General Motors 2014 Annual Report Download

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2014 ANNUAL REPORT

Table of contents

  • Page 1
    2014 ANNUAL REPORT

  • Page 2
    With the all-new 2 0 1 5 C O LO R A D O , Chevrolet has reinvented the midsize pickup and earned recognition as Motor Trend's 2015 Truck of the Year.

  • Page 3
    ... and we've won competitions together." All around the world, we take pride in creating vehicles that fit people's lives ...that meet their needs ...that take them where they want to go. And it starts with putting customers at the center of it all, working hard to earn their loyalty. For life. 3

  • Page 4
    ...success of vehicles like the Trax, which is winning over customers in the fast-growing small SUV market in China and the United States. Or the Onix subcompact, which has the highest resale value in Brazil, according to an AutoInforme survey. In market after market, all around the world, Chevrolet is...

  • Page 5
    The all-new 2 0 1 5 C H E V R O L E T T R A X isn't just any small SUV. With an array of streetsmart features and technologies, it's a new breed of SUV designed especially for city life. 5

  • Page 6
    The 2 0 1 5 C A D I L L A C CT S - pictured here against the Shanghai skyline - is just one of the models leading Cadillac's rebirth as a true global luxury brand. 6

  • Page 7
    ..., and growing fast. Our assembly plant in China began producing its second model, the ATS-L, in 2014 and we expect a second China plant to come online in 2015. Meanwhile, Cadillac continues to launch exciting new models, like its new top-of-therange car, the 2016 Cadillac CT6. In addition to using...

  • Page 8
    ... the customer in mind in their zero-defect mentality and their passion to build the best vehicles we've ever offered. That's part of the spirit behind GM's resurgence in Europe, where our Opel/Vauxhall team is launching a major product offensive that aims to deliver 27 new models and 17 new engines...

  • Page 9
    At Opel/Vauxhall, the commitment and craftsmanship of employees like Gero and his team are taking hold. For the second year in a row, we've grown market share - actually increasing our share in more than 12 different markets. 9

  • Page 10
    The built-in 4G LTE connection in the 2 0 1 4 B U I C K E N C O R E offers drivers advances in a wide range of in-vehicle communications and entertainment capabilities. 10

  • Page 11
    ... It's all part of our vision of how the future of transportation will change our customers' lives. But some elements of that future are already here. We offer the most vehicles with 4G LTE connectivity by OnStar that turns your car into your most powerful and interactive mobile device. That includes...

  • Page 12
    ... work. GM, our employee team and the General Motors Foundation are on the front lines of our efforts to make those communities better - from our United Way partnership to providing scholarships and mentoring students, to building houses and refurbishing schools through our plant city grant program...

  • Page 13
    Children in Myanmar experience the power of play, courtesy of Chevrolet's One World Play Project. Photo: OWPP/Sonderman 13

  • Page 14
    General Motors Chief Executive Officer Mary T. Barra with the advancedtechnology luxury sedan, the all-new 2 0 1 6 C A D I L L A C C T 6 - fresh from its global debut at the 2015 New York Auto Show. 14

  • Page 15
    ... 1.2 million vehicles, including more than 900,000 in China. businesses find a way to perform, regardless of the challenges they face. Our performance wasn't perfect, but we delivered solid returns. As I reï¬,ect on this past year, I am most proud of the men and women of General Motors. Under dif...

  • Page 16
    ...as a leadership team in our purpose and direction. And we are putting concrete strategies and plans in place that will • Our China joint ventures delivered record sales, market share and earnings. • In North America, through the end of 2014 we delivered six consecutive quarters, year over year...

  • Page 17
    ... will work to make prudent investments for the future while delivering strong results in the short term. We will continue to expand our efforts to strengthen our brands and better serve the needs and desires of our customers. One great example of our ability to lead is the new Chevrolet Colorado and...

  • Page 18
    ... U.S. The new Silverado, Tahoe and Suburban had great sales momentum and they each gained market share. Chevrolet also had record sales in China, and it retained its market leadership in South America. With more than 70 million customers around the world, Chevrolet is one of the best positioned auto...

  • Page 19
    ... in China, Buick is a great example of how GM's global scale can be leveraged to produce value for stockholders. Buick is also a great example of the quality of our vehicles and the strength of our dealer network. Consumer rating organizations, such as J.D. Power and Associates and Consumer Reports...

  • Page 20
    ...growth strategy. As we expand our ability to offer customers financing and leasing, it is an important resource for fulfilling our ambition of earning lifetime relationships with customers. GM Financial currently operates in 19 countries that account for approximately 80 percent of GM's sales. Now...

  • Page 21
    ... the second quarter dividend on our common stock by 20 percent to 36 cents per share. And, in March we announced a capital allocation framework that provides for reinvestment in the business, maintains an investment grade balance sheet and anticipates the return of all available free cash ï¬,ow to...

  • Page 22
    ...27 28 29 59 Vehicle Sales and Net Revenue Board and Management Team Reconciliation of Non-GAAP Measures Market for Registrant's Common Equity and Related Stockholder Matters Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and...

  • Page 23
    ... Sales FINANCIAL RESULTS Worldwide Net Sales & Revenue Earnings Before Interest and Income Taxes - Adjusted* Net Income Attributable to Common Stockholders Diluted Earnings Per Common Share AUTOMOTIVE LIQUIDITY & KEY OBLIGATIONS AVAILABLE AUTOMOTIVE LIQUIDITY Cash and Marketable Securities Credit...

  • Page 24
    ...: Above: The General Motors Board of Directors enjoyed a preview of the CHEVROLET BOLT EV CONCEPT CAR, as it debuted at the 2015 North American International Auto Show in Detroit. Based on an equally enthusiastic response from consumers, GM has committed to build a production version at its Orion...

  • Page 25
    ...Product Development, Purchasing & Supply Chain ALAN BATEY Executive Vice President & President, North America STEFAN JACOBY Executive Vice President & President, GM International BOB SHROSBREE Acting Secretary DAN BERCE Senior Vice President & President and Chief Executive Officer, GM Financial...

  • Page 26
    ... in Corporate. (b) GM Financial amounts represent income before income taxes. In the year ended December 31, 2013, adjustments to automotive free cash ï¬,ow included the following: • Accrued interest on the prepayment of the Health Care Trust notes of $154 million; • Pension contributions...

  • Page 27
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Market Information Shares of our common stock have been publicly traded since November 18, 2010 when our common stock was listed and began trading on the New York Stock Exchange and the Toronto Stock Exchange. The following table summarizes the quarterly ...

  • Page 28
    ... participating security. Refer to Note 22 to our consolidated financial statements for additional detail. (d) General Motors Financial Company, Inc. (GM Financial) acquired Ally Financial Inc.'s (Ally Financial) international operations in Europe and Latin America in the year ended December 31, 2013...

  • Page 29
    ...measure adjusted free cash flow as cash flow from operations less capital expenditures adjusted for management actions, primarily related to strengthening our balance sheet, such as accrued interest on prepayments of debt and voluntary contributions to employee benefit plans. Refer to the "Liquidity...

  • Page 30
    ... our emerging market product portfolio, improvements in brand strategy and dealer networks, cost structure and sourcing over the medium term; Continued strong net income margins at our China JVs, with plans to invest approximately $14 billion in China through 2018 and increase vehicle sales volumes...

  • Page 31
    ... financial statements) and to fix ignition lock cylinders that could allow removal of the ignition key while the engine is running, leading to possible rollaway or crash; (2) approximately 1.9 million vehicles to replace either the power steering motor, the steering column, the power steering motor...

  • Page 32
    GENERAL MOTORS COMPANY AND SUBSIDIARIES parts and labor to repair these vehicles and for courtesy transportation. The cost of the vehicles recalled in the six months ended December 31, 2014 were comprehended in the June 30, 2014 catch-up adjustment of $0.9 billion associated with a change in ...

  • Page 33
    ... market share coupled with new vehicle launches and a full year of the 2014 launches. GMSA In the three months ended March 31, 2014 we recorded devaluation charges of $0.4 billion related to a change in the exchange rate we use for remeasuring our Venezuelan subsidiaries' non-U.S. Dollar denominated...

  • Page 34
    ... sales allowances. Other includes primarily: (1) material and freight; (2) costs including manufacturing, engineering, advertising, administrative and selling and policy and warranty expense; (3) foreign exchange; and (4) non-vehicle related automotive revenues and costs as well as equity income...

  • Page 35
    ... MOTORS COMPANY AND SUBSIDIARIES Total Net Sales and Revenue Years Ended December 31, Favorable/ 2013 (Unfavorable) (Dollars in millions) Variance Due To % Volume Mix Price (Dollars in billions) Other 2014 GMNA ...GME ...GMIO ...GMSA ...Corporate and eliminations ...Automotive ...GM Financial...

  • Page 36
    ... related to parts and accessories sales; and (8) net increased manufacturing expenses of $0.1 billion due primarily to new launch costs offset by reduced depreciation and amortization. Automotive Selling, General and Administrative Expense Years Ended December 31, 2014 2013 2012 Year Ended 2014 vs...

  • Page 37
    ... asset valuation allowance reversal of $36.3 billion in the U.S. and Canada that occurred in 2012. Refer to Note 18 to our consolidated financial statements for additional information related to our income tax expense (benefit). GM North America Years Ended December 31, 2014 Year Ended 2014 vs. 2013...

  • Page 38
    ... years 2008-2010 Pontiac G5, model years 2006-2010 Solstice, model years 2003-2007 Saturn ION and model years 2007-2010 Sky, were not included in the initial recall. In the three months ended March 31, 2014 we recorded approximately $90 million in Automotive cost of sales to repair these vehicles...

  • Page 39
    ... and GMC Acadia, model years 2009-2013 Chevrolet Traverse and model years 2008-2010 Saturn Outlook. We recorded approximately $185 million in Automotive cost of sales to repair these vehicles. In the three months ended June 30, 2014 approximately 2.7 million vehicles were recalled to modify the...

  • Page 40
    ... steering assist - model years 2011-2014 Chevrolet Cruze. Approximately 0.7 million vehicles were recalled to repair ignition mechanisms where the ignition key could be pulled out while the vehicle is in the run position - model years 2004-2007 Saturn Vue, model years 2005-2006 Chevrolet Equinox...

  • Page 41
    ... by Congress, the Securities and Exchange Commission (SEC) and various state attorneys general. In addition the Ignition Switch Recall and the other recalls described above have resulted in a number of claims and lawsuits. Refer to Note 17 to our consolidated financial statements for additional...

  • Page 42
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Europe GME Total Net Sales and Revenue and EBIT (Loss)-Adjusted Years Ended December 31, 2014 2013 (Dollars in millions) Year Ended 2014 vs. 2013 Change Favorable/ (Unfavorable) % Variance Due To Volume Mix Price (Dollars in billions) Other Total net ...

  • Page 43
    ...certain key operational and financial data for the China JVs (dollars in millions, vehicles in thousands): Years Ended December 31, 2014 2013 2012 Total wholesale vehicles (a) ...Market share ...Total net sales and revenue ...Net income ...(a) Including vehicles exported to markets outside of China...

  • Page 44
    ... The vehicle sales of our China JVs and of GM India prior to September 1, 2012, the date we consolidated GM India, are not recorded in Total net sales and revenue. The results of our nonconsolidated joint ventures are recorded in Equity income. In the year ended December 31, 2014 Total net sales and...

  • Page 45
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GM South America Venezuelan Operations Our Venezuelan subsidiaries' functional currency is the U.S. Dollar because of the hyperinflationary status of the Venezuelan economy. Effective February 13, 2013 the Venezuelan government set the official fixed exchange...

  • Page 46
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GMSA Total Net Sales and Revenue and EBIT (Loss)-Adjusted Years Ended December 31, 2014 2013 (Dollars in millions) Year Ended 2014 vs. 2013 Change Favorable/ (Unfavorable) % Variance Due To Volume Mix Price (Dollars in billions) Other Total net sales and ...

  • Page 47
    ... 31, 2014 2013 2012 Year Ended 2014 vs. 2013 Change Amount % (Dollars in millions) Year Ended 2013 vs. 2012 Change Amount % Total revenue ...$ Provision for loan losses ...$ Income before income taxes-adjusted ...$ Average debt outstanding ...Effective rate of interest paid ...GM Financial Revenue...

  • Page 48
    ... shares of our Series A Preferred Stock for a total price of $3.9 billion which was equal to their aggregate liquidation amount, including accumulated dividends. The redemption reduced Net income attributable to common stockholders by $0.8 billion. In the year ended December 31, 2014 GM Financial...

  • Page 49
    ... available liquidity (dollars in billions): Year Ended 2014 vs. 2013 Change Operating cash flow ...Capital expenditures ...Issuance of senior unsecured notes ...Redemption of Series A Preferred Stock ...Dividends paid (excluding charge related to redemption of Series A Preferred Stock) ...Increase...

  • Page 50
    ...Years Ended December 31, 2014 2013 2012 Year Ended 2014 vs. 2013 Change Year Ended 2013 vs. 2012 Change Investing Activities Capital expenditures ...Liquidations (acquisitions) of marketable securities, net ...Sale of our investment in Ally Financial ...Other ...Automotive cash flows from investing...

  • Page 51
    ... 31, 2014 2013 2012 Financing Activities Issuance of senior unsecured notes ...Prepayment of Canadian Health Care Trust (HCT) notes (principal) ...Early redemption of GM Korea preferred stock ...Redemption and purchase of Series A Preferred Stock ...Purchase of Common Stock ...Dividends paid...

  • Page 52
    ... income, servicing fees, net distributions from secured debt, secured and unsecured debt borrowings and collections and recoveries on finance receivables. GM Financial's primary uses of cash are purchases of finance receivables and leased vehicles, funding of commercial finance receivables, business...

  • Page 53
    ... outstanding of $7.0 billion and $0.8 billion. Cash Flow The following table summarizes GM Financial cash flows from operating, investing and financing activities (dollars in billions): Years Ended December 31, 2014 2013 2012 Year Ended 2014 vs. 2013 Change Year Ended 2013 vs. 2012 Change Net cash...

  • Page 54
    GENERAL MOTORS COMPANY AND SUBSIDIARIES Financing Activities In the year ended December 31, 2014 net cash provided by financing activities increased due primarily to: (1) increased borrowings under secured and unsecured debt of $5.6 billion; and (2) repayment of debt to Ally Financial of $1.4 ...

  • Page 55
    ...our consolidated financial statements for our significant accounting policies related to our critical accounting estimates. Pensions Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected long-term rate of...

  • Page 56
    ... specific funding requirements. Refer to Note 15 to our consolidated financial statements for additional information on pension contributions, investment strategies and long-term rate of return, weighted-average discount rate, the change in benefit obligation and related plan assets and future net...

  • Page 57
    ... at the time of vehicle sale are estimated based on the per unit part and labor cost, number of units impacted and the take rate. Depending on part availability and time to complete repairs we may, from time-to-time, offer courtesy transportation at no cost to our customers. These estimates are re...

  • Page 58
    ... other finance companies in markets in which we operate to support our ability to sell vehicles, which is dependent on those entities' ability to obtain funding and their continued willingness to provide financing; Our continued ability to develop captive financing capability, including GM Financial...

  • Page 59
    ... Directors. The Audit Committee and Finance Committee assist and guide the Board of Directors in its oversight of our financial and risk management strategies. A risk management control framework is utilized to monitor the strategies, risks and related hedge positions in accordance with the policies...

  • Page 60
    ... earned on finance receivables; and (2) interest paid on debt, and could be affected by changes in interest rates. Typically consumer finance receivables purchased by GM Financial bear fixed interest rates and are funded by variable or fixed rate debt. Commercial finance receivables originated by GM...

  • Page 61
    ... (dollars in millions): 2015 2016 2017 2018 2019 Thereafter Fair Value Assets Consumer finance receivables Principal amounts ...Weighted-average annual percentage rate ...Commercial finance receivables Principal amounts ...Weighted-average annual percentage rate ...Liabilities Secured Debt: Credit...

  • Page 62
    ... based on maturity. Foreign Currency Exchange Rate Risk GM Financial is exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations, primarily those acquired from Ally Financial in 2013, into U.S. Dollars as part of the consolidation...

  • Page 63
    GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the amounts of GM Financial's foreign currency translation and transaction and remeasurement losses (dollars in millions): Years Ended December 31, 2014 2013 Foreign currency translation gains (losses) recorded in Accumulated ...

  • Page 64
    ...the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2014 of the Company and our report dated February 4, 2015 expressed an unqualified opinion on those financial statements. Detroit, Michigan...

  • Page 65
    ... Consolidated Balance Sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2014 and 2013, and the related Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for each of the three years in the period ended December 31, 2014. These financial...

  • Page 66
    ... Data GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (In millions, except per share amounts) 2014 Years Ended December 31, 2013 2012 Net sales and revenue Automotive ...GM Financial ...Total ...Costs and expenses Automotive cost of sales (Note 13) ...GM Financial operating...

  • Page 67
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years Ended December 31, 2014 2013 2012 Net income ...Other comprehensive income (loss), net of tax (Note 21) Foreign currency translation adjustments ...Cash flow hedging losses, net ...Unrealized...

  • Page 68
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) December 31, 2014 December 31, 2013 ASSETS Current Assets Cash and cash equivalents ...Marketable securities (Note 4) ...Restricted cash and marketable securities (Note 4) ...Accounts and ...

  • Page 69
    ... on debt (original maturities greater than three months) ...Payments to purchase stock ...Dividends paid (including charge related to redemption and purchase of Series A Preferred Stock) ...Other financing activities ...Net cash provided by (used in) financing activities ...Effect of exchange rate...

  • Page 70
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (In millions) Common Stockholders' Accumulated Series A Series B Additional Other Preferred Preferred Common Paid-in Retained Comprehensive Noncontrolling Stock Stock Stock Capital Earnings Loss Interests Balance January 1, ...

  • Page 71
    ...NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Nature of Operations and Basis of Presentation General Motors Company was incorporated as a Delaware corporation in 2009. We design, build and sell cars, trucks and automobile parts worldwide. We also provide automotive financing services through GM...

  • Page 72
    ... incentive payments) received and direct costs of originating loans are deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are sold, charged off or paid...

  • Page 73
    ... billion in the years ended December, 31 2014, 2013 and 2012. Cash Equivalents Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. Allowance for Doubtful Accounts We record an allowance for doubtful accounts based on our best estimate...

  • Page 74
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) unrealized gains and losses recorded net of related income taxes in Accumulated other comprehensive loss until realized. Trading securities are recorded at fair value with changes in fair value recorded ...

  • Page 75
    ... of vehicles, product warranty costs and the effect of current and expected incentive offers at the balance sheet date. Market for off-lease and other vehicles is current auction sales proceeds less disposal and warranty costs. Productive material, work in process, supplies and service parts are...

  • Page 76
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Valuation of Cost and Equity Method Investments When events and circumstances warrant, investments accounted for under the cost or equity method of accounting are evaluated for impairment. An impairment ...

  • Page 77
    ... in Automotive cost of sales. Amortization of brand names, customer relationships and our dealer networks is recorded in Automotive selling, general and administrative expense or GM Financial operating and other expenses. Valuation of Long-Lived Assets The carrying amount of long-lived assets and...

  • Page 78
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Cash Equivalents and Other Short-Term Investments Money market funds and other similar short-term investment funds are valued using the net asset value per share (NAV). Prices for short-term debt ...

  • Page 79
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) adjustment at the balance sheet date. In determining whether an adjustment to the external valuation is required, we will review material factors that could affect the valuation, such as changes to the ...

  • Page 80
    ... ASU 2014-09 will have on our consolidated financial statements. Note 3. Acquisition of Businesses Acquisition of Certain Ally Financial International Operations In November 2012 GM Financial entered into a definitive agreement with Ally Financial to acquire 100% of the outstanding equity interests...

  • Page 81
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) In the year ended December 31, 2013 GM Financial completed acquisitions of Ally Financial's European and Latin American automotive finance operations for an aggregate consideration of $3.3 billion. GM ...

  • Page 82
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 4. Marketable Securities The following table summarizes information regarding marketable securities (dollars in millions): Fair Value Level December 31, 2014 Cost Fair Value December 31, 2013 Cost ...

  • Page 83
    .... Note 5. GM Financial Receivables, net The following table summarizes the components of consumer and commercial finance receivables, net (dollars in millions): Consumer December 31, 2014 Commercial Total Consumer December 31, 2013 Commercial Total Pre-acquisition finance receivables, outstanding...

  • Page 84
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes activity for the allowance for loan losses on consumer and commercial finance receivables (dollars in millions): Years Ended December 31, 2014 2013 2012 Balance at ...

  • Page 85
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Impaired Finance Receivables - TDRs The following table summarizes the outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance (dollars ...

  • Page 86
    ... and Canada that are recorded as operating leases. A Canadian subsidiary of GM Financial originates and sells leases to a third-party with servicing retained. The following table summarizes GM Financial equipment on operating leases, net (dollars in millions): December 31, 2014 December 31, 2013 GM...

  • Page 87
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Sales and income of our China JVs are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as Equity income. The following ...

  • Page 88
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) At December 31, 2014 and 2013 the carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $3.9 billion and $3.8 billion primarily related to ...

  • Page 89
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 9. Property, net The following table summarizes the components of Property, net (dollars in millions): Estimated Useful Lives in Years December 31, 2014 December 31, 2013 Land ...Buildings and ...

  • Page 90
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) As a result of our plans to cease manufacturing and significantly reduce engineering at our GM Holden Ltd. (Holden) subsidiary in Australia by the end of 2017 we recorded asset impairment charges of $477...

  • Page 91
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The personal property in our Holden asset group was determined to have a nominal fair value because of anticipated losses during the wind-down period and limited to no salvage value given the ...

  • Page 92
    ... in Europe are included in our GM Korea operations. We also recorded a Goodwill impairment charge in the three months ended December 31, 2013 associated with our GM India reporting unit resulting from lower forecasted profitability in India due to lower than expected sales performance of our current...

  • Page 93
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes the amortization expense and impairment charges related to Intangible assets, net (dollars in millions): Years Ended December 31, 2014 2013 2012 Amortization expense ......

  • Page 94
    ... balance sheets. The following table summarizes the assets and liabilities related to GM Financial's consolidated VIEs prior to intercompany eliminations (dollars in millions): December 31, 2014 December 31, 2013 Restricted cash ...Securitized Assets ...Securitization notes payable and other credit...

  • Page 95
    ...(dollars in millions): December 31, 2014 December 31, 2013 Current Dealer and customer allowances, claims and discounts ...Deposits primarily from rental car companies ...Deferred revenue ...Product warranty and related liabilities ...Payrolls and employee benefits excluding postemployment benefits...

  • Page 96
    ...-term and long-term debt (dollars in millions): December 31, 2014 December 31, 2013 Secured debt ...Unsecured debt ...Capital leases ...Total automotive debt (a) ...Fair value of automotive debt ...Available under credit facility agreements ...Interest rate range on outstanding debt (b) ...Weighted...

  • Page 97
    ... of $1.8 billion and recorded a net loss on extinguishment of debt of $212 million which primarily represented the unamortized debt discount on GM Korea mandatorily redeemable preferred shares. In the year ended December 31, 2012 we prepaid and retired debt obligations with a total carrying amount...

  • Page 98
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Automotive Financing - GM Financial The following table summarizes the carrying amount and fair value of debt (dollars in millions): December 31, 2014 Carrying Fair Amount Value December 31, 2013 ...

  • Page 99
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The terms of advances on revolving credit facilities and other unsecured debt have remaining maturities of up to five years. Interest rates on credit facilities and other unsecured debt ranged from 0.98%...

  • Page 100
    ... COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 15. Pensions and Other Postretirement Benefits Employee Pension and Other Postretirement Benefit Plans Defined Benefit Pension Plans Defined benefit pension plans covering eligible U.S. hourly employees (hired...

  • Page 101
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Significant Plan Amendments, Benefit Modifications and Related Events U.S. Salaried Defined Benefit Life Insurance Plan In September 2013 we amended the U.S. salaried life insurance plan effective ...

  • Page 102
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Pension and OPEB Obligations and Plan Assets The following table summarizes the change in benefit obligations and related plan assets (dollars in millions): Year Ended December 31, 2014 Pension Benefits ...

  • Page 103
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes the total accumulated benefit obligations (ABO), the fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the projected ...

  • Page 104
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2015 based on December 31, 2014 plan measurements are $295 ...

  • Page 105
    ... defined benefit pension plan assets by asset class (dollars in millions): Level 1 December 31, 2014 Level 2 Level 3 Total Level 1 December 31, 2013 Level 2 Level 3 Total Assets Cash equivalents and other short-term investments ...Common and preferred stocks ...Government and agency debt securities...

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    ...) Purchases, Sales and Settlements, Net Transfers Into/ Out of Level 3 Balance at December 31, 2013 Change in Unrealized Gains/(Losses) Attributable to Assets Held at December 31, 2013 Common and preferred stocks ...$ Corporate and other debt securities ...Investment funds ...Private equity and...

  • Page 107
    ... long-term equity investments in private companies, including leveraged buy-outs, venture capital and distressed debt strategies. Real estate investments include funds that invest in entities which are principally engaged in the ownership, acquisition, development, financing, sale and/or management...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Significant Concentrations of Risk The assets of the pension plans include certain private investment funds, private equity and debt securities, real estate investments and derivative instruments. ...

  • Page 109
    ... SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Benefit Payments The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to estimated future employee service (dollars in millions): Pension Benefits (a) U.S. Plans...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Liability Recorded December 31, 2014 December 31, 2013 Other litigation-related liability and tax administrative matters ...Product liability ...Ignition switch recall compensation program ...Credit ...

  • Page 111
    ... and Saturn ION and Sky vehicles. Since those recalls, we have announced a number of additional recalls in the year ended December 31, 2014 relating to safety, customer satisfaction and other matters. Through January 30, 2015 we are aware of 108 putative class actions that are pending against GM in...

  • Page 112
    ...action was filed in the United States District Court for the Eastern District of Michigan against GM and various current and former officers or employees of GM (Pio v. General Motors Company et al.) on behalf of purchasers of GM securities from November 17, 2010 through March 10, 2014. The complaint...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) agreements with GMCL. In May 2009 in the context of the global restructuring of the business and the possibility that GMCL might be required to initiate insolvency proceedings, GMCL offered the Plaintiff...

  • Page 114
    ... securities class action was filed against us and a number of our past and current officers and directors in the United States District Court for the Southern District of New York (George G. Scott v. General Motors Company et al). Purporting to sue on behalf of owners of common stock deriving...

  • Page 115
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) established a protocol that defines the eligibility requirements to participate in the Program. There is no cap on the amount of payments that can be made to claimants under the Program. At December 31, ...

  • Page 116
    ... 2014 is adequate to cover the estimated costs of the recalled vehicles. Noncancelable Operating Leases The following table summarizes our minimum commitments under noncancelable operating leases having initial terms in excess of one year, primarily for property (dollars in millions): 2015 2016 2017...

  • Page 117
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income Tax Expense (Benefit) The following table summarizes Income tax expense (benefit) (dollars in millions): Years Ended December 31, 2014 2013 2012 Current income tax expense (benefit) U.S. federal ...

  • Page 118
    ... (dollars in millions): December 31, 2014 December 31, 2013 Deferred tax assets Postretirement benefits other than pensions ...Pension and other employee benefit plans ...Warranties, dealer and customer allowances, claims and discounts ...Property, plants and equipment ...Capitalized research...

  • Page 119
    ... taxable income in Germany. General Motors Corporation was liquidated on December 15, 2011. The Internal Revenue Service has audited the returns through the liquidation date and, in January 2014, the audit of these returns was closed. The reduction to the amount of unrecognized tax benefits was...

  • Page 120
    ..., 2014 had a total cost of $169 million. Year Ended December 31, 2013 Restructuring and other initiatives primarily related to: (1) cash severance incentive programs for skilled trade U.S. hourly employees and service cost for hourly layoff benefits at GMNA; (2) our plan to terminate all vehicle and...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Year Ended December 31, 2012 Restructuring and other initiatives primarily related to: (1) our 2011 UAW labor agreement, which included cash severance incentive programs that were completed at March 31, ...

  • Page 122
    ...each share of Series B Preferred Stock was determined based on the average of the closing prices of our common stock over the 40 consecutive trading day period ended November 26, 2013. Common Stock Holders of our common stock are entitled to dividends at the sole discretion of our Board of Directors...

  • Page 123
    ...MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) price between a direct reduction to stockholders' equity of $5.1 billion and a charge to Automotive selling, general and administrative expense of $402 million representing the premium. These shares were retired...

  • Page 124
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Accumulated Other Comprehensive Loss The following table summarizes the components of Accumulated other comprehensive loss (dollars in millions): Years Ended December 31, 2014 2013 2012 Foreign Currency...

  • Page 125
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 22. Earnings Per Share Basic and diluted earnings per share are computed by dividing Net income attributable to common stockholders by the weightedaverage common shares outstanding in the period. ...

  • Page 126
    ... Committee of our Board of Directors. The aggregate number of shares with respect to which awards may be granted under the 2014 Long-Term Incentive Plan shall not exceed 60 million. In January 2014 we amended the 2009 Long-Term Incentive Plan and the Salary Stock Plan to provide cash payment...

  • Page 127
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) RSUs and PSUs The following table summarizes information about the RSUs and PSUs under our stock incentive plans (units in millions): WeightedAverage Grant Date Fair Value WeightedAverage Remaining ...

  • Page 128
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The three months ended December 31, 2014 included the following on a pre-tax basis: • • Gain on extinguishment of debt of $207 million related to unsecured debt in Brazil in GMSA. Asset impairment ...

  • Page 129
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 25. Segment Reporting We analyze the results of our business through the following segments: GMNA, GME, GMIO, GMSA and GM Financial. The chief operating decision maker evaluates the operating ...

  • Page 130
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following tables summarize key financial information by segment (dollars in millions): At and For the Year Ended December 31, 2014 Total GM GMSA Corporate Eliminations Automotive Financial ...

  • Page 131
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) At and For the Year Ended December 31, 2013 Total GM GMSA Corporate Eliminations Automotive Financial Eliminations GMNA GME GMIO Total Sales External customers ...$ GM Financial revenue ......

  • Page 132
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) At and For the Year Ended December 31, 2012 Total GM GMSA Corporate Eliminations Automotive Financial Eliminations GMNA GME GMIO Total Sales External customers ...$ 89,912 $ GM Financial revenue ...

  • Page 133
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) No individual country other than the U.S. represented more than 10% of our total Net sales and revenue or Long-lived assets. Note 26. Supplemental Information for the Consolidated Statements of Cash ...

  • Page 134
    ... LLP, an independent registered public accounting firm, as stated in its report which is included herein. Changes in Internal Controls We have commenced several transformation initiatives to centralize and simplify our business processes and systems. These are long-term initiatives which we believe...

  • Page 135
    ... Printed copies may be requested on our website or from GM Stockholder Services at the address listed above (allow four to six weeks for delivery of materials). VISIT GM ON THE INTERNET Learn more about General Motors vehicles and services on our website at www.gm.com. GM CUSTOMER ASSISTANCE CENTERS...

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    3 0 0 R E N A I S S A N C E C E N T E R P. O . B O X 3 0 0 DETROIT, MI 48265-3000 WWW.GM.COM