4 unchanged sentences
A risk management control framework is utilized to monitor the strategies, risks and related hedge positions in accordance with the policies and procedures approved by the Financial Risk Council.
−Removed: 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 and interest rate risk.
+Added: Our financial risk management policy is designed to protect against risk arising from large adverse market movements on our key exposures.
+Added: Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk, interest rate risk and commodity risk.
Sensitivity analysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk.
−Removed: The models used assume instantaneous, parallel shifts in exchange rates and interest rate yield curves.
+Added: The models used assume instantaneous, parallel shifts in exchange rates, interest rate yield curves and commodity prices.
For options and other instruments with nonlinear returns, models appropriate to these types of instruments are utilized to determine the effect of market shifts.
−Removed: There are certain shortcomings inherent in the sensitivity analyses presented, primarily due to the assumption that interest rates change in a parallel fashion and that spot exchange rates change instantaneously.
−Removed: In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlations between foreign currency exposures and offsetting long-short positions in currency or other exposures, such as interest rates, which may significantly reduce the potential loss in value.
+Added: There are certain shortcomings inherent in the sensitivity analyses presented, primarily due to the assumption that interest rates change in a parallel fashion and that spot exchange rates and commodity prices change instantaneously.
+Added: In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlations between foreign currency exposures and offsetting long-short positions in currency or other exposures, such as interest rates and commodity prices, which may significantly reduce the potential loss in value.
Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than the functional currencies of our operations.
At December 31, 2024, our most significant foreign currency exposures were between the U.S.
−Removed: Dollar and the Canadian Dollar, Korean Won, Chinese Yuan, Mexican Peso and Brazilian Real.
+Added: dollar and the Canadian dollar, Chinese yuan, Korean won, 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, 2023 and were insignificant.
+Added: Such contracts had remaining maturities of up to 12 months at December 31, 2024.
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.2 billion and $0.4 billion at December 31, 2024 and 2023.
These amounts are calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect of foreign currency cash, cash equivalents and other assets.
−Removed: The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been insignificant at December 31, 2023 and 2022.
+Added: The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been $0.3 billion and insignificant at December 31, 2024 and 2023.
We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S.
9 unchanged sentences
The fair value of debt and finance leases was $15.2 billion and $16.5 billion at December 31, 2024 and 2023.
−Removed: The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion and $0.8 billion at December 31, 2023 and 2022.
−Removed: We had marketable debt securities, including those held by Cruise, of $7.6 billion and $12.2 billion classified as available-for-sale at December 31, 2023 and 2022.
+Added: The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion at December 31, 2024 and 2023.
+Added: We had marketable debt securities of $7.3 billion and $7.6 billion classified as available-for-sale at December 31, 2024 and 2023.
The potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2024 and 2023.
+Added: Commodity Risk We have commodity price risk which could have an impact of our financial results as result of fluctuations in the prices of commodities used in vehicle production.
+Added: At December 31, 2024 we used derivative instruments such as commodity forwards, swaps and options to hedge a portion of our exposures with respect to forecasted commodity purchases of steel, copper, aluminum, palladium, lithium and nickel.
+Added: The net fair value liability of financial instruments with exposure to commodity price movements was insignificant at December 31, 2024 and 2023.
+Added: The potential change in fair value for such financial instruments from a 10% adverse change in the underlying commodity prices would have been $0.2 billion and insignificant at December 31, 2024 and 2023.
Automotive Financing - GM Financial
10 unchanged sentences
These interest rate scenarios are purely hypothetical and do not represent GM Financial's view of future interest rate movements.
−Removed: 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.
−Removed: 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.
−Removed: During a period of falling interest rates, net interest income would be expected to initially increase.
−Removed: 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
+Added: At December 31, 2024, GM Financial moved to an asset-sensitive profile from a liability-sensitive profile in 2023, meaning that more assets than liabilities were expected to reprice within the next 12 months.
+Added: 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.
+Added: During a period of falling interest rates, net interest income would be expected to initially decrease.
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
−Removed: GENERAL MOTORS COMPANY AND SUBSIDIARIES
−Removed: 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 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.
48 unchanged sentences
Sales incentives
−Removed: Description of the matter Automotive sales and revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or providing services, which is net of dealer and customer sales incentives the Company expects to pay.
−Removed: As discussed in Note 2 to the financial statements, provisions for dealer and customer incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale.
+Added: Description of the matter As discussed in Note 2 to the financial statements, Automotive net sales and revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or providing services, which is net of estimated dealer and customer sales incentives the Company reasonably expects to pay.
+Added: Provisions for dealer and customer sales incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale.
The liabilities for dealer and customer allowances, claims and discounts amount to $7.3 billion at December 31, 2024.
Auditing the estimate of sales incentives involved a high degree of judgment.
−Removed: Significant factors used by the Company in estimating its liability for retail incentives include type of program, forecasted sales volumes, 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.
+Added: Significant factors used by the Company in estimating its liability for sales incentives include type of program, 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.
The Company’s estimation model reflects the best estimate of the total incentive amount that the Company reasonably expects to pay at the time of sale.
1 unchanged sentence
How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s sales incentive process, including management’s review of the estimation model, the significant assumptions (e.g., incentive cost per unit, customer take rate, and market conditions), and the data inputs used in the model.
−Removed: Our audit procedures included, among others, the performance of analytical procedures to develop an independent range of the liability for retail incentives as of the balance sheet date.
+Added: Our audit procedures included, among others, the performance of analytical procedures to develop an independent range of the liability for sales incentives as of the balance sheet date.
Our independent range was developed for comparison to the Company’s recorded liability, and is based on historical claims, forecasted spend, and the specific vehicle mix of current dealer stock.
4 unchanged sentences
As discussed in Note 2 to the financial statements, at the beginning of the lease, management establishes an expected residual value for each vehicle at the end of the lease term.
+Added: During the term of a lease, management periodically evaluates the estimated residual value and may adjust the value downward or upward.
The Company’s estimated residual value of leased vehicles at the end of lease term was $23.5 billion as of December 31, 2024.
Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment.
−Removed: Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and significant assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used car prices, manufacturer incentive programs and fuel prices.
+Added: Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used car prices, manufacturer incentive programs and fuel prices.
Realization of the residual values is dependent on the future ability to market the vehicles under future prevailing market conditions.
33 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.