==============================================================================
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 SEPTEMBER 30, 1997, 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 313-556-5000
------------
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 September 30, 1997, there were outstanding 22,000,000 shares of the
issuer's common stock.
DOCUMENTS INCORPORATED BY REFERENCE
None
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<PAGE>
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 1. 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.
In the opinion of management, the interim financial statements reflect
all adjustments, consisting of only normal recurring items which are
necessary for a fair presentation of the results for the interim
periods presented. The results for interim periods are unaudited and
are not necessarily indicative of results that 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 1996
Annual Report to the Securities and Exchange Commission on Form 10-K.
The Financial Statements described below are submitted herein as
Exhibit 20.
1. Consolidated Balance Sheet, September 30, 1997, December 31, 1996
and September 30, 1996.
2. Consolidated Statement of Income and Net Income Retained for Use
in the Business for the Third Quarter and Nine Months Ended
September 30, 1997 and 1996.
3. Consolidated Statement of Cash Flows for the Nine Months Ended
September 30, 1997 and 1996.
4. Notes to Consolidated Financial Statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS
Consolidated net income for the third quarter and nine months ended September
30, 1997 increased by 2% and 6% over the comparable prior year periods.
<TABLE>
<CAPTION>
Period Ended September 30,
Third Quarter | Nine Months
------------- | -----------
<S> <C> <C> | <C> <C>
(in millions of dollars) 1997 1996 | 1997 1996
------ ------ | ------ ------
|
Financing Operations* $262.5 $252.4 | $ 851.6 $842.5
Insurance Operations** 50.1 54.9 | 170.7 123.9
------ ------ | -------- ------
Consolidated Net Income $312.6 $307.3 | $1,022.3 $966.4
====== ====== ======== ======
Consolidated Return
on Average Equity 14.4% 14.6% 16.1% 15.3%
* Includes GMAC Mortgage Group (GMACMG)
**Motors Insurance Corporation (MIC)
</TABLE>
The 4% increase in third quarter net income from financing operations is
primarily attributable to growth in mortgage financing operations. Earnings from
automotive financing were relatively unchanged period-to-period due to reduced
net financing margins partially offset by lower operating expenses. Net income
from insurance operations decreased 9% during the third quarter compared to the
same period in 1996. The quarterly decrease can be attributed to lower capital
gains partially offset by improved underwriting results in automobile insurance
and extended warranty coverages.
UNITED STATES NEW PASSENGER CAR AND TRUCK DELIVERIES
Increases in the percentage of new GM vehicles financed by GMAC for the three
and nine month periods ended September 30, 1997, compared to the same periods in
1996, can be attributed primarily to special rate financing and incentivized
retail installment sales programs sponsored by General Motors Corporation(GM).
<TABLE>
<CAPTION>
Period Ended September 30,
Third Quarter | Nine Months
------------- | -----------
1997 1996 | 1997 1996
---- ---- | ---- ----
(in millions of units) |
<S> <C> <C> | <C> <C>
Industry ............... 4.0 3.9 | 11.8 11.9
General Motors ......... 1.3 1.2 | 3.6 3.7
|
New GM Vehicle Deliveries |
Financed by GMAC |
Retail (Installment Sale |
Contracts and |
Operating Leases) .... 37.6% 29.0% | 33.3% 30.6%
Fleet Transactions |
(Lease Financing) ..... 1.4% 4.7% | 2.8% 5.0%
Total .................. 31.3% 24.9% | 27.2% 25.6%
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
FINANCING VOLUME
The number of new vehicle deliveries financed during the third quarter and nine
months ended September 30, 1997 and 1996 are summarized below:
<TABLE>
<CAPTION>
Period Ended September 30,
Third Quarter | Nine Months
------------- | -----------
1997 1996 | 1997 1996
---- ---- | ---- ----
(in thousands of units) |
UNITED STATES |
<S> <C> <C> | <C> <C> |
Retail Installment Sale |
Contracts ........... 279 150 | 649 517
Operating Leases ..... 114 143 | 328 426
Leasing .............. 4 13 | 25 47
--- --- | ----- -----
New Deliveries Financed 397 306 | 1,002 990
=== === | ===== =====
|
OTHER COUNTRIES |
Retail Installment Sale |
Contracts ........... 106 91 | 293 251
Operating Leases ..... 82 58 | 243 166
Leasing .............. 17 22 | 54 62
--- --- | ----- -----
New Deliveries Financed 205 171 | 590 479
=== === | ===== =====
|
WORLDWIDE |
Retail Installment Sale |
Contracts ........... 385 241 | 942 768
Operating Leases ..... 196 201 | 571 592
Leasing .............. 21 35 | 79 109
--- --- | ----- -----
New Deliveries Financed 602 477 | 1,592 1,469
=== === ===== =====
</TABLE>
During the three and nine month periods ending September 30, 1997, the Company
financed a greater number of new vehicles in the U.S., compared to the same
periods in 1996. The increased number of retail contracts can be attributed to
an increase in special rate incentives sponsored by GM in the third quarter of
1997. Operating lease volume declined in the U.S. due to a reduction in special
rate operating lease plans offered by GM during 1997. For the third quarter and
first nine months of 1997, new deliveries financed in other countries increased
20% and 23%, compared to the same respective periods in 1996. The increase was
primarily attributable to growth in Canadian retail installment sale contracts
and Canadian and European operating leases.
GMAC also provides wholesale financing for GM and other dealers' new and used
vehicle inventories. In the United States, inventory financing was provided for
756,000 and 2,428,000 new GM vehicles during the third quarter and first nine
months of 1997, compared with 799,000 and 2,479,000 new GM vehicles during the
same periods in 1996. GMAC's wholesale financing represented 67.5% of all GM
U.S. vehicle sales to dealers during the first nine months of 1997, down from
70.1% for the comparable period a year ago. The decline in wholesale financing
levels can be attributed to competitive market conditions.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INCOME AND EXPENSES
Consolidated financing revenue totaled $3.1 billion for the third quarter of
1997, 2% below the comparable period in 1996. Results for the nine month period
ended September 30, 1997 were $9.5 billion, essentially unchanged from the same
period last year. Retail and leasing revenues were down 4% for the quarter, and
1% for the nine month period, principally due to lower average asset levels in
the United States. Wholesale and term loan financing revenue increased 15% and
7% during the third quarter and nine month period, respectively. This can be
attributed to higher average wholesale outstandings due to the absence of sales
of wholesale receivables during the first nine months of 1997 compared with $1.9
billion sold during the first nine months of 1996.
The Company's worldwide cost of borrowing for the third quarter and first nine
months of 1997 averaged 6.34% and 6.30%, respectively, a decrease of 15 and 26
basis points from the comparable periods one year ago. Total borrowing costs for
U.S. operations averaged 6.44% and 6.38% for the third quarter and first nine
months of 1997, compared to 6.44% and 6.48% for the respective periods in 1996.
The lower average borrowing costs for the nine months of 1997 were attributable
to a greater proportion of floating rate short-term borrowings in GMAC's funding
mix.
Other income, including gains and fees related to sold finance receivables as
well as mortgage banking activities, totaled $698.8 million and $1,933.9 million
for the third quarter and nine months ended September 30, 1997, respectively,
compared to $557.3 million and $1,545.2 million during the comparable 1996
periods. The increase during 1997 is principally the result of higher revenues
from mortgage operations and an increase in capital gains from insurance
operations.
Annualized net retail losses were 1.12% and 1.27% of total average retail
serviced assets during the third quarter and first nine months of 1997, compared
to 1.23% and 1.21% for the same periods last year. For the three and nine month
periods ended September 30, 1997, the provision for financing losses decreased
by 3% and 9% from the respective 1996 periods.
Salaries and benefits increased 19% and 12% for the three and nine month periods
ended September 30, 1997 when compared to the same periods in 1996. The
increases are a result of continued growth in mortgage operations.
Other operating expenses totaled $411.6 million and $1,256.5 million for the
three and nine month periods ended September 30, 1997, 13% and 1% below the
respective prior year periods. The 13% decline for the comparative quarters was
mainly attributable to lower provisions for repossessed assets and non-income
taxes.
United States, foreign and other income tax expense totaled $242.5 million and
$745.9 million for the three and nine month periods ended September 30, 1997.
This represents a 4% and 16% increase compared to the same periods in 1996. The
increased expense can be attributed to higher consolidated net income before
taxes and the effects of U.S. federal taxes on foreign source income.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
In August 1997, the Company announced that it intended to acquire certain
operating assets of LSI Holdings, Inc., a subprime financing and servicing
company, and is establishing Nuvell Credit Corporation and Nuvell Financial
Services Corporation as two new subsidiaries that will conduct subprime
financing and servicing operations, respectively, in the United States. The
transaction was completed with an effective date of November 1, 1997. The
acquisition will enable GMAC to continue its growth strategy in the financial
services industry.
MORTGAGE OPERATIONS
GMACMG has continued to maintain its position as a leading mortgage banker in
the United States. The favorable earnings growth for GMACMG in 1997 reflects
increased revenue in all segments of the mortgage business. The combined GMACMG
servicing portfolio, excluding GMAC term loans to dealers, at September 30, 1997
totaled $128.6 billion, 20% and 24% higher than at December 31 and September 30,
1996, respectively. The increases were primarily attributable to higher
commercial and master servicing outstandings.
INSURANCE OPERATIONS
MIC's net income for the respective three and nine month periods ended September
30, 1997 was $50.1 million and $170.7 million, 9% lower and 38% higher than the
comparable periods in 1996. During the third quarter of 1997, lower capital
gains, partially offset by improved underwriting results, caused the earnings
decline. The income increase during the first nine months of 1997 compared to
the same period in 1996 is primarily attributable to a $33.3 million increase in
capital gains and improved underwriting results.
As reported in the Company's June 30, 1997 Quarterly Report on Form 10-Q, the
Company announced an agreement providing for Integon Corporation, a non-standard
automotive insurance provider, to merge with a wholly-owned subsidiary of GMAC.
In October 1997, regulatory and shareholder approvals were received and the
acquisition was completed for a purchase price of $528 million plus the
assumption of $250 million in long-term debt.
FINANCIAL CONDITION AND LIQUIDITY
At September 30, 1997, the Company owned assets and serviced automotive
receivables totaling $113.6 billion, $5.5 billion above year-end 1996, and $7.0
billion above September 30, 1996 levels. Earning assets totaled $102.3 billion
at September 30, 1997, compared to $95.7 billion and $93.2 billion at December
31 and September 30, 1996, respectively. The increases over the comparable prior
year periods can be attributed to higher outstanding balances for wholesale and
operating lease receivables, real estate mortgages and investments in
securities.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Finance receivables serviced by the Company, including sold receivables, totaled
$69.2 billion at September 30, 1997, relatively unchanged from the December 31
and September 30, 1996 balances of $69.1 billion and $68.8 billion respectively.
Consolidated operating lease assets, net of depreciation, totaled $26.4 billion
at September 30, 1997, reflecting increases of 6% and 5% over December 31 and
September 30, 1996 balances, respectively. The portfolio growth reflects a
continued trend of more consumers selecting leasing as a method to finance
vehicles.
Investments in securities at September 30, 1997 totaled $5.8 billion, compared
with $4.6 billion and $4.4 billion at December 31 and September 30, 1996,
respectively. The year-to-year increase was primarily due to growth of
mortgage-related securities and insurance operations portfolios. In addition,
the September 30, 1997 balance includes the effects of the January 1, 1997
adoption of Statement of Financial Accounting Standard ("SFAS") No. 125,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities, for certain mortgage-related securities. This new accounting
standard requires that excess servicing fees, formerly included in other assets,
be reclassified as financial assets.
The Company's due and deferred from receivable sales (net) totaled $1.0 billion
at September 30, 1997, 18% and 21% below balances at December 31 and September
30, 1996, respectively. The decrease during the first nine months of 1997
resulted principally from the recent maturity of a revolving trust of sold
wholesale accounts and the Company's administrative repurchase of retail
receivables outstanding from four prior sale transactions.
As of September 30, 1997, GMAC's total borrowings were $82.9 billion, an
increase from $78.7 billion and $75.0 billion at December 31 and September 30,
1996, respectively. The higher year-to-year debt levels were principally used to
fund increased earning asset levels. GMAC's ratio of debt to total stockholder's
equity at September 30, 1997 was 9.6:1, compared to 9.5:1 at December 31, 1996,
and 9.1:1 at September 30, 1996. During the third quarter of 1997, the Company
continued to utilize its asset securitization program by selling retail finance
receivables totaling $2.1 billion. The Company continues to service these
receivables for a fee.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The Company and its subsidiaries continue to maintain substantial bank lines of
credit which totaled $39.6 billion at September 30, 1997, compared to $40.7
billion at year-end 1996 and $40.8 billion at September 30, 1996. The unused
portion of these credit lines totaled $31.1 billion at September 30, 1997, $0.5
billion higher and $0.9 billion lower than December 31 and September 30, 1996
balances, respectively. Included in the unused credit lines are a committed U.S.
revolving credit facility of $10.0 billion which serves primarily as back-up for
GMAC's unsecured commercial paper program and a $11.5 billion U.S. asset-backed
commercial paper liquidity and receivables credit facility for New Center Asset
Trust (NCAT), a non-consolidated limited purpose business trust established to
issue asset-backed commercial paper.
As discussed in the Company's 1996 Annual Report on Form 10-K, a variety of
interest rate and currency derivative instruments are utilized in managing
interest rate and foreign exchange exposures. During the nine month period ended
September 30, 1997, there were no significant changes in the Company's use of
derivative financial instruments.
CASH FLOWS
Cash provided by operating activities during the nine months ended September 30,
1997 totaled $3.8 billion, a decrease from the $4.7 billion provided during the
comparable 1996 period. The decrease was primarily attributable to increased net
purchases of both mortgage loans and mortgage trading securities, partially
offset by higher taxes payable and increases in payables to GM for vehicle
shipments to dealers under GMAC wholesale finance agreements.
Cash used for investing activities during the first nine months of 1997 totaled
$8.6 billion, compared with $4.5 billion during the same period in 1996. The
period-to-period increase was primarily attributable to lower sale of receivable
proceeds resulting from decreased asset securitization activity.
During the first nine months of 1997, cash provided by financing activities
totaled $4.5 billion, compared with approximately $0.7 billion of cash used by
financing activities during the nine months ended September 30, 1996. The $5.2
billion change was primarily attributable to increased proceeds from the
issuance of short term debt used to fund increases in wholesale receivable
balances.
ACCOUNTING STANDARDS
In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS No.
130, Reporting Comprehensive Income, effective for fiscal years beginning after
December 15, 1997. This statement requires that all items that are required to
be recognized under accounting standards as components of comprehensive income
be reported in a financial statement that is displayed with the same prominence
as other financial statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (concluded)
In June 1997, the FASB issued SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, effective for financial statements for
periods beginning after December 15, 1997. This statement establishes standards
for reporting information about operating segments in annual financial
statements and requires selected information about operating segments in interim
financial reports issued to shareholders. It also establishes standards for
related disclosures about products and services, geographic areas and major
customers.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company did not become a party to any material pending legal proceedings
during the third quarter ended September 30, 1997, or prior to the filing of
this report.
ITEM 5. OTHER INFORMATION
<TABLE>
RATIO OF EARNINGS TO FIXED CHARGES
<CAPTION>
Nine Months Ended
September 30,
-------------
<S> <C> <C>
1997 1996
---- ----
1.45 1.43
</TABLE>
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.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS:
20. General Motors Acceptance Corporation and Subsidiaries
Consolidated Financial Statements for the Third Quarter and Nine
Months Ended September 30, 1997.
(b) REPORTS ON FORM 8-K:
The Company did not file a Current Report on Form 8-K during the
quarter ended September 30, 1997.
<PAGE>
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/ Eric A. Feldstein
-------------------------------------
Dated: November 10, 1997 Eric A. Feldstein, Executive Vice
----------------- President and Principal Financial
Officer
s/ Gerald E. Gross
-------------------------------------
Dated: November 10, 1997 Gerald E. Gross, Comptroller and
----------------- Principal Accounting Officer
<PAGE>
<TABLE>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEET
Exhibit 20
Page 1 of 6
<CAPTION>
Sept. 30, Dec. 31, Sept. 30,
1997 1996 1996
---- ---- ----
(in millions of dollars)
<S> <C> <C> <C>
Cash and cash equivalents ......................... $ 476.0 $ 742.3 $ 921.7
---------- --------- ---------
EARNING ASSETS
Investments in securities ......................... 5,820.2 4,556.8 4,353.7
Finance receivables, net (Note 1) ................. 59,581.8 58,380.0 57,089.0
Investment in operating leases, net ............... 26,384.5 24,909.5 25,114.1
Notes receivable from General Motors Corporation... 454.3 190.5 136.9
Real estate mortgages - held for sale ............. 4,790.4 2,785.0 2,110.6
- held for investment ....... 774.0 611.2 776.2
- lending receivables ....... 1,999.6 1,404.6 1,000.7
Due and deferred from receivable sales, net ....... 993.9 1,214.5 1,254.3
Other ............................................. 1,499.4 1,617.6 1,326.8
---------- --------- ---------
Total earning assets ........................... 102,298.1 95,669.7 93,162.3
---------- --------- ---------
Nonearning assets ................................. 2,444.4 2,166.0 1,952.6
---------- --------- ---------
TOTAL ASSETS ...................................... $105,218.5 $98,578.0 $96,036.6
========== ========= =========
Notes, loans and debentures payable within
one year (Note 2) ................................ $ 48,112.1 $45,809.9 $41,861.7
---------- --------- ---------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and affiliated companies 1,477.5 646.6 1,201.1
Interest .......................................... 1,366.2 1,065.2 1,489.4
Unpaid insurance losses and loss adjustment expense 1,566.1 1,581.9 1,509.5
Unearned insurance premiums ....................... 1,494.6 1,437.5 1,427.0
Deferred income taxes ............................. 2,323.5 2,215.8 2,322.1
United States and foreign income and other taxes
payable .......................................... 442.4 35.6 39.1
Other postretirement benefits ..................... 652.5 627.0 626.0
Other ............................................. 4,290.7 4,012.0 4,186.6
---------- --------- ---------
Total accounts payable and other liabilities ... 13,613.5 11,621.6 12,800.8
---------- --------- ---------
Notes, loans and debentures payable after one year
(Note 3) ......................................... 34,828.9 32,878.9 33,097.1
---------- --------- ---------
Common stock, $100 par value (authorized 25,000,000
shares, outstanding 22,000,000 shares) ........... 2,200.0 2,200.0 2,200.0
Net income retained for use in the business ....... 6,147.5 5,775.2 5,801.1
Net unrealized gains on securities ................ 388.8 276.7 257.7
Unrealized accumulated foreign currency translation
adjustment ....................................... (72.3) 15.7 18.2
---------- --------- ---------
Total stockholder's equity ..................... 8,664.0 8,267.6 8,277.0
---------- --------- ---------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY ........ $105,218.5 $98,578.0 $96,036.6
========== ========= =========
Certain amounts for 1996 have been reclassified to conform with 1997
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND
NET INCOME RETAINED FOR USE IN THE BUSINESS
Exhibit 20
Page 2 of 6
Period Ended September 30,
Third Quarter Nine Months
------------- -----------
1997 1996 1997 1996
---- ---- ---- ----
(in millions of dollars)
FINANCING REVENUE
<S> <C> <C> <C> <C>
Retail and lease financing ..... $ 861.7 $ 945.8 $ 2,691.9 $ 2,859.0
Operating leases ............... 1,827.2 1,856.4 5,445.7 5,379.3
Wholesale and term loans ....... 416.9 361.6 1,320.3 1,229.0
--------- --------- --------- ---------
Total financing revenue ..... 3,105.8 3,163.8 9,457.9 9,467.3
Interest and discount .......... (1,307.9) (1,220.3) (3,885.6) (3,684.6)
Depreciation on operating leases (1,163.0) (1,163.6) (3,475.4) (3,437.2)
--------- --------- --------- ---------
Net financing revenue ....... 634.9 779.9 2,096.9 2,345.5
Insurance premiums earned ...... 302.5 279.6 914.3 865.0
Other income ................... 698.8 557.3 1,933.9 1,545.2
--------- --------- --------- ---------
NET FINANCING REVENUE AND
OTHER ...................... 1,636.2 1,616.8 4,945.1 4,755.7
--------- --------- --------- ---------
EXPENSES
Salaries and benefits .......... 282.8 238.0 806.9 719.6
Other operating expenses ....... 411.6 473.8 1,256.5 1,265.6
Insurance losses and loss
adjustment expenses ........... 248.0 221.9 717.6 729.2
Provision for financing losses . 138.7 143.5 395.9 433.3
--------- --------- --------- ---------
Total expenses .............. 1,081.1 1,077.2 3,176.9 3,147.7
--------- --------- --------- ---------
Income before income taxes ..... 555.1 539.6 1,768.2 1,608.0
United States, foreign and other
income taxes .................. 242.5 232.3 745.9 641.6
--------- --------- --------- ---------
NET INCOME .................. 312.6 307.3 1,022.3 966.4
Net income retained for use in
the business at beginning of
the period .................... 6,034.9 5,893.8 5,775.2 5,734.7
--------- --------- --------- ---------
Total .......................... 6,347.5 6,201.1 6,797.5 6,701.1
Cash dividends ................. 200.0 400.0 650.0 900.0
--------- --------- --------- ---------
NET INCOME RETAINED FOR USE
IN THE BUSINESS AT END OF
THE PERIOD ................. $ 6,147.5 $ 5,801.1 $ 6,147.5 $ 5,801.1
========= ========= ========= =========
Certain amounts for 1996 have been reclassified to conform with 1997
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Exhibit 20
Page 3 of 6
Nine Months Ended
September 30,
-------------
1997 1996
---- ----
(in millions of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income ............................................................ $ 1,022.3 $ 966.4
Depreciation .......................................................... 3,515.2 3,465.8
Provision for financing losses ........................................ 395.9 433.3
Gains on sales of finance receivables ................................. (55.9) (35.2)
Mortgage loans-originations/purchases ................................. (19,741.8) (14,116.9)
-proceeds on sale ....................................... 17,736.4 13,493.1
Mortgage related securities held for trading - acquisitions ........... (1,784.8) (334.7)
- liquidations ........... 1,034.8 287.3
Changes in the following items:
Due to General Motors Corporation and affiliated companies .......... 827.6 (550.8)
Taxes payable and deferred .......................................... 284.5 (82.0)
Interest payable .................................................... 308.5 442.8
Other assets ........................................................ (335.8) 34.1
Other liabilities ................................................... 367.5 524.0
Other ................................................................. 246.5 161.1
---------- ----------
Net cash provided by operating activities .......................... 3,820.9 4,688.3
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables-acquisitions ...................................... (128,299.6) (118,786.6)
-liquidations ...................................... 105,401.2 92,875.2
Notes receivable from General Motors Corporation ...................... (263.8) (136.9)
Operating leases-acquisitions ......................................... (12,400.8) (14,396.2)
-liquidations ......................................... 7,128.4 7,842.4
Investments in securities-acquisitions ................................ (13,707.9) (8,992.7)
-liquidations ........................................ 13,576.5 8,974.8
Proceeds from sales of receivables ......... .......................... 20,512.3 28,675.2
Due and deferred from receivable sales ................................ 309.9 152.3
Other ................................................................. (856.6) (716.3)
---------- ----------
Net cash used in investing activities .............................. (8,600.4) (4,505.8)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt with original maturities 90 days and over
-proceeds ........................................................ 39,904.8 40,146.5
-liquidations .................................................... (37,945.1) (37,865.7)
Debt with original maturities less than 90 days-net change ............ 3,198.6 (2,093.2)
Dividends paid ........................................................ (650.0) (900.0)
---------- ----------
Net cash provided by/(used in) financing activities ................ 4,508.3 (712.4)
---------- ----------
Effect of exchange rate changes on cash and cash equivalents .......... 4.9 3.0
---------- ----------
Net decrease in cash and cash equivalents .......................... (266.3) (526.9)
Cash and cash equivalents at the beginning of the period .............. 742.3 1,448.6
---------- ----------
Cash and cash equivalents at the end of the period .................... $ 476.0 $ 921.7
========== ==========
Certain amounts for 1996 have been reclassified to conform with 1997
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 4 of 6
NOTE 1. FINANCE RECEIVABLES
The composition of finance receivables outstanding at September 30, 1997,
December 31, 1996 and September 30, 1996 is summarized as follows:
<TABLE>
<CAPTION>
Sept. 30, Dec. 31, Sept. 30,
1997 1996 1996
---- ---- ----
(in millions of dollars)
United States
<S> <C> <C> <C>
Retail ................................ $ 26,796.8 $ 26,867.4 $ 27,142.5
Wholesale ............................. 15,864.7 13,825.8 12,876.6
Leasing and lease financing ........... 733.8 1,188.3 1,262.1
Term loans to dealers and others ...... 3,372.5 3,386.7 3,923.6
---------- ---------- ----------
Total United States .................... 46,767.8 45,268.2 45,204.8
---------- ---------- ----------
Europe
Retail ................................ 5,065.6 5,803.5 5,770.0
Wholesale ............................. 3,265.2 3,951.3 3,009.3
Leasing and lease financing ........... 543.2 561.9 544.0
Term loans to dealers and others ...... 270.9 241.9 235.4
---------- ---------- ----------
Total Europe ........................... 9,144.9 10,558.6 9,558.7
---------- ---------- ----------
Canada
Retail ................................ 1,041.8 657.8 663.2
Wholesale ............................. 2,235.1 1,615.8 1,622.1
Leasing and lease financing ........... 996.0 834.1 855.0
Term loans to dealers and others ...... 178.0 178.2 171.9
---------- ---------- ----------
Total Canada ........................... 4,450.9 3,285.9 3,312.2
---------- ---------- ----------
Other Countries
Retail ................................ 1,914.9 2,124.5 2,112.8
Wholesale ............................. 912.0 868.2 842.2
Leasing and lease financing ........... 568.7 611.1 566.6
Term loans to dealers and others ...... 173.5 134.6 126.0
---------- ---------- ----------
Total Other Countries .................. 3,569.1 3,738.4 3,647.6
---------- ---------- ----------
Total finance receivables .............. 63,932.7 62,851.1 61,723.3
---------- ---------- ----------
Deductions
Unearned income ....................... 3,443.1 3,549.3 3,768.5
Allowance for financing losses ........ 907.8 921.8 865.8
---------- ---------- ----------
Total deductions ....................... 4,350.9 4,471.1 4,634.3
---------- ---------- ----------
Finance receivables, net ............... $ 59,581.8 $ 58,380.0 $ 57,089.0
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 5 of 6
NOTE 2. NOTES, LOANS AND DEBENTURES PAYABLE WITHIN ONE YEAR
Sept. 30, Dec. 31, Sept. 30,
1997 1996 1996
---- ---- ----
(in millions of dollars)
Short-term notes
<S> <C> <C> <C>
Commercial paper ...................... $ 25,431.3 $ 22,650.8 $ 19,352.3
Master notes .......................... 300.7 289.3 294.0
Demand notes .......................... 3,721.6 3,396.4 3,450.7
Other ................................. 963.2 894.9 1,093.8
---------- ---------- ----------
Total principal amount ................. 30,416.8 27,231.4 24,190.8
Unamortized discount ................... (188.5) (189.4) (179.1)
---------- ---------- ----------
Total .................................. 30,228.3 27,042.0 24,011.7
---------- ---------- ----------
Bank loans and overdrafts
United States ......................... 1,317.8 1,068.0 1,257.6
Other Countries ....................... 5,852.3 7,756.4 6,458.5
---------- ---------- ----------
Total .................................. 7,170.1 8,824.4 7,716.1
---------- ---------- ----------
Other notes, loans and debentures
payable within one year (net)
United States ....................... 9,735.1 9,180.7 9,221.1
Other countries ..................... 978.6 762.8 912.8
---------- ---------- ----------
Total .................................. 10,713.7 9,943.5 10,133.9
---------- ---------- ----------
Total payable within one year .......... $ 48,112.1 $ 45,809.9 $ 41,861.7
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 20
Page 6 of 6
NOTE 3. NOTES, LOANS AND DEBENTURES PAYABLE AFTER ONE YEAR
Weighted average
interest rates at Sept. 30, Dec. 31, Sept. 30,
Maturity Sept. 30, 1997 1997 1996 1996
- --------------------- ----------------- ---------- ---------- -------
(in millions of dollars)
United States currency
<S> <C> <C> <C> <C>
1997 ................... -- $ -- $ -- $ 1,899.1
1998 ................... 6.0% 992.8 7,922.2 7,418.9
1999 ................... 6.7% 7,183.9 5,599.7 5,480.3
2000 ................... 7.1% 4,389.1 3,478.7 3,453.6
2001 ................... 7.0% 3,783.8 3,083.8 2,949.0
2002 ................... 6.3% 6,220.0 2,110.2 1,939.8
2003 - 2007 ............ 7.0% 4,306.7 3,602.5 3,461.5
2008 - 2012 ............ 10.2% 1,225.4 1,213.5 1,203.4
2013 - 2017 ............ 10.3% 373.8 373.8 373.8
2018 - 2049 ............ 5.3% 75.0 75.0 75.0
---------- ---------- ----------
Total United States currency 28,550.5 27,459.4 28,254.4
Other currencies
1998 - 2007 ............ 5.9% 6,984.8 6,157.9 5,575.0
---------- ---------- ----------
Total notes, loans and
debentures ............. 35,535.3 33,617.3 33,829.4
Unamortized discount..... (706.4) (738.4) (732.3)
---------- ---------- ----------
Total notes, loans and
debentures payable after
one year ............... $ 34,828.9 $ 32,878.9 $ 33,097.1
========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary financial information extracted from the General
Motors Acceptance Corporation Form 10-Q for the period ending September 30, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000040729
<NAME> GMAC
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 476
<SECURITIES> 5820
<RECEIVABLES> 63933
<ALLOWANCES> 908
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 26385
<DEPRECIATION> 0
<TOTAL-ASSETS> 105219
<CURRENT-LIABILITIES> 54459
<BONDS> 34829
0
0
<COMMON> 2200
<OTHER-SE> 6464
<TOTAL-LIABILITY-AND-EQUITY> 105219
<SALES> 0
<TOTAL-REVENUES> 12306
<CGS> 0
<TOTAL-COSTS> 4193
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 396
<INTEREST-EXPENSE> 3886
<INCOME-PRETAX> 1768
<INCOME-TAX> 746
<INCOME-CONTINUING> 1022
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1022
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
