SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) October 3, 2000
----------------
GENERAL MOTORS CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
---------------------------- ----------------------- -------------------
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
-------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
--------------
- 1 -
ITEM 5. OTHER EVENTS
On January 17, 2001, a news release was issued on the subject of fourth
quarter consolidated earnings for General Motors Corporation (GM). The news
release did not include certain financial statements, related footnotes and
certain other financial information that will be filed with the Securities and
Exchange Commission as part of GM's Annual Report on Form 10-K. the following is
the fourth quarter earnings release for GM, and their subsidiary Hughes
Electronics Corporation's (Hughes) earnings release dated January 16, 2001.
GM NET INCOME FOR 2000 TOTALS $5.0 BILLION
CALENDAR-YEAR REVENUES HIT RECORD $183.3 BILLION
FOURTH QUARTER EARNINGS TOTAL $609 MILLION
DETROIT -- General Motors Corp. (NYSE: GM) today reported that it earned
$5.0 billion, or $8.58 diluted earnings per share, in calendar year 2000 -
excluding special items - on record revenues of $183.3 billion. Revenues were up
nearly four percent from 1999 and exceeded the previous record of $176.6 billion
in 1999.
For the fourth quarter of 2000, GM earned $609 million, or $1.15 diluted
earnings per share, excluding special items. That was down about 51 percent from
strong year-ago results because of the decline in Europe and losses at GM's
affiliate Isuzu.
"GM had another good year despite the extremely competitive global market
and fourth-quarter slowdown," Chairman John F. "Jack" Smith Jr. said. "Earnings
were the second-best in GM history and revenues set a record. As we enter a more
challenging period, GM's taking tough actions to reduce structural costs,
realign capacity and pursue growth opportunities to generate consistently strong
results."
CALENDAR YEAR RESULTS
Calendar-year-2000 income of $5.0 billion, or $8.58 per share, on revenue
of $183.3 billion compares with record annual earnings of $5.7 billion, or $8.62
per share, and revenue of $176.6 billion in 1999, all excluding special items.
Including special items, calendar-year-2000 net income totaled $4.5
billion, or $6.68 per share, on revenue of $184.6 billion. The special items,
totaling an unfavorable $520 million, or $1.90 per share, relate to the
previously announced gain on the sale of the Hughes satellite-manufacturing
business to Boeing, and costs related to actions to improve GM's competitiveness
in its core automotive business. These initiatives include the phase out of
Oldsmobile, planned capacity reductions in Europe, and volume reductions and
production changes in North America (see Highlights).
Record industry sales in the United States led to income of $4.4 billion
for GM North America in 2000. GMAC had record net income for the second
consecutive year, totaling $1.6 billion in 2000, marking the sixth consecutive
year of earnings growth. The improved performance resulted primarily from the
expansion of its mortgage business and other growth initiatives.
- 2 -
FOURTH-QUARTER RESULTS
Fourth-quarter income was $609 million, or $1.15 per share, compared with
$1.3 billion, or $1.95 per share, in the fourth quarter of 1999, excluding
special items. Including the special items, fourth-quarter net income was $89
million, or a loss of $1.16 per share (The EPS loss is due to the apportionment
of earnings between GM's two classes of common stock. See Highlights). This
compares with net income of $1.1 billion, or $1.86 per share, in the fourth
quarter of 1999.
GM announced in December a series of significant initiatives intended to
strengthen its competitiveness and better focus its resources on key growth
activities. These actions included the phase out of the Oldsmobile Division;
planned discontinuation of passenger-car production in Luton, England; North
American volume reductions and production changes; and 10-percent reductions in
salaried and contract employment levels in North America and Europe.
"These were difficult decisions, but necessary to position General Motors
to compete in increasingly competitive market conditions," said Rick Wagoner,
president and chief executive officer. "While we hope that the recent industry
slowdowns in North America and Europe will prove to be a temporary correction,
we believe that strong actions are required to help us more effectively compete
in the marketplace and achieve improved performance in the future."
In North America, GM's fourth-quarter earnings of $1.0 billion were about
the same as in 1999, excluding special items, with lower volumes and strong
pricing pressures partially offset by favorable product mix and continued cost
reductions.
"Operating lean and fast is becoming an element of our culture, rather that
just a reaction to the industry's inevitable down cycles," Wagoner added.
Results in Europe, a loss of $463 million, were adversely affected by a
slowdown in vehicle sales in the fourth quarter that was more severe than
anticipated, continued pricing pressures, unfavorable product mix, country mix,
and one-time factors.
"Our fourth-quarter performance in Europe was unacceptable," Wagoner said.
"We are taking major steps to improve operating performance, including the
introduction of innovative new products; improving capacity utilization;
intensifying overall cost reduction; and aggressively pursuing synergies with
our alliance partners in purchasing, powertrain activities, product development,
and other important areas."
Results for GM's Latin America/Africa/Mid-East (LAAM) and Asia-Pacific
regions declined from the prior-year period. While volume was up, LAAM had a
loss of $16 million as performance was affected by unfavorable product mix, the
start-up of the new Celta assembly plant in Brazil, and inflation-driven costs
not fully recovered in price. Asia-Pacific's loss of $107 million reflected
primarily the losses at GM affiliate Isuzu Motors Ltd.
GMAC's fourth-quarter 2000 net income improved by more than 11 percent to
$409 million, up from $367 million in the fourth quarter of 1999. The increase
was driven primarily by improvements in the mortgage and insurance businesses.
The mortgage business was particularly strong due to continued growth in both
the domestic market and new initiatives of its international operations.
- 3 -
Hughes' net loss of $74 million in the fourth quarter of 2000 compares with
a loss of $61 million in the fourth quarter of 1999, excluding special items.
The earnings decline was related primarily to the up-front costs for DIRECTV
growth initiatives, and the revenue and profit decline resulting from the sale
of its satellite-manufacturing business. Hughes added 695,000 net new DIRECTV
subscribers in the fourth quarter of 2000, bringing the total subscriber base to
10.8 million.
LOOKING AHEAD
General Motors expects U.S. vehicle sales will moderate from 2000's record
of 17.8 million units to a level ranging between 16 million to 16.5 million
units. Although the industry entered the first quarter on a downward track,
economic growth is expected to improve later in the year.
Previously announced production cuts are expected to impact first quarter
results, with the current expectation that a marginal profit will be achieved.
For the calendar year, while there are considerable uncertainties in the
economic environment, GM is comfortable with the current financial analysts'
consensus earnings forecast of approximately $4.25 per share.
"We remain intently focused on innovative new products," Wagoner said.
"Product is the all-important driver of success, and I am pleased that we have a
number of major vehicle introductions worldwide this year. And, we're combining
that with an enhanced focus on our cost structure to assure that we meet our
consumer value expectations and our shareholders' earnings expectations."
Among key products coming to North America this year are the all new
Chevrolet Trailblazer, GMC Envoy and Oldsmobile Bravada midsize SUVs, the
industry-first Chevrolet Avalanche and Cadillac Escalade EXT, Buick's Rendezvous
and Saturn's first SUV, the VUE. Equally important are key technologies such as
the all-new Vortec 4200 in-line six-cylinder engine, QuadraSteer four-wheel
steering system, Versatrak all-wheel-drive system, and GM's OnStar system, which
is now installed in more than 1 million vehicles.
In Europe, the all-new Opel Speedster, new Corsa and Zafira models, an
Astra convertible, the Vivaro and Combo commercial vans, and improved
availability of diesel engines are important factors.
In Latin America, new local entries include the Chevrolet Zafira and Grand
Vitara, along with the Brazilian-built Celta introduced late last year.
In China, Buick's new compact family car, the Sail, is the third distinct
model GM has introduced in that important growth market. The Zafira was recently
introduced in Asia and is produced at GM's Thailand plant for the Asian market,
and for export to other regions. GM and Suzuki will begin production in
September of a small Chevrolet 4x4 lifestyle vehicle at Suzuki's Kosai plant in
Japan. The vehicle will initially be sold in Japan and Australia.
- 4 -
PROFIT SHARING
As a result of the profits generated in 2000 by GM's operations in the
United States, profit-sharing payments of approximately $800 will be made in
2001 to approximately 147,000 of GM's represented employees in the United States
who worked the entire year. This is the seventh consecutive year that
profit-sharing payments have been made to U.S. employees.
# # #
In this press release and related comments by General Motors management, our
use of the words "expect," "anticipate," "estimate," "forecast," "objective,"
"plan," "goal" and similar expressions is intended to identify forward looking
statements. While these statements represent our current judgment on what the
future may hold, and we believe these judgments are reasonable, actual results
may differ materially due to numerous important factors that are described in
GM's most recent report on SEC Form 10-K (at page II-20) which may be revised or
supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors
include, among others, the following: changes in economic conditions, currency
exchange rates or political stability; shortages of fuel, labor strikes or work
stoppages; market acceptance of the corporation's new products; significant
changes in the competitive environment; changes in laws, regulations and tax
rates; and, the ability of the corporation to achieve reductions in cost and
employment levels to realize production efficiencies and implement capital
expenditures at levels and times planned by management.
* * * * * *
- 5 -
HIGHLIGHTS - Q4 Adjusted for Special Items
(Dollars in Millions Except Per Share Amounts)
Three Months Ended
December 31, 2000
---------------------
Net
Income EPS (A)
--------- ---------
Reported $89 $(1.16)(B)
Special Charges:
Phase-out of Oldsmobile (939) (1.68)
GMNA Capacity Reduction (294) (0.53)
GME Capacity Reduction (419) (0.75)
Hughes Satellite System Gain 1,132 0.65
----- -----
Adjusted $609 $1.15
===== =====
Three Months Ended
December 31, 1999
---------------------
Net
Income EPS (A)
--------- ---------
Reported $1,145 $1.86
Special Charges:
Postemployment Benefits 553 0.86
Termination Benefits (90) (0.14)
Hourly Retiree Benefits (408) (0.63)
Hughes Wireless Business (165) (0.18)
----- -----
Adjusted $1,255 $1.95
===== =====
(A) GM $1-2/3 par value earnings per share attributable to common stock
assuming dilution
(B) Although reported net income is positive, EPS is negative due to the
attribution of Hughes earnings for purposes of calculating GM $1-2/3
par value EPS. 100% of Hughes net income is included in reported net
income, but only 32.6% of Hughes net income is included in the Q4 2000
calculation of earnings per share attributable to GM $1-2/3 par value
stock.
- 6 -
HIGHLIGHTS - List of Special Items-After Tax by Quarter
Impact on Net Income
(Dollars in Millions)
During the fourth quarter of calendar year 2000, GM made the following
announcements:
- To phase out the Oldsmobile division as the current model
lineup product
lifecycles come to an end, or until the models are no longer
economically viable.
- To implement the previously announced actions to convert and reduce
production at the following plants: Oklahoma City, OK; Delta Engine,
Lansing, MI; Spring Hill, TN; and Wilmington, DE.
- To reduce production capacity at GME including the restructuring of
Vauxhall Motors' manufacturing operations in the UK.
- The completion of the sale of its Hughes satellite systems
manufacturing businesses to the Boeing Company for $3.8 billion in
cash.
Three Months Ended December 31, 2000
------------------------------------
Total
GMNA GME Hughes ACO
------------------------ ------ ------ -------
Phase-out Satel.
of Capacity Capacity System
Oldsmobile Reduction Reduct. Gain
------------------------ ------ ----- -------
Postemployment
Benefits $- $(294) $(108) $- $(402)
Underperforming
Assets (356) - (231) - (587)
Payments to
Dealers and
Others (583) - (80) - (663)
--- --- --- --- ------
Total
Automotive (939) (294) (419) - (1,652)
Hughes Gain - - - 1,132 1,132
--- --- --- ----- -----
Total $(939) $(294) $(419) $1,132 $(520)
=== === === ===== =====
Postemployment benefits represent liabilities for termination and other
postemployment benefits associated with the reductions in production
capacity in GMNA and GME. The GMNA charge relates to approximately 4,000
U.S. employees at the four plants mentioned above. This action will reduce
production capacity by approximately 376,000 engines per year and 127,000
vehicles per year. The GME charge primarily relates to approximately 2,000
employees at the Luton assembly plant. This action will reduce production
capacity by approximately 270,000 vehicles per year.
Underperforming assets represent the write-down of impaired long-lived
assets, principally tooling and equipment on operating leases, recorded
pursuant to GM's policy for the evaluation of long-lived assets.
Payments to dealers and others represent transition assistance to be paid
to Oldsmobile dealers, increased sales incentives on Oldsmobile vehicles,
and cancellation charges to be paid to suppliers incurred as a result of
certain GME restructuring actions.
GM's net of tax cash requirements relating to the above GMNA and GME
charges are expected to total approximately $1.2 billion, with anticipated
spending of approximately 50% in 2001, 24% in 2002 and the remainder being
spent thereafter.
- 7 -
HIGHLIGHTS - List of Special Items-After Tax by Quarter
Impact on Net Income
(Dollars in Millions)
Three Months Ended December 31, 1999
------------------------------------
Total Total
GMNA Hughes Other ACO GMAC Corp.
------ ------ ----- ----- ----- -----
Postemployment
Benefits $553 $- $- $553 $- $553
Termination
Benefits (39) - (35) (74) (16) (90)
Hourly Retiree
Benefits (257) - (151) (408) - (408)
Hughes Wireless
Business - (165) - (165) - (165)
--- --- --- --- --- ---
Total $257 $(165) $(186) $(94) $(16) $(110)
=== === === === === ===
Postemployment benefits are related to the reversal of a liability for
benefits payable to excess U.S. hourly employees.
Termination benefits are related to a U.S. salaried early retirement
program. Approximately 1,700 people (100 executives) elected participation
in this program.
Hourly Retiree benefits are related to the benefit increase granted to
hourly retirees in connection with the 1999 UAW agreement.
The Hughes Wireless business charge is related to Hughes' decision to
discontinue certain of its wireless manufacturing operations at Hughes
Network Systems.
- 8 -
HIGHLIGHTS - Q4 Summary Financial Highlights
Three Months Ended
December 31,
---------------------
Adjusted
2000 1999
--------- ---------
Total net sales and revenues
(Dollars in billions) $45.0 $46.3
------ ------
Consolidated net income
(Dollars in millions) $609 $1,255
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value $1.15 $1.95
Class H $(0.08) $(0.07)(1)
.............................................................
Return on net assets (RONA) for continuing
operations on a four quarter rolling average
excluding Hughes 11.1% 13.8%
.............................................................
Total Cash (Dollars in billions)(2) $13.3 $14.4
.............................................................
Net profit margins
Three Months Ended
December 31,
--------------------
Adjusted
2000 1999
--------- ---------
GM North America (GMNA) 3.6% 3.5%
GM Europe (GME) (7.7%) 0.5%
GM Latin America/Africa/Mid-East (GMLAAM) (1.1%) 1.4%
GM Asia/Pacific (GMAP) (10.7%) (2.4%)
Total GM Automotive (GMA) 1.1% 2.8%
Hughes (3.4%) (2.8%)
Total Automotive, Communications
Services, and Other Operations 0.5% 2.2%
GMAC 6.5% 6.9%
Consolidated net income 1.4% 2.7%
(1) The 1999 earnings per share amount attributable to the GM Class H
common stock was adjusted to reflect the three-for-one stock split of
the GM Class H common stock, in the form of a 200% stock dividend, paid
on June 30, 2000.
(2) Represents total cash for Automotive, Communications Services, and
Other Operations which includes cash and marketable securities as well
as $3.0 billion invested in short-term fixed income securities of the
Corporation's Voluntary Employees' Beneficiary Association Trust.
- 9 -
HIGHLIGHTS - Q4 Financial Results
(Dollars in Millions Except
Per Share Amounts)
Three Months Ended
December 31,
------------------------------------
Adjusted Adjusted
2000 2000(1) 1999 1999(1)
-------- ------- ------- --------
Total net sales and
revenues $46,341 $45,001 $46,262 $46,262
------ ------ ------ ------
Consolidated net income $89 $609 $1,145 $1,255
.............................................................
Earnings Attributable to Common Stocks
$1-2/3 par value $(635) $648 $1,196 $1,253
Class H $697 $(66) $(80) $(27)
.............................................................
Basic Earnings Per Share Attributable to Common Stocks
$1-2/3 par value $(1.14) $1.16 $1.90 $1.99
Class H (5) $0.80 $(0.08) $(0.19) $(0.07)
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value $(1.16) $1.15 $1.86 $1.95
Class H (5) $0.76 $(0.08) $(0.19) $(0.07)
.............................................................
Cash Dividends Per Share of Common Stocks
$1-2/3 par value $0.50 $0.50
Class H $- $-
.............................................................
Book Value Per Share of Common Stocks
December 31,
----------------------
2000 1999
--------- ---------
$1-2/3 par value $39.36 $27.02
Class H (5) $7.87 $5.40
.............................................................
See footnotes beginning on page 16.
continues
- 10 -
HIGHLIGHTS - Q4 Adjusted for Special Items by Segment
(Dollars in Millions)
Three Months Ended
December 31, 2000
----------------------------
(1)
Reported (2) Adjusted
Income Special Income
(Loss) Items (Loss)
------- ------- --------
GMNA $(254) $(1,233) $979
GME (882) (419) (463)
GMLAAM (16) - (16)
GMAP (107) - (107)
----- ----- -----
Total GMA $(1,259) $(1,652) $393
Hughes (6) 1,058 1,132 (74)
Other (119) - (119)
----- ----- -----
Total Automotive,
Comm. Services, and
Other Operations $(320) $(520) $200
GMAC $409 $- $409
Other - - -
----- ---- -----
Total Financing and
Insurance Operations $409 $- $409
----- ---- -----
Consolidated Net
Income $89 $(520) $609
===== ==== =====
Net (loss)/profit margin from
Total GMA (3.6%) 1.1%
Consolidated net income 0.2% 1.4%
See footnotes beginning on page 16.
continues
- 11 -
HIGHLIGHTS - Q4 Adjusted for Special Items by Segment
(Dollars in Millions)
Three Months Ended
December 31, 1999
----------------------------
(1)
Reported (3) Adjusted
Income Special Income
(Loss) Items (Loss)
------- ------- --------
GMNA $1,282 $257 $1,025
GME 30 - 30
GMLAAM 18 - 18
GMAP (23) - (23)
----- ---- -----
Total GMA $1,307 $257 $1,050
Hughes (6) (226) (165) (61)
Other (282) (186) (96)
----- ---- -----
Total Automotive,
Comm. Services, and
Other Operations $799 $(94) $893
GMAC $351 $(16) $367
Other (5) - (5)
----- ---- -----
Total Financing and
Insurance Operations $346 $(16) $362
----- ---- -----
Consolidated Net
Income/(Loss) $1,145 $(110) $1,255
===== ==== =====
Net profit margin from
Total GMA 3.4% 2.8%
Consolidated net income 2.5% 2.7%
See footnotes beginning on page 16.
continues
- 12 -
HIGHLIGHTS - Q4 Adjusted for Special Items by Region
(Dollars in Millions)
Three Months Ended
December 31, 2000
-------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Reported
--------
Total net sales and revenues $26,739 $6,043 $1,431 $1,001
------ ----- ----- ---
Pre-tax loss $(604)$(1,256) $(78) $(47)
Income tax (benefit) (386) (373) (48) (4)
Equity income/(loss) and
minority interests (36) 1 14 (64)
----- ----- ----- ---
Net loss $(254) $(882) $(16) $(107)
===== ===== ===== ===
Net loss margin (0.9%) (14.6%) (1.1%) (10.7%)
Effective income tax rate 63.9% 29.7% 61.5% 8.5%
LESS: Special Items (2)
-------------------
Total net sales and revenues $(695) $- $- $-
----- ----- ----- ---
Pre-tax (loss) $(1,984) $(619) $- $-
Income tax (benefit) (751) (200) - -
Equity income/(loss) and
minority interests - - - -
----- ----- ----- ---
Net (loss) $(1,233) $(419) $- $-
===== ===== ===== ===
Adjusted (1)
--------
Total net sales and revenues $27,434 $6,043 $1,431 $1,001
------ ----- ----- -----
Pre-tax income/(loss) $1,380 $(637) $(78) $(47)
Income tax expense/(benefit) 365 (173) (48) (4)
Equity income/(loss) and
minority interests (36) 1 14 (64)
----- ----- ----- ---
Net income/(loss) $979 $(463) $(16) $(107)
===== ===== ===== ===
Net profit/(loss) margin 3.6% (7.7%) (1.1%) (10.7%)
Effective income tax rate 26.4% 27.2% 61.5% 8.5%
See footnotes beginning on page 16.
continues
- 13 -
HIGHLIGHTS - Q4 Adjusted for Special Items by Region
(Dollars in Millions)
Three Months Ended
December 31, 1999
-------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Reported
--------
Total net sales and revenues $29,142 $6,556 $ 1,261 $ 941
------ ----- ----- ---
Pre-tax income/(loss) $1,984 $37 $(42) $(27)
Income tax expense/(benefit) 676 12 (50) 1
Equity income/(loss) and
minority interests (26) 5 10 5
----- ----- ----- ---
Net income/(loss) $1,282 $30 $18 $(23)
===== ===== ===== ===
Net profit/(loss) margin 4.4% 0.5% 1.4% (2.4%)
Effective income tax rate 34.1% 32.4% 119.0% (3.7%)
LESS: Special Items (3)
-------------------
Total net sales and revenues $- $ - $ - $ -
----- ----- ----- ---
Pre-tax income $415 $- $- $-
Income tax expense 158 - - -
Equity income/(loss) and
minority interests - - - -
----- ----- ----- ---
Net income $257 $- $- $-
===== ===== ===== ===
Adjusted (1)
--------
Total net sales and revenues $29,142 $6,556 $1,261 $941
------ ----- ----- ---
Pre-tax income/(loss) $1,569 $37 $(42) $(27)
Income tax expense/(benefit) 518 12 (50) 1
Equity income/(loss) and
minority interests (26) 5 10 5
----- ----- ----- ---
Net income/(loss) $1,025 $30 $18 $(23)
===== ===== ===== ===
Net profit/(loss) margin 3.5% 0.5% 1.4% (2.4%)
Effective income tax rate 33.0% 32.4% 119.0% (3.7%)
See footnotes beginning on page 16.
continues
- 14 -
HIGHLIGHTS - Q4 Operating Information
Three Months Ended
December 31,
---------------------
2000 1999
------- -------
Worldwide Wholesale Sales (units in 000s)
United States: Cars 597 704
Trucks 611 633
------ ------
Total United States 1,208 1,337
Canada and Mexico 174 157
------ ------
Total GM North America 1,382 1,494
------ ------
GME 445 497
GMLAAM 164 124
GMAP 113 109
------ ------
Total International 722 730
------ ------
Total Worldwide 2,104 2,224
====== ======
....................................................
Vehicle Unit Deliveries (units in 000s)
United States
Chevrolet - Cars 185 202
- Trucks 383 427
Pontiac 127 132
GMC 117 134
Buick 83 89
Oldsmobile 64 70
Saturn 55 54
Cadillac 41 45
Other 11 8
------ ------
Total United States 1,066 1,161
Canada and Mexico 167 171
------ ------
Total GM North America 1,233 1,332
------ ------
GME 395 439
GMLAAM 161 135
GMAP 130 131
------ ------
Total International 686 705
------ ------
Total Worldwide 1,919 2,037
====== ======
....................................................
Market share
United States
Cars 27.8% 27.9%
Trucks 26.9% 27.9%
Total 27.3% 27.9%
Total North America 26.9% 27.5%
Total Europe 9.0% 9.7%
Latin America (4) 20.8% 20.5%
Asia and Pacific 4.3% 4.3%
Total Worldwide 14.7% 15.3%
.....................................................
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 26.3% 28.1%
% Fleet Sales - Trucks 12.4% 12.8%
Total vehicles 19.2% 20.2%
....................................................
Days Supply of Inventory - U.S.
Cars 116 93
Trucks 132 85
....................................................
Capacity Utilization %
U.S. and Canada (2-shift rated) 86.8% 95.8%
....................................................
GMNA
Net Price (%) (1.7%) (0.3%)
....................................................
See footnotes beginning on page 16.
continues
- 15 -
HIGHLIGHTS - Q4 Other Financial Information
(Dollars in Millions)
Three Months Ended
December 31,
----------------------
2000 1999
--------- ----------
Automotive, Comm. Services and
Other Operations:
Depreciation $1,404 $1,080
Amortization of special tools 901 603
Amortization of intangible
assets 99 69
------ -----
Total $2,404 $1,752
====== =====
....................................................
Worldwide Employment at December 31 (in 000s)
GMNA 212 217
GME 89 91
GMLAAM 24 23
GMAP 11 10
Hughes 9 18
GMAC 28 28
Other 13 11
------ ------
Total 386 398
====== ======
....................................................
Worldwide Payrolls $5,116 $5,503
....................................................
(1) Adjusted amounts represent the reported amounts less the effects of
special items.
(2) Special items for fourth quarter 2000 are detailed on page 6.
(3) Special items for fourth quarter 1999 are detailed on page 7.
(4) Latin America excludes the Middle East and Africa.
(5) The 1999 earnings per share and book value per share were adjusted to
reflect the three-for-one stock split of the GM Class H common stock,
in the form of a 200% stock dividend, paid on June 30, 2000.
(6) Excludes the effects of purchase accounting adjustments related to
General Motors' acquisition of Hughes in 1985, and excludes Hughes
Series A Preferred Stock dividends payable to General Motors.
- 16 -
HIGHLIGHTS - Year-End Adjusted for Special Items
(Dollars in Millions Except Per Share Amounts)
Year-Ended
December 31, 2000
---------------------
Net
Income EPS (A)
--------- ---------
Reported $4,452 $6.68
Special Charges:
Phase-out of Oldsmobile (939) (1.59)
GMNA Capacity Reduction (294) (0.50)
GME Capacity Reduction (419) (0.71)
Hughes Satellite System Gain 1,132 0.90
----- -----
Adjusted $4,972 $8.58
===== =====
Year-Ended
December 31, 1999
---------------------
Net
Income(B) EPS (A)
--------- ---------
Reported $5,576 $8.53
Special Charges:
Postemployment Benefits 553 0.84
Termination Benefits (90) (0.14)
Hourly Retiree Benefits (408) (0.62)
Hughes Wireless Business (165) (0.17)
----- -----
Adjusted $5,686 $8.62
===== =====
(A) GM $1-2/3 par value earnings per share attributable to common stock
assuming dilution
(B) Net income from continuing operations
- 17 -
HIGHLIGHTS - List of Special Items-After Tax for Calendar Year
Impact on Net Income
(Dollars in Millions)
During the fourth quarter of calendar year 2000, GM made the following
announcements:
- To phase out the Oldsmobile division as the current model lineup product
lifecycles come to an end, or until the models are no longer economically
viable.
- To implement the previously announced actions to convert and reduce
production at the following plants: Oklahoma City, OK; Delta Engine,
Lansing, MI; Spring Hill, TN; and Wilmington, DE.
- To reduce production capacity at GME including the restructuring of
Vauxhall Motors' manufacturing operations in the UK.
- The completion of the sale of its Hughes satellite systems
manufacturing businesses to the Boeing Company for $3.8 billion in
cash.
Year-Ended December 31, 2000
------------------------------------
Total
GMNA GME Hughes ACO
------------------------ ------ ------ -------
Phase-out Satel.
of Capacity Capacity System
Oldsmobile Reduction Reduct. Gain
------------------------ ------ ----- -------
Postemployment
Benefits $- $(294) $(108) $- $(402)
Underperforming
Assets (356) - (231) - (587)
Payments to
Dealers and
Others (583) - (80) - (663)
--- --- --- --- ------
Total
Automotive (939) (294) (419) - (1,652)
Hughes Gain - - - 1,132 1,132
--- --- --- ----- -----
Total $(939) $(294) $(419) $1,132 $(520)
=== === === ===== =====
Postemployment benefits represent liabilities for termination and other
postemployment benefits associated with the reductions in production
capacity in GMNA and GME. The GMNA charge relates to approximately 4,000
U.S. employees at the four plants mentioned above. This action will reduce
production capacity by approximately 376,000 engines per year and 127,000
vehicles per year. The GME charge primarily relates to approximately 2,000
employees at the Luton assembly plant. This action will reduce production
capacity by approximately 270,000 vehicles per year.
Underperforming assets represent the write-down of impaired long-lived
assets, principally tooling and equipment on operating leases, recorded
pursuant to GM's policy for the evaluation of long-lived assets.
Payments to dealers and others represent transition assistance to be paid
to Oldsmobile dealers, increased sales incentives on Oldsmobile vehicles,
and cancellation charges to be paid to suppliers incurred as a result of
certain GME restructuring actions.
GM's net of tax cash requirements relating to the above GMNA and GME
charges are expected to total approximately $1.2 billion, with anticipated
spending of approximately 50% in 2001, 24% in 2002 and the remainder being
spent thereafter.
- 18 -
HIGHLIGHTS - List of Special Items-After Tax for Calendar Year
Impact on Net Income
(Dollars in Millions)
Year-Ended December 31, 1999
------------------------------------
Total Total
GMNA Hughes Other ACO GMAC Corp.
------ ------ ----- ----- ----- -----
Postemployment
Benefits $553 $- $- $553 $- $553
Termination
Benefits (39) - (35) (74) (16) (90)
Hourly Retiree
Benefits (257) - (151) (408) - (408)
Hughes Wireless
Business - (165) - (165) - (165)
--- --- --- --- --- ---
Total $257 $(165) $(186) $(94) $(16) $(110)
=== === === === === ===
Postemployment benefits are related to the reversal of a liability for
benefits payable to excess U.S. hourly employees.
Termination benefits are related to a U.S. salaried early retirement
program. Approximately 1,700 (100 executives) people elected participation
in this program.
Hourly Retiree benefits are related to the benefit increase granted to
hourly retirees in connection with the 1999 UAW agreement.
The Hughes Wireless business charge is related to Hughes' decision to
discontinue certain of its wireless manufacturing operations at Hughes
Network Systems.
- 19 -
HIGHLIGHTS - Year-End Summary Financial Highlights
Year-Ended
December 31,
---------------------
Adjusted
2000 1999
--------- ---------
Total net sales and revenues
(Dollars in billions) $183.3 $176.6
------- -------
Consolidated net income
(Dollars in millions) $4,972 $5,686(3)
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value $8.58 $8.62
Class H $(0.31) $(0.12)(1)
.............................................................
Return on net assets (RONA) for continuing
operations on a four quarter rolling average
excluding Hughes 11.1% 13.8%
.............................................................
Total Cash (Dollars in billions)(2) $13.3 $14.4
.............................................................
Net profit margins
Year-Ended
December 31,
--------------------
Adjusted
2000 1999
--------- ---------
GM North America (GMNA) 3.9% 4.1%
GM Europe (GME) (1.0%) 1.6%
GM Latin America/Africa/Mid-East (GMLAAM) 0.5% (1.7%)
GM Asia/Pacific (GMAP) (6.5%) (6.8%)
Total GM Automotive (GMA) 2.7% 3.2%
Hughes (3.5%) (1.4%)
Total Automotive, Communications
Services, and Other Operations 2.1% 2.6%
GMAC 6.8% 7.6%
Consolidated net income 2.7% 3.2%
(1) The 1999 earnings per share amount attributable to the GM Class H
common stock was adjusted to reflect the three-for-one stock split of
the GM Class H common stock, in the form of a 200% stock dividend, paid
on June 30, 2000.
(2) Represents total cash for Automotive, Communications Services, and
Other Operations which includes cash and marketable securities as well
as $3.0 billion invested in short-term fixed income securities of the
Corporation's Voluntary Employees' Beneficiary Association Trust.
(3) Net income from continuing operations.
- 20 -
HIGHLIGHTS - Year Ended Financial Results
(Dollars in Millions Except
Per Share Amounts)
Year Ended
December 31,
----------------------------------------
Adjusted Adjusted
2000 2000(1) 1999 1999(1)
-------- ------- ------- --------
Total net sales and
revenues $184,632 $183,292 $176,558 $176,558
------- ------- ------- -------
Income from continuing
operations $4,452 $4,972 $5,576 $5,686
Income from
discontinued operations - - 426 426
------ ------ ------ ------
Consolidated net income $4,452 $4,972 $6,002 $6,112
...............................................................
Earnings Attributable to Common Stocks
$1-2/3 par value
Continuing operations $3,957 $5,072 $5,592 $5,653
Discontinued operations - - 426 426
------ ------ ------ ------
$1-2/3 par value $3,957 $5,072 $6,018 $6,079
Class H $385 $(210) $(96) $(47)
...............................................................
Basic Earnings Per Share Attributable to Common Stocks
$1-2/3 par value
Continuing operations $6.80 $8.72 $8.70 $8.79
Discontinued operations - - 0.66 0.66
------ ------ ------ ------
$1-2/3 par value $6.80 $8.72 $9.36 $9.45
Class H (5) $0.56 ($0.31) $(0.26) $(0.12)
...............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value
Continuing operations $6.68 $8.58 $8.53 $8.62
Discontinued operations - - 0.65 0.65
------ ------ ------ ------
$1-2/3 par value $6.68 $8.58 $9.18 $9.27
Class H (5) $0.55 $(0.31) $(0.26) $(0.12)
...............................................................
Cash Dividends Per Share of Common Stocks
$1-2/3 par value $2.00 $2.00
Class H $- $-
...............................................................
Book Value Per Share of Common Stocks
December 31,
----------------------
2000 1999
--------- ---------
$1-2/3 par value $39.36 $27.02
Class H (5) $7.87 $5.40
...............................................................
See footnotes beginning on page 27.
continues
- 21 -
<PAGE>
HIGHLIGHTS - Year Ended Adjusted for Special Items by Segment
(Dollars in Millions)
Year Ended
December 31, 2000
----------------------------
(1)
Reported (2) Adjusted
Income Special Income
(Loss) Items (Loss)
------- ------- --------
GMNA $3,174 $(1,233) $4,407
GME (676) (419) (257)
GMLAAM 26 - 26
GMAP (233) - (233)
----- ---- -----
Total GMA $2,291 $(1,652) $3,943
Hughes (6) 829 1,132 (303)
Other (281) - (281)
----- ---- -----
Total Automotive,
Comm. Services, and
Other Operations $2,839 $(520) $3,359
GMAC $1,602 $- $1,602
Other 11 - 11
----- ---- -----
Total Financing and
Insurance Operations $1,613 $- $1,613
----- ---- -----
Income from continuing
operations $4,452 $(520) $4,972
----- ---- -----
Consolidated Net Income $4,452 $(520) $4,972
===== ==== =====
Net profit margin from
Total GMA 1.6% 2.7%
Income from continuing
operations 2.4% 2.7%
See footnotes beginning on page 27.
continues
- 22 -
HIGHLIGHTS - Year Ended Adjusted for Special Items by Segment
(Dollars in Millions)
Year Ended
December 31, 1999
----------------------------
(1)
Reported (3) Adjusted
Income Special Income
(Loss) Items (Loss)
------- ------- --------
GMNA $4,857 $257 $4,600
GME 423 - 423
GMLAAM (81) - (81)
GMAP (218) - (218)
----- ---- -----
Total GMA $4,981 $257 $4,724
Hughes (6) (270) (165) (105)
Other (669) (186) (483)
----- ---- -----
Total Automotive,
Comm. Services, and
Other Operations $4,042 $(94) $4,136
GMAC $1,527 $(16) $1,543
Other 7 - 7
----- ---- -----
Total Financing and
Insurance Operations $1,534 $(16) $1,550
----- ---- -----
Income/(loss) from
continuing operations $5,576 $(110) $5,686
Income from discontinued
operations 426 - 426
----- ---- -----
Consolidated Net
Income/(Loss) $6,002 $(110) $6,112
===== ==== =====
Net profit margin from
Total GMA 3.4% 3.2%
Income from continuing
operations 3.2% 3.2%
See footnotes beginning on page 27.
continues
- 23 -
HIGHLIGHTS - Year Ended Adjusted for Special Items by Region
(Dollars in Millions)
Year Ended
December 31, 2000
-------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Reported
--------
Total net sales and revenues $112,723 $25,358 $5,713 $3,606
------- ------ ----- -----
Pre-tax income/(loss) $4,464 $(894) $(155) $(21)
Income tax expense/(benefit) 1,218 (209) (122) 17
Equity income/(loss) and
minority interests (72) 9 59 (195)
------ ----- ----- ---
Net income/(loss) $3,174 $(676) $26 $(233)
====== ===== ===== ===
Net profit/(loss) margin 2.8% (2.7%) 0.5% (6.5%)
Effective income tax rate 27.3% 23.4% 78.7% (81.0%)
LESS: Special Items (2)
-------------------
Total net sales and revenues $(695) $- $- $-
----- ----- ----- ---
Pre-tax (loss) $(1,984) $(619) $- $-
Income tax (benefit) (751) (200) - -
Equity income/(loss) and
minority interests - - - -
----- ----- ----- ---
Net (loss) $(1,233) $(419) $- $-
===== ===== ===== ===
Adjusted (1)
--------
Total net sales and revenues $113,418 $25,358 $5,713 $3,606
------- ------ ----- -----
Pre-tax income/(loss) $6,448 $(275) $(155) $(21)
Income tax expense/(benefit) 1,969 (9) (122) 17
Equity income/(loss) and
minority interests (72) 9 59 (195)
----- ----- ----- ---
Net income/(loss) $4,407 $(257) $26 $(233)
===== ===== ===== ===
Net profit/(loss) margin 3.9% (1.0%) 0.5% (6.5%)
Effective income tax rate 30.5% 3.3% 78.7% (81.0%)
See footnotes beginning on page 27.
continues
- 24 -
HIGHLIGHTS - Year Ended Adjusted for Special Items by Region
(Dollars in Millions)
Year Ended
December 31, 1999
-------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Reported
--------
Total net sales and revenues $111,935 $26,225 $4,709 $3,187
------- ------ ----- -----
Pre-tax income/(loss) $7,248 $642 $(266) $(76)
Income tax expense/(benefit) 2,361 220 (156) (7)
Equity income/(loss) and
minority interests (30) 1 29 (149)
----- ----- ----- ---
Net income/(loss) $4,857 $423 $(81) $(218)
===== ===== ===== ===
Net profit/(loss) margin 4.3% 1.6% (1.7%) (6.8%)
Effective income tax rate 32.6% 34.3% 58.6% 9.2%
LESS: Special Items (3)
-------------------
Total net sales and revenues $ - $ - $ - $ -
----- ----- ----- ---
Pre-tax income $415 $- $- $-
Income tax expense 158 - - -
Equity income/(loss) and
minority interests - - - -
----- ----- ----- ---
Net income $257 $- $- $-
===== ===== ===== ===
Adjusted (1)
--------
Total net sales and revenues $111,935 $26,225 $4,709 $3,187
------- ------ ----- -----
Pre-tax income/(loss) $6,833 $642 $(266) $(76)
Income tax expense/(benefit) 2,203 220 (156) (7)
Equity income/(loss) and
minority interests (30) 1 29 (149)
----- ----- ----- ---
Net income/(loss) $4,600 $423 $(81) $(218)
===== ===== ===== ===
Net profit/(loss) margin 4.1% 1.6% (1.7%) (6.8%)
Effective income tax rate 32.2% 34.3% 58.6% 9.2%
See footnotes beginning on page 27.
continues
- 25 -
HIGHLIGHTS - Year Ended Operating Information
Year Ended
December 31,
----------------------
2000 1999
--------- ----------
Worldwide Wholesale Sales (units in 000s)
United States: Cars 2,514 2,620
Trucks 2,517 2,587
------ ------
Total United States 5,031 5,207
Canada and Mexico 744 667
------ ------
Total GM North America 5,775 5,874
------ ------
GME 1,879 1,968
GMLAAM 634 523
GMAP 458 421
------ ------
Total International 2,971 2,912
------ ------
Total Worldwide 8,746 8,786
====== ======
....................................................
Vehicle Unit Deliveries (units in 000s)
United States
Chevrolet - Cars 891 885
- Trucks 1,725 1,725
Pontiac 613 616
GMC 529 542
Buick 405 446
Oldsmobile 289 352
Saturn 272 233
Cadillac 189 179
Other 40 39
------ ------
Total United States 4,953 5,017
Canada and Mexico 707 683
------ ------
Total GM North America 5,660 5,700
------ ------
GME 1,855 1,970
GMLAAM 603 536
GMAP 473 468
------ ------
Total International 2,931 2,974
------ ------
Total Worldwide 8,591 8,674
====== ======
....................................................
Market share
United States
Cars 28.6% 29.8%
Trucks 27.0% 27.8%
Total 27.8% 28.8%
Total North America 27.5% 28.5%
Total Europe 9.3% 9.7%
Latin America (4) 20.4% 19.9%
Asia and Pacific 3.7% 3.9%
Total Worldwide 15.1% 15.6%
.....................................................
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 27.3% 26.4%
% Fleet Sales - Trucks 14.8% 13.2%
Total vehicles 21.2% 20.0%
.....................................................
Days Supply of Inventory - U.S.
Cars 116 93
Trucks 132 85
.....................................................
Capacity Utilization %
U.S. and Canada (2-shift rated) 89.4% 91.1%
....................................................
GMNA
Net Price (%) (0.7%) (0.3%)
....................................................
See footnotes beginning on page 27.
continues
- 26 -
HIGHLIGHTS - Year Ended Other Financial Information
(Dollars in Millions)
Year Ended
December 31,
----------------------
2000 1999
--------- ----------
Automotive, Comm. Services, and
Other Operations:
Depreciation $4,368 $4,155
Amortization of special tools 2,753 2,492
Amortization of intangible
assets 308 226
----- -----
Total $7,429 $6,873
===== =====
....................................................
Worldwide Payrolls $21,595 $21,827
....................................................
(1) Adjusted amounts represent the reported amounts less the effects of
special items.
(2) Special items for 2000 are detailed on page 17.
(3) Special items for 1999 are detailed on page 18.
(4) Latin America excludes the Middle East and Africa.
(5) The 1999 earnings per share and book value per share were adjusted to
reflect the three-for-one stock split of the GM Class H common stock,
in the form of a 200% stock dividend, paid on June 30, 2000.
(6) Excludes the effects of purchase accounting adjustments related to
General Motors' acquisition of Hughes in 1985, and excludes Hughes
Series A Preferred Stock dividends payable to General Motors.
- 27 -
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31,
-------------------------------
2000 1999
---- ----
(Dollars in Millions Except
Per Share Amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $46,341 $46,262
------- ------
Cost of sales and other expenses 36,776 36,447
Selling, general, and administrative expenses 6,648 5,884
Interest expense 2,486 2,126
------ ------
Total costs and expenses 45,910 44,457
------ ------
Income from continuing operations
before income taxes
and minority interests 431 1,805
Income tax expense 245 580
Equity income/(loss) and minority interests (97) (80)
----- -----
Income from continuing operations 89 1,145
Income (loss) from discontinued operations - -
----- -----
Net income 89 1,145
Dividends on preference stocks (27) (29)
----- ------
Earnings attributable to common stocks $62 $1,116
== =====
Basic earnings (losses) per share attributable to
common stocks
$1-2/3 par value
Continuing operations $(1.14) $1.90
Discontinued operations - -
------ ------
Earnings per share attributable
to $1-2/3 par value $(1.14) $1.90
====== ====
Earnings per share attributable to Class H $0.80 $(0.19)
==== ====
Earnings (losses) per share
attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing operations $(1.16) $1.86
Discontinued operations - -
------ ------
Earnings per share attributable
to $1-2/3 par value $(1.16) $1.86
==== ====
Earnings per share attributable to Class H $0.76 $(0.19)
==== ====
- 28 -
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME - continued
Three Months Ended
December 31,
--------------------------------
2000 1999
---- ----
(Dollars in Millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $39,960 $40,921
------ ------
Cost of sales and other expenses 34,895 34,707
Selling, general, and administrative expenses 4,942 4,676
------ ------
Total costs and expenses 39,837 39,383
------ ------
Interest expense 167 231
Net expense from transactions with
Financing and Insurance Operations 174 63
------ ------
(Loss) Income from continuing
operations before income
taxes and minority interests (218) 1,244
Income tax expense 10 368
Equity income/(loss) and minority interests (92) (77)
----- -----
(Loss) income from continuing operations (320) 799
Income (loss) from discontinued operations - -
----- -----
Net (loss) income - Automotive, Communications
Services, and Other Operations $(320) $799
===== ===
Three Months Ended
December 31,
--------------------------------
2000 1999
---- ----
(Dollars in Millions)
FINANCING AND INSURANCE OPERATIONS
Total revenues $6,381 $5,341
----- -----
Interest expense 2,319 1,895
Depreciation and amortization expense 1,502 1,527
Operating and other expenses 1,658 1,166
Provisions for financing and insurance losses 427 255
---- -----
Total costs and expenses 5,906 4,843
----- -----
Net income from transactions
with Automotive,
Communications Services,
and Other Operations (174) (63)
----- ----
Income before income taxes
and minority interests 649 561
Income tax expense 235 212
Equity income/(loss) and minority interests (5) (3)
----- ----
Net income - Financing and
Insurance Operations $409 $346
=== ===
- 29 -
CONSOLIDATED STATEMENTS OF INCOME - continued
Years Ended December 31,
---------------------------------
2000 1999 1998
---- ---- ----
(Dollars in Millions Except
Per Share Amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $184,632 $176,558 $155,445
------- ------- -------
Cost of sales and other expenses 145,664 140,708 127,785
Selling, general, and administrative
expenses 22,252 19,053 16,087
Interest expense 9,552 7,750 6,629
------- ------- -------
Total costs and expenses 177,468 167,511 150,501
------- ------- -------
Income from continuing operations
before income taxes
and minority interests 7,164 9,047 4,944
Income tax expense 2,393 3,118 1,636
Equity income/(loss) and minority interests (319) (353) (259)
------ ------ -------
Income from continuing operations 4,452 5,576 3,049
Income (loss) from discontinued operations - 426 (93)
------ ------ -------
Net income 4,452 6,002 2,956
Dividends on preference stocks (110) (80) (63)
------ ------- -------
Earnings attributable to common stocks $4,342 $5,922 $2,893
===== ===== =====
Basic earnings (losses) per share
attributable to common stocks
$1-2/3 par value
Continuing operations $6.80 $8.70 $4.40
Discontinued operations - 0.66 (0.14)
----- ---- ----
Earnings per share attributable
to $1-2/3 par value $6.80 $9.36 $4.26
==== ==== ====
Earnings per share attributable to Class H $0.56 $(0.26) $0.23
==== ==== ====
Earnings (losses) per share
attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing operations $6.68 $8.53 $4.32
Discontinued operations - 0.65 (0.14)
---- ---- ----
Earnings per share attributable
to $1-2/3 par value $6.68 $9.18 $4.18
==== ==== ====
Earnings per share attributable to Class H $0.55 $(0.26) $0.23
==== ==== ====
- 30 -
CONSOLIDATED STATEMENTS OF INCOME - concluded
Years Ended December 31,
---------------------------------
2000 1999 1998
---- ---- ----
(Dollars in Millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $160,627 $156,107 $137,161
------- ------- -------
Cost of sales and other expenses 138,303 134,111 121,491
Selling, general, and administrative
expenses 16,246 14,324 11,918
------- ------- -------
Total costs and expenses 154,549 148,435 133,409
------- ------- -------
Interest expense 815 828 786
Net expense from transactions with
Financing and Insurance Operations 682 308 82
------ ------ -------
Income from continuing
operations before income
taxes and minority interests 4,581 6,536 2,884
Income tax expense 1,443 2,167 1,018
Equity income/(loss) and
minority interests (299) (327) (239)
----- ----- -----
Income from continuing operations 2,839 4,042 1,627
Income (loss) from discontinued operations - 426 (93)
----- ----- -----
Net income - Automotive, Communications
Services, and Other Operations $2,839 $4,468 $1,534
===== ===== =====
Years Ended December 31,
---------------------------------
2000 1999 1998
---- ---- ----
(Dollars in Millions)
FINANCING AND INSURANCE OPERATIONS
Total revenues $24,005 $20,451 $18,284
------ ------ ------
Interest expense 8,737 6,922 5,843
Depreciation and amortization expense 5,982 5,445 4,920
Operating and other expenses 5,805 4,595 4,067
Provisions for financing and
insurance losses 1,580 1,286 1,476
------ ------ ------
Total costs and expenses 22,104 18,248 16,306
------ ------ ------
Net income from transactions with
Automotive, Communications Services,
and Other Operations (682) (308) (82)
------ ------ ------
Income before income taxes
and minority interests 2,583 2,511 2,060
Income tax expense 950 951 618
Equity income/(loss) and minority interests (20) (26) (20)
------ ------ ------
Net income - Financing and Insurance
Operations $1,613 $1,534 $1,422
===== ===== =====
- 31 -
CONSOLIDATED BALANCE SHEETS
December 31,
GENERAL MOTORS CORPORATION AND SUBSIDIARIES 2000 1999
---- ----
ASSETS (Dollars in Millions)
Automotive, Communications Services, and Other Operations
Cash and cash equivalents $9,119 $9,730
Marketable securities 1,161 1,698
------- -------
Total cash and marketable securities 10,280 11,428
Accounts and notes receivable (less allowances) 5,835 5,093
Inventories (less allowances) 10,945 10,638
Equipment on operating leases (less accumulated
depreciation) 5,699 5,744
Deferred income taxes and other current assets 8,388 9,006
------- -------
Total current assets 41,147 41,909
Equity in net assets of nonconsolidated associates 3,410 1,711
Property - net 33,977 32,779
Intangible assets - net 7,622 8,527
Deferred income taxes 14,870 15,277
Other assets 32,243 25,358
------- -------
Total Automotive, Communications Services, and
Other Operations assets 133,269 125,561
Financing and Insurance Operations
Cash and cash equivalents 1,165 712
Investments in securities 9,595 9,110
Finance receivables - net 92,415 80,627
Investment in leases and other receivables 36,752 36,407
Other assets 27,846 21,312
Net receivable from Automotive, Comm. Serv.,
and Other Operations 1,971 1,001
------- -------
Total Financing and Insurance Operations assets 169,744 149,169
------- -------
Total assets $303,013 $274,730
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services, and Other Operations
Accounts payable (principally trade) $18,309 $17,254
Loans payable 2,208 1,991
Accrued expenses 33,252 32,854
Net payable to Financing and Insurance Operations 1,971 1,001
------ -------
Total current liabilities 55,740 53,100
Long-term debt 7,410 7,415
Postretirement benefits other than pensions 34,306 34,166
Pensions 3,480 3,339
Other liabilities and deferred income taxes 15,768 17,426
------- -------
Total Automotive, Communications Services,
and Other Operations liabilities 116,704 115,446
Financing and Insurance Operations
Accounts payable 8,169 4,262
Debt 134,284 122,282
Other liabilities and deferred income taxes 12,922 11,282
-------- --------
Total Financing and Insurance Operations liabilities 155,375 137,826
Minority interests 707 596
General Motors - obligated mandatorily redeemable
preferred securities of subsidiary
trusts holding solely junior subordinated
debentures of General Motors
Series D - 79
Series G 139 139
Stockholders' equity
$1-2/3 par value common stock (issued, 548,148,622
and 619,412,233 shares) 914 1,033
Class H common stock (issued, 875,286,559 and
411,345,561 shares) 88 14
Capital surplus (principally additional
paid-in capital) 21,020 13,794
Retained earnings 10,119 6,961
------ -------
Subtotal 32,141 21,802
Accumulated foreign currency translation adjustments (2,589) (2,033)
Net unrealized gains on securities 581 996
Minimum pension liability adjustment (45) (121)
---------- ---------
Accumulated other comprehensive loss (2,053) (1,158)
-------- --------
Total stockholders' equity 30,088 20,644
-------- --------
Total liabilities and stockholders' equity $303,013 $274,730
======= =======
- 32 -
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
For The Years Ended December 31,
------------------------------------------------------------------------------------------
2000 1999 1998
------------------------------------------------------------------------------------------
Automotive, Financing Automotive, Financing Automotive, Financing
Comm.Serv., and Comm.Serv., and Comm.Serv., and
and Other Insurance and Other Insurance and Other Insurance
----------- --------- ----------- --------- ----------- ---------
Cash flows from operating activities (Dollars in Millions)
<S> <C> <C> <C> <C> <C> <C>
Income from continuing operations $2,839 $1,613 $4,042 $1,534 $1,627 $1,422
Adjustments to reconcile income
from continuing operations to net
cash provided by operating activities
Depreciation and amortization
expenses 7,429 5,982 6,873 5,445 6,227 4,920
Postretirement benefits
other than pensions,
net of payments and
VEBA contributions 772 27 (1,057) 21 157 31
Pension expense, net of contributions 128 - (808) - 223 -
Originations and purchases of
mortgage loans - (51,202) - (53,006) - (54,433)
Proceeds on sales of mortgage loans - 51,444 - 55,777 - 51,582
Originations and purchases of
mortgage securities - (1,571) - (1,309) - (2,237)
Proceeds on sales of mortgage
securities - 994 - 1,545 - 849
Change in other investments and
miscellaneous assets 1,154 (1,692) 522 (127) (162) 932
Change in other operating assets
and liabilities 724 3,257 7,523 (23) 90 1,468
Other (2,175) 780 (951) 944 581 1,066
------ ----- ------ ------ ----- -----
Net cash provided by operating
activities 10,871 9,632 16,144 10,801 8,743 5,600
------ ----- ------ ------ ----- -----
Cash flows from investing activities
Expenditures for property (9,200) (522) (7,061) (323) (7,952) (279)
Investments in marketable securities
- acquisitions (2,520) (24,599) (4,149) (21,257) (13,010) (21,152)
Investments in marketable securities
- liquidations 3,056 24,113 2,886 20,593 16,272 21,688
Mortgage servicing rights
- acquisitions - (1,096) - (1,424) - (1,862)
Mortgage servicing rights
- liquidations - 12 - 35 - 80
Finance receivables - acquisitions - (214,666) - (186,379) - (155,613)
Finance receivables - liquidations - 143,242 - 130,293 - 114,662
Proceeds from sales of finance
receivables - 58,369 - 48,178 - 27,681
Operating leases - acquisitions (6,709) (15,174) (6,415) (16,750) (6,397) (17,128)
Operating leases - liquidations 6,149 9,844 4,243 7,836 5,609 9,777
Investments in companies,
net of cash acquired (4,302) (2,077) (2,706) (2,402) (971) (173)
Net investing activity with Financing
and Insurance Operations (1,069) - 75 - 338 -
Other 3,282 94 (924) 732 (889) (242)
------ ------ ------- ------ ------ -------
Net cash used in investing
activities (11,313) (22,460) (14,051) (20,868) (7,000) (22,561)
------ ------ ------ ------ ----- -------
Cash flows from financing activities
Net increase (decrease) in
loans payable 142 6,970 140 (2,500) (94) 8,280
Long-term debt - borrowings 5,279 22,414 9,090 26,471 2,937 21,098
Long-term debt - repayments (6,196) (16,196) (8,281) (13,078) (1,492) (11,377)
Net financing activity with Automotive,
Communications Services, and
Other Operations - 1,069 - (75) - (338)
Repurchases of common and
preference stocks (1,613) - (3,870) - (3,089) -
Proceeds from issuing common and
preference stocks 2,792 - 2,090 - 343 -
Cash dividends paid to stockholders (1,294) - (1,367) - (1,388) -
----- ------ ----- ------ ----- ------
Net cash (used in) provided by
financing activities (890) 14,257 (2,198) 10,818 (2,783) 17,663
--- ------ ----- ------ ----- ------
Effect of exchange rate changes on
cash and cash equivalents (249) (6) (206) - 315 2
Net transactions with Automotive
/Financing Operations 970 (970) 185 (185) 1,135 (1,135)
--- --- --- ---- ----- -----
Net cash (used in) provided by
continuing operations (611) 453 (126) 566 410 (431)
Net cash provided by (used in)
discontinued operations - - 128 - (378) -
--- --- --- ---- --- -----
Net increase (decrease) in cash
and cash equivalents (611) 453 2 566 32 (431)
Cash and cash equivalents at
beginning of the year 9,730 712 9,728 146 9,696 577
----- ----- ----- --- ----- ---
Cash and cash equivalents at
end of the year $9,119 $1,165 $9,730 $712 $9,728 $146
===== ===== ===== === ===== ===
</TABLE>
* * * * * * *
- 33 -
HUGHES Reports 21-Percent Revenue
Growth In Fourth Quarter 2000
A Record 1 Million Gross New U.S. Customers Purchase DIRECTV(R)
Systems During the Quarter
El Segundo, Calif., January 16, 2001 -- HUGHES Electronics Corporation,
the world's leading provider of digital television entertainment, satellite
services and satellite-based private business networks, today reported fourth
quarter 2000 revenues increased 21.3% to $2,059.0 million, compared with
$1,698.0 million in the fourth quarter of 1999. EBITDA(1) for the quarter
increased to $153.8 million and EBITDA margin(1) was 7.5%, compared to an EBITDA
loss of $173.0 million in the fourth quarter of 1999.
"Our growth continues to be driven by unprecedented demand for the DIRECTV
service in both the United States and Latin America," said Michael T. Smith,
HUGHES chairman and chief executive officer. "In fact, on a gross basis, more
than 1 million new customers bought DIRECTV systems in the United States during
the quarter--a clear indication that demand for DIRECTV continues to be strong."
As a result of this continued strong demand, DIRECTV added a record
527,000 net subscribers in the United States in the quarter. In addition,
DIRECTV ended the quarter with a unique backlog--supplementary to the company's
normal pending accounts--of more than 110,000 customers who purchased DIRECTV
systems and scheduled a professional installation. Installation capacity was
impeded by the worst weather in years for many parts of the country and the
record demand for multi-receiver DIRECTV systems, which require significantly
more time for installation.
"With the addition of over 3.4 million gross subscribers in 2000, DIRECTV
achieved its strongest annual growth in history," Smith continued. "And this
year, we will continue to fuel growth with new product introductions, including
DIRECTV with UltimateTV, the DIRECTV/AOLTV receiver, DIRECTV BROADBAND Powered
by DirecPC and a bundled DIRECTV/Telocity high-speed Internet DSL offering. We
will be the only provider in the country to offer these combination
television/Internet services, and we are confident they will resonate with
consumers and add to our ability to retain customers."
EBITDA for the quarter increased to $153.8 million and EBITDA margin was
7.5%, compared to an EBITDA loss of $173.0 million in the fourth quarter of
1999. The 1999 EBITDA loss included a one-time fourth quarter pre-tax charge of
$272 million related to the discontinuation of certain narrowband wireless
businesses at HUGHES Network Systems (HNS). Excluding the wireless charge,
EBITDA increased 55.4% from $99.0 million in the fourth quarter of 1999. This
increase was principally due to one-time favorable adjustments to corporate
expenditures primarily related to pension and other employee costs, and higher
EBITDA at DIRECTV U.S. generated principally from its larger subscriber base.
These were partially offset by increased investments in new businesses such as
Hughes Network Systems's DirecPC(R) business and PanAmSat's Net-36(TM) broadband
Internet initiative.
HUGHES had fourth quarter 2000 earnings(2) of $1,058.8 million, compared
to a loss(2) of $226.7 million in the same period for 1999. The increase was
primarily due to a one-time fourth quarter 2000 after-tax gain of $1,132.3
million related to the sale of HUGHES' satellite manufacturing businesses and
the aforementioned increases in EBITDA. These were partially offset by increased
depreciation and amortization expense resulting from the mid-1999 United States
Satellite Broadcasting (USSB) and Primestar transactions, and the expanded
PanAmSat satellite fleet, as well as lower equity losses related to the
discontinuation of the DIRECTV Japan business.
- 34 -
Full-Year 2000 Financial review
Year-end 2000 revenues increased 31.1% to $7,287.6 million, compared to
$5,560.3 million in 1999. This increase was primarily due to continued record
subscriber growth at DIRECTV in the United States and Latin America, additional
revenues resulting from the USSB and Primestar transactions, and higher outright
sales and sales-type leases of transponders at PanAmSat.
EBITDA for the year more than doubled to $594.0 million and EBITDA margin
was 8.2%, compared to EBITDA of $264.4 million and EBITDA margin of 4.8% in
1999. The increase in EBITDA was primarily attributable to the 1999 wireless
charge. Excluding the charge, EBITDA increased 10.7% from $536.4 million in
1999. This increase was primarily due to lower corporate expenses primarily
related to pension and other employee costs, and higher outright sales and
sales-type leases of transponders at PanAmSat. These were partially offset by
increased investments in DirecPC and Spaceway(TM), and higher marketing expenses
associated with the record subscriber growth at DIRECTV Latin America.
Earnings(2) for 2000 totaled $829.9 million, compared to a loss(2) of
$270.3 million in 1999. The increase was primarily due to the $1,132.3 million
after-tax gain resulting from the sale of HUGHES' satellite manufacturing
businesses and the previously discussed increase in EBITDA. These gains were
partially offset by increased depreciation and amortization resulting from the
mid-1999 USSB and Primestar transactions and the expanded PanAmSat satellite
fleet, and higher net interest expense. Additionally, in the first quarter of
2000, Hughes booked a one-time pre-tax charge of $171 million (reported in
"Other, net") related to its agreement with SkyPerfecTV! and the discontinuation
of the DIRECTV Japan business. The after-tax impact of this charge was a loss of
$13 million, which includes the tax benefits associated with the write-off of
Hughes' historical investments in DIRECTV Japan.
Segment Financial Review
Fourth Quarter 2000
Direct-To-Home Broadcast
Fourth quarter revenues for the segment increased 25.3% to $1,520.5
million from $1,213.6 million in the fourth quarter of 1999. The segment had
EBITDA of $16.4 million compared with negative EBITDA of $23.6 million in the
fourth quarter of 1999.
United States: DIRECTV reported that quarterly revenues grew 23% to $1,351
million, compared with revenues of $1,100 million in the fourth quarter of 1999.
The increase was principally due to the continued strong subscriber growth.
DIRECTV added a record 527,000 net subscribers to its DIRECTV service in
the quarter versus 515,000 net subscribers added in the fourth quarter of 1999.
In the fourth quarter 2000, DIRECTV also had a backlog of more than 110,000
additional customers who purchased DIRECTV equipment and scheduled a
professional installation through the DIRECTV Home Services Network. This
backlog was in addition to DIRECTV's normal pending accounts. The unusually
large backlog resulted from severe winter storms in many parts of the country
and the particularly strong demand for DIRECTV systems with two or more set-top
boxes, which require significantly more time for installation.
For the full-year, DIRECTV had its best year ever with 1,834,000 net
high-power subscriber additions in 2000, a 14% improvement over the 1,606,000
net subscribers added in 1999. As of December 31, 2000, DIRECTV had a total of
9.5 million subscribers in the United States.
EBITDA for the fourth quarter of 2000 more than doubled to $59 million,
compared to EBITDA of $27 million in the previous year's fourth quarter. This
improvement resulted from the higher EBITDA attained from the larger subscriber
base, which more than offset the higher marketing costs associated with the
record subscriber growth in the quarter.
Latin America: DIRECTV Latin America generated $169 million in revenues
for the quarter, up 66% over the $102 million reported in the fourth quarter of
1999. This increase was due to continued strong subscriber growth.
- 35 -
DIRECTV Latin America added a record 168,000 net subscribers in the fourth
quarter of 2000, a 24% increase over the 136,000 acquired in the same period
last year. In 2000--DIRECTV's best year ever in Latin America--the service added
501,000 net subscribers (57% greater than 1999), bringing the total number of
subscribers in Latin America to 1,305,000 as of December 31, 2000.
DIRECTV Latin America had an EBITDA loss of $43 million compared to a
similar EBITDA loss of $42 million for the same period in 1999. The minimal
change was primarily a result of the fact that the higher marketing costs
associated with the record subscriber growth were mostly offset by the increased
EBITDA generated by the larger subscriber base.
Satellite Services
PanAmSat, which is 81% owned by HUGHES, generated fourth quarter 2000
revenues of $202.9 million compared with $206.0 million in the prior year's
period. This decline is mostly due to customer conversions from operating lease
agreements to new sales-type lease agreements in 2000.
PanAmSat's fourth quarter 2000 EBITDA was $136.1 million compared to
$152.9 million in last year's fourth quarter. EBITDA margin in the fourth
quarter of 2000 was 67.1% compared to 74.2% in the same period last year. The
decrease in EBITDA and EBITDA margin was primarily due to an increase in direct
operating and selling, general and administrative (SG&A) costs resulting from
the company's continued fleet expansion, and increased investment in the new
NET-36 broadband Internet initiative.
As of December 31, 2000, PanAmSat had contracts for satellite services
representing future payments (backlog) of approximately $6.0 billion compared to
approximately $5.8 billion in the third quarter of 2000. The increase was due
primarily to new contracts with the MultiChoice direct-to-home platform in
Southern Africa, HNS's DirecPC business, Digital Choice and the Lifetime Cable
Network.
Network Systems
Hughes Network Systems' (HNS) fourth quarter 2000 revenues were $389.5
million, compared to $386.5 million in the same period last year.
HNS had a fourth quarter 2000 EBITDA loss of $34.3 million, compared to an
EBITDA loss of $237.2 million in the fourth quarter of 1999. The change was
largely due to the effects of the $272 million fourth quarter of 1999 charge
related to the discontinuation of certain HNS wireless businesses. Excluding
this charge, HNS had EBITDA of $34.8 million in the fourth quarter of 1999. This
decline in EBITDA is primarily attributable to the elimination of DIRECTV
equipment subsidies from DIRECTV and increased investment in DirecPC.
HNS ended 2000 with a backlog of more than $500 million in its Enterprise
business, an increase of 24% over 1999. This increase was due primarily to the
addition of contracts with customers including Albertsons, Jack in the Box, BP
Amoco Pipeline, Donato's and Outback Steakhouse.
In its Consumer businesses, HNS shipped 680,000 DIRECTV receiver systems
in the fourth quarter of 2000, bringing its total number of receivers shipped to
more than 6 million. In the fourth quarter of 1999, HNS shipped 715,000 DIRECTV
receiver systems. This decline was due to the completion of the Primestar
conversion process in the third quarter 2000. Also in the fourth quarter of
2000, DirecPC launched the AOL Plus Powered By DirecPC service, signed "Powered
By" distribution agreements with Earthlink and DIRECTV, and began delivering its
two-way via satellite Internet access equipment. As of December 31, 2000,
DirecPC served more than 50,000 consumers in the United States.
BALANCE SHEET
From December 31, 1999 to December 31, 2000, the Company's consolidated
cash balance increased $1,269.9 million to $1,508.1 million and total debt
decreased $824.8 million to $1,316.6 million. The changes were principally due
to the receipt of approximately $3.1 billion in after-tax proceeds from the sale
of HUGHES' satellite manufacturing businesses to The Boeing Company partially
offset by cash requirements for the year related to capital expenditures for
property, plant, equipment and satellites, and reduction of corporate debt.
- 36 -
HUGHES Electronics Corporation is a unit of General Motors Corporation.
The earnings of HUGHES are used to calculate the earnings per share attributable
to the General Motors Class H common stock (NYSE:GMH).
A live webcast of HUGHES' fourth quarter 2000 earnings call will be
available at the company's website at www.HUGHES.com. The call will begin at
2:00 p.m. ET, today. Investors are advised to allow 15 minutes prior to the call
to register and download any necessary software. Following the completion of the
call, the webcast will be archived on the Investor Relations portion of the
HUGHES website for at least one week. Hughes invites reporters to participate in
a listen-only mode on its fourth quarter 2000 analyst call at 2 p.m. ET Tuesday,
January 16, 2001. The dial-in number is 719-457-2634 and the confirmation code
is 585273.
NOTE: HUGHES Electronics Corporation believes that some of the foregoing
statements may constitute forward-looking statements. When used in this report,
the words "estimate," "plan," "project," "anticipate," "expect," "intend,"
"outlook," "believe," and other similar expressions are intended to identify
such forward-looking statements and information. Important factors that may
cause actual results of HUGHES to differ materially from the forward-looking
statements in this report are set forth in the Form 10-Ks filed with the SEC by
GM and HUGHES.
---------------------
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
the sum of operating profit (loss) and depreciation and amortization. EBITDA
margin is calculated by dividing EBITDA by total revenues.
(2) Equals reported Net Income (Loss) excluding the effects of purchase
accounting adjustments related to General Motors' acquisition of HUGHES in 1985.
###
- 37 -
<TABLE>
STATEMENT OF OPERATIONS AND
AVAILABLE SEPARATE CONSOLIDATED NET INCOME (LOSS)
(Dollars in Millions)
(Unaudited)
<CAPTION>
Three Months
Ended Year
December 31, Ended December 31,
----------------- -------------------
2000 1999 2000 1999
-----------------------------------------------------------------------------------------
Revenues
<S> <C> <C> <C> <C>
Direct broadcast, leasing and other services $1,738.9 $1,403.8 $6,262.2 $4,550.8
Product sales 320.1 294.2 1,025.4 1,009.5
-----------------------------------------------------------------------------------------
Total Revenues 2,059.0 1,698.0 7,287.6 5,560.3
-----------------------------------------------------------------------------------------
Operating Costs and Expenses
Broadcast programming and other costs 776.9 664.6 2,812.8 2,039.0
Cost of products sold 251.1 349.8 815.1 961.6
Selling, general and administrative expenses 877.2 856.6 3,065.7 2,295.3
Depreciation and amortization 275.0 198.8 948.1 678.9
-----------------------------------------------------------------------------------------
Total Operating Costs and Expenses 2,180.2 2,069.8 7,641.7 5,974.8
-----------------------------------------------------------------------------------------
Operating Loss (121.2) (371.8) (354.1) (414.5)
Interest income 34.0 6.2 49.3 27.0
Interest expense (49.0) (51.7) (218.2) (122.7)
Other, net 1.8 (53.5) (292.6) (149.8)
-----------------------------------------------------------------------------------------
Loss From Continuing Operations
Before Income Taxes
and Minority Interests (134.4) (470.8) (815.6) (660.0)
Income tax benefit (51.7) (177.2) (406.1) (236.9)
Minority interests in net losses
of subsidiaries 22.4 9.9 54.1 32.0
-----------------------------------------------------------------------------------------
Loss from continuing operations (60.3) (283.7) (355.4) (391.1)
Income (Loss) from discontinued operations,
net of taxes (14.2) 51.9 36.1 99.8
Gain on sale of discontinued operations,
net of taxes 1,132.3 - 1,132.3 -
-----------------------------------------------------------------------------------------
Net Income (Loss) 1,057.8 (231.8) 813.0 (291.3)
Adjustments to exclude the effect of GM purchase
accounting adjustments 1.0 5.1 16.9 21.0
-----------------------------------------------------------------------------------------
Earnings (Loss) Excluding the Effect of GM
Purchase Accounting Adjustments 1,058.8 (226.7) 829.9 (270.3)
Preferred stock dividends (24.1) (24.6) (97.0) (50.9)
-----------------------------------------------------------------------------------------
Earnings (Loss) Used for Computation of Available
Separate Consolidated Net Income (Loss) $1,034.7 $(251.3) $732.9 $(321.2)
=========================================================================================
Available Separate Consolidated Net Income (Loss)
Average number of shares of General Motors Class H
Common Stock outstanding (in millions)
(Numerator) 874.9 408.9 681.2 374.1
Average Class H dividend base (in millions)
(Denominator) 1,298.7 1,290.3 1,297.0 1,255.5
Available Separate Consolidated Net Income (Loss) $697.1 $(79.6) $384.9 $(95.7)
=========================================================================================
Certain 1999 amounts have been reclassified to conform with the 2000
presentation.
</TABLE>
- 38 -
BALANCE SHEET
(Dollars in Millions) December 31,
2000 December 31,
ASSETS (Unaudited) 1999
-------------------------------------------------------------------------------
Current Assets
Cash and cash equivalents $1,508.1 $238.2
Accounts and notes receivable 1,253.0 960.9
Contracts in process 186.0 155.8
Inventories 338.0 236.1
Net assets of discontinued operations - 1,224.6
Deferred income taxes 89.9 254.3
Prepaid expenses and other 778.7 788.1
-------------------------------------------------------------------------------
Total Current Assets 4,153.7 3,858.0
Satellites, net 4,230.0 3,907.3
Property, net 1,707.8 1,223.0
Net Investment in Sales-type Leases 221.1 146.1
Intangible Assets, net 7,151.3 7,406.0
Investments and Other Assets 1,815.4 2,056.6
-------------------------------------------------------------------------------
Total Assets $19,279.3 $18,597.0
===============================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
-------------------------------------------------------------------------------
Current Liabilities
Accounts payable $1,224.2 $1,062.2
Deferred revenues 137.6 130.5
Short-term borrowings and current portion of 24.6 555.4
Accrued liabilities and other 1,304.5 894.0
-------------------------------------------------------------------------------
Total Current Liabilities 2,690.9 2,642.1
Long-Term Debt 1,292.0 1,586.0
Other Liabilities and Deferred Credits 1,647.3 1,454.2
Deferred Income Taxes 769.3 689.1
Commitments and Contingencies
Minority Interests 553.7 544.3
Stockholder's Equity 12,326.1 11,681.3
-------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $19,279.3 $18,597.0
===============================================================================
Holders of GM Class H common stock have no direct rights in the equity or assets
of Hughes, but rather have rights in the equity and assets of General Motors
(which includes 100% of the stock of Hughes).
- 39 -
<TABLE>
SELECTED SEGMENT DATA
(Dollars in Millions)
(Unaudited)
<CAPTION>
Three Months Ended Year
December 31, Ended December 31,
--------------------- --------------------
2000 1999 2000 1999
------------------------------------------------------------------------------------
DIRECT-TO-HOME BROADCAST
<S> <C> <C> <C> <C>
Total Revenues $ 1,520.5 $ 1,213.6 $ 5,238.0 $ 3,785.0
EBITDA (1) $ 16.4 $ (23.6) $ (24.5) $ 22.4
Operating Loss $ (147.0) $ (131.4) $ (557.9) $ (289.6)
Depreciation and Amortization $ 163.4 $ 107.8 $ 533.4 $ 312.0
Capital Expenditures (2) $ 264.4 $ 263.5 $ 913.5 $ 516.9
------------------------------------------------------------------------------------
SATELLITE SERVICES
Total Revenues $ 202.9 $ 206.0 $ 1,023.6 $ 810.6
EBITDA (1) $ 136.1 $ 152.9 $ 694.0 $ 618.8
EBITDA Margin (1) 67.1% 74.2% 67.8% 76.3%
Operating Profit $ 37.5 $ 79.4 $ 356.6 $ 338.3
Operating Profit Margin 18.5% 38.5% 34.8% 41.7%
Depreciation and Amortization $ 98.6 $ 73.5 $ 337.4 $ 280.5
Capital Expenditures (3) $ 131.9 $ 133.4 $ 449.5 $ 956.4
------------------------------------------------------------------------------------
NETWORK SYSTEMS
Total Revenues $ 389.5 $ 386.5 $ 1,409.8 $ 1,384.7
EBITDA (1) $ (34.3) $ (237.2) $ 0.1 $ (156.7)
Operating Loss $ (48.1) $ (257.2) $ (63.5) $ (234.1)
Depreciation and Amortization $ 13.8 $ 20.0 $ 63.6 $ 77.4
Capital Expenditures (4) $ 128.5 $ 63.8 $ 369.5 $ 175.0
------------------------------------------------------------------------------------
ELIMINATIONS and OTHER
Total Revenues $ (53.9) $ (108.1) $ (383.8) $ (420.0)
EBITDA (1) $ 35.6 $ (65.1) $ (75.6) $ (220.1)
Operating Profit (Loss) $ 36.4 $ (62.6) $ (89.3) $ (229.1)
Depreciation and Amortization $ (0.8) $ (2.5) $ 13.7 $ 9.0
Capital Expenditures $ (14.1) $ 59.2 $ (16.4) $ 17.0
------------------------------------------------------------------------------------
TOTAL
Total Revenues $ 2,059.0 $ 1,698.0 $ 7,287.6 $ 5,560.3
EBITDA (1) $ 153.8 $ (173.0) $ 594.0 $ 264.4
EBITDA Margin (1) 7.5% N/A 8.2% 4.8%
Operating Loss $ (121.2) $ (371.8) $ (354.1) $ (414.5)
Depreciation and Amortization $ 275.0 $ 198.8 $ 948.1 $ 678.9
Capital Expenditures $ 510.7 $ 519.9 $ 1,716.1 $ 1,665.3
====================================================================================
Certain 1999 amounts have been reclassified to conform with the 2000
presentation.
(1)EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
is the sum of operating profit (loss) and depreciation and amortization.
EBITDA margin is calculated by dividing EBITDA by total revenues.
(2)Includes expenditures related to satellites amounting to $35.0 million,
$46.9 million, $108.2 million and $136.0 million, respectively.
(3)Includes expenditures related to satellites amounting to $105.6 million,
$124.0 million, $364.4 million and $532.8 million, respectively. Also
included in the 1999 amount is $369.5 million, related to the early
buy-out of satellite sale-leasebacks.
(4)Includes expenditures related to satellites amounting to $99.8 million,
$44.9 million, $293.0 million and $119.8 million, respectively.
</TABLE>
- 40 -
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibit
Exhibit 3(ii) The By-Laws of General Motors Corporation, were amended on
October 3, 2000, reflecting amendments to the first sentence of the second
paragraph of Section 3.1 of Article III; adding a sentence after the final
sentence of the second paragraph of Section 3.1 of Article III; amending
the beginning of the first sentence of Section 3.2 of Article III, and
amending the last sentence of Section 3.2 of Article III as described
below: These changes supersede the amendments to the By-Laws that were
filed on October 12, 2000, also dated October 3, 2000.
Section Amendment
------- ---------
3.1 Committees of the
Board of Directors.
Paragraph 2,
First sentence The standing committees of the
--------
board shall include the investment funds
committee, the audit committee, the
executive compensation committee, the public
policy committee, the committee on director
affairs, and the capital stock committee.
---------------------------
3.1 Committees of the
Board of Directors.
Paragraph 2, Final
sentence added The board of directors may establish by
resolution, adopted by a majority of the
whole board, an administrative committee
with the authority and responsibility to act
on behalf of the board with regard to
matters submitted to the board that,
pursuant to any statement of delegation of
authority adopted by the board from time to
time, do not constitute issues within the
sole jurisdiction of the board or any
committee thereof and are not otherwise
significant.
3.2 Election and Vacancies.
First sentence The members and chairmen of each
committee described in Section 3.4 through
--------------------------------------------
3.9 below shall be elected annually by the
---------
board of directors at its first meeting
after each annual meeting of stockholders or
at any other time the board of directors
shall determine.
3.2 Election and Vacancies.
Final sentence No officer or other employee of the
corporation shall be a member of any
committee of the board described in Section
--------------------
3.5 through 3.9 below.
---------------------
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SIGNATURE
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 hereunto duly authorized.
GENERAL MOTORS CORPORATION
--------------------------
(Registrant)
Date January 17, 2001
-----------------
By
s/Peter R. Bible
-------------------------------
(Peter R. Bible,
Chief Accounting Officer)
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