GM Reports Third Quarter 2007 Financial Results
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- Record third quarter automotive revenue of $43.1 billion
- Improved automotive operations on continued strength in emerging markets
- Ongoing challenges in U.S. mortgage market adversely impact GM income from GMAC
- $39 billion reported loss driven by $39 billion valuation allowance on deferred tax assets
- Improved liquidity position of $30 billion
DETROIT, Nov. 7 -- General Motors Corp. today announced its financial results for the third quarter of 2007, marked by record global sales, further improvement in its core automotive business driven by solid financial performance in key growth markets around the world and improved liquidity.
"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions. In addition, we are very encouraged by our performance in emerging markets. Our record third quarter global sales are strong evidence that our commitment to great cars and trucks is being embraced by consumers around the globe," said Rick Wagoner, GM chairman and chief executive officer.
The company's improved performance in its automotive operations was more than offset by special charges of $37.4 billion related largely to a previously announced valuation allowance against its deferred tax assets, as well as lower reported GMAC Financial Services income, down $630 million versus the year-ago quarter as a result of continued pressures in the mortgage industry.
GM reported a net loss of $39 billion (including Allison Transmission, which is classified as a discontinued operation), or $68.85 per diluted share, for the third quarter of 2007, compared with a reported net loss of $147 million, or $.26 per diluted share, in the year-ago quarter.
Special items included a net non-cash charge of $38.6 billion due to a valuation allowance against deferred tax assets related to operations in the U.S., Canada and Germany as required under SFAS No. 109, Accounting for Income Taxes. Also included was a favorable $3.5 billion after-tax gain on the sale of the Allison Transmission business in August 2007, for which GM received $5.4 billion in proceeds. GM also had special charges of $1.6 billion in pension service costs related to prior labor agreements, $0.4 billion associated with restructuring actions and $0.4 billion related to an adjustment to the Delphi reserve. Details on all of the special charges are included in the "Highlights" section of this news release.
Excluding special items, GM had a 2007 third-quarter adjusted net loss of $1.6 billion, or $2.80 per diluted share, compared to net income of $497 million, or $.88 per diluted share, in the year-ago quarter. The variance was driven primarily by a significant decline in net income at GMAC, as well as increased corporate expense related to legacy cost, foreign exchange and various 2006 tax benefits, partially offset by improved performance in automotive operations.
GM Automotive Operations
GM's global automotive operations posted net income of $122 million from continuing operations on an adjusted basis in the third quarter of 2007 (reported net loss of $40.6 billion), an improvement of $577 million compared to an adjusted net loss from continuing operations of $455 million (reported net loss of $401 million) in the same quarter 2006. Results for GM's automotive operations, specifically GMNA, exclude Allison Transmission, which was classified as a discontinued operation as a result of the sale of that business which was concluded in August 2007.
GM generated record third quarter automotive revenue of $43.1 billion. The company also achieved record global third quarter sales of 2.39 million cars and trucks, up four percent compared to the third quarter 2006, driven by exceptionally strong demand in emerging markets and improved performance in developed markets. GM also set a number of third quarter sales records around the globe, including a 22 percent increase in GMLAAM, 16 percent increase in the GMAP region, and 15 percent gain in GME.
"We continue to see solid progress in the fundamentals of our automotive business. We're very pleased with our strong sales performance in key markets outside of North America, and growing retail momentum in the U.S. driven by products like the all-new Cadillac CTS. We're also very encouraged by the early reactions to our all-new Chevrolet Malibu and 2008 Chevrolet Tahoe and GMC Yukon two-mode hybrids - the world's only full-size hybrid SUVs," said Wagoner.
GMNA had an adjusted net loss from continuing operations of $247 million in the third quarter 2007 (reported net loss from continuing operations of $38.2 billion, which includes charges of approximately $36.5 billion for a valuation allowance against its deferred tax assets and $1.3 billion for pension service costs related to prior labor agreements), compared to an adjusted net loss of $660 million from continuing operations in the third quarter 2006 (reported net loss from continuing operations of $667 million). GMNA's improved adjusted earnings reflect favorable mix, pricing and better warranty performance, which were partially offset by lower volume and increased material cost.
GME posted an adjusted net loss of $90 million in the third quarter (reported net loss of $2.9 billion, which includes charges of $2.5 billion for a valuation allowance against deferred tax assets in Germany and restructuring charges of $262 million), compared to $39 million loss in the third quarter of 2006 (reported net loss of $126 million). The variance in adjusted net income reflects the softness of the German market and unfavorable currency exchange, which was partially offset by improved pricing and higher volume.
GME achieved record third quarter sales of about 524,000 units, aided by continued momentum of GME's multi-brand strategy during the period. Chevrolet is amongst the fastest growing global vehicle brands in Europe, posting record third quarter sales of 113,000 vehicles. GM gained further ground in the growing Russian market, with sales up by 75 percent over the same quarter 2006, to a record 65,700 vehicles.
GMAP recorded adjusted net income of $138 million in the third quarter (reported net income also $138 million), compared with $57 million in the year ago period (reported net income of $205 million, which included $148 million in favorable tax-related items). This favorable earnings performance was driven largely by strong export growth from GM Daewoo, continued strong sales and profitability in China, and improved earnings in India and Australia.
GM achieved 16 percent sales growth in the Asia Pacific region, resulting in record third quarter sales of 327,500 units. GM China sold 230,000 vehicles, a 21 percent increase compared with the year ago period. GM sales in the region were also aided by the strong performance of GM Daewoo products, including the Chevrolet Captiva.
GMLAAM achieved all-time record earnings and quarterly sales in the third quarter, posting adjusted earnings of $340 million (reported net income also $340 million), up 86 percent compared with strong earnings in the year ago period of $183 million (reported net income also $183 million). The earnings improvement was driven primarily by volume growth, favorable pricing and vehicle mix.
GMLAAM set a third quarter sales record of over 329,000 vehicles, up almost 22 percent year-over-year. All-time sales records were achieved in Brazil, Colombia, Venezuela, Argentina and Egypt. The successful launch of the Chevrolet Captiva in South Africa, Venezuela, Colombia and the Middle East helped drive strong sales in the region.
GMAC
As a standalone company, GMAC Financial Services reported a net loss of $1.6 billion for the third quarter 2007, compared to a net loss of $173 million in the third quarter 2006. The reported results for the third quarter of 2007 included a $455 million goodwill impairment charge at Residential Capital, LLC (ResCap), while a goodwill impairment charge of $695 million related to GMAC Commercial Finance was reflected in results for the third quarter of 2006.
Results were dominated by the effects of the dislocation in the mortgage and credit markets on the real estate finance business, which more than offset the continued strong performance at GMAC's automotive finance, insurance and other operations.
GM recognized $757 million of the net loss attributable to GMAC as a result of its 49 percent equity interest and accrued preferred dividends (reported net loss of $803 million).
Cash and Liquidity
GM continues to have a strong liquidity position. Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association (VEBA) trust grew to $30 billion as of September 30, 2007, up from $27.2 billion on June 30, 2007. The balance includes $5.4 billion of net cash proceeds from the completion of the Allison Transmission transaction in August 2007.
GM had negative adjusted automotive operating cash flow of $2.5 billion in the third quarter of 2007, improved from a negative $3.9 billion in the third quarter 2006.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include the
following non-GAAP financial measures: (a) adjusted net income,
(b) managerial cash flow and (c) GM North America vehicle revenue per
unit. Each of these financial measures excludes the impact of certain
items and therefore has not been calculated in accordance with U.S.
generally accepted accounting principles (GAAP). This press release
also contains a reconciliation of each presented non-GAAP measure
to its most comparable GAAP financial measure.
Management believes these non-GAAP financial measures provide
meaningful supplemental information regarding our operating results
because they exclude amounts that GM management does not consider
part of operating results when assessing the performance of the
organization and measuring the results of GM's performance. In
addition, GM has historically reported similar non-GAAP financial
measures. GM believes that inclusion of these non-GAAP financial
measures provides consistency and comparability with past earnings
releases. GM management uses these non-GAAP financial measures to
evaluate GM's performance and believes these measures allow GM
management to readily view operating trends, perform analytical
comparisons, benchmark performance among geographic regions and
assess whether the GM North American structural cost turnaround
plan is on target. Also, GM management uses adjusted net income for
forecasting purposes and in determining our future capital investment
allocations. Accordingly, GM believes these non-GAAP financial
measures are useful to investors in allowing for greater transparency
of supplemental information used by management in its financial and
operational decision-making.
While GM believes that these non-GAAP financial measures provide
useful supplemental information, there are limitations associated
with the use of these non-GAAP financial measures. These non-GAAP
financial measures are not prepared in accordance with GAAP, do not
reflect a comprehensive system of accounting and may not be comparable
to similarly titled measures of other companies due to potential
differences in the method of calculation between companies. Costs
such as the special attrition program and restructuring charges that
are excluded from GM's non-GAAP financial measures can have a
material impact on net earnings. As a result, these non-GAAP
financial measures have limitations and should not be considered
in isolation from, or as a substitute for, net earnings, cash flow
from operations, or other measures of performance or liquidity
prepared in accordance with GAAP. GM compensates for these
limitations by using these non-GAAP financial measures as supplements
to GAAP financial measures and by reviewing the reconciliations of
the non-GAAP financial measures to their most comparable GAAP
financial measures. Investors are encouraged to review the
reconciliations of these non-GAAP financial measures to their
most comparable GAAP financial measures that are included elsewhere
in this press release.
Adjusted Net Income
Adjusted net income excludes charges for the special attrition
program; restructuring, plant closure and impairment charges; gains
and losses on the sale of business units and business interests;
charges associated with the Delphi bankruptcy; charges associated
with changes in estimates and accounting changes; and certain tax
related items.
The following is a discussion of each adjustment to the net income
(loss) determined in accordance with GAAP to arrive at adjusted net
income:
-- Deferred tax assets and tax-related items. GM established
valuation allowances against its deferred tax assets in the
U.S., Canada and Germany. The charge associated with
establishing these valuation allowances is excluded from
adjusted net income. Other tax related items excluded from
adjusted net income are: (1) the impact of the reduction in
corporate income and trade tax rates in Germany; (2) the
reversal of our deferred tax valuation allowance at GM
Daewoo; and (3) unusual tax events that may result as GM is
involved in the sales of its business units and business
interests from time-to-time. Management believes the
exclusion of these valuation allowance charges and tax
related items from adjusted net income is useful because
management does not consider these charges part of GM's
core earnings in evaluating the performance of the business
and excludes these costs when evaluating the performance
of the Corporation, its business units and its management team
and when making decisions to allocate resources among GM's
business units.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
-- Gains and losses on the sale of business units and business
interests. The gains and losses on the sale of business units
and business interests are excluded from adjusted net
income. While GM is involved in sales of its business
units and business interests from time-to-time and may have
significant gains or losses from such sales in the future,
such events have historically occurred sporadically. Management
excludes the gains and losses associated with these events
when it evaluates the Corporation's operations and for
internal reporting and forecasting purposes and for allocation
of additional resources.
-- Change in estimate regarding period of economic benefit of
existing pension prior service cost. Our non-GAAP financial
measures exclude the charge associated with this change in
accounting estimate. Management believes the exclusion
of this change in estimate from adjusted net income is
useful because management does not consider these non-recurring
charges part of GM's core earnings. Accordingly, management
does not consider these costs as part of its core earnings for
purposes of evaluating the performance of the business, and
excludes such costs when evaluating the performance of the
Corporation, its business units and its management teams
and when making decisions to allocate resources among GM's
business units.
-- Restructuring, impairment and plant closure charges. Our
non-GAAP financial measures exclude exit costs and related
charges, primarily consisting of severance costs, lease
abandonment costs, product impairments and any subsequent
changes in estimates related to exit activities. Management
believes the exclusion of restructuring and impairment
charges from adjusted net income is useful because management
does not consider these costs part of GM's core earnings
in evaluating GM's operational managers and the exclusion
permits investors to evaluate the performance of our
management the same way management does. Additionally,
management excludes restructuring and impairment charges in
determining the allocation of resources, such as capital
investments, among the Corporation's business units and as
part of its forecasting and budgeting.
-- Delphi charges. Our non-GAAP financial measures exclude
the estimated charges associated with comprehensive settlement
agreements, consisting of a Global Settlement Agreement
and a Master Restructuring Agreement, entered into with Delphi
in connection with the restructuring of Delphi's operations.
Management does not consider these costs as part of its
core earnings for purposes of evaluating the performance of
the business, and excludes such costs when evaluating the
performance of the Corporation, its business units and its
management teams and when making decisions to allocate
resources among GM's business units.
-- Special attrition program charges. Our non-GAAP financial
measures exclude the estimated charge associated with the
special attrition program agreement among the UAW, GM and Delphi.
Management believes it is useful in evaluating the performance
of GM, its management teams and its business units during
a particular time period to exclude charges associated with
the special attrition program because the charge occurs
irregularly. Accordingly, management does not consider
these costs as part of its core earnings for purposes of
evaluating the performance of the business, and excludes
such costs when evaluating the performance of the
Corporation, its business units and its management teams
and when making decisions to allocate resources among GM's
business units.
General Motors Corporation
Use of Non-GAAP Financial Measures (Concluded)
Managerial Cash Flow
GM also reports non-GAAP managerial automotive operating cash
flow in its earnings releases and charts for securities analysts.
Management believes that providing managerial automotive operating
cash flow furnishes it and investors with useful information by
representing the cash flow generated or consumed by its automotive
operations, including cash consumed by automotive capital expenditures
and equity investments in companies related to our core business and
cash generated by sales of automotive operating assets and equity
investments in companies related to GM's core business, before
funding non-operating-related obligations including debt maturities,
dividends and other non-operating items. Management uses this
non-GAAP financial measure to assess its automotive cash flow when
evaluating the performance of GM, its business units and its
management teams and when making decisions to allocate resources
among GM's business units.
GM North America Vehicle Revenue per Unit
GM's earnings releases and charts for securities analysts also
include the use of a non-GAAP measure of revenue per vehicle.
Management uses revenue per vehicle to track operating efficiency
and to facilitate comparisons between periods and between manufacturers,
and believes that it would provide valuable information to investors
who are interested in identifying trends and comparing different
companies. Revenue per vehicle includes certain vehicle sales to
other GM regions that are excluded from GAAP reporting, and excludes
non-vehicle sales such as service parts and operations and OnStar
service, and other income that GM does not derive from the sale of
vehicles, such as interest on the GM credit card. Management also
includes sales to daily car rental companies in revenue per
vehicle, although they are not treated as sales under GAAP reporting
because of GM's repurchase obligations.
General Motors Corporation
List of Special Items *
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended Year to Date
September 30, 2007 September 30, 2007
------------------- ------------------
Net Net
Income EPS Income EPS
-------- --------- ---------- -------
REPORTED
--------
Loss from
continuing operations $ (42,512) $ (75.12) $ (41,770) $ (73.82)
Income from
discontinued operations 45 .08 256 .45
Gain on sale of discontinued
operations 3,504 6.19 3,504 6.19
------ ------ ------ -----
Net loss $ (38,963) $ (68.85) $ (38,010) $ (67.18)
====== ====== ====== =====
ADJUSTMENTS
-----------
Valuation on deferred tax
assets and associated tax
items (A) $ 38,300 $ 67.68 $ 38,300 $ 67.68
Pension prior service
cost (B) 1,561 2.76 1,561 2.76
Restructuring (C) ** 387 .68 580 1.03
Delphi (D) ** 350 .62 925 1.63
Other valuation allowance
adjustment for YTD Q207
special items (E) 250 .44 - -
Special attrition program (F) ** 33 .06 10 .03
Gain on sale of discontinued
operations (G) (3,504) (6.19) (3,504) (6.19)
Product impairments (H) ** - - 104 .18
Plant closures (I) ** - - (47) (.08)
------ ----- ------ -----
Total adjustments $ 37,377 $ 66.05 $ 37,929 $ 67.04
====== ===== ====== =====
ADJUSTED
--------
Income (loss) from
continuing operations $ (1,631) $ (2.88) $ (337) $ (.59)
Income from
discontinued operations 45 .08 256 .45
==== ==== ==== ====
Adjusted Loss - Basic $ (1,586) $ (2.80) $ (81) $ (.14)
==== ==== ==== ====
Adjusted Loss - Diluted *** $ (2.80) $ (.14)
==== ====
* Unless separately specified in the narratives that follow, pre-tax
and after-tax amounts are the same.
** Year-to-date amounts have been revised, where applicable, to
exclude the effect of $250 million in tax benefits that were previously
reflected in the second quarter 2007 year-to-date highlights. The
revised amounts result due to the valuation allowance recorded on
deferred tax assets in the U.S., Canada and Germany in the current
quarter.
*** See average shares outstanding.
General Motors Corporation
List of Special Items *
(Unaudited)
(A) Relates to a net charge during the quarter for a valuation
allowance on certain deferred tax assets and associated tax
items in the U.S., Canada and Germany. The net charge for the
quarter includes the valuation allowance of $39 billion, which
includes an adjustment of $.7 billion relating to tax benefits
recorded at loss entities through the third quarter. Net charges
of $36.4 billion, $2.5 billion and $.1 billion were recorded in
GMNA, GME and GMAC, respectively, and a favorable adjustment of
$.7 billion was recorded in Corporate and Other. Additionally,
GME's adjustment includes a $.5 billion charge associated
with a reduction in the value of deferred tax assets due to a
reduction in the statutory corporate income tax and trade tax
rates in Germany.
(B) Relates to a change in the estimate of the amortization
period for pension prior service cost for certain of our
employee benefit plans. In conjunction with entering into
the 2007 GM/UAW labor contract, GM determined that the four
year term of the labor contract better reflects the period of
future economic benefit received from plan amendments to
U.S. hourly pension plans. Concurrently, GM evaluated
the remaining economic benefit related to the unamortized
prior service cost remaining from prior labor contracts
and determined the future economic benefit for those amounts
that remained at the end of the third quarter did not extend
beyond the third quarter. Accordingly, during the third
quarter 2007, GM recorded a charge of $1.3 billion in
GMNA and $.3 billion in Corporate and Other to expense the
remaining portion of unamortized prior service cost from the
plan amendments entered into as part of the 1999 and 2003 labor
contracts.
(C) Relates to various restructuring initiatives as follows:
- For the three and nine months ended September 30, 2007, charges
of $125 million and $219 million, respectively, were recognized
at GMNA relating to adjustments to a plant closing reserve.
- For the three and nine months ended September 30, 2007, charges
of $262 million and after-tax charges of $326 million ($349 million
pre-tax), respectively, were recognized at GME for separation
programs primarily in Belgium, Germany, and Sweden.
- After-tax charges of $35 million ($50 million pre-tax) for the
nine months ended September 30, 2007 were recognized at GMAP
that relate to separation programs at Australian facilities.
(D) During the third quarter, GM and Delphi entered into
comprehensive settlement agreements consisting of a Global
Settlement Agreement (GSA) and a Master Restructuring Agreement
(MRA), replacing the Memorandum of Understanding (MOU) that GM
and Delphi executed in June 2007. The GSA intends to resolve
issues between GM and Delphi that have arisen or may arise
in connection with Delphi's emergence from bankruptcy
protection, and the MRA intends to govern certain
aspects of GM and Delphi's commercial relationship
following Delphi's emergence from bankruptcy protection.
GM recorded a charge of $575 million during the second quarter upon
entering into the MOU. The charge consisted of incremental Delphi
retiree health care costs, reimbursement of labor costs at certain
Delphi facilities, and reimbursement of certain pension obligations
for Delphi employees. GM recorded an additional charge of $350
million during the third quarter upon entering into the GSA and
MRA. The third quarter charge consists of an adjustment to GM's
estimated recovery under Delphi's new proposed Plan of
Reorganization.
(E) Relates to adjustments totaling $250 million recorded in the
third quarter to remove the tax effect on special items
at entities associated with deferred tax asset valuation
allowances in the U.S., Canada and Germany that were recorded
year-to-date through the second quarter 2007. Adjustments of
$41 million were recorded in GMNA related to restructuring,
special attrition program, product impairments and plant closure.
An adjustment of $8 million was recorded at GME related to
restructuring in Germany, and an adjustment of $201
million was recorded at Corporate and Other related
to Delphi items.
(F) Relates to favorable curtailment adjustments and reserve
adjustments related to the Special Attrition Program for GMNA.
(G) Relates to the gain on the sale of the commercial and military
operations of our Allison Transmission business, which was
completed in August 2007. This gain was recorded as discontinued
operations.
(H) Relates to charges recorded at GMNA of $95 million and
after-tax charges of $9 million ($13 million pre-tax) recorded
at GMAP for product specific assets.
(I) Relates to curtailment gains and favorable reserve adjustments
at GMNA related to the closure of two former component plants.
* Unless separately specified, pre-tax and after-tax amounts are
the same.
General Motors Corporation
List of Special Items - After-Tax
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended Year to Date
September 30, 2006 September 30, 2006
Restated Restated
------------------ --------------------
Net Net
Income EPS Income EPS
------- ------- ------- -------
REPORTED
--------
Loss from
continuing operations $ (277) $ (.49) $(3,278) $ (5.80)
Income from
discontinued operations 130 .23 350 .62
---- ---- ------ ----
Net loss $ (147) $ (.26) $(2,928) $ (5.18)
==== ==== ===== ====
ADJUSTMENTS
-----------
GMAC commercial finance
goodwill impairment (A) $ 695 $ 1.23 $ 695 $ 1.23
Delphi (B) 325 .57 325 .57
Product impairments (C) 112 .20 309 .55
Restructuring (D) 87 .16 428 .76
Special Attrition Program (E) (105) (.19) 3,554 6.28
Tax related items (F) (148) (.26) (148) (.26)
GMAC transaction related (G) (322) (.57) 368 .65
Sale of Suzuki investment (H) - - (395) (.70)
Sale of Isuzu investment (I) - - (212) (.37)
---- ---- ----- ----
Total adjustments $ 644 $ 1.14 $ 4,924 $ 8.71
==== ==== ===== ====
ADJUSTED
--------
Income from
continuing operations $ 367 $ .65 $ 1,646 $ 2.91
Income from
discontinued operations 130 .23 350 .62
---- ---- ----- -----
Adjusted Income - Basic * $ 497 $ .88 $ 1,996 $ 3.53
==== ==== ===== ====
Adjusted Income - Diluted ** $ .88 $ 3.52
==== ====
* Adjusted EPS - Basic for the nine months ended September 30, 2006
has been changed from $3.56 per share to $3.53 per share to reflect
a revision to the special item related to the gain on sale of our
Suzuki investment from $372 million, after-tax, to $395 million,
after-tax.
** See average shares outstanding.
General Motors Corporation
List of Special Items - After-Tax
(Unaudited)
(A) During the third quarter, GMAC's commercial finance business
recognized goodwill and other intangible asset impairment charges
of $695 million after-tax ($839 million pre-tax). The charge was
the result of a decision made by management to eliminate certain
low margin product lines in its commercial finance business.
(B) During the third quarter of 2006, GM increased its contingent
liability associated with the restructuring of Delphi's operations
by $325 million after-tax ($500 million pre-tax), based on data
available at that time and ongoing discussions with Delphi and
other stakeholders. GM established a contingent liability in the
fourth quarter of 2005 and recorded a charge of $3.6 billion
after-tax ($5.5 billion pre-tax).
(C) GMNA recorded impairment charges related to product specific assets
and the write-down of plant assets in connection with the planned
stoppage of production at the Doraville, Georgia assembly plant.
(D) Charges during the quarter of $87 million were recognized at GME
primarily related to the elimination of a shift at the Ellesmere
Port plant in the U.K. In addition to the third quarter charges,
year-to-date after-tax charges totaling $428 million include:
- $182 million recognized at GME, primarily related to the announced
closure in December 2006 of the GM assembly plant in Azambuja,
Portugal, which includes amounts for the write-down to fair market
value of plant assets, employee separation costs, contract
cancellation charges, other product-related asset impairments
and separation charges.
- Estimated charges of $65 million related to separations of
salaried employees at GMNA.
- Curtailment charges associated with modifications to the U.S.
Retirement Program for Salaried Employees announced in the first
quarter of 2006. GMNA and Corporate and Other Operations
recognized charges of $12 million and $3 million, respectively,
associated with these modifications.
- A favorable adjustment of $88 million for higher than anticipated
headcount reductions associated with previously announced GMNA
plant idling activities.
- A charge of $52 million for certain components of the hourly
attrition program related to retroactive lump-sum payments,
recognized at GMNA.
- Other restructuring charges of $72 million and $43 million
recognized at GME and GMLAAM, respectively.
(E) Favorable adjustments of $105 million after-tax during the third
quarter and year-to-date to adjust other personnel related accruals
as a result of the GMNA hourly attrition plan.
In addition to the current quarter charge, year-to-date charges
relate to the results of the GM-UAW-Delphi Special Attrition
Program, primarily for payments to employees (approximately $1.4
billion) and for the curtailment charges associated with GM's U.S.
hourly pension plan as a result of the attrition program
(approximately $2.9 billion). The charge also includes a favorable
revision of the accrual taken in the fourth quarter of 2005 for
the North American plant capacity actions (approximately $.6
billion).
(F) Primarily reflects the reversal of a deferred tax asset valuation
allowance at GM Daewoo and residual taxes at Suzuki.
(G) In the second quarter of 2006, GM recognized impairment losses on
GMAC to reflect the net assets held for sale at their net realizable
value as required by SFAS 144. In the third quarter, GM recognized
a reversal of losses previously recognized due to the fact that an
impairment charge was recorded by GMAC's commercial finance business.
Year-to-date after-tax charges of $368 million represent the sum of
these two adjustments.
(H) Relates to the sale of 92.4 million shares of GM's investment in
Suzuki for approximately $2 billion in cash, reducing GM's equity
stake to approximately 3.7% (16.3 million shares). The after-tax
gain of $395 million was recognized at GMAP.
(I) Relates to the sale of GM's entire investment in Isuzu Motors,
Ltd. for an after-tax gain of $212 million. The gain was recognized
at GMAP.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
Third Quarter Year to Date
-------------------- -----------------
2007 2006 2007 2006
Restated Restated
------- -------- ------- --------
Total net sales and
revenue $ 43,834 $ 48,892 $ 134,225 $ 154,871
Adjusted 43,834 48,892 134,225 154,871
Income (loss) from
continuing operations $ (42,512) $ (277) $ (41,770) $ (3,278)
Adjusted (1,631) 367 (337) 1,646
Income from
discontinued operations $ 45 $ 130 $ 256 $ 350
Adjusted 45 130 256 350
Net income (loss) $ (38,963) $ (147) $ (38,010) $ (2,928)
Adjusted (1,586) 497 (81) 1,996
Net margin from
continuing operations * (96.9)% (.6)% (31.1)% (2.1)%
Adjusted (3.7)% .8% (.3)% 1.1%
Earnings (loss) per share - basic
Continuing operations $ (75.12) $ (.49) $ (73.82) $ (5.80)
Income from discontinued
operations .08 .23 .45 .62
Gain on sale of discontinued
operations 6.19 - 6.19 -
Net income (loss) (68.85) (.26) (67.18) (5.18)
Earnings (loss) per share - diluted
Continuing operations $ (75.12) $ (.49) $ (73.82) $ (5.80)
Income from discontinued
operations .08 .23 .45 .62
Gain on sale of discontinued
operations 6.19 - 6.19 -
Net income (loss) (68.85) (.26) (67.18) (5.18)
Earnings (loss) per share -
adjusted diluted $ (2.80) $ .88 $ (.14) $ 3.52
GM $1-2/3 par value average
shares outstanding (Millions)
Basic shares 566 566 566 566
Diluted shares ** 566 567 566 567
Cash dividends per share
of common stocks $ .25 $ .25 $ .75 $ .75
See reconciliation of adjusted financial results.
* Calculated as Income from continuing operations / Total net sales and
revenue.
** Due to Loss from continuing operations for all periods presented,
there is no difference between basic and diluted average shares
outstanding on a reported basis (GAAP). Accordingly, the average
number of diluted shares outstanding relates to amounts on an
adjusted basis (non-GAAP) only, which has been adjusted to reflect
the dilutive impact of stock options and other contracts to issue
common stock in periods when adjusted net income is positive.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
Third Quarter Year to Date
-------------------- -----------------
2007 2006 2007 2006
Restated Restated
------ -------- ------- --------
Automotive total cash &
marketable securities
at September 30 (Billions) $ 26.4 $ 17.9
Readily-available assets
in VEBA 3.6 2.5
Total Automotive cash
& marketable securities
plus readily-available ----- ----
assets in VEBA $ 30.0 $ 20.4
===== ====
Automotive Operations
(Millions)
Depreciation $ 1,237 $ 1,060 $ 3,725 $ 3,220
Amortization of special
tools 744 869 2,327 2,712
Amortization of intangible
assets 16 17 51 52
----- ----- ----- -----
Total $ 1,997 $ 1,946 $ 6,103 $ 5,984
===== ===== ===== =====
GM's share of nonconsolidated
affiliates' net income (loss)
(Millions)
GMAC * $ (809) $ - $ (874) $ -
Shanghai GM and
SAIC-GM-Wuling 73 76 306 233
Other ** 42 26 134 198
---- ---- ---- -----
$ (694) $ 102 $ (434) $ 431
==== ==== ==== ====
* GMAC's reported results includes a charge for the quarter and
year-to-date periods related to a goodwill impairment charge of $455
million. GM's share of this charge totaled $223 million and was
included in GM's reported share of GMAC's net losses above.
** GM sold most of its investment in Suzuki in the first quarter
of 2006, and consequently now accounts for its remaining investment
as an equity security, and no longer records income on the equity basis.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Third Quarter
2007 and 2006
----------------------
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Net sales
and revenue
GMNA $ 26,607 $ 26,788 $ -$ - $ 26,607 $ 26,788
GME 8,722 7,444 - - 8,722 7,444
GMLAAM 4,944 3,658 - - 4,944 3,658
GMAP 5,446 3,847 - - 5,446 3,847
Auto Eliminations
(a) (2,613) (2,085) - - (2,613) (2,085)
------ ------ --- --- ------ ------
Total GMA 43,106 39,652 - - 43,106 39,652
Corporate & Other
(a) 28 (40) - - 28 (40)
------ ------ --- --- ------ ------
Total Auto &
Other 43,134 39,612 - - 43,134 39,612
------- ------ --- --- ------ ------
GMAC - 9,282 - - - 9,282
Other Financing
(a) 700 (2) - - 700 (2)
------- ------ --- --- ------ ------
Total Financing 700 9,280 - - 700 9,280
-------- ------ --- --- ------ ------
Total net sales
and revenue $ 43,834 $ 48,892 $ -$ - $ 43,834 $ 48,892
====== ====== ==== ==== ====== ======
Income (loss) from
continuing operations
before income taxes,
other equity income and
minority interests
GMNA $ (1,760) $ (927) $ 1,468 $ 11 $ (292) $ (916)
GME (406) (197) 262 123 (144) (74)
GMLAAM 375 187 - - 375 187
GMAP 168 (10) - - 168 (10)
Auto Eliminations (26) 5 - - (26) 5
------ ------ ------ ---- ----- -----
Total GMA (1,649) (942) 1,730 134 81 (808)
Corporate & Other (999) (678) 601 500 (398) (178)
------ ------ ------ ---- ----- -----
Total Auto &
Other (2,648) (1,620) 2,331 634 (317) (986)
------ ------ ------ ---- ----- -----
GMAC (753) 17 - 839 (753) 856
Other Financing 63 398 - (392) 63 6
----- -------- ------------- ------- --------
Total Financing (690) 415 - 447 (690) 862
----- -------- ------------- ------- --------
Total income (loss)
from continuing
operations before
income taxes, other
equity income and
minority
interests $ (3,338) $(1,205) $ 2,331 $1,081 $(1,007) $ (124)
===== ===== ===== ===== ===== ===
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Third Quarter
2007 and 2006
----------------------
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Income (loss) from
continuing operations
GMNA $ (38,195) $ (667) $37,948 $ 7 $ (247) $ (660)
GME (2,869) (126) 2,779 87 (90) (39)
GMLAAM 340 183 - - 340 183
GMAP 138 205 - (148) 138 57
Auto Eliminations
(a) (19) 4 - - (19) 4
------- ------ ------- ----- ----- ----
Total GMA (40,605) (401) 40,727 (54) 122 (455)
Corporate & Other (1,136) (25) 31 325 (1,105) 300
------- ------ ------- ----- ----- ----
Total Auto &
Other (41,741) (426) 40,758 271 (983) (155)
------- ------ ------- ----- ----- ----
GMAC (803) (173) 46 695 (757) 522
Other Financing 32 322 77 (322) 109 -
------- ------ ------- ----- ----- ----
Total Financing (771) 149 123 373 (648) 522
------- ------ ------- ----- ----- -----
Total income (loss)
from continuing
operations (42,512) (277) 40,881 644 (1,631) 367
Income from
discontinued
operations 45 130 - - 45 130
Sale of
discontinued
operations 3,504 - (3,504) - - -
------- ------ ------- ----- ------ -----
Net income
(loss) $ (38,963) $ (147) $37,377 $ 644 $ (1,586) $ 497
====== === ====== === ===== ===
Income tax expense
(benefit)
GMNA $ 36,429 $ (261)$(36,480) $ 4 $ (51) $ (257)
GME 2,471 (63) (2,517) 36 (46) (27)
GMLAAM 34 (5) - - 34 (5)
GMAP 48 (260) - 253 48 (7)
Auto Eliminations (9) 1 - - (9) 1
------ ------ ------ ---- ----- ----
Total GMA 38,973 (588) (38,997) 293 (24) (295)
Corporate & Other 140 (649) 570 175 710 (474)
------ ------ ----- ---- ----- ----
Total Auto &
Other 39,113 (1,237) (38,427) 468 686 (769)
------ ------ ------ ---- ----- ----
GMAC 50 184 (46) 144 4 328
Other Financing 23 76 (77) (70) (54) 6
----- ------ ------ ---- ----- ----
Total Financing 73 260 (123) 74 (50) 334
----- ------ ------ ---- ----- ----
Income tax expense
(benefit) $ 39,186 $ (977)$(38,550) $ 542 $ 636 $ (435)
====== ==== ====== ==== === ===
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Third Quarter
2007 and 2006
----------------------
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Effective tax rate
Total GM (1,174)% 81% (1,654)% 50% (63)% 351%
GMNA (2,070)% 28% (2,485)% 36% 17% 28%
GME (609)% 32% (961)% 29% 32% 37%
GMAC (7)% 1,082% n.m. 17% (.5)% 38%
Equity income (loss)
and minority interests,
net of tax
GMNA $ (6) $ (1) $ - $ - $ (6) $ (1)
GME 8 8 - - 8 8
GMLAAM (1) (9) - - (1) (9)
GMAP * 18 (45) - 105 18 60
Auto Eliminations (2) - - - (2) -
--- -- --- --- --- --
Total GMA $ 17 $ (47) $ - $ 105 $ 17 $ 58
== === == === == ==
* We consolidate GM Daewoo, but exclude through minority interest, the
profits on the 49% of GM Daewoo that we do not own. On a reported basis,
this minority interest was $68 million for the third quarter of 2007
compared to $124 million for the third quarter of 2006.
n.m. = not meaningful
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Third Quarter
2007 and 2006
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Net sales
and revenue
GMNA $ 84,327 $ 88,137 $ - $ - $ 84,327 $ 88,137
GME 26,820 24,280 - - 26,820 24,280
GMLAAM 12,854 10,652 - - 12,854 10,652
GMAP 15,469 11,030 - - 15,469 11,030
Auto
Eliminations (a) (7,848) (6,303) - - (7,848) (6,303)
------- ------- --- ---- ------- -------
Total GMA 131,622 127,796 - - 131,622 127,796
Corporate &
Other (a) 73 (139) - - 73 (139)
------- -------- --- ---- ------- -------
Total Auto &
Other 131,695 127,657 - - 131,695 127,657
------- -------- --- ---- ------- -------
GMAC - 27,143 - - - 27,143
Other Financing
(a) 2,530 71 - - 2,530 71
------- -------- --- ---- ------- -------
Total Financing 2,530 27,214 - - 2,530 27,214
------- -------- --- ---- ------- -------
Total net sales
and revenue $ 134,225 $154,871 $ - $ - $134,225 $154,871
======= ======= ==== ==== ======= =======
Income (loss) from
continuing operations
before income taxes,
other equity income and
minority interests
GMNA $ (2,069) $(7,580) $ 1,587 $6,006 $ (482) $(1,574)
GME (92) (159) 349 512 257 353
GMLAAM 925 453 - 43 925 496
GMAP 544 1,063 63 (977) 607 86
Auto Eliminations
(a) (35) (2) - - (35) (2)
------- ------ ------- ----- ------- -------
Total GMA (727) (6,225) 1,999 5,584 1,272 (641)
Corporate &
Other (1,787) (1,615) 1,176 504 (611) (1,111)
------- ------ ------- ----- ------- -------
Total Auto &
Other (2,514) (7,840) 3,175 6,088 661 (1,752)
------- ------ ------- ----- ------- -------
GMAC (733) 1,875 - 839 (733) 2,714
Other Financing 203 (29) - 41 203 12
------- ------ ------- ----- ------- -------
Total Financing (530) 1,846 - 880 (530) 2,726
------- ------ ------- ----- ------- -------
Total income (loss)
from continuing
operations before
income taxes, other
equity income and
minority
interests $ (3,044) $(5,994) $ 3,175 $6,968 $ 131 $ 974
==== ===== ===== ===== ==== =====
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2007 and 2006
----------------------
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Income (loss) from
continuing operations
GMNA $(38,416) $(5,018) $38,026 $3,904 $(390) $(1,114)
GME (2,647) (106) 2,835 341 188 235
GMLAAM 754 362 - 43 754 405
GMAP 481 1,073 44 (755) 525 318
Auto
Eliminations (a) (23) (1) - - (23) (1)
------ ------ ------ ----- ------ -----
Total GMA (39,851) (3,690) 40,905 3,533 1,054 (157)
Corporate & Other (1,258) (333) 405 328 (853) (5)
------ ------ ------ ----- ------ -----
Total Auto &
Other (41,109) (4,023) 41,310 3,861 201 (162)
------ ------ ------ ----- ------ -----
GMAC (779) 1,109 46 695 (733) 1,804
Other Financing 118 (364) 77 368 195 4
------ ------ ------ ----- ------ -----
Total Financing (661) 745 123 1,063 (538) 1,808
------ ------ ------ ----- ------ -----
Total income (loss)
from continuing
operations (41,770) (3,278) 41,433 4,924 (337) 1,646
Income from
discontinued
operations 256 350 - - 256 350
Sale of
discontinued
operations 3,504 - (3,504) - - -
------ ------ ------ ----- ------ -----
Net income
(loss) $ (38,010) $(2,928)$ 37,929 $4,924 $ (81) $ 1,996
===== ====== ====== ===== ===== =====
Income tax expense
(benefit)
GMNA $ 36,354 $(2,486)$(36,439)$2,102 $ (85) $ (384)
GME 2,568 (37) (2,486) 171 82 134
GMLAAM 170 80 - - 170 80
GMAP 128 96 19 (117) 147 (21)
Auto Eliminations (12) (1) - - (12) (1)
------ ------ ------ ----- ------ -----
Total GMA 39,208 (2,348) (38,906) 2,156 302 (192)
Corporate & Other (526) (1,277) 771 176 245 (1,101)
------ ------ ------ ----- ------ -----
Total Auto &
Other 38,682 (3,625) (38,135) 2,332 547 (1,293)
------ ------ ------ ----- ------ -----
GMAC 46 767 (46) 144 - 911
Other Financing 77 335 (77) (327) - 8
------ ------ ------ ----- ------ -----
Total Financing 123 1,102 (123) (183) - 919
------ ------ ------ ----- ------ -----
Income tax expense
(benefit) $ 38,805 $ (2,523)$(38,258)$2,149 $ 547 $ (374)
====== ====== ====== ===== ==== =====
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2007 and 2006
----------------------
Reported Special Items Adjusted
------------ --------------- ----------------
2007 2006 2007 2006 2007 2006
Restated Restated Restated
------- -------- ------- -------- ----- --------
Effective tax rate
Total GM (1,275)% 42% (1,205)% 31% 418% (38)%
GMNA (1,757)% 33% (2,296)% 35% 18% 24%
GME (2,791)% 23% (712)% 33% 32% 38%
GMAC (6)% 41% n.m. 17% - 34%
Equity income (loss)
and minority interests,
net of tax
GMNA $ 7 $ 76 $ - $ - $ 7 $ 76
GME 13 16 - - 13 16
GMLAAM (1) (11) - - (1) (11)
GMAP * 65 106 - 105 65 211
--- ---- --- --- --- ---
Total GMA $ 84 $ 187 $ - $ 105 $ 84 $ 292
=== ==== === === === ====
* We consolidate GM Daewoo, but exclude, through minority interest, the
profits on the 49% of GM Daewoo that we do not own. On a reported basis,
this minority interest was $270 million for the nine months year-to-date
2007 compared to $173 million for the nine months year-to-date 2006.
n.m. = not meaningful
General Motors Corporation
Operating Statistics
(Unaudited)
Third Quarter Year to Date
------------------ ----------------
2007 2006 2007 2006
(Units in thousands) ----- ------- ------ ------
Worldwide Production Volume:
GMNA - Cars 367 417 1,168 1,375
GMNA - Trucks 653 633 2,057 2,167
----- ----- ------ -----
Total GMNA 1,020 1,050 3,225 3,542
GME 396 374 1,371 1,363
GMLAAM 251 215 706 615
GMAP * 489 433 1,604 1,387
----- ----- ------ -----
Total Worldwide 2,156 2,072 6,906 6,907
===== ===== ====== ====
Vehicle Unit Deliveries:
Chevrolet - Cars 190 216 595 638
Chevrolet - Trucks 416 430 1,153 1,240
Pontiac 101 118 277 322
GMC 140 129 381 363
Buick 54 66 144 191
Saturn 62 65 188 168
Cadillac 57 59 155 170
Other 27 34 77 92
----- ----- ------ -----
Total United States 1,047 1,117 2,970 3,184
Canada, Mexico, and Other 159 168 492 514
----- ----- ------ -----
Total GMNA 1,206 1,285 3,462 3,698
GME 524 457 1,652 1,529
GMLAAM 329 270 894 746
GMAP * 328 283 1,054 920
----- ----- ------ -----
Total Worldwide ** 2,387 2,295 7,061 6,893
===== ===== ===== =====
Market Share:
United States - Cars 20.4% 21.8% 19.6% 20.8%
United States - Trucks 29.1% 27.9% 27.0% 27.4%
Total United States 25.1% 25.1% 23.6% 24.3%
Total GMNA 24.3% 24.5% 23.2% 24.0%
Total GME 9.5% 9.0% 9.5% 9.2%
Total GMLAAM 17.5% 17.1% 17.1% 16.6%
Total GMAP 6.5% 6.2% 6.8% 6.4%
Total Worldwide 13.7% 13.9% 13.3% 13.6%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 38.1% 33.9% 36.0% 36.1%
% Fleet Sales - Trucks 21.6% 17.3% 20.8% 21.3%
Total Vehicles 27.8% 24.0% 26.7% 27.2%
GMNA Capacity Utilization *** 84.1% 84.1% 89.0% 94.3%
* GMAP production and sales volume includes SAIC-GM Wuling Automobile
Co. Ltd. joint venture vehicles.
** Total Worldwide may include rounding differences.
*** Two shift rated, annualized.
General Motors Corporation
Operating Statistics
(Unaudited)
Third Quarter Year to Date
------------------- --------------------
2007 2006 2007 2006
------ ------- ------ -------
GMAC's Worldwide Cost of
Borrowing (b) 6.51% 6.31% 6.30% 5.84%
GMAC Period End Debt Spreads
Over U. S. Treasuries
2 Year 278 bp 200 bp 278 bp 200 bp
5 Year 421 bp 250 bp 421 bp 250 bp
10 Year 478 bp 290 bp 478 bp 290 bp
GMAC Automotive Finance
Operations Consumer
Credit (North America)
Net charge-offs as a % of
managed receivables 1.20% 1.19% 1.17% 1.15%
Retail contracts 30 days
delinquent - % of average
number of contracts
outstanding (c) 2.54% 2.42% 2.33% 2.21%
Share of GM retail sales
(U.S. only)
Total consumer volume (retail
and lease) as % of retail 27% 45% 27% 33%
SmartLease as % of retail 18% 17% 19% 19%
Worldwide Employment
at September 30 (Thousands)
United States Hourly (d) 78 92
United States Salary (d) 32 33
----- -----
Total United States 110 125
Canada, Mexico, and Other 29 31
----- -----
GMNA 139 156
GME 58 62
GMLAAM 34 32
GMAP 34 34
GMAC - 31
Other 2 3
----- -----
Total United States 267 318
===== =====
Worldwide Payrolls
(Billions) $ 4.5 $ 5.9 $ 13.3 $ 16.5
Footnotes:
(a)Auto Eliminations, Corporate & Other and Other Financing include
intercompany eliminations.
(b)Calculated by dividing total interest expense (excluding mark to
market adjustments) by total debt.
(c)Excludes accounts in bankruptcy.
(d)Approximately 2,400 hourly and 1,100 salary employees are excluded
from 2007 data due to the sale of Allison Transmission.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
------------------ -----------------
2007 2006 2007 2006
------ ------- ------ -------
(As (As
restated) restated)
Net sales and revenue
Automotive sales $43,134 $39,612 $131,695 $127,657
Financial services and
insurance revenue 700 9,280 2,530 27,214
------- ------- -------- --------
Total net sales and revenue 43,834 48,892 134,225 154,871
------- ------- -------- --------
Costs and expenses
Automotive cost of sales 41,540 37,184 122,210 124,598
Selling, general and
administrative expense 3,601 3,155 10,205 9,740
Financial services and insurance
expense 640 7,596 2,334 23,608
Other expenses 350 1,943 925 3,151
------- ------- -------- --------
Total costs and expenses 46,131 49,878 135,674 161,097
------- ------- -------- --------
Operating loss (2,297) (986) (1,449) (6,226)
Equity in loss of GMAC LLC (809) -- (874) --
Automotive and other interest
expense (776) (529) (2,256) (1,861)
Automotive interest income and
other non-operating income 544 310 1,535 2,093
------- ------- -------- --------
Loss from continuing operations
before income taxes, other equity
income and minority interests (3,338) (1,205) (3,044) (5,994)
Income tax expense (benefit) 39,186 (977) 38,805 (2,523)
Equity income (loss) and minority
interests, net of tax 12 (49) 79 193
------- ------- -------- --------
Loss from continuing operations (42,512) (277) (41,770) (3,278)
Discontinued Operations
Income from discontinued
operations, net of tax 45 130 256 350
Gain on sale of discontinued
operations, net of tax 3,504 -- 3,504 --
------- ------- -------- --------
Income from discontinued
operations 3,549 130 3,760 350
------- ------- -------- --------
Net loss $(38,963) $(147) $(38,010) $(2,928)
======= ======= ======== ========
Basic earnings (loss) per share:
Continuing operations $(75.12) $(.49) $(73.82) $(5.80)
Discontinued operations 6.27 .23 6.64 .62
------- ------- -------- --------
Total $(68.85) $(.26) $(67.18) $(5.18)
======= ======= ======== ========
Weighted average common shares
outstanding, basic (millions) 566 566 566 566
======= ======= ======== ========
Diluted earnings (loss) per share:
Continuing operations $(75.12) $(.49) $(73.82) $(5.80)
Discontinued operations 6.27 .23 6.64 .62
------- ------- --------- ----------
Total $(68.85) $(.26) $(67.18) $(5.18)
======= ======= ======== ========
Weighted average common shares
outstanding, diluted (millions) 566 566 566 566
======= ======= ======== ========
Cash dividends per share $.25 $.25 $.75 $.75
======= ======= ======== ========
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
September 30, December 31, September 30,
2007 2006 2006
------------ ------------ -------------
(As (As
restated restated)
ASSETS
Current Assets
Cash and cash equivalents $24,402 $23,774 $17,802
Marketable securities 1,978 138 107
--------- -------- --------
Total cash and marketable
securities 26,380 23,912 17,909
Accounts and notes receivable,
net 10,728 8,216 6,855
Inventories 15,530 13,921 14,822
Equipment on operating leases,
net 5,572 6,125 6,569
Deferred income taxes and other
current assets 2,204 11,957 10,813
--------- ---------- ----------
Total current assets 60,414 64,131 56,968
Financing and Insurance Operations
Assets
Cash and cash equivalents 328 349 3,089
Assets held for sale -- -- 282,847
Equipment on operating leases,
net 7,856 11,794 13,325
Investment in GMAC LLC 6,852 7,523 --
Other assets 4,119 2,457 1,827
--------- -------- --------
Total Financing and Insurance
Operations Assets 19,155 22,123 301,088
Non-Current Assets
Property, net 42,264 41,934 38,959
Deferred income taxes 975 33,079 24,972
Prepaid pension 18,920 17,366 37,691
Other assets 7,772 7,671 8,357
--------- -------- --------
Total non-current assets 69,931 100,050 109,979
--------- -------- --------
Total Assets $149,500 $186,304 $468,035
========= ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable (principally
trade) $30,514 $26,931 $27,318
Short-term borrowings and current
portion of long-term debt 5,263 5,666 1,436
Accrued expenses 34,619 35,225 40,235
--------- --------- ---------
Total current liabilities 70,396 67,822 68,989
Financing and Insurance Operations
Liabilities
Liabilities related to assets held
for sale -- -- 272,869
Debt 5,962 9,438 10,073
Other liabilities and deferred
income taxes 1,666 2,139 2,243
--------- -------- --------
Total Financing and Insurance
Operations Liabilities 7,628 11,577 285,185
Non-Current Liabilities
Long-term debt 34,670 33,067 33,118
Postretirement benefits other than
pensions 48,336 50,409 34,534
Pensions 12,214 11,934 15,937
Other liabilities and deferred
income taxes 16,327 15,957 17,714
--------- -------- --------
Total non-current liabilities 111,547 111,367 101,303
--------- -------- --------
Total liabilities 189,571 190,766 455,477
Minority interests 1,700 1,190 1,210
Stockholders' Equity (Deficit)
Preferred stock, no par value,
6,000,000 shares authorized, no
shares issued and outstanding -- -- --
Common stock, $1 2/3 par value
(2,000,000,000 shares authorized,
756,637,541 and 565,877,391 shares
issued and outstanding at
September 30, 2007, respectively,
756,637,541 and 565,670,254 shares
issued and outstanding at
December 31, 2006,
respectively, and 756,637,541
and 565,611,157 shares issued and
outstanding at September
30, 2006, respectively) 943 943 943
Capital surplus (principally
additional paid-in capital) 15,264 15,336 15,316
Retained earnings (deficit) (38,528) 195 (616)
Accumulated other comprehensive
loss (19,450) (22,126) (4,295)
------- ------- -------
Total stockholders' equity
(deficit) (41,771) (5,652) 11,348
------- ------- -------
Total Liabilities, Minority
Interests and Stockholders'
Equity (Deficit) $149,500 $186,304 $468,035
======= ======= =======
