8-K 1 gmq403er012004.txt GMC'S FOURTH QUARTER 2003 EARNINGS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549-1004 =============================================================================== FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) January 20, 2004 GENERAL MOTORS CORPORATION (Exact Name of Registrant as Specified in its Charter) STATE OF DELAWARE 38-0572515 (State or other jurisdiction of (I.R.S. Employer Incorporation or Organization) 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 ITEM 12. Disclosure of information on financial conditions On January 20, 2004, 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 Quarterly Report on Form 10-Q. The following is the fourth quarter earnings release for GM. GM Earns $3.8 Billion, or $7.14 Per Share in 2003 -- Adjusted EPS of $5.62 Fourth Quarter Earnings $1.0 Billion, or $2.13 Per Share -- Adjusted EPS of $1.47 GMAC Posts Ninth Straight Year of Earnings Growth GM Generated More Than $32 Billion in Cash in 2003 DETROIT - General Motors Corp. (NYSE: GM) today reported 2003 consolidated net income of $3.8 billion, or $7.14 per diluted share of common stock, compared with $1.7 billion, or $3.35 per share, in 2002. Revenue rose 4.6 percent to $185.5 billion from $177.3 billion in 2002, which is restated to exclude Hughes Electronics. GM's adjusted income, which excludes special items and results from Hughes Electronics, totaled $3.2 billion, or $5.62 per share, in 2003, compared with $3.9 billion, or $6.98 per share in 2002. FOURTH QUARTER 2003 In the fourth quarter of 2003, General Motors reported consolidated net income of $1.0 billion, or $2.13 per share, compared with $1.0 billion, or $1.71 per share, in the fourth quarter of 2002. Revenue rose 7.7 percent to $49.1 billion from $45.6 billion in the fourth quarter of 2002. Excluding special items and Hughes, GM earned $838 million, or $1.47 per share, in the fourth quarter of 2003, compared with $934 million, or $1.67 per share, in the year ago period. GM's fourth-quarter-2003 results reflect various special items with a net favorable effect of $339 million, or $0.72 per share. These special items include a net gain of $1.2 billion associated with the split-off of Hughes Electronics from GM and related sale of Hughes stock to News Corp., and a positive adjustment of $103 million to previous accruals for excess employees at certain North American facilities. These items were partially offset by a charge of $725 million for the cost of lump-sum payments and vehicle-discount vouchers to retirees as provided for in the 2003 United Auto Workers (UAW) labor contract, and additional restructuring actions at GM Europe totaling $218 million. GM's 2003 results reflect increased dilution primarily attributable to the status of employee stock options, which reduced earnings per share by approximately $0.03 in the fourth quarter of 2003 and $0.08 in calendar year 2003. GM's 2003 results also include preliminary earnings from Hughes Electronics (NYSE: HS). Hughes, now an independent, publicly traded company, will report financial results at a later date. GM split off Hughes Electronics and retired the GM Class H common stock on Dec. 22, 2003. GM financial results described throughout the remainder of this release exclude special items unless otherwise noted (see "Highlights"). YEAR IN REVIEW "GM reported solid overall results in 2003, reflecting strong contributions from GMAC and our Asia Pacific automotive operations," GM Chairman and Chief Executive Officer Rick Wagoner said. "By leveraging our strengths as a global manufacturer with strong brands and great cars and trucks, we expect to improve our automotive profitability, increase revenue and build market share in 2004." 2 GM generated more than $32 billion in cash in 2003, about three times the company's original target, including more than $10 billion in cash from automotive operations, as well as proceeds from non-core asset sales and global debt offerings. GM's strong cash performance enabled the company to contribute a total of $18.5 billion to its U.S. pension plans and $3.3 billion to the Voluntary Employees' Beneficiary Associated (VEBA) Trust for retiree health-care benefits in 2003. As previously disclosed, GM contributed an additional $2.4 billion to the VEBA Trust in January 2004. "These moves considerably strengthened our balance sheet, and enabled us to end the year with our combined U.S. hourly and salaried pension plans fully funded," Wagoner said. "This was a remarkable accomplishment considering that these plans were nearly $18 billion underfunded at the start of 2003." Cash, marketable securities, and assets of the VEBA trust invested in short-term fixed-income securities totaled $26.9 billion at Dec. 31, 2003, excluding GMAC and Hughes, compared with $17.3 billion the end of 2002. GM AUTOMOTIVE OPERATIONS GM's global automotive operations earned $396 million in the fourth quarter of 2003, compared with $574 million in the year-ago quarter, excluding special items. The fourth- quarter-2003 results reflected sharply higher profits in the company's Asia Pacific operations, reduced losses in Europe, lower income in North America, and increased losses in Latin America. For all of 2003, GM's automotive operations earned $1.1 billion, compared with $2.6 billion in 2002. The deterioration in profitability is partially attributable to higher pension and health-care costs in the U.S. GM increased its global market share to 15.2 percent in the fourth quarter of 2003 from 15.1 percent the prior year. For the full year, three out of four automotive regions posted gains, although GM's global market share declined to 14.7 percent from 15.0 percent. The decline reflects primarily the mix effect of strong industry growth in Asia where GM's share is less than its global share. GM North America (GMNA) earned $397 million in the fourth quarter of 2003, compared with $644 million in the year-ago period, as lower production volumes and higher pension and health-care costs were partially offset by strong cost performance and favorable mix. For 2003, GMNA earned $1.2 billion, down from $3.1 billion in 2002. Despite strong gains in the second half of the year, GM's share of the U.S. market in 2003 was 28.0 percent compared with 28.3 percent in 2002. "While overall market share was down, we were pleased with our sales momentum in the second half of 2003 when our market share was 28.7 percent," Wagoner said. "As we continue our aggressive new-product cadence, we are optimistic about increasing market share in 2004. "Over the last few years, we have significantly improved the quality and competitive position of our vehicles," Wagoner said. "This trend continued in 2003 with Cadillac leading the way. There's still more to do, but we believe our cars and trucks are beginning to change consumer perceptions." GM Europe (GME) reported a loss of $66 million in the fourth quarter of 2003, compared with a loss of $129 million a year ago as continued material and structural cost reductions were partially offset by foreign-exchange losses, continued price pressure and unfavorable mix. For 2003, GME had a loss of $286 million, an improvement from the $549 million loss in 2002. "While we're disappointed that we fell short of our financial targets in Europe, we continue to make good progress on cost reduction," Wagoner said. "In 2004, we expect to improve our operating performance as we launch new models such as the Opel Astra, Vectra wagon and a new, small convertible." GM Asia Pacific (GMAP) earned $177 million in the fourth quarter of 2003, a significant improvement from year-ago earnings of $66 million. Continued strong performance by Shanghai GM in China and Holden in Australia, together with improved results from GM's equity alliances, contributed to GMAP's performance. For all of 2003, GMAP earned $577 million, more than three times the net income of $188 million in 2002. 3 "GM's Asia Pacific operations delivered great results in 2003, led by China and Australia," Wagoner said. "In 2003, China became the world's third-largest market, and we expect sales to continue to grow this year. GM is well positioned to participate in this growth through its joint ventures in China." GM Latin America/Africa/Mid-East (GMLAAM) reported a loss of $112 million in the fourth quarter of 2003, compared with a loss of $7 million in the year-ago period. For all of 2003, GMLAAM reported a loss of $331 million, up from a loss of $181 million in 2002. Results for 2003 in Latin America were negatively affected by weak economic conditions and an asset write-down in Brazil. GMAC GMAC reported record fourth-quarter income of $630 million in 2003, up 20 percent from the $524 million earned in the fourth quarter of 2002. All three of GMAC's business units -- Financing, Insurance and Mortgage Operations -- reported improved results during the quarter. For calendar year 2003, GMAC posted another record year with income of $2.8 billion, compared with $1.9 billion in 2002. Earnings from financing operations improved as lower credit provisions offset the negative impact of narrower net-interest margins. Insurance operations benefited from higher underwriting income and a reduction in capital losses related to its investment portfolio. Income from mortgage operations more than doubled, reflecting record originations in both the residential and commercial mortgage sectors. "GMAC had an outstanding year in 2003," Wagoner said. "In addition to delivering its ninth-straight year of earnings growth, GMAC also did a terrific job of diversifying its funding sources and supporting GM's auto sales around the globe." PROFIT SHARING General Motors also announced that its approximately 125,000 hourly employees in the United States will receive a profit-sharing payment in 2004. A typical U.S. hourly employee, eligible under the profit-sharing program, would qualify for a payment of approximately $170. LOOKING AHEAD GM expects global auto-industry sales to rise about 3 percent in 2004 to a record 60 million vehicles. In the United States, GM expects total U.S. industry vehicle sales of approximately 17.3 million. GM expects robust industry growth in Asia Pacific with moderate growth in Europe and the LAAM region. GM expects to generate $5 billion in operating cash in 2004. In addition, GM estimates that earnings in the first quarter of 2004 will be approximately $1.75 per share, excluding any special items and at current dilution levels. For the 2004 calendar year, GM's earnings target is $6.00 to $6.50 per share, excluding any special items and at current dilution levels. (The dilution calculation may be affected by the Series C Convertible Senior Debentures issued by GM in July of 2003 and due in 2033.) In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue" 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-18) 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. # # # 4 General Motors Corporation List of Special Items - After Tax (dollars in millions except per share amounts) Management believes that the adjusted information set forth herein is useful to investors as it represents how Management views the results of operations and cash of the Corporation and, therefore, is the basis on which internal evaluation metrics are determined. The internal evaluation metrics are those used by the Corporation's Board of Directors to evaluate Management. Three Months Ended Year to Date Dec. 31, 2003 Dec. 31, 2003 --------------- --------------- Net $1-2/3 Net $1-2/3 Income EPS Income EPS ------ ----- ------ ----- REPORTED Income (loss) from continuing operations $(2) $ - $2,862 $5.03 (Loss) from discontinued operations (164) (0.06) (219) (0.09) Gain on sale of discontinued operations 1,179 2.19 1,179 2.20 ----- ---- ----- ---- Net income 1,013 2.13 3,822 7.14 ADJUSTMENTS Hourly Retiree Lump Sum/ Vouchers (A) 725 1.27 725 1.28 Reserve for Idled Workers (B) (103) (0.18) (103) (0.18) GME Restructuring Charge (C) 218 0.38 218 0.38 Gain on Sale of GM Defense (D) - - (505) (0.89) Gain on sale of Hughes (1,179) (2.19) (1,179) (2.20) ----- ---- ----- ---- Subtotal (339) (0.72) (844) (1.61) ----- ---- ----- ---- ADJUSTED Income from continuing operations $838 $1.47 $3,197 $5.62 (Loss) from discontinued operations (164) (0.06) (219) (0.09) --- ---- ----- ---- Adjusted income $674 $1.41 $2,978 $5.53 === ==== ===== ==== (A) The October 2003 contract with the United Auto Workers provided for lump-sum payments and vehicle discount vouchers for retirees, accounted for in GMNA and Other. (B) The Reserve for Idled Workers primarily relates to adjustments to previously established reserves for the Janesville, Wis. Plant, accounted for in GMNA. (C) The GME Restructuring Charge relates to the initiative implemented in the fourth quarter of 2003 to improve competitiveness of GM's automotive operations in Europe. (D) The Gain on Sale of GM Defense relates to the sale of GM's light armored vehicle business to General Dynamics Corporation for net proceeds of approximately $1.1 billion. 5 General Motors Corporation List of Special Items - After Tax (dollars in millions except per share amounts) Three Months Ended Year to Date Dec. 31, 2002 Dec. 31, 2002 --------------- --------------- Net $1-2/3 Net $1-2/3 Income EPS Income EPS ------ ----- ------ ----- REPORTED Income from continuing operations $934 $1.67 $1,975 $3.51 Income(loss)from discontinued operations 86 0.04 (239) (0.16) ----- ---- ----- ---- Net income 1,020 1.71 1,736 3.35 ADJUSTMENTS Fiat Investment (A) - - 1,371 2.44 GMNA Production Footprint (B) - - 116 0.21 GME End of Life Vehicle Charge (C) - - 55 0.10 GME Restructuring Charge (D) - - 407 0.72 ----- ---- ----- ---- Subtotal - - 1,949 3.47 ----- ---- ----- ---- Adjustments to discontinued operations (E) (170) (0.09) (228) (0.13) ----- ---- ----- ---- ADJUSTED Income from continuing operations $934 $1.67 $3,924 $6.98 (Loss) from discontinued operations (84) (0.05) (467) (0.29) ----- ---- ----- ---- Adjusted income $850 $1.62 $3,457 $6.69 ===== ==== ===== ==== (A) The Write-down of Fiat Investment relates to GM's investment in Fiat Auto Holdings, B.V. and reflects completion of an impairment study relating to the carrying value of that investment, which was reduced from $2.4 billion to $220 million. (B) The GMNA Production Footprint charge primarily relates to costs associated with the transfer of commercial truck production from Janesville, Wis., to Flint, Michigan. (C) The GME End of Life Vehicle Charge relates to the European Union's directive requiring member states to enact legislation regarding end-of-life vehicles and the responsibility of manufacturers for dismantling and recycling vehicles they have sold. (D) The GME Restructuring Charge relates to the initiative implemented in the first quarter of 2002 to improve the competitiveness of GM's automotive operations in Europe. (E) Various adjustments recorded by Hughes. 6 General Motors Corporation Summary Corporate Financial Results Fourth Quarter Year to Date -------------- -------------- 2003 2002 2003 2002 ---- ---- ---- ---- (Dollars in millions except per share amounts) Total net sales and revenues $49,084 $45,584 $185,524 $177,324 Adjusted $49,084 $45,584 $184,710 $177,324 Income (loss) from continuing operations $(2) $934 $2,862 $1,975 Adjusted $838 $934 $3,197 $3,924 Income (loss) from discontinued operations $(164) $86 $(219) $(239) Adjusted (164) (84) (219) (467) Net income $1,013 $1,020 $3,822 $1,736 Adjusted $674 $850 $2,978 $3,457 Net margin from continuing operations (Income from continuing operations/Total net sales and revenues) - 2.0% 1.5% 1.1% Adjusted 1.7% 2.0% 1.7% 2.2% Earnings per share - basic $1-2/3 par value Continuing operations $ - $1.67 $5.10 $3.53 Discontinued operations $2.17 $0.04 $2.14 $(0.16) ---- ---- ---- ---- Net income $2.17 $1.71 $7.24 $3.37 Discontinued operations - Class H $(0.18) $0.06 $(0.22) $(0.21) Earnings per share - diluted $1-2/3 par value Continuing operations $ - $1.67 $5.03 $3.51 Discontinued operations $2.13 $0.04 $2.11 $(0.16) ---- ---- ---- ---- Net income $2.13 $1.71 $7.14 $3.35 Discontinued operations - Class H $(0.18) $0.06 $(0.22) $(0.21) Earnings per share - adjusted $1-2/3 par value Continuing operations $1.47 $1.67 $5.62 $6.98 Discontinued operations $(0.06) $(0.05) $(0.09) $(0.29) ---- ---- ---- ---- Net income $1.41 (1) $1.62 $5.53 $6.69 Discontinued operations - Class H $(0.12) $(0.06) $(0.16) $(0.38) GM $1-2/3 par value average shares outstanding (Mil's) Basic shares 561 560 561 560 Diluted shares 571 561 569 562 Cash dividends per share of common stocks GM $1-2/3 par value $0.50 $0.50 $2.00 $2.00 See reconciliation of adjusted financial results on pages 9 - 14 and footnotes on page 16. 7 General Motors Corporation Summary Corporate Financial Results Fourth Quarter Year to Date -------------- -------------- 2003 2002 2003 2002 ---- ---- ---- ---- Book value per share of common stocks at Dec. 31 GM $1-2/3 par value $44.96 $9.06 GM Class H N/A $1.81 AO total cash & marketable securities at Dec. 31 ($Bil's) $23.5 $14.3 Cash in short-term VEBA $3.4 $3.0 ---- ---- Total Automotive cash & marketable securities plus short-term VEBA $26.9 $17.3 ==== ==== Automotive and Other Operations ($Mil's) Depreciation $1,380 $1,023 $4,526 $3,675 Amortization of special tools 1,362 751 3,391 2,647 Amortization of intangible assets 10 - 29 1 ----- ----- ----- ----- Total $2,752 $1,774 $7,946 $6,323 ===== ===== ===== ===== See reconciliation of adjusted financial results on pages 9 - 14 and footnotes on page 16. 8 General Motors Corporation Summary Corporate Financial Results Fourth Quarter 2003 and 2002 -------------- (Dollars in millions) Total net sales and Reported Special Items Adjusted revenues -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- GMNA $30,979 $29,190 $ - $ - $30,979 $29,190 GME 7,283 6,763 - - 7,283 6,763 GMLAAM 1,919 1,342 - - 1,919 1,342 GMAP 1,540 1,180 - - 1,540 1,180 ------ ------ -- -- ------ ------ Total GMA 41,721 38,475 - - 41,721 38,475 Other 108 58 - - 108 58 ------ ------ -- -- ------ ------ Total AO 41,829 38,533 - - 41,829 38,533 ------ ------ -- -- ------ ------ GMAC 7,201 7,050 - - 7,201 7,050 Other Financing 54 1 - - 54 1 ------ ------ -- -- ------ ------ Total FIO 7,255 7,051 - - 7,255 7,051 ------ ------ -- -- ------ ------ Total net sales and revenues $49,084 $45,584 $ - $ - $49,084 $45,584 ====== ====== == == ====== ====== Income (loss) from continuing operations before income taxes and minority interest GMNA $(114) $855 $556 $ - $442 $855 GME (510) (233) 311 - (199) (233) GMLAAM (188) (6) - - (188) (6) GMAP 31 45 - - 31 45 ----- ----- --- -- ----- --- Total GMA (781) 661 867 - 86 661 Other (820) (291) 447 - (373) (291) ----- ----- ----- -- ----- --- Total AO (1,601) 370 1,314 - (287) 370 ----- ----- ----- -- ----- --- GMAC 1,002 778 - - 1,002 778 Other Financing 63 4 - - 63 4 ----- ----- -- -- ----- --- Total FIO 1,065 782 - - 1,065 782 ----- ----- -- -- ----- --- Total income (loss) from continuing operations before income taxes and minority interest $(536) $1,152 $1,314 $ - $778 $1,152 ==== ===== ===== == === ===== 9 General Motors Corporation Summary Corporate Financial Results Fourth Quarter 2003 and 2002 --------------- (Dollars in millions) Reported Special Items Adjusted -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $52 $644 $345 $- $397 $644 GME (284) (129) 218 - (66) (129) GMLAAM (112) (7) - - (112) (7) GMAP 177 66 - - 177 66 --- --- --- --- --- --- Total GMA (167) 574 563 - 396 574 Other (511) (210) 277 - (234) (210) --- --- --- --- --- --- Total AO (678) 364 840 - 162 364 --- --- --- --- --- --- GMAC 630 524 - - 630 524 Other Financing 46 46 - - 46 46 --- --- --- --- --- --- Total FIO 676 570 - - 676 570 --- --- --- --- --- --- Income (loss) from continuing operations $(2) $934 $840 $- $838 $934 Income (loss) from discontinued operations (164) 86 - (170) (164) (84) Gain on sale of discontinued operations 1,179 - (1,179) - - - ----- ----- ----- --- --- --- Net income (loss) $1,013 $1,020 $(339) $(170) $674 $850 ===== ===== === === === === Income tax expense (benefit) GMNA $(97) $246 $211 $- $114 $246 GME (151) (62) 93 - (58) (62) GMLAAM (66) 3 - - (66) 3 GMAP 18 43 - - 18 43 --- --- --- --- --- --- Total GMA (296) 230 304 - 8 230 Other (329) (114) 170 - (159) (114) --- --- --- --- --- --- Total AO (625) 116 474 - (151) 116 --- --- --- --- --- --- GMAC 283 243 - - 283 243 Other Financing 13 (42) - - 13 (42) --- --- --- --- --- --- Total FIO 296 201 - - 296 201 --- --- --- --- --- --- Income tax expense (benefit) $(329) $317 $474 $ - $145 $317 === === === === === === 10 General Motors Corporation Summary Corporate Financial Results Fourth Quarter 2003 and 2002 --------------- (Dollars in millions) Reported Special Items Adjusted -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Effective tax rate GMNA 85.1% 28.8% 38.0% - 25.8% 28.8% GME 29.6% 26.6% 30.0% - 29.1% 26.6% GMLAAM 35.1% (50.0%) - - 35.1% (50.0%) GMAP 58.1% 95.6% - - 58.1% 95.6% GMAC 28.2% 31.2% - - 28.2% 31.2% Total GM Corp. (2) 43.4% 29.3% 36.1% 41.4% 26.0% 26.0% Equity income and minority interests GMNA $69 $35 $ - $ - $69 $35 GME 75 42 - - 75 42 GMLAAM 10 2 - - 10 2 GMAP 164 64 - - 164 64 --- --- --- --- --- --- Total GMA $318 $143 $ - $ - $318 $143 === === === === === === See footnotes on page 16. 11 General Motors Corporation Summary Corporate Financial Results Year to Date 2003 and 2002 -------------- (Dollars in millions) Total net sales and Reported Special Items Adjusted revenues -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- GMNA $116,310 $115,809 $ - $ - $116,310 $115,809 GME 27,478 23,912 - - 27,478 23,912 GMLAAM 5,387 5,110 - - 5,387 5,110 GMAP 5,338 4,524 - - 5,338 4,524 ------- ------- --- -- ------- ------- Total GMA 154,513 149,355 - - 154,513 149,355 Other 1,318 895 (814) - 504 895 ------- ------- --- -- ------- ------- Total AO 155,831 150,250 (814) - 155,017 150,250 ------- ------- --- -- ------- ------- GMAC 29,625 26,841 - - 29,625 26,841 Other Financing 68 233 - - 68 233 ------- ------- --- -- ------- ------- Total FIO 29,693 27,074 - - 29,693 27,074 ------- ------- --- -- ------- ------- Total net sales and revenues $185,524 $177,324 $(814) $ - $184,710 $177,324 ======= ======= === == ======= ======= Income (loss) from continuing operations before income taxes and minority interest GMNA $915 $4,160 $556 $186 $1,471 $4,346 GME (909) (1,523) 311 726 (598) (797) GMLAAM (474) (240) - - (474) (240) GMAP 61 10 - - 61 10 ------ ----- --- ----- ----- ----- Total GMA (407) 2,407 867 912 460 3,319 Other (1,101) (3,040) (367) 2,211 (1,468) (829) ------ ----- --- ----- ----- ----- Total AO (1,508) (633) 500 3,123 (1,008) 2,490 ------ ----- --- ----- ----- ----- GMAC 4,442 3,001 - - 4,442 3,001 Other Financing 47 (30) - - 47 (30) ------ ----- --- ----- ----- ----- Total FIO 4,489 2,971 - - 4,489 2,971 ------ ----- --- ----- ----- ----- Total income from continuing operations before income taxes and minority interests $2,981 $2,338 $500 $3,123 $3,481 $5,461 ===== ===== === ===== ===== ===== 12 General Motors Corporation Summary Corporate Financial Results Year to Date 2003 and 2002 -------------- (Dollars in millions) Reported Special Items Adjusted -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $811 $2,992 $345 $116 $1,156 $3,108 GME (504) (1,011) 218 462 (286) (549) GMLAAM (331) (181) - - (331) (181) GMAP 577 188 - - 577 188 ----- ----- --- ----- ----- ----- Total GMA 553 1,988 563 578 1,116 2,566 Other (518) (1,895) (228) 1,371 (746) (524) ----- ----- --- ----- ----- ----- Total AO 35 93 335 1,949 370 2,042 ----- ----- --- ----- ----- ----- GMAC 2,793 1,870 - - 2,793 1,870 Other Financing 34 12 - - 34 12 ----- ----- --- ----- ----- ----- Total FIO 2,827 1,882 - - 2,827 1,882 ----- ----- --- ----- ----- ----- Income from continuing operations $2,862 $1,975 $335 $1,949 $3,197 $3,924 (Loss) from discontinued operations (219) (239) - (228) (219) (467) Gain on sale of discontinued operations 1,179 - (1,179) - - - ----- ----- ----- ----- ----- ----- Net income (loss) $3,822 $1,736 $(844) $1,721 $2,978 $3,457 ===== ===== === ===== ===== ===== Income tax expense (benefit) GMNA $171 $1,213 $211 $70 $382 $1,283 GME (303) (436) 93 264 (210) (172) GMLAAM (149) (76) - - (149) (76) GMAP 44 55 - - 44 55 ----- ----- --- ----- ----- ----- Total GMA (237) 756 304 334 67 1,090 Other (632) (1,134) (139) 840 (771) (294) ----- ----- --- ----- ----- ----- Total AO (869) (378) 165 1,174 (704) 796 ----- ----- --- ----- ----- ----- GMAC 1,591 1,071 - - 1,591 1,071 Other Financing 9 (49) - - 9 (49) ----- ----- --- ----- ----- ----- Total FIO 1,600 1,022 - - 1,600 1,022 ----- ----- --- ----- ----- ----- Income tax expense $731 $644 $165 $1,174 $896 $1,818 === === === ===== === ===== 13 General Motors Corporation Summary Corporate Financial Results Year to Date 2003 and 2002 -------------- (Dollars in millions) Reported Special Items Adjusted -------- ------------ -------- 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Effective tax rate GMNA 18.7% 29.2% 38.0% 37.6% 26.0% 29.5% GME 33.3% 28.6% 30.0% 36.4% 35.1% 21.6% GMLAAM 31.4% 31.7% - - 31.4% 31.7% GMAP 72.1% 550.0% - - 72.1% 550.0% GMAC 35.8% 35.7% - - 35.8% 35.7% Total GM Corp. (2) 24.5% 25.6% 33.0% 37.2% 26.0% 32.2% Equity income (loss) and minority interests GMNA $67 $45 $ - $ - $67 $45 GME 102 76 - - 102 76 GMLAAM (6) (17) - - (6) (17) GMAP 560 233 - - 560 233 --- --- -- -- --- --- Total GMA $723 $337 $ - $ - $723 $337 === === == == === === See footnotes on page 16. 14 General Motors Corporation Operating Statistics Fourth Quarter Year to Date -------------- -------------- 2003 2002 2003 2002 ---- ---- ---- ---- (units in thousands) Worldwide Wholesale Sales United States - Cars 522 535 1,961 2,103 United States - Trucks 766 754 2,971 2,832 ----- ----- ----- ----- Total United States 1,288 1,289 4,932 4,935 Canada, Mexico, and Other 196 205 675 786 ----- ----- ----- ----- Total GMNA 1,484 1,494 5,607 5,721 GME 412 420 1,657 1,645 GMLAAM 183 164 561 640 GMAP 70 92 273 405 ----- ----- ----- ----- Total Worldwide 2,149 2,170 8,098 8,411 ===== ===== ===== ===== Vehicle Unit Deliveries Chevrolet - Cars 189 161 801 747 Chevrolet - Trucks 460 466 1,855 1,896 Pontiac 123 115 476 517 GMC 153 146 579 561 Buick 79 108 337 432 Oldsmobile 30 32 126 155 Saturn 54 69 271 280 Cadillac 62 54 216 200 Other 24 23 96 71 ----- ----- ----- ----- Total United States 1,174 1,174 4,757 4,859 Canada, Mexico, and Other 169 192 683 762 ----- ----- ----- ----- Total GMNA 1,343 1,366 5,440 5,621 GME 432 411 1,821 1,765 GMLAAM 178 132 570 565 GMAP 222 165 764 674 ----- ----- ----- ----- Total Worldwide 2,175 2,074 8,595 8,625 ===== ===== ===== ===== Market Share United States - Cars 26.8% 25.5% 25.7% 25.4% United States - Trucks 30.2% 32.1% 29.9% 31.0% Total United States 28.8% 29.2% 28.0% 28.3% Total North America 28.1% 28.5% 27.4% 27.9% Total Europe 9.4% 9.2% 9.4% 9.1% Total LAAM 17.8% 15.5% 16.0% 15.7% Asia and Pacific 5.7% 4.6% 4.9% 4.6% Total Worldwide 15.2% 15.1% 14.7% 15.0% U.S. Retail/Fleet Mix % Fleet Sales - Cars 36.9% 29.7% 31.7% 28.9% % Fleet Sales - Trucks 15.6% 10.3% 13.6% 11.3% Total Vehicles 23.9% 17.9% 21.1% 18.8% Retail Lease as % of Retail Sales Total Smartlease and Smartbuy 8.5% 7.1% Days Supply of Inventory at December 31 United States - Cars 79 77 United States - Trucks 86 62 GMNA Capacity Utilization (2 shift rated) 94.3% 96.5% 89.7% 90.2% GMNA Vehicle Revenue Per Unit $19,311 $18,538 15 General Motors Corporation Operating Statistics Fourth Quarter Year to Date -------------- -------------- 2003 2002 2003 2002 ---- ---- ---- ---- GMAC's U.S. Cost of Borrowing 3.30% 3.93% Current Debt Spreads Over U.S. Treasuries 2 Year 120 bp 330 bp 5 Year 140 bp 335 bp 10 Year 165 bp 335 bp Worldwide Employment at December 31 (in 000's) United States Hourly 118 124 United States Salary 40 41 --- --- Total United States 158 165 Canada, Mexico, and Other 32 33 --- --- GMNA 190 198 GME 62 66 GMLAAM 23 24 GMAP 14 11 GMAC 31 31 Other 5 7 --- --- Total 325 337 === === Worldwide Payrolls ($Bil's) $5.7 $5.4 $21.5 $21.0 Footnotes: --------- (1) This amount is comparable to First Call analysts' consensus. (2) Total GM Corporation effective tax rate includes Hughes operations results through December 22, 2003. 16 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended December 31, ------------------------------- 2003 2002 ---- ---- (dollars in millions except per share amounts) Total net sales and revenues $49,084 $45,584 ------ ------ Cost of sales and other expenses 41,894 37,388 Selling, general, and administrative expenses 5,053 5,196 Interest expense 2,673 1,848 ------ ------ Total costs and expenses 49,620 44,432 ------ ------ Income (loss) from continuing operations before income taxes and minority interests (536) 1,152 Income tax expense (benefit) (329) 317 Equity income and minority interests 205 99 --- ---- Income (loss) from continuing operations (2) 934 Income (loss) from discontinued operations (164) 86 Gain on sale of discontinued operations 1,179 - ----- ----- Net income $1,013 $1,020 ===== ===== Basic earnings (loss) per share attributable to common stocks $1-2/3 par value Continuing operations $ - $1.67 Discontinued operations $2.17 $0.04 ---- ---- Earnings per share attributable to $1-2/3 par value $2.17 $1.71 ==== ==== Earnings per share from discontinued operations attributable to Class H $(0.18) $0.06 ==== ==== Earnings (loss) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing operations $ - $1.67 Discontinued operations $2.13 $0.04 ---- ---- Earnings per share attributable to $1-2/3 par value $2.13 $1.71 ==== ==== Earnings per share from discontinued operations attributable to Class H $(0.18) $0.06 ==== ==== 17 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended December 31, ------------------------------- 2003 2002 ---- ---- (dollars in millions) AUTOMOTIVE AND OTHER OPERATIONS Total net sales and revenues $41,829 $38,533 ------ ------ Cost of sales and other expenses 39,157 34,870 Selling, general, and administrative expenses 3,470 3,157 Interest expense 710 48 -------- -------- Total costs and expenses 43,337 38,075 Net expense from transactions with Financing and Insurance Operations 93 88 -------- -------- Income (loss) from continuing operations before income taxes and minority interests (1,601) 370 Income tax (benefit) expense (625) 116 Equity income and minority interests 298 110 ---- ---- Income (loss) from continuing operations (678) 364 Income (loss) from discontinued operations (164) 86 Gain on sale of discontinued operations 1,179 - ----- ----- Net income - Automotive and Other Operations $337 $450 === === FINANCING AND INSURANCE OPERATIONS Total revenues $7,255 $7,051 ----- ----- Interest expense 1,963 1,800 Depreciation and amortization expense 1,464 1,432 Operating and other expenses 1,999 2,172 Provisions for financing and insurance losses 857 953 ------ ------ Total costs and expenses 6,283 6,357 Net income from transactions with Automotive and Other Operations (93) (88) ------ ----- Income before income taxes and minority interests 1,065 782 Income tax expense 296 201 Equity income (loss) and minority interests (93) (11) ----- ---- Net income - Financing and Insurance Operations $676 $570 === === 18 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, ------------------------ 2003 2002 2001 ---- ---- ---- (dollars in millions except per share amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues $185,524 $177,324 $169,051 ------- ------- ------- Cost of sales and other expenses 152,071 146,793 138,847 Selling, general, and administrative expenses 21,008 20,690 19,433 Interest expense 9,464 7,503 8,317 ------- ------- ------- Total costs and expenses 182,543 174,986 166,597 ------- ------- ------- Income from continuing operations before income taxes and minority interests 2,981 2,338 2,454 Income tax expense 731 644 1,094 Equity income (loss) and minority interests 612 281 (138) ----- ----- ----- Income from continuing operations 2,862 1,975 1,222 Loss from discontinued operations (219) (239) (621) Gain on sale of discontinued operations 1,179 - - ----- ----- ----- Net income 3,822 1,736 601 Dividends on preference stocks - (46) (99) ----- ----- ---- Earnings attributable to common stocks $3,822 $1,690 $502 ===== ===== === Basic earnings (loss) per share attributable to common stocks $1-2/3 par value Continuing operations $5.10 $3.53 $2.21 Discontinued operations $2.14 $(0.16) $(0.42) ---- ---- ---- Earnings per share attributable to $1-2/3 par value $7.24 $3.37 $1.79 ==== ==== ==== Earnings per share from discontinued operations attributable to Class H $(0.22) $(0.21) $(0.55) ==== ==== ==== Earnings (loss) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing operations $5.03 $3.51 $2.20 Discontinued operations $2.11 $(0.16) $(0.43) ---- ---- ---- Earnings per share attributable to $1-2/3 par value $7.14 $3.35 $1.77 ==== ==== ==== Earnings per share from discontinued operations attributable to Class H $(0.22) $(0.21) $(0.55) ==== ==== ==== 19 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, ------------------------ 2003 2002 2001 ---- ---- ---- (dollars in millions) AUTOMOTIVE AND OTHER OPERATIONS Total net sales and revenues $155,831 $150,250 $143,173 ------- ------- ------- Cost of sales and other expenses 143,464 138,359 130,158 Selling, general, and administrative expenses 11,863 11,749 12,430 ------- ------- ------- Total costs and expenses 155,327 150,108 142,588 ------- ------- ------- Interest expense 1,780 479 572 Net expense from transactions with Financing and Insurance Operations 232 296 435 --- --- --- (Loss) from continuing operations before income taxes and minority interests (1,508) (633) (422) Income tax (benefit) expense (869) (378) 56 Equity income (loss) and minority interests 674 348 (68) --- --- --- Income (loss) from continuing operations 35 93 (546) (Loss) from discontinued operations (219) (239) (621) Gain on sale of discontinued operations 1,179 - - ----- --- ----- Net income (loss) - Automotive and Other Operations $995 $(146) $(1,167) === === ===== FINANCING AND INSURANCE OPERATIONS Total revenues $29,693 $27,074 $25,878 ------ ------ ------ Interest expense 7,684 7,024 7,745 Depreciation and amortization expense 6,032 5,541 5,857 Operating and other expenses 8,529 8,306 7,308 Provisions for financing and insurance losses 3,191 3,528 2,527 ------ ------ ------ Total costs and expenses 25,436 24,399 23,437 ------ ------ ------ Net income from transactions with Automotive and Other Operations (232) (296) (435) ------ ------ ------ Income before income taxes and minority interests 4,489 2,971 2,876 Income tax expense 1,600 1,022 1,038 Equity income (loss) and minority interests (62) (67) (70) ----- ----- ----- Net income - Financing and Insurance Operations $2,827 $1,882 $1,768 ===== ===== ===== 20 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, ------------ 2003 2002 ---- ---- ASSETS (dollars in millions) Cash and cash equivalents $30,054 $20,320 Other marketable securities 24,715 16,825 ------ ------ Total cash and marketable securities 54,769 37,145 Finance receivables - net 172,423 133,964 Loans held for sale 19,609 15,720 Accounts and notes receivable (less allowances) 21,246 16,106 Inventories (less allowances) 10,960 9,737 Assets of discontinued operations - 18,653 Deferred income taxes 27,190 39,767 Net equipment on operating leases (less accumulated depreciation) 34,383 31,026 Equity in net assets of nonconsolidated associates 6,032 5,097 Property - net 38,211 35,956 Intangible assets - net 4,760 10,796 Other assets 58,924 15,086 ------- ------- Total assets $448,507 $369,053 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable (principally trade) $25,422 $21,138 Notes and loans payable 271,756 200,168 Liabilities of discontinued operations - 7,956 Postretirement benefits other than pensions 36,292 38,152 Pensions 8,024 22,679 Deferred income taxes 7,508 6,523 Accrued expenses and other liabilities 73,930 65,344 ------- ------- Total liabilities 422,932 361,960 Minority interests 307 279 Stockholders' equity $1-2/3 par value common stock (outstanding, 561,997,725 and 560,447,797 shares) 937 936 Class H common stock (outstanding, 958,284,272 shares in 2002) - 96 Capital surplus (principally additional paid-in capital) 15,185 21,583 Retained earnings 12,710 10,031 ------ ------ Subtotal 28,832 32,646 Accumulated foreign currency translation adjustments (1,815) (2,784) Net unrealized losses on derivatives 51 (205) Net unrealized gains on securities 660 372 Minimum pension liability adjustment (2,460) (23,215) ----- ------ Accumulated other comprehensive loss (3,564) (25,832) ----- ------ Total stockholders' equity 25,268 6,814 ------ ------- Total liabilities and stockholders' equity $448,507 $369,053 ======= ======= 21 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS December 31, ------------ GENERAL MOTORS CORPORATION AND SUBSIDIARIES 2003 2002 ---- ---- ASSETS (dollars in millions) Automotive and Other Operations Cash and cash equivalents $11,924 $12,162 Marketable securities 11,567 2,174 ------ ------ Total cash and marketable securities 23,491 14,336 Accounts and notes receivable (less allowances) 5,380 4,735 Inventories (less allowances) 10,960 9,737 Assets of discontinued operations - 18,653 Net equipment on operating leases (less accumulated depreciation) 7,173 5,305 Deferred income taxes and other current assets 10,851 9,631 ------ ------ Total current assets 57,855 62,397 Equity in net assets of nonconsolidated associates 6,032 5,097 Property - net 36,071 34,135 Intangible assets - net 1,479 7,453 Deferred income taxes 18,086 31,431 Other assets 42,262 1,461 ------- ------- Total Automotive and Other Operations assets 161,785 141,974 Financing and Insurance Operations Cash and cash equivalents 18,130 8,158 Investments in securities 13,148 14,651 Finance receivables - net 172,423 133,964 Loans held for sale 19,609 15,720 Net equipment on operating leases (less accumulated depreciation) 27,210 25,721 Other assets 36,202 28,865 Net receivable from Automotive and Other Operations 1,492 1,089 ------- ------- Total Financing and Insurance Operations assets 288,214 228,168 ------- ------- Total assets $449,999 $370,142 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Automotive and Other Operations Accounts payable (principally trade) $21,542 $17,919 Loans payable 2,813 1,994 Liabilities of discontinued operations - 7,956 Accrued expenses 45,417 39,113 Net payable to Financing and Insurance Operations 1,492 1,089 ------ ------ Total current liabilities 71,264 68,071 Long-term debt 29,593 14,261 Postretirement benefits other than pensions 32,285 34,244 Pensions 7,952 22,633 Other liabilities and deferred income taxes 15,567 13,734 ------- ------- Total Automotive and Other Operations liabilities 156,661 152,943 Financing and Insurance Operations Accounts payable 3,880 3,219 Debt 239,350 183,913 Other liabilities and deferred income taxes 24,533 22,974 ------- ------- Total Financing and Insurance Operations liabilities 267,763 210,106 ------- ------- Total liabilities 424,424 363,049 Minority interests 307 279 Total stockholders' equity 25,268 6,814 ------- ------- Total liabilities and stockholders' equity $449,999 $370,142 ======= ======= 22 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For The Years Ended December 31, -------------------------------- 2003 2002 2001 ---- ---- ---- Cash flows from operating activities (dollars in millions) Income from continuing operations $2,862 $1,975 $1,222 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization expenses 13,977 11,865 11,764 Postretirement benefits other than pensions, net of payments and VEBA contributions (1,563) (208) 1,882 Pension expense, net of contributions (13,849) (3,396) 144 Net change in mortgage loans 456 (4,716) (4,608) Net change in mortgage securities 236 (656) (777) Change in other investments and miscellaneous assets (1,445) (478) (59) Change in other operating assets and liabilities 3,204 855 (622) Other 3,722 3,221 4,215 ----- ------ ------ Net cash provided by operating activities $7,600 $13,177 $12,180 ----- ------ ------ Cash flows from investing activities Expenditures for property (7,330) (6,871) (7,832) Investments in marketable securities - acquisitions (25,456) (39,386) (38,248) Investments in marketable securities - liquidations 18,549 35,688 37,560 Net change in mortgage servicing rights (2,556) (1,711) (2,075) Increase in finance receivables (149,419) (143,025)(107,567) Proceeds from sale of business units 4,148 - - Proceeds from sale of finance receivables 107,504 117,276 95,949 Operating leases - acquisitions (11,761) (16,624) (12,938) Operating leases - liquidations 9,952 13,994 11,892 Investments in companies, net of cash acquired (201) (870) (1,283) Other (1,422) 1,005 127 ------ ------ ------ Net cash used in investing activities (57,992) (40,524) (24,415) ------ ------ ------ Cash flows from financing activities Net (decrease) increase in loans payable 235 770 (21,740) Long-term debt - borrowings 97,391 51,411 62,957 Long-term debt - repayments (38,962) (24,365) (19,790) Repurchases of common and preference stocks - (97) (264) Proceeds from issuing common stocks - 62 100 Proceeds from sales of treasury stocks 60 19 418 Cash dividends paid to stockholders (1,121) (1,121) (1,105) Other 1,319 2,638 924 ------- ------- ------ Net cash provided by financing activities 58,922 29,317 21,500 ------ ------ ------ Net cash provided by discontinued operations 275 - - Effect of exchange rate changes on cash and cash equivalents 929 495 (96) ------ ------ ------- Net increase (decrease) in cash and cash equivalents 9,734 2,465 9,169 Cash and cash equivalents at beginning of the year 20,320 17,855 8,686 ------ ------ ------ Cash and cash equivalents at end of the year $30,054 $20,320 $17,855 ====== ====== ====== 23 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS For The Years Ended December 31, 2003 2002 2001 ------------------------------------------- Auto., Auto., Auto., and Finan. and Finan. and Finan. Other and Other and Other and Oper. Insur. Oper. Insur. Oper. Insur. ----- ------ ----- ------ ----- ------ (dollars in millions) Cash flows from operating activities Income (loss) from continuing operations $35 $2,827 $93 $1,882 $(546) $1,768 Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities Depreciation and amortization expenses 7,946 6,031 6,324 5,541 5,907 5,857 Postretirement benefits other than pensions, net of payments and VEBA contributions (1,563) - (223) 15 1,862 20 Pension expense, net of contributions (13,849) - (3,396) - 144 - Net change in mortgage loans - 456 - (4,716) - (4,608) Net change in mortgage securities - 236 - (656) - (777) Change in other investments and miscellaneous assets (200) (1,245) 2,064 3,506 591 (2,194) Change in other operating assets and liabilities 3,067 137 3,808 (4,286) (1,152) 1,093 Other (762) 4,484 (659) 3,880 981 3,234 ----- ------ ----- ----- ----- ----- Net cash provided by operating activities $(5,326) $12,926 $8,011 $5,166 $7,787 $4,393 ----- ------ ----- ----- ----- ----- Cash flows from investing activities Expenditures for property (6,616) (714) (6,414) (457) (7,812) (20) Investments in marketable securities - acquisitions (9,934) (15,522) (2,228)(37,158) (767)(37,481) Investments in marketable securities - liquidations 1,405 17,144 873 34,815 1,228 36,332 Net change in mortgage servicing rights - (2,556) - (1,711) - (2,075) Increase in finance receivables - (149,419) -(143,025) -(107,567) Proceeds from sale of business units 4,148 - - - - - Proceeds from sales of finance receivables - 107,504 - 117,276 - 95,949 Operating leases - acquisitions - (11,761) - (16,624) - (12,938) Operating leases - liquidations - 9,952 - 13,994 - 11,892 Investments in companies, net of cash acquired (57) (144) (688) (182) (741) (542) Net investing activity with Financing and Insurance Operations 1,000 - 400 - (500) - Other 332 (1,754) 1,513 (508) 244 (117) ----- ----- ----- ------ ----- ------ Net cash used in investing activities (9,722) (47,270) (6,544) 33,580) (8,348)(16,567) ----- ------ ----- ------ ----- ------ Cash flows from financing activities Net (decrease) increase in loans payable (234) 469 (335) 1,105 (1,440)(20,300) Long-term debt - borrowings 14,785 82,606 4,562 46,849 4,435 58,522 Long-term debt - repayments (19) (38,943) (145)(24,220) (884)(18,906) Net financing activity with Automotive and Other Operations - (1,000) - (400) - 500 Repurchases of common and preference stocks - - (97) - (264) - Proceeds from issuing common stocks - - 62 - 100 - Proceeds from sales of treasury stocks 60 - 19 - 418 - Cash dividends paid to stockholders (1,121) - (1,121) - (1,105) - Other - 1,319 - 2,638 - 924 ----- ----- ----- ----- ----- ------ Net cash provided by (used in) financing activities 13,471 44,451 2,945 25,972 1,260 20,740 ------ ------ ---- ------ ----- ------ Net cash provided by discontinued operations 275 - - - - - Effect of exchange rate changes on cash and cash equivalents 661 268 485 10 (74) (22) Net transactions with Automotive/Financing Operations 403 (403) (467) 467 (414) 414 ------ ----- ----- ----- ----- ----- Net increase (decrease) in cash and cash equivalents (238) 9,972 4,430 (1,965) 211 8,958 Cash and cash equivalents at beginning of the year 12,162 8,158 7,732 10,123 7,521 1,165 ------ ------ ------ ------ ----- ------ Cash and cash equivalents at end of the year $11,924 $18,130 $12,162 $8,158 $7,732 $10,123 ====== ====== ====== ===== ===== ====== 24 SIGNATURES 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 20, 2004 By: /s/PETER R. BIBLE. ----------------------- ---------------------------- (Peter R. Bible, Chief Accounting Officer) 25