Item 8. Financial Statements and Supplementary Data

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Item 8. Financial Statements and Supplementary Data

CONSOLIDATED INCOME STATEMENTS

(In millions, except per share amounts)


	Years Ended December 31,
	2022		2021		2020
Net sales and revenue
Automotive	$	143,975	$	113,590	$	108,673
GM Financial	12,760		13,414		13,812
Total net sales and revenue (Note 3)	156,735		127,004		122,485
Costs and expenses
Automotive and other cost of sales	126,892		100,544		97,539
GM Financial interest, operating and other expenses	8,862		8,582		11,274
Automotive and other selling, general and administrative expense	10,667		8,554		7,038

Total costs and expenses	146,421		117,680		115,851
Operating income (loss)	10,315		9,324		6,634
Automotive interest expense	987		950		1,098
Interest income and other non-operating income, net (Note 19)	1,432		3,041		1,885

Equity income (loss) (Note 8)	837		1,301		674
Income (loss) before income taxes	11,597		12,716		8,095
Income tax expense (benefit) (Note 17)	1,888		2,771		1,774

Net income (loss)	9,708		9,945		6,321
Net loss (income) attributable to noncontrolling interests	226		74		106
Net income (loss) attributable to stockholders	$	9,934	$	10,019	$	6,427

Net income (loss) attributable to common stockholders	$	8,915	$	9,837	$	6,247

Earnings per share (Note 21)
Basic earnings per common share	$	6.17	$	6.78	$	4.36
Weighted-average common shares outstanding – basic	1,445		1,451		1,433

Diluted earnings per common share	$	6.13	$	6.70	$	4.33
Weighted-average common shares outstanding – diluted	1,454		1,468		1,442

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)


	Years Ended December 31,
	2022		2021		2020
Net income (loss)	$	9,708	$	9,945	$	6,321
Other comprehensive income (loss), net of tax (Note 20)
Foreign currency translation adjustments and other	(340)		80		(523)


Defined benefit plans	1,677		4,126		(1,795)

Other comprehensive income (loss), net of tax	1,337		4,206		(2,318)
Comprehensive income (loss)	11,045		14,151		4,003
Comprehensive loss (income) attributable to noncontrolling interests	257		87		92
Comprehensive income attributable to stockholders (loss)	$	11,303	$	14,238	$	4,095

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

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts)


	December 31, 2022		December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	19,153	$	20,067
Marketable debt securities (Note 4)	12,150		8,609

Accounts and notes receivable, net of allowance of $260 and $192	13,333		7,394
GM Financial receivables, net of allowance of $869 and $703 (Note 5; Note 11 at VIEs)	33,623		26,649
Inventories (Note 6)	15,366		12,988
Other current assets (Note 4; Note 11 at VIEs)	6,825		6,396

Total current assets	100,451		82,103
Non-current Assets

GM Financial receivables, net of allowance of $1,227 and $1,183 (Note 5; Note 11 at VIEs)	40,591		36,167
Equity in net assets of nonconsolidated affiliates (Note 8)	10,176		9,677
Property, net (Note 9)	45,248		41,115
Goodwill and intangible assets, net (Note 10)	4,945		5,087

Equipment on operating leases, net (Note 7; Note 11 at VIEs)	32,701		37,929
Deferred income taxes (Note 17)	20,539		21,152
Other assets (Note 4; Note 11 at VIEs)	9,386		11,488

Total non-current assets	163,586		162,615
Total Assets	$	264,037	$	244,718
LIABILITIES AND EQUITY

Current Liabilities
Accounts payable (principally trade)	$	27,486	$	20,391
Short-term debt and current portion of long-term debt (Note 13)
Automotive	1,959		463
GM Financial (Note 11 at VIEs)	36,819		33,257
Accrued liabilities (Note 12)	24,910		20,297

Total current liabilities	91,173		74,408
Non-current Liabilities
Long-term debt (Note 13)
Automotive	15,885		16,355
GM Financial (Note 11 at VIEs)	60,036		59,304
Postretirement benefits other than pensions (Note 15)	4,193		5,743
Pensions (Note 15)	5,698		8,008
Other liabilities (Note 12)	14,767		15,085

Total non-current liabilities	100,579		104,495
Total Liabilities	191,752		178,903
Commitments and contingencies (Note 16)
Noncontrolling interest - Cruise stock incentive awards (Note 20)	357		—
Equity (Note 20)



Common stock, $0.01 par value	14		15
Additional paid-in capital	26,428		27,061
Retained earnings	49,251		41,937
Accumulated other comprehensive loss	(7,901)		(9,269)
Total stockholders’ equity	67,792		59,744
Noncontrolling interests	4,135		6,071
Total Equity	71,927		65,815
Total Liabilities and Equity	$	264,037	$	244,718

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

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)


	Years Ended December 31,
	2022		2021		2020
Cash flows from operating activities
Net income (loss)	$	9,708	$	9,945	$	6,321
Depreciation and impairment of Equipment on operating leases, net	4,839		6,076		7,178
Depreciation, amortization and impairment charges on Property, net	6,451		5,975		5,637
Foreign currency remeasurement and transaction (gains) losses	172		(17)		203
Undistributed earnings of nonconsolidated affiliates, net	193		(517)		524
Pension contributions and OPEB payments	(790)		(838)		(851)
Pension and OPEB income, net	(1,189)		(1,605)		(765)
Provision (benefit) for deferred taxes	425		2,214		925
Change in other operating assets and liabilities (Note 24)	(2,977)		(3,366)		(399)
Other operating activities	(790)		(2,679)		(2,103)


Net cash provided by (used in) operating activities	16,043		15,188		16,670
Cash flows from investing activities
Expenditures for property	(9,238)		(7,509)		(5,300)
Available-for-sale marketable securities, acquisitions	(11,837)		(8,962)		(16,204)

Available-for-sale marketable securities, liquidations	8,057		9,347		11,941


Purchases of finance receivables, net	(33,974)		(33,009)		(30,090)
Principal collections and recoveries on finance receivables	26,887		24,622		19,726
Purchases of leased vehicles, net	(11,949)		(14,602)		(15,233)
Proceeds from termination of leased vehicles	14,234		14,393		13,399
Other investing activities	(62)		(635)		(65)


Net cash provided by (used in) investing activities	(17,882)		(16,355)		(21,826)
Cash flows from financing activities
Net increase (decrease) in short-term debt	373		2,912		277
Proceeds from issuance of debt (original maturities greater than three months)	45,813		45,300		78,527
Payments on debt (original maturities greater than three months)	(39,606)		(47,806)		(72,663)
Payments to purchase common stock	(2,500)		—		(90)
Issuance (redemption) of subsidiary stock (Note 20)	(2,121)		1,736		492
Dividends paid	(397)		(186)		(669)
Other financing activities	(1,178)		(212)		(322)


Net cash provided by (used in) financing activities	383		1,744		5,552
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(138)		(152)		(222)
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,594)		425		174
Cash, cash equivalents and restricted cash at beginning of period	23,542		23,117		22,943
Cash, cash equivalents and restricted cash at end of period	$	21,948	$	23,542	$	23,117



Significant Non-cash Investing and Financing Activity
Non-cash property additions	$	5,376	$	4,305	$	2,300

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

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(In millions)


	Common Stockholders’											Noncontrolling Interests		Total Equity		Noncontrolling Interest Cruise Stock Incentive Awards (Temporary Equity)
Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss
Balance at January 1, 2020	$	14		$	26,074		$	26,860		$	(11,156)	$	4,165	$	45,957	$	—
Adoption of accounting standards	—			—			(660)			—		—		(660)		—
Net income (loss)	—			—			6,427			—		(106)		6,321		—
Other comprehensive income (loss)	—			—			—			(2,332)		14		(2,318)		—
Issuance (redemption) of subsidiary stock (Note 20)	—			—			—			—		544		544		—
Purchase of common stock	—			(57)			(33)			—		—		(90)		—
Stock based compensation	—			525			(10)			—		—		515		—
Cash dividends paid on common stock	—			—			(545)			—		—		(545)		—
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		—


Net income (loss)	—			—			10,019			—		(74)		9,945		—
Other comprehensive income (loss)	—			—			—			4,219		(13)		4,206		—
Issuance (redemption) of subsidiary stock (Note 20)	—			—			—			—		1,736		1,736		—

Stock based compensation	—			526			(3)			—		—		523		—

Dividends to noncontrolling interests	—			—			—			—		(186)		(186)		—
Other	1			(7)			(41)			—		(39)		(86)		—
Balance at December 31, 2021	15			27,061			41,937			(9,269)		6,071		65,815		—


Net income (loss)	—			—			9,934			—		(226)		9,708		—
Other comprehensive income (loss)	—			—			—			1,368		(31)		1,337		—
Issuance (redemption) of subsidiary stock (Note 20)	—			—			(909)			—		(1,212)		(2,121)		—
Purchase of common stock	(1)			(1,153)			(1,347)			—		—		(2,500)		—
Stock based compensation	—			299			(5)			—		—		294		299
Cash dividends paid on common stock	—			—			(257)			—		—		(257)		—
Dividends to noncontrolling interests	—			—			(12)			—		(127)		(140)		—
Other	—			221			(90)			—		(340)		(208)		59
Balance at December 31, 2022	$	14		$	26,428		$	49,251		$	(7,901)	$	4,135	$	71,927	$	357

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

Amounts may not add due to rounding.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Nature of Operations and Basis of Presentation

General Motors Company was incorporated as a Delaware corporation in 2009. We design, build and sell trucks, crossovers, cars and automobile parts and provide software-enabled services and subscriptions worldwide. Additionally, we are investing in and growing an AV business. We also provide automotive financing services through GM Financial. We analyze the results of our operations through the following segments: GMNA, GMI, Cruise and GM Financial. Cruise is our global segment responsible for the development and commercialization of AV 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. The consolidated financial statements are prepared in conformity with U.S. GAAP. Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

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 are 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.

Use of Estimates in the Preparation of the Financial Statements Accounting estimates are an integral part of the consolidated financial statements. These estimates require the use of judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in the periods presented. We believe that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual results could differ from the original estimates, requiring adjustments to these balances in future periods.

GM Financial The amounts presented for GM Financial are adjusted to reflect the impact on GM Financial's deferred tax positions and provision for income taxes resulting from the inclusion of GM Financial in our consolidated tax return and to eliminate the effect of transactions between GM Financial and the other members of the consolidated group. Accordingly, the amounts presented will differ from those presented by GM Financial on a stand-alone basis.

Note 2. Significant Accounting Policies

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

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 future customer behavior and market conditions. Subsequent adjustments to incentive estimates are possible as facts and circumstances change over time. A portion of the consideration received is deferred for separate performance obligations, such as maintenance, services and vehicle connectivity, that will be provided to our customers at a future date. Taxes assessed by various government entities, such as sales, use and value-added taxes, collected at the time of the vehicle sale are excluded from Automotive net sales and revenue. Costs for shipping and handling activities that occur after control of the vehicle transfers to the dealer are recognized at the time of sale and presented in Automotive and other cost of sales.

Vehicle, 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 typically occurs either when the vehicle is released to the carrier responsible for transporting it to a dealer or upon delivery to a dealer. Revenue, net of estimated returns, is recognized on the sale of parts upon delivery to 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.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Typically, 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 sale and recognize deferred revenue in earnings upon completion of the remarketing service.

Used Vehicles Proceeds from the auction of 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, OnStar, Super Cruise, 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 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 manufacturer subvention) 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. Payments received on nonaccrual loans are first applied to any fees due, then to any interest due and then any remaining amounts are applied to principal. Interest accrual generally resumes once an account has received payments bringing the delinquency to less than 60 days past due. Accrual of finance charge income on commercial finance receivables is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt exists about the full collectability of contractually agreed upon principal and interest. Payments received on nonaccrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the account fully current and collection of contractual principal and interest is reasonably assured (including amounts previously charged off).

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 expenses.

Advertising and Promotion Expenditures Advertising and promotion expenditures, which are expensed as incurred in Automotive and other selling, general and administrative expense, were $4.0 billion, $3.3 billion and $2.7 billion in the years ended December 31, 2022, 2021 and 2020.

Research and Development Expenditures Research and development expenditures, which are expensed as incurred in Automotive and other cost of sales, were $9.8 billion, $7.9 billion and $6.2 billion in the years ended December 31, 2022, 2021 and 2020. We enter into co-development arrangements with third parties or nonconsolidated affiliates for product-related research, engineering, design and development activities. Cost sharing payments and fees related to these arrangements are presented in Automotive and other cost of sales.

Cash Equivalents and Restricted Cash Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. 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. Restricted cash is invested in accordance with the terms of the underlying agreements and include amounts related to various deposits, escrows and other cash collateral. Restricted cash is included in Other current assets and Other assets in the consolidated balance sheets.

Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and Level 3 – Instruments whose significant inputs are unobservable.

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 non-credit related unrealized gains and losses recorded in Accumulated other comprehensive loss until realized. 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. 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.

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. These prices represent non-binding quotes. Our pricing service utilizes industry-standard pricing models that consider various inputs. We review our pricing service quarterly and believe the prices received from our pricing service are a reliable representation of exit prices.

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 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, 2022, 2021 and 2020.

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

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 forecasted auto industry conditions, 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. Net realizable value is the estimated selling price in the ordinary course of business less cost to sell, and considers general market and economic conditions, periodic reviews of current profitability of vehicles, product warranty costs and the effect of estimated sales incentives. Net realizable value for off-lease and other vehicles is current auction sales proceeds less disposal and warranty costs. 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.

Equipment on Operating Leases Equipment on operating leases, net primarily consists of vehicle leases to retail customers with lease terms of two to five years. 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 agreements and are determined based on

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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. The estimate of the residual value is evaluated over the life of the arrangement and adjustments may be made to the extent the expected value of the vehicle changes. Adjustments may be in the form of revisions to the depreciation rate or recognition of an impairment charge. A lease vehicle asset group is determined to be impaired if an impairment indicator exists and the expected future cash flows, which include estimated residual values, are lower than the carrying amount of the vehicle asset group. If the carrying amount is considered impaired an impairment charge is recorded for the amount by which the carrying amount exceeds fair value of the vehicle asset group. Fair value is determined primarily using the anticipated cash flows, including estimated residual values. In our automotive finance operations when a leased vehicle is returned or repossessed the asset is recorded in Other assets at the lower of amortized cost or net realizable value. Upon disposition a gain or loss is recorded in GM Financial interest, operating and other expenses for any difference between the net book value of the leased asset and the proceeds from the disposition of the asset.

Equity Investments When events and circumstances warrant, equity investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other-than-temporary. Impairment charges related to equity method investments are recorded in Equity income. Equity investments that are not accounted for under the equity method of accounting are measured at fair value or in certain cases adjusted to fair value upon an observable price change, with changes in fair value recorded in Interest income and other non-operating income, net.

Property, net Property, plant and equipment, including internal use software, is recorded at cost. Major improvements that extend the useful life or add functionality are capitalized. 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. We depreciate depreciable property using the straight-line method. 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 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. Impairment charges related to property are recorded in Automotive and other cost of sales, Automotive and other selling, general and administrative expense or GM Financial interest, operating and other expenses.

Special Tools Special tools represent product-specific propulsion and non-propulsion related tools, dies, molds and other items used in the vehicle manufacturing process. Expenditures for special tools are recorded at cost and are capitalized. We amortize special tools over their estimated useful lives using the straight-line method or an accelerated amortization method based on their historical and estimated production volume. 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 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. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value.

Intangible Assets, net Intangible assets, excluding goodwill, primarily include brand names, technology and intellectual property, customer relationships and dealer networks. Intangible assets are amortized on a straight-line or an accelerated method of amortization over their estimated useful lives. Amortization of developed technology and intellectual property is recorded in Automotive and other cost of sales. Amortization of brand names, customer relationships and our dealer networks is recorded in Automotive and other selling, general and administrative expense or GM Financial interest, operating and other expenses. 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.

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. If the carrying amount of a long-lived asset group is considered impaired, a loss is recorded based on the amount by which the carrying amount exceeds fair value. Product-specific long-lived asset groups and non-product specific long-lived assets are separately tested for impairment on an asset group basis. Fair value is determined using either the market or sales comparison approach, cost approach or anticipated cash flows discounted at a rate commensurate with the risk involved. Long-lived assets to be disposed of other than by sale are considered held for use until disposition.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Government Incentives and Grants We receive incentives from federal, state and local governments in different regions of the world that primarily encourage us to establish, maintain, or increase investment, employment, or production in the region. We account for government incentives as a reduction of expense, a reduction of the cost of the capital investment, or other income based on the substance of the incentive received. Benefits are generally recorded when there is reasonable assurance of receipt and amounts are recorded in earnings as the expenses in which the incentive is meant to offset are incurred, as we meet the conditions of the grant or as the capital investment is depreciated. At December 31, 2022, cash incentives receivable in Accounts and notes receivable, net of allowance was $300 million, cash incentives receivable in Other assets was $248 million and deferred incentive income in Other liabilities was $250 million. In the year ended December 31, 2022, we recognized $234 million in Automotive and other cost of sales associated with incentives. Current agreements expire at various dates through 2031 and we consider the risk that any amounts recognized will be returned to be remote.

Pension and OPEB Plans

Attribution, Methods and Assumptions The cost of benefits provided by defined benefit pension plans is recorded in the period employees provide service. The cost of pension plan amendments that provide for benefits already earned by plan participants is amortized over the expected period of benefit which may be the duration of the applicable collective bargaining agreement specific to the plan, the expected future working lifetime or the life expectancy of the plan participants.

The cost of medical, dental, legal service and life insurance benefits provided through postretirement benefit plans is recorded in the period employees provide service. The cost of postretirement plan amendments that provide for benefits already earned by plan participants is amortized over the expected period of benefit which may be the average period to full eligibility or the average life expectancy of the plan participants.

An expected return on plan asset methodology is utilized to calculate future pension expense for certain significant funded benefit plans. A market-related value of plan assets methodology is also utilized that averages gains and losses on the plan assets over a period of years to determine future pension expense. The methodology recognizes 60% of the difference between the fair value of assets and the expected calculated value in the first year and 10% of that difference over each of the next four years.

The discount rate assumption is established for each of the retirement-related benefit plans at their respective measurement dates. In the U.S., we use a cash flow matching approach that uses projected cash flows matched to spot rates along a high-quality corporate bond yield curve to determine the present value of cash flows to calculate a single equivalent discount rate. We apply individual annual yield curve rates to determine the service cost and interest cost for our pension and OPEB plans to more specifically link the cash flows related to service cost and interest cost to bonds maturing in their year of payment.

The benefit obligation for pension plans in Canada, the United Kingdom and Germany represents 90% of the non-U.S. pension benefit obligation at December 31, 2022. The discount rates for plans in Canada, the United Kingdom and Germany are determined using a cash flow matching approach like the U.S.

Plan Asset Valuation Due to the lack of timely available market information for certain investments in the asset classes described below as well as the inherent uncertainty of valuation, reported fair values may differ from fair values that would have been used had timely available market information been available.

Common and Preferred Stock Common and preferred stock for which market prices are readily available at the measurement date are valued at the last reported sale price or official closing price on the primary market or exchange on which they are actively traded and are classified in Level 1. Such equity securities for which the market is not considered to be active are valued via the use of observable inputs, which may include the use of adjusted market prices last available, bids or last available sales prices and/or other observable inputs and are classified in Level 2. Common and preferred stock classified in Level 3 are privately issued securities or other issues that are valued via the use of valuation models using significant unobservable inputs that generally consider aged (stale) pricing, earnings multiples, discounted cash flows and/or other qualitative and quantitative factors.

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 observable inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type as well

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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.

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.

NAVs are provided by the respective investment sponsors or investment advisers and are subsequently reviewed and approved by management. In the event management concludes a reported NAV does not reflect fair value or is not determined as of the financial reporting measurement date, we will consider whether and when deemed necessary to make an adjustment at the balance sheet date. 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, 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 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, 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. In March 2022, all outstanding RSUs that settle in Cruise's common stock were modified to remove the liquidity vesting condition. Prospectively, RSUs that will settle in Cruise's common stock will vest solely upon satisfaction of a service condition. 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 cost is also recorded on stock issued to settle awards based on the fair value of Cruise's common stock until such time that the stock has been issued for more than six months.

Product Warranty and Recall Campaigns The estimated costs related to product warranties are accrued at the time products are sold and are charged to Automotive and other cost of sales. These estimates are established using historical information on the nature, frequency and average cost of claims of each vehicle line or each model year of the vehicle line and assumptions about future activity and events. Revisions are made when necessary and are based on changes in these factors.

The estimated costs related to recall campaigns are accrued when probable and estimable. In GMNA, we estimate the costs related to recall campaigns by applying a paid loss approach that considers the number of historical recall campaigns and the estimated cost for each recall campaign. The estimated costs associated with recall campaigns in other geographical regions are determined using the estimated costs of repairs and the estimated number of vehicles to be repaired. Costs associated with recall campaigns are charged to Automotive and other cost of sales. Revisions are made when necessary based on changes in these factors.

Income Taxes The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year in which the differences are expected to reverse. 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. We record Global Intangible Low Tax Income (GILTI) as a current period expense when incurred.

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. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

losses in recent years. We utilize a rolling three years of actual and current year results as the primary measure of cumulative losses in recent years.

We record uncertain tax positions on the basis of a two-step process whereby we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and for those tax positions that meet the more likely than not criteria, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in Income tax expense.

Foreign Currency Transactions and Translation The assets and liabilities of foreign subsidiaries that use the local currency as their functional currency are translated to U.S. Dollars based on the current exchange rate prevailing at each balance sheet date and any resulting translation adjustments are included in Accumulated other comprehensive loss. The assets and liabilities of foreign subsidiaries whose local currency is not their functional currency are remeasured from their local currency to their functional currency and then translated to U.S. Dollars. Revenues and expenses are translated into U.S. Dollars using the average exchange rates prevailing for each period presented. The financial statements of any foreign subsidiary that has been identified as having a highly inflationary economy are remeasured as if the functional currency were the U.S. Dollar.

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 transactions and remeasurements in the years ended December 31, 2022, 2021 and 2020 were $172 million of losses, insignificant gains and $203 million of losses.

Derivative Financial Instruments Derivative financial instruments are recognized as either assets or liabilities at fair value. The accounting for changes in the fair value of each derivative financial instrument depends on whether it has been designated and qualifies as an accounting hedge, as well as the type of hedging relationship identified. Cash flows for all derivative financial instruments are typically classified in cash flows from operating activities. Derivative instruments are not used for trading or speculative purposes.

Automotive We utilize options, swaps and forward contracts to manage foreign currency and commodity price risk. The change in the fair value of option, swap and forward contracts not designated as an accounting hedge is recorded in Interest income and other non-operating income, net.

Certain foreign currency and commodity forward contracts have been designated and qualify as cash flow hedges. The risk being hedged is foreign currency and commodity price risk related to forecasted transactions. The change in the fair value of these forward contracts is recorded in Accumulated other comprehensive loss and will be recognized in Automotive net sales and revenue or Automotive and other cost of sales when the hedged transaction impacts earnings. Forward contracts designated as cash flow hedges are evaluated for effectiveness using regression analysis at inception and throughout the hedge period.

Automotive Financing - GM Financial GM Financial utilizes interest rate derivative instruments to manage interest rate risk and foreign currency derivative instruments to manage foreign currency risk. The change in fair value of the derivative instruments not designated as an accounting hedge is recorded in GM Financial interest, operating and other expenses.

Certain interest rate and foreign currency swap agreements have been designated as fair value hedges. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate or the risk of changes in fair value attributable to changes in foreign currency exchange rates. If the swap has been designated as a fair value hedge, the changes in the fair value of the hedged item are recorded in GM Financial interest, operating and other expenses. The change in fair value of the related hedge is also recorded in GM Financial interest, operating and other expenses.

Certain interest rate swap and foreign currency swap agreements have been designated as cash flow hedges. The risk being hedged is the interest rate and foreign currency risk related to forecasted transactions. If the contract has been designated as a cash flow hedge, the change in the fair value of the cash flow hedge is deferred in Accumulated other comprehensive loss and is recognized in GM Financial interest, operating and other expenses along with the earnings effect of the hedged item when the hedged item affects earnings. Changes in the fair value of amounts excluded from the assessment of effectiveness are recorded currently in earnings and are presented in the same income statement line as the earnings effect of the hedged item.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Recently Adopted Accounting Standards Effective October 1, 2022, we adopted Accounting Standard Update (ASU) 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" (ASU 2022-03), which clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The adoption of ASU 2022-03 was insignificant to our consolidated financial statements.

Accounting Standards Not Yet Adopted In March 2022, the Financial Accounting Standards Board (FASB) issued ASU 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for TDRs and enhances certain disclosure requirements. We adopted ASU 2022-02 on a modified retrospective basis on January 1, 2023. The impact of the adoption of ASU 2022-02 was insignificant.

Note 3. Revenue

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


	Year Ended December 31, 2022
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total
Vehicle, parts and accessories	$	124,657	$	13,993	$	42	$	138,692	$	—	$	—	$	—	$	138,692
Used vehicles	483		33		—		516		—		—		—		516
Services and other	3,238		1,393		134		4,765		102		—		(101)		4,766
Automotive net sales and revenue	128,378		15,420		177		143,974		102		—		(101)		143,975
Leased vehicle income	—		—		—		—		—		7,811		—		7,811
Finance charge income	—		—		—		—		—		4,521		(2)		4,519
Other income	—		—		—		—		—		435		(4)		431
GM Financial net sales and revenue	—		—		—		—		—		12,766		(6)		12,760
Net sales and revenue	$	128,378	$	15,420	$	177	$	143,974	$	102	$	12,766	$	(107)	$	156,735


	Year Ended December 31, 2021
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total
Vehicle, parts and accessories	$	97,515	$	10,956	$	14	$	108,485	$	—	$	—	$	—	$	108,485
Used vehicles	545		49		—		594		—		—		—		594
Services and other	3,248		1,167		90		4,505		106		—		(100)		4,511
Automotive net sales and revenue	101,308		12,172		104		113,584		106		—		(100)		113,590
Leased vehicle income	—		—		—		—		—		9,026		—		9,026
Finance charge income	—		—		—		—		—		4,103		—		4,103
Other income	—		—		—		—		—		290		(5)		285
GM Financial net sales and revenue	—		—		—		—		—		13,419		(5)		13,414
Net sales and revenue	$	101,308	$	12,172	$	104	$	113,584	$	106	$	13,419	$	(105)	$	127,004


	Year Ended December 31, 2020
	GMNA		GMI		Corporate		Total Automotive		Cruise		GM Financial		Eliminations/ Reclassifications		Total
Vehicle, parts and accessories	$	92,749	$	10,593	$	1	$	103,343	$	—	$	—	$	—	$	103,343
Used vehicles	875		115		20		1,010		—		—		—		1,010
Services and other	3,109		878		329		4,316		103		—		(99)		4,320
Automotive net sales and revenue	96,733		11,586		350		108,669		103		—		(99)		108,673
Leased vehicle income	—		—		—		—		—		9,530		—		9,530
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

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Adjustments to sales incentives for previously recognized sales were insignificant during the years ended December 31, 2022, 2021 and 2020.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Contract liabilities in our Automotive segments primarily consist of maintenance, extended warranty and other service contracts of $3.3 billion and $2.5 billion at December 31, 2022 and 2021, which are included in Accrued liabilities and Other liabilities. We recognized revenue of $1.3 billion and $1.2 billion related to contract liabilities during the years ended December 31, 2022 and 2021. We expect to recognize revenue of $1.3 billion, $680 million and $1.4 billion in the years ending December 31, 2023, 2024 and thereafter related to contract liabilities at December 31, 2022.

Note 4. Marketable and Other Securities

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


	Fair Value Level	December 31, 2022		December 31, 2021
Cash and cash equivalents
Cash and time deposits		$	8,921	$	7,881
Available-for-sale debt securities
U.S. government and agencies	2	1,012		722
Corporate debt	2	2,778		5,321
Sovereign debt	2	1,828		2,105
Total available-for-sale debt securities – cash equivalents		5,618		8,148
Money market funds	1	4,613		4,038
Total cash and cash equivalents(a)		$	19,153	$	20,067
Marketable debt securities
U.S. government and agencies	2	$	4,357	$	2,071
Corporate debt	2	5,147		3,396
Mortgage and asset-backed	2	538		575
Sovereign debt	2	2,108		2,567
Total available-for-sale debt securities – marketable securities(b)		$	12,150	$	8,609
Restricted cash
Cash and cash equivalents		$	341	$	466
Money market funds	1	2,455		3,009
Total restricted cash		$	2,796	$	3,475

Available-for-sale debt securities included above with contractual maturities(c)
Due in one year or less		$	10,909
Due between one and five years		6,231


Total available-for-sale debt securities with contractual maturities		$	17,139

(a) Includes $1.5 billion and $1.6 billion in Cruise at December 31, 2022 and 2021.

(b) Includes $1.4 billion and $1.5 billion in Cruise at December 31, 2022 and 2021.

(c) Excludes mortgage and asset-backed securities of $538 million at December 31, 2022 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 $1.8 billion in the year ended December 31, 2022, and $1.9 billion in the years ended December 31, 2021 and 2020. Net unrealized losses on available-for-sale debt securities were $319 million in the year ended December 31, 2022 and insignificant in the years ended December 31, 2021 and 2020. Cumulative unrealized losses on available-for-sale debt securities were $344 million and insignificant at December 31, 2022 and 2021.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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, 2022		December 31, 2021
Cash and cash equivalents	$	19,153	$	20,067
Restricted cash included in Other current assets	2,356		2,935
Restricted cash included in Other assets	440		540
Total	$	21,948	$	23,542

Note 5. GM Financial Receivables and Transactions


	December 31, 2022						December 31, 2021
	Retail		Commercial(a)		Total		Retail		Commercial(a)		Total
GM Financial receivables	$	65,322	$	10,988	$	76,310	$	58,093	$	6,609	$	64,702
Less: allowance for loan losses	(2,062)		(34)		(2,096)		(1,839)		(47)		(1,886)
GM Financial receivables, net	$	63,260	$	10,954	$	74,214	$	56,254	$	6,562	$	62,816

Fair value of GM Financial receivables utilizing Level 2 inputs					$	10,954					$	6,562
Fair value of GM Financial receivables utilizing Level 3 inputs					$	62,150					$	57,613

(a)Net of dealer cash management balances of $1.9 billion and $1.0 billion at December 31, 2022 and 2021. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


	Years Ended December 31,
	2022		2021		2020
Allowance for loan losses at beginning of period	$	1,886	$	1,978	$	944
Impact of adoption ASU 2016-13	—		—		801
Provision for loan losses	654		248		881
Charge-offs	(1,138)		(897)		(1,169)
Recoveries	686		574		542
Effect of foreign currency	9		(17)		(21)
Allowance for loan losses at end of period	$	2,096	$	1,886	$	1,978

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. The following tables are consolidated summaries 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, 2022 and 2021:


	Year of Origination												December 31, 2022
	2022		2021		2020		2019		2018		Prior		Total		Percent
Prime – FICO score 680 and greater	$	22,677	$	13,399	$	7,991	$	2,254	$	1,019	$	205	$	47,543	72.8	%
Near-prime – FICO score 620 to 679	3,202		2,601		1,487		688		310		104		8,392		12.8	%
Sub-prime – FICO score less than 620	3,211		2,746		1,604		1,051		496		280		9,388		14.4	%
Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589	$	65,322	100.0	%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total		Percent
Prime – FICO score 680 and greater	$	19,729	$	12,408	$	4,078	$	2,298	$	763	$	143	$	39,419	67.9	%
Near-prime – FICO score 620 to 679	3,856		2,388		1,229		648		274		84		8,479		14.6	%
Sub-prime – FICO score less than 620	4,053		2,528		1,777		972		570		295		10,195		17.5	%
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522	$	58,093	100.0	%

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 $685 million and $602 million at December 31, 2022 and 2021. The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2022 and 2021:


	Year of Origination												December 31, 2022
	2022		2021		2020		2019		2018		Prior			Total		Percent
0-to-30 days	$	28,676	$	18,128	$	10,702	$	3,743	$	1,685	$	493		$	63,426	97.1	%
31-to-60 days	310		452		275		184		103		69			1,393		2.1	%
Greater-than-60 days	93		150		98		62		35		26			465		0.7	%
Finance receivables more than 30 days delinquent	403		603		373		246		138		95			1,857		2.8	%
In repossession	11		14		6		4		2		1			39		0.1	%
Finance receivables more than 30 days delinquent or in repossession	414		617		380		249		140		96			1,896		2.9	%
Retail finance receivables, net of fees	$	29,090	$	18,745	$	11,081	$	3,992	$	1,824	$	589		$	65,322	100.0	%


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior			Total		Percent
0-to-30 days	$	27,270	$	16,945	$	6,772	$	3,721	$	1,478	$	440		$	56,626	97.5	%
31-to-60 days	273		276		230		147		97		60			1,083		1.8	%
Greater-than-60 days	83		93		76		46		30		21			349		0.6	%
Finance receivables more than 30 days delinquent	356		369		306		193		127		81			1,432		2.4	%
In repossession	12		10		6		4		2		1			35		0.1	%
Finance receivables more than 30 days delinquent or in repossession	368		379		312		197		129		82			1,467		2.5	%
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522		$	58,093	100.0	%

The outstanding amortized cost of retail finance receivables that are considered TDRs was $2.1 billion and $1.9 billion, including $241 million and $219 million in nonaccrual loans at December 31, 2022 and 2021.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for dealer inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. There were no commercial finance receivables on nonaccrual status at December 31, 2022 and 2021.

GM Financial's commercial risk model and 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.

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 tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at December 31, 2022 and 2021:


	Year of Origination(a)														December 31, 2022
	Revolving		2022		2021		2020		2019		2018		Prior			Total		Percent
I	$	9,493	$	438	$	356	$	360	$	91	$	38	$	18		$	10,794	98.2	%
II	89		—		1		—		—		—		—			91		0.8	%
III	78		15		—		—		10		—		—			104		0.9	%
IV	—		—		—		—		—		—		—			—		—	%
Commercial finance receivables, net of fees	$	9,660	$	453	$	357	$	360	$	102	$	38	$	18		$	10,988	100.0	%

(a)Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination.


	Year of Origination(a)														December 31, 2021
	Revolving		2021		2020		2019		2018		2017		Prior			Total		Percent
I	$	5,210	$	420	$	396	$	120	$	50	$	50	$	10		$	6,256	94.7	%
II	207		3		16		12		—		3		—			241		3.6	%
III	81		8		15		2		—		2		4			112		1.7	%
IV	—		—		—		—		—		—		—			—		—	%
Commercial finance receivables, net of fees	$	5,498	$	431	$	427	$	134	$	50	$	55	$	14		$	6,609	100.0	%

(a)Floorplan advances comprise 94% of the total revolving balance. Dealer term loans are presented by year of origination.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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, 2022		December 31, 2021
Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers	$	187	$	163
Receivables due from Cruise	$	113	$	—
Subvention receivable(b)	$	469	$	282
Commercial loan funding payable	$	105	$	26


	Years Ended December 31,
	2022		2021		2020
Consolidated Statements of Income
Interest subvention earned on finance receivables	$	984	$	820	$	679
Leased vehicle subvention earned	$	1,916	$	2,702	$	3,042

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

(b)Our Automotive segments made cash payments to GM Financial for subvention of $2.4 billion, $3.3 billion and $3.9 billion in the years ended December 31, 2022, 2021 and 2020.

GM Financial's Board of Directors declared and paid dividends of $1.7 billion, $3.5 billion and $800 million on its common stock in the years ended December 31, 2022, 2021 and 2020.

Note 6. Inventories


	December 31, 2022		December 31, 2021
Total productive material, supplies and work in process	$	8,014	$	8,240
Finished product, including service parts	7,353		4,748
Total inventories	$	15,366	$	12,988

Note 7. Operating Leases

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 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 $317 million, $294 million and $317 million in the years ended December 31, 2022, 2021 and 2020. Variable lease costs were insignificant in the years ended December 31, 2022, 2021 and 2020. At December 31, 2022 and 2021, operating lease right of use assets in Other assets were $1.1 billion, operating lease liabilities in Accrued liabilities were $247 million and $204 million and non-current operating lease liabilities in Other liabilities were $967 million and $1.0 billion. Operating lease right of use assets obtained in exchange for lease obligations were $252 million and $328 million in the years ended December 31, 2022 and 2021. Our undiscounted future lease obligations related to operating leases having initial terms in excess of one year are $274 million, $240 million, $195 million, $160 million, $122 million and $396 million for the years 2023, 2024, 2025, 2026, 2027 and thereafter, with imputed interest of $173 million as of December 31, 2022. The weighted average discount rate was 4.0% and 3.5% and the weighted-average remaining lease term was 6.7 years and 7.1 years at December 31, 2022 and 2021. Payments for operating leases included in Net cash provided by (used in) operating activities were $314 million, $301 million and $309 million in the years ended December 31, 2022, 2021 and 2020. Lease agreements that have not yet commenced were $198 million at December 31, 2022.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Equipment on Operating Leases

Equipment on operating leases primarily consists of leases to retail customers of GM Financial.


	December 31, 2022		December 31, 2021
Equipment on operating leases	$	40,919	$	47,423
Less: accumulated depreciation	(8,218)		(9,494)
Equipment on operating leases, net	$	32,701	$	37,929

At December 31, 2022, the estimated residual value of our leased assets at the end of the lease term was $24.7 billion.

Depreciation expense related to Equipment on operating leases, net was $4.8 billion, $6.1 billion and $7.2 billion in the years ended December 31, 2022, 2021 and 2020.

The following table summarizes lease payments due to GM Financial on leases to retail customers:


	Years Ending December 31,
	2023		2024		2025		2026		2027		Thereafter		Total
Lease receipts under operating leases	$	4,880	$	2,804	$	1,049	$	117	$	2	$	—	$	8,852

Note 8. Equity in Net Assets of Nonconsolidated Affiliates

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. 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,
	2022		2021		2020
Automotive China equity income (loss)	$	677	$	1,098	$	512
Other joint ventures equity income (loss)	159		203		162
Total Equity income (loss)	$	837	$	1,301	$	674

Investments in Nonconsolidated Affiliates


	December 31, 2022		December 31, 2021
Automotive China carrying amount	$	6,714	$	7,156
Ultium Cells Holdings LLC carrying amount	1,463		650
Other investments carrying amount	1,998		1,871
Total equity in net assets of nonconsolidated affiliates	$	10,176	$	9,677

The carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $4.3 billion at December 31, 2022 and 2021 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, 2022		December 31, 2021
Automotive China JVs
SAIC General Motors Corp., Ltd. (SGM)	50	%	50	%
Pan Asia Technical Automotive Center Co., Ltd.	50	%	50	%
SAIC General Motors Sales Co., Ltd. (SGMS)	49	%	49	%
SAIC GM Wuling Automobile Co., Ltd. (SGMW)	44	%	44	%
Shanghai OnStar Telematics Co., Ltd. (Shanghai OnStar)	40	%	40	%
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. (SGM DYPT)	25	%	25	%
Other joint ventures
SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC)	35	%	35	%
SAIC-GMF Leasing Co., Ltd.	35	%	35	%

SGM is a joint venture we established with Shanghai Automotive Industry Corporation (SAIC) (50%). SGM has interests in three other joint ventures in China: SGM Norsom, SGM DY and SGM DYPT. These three joint ventures are jointly held by SGM (50%), SAIC (25%) and ourselves. These four joint ventures are engaged in the production, import and sale of a range of products under the Buick, Chevrolet and Cadillac brands. SGM also has interests in Shanghai OnStar (20%), SAIC-GMAC (20%) and SAIC-GMF Leasing Co., Ltd. (20%). Shanghai Automotive Group Finance Company Ltd., a subsidiary of SAIC, owns 45% of SAIC-GMAC. SAIC Financial Holdings Company, a subsidiary of SAIC, owns 45% of SAIC-GMF Leasing Co., Ltd.

Summarized Financial Data of Nonconsolidated Affiliates


	December 31, 2022						December 31, 2021
	Automotive China JVs		Others		Total		Automotive China JVs		Others		Total
Summarized Balance Sheet Data
Current assets	$	17,735	$	17,405	$	35,140	$	18,176	$	18,166	$	36,342
Non-current assets	12,428		10,826		23,254		13,948		10,042		23,990
Total assets	$	30,163	$	28,231	$	58,394	$	32,124	$	28,208	$	60,332

Current liabilities	$	23,267	$	17,498	$	40,765	$	24,320	$	17,141	$	41,461
Non-current liabilities	1,167		3,184		4,351		1,223		5,607		6,830
Total liabilities	$	24,434	$	20,682	$	45,116	$	25,543	$	22,748	$	48,291

Noncontrolling interests	$	904	$	—	$	904	$	867	$	—	$	867


	Years Ended December 31,
	2022		2021		2020
Summarized Operating Data
Automotive China JVs' net sales	$	35,857	$	42,776	$	38,736
Others' net sales	2,029		2,017		1,850
Total net sales	$	37,886	$	44,793	$	40,586

Automotive China JVs' net income	$	1,407	$	2,109	$	1,239
Others' net income	426		587		436
Total net income	$	1,833	$	2,696	$	1,675

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. We enter into transactions with certain nonconsolidated affiliates to purchase and sell component parts and vehicles. The following tables summarize transactions with and balances related to our nonconsolidated affiliates:


	Years Ended December 31,
	2022		2021		2020
Automotive sales and revenue	$	218	$	227	$	235
Automotive purchases, net	$	2,637	$	1,551	$	165
Dividends received	$	1,030	$	783	$	1,198
Operating cash flows	$	(1,133)	$	(616)	$	1,473


	December 31, 2022		December 31, 2021
Accounts and notes receivable, net	$	1,089	$	1,004
Accounts payable	$	942	$	555
Undistributed earnings	$	1,918	$	2,111

Note 9. Property


	Estimated Useful Lives in Years	December 31, 2022		December 31, 2021
Land		$	1,307	$	1,301
Buildings and improvements	5-40	11,461		10,542
Machinery and equipment	3-27	33,413		31,444
Special tools	1-13	24,775		23,719
Construction in progress		7,340		5,395
Total property		78,295		72,401
Less: accumulated depreciation		(33,047)		(31,286)
Total property, net		$	45,248	$	41,115

The amount of capitalized software included in Property, net was $1.8 billion and $1.4 billion at December 31, 2022 and 2021. The amount of interest capitalized and excluded from Automotive interest expense related to Property, net was insignificant in the years ended December 31, 2022, 2021 and 2020.


	Years Ended December 31,
	2022		2021		2020
Depreciation and amortization expense	$	6,297	$	5,829	$	5,354
Impairment charges	$	12	$	—	$	86


Capitalized software amortization expense(a)	$	614	$	515	$	457

(a) Included in depreciation and amortization expense.

Note 10. Goodwill and Intangible Assets

Goodwill of $1.9 billion consisted of $1.3 billion in GM Financial and $571 million and $574 million in Cruise at December 31, 2022 and 2021.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)


	December 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Technology and intellectual property	$	767	$	564	$	203	$	764	$	555	$	209
Brands	4,294		1,658		2,636		4,296		1,550		2,746
Dealer network, customer relationships and other	960		765		195		966		748		218
Total intangible assets	$	6,021	$	2,987	$	3,034	$	6,026	$	2,853	$	3,173

Our amortization expense related to intangible assets was $139 million, $141 million and $144 million in the years ended December 31, 2022, 2021 and 2020.

Amortization expense related to intangible assets is estimated to be approximately $166 million in each of the next five years.

Note 11. 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. The debt issued by these VIEs is backed by finance receivables and leasing-related assets transferred to the VIEs (Securitized Assets). 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 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 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 or creditors of GM Financial's other subsidiaries.

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


	December 31, 2022		December 31, 2021
Restricted cash – current	$	2,176	$	2,291
Restricted cash – non-current	$	360	$	449
GM Financial receivables, net of fees – current	$	19,896	$	15,344
GM Financial receivables, net of fees – non-current	$	18,748	$	16,518
GM Financial equipment on operating leases, net	$	18,456	$	16,143
GM Financial short-term debt and current portion of long-term debt	$	21,643	$	19,876
GM Financial long-term debt	$	20,545	$	19,401

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.

Nonconsolidated VIEs

Automotive

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

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

arrangements. The carrying amounts of assets were approximately $1.6 billion and $850 million and liabilities were insignificant related to our nonconsolidated VIEs at December 31, 2022 and 2021. Our maximum exposure to loss as a result of our involvement with these VIEs was $3.3 billion and $2.1 billion, inclusive of $1.4 billion and $1.2 billion in committed capital contributions to Ultium Cells Holdings LLC at December 31, 2022 and 2021. We currently lack the power through voting or similar rights to direct the activities of these entities that most significantly affect their economic performance.

Note 12. Accrued and Other Liabilities


	December 31, 2022		December 31, 2021
Accrued liabilities
Dealer and customer allowances, claims and discounts	$	4,813	$	3,211
Deferred revenue	2,489		2,461
Product warranty and related liabilities	3,042		3,769
Payrolls and employee benefits excluding postemployment benefits	3,298		2,937
Other	11,268		7,919
Total accrued liabilities	$	24,910	$	20,297

Other liabilities
Deferred revenue	$	3,552	$	3,010
Product warranty and related liabilities	5,488		6,005
Operating lease liabilities	967		1,012
Employee benefits excluding postemployment benefits	512		622
Postemployment benefits including facility idling reserves	507		775
Other	3,740		3,661
Total other liabilities	$	14,767	$	15,085


	Years Ended December 31,
	2022		2021		2020
Product Warranty and Related Liabilities
Warranty balance at beginning of period	$	9,774	$	8,242	$	7,798
Warranties issued and assumed in period – recall campaigns	651		2,820		1,628
Warranties issued and assumed in period – product warranty	1,943		1,665		1,773
Payments	(4,097)		(3,249)		(2,986)
Adjustments to pre-existing warranties	297		315		41
Effect of foreign currency and other	(37)		(19)		(12)
Warranty balance at end of period	8,530		9,774		8,242
Less: Supplier recoveries balance at end of period(a)	1,184		2,039		224
Warranty balance, net of supplier recoveries at end of period	$	7,345	$	7,735	$	8,018

(a)The current portion of supplier recoveries is recorded in Accounts and notes receivable, net of allowance and the non-current portion is recorded in Other assets.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)


	Years Ended December 31,
	2022		2021		2020
Product warranty expense, net of recoveries
Warranties issued and assumed in period	$	2,593	$	4,485	$	3,401
Supplier recoveries accrued in period	(261)		(2,175)		(322)
Adjustments and other	260		296		29
Warranty expense, net of supplier recoveries	$	2,592	$	2,606	$	3,108

We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be insignificant at December 31, 2022. Refer to Note 16 to our consolidated financial statements for more details.

Note 13. Debt

Automotive The following table presents debt in our automotive operations:


	December 31, 2022					December 31, 2021
	Carrying Amount		Fair Value			Carrying Amount		Fair Value
Secured debt	$	124	$	123		$	192	$	212
Unsecured debt(a)	17,340		16,323			16,277		19,995
Finance lease liabilities	381		381			349		362
Total automotive debt(b)	$	17,844	$	16,828		$	16,818	$	20,569

Fair value utilizing Level 1 inputs			$	15,971				$	19,085
Fair value utilizing Level 2 inputs			$	857				$	1,484


Available under credit facility agreements(c)			$	15,095				$	15,208
Weighted-average interest rate on outstanding short-term debt(d)			6.1		%			9.8		%
Weighted-average interest rate on outstanding long-term debt(d)			5.8		%			5.8		%

(a)Primarily consist of senior notes.

(b)Includes net discount and debt issuance costs of $525 million and $512 million at December 31, 2022 and 2021.

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

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

In April 2022, we renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures on April 4, 2023.

In August 2022, we issued $2.25 billion in aggregate principal amount of senior unsecured notes under our new Sustainable Finance Framework with a weighted-average interest rate of 5.51% and maturity dates in 2029 and 2032. We intend to allocate an amount equal to the net proceeds from these senior unsecured notes to finance or refinance, in whole or in part, new or existing green projects, assets or activities undertaken or owned by the Company that meet one or more eligibility criteria outlined in our Sustainable Finance Framework.

In December 2022, we early redeemed our $1.0 billion 5.40% senior unsecured notes with a maturity date of October 2023 and recorded an insignificant loss. Additionally, in the year ended December 31, 2022, we paid, prior to maturity, $529 million of unsecured term loans in GMI.

In January 2023, we gave notice to early redeem our $1.5 billion 4.875% senior unsecured notes with a maturity date of October 2023. The settlement of the early redemption of these senior unsecured notes is expected to occur during the first quarter of 2023 and is expected to have an immaterial impact on our 2023 results.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

GM Financial The following table presents debt of GM Financial:


	December 31, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured debt	$	42,131	$	41,467	$	39,338	$	39,401
Unsecured debt	54,723		52,270		53,223		54,357
Total GM Financial debt	$	96,854	$	93,738	$	92,561	$	93,758

Fair value utilizing Level 2 inputs			$	91,545			$	92,250
Fair value utilizing Level 3 inputs			$	2,192			$	1,508

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 assets. Refer to Note 11 for additional information on GM Financial's involvement with VIEs. GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under certain secured credit facilities. The weighted-average interest rate on secured debt was 1.70% at December 31, 2022. The revolving credit facilities have maturity dates ranging from 2023 to 2028 and securitization notes payable have maturity dates ranging from 2023 to 2035. 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, 2022, GM Financial renewed revolving credit facilities with total borrowing capacity of $26.3 billion and issued $24.3 billion in aggregate principal amount of securitization notes payable with an initial weighted-average interest rate of 3.40% and maturity dates ranging from 2023 to 2035.

Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at December 31, 2022 have maturity dates ranging from 2023 to 2032 and have a weighted-average interest rate of 3.20%. In the year ended December 31, 2022, GM Financial issued $9.0 billion in aggregate principal amount of senior notes with an initial weighted-average interest rate of 3.78% and maturity dates ranging from 2024 to 2032.

In 2021, GM Financial redeemed $1.5 billion in aggregate principal amount of 5.20% senior notes due in 2023. The redemption resulted in a $105 million loss on the early extinguishment of debt. The loss is included in GM Financial interest, operating and other expenses.

Unsecured credit facilities and other unsecured debt have original maturities of up to five years. The weighted-average interest rate on these credit facilities and other unsecured debt was 6.97% at December 31, 2022.


	Years Ended December 31,
	2022		2021		2020
Automotive interest expense	$	987	$	950	$	1,098
Automotive Financing - GM Financial interest expense	2,881		2,546		3,023
Total interest expense	$	3,868	$	3,496	$	4,121

The following table summarizes contractual maturities including finance leases at December 31, 2022:


	Automotive		Automotive Financing		Total
2023	$	1,961	$	36,912	$	38,873
2024	118		21,144		21,262
2025	2,597		15,340		17,937
2026	61		7,817		7,878
2027	1,805		6,505		8,310
Thereafter	11,827		10,130		21,957
	$	18,369	$	97,847	$	116,217

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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. Certain of GM Financial’s secured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. GM Financial’s unsecured debt obligations contain covenants including limitations on GM Financial's ability to incur certain liens. Failure to meet certain of these requirements may result in a covenant violation or an event of default depending on the terms of the agreement. An event of default may allow lenders to declare amounts outstanding under these agreements immediately due and payable, to enforce their interests against collateral pledged under these agreements or restrict our ability or GM Financial's ability to obtain additional borrowings. No technical defaults or covenant violations existed at December 31, 2022.

Note 14. Derivative Financial Instruments

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


	Fair Value Level	December 31, 2022		December 31, 2021
Derivatives not designated as hedges(a)
Foreign currency	2	$	4,072	$	4,228
Commodity	2	1,075		1,549
Stellantis warrants(b)	2	—		45
Total derivative financial instruments		$	5,148	$	5,822

(a)The fair value of these derivative instruments at December 31, 2022 and 2021 and the gains/losses included in our consolidated income statements for the years ended December 31, 2022, 2021 and 2020 were insignificant, unless otherwise noted.

(b)At December 31, 2021, we held 39.7 million warrants in Stellantis, which we exercised in September 2022. Upon exercise, the warrants converted into 69.1 million common shares of Stellantis, which we immediately sold back to Stellantis. Total net pre-tax proceeds, including dividends received, in connection with this transaction were approximately $1.1 billion. The fair value of these warrants, located in Other assets, was $1.4 billion at December 31, 2021. We recorded a loss in Interest income and other non-operating income of $363 million for the year ended December 31, 2022 and gains of $316 million and $139 million for the years ended December, 2021 and 2020.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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, 2022						December 31, 2021
		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	2	$	19,950	$	—	$	821	$	15,058	$	74	$	88
Foreign currency swaps	2	—		—		—		682		—		59
Cash flow hedges
Interest rate swaps	2	1,434		34		1		611		12		4
Foreign currency swaps(b)	2	6,852		—		586		7,419		85		201
Derivatives not designated as hedges(a)
Interest rate contracts	2	113,975		2,268		1,984		110,053		846		339
Foreign currency contracts	2	—		—		—		148		—		—
Total derivative financial instruments(c)		$	142,212	$	2,302	$	3,392	$	133,971	$	1,017	$	691

(a)The gains/losses included in our consolidated income statements and statements of comprehensive income for the years ended December 31, 2022, 2021 and 2020 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.

(b)The effect of foreign currency cash flow hedges in the consolidated statements of comprehensive income include a $529 million loss recognized in Accumulated other comprehensive loss and a $578 million loss reclassified from Accumulated other comprehensive loss into income for the year ended December 31, 2022 and insignificant activity in the years ended December 31, 2021 and 2020.

(c)GM Financial held $553 million and $376 million of collateral from counterparties available for netting against GM Financial's asset positions, and posted $1.5 billion and an insignificant amount of collateral to counterparties available for netting against GM Financial's liability positions at December 31, 2022 and 2021.

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, 2022				December 31, 2021
	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	$	3,048	$	2	$	1,338	$	(1)
Long-term unsecured debt	25,271		779		23,626		(225)
GM Financial unsecured debt	$	28,319	$	781	$	24,964	$	(226)

(a)Includes an insignificant amount and $246 million of unamortized gains remaining on hedged items for which hedge accounting has been discontinued at December 31, 2022 and 2021.

Note 15. Pensions and Other Postretirement Benefits

Employee Pension and Other Postretirement Benefit Plans

Defined Benefit Pension Plans Defined benefit pension plans covering eligible U.S. hourly employees (hired prior to October 2007) and Canadian hourly employees (hired prior to October 2016) generally provide benefits of negotiated, stated amounts for each year of service and supplemental benefits for employees who retire with 30 years of service before normal retirement age. The benefits provided by the defined benefit pension plans covering eligible U.S. (hired prior to January 1, 2001) and Canadian salaried employees and employees in certain other non-U.S. locations are generally based on years of

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

service and compensation history. Accrual of defined pension benefits ceased in 2012 for U.S. and Canadian salaried employees. There is also an unfunded nonqualified pension plan primarily covering U.S. executives for service prior to January 1, 2007 and it is based on an “excess plan” for service after that date.

The funding policy for qualified defined benefit pension plans is to contribute annually not less than the minimum required by applicable laws and regulations or to directly pay benefit payments where appropriate. In the year ended December 31, 2022 all legal funding requirements were met. The following table summarizes contributions made to the defined benefit pension plans:


	Years Ended December 31,
	2022		2021		2020
U.S. hourly and salaried	$	71	$	67	$	68
Non-U.S.	332		371		396
Total	$	403	$	438	$	464

We expect to contribute approximately $60 million to our U.S. non-qualified plans and approximately $600 million to our non-U.S. pension plans in 2023.

Based on our current assumptions, over the next five years, we expect no significant mandatory contributions to our U.S. qualified pension plans and mandatory contributions totaling $269 million to our United Kingdom and Canada pension plans.

Other Postretirement Benefit Plans Certain hourly and salaried defined benefit plans provide postretirement medical, dental, legal service and life insurance to eligible U.S. and Canadian retirees and their eligible dependents. Certain other non-U.S. subsidiaries have postretirement benefit plans, although most non-U.S. employees are covered by government sponsored or administered programs. We made contributions to the U.S. OPEB plans of $335 million, $351 million and $343 million in the years ended December 31, 2022, 2021 and 2020. Plan participants' contributions were insignificant in the years ended December 31, 2022, 2021 and 2020.

Defined Contribution Plans We have defined contribution plans for eligible U.S. salaried and hourly employees that provide discretionary matching contributions. Contributions are also made to certain non-U.S. defined contribution plans. We made contributions to our defined contribution plans of $724 million, $606 million and $573 million in the years ended December 31, 2022, 2021 and 2020.

Significant Plan Amendments, Benefit Modifications and Related Events

Other Remeasurements The SOA issued mortality improvement tables in the three months ended December 31, 2022 and December 31, 2021. We reviewed our recent mortality experience and we determined our current mortality assumptions are appropriate to measure our U.S. pension and OPEB plans obligations as of December 31, 2022. In 2020, we incorporated the SOA mortality improvement tables into our December 31, 2020 measurement of U.S. pension and OPEB plans' benefit obligations. The change in these assumptions decreased U.S. pension and OPEB plans’ obligations by $686 million as of December 31, 2020.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Pension and OPEB Obligations and Plan Assets


	Year Ended December 31, 2022							Year Ended December 31, 2021
	Pension Benefits				Global OPEB Plans			Pension Benefits					Global OPEB Plans
	U.S.		Non-U.S.				U.S.			Non-U.S.
Change in benefit obligations
Beginning benefit obligation	$	60,208	$	18,314	$	6,124		$	66,468		$	20,807	$	6,656
Service cost	161		146		16			187			109		18
Interest cost	1,292		293		148			1,074			236		123


Actuarial (gains) losses	(12,010)		(3,797)		(1,289)			(2,564)			(1,015)		(282)
Benefits paid	(4,239)		(955)		(410)			(4,414)			(1,151)		(424)
Foreign currency translation adjustments	—		(1,361)		(69)			—			(509)		4

Curtailments, settlements and other	(595)		(58)		23			(543)			(163)		29
Ending benefit obligation	44,817		12,582		4,543			60,208			18,314		6,124
Change in plan assets
Beginning fair value of plan assets	59,921		13,521		—			61,077			13,846		—
Actual return on plan assets	(10,258)		(2,257)		—			3,734			602		—
Employer contributions	71		332		387			67			371		400

Benefits paid	(4,239)		(955)		(410)			(4,414)			(1,151)		(424)
Foreign currency translation adjustments	—		(1,024)		—			—			10		—


Settlements and other	(594)		(87)		23			(543)			(157)		24
Ending fair value of plan assets	44,901		9,530		—			59,921			13,521		—
Ending funded status	$	84	$	(3,052)	$	(4,543)		$	(287)		$	(4,793)	$	(6,124)
Amounts recorded in the consolidated balance sheets
Non-current assets	$	1,557	$	1,552	$	—		$	1,896		$	1,440	$	—
Current liabilities	(62)		(316)		(350)			(70)			(338)		(381)
Non-current liabilities	(1,411)		(4,288)		(4,193)			(2,113)			(5,895)		(5,743)
Net amount recorded	$	84	$	(3,052)	$	(4,543)		$	(287)		$	(4,793)	$	(6,124)
Amounts recorded in Accumulated other comprehensive loss
Net actuarial loss	$	(1,186)	$	(2,157)	$	(86)		$	(13)		$	(3,675)	$	(1,439)
Net prior service (cost) credit	5		(56)		10			7			(54)		15
Total recorded in Accumulated other comprehensive loss	$	(1,181)	$	(2,213)	$	(76)		$	(6)		$	(3,729)	$	(1,424)

In the years ended December 31, 2022 and 2021, the decrease in benefit obligations was primarily due to an increase in actuarial gains experienced by all plans as a result of an increase in discount rates.

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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, 2022				December 31, 2021
	U.S.		Non-U.S.		U.S.		Non-U.S.
ABO	$	44,798	$	12,505	$	60,188	$	18,244
Plans with ABO in excess of plan assets
ABO	$	5,668	$	4,739	$	8,396	$	6,464
Fair value of plan assets	$	4,214	$	211	$	6,233	$	300
Plans with PBO in excess of plan assets
PBO	$	5,687	$	4,815	$	8,415	$	6,533
Fair value of plan assets	$	4,214	$	211	$	6,223	$	300

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, 2022										Year Ended December 31, 2021										Year Ended December 31, 2020
	Pension Benefits						Global OPEB Plans				Pension Benefits							Global OPEB Plans			Pension Benefits						Global OPEB Plans
	U.S.			Non-U.S.						U.S.				Non-U.S.				U.S.			Non-U.S.
Components of expense
Service cost	$	233		$	157		$	16			$	260			$	121		$	18		$	251		$	145		$	19
Interest cost	1,292			293			148				1,074				236			123			1,716			362			173
Expected return on plan assets	(3,000)			(534)			—				(3,178)				(610)			—			(3,267)			(675)			—
Amortization of net actuarial losses	18			133			67				26				212			97			16			171			74
Curtailments, settlements and other	(17)			10			(5)				15				7			(6)			17			241			(8)
Net periodic pension and OPEB (income) expense	$	(1,474)		$	59		$	226			$	(1,803)			$	(34)		$	232		$	(1,267)		$	244		$	258
Weighted-average assumptions used to determine benefit obligations(a)
Discount rate	5.47		%	4.85		%	5.51		%		2.78		%		2.13		%	2.97		%	2.37		%	1.62		%	2.53		%
Weighted-average assumptions used to determine net expense(a)
Discount rate	2.34		%	2.98		%	2.84		%		1.86		%		2.38		%	2.24		%	2.84		%	2.80		%	3.00		%
Expected rate of return on plan assets	5.38		%	4.39		%	N/A				5.63		%		4.67		%	N/A			5.88		%	4.96		%	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.

The non-service cost components of the net periodic pension and OPEB income are presented in Interest income and other non-operating income, net. Refer to Note 19 for additional information.

U.S. pension plan service cost, which includes administrative expenses and Pension Benefit Guarantee Corporation premiums, were insignificant for the years ended December 31, 2022, 2021 and 2020. Weighted-average assumptions used to determine net expense are determined at the beginning of the period and updated for remeasurements. Non-U.S. pension plan administrative expenses included in service cost were insignificant in the years ended December 31, 2022, 2021 and 2020.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Assumptions

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. pension plans. The U.S. study includes a review of alternative asset allocation and risk mitigation strategies, anticipated future long-term performance and risk of the individual asset classes that comprise the plans' asset mix. Similar studies are performed for the significant non-U.S. pension plans with the assistance of outside actuaries and asset managers. While the studies incorporate data from recent plan performance and historical returns, the expected rate of return on plan assets represents our estimate of long-term prospective rates of return.

We continue to pursue various options to fund and de-risk our pension plans, including continued changes to the pension asset portfolio mix to reduce funded status volatility. The strategic asset mix and risk mitigation strategies for the plans are tailored specifically for each plan. Individual plans have distinct liabilities, liquidity needs and regulatory requirements. Consequently, there are different investment policies set by individual plan fiduciaries. Although investment policies and risk mitigation strategies may differ among plans, each investment strategy is considered to be appropriate in the context of the specific factors affecting each plan.

In setting new strategic asset mixes, consideration is given to the likelihood that the selected asset mixes will effectively fund the projected pension plan liabilities, while aligning with the risk tolerance of the plans' fiduciaries. The strategic asset mixes for U.S. 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. Equity and fixed income managers are permitted to utilize derivatives as efficient substitutes for traditional securities. Interest rate derivatives may be used to adjust portfolio duration to align with a plan's targeted investment policy and equity derivatives may be used to protect equity positions from downside market losses. Alternative investment managers are permitted to employ leverage, including through the use of derivatives, which may alter economic exposure.

In December 2022, an investment policy study was completed for the U.S. pension plans. As a result of changes to our capital market assumptions, the weighted-average long-term rate of return on assets increased from 5.4% at December 31, 2021 to 6.3% at December 31, 2022. The expected long-term rate of return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans.

Target Allocation Percentages The following table summarizes the target allocations by asset category for U.S. and non-U.S. defined benefit pension plans:


	December 31, 2022				December 31, 2021
	U.S.		Non-U.S.		U.S.		Non-U.S.
Equity	8	%	10	%	9	%	14	%
Debt	69	%	75	%	68	%	69	%
Other(a)	23	%	15	%	23	%	17	%
Total	100	%	100	%	100	%	100	%

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Assets and Fair Value Measurements The following tables summarize the fair value of U.S. and non-U.S. defined benefit pension plan assets by asset class:


	December 31, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Pension Plan Assets


Common and preferred stocks	$	1,222	$	—	$	3	$	1,225	$	2,554	$	—	$	—	$	2,554
Government and agency debt securities(a)	—		9,606		—		9,606		—		14,924		—		14,924
Corporate and other debt securities	—		21,816		—		21,816		—		26,064		—		26,064



Other investments, net(b)	125		60		254		439		421		21		246		688




Net plan assets subject to leveling	$	1,347	$	31,482	$	257	33,086		$	2,975	$	41,009	$	246	44,230
Plan assets measured at net asset value
Investment funds							5,124								7,304
Private equity and debt investments							3,936								4,415
Real estate investments							3,491								3,604
Total plan assets measured at net asset value							12,551								15,323
Other plan assets (liabilities), net(c)							(736)								368
Net plan assets							$	44,901							$	59,921


	December 31, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Non-U.S. Pension Plan Assets


Common and preferred stocks	$	143	$	—	$	—	$	143	$	372	$	—	$	—	$	372
Government and agency debt securities(a)	—		2,185		—		2,185		—		3,084		—		3,084
Corporate and other debt securities	—		2,570		1		2,571		—		3,379		2		3,381



Other investments, net(b)(d)	24		(70)		84		38		52		(66)		116		102




Net plan assets subject to leveling	$	167	$	4,685	$	85	4,937		$	424	$	6,397	$	118	6,939
Plan assets measured at net asset value
Investment funds							3,124								4,963
Private equity and debt investments							483								593
Real estate investments							878								989
Total plan assets measured at net asset value							4,485								6,545
Other plan assets (liabilities), net(c)							108								37
Net plan assets							$	9,530							$	13,521

(a)Includes U.S. and sovereign government and agency issues.

(b)Includes net derivative assets (liabilities).

(c)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.

(d)Level 2 Other investments, net includes Canadian repurchase agreements of approximately $150 million and $271 million at December 31, 2022 and 2021.

The activity attributable to U.S. and non-U.S. Level 3 defined benefit pension plan investments was insignificant in the years ended December 31, 2022 and 2021.

Investment Fund Strategies Investment funds include hedge funds, funds of hedge funds, equity funds and fixed income funds. Hedge funds and funds of hedge funds managers typically seek to achieve their objectives by allocating capital across a broad array of funds and/or investment managers. Equity funds invest in U.S. common and preferred stocks as well as similar equity securities issued by companies incorporated, listed or domiciled in developed and/or emerging market countries. Fixed income funds include investments in high quality funds and, to a lesser extent, high yield funds. High quality fixed income

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

funds invest in government securities, investment-grade corporate bonds and mortgage and asset-backed securities. High yield fixed income funds invest in high yield fixed income securities issued by corporations, which are rated below investment grade. Other investment funds also included in this category primarily represent multi-strategy funds that invest in broadly diversified portfolios of equity, fixed income and derivative instruments.

Private equity and debt investments primarily consist of investments in private equity and debt funds. These investments provide exposure to and benefit from long-term equity investments in private companies, including leveraged buy-outs, venture capital and distressed debt strategies.

Real estate investments include funds that invest in entities that are primarily engaged in the ownership, acquisition, development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds.

Significant Concentrations of Risk The assets of the pension plans include certain investment funds, private equity and debt investments and real estate investments. Investment managers may be unable to quickly sell or redeem some or all of these investments at an amount close or equal to fair value in order to meet a plan's liquidity requirements or to respond to specific events such as deterioration in the creditworthiness of any particular issuer or counterparty.

Illiquid investments held by the plans are generally long-term investments that complement the long-term nature of pension obligations and are not used to fund benefit payments when currently due. Plan management monitors liquidity risk on an ongoing basis and has procedures in place that are designed to maintain flexibility in addressing plan-specific, broader industry and market liquidity events.

The pension plans may invest in financial instruments denominated in foreign currencies and may be exposed to risks that the foreign currency exchange rates might change in a manner that has an adverse effect on the value of the foreign currency denominated assets or liabilities. Forward currency contracts may be used to manage and mitigate foreign currency risk.

The pension plans may invest in debt securities for which any change in the relevant interest rates for particular securities might result in an investment manager being unable to secure similar returns upon the maturity or the sale of securities. In addition, changes to prevailing interest rates or changes in expectations of future interest rates might result in an increase or decrease in the fair value of the securities held. Interest rate swaps and other financial derivative instruments may be used to manage interest rate risk.

Benefit Payments Benefits for most U.S. pension plans and certain non-U.S. pension plans are paid out of plan assets rather than our Cash and cash equivalents. 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
	U.S. Plans		Non-U.S. Plans
2023	$	4,523	$	995	$	358
2024	$	4,246	$	934	$	354
2025	$	4,144	$	916	$	351
2026	$	4,036	$	892	$	349
2027	$	3,919	$	873	$	346
2028–2032	$	17,614	$	4,142	$	1,690

Note 16. Commitments and Contingencies

Litigation-Related Liability and Tax Administrative Matters In the normal course of our business, we are named from time to time as a defendant in various legal actions, including arbitrations, class actions and other litigation. We identify below the material individual proceedings and investigations where we believe a material loss is reasonably possible or probable. We accrue for matters when we believe that losses are probable and can be reasonably estimated. At December 31, 2022 and 2021, we had accruals of $1.1 billion and $1.4 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.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Accordingly, while we believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our results of operations or cash flows in any particular reporting period.

GM Korea Wage Litigation GM Korea Company (GM Korea) is 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 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 and September 2020 orders. In June 2020, the Seoul High Court (an intermediate-level appellate court) ruled against GM Korea in one of the subcontract worker claims. Although GM Korea has appealed this decision to the Korea Supreme Court, GM Korea has since hired certain of its subcontract workers as full-time employees. At December 31, 2022, our accrual covering certain asserted claims and claims that we believe are probable of assertion and for which liability is probable was approximately $282 million. We estimate the reasonably possible loss in excess of amounts accrued for other current subcontract workers who may assert similar claims to be approximately $97 million at December 31, 2022. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from additional claims that may be asserted by former subcontract workers.

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, but not limited to, matters arising out of alleged product defects; employment-related matters; product and workplace safety, vehicle emissions and fuel economy regulations; product warranties; financial services; dealer, supplier and other contractual relationships; government regulations relating to competition issues; tax-related matters not subject to the provision of Accounting Standards Codification 740, Income Taxes (indirect tax-related matters); product design, manufacture and performance; consumer protection laws; and environmental protection laws, including laws regulating air emissions, water discharges, waste management and environmental remediation from stationary sources. We also from time to time receive subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state and foreign governments on a variety of issues.

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 currently unable to estimate any reasonably possible material 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 a shareholder demand lawsuit that remains pending.

There are several putative class actions and one certified class action pending against GM in federal courts in the U.S. alleging that various 2011–2014 model year vehicles are defective because they excessively consume oil. While many of these proceedings have been dismissed or have been settled for insignificant amounts, several remain outstanding, and in October 2022, we received an adverse jury verdict in a certified class action proceeding involving three states. We do not believe that the verdict is supported by the evidence and have filed post-trial motions and, if necessary, will appeal. We are currently unable to estimate any reasonably possible material loss or range of loss that may result from the putative class action proceedings and have previously accrued an immaterial amount related to the certified class action proceeding.

Beyond the class action litigations disclosed, we have several other class action litigations pending at any given time. Historically, relatively few classes have been certified in these types of cases. Therefore, we will generally only disclose specific class actions if a class is certified and we believe there is a reasonably possible material exposure to the Company.

Indirect tax-related matters are being litigated globally pertaining to value added taxes, customs, duties, sales taxes and other non-income tax-related tax exposures. The various non-U.S. labor-related matters include claims from current and former employees related to alleged unpaid wage, benefit, severance and other compensation matters. Certain administrative proceedings are indirect tax-related and may require that we deposit funds in escrow or provide an alternative form of security. Some of the matters may involve compensatory, punitive or other treble damage claims, environmental remediation programs or sanctions or environmental compliance requirements and claims that, if granted, could require us to pay damages or make other expenditures in amounts that could not be reasonably estimated at December 31, 2022. For indirect tax-related matters we estimate our reasonably possible loss in excess of amounts accrued to be up to approximately $900 million at December 31, 2022.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Takata Matters In November 2020, NHTSA directed that we replace the Takata Corporation (Takata) airbag inflators in our GMT900 vehicles, which are full-size pickup trucks and SUVs, and we 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 year ended December 31, 2020, we recorded a warranty accrual of $1.1 billion for the expected costs of complying with the recall remedy, and we believe the currently accrued amount remains reasonable.

GM has recalled certain vehicles sold outside of the U.S. to replace Takata inflators in those vehicles. There are significant differences in vehicle and inflator design between the relevant vehicles sold internationally and those sold in the U.S. We continue to gather and analyze evidence about these inflators and to share our findings with regulators. Any additional recalls relating to these inflators could be material to our results of operations and cash flows.

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, 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 reasonably possible material loss.

Chevrolet Bolt Recall In July 2021, we initiated a voluntary recall for certain 2017–2019 model year Chevrolet Bolt EVs due to the risk that two manufacturing defects present in the same battery cell could cause a high voltage battery fire in certain of these vehicles. Accordingly, in the three months ended June 30, 2021, we recorded a warranty accrual of $812 million. After further investigation into the manufacturing processes at our battery supplier, LG, and disassembling battery packs, we determined that the risk of battery cell defects was not confined to the initial recall population. As a result, in August 2021, we expanded the recall to include all 2017-2022 model year Chevrolet Bolt EV and Chevrolet Bolt Electric Utility Vehicles (EUVs) and recorded an additional warranty accrual of $1.2 billion in the three months ended September 30, 2021. In October 2021, we reached an agreement with LG, under which LG will reimburse GM for costs and expenses associated with the recall. As a result, in the three months ended September 30, 2021, we recognized a receivable of $1.9 billion, which substantially offsets the warranty charges we recognized in connection with the recall. These charges reflect our current best estimate for the cost of the recall remedy. The actual costs of the recall and GM's associated recovery from LG could be materially higher or lower. For 2017-2019 model year vehicles, the recall remedy will be to replace the high voltage battery modules in these vehicles with new modules. For 2020-2022 model year vehicles, the recall remedy will be to replace any defective high voltage battery modules in these vehicles with new modules.

In addition, putative class actions have been filed against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that the batteries contained in the Bolt EVs and EUVs included in the recall population are defective. At this stage of these proceedings, we are unable to provide an estimate of the amounts or range of reasonably possible material loss.

Opel/Vauxhall Sale In 2017, we sold the Opel/Vauxhall Business to PSA Group (now Stellantis) under a Master Agreement (the Agreement). We also sold the European financing subsidiaries and branches to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. Although the sale reduced our new vehicle presence in Europe, we may still be impacted by actions taken by regulators related to vehicles sold before the sale. Our wholly owned subsidiary (the Seller) agreed to indemnify Stellantis 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 costs related to certain emissions claims, product liabilities and recalls. The Company entered into a guarantee for the benefit of Stellantis, pursuant to which the Company agreed to guarantee the Seller's obligation to indemnify Stellantis. We are unable to estimate any reasonably possible material loss or range of loss that may result from these actions either directly or through an indemnification claim from Stellantis. Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount of required payments.

Currently, various consumer lawsuits have been filed against the Seller and Stellantis in Germany, the United Kingdom and the Netherlands alleging that Opel and Vauxhall vehicles sold by the Seller violated applicable emissions standards. In addition, in the year ended December 31, 2022, we agreed to indemnify Stellantis for an immaterial amount for certain recalls that Stellantis has conducted or will conduct, including recalls in certain geographic locations that Stellantis intends to conduct related to Takata inflators in legacy Opel vehicles. We may in the future be required to further indemnify Stellantis relating to its Takata recalls, but we believe such further indemnification to be remote at this time.

Product Liability We recorded liabilities of $561 million and $587 million in Accrued liabilities and Other liabilities at December 31, 2022 and 2021, for the expected cost of all known product liability claims, plus an estimate of the expected cost

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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. We believe that any judgment against us involving our 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. These guarantees terminate in years ranging from 2023 to 2027 or upon the occurrence of specific events or are ongoing. We believe that the related potential costs incurred are adequately covered by our recorded accruals, which are insignificant. The maximum future undiscounted payments mainly based on royalties received associated with vehicles sold to date were $3.1 billion for these guarantees at December 31, 2022 and 2021, the majority of which relates to the indemnification agreements.

We provide payment guarantees on commercial loans outstanding with third parties such as dealers. In some instances, certain assets of the party or our payables to the party whose debt or performance we have guaranteed may offset, to some degree, the amount of any potential future payments. We are also exposed to residual value guarantees associated with certain sales to rental car companies.

We periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not possible to estimate our maximum exposure under these indemnifications or guarantees due to the conditional nature of these obligations. Insignificant amounts have been recorded for such obligations as the majority of them are not probable or estimable at this time and the fair value of the guarantees at issuance was insignificant. Refer to the Opel/Vauxhall Sale section of this note for additional information on our indemnification obligations to Stellantis under the Agreement.

Credit Cards Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles. At December 31, 2022 and 2021, our redemption liability was insignificant, our deferred revenue was $353 million and $309 million, and qualified cardholders had rebates available, net of deferred program revenue, of $1.1 billion and $1.2 billion. Our redemption liability and deferred revenue are recorded in Accrued liabilities and Other liabilities.

Note 17. Income Taxes


	Years Ended December 31,
	2022		2021		2020
U.S. income (loss)	$	9,454	$	9,513	$	6,881
Non-U.S. income (loss)	1,306		1,902		540
Income (loss) before income taxes and equity income (loss)	$	10,760	$	11,415	$	7,421


	Years Ended December 31,
	2022		2021		2020
Current income tax expense (benefit)
U.S. federal	$	389	$	20	$	84
U.S. state and local	368		142		272
Non-U.S.	707		395		493
Total current income tax expense (benefit)	1,464		557		849
Deferred income tax expense (benefit)
U.S. federal	263		1,699		632
U.S. state and local	109		229		(15)
Non-U.S.	53		286		308
Total deferred income tax expense (benefit)	425		2,214		925
Total income tax expense (benefit)	$	1,888	$	2,771	$	1,774

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Provisions are made for estimated U.S. and non-U.S. 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 $3.5 billion and $3.2 billion at December 31, 2022 and 2021. We have indefinitely reinvested basis differences related to investments in non-consolidated China JVs of $3.4 billion at December 31, 2022 and 2021 as a result of fresh-start reporting. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.


	Years Ended December 31,
	2022		2021		2020
Income tax expense at U.S. federal statutory income tax rate	$	2,260	$	2,397	$	1,558
State and local tax expense (benefit)	388		301		219
Non-U.S. income taxed at other than the U.S. federal statutory tax rate	32		36		(1)
U.S. tax impact on Non-U.S. income and activities	5		129		(160)
Change in valuation allowances	(392)		665		370
Change in tax laws	78		(93)		—
General business credits and manufacturing incentives	(829)		(492)		(366)

Settlements of prior year tax matters	—		11		(18)
Realization of basis differences in affiliates	209		(295)		(12)
Foreign currency remeasurement	36		28		(7)
Other adjustments	102		84		191
Total income tax expense (benefit)	$	1,888	$	2,771	$	1,774

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2022 and 2021 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the bases of such assets, liabilities and equity as measured based on tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:


	December 31, 2022		December 31, 2021
Deferred tax assets
Postretirement benefits other than pensions	$	1,120	$	1,572
Pension and other employee benefit plans	997		1,540
Warranties, dealer and customer allowances, claims and discounts	4,341		4,253

U.S. capitalized research expenditures	8,851		7,285
U.S. operating loss and tax credit carryforwards(a)	5,861		6,959
Non-U.S. operating loss and tax credit carryforwards(b)	6,296		6,593
Miscellaneous	2,773		3,468
Total deferred tax assets before valuation allowances	30,240		31,670
Less: valuation allowances	(7,744)		(8,855)
Total deferred tax assets	22,495		22,815
Deferred tax liabilities
Property, plant and equipment	1,957		1,775
Intangible assets	707		729
Total deferred tax liabilities	2,664		2,504
Net deferred tax assets	$	19,832	$	20,311

(a) At December 31, 2022, U.S. operating loss deferred tax assets were $417 million, where $129 million can be carried forward indefinitely and $288 million will expire by 2040, if not utilized. At December 31, 2022, U.S. tax credit carryforwards were $5.4 billion, where $292 million can be carried forward indefinitely and $5.2 billion will expire by 2042, if not utilized.

(b) At December 31, 2022, Non-U.S. operating loss deferred tax assets were $6.1 billion, where $5.1 billion can be carried forward indefinitely and $1.1 billion will expire by 2042, if not utilized. At December 31, 2022, Non-U.S. tax credit carryforwards were $148 million, where $112 million can be carried forward indefinitely and $36 million will expire by 2042, if not utilized.

Valuation Allowances During the years ended December 31, 2022 and 2021, valuation allowances against deferred tax assets of $7.7 billion and $8.9 billion were comprised of cumulative losses, credits and other timing differences, primarily in Germany, Spain, South Korea, the U.S. and Brazil.

In the year ended December 31, 2022, GM entered into a Share Purchase Agreement with SoftBank, pursuant to which GM acquired SoftBank’s equity ownership stake in Cruise Holdings and, separately, made an additional $1.35 billion investment in Cruise in place of SoftBank. As of March 31, 2022, GM’s ownership in Cruise increased above the 80% threshold which allowed for inclusion of Cruise in our U.S. Federal consolidated income tax return and the release of a valuation allowance of $482 million against certain Cruise deferred tax assets. Refer to Note 20 to our consolidated financial statements for additional information regarding the Share Purchase Agreement with SoftBank.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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


	Years Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	634	$	1,086	$	775
Additions to current year tax positions	12		22		435
Additions to prior years' tax positions	14		46		26
Reductions to prior years' tax positions	(98)		(473)		(132)
Reductions in tax positions due to lapse of statutory limitations	(20)		(17)		(3)
Settlements	(10)		(26)		(10)
Other	(12)		(4)		(5)
Balance at end of period	$	520	$	634	$	1,086

At December 31, 2022 and 2021, there were $356 million and $411 million of unrecognized tax benefits that if recognized would favorably affect our effective tax rate in the future. In the years ended December 31, 2022, 2021 and 2020, income tax related interest and penalties were insignificant. At December 31, 2022 and 2021, we had liabilities of $86 million for income tax related interest and penalties.

At December 31, 2022, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months.

Other Matters Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2011 to 2022 with various significant tax jurisdictions. Tax authorities may have the ability to review and adjust net operating loss or tax credit carryforwards that were generated prior to these periods if utilized in an open tax year. 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.

Note 18. Restructuring and Other Initiatives

We have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamline manufacturing capacity and reduce other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, a liability is generally recorded at the time offers to employees are accepted. To the extent these programs provide separation benefits in accordance with pre-existing agreements, a liability is recorded once the amount is probable and reasonably estimable. If employees are involuntarily terminated, a liability is generally recorded at the communication date. Related charges are recorded in Automotive and other cost of sales and Automotive and other selling, general and administrative expense.

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


	Years Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	285	$	352	$	564
Additions, interest accretion and other	522		216		565
Payments	(275)		(278)		(678)
Revisions to estimates and effect of foreign currency	(12)		(5)		(99)
Balance at end of period	$	520	$	285	$	352

In the year ended December 31, 2022, restructuring and other initiatives primarily included strategic activities in GMNA related to Buick dealerships. We recorded charges of $511 million, which are included in the table above, and incurred $120 million in net cash outflows resulting from these dealer restructurings. The remaining $391 million is expected to be paid in 2023.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In the year ended December 31, 2020, restructuring and other initiatives primarily included actions in GMI related to the wind-down of GM Holden, Ltd. (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 in the year ended December 31, 2020 and $254 million in net cash outflows since program inception 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. Holden and Thailand programs were substantially complete at December 31, 2020.

Note 19. Interest Income and Other Non-Operating Income


	Years Ended December 31,
	2022		2021		2020
Non-service pension and OPEB income (loss)	$	1,512	$	1,909	$	1,095
Interest income	460		146		241
Licensing agreements income	238		195		211
Revaluation of investments	(236)		571		265
Other	(542)		220		73
Total interest income and other non-operating income, net	$	1,432	$	3,041	$	1,885

In the year ended December 31, 2022, we shut down our Russia business and recorded a $657 million charge, included in Other in the table above, to write off our net investment and release accumulated translation losses into earnings.

Note 20. Stockholders’ Equity and Noncontrolling Interests

Preferred and Common Stock We have 2.0 billion shares of preferred stock and 5.0 billion shares of common stock authorized for issuance. We had no shares of preferred stock issued and outstanding at December 31, 2022 and 2021. We had 1.4 billion and 1.5 billion shares of common stock issued and outstanding at December 31, 2022 and 2021.

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 $0.18 and $0.38 and our total dividends paid on common stock were $257 million and $545 million for the years ended December 31, 2022 and 2020. Dividends were not declared or paid on our common stock for the year ended December 31, 2021. 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 August 2022, our Board of Directors increased the capacity under our previously announced common stock repurchase program to $5.0 billion from the $3.3 billion that remained under the program as of June 30, 2022. In the year ended December 31, 2022, we purchased approximately 64 million shares of our outstanding common stock for $2.5 billion as part of the program. We did not purchase any shares of our outstanding common stock in the year ended December 31, 2021. We purchased approximately three million shares of our outstanding common stock for $90 million in the year ended December 31, 2020.

Cruise Preferred Shares In 2021, Cruise Holdings issued $2.7 billion of Class G Preferred Shares (Cruise Class G Preferred Shares) to Microsoft Corporation (Microsoft), Walmart Inc. (Walmart) and other investors, including $1.0 billion to General Motors Holdings LLC. All proceeds related to the Cruise Class G Preferred Shares are designated exclusively for working capital and general corporate purposes of Cruise Holdings. 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 public cloud provider.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Cruise Class G Preferred Shares participate pari passu with holders of Cruise Holdings common stock and Class F Preferred Shares (Cruise Class F Preferred Shares) in any dividends declared. The Cruise Class G and Cruise Class F Preferred Shares convert into the class of shares to be issued to the public in an initial public offering (IPO) at specified exchange ratios. No covenants or other events of default exist that can trigger redemption of the Cruise Class G and Cruise Class F Preferred Shares. The Cruise Class G and 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, and are classified as noncontrolling interests in our consolidated financial statements.

In March 2022, under the Share Purchase Agreement, we acquired SoftBank’s Cruise Class A-1, Class F and Class G Preferred Shares for $2.1 billion and made an additional $1.35 billion investment in Cruise in place of SoftBank. SoftBank no longer has an ownership interest in or has any rights with respect to Cruise.

Cruise Common Shares During the year ended December 31, 2022, Cruise Holdings issued approximately $0.8 billion of Class B Common Shares to net settle vested awards under Cruise's 2018 Employee Incentive Plan and issued approximately $0.5 billion of Class B Common Shares, primarily to us, to fund the payment of statutory tax withholding obligations resulting from the settlement or exercise of vested awards. Also, GM conducted quarterly tender offers and paid approximately $0.6 billion in cash to purchase tendered Cruise Class B Common Shares during the year ended December 31, 2022. The Class B Common Shares are classified as noncontrolling interests in our consolidated financial statements except for certain shares that are liability classified that have a recorded value of approximately $60 million at December 31, 2022. Refer to Note 22 for additional information on Cruise stock incentive awards.

During the year ended December 31, 2022, the effect on the equity attributable to us for changes in our ownership interest in Cruise was insignificant. For the year ended December 31, 2022, net income attributable to shareholders and transfers to the noncontrolling interest in Cruise and other subsidiaries was $9.2 billion, which included a $0.7 billion decrease in equity attributable to us, mainly due to the redemption of Cruise preferred shares.

GM Financial Preferred Stock In 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, which started March 30, 2021 at a fixed rate of 5.70%. The preferred stock is classified as noncontrolling interests in our consolidated financial statements.

The following table summarizes the significant components of Accumulated other comprehensive loss:


	Years Ended December 31,
	2022		2021		2020
Foreign Currency Translation Adjustments
Balance at beginning of period	$	(2,654)	$	(2,735)	$	(2,278)
Other comprehensive income (loss) and noncontrolling interests, net of reclassification adjustment and tax(a)(b)(c)	(123)		81		(457)
Balance at end of period	$	(2,776)	$	(2,654)	$	(2,735)
Defined Benefit Plans
Balance at beginning of period	$	(6,528)	$	(10,654)	$	(8,859)
Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment(a)	1,487		4,714		(2,661)
Tax benefit (expense)	2		(906)		444
Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment, net of tax(a)	1,488		3,808		(2,217)
Reclassification adjustment, net of tax(c)	188		318		422
Other comprehensive income (loss), net of tax	1,677		4,126		(1,795)
Balance at end of period(d)	$	(4,851)	$	(6,528)	$	(10,654)

(a) The noncontrolling interests were insignificant in the years ended December 31, 2022, 2021 and 2020.

(b) The reclassification adjustment was insignificant in the years ended December 31, 2022, 2021 and 2020.

(d) Primarily consists of unamortized actuarial loss on our defined benefit plans.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Note 21. Earnings Per Share

Basic and diluted earnings per share are computed by dividing Net income attributable to common stockholders by the weighted-average common shares outstanding in the period. Diluted earnings per share is computed by giving effect to all potentially dilutive securities that are outstanding.


	Years Ended December 31,
	2022		2021		2020
Basic earnings per share
Net income (loss) attributable to stockholders	$	9,934	$	10,019	$	6,427
Less: cumulative dividends on subsidiary preferred stock(a)	(1,019)		(182)		(180)


Net income (loss) attributable to common stockholders	$	8,915	$	9,837	$	6,247

Weighted-average common shares outstanding	1,445		1,451		1,433



Basic earnings per common share	$	6.17	$	6.78	$	4.36
Diluted earnings per share


Net income (loss) attributable to common stockholders – diluted	$	8,915	$	9,837	$	6,247

Weighted-average common shares outstanding – basic	1,445		1,451		1,433
Dilutive effect of warrants and awards under stock incentive plans	10		17		9
Weighted-average common shares outstanding – diluted	1,454		1,468		1,442



Diluted earnings per common share	$	6.13	$	6.70	$	4.33

Potentially dilutive securities(b)	10		2		7

(a) Includes a $909 million deemed dividend related to the redemption of Cruise preferred shares from SoftBank and an insignificant amount in participating securities income from a subsidiary for the year ended December 31, 2022.

(b) Potentially dilutive securities attributable to outstanding stock options at December 31, 2022, 2021 and 2020 and RSUs at December 31, 2022 and 2020, were excluded from the computation of diluted EPS because the securities would have had an antidilutive effect.

Note 22. Stock Incentive Plans

GM Stock Incentive Awards We grant to certain employees RSUs, Restricted Stock Awards (RSAs), PSUs and stock options (collectively, stock incentive awards) under our 2016 Equity Incentive Plan and 2020 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.

RSU awards granted either cliff vest or ratably vest generally over a three-year service period, as defined in the terms of each award. PSU awards vest at the end of a three-year performance period, based on performance criteria determined by the Executive Compensation Committee of the Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. Stock options expire 10 years from the grant date. Our performance-based stock options vest ratably over 55 months based on the performance of our common stock relative to that of a specified peer group. Our service-based stock options vest ratably over three years.

In connection with our acquisition of Cruise Automation, Inc. in May 2016, RSAs and PSUs in common shares of GM were granted to employees of Cruise Holdings. The RSAs vest ratably, generally over a three-year service period. The PSUs are contingent upon achievement of specific technology and commercialization milestones.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)


	Shares (in millions)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term in Years
Units outstanding at January 1, 2022	30.2	$	26.14	0.8
Granted	10.3	$	39.95
Settled	(5.6)	$	40.34
Forfeited or expired	(0.7)	$	40.28
Units outstanding at December 31, 2022(a)	34.1	$	27.62	0.8

(a) Includes the target amount of PSUs.

Our weighted-average assumptions used to value our stock options are a dividend yield of 1.60%, 1.67% and 4.25%, expected volatility of 41.0%, 47.8% and 26.2%, a risk-free interest rate of 1.88%, 0.76% and 1.44%, and an expected option life of 6.00, 6.00 and 5.97 years for options issued during the years ended December 31, 2022, 2021 and 2020. 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 $419 million, $391 million and $351 million in the years ended December 31, 2022, 2021 and 2020.

At December 31, 2022, the total unrecognized compensation expense for nonvested equity awards granted was $288 million. This expense is expected to be recorded over a weighted-average period of 1.4 years. The total fair value of stock incentive awards vested was $307 million, $258 million and $275 million in the years ended December 31, 2022, 2021 and 2020.

Cruise Stock Incentive Awards Cruise granted RSUs that will settle in common shares of Cruise Holdings in the years ended December 31, 2022, 2021 and 2020. Stock options were granted in common shares of Cruise Holdings in the years ended December 31, 2022 and 2021. In March 2022, Cruise modified its RSUs that settle in Cruise Class B Common Shares to remove the liquidity vesting condition such that all granted RSU awards vest solely upon satisfaction of a service condition. The service condition for the majority of these awards is satisfied over four years. Upon modification, 31 million RSUs whose service condition was previously met became immediately vested, thereby resulting in the immediate recognition of compensation expense. In addition, at Cruise's election, GM intends to conduct quarterly tender offers whereby holders of Cruise Class B Common Shares issued to settle vested awards can tender their shares generally at the fair value of Cruise’s common stock. The planned tenders result in certain awards to be classified as liabilities and other awards to be presented in temporary equity, which triggers the immediate recognition of incremental compensation expense associated with the stock options. These awards were granted under Cruise's 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. Stock options vest ratably over four to 10 years, as defined in the terms of each award. Stock options expire 10 years from the grant date.



	Cruise Restricted Stock Units				Cruise Stock Options
	Shares (in millions)	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term in Years	Shares (in millions)	Weighted-Average Fair Value		Weighted-Average Remaining Contractual Term in Years

Units outstanding at January 1, 2022	66.2	$	18.82	8.1	23.8	$	7.07	2.0
Granted	47.4	$	28.09		2.9	$	15.77
Settled or exercised	(45.2)	$	29.00		(2.3)	$	20.64
Forfeited or expired	(7.2)	$	26.86		—	$	—
Units outstanding at December 31, 2022(a)	61.2	$	28.62	1.5	24.4	$	8.22	1.7

(a) Weighted average fair values include the impact of the remeasurement triggered by the modification. Post modification, certain awards are liability-awards resulting in ongoing remeasurement based on changes to the awards' fair value.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Our weighted-average assumptions used to value Cruise stock options are a dividend yield of 0.00% and 0.00%, expected volatility of 57.18% and 57.03%, a risk-free interest rate of 2.37% and 1.31%, and an expected option life of 6.61 and 5.49 years for options issued during the years ended December 31, 2022 and 2021. There were no options issued during the year ended December 31, 2020. The expected volatility is based on the historical volatility of comparable public company data as Cruise Holdings is not publicly traded and therefore, does not have any trading history of its common stock.

Total compensation expense related to Cruise Holdings' share-based awards was $1.6 billion for the year ended December 31, 2022, which, when excluding the compensation expense for the period April 1, 2022 through December 31, 2022, primarily represents the impact of the modification to outstanding awards, and an insignificant amount for the years ended December 31, 2021 and 2020. GM conducted quarterly tender offers and paid approximately $0.6 billion in cash to settle tendered Cruise Class B Common Shares during the year ended December 31, 2022. No cash was paid to settle share-based awards for the three months ended March 31, 2022. Total unrecognized compensation expense for Cruise Holdings’ nonvested equity awards granted was $1.7 billion at December 31, 2022. Total units outstanding were 86 million at December 31, 2022. The expense related to RSUs and stock options is expected to be recorded over a weighted-average period of 1.7 years.

Note 23. Segment Reporting

We analyze the results of our business through the following reportable segments: GMNA, GMI, Cruise and 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 the operational and financial performance of the segment. Each segment has a manager responsible for executing our strategic initiatives. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles attract customers to dealer showrooms and help maintain sales volumes for other, more profitable vehicles and contribute towards meeting required fuel efficiency standards. As a result of these and other factors, we do not manage our business on an individual brand or vehicle basis.

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. In addition to the products sold to dealers for consumer retail sales, trucks, crossovers and cars are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. Fleet sales are completed through the dealer network and in some cases directly with fleet customers. Retail and fleet customers can obtain a wide range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties.

GMNA meets the demands of customers in North America and GMI primarily meets the demands of customers outside North America, with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. 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 is our global segment responsible for the development and commercialization of AV technology, and includes AV-related engineering and other costs. We provide automotive financing services through our GM Financial segment.

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 and intersegment balances. All intersegment balances and transactions have been eliminated in consolidation.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables summarize key financial information by segment:


	At and For the Year Ended December 31, 2022
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	128,378	$	15,420	$	177			$	143,974	$	102	$	12,766	$	(107)	$	156,735
Earnings (loss) before interest and taxes-adjusted	$	12,988	$	1,143	$	(1,846)			$	12,286	$	(1,890)	$	4,076	$	2	$	14,474
Adjustments(a)	$	(411)	$	(657)	$	—			$	(1,068)	$	(1,057)	$	—	$	—	(2,125)
Automotive interest income																	460
Automotive interest expense																	(987)
Net income (loss) attributable to noncontrolling interests																	(226)
Income (loss) before income taxes																	11,597
Income tax benefit (expense)																	(1,888)
Net income (loss)																	9,708

Net loss (income) attributable to noncontrolling interests																	226
Net income (loss) attributable to stockholders																	$	9,934
Equity in net assets of nonconsolidated affiliates	$	1,820	$	6,691	$	—	$	—	$	8,511	$	—	$	1,665	$	—	$	10,176
Goodwill and intangibles	$	2,134	$	740	$	4	$	—	$	2,877	$	727	$	1,341	$	—	$	4,945
Total assets	$	157,250	$	24,808	$	60,518	$	(104,157)	$	138,419	$	5,510	$	121,544	$	(1,436)	$	264,037
Expenditures for property	$	8,280	$	706	$	20	$	—	$	9,007	$	197	$	44	$	(10)	$	9,238
Depreciation and amortization	$	5,800	$	513	$	21	$	—	$	6,335	$	53	$	4,888	$	—	$	11,276
Impairment charges	$	11	$	1	$	—	$	—	$	12	$	—	$	—	$	—	$	12
Equity income (loss)	$	(9)	$	672	$	—	$	—	$	663	$	—	$	173	$	—	$	837

(a) Consists of charges for strategic activities related to Buick dealerships and the resolution of substantially all royalty matters accrued with respect to past-year vehicle sales in GMNA; charges related to the shutdown of our Russia business in GMI; and charges related to the one-time modification of Cruise stock incentive awards.


	At and For the Year Ended December 31, 2021
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations/Reclassifications		Total
Net sales and revenue	$	101,308	$	12,172	$	104			$	113,584	$	106	$	13,419	$	(105)	$	127,004
Earnings (loss) before interest and taxes-adjusted	$	10,318	$	827	$	(680)			$	10,465	$	(1,196)	$	5,036	$	(10)	$	14,295
Adjustments(a)	$	(425)	$	(276)	$	—			$	(701)	$	—	$	—	$	—	(701)
Automotive interest income																	146
Automotive interest expense																	(950)
Net income (loss) attributable to noncontrolling interests																	(74)
Income (loss) before income taxes																	12,716
Income tax benefit (expense)																	(2,771)
Net income (loss)																	9,945

Net loss (income) attributable to noncontrolling interests																	74
Net income (loss) attributable to stockholders																	$	10,019
Equity in net assets of nonconsolidated affiliates	$	827	$	7,133	$	—	$	—	$	7,960	$	—	$	1,717	$	—	$	9,677
Goodwill and intangibles	$	2,240	$	772	$	—	$	—	$	3,012	$	736	$	1,339	$	—	$	5,087
Total assets	$	121,735	$	22,876	$	40,492	$	(56,936)	$	128,167	$	4,489	$	113,207	$	(1,145)	$	244,718
Expenditures for property	$	6,576	$	783	$	30	$	—	$	7,389	$	89	$	26	$	5	$	7,509
Depreciation and amortization	$	5,298	$	542	$	21	$	—	$	5,861	$	52	$	6,134	$	—	$	12,047
Impairment charges	$	—	$	—	$	—	$	—	$	—	$	4	$	—	$	—	$	4
Equity income (loss)	$	8	$	1,092	$	—	$	—	$	1,100	$	—	$	201	$	—	$	1,301

(a) Consists of royalties accrued with respect to past-year vehicle sales and charges for strategic activities related to Cadillac dealerships in GMNA; and a settlement with certain third parties relating to retrospective recoveries of indirect taxes and an adjustment related to the unique events associated with Korea Supreme Court decisions related to our salaried workers in GMI.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)


	At and For the Year Ended December 31, 2020
	GMNA		GMI		Corporate		Eliminations		Total Automotive		Cruise		GM Financial		Eliminations		Total
Net sales and revenue	$	96,733	$	11,586	$	350			$	108,669	$	103	$	13,831	$	(118)	$	122,485
Earnings (loss) before interest and taxes-adjusted	$	9,071	$	(528)	$	(634)			$	7,909	$	(887)	$	2,702	$	(14)	$	9,710
Adjustments(a)	$	(99)	$	(683)	$	130			$	(652)	$	—	$	—	$	—	(652)
Automotive interest income																	241
Automotive interest expense																	(1,098)
Net income (loss) attributable to noncontrolling interests																	(106)
Income (loss) before income taxes																	8,095
Income tax benefit (expense)																	(1,774)
Net income (loss)																	6,321

Net loss (income) attributable to noncontrolling interests																	106
Net income (loss) attributable to stockholders																	$	6,427
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
Depreciation and amortization	$	4,739	$	624	$	25	$	—	$	5,388	$	43	$	7,245	$	—	$	12,676
Impairment charges	$	20	$	99	$	—	$	—	$	119	$	20	$	—	$	—	$	139
Equity income (loss)	$	17	$	510	$	—	$	—	$	527	$	—	$	147	$	—	$	674

(a) Consists of charges for strategic activities related to Cadillac dealerships in GMNA; restructuring and other charges primarily in Australia, New Zealand, Thailand and India in GMI; and ignition switch-related legal matters in Corporate.

Automotive revenue is attributed to geographic areas based on the country of sale. GM Financial revenue is attributed to the geographic area where the financing is originated. The following table summarizes information concerning principal geographic areas:


	At and For the Years Ended December 31,
	2022				2021				2020
	Net Sales and Revenue		Long-Lived Assets		Net Sales and Revenue		Long-Lived Assets		Net Sales and Revenue		Long-Lived Assets
Automotive
U.S.	$	116,798	$	30,201	$	92,771	$	27,192	$	89,204	$	24,932
Non-U.S.	27,177		14,907		20,819		13,771		19,469		12,516
GM Financial
U.S.	11,035		29,411		11,712		34,452		12,227		36,773
Non-U.S.	1,725		3,431		1,702		3,629		1,585		3,230
Total consolidated	$	156,735	$	77,950	$	127,004	$	79,044	$	122,485	$	77,451

No individual country other than the U.S. represented more than 10% of our total net sales and revenue or long-lived assets, other than Mexico, whose long-lived assets were approximately 11% and 10% of our total long-lived assets at December 31, 2022 and 2021.

GENERAL MOTORS COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Note 24. Supplemental Information for the Consolidated Statements of Cash Flows

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,
2022			2021			2020
Accounts receivable	$	(4,483)		$	493		$	(1,341)
Wholesale receivables funded by GM Financial, net	(5,000)			2,854			2,744
Inventories	(2,581)			(3,155)			(104)
Automotive equipment on operating leases	—			—			53
Change in other assets	(248)			(1,418)			68
Accounts payable	6,144			(1,166)			42
Income taxes payable	273			(95)			130
Accrued and other liabilities	2,918			(879)			(1,991)
Total	$	(2,977)		$	(3,366)		$	(399)

Cash paid for income taxes and interest
Cash paid for income taxes, net	$	1,191		$	652		$	719
Cash paid for interest (net of amounts capitalized) – Automotive	$	933		$	884		$	1,011
Cash paid for interest (net of amounts capitalized) – GM Financial	2,673			2,519			2,947
Total cash paid for interest (net of amounts capitalized)	$	3,606		$	3,403		$	3,958

GENERAL MOTORS COMPANY AND SUBSIDIARIES

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