UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 1994, OR
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION
PERIOD FROM __________ TO __________
Commission file number 1-3754
------
GENERAL MOTORS ACCEPTANCE CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 38-0572512
- ------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
767 Fifth Avenue, New York, New York 10153
3044 West Grand Boulevard, Detroit, Michigan 48202
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code 313-556-1508
------------
The registrant meets the conditions set forth in General
Instruction H(1) (a) and (b) of Form 10-Q and is therefore
filing this Form with the reduced disclosure format.
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 of the
Securities Exchange Act of 1934 during the preceding 12
months, and (2) has been subject to such filing requirements
for the past 90 days. Yes X . No .
--- ---
As of March 31, 1994, there were outstanding 21,650,000
shares of the issuer's common stock.
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<PAGE>2
This quarterly report, filed pursuant to Rule 13a-13 of
the General Rules and Regulations under the Securities
Exchange Act of 1934, consists of the following information as
specified in Form 10-Q:
PART I. FINANCIAL INFORMATION
The required information is given as to the registrant,
General Motors Acceptance Corporation and subsidiaries (the
"Company" or "GMAC").
ITEM 1. FINANCIAL STATEMENTS.
1. Consolidated Balance Sheet, March 31, 1994,
December 31, 1993 and March 31, 1993.
2. Consolidated Statement of Income and Net Income
Retained for Use in the Business for the Three
Months Ended March 31, 1994 and 1993.
3. Consolidated Statement of Cash Flows for the
Three Months Ended March 31, 1994 and 1993.
4. Notes to Financial Statements.
5. Summary of Financing and Insurance Operations.
The above described Financial Statements are submitted
herein as Exhibit 20.
In the opinion of management, the interim financial
statements reflect all adjustments, consisting of only normal
recurring items (with the exception of the accounting changes
in 1994 to adopt Statement of Financial Accounting Standards
(SFAS) No. 112, Employers' Accounting for Postemployment
Benefits, SFAS No. 114, Accounting by Creditors for Impairment
of a Loan, and SFAS No. 115, Accounting for Certain
Investments in Debt and Equity Securities, as described in
Management's Discussion and Analysis of Financial Condition
and Results of Operations), which are necessary for a fair
presentation of the results for the interim periods presented.
The results for interim periods are not necessarily indicative
of results which may be expected for any other interim period
or for the full year. These financial statements should be
read in conjunction with the consolidated financial
statements, the significant accounting policies, and the other
notes to the consolidated financial statements included in the
Company's 1993 Annual Report to the SEC on Form 10-K.
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<PAGE>3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Consolidated net income from General Motors Acceptance
Corporation (GMAC) financing and Motors Insurance Corporation
(MIC) insurance operations totaled $217.5 million for the
first quarter of 1994, compared with $284.1 million earned in
the first quarter of 1993. First quarter earnings in 1994
reflect an unfavorable charge of $7.4 million related to the
cumulative effect on income resulting from the implementation
of Statement of Financial Accounting Standards (SFAS) No. 112,
Employers' Accounting for Postemployment Benefits.
Net income from financing operations, including GMAC
Mortgage Corporation (GMACM) results, totaled $192.8 million
for the first quarter of 1994, $57.5 million below the same
period last year, excluding the impact of SFAS No. 112. The
decrease was due to a decline in asset levels and non-
recurrence of gains on receivable sales. Net income from
insurance operations, excluding the impact of SFAS No. 112,
was $32.1 million for the first quarter of 1994, a $1.7
million decrease as compared to the first quarter of 1993.
The decline in net income reflects lower capital gains which
more than offset improved commercial lines underwriting
results.
FINANCING VOLUME
Deliveries of new General Motors cars and trucks in the
United States were 1,231,000 for the first three months of
1994, an increase of 20% from the same period last year.
During the first quarter of 1994, GMAC financed or leased
worldwide 542,000 new passenger cars and trucks, an increase
of 35% from the comparable 1993 period. In the United States,
GMAC financed or leased 399,000 new vehicles during the first
quarter of 1994, 122,000 more than during the first quarter of
1993. During the first quarter of 1994, GMAC financed 30% of
new General Motors products delivered in the U.S., a 5
percentage point increase from the same period last year. The
increase in retail and lease unit financing and penetration
reflects curtailment of the Company's early 1993 program to
reduce volume to address potential liquidity concerns. The
Company's liquidity position has shown improvement due to a
strong performance in General Motor's North American
Operations which allows the Company to grow the business and
support marketing efforts of GM dealers within a robust sales
environment.
Outside the United States, GMAC financed or leased
143,000 new vehicles in the first quarter of 1994, up 19,000
units from the first quarter of 1993. An increase in retail
volume outside of North America accounted for the majority of
the year-to-year increase.
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<PAGE>4
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
Leasing volume worldwide, primarily acquired under GMAC's
SmartLease program, totaled 129,000 units leased in the first
quarter of 1994, a 75% increase from a year ago. In the U.S.,
GMAC also financed 27,000 units during the first quarter of
1994 under its SmartBuy program. This product offers
consumers many of the advantages of leasing, namely lower
monthly payments, while providing them with ownership of the
vehicles. GMAC financed 17,000 units under SmartBuy during
the comparable 1993 period.
GMAC also provides financing for GM and other dealers'
new and used vehicle inventories. In the United States,
inventory financing was provided on 969,000 and 911,000 new GM
vehicles, representing 75.6% and 75.0% of all GM sales to
dealers during the first quarter of 1994 and 1993,
respectively.
GMAC Mortgage Corporation loan origination, purchased
mortgage servicing and correspondent loan volume totaled $5.1
billion for the first quarter of 1994, $800 million above a
year ago. At quarter end, the combined mortgage servicing
portfolio, including $22.6 billion of loans master serviced by
GMAC's Residential Funding Corporation, amounted to $55.1
billion, down $3.7 billion from March 31, 1993.
ASSETS
GMAC's consolidated assets totaled $81.6 billion at March
31, 1994, compared to $80.8 billion and $89.9 billion at
December 31, 1993 and March 31, 1993, respectively.
Consolidated earning assets totaled $77.3 billion at March 31,
1994, compared to $74.8 billion and $80.5 billion at December
31, 1993 and March 31, 1993, respectively. The decrease from
the first quarter of 1993 compared to 1994 is a result of a
net decrease in dealers' wholesale financing, primarily
reflecting lower dealer stock levels in North America,
partially offset by an increase in operating lease assets.
Cash and Cash Equivalents, which primarily include short
term borrowed funds in excess of requirements invested in
short-term marketable securities, totaled $2,386.0 million at
March 31, 1994. This compared to $4,028.1 million at December
31, 1993 and $7,282.6 million at March 31, 1993. The decrease
is due to a planned strategy to reduce the liquidity portfolio
as a direct result of the Company's improved access to the
capital markets. The consolidated investment portfolio,
primarily attributable to MIC, totaled $3.5 billion at March
31, 1994, compared with $3.4 billion at both December 31, 1993
and March 31, 1993, as further described in Note 1 of the
Notes to the Financial Statements. Debt and equity securities
have been revalued at March 31, 1994, in accordance with SFAS
No. 115, Accounting for Certain Investments in Debt and Equity
Securities, disclosed later in ACCOUNTING STANDARDS.
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<PAGE>5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
At March 31, 1994, consolidated retail, leasing and lease
financing receivables, net of unearned income, worldwide were
$31.9 billion, up $2.0 billion from December 31, 1993 and down
$1.9 billion from March 31, 1993. While the retail receivable
business segment is essentially unchanged as compared to the
March 1993 time period, the Company sold retail receivables in
the U.S. during the remainder of 1993 aggregating $8.9
billion.
With respect to sold receivables, GMAC continues to
service these receivables for a fee. The Company's retail
instalment obligation servicing portfolio at March 31, 1994,
totaled $12.4 billion, compared with $14.9 billion and $13.5
billion at December 31, 1993 and March 31, 1993, respectively.
Wholesale receivables financed by GMAC, primarily dealer
vehicle inventories, were $18.9 billion at March 31, 1994,
compared to $20.7 billion at December 31, 1993 and $14.1
billion at March 31, 1993. Wholesale receivables financed in
the first quarter of 1994, as compared to the asset levels at
March 31, 1993, reflects the resumption by GMAC of dealer
wholesale inventory previously financed by General Motors,
partially offset by lower levels of dealer inventory in
addition to sales of wholesale finance receivables. The
following table summarizes wholesale assets on a comparable
year-to-year basis:
Wholesale
Inventory March 31 December 31 March 31
Financing 1994 1993 1993
- ---------- ----------- ----------- -----------
(in billions of dollars)
GMAC $ 18.9 $ 20.7 $ 14.1
General
Motors* 0.0 0.0 9.4
----------- ----------- -----------
Total $ 18.9 $ 20.7 $ 23.5
=========== =========== ===========
* Included in Receivables General Motors Corporation. (See
Note 6).
The Company sold wholesale receivables totaling $1.4
billion to outside investors during the first quarter of 1994
through a special purpose subsidiary. (See Note 5).
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<PAGE>6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
Operating lease assets, net of depreciation, offered
principally under the GMAC SmartLease program, increased to
$12.6 billion at the end of the first quarter in 1994 from
$11.4 billion and $10.1 billion at December 31, 1993 and March
31, 1993, respectively. The increase primarily reflects
growth in the U.S. and Canadian markets, driven by increasing
consumer acceptance of leasing and enhanced manufacturer's
subvented programs.
Real estate mortgage inventory held for sale, including
warehouse advances, amounted to $1,997.1 million at March 31,
1994, essentially unchanged from December 31, 1993 and March
31, 1993. The Company's net investment in sold receivables
pools related to subordinated interest retained by special
purpose subsidiaries was $2,830.1 million at March 31, 1994,
as compared to $1,857.6 million at December 31, 1993 and
$1,549.2 million at March 31, 1993. Other earning assets
totaled $460.5 million at March 31, 1994, down from $795.2
million and $782.0 million at December 31, 1993 and March 31,
1993, respectively, with the decrease primarily attributable
to lower levels of vehicles repurchased from rental car
companies prior to sale at auction.
Intangible assets included in other assets totaled $338.0
million for the first quarter of 1994, compared with $360.9
million at 1993 year-end and $443.9 million at the end of the
first quarter of 1993. Other nonearning assets, comprised
primarily of repossessed vehicles, foreclosed loans or loans
otherwise classified as nonearning, and insurance premium
receivables, totaled $1,605.9 million at the end of the first
quarter, as compared to $1,578.0 million and $1,593.1 million
at December 31, 1993 and March 31, 1993, respectively.
LIQUIDITY
The Company's liquidity, as well as its ability to
profitably effect ongoing core business acquisition activity,
is in large part dependent upon its timely access to and the
costs associated with raising funds in different segments of
the capital markets. In this regard, GMAC regularly accesses
the short-, medium- and long-term debt markets, principally
through commercial paper, medium-term notes and underwritten
transactions.
GMAC's total borrowings were $62.4 billion at March 31,
1994, compared with $70.7 billion at the comparable date in
1993 and $62.8 billion at December 31, 1993. Approximately
82% represented funding for operations in the United States,
with the remaining 18% of borrowings being split equally
between Canada, Germany, and other countries. Total short-
term debt worldwide at March 31, 1994, amounted to $18.9
billion, up from $17.7 billion at December 31, 1993 and $17.9
billion at March 31, 1993.
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<PAGE>7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
To support GMAC's unsecured and asset backed commercial
paper programs in the U.S., the Company has committed bank
credit facilities totaling $18.3 billion. The total
facilities were increased from $15.0 billion at December 31,
1993, as the size of the asset backed commercial paper
liquidity and receivables credit facility was increased by
$3.3 billion to total $8.3 billion as of January 26, 1994. In
addition, GMAC has $4.5 billion in committed bank credit
facilities to support the funding needs of the Company's
international subsidiaries.
In these committed bank credit agreements, GMAC has
agreed to a covenant such that, so long as the commitments
remain in effect or any amount is owing to any lender under
such commitments, the ratio of consolidated debt to total
stockholder's equity at the last day of any fiscal quarter
shall not exceed 11.0 to 1.0. With regard to such covenant,
GMAC's ratio of total borrowings to equity capital at March
31, 1994 was 7.9:1 compared with 8.6:1 at March 31, 1993.
For the first quarter of 1994, GMAC paid dividends to
General Motors Corporation amounting to $250 million, matching
the amount paid during the same period in 1993.
The scope of GMAC's capability to tap the capital markets
for unsecured debt is linked to both its term debt and
commercial paper ratings. This is particularly true with
respect to the Company's commercial paper ratings. Lower
ratings generally result in higher borrowing costs as well as
reduced access to capital markets. A security rating is not a
recommendation to buy, sell, or hold securities and may be
subject to revision or withdrawal at any time by the assigned
rating organization. Each rating should be evaluated
independently of any other rating. As of May 12, 1994, such
agencies had assigned the following ratings to GMAC:
Medium- &
Long-Term Commercial
Debt Paper
--------- ----------
Duff & Phelps Credit Rating Co. A- D-1
Fitch Investors Service, Inc. A- F-1
Moody's Investors Service, Inc. Baa1 P-2
Standard & Poor's Corporation BBB+ A-2
At this date, GMAC is not under review by any of the
above agencies; however, in April 1994, Standard & Poor's
Corporation affirmed its rating of GM and GMAC debt and
revised its outlook to positive from negative.
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<PAGE>8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
The Company utilizes a variety of interest rate contracts
including interest rate swaps and caps in the normal course of
managing its interest rate exposures. The Company also uses
currency swaps to hedge its foreign currency denominated debt.
The total notional amount of off-balance sheet instruments
outstanding was $10.2 billion at March 31, 1994, compared with
$8.6 billion at December 31, 1993 and $4.5 billion at March
31, 1993. Of the amount outstanding at March 31, 1994, $5.9
billion represented currency and interest rate swaps and $4.3
billion represented interest rate caps as compared to $3.9
billion and $600 million at March 31, 1993, respectively. In
addition, the Company has commitments to sell mortgages or
mortgage-backed securities comprised of mandatory delivery
contracts with investors totaling $2.2 billion for the quarter
ending March 31, 1994, versus $2.5 billion for the first
quarter ending March 31, 1993. Also outstanding at March 31,
1994 and 1993, were commitments to purchase first mortgage
loans at fixed prices totaling $1.4 billion and $2.0 billion,
respectively.
CASH FLOWS
For the three month period ending March 31, 1994, cash
provided by operating activities totaled $2.1 billion. Such
cash was used in net investing activities totaling $3.1
billion as well as to reduce debt by $382.7 million and pay
dividends of $250 million, with a resultant decrease in cash
and cash equivalents amounting to $1.6 billion. In
comparison, cash provided by operating and investment
activities during the first three months of 1993 totaled $2.2
billion and $5.3 billion, respectively, with such cash
utilized to reduce debt by $3.9 billion and pay dividends of
$250 million, with a net increase in cash and cash equivalents
of $3.4 billion. The difference reflects a planned reduction
in the liquidity portfolio due to favorable access to capital
markets and the Company's improved liquidity position as well
as lower proceeds from sales of finance receivables.
FINANCIAL REVIEW
Financing revenue totaled $2.2 billion for the first
quarter of 1994, $104.8 million less than the amounts recorded
in the comparable 1993 period. The decrease is primarily
attributable to lower earning rates, partially offset by an
increase in leasing revenues resulting from continued growth
in operating lease activity.
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<PAGE>9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
As a result of the lower level of interest rates in the
United States as well as the lower level of total borrowings,
interest and discount expense totaled $1.0 billion for the
first quarter of 1994, a decrease of 22% from the comparable
period in 1993. The average cost of funds worldwide for the
first quarter declined to 6.52%, a decrease of 49 basis points
from a year ago. Total borrowing costs for United States
operations averaged 6.25% for the first quarter of 1994,
compared with 6.54% for the comparable 1993 period.
Depreciation expense on operating leases, primarily on
SmartLease and Direct Leasing Plan units, amounted to $688.7
million for the first quarter of 1994, compared with $627.4
million for the same period in 1993. The increase was
primarily attributable to continued successful marketing of
the SmartLease program in the United States and Canada.
Other income, including gains on receivable sales, as
well as servicing fees and other income related to sold
finance receivables, amounted to $411.5 million in the first
quarter of 1994. This compared with $653.0 million in the
comparable 1993 period. The decrease primarily reflects the
non-recurrence of gains on sales of retail finance receivables
within the current quarter.
Other operating expenses, including salaries and benefits
and insurance losses and loss adjustment expenses, totaled
$712.0 million for the first quarter of 1994, $18.5 million
lower than a year ago. The decrease is primarily attributable
to lower losses incurred on commercial lines.
The provision for losses on finance receivables,
including both retained and sold receivables, totaled $64.1
million for the first quarter of 1994, compared to $57.0
million in the same period of 1993, reflecting increased
retail volume levels in the 1994 period. Total chargeoffs for
the first quarter of 1994 were $88.8 million compared to
$121.5 million in the first quarter of 1993. Retail losses
were 0.54% of total serviced assets during the first quarter
of 1994 (including off-balance sheet sold receivables), as
compared to 0.72% for the same period last year.
United States, foreign and other income taxes amounted to
$135.5 million for the first quarter of 1994, $33.1 million
less than the comparable 1993 period, primarily due to reduced
pre-tax income, partially offset by increased U.S. Federal
statutory income tax rates.
On a consolidated basis, GMAC's return on average equity
capital was 10.8% for the first quarter of 1994, compared with
13.7% for the comparable 1993 period.
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<PAGE>10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued).
ACCOUNTING STANDARDS
In November 1992, the Financial Accounting Standards
Board (FASB) issued SFAS No. 112, Employers' Accounting for
Postemployment Benefits, which established a new accounting
principle for the cost of benefits provided to former or
inactive employees after employment but before retirement.
The Statement is effective for the fiscal years beginning
after December 15, 1993. The Company adopted this standard
effective January 1, 1994; as stated earlier, the after-tax
unfavorable cumulative effect of this change at January 1 was
$7.4 million. The ongoing effect in subsequent periods is not
expected to be material.
In May 1993, the FASB issued SFAS No. 114, Accounting by
Creditors for Impairment of a Loan, which amends FASB
Statement No. 5, Accounting for Contingencies, to clarify that
a creditor should evaluate the collectibility of both
contractual interest and principal of all receivables when
assessing the need for a loss accrual. SFAS No. 114 also
amends FASB Statement No. 15, Accounting by Debtors and
Creditors for Troubled Debt Restructurings, to require
creditors to measure all loans that are restructured in a
troubled debt restructuring involving modification of terms to
reflect the time value of money. SFAS No. 114 applies to
financial statements for fiscal years beginning after December
15, 1994. The Company adopted this standard effective January
1, 1994. The Company's loans primarily consist of large
groups of smaller-balance homogeneous loans which are
collectively evaluated for impairment and for which this
standard does not apply. However, certain loans of the
Company affected by this Statement are currently carried at
the lower of book value or the fair value of the collateral.
The net book value of such loans at March 31, 1994, was $263.2
million, net of $187.4 million valuation reserve. There was
no additional impact on the consolidated financial position or
results of operations as a result of adoption.
In May 1993, the FASB also issued SFAS No. 115,
Accounting for Certain Investments in Debt and Equity
Securities, which addresses the accounting and reporting for
investments in debt and equity securities that have readily
determinable fair values. These investments are categorized
as either "Held-to-Maturity Securities", reported at amortized
cost, "Trading Securities", reported at fair value with
unrealized gains or losses reported in earnings or "Available-
for-Sale" also reported at fair value with unrealized gains or
losses reported separately in stockholder's equity.
Investments are categorized based upon the intent of the
Company for which the securities were purchased.
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<PAGE>11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (concluded).
This Statement is effective for fiscal years beginning
after December 15, 1993. The Company adopted this standard
effective January 1, 1994. The cumulative favorable effect to
stockholder's equity at January 1, 1994, was $127.5 million,
net of tax.
--------------------------------
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<PAGE>12
RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31
-----------------
1994 1993
---- ----
1.34 1.34
The ratio of earnings to fixed charges has been computed
by dividing earnings before income taxes and fixed charges by
the fixed charges. This ratio includes the earnings and fixed
charges of the Company and its consolidated subsidiaries;
fixed charges consist of interest, debt discount and expense
and the portion of rentals for real and personal properties in
an amount deemed to be representative of the interest factor.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS:
20. General Motors Acceptance Corporation and
Subsidiaries Consolidated Financial Statements
for the Three Months Ended March 31, 1994.
(b) REPORTS ON FORM 8-K:
No Current Report on Form 8-K was filed during the
first quarter ended March 31, 1994.
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<PAGE>13
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 thereunto duly
authorized.
GENERAL MOTORS ACCEPTANCE CORPORATION
-------------------------------------
(Registrant)
s\ John D. Finnegan
-------------------------------------
Dated: May 13, 1994 John D. Finnegan, Executive Vice
------------ President and Principal Financial
Officer
s\ Gerald E. Gross
-------------------------------------
Dated: May 13, 1994 Gerald E. Gross, Comptroller
------------ and Principal Accounting Officer
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<PAGE>14
EXHIBIT 20
Page 1 of 16
CONSOLIDATED BALANCE SHEET
ASSETS March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- -------------------------------------- --------- --------- ---------
Cash and Cash Equivalents . . . . . . $ 2,386.0 $ 4,028.1 $ 7,282.6
--------- --------- ---------
EARNING ASSETS
INVESTMENTS IN SECURITIES (Note 1)
Bonds, notes and other securities . . 3,011.7 2,928.7 2,814.2
Equity securities . . . . . . . . . . 521.7 521.0 580.3
--------- --------- ---------
Total investments in securities . . . 3,533.4 3,449.7 3,394.5
--------- --------- ---------
FINANCE RECEIVABLES (Note 2)
Finance receivables . . . . . . . . . 55,193.5 54,882.8 52,281.1
Allowance for financing losses . . . . (763.1) (748.0) (709.1)
--------- --------- ---------
Finance receivables (net) . . . . . . 54,430.4 54,134.8 51,572.0
--------- --------- ---------
OTHER EARNING ASSETS
Receivables General Motors
Corporation (Note 6) . . . . . . . . 1,414.4 1,355.5 11,281.7
Net equipment on operating leases . . 12,635.0 11,363.5 10,101.3
Real estate mortgages held for sale,
at lower of cost or market . . . . . 1,997.1 1,827.5 1,867.3
Due and deferred from receivable
sales (net) (Note 5) . . . . . . . . 2,830.1 1,857.6 1,549.2
Other (Note 6) . . . . . . . . . . . . 460.5 795.2 782.0
--------- --------- ---------
Total earning assets . . . . . . . . 77,300.9 74,783.8 80,548.0
--------- --------- ---------
OTHER ASSETS
Intangible assets, at cost
less amortization . . . . . . . . . . 338.0 360.9 443.9
Other nonearning assets . . . . . . . 1,605.9 1,578.0 1,593.1
--------- --------- ---------
Total other assets . . . . . . . . . . 1,943.9 1,938.9 2,037.0
--------- --------- ---------
TOTAL ASSETS . . . . . . . . . . . . . $81,630.8 $80,750.8 $89,867.6
========= ========= =========
Certain amounts for 1993 have been reclassified
to conform with 1994 classifications.
Reference should be made to the Notes to
Financial Statements.
(continued)
<PAGE>15
EXHIBIT 20
Page 2 of 16
CONSOLIDATED BALANCE SHEET (continued)
LIABILITIES AND STOCKHOLDER'S EQUITY
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- -------------------------------------- --------- --------- ---------
NOTES, LOANS AND DEBENTURES
PAYABLE WITHIN ONE YEAR
(Note 3) . . . . . . . . . . . . . . $34,551.8 $35,084.4 $38,861.2
--------- --------- ---------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and
affiliated companies (Note 6) . . . . 3,129.7 2,487.5 2,604.7
Interest . . . . . . . . . . . . . . . 1,350.4 1,006.6 1,689.0
Unpaid insurance losses and loss
adjustment expenses . . . . . . . . . 1,578.1 1,569.4 1,555.4
Unearned insurance premiums . . . . . 1,366.2 1,337.4 1,276.7
Deferred income taxes . . . . . . . . 1,162.5 1,193.2 930.3
United States and foreign income and
other taxes payable . . . . . . . . . 196.8 35.5 255.8
Other postretirement benefits . . . . 533.9 524.9 493.4
Other . . . . . . . . . . . . . . . . 2,044.0 1,970.8 2,093.3
--------- --------- ---------
Total accounts payable and other
liabilities . . . . . . . . . . . . . 11,361.6 10,125.3 10,898.6
--------- --------- ---------
NOTES, LOANS AND DEBENTURES
PAYABLE AFTER ONE YEAR (Note 4) . . . 27,879.0 27,688.8 31,851.7
--------- --------- ---------
STOCKHOLDER'S EQUITY
Common stock, $100 par value
(authorized and outstanding,
21,650,000 shares) . . . . . . . . . 2,165.0 2,165.0 2,165.0
Net income retained for use
in the business . . . . . . . . . . . 5,576.5 5,609.0 5,912.0
Net unrealized gains on securities . . 170.8 164.3 210.4
Unrealized accumulated foreign
currency translation adjustments . . (73.9) (86.0) (31.3)
--------- --------- ---------
Total stockholder's equity . . . . . . 7,838.4 7,852.3 8,256.1
--------- --------- ---------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY . . . . . . . . $81,630.8 $80,750.8 $89,867.6
========= ========= =========
Certain amounts for 1993 have been reclassified
to conform with 1994 classifications.
Reference should be made to the Notes to
Financial Statements.
<PAGE>16
EXHIBIT 20
Page 3 of 16
CONSOLIDATED STATEMENT OF INCOME AND
NET INCOME RETAINED FOR USE IN THE BUSINESS
Three Months Ended
March 31
---------------------
(in millions of dollars) 1994 1993
- --------------------------------------------- --------- ---------
FINANCING REVENUE
Retail and lease financing . . . . . . . . . $ 737.3 $ 988.5
Leasing . . . . . . . . . . . . . . . . . . . 1,052.3 940.7
Wholesale and term loans . . . . . . . . . . 373.4 338.6
--------- ---------
Total financing revenue . . . . . . . . . . . 2,163.0 2,267.8
Interest and discount . . . . . . . . . . . . (1,010.0) (1,300.0)
Depreciation on operating leases . . . . . . (688.7) (627.4)
--------- ---------
Net financing revenue . . . . . . . . . . . . 464.3 340.4
Insurance premiums earned . . . . . . . . . . 279.4 273.6
Other income . . . . . . . . . . . . . . . . 411.5 653.0
--------- ---------
NET FINANCING REVENUE AND OTHER . . . . . . . 1,155.2 1,267.0
--------- ---------
EXPENSES
Salaries and benefits . . . . . . . . . . . . 213.3 195.4
Other operating expenses . . . . . . . . . . 259.7 225.9
Insurance losses and loss adjustment
expenses . . . . . . . . . . . . . . . . . . 239.0 309.2
Provision for financing losses . . . . . . . 64.1 57.0
Amortization of intangible assets . . . . . . 18.7 26.8
--------- ---------
Total expenses . . . . . . . . . . . . . . . 794.8 814.3
--------- ---------
Income before income taxes . . . . . . . . . 360.4 452.7
United States, foreign and other income
taxes . . . . . . . . . . . . . . . . . . . 135.5 168.6
--------- ---------
Income before cumulative effect of accounting
changes . . . . . . . . . . . . . . . . . . 224.9 284.1
Cumulative effect of accounting changes . . . (7.4) --
--------- ---------
NET INCOME . . . . . . . . . . . . . . . . . 217.5 284.1
Net income retained for use in the business
at beginning of the period . . . . . . . . . 5,609.0 5,877.9
--------- ---------
Total . . . . . . . . . . . . . . . . . . . . 5,826.5 6,162.0
Cash dividends . . . . . . . . . . . . . . . 250.0 250.0
--------- ---------
NET INCOME RETAINED FOR USE IN THE
BUSINESS AT END OF THE PERIOD . . . . . . . . $ 5,576.5 $ 5,912.0
========= =========
Certain amounts for 1993 have been reclassified
to conform with 1994 classifications.
Reference should be made to the Notes to
Financial Statements.
<PAGE>17
EXHIBIT 20
Page 4 of 16
CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Ended
March 31
---------------------
(in millions of dollars) 1994 1993
- --------------------------------------------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Income before cumulative effect of
accounting changes . . . . . . . . . . . . . $ 224.9 $ 284.1
Depreciation . . . . . . . . . . . . . . . . 696.4 638.3
Taxes payable and deferred . . . . . . . . . 127.7 48.2
Provision for financing losses . . . . . . . 64.1 57.0
General Motors Corporation and affiliated
companies . . . . . . . . . . . . . . . . . 645.6 (219.4)
Origination/purchase of mortgage loans . . . (4,433.8) (3,215.5)
Proceeds on sale of mortgage loans . . . . . 4,264.2 3,886.8
Interest payable . . . . . . . . . . . . . . 344.7 492.5
Other assets . . . . . . . . . . . . . . . . 76.8 (89.0)
Other liabilities . . . . . . . . . . . . . . 65.1 183.8
Other . . . . . . . . . . . . . . . . . . . . 63.9 178.9
--------- ---------
Net cash provided by operating activities . . 2,139.6 2,245.7
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables-acquisitions . . . . . . (38,749.1) (35,499.0)
-liquidations . . . . . . 37,042.9 36,756.5
Notes receivable General Motors Corporation . (58.9) 281.5
Operating leases-acquisitions . . . . . . . . (2,647.1) (1,512.8)
-liquidations . . . . . . . . 715.2 643.0
Investments in securities-acquisitions . . . (3,025.9) (3,256.5)
-liquidations . . . 2,958.6 3,099.2
Proceeds from sales of receivables . . . . . 1,376.4 4,602.8
Due and deferred from receivable sales . . . (973.1) (231.3)
Other . . . . . . . . . . . . . . . . . . . . 213.9 449.2
--------- ---------
Net cash (used in) provided by investing
activities . . . . . . . . . . . . . . . . . (3,147.1) 5,332.6
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt with original maturities 90 days and over
-proceeds . . . . . . . . . . . . . . . . . 14,415.7 9,723.3
-liquidations . . . . . . . . . . . . . . . (15,353.2) (13,241.7)
Debt with original maturities less than 90
days -net change . . . . . . . . . . . . . . 554.8 (390.3)
Dividends paid . . . . . . . . . . . . . . . (250.0) (250.0)
--------- ---------
Net cash used in financing activities . . . . (632.7) (4,158.7)
--------- ---------
Effect of exchange rate changes on cash and
cash equivalents . . . . . . . . . . . . . . (1.9) (8.1)
--------- ---------
Net (decrease) increase in cash and cash
equivalents . . . . . . . . . . . . . . . . (1,642.1) 3,411.5
Cash and cash equivalents at the beginning of
the period . . . . . . . . . . . . . . . . . 4,028.1 3,871.1
--------- ---------
Cash and cash equivalents at the end of the
period . . . . . . . . . . . . . . . . . . . $ 2,386.0 $ 7,282.6
========= =========
Certain amounts for 1993 have been reclassified
to conform with 1994 classifications.
Reference should be made to the Notes to
Financial Statements.
<PAGE>18
EXHIBIT 20
Page 5 of 16
NOTES TO FINANCIAL STATEMENTS
NOTE 1. INVESTMENTS IN SECURITIES
In the current year, GMAC adopted SFAS 115. As a result,
GMAC's bonds, notes, certificates of deposit, other
investments and preferred stocks with mandatory redemption
terms are carried at market value. In prior years, these
investments were carried at amortized cost. Other stocks are
carried at market (fair) value for both years. The aggregate
excess of market value over cost, net of related income taxes,
is included as a separate component of stockholder's equity.
The fair value of the other financial instruments presented
herein is based on quoted market prices.
- --------------------------------------------------------------
(in millions of dollars) March 31, 1994
Fair Unrealized Unrealized
Type of Security Cost Value Gains Losses
- ---------------- --------- --------- ---------- ----------
Bonds, notes and
other securities
United States
government and
governmental
agencies and
authorities . . $ 209.2 $ 210.0 $ 3.9 $ (3.1)
States,
municipalities
and political
subdivisions . 2,010.6 2,037.4 74.4 (47.6)
Other . . . . . 747.1 759.5 24.9 (12.5)
Preferred stocks
with mandatory
redemption
terms . . . . . 4.8 4.8 0.0 0.0
--------- --------- --------- ---------
Total bonds, notes
and other
securities . . . $ 2,971.7 $ 3,011.7 $ 103.2 $ (63.2)
========= ========= ========= =========
<PAGE>19
EXHIBIT 20
Page 6 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 1. INVESTMENTS IN SECURITIES (continued)
The distribution of maturities of debt securities
outstanding at March 31, 1994 and 1993 is summarized as
follows:
- ------------------------------------------------------------
(in millions of
dollars) March 31, 1994 March 31, 1993
Fair Fair
Maturity Cost Value Cost Value
- --------------- --------- --------- --------- ---------
Due in one year
or less . . . $ 247.8 $ 250.9 $ 195.1 $ 197.0
Due after one
year through
five years . . 580.1 601.6 718.2 752.4
Due after five
years through
ten years . . 850.3 860.0 748.8 797.7
Due after ten
years . . . . 1,130.8 1,131.2 810.9 867.9
Mortgage-backed
securities . . 157.9 163.2 336.4 354.1
Preferred
stock-mandatory
redemption
terms . . . . 4.8 4.8 4.8 4.8
--------- --------- --------- ---------
Total debt
securities . . $ 2,971.7 $ 3,011.7 $ 2,814.2 $ 2,973.9
========= ========= ========= =========
<PAGE>20
EXHIBIT 20
Page 7 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 1. INVESTMENTS IN SECURITIES (concluded)
Proceeds from the sale of debt securities amounted to
$288.6 million and $617.5 million at March 31, 1994 and 1993,
respectively. Gross realized gains amounted to $4.3 million
and $20.3 million at March 31, 1994 and 1993, respectively.
Gross realized losses amounted to $1.7 million and $1.9
million at March 31, 1994 and 1993, respectively.
- ------------------------------------------------------------
(in millions of
dollars)
March 31, 1994 March 31, 1993
Type of Fair Fair
Security Cost Value Cost Value
- ---------------- --------- --------- --------- ---------
Equity
securities-
common stocks
Public
utilities . . . $ 19.9 $ 42.0 $ 21.1 $ 48.2
Banks, trust and
insurance
companies . . . 17.9 27.7 3.3 19.7
Industrial and
miscellaneous 261.3 454.0 237.1 512.4
Short financial
futures . . . . (2.0) (2.0) 0.0 0.0
--------- --------- --------- ---------
Total equity
securities . . . $ 297.1 $ 521.7 $ 261.5 $ 580.3
========= ========= ========= =========
The difference between fair (market) value and cost of
equity securities at March 31, 1994 and 1993, consisted of
gross unrealized profits (excess of market value over cost) of
$248.0 million and $336.4 million and gross unrealized losses
(excess of cost over market value) of $23.4 million and $17.6
million, respectively.
Net gains realized from the sale of equity securities
amounted to $6.4 million and $63.9 million at March 31, 1994
and 1993, respectively.
<PAGE>21
EXHIBIT 20
Page 8 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2. FINANCE RECEIVABLES
The composition of finance receivables outstanding at
March 31, 1994, December 31, 1993 and March 31, 1993 is
summarized as follows:
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- --------------------------- --------- --------- ---------
United States
Retail . . . . . . . . . $25,227.0 $22,322.2 $24,959.5
Wholesale . . . . . . . . 14,412.0 16,290.3 8,649.1
Leasing and lease
financing . . . . . . . 1,911.4 2,372.1 3,251.5
Term loans to dealers and
others . . . . . . . . . 4,019.2 3,984.4 4,106.4
--------- --------- ---------
Total United States . . . . 45,569.6 44,969.0 40,966.5
Canada and International
Retail . . . . . . . . . 6,692.5 6,846.4 7,487.2
Wholesale . . . . . . . . 4,489.1 4,383.3 5,427.2
Leasing and lease
financing . . . . . . . 1,456.9 1,491.3 1,739.1
Term loans to dealers and
others . . . . . . . . 415.4 387.9 344.9
--------- --------- ---------
Total Canada and
International . . . . . . 13,053.9 13,108.9 14,998.4
--------- --------- ---------
Total finance receivables . 58,623.5 58,077.9 55,964.9
Deductions
Unearned income . . . . . 3,430.0 3,195.1 3,683.8
Allowance for financing
losses . . . . . . . . 763.1 748.0 709.1
--------- --------- ---------
Total deductions . . . . . 4,193.1 3,943.1 4,392.9
--------- --------- ---------
Finance receivables (net) . $54,430.4 $54,134.8 $51,572.0
========= ========= =========
<PAGE>22
EXHIBIT 20
Page 9 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 3. NOTES, LOANS AND DEBENTURES
PAYABLE WITHIN ONE YEAR
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- --------------------------- --------- --------- ---------
Short-term notes
Commercial paper . . . . $15,780.7 $14,521.1 $14,405.0
Master notes . . . . . . 528.1 467.8 743.6
Demand notes . . . . . . 2,254.7 2,161.0 2,142.8
Other . . . . . . . . . . 451.5 645.5 625.0
--------- --------- ---------
Total principal amount . . 19,015.0 17,795.4 17,916.4
Unamortized discount . . . (84.8) (61.6) (60.4)
--------- --------- ---------
Total . . . . . . . . . . . 18,930.2 17,733.8 17,856.0
--------- --------- ---------
Bank loans and overdrafts . 5,128.9 5,716.6 6,022.8
--------- --------- ---------
Other notes, loans and
debentures payable
within one year
Medium-term notes . . 7,437.1 8,569.0 9,051.3
Other . . . . . . . . . 3,055.6 3,065.0 5,931.1
--------- --------- ---------
Total . . . . . . . . . . . 10,492.7 11,634.0 14,982.4
--------- --------- ---------
Total payable within one
year . . . . . . . . . . $34,551.8 $35,084.4 $38,861.2
========= ========= =========
Commercial paper is offered in the United States and
Europe in varying terms ranging up to 270 days. Master notes
represent borrowings on a demand basis arranged generally
under agreements with trust departments of certain banks.
GMAC's Variable Rate Demand Note Program is made available to
employees and retirees of General Motors Corporation and their
participating subsidiaries and affiliates, and their immediate
family members, GM dealers and their employees and affiliates,
and stockholders of General Motors Corporation. Bank loans
are generally made on a demand basis. Medium-term notes are
offered in the United States, Canada, Europe and Asia in
varying terms ranging from more than nine months to thirty
years.
<PAGE>23
EXHIBIT 20
Page 10 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 4. NOTES, LOANS, AND DEBENTURES
PAYABLE AFTER ONE YEAR
(in millions
of dollars) Weighted
Average Interest
Rates at March 31 Dec. 31 March 31
Maturity March 31, 1994 1994 1993 1993
- -------------- -------------- --------- --------- ---------
NOTES, LOANS
AND DEBENTURES
United States
currency
1994 . . . . -- $ -- $ -- $ 7,221.8
1995 . . . . 7.0% 3,888.4 6,040.1 4,914.9
1996 . . . . 6.7% 5,969.9 5,173.1 3,604.9
1997 . . . . 7.1% 4,758.0 4,391.6 4,126.5
1998 . . . . 6.4% 1,459.8 1,455.7 470.9
1999 . . . . 6.9% 2,344.6 1,600.0 1,600.0
2000 - 2004 . 8.3% 3,688.7 3,249.1 3,400.0
2005 - 2009 . 8.8% 200.0 200.0 650.0
2010 - 2014 . 10.2% 1,203.5 1,203.5 1,203.5
2015 - 2049 . 8.8% 748.7 748.7 748.7
--------- --------- ---------
Total United
States currency 24,261.6 24,061.8 27,941.2
Other currencies
1994 - 1998 . . 7.5% 4,426.3 4,442.4 4,744.1
--------- --------- ---------
Total notes,
loans and
debentures . . 28,687.9 28,504.2 32,685.3
Unamortized
discount . . . (808.9) (815.4) (833.6)
--------- --------- ---------
Total notes,
loans and
debentures
payable after
one year . . . $27,879.0 $27,688.8 $31,851.7
========= ========= =========
The Company has issued warrants to subscribe for up to
$75 million aggregate principal amount of 7.00% Notes due
August 15, 2001. The warrants are exercisable up to and
including August 15, 2000.
The Company has issued warrants to subscribe for up to
$300 million aggregate principal amount of 6.50% Notes due
October 15, 2009. The warrants are exercisable up to and
including October 15, 2007.
<PAGE>24
EXHIBIT 20
Page 11 of 16
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 5. SALE OF FINANCE RECEIVABLES
During the first quarter of 1993, the Company sold retail
receivables with principal aggregating $4,758.3 million with
pre-tax gains relating to such sales recorded in "Other
Income" (excluding limited recourse loss provisions) amounting
to $173.9 million. The Company did not sell retail
receivables during the first quarter of 1994.
The Company sells retail receivables through special
purpose subsidiaries which absorb all losses related to sold
receivables to the extent of their subordinated investments,
as well as certain segregated restricted cash flows.
Appropriate limited recourse loss provisions associated with
sold receivables are included in the Company's provision for
financing losses.
During the first quarter of 1994, the Company completed
its first wholesale receivable sale which included $1,250.0
million floating rate term notes sold to the public and
floating rate subordinated certificates of $132.0 million
privately placed. The certificates, when taken together with
the reserve fund, provides credit support for the notes. As
part of the transaction, floating rate revolving notes
initially totaling $850.3 million, which have varying balances
up to a maximum of $1,250.0 million, were also issued and are
currently being held by GMAC. Consequently, the balance of
these notes are being shown in the table below as "Investment
in wholesale revolving note".
The Company's interest in excess servicing cash flows,
subordinated interest in trusts, cash deposits and other
related amounts are generally restricted assets and subject to
limited recourse provisions. The following is a summary of
amounts included in "Due and deferred from receivable sales
(net)".
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- --------------------------- --------- --------- ---------
Excess servicing . . . . . $ 582.7 $ 745.5 $ 772.1
Other restricted amounts:
Subordinated interest in
trusts . . . . . . . . . 602.3 726.8 788.5
Cash deposits held by
trusts . . . . . . . . 773.3 557.5 319.6
Investment in wholesale
revolving note . . . . . 1,002.1 -- --
Deferred servicing and
other .. . . . . . . . . (38.3) (64.9) (89.4)
Allowance for estimated
credit losses on sold
receivables . . . . . . . (92.0) (107.3) (241.6)
--------- --------- ---------
Total . . . . . . . . . . . $ 2,830.1 $ 1,857.6 $ 1,549.2
========= ========= =========
<PAGE>25
EXHIBIT 20
Page 12 of 16
NOTES TO FINANCIAL STATEMENTS (concluded)
NOTE 5. SALE OF FINANCE RECEIVABLES (concluded)
Outstanding principal balances of sold retail receivables
(including subordinated interests) at March 31, 1994, December
31, 1993 and March 31, 1993 totaled $12.4 billion, $14.9
billion and $13.5 billion, respectively.
NOTE 6. TRANSACTIONS WITH AFFILIATES
The amounts due General Motors Corporation and affiliated
companies at the balance sheet dates relate principally to
current wholesale financing of sales of General Motors
products.
Receivables from General Motors Corporation decreased to
$1.4 billion at the end of March 31, 1994, compared with $11.3
billion at the end of March 31, 1993. This reduction reflects
the resumption by GMAC of dealer wholesale inventory financing
which had previously been provided by General Motors. Such
General Motors financing had been supported by a financing
agreement under which GMAC extended loans to General Motors.
This financing agreement was terminated in the first quarter
of 1994.
The Company has purchased certain vehicles which General
Motors acquired from its fleet and rental customers. The cost
of these vehicles held for resale, which is included in other
earning assets, at March 31, 1994 and 1993 was $393.9 million
and $607.7 million, respectively.
From time to time, the Company and one of its
subsidiaries have made interest-bearing loans to National Car
Rental Systems, Inc. (NCRS), a consolidated subsidiary of
General Motors Corporation and certain other affiliates of
General Motors Corporation. At March 31, 1994 and 1993,
$1,414.4 million and $2,046.1 million, respectively, of such
loans (including NCRS) were outstanding.
NOTE 7. FINANCIAL INSTRUMENTS
GMAC utilizes a variety of interest rate contracts
including interest rate swaps, caps and currency swaps in the
normal course of managing its interest rate exposures. The
total notional amount of off-balance-sheet instruments
outstanding was $10,172.1 million at March 31, 1994, $8,623.9
million at December 31, 1993 and $4,466.0 million at March 31,
1993.
The Company has commitments to sell mortgages or
mortgage-backed securities at March 31, 1994 and 1993,
comprised of mandatory delivery contracts with investors
totaling $2,151.0 million and $2,519.8 million, respectively.
Also outstanding at March 31, 1994 and 1993, were commitments
to purchase/fund first mortgage loans at fixed prices totaling
$1,448.6 million and $2,014.0 million, respectively.
_______________________________
<PAGE>26
EXHIBIT 20
Page 13 of 16
SUPPLEMENTARY FINANCIAL DATA
SUMMARY OF FINANCING OPERATIONS*
Three Months Ended
March 31
---------------------
(in millions of dollars) 1994 1993
- ------------------------------------ --------- ---------
INCOME
Financing revenue . . . . . . . . . $ 2,163.6 $ 2,268.5
Interest and discount . . . . . . (1,010.0) (1,300.0)
Depreciation on operating leases . (688.7) (627.4)
--------- ---------
Net financing revenue . . . . . . . 464.9 341.1
Other income . . . . . . . . . . . . 328.9 517.3
--------- ---------
Net financing revenue and other . . 793.8 858.4
--------- ---------
Expenses
Salaries and benefits . . . . . . 179.6 165.3
Other operating expenses . . . . . 212.5 201.3
Provision for financing losses . . 64.1 57.0
Amortization of intangible
assets . . . . . . . . . . . . . 16.2 24.3
--------- ---------
Total expenses . . . . . . . . . . . 472.4 447.9
--------- ---------
Income before income taxes . . . . . 321.4 410.5
United States, foreign and other
income taxes . . . . . . . . . . . 128.6 160.2
--------- ---------
Income before cumulative effect of
accounting changes . . . . . . . . 192.8 250.3
Cumulative effect of accounting
changes . . . . . . . . . . . . . (6.8) --
--------- ---------
Income from financing operations . . $ 186.0 $ 250.3
========= =========
*Before elimination of intercompany amounts.
(continued)
<PAGE>27
EXHIBIT 20
Page 14 of 16
SUPPLEMENTARY FINANCIAL DATA (continued)
SUMMARY OF FINANCING OPERATIONS* (concluded)
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- --------------------------- --------- --------- ---------
ASSETS
Cash and cash equivalents . $ 2,363.1 $ 3,980.6 $ 7,241.3
--------- --------- ---------
Earning Assets
Investments in securities . 12.2 18.4 41.8
--------- --------- ---------
Finance receivables . . . . 55,193.5 54,882.8 52,281.1
Less-Allowance for financing
losses . . . . . . . . . . (763.1) (748.0) (709.1)
--------- --------- ---------
Finance receivables (net) . 54,430.4 54,134.8 51,572.0
Receivable General Motors
Corporation . . . . . . 1,414.4 1,355.5 11,281.7
Other earning assets . . . 17,922.7 15,843.8 14,299.8
--------- --------- ---------
Total earning assets . . . 73,779.7 71,352.5 77,195.3
--------- --------- ---------
Other assets . . . . . . . 1,043.3 1,061.5 1,110.4
--------- --------- ---------
Total assets . . . . . . . $77,186.1 $76,394.6 $85,547.0
--------- --------- ---------
LIABILITIES
Notes, loans and debentures
payable within one year . $34,551.8 $35,084.4 $38,861.2
--------- --------- ---------
Accounts payable and other
liabilities
General Motors Corporation
and affiliated
companies . . . . . . . 3,137.0 2,514.0 2,636.0
Other post employment
benefits . . . . . . . . 443.0 436.9 412.6
Other . . . . . . . . . 4,546.4 3,991.9 4,595.0
--------- --------- ---------
Total accounts payable and
other liabilities . . . . 8,126.4 6,942.8 7,643.6
--------- --------- ---------
Notes, loans and debentures
payable after one year . 27,879.0 27,688.8 31,851.7
--------- --------- ---------
Total liabilities . . . . $70,557.2 $69,716.0 $78,356.5
--------- --------- ---------
Net assets of financing
operations . . . . . . . $ 6,628.9 $ 6,678.6 $ 7,190.5
========= ========= =========
*Before elimination of intercompany amounts.
<PAGE>28
EXHIBIT 20
Page 15 of 16
SUPPLEMENTARY FINANCIAL DATA (continued)
SUMMARY OF INSURANCE OPERATIONS*
Three Months Ended
March 31
---------------------
(in millions of dollars) 1994 1993
- ------------------------------------ --------- ---------
INCOME
Net premiums written
Personal lines . . . . . . . . . . $ 116.2 $ 117.7
Mechanical . . . . . . . . . . . 76.4 78.8
Life and disability . . . . . . . 21.8 18.1
Commercial lines, reinsurance and
miscellaneous . . . . . . . . . . 92.6 85.1
--------- ---------
Net premiums written . . . . . . . . 307.0 299.7
Changes in unearned premiums . . . (20.6) (11.6)
--------- ---------
Premiums earned . . . . . . . . . . 286.4 288.1
Investments and other income . . . . 82.7 130.3
--------- ---------
Total . . . . . . . . . . . . . . . 369.1 418.4
Expenses
Salaries and benefits . . . . . . 33.7 30.1
Other operating expenses . . . . . 64.2 34.4
Losses and loss adjustment
expenses . . . . . . . . . . . . 229.7 309.2
Amortization of intangible
assets . . . . . . . . . . . . . 2.5 2.5
--------- ---------
Total expenses . . . . . . . . . . . 330.1 376.2
--------- ---------
Income before income taxes . . . . . 39.0 42.2
Income taxes . . . . . . . . . . . . 6.9 8.4
--------- ---------
Income before cumulative effect of
accounting changes . . . . . . . . 32.1 33.8
Cumulative effect of accounting
changes . . . . . . . . . . . . . (0.6) --
--------- ---------
Income from insurance operations . . $ 31.5 $ 33.8
========= =========
*Before elimination of intercompany amounts.
(continued)
<PAGE>29
EXHIBIT 20
Page 16 of 16
SUPPLEMENTARY FINANCIAL DATA (concluded)
SUMMARY OF INSURANCE OPERATIONS* (concluded)
March 31 Dec. 31 March 31
(in millions of dollars) 1994 1993 1993
- --------------------------- --------- --------- ---------
ASSETS
Cash . . . . . . . . . . . $ 22.9 $ 47.5 $ 41.3
Investments in securities . 3,521.2 3,431.3 3,352.7
Premiums and other
receivables . . . . . . . 263.4 262.5 298.3
Deferred policy acquisition
cost . . . . . . . . . . 81.6 77.0 160.4
Prepaid reinsurance
premiums . . . . . . . . 113.7 105.5 --
Reinsurance recoverable on
unpaid insurance losses
and loss adjustment
expense . . . . . . . . . 216.9 220.3 --
Other assets . . . . . . . 270.3 270.9 523.2
--------- --------- ---------
Total Assets . . . . . . . $ 4,490.0 $ 4,415.0 $ 4,375.9
--------- --------- ---------
LIABILITIES
Unpaid insurance losses and
loss adjustment expenses . $ 1,578.1 $ 1,569.4 $ 1,555.4
Unearned insurance
premiums . . . . . . . . . 1,366.2 1,337.4 1,276.7
Deferred federal income
taxes . . . . . . . . . . (23.1) (11.3) 13.3
Other post employment
benefits . . . . . . . . . 90.9 88.0 80.8
Other . . . . . . . . . . . 283.5 257.8 384.1
--------- --------- ---------
Total liabilities . . . . . $ 3,295.6 $ 3,241.3 $ 3,310.3
--------- --------- ---------
Net assets of insurance
operations . . . . . . . $ 1,194.4 $ 1,173.7 $ 1,065.6
========= ========= =========
*Before elimination of intercompany amounts.
