5 unchanged sentences
Our financial risk management policy is designed to protect against risk arising from extreme adverse market movements on our key exposures.
−Removed: Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk, interest rate risk and equity price risk.
+Added: Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk and interest rate risk.
Sensitivity analysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk.
5 unchanged sentences
At December 31, 2022, our most significant foreign currency exposures were between the U.S.
−Removed: Dollar and the Canadian Dollar, Chinese Yuan, Korean Won, Brazilian Real, Euro, and Mexican Peso.
+Added: Dollar and the Canadian Dollar, Chinese Yuan, Korean Won, Brazilian Real, and Mexican Peso.
Derivative instruments such as foreign currency forwards, swaps and options are primarily used to hedge exposures with respect to forecasted revenues, costs and commitments denominated in foreign currencies.
Such contracts had remaining maturities of up to 12 months at December 31, 2022.
+Added: GENERAL MOTORS COMPANY AND SUBSIDIARIES
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.2 billion and $0.7 billion at December 31, 2022 and 2021.
14 unchanged sentences
The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.8 billion and $0.6 billion at December 31, 2022 and 2021.
−Removed: GENERAL MOTORS COMPANY AND SUBSIDIARIES
−Removed: We had marketable debt securities of $8.6 billion and $9.0 billion classified as available-for-sale at December 31, 2021 and 2020.
+Added: We had marketable debt securities, including those held by Cruise, of $12.2 billion and $8.6 billion classified as available-for-sale at December 31, 2022 and 2021.
The potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2022 and 2021.
−Removed: Equity Price Risk We are subject to equity price risk due to market price volatility primarily related to our investment in Stellantis warrants and other insignificant investments.
−Removed: The fair value of investments with exposure to equity price risk was $1.5 billion and $1.2 billion at December 31, 2021 and 2020.
−Removed: Our investment in Stellantis warrants is valued based on a Black-Scholes formula.
−Removed: We estimate that a 10% adverse change in quoted security prices in Stellantis would have had an insignificant effect at December 31, 2021 and 2020.
Automotive Financing - GM Financial
10 unchanged sentences
These interest rate scenarios are purely hypothetical and do not represent our view of future interest rate movements.
−Removed: At December 31, 2021, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to re-price within the next twelve months.
+Added: At December 31, 2022 and 2021, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to re-price within the next 12 months.
During a period of rising interest rates, the interest paid on liabilities would increase more than the interest earned on assets, which would initially decrease net interest income.
During a period of falling interest rates, net interest income would be expected to initially increase.
−Removed: At December 31, 2020, GM Financial was asset-sensitive, meaning that more assets than liabilities were expected to re-price within the next twelve months.
−Removed: During a period of rising interest rates, the interest earned on assets would increase more than the interest paid on liabilities, which would initially increase net interest income.
−Removed: During a period of falling interest rates, net interest income would be expected to initially decrease.
−Removed: GM Financial's net interest income sensitivity decreased in 2021 as compared to 2020 primarily due to an increased proportion of rate sensitive liabilities exposure relative to rate sensitive assets exposure.
GM Financial's hedging strategies approved by its Global Asset Liability Committee are used to manage interest rate risk within policy guidelines.
+Added: GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table presents GM Financial's net interest income sensitivity to interest rate movement:
8 unchanged sentences
If interest rates or other factors change, actual prepayment experience could be different than projected.
−Removed: GENERAL MOTORS COMPANY AND SUBSIDIARIES
Foreign Currency Exchange Rate Risk GM Financial is exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S.
5 unchanged sentences
GM Financial had foreign currency swaps with notional amounts of $6.9 billion and $8.2 billion at December 31, 2022 and 2021.
−Removed: The net fair value of these derivative financial instruments was a liability of $0.2 billion and an asset of $0.4 billion at December 31, 2021 and 2020.
+Added: The net fair value of these derivative financial instruments was a liability of $0.6 billion and $0.2 billion at December 31, 2022 and 2021.
The following table summarizes GM Financial's foreign currency translation and transaction and remeasurement (gains) losses:
Years Ended December 31,
−Removed: Translation losses recorded in Accumulated other comprehensive loss $ 44 $ 82
−Removed: Transaction and remeasurement gains, net recorded in earnings $ (3) $ (6)
+Added: Translation (gains) losses recorded in Accumulated other comprehensive loss $ 156 $ 44
+Added: Transaction and remeasurement (gains) losses recorded in earnings $ (1) $ (3)
* * * * * * *
5 unchanged sentences
generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 2, 2022 expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 31, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
51 unchanged sentences
Detroit, Michigan
−Removed: February 2, 2022
+Added: January 31, 2023
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
3 unchanged sentences
In our opinion, General Motors Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2021, and the related notes and our report dated February 2, 2022 expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2022, and the related notes and our report dated January 31, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
16 unchanged sentences
Detroit, Michigan
−Removed: February 2, 2022
+Added: January 31, 2023
GENERAL MOTORS COMPANY AND SUBSIDIARIES
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.