Form 8-K General Motors Co For: Oct 27

October 27, 2021 9:15 AM EDT

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For release: Wednesday, Oct. 27, 2021, at 7:30 a.m. ET GM Reports Third-Quarter 2021 Results DETROIT – General Motors Co. (NYSE: GM) today reported third-quarter earnings that include strong price and mix performance in North America, the benefit of the company’s recall cost recovery agreement with LG Electronics and the continued strong financial results at GM Financial. As a result, the company is on track to deliver full-year 2021 EBIT-adjusted earnings approaching the high end of its guidance range. Downloads • GM Chair and CEO Mary Barra's letter to shareholders • Detailed quarterly results with year-over-year comparisons Results overview Three Months Ended ($M) except where noted September 30, 2021 September 30, 2020 Change Revenue $ 26,779 $ 35,480 $ (8,701) Net income attributable to stockholders $ 2,420 $ 4,045 $ (1,625) EBIT-adjusted $ 2,922 $ 5,284 $ (2,362) Net income margin 9.0 % 11.4 % (2.4) ppts EBIT-adjusted margin 10.9 % 14.9 % (4.0) ppts Automotive operating cash flow $ (2,602) $ 9,935 $ (12,537) Adjusted automotive free cash flow $ (4,385) $ 9,122 $ (13,507) EPS-diluted(a) $ 1.62 $ 2.78 $ (1.16) EPS-diluted-adjusted(a) $ 1.52 $ 2.83 $ (1.31) GMNA EBIT-adjusted $ 2,125 $ 4,366 $ (2,241) GMNA EBIT-adjusted margin 10.3 % 15.0 % (4.7) ppts GMI EBIT-adjusted $ 229 $ 10 $ 219 China equity income $ 270 $ 262 $ 8 GM Financial EBT-adjusted $ 1,093 $ 1,207 $ (114) __________ (a) EPS-diluted and EPS-diluted-adjusted include a $0.07 and $0.05 impact from mark-to-market gains on equity method investments in the three months ended Sept. 30, 2021 and 2020. Exhibit 99.1


 
Nine Months Ended ($M) except where noted September 30, 2021 September 30, 2020 Change Revenue $ 93,420 $ 84,967 $ 8,453 Net income attributable to stockholders $ 8,278 $ 3,581 $ 4,697 EBIT-adjusted $ 11,456 $ 5,998 $ 5,458 Net income margin 8.9 % 4.2 % 4.7 ppts EBIT-adjusted margin 12.3 % 7.1 % 5.2 ppts Automotive operating cash flow $ 309 $ 2,276 $ (1,967) Adjusted automotive free cash flow $ (3,839) $ (823) $ (3,016) EPS-diluted(a) $ 5.55 $ 2.40 $ 3.15 EPS-diluted-adjusted(a) $ 5.73 $ 2.96 $ 2.77 GMNA EBIT-adjusted $ 8,153 $ 6,459 $ 1,694 GMNA EBIT-adjusted margin 11.0 % 9.7 % 1.3 ppts GMI EBIT-adjusted $ 552 $ (811) $ 1,363 China equity income $ 854 $ 264 $ 590 GM Financial EBT-adjusted $ 3,856 $ 1,663 $ 2,193 __________ (a) EPS-diluted and EPS-diluted-adjusted include a $0.27 and $(0.15) impact from mark-to-market gains on equity method investments in the nine months ended Sept. 30, 2021 and 2020. 2021 guidance • Full-year EPS-diluted of between $5.52 and $6.52, and EPS-diluted-adjusted of between $5.70 and $6.70 • Full-year net income of between $8.1 billion and $9.6 billion, and EBIT-adjusted of between $11.5 billion and $13.5 billion See below for reconciliations of non-GAAP measures to their most directly comparable GAAP measures or visit the GM Investor Relations website for complete details. Conference call for investors and analysts Mary Barra and Chief Financial Officer Paul Jacobson will host a conference call for investors and analysts at 10 a.m. ET today to discuss these results and the company’s growth strategy. Introductory remarks will be followed by a question-and-answer session. Those who wish to listen to the call may dial in using the following numbers:


 
• United States: 1-888-808-8618 • International: +1-949-484-0645 • Name of call: GM Earnings Call 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 powers 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 vehicle safety and security services, can be found at https://www.gm.com. ### CONTACTS: Jim Cain GM Communications 313-407-2843 james.cain@chevrolet.com Michael Heifler GM Investor Relations 313-418-0220 michael.heifler@gm.com Lauren Langille GM Communications 931-398-8191 lauren.langille@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. Forward-looking statements represent our current judgement about possible future events and are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. 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 judgements 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.


 
Non-GAAP Reconciliations The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted (dollars in millions): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net income (loss) attributable to stockholders(a) $ 2,420 $ 4,045 $ 8,278 $ 3,581 Income tax expense (benefit) 152 887 2,300 1,132 Automotive interest expense 230 327 723 823 Automotive interest income (38) (51) (102) (195) Adjustments Cadillac dealer strategy(b) 158 — 175 — GMI restructuring(c) — 76 — 657 GM Korea wage litigation(d) — — 82 — Total adjustments 158 76 257 657 EBIT (loss)-adjusted $ 2,922 $ 5,284 $ 11,456 $ 5,998 __________ (a) Net of net loss attributable to noncontrolling interest. (b) These adjustments were excluded because they relate to strategic activities to transition certain Cadillac dealers from the network as part of Cadillac's electric vehicle strategy. (c) These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. These adjustments primarily consist of supplier claims in the three months ended Sept. 30, 2020 and dealer restructurings, asset impairments, inventory provisions, employee separation charges and sales allowances in the nine months ended Sept. 30, 2020 in Australia, New Zealand and Thailand. (d) This adjustment was excluded because of the unique events associated with recent Supreme Court of Korea decisions related to our salaried workers.


 
The following table reconciles diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Amount Per Share Amount Per Share Amount Per Share Amount Per Share Diluted earnings (loss) per common share $ 2,375 $ 1.62 $ 4,005 $ 2.78 $ 8,141 $ 5.55 $ 3,446 $ 2.40 Adjustments(a) 158 0.11 76 0.05 257 0.18 657 0.46 Tax effect on adjustment(b) (39) (0.03) (14) — (43) (0.03) (82) (0.06) Tax adjustment(c) (271) (0.18) — — 45 0.03 236 0.16 EPS-diluted-adjusted $ 2,223 $ 1.52 $ 4,067 $ 2.83 $ 8,400 $ 5.73 $ 4,257 $ 2.96 __________ (a) Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted 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) These adjustments consist of tax benefit related to a deduction for an investment in a subsidiary in the three months ended Sept. 30, 2021 and tax expense related to the establishment of a valuation allowance against Cruise deferred tax assets in the nine months ended Sept. 30, 2021, and tax expense related to the establishment of a valuation allowance against deferred tax assets that are considered no longer realizable for GM in Australia and New Zealand for the nine months ended Sept. 30, 2020. The following table reconciles net automotive cash provided by (used in) operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net automotive cash provided by (used in) operating activities $ (2,602) $ 9,935 $ 309 $ 2,276 Less: Capital expenditures (1,829) (980) (4,235) (3,292) Add: Cadillac Dealer Transition 27 — 44 — Add: GMI restructuring — 167 24 251 Add: GM Korea Wage Litigation 19 — 19 — Less: GM Brazil indirect tax recoveries — — — (58) Adjusted automotive free cash flow $ (4,385) $ 9,122 $ (3,839) $ (823)


 
Guidance Reconciliations The following table reconciles expected Net income (loss) attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2021 Net income attributable to stockholders $ 8.1-9.6 Income tax expense 2.3-2.8 Automotive interest expense, net 0.8 Adjustments(a) 0.3 EBIT-adjusted(b) $ 11.5-13.5 __________ (a) Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted for adjustment details. (b) We do not consider the potential future impact of adjustments on our expected financial results. The following table reconciles expected EPS-diluted under U.S. GAAP to expected EPS-diluted-adjusted: Year Ending December 31, 2021 Diluted earnings per common share $ 5.52-6.52 Adjustments(a) 0.18 EPS-diluted-adjusted(b) $ 5.70-6.70 __________ (a) Refer to the reconciliation of diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted for adjustment details. (b) We do not consider the potential future impact of adjustments on our expected financial results.


 
Exhibit 99.2

General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
General Motors Company's (GM) 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 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; costs arising from the ignition switch recall and related legal matters; and certain currency devaluations associated with hyperinflationary economies. 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 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 reversal of significant deferred tax asset valuation allowances.

ETR-adjusted 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 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 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.


1




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to segment profit (loss) (dollars in millions):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net income (loss) attributable to stockholders(a)$2,420 $4,045 $8,278 $3,581 
Income tax expense (benefit)152 887 2,300 1,132 
Automotive interest expense230 327 723 823 
Automotive interest income (38)(51)(102)(195)
Adjustments
Cadillac dealer strategy(b)158 — 175 — 
GMI restructuring(c)— 76 — 657 
GM Korea wage litigation(d)— — 82 — 
Total adjustments158 76 257 657 
EBIT(loss)-adjusted2,922 5,284 11,456 5,998 
Operating segments
GM North America (GMNA)2,125 4,366 8,153 6,459 
GM International (GMI)229 10 552 (811)
Cruise (286)(204)(847)(627)
GM Financial(e)1,093 1,207 3,856 1,663 
Total operating segments3,161 5,379 11,714 6,684 
Corporate and eliminations(f)(239)(95)(258)(686)
EBIT(loss)-adjusted$2,922 $5,284 $11,456 $5,998 
__________
(a)Net of net loss attributable to noncontrolling interests.
(b)These adjustments were excluded because they relate to strategic activities to transition certain Cadillac dealers from the network as part of Cadillac's electric vehicle strategy.
(c)These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. These adjustments primarily consist of supplier claims in the three months ended September 30, 2020 and dealer restructurings, asset impairments, inventory provisions, employee separation charges and sales allowances in the nine months ended September 30, 2020 in Australia, New Zealand and Thailand.
(d)This adjustment was excluded because of the unique events associated with recent Supreme Court of Korea decisions related to our salaried workers.
(e)GM Financial amounts represent EBT-adjusted.
(f)GM's automotive interest income and interest expense, legacy costs from the Opel and Vauxhall businesses and certain other assets in Europe, which are primarily pension costs, corporate expenditures and certain nonsegment-specific revenues and expenses are recorded centrally in Corporate.






2




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted (dollars in millions):
Three Months Ended
September 30,June 30,March 31,December 31,
20212020202120202021202020202019
Net income (loss) attributable to stockholders$2,420 $4,045 $2,836 $(758)$3,022 $294 $2,846 $(194)
Income tax expense (benefit)152 887 971 (112)1,177 357 642 (163)
Automotive interest expense230 327 243 303 250 193 275 200 
Automotive interest income(38)(51)(32)(61)(32)(83)(46)(96)
Adjustments
Cadillac dealer strategy(a)158 — 17 — — — 99 — 
GMI restructuring(b)— 76 — 92 — 489 26 — 
GM Korea Wage Litigation(c)— — 82 — — — — — 
Ignition switch recall and related legal matters(d)— — — — — — (130)— 
Transformation activities(e)— — — — — — — 194 
FAW-GM divestiture(f)— — — — — — — 164 
Total adjustments158 76 99 92 — 489 (5)358 
EBIT (loss)-adjusted$2,922 $5,284 $4,117 $(536)$4,417 $1,250 $3,712 $105 
________
(a)These adjustments were excluded because they relate to strategic activities to transition certain Cadillac dealers from the network as part of Cadillac's electric vehicle strategy.
(b)These adjustments were excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international markets to focus resources on opportunities expected to deliver higher returns. These adjustments primarily consist of supplier claims in the three months ended September 30, 2020, inventory provisions in the three months ended June 30, 2020, asset impairments, dealer restructurings, employee separation charges and sales allowances in Australia, New Zealand and Thailand in the three months ended March 31, 2020, and employee separation charges in the three months ended December 31, 2020.
(c)This adjustment was excluded because of the unique events associated with recent Supreme Court of Korea decisions related to our salaried workers.
(d)This adjustment was excluded because of the unique events associated with the ignition switch recall, which included various investigations, inquiries and complaints from constituents.
(e)This adjustment was excluded because of a strategic decision to accelerate our transformation for the future to strengthen our core business, capitalize on the future of personal mobility and drive significant cost efficiencies. The adjustments primarily consist of accelerated depreciation and employee separation charges in the three months ended December 31, 2019.
(f)This adjustment was excluded because we divested our joint venture FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM), as a result of a strategic decision by both shareholders, allowing us to focus our resources on opportunities expected to deliver higher returns.

























3




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
Diluted earnings per common share$2,375 $1.62 $4,005 $2.78 $8,141 $5.55 $3,446 $2.40 
Adjustments(a)158 0.11 76 0.05 257 0.18 657 0.46 
Tax effect on adjustment(b)(39)(0.03)(14)— (43)(0.03)(82)(0.06)
Tax adjustment(c)(271)(0.18)— — 45 0.03 236 0.16 
EPS-diluted-adjusted$2,223 $1.52 $4,067 $2.83 $8,400 $5.73 $4,257 $2.96 
________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to 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)These adjustments consist of tax benefit related to a deduction for an investment in a subsidiary in the three months ended September 30, 2021 and tax expense related to the establishment of a valuation allowance against Cruise deferred tax assets in the nine months ended September 30, 2021, and tax expense related to the establishment of a valuation allowance against deferred tax assets that are considered no longer realizable for GM in Australia and New Zealand for the nine months ended September 30, 2020.

The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted (dollars in millions):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Income before income taxesIncome tax expenseEffective tax rateIncome before income taxesIncome tax expenseEffective tax rateIncome before income taxesIncome tax expenseEffective tax rateIncome before income taxesIncome tax expenseEffective tax rate
Effective tax rate$2,538 $152 6.0 %$4,905 $887 18.1 %$10,479 $2,300 21.9 %$4,656 $1,132 24.3 %
Adjustments(a)158 39 76 14 282 43 657 82 
Tax adjustment(b)271 (45)(236)
ETR-adjusted$2,696 $462 17.1 %$4,981 $901 18.1 %$10,761 $2,298 21.4 %$5,313 $978 18.4 %
________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to segment profit (loss) for adjustment details. These adjustments include Net income attributable to noncontrolling interests where applicable. 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 within the previous section for adjustment details.

We define return on equity (ROE) as Net income (loss) 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):
Four Quarters Ended
September 30, 2021September 30, 2020
Net income (loss) attributable to stockholders$11.1 $3.4 
Average equity(a)$52.4 $42.5 
ROE21.2 %8.0 %
________
(a)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income (loss) attributable to stockholders.






4




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Four Quarters Ended
September 30, 2021September 30, 2020
EBIT (loss)-adjusted(a)$15.2 $6.1 
Average equity(b)$52.4 $42.5 
Add: Average automotive debt and interest liabilities (excluding finance leases)17.3 27.0 
Add: Average automotive net pension & OPEB liability17.7 17.4 
Less: Average automotive and other net income tax asset(22.8)(24.1)
ROIC-adjusted average net assets$64.6 $62.8 
ROIC-adjusted23.5 %9.7 %
________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted for adjustment details.
(b)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT (loss)-adjusted.


5




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table reconciles Net automotive cash provided by (used in) operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net automotive cash provided by (used in) operating activities$(2,602)$9,935 $309 $2,276 
Less: Capital expenditures(1,829)(980)(4,235)(3,292)
Add: Cadillac dealer strategy27 — 44 — 
Add: GMI restructuring— 167 24 251 
Add: GM Korea Wage Litigation19 — 19 — 
Less: GM Brazil indirect tax recoveries— — — (58)
Adjusted automotive free cash flow$(4,385)$9,122 $(3,839)$(823)

The following tables summarize key financial information by segment (dollars in millions):
GMNAGMICorporateEliminationsTotal
Automotive
CruiseGM
Financial
Reclassifications/EliminationsTotal
Three Months Ended September 30, 2021
Net sales and revenue$20,554 $2,843 $27 $23,424 $26 $3,354 $(25)$26,779 
Expenditures for property$1,684 $142 $$— $1,829 $23 $$— $1,859 
Depreciation and amortization$1,370 $138 $$— $1,514 $13 $1,554 $— $3,081 
Impairment charges$— $— $— $— $— $— $— $— $— 
Equity income(a)$$269 $— $— $270 $— $53 $— $323 
GMNAGMICorporateEliminationsTotal
Automotive
CruiseGM
Financial
Reclassifications/EliminationsTotal
Three Months Ended September 30, 2020
Net sales and revenue$29,128 $2,735 $203 $32,066 $26 $3,421 $(33)$35,480 
Expenditures for property$841 $138 $$— $980 $$$— $992 
Depreciation and amortization$1,182 $146 $$— $1,333 $11 $1,814 $— $3,158 
Impairment charges$— $$— $— $$— $— $— $
Equity income (a)$$259 $— $— $263 $— $46 $— $309 
GMNAGMICorporateEliminationsTotal
Automotive
CruiseGM
Financial
Reclassifications/EliminationsTotal
Nine Months Ended September 30, 2021
Net sales and revenue$74,443 $8,721 $67 $83,231 $81 $10,187 $(79)$93,420 
Expenditures for property$3,860 $362 $13 $— $4,235 $55 $20 $— $4,310 
Depreciation and amortization$3,849 $407 $16 $— $4,272 $37 $4,801 $— $9,110 
Impairment charges$— $— $— $— $— $$— $— $
Equity income(a)$$850 $— $— $858 $— $157 $— $1,015 
GMNAGMICorporateEliminationsTotal
Automotive
CruiseGM
Financial
Reclassifications/EliminationsTotal
Nine Months Ended September 30, 2020
Net sales and revenue$66,563 $7,692 $321 $74,576 $79 $10,405 $(93)$84,967 
Expenditures for property$2,703 $574 $15 $— $3,292 $10 $26 $— $3,328 
Depreciation and amortization$3,536 $461 $20 $— $4,017 $30 $5,567 $— $9,614 
Impairment charges$20 $101 $— $— $121 $— $— $— $121 
Equity income (a)$15 $261 $— $— $276 $— $113 $— $389 
________
(a)Includes Automotive China equity income of $270 million and $262 million in the three months ended September 30, 2021 and 2020 and $854 million and $264 million in the nine months ended September 30, 2021 and 2020.




6




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Vehicle Sales

GM presents both wholesale and total vehicle sales data to assist in the analysis of our revenue and our market share. Cuba, Iran, North Korea, Sudan and Syria are subject to broad economic sanctions. Accordingly, these countries are excluded from industry sales data and the corresponding calculation of GM's 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 nine months ended September 30, 2021, 29.1% of our 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 EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
GMNA423 799 1,729 1,905 
GMI113 166 388 447 
Total536 965 2,117 2,352 


7




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
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) vehicles used by dealers in their businesses, including courtesy transportation vehicles. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our 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 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 total vehicle sales by geographic region (vehicles in thousands):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
United States
Chevrolet – Cars19 55 97 152 
Chevrolet – Trucks178 221 616 607 
Chevrolet – Crossovers90 174 436 458 
Cadillac23 33 96 87 
Buick39 49 151 119 
GMC98 133 381 353 
Total United States447 665 1,777 1,776 
Canada, Mexico and Other75 100 285 273 
Total North America522 765 2,062 2,049 
Asia/Pacific, Middle East and Africa
Chevrolet134 198 458 564 
Wuling314 278 1,018 722 
Buick166 252 616 595 
Baojun40 100 178 276 
Cadillac62 67 188 155 
Other16 38 
Total Asia/Pacific, Middle East and Africa719 903 2,474 2,350 
South America(a)70 122 276 311 
Total in GM markets1,311 1,790 4,812 4,710 
Total Europe— — — 
Total Worldwide1,311 1,790 4,813 4,710 
_______
(a)Primarily Chevrolet.

The vehicle sales at GM's China joint ventures presented in the following table are included in the preceding vehicle sales table (vehicles in thousands):    
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
SAIC General Motors Sales Co., Ltd.275 395 974 952 
SAIC GM Wuling Automobile Co., Ltd.349 376 1,180 995 

8




General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Market Share
United States – Cars2.9 %7.0 %4.2 %7.0 %
United States – Trucks28.7 %29.8 %29.8 %30.2 %
United States – Crossovers8.8 %13.8 %11.7 %14.0 %
Total United States12.8 %16.6 %14.8 %16.8 %
Total North America12.2 %15.9 %14.3 %16.2 %
Total Asia/Pacific, Middle East and Africa6.9 %7.9 %7.3 %7.9 %
Total South America7.8 %14.3 %10.3 %14.7 %
Total GM Market8.4 %10.4 %9.4 %10.6 %
Total Worldwide6.8 %8.3 %7.6 %8.5 %
United States fleet sales as a percentage of retail vehicle sales12.8 %12.2 %15.0 %17.5 %
North America capacity two-shift utilization60.4 %112.3 %81.3 %85.1 %

9




General Motors Company and Subsidiaries
Combining Income Statement Information
(In millions) (Unaudited)
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
AutomotiveCruiseGM FinancialReclassifications/EliminationsCombinedAutomotiveCruiseGM FinancialReclassifications/EliminationsCombined
Net sales and revenue
Automotive$23,424 $26 $— $(24)$23,426 $32,066 $26 $— $(25)$32,067 
GM Financial— — 3,354 (1)3,353 — — 3,421 (8)3,413 
Total net sales and revenue23,424 26 3,354 (25)26,779 32,066 26 3,421 (33)35,480 
Costs and expenses
Automotive and other cost of sales 20,391 282 — (1)20,672 26,980 190 — (1)27,169 
GM Financial interest, operating and other expenses— — 2,314 — 2,314 — — 2,260 (1)2,259 
Automotive and other selling, general and administrative expense2,095 53 — — 2,148 1,565 63 — — 1,628 
Total costs and expenses22,486 335 2,314 (1)25,134 28,545 253 2,260 (2)31,056 
Operating income (loss)938 (309)1,040 (24)1,645 3,521 (227)1,161 (31)4,424 
Automotive interest expense229 — — 230 333 — — (6)327 
Interest income and other non-operating income, net774 (1)— 27 800 471 — 22 499 
Equity income270 — 53 — 323 263 — 46 — 309 
Income (loss) before income taxes$1,753 $(310)$1,093 $2,538 $3,922 $(221)$1,207 $(3)4,905 
Income tax expense152 887 
Net income2,386 4,018 
Net loss attributable to noncontrolling interests34 27 
Net income attributable to stockholders$2,420 $4,045 
Net income attributable to common stockholders$2,375 $4,005 
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
AutomotiveCruiseGM FinancialReclassifications/EliminationsCombinedAutomotiveCruiseGM FinancialReclassifications/EliminationsCombined
Net sales and revenue
Automotive$83,231 $81 $— $(75)$83,237 $74,576 $79 $— $(75)$74,580 
GM Financial— — 10,187 (4)10,183 — — 10,405 (18)10,387 
Total net sales and revenue83,231 81 10,187 (79)93,420 74,576 79 10,405 (93)84,967 
Costs and expenses
Automotive and other cost of sales 72,232 

822 — 

(1)

73,053 

66,779 

561 

— 

(1)

67,339 
GM Financial interest, operating and other expenses— — 6,488 (1)6,487 — — 8,855 (2)8,853 
Automotive and other selling, general and administrative expense5,886 190 — — 6,076 4,718 190 — — 4,908 
Total costs and expenses78,118 1,012 6,488 (2)85,616 71,497 751 8,855 (3)81,100 
Operating income (loss)5,113 (931)3,699 (77)7,804 3,079 (672)1,550 (90)3,867 
Automotive interest expense725 — — (2)723 838 — — (15)823 
Interest income and other non-operating income, net2,303 12 — 68 2,383 1,131 — 84 1,223 
Equity income858 — 157 — 1,015 276 — 113 — 389 
Income (loss) before income taxes$7,549 $(919)$3,856 $(7)10,479 $3,648 $(664)$1,663 $4,656 
Income tax expense2,300 1,132 
Net income8,179 3,524 
Net loss attributable to noncontrolling interests99 57 
Net income attributable to stockholders$8,278 $3,581 
Net income (loss) attributable to common stockholders
$8,141 $3,446 

10




General Motors Company and Subsidiaries
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 EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Basic earnings per share
Net income attributable to stockholders$2,420 $4,045 $8,278 $3,581 
Less: cumulative dividends on subsidiary preferred stock(45)(40)(137)(135)
Net income attributable to common stockholders$2,375 $4,005 $8,141 $3,446 
Weighted-average common shares outstanding1,452 1,432 1,450 1,432 
Basic earnings per common share$1.64 $2.80 $5.61 $2.41 
Diluted earnings per share
Net income attributable to common stockholders – diluted$2,375 $4,005 $8,141 $3,446 
Weighted-average common shares outstanding – diluted1,467 1,439 1,467 1,439 
Diluted earnings per common share$1.62 $2.78 $5.55 $2.40 
Potentially dilutive securities(a)31 31 
__________
(a)Potentially dilutive securities attributable to outstanding stock options and Restricted Stock Units (RSUs) at September 30, 2021 and 2020 were excluded from the computation of diluted earnings per share (EPS) because the securities would have had an antidilutive effect.

11




General Motors Company and Subsidiaries
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)(a)
September 30, 2021December 31, 2020
AutomotiveCruiseGM FinancialReclassifications/EliminationsCombinedAutomotiveCruiseGM FinancialReclassifications/EliminationsCombined
ASSETS
Current Assets
Cash and cash equivalents$10,669 $1,832 $4,865 $— $17,365 $14,168 $761 $5,063 $— $19,992 
Marketable debt securities4,792 1,803 — (20)6,575 8,103 972 — (29)9,046 
Accounts and notes receivable, net(b)8,222 717 (850)8,091 7,951 1,035 (954)8,035 
GM Financial receivables, net(c)— — 25,277 (184)25,093 — — 26,607 (398)26,209 
Inventories14,535 — — (1)14,534 10,236 — (2)10,235 
Other current assets2,053 85 4,126 (131)6,133 1,884 32 5,524 (32)7,407 
Total current assets40,270 3,721 34,984 (1,184)77,791 42,342 1,769 38,228 (1,414)80,924 
Non-current Assets
GM Financial receivables, net— — 34,645 — 34,645 — — 31,783 — 31,783 
Equity in net assets of nonconsolidated affiliates7,585 — 1,649 — 9,234 6,825 — 1,581 — 8,406 
Property, net 39,365 112 160 — 39,637 37,325 123 184 — 37,632 
Goodwill and intangible assets, net 3,047 739 1,340 — 5,126 3,152 735 1,343 — 5,230 
Equipment on operating leases, net— — 39,657 — 39,657 — — 39,819 — 39,819 
Deferred income taxes22,650 — (405)— 22,245 23,853 617 (334)— 24,136 
Other assets8,203 340 1,711 (32)10,222 6,129 382 805 (53)7,264 
Total non-current assets80,850 1,191 78,757 (32)160,766 77,284 1,856 75,182 (53)154,270 
Total Assets$121,120 $4,912 $113,741 $(1,216)$238,557 $119,625 $3,625 $113,410 $(1,466)$235,194 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)(b)$18,411 $128 $957 $(850)$18,648 $19,928 $93 $867 $(959)$19,928 
Short-term debt and current portion of long-term debt
Automotive (c)658 — (184)476 1,674 — — (398)1,276 
GM Financial— — 34,343 — 34,343 — — 35,637 — 35,637 
Accrued liabilities14,969 242 3,403 (130)18,484 18,751 133 4,218 (34)23,069 
Total current liabilities34,038 372 38,704 (1,164)71,951 40,353 226 40,722 (1,391)79,910 
Non-current Liabilities
Long-term debt
Automotive16,364 — — 16,372 16,193 — — — 16,193 
GM Financial — — 57,762 — 57,762 — — 56,788 — 56,788 
Postretirement benefits other than pensions6,111 — — — 6,111 6,277 — — — 6,277 
Pensions 10,817 — — 10,822 12,897 — — 12,902 
Other liabilities12,591 496 2,162 (32)15,218 11,151 539 1,810 (53)13,447 
Total non-current liabilities45,884 504 59,929 (32)106,285 46,519 539 58,602 (53)105,607 
Total Liabilities79,922 876 98,633 (1,196)178,236 86,872 764 99,325 (1,444)185,517 
Commitments and contingencies
Equity
Common stock, $0.01 par value15 — — — 15 14 — — — 14 
Additional paid-in capital(d)26,931 96 1,611 (1,713)26,926 26,551 76 1,730 (1,816)26,542 
Retained earnings25,043 405 14,776 (12)40,212 17,444 891 13,640 (13)31,962 
Accumulated other comprehensive loss(11,729)(1,278)— (13,003)(12,213)10 (1,284)— (13,488)
Total stockholders’ equity40,259 506 15,108 (1,725)54,150 31,796 976 14,085 (1,829)45,030 
Noncontrolling interests(d)938 3,530 — 1,704 6,171 959 1,884 — 1,804 4,647 
Total Equity41,198 4,036 15,108 (20)60,321 32,754 2,861 14,085 (23)49,677 
Total Liabilities and Equity$121,120 $4,912 $113,741 $(1,216)$238,557 $119,625 $3,625 $113,410 $(1,466)$235,194 
_________
(a)Amounts may not sum due to rounding.
(b)Eliminations primarily include: GM Financial accounts and notes receivable of $332 million offset by Automotive accounts payable and Automotive accounts receivable of $470 million offset by GM Financial accounts payable at September 30, 2021; and GM Financial accounts and notes receivable of $643 million offset by Automotive accounts payable and Automotive accounts receivable of $268 million offset by GM Financial accounts payable at December 31, 2020.
(c)Eliminations include GM Financial loan receivable of $184 million and $398 million offset by an Automotive loan payable at September 30, 2021 and December 31, 2020.
(d)Primarily reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A, B and C. The preferred stock is classified as noncontrolling interests in our condensed consolidated balance sheets.

12




General Motors Company and Subsidiaries
Combining Cash Flow Information
(In millions) (Unaudited)(a)
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
AutomotiveCruiseGM FinancialReclassifications/EliminationsCombinedAutomotiveCruiseGM FinancialReclassifications/EliminationsCombined
Cash flows from operating activities
Net income (loss)$6,522 $(1,236)$2,900 $(7)$8,179 $2,744 $(472)$1,244 $$3,524 
Depreciation and impairment of Equipment on operating leases, net— — 4,757 — 4,757 — 5,515 — 5,518 
Depreciation, amortization and impairment charges on Property, net4,272 41 43 — 4,357 4,135 30 53 — 4,217 
Foreign currency remeasurement and transaction (gains) losses(59)(2)— (59)52 — (2)— 50 
Undistributed earnings of nonconsolidated affiliates, net(148)— (157)— (306)250 — (113)— 137 
Pension contributions and OPEB payments(624)— — — (624)(610)— — — (610)
Pension and OPEB income, net(1,206)— — (1,205)(754)— — (754)
Provision (benefit) for deferred taxes1,532 316 115 — 1,963 678 (192)214 — 700 
Change in other operating assets and liabilities(b)(c)(9,980)133 (2,029)3,193 (8,683)(4,221)66 (912)2,263 (2,805)
Net cash provided by (used in) operating activities309 (744)5,628 3,186 8,379 2,276 (569)5,998 2,272 9,977 
Cash flows from investing activities
Expenditures for property(4,235)(55)(20)— (4,310)(3,292)(10)(26)— (3,328)
Available-for-sale marketable securities, acquisitions(2,307)(3,477)— — (5,784)(9,269)(2,921)— — (12,190)
Available-for-sale marketable securities, liquidations5,597 2,656 — (17)8,236 5,260 1,776 — (18)7,018 
Purchases of finance receivables, net— — (25,470)(49)(25,518)— — (22,419)125 (22,294)
Principal collections and recoveries on finance receivables(b)— — 23,446 (5,149)18,297 — — 17,932 (3,310)14,622 
Purchases of leased vehicles, net— — (16,698)— (16,698)— — (10,468)— (10,468)
Proceeds from termination of leased vehicles— — 15,513 — 15,513 — — 9,937 — 9,937 
Other investing activities(d)(1,739)(6)(14)1,084 (675)27 (71)(75)(116)
Net cash provided by (used in) investing activities(2,684)(882)(3,242)(4,131)(10,939)(7,273)(1,227)(5,040)(3,278)(16,819)
Cash flows from financing activities
Net increase (decrease) in short-term debt(2)— 3,205 — 3,203 (2)— 579 580 
Proceeds from issuance of debt (original maturities greater than three months)367 25 34,476 (25)34,843 21,246 — 43,685 — 64,931 
Payments on debt (original maturities greater than three months)(1,211)(18)(37,197)159 (38,266)(6,704)— (44,100)145 (50,659)
Proceeds from issuance of preferred stock(d)— 2,736 — (1,000)1,736 — — 492 — 492 
Dividends paid(c)(2)(49)(1,920)1,800 (170)(547)(16)(890)800 (653)
Other financing activities(15)(133)11 (134)(457)(135)55 (532)
Net cash provided by (used in) financing activities(863)2,698 (1,568)945 1,212 13,537 (14)(370)1,005 14,159 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(74)— (43)— (118)(265)— (140)— (404)
Net increase (decrease) in cash, cash equivalents and restricted cash(3,312)1,071 775 — (1,466)8,273 (1,809)448 — 6,913 
Cash, cash equivalents and restricted cash at beginning of period14,225 766 8,126 — 23,117 13,487 2,355 7,102 — 22,943 
Cash, cash equivalents and restricted cash at end of period$10,913 $1,838 $8,901 $— $21,651 $21,760 $545 $7,551 $— $29,856