures. Retail vehicle sales data includes vehicles used by dealers under courtesy transportation programs and vehicles sold through the dealer registration channel primarily in Europe. This sales channel consists primarily of dealer demonstrator, loaner and self-registered vehicles which are not eligible to be sold as new vehicles after being registered by dealers. Certain fleet sales that are accounted for as operating leases are included in retail vehicle sales at the time of delivery to daily rental car companies. The following table summarizes total retail sales volume, or estimated sales volume where retail sales volume is not available, by geographic region (vehicles in thousands):
Three Months Ended | Years Ended | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||
United States | |||||||||||
Chevrolet - Cars | 188 | 177 | 736 | 767 | |||||||
Chevrolet - Trucks | 251 | 239 | 915 | 888 | |||||||
Chevrolet - Crossovers | 125 | 113 | 445 | 471 | |||||||
Cadillac | 51 | 50 | 170 | 175 | |||||||
Buick | 60 | 55 | 230 | 223 | |||||||
GMC | 155 | 149 | 547 | 558 | |||||||
Total United States | 830 | 783 | 3,043 | 3,082 | |||||||
Canada, Mexico and Other | 171 | 144 | 587 | 531 | |||||||
Total North America | 1,001 | 927 | 3,630 | 3,613 | |||||||
Europe | |||||||||||
Opel/Vauxhall | 264 | 262 | 1,159 | 1,113 | |||||||
Chevrolet(a) | 12 | 13 | 48 | 63 | |||||||
Total Europe | 276 | 275 | 1,207 | 1,176 | |||||||
Asia/Pacific, Middle East and Africa(b) | |||||||||||
Chevrolet | 319 | 326 | 987 | 1,174 | |||||||
Wuling | 384 | 406 | 1,352 | 1,519 | |||||||
Buick | 339 | 350 | 1,183 | 1,035 | |||||||
Baojun | 277 | 195 | 755 | 499 | |||||||
Cadillac | 44 | 27 | 124 | 87 | |||||||
Other | 45 | 55 | 186 | 211 | |||||||
Total Asia/Pacific, Middle East and Africa(b) | 1,408 | 1,359 | 4,587 | 4,525 | |||||||
South America(c) | 162 | 160 | 584 | 645 | |||||||
Total Worldwide | 2,847 | 2,721 | 10,008 | 9,959 | |||||||
(a) Includes Buick, Cadillac, GMC and Daewoo sales.
(b) China is wholesale data.
(c) Primarily Chevrolet.
8
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The wholesale vehicle sales at GM's China joint ventures presented in the following table are included in GM's retail vehicle sales on the preceding page (vehicles in thousands):
Three Months Ended | Years Ended | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||
SAIC General Motors Sales Co., Ltd. | 563 | 553 | 1,806 | 1,711 | |||||||
SAIC GM Wuling Automobile Co., Ltd. and FAW-GM Light Duty Commercial Vehicle Co., Ltd. | 661 | 601 | 2,108 | 2,019 | |||||||
Three Months Ended | Years Ended | ||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||
Market Share | |||||||
United States - Cars | 13.9% | 12.4% | 12.9% | 12.4% | |||
United States - Trucks | 26.2% | 25.0% | 24.2% | 24.6% | |||
United States - Crossovers | 15.9% | 15.9% | 15.0% | 16.9% | |||
Total United States | 18.4% | 17.3% | 17.0% | 17.3% | |||
Total North America | 18.0% | 16.9% | 16.6% | 16.8% | |||
Total Europe | 5.6% | 5.7% | 6.0% | 6.1% | |||
Total Asia/Pacific, Middle East and Africa | 10.5% | 10.7% | 9.7% | 10.2% | |||
Total South America | 16.8% | 15.9% | 15.9% | 15.4% | |||
Total Worldwide | 11.5% | 11.4% | 10.8% | 11.1% | |||
United States fleet sales as a percentage of retail vehicle sales | 21.0% | 19.7% | 19.6% | 22.0% | |||
North America Capacity Two Shift Utilization | 113.2% | 102.2% | 108.3% | 105.0% | |||
9
General Motors Company and Subsidiaries
Combining Income Statement Information
(In millions) (Unaudited)
Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Combined | Automotive | GM Financial | Eliminations | Combined | ||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||
Automotive | $ | 156,849 | $ | — | $ | — | $ | 156,849 | $ | 145,922 | $ | — | $ | — | $ | 145,922 | |||||||||||||||
GM Financial | — | 9,558 | (27 | ) | 9,531 | — | 6,454 | (20 | ) | 6,434 | |||||||||||||||||||||
Total net sales and revenue | 156,849 | 9,558 | (27 | ) | 166,380 | 145,922 | 6,454 | (20 | ) | 152,356 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||
Automotive cost of sales | 136,342 | — | (9 | ) | 136,333 | 128,331 | — | (10 | ) | 128,321 | |||||||||||||||||||||
GM Financial interest, operating and other expenses | — | 8,796 | (4 | ) | 8,792 | — | 5,733 | — | 5,733 | ||||||||||||||||||||||
Automotive selling, general and administrative expense | 11,710 | — | — | 11,710 | 13,405 | — | — | 13,405 | |||||||||||||||||||||||
Total costs and expenses | 148,052 | 8,796 | (13 | ) | 156,835 | 141,736 | 5,733 | (10 | ) | 147,459 | |||||||||||||||||||||
Operating income | 8,797 | 762 | (14 | ) | 9,545 | 4,186 | 721 | (10 | ) | 4,897 | |||||||||||||||||||||
Automotive interest expense | 590 | — | (18 | ) | 572 | 453 | — | (10 | ) | 443 | |||||||||||||||||||||
Interest income and other non-operating income, net | 433 | — | (4 | ) | 429 | 621 | — | — | 621 | ||||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | 449 | — | — | 449 | |||||||||||||||||||||||
Equity income | 2,131 | 151 | — | 2,282 | 2,078 | 116 | — | 2,194 | |||||||||||||||||||||||
Income before income taxes | 10,771 | 913 | — | 11,684 | 6,881 | 837 | — | 7,718 | |||||||||||||||||||||||
Income tax expense (benefit) | 2,331 | 85 | — | 2,416 | (1,976 | ) | 79 | — | (1,897 | ) | |||||||||||||||||||||
Net income | 8,440 | 828 | — | 9,268 | 8,857 | 758 | — | 9,615 | |||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 159 | — | — | 159 | 72 | — | — | 72 | |||||||||||||||||||||||
Net income attributable to stockholders | $ | 8,599 | $ | 828 | $ | — | $ | 9,427 | $ | 8,929 | $ | 758 | $ | — | $ | 9,687 | |||||||||||||||
10
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 | Years Ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||
Basic earnings per share | |||||||||||||||
Net income attributable to stockholders | $ | 1,835 | $ | 6,266 | $ | 9,427 | $ | 9,687 | |||||||
Weighted-average common shares outstanding | 1,516 | 1,553 | 1,540 | 1,586 | |||||||||||
Basic earnings per common share | $ | 1.21 | $ | 4.03 | $ | 6.12 | $ | 6.11 | |||||||
Diluted earnings per share | |||||||||||||||
Net income attributable to common stockholders – diluted | $ | 1,835 | $ | 6,266 | $ | 9,427 | $ | 9,686 | |||||||
Weighted-average common shares outstanding – diluted | 1,546 | 1,597 | 1,570 | 1,640 | |||||||||||
Diluted earnings per common share | $ | 1.19 | $ | 3.92 | $ | 6.00 | $ | 5.91 | |||||||
11
General Motors Company and Subsidiaries
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Combined | Automotive | GM Financial | Eliminations | Combined | ||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 9,759 | $ | 3,201 | $ | — | $ | 12,960 | $ | 12,177 | $ | 3,061 | $ | — | $ | 15,238 | |||||||||||||||
Marketable securities | 11,841 | — | — | 11,841 | 8,163 | — | — | 8,163 | |||||||||||||||||||||||
Accounts and notes receivable, net(a) | 9,553 | 996 | (911 | ) | 9,638 | 8,590 | 681 | (934 | ) | 8,337 | |||||||||||||||||||||
GM Financial receivables, net(b) | — | 22,466 | (401 | ) | 22,065 | — | 18,281 | (230 | ) | 18,051 | |||||||||||||||||||||
Inventories | 13,788 | — | — | 13,788 | 13,764 | — | — | 13,764 | |||||||||||||||||||||||
Equipment on operating leases, net | 1,896 | — | — | 1,896 | 2,783 | — | — | 2,783 | |||||||||||||||||||||||
Other current assets | 1,730 | 2,285 | — | 4,015 | 1,332 | 1,740 | — | 3,072 | |||||||||||||||||||||||
Total current assets | 48,567 | 28,948 | (1,312 | ) | 76,203 | 46,809 | 23,763 | (1,164 | ) | 69,408 | |||||||||||||||||||||
Non-current Assets | |||||||||||||||||||||||||||||||
GM Financial receivables, net | — | 20,724 | — | 20,724 | — | 18,500 | — | 18,500 | |||||||||||||||||||||||
Equity in net assets of nonconsolidated affiliates | 8,052 | 944 | — | 8,996 | 8,215 | 986 | — | 9,201 | |||||||||||||||||||||||
Property, net | 35,541 | 279 | — | 35,820 | 31,010 | 219 | — | 31,229 | |||||||||||||||||||||||
Goodwill and intangible assets, net | 4,881 | 1,378 | — | 6,259 | 4,558 | 1,389 | — | 5,947 | |||||||||||||||||||||||
GM Financial equipment on operating leases, net | — | 34,526 | — | 34,526 | — | 20,172 | — | 20,172 | |||||||||||||||||||||||
Deferred income taxes(c) | 34,819 | 273 | — | 35,092 | 36,635 | 225 | — | 36,860 | |||||||||||||||||||||||
Other assets | 3,195 | 875 | — | 4,070 | 2,194 | 827 | — | 3,021 | |||||||||||||||||||||||
Total non-current assets | 86,488 | 58,999 | — | 145,487 | 82,612 | 42,318 | — | 124,930 | |||||||||||||||||||||||
Total Assets | $ | 135,055 | $ | 87,947 | $ | (1,312 | ) | $ | 221,690 | $ | 129,421 | $ | 66,081 | $ | (1,164 | ) | $ | 194,338 | |||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||||||
Accounts payable (principally trade)(a) | $ | 26,942 | $ | 793 | $ | (774 | ) | $ | 26,961 | $ | 24,093 | $ | 740 | $ | (771 | ) | $ | 24,062 | |||||||||||||
Short-term debt and current portion of long-term debt | |||||||||||||||||||||||||||||||
Automotive(a)(b) | 1,705 | — | (538 | ) | 1,167 | 1,209 | — | (392 | ) | 817 | |||||||||||||||||||||
GM Financial | — | 27,861 | — | 27,861 | — | 18,745 | — | 18,745 | |||||||||||||||||||||||
Accrued liabilities(c) | 26,376 | 2,816 | — | 29,192 | 26,043 | 1,550 | — | 27,593 | |||||||||||||||||||||||
Total current liabilities | 55,023 | 31,470 | (1,312 | ) | 85,181 | 51,345 | 21,035 | (1,163 | ) | 71,217 | |||||||||||||||||||||
Non-current Liabilities | |||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||
Automotive | 9,585 | — | — | 9,585 | 7,948 | — | — | 7,948 | |||||||||||||||||||||||
GM Financial | — | 46,015 | — | 46,015 | — | 35,601 | — | 35,601 | |||||||||||||||||||||||
Postretirement benefits other than pensions | 5,803 | — | — | 5,803 | 5,685 | — | — | 5,685 | |||||||||||||||||||||||
Pensions | 17,836 | 115 | — | 17,951 | 20,804 | 107 | — | 20,911 | |||||||||||||||||||||||
Other liabilities(c) | 11,760 | 1,320 | — | 13,080 | 11,627 | 1,027 | (1 | ) | 12,653 | ||||||||||||||||||||||
Total non-current liabilities | 44,984 | 47,450 | — | 92,434 | 46,064 | 36,735 | (1 | ) | 82,798 | ||||||||||||||||||||||
Total Liabilities | 100,007 | 78,920 | (1,312 | ) | 177,615 | 97,409 | 57,770 | (1,164 | ) | 154,015 | |||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||
Common stock, $0.01 par value | 15 | — | — | 15 | 15 | — | — | 15 | |||||||||||||||||||||||
Additional paid-in capital | 26,982 | 1 | — | 26,983 | 27,606 | 1 | — | 27,607 | |||||||||||||||||||||||
Retained earnings | 15,903 | 10,265 | — | 26,168 | 10,870 | 9,415 | — | 20,285 | |||||||||||||||||||||||
Accumulated other comprehensive loss | (8,091 | ) | (1,239 | ) | — | (9,330 | ) | (6,931 | ) | (1,105 | ) | — | (8,036 | ) | |||||||||||||||||
Total stockholders’ equity | 34,809 | 9,027 | — | 43,836 | 31,560 | 8,311 | — | 39,871 | |||||||||||||||||||||||
Noncontrolling interests | 239 | — | — | 239 | 452 | — | — | 452 | |||||||||||||||||||||||
Total Equity | 35,048 | 9,027 | — | 44,075 | 32,012 | 8,311 | — | 40,323 | |||||||||||||||||||||||
Total Liabilities and Equity | $ | 135,055 | $ | 87,947 | $ | (1,312 | ) | $ | 221,690 | $ | 129,421 | $ | 66,081 | $ | (1,164 | ) | $ | 194,338 | |||||||||||||
_________
(a) | Eliminations include Automotive accounts receivable of $396 million offset by GM Financial accounts payable, GM Financial accounts receivable of $373 million offset by Automotive accounts payable and GM Financial notes receivable of $137 million offset by loans to Automotive at December 31, 2016 and Automotive accounts receivable of $358 million offset by GM Financial accounts payable, GM Financial accounts receivable of $409 million offset by Automotive accounts payable and GM Financial notes receivable of $163 million offset by loans to Automotive at December 31, 2015. |
(b) | Eliminations include GM Financial receivables of $401 million and $230 million offset by loans to Automotive at December 31, 2016 and December 31, 2015. |
(c) | As a result of GM's adoption of Accounting Standards Update (ASU) 2015-17, "Balance Sheet Classification of Deferred Taxes" certain prior year amounts have been reclassified. |
12
General Motors Company and Subsidiaries
Combining Cash Flow Information
(In millions) (Unaudited)
Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Reclassification (a) | Combined | Automotive | GM Financial | Reclassification (a) | Combined | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Net income | $ | 8,440 | $ | 828 | $ | — | $ | 9,268 | $ | 8,857 | $ | 758 | $ | — | $ | 9,615 | |||||||||||||||
Depreciation, amortization and impairment charges | 5,696 | 4,712 | — | 10,408 | 5,720 | 2,297 | — | 8,017 | |||||||||||||||||||||||
Foreign currency remeasurement and transaction losses | 345 | 13 | — | 358 | 813 | 16 | — | 829 | |||||||||||||||||||||||
Undistributed earnings of nonconsolidated affiliates, net | 7 | (22 | ) | — | (15 | ) | (31 | ) | (116 | ) | — | (147 | ) | ||||||||||||||||||
Pension contributions and OPEB payments | (3,462 | ) | (3 | ) | — | (3,465 | ) | (1,597 | ) | (3 | ) | — | (1,600 | ) | |||||||||||||||||
Pension and OPEB (income) expense, net | (558 | ) | 5 | — | (553 | ) | 316 | 5 | — | 321 | |||||||||||||||||||||
Gains on extinguishment of debt | — | — | — | — | (449 | ) | — | — | (449 | ) | |||||||||||||||||||||
Provision (benefit) for deferred taxes | 1,926 | (40 | ) | — | 1,886 | (2,763 | ) | 6 | — | (2,757 | ) | ||||||||||||||||||||
Change in other operating assets and liabilities(a)(b) | 2,417 | (132 | ) | (2,723 | ) | (438 | ) | (805 | ) | (96 | ) | (1,124 | ) | (2,025 | ) | ||||||||||||||||
Other operating activities(b) | (490 | ) | (414 | ) | — | (904 | ) | (82 | ) | (31 | ) | — | (113 | ) | |||||||||||||||||
Net cash provided by operating activities | 14,321 | 4,947 | (2,723 | ) | 16,545 | 9,979 | 2,836 | (1,124 | ) | 11,691 | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||
Expenditures for property | (9,435 | ) | (107 | ) | — | (9,542 | ) | (7,784 | ) | (90 | ) | — | (7,874 | ) | |||||||||||||||||
Available-for-sale marketable securities, acquisitions | (15,182 | ) | — | — | (15,182 | ) | (8,113 | ) | — | — | (8,113 | ) | |||||||||||||||||||
Trading marketable securities, acquisitions | (262 | ) | — | — | (262 | ) | (1,250 | ) | — | — | (1,250 | ) | |||||||||||||||||||
Available-for-sale marketable securities, liquidations | 10,871 | — | — | 10,871 | 8,463 | — | — | 8,463 | |||||||||||||||||||||||
Trading marketable securities, liquidations | 872 | — | — | 872 | 1,758 | — | — | 1,758 | |||||||||||||||||||||||
Acquisition of companies/investments, net of cash acquired | (809 | ) | — | — | (809 | ) | (4 | ) | (924 | ) | — | (928 | ) | ||||||||||||||||||
Purchases of finance receivables, net(a) | — | (20,592 | ) | 2,723 | (17,869 | ) | — | (18,619 | ) | 1,124 | (17,495 | ) | |||||||||||||||||||
Principal collections and recoveries on finance receivables | — | 13,172 | — | 13,172 | — | 11,726 | — | 11,726 | |||||||||||||||||||||||
Purchases of leased vehicles, net | — | (19,624 | ) | — | (19,624 | ) | — | (15,158 | ) | — | (15,158 | ) | |||||||||||||||||||
Proceeds from termination of leased vehicles | — | 2,557 | — | 2,557 | — | 1,096 | — | 1,096 | |||||||||||||||||||||||
Other investing activities(b) | 180 | (7 | ) | — | 173 | 78 | (13 | ) | — | 65 | |||||||||||||||||||||
Net cash used in investing activities | (13,765 | ) | (24,601 | ) | 2,723 | (35,643 | ) | (6,852 | ) | (21,982 | ) | 1,124 | (27,710 | ) | |||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||
Net increase (decrease) in short-term debt | 18 | 780 | — | 798 | (19 | ) | 1,147 | — | 1,128 | ||||||||||||||||||||||
Proceeds from issuance of debt (original maturities greater than three months) | 2,438 | 42,703 | — | 45,141 | 317 | 35,362 | — | 35,679 | |||||||||||||||||||||||
Payments on debt (original maturities greater than three months) | (712 | ) | (23,103 | ) | — | (23,815 | ) | (369 | ) | (16,887 | ) | — | (17,256 | ) | |||||||||||||||||
Payments to purchase stock | (2,500 | ) | — | — | (2,500 | ) | (3,520 | ) | — | — | (3,520 | ) | |||||||||||||||||||
Dividends paid (including charge related to redemption of Series A Preferred Stock) | (2,368 | ) | — | — | (2,368 | ) | (2,242 | ) | — | — | (2,242 | ) | |||||||||||||||||||
Other financing activities | 29 | (146 | ) | — | (117 | ) | 51 | (154 | ) | — | (103 | ) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (3,095 | ) | 20,234 | — | 17,139 | (5,782 | ) | 19,468 | — | 13,686 | |||||||||||||||||||||
Effect of exchange rate changes on cash,cash equivalents and restricted cash | (172 | ) | (41 | ) | — | (213 | ) | (1,229 | ) | (295 | ) | — | (1,524 | ) | |||||||||||||||||
Net transactions with Automotive/GM Financial(c) | 179 | (179 | ) | — | — | 113 | (113 | ) | — | — | |||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,532 | ) | 360 | — | (2,172 | ) | (3,771 | ) | (86 | ) | — | (3,857 | ) | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period(b) | 12,390 | 4,942 | — | 17,332 | 16,161 | 5,028 | — | 21,189 | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 9,858 | $ | 5,302 | $ | — | $ | 15,160 | $ | 12,390 | $ | 4,942 | $ | — | $ | 17,332 | |||||||||||||||
_________
(a) | Reclassification of 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. |
(b) | As a result of GM's adoption of Accounting Standards Update (ASU) 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" certain prior year amounts have been reclassified. |
(c) | Amounts loaned from GM Financial to Automotive for commercial loans to dealers we consolidate, and Automotive's capital contribution to GM Financial to fund the acquisition of its equity interest in SAIC-GMAC. |
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