Equity in Net Assets of Nonconsolidated Affiliates
Nonconsolidated affiliates are entities in which an equity ownership interest is maintained and for which the equity method of accounting is used, due to the ability to exert significant influence over decisions relating to their operating and financial affairs.
The following table summarizes information regarding Equity income and gain on investments (dollars in millions):
|
| | | | | | | | | | | |
| Years Ended December 31, |
| 2013 | | 2012 | | 2011 |
China joint ventures (China JVs) | $ | 1,763 |
| | $ | 1,521 |
| | $ | 1,511 |
|
New Delphi (including gain on disposition) | — |
| | — |
| | 1,727 |
|
Others (including gain on acquisition of GM India) | 47 |
| | 41 |
| | (46 | ) |
Total equity income and gain on investments | $ | 1,810 |
| | $ | 1,562 |
| | $ | 3,192 |
|
Sales and income 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 and gain on investments.
We received dividends from nonconsolidated affiliates of $1.7 billion, $1.4 billion and $1.2 billion in the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012 we had undistributed earnings including dividends declared but not received, of $1.8 billion and $1.7 billion related to our nonconsolidated affiliates.
Investment in China JVs
The following table summarizes our direct ownership interests in China JVs:
|
| | | | | |
| December 31, 2013 | | December 31, 2012 |
Shanghai General Motors Co., Ltd. (SGM) | 50 | % | | 50 | % |
Shanghai GM Norsom Motor Co., Ltd. (SGM Norsom) | 25 | % | | 25 | % |
Shanghai GM Dong Yue Motors Co., Ltd. (SGM DY) | 25 | % | | 25 | % |
Shanghai GM Dong Yue Powertrain (SGM DYPT) | 25 | % | | 25 | % |
SAIC-GM-Wuling Automobile Co., Ltd. | 44 | % | | 44 | % |
FAW-GM Light Duty Commercial Vehicle Co., Ltd. | 50 | % | | 50 | % |
Pan Asia Technical Automotive Center Co., Ltd. | 50 | % | | 50 | % |
Shanghai OnStar Telematics Co., Ltd. (Shanghai OnStar) | 40 | % | | 40 | % |
Shanghai Chengxin Used Car Operation and Management Co., Ltd. (Shanghai Chengxin Used Car) | 33 | % | | 33 | % |
SAIC General Motors Sales Co., Ltd. (SGMS) | 49 | % | | 49 | % |
SGM is a joint venture established by Shanghai Automotive Industry Corporation (SAIC) (50%) and us (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 us (25%). These four joint ventures are engaged in the production, import, and sale of a comprehensive range of products under the Buick, Chevrolet and Cadillac brands. SGM also has interests in Shanghai OnStar (20%) and Shanghai Chengxin Used Car (33%). SGM also has a 20% equity interest in GMAC-SAIC, a joint venture established by General Motors Acceptance Corporation (now Ally Financial) (40%) and SAIC Finance Co., Ltd. (40%).
SGMS is a joint venture established in November 2011 by SAIC (51%) and us (49%) to engage in the sales of the imported Buick, Chevrolet and Cadillac brands and the sales of automobiles manufactured by SGM.
In September 2012 we repurchased a 1% interest in SGM for a total consideration of $119 million, increasing our ownership interest in SGM to 50%. The transaction was accounted for by applying the equity method of accounting. The consideration exceeded our proportionate share of the 1% interest in SGM net assets by $82 million, which consists of plant, property and equipment, intangible assets and goodwill of $8 million, $36 million and $38 million.
Sale of New Delphi
In March 2011 we sold our Class A Membership Interests in Delphi Automotive LLP (New Delphi) to New Delphi for $3.8 billion. The Class A Membership Interests sold represented 100% of our direct and indirect interests in New Delphi and 100% of New Delphi's Class A Membership Interests issued and outstanding. The sale terminated any direct and indirect obligation to loan New Delphi up to $500 million under a term loan facility established in October 2009 when New Delphi was created and the Class A Membership Interests were issued. New Delphi had not borrowed under this loan facility. In March 2011 we recorded a gain of $1.6 billion related to the sale in Equity income and gain on investments. Our existing supply contracts with New Delphi were not affected by this transaction.
Investment in GM India
In March 2011 the fair value of our investment in GM India was determined to be less than its carrying amount. The loss in value was determined to be other-than-temporary; therefore, we recorded an impairment charge of $39 million in the three months ended March 31, 2011. In addition we recorded other charges totaling $67 million related to our investment in GM India. Refer to Note 3 for detail regarding the acquisition of GM India.
Investment in and Summarized Financial Data of Nonconsolidated Affiliates
The following table summarizes the carrying amount of investments in nonconsolidated affiliates (dollars in millions):
|
| | | | | | | |
| December 31, 2013 | | December 31, 2012 |
China JVs | $ | 7,851 |
| | $ | 6,579 |
|
Other investments | 243 |
| | 304 |
|
Total equity in net assets of nonconsolidated affiliates | $ | 8,094 |
| | $ | 6,883 |
|
At December 31, 2013 and 2012 the carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $3.8 billion. These differences are primarily related to the application of fresh-start reporting and purchase of additional interests in nonconsolidated affiliates, of which $3.4 billion at December 31, 2013 and 2012 were allocated to goodwill and the remainder was allocated to the underlying assets and liabilities, primarily intangibles, and are being amortized over their useful lives.
The following tables present summarized financial data for all of our nonconsolidated affiliates (dollars in millions):
|
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | December 31, 2012 |
| China JVs | | Others | | Total | | China JVs | | Others | | Total |
Summarized Balance Sheet Data | | | | | | | | | | | |
Current assets | $ | 14,666 |
| | $ | 2,234 |
| | $ | 16,900 |
| | $ | 11,759 |
| | $ | 2,642 |
| | $ | 14,401 |
|
Non-current assets | 8,187 |
| | 1,458 |
| | 9,645 |
| | 6,766 |
| | 1,507 |
| | 8,273 |
|
Total assets | $ | 22,853 |
| | $ | 3,692 |
| | $ | 26,545 |
| | $ | 18,525 |
| | $ | 4,149 |
| | $ | 22,674 |
|
| | | | | | | | | | | |
Current liabilities | $ | 14,019 |
| | $ | 1,859 |
| | $ | 15,878 |
| | $ | 12,612 |
| | $ | 1,893 |
| | $ | 14,505 |
|
Non-current liabilities | 1,065 |
| | 511 |
| | 1,576 |
| | 756 |
| | 758 |
| | 1,514 |
|
Total liabilities | $ | 15,084 |
| | $ | 2,370 |
| | $ | 17,454 |
| | $ | 13,368 |
| | $ | 2,651 |
| | $ | 16,019 |
|
| | | | | | | | | | | |
Non-controlling interests | $ | 1,040 |
| | $ | — |
| | $ | 1,040 |
| | $ | 1,055 |
| | $ | 1 |
| | $ | 1,056 |
|
|
| | | | | | | | | | | |
| Years Ended December 31, |
| 2013 | | 2012 | | 2011 |
Summarized Operating Data | | | | | |
China JV's net sales | $ | 38,767 |
| | $ | 33,364 |
| | $ | 30,511 |
|
Others' net sales | 1,830 |
| | 3,963 |
| | 4,242 |
|
Total net sales | $ | 40,597 |
| | $ | 37,327 |
| | $ | 34,753 |
|
| | | | | |
China JV's net income | $ | 3,685 |
| | $ | 3,198 |
| | $ | 3,203 |
|
Others' net income (loss) | 50 |
| | (23 | ) | | (13 | ) |
Total net income | $ | 3,735 |
| | $ | 3,175 |
| | $ | 3,190 |
|
Transactions with Nonconsolidated Affiliates
Nonconsolidated affiliates are involved in various aspects of the development, production and marketing of cars, trucks and automobile parts. We purchase component parts and vehicles from certain nonconsolidated affiliates for resale to dealers. We also sell component parts and vehicles to certain nonconsolidated affiliates. The following tables summarize the effects of transactions with nonconsolidated affiliates (dollars in millions):
|
| | | | | | | | | | | |
| Years Ended December 31, |
| 2013 | | 2012 | | 2011 |
Results of Operations | | | | | |
Automotive sales and revenue | $ | 2,724 |
| | $ | 2,572 |
| | $ | 3,266 |
|
Automotive purchases, net | $ | 724 |
| | $ | 497 |
| | $ | 1,044 |
|
Interest income and other non-operating income, net | $ | 19 |
| | $ | 184 |
| | $ | 34 |
|
|
| | | | | | | |
| December 31, 2013 | | December 31, 2012 |
Financial Position | | | |
Accounts and notes receivable, net | $ | 756 |
| | $ | 1,668 |
|
Accounts payable | $ | 183 |
| | $ | 167 |
|
Deferred revenue and customer deposits | $ | 32 |
| | $ | 46 |
|
|
| | | | | | | | | | | |
| Years Ended December 31, |
| 2013 | | 2012 | | 2011 |
Cash Flows | | | | | |
Operating | $ | 3,607 |
| | $ | 3,385 |
| | $ | 3,624 |
|
Investing | $ | (13 | ) | | $ | (41 | ) | | $ | (27 | ) |
