GM Completes Fresh-Start Accounting

DETROIT, April 7 /PRNewswire/ -- General Motors Company announced that it had completed fresh-start accounting, and would be filing its third quarter 2009 Form 10-Q and 2009 Form 10-K with the SEC today.  

"We are building the foundation that will allow us to return to public ownership," said Chris Liddell, GM vice chairman and CFO.  "Completing fresh-start accounting is an important step in that process."

The new company, which was formed on July 10, 2009 through the acquisition of substantially all the assets and certain liabilities of Motors Liquidation Company (formerly General Motors Corporation), had to complete the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well as determine the fair value of assets and liabilities and implement new accounting policies.

The following table provides a summary of GM's financial results for the period ended December 31, 2009 under fresh-start accounting.  




July 10-Dec. 31, '09

($ bils)



Global revenue


$57.5




Net income/(loss) attributed to stockholders


$(4.3)




Net cash provided by operating activities


$1.0







The $4.3 billion net loss includes the pre-tax impact of a $2.6 billion settlement loss related to the UAW retiree medical plan and a $1.3 billion foreign currency re-measurement loss.

Going public will enable the company to invest in designing, building and selling the world's best vehicles, attract the best people and access the capital markets. One of the most important measures in establishing the foundation for going public is the company's ability to return to sustainable profitability.

"As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010," said Liddell.  "We are also dedicated to delivering on our commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the U.S. Treasury and Export Development Canada loans by June 2010 at the latest."

Forward-Looking Statements:

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreements with the U.S. Treasury and EDC and to repay those agreements as planned; our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology and our ability to realize successful vehicle applications of new technology.

GM's most recent annual report on Form 10-K will provide information about these and other factors, which we may revise or supplement in future reports to the SEC.

Exhibit 1

General Motors Company and Subsidiaries

Supplemental Material

General Motors Company was formed by the United States Department of the Treasury in 2009 originally as a Delaware limited liability company, Vehicle Acquisition Holdings LLC, and subsequently converted to a Delaware corporation, NGMCO, Inc. On July 10, 2009 this company acquired substantially all of the assets and assumed certain liabilities of General Motors Corporation (363 Sale) and changed its name to General Motors Company (GM). General Motors Corporation is sometimes referred to, for the periods on or before July 9, 2009, as Old GM. Prior to July 10, 2009 Old GM operated the business of the Company, and pursuant to the agreement with the SEC Staff, the accompanying consolidated financial statements include the financial statements and related information of Old GM as it is GM's predecessor entity solely for accounting and financial reporting purposes. On July 10, 2009 in connection with the 363 Sale, General Motors Corporation changed its name to Motors Liquidation Company (MLC). MLC continues to exist as a distinct legal entity for the sole purpose of liquidating its remaining assets and liabilities.

The accompanying tables and charts for securities analysts include earnings before interest and taxes (EBIT), which is not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP) and has not been audited or reviewed by GM's independent auditors. EBIT is therefore considered a non-GAAP financial measure. The accompanying charts for securities analysts also contain a reconciliation from EBIT to its most comparable GAAP financial measure.

Management believes EBIT provides meaningful supplemental information regarding GM's operating results because it excludes amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether GM's plan to return to profitability is on target. Accordingly, GM believes EBIT is useful in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.

GM is filing an Annual Report on Form 10-K for the year ended December 31, 2009, a Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 and a Registration Statement on Form 10 pursuant to an agreement with the SEC Staff, as described in a no-action letter issued to Old GM by the SEC Staff on July 9, 2009 regarding GM's filing requirements and those of MLC.

Certain prior period amounts have been reclassified in the consolidated statements of operations to conform to the current period presentation, primarily due to the adoption of ASC 810-10, "Consolidation" and ASC 470-20, "Debt with Conversions and Other Options," which have retrospective application.

In the year ended 2009 certain data such as vehicle sales, market share data and production volume combine GM's data in the period July 10, 2009 through December 31, 2009 with Old GM's data in the period January 1, 2009 through July 9, 2009 for comparative purposes.

General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



Three Months Ended

December 31,

Year Ended

December 31,


2009

2008

2009

2008

Worldwide Production Volume(a)(b)(c)

(Units in thousands)

GMNA – Cars

235

365

727

1,543

GMNA – Trucks

381

450

1,186

1,906

Total GMNA

616

815

1,913

3,449

GMIO

1,040

619

3,456

3,145

GME

266

214

1,134

1,550

Total Worldwide

1,922

1,648

6,503

8,144

(a) Production volume represents the number of vehicles manufactured by GM's and Old GM's assembly facilities and also includes vehicles produced by certain joint ventures.

(b) Includes SGM, SGMW and FAW-GM joint venture production. Ownership of 50% in SGM, 34% in SGMW and 50% in FAW-GM, under the joint venture agreements, allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM production volume in China. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income, net of tax.

(c) Production data may include rounding differences.



General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



Three Months Ended

December 31,

Year Ended

December 31,


2009

2008

2009

2008

Vehicle Unit Deliveries(a)(b)(c)





United States





Chevrolet – Cars

133

132

546

715

Chevrolet – Trucks

219

209

799

1,086

Cadillac

36

32

109

161

Buick

30

24

102

137

GMC

78

71

260

377

Other Non-Core Divisions

42

80

269

504

Total United States

538

547

2,084

2,981

Canada, Mexico and Other

100

127

400

585

Total GMNA(d)

637

675

2,485

3,565

GMIO





Chevrolet

427

310

1,491

1,456

Buick

134

69

448

281

GM Daewoo

41

19

121

121

Holden

36

32

126

140

Wuling

247

149

1,001

606

FAW-GM

26

35

Other

26

29

104

150

Total GMIO(e)

937

608

3,326

2,754

GME





Opal/Vauxhall

265

284

1,209

1,458

Chevrolet

107

121

426

510

Saab

5

13

27

66

Other

1

1

5

8

Total GME(e)

378

419

1,667

2,043

Total Worldwide

1,952

1,702

7,478

8,362

(a) Includes HUMMER, Saab, Saturn and Pontiac vehicle sales data.

(b) Includes SGM, SGMW and FAW-GM joint venture sales. Ownership of 50% in SGM, 34% in SGMW and 50% in FAW-GM, under the joint venture agreements, allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as part of global market share. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income, net of tax.

(c) Vehicle sales data may include rounding differences.

(d) Vehicle sales represent sales to the ultimate customer.

(e) Vehicle sales primarily represent estimated sales to the ultimate customer.



General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



Three Months Ended

December 31,

Year Ended

December 31,

Market Share(a)(b)

2009

2008

2009

2008

United States – Cars

15.5%

18.2%

16.3%

18.6%

United States – Trucks

24.5%

24.5%

23.1%

25.5%

Total United States

20.2%

21.5%

19.6%

22.1%

Total GMNA(c)

19.3%

21.0%

19.0%

21.5%

Total GMIO(d)

10.4%

9.6%

10.3%

9.6%

Total GME(d)

8.3%

9.2%

8.9%

9.3%

Total Worldwide

11.6%

12.0%

11.6%

12.4%






U.S. Retail/Fleet Mix





% Fleet Sales - Cars

34.6%

45.6%

29.0%

34.8%

% Fleet Sales - Trucks

20.5%

23.2%

21.6%

22.4%

Total Vehicles

25.8%

32.2%

24.7%

27.6%






GMNA Capacity Utilization(e)

61.5%

72.1%

48.0%

74.7%

(a) Includes HUMMER, Saab, Saturn and Pontiac vehicle sales data.

(b) Includes SGM, SGMW and FAW-GM joint venture sales. Ownership of 50% in SGM, 34% in SGMW and 50% in FAW-GM, under the joint venture agreements, allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as part of global market share. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income, net of tax.

(c) Vehicle sales represent sales to the ultimate customer.

(d) Vehicle sales primarily represent estimated sales to the ultimate customer.

(e) Two shift rated, annualized.




Successor

Predecessor


December 31,

2009

December 31,

2008

Worldwide Employment (thousands)



GMNA(a)

102

116

GMIO

61

70

GME

53

55

Corporate

1

2

Total Worldwide

217

243




United States — Salaried(a)(b)(d)

26

29

United States — Hourly(a)(c)

51

62

(a) Includes additional 11,000 employees due to the acquisition of Nexteer, of which 2,000 are U.S. salaried employees, 5,000 are U.S. hourly employees and 4,000 are employees located outside the U.S.

(b) 5,000 U.S. salaried employees irrevocably accepted the 2009 Salaried Window Program (a voluntary program, subject to management approval, to reduce salaried headcount based on individual eligibility and employees elections made) option or the GM severance program option.

(c) 13,000 U.S. hourly employees elected to participate in Old GM's 2009 Special Attrition Programs, which were introduced in February and June of 2009 and offered cash and other incentives for individuals who elected to retire or voluntarily terminate employment.

(d) Includes employees in GMNA and Corporate.





Successor

Predecessor


July 10, 2009

January 1, 2009

Twelve Months


Through

Through

Ended


December 31, 2009

July 9, 2009

December 31, 2008

Worldwide Payroll (billions)

$  6.2

$  6.2

$  16.8




General Motors Company and Subsidiaries

Consolidated Statements of Operations


(Dollars in millions)

(Unaudited)



Successor

Predecessor


July 10, 2009

January 1, 2009

Year


Through

Through

Ended


December 31,2009

July 9, 2009

December 31, 2008

Net sales and revenue




Sales

$    57,329

$    46,787

$    147,732

Other revenue

145

328

1,247

Total net sales and revenue

57,474

47,115

148,979

Costs and expenses




Cost of sales

56,381

55,814

149,257

Selling, general and administrative expense

6,006

6,161

14,253

Other expenses, net

15

1,235

6,699

Total costs and expenses

62,402

63,210

170,209

Operating loss

(4,928)

(16,095)

(21,230)

Equity in income (loss) of and disposition of interest in GMAC

1,380

(6,183)

Interest expense

(694)

(5,428)

(2,525)

Interest income and other non-operating income, net

440

852

424

Gain (loss) on extinguishment of debt

(101)

(1,088)

43

Reorganization gains, net

128,155

Income (loss) before income taxes and equity income

(5,283)

107,776

(29,471)

Income tax expense (benefit)

(1,000)

(1,166)

1,766

Equity income, net of tax

497

61

186

Net income (loss)

(3,786)

109,003

(31,051)

Less: Net (income) loss attributable to noncontrolling interests

(511)

115

108

Net income (loss) attributable to stockholders

(4,297)

109,118

(30,943)

Less: Cumulative dividends on preferred stock

131

Net income (loss) attributable to common stockholders

$    (4,428)

$  109,118

$    (30,943)

Earnings (loss) per share




Basic




Income (loss) attributable to common stockholders

$    (10.73)

$    178.63

$      (53.47)

Weighted-average common shares outstanding

413

611

579

Diluted




Income (loss) attributable to common stockholders

$    (10.73)

$    178.55

$      (53.47)

Weighted-average common shares outstanding

413

611

579





Cash dividends per common share

$           —

$    —

$          0.50





Amounts attributable to common stockholders:




Income (loss) of tax

$    (4,428)

$  109,118

$    (30,943)




General Motors Company and Subsidiaries

Consolidated Balance Sheets


(In millions, except share amounts)

(Unaudited)



Successor

Predecessor


December 31,

December 31,

ASSETS

2009

2008

Current Assets



Cash and cash equivalents       

$  22,679

$  14,053

Marketable securities

134

141

Total cash, cash equivalents and marketable securities

22,813

14,194

Restricted cash

13,917

672

Accounts and notes receivable (net of allowance of $250 and $422)       

7,518

7,918

Inventories

10,107

13,195

Assets held for sale

388

Equipment on operating leases, net

2,727

5,142

Other current assets and deferred income taxes       

1,777

3,146

Total current assets

59,247

44,267

Non-Current Assets



Restricted cash

1,489

1,917

Equity in net assets of nonconsolidated affiliates       

7,936

2,146

Assets held for sale

530

Equipment on operating leases, net

3

442

Property, net

18,687

39,665

Goodwill

30,672

Intangible assets, net

14,547

265

Deferred income taxes

564

98

Prepaid pension

98

109

Other assets

2,522

2,130

Total non-current assets

77,048

46,772

Total Assets

$  136,295

$  91,039

LIABILITIES AND EQUITY (DEFICIT)



Current Liabilities



Accounts payable (principally trade)

$  18,725

$  22,259

Short-term debt and current portion of long-term debt

10,221

16,920

Liabilities held for sale

355

Postretirement benefits other than pensions

846

4,002

Accrued expenses

22,288

32,427

Total current liabilities

52,435

75,608

Non-Current Liabilities



Long-term debt

5,562

29,018

Liabilities held for sale

270

Postretirement benefits other than pensions

8,708

28,919

Pensions

27,086

25,178

Other liabilities and deferred income taxes

13,279

17,392

Total non-current liabilities

54,905

100,507

Total liabilities

107,340

176,115

Commitments and contingencies



Preferred stock, $0.01 par value (1,000,000,000 shares authorized and 360,000,000 shares issued and outstanding at December 31, 2009)

6,998

Equity (Deficit)



Old GM



Preferred stock, no par value (6,000,000 shares authorized, no shares issued and outstanding)

Preference stock, $0.10 par value (100,000,000 shares authorized, no shares issued and outstanding)

Common stock, $1 2/3 par value common stock (2,000,000,000 shares authorized, 800,937,541 shares issued and 610,483,231 shares outstanding at December 31, 2008)

1,017

General Motors Company



Common stock, $0.01 par value (2,500,000,000 shares authorized and 500,000,000 shares issued and outstanding at December 31, 2009)

5

Capital surplus (principally additional paid-in capital)

24,050

16,489

Accumulated deficit

(4,394)

(70,727)

Accumulated other comprehensive income (loss)

1,588

(32,339)

Total stockholders' equity (deficit)

21,249

(85,560)

Noncontrolling interests

708

484

Total equity (deficit)

21,957

(85,076)

Total Liabilities and Equity (Deficit)

$  136,295

$  91,039




General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



Old GM


January 1, 2009 Through July 9, 2009


In the period January 1, 2009 through July 9, 2009, Old GM recorded the following Reorganization gains, net, arising from the 363 Sale and fresh-start reporting:



Predecessor


January 1, 2009

Through

July 9, 2009

Change in net assets resulting from the application of fresh-start reporting

$  33,829

Fair value of New GM's Series A Preferred Stock, common shares and warrants issued in 363 Sale

20,532

Gain from the conversion of debt owed to UST to equity

31,561

Gain from the conversion of debt owed to EDC to equity

5,964

Gain from the modification and measurement of GM's VEBA obligation

7,731

Gain from the modification and measurement of other employee benefit plans

4,585

Gain from the settlement of net liabilities retained by MLC via the 363 Sale

25,177

Income tax benefit for release of valuation allowances and other tax adjustments

710

Other 363 Sale adjustments

(21)

Amount recorded in Income tax benefit

(710)

Other losses, net

(1,203)

Total Reorganization gains, net

$  128,155




SOURCE General Motors



RELATED LINKS
http://media.gm.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.