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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 JUNE 30, 1998, 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)
DELAWARE 38-0572512
- ------------------------------ -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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 June 30, 1998, there were outstanding 10 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 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 1997 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, June 30, 1998, December 31,
1997 and June 30, 1997.
2. Consolidated Statement of Income, Net Income Retained for
Use in the Business and Comprehensive Income for the
Second Quarter and Six Months Ended June 30, 1998 and
1997.
3. Consolidated Statement of Cash Flows for the Six Months
Ended June 30, 1998 and 1997.
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 second quarter and first six months of 1998
increased by 8% and 1% compared to the same periods during 1997.
(in millions of dollars, after tax) Period Ended June 30,
Second Quarter Six Months
---------------- ----------------
1998 1997 1998 1997
------ ------ ------ ------
Automotive Financing Operations $288.0 $244.7 $534.6 $501.7
Insurance Operations * 53.9 42.2 133.6 120.6
Mortgage Operations** 22.8 50.8 45.8 87.4
------ ------ ------ ------
Consolidated Net Income $364.7 $337.7 $714.0 $709.7
====== ====== ====== ======
* GMAC Insurance Holdings, Inc. (GMACI)
** GMAC Mortgage Group, Inc. (GMACMG)
Consolidated Return on Average Equity 15.8% 16.1% 15.8% 17.0%
Earnings were 18% higher from automotive financing operations during the second
quarter of 1998, compared to the same period in 1997, primarily as a result of
an increase in retail financing volumes and a lower effective income tax rate,
partially offset by lower net financing margins.
Earnings from insurance operations increased by 28% during the second quarter of
1998, compared to the same period during 1997. Earnings were higher due to
increased capital gains, partially offset by higher weather-related losses on
dealership inventory coverages.
Net income from mortgage operations during the second quarter was $28 million
lower than the second quarter of 1997. The decline is the result of the effect
of higher than anticipated prepayment speeds, primarily on interest-only
products.
UNITED STATES NEW PASSENGER CAR AND TRUCK DELIVERIES
U.S. deliveries of new General Motors ("GM") vehicles during the second quarter
and first six months of 1998 were higher than comparable 1997 levels, despite
work stoppages at GM in early June that reduced production by an estimated
227,000 units. Increased incentive programs sponsored by GM resulted in the
Company's higher retail financing penetration.
Period Ended June 30,
Second Quarter Six Months
-------------- ------------
1998 1997 1998 1997
---- ---- ---- ----
(in millions of units)
Industry 4.5 4.1 8.2 7.8
General Motors 1.4 1.3 2.5 2.4
New GM Vehicle Deliveries Financed by GMAC
Retail (Installment Sale Contracts and
Operating Leases) 44.3% 29.9% 43.9% 30.9%
Fleet Transactions (Lease Financing) 2.5% 2.7% 2.2% 3.4%
---- ---- ----- -----
Total 36.5% 24.0% 35.7% 25.0%
===== ===== ===== =====
<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 second quarter and six
months ended June 30, 1998 and 1997 are summarized below:
Period Ended June 30,
Second Quarter Six Months
--------------- --------------
1998 1997 1998 1997
---- ---- ---- ----
(in thousands of units)
UNITED STATES
Retail Installment Sale Contracts 316 164 549 370
Operating Leases 203 132 346 214
Leasing 8 9 14 21
--- --- --- ---
New Deliveries Financed 527 305 909 605
=== === === ===
OTHER COUNTRIES
Retail Installment Sale Contracts 91 72 198 153
Operating Leases 99 97 154 161
Leasing 18 24 38 41
--- --- --- ---
New Deliveries Financed 208 193 390 355
=== === === ===
WORLDWIDE
Retail Installment Sale Contracts 407 236 747 523
Operating Leases 302 229 500 375
Leasing 26 33 52 62
--- --- ----- ---
New Deliveries Financed 735 498 1,299 960
=== === ===== ===
During the second quarter and first six months of 1998, the Company increased
its financing of new vehicles in the U.S. by 73% and 50%, respectively, over the
comparable periods in 1997. The higher financing volume is primarily the result
of an increase in retail and operating lease incentive programs sponsored by GM.
Outside of the U.S., Canadian and Latin American retail, as well as Canadian
operating lease volume, increased as a result of similar incentive plans offered
by GM during the first six months of 1998. These increases were partially offset
by lower operating lease volume in Europe.
GMAC also provides wholesale financing for GM and other dealers' new and used
vehicle inventories. In the United States, inventory financing was provided for
643,000 and 1,367,000 new GM vehicles during the second quarter and first six
months of 1998, compared with 831,000 and 1,672,000 new GM vehicles during the
same periods in 1997. GMAC's wholesale financing represented 63.1% of all GM
U.S. vehicle sales to dealers during the first six months of 1998, down from
67.8% for the comparable period a year ago. Increased competitive market
conditions led to the decline in wholesale penetration levels. The reduction in
wholesale financing volume is primarily a result of work stoppages at two GM
component plants in early June 1998 that halted production of wholesale units at
26 of 29 assembly plants in North America. The Company's June 1998 wholesale
financing volume reflects a significant decline as a result of this event. The
continuation of the work stoppage through July 28, 1998 will have a significant
unfavorable effect on the number of wholesale units financed by the Company in
the third quarter of 1998.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INCOME AND EXPENSES
Automotive financing revenue totaled $3,204.7 million and $6,311.5 million in
the second quarter and first six months of 1998, respectively, relatively
unchanged from $3,177.4 million and $6,352.1 million for the comparable periods
in 1997. Higher retail financing revenues were offset by a decline in wholesale
revenues, principally as a result of the GM work stoppage related reduction in
wholesale receivable balances. To the extent that work stoppages continued to
disrupt GM's production and shipment of vehicles through July 28, 1998, the
resulting decline in revenues will have a continuing impact on the Company's
results of operations during the third quarter of 1998.
The Company's worldwide cost of borrowing for the second quarter and first six
months of 1998 averaged 6.02% and 6.05%, respectively, a decrease of 29 and 23
basis points from the comparable periods of a year ago. Total borrowing costs
for U.S. operations averaged 5.92% and 6.00% for the second quarter and first
six months of 1998, compared to 6.38% and 6.35% for the respective periods in
1997. The lower average borrowing costs for the first six months of 1998 are
largely a result of lower long-term interest rates and a greater proportion of
floating rate debt compared to fixed rate debt.
Insurance premiums earned, mortgage revenue and other income totaled $1,317.2
million and $2,536.4 million for the second quarter and six months ended June
30, 1998, respectively, compared to $914.7 million and $1,846.9 million during
the comparable 1997 periods. The increase during the first six months of 1998
compared to the same period in 1997 corresponds with higher insurance premiums
and investment income resulting from the acquisition of Integon by GMACI in
October 1997, as well as an increase in mortgage investment income and higher
capital gains for insurance operations.
Consolidated salaries and other operating expenses totaled $855.0 million and
$1,643.2 million for the second quarter and first six months of 1998,
respectively, compared to $674.8 million and $1,369.0 million for the comparable
periods last year. The increase is mainly attributable to the acquisition of
Integon by GMACI and continued growth at GMACMG.
Annualized net retail losses were 0.73% and 0.88% of total average serviced
automotive receivables during the second quarter and first six months of 1998,
respectively, compared to 1.28% and 1.35% for the same periods last year. The
provision for credit losses totaled $228.7 million and $257.2 million for the
six month periods ended June 30, 1998 and 1997, respectively. The decline in the
provision is primarily attributable to lower credit losses resulting from
tightened credit standards.
The effective income tax rate for the first six months of 1998 was 31.5%,
compared to 41.2% and 41.5% at December 31, 1997 and June 30, 1997,
respectively. The decrease in the effective tax rate can be attributed to lower
U.S. and foreign taxes assessed on foreign source income and a favorable change
resulting from periodic assessments of state and local income tax accruals.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INSURANCE OPERATIONS
Net premiums earned by GMACI and its subsidiaries totaled $479.8 million and
$950.8 million for the second quarter and six month period ended June 30, 1998,
respectively, compared to $306.3 million and $611.8 million for the same periods
during 1997. Pre-tax capital gains and investment and other income at GMACI
totaled $123.2 million and $270.9 million for the second quarter and first six
months of 1998 compared to $73.5 million and $210.5 million for same periods in
1997. Insurance losses and loss adjustment expenses totaled $402.1 million and
$755.1 million during the second quarter and first six months of 1998, compared
to $241.3 million and $469.6 million for the same periods in 1997. The increases
in net premiums earned and losses are primarily a result of the inclusion of
Integon's non-standard automobile operations since its acquisition in October
1997. The increase in capital gains and investment income is due to additional
diversification of GMACI's investment portfolio during 1998 which resulted in a
higher concentration of gains during the first six months of 1998 compared to
the same period in 1997.
MORTGAGE OPERATIONS
During the second quarter and first six months of 1998, GMACMG loan origination,
mortgage servicing acquisitions and correspondent loan volume totaled $45.8
billion and $62.5 billion, respectively, compared to $12.5 billion and $20.0
billion for the same periods in 1997. The increase was primarily the result of
the acquisition of a $27.1 billion mortgage servicing portfolio and related
servicing assets plus the subservicing of an additional $6.4 billion in
bank-owned loans of Wells Fargo Bank, N.A. The transaction was completed
effective June 1, 1998.
Reflecting this acquisition and sustained growth over the past twelve months,
the combined GMACMG servicing portfolio, excluding GMAC term loans to dealers,
totaled $187.3 billion at June 30, 1998 compared with the $141.1 billion and
$115.1 billion serviced at December 31 and June 30, 1997, respectively.
For the first six months of 1998, net income decreased by $41.6 million,
compared to the same period in 1997. The decline in net income is primarily
attributable to the effect of higher than anticipated prepayment speeds, which
resulted in the revaluation of interest-only products and increased amortization
of mortgage servicing rights.
FINANCIAL CONDITION AND LIQUIDITY
At June 30, 1998, the Company owned assets and serviced automotive receivables
totaling $124.8 billion, $3.6 billion above year-end 1997, and $13.1 billion
above June 30, 1997. The higher balance compared to year-end 1997 predominantly
reflects increases in retail earning assets partially offset by a decline in
off-balance sheet wholesale serviced assets.
Additionally, the Company's non-prime financing subsidiary, Nuvell Financial
Services Corporation, serviced $1.5 billion in mortgage and other non-automotive
receivables at June 30, 1998, which is $0.7 billion less than the $2.2 billion
serviced at December 31, 1997.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Earning assets totaled $108.8 billion at June 30, 1998, compared to $104.5
billion and $100.9 billion at December 31 and June 30, 1997, respectively. The
change from year-end 1997 is principally the result of a $2.2 billion increase
in receivables due from GM as well as $1.8 billion and $1.7 billion increases in
net finance receivables and operating lease assets, respectively, partially
offset by a $1.2 billion decrease in real estate mortgages held for sale.
Finance receivables serviced by the Company, including sold receivables, totaled
$73.4 billion at June 30, 1998, $0.1 billion below December 31, 1997 levels and
$3.2 billion above June 30, 1997 levels. Retail receivables were $4.4 billion
higher than year-end 1997, a direct result of increased retail incentive
programs sponsored by GM. On-balance sheet wholesale receivables declined $3.3
billion during the same period due to the GM work stoppages. Also contributing
to the change, off-balance sheet serviced wholesale receivables decreased $1.6
billion, attributable to the scheduled wind down of a revolving wholesale trust
and the effects of the work stoppages.
Consolidated operating lease assets, net of depreciation, totaled $27.6 billion
at June 30, 1998, reflecting an increase of $1.7 billion over both December 31
and June 30, 1997 periods. The increase from year-end 1997 is primarily
attributable to additional GM sponsored lease incentive programs in the U.S.
during the first six months of 1998.
Investments in securities at June 30, 1998 totaled $7.9 billion, compared with
$7.9 billion and $5.5 billion at December 31 and June 30, 1997, respectively.
The increase from June 1997 to June 1998 is principally the result of continued
growth at GMACMG and the acquisition of Integon by GMACI.
The Company's due and deferred from receivable sales (net) totaled $240.0
million at June 30, 1998, compared with $690.5 million and $635.4 million at
December 31 and June 30, 1997, respectively. The significant decline in the June
30, 1998 balance was primarily due to the upgrade in GMAC's short-term debt
rating by Standard & Poor's Ratings Group in January 1998, which eliminated the
requirement to segregate and hold in trust the collections on sold receivables.
As of June 30, 1998, GMAC's total borrowings were $88.3 billion, compared with
$86.7 billion and $82.5 billion at December 31, 1997 and June 30, 1997,
respectively. The higher borrowings were used to fund increased earning asset
levels. GMAC's ratio of debt to total stockholder's equity at June 30, 1998 was
9.5:1, compared to 9.9:1 at December 31, 1997 and 9.7:1 at June 30, 1997.
Continuing to utilize its asset securitization program, the Company sold
additional retail finance receivables totaling $1.6 billion (net) during the
second quarter of 1998.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONCLUDED)
The Company and its subsidiaries maintain substantial bank lines of credit which
totaled $40.7 billion at June 30, 1998, compared to $39.8 billion at year-end
1997 and $40.2 billion at June 30, 1997. The unused portion of these credit
lines totaled $31.9 billion at June 30, 1998, $1.5 billion and $0.4 billion
higher than December 31 and June 30, 1997, 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 an $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.
Effective April 23, 1998, Moody's Investors Service increased the rating of the
Company's senior debt from A3 to A2. The increase in the rating was closely
related to the improved financial condition of GM, which also received the same
upgrade of its senior debt. Effective August 3, 1998, S&P affirmed its current
ratings on GMAC and revised its outlook on GMAC from stable to negative.
As discussed in the Company's 1997 Annual Report on Form 10-K, the Company
utilizes a variety of interest rate and currency derivative instruments in
managing its interest rate and foreign exchange exposures. The notional amount
of derivatives increased from $56.4 billion at December 31, 1997 to $70.8
billion at June 30, 1998. The change is primarily attributable to an increase in
financial instruments associated with mortgage related securities and mortgage
related commitments.
ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative
Instruments and Hedging Activities, effective for fiscal years beginning after
June 15, 1999. The new standard requires that all companies record derivatives
on the balance sheet as assets or liabilities, measured at fair value. Gains or
losses resulting from changes in the values of those derivatives would be
accounted for depending on the use of the derivative and whether it qualifies
for hedge accounting. Management is currently assessing the impact of SFAS No.
133 on the financial statements of the Company. The Company will adopt this
accounting standard on January 1, 2000, as required.
In the first quarter of 1998, the AICPA's Accounting Standards Executive
Committee issued Statement of Position (SOP) 98-1, Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use. SOP 98-1 provides
guidance on the capitalization of software for internal use. GMAC will adopt SOP
98-1 on January 1, 1999, as required. Management is currently assessing the
impact of this SOP on the financial statements of the Company.
In February 1998, the FASB issued SFAS No. 132, Employers' Disclosures about
Pensions and Other Postretirement Benefits. SFAS No. 132 requires an entity to
disclose certain information about pensions and other postretirement benefits.
The effect of adopting this new accounting standard will not be material to the
Company's consolidated financial statements, when adopted for this fiscal year,
as required.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company did not become a party to any material pending legal proceedings
during the second quarter ended June 30, 1998, or prior to the filing of this
report.
ITEM 5. OTHER INFORMATION
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended
June 30,
----------------
1998 1997
---- ----
1.36 1.47
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 Second Quarter
and Six Months Ended June 30, 1998.
(b) REPORTS ON FORM 8-K:
The Company filed a Form 8-K on April 27, 1998 to report the
following information:
On April 23, 1998, Moody's Investors Service, Inc. (Moody's),
raised certain credit ratings of the Company and its parent,
General Motors Corporation (GM).
The Moody's rating of the Company's senior debt was upgraded from
A3 to A2, seventh and sixth highest among ten investment grade
ratings available, respectively. The A2 rating is assigned to the
bonds considered to have "upper medium grade" quality as they
possess many favorable investment attributes with security factors
for principal and interest considered to be adequate.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (CONCLUDED)
(b) REPORTS ON FORM 8-K: (concluded)
The Company's short term rating, which was upgraded to Prime-1 on
May 30, 1995, remains unchanged.
The Company is pleased with the upgraded ratings as it expects to
benefit from enhanced financial flexibility and lower borrowing
costs.
<PAGE>
The Company is presently not under review by any of the nationally
recognized statistical rating agencies. Additional disclosures
regarding credit ratings are provided on pages 15 and 16 of the
Company's Annual Report on Form 10-K for the year ended December
31, 1997, filed with the Securities and Exchange Commission on
March 17, 1998.
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/ WILLIAM F. MUIR
Dated: August 4, 1998 ---------------------------------
-------------- William F. Muir, Executive Vice
President and Principal Financial
Officer
S/ GERALD E. GROSS
Dated: August 4, 1998 --------------------------------
-------------- Gerald E. Gross, Comptroller and
Principal Accounting Officer
<PAGE>
<TABLE>
Exhibit 20
Page 1 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEET
<CAPTION>
June 30, Dec. 31, June 30,
1998 1997 1997
----------- ---------- -----------
(in millions of dollars)
<S> <C> <C> <C>
Cash and cash equivalents $ 873.0 $ 759.2 $ 814.3
EARNING ASSETS
Investments in securities 7,855.4 7,896.1 5,542.4
Finance receivables, net (Note 1) 61,445.5 59,630.8 61,292.7
Investment in operating leases, net 27,551.4 25,849.1 25,819.9
Notes receivable from General Motors Corporation 2,718.5 551.7 469.8
Real estate mortgages - held for sale 3,938.0 5,119.5 3,759.0
- held for investment 793.0 713.0 610.0
- lending receivables 1,825.8 2,222.9 1,448.8
Due and deferred from receivable sales, net 240.0 690.5 635.4
Other 2,450.3 1,807.6 1,314.1
----------- ----------- -----------
Total earning assets 108,817.9 104,481.2 100,892.1
Nonearning assets 4,647.5 4,078.9 2,266.6
----------- ----------- -----------
TOTAL ASSETS $ 114,338.4 $ 109,319.3 $ 103,973.0
=========== =========== ===========
Notes, loans and debentures payable within
one year (Note 2) 50,967.6 $ 50,399.5 $ 48,095.6
----------- ----------- -----------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and affiliated companies 1,738.6 698.9 1,302.0
Interest 1,225.1 1,101.8 1,150.0
Insurance losses and loss expenses 2,044.1 2,125.3 1,587.6
Unearned insurance premiums 1,858.0 1,804.1 1,450.3
Deferred income taxes 2,656.4 2,577.1 2,120.8
United States and foreign income and other taxes
payable 155.7 321.2 458.5
Other postretirement benefits 676.5 652.6 647.4
Other 6,364.3 4,607.5 4,301.6
----------- ------------ -----------
Total accounts payable and other liabilities 16,718.7 13,888.5 13,018.2
----------- ------------ -----------
Notes, loans and debentures payable after one year
(Note 3) 37,322.3 36,275.2 34,368.4
----------- ------------ -----------
Common stock, $.10 par value (authorized 10,000
shares, outstanding 10 shares) and paid-in capital 2,200.0 2,200.0 2,200.0
Net income retained for use in the business 6,890.3 6,326.3 6,034.9
Net unrealized gains on securities 408.2 368.5 327.8
Unrealized accumulated foreign currency translation
adjustment (168.7) (138.7) (71.9)
----------- ------------ -----------
Accumulated other comprehensive income 239.5 229.8 255.9
----------- ------------ -----------
Total stockholder's equity 9,329.8 8,756.1 8,490.8
----------- ------------ -----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 114,338.4 $ 109,319.3 $ 103,973.0
=========== ============ ===========
<FN>
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 2 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF INCOME,
NET INCOME RETAINED FOR USE IN THE BUSINESS AND
COMPREHENSIVE INCOME
<CAPTION>
Period Ended June 30,
Second Quarter Six Months
------------------------------- ------------------------------
1998 1997 1998 1997
--------------- -------------- --------------- -------------
(in millions of dollars)
FINANCING REVENUE
<S> <C> <C> <C> <C>
Retail and lease financing $ 950.3 $ 890.2 $ 1,852.3 $ 1,830.2
Operating leases 1,808.9 1,817.3 3,593.6 3,618.5
Wholesale and term loans 445.5 469.9 865.6 903.4
---------- ---------- ---------- ---------
Total automotive financing revenue 3,204.7 3,177.4 6,311.5 6,352.1
Interest and discount 1,454.7 1,311.9 2,839.2 2,577.7
Depreciation on operating leases 1,160.8 1,154.2 2,339.1 2,312.4
---------- ---------- ---------- ---------
Net automotive financing revenue 589.2 711.3 1,133.2 1,462.0
Insurance premiums earned 479.8 306.3 950.8 611.8
Mortgage revenue 500.5 371.9 917.9 673.0
Other income 336.9 236.5 667.7 562.1
---------- ---------- ---------- ---------
Net financing revenue and other 1,906.4 1,626.0 3,669.6 3,308.9
---------- ---------- ---------- ---------
EXPENSES
Salaries and benefits 288.5 258.6 578.4 524.1
Other operating expenses 566.5 416.2 1,064.8 844.9
Insurance losses and loss adjustment expenses 402.1 241.3 755.1 469.6
Provision for credit losses 121.5 127.3 228.7 257.2
---------- ---------- ---------- ---------
Total expenses 1,378.6 1,043.4 2,627.0 2,095.8
---------- ---------- ---------- ---------
Income before income taxes 527.8 582.6 1,042.6 1,213.1
United States, foreign and other income taxes 163.1 244.9 328.6 503.4
---------- ---------- ---------- ---------
NET INCOME 364.7 337.7 714.0 709.7
Net income retained for use in the business
at beginning of the period 6,600.6 5,797.2 6,326.3 5,775.2
---------- ---------- ---------- ---------
Total 6,965.3 6,134.9 7,040.3 6,484.9
Cash dividends 75.0 100.0 150.0 450.0
---------- ---------- ---------- ---------
NET INCOME RETAINED FOR USE IN THE BUSINESS
AT END OF THE PERIOD $ 6,890.3 $ 6,034.9 $ 6,890.3 $ 6,034.9
========== ========== ========== =========
TOTAL COMPREHENSIVE INCOME $ 341.9 $ 403.2 $ 723.7 $ 673.2
========== ========== ========== =========
<FN>
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 3 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
Six Months Ended June 30,
------------------------------
1998 1997
------------ -----------
(in millions of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 714.0 $ 709.7
Depreciation 2,373.8 2,336.6
Provision for credit losses 228.7 257.2
Gains on sales of finance receivables (31.0) (18.3)
Mortgage loans - originations/purchases (25,193.8) (10,759.2)
- proceeds on sale 26,375.3 9,785.2
Mortgage related securities held for trading - acquisitions (1,124.0) (1,255.5)
- liquidations 654.0 961.9
Changes in the following items:
Due to General Motors Corporation and affiliated companies 1,040.2 663.5
Taxes payable and deferred (100.4) 72.7
Interest payable 126.3 90.4
Other assets (390.2) (155.2)
Other liabilities 1,677.4 345.8
Other 102.2 149.0
---------- ----------
Net cash provided by operating activities 6,452.5 3,183.8
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables - acquisitions (78,432.3) (79,997.2)
- liquidations 58,895.8 63,303.6
Notes receivable from General Motors Corporation (2,175.9) (279.3)
Operating leases - acquisitions (9,337.8) (8,038.1)
- liquidations 4,916.6 4,534.6
Investments in securities - acquisitions (8,106.2) (10,560.9)
- liquidations 8,685.6 10,211.5
Proceeds from sales of receivables - wholesale 15,840.7 11,524.0
- retail 1,515.6 1,405.5
Due and deferred from receivable sales 446.9 633.3
Other (447.1) 108.5
---------- ----------
Net cash used in investing activities (8,198.1) (7,154.5)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 8,370.7 8,295.4
Principal payments on long-term debt (6,511.2) (7,024.0)
Change in short-term debt, net 150.2 3,215.8
Dividends paid (150.0) (450.0)
---------- ----------
Net cash provided by financing activities 1,859.7 4,037.2
---------- ----------
Effect of exchange rate changes on cash and cash equivalents (0.3) 5.5
Net increase in cash and cash equivalents 113.8 72.0
Cash and cash equivalents at the beginning of the period 759.2 742.3
---------- ----------
Cash and cash equivalents at the end of the period $ 873.0 $ 814.3
========== ==========
<FN>
Certain amounts for 1997 have been reclassified to conform with 1998
classifications.
Reference should be made to the Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 4 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. FINANCE RECEIVABLES
The composition of finance receivables outstanding at June 30, 1998, December
31, 1997 and June 30, 1997 is summarized as follows:
<CAPTION>
June 30, Dec. 31, June 30,
1998 1997 1997
------------------ ------------------- ------------------
(in millions of dollars)
United States
<S> <C> <C> <C>
Retail $ 30,651.5 $ 26,570.2 $ 26,232.3
Wholesale 12,102.8 15,212.7 16,792.3
Leasing and lease financing 651.8 716.2 993.7
Term loans to dealers and others 4,319.5 3,506.6 3,358.8
---------- ---------- ----------
Total United States 47,725.6 46,005.7 47,377.1
---------- ---------- ----------
Europe
Retail 4,990.0 4,944.2 5,189.2
Wholesale 3,414.6 3,828.5 3,613.3
Leasing and lease financing 481.8 578.1 575.3
Term loans to dealers and others 340.2 279.7 274.6
---------- ---------- ----------
Total Europe 9,226.6 9,630.5 9,652.4
---------- ---------- ----------
Canada
Retail 1,514.6 1,088.5 930.0
Wholesale 2,490.3 2,245.9 2,419.7
Leasing and lease financing 942.0 962.3 942.0
Term loans to dealers and others 312.4 215.6 246.4
---------- ---------- ----------
Total Canada 5,259.3 4,512.3 4,538.1
---------- ---------- ----------
Other Countries
Retail 2,191.9 2,026.0 2,180.3
Wholesale 1,013.7 1,048.0 984.7
Leasing and lease financing 512.5 523.7 602.4
Term loans to dealers and others 138.4 124.2 187.5
---------- ---------- ----------
Total Other Countries 3,856.5 3,721.9 3,954.9
---------- ---------- ----------
Total finance receivables 66,068.0 63,870.4 65,522.5
---------- ---------- ----------
Deductions
Unearned income 3,672.5 3,336.6 3,335.9
Allowance for credit losses 950.0 903.0 893.9
---------- ---------- ----------
Total deductions 4,622.5 4,239.6 4,229.8
---------- ---------- ----------
Finance receivables, net $ 61,445.5 $ 59,630.8 $ 61,292.7
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 5 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<CAPTION>
NOTE 2. NOTES, LOANS AND DEBENTURES PAYABLE WITHIN ONE YEAR
June 30, Dec. 31, June 30,
1998 1997 1997
---------- ---------- -----------
(in millions of dollars)
Short-term notes
<S> <C> <C> <C>
Commercial paper $ 27,997.8 $ 27,460.9 $ 26,113.4
Master notes 377.5 248.2 295.2
Demand notes 3,959.5 3,709.2 3,614.6
Other 1,222.2 869.3 939.7
----------- ---------- ----------
Total principal amount 33,557.0 32,287.6 30,962.9
Unamortized discount (154.3) (192.0) (205.8)
---------- ---------- ----------
Total 33,402.7 32,095.6 30,757.1
---------- ---------- ----------
Bank loans and overdrafts
United States 1,811.4 1,660.8 1,244.0
Other countries 5,495.2 6,850.1 6,448.4
---------- ---------- ----------
Total 7,306.6 8,510.9 7,692.4
---------- ---------- ----------
Other notes, loans and debentures
payable within one year
United States 8,899.4 8,869.2 8,758.9
Other countries 1,358.9 923.8 887.2
---------- ---------- ----------
Total 10,258.3 9,793.0 9,646.1
---------- ---------- ----------
Total payable within one year $ 50,967.6 $ 50,399.5 $ 48,095.6
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 6 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<CAPTION>
NOTE 3. NOTES, LOANS AND DEBENTURES PAYABLE AFTER ONE YEAR
Weighted Average
interest rates at June 30, Dec. 31, June 30,
Maturity June 30, 1998 1998 1997 1997
- ---------------------------------- ----------------- ---------- ----------- ----------
(in millions of dollars)
United States
<S> <C> <C> <C> <C>
1998 $ - $ - $ 2,762.8
1999 6.5% 2,802.1 8,479.7 6,774.2
2000 6.7% 6,214.9 4,567.7 4,258.0
2001 6.6% 5,748.5 4,534.8 3,758.5
2002 6.4% 6,616.0 6,329.1 4,674.2
2003 6.3% 4,692.8 2,602.8 2,269.9
2004 - 2008 6.6% 2,947.8 2,075.5 2,022.6
2009 - 2013 10.0% 1,286.4 1,215.4 1,215.4
2014 - 2018 10.3% 373.8 373.8 373.8
2019 - 2049 5.3% 75.0 75.0 75.0
---------- ---------- ----------
Total United States 30,757.3 30,253.8 28,184.4
Other countries
1998 - 2008 6.0% 7,248.5 6,715.2 6,908.1
---------- ---------- ----------
Total notes, loans and debentures 38,005.8 36,969.0 35,092.5
Unamortized discount (683.5) (693.8) (724.1)
---------- ---------- ----------
Total notes, loans and debentures
payable after one year $ 37,322.3 $ 36,275.2 $ 34,368.4
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
Exhibit 20
Page 7 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. SEGMENT INFORMATION
GMAC's reportable operating segments include GMAC North American Financing
Operations (GMAC-NAO), GMAC International Financing Operations (GMAC-IO),
Insurance Operations (GMACI) and Mortgage Operations (GMACMG). GMAC-NAO consists
of the United States and Canada, and GMAC-IO consists of all other countries and
Puerto Rico.
Financial results of GMAC's operating segments for the quarters and six months
ended June 30, 1998 and 1997 are summarized below:
<CAPTION>
OPERATING SEGMENTS:
- ------------------
(in millions of dollars)
Eliminations/
GMAC-NAO GMAC-IO GMACI GMACMG Reclassifications Totals
-------- ------- ----- ------ ----------------- ------
For the Quarters Ended:
June 30, 1998
- -------------
<S> <C> <C> <C> <C> <C> <C>
Net automotive
financing revenue $ 381.8 $ 205.6 $ 0.0 $ 0.0 $ 1.8 $ 589.2
Other revenue 378.1 6.2 598.0 339.6 (4.7) 1,317.2
Net income 232.4 55.6 53.9 22.8 0.0 364.7
June 30, 1997
- -------------
Net automotive
financing revenue $ 503.1 $ 211.6 $ 0.0 $ 0.0 $ (3.4) $ 711.3
Other revenue 256.8 4.8 381.7 271.6 (0.2) 914.7
Net income 187.4 57.3 42.2 50.8 0.0 337.7
For the Six Months Ended:
June 30, 1998
- -------------
Net automotive
financing revenue $ 741.6 $ 408.6 $ 0.0 $ 0.0 $(17.0) $1,133.2
Other revenue 707.6 13.1 1,211.7 592.7 11.3 2,536.4
Net income 422.6 112.0 133.6 45.8 0.0 714.0
June 30, 1997
- -------------
Net automotive
financing revenue $1,044.6 $ 424.3 $ 0.0 $ 0.0 $ (6.9) $1,462.0
Other revenue 518.9 9.2 826.1 493.0 (0.3) 1,846.9
Net income 387.2 114.5 120.6 87.4 0.0 709.7
</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 June 30, 1998 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 873
<SECURITIES> 7855
<RECEIVABLES> 66068
<ALLOWANCES> 950
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 27551
<DEPRECIATION> 0
<TOTAL-ASSETS> 114338
<CURRENT-LIABILITIES> 57989
<BONDS> 37322
0
0
<COMMON> 2200
<OTHER-SE> 7130
<TOTAL-LIABILITY-AND-EQUITY> 114338
<SALES> 0
<TOTAL-REVENUES> 8848
<CGS> 0
<TOTAL-COSTS> 3094
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 229
<INTEREST-EXPENSE> 2839
<INCOME-PRETAX> 1043
<INCOME-TAX> 329
<INCOME-CONTINUING> 714
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 714
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
