e8vkza
Table of Contents

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004

FORM 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report
(Date of earliest event reported) June 5, 2003

GENERAL MOTORS CORPORATION
(Exact name of registrant as specified in its charter)

         
STATE OF DELAWARE   1-143   38-0572515
 
 
(State or other jurisdiction
of incorporation)		   (Commission File Number)   (I.R.S. Employer
Identification No.)
     
300 Renaissance Center, Detroit, Michigan   48265-3000
 
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code (313)-556-5000

 

TABLE OF CONTENTS

GENERAL MOTORS UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
GM PRO FORMA CAPITALIZATION

Table of Contents

ITEM NO. 7 Pro Forma Financial Information.

This amends the Current Report on Form 8-K dated June 5, 2003, by revising the unaudited pro forma financial data to reflect the split-off of Hughes Electronics Corporation from General Motors Corporation at book value, rather than at fair market value.

2

Table of Contents

GENERAL MOTORS

UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

      The following unaudited pro forma condensed consolidated financial statements as of and for the three months ended March 31, 2003 and for the year ended December 31, 2002 have been derived from the historical financial statements of GM and Hughes to give effect to the separation of Hughes from GM and acquisition by News Corporation of 34% of Hughes (the transactions).

      The unaudited pro forma condensed consolidated statements of income from continuing operations giving effect to the transactions for the three months ended March 31, 2003 and the year ended December 31, 2002 reflect adjustments as if the transactions had taken place on January 1, 2002. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2003 gives effect to the transactions as if the transactions had occurred on March 31, 2003.

      Certain pro forma adjustments described in the accompanying notes are based on estimates and various assumptions that GM believes are reasonable under the circumstances.

      Certain amounts and percentages have been rounded for presentation purposes. Accordingly, certain arithmetic operations may not be recalculated exactly.

      The unaudited pro forma condensed consolidated financial statements are not intended to be indicative of either future results of operations or results that might have been achieved had the transactions actually occurred on the dates specified. In the opinion of GM management, all adjustments necessary to fairly present such unaudited pro forma condensed consolidated financial statements have been made based upon the proposed terms of the transactions.

      The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the GM and Hughes financial statements, including the respective notes thereto, as of and for the three months ended March 31, 2003, each of which is contained in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, and as of and for the year ended December 31, 2002, each of which is contained in its 2002 Form 10-K, and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2002 for GM, which has been restated to comply with SEC Regulation G and Item 10 of Regulation S-K and is included in this Current Report on Form 8-K.

18

Table of Contents

GENERAL MOTORS

UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET

As of March 31, 2003

                                                                     
                                GM with Hughes   Special Cash                        
                                Recorded as   Dividend                        
        GM   Pro Forma   Discontinued   From Hughes   GM/News   Other Pro Forma        
        Historical   Adjustments   Operations   to GM   Stock Sale   Adjustments   Pro Forma
       
 
 
 
 
 
 
                                (in millions)                
Assets
                                                                
Cash and cash equivalents
   $ 26,982     $ (2,915 ) (a)       $ 24,067     $ 275   (d) $ 3,073   (e) $ —     $ 27,415  
Other marketable securities
     16,841                       16,841                               16,841  
 
    
     
             
     
     
     
     
 
 
Total cash and marketable securities
     43,823       (2,915 )             40,908       275       3,073       —       44,256  
Finance Receivables—net
     141,273                       141,273                               141,273  
Accounts and notes receivables (less allowance)
     16,209       (1,126 ) (a)         15,089                               15,089  
 
             6   (c)                                            
Inventories (less allowances)
     10,769       (290 ) (a)         10,479                               10,479  
Net assets of discontinued operations
             10,576   (b)         10,576       (275 ) (d)   (2,058 ) (e)   (8,308 ) (f)   —  
 
                                                     65   (j)      
Deferred income taxes
     39,000       (1,098 ) (a)         37,902                               37,902  
Equipment on operating leases (less accumulated depreciation)
     36,997       (1,984 ) (a)         35,013                               35,013  
Equity in net assets of nonconsolidated associates
     4,990       38   (a)         5,028                               5,028  
Property
     37,681       (1,552 ) (a)         36,129                               36,129  
Intangible assets—net
     17,961       (7,140 ) (a)         10,821                               10,821  
Other assets
     33,733       (4,316 ) (a)         29,417               768   (e)           30,185  
 
    
     
             
     
     
     
     
 
 
Total assets
   $ 382,436     $ (9,801 )           $ 372,635     $ —     $ 1,783     $ (8,243 )   $ 366,175  
 
    
     
             
     
     
     
     
 
Liabilities and Stockholders’ Equity
                                                                
Accounts payable (principally trade)
   $ 28,738     $ (1,150 ) (a)       $ 27,594     $ —     $ —     $ 100   (g) $ 27,694  
 
             6   (c)                                            
Notes and loans payable
     211,726       (5,015 ) (a)         206,711                               206,711  
Postretirement benefits other than pensions
     38,239       (31 ) (a)         38,208                               38,208  
Pensions
     22,536       (83 ) (a)         22,453                               22,453  
Deferred income taxes
     7,342       (1,549 ) (a)         5,793                               5,793  
Accrued expense and other liabilities
     63,654       (1,415 ) (a)         62,239               561   (e)           62,800  
 
    
     
             
     
     
     
     
 
 
Total liabilities
     372,235       (9,237 )             362,998       —       561       100       363,659  
Minority Interests
     835       (564 ) (a)         271                               271  
Stockholders’ Equity
                                                                
$1 2/3 par value common stock (outstanding, 560,616,422)
     934                       934                               934  
Class H common stock (outstanding, 1,107,517,793)
     111                       111                       (111 ) (f)   —  
Capital surplus (principally paid-in capital)
     22,808                       22,808                       (8,197 ) (f)   14,611  
Retained earnings
     11,234                       11,234               1,222   (e)           12,356  
 
                             —                       (100 ) (g)      
 
    
     
             
     
     
     
     
 
 
Subtotal
     35,087       —               35,087       —       1,222       (8,408 )     27,901  
Accumulated foreign currency translation adjustments
     (2,665 )                     (2,665 )                     27   (j)   (2,638 )
Net unrealized loss on derivatives
     (196 )                     (196 )                     3   (j)   (193 )
Net unrealized gains on securities
     344                       344                       3   (j)   347  
Minimum pension liability adjustment
     (23,204 )                     (23,204 )                     32   (j)   (23,172 )
 
    
     
             
     
     
     
     
 
 
Accumulated other comprehensive loss
     (25,721 )     —               (25,721 )     —       —       65       (25,656 )
 
    
     
             
     
     
     
     
 
   
Total Stockholders’ Equity
     9,366       —               9,366       —       1,222       (8,343 )     2,245  
 
    
     
             
     
     
     
     
 
 
Total Liabilities and Stockholders’ Equity
   $ 382,436     $ (9,801 )           $ 372,635     $ —     $ 1,783     $ (8,243 )   $ 366,175  
 
    
     
             
     
     
     
     
 

The accompanying notes are an integral part of the

Unaudited Pro Forma Condensed Consolidated Financial Statements.

19

Table of Contents

GENERAL MOTORS

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF INCOME FROM CONTINUING OPERATIONS

For the Three Months Ended March 31, 2003

                                             
Pro Forma Other Pro
GM Pro Forma After Forma
Historical Adjustments(a) Transactions Adjustments Pro Forma
(in millions, except per share data)
Total net sales and revenues
  $ 49,365     $ (2,227 )   $ 47,138     $ —     $ 47,138  
Cost of sales and other expenses
    39,383       (1,480 )     37,903       —       37,903  
Selling, general, and administrative expenses
    5,706       (716 )     4,990       —       4,990  
Interest expense
    2,128       (81 )     2,047       —       2,047  
     
     
     
     
     
 
 
Total costs and expenses
    47,217       (2,277 )     44,940       —       44,940  
Income from continuing operations before income taxes and minority interests
    2,148       50       2,198       —       2,198  
Income tax expense
    656       26       682       —       682  
Equity and minority interests income (loss)
    (9 )     30       21       —       21  
     
     
     
     
     
 
Income (loss) from continuing operations
    1,483       54       1,537       —       1,537  
Income (loss) from discontinued operations
    —       (54 )     (54 )     54       —  
     
     
     
     
     
 
 
Net income
     1,483       —       1,483       54       1,537  
Dividends on preference stocks
    —       —       —       —       —  
     
     
     
     
     
 
 
Earnings attributable to common stocks
   $ 1,483     $ —     $ 1,483     $ 54     $ 1,537  
     
     
     
     
     
 
Earnings Per Share:
                                        
GM $1 2/3 par value common stock:
                                        
 
Basic earnings per share (EPS) from continuing operations
  $ 2.71                             $ 2.74  
 
Diluted EPS from continuing operations
  $ 2.71                             $ 2.74  
GM Class H common stock:
                                        
 
Basic EPS from continuing operations
  $ (0.04 )                           $ — (h)
 
Diluted EPS from continuing operations
  $ (0.04 )                           $ — (h)
Shares Outstanding:
                                        
GM $1 2/3 par value common stock:
                                        
 
Average shares outstanding
    560.6                               560.6  
 
Adjusted diluted shares outstanding
    560.7                               560.7  
GM Class H common stock:
                                        
 
Average shares outstanding
    989.8                               — (h)
 
Adjusted diluted shares outstanding
    989.8                               — (h)

The accompanying notes are an integral part of the

Unaudited Pro Forma Condensed Consolidated Financial Statements.

20

Table of Contents

GENERAL MOTORS

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF INCOME FROM CONTINUING OPERATIONS

For the Year Ended December 31, 2002

                                             
Pro Forma Other Pro
GM Pro Forma After Forma
Historical Adjustments(a) Transactions Adjustments Pro Forma
(in millions, except per share data)
Total net sales and revenues
  $ 186,763     $ (9,487 )   $ 177,276     $ —     $ 177,276  
Cost of sales and other expenses
    153,344       (6,165 )     147,179       —       147,179  
Selling, general, and administrative expenses
    23,624       (3,244 )     20,380       —       20,380  
Interest expense
    7,715       (336 )     7,379       —       7,379  
     
     
     
     
     
 
 
Total costs and expenses
    184,683       (9,745 )     174,938       —       174,938  
Income from continuing operations before income taxes and minority interests
    2,080       258       2,338       —       2,338  
Income tax expense
    533       111       644       —       644  
Equity and minority interests income (loss)
    189       92       281       —       281  
     
     
     
     
     
 
Income (loss) from continuing operations
    1,736       239       1,975       —       1,975  
Income (loss) from discontinued operations
    —       (239 )     (239 )     239       —  
     
     
     
     
     
 
 
Net income
     1,736       —       1,736       239       1,975  
Dividends on preference stocks
    (47 )     —       (47 )     47 (i)     —  
     
     
     
     
     
 
 
Earnings attributable to common stocks
   $ 1,689     $ —     $ 1,689     $ 286     $ 1,975  
     
     
     
     
     
 
Earnings Per Share:
                                        
GM $1 2/3 par value common stock:
                                        
 
Basic earnings per share (EPS) from continuing operations
  $ 3.37                             $ 3.53  
 
Diluted EPS from continuing operations
  $ 3.35                             $ 3.51  
GM Class H common stock:
                                        
 
Basic EPS from continuing operations
  $ (0.21 )                           $ — (h)
 
Diluted EPS from continuing operations
  $ (0.21 )                           $ — (h)
Shares Outstanding:
                                        
GM $1 2/3 par value common stock:
                                        
 
Average shares outstanding
    560.0                               560.0  
 
Adjusted diluted shares outstanding
    562.0                               562.0  
GM Class H common stock:
                                        
 
Average shares outstanding
    919.8                               — (h)
 
Adjusted diluted shares outstanding
    919.8                               — (h)

The accompanying notes are an integral part of the

Unaudited Pro Forma Condensed Consolidated Financial Statements.

21

Table of Contents

Notes to General Motors Unaudited Pro Forma

Condensed Consolidated Financial Statements

(a) Records removal of the assets and liabilities of Hughes prior to the items discussed in notes (b), (d), and (g), and the reclassification of Hughes’ operating results to income from discontinued operations upon the receipt of the requisite GM common stockholder approval of each of the five proposals relating to the transactions and the satisfaction of all regulatory related conditions to the transactions.
 
(b) Records the net assets of Hughes as discontinued operations.
 
(c) Consolidation adjustments which are not required if Hughes is a separate company.
 
(d) Reflects the receipt by GM of the $275 million special cash dividend from Hughes and an associated reduction in GM’s investment book value in Hughes.
 
(e) Records the sale of GM’s 19.9% retained economic interest in Hughes to News Corporation pursuant to the GM/News stock sale. For pro forma purposes, GM’s retained economic interest percentage as of March 31, 2003 is used. The gain was calculated as follows:
                   
Proceeds:        
 
Total shares of Hughes Class B common stock (in millions)
    274          
 
Price per share
  x $14.00          
     
         
 
Total
    3,841          
 
Fixed price shares percentage
  x 80 %        
     
         
 
Fixed price shares—cash proceeds
            3,073  
 
Variable price shares percentage
  x 20 %        
     
         
 
Variable price shares—News Corp Preferred ADSs
            768  
             
 
 
Total proceeds
            3,841  
Historical book value of GM’s investment in Hughes as of March 31, 2003   $ 10,641  
Adjustment to reflect the special cash dividend from Hughes     (275 )
             
 
Pro forma book value of GM’s investment in Hughes as of March 31, 2003     10,366  
GM’s percentage retained economic interest in Hughes     19.9 %
             
 
Pro forma book value of GM’s 19.9% retained economic interest in Hughes as of March 31, 2003     2,058  
Pre-tax gain     1,783  
Tax expense, calculated at 38% of the proceeds less the tax basis of GM’s
   economic interest in Hughes 		    (561 )
             
 
Net gain   $ 1,222  
             
 

22

Table of Contents

(f) Records the distribution, in the Hughes split-off exchange, of Hughes common stock at book value based on Accounting Principles Board (APB) Opinion No. 29, “Accounting for Nonmonetary Transactions,” and the Financial Accounting Standards Board’s Emerging Issues Task Force Issue 01-02, “Interpretations of APB Opinion No. 29.”
 
(g) Adjustment to reflect estimated transaction costs including financial advisory, legal and accounting fees.
 
(h) After the Hughes split-off and the GM/News stock sale are completed, the GM Class H common stock will no longer be outstanding and GM will only have one class of common stock outstanding, the GM $1 2/3 par value common stock.
 
(i) Assumes the cancellation of the GM Series H preference stock at the time of the transactions.
 
(j) To reflect the removal of other comprehensive income items as a result of the Hughes split-off.

23

Table of Contents

GM PRO FORMA CAPITALIZATION

      The following table sets forth the capitalization of General Motors and its consolidated subsidiaries at March 31, 2003, and as adjusted to reflect the completion of the separation of Hughes from GM and acquisition by News Corporation of 34% of Hughes. The table below should be read in conjunction with GM’s consolidated financial statements (including the notes thereto) in GM’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and with Management’s Discussion and Analysis of Financial Condition and Results of Operations which has been restated to comply with SEC Regulation G and is included in this Current Report on Form 8-K, and GM’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003.

      The pro forma information gives effect to the transactions.

                             
As of March 31, 2003
Historical Adjustments Pro Forma
(in millions)
Notes and loans payable
  $ 211,726     $ (5,015 )   $ 206,711  
Minority Interests
    835       (564 )     271  
Stockholders’ Equity
                       
GM common stock
                       
 
GM $1 2/3 par value common stock
    934       —       934  
 
GM Class H common stock
    111       (111 )     —  
Capital surplus (principally additional paid-in capital)
    22,808       (8,197 )     14,611  
Retained earnings
    11,234       1,122       12,356  
   
   
   
 
   
Subtotal
    35,087       (7,186 )     27,901  
Accumulated foreign currency translation adjustments
    (2,665 )     27       (2,638 )
Net unrealized loss on derivatives
    (196 )     3       (193 )
Net unrealized gains on securities
    344       3       347  
Minimum pension liability adjustment
    (23,204 )     32       (23,172 )
   
   
   
 
   
Total stockholders’ equity
  $ 9,366     $ (7,121 )   $ 2,245  
   
   
   
 
   
Total capitalization
  $ 221,927     $ (12,700 )   $ 209,227  
   
   
   
 
Amount Available for the Payment of Dividends
                       
GM $1 2/3 par value common stock
  $ 11,596     $ 15,371     $ 26,967  
GM Class H common stock
    22,446       (22,446 )     —  
   
   
   
 
   
Total
  $ 34,042     $ (7,075 )   $ 26,967  
   
   
   
 

24

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     
    GENERAL MOTORS CORPORATION
   
    (Registrant)
     
Date June 19, 2003    
     
    By
    /s/ Peter R. Bible
   
    (Peter R. Bible,
    Chief Accounting Officer)

25