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Item 8. Financial Statements and Supplementary Data

2021-02-10 compared with 2020-02-05 · 611 added, 586 removed, 1175 unchanged (50% of the section changed)

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Years Ended December 31,

2020 2019 2018

Net sales and revenue

Automotive $ 108,673 $ 122,697 $ 133,045

GM Financial 13,812 14,540 14,004

Total net sales and revenue (Note 3) 122,485 137,237 147,049

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Loss from discontinued operations, net of tax (Note 22) — — 70

Net income (loss)

Net income 6,321 6,667 8,005

Net loss attributable to noncontrolling interests 106 65 9

Net income (loss) attributable to stockholders

Net income (loss) attributable to common stockholders

Net income attributable to stockholders $ 6,427 $ 6,732 $ 8,014

Net income attributable to common stockholders $ 6,247 $ 6,581 $ 7,916

Earnings per share (Note 21)

Basic earnings per common share – continuing operations

$ 4.36 $ 4.62 $ 5.66

Basic loss per common share – discontinued operations $ — $ — $ 0.05

Basic earnings (loss) per common share

Basic earnings per common share $ 4.36 $ 4.62 $ 5.61

Weighted-average common shares outstanding – basic 1,433 1,424 1,411

Diluted earnings per common share – continuing operations

$ 4.33 $ 4.57 $ 5.58

Diluted loss per common share – discontinued operations $ — $ — $ 0.05

Diluted earnings (loss) per common share

Diluted earnings per common share $ 4.33 $ 4.57 $ 5.53

Weighted-average common shares outstanding – diluted 1,442 1,439 1,431

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Years Ended December 31,

Net income (loss)

Other comprehensive income (loss), net of tax (Note 20)

2020 2019 2018

Net income $ 6,321 $ 6,667 $ 8,005

Other comprehensive income, net of tax (Note 20)

Foreign currency translation adjustments and other ( 523 ) ( 6 ) ( 715 )

Defined benefit plans ( 1,795 ) ( 2,122 ) ( 221 )

Other comprehensive income (loss), net of tax

Comprehensive income (loss)

Other comprehensive loss, net of tax ( 2,318 ) ( 2,128 ) ( 936 )

Comprehensive income 4,003 4,539 7,069

Comprehensive loss attributable to noncontrolling interests 92 76 15

Comprehensive income (loss) attributable to stockholders

Comprehensive income attributable to stockholders $ 4,095 $ 4,615 $ 7,084

Reference should be made to the notes to consolidated financial statements.

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(In millions, except per share amounts)

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Current Assets

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Total non-current assets 154,270 153,045

Total Assets $ 235,194 $ 228,037

LIABILITIES AND EQUITY

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Short-term debt and current portion of long-term debt (Note 13)

Automotive 1,276 1,897

GM Financial (Note 11 at VIEs) 35,637 35,503

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Long-term debt (Note 13)

Automotive 16,193 12,489

GM Financial (Note 11 at VIEs) 56,788 53,435

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Noncontrolling interests 4,647 4,165

Total Equity 49,677 45,957

Total Liabilities and Equity $ 235,194 $ 228,037

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Years Ended December 31,

2020 2019 2018

Cash flows from operating activities

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Other operating activities ( 2,103 ) ( 873 ) ( 1,678 )

Net cash provided by operating activities – continuing operations

Net cash used in operating activities – discontinued operations

Net cash provided by operating activities 16,670 15,021 15,256

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Net cash used in investing activities – continuing operations ( 21,826 ) ( 10,899 ) ( 20,929 )

Net cash provided by (used in) investing activities – discontinued operations (Note 22)

Net cash provided by investing activities – discontinued operations (Note 22) — — 166

Net cash used in investing activities

( 21,826 ) ( 10,899 ) ( 20,763 )

Cash flows from financing activities

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Payments on debt (original maturities greater than three months) ( 72,663 ) ( 39,156 ) ( 33,323 )

Payments to purchase common stock

Proceeds from issuance of subsidiary preferred and common stock (Note 20) 492 457 2,862

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Other financing activities ( 412 ) ( 253 ) ( 830 )

Net cash provided by financing activities – continuing operations

Net cash provided by financing activities – discontinued operations

Net cash provided by (used in) financing activities 5,552 ( 4,677 ) 11,454

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Cash, cash equivalents and restricted cash at end of period $ 23,117 $ 22,943 $ 23,496

Cash, cash equivalents and restricted cash – continuing operations at end of period (Note 4)

Significant Non-cash Investing and Financing Activity

Non-cash property additions – continuing operations $ 2,300 $ 2,837 $ 3,813

Non-cash proceeds on sale of discontinued operations (Note 22)

Reference should be made to the notes to consolidated financial statements.

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(In millions)

Common Stockholders’

Noncontrolling Interests

Additional Paid-in Capital

Retained Earnings

Accumulated Other Comprehensive Loss

Common Stockholders’ Noncontrolling Interests Total Equity

Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss

Balance at January 1, 2018 $ 14 $ 25,371 $ 17,627 $ ( 8,011 ) $ 1,199 $ 36,200

Other comprehensive income

Adoption of accounting standards — — ( 1,046 ) ( 98 ) — ( 1,144 )

Net income — — 8,014 — ( 9 ) 8,005

Other comprehensive loss — — — ( 930 ) ( 6 ) ( 936 )

Purchase of common stock — ( 91 ) ( 99 ) — — ( 190 )

Exercise of common stock warrants

Issuance of subsidiary preferred stock (Note 20)

Issuance of subsidiary preferred and common stock (Note 20) — — — — 2,862 2,862

Stock based compensation — 287 — — — 287

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Dividends to noncontrolling interests — — — — ( 169 ) ( 169 )

Other — ( 4 ) ( 30 ) — 40 6

Balance at December 31, 2018 14 25,563 22,322 ( 9,039 ) 3,917 42,777

Adoption of accounting standards

Net income — — 6,732 — ( 65 ) 6,667

Other comprehensive loss — — — ( 2,117 ) ( 11 ) ( 2,128 )

Purchase of common stock

Issuance of subsidiary preferred and common stock (Note 20)

Issuance of subsidiary preferred stock (Note 20) — — — — 457 457

Stock based compensation — 409 ( 34 ) — — 375

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Dividends to noncontrolling interests — — — — ( 166 ) ( 166 )

Other — 102 5 — 33 140

Balance at December 31, 2019 14 26,074 26,860 ( 11,156 ) 4,165 45,957

Adoption of accounting standards (Note 2) — — ( 660 ) — — ( 660 )

Net income — — 6,427 — ( 106 ) 6,321

Other comprehensive loss — — — ( 2,332 ) 14 ( 2,318 )

Purchase of common stock — ( 57 ) ( 33 ) — — ( 90 )

Issuance of subsidiary preferred stock (Note 20) — — — — 544 544

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Dividends to noncontrolling interests — — — — ( 46 ) ( 46 )

Other — — ( 77 ) — 76 ( 1 )

Balance at December 31, 2020

$ 14 $ 26,542 $ 31,962 $ ( 13,488 ) $ 4,647 $ 49,677

Reference should be made to the notes to consolidated financial statements.

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We also provide automotive financing services through GM Financial.

We analyze the results of our continuing operations through the following operating segments:

GMNA, GM International Operations (GMIO), GM South America (GMSA), Cruise and GM Financial.

Our GMSA and GMIO operating segments are reported as one, combined international segment, GMI.

Cruise, formerly GM Cruise, is our global segment responsible for the development and commercialization of autonomous vehicle technology.

Nonsegment operations and Maven, our ride- and car-sharing business, are classified as Corporate.

We analyze the results of our continuing operations through the following segments:

GMNA, GMI, Cruise and GM Financial.

Cruise is our global segment responsible for the development and commercialization of autonomous vehicle technology.

Nonsegment operations are classified as Corporate.

Corporate includes certain centrally recorded income and costs such as interest, income taxes, corporate expenditures and certain nonsegment-specific revenues and expenses.

On July 31, 2017 we closed the sale of the Opel/Vauxhall Business to PSA Group.

On October 31, 2017 we closed the sale of the Fincos to Banque PSA Finance S.A.

and BNP Paribas Personal Finance S.A.

The European Business is presented as discontinued operations in our consolidated financial statements for all periods presented.

Unless otherwise indicated, information in this report relates to our continuing operations.

Refer to Note 22 for additional information on our discontinued operations.

In 2019 we changed the presentation of our consolidated balance sheets to reclassify the current portion of Equipment on operating leases, net to Other current assets.

We have made corresponding reclassifications to the comparable information for all periods presented.

Principles of Consolidation The consolidated financial statements are prepared in conformity with U.S.

All intercompany balances and transactions have been eliminated in consolidation.

The consolidated financial statements are prepared in conformity with U.S.

Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions.

We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we are the primary beneficiary.

Principles of Consolidation We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we are the primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

Our share of earnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of accounting when we are able to exercise significant influence over the operating and financial decisions of the affiliate.

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The accounting policies that follow are utilized by our automotive, automotive financing and Cruise operations, unless otherwise indicated.

Revenue Recognition We adopted Accounting Standards Update (ASU) 2014-09 "Revenue from Contracts with Customers" on January 1, 2018, which requires us to recognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or service, by applying the modified retrospective method to all noncompleted contracts as of the date of adoption.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The following accounting policies became effective on January 1, 2018:

We adopted Accounting Standards Update (ASU) 2016-13 "Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020 on a modified retrospective basis.

As such, the comparative information in prior periods was not restated and continues to be reported under the accounting standards in effect for those periods.

The accounting policies that follow for Marketable Debt Securities, Accounts and Notes Receivable and GM Financial Receivables that were affected by the adoption of ASU 2016-13 became effective on January 1, 2020.

Revenue Recognition

Automotive Automotive net sales and revenue represents the amount of consideration to which we expect to be entitled in exchange for vehicle, parts and accessories and services and other sales.

The consideration recognized represents the amount received, typically shortly after the sale to a customer, net of estimated dealer and customer sales incentives we reasonably expect to pay.

Significant factors in determining our estimates of incentives include forecasted sales volume, product mix, and the rate of customer acceptance of incentive programs, all of which are estimated based on historical experience and assumptions concerning

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future customer behavior and market conditions.

Significant factors in determining our estimates of incentives include forecasted sales volume, product mix and the rate of customer acceptance of incentive programs, all of which are estimated based on historical experience and assumptions concerning future customer behavior and market conditions.

Subsequent adjustments to incentive estimates are possible as facts and circumstances change over time.

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V e hicle, Parts and Accessories For the majority of vehicle and accessories sales, our customers obtain control and we recognize revenue when the vehicle transfers to the dealer, which generally occurs when the vehicle is released to the carrier responsible for transporting it to a dealer.

Revenue, net of estimated returns, is recognized on the sale of parts upon delivery to the customer.

Revenue, net of estimated returns, is recognized on the sale of parts upon delivery to

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

the customer.

When our customers have a right to return eligible parts and accessories, we consider the returns in our estimation of the transaction price.

Certain transfers to daily rental companies are accounted for as sales, with revenue recognized at the time of transfer.

At the time of transfer, we defer revenue for remarketing obligations, record a residual value guarantee and reflect a deposit liability for amounts expected to be returned once the remarketing services are complete.

Deferred revenue is recognized in earnings upon completion of the remarketing service.

Transfers that occurred prior to January 1, 2018 and future transfers containing a substantive repurchase obligation are accounted for as operating leases and rental income is recognized over the estimated term of the lease.

Our total exposure to vehicle repurchase obligations would be reduced to the extent vehicles are able to be resold to a third party.

Transfers to daily rental companies are accounted for as sales, with revenue recognized at the time of transfer.

We defer revenue for remarketing obligations, record a residual value guarantee and reflect a liability for amounts expected to be paid once the remarketing services are complete at the time of certain transfers and recognize deferred revenue in earnings upon completion of the remarketing service.

Transfers containing a substantive repurchase obligation are accounted for as operating leases and rental income is recognized over the estimated term of the lease.

Our total exposure to vehicle repurchase obligations is reduced to the extent vehicles are able to be resold to a third party.

Used Vehicles Proceeds from the auction of vehicles returned from daily rental car companies and vehicles utilized by our employees are recognized in Automotive net sales and revenue upon transfer of control of the vehicle to the customer and the related vehicle carrying value is recognized in Automotive and other cost of sales.

Services and Other Services and other revenue primarily consists of revenue from vehicle-related service arrangements and after-sale services such as maintenance, vehicle connectivity and extended service warranties.

Services and Other Services and other revenue primarily consists of revenue from vehicle-related service arrangements and after-sale services such as maintenance, OnStar, vehicle connectivity and extended service warranties.

For those service arrangements that are bundled with a vehicle sale, a portion of the revenue from the sale is allocated to the service component and recognized as deferred revenue within Accrued liabilities or Other liabilities.

We recognize revenue for bundled services and services sold separately as services are performed, typically over a period of less than three years .

Automotive Financing - GM Financial Finance charge income earned on receivables is recognized using the effective interest method.

Fees and commissions (including incentive payments) received and direct costs of originating loans are deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are fully charged off or paid in full.

We recognize revenue for bundled services and services sold separately as services are performed, typically over a period of up to seven years .

Automotive Financing - GM Financial Finance charge income earned on finance receivables is recognized using the effective interest method.

Fees and commissions received (including incentive payments) and direct costs of originating loans are deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are fully charged off or paid in full.

Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession.

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Income from operating lease assets, which includes lease origination fees, net of lease origination costs, is recorded as operating lease revenue on a straight-line basis over the term of the lease agreement.

Gains or losses realized upon disposition of off-lease assets including any payments received from lessees upon lease termination, are included in GM Financial interest, operating and other.

Advertising and Promotion Expenditures Advertising and promotion expenditures, which are expensed as incurred in Automotive and other selling, general and administrative expense, were $ 2.7 billion, $ 3.7 billion and $ 4.0 billion in the years ended December 31, 2020, 2019 and 2018.

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Cost sharing payments and fees related to these arrangements are presented in Automotive and other cost of sales.

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Cash Equivalents and Restricted Cash Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less.

We are required to post cash as collateral as part of certain agreements that we enter into as part of our operations.

Certain operating agreements require us to post cash as collateral.

Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash.

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Restricted cash is included in Other current assets and Other assets in the consolidated balance sheets.

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Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements.

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and Level 3 – Instruments whose significant inputs are unobservable.

Marketable Debt Securities We classify marketable debt securities as either available-for-sale or trading.

Marketable Debt Securities We generally classify marketable debt securities as available-for-sale.

Various factors, including turnover of holdings and investment guidelines, are considered in determining the classification of securities.

Available-for-sale debt securities are recorded at fair value with unrealized gains and losses recorded net of related income taxes in Accumulated other comprehensive loss until realized.

Trading debt securities are recorded at fair value with changes in fair value recorded in Interest income and other non-operating income, net.

We determine realized gains and losses for all debt securities using the specific identification method.

We measure the fair value of our marketable debt securities using a market approach where identical or comparable prices are available and an income approach in other cases.

Available-for-sale debt securities are recorded at fair value with non-credit related unrealized gains and losses recorded in Accumulated other comprehensive loss until realized.

Non-credit related unrealized losses are reclassified to Interest income and other non-operating income, net if we intend to sell the security or it is more likely than not that we will be required to sell the security before the recovery of the unrealized loss.

Credit losses are recorded in Interest income and other non-operating income, net.

An evaluation is made quarterly to determine if any portion of unrealized losses recorded in Accumulated other comprehensive loss needs to be reclassified.

We determine realized gains and losses for all debt securities using the specific identification method and measure the fair value of our marketable debt securities using a market approach where identical or comparable prices are available and an income approach in other cases.

If quoted market prices are not available, fair values of securities are determined using prices from a pricing service, pricing models, quoted prices of securities with similar characteristics or discounted cash flow models.

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We conduct an annual review of our pricing service and believe the prices received from our pricing service are a reliable representation of exit prices.

An evaluation is made quarterly to determine if unrealized losses related to non-trading investments in debt securities are other-than-temporary.

Factors considered include the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and the intent to sell or likelihood to be forced to sell the debt security before any anticipated recovery.

Accounts and Notes Receivable Accounts and notes receivable primarily consists of amounts that are due and payable from our customers for the sale of vehicles, parts, and accessories.

We evaluate the collectability of receivables each reporting period and record an allowance for doubtful accounts representing our estimate of probable losses.

We evaluate the collectability of receivables each reporting period and record an allowance for doubtful accounts to present the net amount expected to be collected on our receivables.

Additions to the allowance are charged to bad debt expense reported in Automotive and other selling, general and administrative expense and were insignificant in the years ended December 31, 2020, 2019 and 2018.

GM Financial Receivables Finance receivables are carried at amortized cost, net of allowance for loan losses.

GM Financial uses forecasting models to determine the collective allowance for loan losses based on factors including historical delinquency migration to loss, probability of default and loss given default.

The loss confirmation period is a key assumption within the models and represents the average amount of time from when a loss event first occurs to when the receivable is charged off.

GM Financial also considers an evaluation of overall portfolio credit quality based on various indicators.

Retail finance receivables that become classified as troubled debt restructurings (TDRs) are separately assessed for impairment.

A specific allowance is estimated based on the present value of the expected future cash flows of the receivables discounted at the original weighted average effective interest rate.

Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses on the finance receivables.

For retail finance receivables, GM Financial uses static pool modeling techniques to determine the allowance for loan losses expected over the remaining life of the receivables, which is supplemented by management judgment.

The modeling techniques incorporate reasonable and supportable forecasts of economic conditions over the expected remaining life of the finance receivables.

The economic forecasts incorporate factors which vary by region that GM Financial believes will have the largest impact on expected losses, including unemployment rates, interest rate spreads, disposable personal income and growth rates in gross domestic product.

Troubled debt restructurings (TDRs) are grouped separately for purposes of measuring the allowance.

The allowance for TDRs uses static pool modeling techniques like non-TDR retail finance receivables to determine the expected loss amount.

The expected cash flows of the receivables are then discounted at the original weighted average effective interest rate of the pool.

Factors considered when estimating the allowance for TDRs are based on an evaluation of historical and current information, which may be supplemented by management judgment.

Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans.

Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs.

Retail finance receivables are generally charged off in the month in which the account becomes 120 days contractually delinquent if GM Financial has not yet recorded a repossession charge-off.

A repossession charge-off generally represents the difference between the estimated net sales proceeds and the unpaid balance of the contract, including accrued interest.

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Commercial finance receivables are carried at amortized cost, net of allowance for loan losses and amounts held under a cash management program.

GM Financial establishes the allowance for loan losses based on historical loss experience, as well as the forecast for industry vehicle sales, which is the economic indicator believed to have the largest impact on expected losses.

Inventories Inventories are stated at the lower of cost or net realizable value.

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Productive material, supplies, work in process and service parts are reviewed to determine if inventory quantities are in excess of forecasted usage or if they have become obsolete.

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Equipment on Operating Leases Equipment on operating leases, net consists of vehicle leases to retail customers with lease terms of two to five years and vehicle sales to rental car companies that are expected to be repurchased in an average of seven months .

We are exposed to changes in the residual values of these assets.

The residual values represent estimates of the values of the leased vehicles at the end of the lease contracts and are determined based on forecasted auction proceeds when there is a reliable basis to make such a determination.

The residual values represent estimates of the values of the leased vehicles at the end of the lease agreements and are determined based on forecasted auction proceeds when there is a reliable basis to make such a determination.

Realization of the residual values is dependent on the future ability to market the vehicles under prevailing market conditions.

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Major improvements that extend the useful life or add functionality are capitalized.

The gross amount of assets under finance leases, prior to 2019, capital leases, is included in property, plant and equipment.

The gross amount of assets under finance leases is included in property, plant and equipment.

Expenditures for repairs and maintenance are charged to expense as incurred.

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Leasehold improvements are amortized over the period of lease or the life of the asset, whichever is shorter.

The amortization of the assets under finance leases, prior to 2019, capital leases, is included in depreciation expense.

The amortization of the assets under finance leases is included in depreciation expense.

Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are eliminated and any resulting gain or loss is recorded in earnings.

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Impairment charges related to special tools are recorded in Automotive and other cost of sales.

Goodwill Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that would trigger such a review.

Goodwill Goodwill is not amortized but rather tested for impairment annually on October 1 and when events warrant such a review.

The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists.

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Intangible assets are amortized on a straight-line or an accelerated method of amortization over their estimated useful lives.

An accelerated amortization method reflecting the pattern in which the asset will

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be consumed is utilized if that pattern can be reliably determined.

An accelerated amortization method reflecting the pattern in which the asset will be consumed is utilized if that pattern can be reliably determined.

We consider the period of expected cash flows and underlying data used to measure the fair value of the intangible assets when selecting a useful life.

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Impairment charges, if any, related to intangible assets are recorded in Automotive and other selling, general and administrative expense or Automotive and other cost of sales.

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Valuation of Long-Lived Assets The carrying amount of long-lived assets and finite-lived intangible assets to be held and used in the business is evaluated for impairment when events and circumstances warrant.

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Debt Securities Valuations for debt securities are based on quotations received from independent pricing services or from dealers who make markets in such securities.

Debt securities priced via pricing services that utilize matrix pricing which considers readily

Debt securities priced via pricing services that utilize matrix pricing which considers readily observable inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices, are classified in Level 2.

Debt securities that are typically priced by dealers and pricing services via the use of proprietary pricing models which incorporate significant unobservable inputs are classified in Level 3.

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observable inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices, are classified in Level 2.

Debt securities that are typically priced by dealers and pricing services via the use of proprietary pricing models which incorporate significant unobservable inputs are classified in Level 3.

These inputs primarily consist of yield and credit spread assumptions, discount rates, prepayment curves, default assumptions and recovery rates.

primarily consist of yield and credit spread assumptions, discount rates, prepayment curves, default assumptions and recovery rates.

Investment Funds, Private Equity and Debt Investments and Real Estate Investments Investment funds, private equity and debt investments and real estate investments are valued based on the Net Asset Value (NAV) per Share (or its equivalent) as a practical expedient to estimate fair value due to the absence of readily available market prices.

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In determining whether an adjustment to the external valuation is required, we will review material factors that could affect the valuation, such as changes in the composition or performance of the underlying investments or comparable investments, overall market conditions, expected sale prices for private investments which are probable of being sold in the short-term and other economic factors that may possibly have a favorable or unfavorable effect on the reported external valuation.

Stock Incentive Plans Our stock incentive plans include RSUs, RSAs, PSUs, stock options and awards that may be settled in our stock, the stock of our subsidiaries or in cash.

Stock Incentive Plans Our stock incentive plans include RSUs, Restricted Stock Awards (RSAs), PSUs, stock options and awards that may be settled in our stock, the stock of our subsidiaries or in cash.

We measure and record compensation expense based on the fair value of GM or Cruise's common stock on the date of grant for RSUs, RSAs and PSUs and the grant date fair value, determined utilizing a lattice model or the Black-Scholes formula, for stock options and PSUs.

We record compensation cost for service-based RSUs, RSAs, PSUs and service-based stock options on a straight-line basis over the entire vesting period, or for retirement eligible employees over the requisite service period.

RSUs granted in stock of Cruise vest upon satisfaction of both a service condition and a liquidity condition, defined as a change in control transaction or the consummation of an initial public offering.

Compensation costs for RSUs granted in stock of Cruise will be recorded when the liquidity condition is met.

Compensation cost for awards that do not have an established accounting grant date, but for which the service inception date has been established, or are settled in cash is based on the fair value of GM or Cruise's common stock at the end of each reporting period.

Compensation costs for RSUs granted in stock of Cruise will be recorded when the liquidity condition described above is met.

We use the graded vesting method to record compensation cost for stock options with market conditions over the lesser of the vesting period or the time period an employee becomes eligible to retain the award at retirement.

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The effect on deferred tax assets and liabilities of a change in tax laws or rates is recorded in the results of operations in the period that includes the enactment date under the law.

Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted.

We establish valuation allowances for deferred tax assets based on a more likely than not standard.

Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted.

The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction.

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Gains and losses arising from foreign currency transactions and the effects of remeasurements discussed in the preceding paragraph are recorded in Automotive and other cost of sales and GM Financial interest, operating and other expenses unless related to Automotive debt, which are recorded in Interest income and other non-operating income, net.

Foreign currency transaction and remeasurement gains were $ 85 million and losses were $ 168 million and $ 52 million in the years ended December 31, 2019, 2018 and 2017.

Foreign currency transaction and remeasurement losses were $ 203 million, gains of $ 85 million and losses of $ 168 million in the years ended December 31, 2020, 2019 and 2018.

Derivative Financial Instruments Derivative financial instruments are recognized as either assets or liabilities at fair value.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Recently Adopted Accounting Standards Effective January 1, 2019, we adopted ASU 2016-02, "Leases" (ASU 2016-02) using the modified retrospective method, resulting in a cumulative-effect adjustment to the opening balance of Retained earnings for an insignificant amount.

We recognized $ 1.0 billion of right of use assets and lease obligations included in Other assets, Accrued liabilities and Other liabilities on our consolidated balance sheet for our existing operating lease portfolio at January 1, 2019.

We elected to apply the practical expedient related to land easements, as well as the package of practical expedients permitted under the transition guidance in the new standard, which allowed us to carry forward our historical lease classification.

The accounting for our finance leases and leases where we are the lessor remained substantially unchanged.

The application of ASU 2016-02 had no impact on our consolidated income statement or consolidated statement of cash flows.

The following table summarizes our minimum commitments under noncancelable operating leases having initial terms in excess of one year, primarily for property, at December 31, 2018 as disclosed in our 2018 Form 10-K:

Years Ending December 31,

Minimum commitments(a)

Sublease income

Net minimum commitments

Certain leases contain escalation clauses and renewal or purchase options.

Refer to Note 16 for information on our operating leases at December 31, 2019 .

Accounting Standards Not Yet Adopted In June 2016 the Financial Accounting Standards Board issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which requires entities to use a new impairment model based on Current Expected Credit Losses (CECL) rather than incurred losses.

We adopted ASU 2016-13 on January 1, 2020 on a modified retrospective basis.

Upon adoption, estimated credit losses under CECL consider relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectibility of the reported amount, resulting in recognition of lifetime expected credit losses upon loan origination.

The adoption impact of ASU 2016-13 will increase our allowance for credit losses by approximately $ 800 million , with an after-tax reduction to Retained earnings of approximately $ 600 million .

Recently Adopted Accounting Standards Effective January 1, 2020, we adopted ASU 2016-13, which requires entities to use a new impairment model based on current expected credit losses (CECL) rather than incurred losses.

Estimated credit losses under CECL consider relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets, resulting in recognition of lifetime expected credit losses at initial recognition of the related asset.

We adopted ASU 2016-13 on a modified retrospective basis by recognizing an after-tax cumulative-effect adjustment to the opening balance of Retained earnings of $ 660 million, inclusive of $ 643 million related to GM Financial.

The application of ASU 2016-13 increased our allowance for loan losses related to GM Financial receivables, net by $ 801 million and had an insignificant impact to our allowance for credit losses for Accounts and notes receivable and no adoption impact to Marketable debt securities on our consolidated balance sheets.

Effective July 1, 2020, we adopted ASU 2020-04, “Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which provides optional expedients and exceptions for applying U.S.

GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued, on a prospective basis.

We do not believe the discontinuance of LIBOR will be a significant event for our Automotive arrangements.

A substantial portion of GM Financial’s indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR.

The adoption of, and future elections under, ASU 2020-04 are not expected to have a material impact on our consolidated financial statements as the standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform.

We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on GM Financial's contracts, hedging relationships and other transactions.

The following table disaggregates our revenue by major source for revenue generating segments :

Year Ended December 31, 2020

Total Automotive

Eliminations/ Reclassifications

GMNA GMI Corporate Total Automotive Cruise GM Financial Eliminations/ Reclassifications Total

Vehicle, parts and accessories $ 92,749 $ 10,593 $ 1 $ 103,343 $ — $ — $ — $ 103,343

4 unchanged sentences

Finance charge income — — — — — 3,996 ( 1 ) 3,995

Other income — — — — — 305 ( 18 ) 287

GM Financial net sales and revenue — — — — — 13,831 ( 19 ) 13,812

Net sales and revenue $ 96,733 $ 11,586 $ 350 $ 108,669 $ 103 $ 13,831 $ ( 118 ) $ 122,485

Year Ended December 31, 2019

GMNA GMI Corporate Total Automotive Cruise GM Financial Eliminations/ Reclassifications Total

Vehicle, parts and accessories $ 101,346 $ 14,931 $ — $ 116,277 $ — $ — $ — $ 116,277

Used vehicles 1,896 123 — 2,019 — — — 2,019

Services and other 3,124 1,057 220 4,401 100 — ( 100 ) 4,401

Automotive net sales and revenue 106,366 16,111 220 122,697 100 — ( 100 ) 122,697

Leased vehicle income — — — — — 10,032 — 10,032

Finance charge income — — — — — 4,071 ( 7 ) 4,064

Other income — — — — — 451 ( 7 ) 444

GM Financial net sales and revenue — — — — — 14,554 ( 14 ) 14,540

Net sales and revenue $ 106,366 $ 16,111 $ 220 $ 122,697 $ 100 $ 14,554 $ ( 114 ) $ 137,237

GENERAL MOTORS COMPANY AND SUBSIDIARIES

1 unchanged sentence

Year Ended December 31, 2018

Total Automotive

GMNA GMI Corporate Total Automotive GM Financial Eliminations Total

Vehicle, parts and accessories $ 107,217 $ 17,980 $ 20 $ 125,217 $ — $ ( 62 ) $ 125,155

4 unchanged sentences

Finance charge income — — — — 3,629 ( 8 ) 3,621

Other income — — — — 424 ( 4 ) 420

GM Financial net sales and revenue — — — — 14,016 ( 12 ) 14,004

2 unchanged sentences

Adjustments to sales incentives for previously recognized sales were insignificant during the years ended December 31, 2020, 2019 and 2018.

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts.

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts of $ 2.4 billion and $ 2.2 billion at December 31, 2020 and 2019, which are included in Accrued liabilities and Other liabilities.

We recognized revenue of $ 1.1 billion and $ 1.5 billion related to contract liabilities during the years ended December 31, 2020 and 2019.

We expect to recognize revenue of $ 1.1 billion , $ 487 million and $ 658 million in the years ending December 31, 2020, 2021 and thereafter related to contract liabilities as of December 31, 2019 .

We expect to recognize revenue of $ 1.2 billion, $ 503 million and $ 759 million in the years ending December 31, 2021, 2022 and thereafter related to contract liabilities at December 31, 2020.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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Marketable and Other Securities

The following table summarizes the fair value of cash equivalents and marketable debt and equity securities, which approximates cost:

Fair Value Level

December 31, 2019

December 31, 2018

The following table summarizes the fair value of cash equivalents and marketable debt securities, which approximates cost:

Fair Value Level December 31, 2020 December 31, 2019

Cash and cash equivalents

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Total available-for-sale debt securities with contractual maturities $ 15,311

Includes $ 248 million and $ 616 million that is designated exclusively to fund capital expenditures in GM Korea at December 31, 2019 and 2018.

Refer to Note 20 for additional information.

Includes $ 2.3 billion in Cruise at December 31, 2019 and 2018.

Refer to Note 20 for additional information.

Includes $ 266 million in Cruise at December 31, 2019.

Excludes mortgage- and asset-backed securities of $ 681 million at December 31, 2019 as these securities are not due at a single maturity date.

Proceeds from the sale of available-for-sale debt investments sold prior to maturity were $ 4.5 billion , $ 4.3 billion and $ 5.6 billion in the years ended December 31, 2019 , 2018 and 2017 .

(a) Include s $ 248 million that is designated exclusively to fund capital expenditures in GM Korea Company (GM Korea) at December 31, 2019.

No amount was designated exclusively to fund GM Korea capital expenditures at December 31, 2020.

(b) Includes $ 761 million and $ 2.3 billion in Cruise at December 31, 2020 and 2019.

(d) Excludes mortgage- and asset-backed securities of $ 632 million at December 31, 2020 as these securities are not due at a single maturity date .

Proceeds from the sale of available-for-sale debt securities sold prior to maturity were $ 1.9 billion, $ 4.5 billion and $ 4.3 billion in the years ended December 31, 2020, 2019 and 2018.

Net unrealized gains and losses on available-for-sale debt securities were insignificant in the years ended December 31, 2020, 2019 and 2018.

Cumulative unrealized gains and losses on available-for-sale debt securities were insignificant at December 31, 2020 and 2019.

Our remaining investment in Lyft was measured at fair value at December 31, 2019 using Lyft’s quoted market price, a Level 1 input.

Prior to Lyft's initial public offering, our investment in Lyft was measured at fair value using Level 3 inputs at December 31, 2018.

The fair value of this investment was $ 535 million included in Other current assets and $ 884 million included in Other assets at December 31, 2019 and 2018 .

We recorded an insignificant unrealized loss and an unrealized gain of $ 142 million in Interest income and other non-operating income, net in the years ended December 31, 2019 and 2018 .

We liquidated our remaining shares in Lyft in the six months ended June 30, 2020.

We recorded an insignificant unrealized loss in the years ended December 31, 2020 and 2019, and an unrealized gain of $ 142 million in Interest income and other non-operating income, net in the year ended December 31, 2018.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Cash and cash equivalents $ 19,992 $ 19,069

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Restricted cash included in Other assets 544 522

Total $ 23,117 $ 22,943

GM Financial Receivables and Transactions

December 31, 2019

December 31, 2018

Commercial(a)

Finance receivables, collectively evaluated for impairment, net of fees

Finance receivables, individually evaluated for impairment, net of fees(b)

December 31, 2020 December 31, 2019

Retail Commercial(a) Total Retail Commercial(a) Total

GM Financial receivables $ 51,288 $ 8,682 $ 59,970 $ 42,229 $ 11,671 $ 53,900

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Fair value of GM Financial receivables utilizing Level 3 inputs $ 51,645 $ 41,973

Net of dealer cash management balances of $ 1.2 billion and $ 922 million at December 31, 2019 and 2018.

(a) Net of dealer cash management balances of $ 1.4 billion and $ 1.2 billion at December 31, 2020 and 2019.

Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on their floorplan line by making principal payments to GM Financial in advance.

The allowance for loan losses included $ 330 million and $ 321 million of specific allowances on retail receivables at December 31, 2019 and 2018.

Years Ended December 31,

2020 2019 2018

Allowance for loan losses at beginning of period $ 944 $ 911 $ 942

Impact of adoption ASU 2016-13 (Note 2) 801 — —

Provision for loan losses 881 726 642

Charge-offs ( 1,169 ) ( 1,246 ) ( 1,199 )

Recoveries 542 551 536

Effect of foreign currency ( 21 ) 2 ( 10 )

Allowance for loan losses at end of period $ 1,978 $ 944 $ 911

The allowance for loan losses on retail and commercial finance receivables included a collective allowance of $ 596 million , $ 586 million and $ 611 million and a specific allowance of $ 348 million , $ 325 million and $ 331 million at December 31, 2019 , 2018 and 2017 .

Refer to Note 2 for expected impact of adoption of ASU 2016-13.

Retail Finance Receivables We use proprietary scoring systems in the underwriting process that measure the credit quality of retail finance receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g.

FICO score or its equivalent) and contract characteristics.

We also consider other factors such as employment history, financial stability and capacity to pay.

Subsequent to origination we review the credit quality of retail finance receivables based on customer payment activity.

At December 31, 2019 and 2018 24 % and 25 % of retail finance receivables were from consumers with sub-prime credit scores, which are defined as a FICO score or its equivalent of less than 620 at the time of loan origination.

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use.

A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at December 31, 2020 is as follows:

Year of Origination December 31, 2020 December 31, 2019

2020 2019 2018 2017 2016 Prior Total Percent Total Percent

Prime – FICO score 680 and greater $ 18,685 $ 7,033 $ 4,491 $ 1,917 $ 555 $ 119 $ 32,800 64.0 % $ 25,400 60.1 %

Near-prime – FICO score 620 to 679 3,695 2,097 1,232 603 225 83 7,935 15.4 % 6,862 16.3 %

Sub-prime – FICO score less than 620 3,803 2,920 1,740 1,173 610 307 10,553 20.6 % 9,967 23.6 %

Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 % $ 42,229 100.0 %

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We purchase retail finance contracts from automobile dealers without recourse, and accordingly, the dealer has no liability to GM Financial if the consumer defaults on the contract.

Finance receivables are collateralized by vehicle titles and GM Financial has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract.

An account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due.

GM Financial reviews the ongoing credit quality of retail finance receivables based on customer payment activity.

A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due.

Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract.

The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $ 714 million and $ 875 million at December 31, 2020 and 2019.

The following table summarizes the contractual amount of delinquent retail finance receivables, which is not significantly different than the recorded investment of the retail finance receivables:

December 31, 2019

December 31, 2018

Percent of Contractual Amount Due

31-to-60 days delinquent

Greater-than-60 days delinquent

Total finance receivables more than 30 days delinquent

The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2020:

Year of Origination December 31, 2020 December 31, 2019

2020 2019 2018 2017 2016 Prior Total Percent Total(a) Percent

0-to-30 days $ 25,894 $ 11,591 $ 7,131 $ 3,454 $ 1,249 $ 421 $ 49,740 97.0 %

31-to-60 days 210 325 235 170 102 61 1,103 2.1 % $ 1,354 3.2 %

Greater-than-60 days 72 123 90 64 37 26 412 0.8 % 542 1.3 %

Finance receivables more than 30 days delinquent 282 448 325 234 139 87 1,515 2.9 % 1,896 4.5 %

In repossession 7 11 7 5 2 1 33 0.1 % 44 0.1 %

Total finance receivables more than 30 days delinquent or in repossession

Commercial Finance Receivables Our commercial finance receivables consist of dealer financings, primarily for inventory purchases.

Finance receivables more than 30 days delinquent or in repossession 289 459 332 239 141 88 1,548 3.0 % $ 1,940 4.6 %

Retail finance receivables, net of fees $ 26,183 $ 12,050 $ 7,463 $ 3,693 $ 1,390 $ 509 $ 51,288 100.0 %

(a) Represents the contractual amounts of delinquent retail finance receivables, which is not significantly different than the outstanding amortized cost for such receivables.

The outstanding amortized cost of retail finance receivables that are considered TDRs was $ 2.2 billion at December 31, 2020, including $ 301 million in nonaccrual loans.

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases.

Proprietary models are used to assign a risk rating to each dealer.

We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary.

Dealers in Group VI are subject to additional restrictions on funding, including suspension of lines of credit and liquidation of assets.

The commercial finance receivables on nonaccrual status were insignificant at December 31, 2019 and 2018 .

The following table summarizes the credit risk profile by dealer risk rating of the commercial finance receivables:

December 31, 2019

December 31, 2018

– Dealers with superior financial metrics

– Dealers with strong financial metrics

– Dealers with fair financial metrics

– Dealers with weak financial metrics

– Dealers warranting special mention due to elevated risks

– Dealers with loans classified as substandard, doubtful or impaired

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial.

These amounts are presented in GM Financial's consolidated balance sheets and statements of income.

All balance sheet amounts in the table below are eliminated.

GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary.

The commercial finance receivables on nonaccrual status were insignificant at December 31, 2020.

Prior to January 1, 2020, GM Financial estimated the allowance for loan losses based on an analysis of the experience of comparable commercial lenders.

Effective January 1, 2020, GM Financial establishes the allowance for loan losses based on historical loss experience for the consolidated portfolio, in addition to forecast for industry vehicle sales.

The updated risk rating categories are as follows:

Rating Description

I Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.

II Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.

III Non-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.

IV Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

December 31, 2019

December 31, 2018

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets.

The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at December 31, 2020:

Year of Origination(a) December 31, 2020

Revolving 2020 2019 2018 2017 2016 Prior Total Percent

I $ 6,968 $ 510 $ 159 $ 63 $ 95 $ 43 $ 19 $ 7,857 90.5 %

II 491 2 18 2 3 18 34 568 6.5 %

III 203 — 8 29 2 11 — 253 2.9 %

IV — — — — — — 4 4 0.1 %

Commercial finance receivables, net of fees $ 7,662 $ 512 $ 185 $ 94 $ 100 $ 72 $ 57 $ 8,682 100.0 %

(a) Floorplan advances comprise 97 % of the total revolving balance.

Dealer term loans are presented by year of origination.

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial.

These amounts are presented in GM Financial's consolidated balance sheets and statements of income.

December 31, 2020 December 31, 2019

Consolidated Balance Sheets(a)

Commercial finance receivables, net due from GM consolidated dealers $ 398 $ 478

Direct-financing lease receivables from GM subsidiaries

Subvention receivable(b) $ 642 $ 676

1 unchanged sentence

Years Ended December 31,

2020 2019 2018

Consolidated Statements of Income

1 unchanged sentence

Leased vehicle subvention earned $ 3,042 $ 3,273 $ 3,274

All balance sheet amounts are eliminated upon consolidation.

Our Automotive segments made cash payments to GM Financial for subvention of $ 4.1 billion , $ 3.8 billion , and $ 4.3 billion in the years ended December 31, 2019 , 2018 and 2017.

GM Financial's Board of Directors declared and paid dividends of $ 400 million and $ 375 million on its common stock in October 2019 and 2018.

December 31, 2019

December 31, 2018

(a) All balance sheet amounts are eliminated upon consolidation.

(b) Our Automotive segments made cash payments to GM Financial for subvention of $ 3.9 billion, $ 4.1 billion, and $ 3.8 billion in the years ended December 31, 2020, 2019 and 2018.

GM Financial's Board of Directors declared and paid dividends of $ 800 million, $ 400 million and $ 375 million on its common stock in the years ended December 31, 2020, 2019 and 2018.

December 31, 2020 December 31, 2019

Total productive material, supplies and work in process

$ 5,117 $ 4,713

Finished product, including service parts 5,118 5,685

3 unchanged sentences

The current portion of net equipment on operating leases is included in Other current assets.

December 31, 2019

December 31, 2018

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

December 31, 2020 December 31, 2019

Equipment on operating leases $ 50,000 $ 53,081

5 unchanged sentences

Years Ending December 31,

2021 2022 2023 2024 2025 Thereafter Total

Lease receipts under operating leases $ 6,142 $ 3,783 $ 1,441 $ 112 $ 2 $ — $ 11,480

1 unchanged sentence

Nonconsolidated affiliates are entities in which we maintain an equity ownership interest and for which we use the equity method of accounting due to our ability to exert significant influence over decisions relating to their operating and financial affairs.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

and expenses of our joint ventures are not consolidated into our financial statements;

Revenue and expenses of our joint ventures are not consolidated into our financial statements;

rather, our proportionate share of the earnings of each joint venture is reflected as Equity income.

Years Ended December 31,

2020 2019 2018

Automotive China equity income $ 512 $ 1,132 $ 1,981

2 unchanged sentences

Investments in Nonconsolidated Affiliates

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Automotive China carrying amount $ 6,599 $ 7,044

1 unchanged sentence

Total equity in net assets of nonconsolidated affiliates $ 8,406 $ 8,562

The carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $ 4.2 billion and $ 4.4 billion at December 31, 2019 and 2018 primarily due to goodwill from the application of fresh-start reporting and the purchase of additional interests in nonconsolidated affiliates.

The carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $ 4.2 billion at December 31, 2020 and 2019 primarily due to goodwill from the application of fresh-start reporting and the purchase of additional interests in nonconsolidated affiliates.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes our direct ownership interests in our China JVs:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Automotive China JVs

SAIC General Motors Corp., Ltd.

(SGM) 50 % 50 %

Pan Asia Technical Automotive Center Co., Ltd.

1 unchanged sentence

SAIC GM Wuling Automobile Co., Ltd.

(SGMW) 44 % 44 %

Shanghai OnStar Telematics Co., Ltd.

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SAIC GM (Shenyang) Norsom Motors Co., Ltd.

(SGM Norsom) 25 % 25 %

SAIC GM Dong Yue Motors Co., Ltd.

(SGM DY) 25 % 25 %

SAIC GM Dong Yue Powertrain Co., Ltd.

FAW-GM Light Duty Commercial Vehicle Co., Ltd.

(SGM DYPT) 25 % 25 %

Other joint ventures

1 unchanged sentence

SAIC-GMF Leasing Co., Ltd.

In 2019, we divested our joint venture FAW-GM.

SGM is a joint venture we established with Shanghai Automotive Industry Corporation (SAIC) ( 50 %).

6 unchanged sentences

SAIC Financial Holdings Company, a subsidiary of SAIC, owns 45 % of SAIC-GMF Leasing Co., Ltd.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Summarized Financial Data of Nonconsolidated Affiliates

December 31, 2019

December 31, 2018

Automotive China JVs

December 31, 2020 December 31, 2019

Automotive China JVs Others Total Automotive China JVs Others Total

Summarized Balance Sheet Data

1 unchanged sentence

Non-current assets 14,875 8,634 23,509 14,484 6,680 21,164

Total assets $ 32,479 $ 25,478 $ 57,957 $ 28,519 $ 19,999 $ 48,518

Current liabilities $ 25,633 $ 14,808 $ 40,441 $ 21,256 $ 11,588 $ 32,844

3 unchanged sentences

Years Ended December 31,

2020 2019 2018

Summarized Operating Data

5 unchanged sentences

Total net income $ 1,675 $ 2,735 $ 4,528

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Transactions with Nonconsolidated Affiliates Our nonconsolidated affiliates are involved in various aspects of the development, production and marketing of trucks, crossovers, cars and automobile parts.

2 unchanged sentences

Years Ended December 31,

2020 2019 2018

Automotive sales and revenue $ 235 $ 199 $ 406

2 unchanged sentences

Operating cash flows $ 1,473 $ 913 $ 657

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Accounts and notes receivable, net $ 954 $ 1,007

1 unchanged sentence

Undistributed earnings $ 1,594 $ 2,118

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Estimated Useful Lives in Years

December 31, 2019

December 31, 2018

Estimated Useful Lives in Years December 31, 2020 December 31, 2019

Land $ 1,339 $ 1,302

Buildings and improvements 5 - 40

Machinery and equipment 3 - 27

30,013 29,814

Special tools 1 - 13

20,851 23,586

Construction in progress 3,581 3,042

2 unchanged sentences

Total property, net $ 37,632 $ 38,750

The amount of capitalized software included in Property, net was $ 1.3 billion and $ 1.1 billion at December 31, 2019 and 2018 .

The amount of capitalized software included in Property, net was $ 1.3 billion at December 31, 2020 and 2019.

The amount of interest capitalized and excluded from Automotive interest expense related to Property, net was insignificant in the years ended December 31, 2020, 2019 and 2018.

Years Ended December 31,

2020 2019 2018

Depreciation and amortization expense $ 5,354 $ 6,541 $ 5,347

1 unchanged sentence

Capitalized software amortization expense(a) $ 457 $ 452 $ 424

Included in depreciation and amortization expense.

(a) Included in depreciation and amortization expense.

Goodwill and Intangible Assets

Goodwill of $ 1.9 billion consisted of $ 1.4 billion recorded in GM Financial and $ 504 million included in Cruise at December 31, 2019 and 2018 .

December 31, 2019

December 31, 2018

Gross Carrying Amount

Accumulated Amortization

Net Carrying Amount

Gross Carrying Amount

Accumulated Amortization

Net Carrying Amount

Goodwill of $ 1.9 billion consisted of $ 1.3 billion and $ 1.4 billion recorded in GM Financial, primarily related to its North America reporting unit, and $ 567 million and $ 504 million included in Cruise at December 31, 2020 and 2019.

The COVID-19 pandemic has caused material disruption to businesses, resulting in an economic slowdown.

The economic and social uncertainty resulting from the COVID-19 pandemic indicated that it was more likely than not that a goodwill impairment existed at March 31, 2020 for GM Financial's North America reporting unit.

Therefore, at March 31, 2020, we performed an event-driven goodwill impairment test for GM Financial's North America reporting unit and determined no goodwill impairment existed.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The fair value of GM Financial's North America reporting unit at March 31, 2020 was determined based on valuation techniques using the best available information, primarily discounted cash flow projections.

We make significant assumptions and estimates about the extent and timing of future cash flows.

There can be no assurance that anticipated financial results will be achieved.

Under multiple scenarios, including fully weighting the downside cash flow scenario, the estimated fair value of GM Financial's North America reporting unit at March 31, 2020 exceeded its carrying amount.

Since our goodwill impairment analysis at March 31, 2020, we performed a qualitative assessment of goodwill impairment by evaluating our economic performance, outlook and other events and circumstances and noted no indicators that would warrant further quantitative testing of goodwill impairment.

December 31, 2020 December 31, 2019

Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

Technology and intellectual property $ 762 $ 542 $ 220 $ 734 $ 533 $ 201

Brands 4,300 1,444 2,856 4,298 1,285 3,013

Dealer network, customer relationships and other 981 737 244 966 702 264

2 unchanged sentences

Amortization expense related to intangible assets is estimated to be approximately $ 160 million in each of the next five years.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Variable Interest Entities

Consolidated VIEs

Automotive Financing - GM Financial

GM Financial uses special purpose entities (SPEs) that are considered VIEs to issue variable funding notes to third party bank-sponsored warehouse facilities or asset-backed securities to investors in securitization transactions.

1 unchanged sentence

GM Financial determined that it is the primary beneficiary of the SPEs because the servicing responsibilities for the Securitized Assets give GM Financial the power to direct the activities that most significantly impact the performance of the VIEs and the variable interests in the VIEs give GM Financial the obligation to absorb losses and the right to receive residual returns that could potentially be significant.

The assets serve as the sole source of repayment for the debt issued by these entities.

The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities.

Investors in the notes issued by the VIEs do not have recourse to GM Financial or its other assets, with the exception of customary representation and warranty repurchase provisions and indemnities that GM Financial provides as the servicer.

GM Financial is not required and does not currently intend to provide additional financial support to these SPEs.

GM Financial is not required to provide additional financial support to these SPEs.

While these subsidiaries are included in GM Financial's consolidated financial statements, they are separate legal entities and their assets are legally owned by them and are not available to GM Financial's creditors.

The following table summarizes the assets and liabilities related to GM Financial's consolidated VIEs:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Restricted cash – current

$ 2,190 $ 2,202

Restricted cash – non-current

GM Financial receivables, net of fees – current

$ 17,211 $ 19,081

GM Financial receivables, net of fees – non-current

$ 15,107 $ 15,921

GM Financial equipment on operating leases, net $ 16,322 $ 14,464

1 unchanged sentence

GM Financial long-term debt $ 18,974 $ 15,819

GM Financial recognizes finance charge, leased vehicle and fee income on the Securitized Assets and interest expense on the secured debt issued in a securitization transaction and records a provision for loan losses to recognize probable loan losses inherent in the finance receivables.

GM Financial recognizes finance charge, leased vehicle and fee income on the Securitized Assets and interest expense on the secured debt issued in a securitization transaction and records a provision for loan losses to recognize loan losses expected over the remaining life of the finance receivables.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Nonconsolidated VIEs

Nonconsolidated VIEs principally include automotive related operating entities to which we provided financial support to ensure that our supply needs for production are met or are not disrupted.

Our variable interests in these nonconsolidated VIEs include equity investments, accounts and loans receivable, committed financial support and other off-balance sheet arrangements.

The carrying amounts of assets and liabilities related to our nonconsolidated VIEs were insignificant at December 31, 2020 and 2019.

Our maximum exposure to loss as a result of our involvement with these VIEs was $ 1.2 billion, inclusive of $ 776 million in committed capital contributions to Ultium Cells LLC at December 31, 2020, and an insignificant amount at December 31, 2019.

We currently lack the power through voting or similar rights to direct the activities of these entities that most significantly affect their economic performance.

Accrued and Other Liabilities

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Accrued liabilities

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Payrolls and employee benefits excluding postemployment benefits 1,864 1,969

Other 7,725 7,895

Total accrued liabilities $ 23,069 $ 26,487

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Postemployment benefits including facility idling reserves 739 633

Other 3,009 3,026

Total other liabilities $ 13,447 $ 13,146

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Years Ended December 31,

2020 2019 2018

Product Warranty and Related Liabilities

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Warranties issued and assumed in period – product warranty 1,773 2,001 2,143

Payments ( 2,986 ) ( 3,012 ) ( 2,903 )

Adjustments to pre-existing warranties 41 455 ( 464 )

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Warranty balance at end of period $ 8,242 $ 7,798 $ 7,590

We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be insignificant at December 31, 2019.

Refer to Note 16 for reasonably possible losses on Takata matters.

In the three months ended December 31, 2020, we recorded an accrual of $ 1.1 billion, which represents our current estimate of the expected costs of complying with the recall related to the Takata passenger-side inflators in certain GMT900 vehicles, which are full-size pickup trucks and SUVs.

This accrual is reflected in Warranties issued and assumed in period – recall campaigns in the table above.

Refer to Note 16 for additional information on Takata matters.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Automotive The following table presents debt in our automotive operations:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Carrying Amount Fair Value Carrying Amount Fair Value

Secured debt $ 303 $ 332 $ 167 $ 165

Unsecured debt 16,929 20,988 13,909 15,247

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Fair value utilizing Level 2 inputs $ 1,750 $ 2,300

Fair value of automotive debt

Available under credit facility agreements

Weighted-average interest rate on outstanding short-term debt(b)

Weighted-average interest rate on outstanding long-term debt(b)

Includes net discount and debt issuance costs of $ 540 million and $ 499 million at December 31, 2019 and 2018 .

Includes coupon rates on debt denominated in various foreign currencies and interest free loans.

Finance lease assets in Property, net were $ 327 million at December 31, 2019 .

Finance lease costs were $ 170 million in the year ended December 31, 2019 .

Finance lease right of use assets obtained in exchange for lease obligations were $ 196 million in the year ended December 31, 2019.

Undiscounted future lease obligations related to finance leases are $ 129 million for the year 2020, $ 156 million in aggregate for the years 2021 to 2024 and $ 354 million thereafter, with imputed interest of $ 329 million at December 31, 2019 .

The weighted-average discount rate on finance leases was 10.9 % and the weighted-average remaining lease term was 13.7 years at December 31, 2019 .

Payments for finance leases included in Net cash provided by (used in) financing activities were $ 183 million at December 31, 2019.

In January 2019 we executed a new three-year committed unsecured revolving credit facility with an initial borrowing capacity of $ 3.0 billion , reducing to $ 2.0 billion in July 2020.

The facility provides additional financial flexibility and was used in 2019 to fund transformation activities announced in November 2018 for $ 700 million , which we repaid in full in 2019.

In April 2019 we renewed our 364 -day $ 2.0 billion credit facility for an additional 364 -day term.

This facility has been allocated for exclusive use by GM Financial since April 2018.

Available under credit facility agreements(b) $ 18,222 $ 17,285

Weighted-average interest rate on outstanding short-term debt(c) 3.8 % 4.9 %

Weighted-average interest rate on outstanding long-term debt(c) 5.6 % 5.4 %

(a) Includes net discount and debt issuance costs of $ 540 million at December 31, 2020 and 2019.

(b) Excludes our 364 -day, $ 2.0 billion facility designated for exclusive use by GM Financial.

Unsecured debt primarily consists of revolving credit facilities and senior notes.

In March 2020, we borrowed:

(1) $ 3.4 billion against our three-year , $ 4.0 billion facility;

(2) $ 2.0 billion against our three-year , $ 3.0 billion facility, which reduced to $ 2.0 billion in May 2020 ( three-year , $ 2.0 billion transformation facility);

and (3) $ 10.5 billion against our five-year , $ 10.5 billion facility with maturity dates ranging from 2021 to 2023.

We repaid all amounts drawn under the revolving credit facilities as of December 31, 2020.

We did not have any borrowings against our revolving credit facilities at December 31, 2019.

In April 2020, we renewed our 364 -day, $ 2.0 billion facility dedicated for exclusive use by GM Financial for an additional 364 -day term and extended $ 3.6 billion of the three-year , $ 4.0 billion facility for an additional year expiring in April 2022.

The remaining portion will expire in April 2021, unless extended.

As part of the extension of the three-year , $ 4.0 billion facility, we agreed not to execute any share repurchases while we have any outstanding borrowings under the revolving credit facilities, except for the three-year , $ 2.0 billion transformation facility.

In addition, we are restricted from paying dividends on our common shares if outstanding borrowings under the revolving credit facilities exceed $ 5.0 billion, with the exception of the three-year , $ 2.0 billion transformation facility.

In May 2020, we issued $ 4.0 billion in aggregate principal amount of senior unsecured notes with a weighted average interest rate of 6.11 % and maturity dates ranging from 2023 to 2027.

The notes are governed by a sixth supplemental indenture and the same base indenture that governs our existing notes, which contains terms and covenants customary to these types of securities, including a limitation on the amount of certain secured debt we may incur.

The net proceeds from the issuance of these senior unsecured notes provide additional financial flexibility and will be used for general corporate purposes.

In May 2020, we entered into a new unsecured 364 -day, $ 2.0 billion revolving credit facility as an additional source of available liquidity.

In August 2020, we repaid $ 500 million of our floating rate senior unsecured debt upon maturity.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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GM Financial The following table presents debt of GM Financial:

December 31, 2019

December 31, 2018

Carrying Amount

December 31, 2020 December 31, 2019

Carrying Amount Fair Value Carrying Amount Fair Value

Secured debt $ 39,982 $ 40,380 $ 39,959 $ 40,160

Unsecured debt 52,443 54,568 48,979 50,239

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Secured debt consists of revolving credit facilities and securitization notes payable.

Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged Securitized Assets.

Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged assets.

Refer to Note 11 for additional information on GM Financial's involvement with VIEs.

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At the end of the revolving period, if not renewed, the debt of revolving credit facilities will amortize over a defined period.

In the year ended December 31, 2019 GM Financial entered into new or renewed credit facilities with a total net additional borrowing capacity of $ 225 million , which had substantially the same terms as existing debt and GM Financial issued $ 16.2 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 2.75 % and maturity dates ranging from 2022 to 2027 .

In the year ended December 31, 2020, GM Financial renewed revolving credit facilities with total borrowing capacity of $ 21.1 billion and issued $ 24.6 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 1.17 % and maturity dates ranging from 2021 to 2028.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt.

Senior notes outstanding at December 31, 2019 are due beginning in 2020 through 2029 and have a weighted-average interest rate of 3.42 % .

Senior notes outstanding at December 31, 2020 have maturity dates ranging from 2021 to 2030 and have a weighted-average interest rate of 3.25 %.

In the year ended December 31, 2020, GM Financial issued $ 9.2 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 2.93 % and maturity dates ranging from 2023 to 2030.

In January 2020 GM Financial issued $ 1.25 billion in senior notes with an interest rate of 2.90 % due in 2025.

Each of the revolving credit facilities and the indentures governing GM Financial's notes contain terms and covenants including limitations on GM Financial's ability to incur certain liens.

In January 2021, GM Financial issued $ 2.5 billion in senior notes with a weighted average interest rate of 1.69 % and maturity dates ranging from 2026 to 2031.

In January 2021, GM Financial issued CAD $ 500 million in senior notes with an interest rate of 1.75 % due in 2026.

Unsecured credit facilities and other unsecured debt have original maturities of up to four years .

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Years Ended December 31,

2020 2019 2018

Automotive interest expense $ 1,098 $ 782 $ 655

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The following table summarizes contractual maturities including finance leases at December 31, 2020:

Automotive Financing(a)

Secured debt, credit facilities and other unsecured debt are based on expected payoff date.

Senior notes principal amounts are based on maturity.

Automotive Automotive Financing Total

2021 $ 1,276 $ 35,742 $ 37,018

2022 137 19,312 19,449

2023 2,593 15,267 17,860

2024 86 7,808 7,894

2025 2,578 6,609 9,187

Thereafter 11,339 7,277 18,616

$ 18,009 $ 92,015 $ 110,024

Compliance with Debt Covenants Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements.

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Automotive The following table presents the notional amounts of derivative financial instruments in our automotive operations:

Fair Value Level

December 31, 2019

December 31, 2018

Fair Value Level December 31, 2020 December 31, 2019

Derivatives not designated as hedges(a)

Foreign currency 2 $ 2,195 $ 5,075

Commodity 2 341 806

PSA Warrants(b) 2 49 45

Total derivative financial instruments $ 2,585 $ 5,926

The fair value of these derivative instruments at December 31, 2019 and 2018 and the gains/losses included in our consolidated income statements for the years ended December 31, 2019 , 2018 and 2017 were insignificant, unless otherwise noted.

The fair value of the PSA warrants located in Other assets was $ 964 million and $ 827 million at December 31, 2019 and 2018 .

We recorded gains in Interest income and other non-operating income, net of $ 154 million and $ 116 million for the years ended December 31, 2019 and 2018 , and an insignificant amount for the year ended December 31, 2017 .

(a) The fair value of these derivative instruments at December 31, 2020 and 2019 and the gains/losses included in our consolidated income statements for the years ended December 31, 2020, 2019 and 2018 were insignificant, unless otherwise noted.

(b) The fair value of the PSA warrants located in Other assets was $ 1.1 billion and $ 964 million at December 31, 2020 and 2019.

We recorded gains in Interest income and other non-operating income, net of $ 139 million, $ 154 million and $ 116 million for the years ended December 31, 2020, 2019 and 2018.

As a result of the merger of PSA Group and Fiat Chrysler Automobiles N.V.

on January 16, 2021, our 39.7 million warrants in PSA Group will convert into 69.2 million common shares of Stellantis N.V.

upon exercise.

These warrants will continue to be governed by the same terms and conditions that were applicable prior to the merger.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

GM Financial The following table presents the notional amounts of GM Financial's derivative financial instruments:

Fair Value Level

December 31, 2019

December 31, 2018

Fair Value of Assets

Fair Value of Liabilities

Fair Value of Assets

Fair Value of Liabilities

GM Financial The following table presents the gross fair value amounts of GM Financial's derivative financial instruments and the associated notional amounts:

Fair Value Level December 31, 2020 December 31, 2019

Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities

Derivatives designated as hedges(a)

Fair value hedges

Interest rate swaps(b)

Interest rate swaps 2 $ 10,064 $ 463 $ 13 $ 9,458 $ 234 $ 23

Foreign currency swaps 2 1,958 128 9 1,796 22 71

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Interest rate contracts 2 110,997 954 576 92,400 340 300

Total derivative financial instruments(c)

The gains/losses included in our consolidated income statements and statements of comprehensive income for the years ended December 31, 2019 , 2018 and 2017 were insignificant, unless otherwise noted.

Total derivative financial instruments(b) $ 129,566 $ 1,823 $ 672 $ 108,673 $ 636 $ 519

(a) The gains/losses included in our consolidated income statements and statements of comprehensive income for the years ended December 31, 2020 , 2019 and 2018 were insignificant, unless otherwise noted.

Amounts accrued for interest payments in a net receivable position are included in Other assets.

Amounts accrued for interest payments in a net payable position are included in Other liabilities.

The gains included in GM Financial interest, operating, and other expenses were $ 355 million and an insignificant amount for the years ended December 31, 2019 and 2018.

GM Financial held $ 210 million and an insignificant amount of collateral from counterparties available for netting against GM Financial's asset positions, and posted an insignificant amount and $ 451 million of collateral to counterparties available for netting against GM Financial's liability positions at December 31, 2019 and 2018 .

(b) GM Financial held $ 728 million and $ 210 million of collateral from counterparties available for netting against GM Financial's asset positions, and posted an insignificant amount of collateral to counterparties available for netting against GM Financial's liability positions at December 31, 2020 and 2019.

The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves.

The following amounts were recorded in the consolidated balance sheets related to items designated and qualifying as hedged items in fair value hedging relationships:

December 31, 2019

December 31, 2018

Carrying Amount of Hedged Items

Cumulative Amount of Fair Value Hedging Adjustments(a)

Carrying Amount of Hedged Items

Cumulative Amount of Fair Value Hedging Adjustments(a)

GM Financial long-term debt(b)

Includes an insignificant amount and $ 247 million of amortization remaining on hedged items for which hedge accounting has been discontinued at December 31, 2019 and 2018 .

The gains/losses for hedged items – interest rate swaps included in GM Financial interest, operating, and other expenses were a loss of $ 569 million and an insignificant amount for the years ended December 31, 2019 and 2018.

December 31, 2020 December 31, 2019

Carrying Amount of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments(a) Carrying Amount of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments(a)

Short-term unsecured debt $ 4,858 $ ( 69 ) $ 996 $ 4

Long-term unsecured debt 18,457 ( 670 ) 19,401 ( 81 )

GM Financial unsecured debt $ 23,315 $ ( 739 ) $ 20,397 $ ( 77 )

(a) Includes $ 200 million of unamortized gains and an insignificant amount of amortization remaining on hedged items for which hedge accounting has been discontinued at December 31, 2020 and 2019.

Pensions and Other Postretirement Benefits

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Years Ended December 31,

2020 2019 2018

hourly and salaried $ 68 $ 83 $ 76

396 532 1,624

Total $ 464 $ 615 $ 1,700

We expect to contribute approximately $ 70 million to our U.S.

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Other Remeasurements The SOA issued mortality improvement tables in the three months ended December 31, 2020.

We determined our current mortality improvement assumptions are appropriate to measure our December 31, 2019 U.S.

pension and OPEB plans obligations.

In 2018 we reviewed our mortality experience and updated our base mortality assumptions in the U.S.

We incorporated these SOA mortality improvement tables into the December 31, 2020 measurement of our U.S.

pension and OPEB plans' benefit obligations.

The change in these assumptions decreased the December 31, 2020 U.S.

pension and OPEB plans' obligations by $ 686 million.

We incorporated the mortality improvement tables issued by the SOA in the three months ended December 31, 2018, and updated our base mortality assumptions in the U.S.

This change in assumption decreased the December 31, 2018 U.S.

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Pension and OPEB Obligations and Plan Assets

Year Ended December 31, 2019

Year Ended December 31, 2018

Pension Benefits

Global OPEB Plans

Pension Benefits

Global OPEB Plans

Year Ended December 31, 2020 Year Ended December 31, 2019

Pension Benefits Global OPEB Plans Pension Benefits Global OPEB Plans

Change in benefit obligations

Beginning benefit obligation $ 64,684 $ 21,398 $ 6,304 $ 61,190 $ 19,904 $ 5,744

Service cost 177 133 19 179 120 17

Interest cost 1,716 362 173 2,264 456 220

Actuarial (gains) losses

Actuarial losses 4,757 1,506 551 6,444 1,653 641

Benefits paid ( 4,600 ) ( 1,132 ) ( 408 ) ( 4,753 ) ( 1,234 ) ( 395 )

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Non-current liabilities ( 5,325 )

( 7,577 ) ( 6,277 ) ( 5,377 ) ( 6,793 ) ( 5,935 )

Net amount recorded $ ( 5,391 ) $ ( 6,961 ) $ ( 6,656 ) $ ( 5,445 ) $ ( 6,437 ) $ ( 6,304 )

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Total recorded in Accumulated other comprehensive loss $ ( 3,245 ) $ ( 5,183 ) $ ( 1,803 ) $ ( 1,966 ) $ ( 4,766 ) $ ( 1,337 )

The following table summarizes the total accumulated benefit obligations (ABO), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets:

December 31, 2019

December 31, 2018

In the years ended December 31, 2020 and 2019, the actuarial losses on the benefit obligations were primarily due to decreases in discount rates for all plans.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the total accumulated benefit obligations (ABO), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the projected benefit obligation (PBO) and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets:

December 31, 2020 December 31, 2019

ABO $ 66,448 $ 20,721 $ 64,669 $ 21,319

Plans with ABO in excess of plan assets

ABO $ 66,448 $ 12,042 $ 64,669 $ 10,996

Fair value of plan assets $ 61,077 $ 4,185 $ 59,239 $ 3,940

Plans with PBO in excess of plan assets

PBO $ 66,468 $ 12,128 $ 64,684 $ 11,079

Fair value of plan assets $ 61,077 $ 4,186 $ 59,239 $ 3,940

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the components of net periodic pension and OPEB expense along with the assumptions used to determine benefit obligations:

Year Ended December 31, 2019

Year Ended December 31, 2018

Year Ended December 31, 2017

Pension Benefits

Global OPEB Plans

Pension Benefits

Global OPEB Plans

Pension Benefits

Global OPEB Plans

Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018

Pension Benefits Global OPEB Plans Pension Benefits Global OPEB Plans Pension Benefits Global OPEB Plans

Components of expense

Service cost $ 251 $ 145 $ 19 $ 393 $ 132 $ 17 $ 330 $ 163 $ 20

Interest cost 1,716 362 173 2,264 456 220 2,050 464 195

Expected return on plan assets ( 3,267 ) ( 675 ) — ( 3,483 ) ( 786 ) — ( 3,890 ) ( 825 ) —

Amortization of net actuarial (gains) losses

Amortization of net actuarial losses 16 171 74 11 122 30 10 144 54

Curtailments, settlements and other 17 241 ( 8 ) 21 142 ( 23 ) ( 19 ) 43 ( 19 )

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Discount rate 2.84 % 2.80 % 3.00 % 3.92 % 3.36 % 4.07 % 3.19 % 2.99 % 3.29 %

Expected rate of return on plan assets

The rate of compensation increase does not have a significant effect on our U.S.

Expected rate of return on plan assets 5.88 % 4.96 % N/A 6.37 % 5.76 % N/A 6.61 % 6.09 % N/A

(a) The rate of compensation increase and the cash balance interest crediting rates do not have a significant effect on our U.S.

pension and OPEB plans.

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Refer to Note 19 for additional information.

pension plan service cost includes administrative expenses and Pension Benefit Guarantee Corporation premiums of $ 214 million and $ 121 million for the years ended December 31, 2019 and 2018 .

pension plan service cost includes administrative expenses and Pension Benefit Guarantee Corporation premiums were insignificant, $ 214 million and $ 121 million for the years ended December 31, 2020, 2019 and 2018.

Weighted-average assumptions used to determine net expense are determined at the beginning of the period and updated for remeasurements.

pension plan administrative expenses included in service cost were insignificant in the years ended December 31, 2020, 2019 and 2018.

Estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2020 based on December 31, 2019 plan measurements are $ 258 million , primarily consisting of amortization of the net actuarial loss in the non-U.S.

pension plans.

In the three months ended December 31, 2020, we completed a $ 1.5 billion annuity purchase for salaried retirees in Canada.

This resulted in a non-operating pension settlement charge of $ 130 million.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Investment Strategies and Long-Term Rate of Return Detailed periodic studies are conducted by our internal asset management group as well as outside actuaries and are used to determine the long-term strategic mix among asset classes, risk mitigation strategies and the expected long-term return on asset assumptions for the U.S.

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The strategic asset mixes for U.S.

defined benefit pension plans are increasingly designed to satisfy the competing objectives of improving funded positions

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(market value of assets equal to or greater than the present value of the liabilities) and mitigating the possibility of a deterioration in funded status.

defined benefit pension plans are increasingly designed to satisfy the competing objectives of improving funded positions (market value of assets equal to or greater than the present value of the liabilities) and mitigating the possibility of a deterioration in funded status.

Derivatives may be used to provide cost effective solutions for rebalancing investment portfolios, increasing or decreasing exposure to various asset classes and for mitigating risks, primarily interest rate, equity and currency risks.

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defined benefit pension plans:

December 31, 2019

December 31, 2018

Primarily includes private equity, real estate and absolute return strategies which mainly consist of hedge funds.

December 31, 2020 December 31, 2019

Equity 12 % 16 % 12 % 14 %

Debt 64 % 66 % 64 % 67 %

Other(a) 24 % 18 % 24 % 19 %

Total 100 % 100 % 100 % 100 %

(a) Primarily includes private equity, real estate and absolute return strategies which mainly consist of hedge funds.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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defined benefit pension plan assets by asset class:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Pension Plan Assets

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Corporate and other debt securities — 26,475 — 26,475 — 24,809 — 24,809

Other investments, net(b)

Other investments, net(b)(c) ( 834 ) ( 8 ) 427 ( 415 ) ( 47 ) 25 401 379

Net plan assets subject to leveling $ 6,595 $ 39,698 $ 428 46,721 $ 6,185 $ 38,696 $ 402 45,283

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Total plan assets measured at net asset value 13,732 13,466

Other plan assets, net(c)

Other plan assets, net(d) 624 490

Net plan assets $ 61,077 $ 59,239

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Pension Plan Assets

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Corporate and other debt securities — 2,762 — 2,762 — 3,230 — 3,230

Other investments, net(b)(d)

Other investments, net(b)(e) 31 ( 79 ) 127 79 ( 5 ) ( 107 ) 248 136

Net plan assets subject to leveling $ 603 $ 5,861 $ 127 6,591 $ 484 $ 7,051 $ 248 7,783

4 unchanged sentences

Total plan assets measured at net asset value 7,276 7,101

Other plan assets (liabilities), net(c)

Other plan assets (liabilities), net(d) ( 21 ) 77

Net plan assets $ 13,846 $ 14,961

Includes U.S.

(a) Includes U.S.

and sovereign government and agency issues.

Includes net derivative assets (liabilities).

Cash held by the plans, net of amounts receivable/payable for unsettled security transactions and payables for investment manager fees, custody fees and other expenses.

Level 2 Other investments, net includes Canadian reverse repurchase agreements.

(b) Includes net derivative assets (liabilities).

(c) Level 1 Other investments, net includes derivative liabilities approximating $ 1.0 billion related to equity option and futures contracts at December 31, 2020.

(d) Cash held by the plans, net of amounts receivable/payable for unsettled security transactions and payables for investment manager fees, custody fees and other expenses.

(e) Level 2 Other investments, net includes Canadian reverse repurchase agreements.

The activity attributable to U.S.

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The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to estimated future employee service:

Pension Benefits

Global OPEB Plans

Pension Benefits Global OPEB Plans

Plans Non-U.S.

2021 $ 4,821 $ 1,172 $ 379

2022 $ 4,614 $ 1,070 $ 374

2023 $ 4,495 $ 1,038 $ 369

2024 $ 4,387 $ 1,015 $ 364

2025 $ 4,278 $ 1,000 $ 361

2026 - 2030 $ 19,469 $ 4,673 $ 1,761

Commitments and Contingencies

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We accrue for matters when we believe that losses are probable and can be reasonably estimated.

At December 31, 2019 and 2018 , we had accruals of $ 1.3 billion in Accrued liabilities and Other liabilities.

At December 31, 2020 and 2019, we had accruals of $ 1.2 billion and $ 1.3 billion in Accrued liabilities and Other liabilities.

In many matters, it is inherently difficult to determine whether loss is probable or reasonably possible or to estimate the size or range of the possible loss.

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Proceedings Related to Ignition Switch Recall and Other Recalls In 2014 we announced various recalls relating to safety and other matters.

Those recalls included recalls to repair ignition switches that could under certain circumstances unintentionally

Those recalls included recalls to repair ignition switches that could under certain circumstances

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

move from the “run” position to the “accessory” or “off” position with a corresponding loss of power, which could in turn prevent airbags from deploying in the event of a crash.

unintentionally move from the “run” position to the “accessory” or “off” position with a corresponding loss of power, which could in turn prevent airbags from deploying in the event of a crash.

Appellate Litigation Regarding Successor Liability Ignition Switch Claims In 2016, the U.S.

Court of Appeals for the Second Circuit held that the 2009 order of the Bankruptcy Court approving the sale of substantially all of the assets of MLC to GM free and clear of, among other things, claims asserting successor liability for obligations owed by MLC could not be enforced to bar claims against GM asserted by either plaintiffs who purchased used vehicles after the sale or against purchasers who asserted claims relating to the ignition switch defect, including pre-sale personal injury claims and economic-loss claims.

Economic-Loss Claims We are aware of over 100 putative class actions pending against GM in U.S.

and Canadian courts alleging that consumers who purchased or leased vehicles manufactured by GM or MLC, formerly known as General Motors Corporation, had been economically harmed by one or more of the 2014 recalls and/or the underlying vehicle conditions associated with those recalls (economic-loss cases).

Court of Appeals for the Second Circuit held that the 2009 order of the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) approving the sale of substantially all of the assets of Motors Liquidation Company (MLC) to GM free and clear of, among other things, claims asserting successor liability for obligations owed by MLC could not be enforced to bar claims against GM asserted by either plaintiffs who purchased used vehicles after the sale or against purchasers who asserted claims relating to the ignition switch defect, including pre-sale personal injury claims and economic-loss claims.

Economic-Loss Claims We are aware of over 100 putative class actions that were filed against GM in U.S.

and Canadian courts alleging that consumers who purchased or leased vehicles manufactured by GM or MLC had been economically harmed by one or more of the 2014 recalls and/or the underlying vehicle conditions associated with those recalls (economic-loss cases).

In general, these economic-loss cases seek recovery for purported compensatory damages, such as alleged benefit-of-the-bargain damages or damages related to alleged diminution in value of the vehicles, as well as punitive damages, injunctive relief and other relief.

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In September 2018, the Southern District granted our motion to dismiss claims for lost personal time (in 41 out of 47 jurisdictions) and certain unjust enrichment claims, but denied our motion to dismiss plaintiffs' economic loss claims in 27 jurisdictions under the "manifest defect" rule.

Significant summary judgment, class certification, and expert evidentiary motions remain at issue.

In August 2019, the Southern District granted our motion for summary judgment on plaintiffs’ economic loss “benefit of the bargain” damage claims (the August 2019 Opinion).

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In December 2019, the Southern District denied plaintiffs' motion for reconsideration of the August 2019 Opinion, but granted the plaintiffs' motion for certification of an interlocutory appeal.

Plaintiffs filed their petition requesting interlocutory review with the Second Circuit Court of Appeals, and GM filed its opposition in January 2020.

On April 1, 2020, the Second Circuit Court of Appeals (the Second Circuit) granted the bellwether plaintiffs' petition seeking leave to appeal the August 2019 Opinion.

On April 15, 2020, the bellwether plaintiffs and GM filed a Stipulation to withdraw the appeal from the Second Circuit based on the class settlement agreement described below.

In September 2019, GM filed an updated motion for summary judgment on plaintiffs’ remaining economic loss claims that were not addressed in the Southern District’s August 2019 Opinion and renewed its evidentiary motion seeking to strike the opinions of plaintiff’s expert on plaintiffs’ alleged “lost time” damages associated with having the recall repairs performed.

Personal Injury Claims We also are aware of several hundred actions pending in various courts in the U.S.

and Canada alleging injury or death as a result of defects that may be the subject of the 2014 recalls (personal injury cases).

In general, these cases seek recovery for purported compensatory damages, punitive damages and/or other relief.

Since 2016, several bellwether trials of personal injury cases have taken place in the Southern District and in a Texas state court, which is administering a Texas state multi-district litigation.

None of these trials resulted in a finding of liability against GM.

Contingently Issuable Shares Under the Amended and Restated Master Sale and Purchase Agreement between GM and MLC,

In March 2020, GM, plaintiffs and the MLC GUC Trust (GUC Trust) reached a settlement agreement (Class Settlement Agreement) to resolve on a national basis the economic loss claims of the proposed settlement class and proposed sub-classes, consisting of consumers who purchased or leased GM vehicles covered by the seven 2014 safety recalls at issue in the Southern District and the Bankruptcy Court.

The proposed Class Settlement Agreement provides a common fund of approximately $ 120 million for settlement class members, of which GM will fund approximately $ 70 million and the GUC Trust will fund the remaining $ 50 million.

GM will also pay attorneys’ fees and costs that may be awarded by the Southern District to plaintiffs’ counsel up to a maximum of $ 35 million.

In April 2020, the Avoidance Action Trust (AAT), GM and plaintiffs reached a

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GM may be obligated to issue Adjustment Shares of our common stock if allowed general unsecured claims against the GUC Trust, as estimated by the Bankruptcy Court, exceed $ 35.0 billion .

The maximum number of Adjustment Shares issuable is 30 million shares (subject to adjustment to take into account stock dividends, stock splits and other transactions), which amounts to approximately $ 1.0 billion based on the GM share price as of January 24, 2020 .

The GUC Trust stated in public filings that allowed general unsecured claims were approximately $ 32.1 billion as of September 30, 2019.

In February 2019, the GUC Trust and certain personal injury and economic-loss plaintiffs filed a motion with the Bankruptcy Court requesting approval of a settlement to obtain the maximum number of Adjustment Shares.

In September 2019, the GUC Trust advised the Bankruptcy Court that it was formally terminating the February 2019 proposed class settlement with plaintiffs because it was no longer viable given the August 2019 Opinion and further briefing was moot.

tentative settlement under which the AAT will pay an insignificant amount and will be added as a settling party to the Class Settlement Agreement.

During April and May 2020, the Southern District entered orders granting preliminary approval of the Class Settlement Agreement.

In December 2020, the Southern District conducted a final fairness hearing and issued an order granting final approval of the Class Settlement Agreement in its entirety.

The order granting final approval became final, effective and binding in January 2021.

The deadline for class members to file claims is April 2021.

Contingently Issuable Shares Under the Amended and Restated Master Sale and Purchase Agreement between GM and MLC, GM was obligated to issue Adjustment Shares of our common stock if allowed general unsecured claims against the GUC Trust, as estimated by the Bankruptcy Court, exceed $ 35.0 billion.

In March 2020, in conjunction with the Class Settlement Agreement, the GUC Trust filed a motion in the Bankruptcy Court seeking approval to enter into and take actions necessary to execute the Class Settlement Agreement, and seeking Bankruptcy Court authorization permitting the GUC Trust to distribute $ 300 million of GUC Trust assets to its unitholders and entry into a mutual release agreement with GM that would release GM from any and all claims, including any that would require GM to issue any Adjustment Shares.

Bankruptcy Court approval of the GUC Trust motion is a condition precedent to preliminary approval of the Class Settlement Agreement by the Southern District.

In April 2020, the Bankruptcy Court entered an order approving the GUC Trust's motion in its entirety.

In May 2020, the approval and the mutual release agreement became binding and enforceable and GM was fully released from its potential Adjustment Shares obligation.

Personal Injury Claims We also are aware of less than one hundred active personal injury actions, exclusive of matters subject to settlements in principal, pending in various courts in the U.S.

and Canada alleging injury or death as a result of defects that may be the subject of the 2014 recalls.

In general, these cases seek recovery for purported compensatory damages, punitive damages and/or other relief.

Since 2016, several bellwether trials of these cases have taken place in the Southern District and in a Texas state court, which is administering a Texas state multi-district litigation.

None of these trials resulted in a finding of liability against GM.

Government Matters In connection with the 2014 recalls, we have from time to time received subpoenas and other requests for information related to investigations by agencies or other representatives of U.S.

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GM Korea appealed to the Supreme Court of the Republic of Korea (Korean Supreme Court).

In 2014 the Korean Supreme Court largely agreed with GM's legal arguments and remanded the case to the Seoul High Court for consideration consistent with earlier Korean Supreme Court precedent holding that while fixed bonuses should be included in the calculation of Ordinary Wages, claims for retroactive application of this rule would be barred under certain circumstances.

In 2014 the Korean Supreme Court largely agreed with GM Korea's legal arguments and remanded the case to the Seoul High Court for consideration consistent with earlier Korean Supreme Court precedent holding that while fixed bonuses should be included in the calculation of Ordinary Wages, claims for retroactive application of this rule would be barred under certain circumstances.

In 2015, on reconsideration, the Seoul High Court held in GM Korea's favor, after which the plaintiffs appealed to the Korean Supreme Court.

The Korean Supreme Court has not yet rendered a decision.

We estimate our reasonably possible loss in excess of amounts accrued to be approximately $ 600 million at December 31, 2019 .

Both the scope of claims asserted and GM Korea's assessment of any or all of the individual claim elements may change if new information becomes available or the legal or regulatory frameworks change.

In July 2020, the Korean Supreme Court held in GM Korea's favor.

In light of this decision, we believe the probability that we will incur a material loss is remote and we estimate our loss in excess of amounts accrued is insignificant at December 31, 2020.

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GM Korea is also party to litigation with current and former salaried employees over allegations relating to Ordinary Wages regulation and whether to include fixed bonuses in the calculation of Ordinary Wages.

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GM Korea is also party to litigation with current and former subcontract workers over allegations that they are entitled to the same wages and benefits provided to full-time employees, and to be hired as full-time employees.

In May 2018, the Korean labor authorities issued an adverse administrative order finding that GM Korea must hire certain current subcontract workers as full-time employees.

GM Korea appealed that order.

In May 2018 and September 2020, the Korean labor authorities issued adverse administrative orders finding that GM Korea must hire certain current subcontract workers as full-time employees.

GM Korea appealed the May 2018 order and plans to appeal the September 2020 order.

In June 2020, the Seoul High Court ruled against GM Korea in one of the subcontract worker claims.

GM Korea has appealed this decision to the Korean Supreme Court.

At December 31, 2020, our accrual covering certain asserted claims and claims that we believe are probable of assertion and for which liability is probable was approximately $ 240 million.

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We are currently unable to estimate any possible loss or range of loss that may result from additional claims that may be asserted by former subcontract workers.

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GM Brazil Indirect Tax Claim During the year ended December 31, 2019, the Superior Judicial Court of Brazil rendered favorable decisions on three cases brought by GM Brazil, each challenging whether a certain state value-added tax should be included in the calculation of federal gross receipts taxes.

The decisions will allow the Company the right to recover, through offset of federal tax liabilities, amounts collected by the government from August 2001 to February 2017.

As a result of the favorable decisions, we recorded pre-tax recoveries of $ 1.4 billion in Automotive and other cost of sales in the year ended December 31, 2019.

Timing on realization of these recoveries is dependent upon the timing of administrative approvals and generation of federal tax liabilities eligible for offset.

The Brazilian IRS has filed a Motion of Clarification on this matter with the Brazilian Supreme Court, which could be decided as early as April 2020.

In addition, we expect third parties to make claims on some or all of the pre-tax recoveries, which GM intends to defend against.

GM Brazil Indirect Tax Claim In 2019, the Superior Court of Brazil rendered favorable decisions on three cases brought by GM Brazil challenging whether a certain state value-added tax should be included in the calculation of federal gross receipt s taxes.

Those decisions granted the Company the right to recover, through offset of federal tax liabilities, certain amounts collected by the government between August 2001 and February 2017.

As a result, GM Brazil recorded pre-tax recoveries of $ 1.4 billion i n Automotive and other cost of sales in the year ended December 31, 2019.

Realization of these recoveries depends on the timing of administrative approvals and generation of federal tax liabilities eligible for offset.

The Brazilian IRS has filed a Motion of Clarification on this matter with the Brazilian Supreme Court, which motion is awaiting decision.

In addition, we expect third parties to make claims on some or all of the pre-tax recoveries, against which GM intends to defend.

Other Litigation-Related Liability and Tax Administrative Matters Various other legal actions, including class actions, governmental investigations, claims and proceedings, are pending against us or our related companies or joint ventures, including matters arising out of alleged product defects;

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and environmental protection laws, including laws regulating air emissions, water discharges, waste management and environmental remediation from stationary sources.

There are several putative class actions pending against GM in federal courts in the U.S., in the Provincial Courts in Canada and in Israel alleging that various vehicles sold including model year 2011-2016 Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles, violate federal, state and foreign emission standards.

GM has also faced a series of additional lawsuits based primarily on allegations in the Duramax suit, including putative shareholder class actions claiming violations of federal securities law and a shareholder demand lawsuit.

The securities lawsuits have been voluntarily dismissed by the plaintiffs in those actions.

There are several putative class actions pending against GM in federal courts in the U.S.

and in the Provincial Courts in Canada alleging that various vehicles sold, including model year 2011-2016 Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles, violate federal, state and foreign emission standards.

We are unable to estimate any reasonably possible loss or range of loss that may result from these actions.

GM has also faced a series of additional lawsuits in the U.S.

based on these allegations, including putative shareholder class actions claiming violations of federal securities law and a shareholder demand lawsuit.

The securities lawsuits have been voluntarily dismissed by the plaintiffs in those actions.

We believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated.

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Some of the matters may involve compensatory, punitive or other treble damage claims, environmental remediation programs or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that could not be reasonably estimated at December 31, 2020.

We believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated.

For indirect tax-related matters we estimate our reasonably possible loss in excess of amounts accrued to be up to approximately $ 800 million at December 31, 2019 .

Takata Matters In May 2016, NHTSA issued an amended consent order requiring Takata to file DIRs for previously unrecalled front airbag inflators that contain phased-stabilized ammonium nitrate-based propellant without a moisture absorbing desiccant on a multi-year, risk-based schedule through 2019 impacting tens of millions of vehicles produced by numerous automotive manufacturers.

NHTSA concluded that the likely root cause of the rupturing of the airbag inflators is a function of time, temperature cycling and environmental moisture.

Although we do not believe there is a safety defect at this time in any unrecalled GM vehicles within scope of the Takata DIRs, in cooperation with NHTSA we have filed Preliminary DIRs covering certain of our GMT900 vehicles, which are full-size pickup trucks and SUVs.

We have also filed petitions for inconsequentiality with respect to the vehicles subject to those Preliminary DIRs.

NHTSA has consolidated our petitions and will rule on them at the same time.

While these petitions have been pending, we have provided NHTSA with the results of our long-term studies and the studies performed by third-party experts, all of which form the basis for our determination that the inflators in these vehicles do not present an unreasonable risk to safety and that no repair should ultimately be required.

We believe that appropriate accruals have been established for losses that are

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We believe these vehicles are currently performing as designed and our inflator aging studies and field data support the belief that the vehicles' unique design and integration mitigates against inflator propellant degradation and rupture risk.

For example, the airbag inflators used in the vehicles are a variant engineered specifically for our vehicles, and include features such as greater venting, unique propellant wafer configurations, and machined steel end caps.

The inflators are packaged in the instrument panel in such a way as to minimize exposure to moisture from the climate control system.

Also, these vehicles have features that minimize the maximum temperature to which the inflator will be exposed, such as larger interior volumes and standard solar absorbing windshields and side glass.

Accordingly, no warranty provision has been made for any repair associated with our vehicles subject to the Preliminary DIRs and amended consent order.

However, in the event we are ultimately obligated to repair the vehicles subject to current or future Takata DIRs under the amended consent order in the U.S., we estimate a reasonably possible impact to GM of approximately $ 1.2 billion .

probable and can be reasonably estimated.

For indirect tax-related matters we estimate our reasonably possible loss in excess of amounts accrued to be up to approximately $ 750 million at December 31, 2020.

Takata Matters In May 2016, NHTSA issued an amended consent order requiring Takata to file defect information reports (DIRs) for previously unrecalled front airbag inflators that contain phased-stabilized ammonium nitrate-based propellant without a moisture absorbing desiccant on a multi-year, risk-based schedule through 2019 impacting tens of millions of vehicles produced by numerous automotive manufacturers.

NHTSA concluded that the likely root cause of the rupturing of the airbag inflators is a function of time, temperature cycling and environmental moisture.

In cooperation with NHTSA we filed Preliminary DIRs covering certain of our GMT900 vehicles, which are full-size pickup trucks and SUVs, and petitions for inconsequentiality with respect to the vehicles subject to those Preliminary DIRs.

In November 2020, NHTSA denied GM's petitions for inconsequentiality relating to the Takata passenger-side inflators in certain GMT900 vehicles.

NHTSA has directed that we replace the airbag inflators in the vehicles in question, and we have decided not to contest NHTSA's decision.

While we have already begun the process of executing the recall, given the number of vehicles in this population, the recall will take several years to be completed.

Accordingly, in the three months ended December 31, 2020, we recorded a warranty accrual of $ 1.1 billion for the expected costs of complying with the recall remedy.

GM has recalled certain vehicles sold outside of the U.S.

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We continue to monitor the international situation.

There are several putative class actions that have been filed against GM in federal courts in the U.S., in the Provincial Courts in Canada, Mexico and Israel arising out of allegations that airbag inflators manufactured by Takata are defective.

At this early stage of these proceedings, we are unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the amounts or range of possible loss.

There are several putative class actions that have been filed against GM, including in the federal courts in the U.S., in the Provincial Courts in Canada, and in Mexico and Israel, arising out of allegations that airbag inflators manufactured by Takata are defective.

At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of possible loss.

Product Liability We recorded liabilities of $ 589 million and $ 544 million in Accrued liabilities and Other liabilities at December 31, 2020 and 2019, for the expected cost of all known product liability claims, plus an estimate of the expected cost for product liability claims that have already been incurred and are expected to be filed in the future for which we are self-insured.

It is reasonably possible that our accruals for product liability claims may increase in future periods in material amounts, although we cannot estimate a reasonable range of incremental loss based on currently available information.

Other than claims relating to the ignition switch recalls discussed above, we believe that any judgment against us involving our and General Motors Corporation products for actual damages will be adequately covered by our recorded accruals and, where applicable, excess liability insurance coverage.

Other than claims relating to the ignition switch recalls discussed above, we believe that any judgment against us involving our and MLC products for actual damages will be adequately covered by our recorded accruals and, where applicable, excess liability insurance coverage.

Guarantees We enter into indemnification agreements for liability claims involving products manufactured primarily by certain joint ventures.

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Refer to Note 22 for additional information on our indemnification obligations to PSA Group under the Master Agreement (the Agreement).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Credit Cards Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles.

At December 31, 2019 and 2018 , our redemption liability was insignificant, our deferred revenue was $ 253 million and $ 247 million , and qualified cardholders had rebates available, net of deferred program revenue, of $ 1.4 billion .

At December 31, 2020 and 2019, our redemption liability was insignificant, our deferred revenue was $ 252 million and $ 253 million, and qualified cardholders had rebates available, net of deferred program revenue, of $ 1.3 billion and $1.4 billion.

Our redemption liability and deferred revenue are recorded in Accrued liabilities and Other liabilities.

Operating Leases Our portfolio of leases primarily consists of real estate office space, manufacturing and warehousing facilities, land and equipment.

Certain leases contain escalation clauses and renewal or purchase options, and generally our leases have no

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

residual value guarantees or material covenants.

Certain leases contain escalation clauses and renewal or purchase options, and generally our leases have no residual value guarantees or material covenants.

We exclude leases with a term of one year or less from our balance sheet, and do not separate non-lease components from our real estate leases.

Rent expense under operating leases was $ 354 million in the year ended December 31, 2019.

Prior to adoption of ASU 2016-02, rent expense under operating leases was $ 300 million and $ 284 million in the years ended December 31, 2018 and 2017.

Variable lease costs were insignificant in the year ended December 31, 2019 .

At December 31, 2019 , operating lease right of use assets in Other assets were $ 1.1 billion , operating lease liabilities in Accrued liabilities were $ 239 million and non-current operating lease liabilities in Other liabilities were $ 1.0 billion .

Operating lease right of use assets obtained in exchange for lease obligations were $ 497 million in the year ended December 31, 2019 .

Rent expense under operating leases was $ 317 million and $ 354 million in the years ended December 31, 2020 and 2019.

Prior to adoption of ASU 2016-02, "Leases", rent expense under operating leases was $ 300 million in the year ended December 31, 2018.

Variable lease costs were insignificant in the years ended December 31, 2020 and 2019.

At December 31, 2020 and 2019, operating lease right of use assets in Other assets were $ 1.0 billion and $ 1.1 billion, operating lease liabilities in Accrued liabilities were $ 209 million and $ 239 million and non-current operating lease liabilities in Other liabilities were $ 969 million and $ 1.0 billion.

Operating lease right of use assets obtained in exchange for lease obligations were $ 222 million and $ 497 million in the years ended December 31, 2020 and 2019.

Our undiscounted future lease obligations related to operating leases having initial terms in excess of one year are $ 251 million, $ 205 million, $ 196 million, $ 151 million, $ 122 million and $ 437 million for the years 2021, 2022, 2023, 2024, 2025 and thereafter, with imputed interest of $ 184 million as of December 31, 2020.

The weighted average discount rate was 4.2 % and the weighted-average remaining lease term was 7.2 years at December 31, 2019 .

Payments for operating leases included in Net cash provided by (used in) operating activities were $ 337 million in the year ended December 31, 2019 .

Lease agreements that have not yet commenced were insignificant at December 31, 2019.

The weighted average discount rate was 4.0 % and 4.2 % and the weighted-average remaining lease term was 7.4 years and 7.2 years at December 31, 2020 and 2019.

Payments for operating leases included in Net cash provided by (used in) operating activities were $ 309 million and $ 337 million in the years ended December 31, 2020 and 2019.

Lease agreements that have not yet commenced were $ 150 million at December 31, 2020.

Years Ended December 31,

2020 2019 2018

income $ 6,881 $ 3,826 $ 4,433

income 540 2,342 1,953

Income before income taxes and equity income $ 7,421 $ 6,168 $ 6,386

Years Ended December 31,

2020 2019 2018

Current income tax expense (benefit)

federal $ 84 $ 42 $ ( 104 )

state and local 272 102 113

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Deferred income tax expense (benefit)

federal 632 ( 145 ) ( 578 )

state and local ( 15 ) 3 250

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income taxes which may be incurred on the reversal of our basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed to be indefinitely reinvested.

Taxes have not been provided on basis differences in investments primarily as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $ 3.2 billion and $ 2.9 billion at December 31, 2019 and 2018 .

Additional basis differences related to investments in nonconsolidated China JVs exist of $ 4.1 billion at December 31, 2020 and 2019 as a result of fresh-start reporting.

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Years Ended December 31,

2020 2019 2018

Income tax expense at U.S.

federal statutory income tax rate $ 1,558 $ 1,295 $ 1,341

State and local tax expense (benefit)

State and local tax expense 219 117 282

income taxed at other than the U.S.

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The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Deferred tax assets

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Net deferred tax assets $ 23,482 $ 23,916

At December 31, 2019 U.S.

operating loss and tax credit carryforwards of $ 8.7 billion expire by 2039 if not utilized.

At December 31, 2019 Non-U.S.

(a) At December 31, 2020, U.S.

operating loss and tax credit carryforwards of $ 7.1 billion expire by 2040 if not utilized and the remaining balance of $ 137 million may be carried forward indefinitely.

(b) At December 31, 2020, Non-U.S.

operating loss and tax credit carryforwards of $ 1.3 billion expire by 2040 if not utilized and the remaining balance of $ 5.9 billion may be carried forward indefinitely.

Valuation Allowances During the years ended December 31, 2019 and 2018, valuation allowances against deferred tax assets of $ 8.1 billion and $ 8.0 billion were comprised of cumulative losses, credits and other timing differences, primarily in Germany, Spain and South Korea.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We have $ 3.3 billion of net operating loss carryforwards in Germany that, as a result of reorganizations that took place in 2008 and 2009 and then existing German Law, were not previously recorded as deferred tax assets.

In 2018 a favorable European court decision was statutorily approved in Germany enabling use of those loss carryforwards, and deferred tax assets totaling $ 1.0 billion were established for the loss carryforwards.

Offsetting valuation allowances were also established as the deferred tax assets are not more likely than not to be realized.

Valuation Allowances During the years ended December 31, 2020 and 2019, valuation allowances against deferred tax assets of $ 9.1 billion and $ 8.1 billion were comprised of cumulative losses, credits and other timing differences, primarily in Germany, Spain and South Korea.

Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:

Years Ended December 31,

2020 2019 2018

Balance at beginning of period $ 775 $ 1,341 $ 1,557

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Reductions in tax positions due to lapse of statutory limitations ( 3 ) ( 8 ) ( 38 )

Settlements ( 10 ) ( 93 ) ( 450 )

Other ( 5 ) 5 ( 40 )

Balance at end of period $ 1,086 $ 775 $ 1,341

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These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the sustainability of income tax credits for a given audit cycle.

Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law on December 22, 2017.

The Tax Act changed many aspects of U.S.

corporate income taxation and included reduction of the corporate income tax rate from 35% to 21% , implementation of a territorial tax system and imposition of a tax on deemed repatriated earnings of foreign subsidiaries.

We recognized the tax effects of the Tax Act in the year ended December 31, 2017 and recorded $ 7.3 billion in tax expense.

The tax expense primarily relates to the remeasurement of deferred tax assets to the 21% tax rate.

We applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2017 and 2018.

During the year ended December 31, 2018 we reduced our year ended December 31, 2017 estimated tax expense of $ 7.3 billion to $ 7.1 billion , primarily related to the remeasurement of deferred tax assets to the 21% tax rate.

Restructuring and Other Initiatives

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Related charges are recorded in Automotive and other cost of sales and Automotive and other selling, general and administrative expense.

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The following table summarizes the reserves and charges related to restructuring and other initiatives, including postemployment benefit reserves and charges:

Years Ended December 31,

2020 2019 2018

Balance at beginning of period $ 564 $ 1,122 $ 227

Additions, interest accretion and other 565 629 1,637

Payments ( 678 ) ( 1,101 ) ( 600 )

Revisions to estimates and effect of foreign currency ( 99 ) ( 86 ) ( 142 )

Balance at end of period $ 352 $ 564 $ 1,122

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In the year ended December 31, 2020, restructuring and other initiatives primarily included actions in GMI related to the wind-down of Holden sales, design and engineering operations in Australia and New Zealand, the sale of our vehicle and powertrain manufacturing facilities in Thailand and the execution of a binding term sheet to sell our manufacturing facility in India.

We recorded charges of $ 683 million in the year ended December 31, 2020, primarily consisting of $ 360 million in dealer restructurings, employee separations and supplier claim charges, which are reflected in the table above, and $ 323 million in property and intangible asset impairments, inventory provisions, sales allowances and other charges, not reflected in the table above.

We also recorded a $ 236 million charge to Income tax expense due to the establishment of a valuation allowance against deferred tax assets in Australia and New Zealand in the year ended December 31, 2020.

We incurred $ 197 million in net cash outflows resulting from these restructuring actions primarily for dealer restructuring payments and employee separation payments, which includes proceeds of $ 143 million from the sale of our manufacturing facilities in Thailand, in the year ended December 31, 2020.

Holden and Thailand programs were substantially complete at December 31, 2020.

In the year ended December 31, 2019, restructuring and other initiatives primarily included actions related to our announced transformation activities, which include unallocation of products to certain manufacturing facilities and other employee separation programs.

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These programs have a total cost since inception of $ 3.1 billion and were complete at December 31, 2019.

We incurred $ 1.1 billion in cash outflows resulting from these restructuring actions, primarily for employee separation payments and supplier-related payments in the year ended December 31, 2019.

We expect additional cash outflows related to these activities of approximately $ 400 million to be substantially complete by the end of 2020.

We incurred $ 333 million and $ 1.1 billion in cash outflows resulting from these restructuring actions, primarily for employee separation payments and supplier-related payments in the years ended December 31, 2020 and 2019.

The cash outflows were substantially complete at December 31, 2020.

In the year ended December 31, 2018, restructuring and other initiatives in GMI primarily included the closure of a facility and other restructuring actions in Korea and employee separation programs.

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These programs were substantially complete at December 31, 2018.

In the year ended December 31, 2017, restructuring and other initiatives primarily included restructuring actions announced in the three months ended June 30, 2017 in GMI.

These actions primarily related to the withdrawal of Chevrolet from the Indian and South African markets at the end of 2017 and the transition of our South Africa manufacturing operations to Isuzu Motors.

We continue to manufacture vehicles in India for sale to certain export markets.

We recorded charges of $ 460 million in GMI primarily consisting of $ 297 million of asset impairments, sales incentives, inventory provisions and other charges, not reflected in the table above, and $ 163 million of dealer restructurings, employee separations and other contract cancellation costs, which are reflected in the table above.

We completed these programs in GMI in 2017.

Other GMI restructuring programs reflected in the table above include separation and other programs in Australia, Korea and India and the withdrawal of the Chevrolet brand from Europe.

Collectively, these programs had a total cost of $ 892 million since inception in 2013 through the completion of the programs in the year ended December 31, 2017.

Interest Income and Other Non-Operating Income

Years Ended December 31,

2020 2019 2018

Non-service pension and OPEB income $ 1,095 $ 797 $ 1,665

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Revaluation of investments 265 80 258

Other 73 ( 2 ) 42

Total interest income and other non-operating income, net $ 1,885 $ 1,469 $ 2,596

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Stockholders’ Equity and Noncontrolling Interests

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Common Stock Holders of our common stock are entitled to dividends at the sole discretion of our Board of Directors.

Our dividends declared per common share were $ 1.52 and our total dividends paid on common stock were $ 2.2 billion , $ 2.1 billion and $ 2.2 billion for the years ended December 31, 2019, 2018 and 2017.

Our dividends declared per common share were $ 0.38 , $ 1.52 and $ 1.52 and our total dividends paid on common stock were $ 545 million, $ 2.2 billion and $ 2.1 billion for the years ended December 31, 2020, 2019 and 2018.

Holders of common stock are entitled to one vote per share on all matters submitted to our stockholders for a vote.

The liquidation rights of holders of our common stock are secondary to the payment or provision for payment of all our debts and liabilities and to holders of our preferred stock, if any such shares are then outstanding.

In the year ended December 31, 2019 , we did not purchase shares of our outstanding common stock.

In the years ended December 31, 2018 and 2017, we purchased three million and 120 million shares of our outstanding common stock for $ 100 million and $ 4.5 billion as part of the common stock repurchase program announced in March 2015, which our Board of Directors increased and extended in January 2016 and January 2017.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We purchased three million shares of our outstanding common stock for $ 90 million and $ 100 million in the years ended December 31, 2020 and 2018.

We did not purchase shares of our outstanding common stock in the year ended December 31, 2019.

Shares repurchased were part of the common stock repurchase program announced in March 2015, which our Board of Directors increased and extended in January 2016 and January 2017.

Warrants At December 31, 2018 we had 15 million warrants outstanding that we issued in July 2009.

The warrants have expired but were exercisable at any time prior to July 10, 2019 at an exercise price of $ 18.33 per share.

GM Financial Preferred Stock In September 2018 GM Financial issued $ 500 million of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B, $ 0.01 par value, with a liquidation preference of $ 1,000 per share.

GM Financial Preferred Stock In September 2020, GM Financial issued $ 500 million of Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series C, $ 0.01 par value, with a liquidation preference of $ 1,000 per share.

Dividends will be paid semi-annually when declared starting March 30, 2021 at a fixed rate of 5.70 %.

The preferred stock is classified as noncontrolling interests in our consolidated financial statements.

In 2018, GM Financial issued $ 500 million of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B, $ 0.01 par value, with a liquidation preference of $ 1,000 per share.

Dividends are paid semi-annually when declared, which started March 30, 2019 at a fixed rate of 6.50 %.

In September 2017 GM Financial issued $ 1.0 billion of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series A, $ 0.01 par value, with a liquidation preference of $ 1,000 per share.

The preferred stock is classified as noncontrolling interests in our consolidated financial statements.

Dividends are paid semi-annually when declared, which started March 30, 2018 at a fixed rate of 5.75 % .

Cruise Preferred Shares In 2019 Cruise Holdings entered into a Purchase Agreement with The Vision Fund, General Motors Holdings LLC, Honda and certain other investors pursuant to which Cruise Holdings received $ 1.2 billion , including $ 687 million from General Motors Holdings LLC, in exchange for issuing Cruise Class F Preferred Shares, representing approximately 6.6 % of the fully diluted equity in Cruise Holdings.

Cruise Preferred Shares In 2019, Cruise Holdings issued $ 1.2 billion of Cruise Class F Preferred Shares, including $ 687 million to General Motors Holdings LLC.

All proceeds related to the Cruise Class F Preferred Shares are designated exclusively for working capital and general corporate purposes of Cruise.

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Prior to an initial public offering, the holders of Cruise Class F Preferred Shares are restricted from transferring the Cruise Class F Preferred Shares until May 7, 2023.

The Cruise Class F Preferred Shares only convert into common stock of Cruise Holdings, at specified exchange ratios, upon occurrence of an initial public offering.

No covenants or other events of default that can trigger redemption of the Class F Preferred Shares exist.

The Cruise Class F Preferred Shares convert into common stock of Cruise Holdings, at specified exchange ratios, upon occurrence of an initial public offering.

The Cruise Class F Preferred Shares are entitled to receive the greater of their carrying value or a pro-rata share of any proceeds or distributions upon the occurrence of a merger, sale, liquidation, or dissolution of Cruise Holdings.

The Cruise Class F Preferred Shares are classified as noncontrolling interests in our consolidated financial statements.

At December 31, 2019, external investors held 17.3 % of the fully diluted equity in Cruise Holdings.

In June 2018, Cruise Holdings issued $ 900 million of convertible preferred shares (Cruise Preferred Shares) to an affiliate of The Vision Fund which subsequently assigned such shares to The Vision Fund.

In 2018, Cruise Holdings issued $ 900 million of Cruise Preferred Shares to an affiliate of The Vision Fund which subsequently assigned such shares to The Vision Fund.

Immediately prior to the issuance of the Cruise Preferred Shares, we invested $ 1.1 billion in Cruise Holdings.

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The Cruise Preferred Shares are classified as noncontrolling interests in our consolidated financial statements.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Cruise Common Shares In October 2018, Cruise Holdings entered into a Purchase Agreement with Honda, pursuant to which Honda invested $ 750 million in Cruise Holdings in exchange for Class E Common Shares, representing 5.7 % of the fully diluted equity of Cruise Holdings at closing.

In addition, Honda agreed to contribute approximately $ 2.0 billion primarily in the form of a long-term annual fee to Cruise Holdings for certain rights to use Cruise Holdings' trade names and trademarks and the exclusive right to partner with Cruise Holdings to develop, deploy, and maintain a foreign market.

The remaining contribution or funding will come in the form of shared development costs for a shared autonomous vehicle that Honda, General Motors Holdings LLC and Cruise Holdings will jointly develop for deployment onto Cruise's autonomous vehicle network.

Cruise Common Shares I n 2018, Cruise Holdings issued $ 750 million of Class E Common Shares to Honda.

All proceeds are designated exclusively for working capital and general corporate purposes of Cruise.

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The Class E Common Shares are classified as noncontrolling interests in our consolidated financial statements.

GM Korea Preferred Shares In the year ended December 31, 2018, the Korea Development Bank (KDB) purchased $ 720 million of GM Korea's Class B Preferred Shares (GM Korea Preferred Shares).

GM Korea Preferred Shares In 2018, the Korea Development Bank (KDB) purchased $ 720 million of GM Korea's Class B Preferred Shares (GM Korea Preferred Shares).

Dividends on the GM Korea Preferred Shares are cumulative and accrue at an annual rate of 1.0 %.

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In conjunction with the GM Korea Preferred Share issuance we agreed to provide GM Korea future funding, if needed, not to exceed $ 2.8 billion through December 31, 2027, inclusive of $ 2.0 billion of planned capital expenditures through 2027.

The following table summarizes the significant components of Accumulated other comprehensive loss:

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the significant components of Accumulated other comprehensi ve loss:

Years Ended December 31,

2020 2019 2018

Foreign Currency Translation Adjustments

Balance at beginning of period $ ( 2,278 ) $ ( 2,250 ) $ ( 1,606 )

Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment, net of tax and impact of adoption of accounting standards(a)(b)

Other comprehensive loss and noncontrolling interests before reclassification adjustment, net of tax and impact of adoption of accounting standards(a)(b) ( 480 ) ( 56 ) ( 664 )

Reclassification adjustment, net of tax(a) 23 28 20

Other comprehensive income (loss), net of tax(a)

Other comprehensive loss, net of tax(a) ( 457 ) ( 28 ) ( 644 )

Balance at end of period $ ( 2,735 ) $ ( 2,278 ) $ ( 2,250 )

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Other comprehensive loss and noncontrolling interests before reclassification adjustment, net of impact of adoption of accounting standards(b) ( 2,661 ) ( 2,769 ) ( 580 )

Tax benefit 444 463 100

Other comprehensive loss and noncontrolling interests before reclassification adjustment, net of tax and impact of adoption of accounting standards(b) ( 2,217 ) ( 2,306 ) ( 480 )

Reclassification adjustment, net of tax(a)(c)

Other comprehensive income (loss), net of tax

Balance at end of period(d)

The income tax effect was insignificant in the years ended December 31, 2019 , 2018 and 2017 .

The noncontrolling interests are insignificant in the years ended December 31, 2019 , 2018 and 2017 .

$ 1.2 billion is included in the loss on sale of the Opel/Vauxhall Business in the year ended December 31, 2017.

An insignificant amount is included in the computation of periodic pension and OPEB (income) expense in the year ended December 31, 2017 .

Primarily consists of unamortized actuarial loss on our defined benefit plans.

Refer to the critical accounting estimates section of our MD&A for additional information.

Reclassification adjustment, net of tax(a) 422 184 141

Other comprehensive loss, net of tax ( 1,795 ) ( 2,122 ) ( 339 )

Balance at end of period(c) $ ( 10,654 ) $ ( 8,859 ) $ ( 6,737 )

(a) The income tax effect was insignificant in the years ended December 31, 2020, 2019 and 2018.

(b) The noncontrolling interests are insignificant in the years ended December 31, 2020, 2019 and 2018.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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Earnings Per Share

Basic and diluted earnings (loss) per share are computed by dividing Net income (loss) attributable to common stockholders by the weighted-average common shares outstanding in the period.

Basic and diluted earnings (loss) per share are computed by dividing Net income attributable to common stockholders by the weighted-average common shares outstanding in the period.

Diluted earnings (loss) per share is computed by giving effect to all potentially dilutive securities that are outstanding.

Years Ended December 31,

2020 2019 2018

Basic earnings per share

Income from continuing operations(a)

Income from continuing operations $ 6,427 $ 6,732 $ 8,084

cumulative dividends on subsidiary preferred stock ( 180 ) ( 151 ) ( 98 )

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Loss from discontinued operations, net of tax — — 70

Net income (loss) attributable to common stockholders

Net income attributable to common stockholders $ 6,247 $ 6,581 $ 7,916

Weighted-average common shares outstanding 1,433 1,424 1,411

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Basic loss per common share – discontinued operations $ — $ — $ 0.05

Basic earnings (loss) per common share

Basic earnings per common share $ 4.36 $ 4.62 $ 5.61

Diluted earnings per share

Income from continuing operations attributable to common stockholders – diluted(a)

Income from continuing operations attributable to common stockholders – diluted $ 6,247 $ 6,581 $ 7,986

Loss from discontinued operations, net of tax – diluted $ — $ — $ 70

Net income (loss) attributable to common stockholders – diluted

Net income attributable to common stockholders – diluted $ 6,247 $ 6,581 $ 7,916

Weighted-average common shares outstanding – basic 1,433 1,424 1,411

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Diluted loss per common share – discontinued operations $ — $ — $ 0.05

Diluted earnings (loss) per common share

Potentially dilutive securities(b)

Net of Net loss attributable to noncontrolling interests.

Potentially dilutive securities attributable to outstanding stock options were excluded from the computation of diluted EPS because the securities would have had an antidilutive effect.

Diluted earnings per common share $ 4.33 $ 4.57 $ 5.53

Potentially dilutive securities(a) 7 7 9

(a) Potentially dilutive securities attributable t o outstanding stock options and RSUs were excluded from the computation of diluted EPS because the securities would have had an antidilutive effect.

Discontinued Operations

On July 31, 2017, we closed the sale of our Opel/Vauxhall Business to PSA Group.

On October 31, 2017, we closed the sale of the Fincos to Banque PSA Finance S.A.

In 2017, we sold the Opel/Vauxhall Business to PSA Group.

We also sold the Fincos to Banque PSA Finance S.A.

and BNP Paribas Personal Finance S.A.

The net consideration paid at closing for the European Business was $ 2.5 billion , inclusive of $ 808 million in warrants in PSA Group.

The total charge from the sale of the European Business during the year ended December 31, 2017 was $ 6.2 billion , net of tax, of which $ 3.9 billion was recorded in Loss from discontinued operations, net of tax, and $ 2.3 billion was recorded in Income tax expense.

PSA Group assumed approximately $ 3.1 billion of net underfunded pension liabilities primarily with respect to active employees of the Opel/Vauxhall Business, and during the year ended December 31, 2017 our wholly-owned subsidiary (the Seller) made payments to PSA Group, or one or more pension funding vehicles, of $ 3.4 billion in respect of these assumed liabilities.

The Seller agreed to indemnify PSA Group for certain losses resulting from any inaccuracy of the representations and warranties or breaches of our covenants included in the Agreement and for certain other liabilities including certain emissions and product liabilities.

The Company entered into a guarantee for the benefit of PSA Group and pursuant to which the Company agreed to

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

guarantee the Seller's obligation to indemnify PSA Group.

Our wholly owned subsidiary (The Seller) agreed to indemnify PSA Group for certain losses resulting from any inaccuracy of the representations and warranties or breaches of our covenants included in the Agreement and for certain other liabilities, including certain emissions and product liabilities.

We entered into a guarantee for the benefit of PSA Group and pursuant to which we agreed to guarantee the Seller's obligation to indemnify PSA Group.

Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount of required payments.

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However, because the overwhelming majority of vehicles have already received KBA-approved software calibration updates pursuant to the voluntary recall, the number of vehicles subject to the mandatory recall is insignificant.

The Seller may also be obligated to indemnify PSA Group or otherwise absorb costs and expenses resulting from the foregoing as well as certain related potential litigation costs, settlements, judgments and potential fines.

The Seller may also be obligated to indemnify PSA Group or otherwise absorb costs and expenses resulting from

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

the foregoing as well as certain related potential litigation costs, settlements, judgments and potential fines.

In addition, at the KBA's request, the German authorities re-opened a separate criminal investigation related to this matter that had previously been closed with no action.

We are unable to estimate any reasonably possible loss or range of loss that may result from this matter.

We continue to purchase from and supply to PSA Group certain vehicles, parts and engineering services for a period of time following closing.

At December 31, 2020, we have accrued an insignificant amount relating to these matters.

The results of the European Business operations recorded in Loss from discontinued operations, net were $ 70 million in the year ended December 31, 2018.

There was no income or loss from discontinued operations in the years ended December 31, 2020 and 2019.

We continue to purchase from and supply to PSA Group certain vehicles, parts and engineering services for a period of time following the sale.

The following table summarizes transactions with the Opel/Vauxhall Business:

Years Ended December 31,

2020 2019 2018

Net sales and revenue(a) $ 144 $ 1,129 $ 1,939

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Cash receipts(b) $ 252 $ 1,408 $ 2,310

Included in Income from continuing operations.

Included in Net cash provided by operating activities – continuing operations.

The following table summarizes the results of the European Business operations:

Years Ended December 31,

Automotive net sales and revenue

GM Financial net sales and revenue

Total net sales and revenue

Automotive and other cost of sales

GM Financial interest, operating and other expenses

Automotive and other selling, general, and administrative expense

Other expense items

Loss from discontinued operations before taxes

Loss on sale of discontinued operations before taxes(a)(b)

Total loss from discontinued operations before taxes

Income tax expense(b)(c)

Loss from discontinued operations, net of tax

Includes contract cancellation charges associated with the disposal for the year ended December 31, 2017.

Total loss on sale of discontinued operations, net of tax was $ 3.9 billion for the year ended December 31, 2017.

Includes $ 2.0 billion of deferred tax assets that transferred to PSA Group in the year ended December 31, 2017.

(a) Included in Income from continuing operations.

(b) Included in Net cash provided by operating activities.

Stock Incentive Plans

GM Stock Incentive Awards We grant to certain employees RSUs, RSAs, PSUs and stock options (collectively, stock incentive awards) under our 2016 Equity Incentive Plan and 2017 Long-Term Incentive Plan (LTIP) and prior to the 2017 LTIP, under our 2014 LTIP.

The 2017 LTIP was approved by stockholders in June 2017 and replaced the 2014 LTIP.

GM Stock Incentive Awards We grant to certain employees RSUs, RSAs, PSUs and stock options (collectively, stock incentive awards) under our 2016 Equity Incentive Plan and 2020 Long-Term Incentive Plan (LTIP) and prior to the 2020 LTIP, under our 2017 and 2014 LTIP.

The 2020 LTIP was approved by stockholders in June 2020.

Any new awards granted after the approval of the 2020 LTIP in June 2020 will be issued under the 2020 LTIP.

To the extent any shares remain available for issuance under the 2017 LTIP, the 2016 Equity Incentive Plan, and/or the 2014 LTIP, such shares will only be used to settle outstanding awards that were previously granted under such plans prior to June 2020.

Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans such as retirement, death or disability.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

RSU awards granted either cliff vest or ratably vest generally over a three-year service period, as defined in the terms of each award.

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The PSUs are contingent upon achievement of specific technology and commercialization milestones.

(in millions)

Weighted-Average Grant Date Fair Value

Weighted-Average Remaining Contractual Term in Years

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(in millions) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term in Years

Units outstanding at January 1, 2020 41.5 $ 19.17 0.9

Granted 13.3 $ 22.50

Settled ( 13.5 ) $ 19.31

Forfeited or expired ( 2.7 ) $ 27.23

Units outstanding at December 31, 2020(a) 38.6 $ 19.84 0.9

Includes the target amount of PSUs.

(a) Includes the target amount of PSUs.

Our weighted-average assumptions used to value our stock options are a dividend yield of 4.25 %, 3.90 % and 3.69 %, expected volatility of 26.2 %, 28.0 % and 28.0 %, a risk-free interest rate of 1.44 %, 2.62 % and 2.73 %, and an expected option life of 5.97 , 6.00 and 5.98 years for options issued during the years ended December 31, 2020, 2019 and 2018.

The expected volatility is based on the average of the implied volatility of publicly traded options for our common stock.

Total compensation expense related to the above awards was $ 351 million, $ 456 million and $ 316 million in the years ended December 31, 2020, 2019 and 2018.

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The total fair value of stock incentive awards vested was $ 275 million, $ 287 million and $ 317 million in the years ended December 31, 2020, 2019 and 2018.

Cruise Stock Incentive Awards In addition to the awards noted above, stock options and RSUs were granted to Cruise employees in common shares of Cruise Holdings in the years ended December 31, 2019 and 2018.

Cruise Stock Incentive Awards In addition to the awards noted above, RSUs were granted to Cruise employees in common shares of Cruise Holdings in the years ended December 31, 2020, 2019 and 2018.

Stock options were granted in common shares of Cruise Holdings in the years ended December 31, 2019 and 2018.

There were no Cruise stock options granted in the year ended December 31, 2020.

These awards were granted under the 2018 Employee Incentive Plan approved by Cruise Holdings' Board of Directors in August 2018.

Shares awarded under the plan are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plan.

There were no awards granted in Cruise common shares for the year ended December 31, 2017.

Stock options vest ratably over four to 10 years, as defined in the terms of each award.

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The timing of the expense related to RSUs will depend upon the date of the satisfaction of the liquidity condition.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Supplementary Quarterly Financial Information (Unaudited)

The following tables summarize supplementary quarterly financial information:

Total net sales and revenue

Automotive and other gross margin(a)

Income (loss) from continuing operations

Net income (loss) attributable to stockholders

Basic earnings (loss) per common share – continuing operations

Diluted earnings (loss) per common share – continuing operations

Includes our Cruise segment.

In the three months ended March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019 we recorded pre-tax charges of $ 790 million , $ 361 million , $ 390 million and $ 267 million related to transformation activities including accelerated depreciation, supplier-related charges and other charges.

In the three months ended March 31, 2019, June 30, 2019 and September 30, 2019, we recorded pre-tax benefits of $ 857 million , $ 380 million and $ 123 million related to the retrospective recoveries of indirect taxes in Brazil.

In the three months ended September 30, 2019 and December 31, 2019, we estimate that the lost vehicle production volumes and parts sales due to the UAW strike had an unfavorable pre-tax impact on our Income from continuing operations.

In the three months ended December 31, 2019 we recorded a pre-tax charge of $ 164 million related to the divestiture in our joint venture FAW-GM.

Total net sales and revenue

Automotive and other gross margin(a)

Income from continuing operations

Loss from discontinued operations, net of tax

Net income attributable to stockholders

Basic earnings per common share – continuing operations

Basic loss per common share – discontinued operations

Diluted earnings per common share – continuing operations

Diluted loss per common share – discontinued operations

Includes our Cruise segment.

In the three months ended March 31, 2018 and June 30, 2018, we collectively recorded pre-tax charges of $ 1.1 billion related to the closure of a facility and other restructuring actions in Korea.

In the three months ended September 30, 2018 we recorded pre-tax charges of $ 440 million for ignition switch related legal matters.

In the three months ended December 31, 2018 we recorded pre-tax charges of $ 1.3 billion related to transformation activities including employee separation, accelerated depreciation and other charges;

and a non-recurring tax benefit of $ 1.0 billion related to foreign earnings.

Segment Reporting

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GMNA, GMI, Cruise and GM Financial.

As discussed in Note 1, the European Business is presented as discontinued operations and is excluded from our segment results for all periods presented.

The European Business is presented as discontinued operations and is excluded from our segment results for all periods presented.

The European Business was previously reported as our GM Europe segment and part of GM Financial.

The chief operating decision-maker evaluates the operating results and performance of our automotive segments and Cruise through EBIT-adjusted, which is presented net of noncontrolling interests.

The chief operating decision maker evaluates GM Financial through EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

the operational and financial performance of the segment.

The chief operating decision-maker evaluates GM Financial through 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.

Each segment has a manager responsible for executing our strategic initiatives.

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As a result of these and other factors, we do not manage our business on an individual brand or vehicle basis.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Substantially all of the trucks, crossovers, cars and automobile parts produced are marketed through retail dealers in North America and through distributors and dealers outside of North America, the substantial majority of which are independently owned.

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We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands.

Cruise, formerly GM Cruise, is our global segment responsible for the development and commercialization of autonomous vehicle technology, and includes autonomous vehicle-related engineering and other costs.

Our automotive interest income and interest expense, Maven, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporate expenditures and certain nonsegment specific revenues and expenses are recorded centrally in Corporate.

Corporate assets primarily consist of cash and cash equivalents, marketable debt securities, our investment in Lyft, PSA warrants, Maven vehicles and intercompany balances.

Cruise is our global segment responsible for the development and commercialization of autonomous vehicle technology, and includes autonomous vehicle-related engineering and other costs.

Our automotive interest income and interest expense, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporate expenditures and certain nonsegment specific revenues and expenses are recorded centrally in Corporate.

Corporate assets primarily consist of cash and cash equivalents, marketable debt securities, PSA warrants and intercompany balances.

Retained net underfunded pension liabilities related to the European Business are also recorded in Corporate.

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At and For the Year Ended December 31, 2020

Total Automotive

Eliminations/Reclassifications

GMNA GMI Corporate Eliminations Total Automotive Cruise GM Financial Eliminations/Reclassifications Total

Net sales and revenue $ 96,733 $ 11,586 $ 350 $ 108,669 $ 103 $ 13,831 $ ( 118 ) $ 122,485

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Equity in net assets of nonconsolidated affiliates

$ 242 $ 6,583 $ — $ — $ 6,825 $ — $ 1,581 $ — $ 8,406

Goodwill and intangibles $ 2,346 $ 806 $ — $ — $ 3,152 $ 735 $ 1,343 $ — $ 5,230

Total assets $ 114,137 $ 23,019 $ 39,933 $ ( 57,464 ) $ 119,625 $ 3,625 $ 113,410 $ ( 1,466 ) $ 235,194

Expenditures for property $ 4,501 $ 729 $ 21 $ — $ 5,251 $ 15 $ 34 $ — $ 5,300

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Equity income $ 17 $ 510 $ — $ — $ 527 $ — $ 147 $ — $ 674

Consists of restructuring and other charges related to transformation activities of $ 1.6 billion in GMNA and $ 115 million in GMI;

a benefit of $ 1.4 billion related to the retrospective recoveries of indirect taxes in Brazil;

partially offset by losses of $ 164 million related to the FAW-GM divestiture in GMI.

(a) Consists of restructuring charges related to Cadillac dealer strategy in GMNA;

restructuring and other charges primarily in Australia, New Zealand, Thailand and India in GMI;

and ignition switch-related legal matters in Corporate.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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At and For the Year Ended December 31, 2019

Total Automotive

GMNA GMI Corporate Eliminations Total Automotive Cruise GM Financial Eliminations/Reclassifications Total

Net sales and revenue $ 106,366 $ 16,111 $ 220 $ 122,697 $ 100 $ 14,554 $ ( 114 ) $ 137,237

Earnings (loss) before interest and taxes-adjusted

$ 8,204 $ ( 202 ) $ ( 691 ) $ 7,311 $ ( 1,004 ) $ 2,104 $ ( 18 ) $ 8,393

Adjustments(a) $ ( 1,618 ) $ 1,081 $ ( 2 ) $ ( 539 ) $ — $ — $ — ( 539 )

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Equity in net assets of nonconsolidated affiliates

$ 84 $ 7,023 $ — $ — $ 7,107 $ — $ 1,455 $ — $ 8,562

Goodwill and intangibles $ 2,459 $ 888 $ 1 $ — $ 3,348 $ 634 $ 1,355 $ — $ 5,337

Total assets $ 109,290 $ 24,969 $ 32,365 $ ( 50,244 ) $ 116,380 $ 4,230 $ 108,881 $ ( 1,454 ) $ 228,037

Expenditures for property $ 6,305 $ 1,096 $ 84 $ — $ 7,485 $ 60 $ 47 $ — $ 7,592

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Impairment charges $ 15 $ 7 $ — $ — $ 22 $ 36 $ — $ — $ 58

Equity income

Consists of restructuring and other charges related to transformation activities of $ 1.2 billion in GMNA;

charges of $ 1.2 billion related to restructuring actions in Korea and other countries in GMI;

and of $ 440 million for ignition switch-related legal matters and other insignificant charges in Corporate.

Equity income (loss) $ 8 $ 1,123 $ ( 29 ) $ — $ 1,102 $ — $ 166 $ — $ 1,268

(a) Consists of restructuring and other charges related to transformation activities of $ 1.6 billion in GMNA and $ 115 million in GMI;

a benefit of $ 1.4 billion related to the retrospective recoveries of indirect taxes in Brazil;

partially offset by losses of $ 164 million related to the FAW-GM divestiture in GMI.

At and For the Year Ended December 31, 2018

Total Automotive

GMNA GMI Corporate Eliminations Total Automotive Cruise GM Financial Eliminations Total

Net sales and revenue $ 113,792 $ 19,148 $ 203 $ 133,143 $ — $ 14,016 $ ( 110 ) $ 147,049

Earnings (loss) before interest and taxes-adjusted

$ 10,769 $ 423 $ ( 570 ) $ 10,622 $ ( 728 ) $ 1,893 $ ( 4 ) $ 11,783

Adjustments(a) $ ( 1,236 ) $ ( 1,212 ) $ ( 457 ) $ ( 2,905 ) $ — $ — $ — ( 2,905 )

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Equity in net assets of nonconsolidated affiliates

$ 75 $ 7,761 $ 24 $ — $ 7,860 $ — $ 1,355 $ — $ 9,215

Goodwill and intangibles $ 2,623 $ 928 $ 1 $ — $ 3,552 $ 671 $ 1,356 $ — $ 5,579

Total assets $ 109,763 $ 24,911 $ 31,694 $ ( 50,690 ) $ 115,678 $ 3,195 $ 109,953 $ ( 1,487 ) $ 227,339

Expenditures for property $ 7,784 $ 883 $ 21 $ ( 2 ) $ 8,686 $ 15 $ 60 $ — $ 8,761

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Equity income

Consists of charges of $ 460 million related to restructuring actions in India and South Africa in GMI;

charges of $ 80 million associated with the deconsolidation of Venezuela in GMI and charges of $ 114 million for ignition switch-related legal matters in Corporate.

$ 8 $ 1,972 $ — $ — $ 1,980 $ — $ 183 $ — $ 2,163

(a) Consists of restructuring and other charges related to transformation activities of $ 1.2 billion in GMNA;

charges of $ 1.2 billion related to restructuring actions in Korea and other countries in GMI;

and of $ 440 million for ignition switch-related legal matters and other insignificant charges in Corporate.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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At and For the Years Ended December 31,

Net Sales and Revenue

Long-Lived Assets

Net Sales and Revenue

Long-Lived Assets

Net Sales and Revenue

Long-Lived Assets

2020 2019 2018

Net Sales and Revenue Long-Lived Assets Net Sales and Revenue Long-Lived Assets Net Sales and Revenue Long-Lived Assets

$ 89,204 $ 24,932 $ 97,887 $ 25,401 $ 104,413 $ 25,625

19,469 12,516 24,810 13,190 28,632 13,263

12,227 36,773 12,727 39,509 12,169 41,334

1,585 3,230 1,813 2,772 1,835 2,476

Total consolidated $ 122,485 $ 77,451 $ 137,237 $ 80,872 $ 147,049 $ 82,698

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The following table summarizes the sources (uses) of cash provided by Change in other operating assets and liabilities and Cash paid for income taxes and interest:

Change in other operating assets and liabilities

Years Ended December 31,

Change in other operating assets and liabilities Years Ended December 31,

2020 2019 2018

Accounts receivable $ ( 1,341 ) $ ( 563 ) $ 492

Wholesale receivables funded by GM Financial, net 2,744 663 ( 2,606 )

Inventories ( 104 ) ( 761 ) 399

Automotive equipment on operating leases 53 274 748

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Accrued and other liabilities ( 1,991 ) ( 1,573 ) 732

Total $ ( 399 ) $ ( 3,789 ) $ ( 1,376 )

Cash paid for income taxes and interest

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Total cash paid for interest (net of amounts capitalized) $ 3,958 $ 4,214 $ 3,597

Subsequent Event

In January 2021, Cruise Holdings issued Class G Preferred Shares in exchange for $ 2.2 billion from Microsoft and other investors, including $ 1.0 billion from General Motors Holdings LLC.

As a result, Cruise Holdings has fallen below the ownership threshold required for inclusion in our U.S.

consolidated income tax returns.

In the three months ended March 31, 2021, we will establish a valuation allowance of approximately $ 350 million against deferred tax assets that may not be realizable.

In addition, we, Cruise Holdings and Microsoft entered into a long-term strategic relationship to accelerate the commercialization of self-driving vehicles with Microsoft being the preferred cloud provider.

* * * * * * *

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data