EX-99.1 2 gm2012q3earningspressrelea.htm PRESS RELEASE AND FINANCIAL HIGHLIGHTS GM 2012 Q3 Earnings Press Release and Highlights



Exhibit 99.1
For Release: Wednesday, Oct. 31, 7:30 a.m. EDT

GM Reports Third Quarter Net Income of $1.5 billion
as EBIT-adjusted increases to $2.3 billion

DETROIT - General Motors Co. (NYSE: GM) today announced third quarter net income attributable to common stockholders of $1.5 billion, or $0.89 per fully diluted share including the impact of special items, which reduced net income by $0.1 billion and diluted earnings per share by $0.04. In the third quarter a year ago, GM's net income attributable to common stockholders was $1.7 billion, or $1.03 per fully diluted share.

Net revenue in the third quarter of 2012 was $37.6 billion compared with $36.7 billion a year ago. Earnings before interest and tax (EBIT) adjusted was $2.3 billion compared with $2.2 billion a year ago.
“GM had a solid quarter because customers around the world love our new vehicles and we're also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe,” said Chairman and CEO Dan Akerson. “We are going to keep playing offense with growth products like the Chevrolet Onix, Opel Mokka and Cadillac ATS and continue to systematically address business risks.”

Senior Vice President and CFO Dan Ammann added, “While we still have a lot of work to do, especially in Europe, it is encouraging to see our results begin to reflect the discipline we are bringing to bear on the overall business.”
GM Results Overview (in billions except for per share amounts)
 
Q3 2012

Q3 2011

Revenue
$
37.6

$
36.7

Net income attributable to common stockholders
$
1.5

$
1.7

Earnings per share (EPS) fully diluted
$
0.89

$
1.03

Impact of special items on EPS fully diluted
$
0.04

—

EBIT-adjusted
$
2.3

$
2.2

Automotive net cash flow from operating activities
$
3.1

$
1.8

Automotive free cash flow
$
1.2

$
0.3


Third Quarter Segment Results
•
GM North America (GMNA) reported EBIT-adjusted of $1.8 billion compared with $2.2 billion a year ago.
•
GM Europe (GME) reported an EBIT-adjusted of $(0.5) billion compared with $(0.3) billion a year ago.
•
GM International Operations (GMIO) reported EBIT-adjusted of $0.7 billion compared with $0.4 billion a year ago.
•
GM South America (GMSA) reported EBIT-adjusted of $0.1 billion compared with near breakeven results a year ago.
•
GM Financial earnings before tax was $0.2 billion, up slightly compared with a year ago.

1



Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities was $3.1 billion, up $1.3 billion from a year ago, and automotive free cash flow was $1.2 billion, up $0.9 billion. GM ended the quarter with very strong total automotive liquidity of $37.5 billion. Automotive cash and marketable securities was $31.6 billion.

Pension De-Risking Transactions
During the quarter, approximately 30 percent of eligible U.S. salaried retirees accepted GM's offer to receive a lump sum payment in lieu of ongoing pension benefits. In addition, GM expects to close in early November a previously announced transaction through which The Prudential Insurance Company of America will assume responsibility for pension obligations covering GM's remaining eligible U.S. salaried retirees.
Through annuitizations and lump sum payments, approximately $29 billion of GM's U.S. salaried pension liability is expected to be eliminated compared with an original estimate of $26 billion.
In connection with these transactions, GM expects to make total cash contributions to its U.S. salaried pension plan of approximately $2.6 billion. In addition, GM will record an approximately $2.9 billion pre-tax charge in the fourth quarter as a special item. GM originally estimated that it would make a cash contribution of $3.5 billion to $4.5 billion and record a charge of $2.5 billion to $3.5 billion.
Fourth Quarter Outlook
GM's consolidated fourth quarter EBIT-adjusted will follow typical seasonal trends with results estimated to be similar to or slightly better than the same period a year ago.

GM also indicated that to the extent positive financial trends continue the reversal of a significant portion of its valuation allowance on U.S. and Canadian deferred tax assets is possible in the fourth quarter of 2012. At Sept. 30, 2012, valuation allowances on deferred tax assets in the United States and Canada were $35.6 billion and $3.2 billion. In addition, valuation allowance reversals could result in goodwill impairment.

Europe Outlook
GM currently estimates GME's EBIT-adjusted for the 2012 calendar year to be in a range of $(1.5) billion to $(1.8) billion, depending on the level of restructuring activity in the fourth quarter. In addition, the company is targeting full-year 2013 EBIT-adjusted for GME to be slightly better than 2012. Break-even EBIT-adjusted results are targeted by mid-decade.


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's brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. 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.

Contacts:
Jim Cain
Cell 313-407-2843
james.cain@gm.com


Randy Arickx
Cell 313-268-7070
randy.c.arickx@gm.com

2



Forward-Looking Statements
In this press release and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned” 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 might 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; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, 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; the overall strength and stability of our markets, particularly Europe; and our ability to continue to attract new customers, particularly for our new products. GM's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provides information about these and other factors, which we may revise or supplement in future reports to the SEC.


3


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), and Automotive 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 and Automotive free cash flow are considered non-GAAP financial measures.

Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM's operating results because they exclude amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions. Accordingly, GM believes these non-GAAP financial measures are useful in allowing for greater transparency of GM's core operations and they are therefore used by management in its financial and operational decision-making.

While management believes that these non-GAAP financial measures provide useful information, they are not operating measures under U.S. GAAP, and there are limitations associated with their use. GM's calculation of these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences between companies in their method of calculation. As a result the use of these non-GAAP financial measures has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net income or Net income attributable to stockholders. Due to these limitations, these non-GAAP financial measures are used as a supplement to U.S. GAAP measures.

The following table summarizes the reconciliation of EBIT-adjusted to its most comparable U.S. GAAP measure (dollars in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Operating segments
 
 
 
 
 
 
 
GMNA(a)
$
1,822

 
$
2,195

 
$
5,478

 
$
5,697

GME(a)
(478
)
 
(292
)
 
(1,095
)
 
(185
)
GMIO(a)
689

 
365

 
1,775

 
1,524

GMSA(a)
114

 
(44
)
 
178

 
103

GM Financial(b)
200

 
178

 
598

 
452

Total operating segments(b)
2,347

 
2,402

 
6,934

 
7,591

Corporate and eliminations
(51
)
 
(199
)
 
(337
)
 
(384
)
EBIT-adjusted(b)
2,296

 
2,203

 
6,597

 
7,207

Special items
(62
)
 
—

 
(674
)
 
1,483

Corporate interest income
84

 
112

 
259

 
363

Automotive interest expense
128

 
101

 
356

 
405

Loss on extinguishment of debt
—

 
 
 
18

 
 
Income tax expense
357

 
107

 
814

 
183

Net income attributable to stockholders
$
1,833

 
$
2,107

 
$
4,994

 
$
8,465

__________
(a)
GM's automotive operations interest and income taxes are recorded centrally in Corporate; therefore, there are no reconciling items for GM's automotive operating segments between EBIT-adjusted and Net income attributable to stockholders.
(b)
GM Financial amounts represent income before income taxes.

1


General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)

The following summarizes the special items:

In the three months ended September 30, 2012 special items included Goodwill impairment charges of $62 million in GMIO, which is presented net of noncontrolling interests.

In the nine months ended September 30, 2012 special items included Goodwill impairment charges of $590 million in GME and $84 million in GMIO, which is presented net of noncontrolling interests.

In the nine months ended September 30, 2011 special items included the following:

•
Gain of $1.6 billion in GMNA related to the sale of GM's Class A Membership Interests in Delphi Automotive LLP;
•
Gain of $339 million in Corporate related to the sale of 100% of the Ally Financial, Inc. preferred stock;
•
Goodwill impairment charges of $395 million in GME; and
•
Charges of $106 million in GMIO related to GM's India joint venture.


The following table summarizes the reconciliation of Automotive free cash flow to Automotive net cash provided by operating activities (dollars in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Automotive free cash flow
$
1,172

 
$
258

 
$
3,152

 
$
2,129

Capital expenditures
1,941

 
1,571

 
5,993

 
4,065

Automotive net cash provided by operating activities
$
3,113

 
$
1,829

 
$
9,145

 
$
6,194



2


General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)

 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total
Automotive
 
GM
Financial
 
Eliminations
 
Total
Three Months Ended
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net sales and revenue
$
23,344

 
$
5,063

 
$
6,745

 
$
4,341

 
$
16

 
$
(2,447
)
 
$
37,062

 
$
514

 
$
—

 
$
37,576

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
941

 
$
253

 
$
163

 
$
117

 
$
11

 
$
—

 
$
1,485

 
$
59

 
$
(3
)
 
$
1,541

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity income, net of tax and gain on investments
$
3

 
$
—

 
$
414

 
$
1

 
$
—

 
$
—

 
$
418

 
$
—

 
$
—

 
$
418

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total
Automotive
 
GM
Financial
 
Eliminations
 
Total
Three Months Ended
September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net sales and revenue(a)
$
21,884

 
$
6,151

 
$
6,116

 
$
4,418

 
$
20

 
$
(2,261
)
 
$
36,328

 
$
391

 
$
—

 
$
36,719

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
882

 
$
329

 
$
115

 
$
110

 
$
11

 
$
—

 
$
1,447

 
$
24

 
$
—

 
$
1,471

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity income, net of tax and gain on investments
$
1

 
$
—

 
$
376

 
$
—

 
$
—

 
$
—

 
$
377

 
$
—

 
$
—

 
$
377

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total
Automotive
 
GM
Financial
 
Eliminations
 
Total
Nine Months Ended
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net sales and revenue
$
70,420

 
$
16,470

 
$
19,750

 
$
12,459

 
$
41

 
$
(7,624
)
 
$
111,516

 
$
1,432

 
$
1

 
$
112,949

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
2,723

 
$
828

 
$
441

 
$
352

 
$
37

 
$
(1
)
 
$
4,380

 
$
156

 
$
(7
)
 
$
4,529

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity income, net of tax and gain on investments
$
7

 
$
—

 
$
1,133

 
$
1

 
$
—

 
$
—

 
$
1,141

 
$
—

 
$
—

 
$
1,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMNA
 
GME
 
GMIO
 
GMSA
 
Corporate
 
Eliminations
 
Total
Automotive
 
GM
Financial
 
Eliminations
 
Total
Nine Months Ended
September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net sales and revenue(a)
$
67,122

 
$
20,480

 
$
17,726

 
$
12,677

 
$
50

 
$
(6,785
)
 
$
111,270

 
$
1,016

 
$
—

 
$
112,286

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets
$
2,849

 
$
1,043

 
$
354

 
$
341

 
$
37

 
$
—

 
$
4,624

 
$
57

 
$
—

 
$
4,681

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity income, net of tax and gain on investments
$
1,733

 
$
—

 
$
1,170

 
$
—

 
$
—

 
$
—

 
$
2,903

 
$
—

 
$
—

 
$
2,903

__________
(a)
Presentation of intersegment sales has been adjusted to conform to the current presentation.


3



General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)

 
 
September 30, 2012
 
December 31, 2011
Worldwide Employment (thousands)
 
 
 
 
GMNA
 
101

 
98

GME
 
38

 
39

GMIO(a)
 
39

 
34

GMSA
 
31

 
33

GM Financial
 
4

 
3

Total Worldwide
 
213

 
207

 
 
 
 
 
U.S. - Salaried
 
30

 
29

U.S. - Hourly
 
50

 
48

______
(a)
Increase in GMIO includes an increase of 4,000 employees due to the acquisition of HKJV.




4



General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Production Volume (units in thousands)(a)
 
 
 
 
 
 
 
GMNA - Cars
316

 
267

 
965

 
860

GMNA - Trucks
447

 
473

 
1,497

 
1,490

Total GMNA
763

 
740

 
2,462

 
2,350

GME
196

 
270

 
718

 
940

GMIO - Consolidated Entities
282

 
253

 
866

 
820

GMIO - Joint Ventures(b)
774

 
715

 
2,352

 
2,117

Total GMIO
1,056

 
968

 
3,218

 
2,937

GMSA
222

 
243

 
656

 
721

Total Worldwide
2,237

 
2,221

 
7,054

 
6,948

__________
(a)
Production volume includes vehicles produced by certain joint ventures.
(b)
The joint venture agreements with SGMW and FAW-GM allow for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture production in China.



5


General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Vehicle Sales (units in thousands)(a)(b)(c)
 
 
 
 
 
 
 
United States
 
 
 
 
 
 
 
Chevrolet - Cars
207

 
183

 
670

 
613

Chevrolet - Trucks
168

 
183

 
489

 
476

Chevrolet - Crossovers
83

 
84

 
261

 
265

Cadillac
41

 
37

 
104

 
113

Buick
47

 
46

 
137

 
140

GMC
106

 
108

 
307

 
295

Total United States
652

 
641

 
1,968

 
1,902

Canada, Mexico and Other
107

 
105

 
316

 
312

Total GMNA
759

 
746

 
2,284

 
2,214

GME
 
 
 
 
 
 
 
Opel/Vauxhall
244

 
280

 
818

 
942

Chevrolet
138

 
131

 
415

 
388

Other
1

 
1

 
3

 
4

Total GME
382

 
412

 
1,235

 
1,333

GMIO
 
 
 
 
 
 
 
Chevrolet
291

 
279

 
858

 
802

Wuling
303

 
279

 
990

 
884

Buick
172

 
170

 
516

 
494

GM Daewoo
—

 
—

 
—

 
15

Holden
32

 
35

 
92

 
102

GMC
9

 
11

 
31

 
30

Cadillac
8

 
9

 
25

 
25

Other
42

 
28

 
135

 
85

Total GMIO(d)
857

 
811

 
2,648

 
2,437

GMSA
 
 
 
 
 
 
 
Chevrolet
281

 
275

 
783

 
791

Other
1

 
2

 
4

 
8

Total GMSA
283

 
277

 
787

 
799

Total Worldwide
2,281

 
2,245

 
6,954

 
6,783

__________
(a)
GMNA vehicle sales primarily represent sales to the end customer. GME, GMIO and GMSA vehicle sales primarily represent estimated sales to the end customer. In countries where end customer data is not readily available other data sources, such as wholesale or forecast volumes, are used to estimate vehicle sales.
(b)
Certain fleet sales that are accounted for as operating leases are included in vehicle sales at the time of delivery to the daily rental car companies.
(c)
Vehicle sales data may include rounding differences.
(d)
Includes the following joint venture sales. Vehicle sales for SAIC GM Investment Limited, General Motors India Private Limited and Chevrolet Sales India Private Limited (collectively HKJV) are included through August 31, 2012:
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Joint venture sales in China
 
 
 
 
 
 
 
SGMS
327

 
306

 
967

 
906

SGMW and FAW-GM
336

 
312

 
1,111

 
983

Joint venture sales in India
 
 
 
 
 
 
 
HKJV
15

 
29

 
64

 
84


6



General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Market Share(a)(b)
 
 
 
 
 
 
 
United States - Cars
14.6%
 
15.7%
 
14.8%
 
16.6%
United States - Trucks
23.5%
 
26.1%
 
23.2%
 
24.9%
United States - Crossovers
17.0%
 
19.1%
 
17.6%
 
19.4%
Total United States
17.6%
 
19.7%
 
17.7%
 
19.6%
Total GMNA
16.9%
 
18.8%
 
17.0%
 
18.7%
Total GME
8.6%
 
8.8%
 
8.5%
 
8.8%
Total GMIO(c)
9.4%
 
9.6%
 
9.3%
 
9.5%
Total GMSA
17.9%
 
18.7%
 
18.1%
 
18.9%
Total Worldwide
11.6%
 
12.1%
 
11.5%
 
11.9%
 
 
 
 
 
 
 
 
U.S. Retail/Fleet Mix
 
 
 
 
 
 
 
% Fleet Sales - Cars
29.7%
 
29.9%
 
31.4%
 
32.9%
% Fleet Sales - Trucks
24.2%
 
24.9%
 
26.7%
 
25.1%
% Fleet Sales - Crossovers
16.0%
 
21.6%
 
19.9%
 
19.4%
Total Vehicles
24.4%
 
25.9%
 
27.0%
 
26.8%
 
 
 
 
 
 
 
 
GMNA Capacity Utilization
91.8%
 
91.6%
 
98.8%
 
97.0%
__________
(a)
Market share information is based on vehicle sales volume.
(b)
GMNA vehicle sales primarily represent sales to the end customer. GME, GMIO and GMSA vehicle sales primarily represent estimated sales to the end customer. In countries where end customer data is not readily available other data sources, such as wholesale or forecast volumes, are used to estimate vehicle sales.
(c)
Includes the following joint venture sales. Vehicle sales for SAIC GM Investment Limited, General Motors India Private Limited and Chevrolet Sales India Private Limited (collectively HKJV) are included through August 31, 2012:
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Joint venture sales in China
 
 
 
 
 
 
 
SGMS
327

 
306

 
967

 
906

SGMW and FAW-GM
336

 
312

 
1,111

 
983

Joint venture sales in India
 
 
 
 
 
 
 
HKJV
15

 
29

 
64

 
84



7



General Motors Company and Subsidiaries
Condensed Consolidated Income Statements
(In millions, except per share amounts)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Net sales and revenue
 
 
 
 
 
 
 
Automotive sales and revenue
$
37,062

 
$
36,328

 
$
111,517

 
$
111,270

GM Financial revenue
514

 
391

 
1,432

 
1,016

Total net sales and revenue
37,576

 
36,719

 
112,949

 
112,286

Costs and expenses
 
 
 
 
 
 
 
Automotive cost of sales
32,735

 
31,734

 
98,323

 
97,212

GM Financial operating and other expenses
311

 
212

 
827

 
563

Automotive selling, general and administrative expense
2,832

 
2,942

 
8,647

 
8,860

Other automotive expenses, net
17

 
25

 
37

 
50

Goodwill impairment charges
78

 
—

 
695

 
395

Total costs and expenses
35,973

 
34,913

 
108,529

 
107,080

Operating income
1,603

 
1,806

 
4,420

 
5,206

Automotive interest expense
128

 
101

 
356

 
405

Interest income and other non-operating income, net
318

 
152

 
732

 
1,064

Loss on extinguishment of debt
—

 
35

 
18

 
45

Income before income taxes and equity income
1,793

 
1,822

 
4,778

 
5,820

Income tax expense
357

 
107

 
814

 
183

Equity income, net of tax and gain on investments
418

 
377

 
1,141

 
2,903

Net income
1,854

 
2,092

 
5,105

 
8,540

Net (income) loss attributable to noncontrolling interests
(21
)
 
15

 
(111
)
 
(75
)
Net income attributable to stockholders
$
1,833

 
$
2,107

 
$
4,994

 
$
8,465

Net income attributable to common stockholders
$
1,476

 
$
1,726

 
$
3,967

 
$
7,113

 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Basic earnings per common share
$
0.94

 
$
1.10

 
$
2.53

 
$
4.67

Weighted-average common shares outstanding
1,570

 
1,562

 
1,570

 
1,524

Diluted
 
 
 
 
 
 
 
Diluted earnings per common share
$
0.89

 
$
1.03

 
$
2.38

 
$
4.30

Weighted-average common shares outstanding
1,663

 
1,682

 
1,675

 
1,668





8



General Motors Company and Subsidiaries
Basic and Diluted Earnings per Share
(Unaudited)

In the three months and nine months ended September 30, 2012 GM was required to use the two-class method for calculating earnings per share as the applicable market value of its common stock was below $33.00 per common share in the period ended September 30, 2012.

The following table summarizes basic and diluted earnings per share (in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Basic earnings per share
 
 
 
 
 
 
 
Net income attributable to stockholders(a)
$
1,833

 
$
2,107

 
$
4,994

 
$
8,465

Less: cumulative dividends on preferred stock and undistributed earnings allocated to Series B Preferred Stock participating security(b)
(357
)
 
(381
)
 
(1,027
)
 
(1,352
)
Net income attributable to common stockholders
$
1,476

 
$
1,726

 
$
3,967

 
$
7,113

Weighted-average common shares outstanding - basic
1,570

 
1,562

 
1,570

 
1,524

Basic earnings per common share
$
0.94

 
$
1.10

 
$
2.53

 
$
4.67

Diluted earnings per share
 
 
 
 
 
 
 
Net income attributable to stockholders(a)
$
1,833

 
$
2,107

 
$
4,994

 
$
8,465

Less: cumulative dividends on preferred stock and undistributed earnings allocated to Series B Preferred Stock participating security(c)
(350
)
 
(371
)
 
(1,005
)
 
(1,295
)
Net income attributable to common stockholders
$
1,483

 
$
1,736

 
$
3,989

 
$
7,170

Weighted-average shares outstanding - diluted
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic
1,570

 
1,562

 
1,570

 
1,524

Dilutive effect of warrants
88

 
119

 
101

 
142

Dilutive effect of restricted stock units
5

 
1

 
4

 
2

Weighted-average common shares outstanding - diluted
1,663

 
1,682

 
1,675

 
1,668

Diluted earnings per common share
$
0.89

 
$
1.03

 
$
2.38

 
$
4.30

__________
(a)
Includes earned but undistributed dividends of $26 million on GM's Series A Preferred Stock and $20 million on GM's Series B Preferred Stock in the three and nine months ended September 30, 2012 and 2011.
(b)
Includes cumulative dividends on preferred stock of $215 million and earnings of $142 million that have been allocated to the Series B Preferred Stock holders in the three months ended September 30, 2012 and cumulative dividends on preferred stock of $215 million and earnings of $166 million that have been allocated to the Series B Preferred Stock holders in the three months ended September 30, 2011. Includes cumulative dividends on preferred stock of $644 million and earnings of $383 million that have been allocated to the Series B Preferred Stock holders in the nine months ended September 30, 2012 and cumulative dividends on preferred stock of $644 million and earnings of $708 million allocated to the Series B Preferred Stock holders in the nine months ended September 30, 2011.
(c)
Includes cumulative dividends on preferred stock of $215 million and earnings of $135 million that have been allocated to the Series B Preferred Stock holders in the three months ended September 30, 2012 and cumulative dividends on preferred stock of $215 million and earnings of $156 million that have been allocated to the Series B Preferred Stock holders in the three months ended September 30, 2011. Includes cumulative dividends on preferred stock of $644 million and earnings of $361 million that have been allocated to the Series B Preferred Stock holders in the nine months ended September 30, 2012 and cumulative dividends on preferred stock of $644 million and earnings of $651 million that have been allocated to the Series B Preferred Stock holders in the nine months ended September 30, 2011.


9



General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions, except share amounts)
(Unaudited)
 
September 30, 2012
 
December 31, 2011
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
23,320

 
$
16,071

Marketable securities
10,411

 
16,148

Restricted cash and marketable securities
863

 
1,005

Accounts and notes receivable (net of allowance of $304 and $331)
13,015

 
9,964

GM Financial finance receivables, net (including gross finance receivables transferred to SPEs of $3,481 and $3,295)
3,744

 
3,251

Inventories
15,672

 
14,324

Equipment on operating leases, net
2,972

 
2,464

Other current assets and deferred income taxes
2,110

 
1,696

Total current assets
72,107

 
64,923

Non-current Assets
 
 
 
Restricted cash and marketable securities
786

 
1,228

GM Financial finance receivables, net (including gross finance receivables transferred to SPEs of $6,657 and $5,773)
6,855

 
5,911

Equity in net assets of nonconsolidated affiliates
7,519

 
6,790

Property, net
26,578

 
23,005

Goodwill
28,408

 
29,019

Intangible assets, net
8,904

 
10,014

GM Financial equipment on operating leases, net (including assets transferred to SPEs of $584 and $274)
1,521

 
785

Other assets and deferred income taxes
2,778

 
2,928

Total non-current assets
83,349

 
79,680

Total Assets
$
155,456

 
$
144,603

LIABILITIES AND EQUITY
 
 
 
Current Liabilities
 
 
 
Accounts payable (principally trade)
$
26,313

 
$
24,551

Short-term debt and current portion of long-term debt
 
 
 
Automotive (including certain debt at VIEs of $227 and $171)
2,277

 
1,682

GM Financial
4,001

 
4,118

Accrued liabilities (including derivative liabilities at VIEs of $13 and $44)
25,032

 
22,875

Total current liabilities
57,623

 
53,226

Non-current Liabilities
 
 
 
Long-term debt
 
 
 
Automotive (including certain debt at VIEs of $123 and $7)
3,314

 
3,613

GM Financial
7,061

 
4,420

Postretirement benefits other than pensions
6,755

 
6,836

Pensions
25,317

 
25,075

Other liabilities and deferred income taxes
12,757

 
12,442

Total non-current liabilities
55,204

 
52,386

Total Liabilities
112,827

 
105,612

Commitments and contingencies
 
 
 
Equity
 
 
 
Preferred stock, $0.01 par value, 2,000,000,000 shares authorized:
 
 
 
Series A (276,101,695 shares issued and outstanding (each with a $25.00 liquidation preference) at September 30, 2012 and December 31, 2011)
5,536

 
5,536

Series B (100,000,000 shares issued and outstanding (each with a $50.00 liquidation preference) at September 30, 2012 and December 31, 2011)
4,855

 
4,855

Common stock, $0.01 par value (5,000,000,000 shares authorized and 1,565,979,895 shares and 1,564,727,289 shares issued and outstanding at September 30, 2012 and December 31, 2011)
16

 
16

Capital surplus (principally additional paid-in capital)
26,443

 
26,391

Retained earnings
11,533

 
7,183

Accumulated other comprehensive loss
(6,724
)
 
(5,861
)
Total stockholders’ equity
41,659

 
38,120

Noncontrolling interests
970

 
871

Total Equity
42,629

 
38,991

Total Liabilities and Equity
$
155,456

 
$
144,603



10