GM Releases 2023 Fourth-Quarter and Full-Year Results, and 2024 Guidance
DETROIT, Jan. 30, 2024 /PRNewswire/ -- General Motors Co. (NYSE: GM) today reported fourth-quarter 2023 revenue of $43.0 billion, net income attributable to stockholders of $2.1 billion and EBIT-adjusted of $1.8 billion.
GM reported full-year 2023 revenue of $171.8 billion, net income attributable to stockholders of $10.1 billion and EBIT-adjusted of $12.4 billion.
The chart below summarizes GM's 2023 financial guidance and 2023 results, as well as the company's 2024 guidance, which is for a year of strong financial performance.
Final 2023 Guidance 2023
Results 2024 Guidance
Net income attributable to stockholders
$9.1 billion - $9.7 billion
$10.1 billion
$9.8 billion - $11.2 billion
EBIT-adjusted
$11.7 billion - $12.7 billion
$12.4 billion
$12.0 billion - $14.0 billion
Automotive operating cash flow
$19.5 billion - $21.0 billion
$20.8 billion
$18.0 billion - $21.0 billion
Adjusted automotive free cash flow
$10.5 billion - $11.5 billion
$11.7 billion
$8.0 billion - $10.0 billion
EPS-diluted*
$6.52 - $7.02 $7.32
$8.50 - $9.50
EPS-diluted-adjusted*
$7.20 - $7.70 $7.68
$8.50 - $9.50
*2024 guidance includes an estimated $1.45 per share impact from the company's accelerated share repurchase program (initiated in November 2023) based on current share price and offset by $0.50 from a higher tax rate and lower interest income. It assumes a full-year weighted-average diluted share count slightly below 1.15 billion shares.
GM's 2024 financial guidance includes anticipated capital spending of $10.5 billion - $11.5 billion, inclusive of investments in the company's battery cell manufacturing joint ventures.
Conference Call for Investors and Analysts
GM Chair and CEO Mary Barra and GM Chief Financial Officer Paul Jacobson will host a conference call for the investment community at 8:30 a.m. ET today to discuss these results.
Conference call details are as follows:
-- 1-800-857-9821 (U.S.)
-- 1-517-308-9481 (international/caller-paid)
-- Conference call passcode: General Motors
-- An audio replay will be available on the GM Investor Relations website
in the Events section.
Visit the GM Investor Relations website to download the company's earnings deck and GM Chair and CEO Mary Barra's letter to shareholders.
Results Overview
---
Three Months Ended
$M except per share amounts December 31, December 31, Change % Change
2023 2022
Revenue $42,980 $43,108 $(128) (0.3) %
Net income attributable to stockholders $2,102 $1,999 $103 5.2 %
EBIT-adjusted $1,757 $3,799 $(2,042) (53.8) %
Net income margin 4.9 % 4.6 % 0.3 ppts 6.5 %
EBIT-adjusted margin 4.1 % 8.8 % (4.7) ppts (53.4) %
Automotive operating cash flow $4,688 $7,488 $(2,800) (37.4) %
Adjusted automotive free cash flow $1,341 $4,460 $(3,119) (69.9) %
EPS-diluted(a) $1.59 $1.39 $0.20 14.4 %
EPS-diluted-adjusted(a) $1.24 $2.12 $(0.88) (41.5) %
GMNA EBIT-adjusted $2,011 $3,654 $(1,643) (45.0) %
GMNA EBIT-adjusted margin 5.7 % 10.3 % (4.6) ppts (44.7) %
GMI EBIT-adjusted $269 $272 $(3) (1.1) %
China equity income $93 $201 $(108) (53.7) %
GM Financial EBT-adjusted $707 $775 $(68) (8.8) %
__________
(a) EPS-diluted and EPS-diluted-adjusted include a $(0.05) impact from revaluation on equity investments in the three
months ended December 31, 2023.
Years Ended
$M except per share amounts December 31, December 31, Change % Change
2023 2022
Revenue $171,842 $156,735 $15,107 9.6 %
Net income attributable to stockholders $10,127 $9,934 $193 1.9 %
EBIT-adjusted $12,357 $14,474 $(2,117) (14.6) %
Net income margin 5.9 % 6.3 % (0.4) ppts (6.3) %
EBIT-adjusted margin 7.2 % 9.2 % (2.0) ppts (21.7) %
Automotive operating cash flow $20,828 $19,094 $1,734 9.1 %
Adjusted automotive free cash flow $11,666 $10,466 $1,200 11.5 %
EPS-diluted(a) $7.32 $6.13 $1.19 19.4 %
EPS-diluted-adjusted(a) $7.68 $7.59 $0.09 1.2 %
GMNA EBIT-adjusted $12,306 $12,988 $(682) (5.3) %
GMNA EBIT-adjusted margin 8.7 % 10.1 % (1.4) ppts (13.9) %
GMI EBIT-adjusted $1,210 $1,143 $67 5.9 %
China equity income $446 $677 $(231) (34.1) %
GM Financial EBT-adjusted $2,985 $4,076 $(1,091) (26.8) %
__________
(a) EPS-diluted and EPS-diluted-adjusted include a $(0.10) and $(0.13) impact from revaluation on equity investments in the years
ended December 31, 2023 and 2022.
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in safety services and connected vehicle technology, can be found at https://www.gm.com.
Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and represent our current judgment about possible future events. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
2023 Guidance Reconciliations
The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions):
Year Ending
December 31, 2023
Net income attributable to stockholders
$ 9.1-9.7
Income tax expense 1.4-1.8
Automotive interest income, net (0.1)
Adjustments(a) 1.3
EBIT-adjusted
$ 11.7-12.7
The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to expected adjusted automotive free cash flow (dollars in billions):
Year Ending
December 31, 2023
Net automotive cash provided by operating activities
$ 19.5-21.0
Less: Capital expenditures 10.3-10.8
Adjustments(a) 1.3
Adjusted automotive free cash flow
$ 10.5-11.5
The following table reconciles expected EPS-diluted under U.S. GAAP to expected EPS-diluted-adjusted:
Year Ending
December 31, 2023
Diluted earnings per common share
$ 6.52-7.02
Adjustments(a) 0.68
EPS-diluted-adjusted
$ 7.20-7.70
________
(a) Adjustments as of September 30, 2023. Includes adjustments related to our Buick dealer strategy, voluntary separation program and GM Korea wage litigation. See our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, for full details. We do not consider the
potential future impact of adjustments on our expected financial results.
2024 Guidance Reconciliations
The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions):
Year Ending
December 31, 2024
Net income attributable to stockholders
$ 9.8-11.2
Income tax expense 2.1-2.7
Automotive interest expense, net 0.1
EBIT-adjusted(a)
$ 12.0-14.0
The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to expected adjusted automotive free cash flow (dollars in billions):
Year Ending
December 31, 2024
Net automotive cash provided by operating activities
$ 18.0-21.0
Less: Capital expenditures 10.0-11.0
Adjusted automotive free cash flow(a)
$ 8.0-10.0
__________
(a) We do not consider the potential future impact of adjustments on our
expected financial results.
General Motors Company and Subsidiaries(1)
Combining Income Statement Information
(In millions) (Unaudited)
Year Ended December 31, 2023
Year Ended December 31, 2022
Automotive Cruise GM Reclassifications/ Combined Automotive Cruise GM Reclassifications/ Combined
Financial Eliminations Financial Eliminations
Net sales and revenue
Automotive $157,667 $102
$ - $(110) $157,658 $143,974 $102
$ - $(101) $143,975
GM Financial - 14,225 (41) 14,184 12,766 (6) 12,760
Total net sales and revenue 157,667 102 14,225 (151) 171,842 143,974 102 12,766 (107) 156,735
Costs and expenses
Automotive and other cost of sales 138,254 3,088 (12) 141,330 124,317 2,576 (2) 126,892
GM Financial interest, operating and other expenses - 11,376 (2) 11,374 8,864 (2) 8,862
Automotive and other selling, general and 9,349 493 (2) 9,840 9,902 766 (1) 10,667
administrative expense
Total costs and expenses 147,603 3,581 11,376 (16) 162,544 134,219 3,342 8,864 (5) 146,421
Operating income (loss) 10,064 (3,479) 2,848 (135) 9,298 9,755 (3,240) 3,903 (102) 10,315
Automotive interest expense 928 33 (49) 911 986 5 (5) 987
Interest income and other non-operating income, net 1,345 107 (1) 86 1,537 1,282 48 (1) 103 1,432
Equity income (loss) 342 138 480 663 173 837
Income (loss) before income taxes 10,823 (3,405) 2,985 10,403 10,713 (3,197) 4,076 5 11,597
Income tax expense (benefit) 563 1,888
Net income (loss) 9,840 9,708
Net loss (income) attributable to noncontrolling interests 287 226
Net income (loss) attributable to stockholders $10,127 $9,934
Net income (loss) attributable to common stockholders $10,022 $8,915
________
1 Certain columns and rows may not add due to
rounding.
Basic and Diluted Earnings per Share
(Unaudited)
The following table summarizes basic and diluted earnings per share (in millions, except per share amounts):
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
Basic earnings per share
Net income (loss) attributable to stockholders $2,102 $1,999 $10,127 $9,934
Less: cumulative dividends on subsidiary preferred stock(a) (26) (12) (106) (1,019)
Net income (loss) attributable to common stockholders $2,076 $1,987 $10,022 $8,915
Weighted-average common shares outstanding 1,302 1,415 1,364 1,445
Basic earnings per common share $1.59 $1.40 $7.35 $6.17
Diluted earnings per share
Net income (loss) attributable to common stockholders - diluted $2,076 $1,987 $10,022 $8,915
Weighted-average common shares outstanding - diluted 1,307 1,425 1,369 1,454
Diluted earnings per common share $1.59 $1.39 $7.32 $6.13
Potentially dilutive securities(b) 23 10 23 10
__________
(a) Includes a $909 million deemed dividend related to the redemption of Cruise preferred shares from SoftBank for the year ended December 31, 2022 and an insignificant amount in participating securities income from a subsidiary in the year ended December
31, 2022 and in the three months ended December 31, 2022.
(b) Potentially dilutive securities attributable to outstanding stock options and restricted stock units (RSUs) at December 31, 2023 and 2022, were excluded from the computation of diluted EPS because the securities would have had an antidilutive effect.
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)
December 31, 2023
December 31, 2022
Automotive Cruise GM Financial Reclassifications/ Combined Automotive Cruise GM Financial Reclassifications/ Combined
Eliminations Eliminations
ASSETS
Current Assets
Cash and cash equivalents $12,228 $1,344 $5,282
$ - $18,853 $13,629 $1,519 $4,005
$ - $19,153
Marketable debt securities 7,613 7,613 10,760 1,390 12,150
Accounts and notes receivable, net(a) 11,814 1,891 (1,327) 12,378 11,910 2,114 (691) 13,333
GM Financial receivables, net - 39,246 (170) 39,076 33,811 (188) 33,623
Inventories 16,467 (6) 16,461 15,369 (2) 15,366
Other current assets(b) 1,994 466 5,205 (428) 7,238 2,009 347 4,912 (442) 6,825
Total current assets 50,115 1,809 51,624 (1,931) 101,618 53,677 3,256 44,842 (1,324) 100,451
Non-current Assets
GM Financial receivables, net(d) - 45,391 (348) 45,043 40,702 (112) 40,591
Equity in net assets of nonconsolidated affiliates 8,943 1,670 10,613 8,511 1,665 10,176
Property, net 50,104 93 124 50,321 45,011 98 140 45,248
Goodwill and intangible assets, net 2,793 715 1,354 4,862 2,877 727 1,341 4,945
Equipment on operating leases, net - 30,582 30,582 32,701 32,701
Deferred income taxes 21,722 1,723 (1,106) 22,339 20,348 1,108 (917) 20,539
Other assets(c) 6,869 215 1,140 (538) 7,686 7,995 322 1,069 9,386
Total non-current assets 90,430 2,745 79,156 (886) 171,446 84,742 2,254 76,702 (112) 163,586
Total Assets $140,546 $4,555 $130,780 $(2,817) $273,064 $138,419 $5,510 $121,544 $(1,436) $264,037
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)(a) $27,846 $185 $1,136 $(1,054) $28,114 $27,307 $146 $712 $(679) $27,486
Short-term debt and current portion of long-term debt
Automotive(a) 591 272 (435) 428 2,144 13 (198) 1,959
GM Financial - 38,540 38,540 36,819 36,819
Cruise - 6 (6) 2 (2)
Accrued liabilities(b) 21,468 590 5,741 (436) 27,364 18,662 612 6,081 (445) 24,910
Total current liabilities 49,906 1,053 45,417 (1,931) 94,445 48,113 772 43,612 (1,324) 91,173
Non-current Liabilities
Long-term debt
Automotive(c) 15,979 544 (538) 15,985 15,879 6 15,885
GM Financial - 66,788 66,788 60,036 60,036
Cruise(d) - 348 (348) 112 (112)
Postretirement benefits other than pensions 4,345 4,345 4,193 4,193
Pensions 6,673 8 6,680 5,692 6 5,698
Other liabilities 13,447 454 2,614 16,515 11,927 465 2,375 14,767
Total non-current liabilities 40,444 1,345 69,409 (886) 110,312 37,691 583 62,417 (112) 100,579
Total Liabilities 90,350 2,399 114,826 (2,817) 204,757 85,804 1,356 106,029 (1,436) 191,752
Noncontrolling interest - Cruise stock incentive awards - 118 118 357 357
Equity
Common stock, $0.01 par value 12 12 14 14
Additional paid-in capital(e) 18,866 240 1,314 (1,290) 19,130 26,313 90 1,433 (1,409) 26,428
Retained earnings 39,579 (12) 15,823 1 55,391 32,054 1,766 15,429 1 49,251
Accumulated other comprehensive loss (9,066) 1 (1,183) (10,247) (6,552) (2) (1,348) (7,901)
Total stockholders' equity 49,391 229 15,954 (1,289) 64,286 51,829 1,855 15,515 (1,407) 67,792
Noncontrolling interests(e) 805 1,809 1,289 3,903 786 1,942 1,407 4,135
Total Equity 50,196 2,038 15,954 68,189 52,615 3,797 15,515 71,927
Total Liabilities and Equity $140,546 $4,555 $130,780 $(2,817) $273,064 $138,419 $5,510 $121,544 $(1,436) $264,037
_________
(a) Eliminations primarily include GM Financial accounts and notes receivable of $0.5 billion due from Automotive; and Automotive accounts receivable of $0.8 billion primarily due from GM Financial and Cruise at December 31, 2023; and GM Financial accounts and notes receivable of
$0.5 billion due from Automotive accounts payable and Automotive accounts receivable of $0.1 billion due from GM Financial accounts payable at December 31, 2022.
(b)
Eliminations primarily related to intercompany asset transfers between Automotive and Cruise for autonomous vehicle (AV) capital.
(c)
Eliminations related to deferral agreement between Cruise and Automotive as regards to engineering and capital spending incurred by Automotive on behalf of Cruise resulting in a long-term payable for Cruise offset by a long-term receivable for Automotive.
(d)
Eliminations primarily related to intercompany loans due from Cruise to GM Financial in the year ended December 31, 2023.
(e)
Primarily reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A, B and C. The preferred stock is classified as noncontrolling interests in our consolidated balance sheets.
Combining Cash Flow Information
(In millions) (Unaudited)
Year Ended December 31, 2023
Year Ended December 31, 2022
Automotive Cruise GM Financial Reclassifications/ Combined Automotive Cruise GM Financial Reclassifications/ Combined
Eliminations Eliminations
Cash flows from operating activities
Net income (loss) $10,102 $(2,414) $2,152
$ - $9,840 $8,509 $(1,900) $3,095 $5 $9,708
Depreciation and impairment of Equipment on operating leases, net - 4,904 4,904 4,839 4,839
Depreciation, amortization and impairment charges on Property, net 6,756 188 40 6,984 6,346 55 49 6,451
Foreign currency remeasurement and transaction (gains) losses 344 5 349 173 (1) 172
Undistributed earnings of nonconsolidated affiliates, net 295 (50) 245 225 (32) 193
Pension contributions and OPEB payments (1,099) (1,100) (790) (790)
Pension and OPEB income, net 89 2 90 (1,190) 1 (1,189)
Provision (benefit) for deferred taxes (305) (991) 256 (1,041) 1,247 (1,297) 475 425
Change in other operating assets and liabilities(a) 3,376 637 846 (3,037) 1,822 2,363 1,067 (1,263) (5,144) (2,977)
Other operating activities(c) 1,272 658 (1,493) (1,601) (1,163) 2,211 243 (1,688) (1,556) (790)
Net cash provided by (used in) operating activities 20,828 (1,921) 6,662 (4,638) 20,930 19,094 (1,832) 5,476 (6,695) 16,043
Cash flows from investing activities
Expenditures for property (10,684) (63) (24) (198) (10,970) (9,007) (197) (44) 10 (9,238)
Available-for-sale marketable securities, acquisitions (3,940) (490) (4,429) (8,511) (3,326) (11,837)
Available-for-sale marketable securities, liquidations 7,443 1,902 9,345 4,565 3,506 (14) 8,057
Purchases of finance receivables(a) - (38,593) 3,214 (35,379) (39,113) 5,139 (33,974)
Principal collections and recoveries on finance receivables - 28,343 4 28,346 27,017 (129) 26,887
Purchases of leased vehicles - (13,640) (13,640) (11,949) (11,949)
Proceeds from termination of leased vehicles - 13,033 13,033 14,234 14,234
Other investing activities(b) (1,505) 536 (969) (4,544) (151) 4,633 (62)
Net cash provided by (used in) investing activities (8,686) 1,349 (10,882) 3,556 (14,663) (17,497) (17) (10,006) 9,638 (17,882)
Cash flows from financing activities
Net increase (decrease) in short-term debt (6) (150) (156) 40 333 373
Proceeds from issuance of debt (original maturities greater than three months) 24 228 50,940 (228) 50,963 2,255 99 43,557 (99) 45,813
Payments on debt (original maturities greater than three months) (1,644) (33) (43,001) 3 (44,675) (1,631) (1) (37,925) (50) (39,606)
Payments to purchase common stock (11,115) (11,115) (2,514) 14 (2,500)
Issuance (redemption) of subsidiary stock(b) - 493 (493) 2,419 (4,541) (2,121)
Dividends paid(c) (479) (1,919) 1,800 (597) (265) (58) (1,819) 1,745 (397)
Other financing activities (336) (292) (146) (774) (363) (668) (134) (13) (1,178)
Net cash provided by (used in) financing activities (13,555) 396 5,724 1,082 (6,353) (2,478) 1,791 4,014 (2,943) 383
Effect of exchange rate changes on cash, cash equivalents and restricted cash (15) 69 54 (147) 9 (138)
Net increase (decrease) in cash, cash equivalents and restricted cash (1,437) (167) 1,573 (31) (1,028) (59) (507) (1,594)
Cash, cash equivalents and restricted cash at beginning of period 13,746 1,526 6,676 21,948 14,774 1,584 7,183 23,542
Cash, cash equivalents and restricted cash at end of period $12,310 $1,359 $8,249
$ - $21,917 $13,746 $1,526 $6,676
$ - $21,948
_________
(a) Includes eliminations of $3.0 billion and $5.0 billion in the years ended December 31, 2023 and 2022 for purchases/collections of wholesale finance receivables resulting from vehicles sold by GM to dealers that have
arranged their inventory floor plan financing through GM Financial.
(b) Includes eliminations of $0.5 billion and $2.4 billion in the years ended December 31, 2023 and 2022 for Automotive investment in Cruise and reclassifications of $2.1 billion in the year ended December 31, 2022 for
purchase of Cruise preferred shares from SoftBank.
(c)
Eliminations include dividends issued by GM Financial to Automotive in the years ended December 31, 2023 and 2022.
The following tables summarize key financial information by segment (dollars in millions):
GMNA GMI Corporate Eliminations Total Cruise GM Reclassifications/ Total
Eliminations
Automotive Financial
Three Months Ended December 31, 2023
Net sales and revenue $35,231 $3,938 $96 $39,264 $25 $3,743 $(53) $42,980
Expenditures for property $3,437 $173 $3
$ - $3,613 $13 $4 $77 $3,706
Depreciation and amortization $1,602 $165 $5
$ - $1,771 $10 $1,217
$ - $2,999
Impairment charges
$ -
$ -
$ -
$ -
$ - $209
$ -
$ - $209
Equity income (loss)(a)(b) $106 $92
$ -
$ - $198
$ - $27
$ - $225
GMNA GMI Corporate Eliminations Total Cruise GM Reclassifications/ Total
Eliminations
Automotive Financial
Three Months Ended December 31, 2022
Net sales and revenue $35,471 $4,319 $44 $39,834 $25 $3,277 $(28) $43,108
Expenditures for property $2,914 $311 $10
$ - $3,235 $57 $16 $(4) $3,304
Depreciation and amortization $1,401 $124 $5
$ - $1,531 $14 $1,223
$ - $2,767
Impairment charges
$ - $1
$ -
$ - $1
$ -
$ -
$ - $1
Equity income (loss)(a) $(4) $200
$ -
$ - $197
$ - $25
$ - $222
GMNA GMI Corporate Eliminations Total Cruise GM Reclassifications/ Total
Eliminations
Automotive Financial
Year Ended December 31, 2023
Net sales and revenue $141,445 $15,949 $273 $157,667 $102 $14,225 $(151) $171,842
Expenditures for property $10,147 $522 $15
$ - $10,684 $63 $24 $198 $10,970
Depreciation and amortization $6,146 $589 $21
$ - $6,755 $38 $4,944
$ - $11,737
Impairment charges
$ -
$ -
$ -
$ -
$ - $209
$ -
$ - $209
Equity income (loss)(a)(b) $196 $440
$ -
$ - $635
$ - $138
$ - $773
GMNA GMI Corporate Eliminations Total Cruise GM Reclassifications/ Total
Eliminations
Automotive Financial
Year Ended December 31, 2022
Net sales and revenue $128,378 $15,420 $177 $143,974 $102 $12,766 $(107) $156,735
Expenditures for property $8,280 $706 $20
$ - $9,007 $197 $44 $(10) $9,238
Depreciation and amortization $5,800 $513 $21
$ - $6,335 $53 $4,888
$ - $11,276
Impairment charges $11 $1
$ -
$ - $12
$ -
$ -
$ - $12
Equity income (loss)(a) $(9) $672
$ -
$ - $663
$ - $173
$ - $837
________
(a)
Includes Automotive China equity income of $93 million and $201 million in the three months ended December 31, 2023 and 2022 and $446 million and $677 million in the years ended December 31, 2023 and 2022.
(b) Equity earnings related to Ultium Cells Holdings LLC are presented in Automotive and other cost of sales as this entity is integral to the operations of our business by providing battery cells for our electric vehicles. Equity earnings related to Ultium Cells Holdings LLC were
$102 million in the three months ended December 31, 2023 and $293 million in the year ended December 31, 2023.
General Motors Company and Subsidiaries
Supplemental Material(1
)(Unaudited)
General Motors Company (GM) uses both generally accepted accounting principles (GAAP) and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. Our non-GAAP measures include: earnings before interest and taxes (EBIT)-adjusted, presented net of noncontrolling interests; earnings before income taxes (EBT)-adjusted for our General Motors Financial Company, Inc. (GM Financial) segment; earnings per share (EPS)-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. GM's calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include, but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business conditions, and certain costs arising from legal matters. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item. Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.
EPS-diluted-adjusted (Most comparable GAAP measure: Diluted earnings per common share) EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less adjustments noted above for EBIT-adjusted and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or release of significant deferred tax asset valuation allowances.
ETR-adjusted (Most comparable GAAP measure: Effective tax rate) ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and the income tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments. When we provide an expected adjusted effective tax rate, we do not provide an expected effective tax rate because the U.S. GAAP measure may include significant adjustments that are difficult to predict.
ROIC-adjusted (Most comparable GAAP measure: Return on equity) ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and other postretirement benefits (OPEB) liabilities; and average automotive net income tax assets during the same period.
Adjusted automotive free cash flow (Most comparable GAAP measure: Net automotive cash provided by operating activities) Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. Management actions can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes.
The following table reconciles Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted and segment profit (loss) (dollars in millions):
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
Net income attributable to stockholders(a) $2,102 $1,999 $10,127 $9,934
Income tax expense (857) 580 563 1,888
Automotive interest expense 222 267 911 987
Automotive interest income (308) (215) (1,109) (460)
Adjustments
Voluntary separation program(b) 130 1,035
Buick dealer strategy(c) 131 511 569 511
Cruise restructuring(d) 478 478
GM Korea wage litigation(e) (30) (106)
India asset sales(f) (111) (111)
Cruise compensation modifications(g) 1,057
Russia exit(h) 657 657
Patent royalty matters(i) (100)
Total adjustments 598 1,168 1,865 2,125
EBIT-adjusted 1,757 3,799 12,357 14,474
Operating segments
GM North America (GMNA) 2,011 3,654 12,306 12,988
GM International (GMI) 269 272 1,210 1,143
Cruise (792) (524) (2,695) (1,890)
GM Financial(j) 707 775 2,985 4,076
Total operating segments 2,196 4,176 13,806 16,317
Corporate and eliminations(k) (439) (377) (1,448) (1,843)
EBIT-adjusted $1,757 $3,799 $12,357 $14,474
__________
(a)
Net of net loss attributable to noncontrolling interests.
(b)
These adjustments were excluded because they relate to the acceleration of attrition as part of the cost reduction program announced in January 2023, primarily in the U.S.
(c)
These adjustments were excluded because they relate to strategic activities to transition certain Buick dealers out of our dealer network as part of Buick's EV strategy.
(d) These adjustments were excluded because they relate to restructuring costs resulting from Cruise voluntarily pausing its driverless, supervised and manual AV operations in the U.S. while it examines its processes, systems and tools. The adjustments primarily consist of non-cash
restructuring charges, supplier related charges and employee separation charges.
(e)
These adjustments were excluded because they relate to the partial resolution of subcontractor matters in Korea.
(f)
These adjustments were excluded because they relate to an asset sale resulting from our strategic decision in 2020 to exit India.
(g)
This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards.
(h)
This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings.
(i)
This adjustment was excluded because it relates to the resolution of substantially all royalty matters accrued with respect to past-year vehicle sales in 2022.
(j)
GM Financial amounts represent EBT-adjusted.
(k)
GM's automotive interest income and interest expense, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporate expenditures and certain revenues and expenses that are not part of a reportable segment are recorded centrally in Corporate.
The following table reconciles diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts):
Three Months Ended
Years Ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Diluted earnings per common share $2,076 $1.59 $1,987 $1.39 $10,022 $7.32 $8,915 $6.13
Adjustments(a) 598 0.46 1,168 0.82 1,865 1.36 2,125 1.46
Tax effect on adjustments(b) (180) (0.14) (127) (0.09) (504) (0.37) (423) (0.29)
Tax adjustments(c) (870) (0.67) (870) (0.64) (482) (0.33)
Deemed dividend adjustment(d) 909 0.63
EPS-diluted-adjusted $1,624 $1.24 $3,028 $2.12 $10,513 $7.68 $11,044 $7.59
________
(a)
Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted and segment profit (loss) for adjustment details.
(b)
The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(c) In the year ended December 31, 2023, the adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable in Korea. In the year ended December 31, 2022, the adjustment consists of tax benefit related to the
release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation. These adjustments were excluded because significant impacts of valuation allowances are not considered part of our core operations.
(d)
This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the year ended December 31, 2022.
The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted (dollars in millions):
Years Ended December 31,
2023 2022
Income before Income tax Effective Income before Income tax Effective
income taxes expense tax rate income taxes expense tax rate
Effective tax rate $10,403 $563 5.4 % $11,597 $1,888 16.3 %
Adjustments(a) 1,916 504 2,221 423
Tax adjustments(b) 870 482
ETR-adjusted $12,319 $1,937 15.7 % $13,818 $2,793 20.2 %
________
(a) Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted and segment profit (loss) for adjustment details. Net income attributable to noncontrolling interests for these adjustments is included in the years ended December 31, 2023
and 2022. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(b)
Refer to the reconciliation of diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted for adjustment details.
We define return on equity (ROE) as Net income attributable to stockholders for the trailing four quarters divided by average equity for the same period. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollars in billions):
Years Ended December 31,
2023 2022
Net income attributable to stockholders $10.1 $9.9
Average equity(a) $72.0 $66.6
ROE 14.1 % 14.9 %
________
(a) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net
income attributable to stockholders.
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Years Ended December 31,
2023 2022
EBIT-adjusted(a) $12.4 $14.5
Average equity(b) $72.0 $66.6
Add: Average automotive debt and interest liabilities (excluding finance leases) 16.2 17.6
Add: Average automotive net pension & OPEB liability 8.1 9.4
Less: Average automotive net income tax asset (21.1) (21.2)
ROIC-adjusted average net assets $75.2 $72.3
ROIC-adjusted 16.4 % 20.0 %
________
(a) Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted and segment
profit (loss) for adjustment details.
(b) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT-adjusted.
The following table reconciles Net automotive cash provided by operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
Net automotive cash provided by operating activities $4,688 $7,488 $20,828 $19,094
Less: Capital expenditures (3,613) (3,235) (10,684) (9,007)
Add: Employee separation costs 53 849
Add: Buick dealer strategy 213 120 674 120
Add: Patent royalty matters 145
Add: GM Brazil indirect tax matters 57 57
Add: Russia exit 31 31
Add: GM Korea wage litigation 26
Adjusted automotive free cash flow $1,341 $4,460 $11,666 $10,466
Vehicle Sales
GM presents both wholesale and total vehicle sales data to assist in the analysis of our revenue and market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors, as well as sales to the U.S. government, and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to GM's revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the year ended December 31, 2023, 29.4% of GM's wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands):
Three Months Ended
Years Ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
GMNA 782 787 3,147 2,926
GMI 161 180 621 653
Total 943 967 3,768 3,579
Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments and daily rental car companies); and (3) certain vehicles used by dealers in their business. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on GM's percentage ownership interest in the joint venture. Certain joint venture agreements in China allow for the contractual right to report vehicle sales of non-GM trademarked vehicles by those joint ventures, which are included in the total vehicle sales we report for China. While total vehicle sales data does not correlate directly to the revenue GM recognizes during a particular period, we believe it is indicative of the underlying demand for GM's vehicles. Total vehicle sales data represents management's good faith estimate based on sales reported by GM's dealers, distributors and joint ventures; commercially available data sources such as registration and insurance data; and internal estimates and forecasts when other data is not available.
The following table summarizes industry and GM total vehicle sales and GM's related competitive position by geographic region (vehicles in thousands):
Three Months Ended
Years Ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Industry GM Market Industry GM Market Industry GM Market Industry GM Market
Share Share Share Share
North America
United States 3,987 625 15.7 % 3,723 623 16.7 % 15,981 2,595 16.2 % 14,242 2,274 16.0 %
Other 944 122 12.9 % 791 106 13.4 % 3,592 460 12.8 % 3,066 406 13.2 %
Total North America 4,931 747 15.2 % 4,514 729 16.2 % 19,573 3,055 15.6 % 17,307 2,680 15.5 %
Asia/Pacific, Middle East and Africa
China(a) 7,236 569 7.9 % 6,333 576 9.1 % 24,976 2,099 8.4 % 23,489 2,303 9.8 %
Other 5,654 166 2.9 % 5,239 124 2.4 % 21,941 576 2.6 % 20,253 505 2.5 %
Total Asia/Pacific, Middle East and Africa 12,891 735 5.7 % 11,572 699 6.0 % 46,917 2,675 5.7 % 43,741 2,808 6.4 %
South America
Brazil 679 92 13.5 % 602 88 14.6 % 2,307 328 14.2 % 2,103 291 13.8 %
Other 338 30 8.8 % 365 36 10.0 % 1,418 128 9.0 % 1,563 160 10.3 %
Total South America 1,016 121 11.9 % 967 124 12.8 % 3,725 456 12.2 % 3,666 451 12.3 %
Total in GM markets 18,838 1,604 8.5 % 17,053 1,553 9.1 % 70,215 6,186 8.8 % 64,715 5,939 9.2 %
Total Europe 3,972 1 - % 3,836 1 - % 16,384 2 - % 14,234 2 - %
Total Worldwide(b)(c) 22,810 1,605 7.0 % 20,888 1,553 7.4 % 86,600 6,188 7.1 % 78,949 5,941 7.5 %
United States
Cars 722 40 5.6 % 716 61 8.5 % 3,054 224 7.3 % 2,814 214 7.6 %
Trucks 1,034 321 31.1 % 1,086 347 31.9 % 4,249 1,303 30.7 % 3,974 1,246 31.4 %
Crossovers 2,231 264 11.8 % 1,920 215 11.2 % 8,678 1,068 12.3 % 7,454 814 10.9 %
Total United States 3,987 625 15.7 % 3,723 623 16.7 % 15,981 2,595 16.2 % 14,242 2,274 16.0 %
China(a)
SGMS 211 271 870 1,037
SGMW 358 305 1,229 1,266
Total China 7,236 569 7.9 % 6,333 576 9.1 % 24,976 2,099 8.4 % 23,489 2,303 9.8 %
__________
(a)
Includes sales by the Automotive China Joint Ventures: SAIC General Motors Sales Co., Ltd. (SGMS) and SAIC GM Wuling Automobile Co., Ltd. (SGMW).
(b) Cuba, Iran, North Korea, Sudan and Syria are subject to broad economic sanctions. Accordingly, these countries are excluded from industry sales data and
corresponding calculation of market share.
(c)
As of March 2022, GM is no longer importing vehicles or parts to Russia, Belarus and other sanctioned provinces in Ukraine.
As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles. Certain fleet transactions, particularly sales to daily rental car companies, are generally less profitable than retail sales to end customers. The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands):
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
GMNA 141 159 679 564
GMI 168 138 506 426
Total fleet sales 309 297 1,185 990
Fleet sales as a percentage of total vehicle sales 19.3 % 19.1 % 19.2 % 16.7 %
North America capacity two-shift utilization 93.1 % 99.2 % 97.1 % 98.8 %
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SOURCE General Motors Company
