13 unchanged sentences
At December 31, 2023, our most significant foreign currency exposures were between the U.S.
−Removed: Dollar and the Canadian Dollar, Chinese Yuan, Korean Won, Brazilian Real, and Mexican Peso.
+Added: Dollar and the Canadian Dollar, Korean Won, Chinese Yuan, Mexican Peso and Brazilian Real.
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.
−Removed: Such contracts had remaining maturities of up to 12 months at December 31, 2022.
−Removed: GENERAL MOTORS COMPANY AND SUBSIDIARIES
+Added: Such contracts had remaining maturities of up to 12 months at December 31, 2023 and were insignificant.
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.4 billion and $0.2 billion at December 31, 2023 and 2022.
3 unchanged sentences
Dollars as part of the consolidation process.
−Removed: We had foreign currency derivatives with notional amounts of $4.1 billion and $4.2 billion at December 31, 2022 and 2021.
−Removed: The fair value of these derivative financial instruments was insignificant.
Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial condition.
−Removed: The following table summarizes the amounts of automotive foreign currency translation and transaction and remeasurement (gains) losses:
+Added: GENERAL MOTORS COMPANY AND SUBSIDIARIES
+Added: The following table summarizes the amounts of automotive foreign currency translation, transaction and remeasurement (gains) losses:
Years Ended December 31,
2 unchanged sentences
Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, finance lease obligations and certain marketable debt securities.
−Removed: We did not have any interest rate swap positions to manage interest rate exposures in our automotive operations at December 31, 2022 and 2021.
+Added: At December 31, 2023, interest rate swap positions were used to manage interest rate exposures in our automotive operations and were insignificant.
The fair value of debt and finance leases was $16.5 billion and $16.8 billion at December 31, 2023 and 2022.
5 unchanged sentences
GM Financial is exposed to interest rate risks as financial assets and liabilities have different characteristics that may impact financial performance.
−Removed: These differences may include tenor, yield, re-pricing timing, and prepayment expectations.
+Added: These differences may include tenor, yield, repricing timing and prepayment expectations.
Typically, retail finance receivables and leases purchased by GM Financial earn fixed interest and commercial finance receivables originated by GM Financial earn variable interest.
3 unchanged sentences
Quantitative Disclosure GM Financial measures the sensitivity of its net interest income to changes in interest rates by using interest rate scenarios that assume a hypothetical, instantaneous parallel shift of one hundred basis points in all interest rates across all maturities, as well as a base case that assumes that rates perform at the current market forward curve.
−Removed: However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in our analysis.
+Added: However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in GM Financial's analysis.
Therefore, the actual impact to net interest income could be higher or lower than the results detailed in the table below.
−Removed: These interest rate scenarios are purely hypothetical and do not represent our view of future interest rate movements.
−Removed: 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.
+Added: These interest rate scenarios are purely hypothetical and do not represent GM Financial's view of future interest rate movements.
+Added: At December 31, 2023 and 2022, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to reprice 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.
1 unchanged sentence
GM Financial's hedging strategies approved by its Global Asset Liability Committee are used to manage interest rate risk within policy guidelines.
−Removed: GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table presents GM Financial's net interest income sensitivity to interest rate movement:
5 unchanged sentences
however, actual results could differ.
−Removed: The estimates are also based on assumptions including the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives.
+Added: The estimates are also based on assumptions including
+Added: GENERAL MOTORS COMPANY AND SUBSIDIARIES
+Added: the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives.
The prepayment projections are based on historical experience.
8 unchanged sentences
The net fair value of these derivative financial instruments was a liability of $0.2 billion and $0.6 billion at December 31, 2023 and 2022.
−Removed: The following table summarizes GM Financial's foreign currency translation and transaction and remeasurement (gains) losses:
+Added: The following table summarizes GM Financial's foreign currency translation, transaction and remeasurement (gains) losses:
Years Ended December 31,
5 unchanged sentences
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (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 (collectively referred to as the “financial statements”).
+Added: We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”).
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S.
20 unchanged sentences
Auditing these liabilities involved a high degree of subjectivity in evaluating management’s estimates due to the size, uncertainties, and potential volatility related to the estimated liabilities.
−Removed: Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, in particular, the number of historical periods used and the weighing of historical data in the reserve studies.
+Added: Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, specifically the number of historical periods used and the weighting of historical data in the reserve studies.
How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s product warranty and recall campaign processes.
37 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, 2023, 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, 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.
+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, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes and our report dated January 30, 2024 expressed an unqualified opinion thereon.
Basis for Opinion
19 unchanged sentences
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.