GM Completes Fresh-Start Accounting


    


    
</pre>
<p><span class="xn-location">DETROIT</span>, <span class="xn-chron">April 7</span> /CNW/ -- General Motors Company announced that it had completed fresh-start accounting, and would be filing its third quarter 2009 Form 10-Q and 2009 Form 10-K with the SEC today.</p>
<p/>
<p>"We are building the foundation that will allow us to return to public ownership," said <span class="xn-person">Chris Liddell</span>, GM vice chairman and CFO.  "Completing fresh-start accounting is an important step in that process."</p>
<p/>
<p>The new company, which was formed on <span class="xn-chron">July 10, 2009</span> through the acquisition of substantially all the assets and certain liabilities of Motors Liquidation Company (formerly General Motors Corporation), had to complete the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well as determine the fair value of assets and liabilities and implement new accounting policies.</p>
<p/>
<p>The following table provides a summary of GM's financial results for the period ended <span class="xn-chron">December 31, 2009</span> under fresh-start accounting.</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                                 July 10-Dec. 31, '09
                                                 --------------------
    ($ bils)
    Global revenue                                                   $57.5
    
</pre>
<p> </p>
<p>Net income/(loss) attributed to stockholders                     $(4.3)</p>
<p> </p>
<pre>
    
    Net cash provided by operating activities                         $1.0


    
</pre>
<p>The <span class="xn-money">$4.3 billion</span> net loss includes the pre-tax impact of a <span class="xn-money">$2.6 billion</span> settlement loss related to the UAW retiree medical plan and a <span class="xn-money">$1.3 billion</span> foreign currency re-measurement loss.</p>
<p/>
<p>Going public will enable the company to invest in designing, building and selling the world's best vehicles, attract the best people and access the capital markets. One of the most important measures in establishing the foundation for going public is the company's ability to return to sustainable profitability.</p>
<p/>
<p>"As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010," said Liddell.  "We are also dedicated to delivering on our commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the U.S. Treasury and Export Development <span class="xn-location">Canada</span> loans by <span class="xn-chron">June 2010</span> at the latest."</p>
<pre>
    

    Forward-Looking Statements:

    
</pre>
<p>In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreements with the U.S. Treasury and EDC and to repay those agreements as planned; our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology and our ability to realize successful vehicle applications of new technology.</p>
<p/>
<p>GM's most recent annual report on Form 10-K will provide information about these and other factors, which we may revise or supplement in future reports to the SEC.</p>
<pre>
    


    Exhibit 1

    General Motors Company and Subsidiaries
    Supplemental Material


    
</pre>
<p>General Motors Company was formed by the <span class="xn-location">United States</span> Department of the Treasury in 2009 originally as a Delaware limited liability company, Vehicle Acquisition Holdings LLC, and subsequently converted to a Delaware corporation, NGMCO, Inc. On <span class="xn-chron">July 10, 2009</span> this company acquired substantially all of the assets and assumed certain liabilities of General Motors Corporation (363 Sale) and changed its name to General Motors Company (GM). General Motors Corporation is sometimes referred to, for the periods on or before <span class="xn-chron">July 9, 2009</span>, as Old GM. Prior to <span class="xn-chron">July 10, 2009</span> Old GM operated the business of the Company, and pursuant to the agreement with the SEC Staff, the accompanying consolidated financial statements include the financial statements and related information of Old GM as it is GM's predecessor entity solely for accounting and financial reporting purposes. On <span class="xn-chron">July 10, 2009</span> in connection with the 363 Sale, General Motors Corporation changed its name to Motors Liquidation Company (MLC). MLC continues to exist as a distinct legal entity for the sole purpose of liquidating its remaining assets and liabilities.</p>
<p/>
<p>The accompanying tables and charts for securities analysts include earnings before interest and taxes (EBIT), which is not prepared in accordance with Accounting Principles Generally Accepted in the <span class="xn-location">United States</span> of America (GAAP) and has not been audited or reviewed by GM's independent auditors. EBIT is therefore considered a non-GAAP financial measure. The accompanying charts for securities analysts also contain a reconciliation from EBIT to its most comparable GAAP financial measure.</p>
<p/>
<p>Management believes EBIT provides meaningful supplemental information regarding GM's operating results because it excludes amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether GM's plan to return to profitability is on target. Accordingly, GM believes EBIT is useful in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.</p>
<p/>
<p>GM is filing an Annual Report on Form 10-K for the year ended <span class="xn-chron">December 31, 2009</span>, a Quarterly Report on Form 10-Q for the quarter ended <span class="xn-chron">September 30, 2009</span> and a Registration Statement on Form 10 pursuant to an agreement with the SEC Staff, as described in a no-action letter issued to Old GM by the SEC Staff on <span class="xn-chron">July 9, 2009</span> regarding GM's filing requirements and those of MLC.</p>
<p/>
<p>Certain prior period amounts have been reclassified in the consolidated statements of operations to conform to the current period presentation, primarily due to the adoption of ASC 810-10, "Consolidation" and ASC 470-20, "Debt with Conversions and Other Options," which have retrospective application.</p>
<p/>
<p>In the year ended 2009 certain data such as vehicle sales, market share data and production volume combine GM's data in the period <span class="xn-chron">July 10, 2009</span> through <span class="xn-chron">December 31, 2009</span> with Old GM's data in the period <span class="xn-chron">January 1, 2009</span> through <span class="xn-chron">July 9, 2009</span> for comparative purposes.</p>
<p/>
<p> </p>
<pre>
    
                      General Motors Company and Subsidiaries
                               Supplemental Material
    
</pre>
<p> </p>
<p>                                (Unaudited)</p>
<p> </p>
<pre>
    
                          Three Months Ended             Year Ended
                          ------------------             ----------
                             December 31,               December 31,
                             ------------               ------------
                             2009        2008         2009         2008
                             ----        ----         ----         ----
     Worldwide Production
      Volume(a)(b)(c)                  (Units in thousands)
                                      --------------------
      GMNA - Cars             235         365          727        1,543
      GMNA - Trucks           381         450        1,186        1,906
                              ---         ---        -----        -----
      Total GMNA              616         815        1,913        3,449
      GMIO                  1,040         619        3,456        3,145
      GME                     266         214        1,134        1,550
                              ---         ---        -----        -----
      Total Worldwide       1,922       1,648        6,503        8,144
                            =====       =====        =====        =====
    
</pre>
<p> </p>
<pre>
    
    (a) Production volume represents the number of vehicles manufactured
    by GM's and Old GM's assembly facilities and also includes vehicles
    produced by certain joint ventures.
    (b) Includes SGM, SGMW and FAW-GM joint venture production.
    Ownership of 50% in SGM, 34% in SGMW and 50% in FAW-GM, under the
    joint venture agreements, allows for significant rights as a member
    as well as the contractual right to report SGMW and FAW-GM
    production volume in China. These entities are not consolidated for
    financial reporting purposes. Income and losses related to these
    entities are recorded in Equity income, net of tax.
    (c) Production data may include rounding differences.


    
</pre>
<p> </p>
<pre>
    
                      General Motors Company and Subsidiaries
                               Supplemental Material
    
</pre>
<p> </p>
<p>                                (Unaudited)</p>
<p> </p>
<pre>
    
                                 Three Months Ended      Year Ended
                                 ------------------      ----------
                                    December 31,        December 31,
                                    ------------        ------------
                                    2009        2008  2009         2008
                                    ----        ----  ----         ----
     Vehicle Unit
      Deliveries(a)(b)(c)
      United States
        Chevrolet - Cars             133         132   546          715
        Chevrolet - Trucks           219         209   799        1,086
        Cadillac                      36          32   109          161
        Buick                         30          24   102          137
        GMC                           78          71   260          377
        Other Non-Core Divisions      42          80   269          504
                                     ---         ---   ---          ---
      Total United States            538         547 2,084        2,981
      Canada, Mexico and Other       100         127   400          585
                                     ---         ---   ---          ---
      Total GMNA(d)                  637         675 2,485        3,565
                                     ---         --- -----        -----
      GMIO
        Chevrolet                    427         310 1,491        1,456
        Buick                        134          69   448          281
        GM Daewoo                     41          19   121          121
        Holden                        36          32   126          140
        Wuling                       247         149 1,001          606
        FAW-GM                        26           -    35            -
        Other                         26          29   104          150
                                     ---         ---   ---          ---
      Total GMIO(e)                  937         608 3,326        2,754
                                     ---         --- -----        -----
      GME
        Opal/Vauxhall                265         284 1,209        1,458
        Chevrolet                    107         121   426          510
        Saab                           5          13    27           66
        Other                          1           1     5            8
                                     ---         ---   ---          ---
      Total GME(e)                   378         419 1,667        2,043
                                     ---         --- -----        -----
      Total Worldwide              1,952       1,702 7,478        8,362
                                   =====       ===== =====        =====
    
</pre>
<p> </p>
<pre>
    
    (a) Includes HUMMER, Saab, Saturn and Pontiac vehicle sales data.
    (b) Includes SGM, SGMW and FAW-GM joint venture sales. Ownership of
    50% in SGM, 34% in SGMW and 50% in FAW-GM, under the joint venture
    agreements, allows for significant rights as a member as well as the
    contractual right to report SGMW and FAW-GM joint venture vehicle
    sales in China as part of global market share. These entities are
    not consolidated for financial reporting purposes. Income and losses
    related to these entities are recorded in Equity income, net of tax.
    (c) Vehicle sales data may include rounding differences.
    (d) Vehicle sales represent sales to the ultimate customer.
    (e) Vehicle sales primarily represent estimated sales to the ultimate
    customer.


    
</pre>
<p> </p>
<pre>
    
                      General Motors Company and Subsidiaries
                               Supplemental Material
    
</pre>
<p> </p>
<p>                                (Unaudited)</p>
<p> </p>
<pre>
    
                                  Three Months Ended      Year Ended
                                  ------------------      ----------
                                     December 31,        December 31,
                                     ------------        ------------
     Market Share(a)(b)              2009        2008  2009         2008
                                     ----        ----  ----         ----
      United States - Cars           15.5%       18.2% 16.3%        18.6%
      United States - Trucks         24.5%       24.5% 23.1%        25.5%
      Total United States            20.2%       21.5% 19.6%        22.1%
      Total GMNA(c)                  19.3%       21.0% 19.0%        21.5%
      Total GMIO(d)                  10.4%        9.6% 10.3%         9.6%
      Total GME(d)                    8.3%        9.2%  8.9%         9.3%
      Total Worldwide                11.6%       12.0% 11.6%        12.4%
    
</pre>
<p> </p>
<pre>
    
     U.S. Retail/Fleet Mix
      % Fleet Sales - Cars           34.6%       45.6% 29.0%        34.8%
      % Fleet Sales - Trucks         20.5%       23.2% 21.6%        22.4%
      Total Vehicles                 25.8%       32.2% 24.7%        27.6%
    
</pre>
<p> </p>
<p> GMNA Capacity Utilization(e)    61.5%       72.1% 48.0%        74.7%</p>
<p> </p>
<pre>
    
    (a) Includes HUMMER, Saab, Saturn and Pontiac vehicle sales data.
    (b) Includes SGM, SGMW and FAW-GM joint venture sales. Ownership of
    50% in SGM, 34% in SGMW and 50% in FAW-GM, under the joint venture
    agreements, allows for significant rights as a member as well as the
    contractual right to report SGMW and FAW-GM joint venture vehicle
    sales in China as part of global market share. These entities are
    not consolidated for financial reporting purposes. Income and losses
    related to these entities are recorded in Equity income, net of tax.
    (c) Vehicle sales represent sales to the ultimate customer.
    (d) Vehicle sales primarily represent estimated sales to the ultimate
    customer.
    (e) Two shift rated, annualized.


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                        Successor  Predecessor
                                        ---------  -----------
                                         December    December
                                            31,         31,
                                        ---------   ---------
                                              2009        2008
                                              ----        ----
     Worldwide Employment (thousands)
      GMNA(a)                                  102         116
      GMIO                                      61          70
      GME                                       53          55
      Corporate                                  1           2
                                               ---         ---
      Total Worldwide                          217         243
                                               ===         ===
    
</pre>
<p> </p>
<pre>
    
      United States - Salaried(a)(b)(d)         26          29
      United States - Hourly(a)(c)              51          62
    
</pre>
<p> </p>
<pre>
    
    (a) Includes additional 11,000 employees due to the acquisition of
    Nexteer, of which 2,000 are U.S. salaried employees, 5,000 are U.S.
    hourly employees and 4,000 are employees located outside the U.S.
    (b) 5,000 U.S. salaried employees irrevocably accepted the 2009
    Salaried Window Program (a voluntary program, subject to management
    approval, to reduce salaried headcount based on individual
    eligibility and employees elections made) option or the GM severance
    program option.
    (c) 13,000 U.S. hourly employees elected to participate in Old GM's
    2009 Special Attrition Programs, which were introduced in February
    and June of 2009 and offered cash and other incentives for
    individuals who elected to retire or voluntarily terminate
    employment.
    (d) Includes employees in GMNA and Corporate.


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                           Successor                   Predecessor
                           ---------                   -----------
                         July 10, 2009    January 1, 2009     Twelve Months
                            Through           Through             Ended
                       December 31, 2009    July 9, 2009   December 31, 2008
                       -----------------    ------------   -----------------
     Worldwide Payroll
      (billions)                     $6.2            $6.2               $16.8


    
</pre>
<p> </p>
<pre>
    
     General Motors Company and Subsidiaries
      Consolidated Statements of Operations
    
</pre>
<p> </p>
<pre>
    
              (Dollars in millions)
                   (Unaudited)
    
</pre>
<p> </p>
<pre>
    
                        Successor         Predecessor
                        ---------         -----------
                         July 10,    January 1,
                           2009         2009        Year
                         Through      Through       Ended
                         December      July 9,    December
                          31,2009       2009      31, 2008
                        ---------     --------    ---------
    Net sales
     and
     revenue
      Sales                $57,329      $46,787    $147,732
      Other
       revenue                 145          328       1,247
                               ---          ---       -----
      Total net
       sales
       and
       revenue              57,474       47,115     148,979
                            ------       ------     -------
    Costs and
     expenses
      Cost of
       sales                56,381       55,814     149,257
      Selling,
       general
       and
       administrative
       expense               6,006        6,161      14,253
      Other
       expenses,
       net                      15        1,235       6,699
                               ---        -----       -----
      Total
       costs
       and
       expenses             62,402       63,210     170,209
                            ------       ------     -------
       Operating
        loss                (4,928)     (16,095)    (21,230)
    Equity in
     income
     (loss)
     of and
     disposition
     of
     interest
     in GMAC                     -        1,380      (6,183)
    Interest
     expense                  (694)      (5,428)     (2,525)
    Interest
     income
     and
     other
     non-
     operating
     income,
     net                       440          852         424
    Gain
     (loss)
     on
     extinguishment
     of debt                  (101)      (1,088)         43
     Reorganization
     gains,
     net                         -      128,155           -
                               ---      -------         ---
    Income
     (loss)
     before
     income
     taxes
     and
     equity
     income                 (5,283)     107,776     (29,471)
    Income
     tax
     expense
     (benefit)              (1,000)      (1,166)      1,766
    Equity
     income,
     net of
     tax                       497           61         186
                               ---          ---         ---
    Net
     income
     (loss)                 (3,786)     109,003     (31,051)
    Less: Net
     (income)
     loss
     attributable
     to
     noncontrolling
     interests                (511)         115         108
                              ----          ---         ---
    Net
     income
     (loss)
     attributable
     to
     stockholders           (4,297)     109,118     (30,943)
    Less:
     Cumulative
     dividends
     on
     preferred
     stock                     131            -           -
                               ---          ---         ---
    Net
     income
     (loss)
     attributable
     to
     common
     stockholders          $(4,428)    $109,118    $(30,943)
                           =======     ========    ========
    Earnings
     (loss)
     per
     share
    Basic
      Income
       (loss)
       attributable
       to
       common
       stockholders        $(10.73)     $178.63     $(53.47)
      Weighted-
       average
       common
       shares
       outstanding             413          611         579
    Diluted
      Income
       (loss)
       attributable
       to
       common
       stockholders        $(10.73)     $178.55     $(53.47)
      Weighted-
       average
       common
       shares
       outstanding             413          611         579
    
</pre>
<p> </p>
<pre>
    
    Cash
     dividends
     per
     common
     share                      $-           $-       $0.50
    
</pre>
<p> </p>
<pre>
    
    Amounts
     attributable
     to
     common
     stockholders:
      Income
       (loss)
       of tax              $(4,428)    $109,118    $(30,943)


    
</pre>
<p> </p>
<pre>
    
                      General Motors Company and Subsidiaries
                            Consolidated Balance Sheets
    
</pre>
<p> </p>
<pre>
    
                        (In millions, except share amounts)
                                    (Unaudited)
    
</pre>
<p> </p>
<pre>
    
                                                   Successor   Predecessor
                                                   ---------   -----------
                                                    December     December
                                                       31,          31,
                           ASSETS                        2009         2008
                                                         ----         ----
    Current Assets
      Cash and cash equivalents                       $22,679      $14,053
      Marketable securities                               134          141
                                                          ---          ---
      Total cash, cash equivalents and marketable
       securities                                      22,813       14,194
      Restricted cash                                  13,917          672
      Accounts and notes receivable (net of
       allowance of $250 and $422)                      7,518        7,918
      Inventories                                      10,107       13,195
      Assets held for sale                                388            -
      Equipment on operating leases, net                2,727        5,142
      Other current assets and deferred income
       taxes                                            1,777        3,146
                                                        -----        -----
      Total current assets                             59,247       44,267
    Non-Current Assets
      Restricted cash                                   1,489        1,917
      Equity in net assets of nonconsolidated
       affiliates                                       7,936        2,146
      Assets held for sale                                530            -
      Equipment on operating leases, net                    3          442
      Property, net                                    18,687       39,665
      Goodwill                                         30,672            -
      Intangible assets, net                           14,547          265
      Deferred income taxes                               564           98
      Prepaid pension                                      98          109
      Other assets                                      2,522        2,130
                                                        -----        -----
      Total non-current assets                         77,048       46,772
                                                       ------       ------
    Total Assets                                     $136,295      $91,039
                                                     ========      =======
              LIABILITIES AND EQUITY (DEFICIT)
    Current Liabilities
      Accounts payable (principally trade)            $18,725      $22,259
      Short-term debt and current portion of
       long-term debt                                  10,221       16,920
      Liabilities held for sale                           355            -
      Postretirement benefits other than pensions         846        4,002
      Accrued expenses                                 22,288       32,427
                                                       ------       ------
      Total current liabilities                        52,435       75,608
    Non-Current Liabilities
      Long-term debt                                    5,562       29,018
      Liabilities held for sale                           270            -
      Postretirement benefits other than pensions       8,708       28,919
      Pensions                                         27,086       25,178
      Other liabilities and deferred income taxes      13,279       17,392
                                                       ------       ------
      Total non-current liabilities                    54,905      100,507
                                                       ------      -------
    Total liabilities                                 107,340      176,115
    Commitments and contingencies
      Preferred stock, $0.01 par value
       (1,000,000,000 shares authorized and
       360,000,000 shares issued and outstanding
       at December 31, 2009)                            6,998            -
    Equity (Deficit)
    Old GM
      Preferred stock, no par value (6,000,000
       shares authorized, no shares issued and
       outstanding)                                         -            -
      Preference stock, $0.10 par value
       (100,000,000 shares authorized, no shares
       issued and outstanding)                              -            -
       Common stock, $1 2/3 par value common stock
        (2,000,000,000 shares authorized,
        800,937,541 shares issued and 610,483,231
        shares outstanding at December 31, 2008)            -        1,017
    General Motors Company
       Common stock, $0.01 par value
        (2,500,000,000 shares authorized and
        500,000,000 shares issued and outstanding
        at December 31, 2009)                               5            -
    Capital surplus (principally additional
     paid-in capital)                                  24,050       16,489
    Accumulated deficit                                (4,394)     (70,727)
    Accumulated other comprehensive income
     (loss)                                             1,588      (32,339)
                                                        -----      -------
    Total stockholders' equity (deficit)               21,249      (85,560)
    Noncontrolling interests                              708          484
                                                          ---          ---
    Total equity (deficit)                             21,957      (85,076)
                                                       ------      -------
    Total Liabilities and Equity (Deficit)           $136,295      $91,039
                                                     ========      =======


    
</pre>
<p> </p>
<pre>
    
                      General Motors Company and Subsidiaries
                               Supplemental Material
    
</pre>
<p> </p>
<p>                                (Unaudited)</p>
<p> </p>
<p> </p>
<p>Old GM</p>
<p> </p>
<p><span class="xn-chron">January 1, 2009</span> Through <span class="xn-chron">July 9, 2009</span></p>
<p> </p>
<pre>
    
    In the period January 1, 2009 through July 9, 2009, Old GM recorded
    the following Reorganization gains, net, arising from the 363 Sale
    and fresh-start reporting:
    
</pre>
<p> </p>
<pre>
    
                                                              Predecessor
                                                              -----------
                                                               January 1,
                                                                  2009
                                                              -----------
                                                                Through
                                                                -------
                                                                 July 9,
                                                                  2009
                                                                --------
    Change in net assets resulting from the application of
     fresh-start reporting                                        $33,829
      Fair value of New GM's Series A Preferred Stock, common
       shares and warrants issued in 363 Sale                      20,532
    Gain from the conversion of debt owed to UST to equity         31,561
    Gain from the conversion of debt owed to EDC to equity          5,964
    Gain from the modification and measurement of GM's VEBA
     obligation                                                     7,731
    Gain from the modification and measurement of other
     employee benefit plans                                         4,585
    Gain from the settlement of net liabilities retained by
     MLC via the 363 Sale                                          25,177
    Income tax benefit for release of valuation allowances
     and other tax adjustments                                        710
    Other 363 Sale adjustments                                        (21)
    Amount recorded in Income tax benefit                            (710)
    Other losses, net                                              (1,203)
                                                                   ------
    Total Reorganization gains, net                              $128,155
                                                                 ========




    

For further information: For further information: Renee Rashid-Merem, Office: +1-313-665-3128, Cell: +1-313-701-8560, renee.rashid-merem@gm.com, or Randy Arickx, Office: +1-313-667-0006, Cell: +1-313-268-7070, randy.c.arickx@gm.com Web Site: http://media.gm.com

Organization Profile

General Motors

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890