-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TPOfdt5MfqvQOAhoblUHE31cUEtH4Nmv0KCjtztgB8LKkxoBJn0eklD583aCBG5W CeyLNlSi3Vom6R/RsbQkVQ== 0000040730-01-500014.txt : 20010123 0000040730-01-500014.hdr.sgml : 20010123 ACCESSION NUMBER: 0000040730-01-500014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001003 ITEM INFORMATION: FILED AS OF DATE: 20010117 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL MOTORS CORP CENTRAL INDEX KEY: 0000040730 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [3711] IRS NUMBER: 380572515 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-00143 FILM NUMBER: 1510154 BUSINESS ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 BUSINESS PHONE: 3135565000 MAIL ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 8-K 1 gm4q00earnings8k-011701.txt GM 4TH QTR 2000 EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549-1004 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) October 3, 2000 ---------------- GENERAL MOTORS CORPORATION ----------------------------------------------------- (Exact name of registrant as specified in its charter) STATE OF DELAWARE 1-143 38-0572515 - ---------------------------- ----------------------- ------------------- (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 300 Renaissance Center, Detroit, Michigan 48265-3000 - -------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (313)-556-5000 -------------- - 1 - ITEM 5. OTHER EVENTS On January 17, 2001, a news release was issued on the subject of fourth quarter consolidated earnings for General Motors Corporation (GM). The news release did not include certain financial statements, related footnotes and certain other financial information that will be filed with the Securities and Exchange Commission as part of GM's Annual Report on Form 10-K. the following is the fourth quarter earnings release for GM, and their subsidiary Hughes Electronics Corporation's (Hughes) earnings release dated January 16, 2001. GM NET INCOME FOR 2000 TOTALS $5.0 BILLION CALENDAR-YEAR REVENUES HIT RECORD $183.3 BILLION FOURTH QUARTER EARNINGS TOTAL $609 MILLION DETROIT -- General Motors Corp. (NYSE: GM) today reported that it earned $5.0 billion, or $8.58 diluted earnings per share, in calendar year 2000 - excluding special items - on record revenues of $183.3 billion. Revenues were up nearly four percent from 1999 and exceeded the previous record of $176.6 billion in 1999. For the fourth quarter of 2000, GM earned $609 million, or $1.15 diluted earnings per share, excluding special items. That was down about 51 percent from strong year-ago results because of the decline in Europe and losses at GM's affiliate Isuzu. "GM had another good year despite the extremely competitive global market and fourth-quarter slowdown," Chairman John F. "Jack" Smith Jr. said. "Earnings were the second-best in GM history and revenues set a record. As we enter a more challenging period, GM's taking tough actions to reduce structural costs, realign capacity and pursue growth opportunities to generate consistently strong results." CALENDAR YEAR RESULTS Calendar-year-2000 income of $5.0 billion, or $8.58 per share, on revenue of $183.3 billion compares with record annual earnings of $5.7 billion, or $8.62 per share, and revenue of $176.6 billion in 1999, all excluding special items. Including special items, calendar-year-2000 net income totaled $4.5 billion, or $6.68 per share, on revenue of $184.6 billion. The special items, totaling an unfavorable $520 million, or $1.90 per share, relate to the previously announced gain on the sale of the Hughes satellite-manufacturing business to Boeing, and costs related to actions to improve GM's competitiveness in its core automotive business. These initiatives include the phase out of Oldsmobile, planned capacity reductions in Europe, and volume reductions and production changes in North America (see Highlights). Record industry sales in the United States led to income of $4.4 billion for GM North America in 2000. GMAC had record net income for the second consecutive year, totaling $1.6 billion in 2000, marking the sixth consecutive year of earnings growth. The improved performance resulted primarily from the expansion of its mortgage business and other growth initiatives. - 2 - FOURTH-QUARTER RESULTS Fourth-quarter income was $609 million, or $1.15 per share, compared with $1.3 billion, or $1.95 per share, in the fourth quarter of 1999, excluding special items. Including the special items, fourth-quarter net income was $89 million, or a loss of $1.16 per share (The EPS loss is due to the apportionment of earnings between GM's two classes of common stock. See Highlights). This compares with net income of $1.1 billion, or $1.86 per share, in the fourth quarter of 1999. GM announced in December a series of significant initiatives intended to strengthen its competitiveness and better focus its resources on key growth activities. These actions included the phase out of the Oldsmobile Division; planned discontinuation of passenger-car production in Luton, England; North American volume reductions and production changes; and 10-percent reductions in salaried and contract employment levels in North America and Europe. "These were difficult decisions, but necessary to position General Motors to compete in increasingly competitive market conditions," said Rick Wagoner, president and chief executive officer. "While we hope that the recent industry slowdowns in North America and Europe will prove to be a temporary correction, we believe that strong actions are required to help us more effectively compete in the marketplace and achieve improved performance in the future." In North America, GM's fourth-quarter earnings of $1.0 billion were about the same as in 1999, excluding special items, with lower volumes and strong pricing pressures partially offset by favorable product mix and continued cost reductions. "Operating lean and fast is becoming an element of our culture, rather that just a reaction to the industry's inevitable down cycles," Wagoner added. Results in Europe, a loss of $463 million, were adversely affected by a slowdown in vehicle sales in the fourth quarter that was more severe than anticipated, continued pricing pressures, unfavorable product mix, country mix, and one-time factors. "Our fourth-quarter performance in Europe was unacceptable," Wagoner said. "We are taking major steps to improve operating performance, including the introduction of innovative new products; improving capacity utilization; intensifying overall cost reduction; and aggressively pursuing synergies with our alliance partners in purchasing, powertrain activities, product development, and other important areas." Results for GM's Latin America/Africa/Mid-East (LAAM) and Asia-Pacific regions declined from the prior-year period. While volume was up, LAAM had a loss of $16 million as performance was affected by unfavorable product mix, the start-up of the new Celta assembly plant in Brazil, and inflation-driven costs not fully recovered in price. Asia-Pacific's loss of $107 million reflected primarily the losses at GM affiliate Isuzu Motors Ltd. GMAC's fourth-quarter 2000 net income improved by more than 11 percent to $409 million, up from $367 million in the fourth quarter of 1999. The increase was driven primarily by improvements in the mortgage and insurance businesses. The mortgage business was particularly strong due to continued growth in both the domestic market and new initiatives of its international operations. - 3 - Hughes' net loss of $74 million in the fourth quarter of 2000 compares with a loss of $61 million in the fourth quarter of 1999, excluding special items. The earnings decline was related primarily to the up-front costs for DIRECTV growth initiatives, and the revenue and profit decline resulting from the sale of its satellite-manufacturing business. Hughes added 695,000 net new DIRECTV subscribers in the fourth quarter of 2000, bringing the total subscriber base to 10.8 million. LOOKING AHEAD General Motors expects U.S. vehicle sales will moderate from 2000's record of 17.8 million units to a level ranging between 16 million to 16.5 million units. Although the industry entered the first quarter on a downward track, economic growth is expected to improve later in the year. Previously announced production cuts are expected to impact first quarter results, with the current expectation that a marginal profit will be achieved. For the calendar year, while there are considerable uncertainties in the economic environment, GM is comfortable with the current financial analysts' consensus earnings forecast of approximately $4.25 per share. "We remain intently focused on innovative new products," Wagoner said. "Product is the all-important driver of success, and I am pleased that we have a number of major vehicle introductions worldwide this year. And, we're combining that with an enhanced focus on our cost structure to assure that we meet our consumer value expectations and our shareholders' earnings expectations." Among key products coming to North America this year are the all new Chevrolet Trailblazer, GMC Envoy and Oldsmobile Bravada midsize SUVs, the industry-first Chevrolet Avalanche and Cadillac Escalade EXT, Buick's Rendezvous and Saturn's first SUV, the VUE. Equally important are key technologies such as the all-new Vortec 4200 in-line six-cylinder engine, QuadraSteer four-wheel steering system, Versatrak all-wheel-drive system, and GM's OnStar system, which is now installed in more than 1 million vehicles. In Europe, the all-new Opel Speedster, new Corsa and Zafira models, an Astra convertible, the Vivaro and Combo commercial vans, and improved availability of diesel engines are important factors. In Latin America, new local entries include the Chevrolet Zafira and Grand Vitara, along with the Brazilian-built Celta introduced late last year. In China, Buick's new compact family car, the Sail, is the third distinct model GM has introduced in that important growth market. The Zafira was recently introduced in Asia and is produced at GM's Thailand plant for the Asian market, and for export to other regions. GM and Suzuki will begin production in September of a small Chevrolet 4x4 lifestyle vehicle at Suzuki's Kosai plant in Japan. The vehicle will initially be sold in Japan and Australia. - 4 - PROFIT SHARING As a result of the profits generated in 2000 by GM's operations in the United States, profit-sharing payments of approximately $800 will be made in 2001 to approximately 147,000 of GM's represented employees in the United States who worked the entire year. This is the seventh consecutive year that profit-sharing payments have been made to U.S. employees. # # # In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors that are described in GM's most recent report on SEC Form 10-K (at page II-20) which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: changes in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation's new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and, the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and times planned by management. * * * * * * - 5 - HIGHLIGHTS - Q4 Adjusted for Special Items (Dollars in Millions Except Per Share Amounts) Three Months Ended December 31, 2000 --------------------- Net Income EPS (A) --------- --------- Reported $89 $(1.16)(B) Special Charges: Phase-out of Oldsmobile (939) (1.68) GMNA Capacity Reduction (294) (0.53) GME Capacity Reduction (419) (0.75) Hughes Satellite System Gain 1,132 0.65 ----- ----- Adjusted $609 $1.15 ===== ===== Three Months Ended December 31, 1999 --------------------- Net Income EPS (A) --------- --------- Reported $1,145 $1.86 Special Charges: Postemployment Benefits 553 0.86 Termination Benefits (90) (0.14) Hourly Retiree Benefits (408) (0.63) Hughes Wireless Business (165) (0.18) ----- ----- Adjusted $1,255 $1.95 ===== ===== (A) GM $1-2/3 par value earnings per share attributable to common stock assuming dilution (B) Although reported net income is positive, EPS is negative due to the attribution of Hughes earnings for purposes of calculating GM $1-2/3 par value EPS. 100% of Hughes net income is included in reported net income, but only 32.6% of Hughes net income is included in the Q4 2000 calculation of earnings per share attributable to GM $1-2/3 par value stock. - 6 - HIGHLIGHTS - List of Special Items-After Tax by Quarter Impact on Net Income (Dollars in Millions) During the fourth quarter of calendar year 2000, GM made the following announcements: - To phase out the Oldsmobile division as the current model lineup product lifecycles come to an end, or until the models are no longer economically viable. - To implement the previously announced actions to convert and reduce production at the following plants: Oklahoma City, OK; Delta Engine, Lansing, MI; Spring Hill, TN; and Wilmington, DE. - To reduce production capacity at GME including the restructuring of Vauxhall Motors' manufacturing operations in the UK. - The completion of the sale of its Hughes satellite systems manufacturing businesses to the Boeing Company for $3.8 billion in cash. Three Months Ended December 31, 2000 ------------------------------------ Total GMNA GME Hughes ACO ------------------------ ------ ------ ------- Phase-out Satel. of Capacity Capacity System Oldsmobile Reduction Reduct. Gain ------------------------ ------ ----- ------- Postemployment Benefits $- $(294) $(108) $- $(402) Underperforming Assets (356) - (231) - (587) Payments to Dealers and Others (583) - (80) - (663) --- --- --- --- ------ Total Automotive (939) (294) (419) - (1,652) Hughes Gain - - - 1,132 1,132 --- --- --- ----- ----- Total $(939) $(294) $(419) $1,132 $(520) === === === ===== ===== Postemployment benefits represent liabilities for termination and other postemployment benefits associated with the reductions in production capacity in GMNA and GME. The GMNA charge relates to approximately 4,000 U.S. employees at the four plants mentioned above. This action will reduce production capacity by approximately 376,000 engines per year and 127,000 vehicles per year. The GME charge primarily relates to approximately 2,000 employees at the Luton assembly plant. This action will reduce production capacity by approximately 270,000 vehicles per year. Underperforming assets represent the write-down of impaired long-lived assets, principally tooling and equipment on operating leases, recorded pursuant to GM's policy for the evaluation of long-lived assets. Payments to dealers and others represent transition assistance to be paid to Oldsmobile dealers, increased sales incentives on Oldsmobile vehicles, and cancellation charges to be paid to suppliers incurred as a result of certain GME restructuring actions. GM's net of tax cash requirements relating to the above GMNA and GME charges are expected to total approximately $1.2 billion, with anticipated spending of approximately 50% in 2001, 24% in 2002 and the remainder being spent thereafter. - 7 - HIGHLIGHTS - List of Special Items-After Tax by Quarter Impact on Net Income (Dollars in Millions) Three Months Ended December 31, 1999 ------------------------------------ Total Total GMNA Hughes Other ACO GMAC Corp. ------ ------ ----- ----- ----- ----- Postemployment Benefits $553 $- $- $553 $- $553 Termination Benefits (39) - (35) (74) (16) (90) Hourly Retiree Benefits (257) - (151) (408) - (408) Hughes Wireless Business - (165) - (165) - (165) --- --- --- --- --- --- Total $257 $(165) $(186) $(94) $(16) $(110) === === === === === === Postemployment benefits are related to the reversal of a liability for benefits payable to excess U.S. hourly employees. Termination benefits are related to a U.S. salaried early retirement program. Approximately 1,700 people (100 executives) elected participation in this program. Hourly Retiree benefits are related to the benefit increase granted to hourly retirees in connection with the 1999 UAW agreement. The Hughes Wireless business charge is related to Hughes' decision to discontinue certain of its wireless manufacturing operations at Hughes Network Systems. - 8 - HIGHLIGHTS - Q4 Summary Financial Highlights Three Months Ended December 31, --------------------- Adjusted 2000 1999 --------- --------- Total net sales and revenues (Dollars in billions) $45.0 $46.3 ------ ------ Consolidated net income (Dollars in millions) $609 $1,255 ............................................................. Earnings Per Share Attributable to Common Stocks Assuming Dilution $1-2/3 par value $1.15 $1.95 Class H $(0.08) $(0.07)(1) ............................................................. Return on net assets (RONA) for continuing operations on a four quarter rolling average excluding Hughes 11.1% 13.8% ............................................................. Total Cash (Dollars in billions)(2) $13.3 $14.4 ............................................................. Net profit margins Three Months Ended December 31, -------------------- Adjusted 2000 1999 --------- --------- GM North America (GMNA) 3.6% 3.5% GM Europe (GME) (7.7%) 0.5% GM Latin America/Africa/Mid-East (GMLAAM) (1.1%) 1.4% GM Asia/Pacific (GMAP) (10.7%) (2.4%) Total GM Automotive (GMA) 1.1% 2.8% Hughes (3.4%) (2.8%) Total Automotive, Communications Services, and Other Operations 0.5% 2.2% GMAC 6.5% 6.9% Consolidated net income 1.4% 2.7% (1) The 1999 earnings per share amount attributable to the GM Class H common stock was adjusted to reflect the three-for-one stock split of the GM Class H common stock, in the form of a 200% stock dividend, paid on June 30, 2000. (2) Represents total cash for Automotive, Communications Services, and Other Operations which includes cash and marketable securities as well as $3.0 billion invested in short-term fixed income securities of the Corporation's Voluntary Employees' Beneficiary Association Trust. - 9 - HIGHLIGHTS - Q4 Financial Results (Dollars in Millions Except Per Share Amounts) Three Months Ended December 31, ------------------------------------ Adjusted Adjusted 2000 2000(1) 1999 1999(1) -------- ------- ------- -------- Total net sales and revenues $46,341 $45,001 $46,262 $46,262 ------ ------ ------ ------ Consolidated net income $89 $609 $1,145 $1,255 ............................................................. Earnings Attributable to Common Stocks $1-2/3 par value $(635) $648 $1,196 $1,253 Class H $697 $(66) $(80) $(27) ............................................................. Basic Earnings Per Share Attributable to Common Stocks $1-2/3 par value $(1.14) $1.16 $1.90 $1.99 Class H (5) $0.80 $(0.08) $(0.19) $(0.07) ............................................................. Earnings Per Share Attributable to Common Stocks Assuming Dilution $1-2/3 par value $(1.16) $1.15 $1.86 $1.95 Class H (5) $0.76 $(0.08) $(0.19) $(0.07) ............................................................. Cash Dividends Per Share of Common Stocks $1-2/3 par value $0.50 $0.50 Class H $- $- ............................................................. Book Value Per Share of Common Stocks December 31, ---------------------- 2000 1999 --------- --------- $1-2/3 par value $39.36 $27.02 Class H (5) $7.87 $5.40 ............................................................. See footnotes beginning on page 16. continues - 10 - HIGHLIGHTS - Q4 Adjusted for Special Items by Segment (Dollars in Millions) Three Months Ended December 31, 2000 ---------------------------- (1) Reported (2) Adjusted Income Special Income (Loss) Items (Loss) ------- ------- -------- GMNA $(254) $(1,233) $979 GME (882) (419) (463) GMLAAM (16) - (16) GMAP (107) - (107) ----- ----- ----- Total GMA $(1,259) $(1,652) $393 Hughes (6) 1,058 1,132 (74) Other (119) - (119) ----- ----- ----- Total Automotive, Comm. Services, and Other Operations $(320) $(520) $200 GMAC $409 $- $409 Other - - - ----- ---- ----- Total Financing and Insurance Operations $409 $- $409 ----- ---- ----- Consolidated Net Income $89 $(520) $609 ===== ==== ===== Net (loss)/profit margin from Total GMA (3.6%) 1.1% Consolidated net income 0.2% 1.4% See footnotes beginning on page 16. continues - 11 - HIGHLIGHTS - Q4 Adjusted for Special Items by Segment (Dollars in Millions) Three Months Ended December 31, 1999 ---------------------------- (1) Reported (3) Adjusted Income Special Income (Loss) Items (Loss) ------- ------- -------- GMNA $1,282 $257 $1,025 GME 30 - 30 GMLAAM 18 - 18 GMAP (23) - (23) ----- ---- ----- Total GMA $1,307 $257 $1,050 Hughes (6) (226) (165) (61) Other (282) (186) (96) ----- ---- ----- Total Automotive, Comm. Services, and Other Operations $799 $(94) $893 GMAC $351 $(16) $367 Other (5) - (5) ----- ---- ----- Total Financing and Insurance Operations $346 $(16) $362 ----- ---- ----- Consolidated Net Income/(Loss) $1,145 $(110) $1,255 ===== ==== ===== Net profit margin from Total GMA 3.4% 2.8% Consolidated net income 2.5% 2.7% See footnotes beginning on page 16. continues - 12 - HIGHLIGHTS - Q4 Adjusted for Special Items by Region (Dollars in Millions) Three Months Ended December 31, 2000 ------------------------------- GMNA GME GMLAAM GMAP ----- ------ ------ ------ Reported -------- Total net sales and revenues $26,739 $6,043 $1,431 $1,001 ------ ----- ----- --- Pre-tax loss $(604)$(1,256) $(78) $(47) Income tax (benefit) (386) (373) (48) (4) Equity income/(loss) and minority interests (36) 1 14 (64) ----- ----- ----- --- Net loss $(254) $(882) $(16) $(107) ===== ===== ===== === Net loss margin (0.9%) (14.6%) (1.1%) (10.7%) Effective income tax rate 63.9% 29.7% 61.5% 8.5% LESS: Special Items (2) ------------------- Total net sales and revenues $(695) $- $- $- ----- ----- ----- --- Pre-tax (loss) $(1,984) $(619) $- $- Income tax (benefit) (751) (200) - - Equity income/(loss) and minority interests - - - - ----- ----- ----- --- Net (loss) $(1,233) $(419) $- $- ===== ===== ===== === Adjusted (1) -------- Total net sales and revenues $27,434 $6,043 $1,431 $1,001 ------ ----- ----- ----- Pre-tax income/(loss) $1,380 $(637) $(78) $(47) Income tax expense/(benefit) 365 (173) (48) (4) Equity income/(loss) and minority interests (36) 1 14 (64) ----- ----- ----- --- Net income/(loss) $979 $(463) $(16) $(107) ===== ===== ===== === Net profit/(loss) margin 3.6% (7.7%) (1.1%) (10.7%) Effective income tax rate 26.4% 27.2% 61.5% 8.5% See footnotes beginning on page 16. continues - 13 - HIGHLIGHTS - Q4 Adjusted for Special Items by Region (Dollars in Millions) Three Months Ended December 31, 1999 ------------------------------- GMNA GME GMLAAM GMAP ----- ------ ------ ------ Reported -------- Total net sales and revenues $29,142 $6,556 $ 1,261 $ 941 ------ ----- ----- --- Pre-tax income/(loss) $1,984 $37 $(42) $(27) Income tax expense/(benefit) 676 12 (50) 1 Equity income/(loss) and minority interests (26) 5 10 5 ----- ----- ----- --- Net income/(loss) $1,282 $30 $18 $(23) ===== ===== ===== === Net profit/(loss) margin 4.4% 0.5% 1.4% (2.4%) Effective income tax rate 34.1% 32.4% 119.0% (3.7%) LESS: Special Items (3) ------------------- Total net sales and revenues $- $ - $ - $ - ----- ----- ----- --- Pre-tax income $415 $- $- $- Income tax expense 158 - - - Equity income/(loss) and minority interests - - - - ----- ----- ----- --- Net income $257 $- $- $- ===== ===== ===== === Adjusted (1) -------- Total net sales and revenues $29,142 $6,556 $1,261 $941 ------ ----- ----- --- Pre-tax income/(loss) $1,569 $37 $(42) $(27) Income tax expense/(benefit) 518 12 (50) 1 Equity income/(loss) and minority interests (26) 5 10 5 ----- ----- ----- --- Net income/(loss) $1,025 $30 $18 $(23) ===== ===== ===== === Net profit/(loss) margin 3.5% 0.5% 1.4% (2.4%) Effective income tax rate 33.0% 32.4% 119.0% (3.7%) See footnotes beginning on page 16. continues - 14 - HIGHLIGHTS - Q4 Operating Information Three Months Ended December 31, --------------------- 2000 1999 ------- ------- Worldwide Wholesale Sales (units in 000s) United States: Cars 597 704 Trucks 611 633 ------ ------ Total United States 1,208 1,337 Canada and Mexico 174 157 ------ ------ Total GM North America 1,382 1,494 ------ ------ GME 445 497 GMLAAM 164 124 GMAP 113 109 ------ ------ Total International 722 730 ------ ------ Total Worldwide 2,104 2,224 ====== ====== .................................................... Vehicle Unit Deliveries (units in 000s) United States Chevrolet - Cars 185 202 - Trucks 383 427 Pontiac 127 132 GMC 117 134 Buick 83 89 Oldsmobile 64 70 Saturn 55 54 Cadillac 41 45 Other 11 8 ------ ------ Total United States 1,066 1,161 Canada and Mexico 167 171 ------ ------ Total GM North America 1,233 1,332 ------ ------ GME 395 439 GMLAAM 161 135 GMAP 130 131 ------ ------ Total International 686 705 ------ ------ Total Worldwide 1,919 2,037 ====== ====== .................................................... Market share United States Cars 27.8% 27.9% Trucks 26.9% 27.9% Total 27.3% 27.9% Total North America 26.9% 27.5% Total Europe 9.0% 9.7% Latin America (4) 20.8% 20.5% Asia and Pacific 4.3% 4.3% Total Worldwide 14.7% 15.3% ..................................................... U.S. Retail/Fleet Mix % Fleet Sales - Cars 26.3% 28.1% % Fleet Sales - Trucks 12.4% 12.8% Total vehicles 19.2% 20.2% .................................................... Days Supply of Inventory - U.S. Cars 116 93 Trucks 132 85 .................................................... Capacity Utilization % U.S. and Canada (2-shift rated) 86.8% 95.8% .................................................... GMNA Net Price (%) (1.7%) (0.3%) .................................................... See footnotes beginning on page 16. continues - 15 - HIGHLIGHTS - Q4 Other Financial Information (Dollars in Millions) Three Months Ended December 31, ---------------------- 2000 1999 --------- ---------- Automotive, Comm. Services and Other Operations: Depreciation $1,404 $1,080 Amortization of special tools 901 603 Amortization of intangible assets 99 69 ------ ----- Total $2,404 $1,752 ====== ===== .................................................... Worldwide Employment at December 31 (in 000s) GMNA 212 217 GME 89 91 GMLAAM 24 23 GMAP 11 10 Hughes 9 18 GMAC 28 28 Other 13 11 ------ ------ Total 386 398 ====== ====== .................................................... Worldwide Payrolls $5,116 $5,503 .................................................... (1) Adjusted amounts represent the reported amounts less the effects of special items. (2) Special items for fourth quarter 2000 are detailed on page 6. (3) Special items for fourth quarter 1999 are detailed on page 7. (4) Latin America excludes the Middle East and Africa. (5) The 1999 earnings per share and book value per share were adjusted to reflect the three-for-one stock split of the GM Class H common stock, in the form of a 200% stock dividend, paid on June 30, 2000. (6) Excludes the effects of purchase accounting adjustments related to General Motors' acquisition of Hughes in 1985, and excludes Hughes Series A Preferred Stock dividends payable to General Motors. - 16 - HIGHLIGHTS - Year-End Adjusted for Special Items (Dollars in Millions Except Per Share Amounts) Year-Ended December 31, 2000 --------------------- Net Income EPS (A) --------- --------- Reported $4,452 $6.68 Special Charges: Phase-out of Oldsmobile (939) (1.59) GMNA Capacity Reduction (294) (0.50) GME Capacity Reduction (419) (0.71) Hughes Satellite System Gain 1,132 0.90 ----- ----- Adjusted $4,972 $8.58 ===== ===== Year-Ended December 31, 1999 --------------------- Net Income(B) EPS (A) --------- --------- Reported $5,576 $8.53 Special Charges: Postemployment Benefits 553 0.84 Termination Benefits (90) (0.14) Hourly Retiree Benefits (408) (0.62) Hughes Wireless Business (165) (0.17) ----- ----- Adjusted $5,686 $8.62 ===== ===== (A) GM $1-2/3 par value earnings per share attributable to common stock assuming dilution (B) Net income from continuing operations - 17 - HIGHLIGHTS - List of Special Items-After Tax for Calendar Year Impact on Net Income (Dollars in Millions) During the fourth quarter of calendar year 2000, GM made the following announcements: - To phase out the Oldsmobile division as the current model lineup product lifecycles come to an end, or until the models are no longer economically viable. - To implement the previously announced actions to convert and reduce production at the following plants: Oklahoma City, OK; Delta Engine, Lansing, MI; Spring Hill, TN; and Wilmington, DE. - To reduce production capacity at GME including the restructuring of Vauxhall Motors' manufacturing operations in the UK. - The completion of the sale of its Hughes satellite systems manufacturing businesses to the Boeing Company for $3.8 billion in cash. Year-Ended December 31, 2000 ------------------------------------ Total GMNA GME Hughes ACO ------------------------ ------ ------ ------- Phase-out Satel. of Capacity Capacity System Oldsmobile Reduction Reduct. Gain ------------------------ ------ ----- ------- Postemployment Benefits $- $(294) $(108) $- $(402) Underperforming Assets (356) - (231) - (587) Payments to Dealers and Others (583) - (80) - (663) --- --- --- --- ------ Total Automotive (939) (294) (419) - (1,652) Hughes Gain - - - 1,132 1,132 --- --- --- ----- ----- Total $(939) $(294) $(419) $1,132 $(520) === === === ===== ===== Postemployment benefits represent liabilities for termination and other postemployment benefits associated with the reductions in production capacity in GMNA and GME. The GMNA charge relates to approximately 4,000 U.S. employees at the four plants mentioned above. This action will reduce production capacity by approximately 376,000 engines per year and 127,000 vehicles per year. The GME charge primarily relates to approximately 2,000 employees at the Luton assembly plant. This action will reduce production capacity by approximately 270,000 vehicles per year. Underperforming assets represent the write-down of impaired long-lived assets, principally tooling and equipment on operating leases, recorded pursuant to GM's policy for the evaluation of long-lived assets. Payments to dealers and others represent transition assistance to be paid to Oldsmobile dealers, increased sales incentives on Oldsmobile vehicles, and cancellation charges to be paid to suppliers incurred as a result of certain GME restructuring actions. GM's net of tax cash requirements relating to the above GMNA and GME charges are expected to total approximately $1.2 billion, with anticipated spending of approximately 50% in 2001, 24% in 2002 and the remainder being spent thereafter. - 18 - HIGHLIGHTS - List of Special Items-After Tax for Calendar Year Impact on Net Income (Dollars in Millions) Year-Ended December 31, 1999 ------------------------------------ Total Total GMNA Hughes Other ACO GMAC Corp. ------ ------ ----- ----- ----- ----- Postemployment Benefits $553 $- $- $553 $- $553 Termination Benefits (39) - (35) (74) (16) (90) Hourly Retiree Benefits (257) - (151) (408) - (408) Hughes Wireless Business - (165) - (165) - (165) --- --- --- --- --- --- Total $257 $(165) $(186) $(94) $(16) $(110) === === === === === === Postemployment benefits are related to the reversal of a liability for benefits payable to excess U.S. hourly employees. Termination benefits are related to a U.S. salaried early retirement program. Approximately 1,700 (100 executives) people elected participation in this program. Hourly Retiree benefits are related to the benefit increase granted to hourly retirees in connection with the 1999 UAW agreement. The Hughes Wireless business charge is related to Hughes' decision to discontinue certain of its wireless manufacturing operations at Hughes Network Systems. - 19 - HIGHLIGHTS - Year-End Summary Financial Highlights Year-Ended December 31, --------------------- Adjusted 2000 1999 --------- --------- Total net sales and revenues (Dollars in billions) $183.3 $176.6 ------- ------- Consolidated net income (Dollars in millions) $4,972 $5,686(3) ............................................................. Earnings Per Share Attributable to Common Stocks Assuming Dilution $1-2/3 par value $8.58 $8.62 Class H $(0.31) $(0.12)(1) ............................................................. Return on net assets (RONA) for continuing operations on a four quarter rolling average excluding Hughes 11.1% 13.8% ............................................................. Total Cash (Dollars in billions)(2) $13.3 $14.4 ............................................................. Net profit margins Year-Ended December 31, -------------------- Adjusted 2000 1999 --------- --------- GM North America (GMNA) 3.9% 4.1% GM Europe (GME) (1.0%) 1.6% GM Latin America/Africa/Mid-East (GMLAAM) 0.5% (1.7%) GM Asia/Pacific (GMAP) (6.5%) (6.8%) Total GM Automotive (GMA) 2.7% 3.2% Hughes (3.5%) (1.4%) Total Automotive, Communications Services, and Other Operations 2.1% 2.6% GMAC 6.8% 7.6% Consolidated net income 2.7% 3.2% (1) The 1999 earnings per share amount attributable to the GM Class H common stock was adjusted to reflect the three-for-one stock split of the GM Class H common stock, in the form of a 200% stock dividend, paid on June 30, 2000. (2) Represents total cash for Automotive, Communications Services, and Other Operations which includes cash and marketable securities as well as $3.0 billion invested in short-term fixed income securities of the Corporation's Voluntary Employees' Beneficiary Association Trust. (3) Net income from continuing operations. - 20 - HIGHLIGHTS - Year Ended Financial Results (Dollars in Millions Except Per Share Amounts) Year Ended December 31, ---------------------------------------- Adjusted Adjusted 2000 2000(1) 1999 1999(1) -------- ------- ------- -------- Total net sales and revenues $184,632 $183,292 $176,558 $176,558 ------- ------- ------- ------- Income from continuing operations $4,452 $4,972 $5,576 $5,686 Income from discontinued operations - - 426 426 ------ ------ ------ ------ Consolidated net income $4,452 $4,972 $6,002 $6,112 ............................................................... Earnings Attributable to Common Stocks $1-2/3 par value Continuing operations $3,957 $5,072 $5,592 $5,653 Discontinued operations - - 426 426 ------ ------ ------ ------ $1-2/3 par value $3,957 $5,072 $6,018 $6,079 Class H $385 $(210) $(96) $(47) ............................................................... Basic Earnings Per Share Attributable to Common Stocks $1-2/3 par value Continuing operations $6.80 $8.72 $8.70 $8.79 Discontinued operations - - 0.66 0.66 ------ ------ ------ ------ $1-2/3 par value $6.80 $8.72 $9.36 $9.45 Class H (5) $0.56 ($0.31) $(0.26) $(0.12) ............................................................... Earnings Per Share Attributable to Common Stocks Assuming Dilution $1-2/3 par value Continuing operations $6.68 $8.58 $8.53 $8.62 Discontinued operations - - 0.65 0.65 ------ ------ ------ ------ $1-2/3 par value $6.68 $8.58 $9.18 $9.27 Class H (5) $0.55 $(0.31) $(0.26) $(0.12) ............................................................... Cash Dividends Per Share of Common Stocks $1-2/3 par value $2.00 $2.00 Class H $- $- ............................................................... Book Value Per Share of Common Stocks December 31, ---------------------- 2000 1999 --------- --------- $1-2/3 par value $39.36 $27.02 Class H (5) $7.87 $5.40 ............................................................... See footnotes beginning on page 27. continues - 21 - HIGHLIGHTS - Year Ended Adjusted for Special Items by Segment (Dollars in Millions) Year Ended December 31, 2000 ---------------------------- (1) Reported (2) Adjusted Income Special Income (Loss) Items (Loss) ------- ------- -------- GMNA $3,174 $(1,233) $4,407 GME (676) (419) (257) GMLAAM 26 - 26 GMAP (233) - (233) ----- ---- ----- Total GMA $2,291 $(1,652) $3,943 Hughes (6) 829 1,132 (303) Other (281) - (281) ----- ---- ----- Total Automotive, Comm. Services, and Other Operations $2,839 $(520) $3,359 GMAC $1,602 $- $1,602 Other 11 - 11 ----- ---- ----- Total Financing and Insurance Operations $1,613 $- $1,613 ----- ---- ----- Income from continuing operations $4,452 $(520) $4,972 ----- ---- ----- Consolidated Net Income $4,452 $(520) $4,972 ===== ==== ===== Net profit margin from Total GMA 1.6% 2.7% Income from continuing operations 2.4% 2.7% See footnotes beginning on page 27. continues - 22 - HIGHLIGHTS - Year Ended Adjusted for Special Items by Segment (Dollars in Millions) Year Ended December 31, 1999 ---------------------------- (1) Reported (3) Adjusted Income Special Income (Loss) Items (Loss) ------- ------- -------- GMNA $4,857 $257 $4,600 GME 423 - 423 GMLAAM (81) - (81) GMAP (218) - (218) ----- ---- ----- Total GMA $4,981 $257 $4,724 Hughes (6) (270) (165) (105) Other (669) (186) (483) ----- ---- ----- Total Automotive, Comm. Services, and Other Operations $4,042 $(94) $4,136 GMAC $1,527 $(16) $1,543 Other 7 - 7 ----- ---- ----- Total Financing and Insurance Operations $1,534 $(16) $1,550 ----- ---- ----- Income/(loss) from continuing operations $5,576 $(110) $5,686 Income from discontinued operations 426 - 426 ----- ---- ----- Consolidated Net Income/(Loss) $6,002 $(110) $6,112 ===== ==== ===== Net profit margin from Total GMA 3.4% 3.2% Income from continuing operations 3.2% 3.2% See footnotes beginning on page 27. continues - 23 - HIGHLIGHTS - Year Ended Adjusted for Special Items by Region (Dollars in Millions) Year Ended December 31, 2000 ------------------------------- GMNA GME GMLAAM GMAP ----- ------ ------ ------ Reported -------- Total net sales and revenues $112,723 $25,358 $5,713 $3,606 ------- ------ ----- ----- Pre-tax income/(loss) $4,464 $(894) $(155) $(21) Income tax expense/(benefit) 1,218 (209) (122) 17 Equity income/(loss) and minority interests (72) 9 59 (195) ------ ----- ----- --- Net income/(loss) $3,174 $(676) $26 $(233) ====== ===== ===== === Net profit/(loss) margin 2.8% (2.7%) 0.5% (6.5%) Effective income tax rate 27.3% 23.4% 78.7% (81.0%) LESS: Special Items (2) ------------------- Total net sales and revenues $(695) $- $- $- ----- ----- ----- --- Pre-tax (loss) $(1,984) $(619) $- $- Income tax (benefit) (751) (200) - - Equity income/(loss) and minority interests - - - - ----- ----- ----- --- Net (loss) $(1,233) $(419) $- $- ===== ===== ===== === Adjusted (1) -------- Total net sales and revenues $113,418 $25,358 $5,713 $3,606 ------- ------ ----- ----- Pre-tax income/(loss) $6,448 $(275) $(155) $(21) Income tax expense/(benefit) 1,969 (9) (122) 17 Equity income/(loss) and minority interests (72) 9 59 (195) ----- ----- ----- --- Net income/(loss) $4,407 $(257) $26 $(233) ===== ===== ===== === Net profit/(loss) margin 3.9% (1.0%) 0.5% (6.5%) Effective income tax rate 30.5% 3.3% 78.7% (81.0%) See footnotes beginning on page 27. continues - 24 - HIGHLIGHTS - Year Ended Adjusted for Special Items by Region (Dollars in Millions) Year Ended December 31, 1999 ------------------------------- GMNA GME GMLAAM GMAP ----- ------ ------ ------ Reported -------- Total net sales and revenues $111,935 $26,225 $4,709 $3,187 ------- ------ ----- ----- Pre-tax income/(loss) $7,248 $642 $(266) $(76) Income tax expense/(benefit) 2,361 220 (156) (7) Equity income/(loss) and minority interests (30) 1 29 (149) ----- ----- ----- --- Net income/(loss) $4,857 $423 $(81) $(218) ===== ===== ===== === Net profit/(loss) margin 4.3% 1.6% (1.7%) (6.8%) Effective income tax rate 32.6% 34.3% 58.6% 9.2% LESS: Special Items (3) ------------------- Total net sales and revenues $ - $ - $ - $ - ----- ----- ----- --- Pre-tax income $415 $- $- $- Income tax expense 158 - - - Equity income/(loss) and minority interests - - - - ----- ----- ----- --- Net income $257 $- $- $- ===== ===== ===== === Adjusted (1) -------- Total net sales and revenues $111,935 $26,225 $4,709 $3,187 ------- ------ ----- ----- Pre-tax income/(loss) $6,833 $642 $(266) $(76) Income tax expense/(benefit) 2,203 220 (156) (7) Equity income/(loss) and minority interests (30) 1 29 (149) ----- ----- ----- --- Net income/(loss) $4,600 $423 $(81) $(218) ===== ===== ===== === Net profit/(loss) margin 4.1% 1.6% (1.7%) (6.8%) Effective income tax rate 32.2% 34.3% 58.6% 9.2% See footnotes beginning on page 27. continues - 25 - HIGHLIGHTS - Year Ended Operating Information Year Ended December 31, ---------------------- 2000 1999 --------- ---------- Worldwide Wholesale Sales (units in 000s) United States: Cars 2,514 2,620 Trucks 2,517 2,587 ------ ------ Total United States 5,031 5,207 Canada and Mexico 744 667 ------ ------ Total GM North America 5,775 5,874 ------ ------ GME 1,879 1,968 GMLAAM 634 523 GMAP 458 421 ------ ------ Total International 2,971 2,912 ------ ------ Total Worldwide 8,746 8,786 ====== ====== .................................................... Vehicle Unit Deliveries (units in 000s) United States Chevrolet - Cars 891 885 - Trucks 1,725 1,725 Pontiac 613 616 GMC 529 542 Buick 405 446 Oldsmobile 289 352 Saturn 272 233 Cadillac 189 179 Other 40 39 ------ ------ Total United States 4,953 5,017 Canada and Mexico 707 683 ------ ------ Total GM North America 5,660 5,700 ------ ------ GME 1,855 1,970 GMLAAM 603 536 GMAP 473 468 ------ ------ Total International 2,931 2,974 ------ ------ Total Worldwide 8,591 8,674 ====== ====== .................................................... Market share United States Cars 28.6% 29.8% Trucks 27.0% 27.8% Total 27.8% 28.8% Total North America 27.5% 28.5% Total Europe 9.3% 9.7% Latin America (4) 20.4% 19.9% Asia and Pacific 3.7% 3.9% Total Worldwide 15.1% 15.6% ..................................................... U.S. Retail/Fleet Mix % Fleet Sales - Cars 27.3% 26.4% % Fleet Sales - Trucks 14.8% 13.2% Total vehicles 21.2% 20.0% ..................................................... Days Supply of Inventory - U.S. Cars 116 93 Trucks 132 85 ..................................................... Capacity Utilization % U.S. and Canada (2-shift rated) 89.4% 91.1% .................................................... GMNA Net Price (%) (0.7%) (0.3%) .................................................... See footnotes beginning on page 27. continues - 26 - HIGHLIGHTS - Year Ended Other Financial Information (Dollars in Millions) Year Ended December 31, ---------------------- 2000 1999 --------- ---------- Automotive, Comm. Services, and Other Operations: Depreciation $4,368 $4,155 Amortization of special tools 2,753 2,492 Amortization of intangible assets 308 226 ----- ----- Total $7,429 $6,873 ===== ===== .................................................... Worldwide Payrolls $21,595 $21,827 .................................................... (1) Adjusted amounts represent the reported amounts less the effects of special items. (2) Special items for 2000 are detailed on page 17. (3) Special items for 1999 are detailed on page 18. (4) Latin America excludes the Middle East and Africa. (5) The 1999 earnings per share and book value per share were adjusted to reflect the three-for-one stock split of the GM Class H common stock, in the form of a 200% stock dividend, paid on June 30, 2000. (6) Excludes the effects of purchase accounting adjustments related to General Motors' acquisition of Hughes in 1985, and excludes Hughes Series A Preferred Stock dividends payable to General Motors. - 27 - CONSOLIDATED STATEMENTS OF INCOME Three Months Ended December 31, ------------------------------- 2000 1999 ---- ---- (Dollars in Millions Except Per Share Amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues $46,341 $46,262 ------- ------ Cost of sales and other expenses 36,776 36,447 Selling, general, and administrative expenses 6,648 5,884 Interest expense 2,486 2,126 ------ ------ Total costs and expenses 45,910 44,457 ------ ------ Income from continuing operations before income taxes and minority interests 431 1,805 Income tax expense 245 580 Equity income/(loss) and minority interests (97) (80) ----- ----- Income from continuing operations 89 1,145 Income (loss) from discontinued operations - - ----- ----- Net income 89 1,145 Dividends on preference stocks (27) (29) ----- ------ Earnings attributable to common stocks $62 $1,116 == ===== Basic earnings (losses) per share attributable to common stocks $1-2/3 par value Continuing operations $(1.14) $1.90 Discontinued operations - - ------ ------ Earnings per share attributable to $1-2/3 par value $(1.14) $1.90 ====== ==== Earnings per share attributable to Class H $0.80 $(0.19) ==== ==== Earnings (losses) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing operations $(1.16) $1.86 Discontinued operations - - ------ ------ Earnings per share attributable to $1-2/3 par value $(1.16) $1.86 ==== ==== Earnings per share attributable to Class H $0.76 $(0.19) ==== ==== - 28 - CONSOLIDATED STATEMENTS OF INCOME - continued Three Months Ended December 31, -------------------------------- 2000 1999 ---- ---- (Dollars in Millions) AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS Total net sales and revenues $39,960 $40,921 ------ ------ Cost of sales and other expenses 34,895 34,707 Selling, general, and administrative expenses 4,942 4,676 ------ ------ Total costs and expenses 39,837 39,383 ------ ------ Interest expense 167 231 Net expense from transactions with Financing and Insurance Operations 174 63 ------ ------ (Loss) Income from continuing operations before income taxes and minority interests (218) 1,244 Income tax expense 10 368 Equity income/(loss) and minority interests (92) (77) ----- ----- (Loss) income from continuing operations (320) 799 Income (loss) from discontinued operations - - ----- ----- Net (loss) income - Automotive, Communications Services, and Other Operations $(320) $799 ===== === Three Months Ended December 31, -------------------------------- 2000 1999 ---- ---- (Dollars in Millions) FINANCING AND INSURANCE OPERATIONS Total revenues $6,381 $5,341 ----- ----- Interest expense 2,319 1,895 Depreciation and amortization expense 1,502 1,527 Operating and other expenses 1,658 1,166 Provisions for financing and insurance losses 427 255 ---- ----- Total costs and expenses 5,906 4,843 ----- ----- Net income from transactions with Automotive, Communications Services, and Other Operations (174) (63) ----- ---- Income before income taxes and minority interests 649 561 Income tax expense 235 212 Equity income/(loss) and minority interests (5) (3) ----- ---- Net income - Financing and Insurance Operations $409 $346 === === - 29 - CONSOLIDATED STATEMENTS OF INCOME - continued Years Ended December 31, --------------------------------- 2000 1999 1998 ---- ---- ---- (Dollars in Millions Except Per Share Amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues $184,632 $176,558 $155,445 ------- ------- ------- Cost of sales and other expenses 145,664 140,708 127,785 Selling, general, and administrative expenses 22,252 19,053 16,087 Interest expense 9,552 7,750 6,629 ------- ------- ------- Total costs and expenses 177,468 167,511 150,501 ------- ------- ------- Income from continuing operations before income taxes and minority interests 7,164 9,047 4,944 Income tax expense 2,393 3,118 1,636 Equity income/(loss) and minority interests (319) (353) (259) ------ ------ ------- Income from continuing operations 4,452 5,576 3,049 Income (loss) from discontinued operations - 426 (93) ------ ------ ------- Net income 4,452 6,002 2,956 Dividends on preference stocks (110) (80) (63) ------ ------- ------- Earnings attributable to common stocks $4,342 $5,922 $2,893 ===== ===== ===== Basic earnings (losses) per share attributable to common stocks $1-2/3 par value Continuing operations $6.80 $8.70 $4.40 Discontinued operations - 0.66 (0.14) ----- ---- ---- Earnings per share attributable to $1-2/3 par value $6.80 $9.36 $4.26 ==== ==== ==== Earnings per share attributable to Class H $0.56 $(0.26) $0.23 ==== ==== ==== Earnings (losses) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing operations $6.68 $8.53 $4.32 Discontinued operations - 0.65 (0.14) ---- ---- ---- Earnings per share attributable to $1-2/3 par value $6.68 $9.18 $4.18 ==== ==== ==== Earnings per share attributable to Class H $0.55 $(0.26) $0.23 ==== ==== ==== - 30 - CONSOLIDATED STATEMENTS OF INCOME - concluded Years Ended December 31, --------------------------------- 2000 1999 1998 ---- ---- ---- (Dollars in Millions) AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS Total net sales and revenues $160,627 $156,107 $137,161 ------- ------- ------- Cost of sales and other expenses 138,303 134,111 121,491 Selling, general, and administrative expenses 16,246 14,324 11,918 ------- ------- ------- Total costs and expenses 154,549 148,435 133,409 ------- ------- ------- Interest expense 815 828 786 Net expense from transactions with Financing and Insurance Operations 682 308 82 ------ ------ ------- Income from continuing operations before income taxes and minority interests 4,581 6,536 2,884 Income tax expense 1,443 2,167 1,018 Equity income/(loss) and minority interests (299) (327) (239) ----- ----- ----- Income from continuing operations 2,839 4,042 1,627 Income (loss) from discontinued operations - 426 (93) ----- ----- ----- Net income - Automotive, Communications Services, and Other Operations $2,839 $4,468 $1,534 ===== ===== ===== Years Ended December 31, --------------------------------- 2000 1999 1998 ---- ---- ---- (Dollars in Millions) FINANCING AND INSURANCE OPERATIONS Total revenues $24,005 $20,451 $18,284 ------ ------ ------ Interest expense 8,737 6,922 5,843 Depreciation and amortization expense 5,982 5,445 4,920 Operating and other expenses 5,805 4,595 4,067 Provisions for financing and insurance losses 1,580 1,286 1,476 ------ ------ ------ Total costs and expenses 22,104 18,248 16,306 ------ ------ ------ Net income from transactions with Automotive, Communications Services, and Other Operations (682) (308) (82) ------ ------ ------ Income before income taxes and minority interests 2,583 2,511 2,060 Income tax expense 950 951 618 Equity income/(loss) and minority interests (20) (26) (20) ------ ------ ------ Net income - Financing and Insurance Operations $1,613 $1,534 $1,422 ===== ===== ===== - 31 - CONSOLIDATED BALANCE SHEETS December 31, GENERAL MOTORS CORPORATION AND SUBSIDIARIES 2000 1999 ---- ---- ASSETS (Dollars in Millions) Automotive, Communications Services, and Other Operations Cash and cash equivalents $9,119 $9,730 Marketable securities 1,161 1,698 ------- ------- Total cash and marketable securities 10,280 11,428 Accounts and notes receivable (less allowances) 5,835 5,093 Inventories (less allowances) 10,945 10,638 Equipment on operating leases (less accumulated depreciation) 5,699 5,744 Deferred income taxes and other current assets 8,388 9,006 ------- ------- Total current assets 41,147 41,909 Equity in net assets of nonconsolidated associates 3,410 1,711 Property - net 33,977 32,779 Intangible assets - net 7,622 8,527 Deferred income taxes 14,870 15,277 Other assets 32,243 25,358 ------- ------- Total Automotive, Communications Services, and Other Operations assets 133,269 125,561 Financing and Insurance Operations Cash and cash equivalents 1,165 712 Investments in securities 9,595 9,110 Finance receivables - net 92,415 80,627 Investment in leases and other receivables 36,752 36,407 Other assets 27,846 21,312 Net receivable from Automotive, Comm. Serv., and Other Operations 1,971 1,001 ------- ------- Total Financing and Insurance Operations assets 169,744 149,169 ------- ------- Total assets $303,013 $274,730 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Automotive, Communications Services, and Other Operations Accounts payable (principally trade) $18,309 $17,254 Loans payable 2,208 1,991 Accrued expenses 33,252 32,854 Net payable to Financing and Insurance Operations 1,971 1,001 ------ ------- Total current liabilities 55,740 53,100 Long-term debt 7,410 7,415 Postretirement benefits other than pensions 34,306 34,166 Pensions 3,480 3,339 Other liabilities and deferred income taxes 15,768 17,426 ------- ------- Total Automotive, Communications Services, and Other Operations liabilities 116,704 115,446 Financing and Insurance Operations Accounts payable 8,169 4,262 Debt 134,284 122,282 Other liabilities and deferred income taxes 12,922 11,282 -------- -------- Total Financing and Insurance Operations liabilities 155,375 137,826 Minority interests 707 596 General Motors - obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated debentures of General Motors Series D - 79 Series G 139 139 Stockholders' equity $1-2/3 par value common stock (issued, 548,148,622 and 619,412,233 shares) 914 1,033 Class H common stock (issued, 875,286,559 and 411,345,561 shares) 88 14 Capital surplus (principally additional paid-in capital) 21,020 13,794 Retained earnings 10,119 6,961 ------ ------- Subtotal 32,141 21,802 Accumulated foreign currency translation adjustments (2,589) (2,033) Net unrealized gains on securities 581 996 Minimum pension liability adjustment (45) (121) ---------- --------- Accumulated other comprehensive loss (2,053) (1,158) -------- -------- Total stockholders' equity 30,088 20,644 -------- -------- Total liabilities and stockholders' equity $303,013 $274,730 ======= ======= - 32 - CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Years Ended December 31, ------------------------------------------------------------------------------------------ 2000 1999 1998 ------------------------------------------------------------------------------------------ Automotive, Financing Automotive, Financing Automotive, Financing Comm.Serv., and Comm.Serv., and Comm.Serv., and and Other Insurance and Other Insurance and Other Insurance ----------- --------- ----------- --------- ----------- --------- Cash flows from operating activities (Dollars in Millions) Income from continuing operations $2,839 $1,613 $4,042 $1,534 $1,627 $1,422 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization expenses 7,429 5,982 6,873 5,445 6,227 4,920 Postretirement benefits other than pensions, net of payments and VEBA contributions 772 27 (1,057) 21 157 31 Pension expense, net of contributions 128 - (808) - 223 - Originations and purchases of mortgage loans - (51,202) - (53,006) - (54,433) Proceeds on sales of mortgage loans - 51,444 - 55,777 - 51,582 Originations and purchases of mortgage securities - (1,571) - (1,309) - (2,237) Proceeds on sales of mortgage securities - 994 - 1,545 - 849 Change in other investments and miscellaneous assets 1,154 (1,692) 522 (127) (162) 932 Change in other operating assets and liabilities 724 3,257 7,523 (23) 90 1,468 Other (2,175) 780 (951) 944 581 1,066 ------ ----- ------ ------ ----- ----- Net cash provided by operating activities 10,871 9,632 16,144 10,801 8,743 5,600 ------ ----- ------ ------ ----- ----- Cash flows from investing activities Expenditures for property (9,200) (522) (7,061) (323) (7,952) (279) Investments in marketable securities - acquisitions (2,520) (24,599) (4,149) (21,257) (13,010) (21,152) Investments in marketable securities - liquidations 3,056 24,113 2,886 20,593 16,272 21,688 Mortgage servicing rights - acquisitions - (1,096) - (1,424) - (1,862) Mortgage servicing rights - liquidations - 12 - 35 - 80 Finance receivables - acquisitions - (214,666) - (186,379) - (155,613) Finance receivables - liquidations - 143,242 - 130,293 - 114,662 Proceeds from sales of finance receivables - 58,369 - 48,178 - 27,681 Operating leases - acquisitions (6,709) (15,174) (6,415) (16,750) (6,397) (17,128) Operating leases - liquidations 6,149 9,844 4,243 7,836 5,609 9,777 Investments in companies, net of cash acquired (4,302) (2,077) (2,706) (2,402) (971) (173) Net investing activity with Financing and Insurance Operations (1,069) - 75 - 338 - Other 3,282 94 (924) 732 (889) (242) ------ ------ ------- ------ ------ ------- Net cash used in investing activities (11,313) (22,460) (14,051) (20,868) (7,000) (22,561) ------ ------ ------ ------ ----- ------- Cash flows from financing activities Net increase (decrease) in loans payable 142 6,970 140 (2,500) (94) 8,280 Long-term debt - borrowings 5,279 22,414 9,090 26,471 2,937 21,098 Long-term debt - repayments (6,196) (16,196) (8,281) (13,078) (1,492) (11,377) Net financing activity with Automotive, Communications Services, and Other Operations - 1,069 - (75) - (338) Repurchases of common and preference stocks (1,613) - (3,870) - (3,089) - Proceeds from issuing common and preference stocks 2,792 - 2,090 - 343 - Cash dividends paid to stockholders (1,294) - (1,367) - (1,388) - ----- ------ ----- ------ ----- ------ Net cash (used in) provided by financing activities (890) 14,257 (2,198) 10,818 (2,783) 17,663 --- ------ ----- ------ ----- ------ Effect of exchange rate changes on cash and cash equivalents (249) (6) (206) - 315 2 Net transactions with Automotive /Financing Operations 970 (970) 185 (185) 1,135 (1,135) --- --- --- ---- ----- ----- Net cash (used in) provided by continuing operations (611) 453 (126) 566 410 (431) Net cash provided by (used in) discontinued operations - - 128 - (378) - --- --- --- ---- --- ----- Net increase (decrease) in cash and cash equivalents (611) 453 2 566 32 (431) Cash and cash equivalents at beginning of the year 9,730 712 9,728 146 9,696 577 ----- ----- ----- --- ----- --- Cash and cash equivalents at end of the year $9,119 $1,165 $9,730 $712 $9,728 $146 ===== ===== ===== === ===== ===
* * * * * * * - 33 - HUGHES Reports 21-Percent Revenue Growth In Fourth Quarter 2000 A Record 1 Million Gross New U.S. Customers Purchase DIRECTV(R) Systems During the Quarter El Segundo, Calif., January 16, 2001 -- HUGHES Electronics Corporation, the world's leading provider of digital television entertainment, satellite services and satellite-based private business networks, today reported fourth quarter 2000 revenues increased 21.3% to $2,059.0 million, compared with $1,698.0 million in the fourth quarter of 1999. EBITDA(1) for the quarter increased to $153.8 million and EBITDA margin(1) was 7.5%, compared to an EBITDA loss of $173.0 million in the fourth quarter of 1999. "Our growth continues to be driven by unprecedented demand for the DIRECTV service in both the United States and Latin America," said Michael T. Smith, HUGHES chairman and chief executive officer. "In fact, on a gross basis, more than 1 million new customers bought DIRECTV systems in the United States during the quarter--a clear indication that demand for DIRECTV continues to be strong." As a result of this continued strong demand, DIRECTV added a record 527,000 net subscribers in the United States in the quarter. In addition, DIRECTV ended the quarter with a unique backlog--supplementary to the company's normal pending accounts--of more than 110,000 customers who purchased DIRECTV systems and scheduled a professional installation. Installation capacity was impeded by the worst weather in years for many parts of the country and the record demand for multi-receiver DIRECTV systems, which require significantly more time for installation. "With the addition of over 3.4 million gross subscribers in 2000, DIRECTV achieved its strongest annual growth in history," Smith continued. "And this year, we will continue to fuel growth with new product introductions, including DIRECTV with UltimateTV, the DIRECTV/AOLTV receiver, DIRECTV BROADBAND Powered by DirecPC and a bundled DIRECTV/Telocity high-speed Internet DSL offering. We will be the only provider in the country to offer these combination television/Internet services, and we are confident they will resonate with consumers and add to our ability to retain customers." EBITDA for the quarter increased to $153.8 million and EBITDA margin was 7.5%, compared to an EBITDA loss of $173.0 million in the fourth quarter of 1999. The 1999 EBITDA loss included a one-time fourth quarter pre-tax charge of $272 million related to the discontinuation of certain narrowband wireless businesses at HUGHES Network Systems (HNS). Excluding the wireless charge, EBITDA increased 55.4% from $99.0 million in the fourth quarter of 1999. This increase was principally due to one-time favorable adjustments to corporate expenditures primarily related to pension and other employee costs, and higher EBITDA at DIRECTV U.S. generated principally from its larger subscriber base. These were partially offset by increased investments in new businesses such as Hughes Network Systems's DirecPC(R) business and PanAmSat's Net-36(TM) broadband Internet initiative. HUGHES had fourth quarter 2000 earnings(2) of $1,058.8 million, compared to a loss(2) of $226.7 million in the same period for 1999. The increase was primarily due to a one-time fourth quarter 2000 after-tax gain of $1,132.3 million related to the sale of HUGHES' satellite manufacturing businesses and the aforementioned increases in EBITDA. These were partially offset by increased depreciation and amortization expense resulting from the mid-1999 United States Satellite Broadcasting (USSB) and Primestar transactions, and the expanded PanAmSat satellite fleet, as well as lower equity losses related to the discontinuation of the DIRECTV Japan business. - 34 - Full-Year 2000 Financial review Year-end 2000 revenues increased 31.1% to $7,287.6 million, compared to $5,560.3 million in 1999. This increase was primarily due to continued record subscriber growth at DIRECTV in the United States and Latin America, additional revenues resulting from the USSB and Primestar transactions, and higher outright sales and sales-type leases of transponders at PanAmSat. EBITDA for the year more than doubled to $594.0 million and EBITDA margin was 8.2%, compared to EBITDA of $264.4 million and EBITDA margin of 4.8% in 1999. The increase in EBITDA was primarily attributable to the 1999 wireless charge. Excluding the charge, EBITDA increased 10.7% from $536.4 million in 1999. This increase was primarily due to lower corporate expenses primarily related to pension and other employee costs, and higher outright sales and sales-type leases of transponders at PanAmSat. These were partially offset by increased investments in DirecPC and Spaceway(TM), and higher marketing expenses associated with the record subscriber growth at DIRECTV Latin America. Earnings(2) for 2000 totaled $829.9 million, compared to a loss(2) of $270.3 million in 1999. The increase was primarily due to the $1,132.3 million after-tax gain resulting from the sale of HUGHES' satellite manufacturing businesses and the previously discussed increase in EBITDA. These gains were partially offset by increased depreciation and amortization resulting from the mid-1999 USSB and Primestar transactions and the expanded PanAmSat satellite fleet, and higher net interest expense. Additionally, in the first quarter of 2000, Hughes booked a one-time pre-tax charge of $171 million (reported in "Other, net") related to its agreement with SkyPerfecTV! and the discontinuation of the DIRECTV Japan business. The after-tax impact of this charge was a loss of $13 million, which includes the tax benefits associated with the write-off of Hughes' historical investments in DIRECTV Japan. Segment Financial Review Fourth Quarter 2000 Direct-To-Home Broadcast Fourth quarter revenues for the segment increased 25.3% to $1,520.5 million from $1,213.6 million in the fourth quarter of 1999. The segment had EBITDA of $16.4 million compared with negative EBITDA of $23.6 million in the fourth quarter of 1999. United States: DIRECTV reported that quarterly revenues grew 23% to $1,351 million, compared with revenues of $1,100 million in the fourth quarter of 1999. The increase was principally due to the continued strong subscriber growth. DIRECTV added a record 527,000 net subscribers to its DIRECTV service in the quarter versus 515,000 net subscribers added in the fourth quarter of 1999. In the fourth quarter 2000, DIRECTV also had a backlog of more than 110,000 additional customers who purchased DIRECTV equipment and scheduled a professional installation through the DIRECTV Home Services Network. This backlog was in addition to DIRECTV's normal pending accounts. The unusually large backlog resulted from severe winter storms in many parts of the country and the particularly strong demand for DIRECTV systems with two or more set-top boxes, which require significantly more time for installation. For the full-year, DIRECTV had its best year ever with 1,834,000 net high-power subscriber additions in 2000, a 14% improvement over the 1,606,000 net subscribers added in 1999. As of December 31, 2000, DIRECTV had a total of 9.5 million subscribers in the United States. EBITDA for the fourth quarter of 2000 more than doubled to $59 million, compared to EBITDA of $27 million in the previous year's fourth quarter. This improvement resulted from the higher EBITDA attained from the larger subscriber base, which more than offset the higher marketing costs associated with the record subscriber growth in the quarter. Latin America: DIRECTV Latin America generated $169 million in revenues for the quarter, up 66% over the $102 million reported in the fourth quarter of 1999. This increase was due to continued strong subscriber growth. - 35 - DIRECTV Latin America added a record 168,000 net subscribers in the fourth quarter of 2000, a 24% increase over the 136,000 acquired in the same period last year. In 2000--DIRECTV's best year ever in Latin America--the service added 501,000 net subscribers (57% greater than 1999), bringing the total number of subscribers in Latin America to 1,305,000 as of December 31, 2000. DIRECTV Latin America had an EBITDA loss of $43 million compared to a similar EBITDA loss of $42 million for the same period in 1999. The minimal change was primarily a result of the fact that the higher marketing costs associated with the record subscriber growth were mostly offset by the increased EBITDA generated by the larger subscriber base. Satellite Services PanAmSat, which is 81% owned by HUGHES, generated fourth quarter 2000 revenues of $202.9 million compared with $206.0 million in the prior year's period. This decline is mostly due to customer conversions from operating lease agreements to new sales-type lease agreements in 2000. PanAmSat's fourth quarter 2000 EBITDA was $136.1 million compared to $152.9 million in last year's fourth quarter. EBITDA margin in the fourth quarter of 2000 was 67.1% compared to 74.2% in the same period last year. The decrease in EBITDA and EBITDA margin was primarily due to an increase in direct operating and selling, general and administrative (SG&A) costs resulting from the company's continued fleet expansion, and increased investment in the new NET-36 broadband Internet initiative. As of December 31, 2000, PanAmSat had contracts for satellite services representing future payments (backlog) of approximately $6.0 billion compared to approximately $5.8 billion in the third quarter of 2000. The increase was due primarily to new contracts with the MultiChoice direct-to-home platform in Southern Africa, HNS's DirecPC business, Digital Choice and the Lifetime Cable Network. Network Systems Hughes Network Systems' (HNS) fourth quarter 2000 revenues were $389.5 million, compared to $386.5 million in the same period last year. HNS had a fourth quarter 2000 EBITDA loss of $34.3 million, compared to an EBITDA loss of $237.2 million in the fourth quarter of 1999. The change was largely due to the effects of the $272 million fourth quarter of 1999 charge related to the discontinuation of certain HNS wireless businesses. Excluding this charge, HNS had EBITDA of $34.8 million in the fourth quarter of 1999. This decline in EBITDA is primarily attributable to the elimination of DIRECTV equipment subsidies from DIRECTV and increased investment in DirecPC. HNS ended 2000 with a backlog of more than $500 million in its Enterprise business, an increase of 24% over 1999. This increase was due primarily to the addition of contracts with customers including Albertsons, Jack in the Box, BP Amoco Pipeline, Donato's and Outback Steakhouse. In its Consumer businesses, HNS shipped 680,000 DIRECTV receiver systems in the fourth quarter of 2000, bringing its total number of receivers shipped to more than 6 million. In the fourth quarter of 1999, HNS shipped 715,000 DIRECTV receiver systems. This decline was due to the completion of the Primestar conversion process in the third quarter 2000. Also in the fourth quarter of 2000, DirecPC launched the AOL Plus Powered By DirecPC service, signed "Powered By" distribution agreements with Earthlink and DIRECTV, and began delivering its two-way via satellite Internet access equipment. As of December 31, 2000, DirecPC served more than 50,000 consumers in the United States. BALANCE SHEET From December 31, 1999 to December 31, 2000, the Company's consolidated cash balance increased $1,269.9 million to $1,508.1 million and total debt decreased $824.8 million to $1,316.6 million. The changes were principally due to the receipt of approximately $3.1 billion in after-tax proceeds from the sale of HUGHES' satellite manufacturing businesses to The Boeing Company partially offset by cash requirements for the year related to capital expenditures for property, plant, equipment and satellites, and reduction of corporate debt. - 36 - HUGHES Electronics Corporation is a unit of General Motors Corporation. The earnings of HUGHES are used to calculate the earnings per share attributable to the General Motors Class H common stock (NYSE:GMH). A live webcast of HUGHES' fourth quarter 2000 earnings call will be available at the company's website at www.HUGHES.com. The call will begin at 2:00 p.m. ET, today. Investors are advised to allow 15 minutes prior to the call to register and download any necessary software. Following the completion of the call, the webcast will be archived on the Investor Relations portion of the HUGHES website for at least one week. Hughes invites reporters to participate in a listen-only mode on its fourth quarter 2000 analyst call at 2 p.m. ET Tuesday, January 16, 2001. The dial-in number is 719-457-2634 and the confirmation code is 585273. NOTE: HUGHES Electronics Corporation believes that some of the foregoing statements may constitute forward-looking statements. When used in this report, the words "estimate," "plan," "project," "anticipate," "expect," "intend," "outlook," "believe," and other similar expressions are intended to identify such forward-looking statements and information. Important factors that may cause actual results of HUGHES to differ materially from the forward-looking statements in this report are set forth in the Form 10-Ks filed with the SEC by GM and HUGHES. - --------------------- (1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of operating profit (loss) and depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenues. (2) Equals reported Net Income (Loss) excluding the effects of purchase accounting adjustments related to General Motors' acquisition of HUGHES in 1985. ### - 37 - STATEMENT OF OPERATIONS AND AVAILABLE SEPARATE CONSOLIDATED NET INCOME (LOSS) (Dollars in Millions) (Unaudited)
Three Months Ended Year December 31, Ended December 31, ----------------- ------------------- 2000 1999 2000 1999 - ----------------------------------------------------------------------------------------- Revenues Direct broadcast, leasing and other services $1,738.9 $1,403.8 $6,262.2 $4,550.8 Product sales 320.1 294.2 1,025.4 1,009.5 - ----------------------------------------------------------------------------------------- Total Revenues 2,059.0 1,698.0 7,287.6 5,560.3 - ----------------------------------------------------------------------------------------- Operating Costs and Expenses Broadcast programming and other costs 776.9 664.6 2,812.8 2,039.0 Cost of products sold 251.1 349.8 815.1 961.6 Selling, general and administrative expenses 877.2 856.6 3,065.7 2,295.3 Depreciation and amortization 275.0 198.8 948.1 678.9 - ----------------------------------------------------------------------------------------- Total Operating Costs and Expenses 2,180.2 2,069.8 7,641.7 5,974.8 - ----------------------------------------------------------------------------------------- Operating Loss (121.2) (371.8) (354.1) (414.5) Interest income 34.0 6.2 49.3 27.0 Interest expense (49.0) (51.7) (218.2) (122.7) Other, net 1.8 (53.5) (292.6) (149.8) - ----------------------------------------------------------------------------------------- Loss From Continuing Operations Before Income Taxes and Minority Interests (134.4) (470.8) (815.6) (660.0) Income tax benefit (51.7) (177.2) (406.1) (236.9) Minority interests in net losses of subsidiaries 22.4 9.9 54.1 32.0 - ----------------------------------------------------------------------------------------- Loss from continuing operations (60.3) (283.7) (355.4) (391.1) Income (Loss) from discontinued operations, net of taxes (14.2) 51.9 36.1 99.8 Gain on sale of discontinued operations, net of taxes 1,132.3 - 1,132.3 - - ----------------------------------------------------------------------------------------- Net Income (Loss) 1,057.8 (231.8) 813.0 (291.3) Adjustments to exclude the effect of GM purchase accounting adjustments 1.0 5.1 16.9 21.0 - ----------------------------------------------------------------------------------------- Earnings (Loss) Excluding the Effect of GM Purchase Accounting Adjustments 1,058.8 (226.7) 829.9 (270.3) Preferred stock dividends (24.1) (24.6) (97.0) (50.9) - ----------------------------------------------------------------------------------------- Earnings (Loss) Used for Computation of Available Separate Consolidated Net Income (Loss) $1,034.7 $(251.3) $732.9 $(321.2) ========================================================================================= Available Separate Consolidated Net Income (Loss) Average number of shares of General Motors Class H Common Stock outstanding (in millions) (Numerator) 874.9 408.9 681.2 374.1 Average Class H dividend base (in millions) (Denominator) 1,298.7 1,290.3 1,297.0 1,255.5 Available Separate Consolidated Net Income (Loss) $697.1 $(79.6) $384.9 $(95.7) ========================================================================================= Certain 1999 amounts have been reclassified to conform with the 2000 presentation.
- 38 - BALANCE SHEET (Dollars in Millions) December 31, 2000 December 31, ASSETS (Unaudited) 1999 - ------------------------------------------------------------------------------- Current Assets Cash and cash equivalents $1,508.1 $238.2 Accounts and notes receivable 1,253.0 960.9 Contracts in process 186.0 155.8 Inventories 338.0 236.1 Net assets of discontinued operations - 1,224.6 Deferred income taxes 89.9 254.3 Prepaid expenses and other 778.7 788.1 - ------------------------------------------------------------------------------- Total Current Assets 4,153.7 3,858.0 Satellites, net 4,230.0 3,907.3 Property, net 1,707.8 1,223.0 Net Investment in Sales-type Leases 221.1 146.1 Intangible Assets, net 7,151.3 7,406.0 Investments and Other Assets 1,815.4 2,056.6 - ------------------------------------------------------------------------------- Total Assets $19,279.3 $18,597.0 =============================================================================== LIABILITIES AND STOCKHOLDER'S EQUITY - ------------------------------------------------------------------------------- Current Liabilities Accounts payable $1,224.2 $1,062.2 Deferred revenues 137.6 130.5 Short-term borrowings and current portion of 24.6 555.4 Accrued liabilities and other 1,304.5 894.0 - ------------------------------------------------------------------------------- Total Current Liabilities 2,690.9 2,642.1 Long-Term Debt 1,292.0 1,586.0 Other Liabilities and Deferred Credits 1,647.3 1,454.2 Deferred Income Taxes 769.3 689.1 Commitments and Contingencies Minority Interests 553.7 544.3 Stockholder's Equity 12,326.1 11,681.3 - ------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $19,279.3 $18,597.0 =============================================================================== Holders of GM Class H common stock have no direct rights in the equity or assets of Hughes, but rather have rights in the equity and assets of General Motors (which includes 100% of the stock of Hughes). - 39 - SELECTED SEGMENT DATA (Dollars in Millions) (Unaudited)
Three Months Ended Year December 31, Ended December 31, --------------------- -------------------- 2000 1999 2000 1999 ------------------------------------------------------------------------------------ DIRECT-TO-HOME BROADCAST Total Revenues $ 1,520.5 $ 1,213.6 $ 5,238.0 $ 3,785.0 EBITDA (1) $ 16.4 $ (23.6) $ (24.5) $ 22.4 Operating Loss $ (147.0) $ (131.4) $ (557.9) $ (289.6) Depreciation and Amortization $ 163.4 $ 107.8 $ 533.4 $ 312.0 Capital Expenditures (2) $ 264.4 $ 263.5 $ 913.5 $ 516.9 ------------------------------------------------------------------------------------ SATELLITE SERVICES Total Revenues $ 202.9 $ 206.0 $ 1,023.6 $ 810.6 EBITDA (1) $ 136.1 $ 152.9 $ 694.0 $ 618.8 EBITDA Margin (1) 67.1% 74.2% 67.8% 76.3% Operating Profit $ 37.5 $ 79.4 $ 356.6 $ 338.3 Operating Profit Margin 18.5% 38.5% 34.8% 41.7% Depreciation and Amortization $ 98.6 $ 73.5 $ 337.4 $ 280.5 Capital Expenditures (3) $ 131.9 $ 133.4 $ 449.5 $ 956.4 ------------------------------------------------------------------------------------ NETWORK SYSTEMS Total Revenues $ 389.5 $ 386.5 $ 1,409.8 $ 1,384.7 EBITDA (1) $ (34.3) $ (237.2) $ 0.1 $ (156.7) Operating Loss $ (48.1) $ (257.2) $ (63.5) $ (234.1) Depreciation and Amortization $ 13.8 $ 20.0 $ 63.6 $ 77.4 Capital Expenditures (4) $ 128.5 $ 63.8 $ 369.5 $ 175.0 ------------------------------------------------------------------------------------ ELIMINATIONS and OTHER Total Revenues $ (53.9) $ (108.1) $ (383.8) $ (420.0) EBITDA (1) $ 35.6 $ (65.1) $ (75.6) $ (220.1) Operating Profit (Loss) $ 36.4 $ (62.6) $ (89.3) $ (229.1) Depreciation and Amortization $ (0.8) $ (2.5) $ 13.7 $ 9.0 Capital Expenditures $ (14.1) $ 59.2 $ (16.4) $ 17.0 ------------------------------------------------------------------------------------ TOTAL Total Revenues $ 2,059.0 $ 1,698.0 $ 7,287.6 $ 5,560.3 EBITDA (1) $ 153.8 $ (173.0) $ 594.0 $ 264.4 EBITDA Margin (1) 7.5% N/A 8.2% 4.8% Operating Loss $ (121.2) $ (371.8) $ (354.1) $ (414.5) Depreciation and Amortization $ 275.0 $ 198.8 $ 948.1 $ 678.9 Capital Expenditures $ 510.7 $ 519.9 $ 1,716.1 $ 1,665.3 ==================================================================================== Certain 1999 amounts have been reclassified to conform with the 2000 presentation. (1)EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of operating profit (loss) and depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenues. (2)Includes expenditures related to satellites amounting to $35.0 million, $46.9 million, $108.2 million and $136.0 million, respectively. (3)Includes expenditures related to satellites amounting to $105.6 million, $124.0 million, $364.4 million and $532.8 million, respectively. Also included in the 1999 amount is $369.5 million, related to the early buy-out of satellite sale-leasebacks. (4)Includes expenditures related to satellites amounting to $99.8 million, $44.9 million, $293.0 million and $119.8 million, respectively.
- 40 - ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibit Exhibit 3(ii) The By-Laws of General Motors Corporation, were amended on October 3, 2000, reflecting amendments to the first sentence of the second paragraph of Section 3.1 of Article III; adding a sentence after the final sentence of the second paragraph of Section 3.1 of Article III; amending the beginning of the first sentence of Section 3.2 of Article III, and amending the last sentence of Section 3.2 of Article III as described below: These changes supersede the amendments to the By-Laws that were filed on October 12, 2000, also dated October 3, 2000. Section Amendment ------- --------- 3.1 Committees of the Board of Directors. Paragraph 2, First sentence The standing committees of the -------- board shall include the investment funds committee, the audit committee, the executive compensation committee, the public policy committee, the committee on director affairs, and the capital stock committee. --------------------------- 3.1 Committees of the Board of Directors. Paragraph 2, Final sentence added The board of directors may establish by resolution, adopted by a majority of the whole board, an administrative committee with the authority and responsibility to act on behalf of the board with regard to matters submitted to the board that, pursuant to any statement of delegation of authority adopted by the board from time to time, do not constitute issues within the sole jurisdiction of the board or any committee thereof and are not otherwise significant. 3.2 Election and Vacancies. First sentence The members and chairmen of each committee described in Section 3.4 through -------------------------------------------- 3.9 below shall be elected annually by the --------- board of directors at its first meeting after each annual meeting of stockholders or at any other time the board of directors shall determine. 3.2 Election and Vacancies. Final sentence No officer or other employee of the corporation shall be a member of any committee of the board described in Section -------------------- 3.5 through 3.9 below. --------------------- - 41 - SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GENERAL MOTORS CORPORATION -------------------------- (Registrant) Date January 17, 2001 ----------------- By s/Peter R. Bible ------------------------------- (Peter R. Bible, Chief Accounting Officer) - 42 - -----END PRIVACY-ENHANCED MESSAGE-----