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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 SEPTEMBER 30, 1999, 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 September 30, 1999, 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 1998
Annual Report filed with 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, 1999, December 31, 1998
and September 30, 1998.
2. Consolidated Statement of Income, Net Income Retained for Use in
the Business and Comprehensive Income for the Third Quarter and
Nine Months Ended September 30, 1999 and 1998.
3. Consolidated Statement of Cash Flows for the Nine Months Ended
September 30, 1999 and 1998.
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 first nine months of 1999
increased by 25% and 14% when compared to the same periods during 1998.
Period Ended September 30,
----------------------------------------
Third Quarter Nine Months
------------------ --------------------
1999 1998 1999 1998
-------- --------- --------- ----------
Automotive financing operations $ 286.5 $249.5 $ 790.6 $ 784.1
Insurance operations * 54.8 54.2 169.9 187.8
Mortgage operations** 51.0 9.4 215.2 55.2
======== ========= ========= ==========
Consolidated net income $ 392.3 $313.1 $1,175.7 $1,027.1
======== ========= ========= ==========
* GMAC Insurance Holdings, Inc. (GMACI)
** GMAC Mortgage Group, Inc. (GMACMG)
Net income from automotive financing operations increased 15% during the third
quarter of 1999, compared to the same period in 1998. Earnings were higher due
primarily to increased financing volumes, partially offset by a significantly
higher effective tax rate. Additionally, net income in the third quarter of 1998
was adversely impacted by the effects of the GM strike.
Earnings from insurance operations were virtually unchanged from the same period
in 1998.
Net income from mortgage operations during the third quarter of 1999 was $41.6
million higher than the third quarter of 1998. Earnings were higher primarily
due to unusually low earnings in the third quarter of 1998, which were
negatively impacted by illiquidity in the capital markets and accelerated
prepayment experience on mortgage assets.
UNITED STATES NEW PASSENGER CAR AND TRUCK DELIVERIES
U.S. deliveries of new General Motors (GM) vehicles during the third quarter of
1999 and the first nine months of 1999 were higher than comparable 1998 levels,
primarily due to production in 1998 being reduced by an estimated 545,000 units
due to a 54-day work stoppage from June 5, 1998 through July 28, 1998 at GM. The
continued decline in retail financing penetration was primarily the result of
competitive market conditions.
Period Ended September 30,
-----------------------------------
Third Quarter Nine Months
---------------- -----------------
1999 1998 1999 1998
------- ------- -------- --------
(in millions of units)
Industry 4.5 3.8 13.3 12.0
General Motors 1.3 0.9 3.9 3.5
New GM vehicle deliveries financed by GMAC
Retail (installment sale contracts and 43.2% 45.6% 41.8% 44.3%
operating leases)
Fleet transactions (lease financing) 1.1% 1.8% 1.6% 2.1%
Total 36.5% 37.7% 33.8% 36.2%
<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 for GM and other dealers are
summarized below:
Period Ended September 30,
-----------------------------
Third Quarter Nine Months
-------------- --------------
1999 1998 1999 1998
------ ------ ------ ------
(in thousands of units)
UNITED STATES
Retail installment sale contracts 235 207 701 756
Operating leases 239 143 615 489
Leasing 3 5 18 18
====== ====== ====== ======
New deliveries financed 477 355 1,334 1,263
====== ====== ====== ======
OTHER COUNTRIES
Retail installment sale contracts 141 119 351 318
Operating leases 79 86 230 240
Leasing 17 15 50 53
====== ====== ====== ======
New deliveries financed 237 220 631 611
====== ====== ====== ======
WORLDWIDE
Retail installment sale contracts 376 326 1,052 1,074
Operating leases 318 229 845 729
Leasing 20 20 68 71
====== ====== ====== ======
New deliveries financed 714 575 1,965 1,874
====== ====== ====== ======
The number of new vehicles financed in the U.S. during the third quarter and
first nine months of 1999 increased from the respective 1998 periods, primarily
as a result of the impact of the 1998 work stoppage mentioned earlier and
continued operating lease incentive programs sponsored by GM in the U.S.
GMAC also provides wholesale financing for GM and other dealers' new and used
vehicle inventories. In the United States, inventory financing was provided for
852,000 and 2,580,000 new GM vehicles during the third quarter and first nine
months of 1999, respectively, compared with 564,000 and 1,931,000 new GM
vehicles during the respective periods in 1998. The significant increase in new
GM vehicles financed is primarily a result of the 54-day work stoppage at two GM
component plants that halted production of wholesale units at 26 of 29 vehicle
assembly plants in North America. GMAC's wholesale financing represented 66.9%
of all GM U.S. vehicle sales to dealers during the first nine months of 1999, up
from 63.4% for the comparable period a year ago. The increase in wholesale
penetration levels was a result of competitive pricing strategies by the
Company.
INCOME AND EXPENSES
Financing revenue totaled $3,480.0 million and $10,118.3 million in the third
quarter and first nine months of 1999, respectively, compared to $3,150.2
million and $9,461.7 million for the same periods in 1998. The increases were
mainly due to higher average retail, operating lease, and other loan receivable
balances which resulted from continued retail financing incentives sponsored by
GM. Additionally, increased wholesale revenues resulting from higher average
wholesale balances contributed to the change. The increased wholesale balances
were primarily attributable to the 1998 work stoppages previously mentioned.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INCOME AND EXPENSES (CONCLUDED)
The Company's worldwide cost of borrowing for the third quarter and first nine
months of 1999 averaged 5.62% and 5.55%, respectively, a decrease of 44 and 52
basis points from the comparable periods of a year ago. Total borrowing costs
for U.S. operations averaged 5.61% and 5.50% for the third quarter and first
nine months of 1999, compared to 5.93% and 6.00% for the respective periods in
1998. The lower average borrowing costs for the first nine months of 1999 are
largely a result of lower short-term market interest rates.
Insurance premiums earned totaled $449.7 million and $1,338.5 million for the
third quarter and nine months ended September 30, 1999, respectively, compared
to $466.1 million and $1,416.9 million during the comparable 1998 periods. The
reduction in insurance premiums earned was due to a decline in personal line
coverages, partially offset by an increase in commercial lines and reinsurance.
Mortgage revenue and other income totaled $1,272.6 million and $3,470.6 million
for the third quarter and nine months ended September 30, 1999, respectively,
compared to $830.2 million and $2,415.8 million during the comparable periods a
year ago. The increase in 1999 over 1998 was primarily the result of substantial
increases in mortgage servicing and processing fees. Furthermore, GMACMG's other
income increased substantially, mainly due to their expansion into diversified
businesses, specifically, Home Services, Newman and Associates, Auritec,
Capstead, Triad and American Financial Consultants LLC.
Consolidated salaries and other operating expenses totaled $1,198.5 million and
$3,326.7 million for the third quarter and first nine months of 1999,
respectively, compared to $929.5 million and $2,601.6 million for the comparable
periods last year. The increase was mainly attributable to continued growth and
acquisitions at GMACMG.
Annualized net retail losses were 0.50% and 0.57% of total average serviced
automotive receivables during the third quarter and first nine months of 1999,
respectively, compared to 0.74% and 0.83% for the same periods last year. The
provision for credit losses totaled $327.5 million and $322.6 million for the
nine month periods ended September 30, 1999 and 1998, respectively. Although
comparable period loss rates declined, the higher loss provision reflects an
increase in retail receivables during the first nine months of 1999 and
favorable wholesale loss provision adjustments during the first quarter of 1998.
The effective income tax rate for the first nine months of 1999 was 39.3%,
compared to 31.6% and 30.9% for the periods ended December 31, 1998 and
September 30, 1998, respectively. The increase in the effective tax rate can be
attributed to a decrease in U.S. and foreign taxes assessed on foreign source
income for the first nine months of 1998.
INSURANCE OPERATIONS
Net premiums earned by GMACI and its subsidiaries totaled $449.7 million and
$1,338.5 million for the third quarter and nine months ended September 30, 1999,
respectively, compared to $466.1 million and $1,416.9 million for the same
periods during 1998. Personal lines volume for the nine months ended September
30, 1999 is lower compared to the same period in 1998 due to competitive
pressures in non-standard automobile insurance which reduced new business volume
in the second half of 1998 and the first quarter of 1999. This reduction
adversely impacted both new business and the renewal base during the first nine
months of 1999.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INSURANCE OPERATIONS (CONCLUDED)
Pre-tax capital gains and investment and other income at GMACI totaled $143.9
million and $432.9 million for the third quarter and first nine months of 1999,
compared to $118.9 million and $389.8 million for same periods in 1998. Period
to period fluctuations in realized capital gains are largely due to the timing
of sales of marketable securities. Insurance losses and loss adjustment expenses
totaled $358.8 million and $1,044.1 million during the third quarter and first
nine months of 1999, compared to $353.4 million and $1,079.6 million for the
same periods in 1998. The decline in the first nine months of 1999 when compared
with the same period in 1998 is the result of lower volume in the non-standard
auto line of business and the non-renewal of certain passenger auto policies
that had yielded adverse results in 1998. These factors were partially offset by
a higher frequency of claims in the mechanical line of business during 1999.
Net income was $54.8 million and $169.9 million for the third quarter and nine
months ended September 30, 1999, respectively, compared to $54.2 million and
$187.8 million for the same periods in 1998. Earnings for the first nine months
of 1999 were reduced by lower underwriting results due to a decrease in personal
line coverages, partially offset by higher capital gains.
MORTGAGE OPERATIONS
During the third quarter and first nine months of 1999, GMACMG loan origination,
mortgage servicing acquisitions and correspondent loan volume totaled $20.9
billion and $60.0 billion, respectively, compared to $23.0 billion and $85.5
billion for the same periods in 1998. Included in 1998 volume was the
acquisition of a $27.1 billion mortgage servicing portfolio from the Wells Fargo
Bank transaction. As a result of significant mortgage servicing portfolio
acquisitions (including the Capstead transaction of $37.7 billion in servicing
which closed on December 31, 1998) and continued growth, the combined GMACMG
servicing portfolio, excluding GMAC term loans to dealers, totaled $282.0
billion at September 30, 1999, compared with $245.0 billion and $197.0 billion
serviced at December 31 and September 30, 1998, respectively.
Net income was $51.0 million and $215.2 million for the third quarter and nine
months ended September 30, 1999, respectively, compared to $9.4 million and
$55.2 million for the same periods in 1998. The increase in net income is
primarily attributable to an unusually strong first quarter, where one time
gains were realized from the sales of certain assets that were acquired in the
fourth quarter of 1998 when the capital markets were less liquid. In addition,
earnings in the third quarter of 1998 were negatively impacted by accelerated
prepayments on mortgage assets.
FINANCIAL CONDITION AND LIQUIDITY
At September 30, 1999, the Company owned assets and serviced automotive
receivables totaling $154.5 billion, $15.8 billion above year-end 1998, and
$28.4 billion above September 30, 1998. The higher balance compared to third
quarter of last year is primarily attributable to increases in serviced
wholesale, retail, operating lease, commercial, and other loan receivables.
Earning assets totaled $133.6 billion at September 30, 1999, compared to $125.1
billion and $112.9 billion at December 31 and September 30, 1998, respectively.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
FINANCIAL CONDITION AND LIQUIDITY (CONTINUED)
Finance receivables serviced by the Company, including sold receivables, totaled
$92.0 billion at September 30, 1999, $12.1 billion above December 31, 1998
levels and $20.0 billion above September 30, 1998 levels. The change from
December 31, 1998 can be attributed to a $6.4 billion increase in commercial and
other loan receivables, a $4.8 billion increase in serviced retail receivables,
and a $1.2 billion increase in serviced wholesale receivables. The year-to-year
increase was a result of a $7.3 billion increase in serviced wholesale
receivables, a $7.3 billion increase in commercial and other loan receivables,
and a $5.6 billion increase in serviced retail receivables. The increase in
wholesale receivable balances over December 31 and September 30, 1998 was a
result of the 1998 work stoppages previously mentioned and higher penetration.
The change in commercial and other loan receivables was due to the acquisition
of Bank of New York Financial Corporation (BNYFC) in July 1999 and increases in
other secured notes. The increase in retail receivable balances over December 31
and September 30, 1998 was due to continued retail financing incentives
sponsored by GM.
Consolidated operating lease assets, net of depreciation, totaled $30.3 billion
at September 30, 1999, reflecting an increase of $2.4 billion over December
31,1998 and an increase of $1.7 billion over September 30, 1998. The growth from
year-end 1998 is primarily attributable to continued GM sponsored lease
incentive programs in the U.S.
The Company's due and deferred from receivable sales (net) totaled $(28.3)
million at September 30, 1999, compared with $111.5 million and $186.1 million
at December 31 and September 30, 1998, respectively. The year-to-year decline
was the result of the scheduled wind down of a revolving wholesale trust.
Other nonearning assets at September 30, 1999 totaled $7.8 billion, compared
with $5.7 billion and $5.2 billion at December 31 and September 30, 1998. The
increase over December 31 and September 30, 1998 was primarily attributable to a
$2.0 billion and a $2.1 billion increase in intangible assets, respectively. The
increase in intangible assets was the result of the Company's acquisitions
activities during the first nine months of 1999.
As of September 30, 1999, GMAC's total borrowings were $114.4 billion, compared
with $106.2 billion and $93.5 billion at December 31, 1998 and September 30,
1998, respectively. The higher borrowings were used to fund increased earning
asset levels. GMAC's ratio of consolidated debt to total stockholder's equity at
September 30, 1999 was 10.7:1, compared to 10.8:1 at December 31, 1998 and 9.8:1
at September 30, 1998.
The Company and its subsidiaries maintain substantial bank lines of credit which
totaled $45.8 billion at September 30, 1999, compared to $42.9 billion at
year-end 1998 and $42.7 billion at September 30, 1998. The unused portion of
these credit lines totaled $35.8 billion at September 30, 1999, $2.6 billion and
$2.0 billion higher than December 31 and September 30, 1998, respectively.
Included in the unused credit lines is a syndicated multi-currency global credit
facility for use by GMAC in the U.S., GMAC International Finance B.V. and GMAC
(UK) plc of $14.7 billion at September 30, 1999, compared to syndicated
revolving credit facilities of $11.2 billion at December 31, 1998 and September
30, 1998 for these entities. The syndicated credit facilities serve primarily as
back-up for GMAC's unsecured commercial paper programs. Also included in the
unused credit lines is a $12.0 billion U.S. asset-backed commercial paper
liquidity and receivables facility for New Center Asset Trust (NCAT), a
non-consolidated limited purpose business trust established to issue
asset-backed commercial paper.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
FINANCIAL CONDITION AND LIQUIDITY (CONCLUDED)
In June 1999, GMAC modified its existing syndicated revolving credit facilities
to combine the U.S. and certain European facilities into one syndicated
multi-currency global facility. Modified terms consisted of five years on
one-half of the facility, with a 364-day term (including a provision that allows
GMAC to draw down a one year term loan on the termination date) on the remaining
facility. Additionally, there is a leverage covenant restricting the ratio of
consolidated debt to total stockholder's equity to no greater than 11.0:1, under
certain conditions.
As discussed in the Company's 1998 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 decreased from $107.7 billion at December 31, 1998 to $83.9
billion at September 30, 1999. The change is primarily attributable to a
decrease in financial instruments associated with mortgage servicing.
ACQUISITIONS AND MERGERS
On March 9, 1999, the acquisition of the majority interest in On:Line Finance
Holdings and its subsidiaries was completed. On:Line Finance is one of the
largest independent retail used car finance providers in the United Kingdom. The
acquisition expanded GMAC's range of finance products available through dealers
to automotive customers.
The acquisition of the asset-based lending and factoring business of The Bank of
New York (BNY) closed on July 22, 1999 for consideration of approximately $1.8
billion. This purchase expands GMAC's existing asset-based lending
internationally and enables them to enter the factoring business in a
substantial way. BNYFC is one of the leading asset-based lending and factoring
operations in North America and the United Kingdom. The name of the new GMAC
subsidiary is GMAC Commercial Credit LLC.
On July 30, 1999, the acquisition of Arriva Automotive Solutions Limited (AAS)
was finalized. The transaction, including debt refinancing, is valued at
(pound)483.5 million (approximately $774.7 million at the July 30, 1999 exchange
rate). AAS is a leading contract leasing provider in the United Kingdom.
YEAR 2000
Many computerized systems and microprocessors that are used by GMAC have the
potential for operational problems if they lack the ability to handle the
transition to the Year 2000. This issue has the potential to cause disruption to
the business of GMAC and its customers. In its capacity as a wholly owned
subsidiary of GM, GMAC is part of GM's comprehensive worldwide Year 2000
program. As part of that program, GMAC has been identifying and remediating
potential Year 2000 problems in its business information systems and other
equipment in its operations. GMAC has also been communicating with its service
and technology providers, landlords, dealers and other third parties in order to
assess and reduce the risk that GMAC's operations could be adversely affected by
the failure of these third parties to adequately address the Year 2000 issue.
GMAC's Year 2000 program teams are responsible for remediating all of GMAC's
information technology. Information technology principally consists of business
information systems (such as mainframe and other shared computers and associated
business application software) and infrastructure (such as personal computers,
operating systems, networks and devices like switches and routers). GMAC's Year
2000 program includes assessment and remediation services provided by Electronic
Data Systems Corporation (EDS) pursuant to a Master Service Agreement with GM.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONTINUED)
The Year 2000 program has been implemented in seven phases, some of which
were conducted concurrently:
INVENTORY -- identification and validation of an inventory of all systems
and infrastructure components that could be affected by the Year 2000 issue.
The inventory phase commenced in earnest in 1996 and is complete. It has
identified approximately 2,000 business information systems/applications.
ASSESSMENT -- initial testing, code scanning, and technology provider
contacts to determine whether remediation was needed and to develop a
remediation plan, if applicable. The assessment of business information
systems is complete and included a determination that approximately one half
of such systems should be regarded as critical based on criteria such as the
potential for business disruption. The assessment of infrastructure is also
complete.
REMEDIATION -- design and execution of a remediation plan, followed by
testing for adherence to the design. GMAC has completed the remediation of
its critical systems. In the normal course of its business plans, GMAC is
also incrementally implementing enterprise software and other common
applications that will replace and thereby eliminate the need to remediate
certain existing systems. Implementation of this software, which continued
throughout 1998 and into 1999, is now complete.
SYSTEM TESTING -- testing of remediated items to ensure that they function
normally after being placed back in their original operating environment.
This phase was closely related to the remediation phase and followed
essentially the same schedule.
IMPLEMENTATION -- return of items to normal operation after satisfactory
performance in system testing. This phase essentially followed the same
schedule as remediation and system testing.
READINESS TESTING -- planning for, and testing of, integrated systems in a
Year 2000 ready environment, including ongoing auditing and follow-up.
Readiness testing of critical systems is complete. In addition to GMAC
readiness testing, a third party Independent Validation and Verification
(IV&V) process has been used to examine remediated code to identify
potential oversights or errors in select mission-critical systems. While the
IV&V process is ongoing, the results to date have validated the success of
GMAC's testing program.
CONTINGENCY PLANNING -- development and execution of plans that focus on
specific areas of significant concern and concentration of resources to
address them. GMAC currently believes that the most reasonably likely worst
case scenario is that there will be some localized disruptions of systems
that will affect individual business processes, facilities or service and
technology providers for a short time, rather than systematic or long-term
problems affecting our business operations as a whole. GMAC contingency
planning identified systems or other aspects of its business that it
believes are potentially vulnerable to Year 2000 problems.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONTINUED)
GMAC contingency planning also addressed those business operations in which
a localized disruption could have the potential for causing a wider problem
by interrupting the flow of data or services to other operations. Because
there is an uncertainty as to which activities may be affected, and the
exact nature of the problems that may arise, contingency planning has
focused on minimizing the scope and duration of any disruption by developing
comprehensive, detailed plans. These reactive plans permit a flexible
real-time response to specific problems as they may arise at individual
locations around the world. Some of the actions that are being undertaken
include the establishment of Year 2000 Command Centers and development of
detailed manual procedures. GMAC built upon its existing Disaster Recovery
and Business Resumption Plans and Processes, while expanding its scope to
encompass Year 2000 concerns. While the development and testing of these
plans are now largely complete, there will be ongoing review and refinement
of the plans during the fourth quarter of 1999. As noted above, GMAC's
contingency planning includes the deployment of a network of Year 2000
Command Centers. The GMAC Corporate Command Center will have redundant
systems, allowing for connectivity with other GMAC Command Centers being
established around the world as well as with the GM Corporate Command
Center. Detailed plans and procedures have been developed and are being
validated. The centers will have coverage by appropriate personnel twenty-
four hours a day, seven days a week beginning the week of December 27, 1999.
Command Center operations will continue as long as conditions warrant.
GMAC's communication with its service and technology providers was a focused
element of the assessment phase described above. GMAC has been a leading
participant in the Financial Services Sub-Group of the Automotive Industry
Action Group (AIAG), an automotive industry trade association, which distributed
Year 2000 compliance questionnaires to many critical financial service providers
that supply GMAC with services throughout the world. In addition, GMAC initiated
its own contact and review of these providers and other non-financial service
providers considered to be critical to GMAC's operations, including follow-up to
the AIAG questionnaire. GMAC has also initiated contact with the landlords or
property managers of its facilities throughout the world, to assess the ongoing
functionality of the space it rents from others. Assessments of all these
service providers are now largely complete, with appropriate actions being taken
as deemed necessary, including the development of reactive contingency plans to
minimize business disruption related to these uncertainties.
GMAC also has been working with some of its largest customers, primarily
automotive dealers and lease/rental companies, on their Year 2000 readiness.
This program, developed in conjunction with GM, included distributing materials
that assist them in designing and executing their own assessment and remediation
efforts.
GMAC's direct Year 2000 program cost is being expensed as incurred, with the
exception of capitalizable replacement hardware. Total incremental spending by
GMAC is not expected to be material to the Corporation's operations, liquidity
or capital resources.
In addition to the work for which GMAC has direct financial responsibility, EDS
has provided Year 2000-related services to GMAC, as required under the Master
Service Agreement. EDS provided these serivces as part of normal fixed price
services and other ongoing payments to EDS.
GMAC's current forecast of total direct expenditures, including the value of
services performed by EDS attributable to GM's Year 2000 program, approximates
$90 million. This amount includes the following:
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
YEAR 2000 (CONCLUDED)
o An estimated $75 million in direct GMAC expenditures. This estimate includes
a $12 million payment from GMAC to EDS (part of GM's overall additional
payment to EDS of approximately $62 million) at the end of the first quarter
of 2000, if systems remediated by EDS under the Master Service Agreement do
not cause a significant business disruption that results in material
financial loss to GM due to the millennium change; and,
o An estimated $15 million representing the value of Year 2000 services that
EDS is providing to GMAC as part of normal fixed price services and other
ongoing payments to EDS under the Sector Service Agreement between GMAC and
EDS, as well as the Master Service Agreement between GM and EDS.
Of the total estimated $75 million in direct expense, GMAC incurred
approximately $35 million of Year 2000 expense through 1998, and an additional
$20 million during the first nine months of 1999.
In the normal course of its strategic business plans, GMAC and its subsidiaries
may, from time to time, acquire other businesses. Such acquisitions occurred
throughout 1998 and 1999. Year 2000 matters are routinely assessed as part of
the due diligence review prior to conclusion of the acquisition. Related costs
incurred after the acquisition, if any, are the responsibility of GMAC and, as
such, are included in the cost estimate data provided above. Year 2000 costs
related to these acquisitions were generally considered during the negotiations
and, in some instances, reflected in the final purchase price. These costs do
not represent a material portion of the total corporate expense. In addition,
the previously existing Year 2000 programs of the acquired companies are being
incorporated into the GMAC program outlined above to ensure conformance to
GMAC's Year 2000 program standards. In some cases, this has resulted in
additional work, which continued into the fourth quarter. In other instances,
there have been accelerations in the timelines of the original program.
GMAC's Year 2000 program costs do not include information technology projects
that have been delayed due to Year 2000, which are estimated to be approximately
$20 million, or information technology projects that have been accelerated due
to Year 2000, which are estimated to be less than $5 million.
In view of the foregoing, GMAC does not currently anticipate that it will
experience a significant disruption of its business as a result of the Year 2000
issue. However, there is still uncertainty about the broader scope of the Year
2000 issue as it may affect GMAC and third parties that are critical to GMAC's
operations. For example, lack of readiness by electrical and water utilities,
financial institutions, governmental agencies or other providers of general
infrastructure could, in some geographic areas, pose significant impediments to
GMAC's ability to carry on its normal operations in the area or areas so
affected. In the event that GMAC is unable to implement adequate contingency
plans in the event that problems are encountered, there could be a material
adverse effect on GMAC's business, results of operations or financial condition.
Statements made herein regarding the implementation of various phases of GMAC's
Year 2000 program, the costs expected to be associated with that program and the
results that GMAC expects to achieve constitute forward-looking information. As
noted above, there are many uncertainties involved in the Year 2000 issue,
including the extent to which GMAC has been able to adequately provide for
contingencies that may arise as well as the broader scope of the Year 2000 issue
as it may affect third parties that are not controlled by GMAC. Accordingly, the
costs and results of GMAC's Year 2000 program and the extent of any impact on
GMAC's operations could vary materially from those stated herein.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONCLUDED)
EURO CONVERSION
On January 1, 1999, eleven of fifteen member countries of the European Monetary
Union established fixed conversion rates between their existing currencies and
adopted the Euro as their new common currency. The Euro trades on currency
exchanges and the legacy currencies remain legal tender in the participating
countries for a transition period until January 1, 2002. Beginning on January 1,
2002, Euro denominated bills and coins will be issued and legacy currencies will
be withdrawn from circulation.
The Company has established plans to assess and address the potential impact to
GMAC that may result from the Euro conversion. These issues include, but are not
limited to: 1) the technical challenges to adapt information systems to
accommodate Euro transactions; 2) the competitive impact of cross-border price
transparency; 3) the impact on currency exchange rate risks; 4) the impact on
existing contracts; and 5) tax and accounting implications. The Company expects
that the Euro conversion will not have a material adverse impact on its
financial condition or results of operations.
In those countries that have adopted the Euro currency and in which GMAC has a
presence, the Company offers financial services to dealers and consumers in both
the local currency and the Euro.
ACCOUNTING STANDARDS
In October 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 134, Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage Loans
Held for Sale by a Mortgage Banking Enterprise, effective for the first fiscal
quarter beginning after December 15, 1998. The new standard requires that after
the securitization of mortgage loans held for sale, an entity engaged in
mortgage banking activities classify the resulting mortgage-backed security or
other retained interests based on its ability and intent to sell or hold those
investments. The Company adopted this accounting standard in the first quarter
of 1999, as required. The effect of adopting this new accounting standard did
not have a material impact on the Company's consolidated financial statements.
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, effective for fiscal years beginning after
June 15, 1999. In the second quarter of 1999, the FASB delayed implementation of
SFAS No. 133 until fiscal years beginning on or after June 15, 2000. 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 consolidated
financial statements of the Company. The Company will adopt this accounting
standard on January 1, 2001, as required.
In the first quarter of 1998, the American Institute of Certified Public
Accountants' 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 adopted SOP 98-1 on January 1, 1999, as
required. The effect of adopting this SOP was not material to the Company's
consolidated financial statements.
<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, 1999, or prior to the filing of
this report.
ITEM 5. OTHER INFORMATION
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended
September 30,
-------------------
1999 1998
1.40 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.
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, 1999.
(b) REPORTS ON FORM 8-K.
The Company did not file any reports on Form 8-K during the third
quarter.
<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/WILLIAM F. MUIR
Dated: NOVEMBER 3, 1999 William F. Muir, Executive Vice
President and Principal Financial Officer
S/GERALD E. GROSS
Dated: NOVEMBER 3, 1999 Gerald E. Gross, Comptroller and
Principal Accounting Officer
<PAGE>
Exhibit 20
Page 1 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1999 1998 1998
------------ ------------ ------------
ASSETS (in millions of dollars)
- ------
<S> <C> <C> <C>
Cash and cash equivalents $ 325.6 $ 618.1 $ 614.2
------------ ------------ ------------
EARNING ASSETS
Investments in securities 8,822.7 8,681.9 8,134.9
Finance receivables, net (Note 1) 76,980.7 71,101.2 63,093.6
Investment in operating leases, net 30,332.5 27,925.8 28,582.7
Notes receivable from General Motors Corporation 3,504.0 2,270.5 2,301.6
Real estate mortgages - held for sale 5,193.8 7,969.7 5,424.6
- held for investment 1,569.6 1,296.7 789.5
- lending receivables 1,532.8 2,063.6 1,783.3
Factored receivables 958.3 -- --
Due and deferred from receivable sales, net (28.3) 111.5 186.1
Other 4,715.5 3,683.7 2,558.1
------------ ------------ ------------
Total earning assets 133,581.6 125,104.6 112,854.4
------------ ------------ ------------
Nonearning assets 7,821.8 5,694.8 5,154.2
------------ ------------ ------------
TOTAL ASSETS $ 141,729.0 $ 131,417.5 $ 118,622.8
============ ============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Notes, loans and debentures payable within one year (Note 2) $ 58,648.1 $ 60,816.7 $ 52,561.5
------------ ------------ ------------
ACCOUNTS PAYABLE AND OTHER LIABILITIES
General Motors Corporation and affiliated companies 531.5 929.6 1,898.8
Interest 1,649.3 1,264.2 1,394.3
Insurance losses and loss expenses 1,945.4 2,062.7 2,043.7
Unearned insurance premiums 1,938.5 1,855.6 1,865.0
Deferred income taxes 3,415.2 2,842.9 2,796.6
United States and foreign income and other taxes payable 516.9 570.7 276.4
Other postretirement benefits 703.7 685.3 690.9
Other 5,944.7 5,241.7 4,659.1
------------ ------------ ------------
Total accounts payable and other liabilities 16,645.2 15,452.7 15,624.8
------------ ------------ ------------
Notes, loans and debentures payable after one year (Note 3) 55,714.3 45,356.5 40,937.7
------------ ------------ ------------
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 8,452.3 7,351.6 7,128.4
Net unrealized gains on securities 257.4 381.5 306.6
Unrealized accumulated foreign currency translation adjustment (188.3) (141.5) (136.2)
------------ ------------ ------------
Accumulated other comprehensive income 69.1 240.0 170.4
------------ ------------ ------------
Total stockholder's equity 10,721.4 9,791.6 9,498.8
------------ ------------ ------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 141,729.0 $ 131,471.5 $ 118,622.8
============ ============ ============
</TABLE>
Certain amounts for 1998 have been reclassified to conform with 1999
classifications.
Reference should be made to the Notes to Consolidated Financial Statements
<PAGE>
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
<TABLE>
<CAPTION>
Period Ended September 30,
---------------------------------------------
Third Quarter Nine Months
---------------------- ----------------------
1999 1998 1999 1998
----------- ---------- ----------- ----------
(in millions of dollars)
FINANCING REVENUE
<S> <C> <C> <C> <C>
Retail and lease financing $ 1,095.2 $ 982.1 $ 3,170.3 $ 2,834.4
Operating leases 1,902.1 1,822.2 5,494.4 5,415.8
Wholesale, commercial and other loans 482.7 345.9 1,453.6 1,211.5
----------- ---------- ----------- ----------
Total financing revenue 3,480.0 3,150.2 10,118.3 9,461.7
Interest and discount 1,666.9 1,477.5 4,717.8 4,316.7
Depreciation on operating leases 1,225.7 1,149.1 3,575.9 3,488.2
----------- ---------- ----------- ----------
Net financing revenue 587.4 523.6 1,824.6 1,656.8
Insurance premiums earned 449.7 466.1 1,338.5 1,416.9
Mortgage revenue 789.2 537.7 2,247.7 1,455.6
Other income 483.4 292.5 1,222.9 960.2
----------- ---------- ----------- ----------
Net financing revenue and other 2,309.7 1,819.9 6,633.7 5,489.5
----------- ---------- ----------- ----------
EXPENSES
Salaries and benefits 431.0 298.9 1,225.1 909.5
Other operating expenses 767.5 630.6 2,101.6 1,692.1
Insurance losses and loss adjustment expenses 358.8 353.4 1,044.1 1,079.6
Provision for credit losses 97.8 93.9 327.5 322.6
----------- ---------- ----------- ----------
Total expenses 1,655.1 1,376.8 4,698.3 4,003.8
----------- ---------- ----------- ----------
Income before income taxes 654.6 443.1 1,935.4 1,485.7
United States, foreign and other income taxes 262.3 130.0 759.7 458.6
----------- ---------- ----------- ----------
NET INCOME 392.3 313.1 1,175.7 1,027.1
Net income retained for use in the business
at beginning of the period 8,060.0 6,890.3 7,351.6 6,326.3
----------- ---------- ----------- ----------
Total 8,452.3 7,203.4 8,527.3 7,353.4
Cash dividends -- 75.0 75.0 225.0
----------- ---------- ----------- ----------
NET INCOME RETAINED FOR USE IN THE BUSINESS
AT END OF THE PERIOD $ 8,452.3 $ 7,128.4 $ 8,452.3 $ 7,128.4
=========== ========== =========== ==========
TOTAL COMPREHENSIVE INCOME $ 347.6 $ 244.0 $ 1,004.8 $ 967.7
=========== ========== ========== ===========
</TABLE>
<PAGE>
Exhibit 20
Page 3 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
---------------------
1999 1998
---------- ----------
(in millions of
dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 1,175.7 $ 1,027.1
Depreciation 3,666.6 3,542.9
Provision for credit losses 327.5 322.6
Gains on sales of finance receivables (64.2) (31.0)
Gains on sales of available for sale investment securities (137.0) (111.2)
Mortgage loans - originations/purchases (39,107.5) (39,491.7)
- proceeds on sale 42,362.8 39,186.6
Mortgage related securities held for trading
- acquisitions (989.9) (1,678.6)
- liquidations 1,283.8 897.5
Changes in the following items:
Due to General Motors Corporation and affiliated companies (377.3) 631.4
Taxes payable and deferred 504.1 206.9
Interest payable 379.8 292.4
Other assets (576.2) (613.8)
Other liabilities 683.7 447.3
Other 301.2 261.5
---------- ----------
Net cash provided by operating activities 9,433.1 4,889.9
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Finance receivables - acquisitions (138,717.9)(112,821.4)
- liquidations 100,272.0 86,578.6
Notes receivable from General Motors Corporation (1,167.3) (1,774.4)
Operating leases - acquisitions (13,947.6) (13,899.6)
- liquidations 8,601.7 7,819.1
Investments in available for sale securities:
- acquisitions (15,570.1) (14,286.2)
- maturities 13,453.3 12,004.9
- proceeds from sales 1,760.4 2,836.3
Investments in held to maturity securities:
- acquisitions (107.4) -
- maturities - -
Mortgage servicing rights - acquisitions (1,198.9) (897.4)
- liquidations 33.6 66.9
Proceeds from sales of receivables - wholesale 30,600.8 20,406.7
- retail 4,519.0 1,515.6
Net increase in short-term factored receivables (225.3) -
Due and deferred from receivable sales 131.1 513.2
Net acquisitions of subsidiaries (2,120.4) (58.3)
Other (116.1) 144.3
---------- ----------
Net cash used in investing activities (13,799.1) (11,851.7)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 21,671.9 13,930.2
Principal payments on long-term debt (10,536.1) (9,616.6)
Change in short-term debt, net (6,988.2) 2,179.2
Notes payable to General Motors Corporation - 550.0
Dividends paid (75.0) (225.0)
---------- ----------
Net cash provided by financing activities 4,072.6 6,817.8
---------- ----------
Effect of exchange rate changes on cash and cash equivalents 0.9 (1.0)
---------- ----------
Net decrease in cash and cash equivalents (292.5) (145.0)
Cash and cash equivalents at the beginning of the period 618.1 759.2
========== ==========
Cash and cash equivalents at the end of the period $ 325.6 $ 614.2
========== ==========
SUPPLEMENTARY CASH FLOWS INFORMATION
Interest paid $ 4,245.3 $ 3,954.5
Income taxes paid 124.1 206.2
Certain amounts for 1998 have been reclassified to conform with 1999
classifications. Reference should be made to the Notes to Consolidated Financial
Statements
</TABLE>
<PAGE>
GENERAL MOTORS ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (CONCLUDED)
SUPPLEMENTARY CASH FLOWS INFORMATION (CONCLUDED)
During the nine months ended September 30, 1999 and 1998, assets acquired,
liabilities assumed, and consideration paid for the acquisitions of businesses
were as follows:
Nine Months Ended
September 30,
------------------
1999 1998
----------- -----------
(in millions of dollars)
Fair value of assets acquired $ 6,622.1 $ 72.8
Cash acquired (43.9) --
Liabilities assumed (4,457.8) (14.5)
=========== ==========
Net acquisitions $ 2,120.4 $ 58.3
=========== ==========
<PAGE>
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 is summarized as follows:
September 30, December 31, September 30,
1999 1998 1998
------------ ----------- ------------
(in millions of dollars)
United States
Retail $ 34,654.7 $33,320.9 $31,748.1
Wholesale 16,021.2 17,721.7 13,719.4
Commercial 2,187.8 71.4 --
Leasing and lease financing 600.3 631.8 602.4
Other 7,963.1 4,919.0 4,213.9
------------ ----------- ------------
Total United States 61,427.1 56,664.8 50,283.8
------------ ----------- ------------
Europe
Retail 5,768.5 5,282.0 5,321.3
Wholesale 3,596.8 4,422.5 3,324.0
Commercial 1,016.8 -- --
Leasing and lease financing 457.2 483.3 516.1
Other 481.5 473.6 381.0
------------ ----------- ------------
Total Europe 11,320.8 10,661.4 9,542.4
------------ ----------- ------------
Canada
Retail 2,077.1 1,747.2 1,686.6
Wholesale 2,088.4 1,935.7 1,739.4
Commercial 171.5 -- --
Leasing and lease financing 821.5 806.0 893.8
Other 145.7 119.1 78.0
------------ ----------- ------------
Total Canada 5,304.2 4,608.0 4,397.8
------------ ----------- ------------
Other Countries
Retail 2,442.3 2,308.2 2,278.6
Wholesale 969.5 1,017.7 862.7
Leasing and lease financing 704.1 583.3 534.5
Other 188.9 258.2 205.3
------------ ----------- ------------
Total Other Countries 4,304.8 4,167.4 3,881.1
------------ ----------- ------------
Total finance receivables 82,356.9 76,101.6 68,105.1
------------ ----------- ------------
Deductions
Unearned income 4,227.9 3,979.8 4,028.8
Allowance for credit losses 1,148.3 1,020.6 982.7
------------ ----------- ------------
Total deductions 5,376.2 5,000.4 5,011.5
------------ ----------- ------------
Finance receivables, net $76,980.7 $71,101.2 $63,093.6
============ =========== ============
<PAGE>
Exhibit 20
Page 5 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2. NOTES, LOANS AND DEBENTURES PAYABLE WITHIN ONE YEAR
September 30, December 31, September 30,
1999 1998 1998
------------ ------------ ------------
(in millions of dollars)
Short-term notes
Commercial paper $ 29,813.6 $ 32,138.8 $ 26,406.4
Master notes 1,158.8 652.2 472.1
Demand notes 4,736.3 6,445.5 5,695.3
Other 1,162.0 1,437.2 1,230.3
------------ ------------ ------------
Total principal amount 36,870.7 40,673.7 33,804.1
Unamortized discount (312.0) (127.5) (137.2)
------------ ------------ ------------
Total 36,558.7 40,546.2 33,666.9
------------ ------------ ------------
Bank loans and overdrafts
United States 2,592.0 1,669.9 2,291.0
Other countries 5,847.2 6,543.1 5,419.7
------------ ------------ ------------
Total 8,439.2 8,213.0 7,710.7
------------ ------------ ------------
Other notes, loans and debentures
payable within one year
United States 10,568.4 10,518.6 9,797.0
Other countries 3,081.8 1,538.9 1,386.9
------------ ------------ ------------
Total 13,650.2 12,057.5 11,183.9
------------ ------------ ------------
Total payable within one year $ 58,648.1 $ 60,816.7 $ 52,561.5
============ ============ ============
<PAGE>
Exhibit 20
Page 6 of 7
GENERAL MOTORS ACCEPTANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. NOTES, LOANS AND DEBENTURES PAYABLE AFTER ONE YEAR
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Weighted Average
interest rates at September 30, December 31, September 30,
September 30, 1999 1999 1998 1998
------------------ ------------- ------------ ------------
(in millions of dollars)
1999 $ -- $ -- $ 1,917.9
2000 5.7% 2,489.1 10,195.4 7,992.5
2001 6.0% 11,953.3 7,795.8 6,211.5
2002 5.6% 10,379.5 7,039.2 6,787.9
2003 5.9% 7,267.5 6,929.3 5,310.6
2004 6.2% 4,438.9 997.2 413.6
2005 - 2009 5.8% 5,850.0 2,673.9 3,190.4
2010 - 2014 8.1% 2,841.2 1,600.0 1,400.0
2015 - 2019 10.3% 373.8 373.8 373.8
2020 - 2049 5.1% 75.0 75.0 75.0
------------ ------------ ------------
Total United sTATES 45,668.3 37,679.6 33,673.2
Other countries
1999 - 2008 5.3% 10,682.6 8,347.6 7,937.8
------------ ------------ ------------
Total notes, loans and debentures 56,350.9 46,027.2 41,611.0
------------ ------------ ------------
Unamortized discount (636.6) (670.7) (673.3)
------------ ------------ ------------
Total payable after one year $ 55,714.3 $ 45,356.5 $ 40,937.7
============ ============= ============
</TABLE>
<PAGE>
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 nine months
ended September 30, 1999 and 1998 are summarized below:
(in millions of dollars)
<TABLE>
<CAPTION>
Eliminations/
GMAC-NAO GMAC-IO GMACI GMACMG Reclassifications Total
---------- --------- -------- -------- ----------------- -----------
For the Quarters Ended:
SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C> <C>
Net financing
revenue $ 344.4 $ 216.3 $ 0.0 $ 0.0 $ 26.7 $ 587.4
Other revenue 503.8 40.7 590.5 618.9 (31.6) 1,722.3
Net income 235.6 50.9 54.8 51.0 0.0 392.3
SEPTEMBER 30, 1998
Net financing
revenue $ 339.8 $ 205.2 $ 0.0 $ 0.0 $ (21.4) $ 523.6
Other revenue 339.2 7.6 579.1 351.0 19.4 1,296.3
Net income 195.4 54.1 54.2 9.4 0.0 313.1
For the Nine Months Ended:
SEPTEMBER 30, 1999
Net financing
revenue $ 1,097.9 $ 665.4 $ 0.0 $ 0.0 $ 61.3 $1,824.6
Other revenue 1,300.2 65.9 1,761.4 1,756.7 (75.1) 4,809.1
Net income 640.4 150.2 169.9 215.2 0.0 1,175.7
SEPTEMBER 30, 1998
Net financing
revenue $ 1,081.4 $ 613.8 $ 0.0 $ 0.0 (38.4) $1,656.8
Other revenue 1,046.8 20.7 1,790.8 943.7 30.7 3,832.7
Net income 618.0 166.1 187.8 55.2 0.0 1,027.1
</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 June 30,
1999 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-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 326
<SECURITIES> 8,823
<RECEIVABLES> 82,357
<ALLOWANCES> (1,148)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 38,485
<DEPRECIATION> (7,709)
<TOTAL-ASSETS> 141,729
<CURRENT-LIABILITIES> 70,233
<BONDS> 55,714
0
0
<COMMON> 2,200
<OTHER-SE> 8,521
<TOTAL-LIABILITY-AND-EQUITY> 141,729
<SALES> 0
<TOTAL-REVENUES> 14,928
<CGS> 0
<TOTAL-COSTS> 4,620
<OTHER-EXPENSES> 3,327
<LOSS-PROVISION> 327
<INTEREST-EXPENSE> 4,718
<INCOME-PRETAX> 1,936
<INCOME-TAX> 760
<INCOME-CONTINUING> 1,176
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,176
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
