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) April 26, 2018
___________________
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)) | |
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 April 26, 2018 General Motors Company (GM) issued a news release and supplemental materials on the subject of its 2018 first 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 2018 first 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/ THOMAS S. TIMKO | |
Date: April 26, 2018 | Thomas S. Timko, Vice President, Global Business Solutions and Chief Accounting Officer | |
FIRST-QUARTER 2018 EARNINGS
• Income from continuing operations impacted by $0.9 billion pre-tax charge related to Korea restructuring.
• EBIT-adj. reflects full-size truck launch-related downtime. The all-new truck launch is on plan.
• GM North America EBIT-adj. margin of 8.0%; on track to sustain 10-percent full-year margin.
EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS Diluted-adj.
Non-GAAP 7.2% $2.6 B $(3.5) B $1.43
Vs. Q1 2017 (2.3) pts (26.6) % $(2.8) B (18.3)%
Q 1 2 0 1 8 R E S U LT S O V E R V I E W
Net Revenue Income Auto Operating Cash Flow EPS-Diluted
GAAP $36.1 B $1.1 B $(1.2) B $0.77
Vs. Q1 2017 (3.1) % (58.7) % $(2.3) B (56.0) %
“Results this quarter were in line with our expectations with planned, lower production in North America related to the transition to our all-new Chevrolet Silverado and GMC Sierra. We are on plan to deliver another strong year in 2018.” – Mary Barra, Chairman and CEO
FROM CONTINUING OPERATIONS
IMPACT OF KOREA RESTRUCTURING
Deliveries of GM’s newest crossovers in the U.S. and
China doubled in the rst quarter year over year, led
by the GMC Terrain, the Chevrolet Traverse and
Equinox and the all-new Baojun 510 and 530. To build
on this crossover success, Cadillac revealed the rst-
ever XT4 in March, beginning the expansion of the
brand’s successful SUV lineup. In the U.S., the Cadillac
XT4 can be pre-ordered now, with the rst deliveries
expected this fall. Cadillac will introduce, on average,
one new model every six months through 2021.
In March, adding to the strength of the GMC brand
and Denali lineup, GM revealed the next-generation
2019 GMC Sierra Denali and SLT, and the all-new Sierra
AT4 full-size pickups, which will go on sale later this
year in North America. The Sierra AT4 introduces the
all-terrain four-wheel drive AT4 sub-brand, which will
be featured on every model in GMC’s lineup in the
next two years.
GM China, with its JV partners, plans to introduce 15
new and refreshed models in 2018, sharpening its
focus on the strong SUV, MPV and luxury vehicle
segments. About half of these products will be SUVs
and MPVs. The rst of the 15 models, the Baojun 530
compact SUV, went on sale in March.
PRODUCT MOMENTUM
To continue to strengthen core business performance
and address underper forming markets, GM
announced its decision to cease production and close
the Gunsan Korea plant by the end of May 2018.
GM recorded a $942-million pre-tax charge, considered
special for EBIT-adjusted and EPS diluted-adjusted,
related to asset impairment and termination bene ts.
The charge included $464 million in non-cash asset
impairments.
GM Reports Income of $1.1 Billion and EBIT-adjusted of $2.6 Billion
As expected, rst-quarter free cash ow was
meaningfully below the rst quarter of 2017 primarily
due to planned, lower full-size truck production, and
incremental capital spending to support the launches
of GM’s all-new Chevrolet Silverado, GMC Sierra and
GEM.
GM continues to expect its 2018 core adjusted
automotive free cash ow to be in line with 2017
results as the company bene ts from strong EBIT-
adjusted performance and favorable seasonal cash
ow factors later this year.
ADJUSTED AUTOMOTIVE FREE CASH FLOW
Exhibit 99.1
“
North America International GM Financial (EBT)
Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17
2.2 3.5 0.2 0.2 0.4 0.2
EBIT-adj. and margin of 8.0%
reect planned downtime in
support of new full-size truck
launches.
Record EBT-adj. was driven by strong
retail originations and stable credit
and residual performance.
S E G M E N T R E S U LT S ( E B I T- A D J U ST E D F R O M C O N T I N U I N G O P E R AT I O N S - $ B )
Results were driven by record
equity income in China of $0.6
billion and continued improvement
in South America.
GM delivered 715,794 vehicles in the rst quarter in the
United States, up 4 percent ahead of an estimated
industry increase of about 2 percent. Year-over-year
total crossover sales in the U.S. rose 23 percent across
all brands:
Q1 VEHICLE SALES
LIQUIDITY ($B)
Q1 18 Q4 17
Cash and Current Marketable Securities 17.2 19.6
Total Auto Liquidity 31.3 33.6
We were protable in all operating segments, including record performance in China and for
GM Financial. Our Q1 results were on plan and we remain condent in the full-year guidance
we announced in January.”
– Chuck Stevens, Executive Vice President and CFO “
After more than a year of building test vehicles for
development of its self-driving technology, GM
announced it will build production versions of its
Cruise AV at its Orion Township assembly plant in
Michigan. Roof modules for GM’s self-driving vehicles
will be assembled at its Brownstown plant.
Having all AV capabilities under one roof has allowed
GM to continue making signicant progress on its
plans to achieve commercialization at scale in a dense,
urban environment in 2019.
DRIVING TO THE FUTURE OF MOBILITY
The Chevrolet Bolt EV, Equinox, Traverse and Trax;
Buick Encore and Envision; GMC Terrain; and Cadillac
XT5 all set delivery records in the rst quarter.
GM China’s rst-quarter sales reached an all-time
high, delivering a record 986,052 units. Baojun’s
growth of almost 20 percent in the quarter included
the strong performance of its newest crossover, the
Baojun 530, which sold 11,000 units after launching on
March 11.
For more details on GM’s global sales, click here.
Chevrolet
Buick
GMC
Cadillac
+ 28%
+ 17%
+ 21%
+ 10%
Cruise AV
Cautionary Note on Forward-Looking Statements.
This press release and related comments by management may include forward-looking statements. These statements are based on current expectations
about possible future events and thus are inherently uncertain. Our actual results may dier materially from forward-looking statements due to a variety of
factors, including: (1) our ability to deliver new products, services and experiences that attract new, and are desired by existing, customers and to eectively
compete in autonomous, ride-sharing and transportation as a service; (2) sales of crossovers, SUVs and full-size pick-up trucks; (3) our ability to reduce the
costs associated with the manufacture and sale of electric vehicles; (4) the volatility of global sales and operations; (5) our signicant business in China
which subjects us to unique operational, competitive and regulatory risks; (6) our joint ventures, which we cannot operate solely for our benet and over
which we may have limited control; (7) changes in government leadership and laws (including tax laws), economic tensions between governments and
changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates,
economic downturns in foreign countries, diering local product preferences and product requirements, compliance with U.S. and foreign countries' export
controls and economic sanctions, diering labor regulations and diculties in obtaining nancing in foreign countries; (8) our dependence on our
manufacturing facilities; (9) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (10) prices of raw
materials; (11) our highly competitive industry; (12) the possibility that competitors may independently develop products and services similar to ours
despite our intellectual property rights; (13) security breaches and other disruptions to our vehicles, information technology networks and systems; (14)
compliance with laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (15) costs and risks associated with
litigation and government investigations; (16) compliance with the terms of the Deferred Prosecution Agreement; (17) the cost and eect on our reputation
of product safety recalls and alleged defects in products and services; (18) our ability to successfully and cost-eciently restructure operations in various
countries, including Korea, with minimal disruption to our supply chain and operations, globally; (19) our ability to realize production eciencies and to
achieve reductions in costs; (20) our ability to develop captive nancing capability through GM Financial; and (21) signicant increases in pension expense or
projected pension contributions. A further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K,
and our subsequent lings with the Securities and Exchange Commission. GM cautions readers not to place undue reliance on forward-looking statements.
GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements.
General Motors Co.(NYSE: GM), its subsidiaries and joint venture entities
produce and sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC,
Holden, Jiefang and Wuling brands. GM has leadership positions in several of
the world'smost signicantautomotive markets and is committed to lead the
future of personal mobility. 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
Media Investors
CONTACTS
Michael Heifler
GM Investor Relations
313-418-0220
michael.heifler@gm.com
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, Core EBIT-adjusted, earnings per share (EPS)-diluted-adjusted, effective tax rate-adjusted (ETR-adjusted), return on invested capital-adjusted (ROIC-adjusted), adjusted automotive free cash flow and Core 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 a significant impact from the item.
Core EBIT-adjusted Core EBIT-adjusted is used by management and can be used by investors to review our core consolidated operating results. Core EBIT-adjusted begins with EBIT-adjusted and excludes the EBIT-adjusted results of our autonomous vehicle operations, including Cruise Automation Inc. (Cruise), Maven and our investment in Lyft.
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 automotive net pension and 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 plant closure that are considered special for EBIT-adjusted purposes.
Core adjusted automotive free cash flow Core 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. Core adjusted automotive free cash flow begins with adjusted automotive free cash flow from continuing operations and excludes the free cash flows of our autonomous vehicle operations, including Cruise, Maven and our investment in Lyft.
1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles segment profit to Net income attributable to stockholders under U.S. GAAP (dollars in millions):
Three Months Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Operating segments | |||||||
GM North America (GMNA) | $ | 2,233 | $ | 3,471 | |||
GM International (GMI) | 189 | 178 | |||||
General Motors Financial Company, Inc. (GM Financial)(a) | 443 | 228 | |||||
Total operating segments | 2,865 | 3,877 | |||||
Corporate and eliminations(b) | (255 | ) | (323 | ) | |||
EBIT-adjusted | 2,610 | 3,554 | |||||
Adjustments - GMI restructuring(c) | (942 | ) | — | ||||
Automotive interest income | 64 | 57 | |||||
Automotive interest expense | (150 | ) | (147 | ) | |||
Income tax expense | (466 | ) | (787 | ) | |||
Income from continuing operations(d) | 1,116 | 2,677 | |||||
Loss from discontinued operations, net of tax(e) | 70 | 69 | |||||
Net income attributable to stockholders | $ | 1,046 | $ | 2,608 | |||
__________
(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 including autonomous vehicle-related engineering and other costs and certain nonsegment specific revenues and expenses are recorded centrally in Corporate. |
(c) | This adjustment was 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 adjustment primarily consists of asset impairments and employee separation costs in Korea. |
(d) | Net of Net (income) loss attributable to noncontrolling interests. |
(e) | 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 | |||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
Net income (loss) attributable to stockholders | $ | 1,046 | $ | 2,608 | $ | (5,151 | ) | $ | 1,835 | $ | (2,981 | ) | $ | 2,773 | $ | 1,660 | $ | 2,866 | |||||||||||||
(Income) loss from discontinued operations, net of tax | 70 | 69 | 277 | 120 | 3,096 | (5 | ) | 770 | (106 | ) | |||||||||||||||||||||
Income tax expense | 466 | 787 | 7,896 | 303 | 2,316 | 902 | 534 | 877 | |||||||||||||||||||||||
Automotive interest expense | 150 | 147 | 145 | 150 | 151 | 145 | 132 | 144 | |||||||||||||||||||||||
Automotive interest income | (64 | ) | (57 | ) | (82 | ) | (45 | ) | (59 | ) | (43 | ) | (68 | ) | (50 | ) | |||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||
GMI restructuring(a) | 942 | — | — | — | — | — | 540 | — | |||||||||||||||||||||||
Ignition switch recall and related legal matters(b) | — | — | — | 235 | — | (110 | ) | 114 | 115 | ||||||||||||||||||||||
Total adjustments | 942 | — | — | 235 | — | (110 | ) | 654 | 115 | ||||||||||||||||||||||
EBIT-adjusted | $ | 2,610 | $ | 3,554 | $ | 3,085 | $ | 2,598 | $ | 2,523 | $ | 3,662 | $ | 3,682 | $ | 3,846 | |||||||||||||||
________
(a) | These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. The adjustment in the three months ended March 31, 2018 primarily consists of asset impairments and employee separation costs in Korea. The adjustment in the three months ended June 30, 2017 primarily consists of asset impairments and other restructuring actions in India, South Africa and Venezuela. |
(b) | These adjustments were 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 EBIT-adjusted to Core EBIT-adjusted:
Three Months Ended | Year Ended | ||||||||||
March 31, 2018 | March 31, 2017 | December 31, 2017 | |||||||||
EBIT-adjusted(a) | $ | 2,610 | $ | 3,554 | $ | 12,844 | |||||
EBIT loss-adjusted – autonomous vehicle operations | 188 | 148 | 706 | ||||||||
Core EBIT-adjusted | $ | 2,798 | $ | 3,702 | $ | 13,550 | |||||
________
(a) | Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted. |
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):
Three Months Ended | |||||||||||||||
March 31, 2018 | March 31, 2017 | ||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||
Diluted earnings per common share | $ | 1,032 | $ | 0.72 | $ | 2,608 | $ | 1.70 | |||||||
Diluted loss per common share – discontinued operations | 70 | 0.05 | 69 | 0.05 | |||||||||||
Adjustment – GMI restructuring | 942 | 0.66 | — | — | |||||||||||
EPS-diluted-adjusted | $ | 2,044 | $ | 1.43 | $ | 2,677 | $ | 1.75 | |||||||
The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted (dollars in millions):
Three Months Ended | |||||||||||||||||||||
March 31, 2018 | March 31, 2017 | ||||||||||||||||||||
Income before income taxes | Income tax expense | Effective tax rate | Income before income taxes | Income tax expense | Effective tax rate | ||||||||||||||||
Effective tax rate | $ | 1,576 | $ | 466 | 29.6 | % | $ | 3,473 | $ | 787 | 22.7 | % | |||||||||
Adjustment – GMI restructuring | 942 | — | — | — | |||||||||||||||||
ETR-adjusted | $ | 2,518 | $ | 466 | 18.5 | % | $ | 3,473 | $ | 787 | 22.7 | % | |||||||||
4
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
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 | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net income (loss) attributable to stockholders | $ | (5.4 | ) | $ | 10.1 | ||
Average equity | $ | 39.3 | $ | 44.8 | |||
ROE | (13.8 | )% | 22.5 | % | |||
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Four Quarters Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
EBIT-adjusted(a) | $ | 11.9 | $ | 13.7 | |||
Average equity | $ | 39.3 | $ | 44.8 | |||
Add: Average automotive debt and interest liabilities (excluding capital leases) | 12.7 | 10.0 | |||||
Add: Average automotive net pension & OPEB liability | 20.6 | 21.5 | |||||
Less: Average automotive net income tax asset | (26.9 | ) | (32.4 | ) | |||
ROIC-adjusted average net assets | $ | 45.7 | $ | 43.9 | |||
ROIC-adjusted | 26.0 | % | 31.1 | % | |||
________
(a) | Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted in a preceding section. |
The following table reconciles Net automotive cash provided by (used in) operating activities from continuing operations under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):
Three Months Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net automotive cash provided by (used in) operating activities – continuing operations | $ | (1,212 | ) | $ | 1,090 | ||
Less: capital expenditures – continuing operations | (2,252 | ) | (1,710 | ) | |||
Adjusted automotive free cash flow – continuing operations | (3,464 | ) | (620 | ) | |||
Net automotive cash provided by operating activities – discontinued operations | — | 307 | |||||
Less: capital expenditures – discontinued operations | — | (270 | ) | ||||
Adjusted automotive free cash flow | $ | (3,464 | ) | $ | (583 | ) | |
The following table reconciles adjusted automotive free cash flow to Core adjusted automotive free cash flow (dollars in millions):
Three Months Ended | Year Ended | ||||||||||
March 31, 2018 | March 31, 2017 | December 31, 2017 | |||||||||
Adjusted automotive free cash flow – continuing operations(a) | $ | (3,464 | ) | $ | (620 | ) | $ | 5,161 | |||
Net automotive cash used in operating activities – autonomous vehicle operations | 167 | 77 | 524 | ||||||||
Capital expenditures – autonomous vehicles operations | 12 | — | 34 | ||||||||
Core adjusted automotive free cash flow | $ | (3,285 | ) | $ | (543 | ) | $ | 5,719 | |||
__________
(a) | Refer to the reconciliation of adjusted automotive free cash flow. |
5
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize key financial information by segment (dollars in millions):
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||||||
Net sales and revenue | $ | 27,818 | $ | 4,848 | $ | 49 | $ | 32,715 | $ | 3,411 | $ | (27 | ) | $ | 36,099 | ||||||||||||||||
Expenditures for property | $ | 2,064 | $ | 162 | $ | 26 | $ | — | $ | 2,252 | $ | 20 | $ | — | $ | 2,272 | |||||||||||||||
Depreciation and amortization | $ | 1,109 | $ | 153 | $ | 12 | $ | — | $ | 1,274 | $ | 1,823 | $ | — | $ | 3,097 | |||||||||||||||
Impairment charges | $ | 25 | $ | 459 | $ | — | $ | — | $ | 484 | $ | — | $ | — | $ | 484 | |||||||||||||||
Equity income(a) | $ | 2 | $ | 594 | $ | — | $ | — | $ | 596 | $ | 52 | $ | — | $ | 648 | |||||||||||||||
GMNA | GMI | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||
Net sales and revenue | $ | 29,338 | $ | 5,138 | $ | 174 | $ | 34,650 | $ | 2,748 | $ | (132 | ) | $ | 37,266 | ||||||||||||||||
Expenditures for property | $ | 1,528 | $ | 180 | $ | 2 | $ | — | $ | 1,710 | $ | 20 | $ | — | $ | 1,730 | |||||||||||||||
Depreciation and amortization | $ | 1,102 | $ | 191 | $ | 2 | $ | (1 | ) | $ | 1,294 | $ | 1,428 | $ | — | $ | 2,722 | ||||||||||||||
Impairment charges | $ | 15 | $ | 1 | $ | 5 | $ | — | $ | 21 | $ | — | $ | — | $ | 21 | |||||||||||||||
Equity income(a) | $ | 5 | $ | 504 | $ | — | $ | — | $ | 509 | $ | 46 | $ | — | $ | 555 | |||||||||||||||
________
(a) | Includes Automotive China equity income of $597 million and $504 million in the three months ended March 31, 2018 and 2017. |
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 our revenue and our 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 calculation 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 three months ended March 31, 2018, 34.9% of our 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 | |||||
March 31, 2018 | March 31, 2017 | ||||
GMNA(a) | 893 | 940 | |||
GMI(b) | 266 | 299 | |||
Total | 1,159 | 1,239 | |||
Discontinued operations | — | 303 | |||
__________
(a) | Wholesale vehicle sales related to transactions with the European Business were insignificant for the three months ended March 31, 2017. |
(b) | Wholesale vehicle sales include 48 vehicles related to transactions with the European Business for the three months ended March 31, 2017. |
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 of 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. 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 industry retail sales, or estimated sales where retail sales volume is not available by geographic region (vehicles in thousands):
Three Months Ended | |||||
March 31, 2018 | March 31, 2017 | ||||
United States | |||||
Chevrolet – Cars | 121 | 154 | |||
Chevrolet – Trucks | 223 | 203 | |||
Chevrolet – Crossovers | 147 | 115 | |||
Cadillac | 37 | 34 | |||
Buick | 57 | 50 | |||
GMC | 131 | 134 | |||
Total United States | 716 | 690 | |||
Canada, Mexico and Other | 111 | 126 | |||
Total North America(a) | 827 | 816 | |||
Asia/Pacific, Middle East and Africa | |||||
Chevrolet | 216 | 209 | |||
Wuling | 289 | 324 | |||
Buick | 272 | 250 | |||
Baojun | 244 | 204 | |||
Cadillac | 57 | 41 | |||
Other | 23 | 42 | |||
Total Asia/Pacific, Middle East and Africa(a)(b)(c) | 1,101 | 1,070 | |||
South America(a)(d) | 167 | 148 | |||
Total in GM markets | 2,095 | 2,034 | |||
Total Europe | 1 | 310 | |||
Total Worldwide | 2,096 | 2,344 | |||
_______
(a) | Sales of Opel/Vauxhall outside of Europe were insignificant in the three months ended March 31, 2018 and 2017. |
(b) | We use estimated vehicle registrations data as the basis for calculating industry volume and market share in China. |
(c) | Includes Industry and GM sales in India and South Africa. As of December 31, 2017 we have ceased sales of Chevrolet for the domestic markets in India and South Africa. |
(d) | Primarily Chevrolet. |
8
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 GM's retail vehicle sales on the preceding page (vehicles in thousands):
Three Months Ended | |||||
March 31, 2018 | March 31, 2017 | ||||
SAIC General Motors Sales Co., Ltd.(a) | 457 | 386 | |||
SAIC GM Wuling Automobile Co., Ltd. and FAW-GM Light Duty Commercial Vehicle Co., Ltd.(a) | 529 | 527 | |||
Three Months Ended | |||||
March 31, 2018 | March 31, 2017 | ||||
Market Share | |||||
United States – Cars | 10.9 | % | 11.9 | % | |
United States – Trucks | 24.8 | % | 25.2 | % | |
United States – Crossovers | 16.4 | % | 15.1 | % | |
Total United States | 17.0 | % | 16.8 | % | |
Total North America | 16.3 | % | 16.3 | % | |
Total Asia/Pacific, Middle East and Africa(a) | 9.0 | % | 9.2 | % | |
Total South America | 15.5 | % | 15.7 | % | |
Total GM Market | 11.4 | % | 11.6 | % | |
Total Europe | — | % | 6.1 | % | |
Total Worldwide | 9.0 | % | 10.4 | % | |
United States fleet sales as a percentage of retail vehicle sales | 23.0 | % | 20.7 | % | |
North America capacity two shift utilization | 99.0 | % | 106.0 | % | |
_______
(a) | We use estimated vehicle registrations data as the basis for calculating industry volume and market share in China. |
9
General Motors Company and Subsidiaries
Combining Income Statement Information
(In millions) (Unaudited)
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Combined | Automotive | GM Financial | Eliminations | Combined | ||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||
Automotive | $ | 32,715 | $ | — | $ | (24 | ) | $ | 32,691 | $ | 34,650 | $ | — | $ | (131 | ) | $ | 34,519 | |||||||||||||
GM Financial | — | 3,411 | (3 | ) | 3,408 | — | 2,748 | (1 | ) | 2,747 | |||||||||||||||||||||
Total net sales and revenue | 32,715 | 3,411 | (27 | ) | 36,099 | 34,650 | 2,748 | (132 | ) | 37,266 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||
Automotive cost of sales | 30,209 | — | (25 | ) | 30,184 | 29,893 | — | (132 | ) | 29,761 | |||||||||||||||||||||
GM Financial interest, operating and other expenses | — | 3,020 | (6 | ) | 3,014 | — | 2,566 | — | 2,566 | ||||||||||||||||||||||
Automotive selling, general and administrative expense | 2,372 | — | — | 2,372 | 2,356 | — | — | 2,356 | |||||||||||||||||||||||
Total costs and expenses | 32,581 | 3,020 | (31 | ) | 35,570 | 32,249 | 2,566 | (132 | ) | 34,683 | |||||||||||||||||||||
Operating income | 134 | 391 | 4 | 529 | 2,401 | 182 | — | 2,583 | |||||||||||||||||||||||
Automotive interest expense | 152 | — | (2 | ) | 150 | 147 | — | — | 147 | ||||||||||||||||||||||
Interest income and other non-operating income, net | 549 | — | — | 549 | 482 | — | — | 482 | |||||||||||||||||||||||
Equity income | 596 | 52 | — | 648 | 509 | 46 | — | 555 | |||||||||||||||||||||||
Income before income taxes | 1,127 | 443 | 6 | 1,576 | 3,245 | 228 | — | 3,473 | |||||||||||||||||||||||
Income tax expense | 397 | 69 | — | 466 | 740 | 47 | — | 787 | |||||||||||||||||||||||
Income from continuing operations | 730 | 374 | 6 | 1,110 | 2,505 | 181 | — | 2,686 | |||||||||||||||||||||||
(Income) loss from discontinued operations, net of tax | 64 | — | 6 | 70 | 93 | (24 | ) | — | 69 | ||||||||||||||||||||||
Net income | 666 | 374 | — | 1,040 | 2,412 | 205 | — | 2,617 | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 6 | — | — | 6 | (9 | ) | — | — | (9 | ) | |||||||||||||||||||||
Net income attributable to stockholders | $ | 672 | $ | 374 | $ | — | $ | 1,046 | $ | 2,403 | $ | 205 | $ | — | $ | 2,608 | |||||||||||||||
Net income attributable to common stockholders | $ | 672 | $ | 360 | $ | — | $ | 1,032 | $ | 2,403 | $ | 205 | $ | — | $ | 2,608 | |||||||||||||||
10
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 | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Basic earnings per share | |||||||
Income from continuing operations(a) | $ | 1,116 | $ | 2,677 | |||
Less: cumulative dividends on GM Financial preferred stock | (14 | ) | — | ||||
Income from continuing operations attributable to common stockholders | 1,102 | 2,677 | |||||
Loss from discontinued operations, net of tax | 70 | 69 | |||||
Net income attributable to common stockholders | $ | 1,032 | $ | 2,608 | |||
Weighted-average common shares outstanding | 1,408 | 1,505 | |||||
Basic earnings per common share – continuing operations | $ | 0.78 | $ | 1.78 | |||
Basic loss per common share – discontinued operations | $ | 0.05 | $ | 0.05 | |||
Basic earnings per common share | $ | 0.73 | $ | 1.73 | |||
Diluted earnings per share | |||||||
Income from continuing operations attributable to common stockholders – diluted(a) | $ | 1,102 | $ | 2,677 | |||
Loss from discontinued operations, net of tax – diluted | $ | 70 | $ | 69 | |||
Net income attributable to common stockholders – diluted | $ | 1,032 | $ | 2,608 | |||
Weighted-average common shares outstanding – diluted | 1,430 | 1,532 | |||||
Diluted earnings per common share – continuing operations | $ | 0.77 | $ | 1.75 | |||
Diluted loss per common share – discontinued operations | $ | 0.05 | $ | 0.05 | |||
Diluted earnings per common share | $ | 0.72 | $ | 1.70 | |||
Potentially dilutive securities(b) | 4 | — | |||||
__________
(a) | Net of Net (income) 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 earnings per share because the securities would have had an antidilutive effect. |
11
General Motors Company and Subsidiaries
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Reclassifications / Eliminations | Combined | Automotive | GM Financial | Reclassifications / Eliminations | Combined | ||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,078 | $ | 4,178 | $ | — | $ | 14,256 | $ | 11,247 | $ | 4,265 | $ | — | $ | 15,512 | |||||||||||||||
Marketable securities | 7,110 | — | — | 7,110 | 8,313 | — | — | 8,313 | |||||||||||||||||||||||
Accounts and notes receivable, net(a) | 10,126 | 1,433 | (790 | ) | 10,769 | 7,759 | 806 | (401 | ) | 8,164 | |||||||||||||||||||||
GM Financial receivables, net(b) | — | 21,571 | (414 | ) | 21,157 | — | 20,901 | (380 | ) | 20,521 | |||||||||||||||||||||
Inventories | 11,461 | — | — | 11,461 | 10,663 | — | — | 10,663 | |||||||||||||||||||||||
Equipment on operating leases, net | 789 | — | — | 789 | 1,106 | — | — | 1,106 | |||||||||||||||||||||||
Other current assets | 1,642 | 4,251 | — | 5,893 | 1,396 | 3,069 | — | 4,465 | |||||||||||||||||||||||
Total current assets | 41,206 | 31,433 | (1,204 | ) | 71,435 | 40,484 | 29,041 | (781 | ) | 68,744 | |||||||||||||||||||||
Non-current Assets | |||||||||||||||||||||||||||||||
GM Financial receivables, net(b) | — | 22,202 | (56 | ) | 22,146 | — | 21,271 | (63 | ) | 21,208 | |||||||||||||||||||||
Equity in net assets of nonconsolidated affiliates | 8,602 | 1,281 | — | 9,883 | 7,886 | 1,187 | — | 9,073 | |||||||||||||||||||||||
Property, net | 37,057 | 264 | — | 37,321 | 35,994 | 259 | — | 36,253 | |||||||||||||||||||||||
Goodwill and intangible assets, net | 4,421 | 1,369 | — | 5,790 | 4,482 | 1,367 | — | 5,849 | |||||||||||||||||||||||
Equipment on operating leases, net | — | 43,444 | — | 43,444 | — | 42,882 | — | 42,882 | |||||||||||||||||||||||
Deferred income taxes | 23,278 | 260 | — | 23,538 | 23,229 | 315 | — | 23,544 | |||||||||||||||||||||||
Other assets | 4,212 | 957 | — | 5,169 | 4,000 | 929 | — | 4,929 | |||||||||||||||||||||||
Total non-current assets | 77,570 | 69,777 | (56 | ) | 147,291 | 75,591 | 68,210 | (63 | ) | 143,738 | |||||||||||||||||||||
Total Assets | $ | 118,776 | $ | 101,210 | $ | (1,260 | ) | $ | 218,726 | $ | 116,075 | $ | 97,251 | $ | (844 | ) | $ | 212,482 | |||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||||||
Accounts payable (principally trade)(a) | $ | 26,121 | $ | 708 | $ | (790 | ) | $ | 26,039 | $ | 23,696 | $ | 634 | $ | (401 | ) | $ | 23,929 | |||||||||||||
Short-term debt and current portion of long-term debt | |||||||||||||||||||||||||||||||
Automotive(b) | 4,755 | — | (414 | ) | 4,341 | 2,895 | — | (380 | ) | 2,515 | |||||||||||||||||||||
GM Financial | — | 25,006 | — | 25,006 | — | 24,450 | — | 24,450 | |||||||||||||||||||||||
Accrued liabilities | 23,255 | 4,075 | — | 27,330 | 22,544 | 3,452 | — | 25,996 | |||||||||||||||||||||||
Total current liabilities | 54,131 | 29,789 | (1,204 | ) | 82,716 | 49,135 | 28,536 | (781 | ) | 76,890 | |||||||||||||||||||||
Non-current Liabilities | |||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||
Automotive(b) | 11,013 | — | (56 | ) | 10,957 | 11,050 | — | (63 | ) | 10,987 | |||||||||||||||||||||
GM Financial | — | 58,514 | — | 58,514 | — | 56,267 | — | 56,267 | |||||||||||||||||||||||
Postretirement benefits other than pensions | 5,927 | — | — | 5,927 | 5,998 | — | — | 5,998 | |||||||||||||||||||||||
Pensions | 13,206 | 3 | — | 13,209 | 13,743 | 3 | — | 13,746 | |||||||||||||||||||||||
Other liabilities | 10,241 | 1,704 | — | 11,945 | 10,689 | 1,705 | — | 12,394 | |||||||||||||||||||||||
Total non-current liabilities | 40,387 | 60,221 | (56 | ) | 100,552 | 41,480 | 57,975 | (63 | ) | 99,392 | |||||||||||||||||||||
Total Liabilities | 94,518 | 90,010 | (1,260 | ) | 183,268 | 90,615 | 86,511 | (844 | ) | 176,282 | |||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||
Common stock, $0.01 par value | 14 | — | — | 14 | 14 | — | — | 14 | |||||||||||||||||||||||
Preferred stock, $0.01 par value | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Additional paid-in capital(c) | 25,337 | 955 | (955 | ) | 25,337 | 25,371 | 985 | (985 | ) | 25,371 | |||||||||||||||||||||
Retained earnings | 6,100 | 10,928 | — | 17,028 | 7,128 | 10,499 | — | 17,627 | |||||||||||||||||||||||
Accumulated other comprehensive loss | (7,398 | ) | (683 | ) | — | (8,081 | ) | (7,267 | ) | (744 | ) | — | (8,011 | ) | |||||||||||||||||
Total stockholders’ equity | 24,053 | 11,200 | (955 | ) | 34,298 | 25,246 | 10,740 | (985 | ) | 35,001 | |||||||||||||||||||||
Noncontrolling interests(c) | 205 | — | 955 | 1,160 | 214 | — | 985 | 1,199 | |||||||||||||||||||||||
Total Equity | 24,258 | 11,200 | — | 35,458 | 25,460 | 10,740 | — | 36,200 | |||||||||||||||||||||||
Total Liabilities and Equity | $ | 118,776 | $ | 101,210 | $ | (1,260 | ) | $ | 218,726 | $ | 116,075 | $ | 97,251 | $ | (844 | ) | $ | 212,482 | |||||||||||||
_________
(a) | Eliminations include GM Financial accounts receivable of $658 million offset by Automotive accounts payable and Automotive accounts receivable of $132 million offset by GM Financial accounts payable at March 31, 2018 and GM Financial accounts receivable of $309 million offset by Automotive accounts payable and Automotive accounts receivable of $92 million offset by GM Financial accounts payable at December 31, 2017. |
(b) | Eliminations include GM Financial loan receivable of $470 million and $443 million offset by an Automotive loan payable at March 31, 2018 and December 31, 2017. |
(c) | Reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A. The preferred stock is classified as noncontrolling interests in our condensed consolidated balance sheet. |
12
General Motors Company and Subsidiaries
Combining Cash Flow Information
(In millions) (Unaudited)
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Reclassification/Eliminations | Combined | Automotive | GM Financial | Reclassification/Eliminations | Combined | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Income from continuing operations | $ | 730 | $ | 374 | $ | 6 | $ | 1,110 | $ | 2,505 | $ | 181 | $ | — | $ | 2,686 | |||||||||||||||
Depreciation, amortization and impairment charges | 1,758 | 1,823 | — | 3,581 | 1,315 | 1,428 | — | 2,743 | |||||||||||||||||||||||
Foreign currency remeasurement and transaction losses | 238 | 5 | — | 243 | 137 | 7 | — | 144 | |||||||||||||||||||||||
Undistributed earnings of nonconsolidated affiliates, net | (596 | ) | (52 | ) | — | (648 | ) | (508 | ) | (47 | ) | — | (555 | ) | |||||||||||||||||
Pension contributions and OPEB payments | (400 | ) | — | — | (400 | ) | (382 | ) | — | — | (382 | ) | |||||||||||||||||||
Pension and OPEB income, net | (300 | ) | — | — | (300 | ) | (200 | ) | — | — | (200 | ) | |||||||||||||||||||
Provision for deferred taxes | 318 | 47 | — | 365 | 991 | 45 | — | 1,036 | |||||||||||||||||||||||
Change in other operating assets and liabilities(a)(b) | (2,960 | ) | (528 | ) | (15 | ) | (3,503 | ) | (2,768 | ) | (282 | ) | (624 | ) | (3,674 | ) | |||||||||||||||
Net cash provided by (used in) operating activities – continuing operations | (1,212 | ) | 1,669 | (9 | ) | 448 | 1,090 | 1,332 | (624 | ) | 1,798 | ||||||||||||||||||||
Net cash provided by operating activities – discontinued operations | — | — | — | — | 308 | 66 | (131 | ) | 243 | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | (1,212 | ) | 1,669 | (9 | ) | 448 | 1,398 | 1,398 | (755 | ) | 2,041 | ||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||
Expenditures for property | (2,252 | ) | (20 | ) | — | (2,272 | ) | (1,710 | ) | (20 | ) | — | (1,730 | ) | |||||||||||||||||
Available-for-sale marketable securities, acquisitions | (914 | ) | — | — | (914 | ) | (1,316 | ) | — | — | (1,316 | ) | |||||||||||||||||||
Available-for-sale marketable securities, liquidations | 2,062 | — | — | 2,062 | 2,914 | — | — | 2,914 | |||||||||||||||||||||||
Purchases of finance receivables, net(a)(b) | — | (5,073 | ) | 148 | (4,925 | ) | — | (6,026 | ) | 624 | (5,402 | ) | |||||||||||||||||||
Principal collections and recoveries on finance receivables(b) | — | 3,608 | (130 | ) | 3,478 | — | 2,810 | (2 | ) | 2,808 | |||||||||||||||||||||
Purchases of leased vehicles, net | — | (4,496 | ) | — | (4,496 | ) | — | (4,727 | ) | — | (4,727 | ) | |||||||||||||||||||
Proceeds from termination of leased vehicles | — | 2,379 | — | 2,379 | — | 1,079 | — | 1,079 | |||||||||||||||||||||||
Other investing activities | (40 | ) | — | — | (40 | ) | 1 | — | — | 1 | |||||||||||||||||||||
Net cash used in investing activities – continuing operations | (1,144 | ) | (3,602 | ) | 18 | (4,728 | ) | (111 | ) | (6,884 | ) | 622 | (6,373 | ) | |||||||||||||||||
Net cash provided by (used in) investing activities – discontinued operations | 166 | — | — | 166 | (270 | ) | (293 | ) | 131 | (432 | ) | ||||||||||||||||||||
Net cash used in investing activities | (978 | ) | (3,602 | ) | 18 | (4,562 | ) | (381 | ) | (7,177 | ) | 753 | (6,805 | ) | |||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||
Net increase (decrease) in short-term debt | 97 | 23 | — | 120 | — | (360 | ) | — | (360 | ) | |||||||||||||||||||||
Proceeds from issuance of debt (original maturities greater than three months) | 1,871 | 9,463 | — | 11,334 | 257 | 11,023 | — | 11,280 | |||||||||||||||||||||||
Payments on debt (original maturities greater than three months) | (166 | ) | (6,652 | ) | (14 | ) | (6,832 | ) | (172 | ) | (4,971 | ) | 2 | (5,141 | ) | ||||||||||||||||
Payments to purchase common stock | (100 | ) | — | — | (100 | ) | — | — | — | — | |||||||||||||||||||||
Dividends paid | (536 | ) | (30 | ) | — | (566 | ) | (573 | ) | — | — | (573 | ) | ||||||||||||||||||
Other financing activities | (152 | ) | (40 | ) | 5 | (187 | ) | (117 | ) | (27 | ) | — | (144 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities – continuing operations | 1,014 | 2,764 | (9 | ) | 3,769 | (605 | ) | 5,665 | 2 | 5,062 | |||||||||||||||||||||
Net cash used in financing activities – discontinued operations | — | — | — | — | (5 | ) | (10 | ) | — | (15 | ) | ||||||||||||||||||||
Net cash provided by (used in) financing activities | 1,014 | 2,764 | (9 | ) | 3,769 | (610 | ) | 5,655 | 2 | 5,047 | |||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 36 | 8 | — | 44 | 66 | 37 | — | 103 | |||||||||||||||||||||||
Net transactions with Automotive/GM Financial | — | — | — | — | (112 | ) | 112 | — | — | ||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,140 | ) | 839 | — | (301 | ) | 361 | 25 | — | 386 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 11,281 | 6,567 | — | 17,848 | 9,858 | 5,302 | — | 15,160 | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 10,141 | $ | 7,406 | $ | — | $ | 17,547 | $ | 10,219 | $ | 5,327 | $ | — | $ | 15,546 | |||||||||||||||
Cash, cash equivalents and restricted cash – continuing operations at end of period | $ | 10,141 | $ | 7,406 | $ | — | $ | 17,547 | $ | 10,218 | $ | 4,737 | $ | — | $ | 14,955 | |||||||||||||||
Cash, cash equivalents and restricted cash – discontinued operations at end of period | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | 590 | $ | — | $ | 591 | |||||||||||||||
(a) | Reclassifications of $13 million and $493 million in the three months ended March 31, 2018 and 2017 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. |
(b) | Eliminations include $161 million and $131 million in Purchase of finance receivables, net in the three months ended March 31, 2018 and 2017 and $129 million in Principal collections and recoveries on finance receivables in the three months ended March 31, 2018 related to the re-timing of cash receipts and payments between Automotive and GM Financial. |
13