Attached files
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| 8-K - Q3 2015 EARNINGS RELEASE 8-K - General Motors Co | a2015q3earningsrelease8-k.htm |
Exhibit 99.1
For Release: Wednesday, Oct. 21, 2015, 7:30 a.m. EDT
GM Reports Third-Quarter Net Income of $1.4 Billion
and Record EBIT-Adjusted of $3.1 Billion
• | EPS of $0.84; EPS adjusted of $1.50, up 55 percent from a year ago |
• | GM North America sets records for EBIT-adjusted and EBIT-adjusted margin |
DETROIT - General Motors Co. (NYSE: GM) today announced third-quarter net income to common stockholders of $1.4 billion or $0.84 per diluted share, compared to $1.4 billion or $0.81 per diluted share a year ago. Improvement in operating performance during the quarter was offset by a net loss from special items.
Earnings per share adjusted for special items was $1.50, up 55 percent compared to the third quarter of 2014. Year to date through the third quarter, adjusted earnings per share was $3.63, up 96 percent compared to the prior year.
Third quarter earnings before interest and tax (EBIT) adjusted of $3.1 billion and EBIT-adjusted margin of 8.0 percent were both records for any quarter. These compare to EBIT-adjusted of $2.3 billion and an EBIT-adjusted margin of 5.8 percent in the third quarter of 2014.
“These results reflect our work to capitalize on our strengths in the U.S. and China, while taking decisive, proactive steps to mitigate challenges elsewhere," said GM CEO Mary Barra. “GM is a vastly different company today than just five years ago. We’re building a strong foundation, driving earnings growth in our core business and executing a plan to lead the future of personal mobility, all with the aim of creating shareholder value for years to come.”
Net income to common stockholders includes a net loss from special items of $1.5 billion before tax, or $0.66 per diluted share for the quarter. Special items included $0.9 billion related to a Deferred Prosecution Agreement reached with the U.S. Attorney’s Office for matters associated with the ignition switch recall, and approximately $0.6 billion for the settlement of certain civil actions involving 2014 product recalls, including the ignition switch recall.
Net revenue during the quarter was $38.8 billion compared to $39.3 billion in the third quarter of 2014. The change in net revenue is more than attributed to a negative net foreign currency exchange impact. Holding exchange rates constant, net revenue was $2.3 billion higher than the third quarter of 2014.
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GM Results Overview (in billions except for per share amounts)
Q3 2015 | Q3 2014 | |
Net Revenue | $38.8 | $39.3 |
Net income attributable to common stockholders | $1.4 | $1.4 |
Earnings per share (EPS) diluted | $0.84 | $0.81 |
Impact of special items on EPS diluted | $(0.66) | $(0.16) |
EPS diluted - adjusted | $1.50 | $0.97 |
EBIT-adjusted | $3.1 | $2.3 |
% EBIT-adjusted margin | 8.0 | 5.8 |
Automotive net cash flow from operating activities | $2.6 | $0.7 |
Adjusted automotive free cash flow | $0.8 | $(0.8) |
Return on Invested Capital (ROIC) - % | 26.0 | 14.0 |
Segment EBIT-Adjusted Results
• | GM North America reported record levels for EBIT-adjusted of $3.3 billion, EBIT-adjusted margin of 11.8 percent and net revenue of $27.8 billion. This compares with EBIT-adjusted of $2.5 billion and EBIT-adjusted margin of 9.5 percent a year ago. |
• | GM Europe reported EBIT-adjusted of $(0.2) billion compared with $(0.4) billion in the third quarter of 2014. |
• | GM International Operations reported EBIT-adjusted of $0.3 billion, about equal to a year ago. Results included China equity income of $0.5 billion, which generated a 9.8 percent net income margin. |
• | GM South America reported EBIT-adjusted of $(0.2) billion compared with approximately break-even results in the third quarter of 2014. |
• | GM Financial reported earnings before tax of $0.2 billion, about equal to a year ago, and posted record net revenue of $1.7 billion. |
Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities was $2.6 billion and adjusted automotive free cash flow was $0.8 billion. GM ended the quarter with very strong total automotive liquidity of $34.0 billion, and automotive cash and marketable securities of $21.9 billion.
Year-to-date through October 19, GM has returned approximately $4.6 billion of cash to shareholders through share repurchases of more than $2.9 billion and dividends of more than $1.6 billion.
“The third quarter was evidence of the earnings power of this company, as we continue to build on our track record for generating results and delivering on our financial commitments,” said Chuck Stevens, GM executive vice president and chief financial officer. “We expect our earnings to accelerate in the next several years, with double-digit earnings per share growth.”
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.
# # #
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CONTACTS:
Media: Tom Henderson GM Finance Communications 313-410-2704 tom.e.henderson@gm.com | Investors: Randy Arickx GM Investor Relations 313-268-7070 randy.c.arickx@gm.com |
Forward-Looking Statements
In this press release, our use of the words “plans,” “anticipated,” “goals,” “expect,” “anticipate,” “possible,” “target,” “believe,” “commit,” “intend” “continue,” “may,” “would,” “could,” “should,” “project,” “appears,” “potential,” “projected,” “on track,” “upside,” “positioned,” “outlook” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors may include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls and the cost and effect on our reputation of product recalls; our ability to maintain adequate financing sources, including as required to fund our planned significant investment in new technology; the ability of our suppliers to timely deliver parts, components and systems; our ability to realize successful vehicle applications of new technology; overall strength and stability of our markets, particularly outside of North America and China; costs and risks associated with litigation and government investigations including those related to our various recalls and risks, consequences and costs associated with failure to comply with the deferred prosecution agreement; our ability to negotiate a successful new collective bargaining agreement with the UAW and avoid any costly work stoppage; our ability to remain competitive and our ability to continue to attract new customers, particularly for our new products. GM’s most recent reports on Form 10-K and Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports to the Securities and Exchange Commission.
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Exhibit 1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The accompanying tables and charts include earnings before interest and taxes adjusted for special items, presented net of noncontrolling interests (EBIT-adjusted), return on invested capital (ROIC) and Automotive adjusted free cash flow. These metrics are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) and have not been audited or reviewed by GM's independent auditors. EBIT-adjusted, ROIC and Automotive adjusted free cash flow are considered non-GAAP financial measures.
Management uses EBIT-adjusted to review the operating results of its automotive segments because it excludes interest income, interest expense and income taxes as well as certain additional adjustments. GM Financial uses income before income taxes-adjusted because management believes interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.
Management uses ROIC to review investment and capital allocation decisions. GM defines ROIC as EBIT-adjusted for the trailing four quarters divided by average net assets, which is considered to be the average equity balances adjusted for certain assets and liabilities during the same period.
Management uses adjusted free cash flow to review the liquidity of its automotive operations. GM measures adjusted free cash flow as cash flow from operations less capital expenditures adjusted for management actions, primarily related to strengthening its balance sheet, such as accrued interest on prepayments of debt and voluntary contributions to employee benefit plans.
Management uses these non-GAAP measures in its financial and operational decision making processes, for internal reporting and as part of its forecasting and budgeting processes as they provide additional transparency of GM's core operations. These measures allow management to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions.
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.
1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table summarizes the reconciliation of EBIT-adjusted to its most comparable U.S. GAAP measure, Net income attributable to stockholders (dollars in millions):
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Operating segments | |||||||||||||||
GM North America (GMNA) | $ | 3,293 | $ | 2,452 | $ | 8,255 | $ | 4,394 | |||||||
GM Europe (GME) | (231 | ) | (387 | ) | (515 | ) | (976 | ) | |||||||
GM International Operations (GMIO) | 269 | 259 | 989 | 826 | |||||||||||
GM South America (GMSA) | (217 | ) | (32 | ) | (575 | ) | (269 | ) | |||||||
General Motors Financial Company, Inc. (GM Financial)(a) | 231 | 205 | 670 | 684 | |||||||||||
Total operating segments(b) | 3,345 | 2,497 | 8,824 | 4,659 | |||||||||||
Corporate and eliminations | (249 | ) | (234 | ) | (775 | ) | (579 | ) | |||||||
EBIT-adjusted | 3,096 | 2,263 | 8,049 | 4,080 | |||||||||||
Special items | (1,500 | ) | (321 | ) | (3,157 | ) | (2,027 | ) | |||||||
Automotive interest income | 40 | 50 | 130 | 155 | |||||||||||
Automotive interest expense | (112 | ) | (96 | ) | (330 | ) | (299 | ) | |||||||
Gain on extinguishment of debt | — | 2 | — | 2 | |||||||||||
Income tax benefit (expense) | (165 | ) | (427 | ) | (1,271 | ) | 51 | ||||||||
Net income attributable to stockholders | $ | 1,359 | $ | 1,471 | $ | 3,421 | $ | 1,962 | |||||||
__________
(a) | GM Financial amounts represent income before income taxes-adjusted. |
(b) | GM's automotive operations' interest income, interest expense and income tax benefit (expense) are recorded centrally in Corporate. |
In the three months ended September 30, 2015 special items consisted of charges for various legal matters of approximately $1.5 billion related to the ignition switch recall in Corporate.
In the nine months ended September 30, 2015 special items consisted of net insurance recoveries related to flood damage of $36 million in GMNA; costs related to the change in business model in Russia of $354 million in GME and $96 million in GMIO, which is net of noncontrolling interests; asset impairment charges of $297 million related to Thailand subsidiaries in GMIO; Venezuela currency devaluation of $604 million and asset impairment charges of $116 million related to Venezuela subsidiaries in GMSA; and charges related to the ignition switch recall including the compensation program of $225 million and various legal matters of approximately $1.5 billion in Corporate.
In the three months ended September 30, 2014 special items consisted of charges related to flood damage of $132 million in GMNA; and property and intangible asset impairment charges of $194 million related to Russian subsidiaries in GME.
In the nine months ended September 30, 2014 special items consisted of a catch-up adjustment related to the change in estimate for recall campaigns of $874 million and charges related to flood damage of $132 million in GMNA; property and intangible asset impairment charges of $194 million related to Russian subsidiaries in GME; Venezuela currency devaluation of $419 million in GMSA; and a charge related to the ignition switch recall compensation program of $400 million in Corporate.
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General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table summarizes the calculation of ROIC (dollars in billions):
Four Quarters Ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
EBIT-adjusted | $ | 10.5 | $ | 6.0 | |||
Average equity | $ | 35.9 | $ | 43.0 | |||
Add: Average automotive debt and interest liabilities (excluding capital leases) | 8.3 | 6.3 | |||||
Add: Average automotive net pension & OPEB liability | 29.2 | 25.5 | |||||
Less: Average fresh start accounting goodwill | (0.1 | ) | |||||
Less: Average net automotive income tax asset | (33.1 | ) | (31.9 | ) | |||
ROIC average net assets | $ | 40.3 | $ | 42.8 | |||
ROIC | 26.0 | % | 14.0 | % | |||
The following table summarizes the reconciliation of Automotive adjusted free cash flow to Automotive net cash provided by operating activities (dollars in millions):
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Automotive adjusted free cash flow | $ | 828 | $ | (845 | ) | $ | 2,500 | $ | 1,347 | ||||||
Less: Adjustments | — | 53 | — | 53 | |||||||||||
Capital expenditures | 1,815 | 1,642 | 5,260 | 5,052 | |||||||||||
Automotive net cash provided by operating activities | $ | 2,643 | $ | 744 | $ | 7,760 | $ | 6,346 | |||||||
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General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize key financial information by segment (dollars in millions):
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 27,794 | $ | 4,556 | $ | 3,016 | $ | 1,738 | $ | 36 | $ | 37,140 | $ | 1,707 | $ | (4 | ) | $ | 38,843 | ||||||||||||||||||||
Expenditures for property | $ | 1,352 | $ | 210 | $ | 83 | $ | 115 | $ | 55 | $ | — | $ | 1,815 | $ | 20 | $ | — | $ | 1,835 | |||||||||||||||||||
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets | $ | 1,009 | $ | 139 | $ | 117 | $ | 56 | $ | 4 | $ | (1 | ) | $ | 1,324 | $ | 657 | $ | — | $ | 1,981 | ||||||||||||||||||
Equity income(a) | $ | 5 | $ | — | $ | 467 | $ | — | $ | — | $ | — | $ | 472 | $ | 30 | $ | — | $ | 502 | |||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Net sales and revenue | $ | 25,816 | $ | 5,226 | $ | 3,716 | $ | 3,202 | $ | 39 | $ | 37,999 | $ | 1,261 | $ | (5 | ) | $ | 39,255 | ||||||||||||||||||||
Expenditures for property | $ | 1,219 | $ | 194 | $ | 111 | $ | 91 | $ | 27 | $ | — | $ | 1,642 | $ | 22 | $ | — | $ | 1,664 | |||||||||||||||||||
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets | $ | 1,023 | $ | 282 | $ | 206 | $ | 92 | $ | 20 | $ | (1 | ) | $ | 1,622 | $ | 248 | $ | — | $ | 1,870 | ||||||||||||||||||
Equity income(a) | $ | 5 | $ | 2 | $ | 490 | $ | — | $ | — | $ | — | $ | 497 | $ | — | $ | — | $ | 497 | |||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||||||||||||||
Total net sales and revenue | $ | 78,951 | $ | 13,992 | $ | 9,181 | $ | 5,939 | $ | 111 | $ | 108,174 | $ | 4,576 | $ | (15 | ) | $ | 112,735 | ||||||||||||||||||||
Expenditures for property | $ | 3,775 | $ | 702 | $ | 372 | $ | 350 | $ | 61 | $ | — | $ | 5,260 | $ | 64 | $ | — | $ | 5,324 | |||||||||||||||||||
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets | $ | 3,143 | $ | 378 | $ | 643 | $ | 239 | $ | 12 | $ | (3 | ) | $ | 4,412 | $ | 1,496 | $ | — | $ | 5,908 | ||||||||||||||||||
Equity income(a) | $ | 15 | $ | 1 | $ | 1,477 | $ | — | $ | — | $ | — | $ | 1,493 | $ | 86 | $ | — | $ | 1,579 | |||||||||||||||||||
GMNA | GME | GMIO | GMSA | Corporate | Eliminations | Total Automotive | GM Financial | Eliminations | Total | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Total net sales and revenue | $ | 75,891 | $ | 16,820 | $ | 10,548 | $ | 9,404 | $ | 113 | $ | 112,776 | $ | 3,549 | $ | (13 | ) | $ | 116,312 | ||||||||||||||||||||
Expenditures for property | $ | 3,567 | $ | 587 | $ | 583 | $ | 216 | $ | 107 | $ | (8 | ) | $ | 5,052 | $ | 37 | $ | — | $ | 5,089 | ||||||||||||||||||
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets | $ | 3,336 | $ | 506 | $ | 482 | $ | 297 | $ | 55 | $ | (3 | ) | $ | 4,673 | $ | 623 | $ | — | $ | 5,296 | ||||||||||||||||||
Equity income(a) | $ | 14 | $ | 7 | $ | 1,604 | $ | — | $ | — | $ | — | $ | 1,625 | $ | — | $ | — | $ | 1,625 | |||||||||||||||||||
__________
(a) | Includes automotive China joint venture equity income of $463 million and $484 million in the three months ended September 30, 2015 and 2014 and $1,485 million and $1,555 million in the nine months ended September 30, 2015 and 2014. |
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General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Vehicle Sales
GM presents both wholesale and retail vehicle sales data to assist in the analysis of its revenue and market share. GM does not currently export vehicles to Cuba, Iran, North Korea, Sudan or Syria. Accordingly, these countries are excluded from industry sales data in the tables below and corresponding calculations of its market share.
Wholesale Vehicle Sales
Wholesale vehicle sales data, which represents sales directly to dealers and others, is the measure that correlates GM's revenue from the sale of vehicles, which is the largest component of automotive Net sales and revenue. Wholesale vehicle sales exclude vehicles produced by joint ventures. In the nine months ended September 30, 2015, 48.4% of GM's wholesale vehicle sales volume was generated outside the U.S. The following table summarizes total wholesale vehicle sales of new vehicles by automotive segment (vehicles in thousands):
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
GMNA | 938 | 834 | 2,645 | 2,471 | |||||||
GME | 276 | 273 | 847 | 869 | |||||||
GMIO | 146 | 159 | 431 | 478 | |||||||
GMSA | 142 | 218 | 435 | 637 | |||||||
Worldwide | 1,502 | 1,484 | 4,358 | 4,455 | |||||||
5
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Retail Vehicle Sales and Market Share
Retail vehicle sales data, which represents sales to the end customers based upon the good faith estimates of management, including fleets, 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 end customer data is not readily available other data sources, such as wholesale or forecast volumes, are used to estimate retail vehicle sales.
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 vehicles sales on non-GM trademarked vehicles by those joint ventures. Retail vehicle sales data includes vehicles sold through the dealer registration channel. This sales channel consists primarily of dealer demonstrator, loaner and self-registered vehicles (primarily in Europe). These vehicles 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 the daily rental car companies. The following table summarizes total retail sales volume, or estimated sales volume where retail sales volume is not available, of new vehicles by geographic region (vehicles in thousands):
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
United States | |||||||||||
Chevrolet - Cars | 182 | 212 | 590 | 688 | |||||||
Chevrolet - Trucks | 239 | 205 | 649 | 555 | |||||||
Chevrolet - Crossovers | 121 | 98 | 358 | 300 | |||||||
Cadillac | 45 | 46 | 126 | 128 | |||||||
Buick | 61 | 57 | 168 | 171 | |||||||
GMC | 146 | 134 | 409 | 366 | |||||||
Total United States | 794 | 752 | 2,300 | 2,208 | |||||||
Canada, Mexico and Other | 137 | 133 | 385 | 351 | |||||||
Total North America | 931 | 885 | 2,685 | 2,559 | |||||||
Europe | |||||||||||
Opel/Vauxhall | 268 | 253 | 850 | 817 | |||||||
Chevrolet | 20 | 32 | 48 | 141 | |||||||
Total Europe | 288 | 285 | 898 | 958 | |||||||
Asia/Pacific, Middle East and Africa | |||||||||||
Chevrolet | 259 | 330 | 849 | 976 | |||||||
Wuling | 318 | 391 | 1,113 | 1,237 | |||||||
Buick | 238 | 221 | 686 | 671 | |||||||
Baojun | 122 | 44 | 304 | 82 | |||||||
Cadillac | 19 | 20 | 60 | 57 | |||||||
Other | 49 | 57 | 154 | 190 | |||||||
Total Asia/Pacific, Middle East and Africa | 1,005 | 1,063 | 3,166 | 3,213 | |||||||
South America(a) | 150 | 217 | 486 | 642 | |||||||
Total Worldwide | 2,374 | 2,450 | 7,235 | 7,372 | |||||||
__________
(a) | Primarily Chevrolet. |
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General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The wholesale vehicle sales at GM's China joint ventures presented in the following table are included in GM's retail vehicle sales on the preceding page (vehicles in thousands):
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
SAIC General Motors Sales Co., Ltd. | 373 | 409 | 1,158 | 1,229 | |||||||
SAIC-GM-Wuling Automobile Co., Ltd. and FAW-GM Light Duty Commercial Vehicle Co., Ltd. | 441 | 441 | 1,418 | 1,352 | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||
Market Share | |||||||
United States - Cars | 11.5% | 13.3% | 12.3% | 14.3% | |||
United States - Trucks | 25.2% | 24.3% | 24.4% | 22.9% | |||
United States - Crossovers | 17.2% | 16.6% | 17.6% | 17.1% | |||
Total United States | 17.1% | 17.3% | 17.2% | 17.4% | |||
Total North America | 16.6% | 16.8% | 16.7% | 16.9% | |||
Total Europe | 6.3% | 6.5% | 6.2% | 6.9% | |||
Total Asia/Pacific, Middle East and Africa | 10.2% | 10.5% | 10.1% | 10.1% | |||
Total South America | 14.1% | 16.4% | 15.3% | 16.4% | |||
Total Worldwide | 11.2% | 11.6% | 11.1% | 11.4% | |||
% Total U.S. Fleet Mix | 17.7% | 22.4% | 22.8% | 24.9% | |||
North America Capacity Two Shift Utilization | 105.3% | 101.9% | 105.1% | 105.5% | |||
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General Motors Company and Subsidiaries
Consolidating Income Statements
(In millions)
(Unaudited)
Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Consolidated | Automotive | GM Financial | Eliminations | Consolidated | ||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||
Automotive | $ | 37,140 | $ | — | $ | — | $ | 37,140 | $ | 37,999 | $ | — | $ | — | $ | 37,999 | |||||||||||||||
GM Financial | — | 1,707 | (4 | ) | 1,703 | — | 1,261 | (5 | ) | 1,256 | |||||||||||||||||||||
Total net sales and revenue | 37,140 | 1,707 | (4 | ) | 38,843 | 37,999 | 1,261 | (5 | ) | 39,255 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||
Automotive cost of sales | 32,060 | — | (2 | ) | 32,058 | 34,058 | — | (4 | ) | 34,054 | |||||||||||||||||||||
GM Financial interest, operating and other expenses | — | 1,506 | — | 1,506 | — | 1,053 | — | 1,053 | |||||||||||||||||||||||
Automotive selling, general and administrative expense | 4,282 | — | — | 4,282 | 2,921 | — | — | 2,921 | |||||||||||||||||||||||
Total costs and expenses | 36,342 | 1,506 | (2 | ) | 37,846 | 36,979 | 1,053 | (4 | ) | 38,028 | |||||||||||||||||||||
Operating income | 798 | 201 | (2 | ) | 997 | 1,020 | 208 | (1 | ) | 1,227 | |||||||||||||||||||||
Automotive interest expense | 114 | — | (2 | ) | 112 | 97 | — | (1 | ) | 96 | |||||||||||||||||||||
Interest income and other non-operating income, net | 119 | — | — | 119 | 239 | — | — | 239 | |||||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||
Equity income | 472 | 30 | — | 502 | 497 | — | — | 497 | |||||||||||||||||||||||
Income before income taxes | 1,275 | 231 | — | 1,506 | 1,661 | 208 | — | 1,869 | |||||||||||||||||||||||
Income tax expense | 159 | 6 | — | 165 | 385 | 42 | — | 427 | |||||||||||||||||||||||
Net income | 1,116 | 225 | — | 1,341 | 1,276 | 166 | — | 1,442 | |||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 18 | — | — | 18 | 29 | — | — | 29 | |||||||||||||||||||||||
Net income attributable to stockholders | $ | 1,134 | $ | 225 | $ | — | $ | 1,359 | $ | 1,305 | $ | 166 | $ | — | $ | 1,471 | |||||||||||||||
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Consolidated | Automotive | GM Financial | Eliminations | Consolidated | ||||||||||||||||||||||||
Net sales and revenue | |||||||||||||||||||||||||||||||
Automotive | $ | 108,174 | $ | — | $ | — | $ | 108,174 | $ | 112,776 | $ | — | $ | — | $ | 112,776 | |||||||||||||||
GM Financial | — | 4,576 | (15 | ) | 4,561 | — | 3,549 | (13 | ) | 3,536 | |||||||||||||||||||||
Total net sales and revenue | 108,174 | 4,576 | (15 | ) | 112,735 | 112,776 | 3,549 | (13 | ) | 116,312 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||
Automotive cost of sales | 95,337 | — | (8 | ) | 95,329 | 104,042 | — | (10 | ) | 104,032 | |||||||||||||||||||||
GM Financial interest, operating and other expenses | — | 3,992 | — | 3,992 | — | 2,854 | — | 2,854 | |||||||||||||||||||||||
Automotive selling, general and administrative expense | 10,376 | — | — | 10,376 | 9,205 | — | — | 9,205 | |||||||||||||||||||||||
Total costs and expenses | 105,713 | 3,992 | (8 | ) | 109,697 | 113,247 | 2,854 | (10 | ) | 116,091 | |||||||||||||||||||||
Operating income (loss) | 2,461 | 584 | (7 | ) | 3,038 | (471 | ) | 695 | (3 | ) | 221 | ||||||||||||||||||||
Automotive interest expense | 337 | — | (7 | ) | 330 | 302 | — | (3 | ) | 299 | |||||||||||||||||||||
Interest income and other non-operating income, net | 373 | — | — | 373 | 409 | — | — | 409 | |||||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||
Equity income | 1,493 | 86 | — | 1,579 | 1,625 | — | — | 1,625 | |||||||||||||||||||||||
Income before income taxes | 3,990 | 670 | — | 4,660 | 1,263 | 695 | — | 1,958 | |||||||||||||||||||||||
Income tax expense (benefit) | 1,151 | 120 | — | 1,271 | (258 | ) | 207 | — | (51 | ) | |||||||||||||||||||||
Net income | 2,839 | 550 | — | 3,389 | 1,521 | 488 | — | 2,009 | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 32 | — | — | 32 | (47 | ) | — | — | (47 | ) | |||||||||||||||||||||
Net income attributable to stockholders | $ | 2,871 | $ | 550 | $ | — | $ | 3,421 | $ | 1,474 | $ | 488 | $ | — | $ | 1,962 | |||||||||||||||
8
General Motors Company and Subsidiaries
Basic and Diluted Earnings per Share
(Unaudited)
The following table summarizes basic and diluted earnings per share (in millions, except per share amounts):
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Basic earnings per share | |||||||||||||||
Net income attributable to common stockholders | $ | 1,359 | $ | 1,384 | $ | 3,421 | $ | 1,699 | |||||||
Weighted-average common shares outstanding | 1,577 | 1,612 | 1,597 | 1,603 | |||||||||||
Basic earnings per common share | $ | 0.86 | $ | 0.86 | $ | 2.14 | $ | 1.06 | |||||||
Diluted earnings per share | |||||||||||||||
Net income attributable to common stockholders – diluted | $ | 1,357 | $ | 1,376 | $ | 3,418 | $ | 1,677 | |||||||
Weighted-average common shares outstanding – diluted | 1,618 | 1,691 | 1,655 | 1,690 | |||||||||||
Diluted earnings per common share | $ | 0.84 | $ | 0.81 | $ | 2.07 | $ | 0.99 | |||||||
9
General Motors Company and Subsidiaries
Consolidating Balance Sheets
(In millions)
(Unaudited)
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Automotive | GM Financial | Eliminations | Consolidated | Automotive | GM Financial | Eliminations | Consolidated | ||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 13,831 | $ | 1,602 | $ | — | $ | 15,433 | $ | 15,980 | $ | 2,974 | $ | — | $ | 18,954 | |||||||||||||||
Marketable securities | 8,029 | — | — | 8,029 | 9,222 | — | — | 9,222 | |||||||||||||||||||||||
Restricted cash and marketable securities | 129 | 1,390 | — | 1,519 | 136 | 1,202 | — | 1,338 | |||||||||||||||||||||||
Accounts and notes receivable, net | 11,120 | 676 | (1,310 | ) | 10,486 | 9,396 | 788 | (1,106 | ) | 9,078 | |||||||||||||||||||||
GM Financial receivables, net | — | 17,403 | (186 | ) | 17,217 | — | 16,705 | (177 | ) | 16,528 | |||||||||||||||||||||
Inventories | 14,368 | — | — | 14,368 | 13,642 | — | — | 13,642 | |||||||||||||||||||||||
Equipment on operating leases, net | 4,596 | — | — | 4,596 | 3,564 | — | — | 3,564 | |||||||||||||||||||||||
Deferred income taxes | 8,757 | 451 | — | 9,208 | 9,440 | 320 | — | 9,760 | |||||||||||||||||||||||
Other current assets | 1,172 | 312 | 1 | 1,485 | 1,410 | 174 | — | 1,584 | |||||||||||||||||||||||
Total current assets | 62,002 | 21,834 | (1,495 | ) | 82,341 | 62,790 | 22,163 | (1,283 | ) | 83,670 | |||||||||||||||||||||
Non-current Assets | |||||||||||||||||||||||||||||||
Restricted cash and marketable securities | 55 | 538 | — | 593 | 67 | 868 | — | 935 | |||||||||||||||||||||||
GM Financial receivables, net | — | 17,671 | — | 17,671 | — | 16,006 | — | 16,006 | |||||||||||||||||||||||
Equity in net assets of nonconsolidated affiliates | 7,894 | 978 | — | 8,872 | 8,350 | — | — | 8,350 | |||||||||||||||||||||||
Property, net | 29,174 | 207 | — | 29,381 | 27,570 | 173 | — | 27,743 | |||||||||||||||||||||||
Goodwill and intangible assets, net | 4,637 | 1,446 | — | 6,083 | 4,945 | 1,465 | — | 6,410 | |||||||||||||||||||||||
GM Financial equipment on operating leases, net | — | 16,915 | — | 16,915 | — | 7,060 | — | 7,060 | |||||||||||||||||||||||
Deferred income taxes | 25,051 | (252 | ) | — | 24,799 | 25,439 | (25 | ) | — | 25,414 | |||||||||||||||||||||
Other assets | 2,447 | 355 | (457 | ) | 2,345 | 2,573 | 151 | (635 | ) | 2,089 | |||||||||||||||||||||
Total non-current assets | 69,258 | 37,858 | (457 | ) | 106,659 | 68,944 | 25,698 | (635 | ) | 94,007 | |||||||||||||||||||||
Total Assets | $ | 131,260 | $ | 59,692 | $ | (1,952 | ) | $ | 189,000 | $ | 131,734 | $ | 47,861 | $ | (1,918 | ) | $ | 177,677 | |||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||||||
Accounts payable (principally trade) | $ | 25,257 | $ | 1,079 | $ | (1,148 | ) | $ | 25,188 | $ | 22,463 | $ | 716 | $ | (650 | ) | $ | 22,529 | |||||||||||||
Short-term debt and current portion of long-term debt | |||||||||||||||||||||||||||||||
Automotive | 990 | — | (349 | ) | 641 | 1,131 | — | (631 | ) | 500 | |||||||||||||||||||||
GM Financial | — | 16,361 | — | 16,361 | — | 14,488 | — | 14,488 | |||||||||||||||||||||||
Accrued liabilities | 29,308 | 1,241 | — | 30,549 | 27,444 | 741 | (1 | ) | 28,184 | ||||||||||||||||||||||
Total current liabilities | 55,555 | 18,681 | (1,497 | ) | 72,739 | 51,038 | 15,945 | (1,282 | ) | 65,701 | |||||||||||||||||||||
Non-current Liabilities | |||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||
Automotive | 8,503 | — | — | 8,503 | 8,910 | — | — | 8,910 | |||||||||||||||||||||||
GM Financial | — | 31,898 | — | 31,898 | — | 22,943 | — | 22,943 | |||||||||||||||||||||||
Postretirement benefits other than pensions | 5,959 | — | — | 5,959 | 6,229 | — | — | 6,229 | |||||||||||||||||||||||
Pensions | 21,514 | 104 | — | 21,618 | 23,676 | 112 | — | 23,788 | |||||||||||||||||||||||
Other liabilities | 12,181 | 1,422 | (455 | ) | 13,148 | 13,396 | 1,322 | (636 | ) | 14,082 | |||||||||||||||||||||
Total non-current liabilities | 48,157 | 33,424 | (455 | ) | 81,126 | 52,211 | 24,377 | (636 | ) | 75,952 | |||||||||||||||||||||
Total Liabilities | 103,712 | 52,105 | (1,952 | ) | 153,865 | 103,249 | 40,322 | (1,918 | ) | 141,653 | |||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||
Common stock | 16 | — | — | 16 | 16 | — | — | 16 | |||||||||||||||||||||||
Additional paid-in capital | 27,744 | — | — | 27,744 | 28,937 | — | — | 28,937 | |||||||||||||||||||||||
Retained earnings | 6,369 | 8,543 | — | 14,912 | 6,604 | 7,973 | — | 14,577 | |||||||||||||||||||||||
Accumulated other comprehensive loss | (7,078 | ) | (956 | ) | — | (8,034 | ) | (7,639 | ) | (434 | ) | — | (8,073 | ) | |||||||||||||||||
Total stockholders’ equity | 27,051 | 7,587 | — | 34,638 | 27,918 | 7,539 | — | 35,457 | |||||||||||||||||||||||
Noncontrolling interests | 497 | — | — | 497 | 567 | — | — | 567 | |||||||||||||||||||||||
Total Equity | 27,548 | 7,587 | — | 35,135 | 28,485 | 7,539 | — | 36,024 | |||||||||||||||||||||||
Total Liabilities and Equity | $ | 131,260 | $ | 59,692 | $ | (1,952 | ) | $ | 189,000 | $ | 131,734 | $ | 47,861 | $ | (1,918 | ) | $ | 177,677 | |||||||||||||
10
General Motors Company and Subsidiaries
Consolidating Statements of Cash Flows
(In millions)
(Unaudited)
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||
Automotive | GM Financial | Reclassification(a) | Consolidated | Automotive | GM Financial | Reclassification(a) | Consolidated | |||||||||||||||||||||||||
Net cash provided by operating activities | $ | 7,760 | $ | 2,184 | $ | (475 | ) | $ | 9,469 | $ | 6,346 | $ | 1,382 | $ | (834 | ) | $ | 6,894 | ||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||||||
Expenditures for property | (5,260 | ) | (64 | ) | — | (5,324 | ) | (5,052 | ) | (37 | ) | — | (5,089 | ) | ||||||||||||||||||
Available-for-sale marketable securities, acquisitions | (6,868 | ) | — | — | (6,868 | ) | (6,203 | ) | — | — | (6,203 | ) | ||||||||||||||||||||
Trading marketable securities, acquisitions | (1,028 | ) | — | — | (1,028 | ) | (1,426 | ) | — | — | (1,426 | ) | ||||||||||||||||||||
Available-for-sale marketable securities, liquidations | 7,485 | — | — | 7,485 | 5,242 | — | — | 5,242 | ||||||||||||||||||||||||
Trading marketable securities, liquidations | 1,441 | — | — | 1,441 | 1,696 | — | — | 1,696 | ||||||||||||||||||||||||
Acquisition of companies/investments, net of cash acquired | (4 | ) | (924 | ) | — | (928 | ) | (5 | ) | (46 | ) | — | (51 | ) | ||||||||||||||||||
Proceeds from sale of business units/investments, net of cash disposed | — | — | — | — | — | |||||||||||||||||||||||||||
Increase in restricted cash and marketable securities | (148 | ) | (451 | ) | — | (599 | ) | (199 | ) | (473 | ) | — | (672 | ) | ||||||||||||||||||
Decrease in restricted cash and marketable securities | 95 | 215 | — | 310 | 82 | 286 | — | 368 | ||||||||||||||||||||||||
Purchases of finance receivables | — | (13,576 | ) | 475 | (13,101 | ) | — | (11,658 | ) | 834 | (10,824 | ) | ||||||||||||||||||||
Principal collections and recoveries on finance receivables | — | 8,718 | — | 8,718 | — | 8,124 | — | 8,124 | ||||||||||||||||||||||||
Purchases of leased vehicles, net | — | (11,036 | ) | — | (11,036 | ) | — | (3,169 | ) | — | (3,169 | ) | ||||||||||||||||||||
Proceeds from termination of leased vehicles | — | 662 | — | 662 | — | 395 | — | 395 | ||||||||||||||||||||||||
Other investing activities | 65 | 24 | 89 | 188 | (4 | ) | 184 | |||||||||||||||||||||||||
Net cash used in investing activities | (4,222 | ) | (16,432 | ) | 475 | (20,179 | ) | (5,677 | ) | (6,582 | ) | 834 | (11,425 | ) | ||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||
Net increase (decrease) in short-term debt | (52 | ) | 539 | — | 487 | (23 | ) | (913 | ) | — | (936 | ) | ||||||||||||||||||||
Proceeds from issuance of debt (original maturities greater than three months) | 162 | 24,654 | — | 24,816 | 598 | 21,250 | — | 21,848 | ||||||||||||||||||||||||
Payments on debt (original maturities greater than three months) | (225 | ) | (12,098 | ) | — | (12,323 | ) | (619 | ) | (14,907 | ) | — | (15,526 | ) | ||||||||||||||||||
Payments to purchase stock | (2,888 | ) | — | — | (2,888 | ) | (168 | ) | — | — | (168 | ) | ||||||||||||||||||||
Dividends paid | (1,678 | ) | — | — | (1,678 | ) | (1,781 | ) | — | — | (1,781 | ) | ||||||||||||||||||||
Other financing activities | 54 | (124 | ) | — | (70 | ) | 30 | (107 | ) | — | (77 | ) | ||||||||||||||||||||
Net cash provided by (used in) financing activities | (4,627 | ) | 12,971 | — | 8,344 | (1,963 | ) | 5,323 | — | 3,360 | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,001 | ) | (154 | ) | — | (1,155 | ) | (748 | ) | (42 | ) | — | (790 | ) | ||||||||||||||||||
Net transactions with Automotive/GM Financial | (59 | ) | 59 | — | — | (362 | ) | 362 | — | — | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (2,149 | ) | (1,372 | ) | — | (3,521 | ) | (2,404 | ) | 443 | — | (1,961 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 15,980 | 2,974 | — | 18,954 | 18,947 | 1,074 | — | 20,021 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 13,831 | $ | 1,602 | $ | — | $ | 15,433 | $ | 16,543 | $ | 1,517 | $ | — | $ | 18,060 | ||||||||||||||||
_____
(a) | Reclassification of purchases/collections of wholesale finance receivables resulting from vehicles sold by GM to dealers that have arranged their inventory floor plan financing through GM Financial. |
11